C&S Wholesale Grocers LLC will move to majority ownership of The Winn-Dixie Co. under a transaction announced Aug. 13 and targeted to close in early 2027.

The deal extends a vertical-integration strategy that has already added more than 200 company-operated stores to a 60-distribution-center wholesale network.

What does C&S already own in Winn-Dixie?

C&S joined a private investor group that acquired Jacksonville, Florida-based Winn-Dixie from Aldi U.S. in 2025. The new transaction converts that minority position into a controlling stake.

C&S said it has worked with Winn-Dixie for more than 20 years as a wholesale supplier. That history, the company said, will ease integration.

Why is C&S pushing deeper into retail?

The wholesaler expects the combination to "leverage efficiencies and economies of scale to drive growth," CEO Eric Winn said.

Retail ownership feeds volume into the distribution network. It also spreads fixed infrastructure costs across a larger base and gives C&S direct influence over store-level pricing, assortment and private-label mix.

What has the SpartanNash integration taught C&S?

"The collective insights gathered during our C&S-SpartanNash integration have enabled us to further enhance our support of customers — in all formats — across the United States," Winn said.

The company is applying those insights to the Southeast, where Winn-Dixie runs its densest store base.

Winn tied the next leg of growth directly to regional density: "To continue to grow in the industry — not only today, but well into the future — there is even more opportunity within our retail footprint, especially in the Southeast," he said.

That framing points to continued M&A and store growth along the I-95 and Gulf corridors.

What does the C&S store portfolio look like today?

C&S runs more than 200 company-operated grocery stores under the D&W Fresh Market, Grand Union, Family Fare, Martin's Super Markets and Piggly Wiggly banners. Other C&S units include Grocers Supply, Hansen Distribution Group, Davidson Specialty Foods and SpartanNash.

Adding Winn-Dixie would extend that footprint into Florida, Alabama, Louisiana, Georgia and Mississippi. The investment supports Winn-Dixie plans to refresh branding, open new stores, renovate existing locations and expand private label.

Who runs Winn-Dixie through the closing?

Winn-Dixie CEO Anthony Hucker will move into a special adviser role over the coming months. Chief Operating Officer Raymond Rhee will serve as CEO until the transaction closes.

Hucker called the proposed transaction a "natural evolution" of the Winn-Dixie-C&S relationship. Winn-Dixie has committed to maintaining an office presence in Jacksonville.

What changes for independent grocers supplied by C&S?

As C&S widens its company-owned retail portfolio, it increasingly serves as both supplier to independent retailers and operator of stores competing for the same grocery dollar. Channel conflict is a structural risk for independents tied to the wholesaler, particularly in markets where Winn-Dixie banners overlap with independent customers.

What does the deal say about the wholesale channel?

C&S is building scale on both sides of its supply chain — distribution infrastructure on the supply side and retail demand on the outlet side. The strategy competes with pure-play wholesale models at a moment when private label, digital marketplaces and direct-to-store services are reshaping distributor economics.

Other distributors are moving in similar directions through private-label manufacturing, marketplace investments and other vertical plays. C&S is choosing ownership rather than partnership as its primary lever for margin and channel power.

If the transaction closes in early 2027, C&S will control 60 distribution centers, more than 200 company-operated stores and majority ownership of a regional chain with deep Southeast roots. The integration timeline and the reaction of independent customers will determine whether the vertical model produces the projected margin and cost gains.