LOS ANGELES, Dec. 12, 2008 (GLOBE NEWSWIRE) -- Unified Grocers ("Unified" or the "Company"), the largest wholesale grocery distributor in the western United States, reached a significant milestone by surpassing $4 billion in revenues for the fiscal year ended September 27, 2008 ("2008 period").

The Los Angeles-based cooperative reported net sales of $4.105 billion for the 2008 period, as compared to $3.133 billion for the fiscal year ended September 29, 2007 ("2007 period"), a 31 percent increase. Net earnings were $17.4 million for the 2008 period, as compared to $14.4 million for the 2007 period, a 20.6 percent increase. Earnings before patronage dividends and income taxes were $48.6 million for the 2008 period, compared to $41.9 million for the 2007 period, a 16.1 percent increase.

The Company attributed $805.7 million or 25.7 percent of its sales growth to customer business gained in the Pacific Northwest from the transaction with Associated Grocers, Inc., Seattle, Washington (the "Seattle Operations"). Continued growth in the Company's existing customer base, new customer business (exclusive of the Seattle Operations), and inflation, contributed an additional $165.6 million, or 5.3 percent, in sales over the prior year.

Operating income for the 2008 period was $64.4 million compared to $55.7 million in the same period last year. Sales growth and improved operating performance were the primary contributors to the increase in operating income. Operating performance was aided by inventory holding gains resulting from vendor price increases, profits in the Seattle Operations and by favorable workers compensation adjustments in the Company's wholesale operations. The costs associated with the investment in the Company's Northern California distribution network, which included the closure of a warehouse and the expansion of the Company's primary regional distribution center in Stockton, California, along with the decline in the equity markets, partially offset the growth in income. The exchange value of members' shares at year end was $273.97 per share, an increase of 11.5 percent over the 2007 period. The increase was driven by strong results at the Company's subsidiary businesses.

"Despite a deteriorating business climate, Unified performed exceptionally well in 2008," said Alfred A. Plamann, president and chief executive officer, Unified Grocers. "We successfully integrated Associated Grocers into our company, we achieved record sales volume, our earnings are at an all time high and our operating income continues to grow.

"While we expect 2009 to be difficult and challenging, we believe that our company is well positioned to endure a weaker economy. Unified will continue to have the resources and wherewithal to assist our retail members and customers as they continue to grow their businesses and capture market share from self-distributing chains," Plamann said. "In times like these, our independent retailers shine because of their ability to quickly adapt to fast-changing market conditions."

Unified Grocers is a retailer-owned wholesale grocery distributor that supplies independent retailers throughout the western United States. Unified and its subsidiaries, which generated approximately $4.1 billion in sales during fiscal 2008, offer independent retailers all the resources they need to compete in the supermarket industry.

An online version of Unified's Form 10-K, filed with the Securities and Exchange Commission, is available on Unified's website at www.unifiedgrocers.com and at www.sec.gov/edgar.shtml.

Safe Harbor Statement

This press release contains forward-looking statements about the future performance of Unified Grocers based on Management's assumptions and beliefs in light of information currently available to it. There are a variety of factors that could cause actual and future results to differ materially from those anticipated by the statements made above. These factors are outlined in the Company's Form 10-K and other interim reports filed with the Securities and Exchange Commission. Furthermore, Unified undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.

CONTACT:  Unified Grocers
          Tom Schaffner
          (323) 264-5200 ext. 4150