<PAGE>

                       NASH FINCH COMPANY AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
--------------------------------------------------------------------------------
This discussion of the Company's results of operations and financial condition
should be read in conjunction with the Consolidated Financial Statements and
accompanying notes.

<TABLE>
<CAPTION>


RESULTS OF OPERATIONS
-----------------------------------------------------------------------
                                           1995     1994      1993
-----------------------------------------------------------------------
<S>                                       <C>       <C>      <C>
Total Revenues . . . . . . . . . .        100.0%    100.0%    100.0%
                                          -----     -----     -----
                                          -----     -----     -----
Gross Margin . . . . . . . . . . .         14.5      14.9      14.6
Operating Expense. . . . . . . . .         12.1      12.5      12.2
Depreciation and Amortization. . .          1.0       1.1       1.1
Interest Expense . . . . . . . . .           .4        .4        .4
Earnings before Income Taxes . . .          1.0        .9        .9
Income Taxes . . . . . . . . . . .           .4        .4        .4
                                          -----     -----     -----
Net Earnings . . . . . . . . . . .           .6        .5        .5
                                          -----     -----     -----
                                          -----     -----     -----
</TABLE>

REVENUES

Total revenues increased 2.0% during fiscal 1995 to $2.889 billion compared to
$2.832 billion in 1994 and $2.724 billion in 1993. The increase in 1995 is
largely attributable to continued growth of the military wholesale business from
two distribution centers on the east coast and the addition of several new
independent retail accounts during the year.

     Wholesale segment revenues increased 6.2% to $1.969 billion from $1.855
billion in 1994. The sale of Thomas & Howard of Hickory, Inc. ("T & H"), the
Company's convenience store distributor, on December 2, 1995, had a negative
effect on revenue gains for the year. Had the sale taken place as of year end,
revenues would have been $20 million higher. The volume lost as a result of the
T & H divestiture is expected to be more than offset in fiscal 1996 by the
acquisition of Military Distributors of Virginia ("MDV"), which was completed
January 2, 1996. Fiscal 1994 wholesale revenues increased 1.0% over 1993 due to
the addition of new store accounts in the Southeast.

     Retail segment revenues declined 7.1% from $926 million in fiscal 1994 to
$860 million in 1995. The reduction is primarily the result of the sale of three
stores to existing independent customers and the closing of eight stores which
were not meeting the Company's revenue and profit expectations. In spite of low
food price inflation, deflation in some product groups and increasing
competitive pressures in certain market areas, same store sales remained
constant compared to last year. Retail revenues during 1994 increased 10% over
1993 largely due to the the acquisition of 23 Food Folks stores in North
Carolina and six supermarkets in eastern Kentucky.

GROSS MARGINS

Gross margins were 14.5% in 1995 compared to 14.9% in 1994 and 14.6% in 1993.
The decline reflects a growing proportion of wholesale revenues which achieve
lower margins than retail. Wholesale revenues represented 68.4% of total
revenues compared to 65.7% of total revenues last year. Although consolidated
gross margins are lower, both wholesale and retail margins have improved
compared to last year. Centralization of buying functions for several warehouses
and increased margins on perishable products contributed to improved margins at
the wholesale level. Further centralization of buying functions in fiscal 1996
should result in operational efficiencies and lower product costs. Overall
retail margin improvements resulted from a greater sales mix of higher margin
specialty departments in the stores. In 1994, retail margin improvements were
attributed to the acquisition of a number of smaller conventional stores which
operate at higher margins than larger warehouse-type stores.

     The LIFO charge for the year was $.1 million compared to $1.4 million in
1994 and a credit of $2.0 million in 1993. The current year charge is net of a
$1.5 million credit related to a reduction in inventory levels by T & H prior to
the sale of this subsidiary. The credit recognized in fiscal 1993 reflected the
price declines initiated by tobacco companies during that year.

OPERATING EXPENSES

Operating expenses as a percent of total revenues were 12.1% in 1995 compared to
12.5% and 12.2% in 1994 and 1993, respectively. Expense levels this year were
favorably impacted by an increasing proportion of wholesale business which
typically operates at lower expense levels than retail. Productivity gains and
tighter cost controls at the wholesale level also contributed to a reduction in
overall expenses compared to last year.

     Operating expenses were negatively affected by a pretax provision of $1.6
million for continuing lease costs related to two closed stores. In addition,
when comparing 1995 to 1994, the Company incurred an additional $3.6 million in
information systems costs, largely related to preliminary research
and initial project development of new computer systems.

     The upward trend in these computer-related costs is expected to continue
through fiscal 1996 as further development occurs and the project moves toward
implementation in late 1996 and throughout fiscal 1997.

     In 1994, operating expenses increased over 1993 due to a higher proportion
of business by the Company owned retail stores.

DEPRECIATION AND AMORTIZATION

Depreciation and amortization expense decreased 7.6% from 1994 expense levels.
The decline reflects the reduction in the number of corporate stores owned,
lower capital expenditures and several significant projects still in progress at
the end of the fiscal year. The increase in 1994 compared to 1993 was primarily
due to the full year depreciation and amortization costs resulting from the
acquisition of the Easter supermarket chain in mid-year 1993.

INTEREST EXPENSE

Interest expense decreased 5.2% in 1995 due to a reduction in average short-term
borrowings. Although average borrowing rates increased compared to last year,
proceeds from both the sale of notes receivables and the T & H operation
significantly reduced borrowing requirements in the second half of the year. As
a percent of revenues, interest expense was .37%, .40% and .37% for 1995, 1994
and 1993, respectively.

EARNINGS BEFORE TAXES

Earnings before income taxes increased 10.8% compared to fiscal 1994. Wholesale
performance improved due to the growth in military business, new independent
customers and better expense controls. Retail segment results were negatively
impacted by continuing competitive pressures and store closing costs. Nash
DeCamp, the Company's produce marketing subsidiary showed improved earnings from
both its domestic and South American farming operations over last year, when an
excessive supply of quality product depressed product prices. Also, the sale of
T & H capital stock resulted in the recognition of a pretax gain of $1.8 million
this year, with an additional $1.7 million in consulting fees to be recognized
over the next three years.

14
<PAGE>

                       NASH FINCH COMPANY AND SUBSIDIARIES

INCOME TAXES

The effective tax rate decreased to 39.1% in 1995 from 40.0% in 1994 and 40.5%
in 1993. The reduction was due to the utilization of available capital loss
carryforwards to partially offset the taxable gain from the sale of T & H. The
effective tax rate is expected to return to previous levels in 1996.

LIQUIDITY AND CAPITAL RESOURCES

Historically, the Company has financed its capital needs through a combination
of internal and external sources. These sources include cash flow from
operations, short-term bank borrowings, various types of long-term debt, leasing
and equity financing. As external financing is required in the future, the
Company believes that its debt structure and financial position will continue to
support its ability to obtain the required funds.

     Cash provided from operating activities was $85.8 million in 1995, an
increase of $45.1 million over 1994. Improved asset management as well as the
sale of T & H for cash, contributed largely to an overall reduction in the
non-cash elements of working capital. As a result, working capital at December
30, 1995 of $104.0 million included cash and cash equivalents of $26.0 million.
In addition, the sale or closing of a number of corporate stores during 1995
also contributed to the increase in positive cash flow from operations. In
fiscal 1994, cash provided from operations decreased $46.6 million from the 1993
levels due primarily to the net increase in working capital, particularly
inventories.

     At December 30, 1995 the Company had no outstanding short-term borrowings
compared to $41.4 million and $38.3 million at the end of 1994 and 1993,
respectively. The Company has committed lines of credit totaling $7.5 million
and uncommitted lines of $47.5 million with a number of banks.

     On December 27, 1995, the Company entered into a 5-year, $100.0 million
revolving credit facility with several participating banks. This financing was
placed to provide sufficient funding for acquisitions, capital projects and
working capital requirements. Management believes the Company will continue to
have adequate access to short-term and long-term credit to meet its needs in the
foreseeable future.

     Capital projects designed to maintain operating capacity, expand operations
or improve efficiency totaled $33.3 million in 1995 compared to $34.9 and $36.4
in 1994 and 1993, respectively. These projects have typically been funded
through operating cash flows. For 1996, capital spending is projected to be
$62.1 million, a substantial increase over 1995 due to several retail store
replacements, expansions and remodels, and information systems improvements.

     During 1995, the Company provided financial assistance
in the form of secured loans totaling $9.2 million to new or existing
independent retailers. These loans are generally used to maintain and grow their
businesses. In September 1995, the Company established an on-going agreement
with a bank to sell qualified customer notes at face value with recourse.

     Dividend payments in 1995 were $.74 per share, up from $.73 in 1994. These
amounts represented 46% and 51% of net earnings in each year, respectively.
Return on average stockholders' equity was 8.3% in 1995, up from 7.6% in 1994.

