In this file:
· Amazon Agrees to Buy up to 15% of Food Distributor SpartanNash's Stock
· Amazon Seeks Stake in SpartanNash
· What’s behind the Amazon/SpartanNash deal?
· Amazon fined by OSHA for coronavirus safety violations at two California warehouses
Amazon Agrees to Buy up to 15% of Food Distributor SpartanNash's Stock
The pact hints at the expansion the e-commerce giant is planning for its online and physical grocery stores.
Rich Duprey, The Motley Fool
Oct 9, 2020
Amazon (NASDAQ:AMZN) has agreed to acquire as many as 5.4 million shares of SpartanNash (NASDAQ:SPTN), or 15% of the food distribution leader's total outstanding stock, as the e-commerce giant wades further into the grocery business.
SpartanNash disclosed in a regulatory filing Thursday that as part of a commercial agreement with Amazon, it was issuing warrants to the e-tailer of which more than 1 million would vest immediately, with the rest able to be purchased over the next seven years.
Express lane to growth
The pact comes as Amazon looks to expand its new Fresh grocery store chain that's part Whole Foods, part Amazon Go, and part 365, the discount grocery store it closed last year. Fresh incorporates a mix of organic, premium, and low-priced national brands; cashier-free checkouts; and online fulfillment through curbside pickup.
SpartanNash distributes groceries to independent supermarkets, military commissaries, and its own chain of stores, but it has also had a relationship with Amazon since 2016 when it agreed to supply the e-commerce leader's distribution centers with groceries...
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Amazon Seeks Stake in SpartanNash
By Thad Rueter, Progressive Grocer
Amazon is getting even deeper into the grocery business, this time courtesy of SpartanNash.
The food wholesaler and distributor has issued warrants to an Amazon affiliate — Amazon.com NV Investment Holdings LLC — to buy up to 5.43 million shares of stock through Oct. 7, 2027, according to a filing with the U.S. Securities and Exchange Commission.
According to that document, the warrant vested with respect to 1,087,455 warrant shares upon issuance, and the remaining warrant shares will vest in accordance with the terms of the warrant.
The deal could potentially result in Amazon owning about 15% of SpartanNash’s outstanding shares. SpartanNash declined to comment and Amazon offered no immediate comment. On Friday, Oct. 9, SpartanNash stock was selling at $19.20 per share at the market opening.
Amazon and SpartanNash have a relationship that stretches back to at least 2016. That’s when SpartanNash agreed to supply Amazon’s distribution centers with grocery products.
Amazon, of course, has kept expanding into the food retail space. Among its most recent moves is the launch of its first stand-alone supermarket banner: a 35,000-square-foot, digitally perfected store in Woodland Hills, California, called Fresh.
The Fresh banner isn't an offshoot of Whole Foods, nor does it look like one of those checkout-less Amazon Go stores that have been popping up in urban areas across the United States, nor does it resemble the 365 banner that Amazon scrapped last year, either.
The new Amazon Fresh supermarket takes elements of all of those concepts -- micro fulfillment, contactless features, a curated assortment of premium and conventional products, and highly personalized service -- and melds them into one innovative store that offers something for every type of food shopper.
No. 2 on The PG 100, Progressive Grocer’s 2020 list of the top food and consumables retailers in North America, Seattle-based Amazon is also planning grocery stores in...
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What’s behind the Amazon/SpartanNash deal?
by George Anderson, RetailWire
Oct 12, 2020
Shares of SpartanNash rose 26 percent on Friday after the Grand Rapids, MI-based food wholesaler and retailer disclosed that it had entered into a commercial agreement with Amazon that includes warrants to acquire a minority stake.
Terms of the commercial agreement were not disclosed.
Under the warrant agreement, Amazon secured the rights to acquire up to 5.44 million shares of SpartanNash for $17.73 per share through Oct. 7, 2027, or an investment of $96.4 million if fully exercised, according to a SpartanNash regulatory filing. Share of SpartanNash closed Friday at $21.49, up from $17.02 at Thursday’s close.
Of the shares, 1.1 million vested at the start of the commercial agreement. The remaining 4.3 million vest once an undisclosed amount of gross payments are made through orders under the commercial agreement. If all shares are acquired, Amazon would own a 15 percent stake in SpartanNash.
SpartanNash, the nation’s fifth-largest food distributor, has been providing groceries to Amazon to support its grocery online delivery since 2016. It supplies approximately 2,100 independents, as well as some national chains. Its largest is Dollar General, accounting for 17 percent of revenues in 2019.
Speculation is the deal means SpartanNash will become the primary distributor to the new Amazon Fresh mainstream grocery concept.
BMO Capital’s Kelly Bania, in a note attained by MarketWatch...
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Amazon fined by OSHA for coronavirus safety violations at two California warehouses
o California’s OSHA division fined Amazon $1,780 for failing to provide adequate coronavirus health and safety training at two facilities, one in Eastvale and another in Hawthorne.
o Amazon told CNBC it plans to appeal the citations.
o The company recently disclosed that 19,816 employees have had Covid-19.
Annie Palmer, CNBC
Oct 9 2020
Two Amazon warehouses in California have been cited by the state’s division of the Occupational Safety and Health Administration for coronavirus-related health and safety violations.
Cal/OSHA issued $1,870 in fines to an Amazon fulfillment center in Eastvale, California, known as LGB3, and a delivery station in Hawthorne, California, referred to as DLA8, for failing to mitigate potential exposure to the coronavirus by providing adequate health and safety training.
“Employees were unaware of key elements in the training materials, including but not limited to, sanitation of work stations and frequently touched objects in the workplace,” according to the citations, which were issued Oct. 6 and first reported by The Los Angeles Times.
Since the coronavirus hit U.S. shores in March, warehouse workers, labor groups and politicians have raised concerns that Amazon hasn’t done enough to keep its employees safe from catching the virus. Amazon has said its spent roughly $4 billion on coronavirus-related initiatives, which includes developing testing capabilities, safety gear, wage increases and training.
Amazon told CNBC in a statement that it plans to appeal the citations.
“We have great respect for OSHA, but we believe our training programs are more than adequate, and we plan to contest,” the company said. “We’ve invested heavily in training people about staying safe and healthy, from our onboarding for new hires to constant reminders, dedicated safety ambassadors, and ongoing training and communication about safety protocols, each day, through a variety of mediums.”
Amazon said state health and safety regulatory agencies have inspected more than 100 of its facilities since March and said its processes “went beyond compliance requirements.”
Cal/OSHA began investigating...