KeHE Distributors: What Amazon Sellers Need to Know
KeHE is one of the biggest names in natural, organic, and specialty food distribution — and a common first stop for Amazon sellers looking at wholesale grocery. This guide covers who KeHE is, who owns it, how it compares to UNFI, how online sellers can buy from it, and the part most guides skip: whether KeHE products actually make money on Amazon once fees are counted.
Who is KeHE Distributors?
KeHE Distributors is a wholesale food distributor headquartered in Naperville, Illinois. It was founded in 1953 by Art Kehe, an independent retailer, and has grown into one of North America's largest distributors of natural and organic, specialty, and fresh products — groceries, snacks, beverages, frozen and refrigerated foods, and more.
- Headquarters: Naperville, Illinois
- Founded: 1953, by Art Kehe
- Focus: natural & organic, specialty, and fresh foods
- Network: 19 distribution centers across North America
- Customers: 30,000+ retail outlets — chain and independent grocers, natural food stores, and online retailers
- Ownership: majority employee-owned (ESOP); Certified B Corporation
- Headcount: more than 6,800 employee-owners
Who owns KeHE?
KeHE is majority-owned by its employees through an Employee Stock Ownership Plan (ESOP). In 2019 the private equity firm TowerBrook Capital Partners bought a minority stake, replacing a longtime minority shareholder; at the time KeHE said the deal let it keep its majority-ESOP ownership. KeHE is also a Certified B Corporation, meaning it's assessed on social and environmental performance as well as profit.
How KeHE got so big: key acquisitions
- Tree of Life (2010) — KeHE bought the natural and specialty distributor from Wessanen for about $190 million, covering its U.S. and Canadian operations.
- Nature's Best (2014) — a California-based natural and health food wholesaler, then described as the largest privately owned distributor in the natural products industry.
- DPI Specialty Foods (2023) — a specialty food distributor bought from private equity firm Arbor Investments, adding specialty and fresh capability.
Those deals are why KeHE is now generally described as the second-largest natural and organic distributor in North America.
KeHE vs UNFI
KeHE's main rival is UNFI (United Natural Foods), the largest natural and organic distributor in North America. Both carry large natural, organic, and specialty assortments and serve similar retailers. For an Amazon seller the practical differences come down to which one will open an account for you, the minimums and delivery terms each offers in your area, and — most importantly — whether the specific items you'd buy are profitable on Amazon. A distributor's size says nothing about whether its prices leave room for Amazon fees.
Can Amazon and online sellers buy from KeHE?
Potentially, yes. KeHE lists online retailers, e-commerce merchants, and dropshippers among the retailers it serves, alongside grocery and natural food stores, and invites them to sign up as a KeHE retailer. Customers order through KeHE's CONNECT retailer platform and mobile app.
What KeHE doesn't publish are the account requirements, minimum order sizes, or credit terms — expect to provide business details such as an EIN and a resale certificate, and contact KeHE's retailer team for the specifics in your region. Distribution like this is built around stores that reorder steadily, so an e-commerce account may come with conditions a large chain wouldn't face.
Is KeHE profitable for Amazon sellers?
This is where sellers get burned. Being able to buy from KeHE and being able to profit from KeHE on Amazon are different things.
Grocery is a tough category on Amazon for a few specific reasons:
- Prices are built for store shelves. Distributor pricing leaves room for a grocery store's margin — not for Amazon's referral fee plus FBA fees on top.
- Referral fees jump at $15. Grocery & Gourmet items sold for $15 or less pay an 8% referral fee; above $15 it's 15%. Many grocery items sit right at that line.
- Heavy, low-priced items. Liquids, jars, and canned goods are heavy relative to their price, so FBA fulfillment fees eat a larger share.
- Pack size mismatches. A distributor case of 12 doesn't mean Amazon sells a 12-pack. Comparing a single-unit cost to a multipack listing (or the reverse) makes a product look far better or worse than it is.
- Expiration dates. Amazon requires expiration-dated products to arrive with enough shelf life to be used up in full plus an additional 90 days, and removes units as they near expiry. Slow sellers with short dates can turn into write-offs. See Amazon's expiration-dated product requirements.
- Brand and category gating. Many grocery brands restrict who can sell them. Check before you buy — see how to check if a brand is gated on Amazon.
How to evaluate a KeHE price list for Amazon
- Match every item by UPC to its Amazon listing, and confirm the pack size on Amazon is the same as the unit you're buying.
- Price against today's Buy Box, not the list price or a stale average — and skip items with no Buy Box at all.
- Subtract Amazon's real fees (referral + FBA), plus your per-unit cost, inbound shipping, and prep. Our free FBA calculator does this for a single item.
- Check sales rank so the item sells well within its shelf life — see Amazon sales rank (BSR) explained.
- Confirm your account can list the brand before you place the order.
Doing that by hand for a few hundred SKUs takes days. SourceTrove does it automatically: it matches distributor catalogs to Amazon by UPC, uses Amazon's own fee quotes, refreshes Buy Box prices daily, flags pack-size mismatches, and shows whether your account can list each item — so you only look at products that can make money.
See which wholesale products are actually profitable
Distributor catalogs pre-matched to Amazon, with live profit, margin, ROI, and your own listing eligibility.
Start sourcing smarterFAQ
Who are KeHE Distributors?
A wholesale distributor of natural and organic, specialty, and fresh foods, headquartered in Naperville, Illinois, founded in 1953 by Art Kehe. It runs 19 distribution centers and serves more than 30,000 retail outlets across North America.
Who owns KeHE Distributors?
Its employees, through a majority ESOP. Private equity firm TowerBrook has held a minority stake since 2019.
What brands does KeHE distribute?
A broad assortment of natural and organic, specialty, and fresh food and beverage brands — from established national natural brands to small emerging ones. The full assortment and pricing are visible to KeHE retail customers.
How many retailers does KeHE distribute to?
More than 30,000 retail outlets, including chain and independent grocers, natural food stores, and e-commerce retailers.
Who are KeHE's main competitors?
UNFI is the largest; KeHE is generally described as the second-largest natural and organic distributor in North America. Regional specialty and natural distributors also compete with it.
Can Amazon sellers buy from KeHE?
KeHE lists online retailers, e-commerce merchants, and dropshippers among its customers, so it's worth applying. Ask KeHE's retailer team about requirements and minimums, then check each item's Amazon profit and eligibility before ordering.
Sources
- About KeHE — history, headquarters, distribution network, ownership
- KeHE.com — retailer and online-seller customer types
- TowerBrook announces strategic investment in KeHE (2019)
- KeHE to acquire DPI Specialty Foods (2023)
- Grocery Dive: KeHE acquires Nature's Best
- Supermarket News: KeHE acquires Tree of Life