PRICE RANGE OF COMMON STOCK
AND DIVIDENDS
-------------------------------------------------------------------------------
NASH Finch Company Common Stock is traded in the national over-the-counter
market under the symbol NAFC. The following table sets forth, for each of the
calendar periods indicated, the range of high and low closing sales prices for
the Common Stock as reported by the NASDAQ National Market System, and the cash
dividends paid per share of Common Stock. Prices do not include adjustments for
retail mark-ups, mark-downs or commissions. At December 31, 1995 there were
1,940 stockholders of record.
-------------------------------------------------------------------------------

<TABLE>
<CAPTION>

--------------------------------------------------------------------------------------------------
                                                                                 Dividends
                                          1995                  1994             Per Share
                                     --------------        ----------------    -------------------
                                     HIGH        LOW       High      Low        1995       1994
--------------------------------------------------------------------------------------------------
<S>                                 <C>          <C>       <C>       <C>        <C>        <C>
First Quarter. . . . . . . . . . .     16 3/4    15 1/4    18 1/4    16          .18       .18
Second Quarter . . . . . . . . . .     16 3/4    15 5/8    18        16          .18       .18
Third Quarter. . . . . . . . . . .     20 1/2    16        18        16 1/4      .18       .18
Fourth Quarter . . . . . . . . . .   19 15/16    17 1/4    17        15 3/8      .20       .19
--------------------------------------------------------------------------------------------------
</TABLE>

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
A SUMMARY OF QUARTERLY FINANCIAL                 FIRST QUARTER                SECOND QUARTER
INFORMATION IS PRESENTED.                          12 WEEKS                    12 WEEKS
                                            -----------------------     ------------------------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)       1995         1994          1995          1994
-------------------------------------------------------------------------------------------------
<S>                                         <C>          <C>             <C>           <C>
Net sales and other revenues . . .          $ 623,598     618,165        676,514        670,362
Cost of sales. . . . . . . . . . .            534,312     527,696        575,582        566,167
Earnings before income taxes . . .              4,519       4,320          9,835          8,761
Income taxes . . . . . . . . . . .              1,830       1,749          3,983          3,549
Net earnings . . . . . . . . . . .              2,689       2,571          5,852          5,212
Percent to sales and revenues. . .                .43         .41            .86            .78
Net earnings per share . . . . . .           $    .25         .24            .54            .48
Average number of
   shares outstanding. . . . . . .             10,874      10,872         10,875         10,872
-------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>

-------------------------------------------------------------------------------------------------
A SUMMARY OF QUARTERLY FINANCIAL                  THIRD QUARTER              FOURTH QUARTER
INFORMATION IS PRESENTED.                           16 WEEKS                    12 Weeks
                                             --------------------        ------------------------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)        1995        1994          1995            1994
-------------------------------------------------------------------------------------------------
<S>                                          <C>         <C>             <C>           <C>
Net sales and other revenues . . .            918,825     886,956        669,899        656,517
Cost of sales. . . . . . . . . . .            785,623     754,113        574,324        562,316
Earnings before income taxes . . .              8,491       6,806          5,750          5,923
Income taxes . . . . . . . . . . .              3,439       2,756          1,929          2,276
Net earnings . . . . . . . . . . .              5,052       4,050          3,821          3,647
Percent to sales and revenues. . .                .55         .46            .57            .56
Net earnings per share . . . . . .                .46         .37            .35            .33
Average number of
shares outstanding . . . . . . . .             10,875      10,874         10,877         10,874
-------------------------------------------------------------------------------------------------
</TABLE>

                                                                              15
<PAGE>

                       NASH FINCH COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
Fiscal years ended December 30, 1995,
December 31, 1994 and January 1, 1994                               1995                1994            1993
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
--------------------------------------------------------------------------------------------------------------
<S>                                                              <C>                <C>              <C>
INCOME:
   Net sales . . . . . . . . . . . . . . . . . . . . . . . . .   $2,831,114          2,779,330       2,679,410
   Other revenues. . . . . . . . . . . . . . . . . . . . . . .       57,722             52,670          44,125
                                                                 ----------         ----------      ----------
       Total revenues. . . . . . . . . . . . . . . . . . . . .    2,888,836          2,832,000       2,723,535
COST AND EXPENSES:
   Cost of sales . . . . . . . . . . . . . . . . . . . . . . .    2,469,841          2,410,292       2,325,249
   Selling, general and administrative,
       and other operating expenses. . . . . . . . . . . . . .      350,201            352,683         332,349
   Depreciation and amortization . . . . . . . . . . . . . . .       29,406             31,831          29,145
   Interest expense. . . . . . . . . . . . . . . . . . . . . .       10,793             11,384          10,114
                                                                 ----------         ----------      ----------
       Total costs and expenses. . . . . . . . . . . . . . . .    2,860,241          2,806,190       2,696,857
       Earnings before income taxes. . . . . . . . . . . . . .       28,595             25,810          26,678
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . .       11,181             10,330          10,804
                                                                 ----------         ----------      ----------
   Net earnings. . . . . . . . . . . . . . . . . . . . . . . .   $   17,414             15,480          15,874
                                                                 ----------         ----------      ----------
                                                                 ----------         ----------      ----------
Weighted average number of common shares outstanding . . . . .       10,875             10,873          10,872
                                                                 ----------         ----------      ----------
                                                                 ----------         ----------      ----------
Earnings per share . . . . . . . . . . . . . . . . . . . . . .   $     1.60               1.42            1.46
                                                                 ----------         ----------      ----------
                                                                 ----------         ----------      ----------
--------------------------------------------------------------------------------------------------------------
</TABLE>

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.


INDEPENDENT AUDITORS' REPORT                      [LOGO]   ERNST & YOUNG LLP
-------------------------------------------------------------------------------
The Board of Directors and Stockholders
Nash Finch Company

We have audited the accompanying consolidated balance sheet of Nash Finch
Company and Subsidiaries as of December 30, 1995, and the related consolidated
statements of income, stockholders' equity, and cash flows for the year then
ended. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit. The financial statements of Nash Finch Company
for the years ended December 31, 1994 and January 1, 1994, were audited by other
auditors whose report dated March 3, 1995, expressed an unqualified opinion on
those statements.

     We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.

     In our opinion, the 1995 financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Nash
Finch Company and subsidiaries at December 30, 1995,
and the consolidated results of their operations and their cash flows for the
year then ended, in conformity with generally accepted accounting principles.


                                        /s/ Ernst & Young LLP

Minneapolis, MN
February 19, 1996

16
<PAGE>

                       NASH FINCH COMPANY AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
Fiscal years ended December 30, 1995,
December 31, 1994, and January 1, 1994                               1995               1994             1993
(IN THOUSANDS)
---------------------------------------------------------------------------------------------------------------------
<S>                                                                <C>                <C>             <C>
OPERATING ACTIVITIES:
   Net earnings. . . . . . . . . . . . . . . . . . . . . . . .      $17,414             15,480          15,874
   Adjustments to reconcile net earnings to net cash
    provided by operating activities:
       Depreciation and amortization . . . . . . . . . . . . .       29,406             31,831          29,145
       Provision for bad debts . . . . . . . . . . . . . . . .        3,997              2,187          10,146
       Provision for (recovery from) losses on
         closed lease locations. . . . . . . . . . . . . . . .        1,361                366            (499)
       Deferred income taxes . . . . . . . . . . . . . . . . .       (4,187)             2,874          (4,395)
       Deferred compensation . . . . . . . . . . . . . . . . .         (901)              (539)           (573)
       Earnings of equity investments. . . . . . . . . . . . .         (501)              (902)         (1,534)
       Other . . . . . . . . . . . . . . . . . . . . . . . . .         (157)              (545)             65
   Changes in operating assets and liabilities:
       Accounts and notes receivable . . . . . . . . . . . . .        8,115             (9,418)           (161)
       Inventories . . . . . . . . . . . . . . . . . . . . . .       14,680             (6,880)         26,464
       Prepaid expenses. . . . . . . . . . . . . . . . . . . .       (3,441)            (1,087)           (411)
       Accounts payable and outstanding checks . . . . . . . .       15,339              6,979             649
       Accrued expenses. . . . . . . . . . . . . . . . . . . .        2,160              2,553           5,385
       Income taxes. . . . . . . . . . . . . . . . . . . . . .        2,508             (2,172)         (2,785)
                                                                   --------          ---------        --------
         Net cash provided by operating activities . . . . . .       85,793             40,727          77,370
                                                                   --------          ---------        --------
INVESTING ACTIVITIES:
       Dividends received. . . . . . . . . . . . . . . . . . .          890                618             506
       Disposals of property, plant and equipment. . . . . . .       14,858             12,501          13,435
       Additions to property, plant and equipment
        excluding capital leases . . . . . . . . . . . . . . .      (33,264)           (34,965)        (36,382)
       Businesses acquired . . . . . . . . . . . . . . . . . .           --             (8,614)        (27,087)
       Investment in an affiliate. . . . . . . . . . . . . . .       (1,379)                --              --
       Loans to customers. . . . . . . . . . . . . . . . . . .       (9,199)            (7,958)        (15,942)
       Payments from customers on loans. . . . . . . . . . . .        8,788              8,093           8,286
       Loans sold including current portion. . . . . . . . . .       13,744                 --              --
       Other . . . . . . . . . . . . . . . . . . . . . . . . .         (137)              (902)           (261)
                                                                   --------          ---------        --------
           Net cash used in investing activities . . . . . . .       (5,699)           (31,227)        (57,445)
                                                                   --------          ---------        --------
FINANCING ACTIVITIES:
       Dividends paid. . . . . . . . . . . . . . . . . . . . .       (8,048)            (7,938)         (7,828)
       Proceeds (payments) of short-term debt. . . . . . . . .      (41,400)             3,100          (9,200)
       Proceeds from long-term debt. . . . . . . . . . . . . .          352                 --              --
       Payments of long-term debt. . . . . . . . . . . . . . .       (5,568)            (2,933)         (2,352)
       Payments of capitalized lease obligations . . . . . . .         (540)            (1,576)           (458)
       Other . . . . . . . . . . . . . . . . . . . . . . . . .           56                 35              14
                                                                   --------          ---------        --------
          Net cash used in financing activities. . . . . . . .      (55,148)            (9,312)        (19,824)
                                                                   --------          ---------        --------
          Net increase in cash and cash equivalents. . . . . .      $24,946                188             101
                                                                   --------          ---------        --------
                                                                   --------          ---------        --------
---------------------------------------------------------------------------------------------------------------------
</TABLE>

