Sales are up for Michigan-based retailer SpartanNash Co., and the company is banking on a new prepared foods facility for future growth.
Second-quarter net sales at Grand Rapids, Michigan-based SpartanNash totaled $1.89 billion, up $67.1 million from the second quarter of 2016, according to a company earnings report. Growth was driven by contributions from Indianapolis-based Caito Foods Service, which SpartanNash bought in 2016.
Among Caito Foods Service’s assets is its new 118,000 square-foot Fresh Kitchen facility, which processes, cooks and packages fresh protein-based foods and complete meals. Getting Fresh Kitchen up and running has taken longer than expected, David Staples, SpartanNash’s president and chief executive officer, said in the report. But the company remains bullish on fresh prepared’s role going forward.
“Freshly prepared meal solution offerings,” Staples says, “are right in line with the ever-increasing consumer demand for convenience.”
SpartanNash’s reported operating earnings also were up in the second quarter, increasing from $32.6 million last year to $38.9 million this year.