Shares of United Natural Foods, Inc. (UNFI, Financial), the largest distributor of natural and organic products in North America, detracted from the first quarter's performance, despite continued strong fundamentals. The company's largest customer is Whole Foods, which is experiencing robust, though moderating, growth in the face of tough comparisons.We believe United Natural Foods will continue to benefit from a greater focus on health by consumers; growth of organics from less than 10% of grocery today; and conventional supermarkets devoting more space to the category. (Matt Weiss)
From Baron Funds’ first quarter 2013 letter.
From Baron Funds’ first quarter 2013 letter.