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

                                                                              17
<PAGE>

                       NASH FINCH COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------
DECEMBER 30, 1995 AND DECEMBER 31, 1994
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

ASSETS                                                              1995                1994
----------------------------------------------------------------------------------------------
<S>                                                               <C>                 <C>
CURRENT ASSETS:
   Cash and cash equivalents . . . . . . . . . . . . . . . . .    $  26,024              1,078
   Accounts and notes receivable, net. . . . . . . . . . . . .       85,968             98,859
   Inventories . . . . . . . . . . . . . . . . . . . . . . . .      183,957            198,637
   Prepaid expenses. . . . . . . . . . . . . . . . . . . . . .       12,067              8,626
   Deferred tax assets . . . . . . . . . . . . . . . . . . . .        3,674              2,322
                                                                   --------           --------
       Total current assets. . . . . . . . . . . . . . . . . .      311,690            309,522

Investments in affiliates. . . . . . . . . . . . . . . . . . .        8,421              7,432
Notes receivable, noncurrent . . . . . . . . . . . . . . . . .        5,051             16,441

PROPERTY, PLANT AND EQUIPMENT:
   Land. . . . . . . . . . . . . . . . . . . . . . . . . . . .       28,638             27,556
   Buildings and improvements. . . . . . . . . . . . . . . . .      110,887            107,149
   Furniture, fixtures, and equipment. . . . . . . . . . . . .      204,054            214,564
   Leasehold improvements. . . . . . . . . . . . . . . . . . .       25,786             28,205
   Construction in progress. . . . . . . . . . . . . . . . . .        6,538              2,039
   Assets under capitalized leases . . . . . . . . . . . . . .       12,923             12,423
                                                                   --------           --------
                                                                    388,826            391,936
   Less accumulated depreciation and amortization. . . . . . .     (210,787)          (204,985)
                                                                   --------           --------
       Net property, plant and equipment . . . . . . . . . . .      178,039            186,951
   Intangible assets, net. . . . . . . . . . . . . . . . . . .        6,282              7,810
   Deferred tax asset -- net . . . . . . . . . . . . . . . . .        2,835                 --
   Other assets. . . . . . . . . . . . . . . . . . . . . . . .        1,942              3,448
                                                                   --------           --------
       Total assets. . . . . . . . . . . . . . . . . . . . . .     $514,260            531,604
                                                                   --------           --------
                                                                   --------           --------
----------------------------------------------------------------------------------------------
</TABLE>

SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.

18
<PAGE>

                       NASH FINCH COMPANY AND SUBSIDIARIES

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------

LIABILITIES AND STOCKHOLDERS' EQUITY                               1995                   1994
--------------------------------------------------------------------------------------------------
<S>                                                               <C>                 <C>
CURRENT LIABILITIES:
   Outstanding checks, net of cash in banks. . . . . . . . . .    $  28,998             18,649
   Short-term debt payable to banks. . . . . . . . . . . . . .           --             41,400
   Current maturities of long-term debt and
     capitalized lease obligations . . . . . . . . . . . . . .       14,701              5,685
   Accounts payable. . . . . . . . . . . . . . . . . . . . . .      127,592            122,602
   Accrued expenses. . . . . . . . . . . . . . . . . . . . . .       31,745             29,585
   Income taxes. . . . . . . . . . . . . . . . . . . . . . . .        4,652              2,144
                                                                   --------           --------
      Total current liabilities. . . . . . . . . . . . . . . .      207,688            220,065
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . .       71,030             85,289
Capitalized lease obligations. . . . . . . . . . . . . . . . .       10,158             10,671
Deferred compensation. . . . . . . . . . . . . . . . . . . . .        7,625              8,526
Other  . . . . . . . . . . . . . . . . . . . . . . . . . . . .        2,446                784

STOCKHOLDERS' EQUITY:
   Preferred stock -- no par value
     Authorized 500 shares; none issued. . . . . . . . . . . .           --                 --
   Common stock of $1.66 2/3 par value
     Authorized 25,000 shares, issued 11,224 shares in
       1995 and 1994 . . . . . . . . . . . . . . . . . . . . .       18,706             18,706
   Additional paid-in capital. . . . . . . . . . . . . . . . .       12,013             11,977
   Foreign currency translation adjustment--
     net of a $623 deferred tax benefit. . . . . . . . . . . .         (950)              (572)
   Retained earnings . . . . . . . . . . . . . . . . . . . . .      188,578            179,212
                                                                   --------           --------
                                                                    218,347            209,323
   Less cost of 346 shares and 349 shares of
     common stock in treasury, respectively. . . . . . . . . .       (3,034)            (3,054)
                                                                   --------           --------
       Total stockholders' equity. . . . . . . . . . . . . . .      215,313            206,269
                                                                   --------           --------
Commitments. . . . . . . . . . . . . . . . . . . . . . . . . .           --                 --
                                                                   --------           --------
       Total liabilities and stockholders' equity. . . . . . .     $514,260            531,604
                                                                   --------           --------
                                                                   --------           --------
----------------------------------------------------------------------------------------------------
</TABLE>

                                                                              19
<PAGE>

                       NASH FINCH COMPANY AND SUBSIDIARIES

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

Fiscal period ended December 30, 1995
December 31, 1994 and January 1, 1994
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)         Common stock         Additional
                                              -------------------       paid-in         Retained
                                               Shares     Amount        capital         earnings
--------------------------------------------------------------------------------------------------
<S>                                            <C>        <C>           <C>             <C>
BALANCE AT JANUARY 2, 1993 . . . . . . . . .   11,224     $18,706         11,944        163,624
Net earnings . . . . . . . . . . . . . . . .       --          --             --         15,874
Dividend declared of $.72 per share. . . . .       --          --             --         (7,828)
Treasury stock issued upon
   exercise of options . . . . . . . . . . .       --          --             10             --
                                              -------     -------        --------      --------
BALANCE AT JANUARY 1, 1994 . . . . . . . . .   11,224      18,706         11,954        171,670
Net earnings . . . . . . . . . . . . . . . .       --          --             --         15,480
Dividend declared of $.73 per share. . . . .       --          --             --         (7,938)
Treasury stock issued upon
   exercise of options . . . . . . . . . . .       --          --             23             --
Foreign currency translation
   adjustment -- net of a
   $381 deferred tax benefit . . . . . . . .       --          --             --             --
                                              -------     -------        --------      --------
BALANCE AT DECEMBER 31, 1994 . . . . . . . .   11,224      18,706         11,977        179,212
Net earnings . . . . . . . . . . . . . . . .       --          --             --         17,414
Dividend declared of $.74 per share. . . . .       --          --             --         (8,048)
Treasury stock issued upon
   exercise of options . . . . . . . . . . .       --          --             36             --
Foreign currency translation
   adjustment --net of a
   $252 deferred tax benefit . . . . . . . .       --          --             --             --
                                              -------     -------        --------      --------
BALANCE AT DECEMBER 30, 1995 . . . . . . . .   11,224     $18,706         12,013        188,578
                                              -------     -------        --------      --------
                                              -------     -------        --------      --------
--------------------------------------------------------------------------------------------------

