Food Distributors NAICS 4244

Apr 30, 2025 - Albertsons to Suppliers: Eat Tariffs

• One of the US’s largest supermarket operators is telling suppliers it won’t accept any price increases due to President Trump’s tariffs on imports, Supermarket News reports. An April letter from Albertsons’ head of merchandising to suppliers reads: “With few exceptions, we are not accepting cost increases due to tariffs,” adding “Suppliers are not permitted to include tariff-related costs in invoices without prior authorization by Albertsons Companies. Any invoices that include such charges without prior authorization will be subject to dispute and may result in payment delays.” Once submitted, the company will take up to 30 days to review the forms and approval is not guaranteed, per SN. As intermediaries between food manufacturers and retailers, food distributors are stuck between grocers taking a hard-line approach regarding tariff-related price increases and manufacturers looking to pass along higher costs to consumers.
• Avocados, beef, and beer are among the 10 foods that are likely to cost more thanks to President Trump’s tariffs on imports, Reader’s Digest reported in April. Rounding out the list are: canola oil, lettuce, maple syrup, peppers, tomatoes, salmon and strawberries. In April, the Trump administration imposed a minimum 10% reciprocal tariff on all imported goods entering the country. Imports from Canada and Mexico are receiving 25% tariffs, which means, for example, that a product from either of those countries that costs, say, $5 will incur a $1.25 charge, according to RD. For now, however, certain goods, including many of the foods on this list, remain tax-free under the US-Mexico-Canada Agreement (USMCA). According to USDA data, approximately 17% of the entire food supply in the US is imported including many fresh vegetables and other crops.

• In a move aimed at taking a bigger bite out of the $1.5 trillion grocery market, Target is bringing its supply chain for fresh and frozen food in-house, The Wall Street Journal reports. One of the top sellers of groceries in the US, Target has opened three new food-distribution centers over the past two years and plans to add another in Colorado in 2026, expanding its grocery logistics network to nine temperature-controlled facilities nationwide, according to WSJ. Target’s new warehouses are meant to help place goods close to its stores to keep shelves stocked with in-demand items. Historically, Target has relied on grocery wholesalers to supply fresh foods to its stores, but as its sales have grown the retailer has opted to build out its own logistics network for perishables to better forecast demand and plan inventory, eliminating the middleman between it and its suppliers.
• Stubbornly high food prices are impacting distributors stuck between food companies raising prices to cover higher input costs and retailers who want to keep prices low due to competitive pressures. This year, overall food prices are anticipated to rise slightly faster than the historical average rate of growth, according to the USDA’s Food Price Outlook, 2025. Prices for all food are predicted to increase 3.4%, while food-at-home prices are predicted to rise 3.3%. Food-away-from-home prices are forecast to increase 3.4%. By comparison, food prices rose 2.5% from December 2023 to December 2024, reflecting a 1.8% increase in prices for food at home and a 3.6% increase in prices for food away from home, according to the US Bureau of Labor Statistics. Last year’s 12-month change in the consumer price index was led by egg prices, which soared 36.8%, with little to no relief in sight in 2025.