KeHE Distributors, LLC

Background

KeHE Distributors, LLC, established in 1952 by Art Kehe, is a leading distributor of natural, organic, specialty, and fresh products across North America. With a mission to "Serve and feed America," KeHE is dedicated to being the preferred supply chain partner in the specialty, natural & organic, and fresh product marketplace. The company operates with a core purpose: "We SERVE to make lives better," emphasizing its commitment to customers, suppliers, employees, and communities.

Key Strategic Focus

KeHE's strategic focus centers on delivering a curated assortment of innovative and high-quality products that support diverse, local, and sustainable businesses. The company specializes in natural, organic, specialty, and fresh product distribution, leveraging advanced performance metrics and a robust distribution network to meet consumer demand. KeHE's operations span over 19 distribution centers across North America, serving more than 30,000 retail locations, including natural food stores, chain and independent grocery stores, e-commerce retailers, and other specialty product retailers.

Financials and Funding

As of 2022, KeHE reported a revenue of approximately $6.3 billion. The company is employee-owned and has received private equity funding from TowerBrook Capital Partners in 2019. The total investment amount was not disclosed.

Pipeline Development

KeHE continually expands its product portfolio and distribution capabilities. In June 2023, the company completed the acquisition of DPI Specialty Foods, a leading distributor in the western United States. This acquisition broadened KeHE's customer base and bolstered its warehouse infrastructure, adding over 1,000 customers and increasing the combined capabilities to over 31,000 customers, more than 80,000 SKUs, 6,100 suppliers, and 7 million square feet of warehouse space across all temperature zones in 19 distribution centers.

Technological Platform and Innovation

KeHE differentiates itself through its technological platforms and innovative approaches:

KeHE CONNECT® Platform: An intuitive technology that equips suppliers with industry-leading sales reporting, business analytics, and data visualization services to drive scalable success.

Business Intelligence Tools: Provides data-driven insights and category management expertise, supporting retailers with data, insights, and assortment recommendations that highlight market opportunities.

Leadership Team

KeHE's leadership team is composed of experienced professionals dedicated to the company's mission:

Deb Conklin: President & CEO. Deb Conklin joined KeHE as President & CEO in early 2023, bringing extensive experience in the distribution and logistics industry.

Leadership Changes

In early 2023, Deb Conklin was appointed as President & CEO of KeHE Distributors, succeeding the previous leadership. This change marked a new chapter in KeHE's strategic direction and growth initiatives.

Competitor Profile

Market Insights and Dynamics

The natural and organic food distribution market is experiencing significant growth, driven by increasing consumer demand for healthier and sustainable food options. The market is characterized by a competitive landscape with several key players vying for market share.

Competitor Analysis

KeHE's primary competitors include:

US Foods Inc.: A leading foodservice distributor offering a broad range of products and services to restaurants, healthcare, hospitality, and government operations.

United Natural Foods, Inc. (UNFI): A distributor specializing in natural and organic foods, serving a wide range of retail customers across North America.

KeHE ranks favorably against its competitors in several areas:

CEO Score: KeHE's CEO, Deb Conklin, has a rating of 74 out of 100, ranking 1st among competitors.

Product Quality: KeHE scores 3.7 out of 5, leading among competitors.

Net Promoter Score (NPS): KeHE has an NPS of 21, indicating strong customer satisfaction.

Pricing: KeHE's pricing score is 3.6 out of 5, ranking 1st among competitors.

Customer Service: KeHE scores 3.5 out of 5 in customer service, leading among competitors.

Overall Culture: KeHE's overall culture score is 71 out of 100, ranking 1st among competitors.

Employee Net Promoter Score (eNPS): KeHE has an eNPS of 21, indicating strong employee satisfaction.

Diversity Score: KeHE's diversity score is 77 out of 100, ranking 1st among competitors.

Strategic Collaborations and Partnerships

KeHE has established significant partnerships to enhance its market position:

Foxtrot: In August 2023, KeHE partnered with Foxtrot, a next-generation corner store and café, to redefine convenience by providing a curated assortment of innovative and high-quality products.

Kum & Go: In November 2022, KeHE became a primary distribution partner for Kum & Go, a Midwestern convenience retail chain, adding to its share of the convenience store space.

Operational Insights

KeHE's strategic considerations in relation to major competitors include:

Market Position: KeHE's acquisition of DPI Specialty Foods has expanded its customer base and warehouse infrastructure, enhancing its competitive edge.

Competitive Advantages: KeHE's commitment to innovation, sustainability, and employee ownership differentiates it from competitors. Its B Corporation certification underscores its dedication to social and environmental performance.

Strategic Opportunities and Future Directions

KeHE's strategic roadmap includes:

Expansion: Leveraging the acquisition of DPI Specialty Foods to enhance its fresh food portfolio and broaden its customer base.

Innovation: Continuing to invest in technological platforms like KeHE CONNECT® to provide data-driven insights and support scalable growth.

Sustainability: Maintaining its B Corporation certification and implementing eco-friendly measures throughout the organization, such as introducing Compressed Natural Gas tractors to its fleet and operating LEED-certified facilities.