<CAPTION>

                                                Foreign
                                                currency         Treasury stock          Total
                                              translation   ----------------------   stockholders'
                                              adjustment     Shares        Amount        equity
--------------------------------------------------------------------------------------------------
<S>                                           <C>            <C>         <C>          <C>
BALANCE AT JANUARY 2, 1993 . . . . . . . . .       --        (352)       $(3,070)       191,204
Net earnings . . . . . . . . . . . . . . . .       --          --             --         15,874
Dividend declared of $.72 per share. . . . .       --          --             --         (7,828)
Treasury stock issued upon
   exercise of options . . . . . . . . . . .       --           1              4             14
                                              -------     -------        --------      --------
BALANCE AT JANUARY 1, 1994 . . . . . . . . .       --        (351)        (3,066)       199,264
Net earnings . . . . . . . . . . . . . . . .       --          --             --         15,480
Dividend declared of $.73 per share. . . . .       --          --             --         (7,938)
Treasury stock issued upon
   exercise of options . . . . . . . . . . .       --           2             12             35
Foreign currency translation
   adjustment --net of a
   $381 deferred tax benefit . . . . . . . .     (572)         --             --           (572)
                                              -------     -------        --------      --------
BALANCE AT DECEMBER 31, 1994 . . . . . . . .     (572)       (349)        (3,054)       206,269
Net earnings . . . . . . . . . . . . . . . .       --          --             --         17,414
Dividend declared of $.74 per share. . . . .       --          --             --         (8,048)
Treasury stock issued upon
   exercise of options . . . . . . . . . . .       --           3             20             56
Foreign currency translation
   adjustment -- net of a
   $252 deferred tax benefit . . . . . . . .     (378)         --             --           (378)
                                              -------     -------        --------      --------
BALANCE AT DECEMBER 30, 1995 . . . . . . . .     (950)       (346)       $(3,034)       215,313
                                              -------     -------        --------      --------
                                              -------     -------        --------      --------

--------------------------------------------------------------------------------------------------
</TABLE>

See accompanying notes to consolidated financial statements.

NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
-----------------------------------------------
(1) ACCOUNTING POLICIES

FISCAL YEAR

Nash Finch Company's fiscal year ends on the Saturday nearest to December 31.
Fiscal years 1995, 1994 and 1993 consisted of 52 weeks.

PRINCIPLES OF CONSOLIDATION

The accompanying financial statements include the accounts of Nash Finch Company
(the Company), its majority-owned subsidiaries and the Company's share of net
earnings or losses of 50%-owned companies. All material intercompany accounts
and transactions have been eliminated in the consolidated financial statements.

CASH AND CASH EQUIVALENTS

In the accompanying financial statements, and for purposes of the statements of
cash flows, cash and cash equivalents include cash on hand, short-term 
investments with original maturities of three months or less.

INVENTORIES

Inventories are stated at the lower of cost or market. At both December 30, 1995
and December 31, 1994, approximately 89% of the Company's inventories are valued
on the last-in, first-out (LIFO) method. During fiscal 1995 the Company recorded
a LIFO charge of $.1 million compared to $1.4 million in 1994. During 1995,
inventory quantities were reduced prior to the sale of a subsidiary. The
reduction resulted in a liquidation of LIFO inventory, the effect of which
increased pretax income by approximately $1.5 million. The remaining inventories
are valued on the first-in, first-out (FIFO) method. If the FIFO method of
accounting for inventories had been used, inventories would have been $40.0
million and $43.9 million higher at December 30, 1995 and December 31, 1994,
respectively.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost. Assets under capitalized 
leases are recorded at the present value of future lease payments or fair 
market value, whichever is lower. Expenditures which improve or extend the 
life of the respective assets are capitalized while maintenance and repairs 
are expensed as incurred.


20
<PAGE>

                       NASH FINCH COMPANY AND SUBSIDIARIES

INTANGIBLE ASSETS

Intangible assets consist primarily of covenants not to compete and goodwill,
and are carried at cost less accumulated amortization. Costs are amortized over
the estimated useful lives of the related assets ranging from 2-20 years.
Amortization expense charged to operations for fiscal years ended December 
30, 1995, December 31, 1994 and January 1, 1994 was $1.8 million, $2.2 
million and $1.3 million, respectively. The accumulated amortization of 
intangible assets was $5.1 million and $3.7 million at December 30, 1995 and 
December 31, 1994, respectively.

DEPRECIATION AND AMORTIZATION

Property, plant and equipment are depreciated on a straight-line basis over the
estimated useful lives of the assets. Leasehold improvements and capitalized
leases are amortized to expense on a straight-line basis over the term of the
lease.

INCOME TAXES

Deferred income taxes are recognized for the future tax consequences
attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases. Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to
taxable income in the years in which those temporary differences are expected to
be recovered or settled.

EARNINGS PER SHARE

Earnings per share are computed by dividing net earnings by the weighted average
number of common shares outstanding during each year. Options granted under the
Company's stock option plans are considered common stock equivalents but have
been excluded from the computation since the effect
is not material.


FOREIGN CURRENCY TRANSLATION

Adjustments resulting from the translation of assets and liabilities of a
foreign investment are included in stockholders' equity.

USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.

NEW PRONOUNCEMENTS

The Company will adopt Statement of Financial Accounting Standards (SFAS) No.
121, ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED
ASSETS TO BE DISPOSED OF, effective December 31, 1995. The Company does not
expect the adoption of this standard to have a material impact on the Company's
financial position or results of operations.

(2) TROUBLED DEBT RESTRUCTURE

On January 31, 1994, the Company acquired the assets of Food Folks, Inc. a
former customer with twenty-three stores located primarily in North Carolina, as
part of a troubled debt restructuring agreement. Under the terms of the
agreement, assets with a fair market value of approximately $12.1 million were
transferred to the Company in exchange for $1.6 million in cash, the assumption
of liabilities of $3.3 million and the forgiveness of $7.2 million in debt, net
of a bad debt reserve established by the Company. The notes representing this
debt were sold with limited recourse on April 2, 1992 .

     On December 1, 1994, the Company acquired certain operating assets and 
real estate of six supermarkets, with a fair market value of $4.6 million. 
The supermarkets, located in eastern Kentucky, were acquired from the 
bankrupt estates of Paintsville Foods, Inc., a former customer, and Wal-Lyn 
Management, Inc., one of its affiliates. The settlement, net of the fair 
market value of the assets transferred, resulted in a bad debt write-off of 
$5.5 million, substantially all of which was provided for as of January 1, 
1994.

(3) ACCOUNTS AND NOTES RECEIVABLE

Accounts and notes receivable at the end of fiscal years
1995 and 1994 are comprised of the following components
(in thousands):

<TABLE>
<CAPTION>
-------------------------------------------------------------------------
                                                  1995            1994
-------------------------------------------------------------------------
<S>                                            <C>            <C>
Customer notes receivable --
  current portion. . . . . . . . . . . . .      $ 2,232          2,861
Customer accounts receivable . . . . . . .       73,153         82,394
Other receivables. . . . . . . . . . . . .       11,992         15,173
Allowance for doubtful accounts. . . . . .       (1,409)        (1,569)
                                                -------        -------
Net current accounts and
  notes receivable . . . . . . . . . . . .      $85,968         98,859
                                                -------        -------
                                                -------        -------
Noncurrent customer
  notes receivable . . . . . . . . . . . .        8,522         19,492
Allowance for doubtful accounts. . . . . .       (3,471)        (3,051)
                                                -------        -------
Net noncurrent notes receivable. . . . . .      $ 5,051         16,441
                                                -------        -------
                                                -------        -------
</TABLE>

     Operating results include bad debt expense totaling $4.0 million, $2.2
million, and $10.1 million during fiscal years 1995, 1994 and 1993,
respectively.

     On September 8, 1995, the Company entered into an agreement with a
financial institution whereby the Company initially sold $13.7 million in
customer notes and can continue to sell on an ongoing basis additional customer
notes receivable. The notes, which have maturities through the year 2002, were
sold at face value with recourse. The Company is responsible for collection of
the notes and remits the principal plus a floating rate of interest to the
purchaser on a monthly basis. Proceeds from the sale of the notes receivable
were used to pay off short-term bank debt.

     The remaining balances of such sold notes receivable totaled $15.0 million
and $2.7 million at December 30, 1995 and December 31, 1994, respectively. The
Company is contingently liable should these notes become uncollectible.

     Substantially all notes receivable are based on floating interest rates
which adjust to changes in market rates. As a result, the carrying value of
notes receivable approximates market value.

