An Upside to Fleming’s Downside

Jun 18, 2003
George Anderson

By George Anderson

Grocery wholesaler competitors such as Supervalu and Nash Finch have been the
beneficiaries of Fleming’s bankruptcy problems, with added business and higher
stock prices.

According to the Star Tribune, “Shares of Supervalu have nearly doubled
since March 11 and shares of Nash Finch have nearly tripled during that time.”

Jeff Noddle, chief executive officer, Supervalu has said the company is working
hard to attract Fleming customers. Mr. Noddle is expected to address that issue
and others at a Credit Suisse First Boston conference today.

Moderator’s Comment: Are analysts being too bullish
on the prospects of Supervalu, Nash Finch and others as a result of Fleming’s
problems? What do you think the wholesale grocery picture will look like after
Fleming’s situation sorts itself out?

One check in the minus box for Fleming that became a plus
for Supervalu is Miner’s. It is the Duluth, Minn-area grocer that lost out to
Roundy’s on its bid to buy 31 Rainbow Foods’ stores from Fleming. It has since
moved its account to Supervalu after more than 40 years as a Fleming customer.
Anderson – Moderator

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