Foodservice

Tedeschi Buys Commissary

Acquires producer of retailer's proprietary TD Deli brand
ROCKLAND, Mass. -- Tedeschi Food Shops Inc. has acquired DSD1, the local startup commissary that produces the chain's signature TD's Deli packaged fresh food line. DSD1 will now be known as Tedeschi Fresh Foods and will be a subsidiary of Tedeschi Food Shops.

Tedeschi Food Shops offers a family of proprietary brands: TD's Deli and TD's Deli Always Fresh To Go, Tedeschi Select and Tedeschi Fuel.

Nearly two years ago, Tedeschi Food Shops engaged DSD1 to develop and distribute a new fresh sandwich and meal line that would carry the TD's Deli logo. After a widely successful [image-nocss] pilot in 25 locations, the company methodically ramped up the program that currently services nearly 150 of its 188 locations. When added to the 21 Tedeschi Food Shops locations that offer full-service deli programs, the Tedeschi Food Shops portfolio now offers sandwich and foodservice programs in 90% of its locations.

Excellence in foodservice is critical to the future success and viability of Tedeschi Food Shops as well as the convenience store industry, the company said. This acquisition fits into Tedeschi's short-, mid- and long-term strategic objectives and has allowed the company to consolidate control of its foodservice offerings.

"We will leverage the experience that we gain in distribution from our commissary to help us achieve several of our corporate and retail agility objectives," said Peter Tedeschi, president and CEO. This involves initiatives ranging from "time to market" to economics associated with the delivery of products to stores.

Established in 1923 in Rockland, Mass., Tedeschi Food Shops has more than $600 million in annual revenue and more than 2,000 employees. The company operates 189 convenience store locations throughout Massachusetts, New Hampshire, Rhode Island and Connecticut.

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