(4) LONG-TERM DEBT AND CREDIT FACILITIES

Long-term debt at the end of the fiscal years 1995 and 1994 is summarized as
follows (in thousands):
<TABLE>
<CAPTION>

-----------------------------------------------------------------------
                                                  1995           1994
-----------------------------------------------------------------------
<S>                                             <C>            <C>
Industrial development bonds,
  5.4% to 7.8% due in various
  installments through 2009. . . . . . . .      $ 5,385          5,875
Term loans, 7.5% to 9.9% due
  in various installments
  through 2008 . . . . . . . . . . . . . .       71,167         75,000
Notes payable and mortgage
  notes, 9.3% to 12.0% due
  in various installments
  through 2003 . . . . . . . . . . . . . .        8,666          9,559
                                                -------        -------
                                                 85,218         90,434
Less current maturities. . . . . . . . . .       14,188          5,145
                                                -------        -------
                                                $71,030         85,289
                                                -------        -------
                                                -------        -------

</TABLE>

                                                                              21
<PAGE>

                       NASH FINCH COMPANY AND SUBSIDIARIES


     At December 30, 1995, land, buildings, and other assets pledged to secure
outstanding mortgage notes and obligations under issues of industrial
development bonds have a depreciated cost of approximately $5.7 million and
$4.8 million, respectively.

     On December 27, 1995, the Company finalized a 5-year revolving credit
facility commitment with five participating banks in the amount of $100 million.
Borrowings under this agreement will bear interest at variable rates generally
equal to the London Interbank Offered Rate (LIBOR) plus .35%. The revolving
credit will be used to fund acquisitions and working capital requirements. There
were no borrowings under this agreement at December 30, 1995.

     Aggregate annual maturities of long-term debt for the five fiscal years
after December 30, 1995 are as follows (in thousands):
<TABLE>
<CAPTION>
---------------------------------------------------
<S>                                        <C>
1996 . . . . . . . . . . . . . . . . . .   $14,188
1997 . . . . . . . . . . . . . . . . . .     6,061
1998 . . . . . . . . . . . . . . . . . .     6,627
1999 . . . . . . . . . . . . . . . . . .    17,105
2000 and thereafter. . . . . . . . . . .    41,237
---------------------------------------------------
</TABLE>

     Interest paid was $10.8 million, $11.4 million and $10.1 million, for the
fiscal years 1995, 1994 and 1993, respectively.

     The Company entered into a three-year swap agreement with a major financial
institution as a means of managing its interest expense. The agreement which is
based on a notional amount of $25 million, calls for an exchange of interest
payments with the company receiving payments based on fixed rate and making
payments based on a LIBOR floating rate. The differential to be paid or received
is accrued as interest rates change and recognized as an adjustment to interest
expense related to the debt. The related amount payable to or receivable from
counterparties is included in other liabilities or assets. The agreement expires
in December 1996. The fair values of the swap agreements are not recognized in
the financial statements.


     In addition, the Company maintains formal and informal lines of credit at
various banks. Generally banks are compensated through fees on used and unused
lines of credit. At December 30, 1995 unused formal lines of credit amounted to
$7.5 million.

     Based on borrowing rates currently available to the Company for long-term
financing with similar terms and average maturities, the fair value of long-term
debt utilizing discounted cash flows is $90.1 million.

(5) INCOME TAXES

Effective January 3, 1993, the Company adopted the provisions of SFAS No. 109,
ACCOUNTING FOR INCOME TAXES. The effect of this change in accounting for income
taxes was not material. Prior years' financial statements were not restated to
apply the provisions of SFAS No. 109.

     Income tax expense for fiscal years 1995, 1994 and 1993 is made up of the
following components (in thousands):

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
                                                1995                1994               1993
----------------------------------------------------------------------------------------------
<S>                                           <C>                 <C>              <C>
Current:
   Federal . . . . . . . . . . . . . .        $12,244               5,799           12,344
   State . . . . . . . . . . . . . . .          2,872               1,296            2,865
Deferred:
   Federal . . . . . . . . . . . . . .         (3,145)              2,691           (3,558)
   State . . . . . . . . . . . . . . .           (790)                564             (837)
                                              -------              ------          -------
      Total. . . . . . . . . . . . . .        $11,181              10,330           10,804
                                              -------              ------          -------
                                              -------              ------          -------
</TABLE>

     Total income tax expense represents effective tax rates of 39.1%, 40.0% and
40.5%, for the fiscal years 1995, 1994, and 1993, respectively. The reasons for
differences compared with the U.S. federal statutory tax rate (expressed as a
percentage of pretax income) are as follows:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
                                                            1995           1994           1993
--------------------------------------------------------------------------------------------------
<S>                                                         <C>             <C>           <C>
Federal statutory tax rate . . . . . . . . . . . . .         35.0%          35.0%          35.0%
Items affecting federal
   income tax rate:
State taxes, net of federal
   income tax benefit. . . . . . . . . . . . . . . .          4.9            4.7            4.9
Other net. . . . . . . . . . . . . . . . . . . . . .          (.8)            .3             .6
                                                             ----           ----           ----
Effective tax rate . . . . . . . . . . . . . . . . .         39.1%          40.0%          40.5%
                                                             ----           ----           ----
                                                             ----           ----           ----

</TABLE>

     Income taxes paid were $10.8 million, $9.2 million and $18.0 million during
fiscal years 1995, 1994 and 1993, respectively.

     The tax effects of temporary differences that give rise to significant
portions of the deferred tax assets and deferred tax liabilities at December 30,
1995, December 31, 1994 and January 1, 1994, are presented below (in thousands):
<TABLE>
<CAPTION>

                                                           1995             1994          1993

--------------------------------------------------------------------------------------------------
<S>                                                     <C>             <C>            <C>
Deferred tax assets:
   Accounts and notes receivable,
    principally due to allowance
    for doubtful accounts. . . . . . . . . . . . . .     $  1,964          1,412          6,235
   Inventories, principally due to
    additional costs inventoried
    for tax purposes pursuant to
    the Tax Reform Act of 1986 . . . . . . . . . . .        1,654          1,745          1,653
   Health care claims, principally
    due to accrual for financial
    reporting purposes . . . . . . . . . . . . . . .        1,073            684            345
   Deferred compensation,
    principally due to accrual for
    financial reporting purposes . . . . . . . . . .        3,173          3,329          3,608
   Compensated absences,
    principally due to accrual for
    financial reporting purposes . . . . . . . . . .        1,379          1,263          1,124
   Compensation and casualty loss,
    principally due to accrual for
    financial reporting purposes . . . . . . . . . .        2,135          1,842          1,407
   Purchased intangibles . . . . . . . . . . . . . .        1,958            846            424
   Closed locations. . . . . . . . . . . . . . . . .        1,110            500            589
   Other . . . . . . . . . . . . . . . . . . . . . .        1,193            757            359
                                                         --------       --------       --------
        Total gross deferred tax assets. . . . . . .       15,639         12,378         15,744
   Less valuation allowance. . . . . . . . . . . . .           --             --             --
                                                         --------       --------       --------
        Net deferred tax assets. . . . . . . . . . .       15,639         12,378         15,744
                                                         --------       --------       --------
Deferred tax liabilities:
   Plant and equipment,
    principally due to
    differences in depreciation. . . . . . . . . . .        5,978          6,402          7,255
   Inventories, principally due to
    differences in LIFO basis. . . . . . . . . . . .        2,070          2,661          2,724
   Other . . . . . . . . . . . . . . . . . . . . . .        1,082            993            569
                                                         --------       --------       --------
        Total gross deferred
         tax liabilities . . . . . . . . . . . . . .        9,130         10,056         10,548
                                                         --------       --------       --------
        Net deferred tax asset . . . . . . . . . . .     $  6,509          2,322          5,196
                                                         --------       --------       --------
                                                         --------       --------       --------
</TABLE>

     Since it is more likely than not that the deferred tax asset of $15,639,
$12,378 and $15,744 at December 30, 1995, December 31, 1994 and January 1, 1994,
respectively, will be principally realized through carry back to taxable income
in prior years, in future reversals of existing taxable temporary differences,
and, to a lesser extent, future taxable income and tax planning strategies, the
Company has determined that

22
<PAGE>
                       NASH FINCH COMPANY AND SUBSIDIARIES


there is no need to establish a valuation allowance for the deferred tax asset
at December 30, 1995, December 31, 1994 and January 1, 1994, as required by
Statement 109.

(6) STOCK RIGHTS AND OPTIONS

Under the Company's 1986 Stockholder Rights Plan, as amended January 18, 1990,
one right is attached to each outstanding share of common stock. Each right
entitles the holder to purchase, under certain conditions, one-half share of
common stock at a price of $28.75 ($57.50 per full share). The rights are not
yet exercisable and no separate rights certificates have been distributed. All
rights expire on March 31, 1996.

     The rights become exercisable 20 days after a "flip-in event" has occurred
or 10 business days (subject to extension) after a person or group makes a
tender offer for 15% or more of the Company's outstanding common stock. A
flip-in event would occur if a person or group acquires (1) 15% of the Company's
outstanding common stock, or (2) an ownership level set by the Board of
Directors at less than 15% if the person or group is deemed by the Board of
Directors to have interests adverse to those of the Company and its
stockholders. The rights may be redeemed by the Company at any time prior to the
occurrence of a flip-in event at $.01 per right. The power to redeem may be
reinstated within 20 days after a flip-in event occurs if the cause of the
occurrence is removed.

