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Wakefern Food Corp. announced that it has entered into a wholesale agreement with New York City-based Gristedes that will make its 7,000-item ShopRite private label brand available in the 40 Gristedes stores in the New York metropolitan area. The ShopRite line includes organics and specialty grocery items.

"By making our line of specialty products available to other retailers, we are providing them with a quality, exclusive brand that provides a real point of competitive difference in the marketplace," said Joe Colalillo, chairman and CEO of Wakefern, in a prepared statement. "Helping independents grocers succeed in a space dominated by much larger competitors has always been our primary focus and our strength."

KC's View:
Smart move on both sides. Wakefern extends its brand equity and gets new business, and Gristedes can take advantage of a high-profile and respected private label…which can only help it be more competitive if food inflation continues to drive up costs.