Whereas KeHE Distributors LLC is a distributor for many large and small CPG companies that sell to grocery stores across the USA.

Whereas KeHE requires that its vendors agree to payment terms of 2%10net30 for products that they order.

Whereas KeHE is a certified B-Corp according to the B Lab standards for B-Corp Certification.

Whereas Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.

Whereas KeHE consistently violates its own contracts and the law by taking a 2% discount on every single invoice it receives from vendors, regardless of whether it pays after the 10 day terms stated in its contracts.

Whereas this practice is illegal and theft of monies rightfully owed to businesses, in addition to time theft as companies are forced to spend time fighting to get the monies back that KeHE improperly takes as regular operating procedure.

Whereas violating the law is bad enough, but KeHE continuing to be a certified B-Corp brings into question the meaning, standards and practices of B-Lab and other Certified B-Corps.

As such the below companies and their members request the following courses of action:

KeHE should immediately cease its practice of taking a 2% discount off invoices unless it can prove in every single instance that it has acted in good faith and paid invoices within 10 days as their contracts stipulate.

KeHE shall also endeavor to payback vendors for unearned 2% deductions that were in violation of their contract terms.

Should KeHE refuse to comply, B-Lab should revoke KeHE's B-Corp status both to signal to KeHE it will not tolerate illegal practices in addition to preserving the integrity of the B-Corp certification.

This request is an effort to foster better business practices which in theory is the goal of B-Corp Certification, as KeHE's current practices hurt vendors, stores, customers and frankly puts KeHE in violation of the law.

We look forward to a positive resolution where we can have a win/win scenario for all parties involved.