     Upon the rights becoming exercisable, subject to certain adjustments or
alternatives, each right would entitle the holder (other than the acquiring
person or group, whose rights become void) to purchase a number of shares of the
Company's common stock having a market value of twice the exercise price of the
right. If the Company is involved in a merger or other business combination, or
certain other events occur, each right would entitle the holder to purchase
common shares of the acquiring company having a market value of twice the
exercise price of the right. Within 30 days after the rights become exercisable
following a flip-in event, the Board of Directors may exchange shares of Company
common stock or cash or other property for exercisable rights.

     On February 13, 1996, the Board of Directors adopted a 1996 Stockholder
Rights Plan, which will be effective April 1, 1996. The terms of the new plan
are essentially the same as the 1986 Stockholder Rights Plan, as amended.

     The Company follows Accounting Principles Board Opinion No. 25, ACCOUNTING
FOR STOCK ISSUED TO EMPLOYEES (APB 25) and related interpretations in accounting
for its employee stock options. Under APB 25, when the exercise price of
employee stock options equals the market price of the underlying stock on the
date of the grant, no compensation expense is recognized.

     On May 10, 1994, the stockholders approved a new stock incentive plan for
officers and key employees. As a result of this action, a previous plan was
terminated. For purposes of the new plan, a total of 645,296 shares (including
245,296 shares remaining from the previous plan) were reserved for the granting
of stock options, restricted stock awards and performance unit awards. Stock
options are granted at 100% of fair market value at date of grant and are
exercisable over a term which may not exceed 10 years from date of grant.
Restricted stock awards are subject to restrictions on transferability and such
conditions for vesting, including continuous employment for specified periods of
time, as may be determined at the date of grant. Performance unit awards are
grants of rights to receive shares of stock if certain performance goals or
criteria, determined at the time of grant, are achieved in accordance with the
terms of the grants.

     All stock options granted under the former plan expired August 15, 1994.
These options were also granted at 100% of fair market value at date of grant
and were exercisable over a term of five years. No restricted stock awards were
granted under the previous plan.

     On May 9, 1995 the stockholders approved a stock option plan for
non-employee directors. Under this plan, for which a total of 40,000 shares were
reserved, annual grants of options to purchase 500 shares are made automatically
to each eligible director following each annual meeting of stockholders. The
stock options are granted at 100% of fair market value at date of grant, become
exercisable six months following the date of grant and may be exercised over a
term of five years from the date of grant.

     At December 30, 1995 under the 1994 plan, options to purchase 253,089
shares of common stock of the Company at an average price of $16.86 per share
and exercisable over a term of five years from the dates of grant, have been
granted and are outstanding. No restricted stock awards have been granted.
Performance unit awards having a maximum potential payout of 139,702 shares have
also been granted and are outstanding. Reserved for the granting of future stock
options, restricted stock awards and performance unit awards are 248,814 shares.

     At December 30, 1995 under the Director Plan, options to purchase 3,500
shares of common stock of the Company, at a price of $16.06 per share and
exercisable over a term of five years from the date of grant, have been granted
and are outstanding. Reserved for the granting of future stock options are
36,000 shares.

     Changes in outstanding options during the three fiscal years ended December
30, 1995 are summarized as follows (in thousands):
<TABLE>
<CAPTION>
--------------------------------------------------------------------------
                                                              Average
                                                            Option Price
                                                  Shares      Per Share
-------------------------------------------------------------------------
<S>                                              <C>        <C>
Options outstanding January 2, 1993. . . .          110        $ 25.34
   Exercised . . . . . . . . . . . . . . .           --
   Surrendered . . . . . . . . . . . . . .         (109)         25.37
   Granted . . . . . . . . . . . . . . . .           --
-------------------------------------------------------------------------
Options outstanding January 1, 1994. . . .            1          23.00
   Exercised . . . . . . . . . . . . . . .           (1)         16.88
   Surrendered . . . . . . . . . . . . . .           (7)         18.19
   Granted . . . . . . . . . . . . . . . .          298          16.86
-------------------------------------------------------------------------
Options outstanding December 31 1994 . . .          291          16.86
   Exercised . . . . . . . . . . . . . . .           (3)         16.72
   Surrendered . . . . . . . . . . . . . .          (36)         16.88
   Granted . . . . . . . . . . . . . . . .            4          16.06
-------------------------------------------------------------------------
Options outstanding December 30 1995 . . .          256          16.85
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Options Exercisable At
   December 30, 1995 . . . . . . . . . . .          105          16.83
   December 31, 1994 . . . . . . . . . . .           65          16.86

</TABLE>

(7) LEASE AND OTHER COMMITMENTS

A substantial portion of the store and warehouse properties of the Company are
leased. The following table summarizes assets under capitalized leases (in
thousands):
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
                                                 1995                   1994
--------------------------------------------------------------------------------
<S>                                             <C>                   <C>
Buildings and improvements . . . . . . . .      $12,923                12,423
Less accumulated amortization. . . . . . .       (4,011)               (4,103)
                                                -------               -------
   Net assets under capitalized leases . .      $ 8,912                 8,320
                                                -------               -------
--------------------------------------------------------------------------------
</TABLE>

                                                                              23

<PAGE>
                       NASH FINCH COMPANY AND SUBSIDIARIES


     At December 30, 1995, future minimum rental payments under noncancelable
leases and subleases are as follows
(in thousands):
<TABLE>
<CAPTION>
-------------------------------------------------------------------------
                                            Operating          Capital
                                             leases            leases
-------------------------------------------------------------------------
<S>                                         <C>                 <C>
1996 . . . . . . . . . . . . . . . . . . .    $  16,816          1,535
1997 . . . . . . . . . . . . . . . . . . .       14,219          1,511
1998 . . . . . . . . . . . . . . . . . . .       12,625          1,475
1999 . . . . . . . . . . . . . . . . . . .       10,957          1,439
2000 and thereafter. . . . . . . . . . . .       56,250         15,242
                                               --------       --------
Total minimum lease payments (a) . . . . .     $110,867         21,202
                                               --------       --------
                                               --------
Less imputed interest (rates
  ranging from 7.9% to 11.5%). . . . . . .                     (10,531)
                                                              --------
Present value of net minimum
  lease payments . . . . . . . . . . . . .                      10,671
Less current maturities. . . . . . . . . .                        (513)
                                                              --------
Capitalized lease obligations. . . . . . .                      10,158
                                                              --------
                                                              --------
</TABLE>

(a)  Future minimum payments for operating and capital leases have not been
     reduced by minimum sublease rentals receivable under noncancelable
     subleases. Total future minimum sublease rentals related to operating and
     capital lease obligations as of December 30, 1995 are $42 million and $1
     million, respectively.

     Total rental expense under operating leases for fiscal years 1995, 1994
and 1993 is as follows (in thousands):
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
                                                  1995          1994            1993
-------------------------------------------------------------------------------------
<S>                                             <C>            <C>            <C>
Total rentals. . . . . . . . . . . . . .        $27,533         28,978         27,706
Less real estate taxes, insurance
  and other occupancy costs. . . . . . .         (2,095)        (2,429)        (2,312)
                                                -------        -------        -------
Minimum rentals. . . . . . . . . . . . .         25,438         26,549         25,394
Contingent rentals . . . . . . . . . . .            312            148            248
Sublease rentals . . . . . . . . . . . .         (7,964)        (7,716)        (7,060)
                                                -------        -------        -------
                                                $17,786         18,981         18,582
                                                -------        -------        -------
</TABLE>

     Most of the Company's leases provide that the Company pay real estate
taxes, insurance and other occupancy costs applicable to the leased premises.
Contingent rentals are determined on the basis of a percentage of sales in
excess of stipulated minimums for certain store facilities. Operating leases
often contain renewal options. Management expects that, in the normal course of
business, leases that expire will be renewed or replaced by other leases.

     The Company has guaranteed certain lease and promissory note obligations of
customers aggregating approximately $16.6 million.

(8) CONCENTRATION OF CREDIT RISK

The Company provides financial assistance in the form of secured loans to some
of its affiliated independent retailers for inventories, store fixtures and
equipment, working capital and store improvements. Loans are secured by liens on
inventory or equipment or both, by personal guarantees and by other types of
collateral. In addition, the Company guarantees lease and promissory note
obligations of customers.

     As of December 30, 1995, the Company has guaranteed outstanding promissory
note obligations of one customer in the amount of $8.9 million and of another
customer in the amount of $3.9 million.

     In the normal course of business, the Company's produce marketing operation
in California makes cash advances to produce growers during various product
growing seasons, to fund production costs. Such advances are repayable at the
end of the respective growing seasons. Unpaid advances are generally secured by
liens on real estate. At December 30, 1995, $8.0 million in notes and growers
advances were outstanding.

     The Company establishes allowances for doubtful accounts based upon the
credit risk of specific customers, historical trends and other information.
Management believes that adequate provisions have been made for any doubtful
accounts.

(9) EMPLOYEE BENEFIT PLANS

The Company has a profit sharing plan covering substantially all employees
meeting specified requirements. Contributions, determined by the Board of
Directors, are made to a noncontributory profit sharing trust based on profit
performances. Profit sharing expense for 1995, 1994 and 1993 was $3.8 million,
$3.5 million and $3.6 million, respectively.

     Certain officers and key employees are participants in a deferred
compensation plan providing fixed benefits payable in equal monthly installments
upon retirement. Annual increments to the deferred compensation plan are charged
to earnings.

(10) POSTRETIREMENT HEALTH CARE BENEFITS

The Company provides certain health care benefits for retired employees.
Substantially all of the Company's employees become eligible for those benefits
when they reach normal retirement age and have a minimum of 15 years of service
with the Company. Prior to 1994, the cost of retiree health care benefits was
recognized as expense as claims were paid.

     During the fourth quarter of 1994, the Company adopted SFAS No. 106,
EMPLOYER'S ACCOUNTING FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS. The
Company has adopted this Statement on a prospective basis, electing to amortize
the liability of $4.9 million over the next twenty years.

     The periodic postretirement benefit costs under SFAS No. 106 were as
follows (in thousands):
<TABLE>
<CAPTION>
----------------------------------------------------------------------
                                                   1995           1994
----------------------------------------------------------------------
<S>                                                <C>            <C>
Service costs. . . . . . . . . . . . . .           $273            235
Interest costs . . . . . . . . . . . . .            382            361
Amortization of unrecognized
  transition obligation. . . . . . . . .            249            248
                                                   ----            ---
Net postretirement costs . . . . . . . .           $904            844
                                                   ----            ---
                                                   ----            ---
</TABLE>

     The actuarial present value of benefit obligations at December 30, 1995
and December 31, 1994 are as follows
(in thousands):
<TABLE>
<CAPTION>
-----------------------------------------------------------------------
                                                  1995            1994
----------------------------------------------------------------------
<S>                                              <C>            <C>
Retirees eligible for benefits . . . . .         $1,903          1,612
Active employees fully eligible. . . . .            493            466
Active employees not fully eligible. . .          3,147          3,191
                                                 ------         ------
                                                 $5,543          5,269
                                                 ------         ------
                                                 ------         ------
</TABLE>

     The assumed annual rate of future increases in per capita cost of health
care benefits was 11.5% in fiscal 1995 declining at a rate of .5% per year to
6.5% in 2005 and thereafter. Increasing the health care cost trend by 1% in each
year would increase the accumulated benefit obligation by $277,000 at December
30, 1995 and the service and interest costs by $48,000 for fiscal 1995. The
discount rate used in determining the accumulated benefit obligation was 7.5%.

(11) SEGMENT INFORMATION

The Company and its subsidiaries sell and distribute food and nonfood products
that are typically found in supermarkets.

     The Company's wholesale distribution segment sells to independently owned
retail food stores and institutional customers while the retail distribution
segment sells directly to the consumer. Produce marketing includes farming,

24

<PAGE>

                       NASH FINCH COMPANY AND SUBSIDIARIES


packing and marketing operations. The Company's market areas are in the Midwest,
West, Mid-Atlantic and Southeastern United States.

     Operating profit is net sales and revenues, less operating expenses. In
computing operating profit, none of the following items have been added or
deducted: general corporate expenses, interest expense, interest income, income
taxes and equity in income from equity-owned companies. Wholesale distribution
operating profits on sales through company-owned stores have been allocated to
the retail segment.

     Identifiable assets are those used exclusively by that industry segment or
an allocated portion of assets used jointly by two industry segments. Corporate
assets are principally cash and cash equivalents, notes receivable, corporate
office facilities and equipment.

MAJOR SEGMENTS OF BUSINESS (IN THOUSANDS)

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
                                                            1995                1994            1993
-----------------------------------------------------------------------------------------------------
<S>                                                      <C>                 <C>            <C>
Net sales and other
 operating revenues:
  Wholesale distribution . . . . . . . . . . . . . .     $1,968,982           1,854,629      1,836,405
  Retail distribution. . . . . . . . . . . . . . . .        859,956             925,772        841,664
  Produce marketing
   and other . . . . . . . . . . . . . . . . . . . .         48,154              41,861         37,718
                                                         ----------          ----------     ----------
    Total net sales and
     other operating
     revenues. . . . . . . . . . . . . . . . . . . .     $2,877,092           2,822,262      2,715,787
                                                         ----------          ----------     ----------
                                                         ----------          ----------     ----------
Operating profit:
  Wholesale distribution . . . . . . . . . . . . . .     $   30,047              24,593         23,697
  Retail distribution. . . . . . . . . . . . . . . .          4,143               8,804          7,704
  Produce marketing
   and other.. . . . . . . . . . . . . . . . . . . .          2,439               1,122          2,786
                                                         ----------          ----------     ----------
    Total operating profit . . . . . . . . . . . . .         36,629              34,519         34,187
                                                         ----------          ----------     ----------
Interest income. . . . . . . . . . . . . . . . . . .          2,759               2,675          2,604
Interest expense . . . . . . . . . . . . . . . . . .        (10,793)            (11,384)       (10,113)
                                                         ----------          ----------     ----------
    Earnings before
     income taxes. . . . . . . . . . . . . . . . . .     $   28,595              25,810         26,678
                                                         ----------          ----------     ----------
                                                         ----------          ----------     ----------
Identifiable assets:
  Wholesale distribution . . . . . . . . . . . . . .     $  205,289             240,415        237,554
  Retail distribution. . . . . . . . . . . . . . . .        201,493             203,317        195,454
  Produce marketing
   and other . . . . . . . . . . . . . . . . . . . .         45,662              42,597         37,394
  Corporate                                                  61,817              45,275         51,252
                                                         ----------          ----------     ----------
                                                         $  514,261             531,604        521,654
                                                         ----------          ----------     ----------
                                                         ----------          ----------     ----------
Capital Expenditures:
  Wholesale distribution . . . . . . . . . . . . . .     $    8,704               8,372          9,199
  Retail distribution. . . . . . . . . . . . . . . .         15,517              25,821         18,947
  Produce marketing
   and other . . . . . . . . . . . . . . . . . . . .          5,259               2,072          5,564
  Corporate. . . . . . . . . . . . . . . . . . . . .          3,784               1,913          2,672
                                                         ----------          ----------     ----------
                                                         $   33,264              38,178         36,382
                                                         ----------          ----------     ----------
                                                         ----------          ----------     ----------
Depreciation and
 amortization:
  Wholesale distribution . . . . . . . . . . . . . .     $   11,121              11,660         11,641
  Retail distribution. . . . . . . . . . . . . . . .         14,454              16,600         14,093
  Produce marketing
   and other . . . . . . . . . . . . . . . . . . . .          1,597               1,513          1,396
  Corporate. . . . . . . . . . . . . . . . . . . . .          2,234               2,058          2,015
                                                         ----------          ----------     ----------
                                                         $   29,406              31,831         29,145
                                                         ----------          ----------     ----------
                                                         ----------          ----------     ----------
</TABLE>

(12) SALE OF SUBSIDIARY

On December 2, 1995, the Company sold the outstanding stock of Thomas & Howard
Company of Hickory, Inc., a wholly owned subsidiary located in Newton, North
Carolina, and T & H Service Merchandisers, Inc., a wholly-owned subsidiary of
Thomas & Howard, to H. T. Hackney Co. of Knoxville, Tennessee. The sale, which
netted proceeds of approximately $22.3 million in cash resulted in the
recognition of a pretax gain of $1.8 million.

(13) SUBSEQUENT EVENT

On January 2, 1996 the Company acquired substantially all of the business and
assets of Military Distributors of Virginia, Inc., (MDV) located in Norfolk,
Virginia for approximately $56.0 million in cash and the assumption of certain
liabilities totaling approximately $54.0 million. MDV is a major distributor of
grocery products to military commissaries in the eastern United States and
Europe.

     The purchase price exceeded the fair value of the net assets acquired by
approximately $43 million. The resulting goodwill is being amortized on a
straight line basis over 15 years. Funding of the acquisition was financed
through cash on hand and borrowing under a new credit facility (Note 4).

     The following unaudited pro forma summary presents information as if the
acquisition had occurred at the beginning of each fiscal year. The pro forma
information is provided for information purposes only. It is based on historical
information and does not necessarily reflect results that would have occurred
had the acquisition been made as of those dates or results which may occur in
the future.

PRO FORMA INFORMATION (UNAUDITED)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
                                                     1995            1994
---------------------------------------------------------------------------
<S>                                               <C>            <C>
Net revenues . . . . . . . . . . . . . . . .      $3,305,292      3,183,337
Earnings before income taxes . . . . . . . .          33,172         28,620
Net income . . . . . . . . . . . . . . . . .          20,160         17,166
Earnings per share . . . . . . . . . . . . .      $     1.85           1.58
                                                  ----------     ----------
</TABLE>
                                                                              25
<PAGE>
               NASH FINCH COMPANY AND SUBSIDIARIES

CONSOLIDATED SUMMARY OF OPERATIONS

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
Eleven years ended December 30, 1995
(not covered by Independent Auditors' Report)
                                                                    1995          1994             1993     
(DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)            (52 WEEKS)    (52 weeks)      (52 weeks)  
------------------------------------------------------------------------------------------------------------
<S>                                                              <C>             <C>            <C>         
Sales and revenues . . . . . . . . . . . . . . . . . . . .       $2,877,092      2,822,262      2,715,787   
Other income . . . . . . . . . . . . . . . . . . . . . . .           11,744          9,738          7,748   
                                                                 ----------      ---------      ---------
Total sales, revenues and other income . . . . . . . . . .        2,888,836      2,832,000      2,723,535   
Cost of sales. . . . . . . . . . . . . . . . . . . . . . .        2,469,841      2,410,292      2,325,249   
Selling, general, administrative,
  and other operating expenses,
  including warehousing and
  transportation expenses. . . . . . . . . . . . . . . . .          346,442        349,190        328,703   
Interest expense . . . . . . . . . . . . . . . . . . . . .           10,793         11,384         10,114   
Depreciation and amortization. . . . . . . . . . . . . . .           29,406         31,831         29,145   
Profit sharing contribution. . . . . . . . . . . . . . . .            3,759          3,493          3,646   
Provision for income taxes . . . . . . . . . . . . . . . .           11,181         10,330         10,804  
                                                                 ----------      ---------      --------- 
Net earnings . . . . . . . . . . . . . . . . . . . . . . .       $   17,414         15,480         15,874   
                                                                 ----------      ---------      ---------
                                                                 ----------      ---------      ---------
Earnings per share:. . . . . . . . . . . . . . . . . . . .       $     1.60           1.42           1.46   
                                                                 ----------      ---------      ---------
                                                                 ----------      ---------      ---------
Cash dividends declared per common share . . . . . . . . .       $      .74            .73            .72   
                                                                 ----------      ---------      ---------
                                                                 ----------      ---------      ---------
Average number of common
  shares outstanding during period
  (in thousands)(2). . . . . . . . . . . . . . . . . . . .           10,875         10,873         10,872   
                                                                 ----------      ---------      ---------
                                                                 ----------      ---------      ---------
Pre-tax earnings as a percent
  of sales and revenues. . . . . . . . . . . . . . . . . .              .99            .91            .98   
Net earnings as a percent
  of sales and revenues. . . . . . . . . . . . . . . . . .              .60            .55            .58   
Effective income tax rate. . . . . . . . . . . . . . . . .             39.1           40.0           40.5   
Current assets . . . . . . . . . . . . . . . . . . . . . .       $  311,690        309,522        294,925   
Current liabilities. . . . . . . . . . . . . . . . . . . .       $  207,688        220,065        215,021   
Net working capital. . . . . . . . . . . . . . . . . . . .       $  104,002         89,457         79,904   
Ratio of current assets to current liabilities . . . . . .             1.50           1.41           1.37   
Total assets . . . . . . . . . . . . . . . . . . . . . . .       $  514,260        531,604        521,654   
Capital expenditures . . . . . . . . . . . . . . . . . . .       $   33,264         34,965         36,382   
Long-term obligations (long-term debt
  and capitalized lease obligations) . . . . . . . . . . .       $   81,188         95,960         97,887   
Stockholders' equity . . . . . . . . . . . . . . . . . . .       $  215,313        206,269        199,264   
Stockholders' equity per share,(1),(2) . . . . . . . . . .       $    19.80          18.97          18.33   
Return on average stockholders' equity . . . . . . . . . .             8.26           7.63           8.13   
Number of common stockholders
  of record at year-end. . . . . . . . . . . . . . . . . .            1,940          2,074          2,074   
Common stock high price,(2),(3). . . . . . . . . . . . . .           20 1/2         18 1/4         23 1/4   
Common stock low price,(2),(3) . . . . . . . . . . . . . .           15 3/4         15 3/8             17   
-----------------------------------------------------------------------------------------------------------

<CAPTION>
----------------------------------------------------------------------------------------------------------
Eleven years ended December 30, 1995                         
(not covered by Independent Auditors' Report)                
                                                                  1992            1991          1990       
(DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)          (53 weeks)     (52 weeks)    (52 weeks)    
--------------------------------------------------------------------------------------------------------- 
<S>                                                             <C>            <C>           <C>           
Sales and revenues . . . . . . . . . . . . . . . . . . . .     $2,509,464      2,337,560      2,369,054    
Other income . . . . . . . . . . . . . . . . . . . . . . .          5,974          5,718          5,799    
                                                               ----------      ---------      ---------
Total sales, revenues and other income . . . . . . . . . .      2,515,438      2,343,278      2,374,853    
Cost of sales. . . . . . . . . . . . . . . . . . . . . . .      2,147,845      1,997,462      2,036,335    
Selling, general, administrative,                                                                          
  and other operating expenses,                                                                              
  including warehousing and                                                                                  
  transportation expenses. . . . . . . . . . . . . . . . .        294,700        276,144        271,735    
Interest expense . . . . . . . . . . . . . . . . . . . . .          9,294          8,966          8,670    
Depreciation and amortization. . . . . . . . . . . . . . .         27,038         26,124         25,551    
Profit sharing contribution. . . . . . . . . . . . . . . .          3,963          3,789          3,603    
Provision for income taxes . . . . . . . . . . . . . . . .         12,530         11,738         11,129    
                                                               ----------      ---------      ---------
Net earnings . . . . . . . . . . . . . . . . . . . . . . .     $   20,068         19,055         17,830    
                                                               ----------      ---------      ---------
                                                               ----------      ---------      ---------
Earnings per share:. . . . . . . . . . . . . . . . . . . .     $     1.85           1.75           1.64    
                                                               ----------      ---------      ---------
                                                               ----------      ---------      --------- 
Cash dividends declared per common share . . . . . . . . .     $      .71            .70            .69    
                                                               ----------      ---------      --------- 
                                                               ----------      ---------      ---------
Average number of common                                                                                   
  shares outstanding during period                                                                           
  (in thousands)(2). . . . . . . . . . . . . . . . . . . .         10,872         10,871         10,870    
                                                               ----------      ---------      ---------
                                                               ----------      ---------      ---------
Pre-tax earnings as a percent                                                                              
  of sales and revenues. . . . . . . . . . . . . . . . . .           1.30           1.31           1.22    
Net earnings as a percent                                                                                  
  of sales and revenues. . . . . . . . . . . . . . . . . .            .80            .81            .75    
Effective income tax rate. . . . . . . . . . . . . . . . .           38.4           38.1           38.4    
Current assets . . . . . . . . . . . . . . . . . . . . . .     $  310,170        239,850        234,121    
Current liabilities. . . . . . . . . . . . . . . . . . . .     $  213,691        154,993        159,439    
Net working capital. . . . . . . . . . . . . . . . . . . .     $   96,479         84,857         74,682    
Ratio of current assets to current liabilities . . . . . .           1.45           1.55           1.47    
Total assets . . . . . . . . . . . . . . . . . . . . . . .     $  513,615        429,648        416,233    
Capital expenditures . . . . . . . . . . . . . . . . . . .     $   42,991         36,836         36,129    
Long-term obligations (long-term debt                                                                      
  and capitalized lease obligations) . . . . . . . . . . .     $   94,145         82,532         74,333    
Stockholders' equity . . . . . . . . . . . . . . . . . . .     $  191,204        178,846        167,388    
Stockholders' equity per share,(1),(2) . . . . . . . . . .     $    17.59          16.45          15.40    
Return on average stockholders' equity . . . . . . . . . .          10.85          11.01          10.99    
Number of common stockholders                                                                              
  of record at year-end. . . . . . . . . . . . . . . . . .          2,087          2,122          2,138    
Common stock high price,(2),(3). . . . . . . . . . . . . .         19 3/4         20 1/4         25 1/4    
Common stock low price,(2),(3) . . . . . . . . . . . . . .         16 1/4         16 1/2         16 1/4    
-----------------------------------------------------------------------------------------------------------
</TABLE>


26
<PAGE>

               NASH FINCH COMPANY AND SUBSIDIARIES

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------
Eleven years ended December 30, 1995
(not covered by Independent Auditors' Report)                
                                                                    1989          1988           1987      
(DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)           (52 weeks)    (52 weeks)      (52 weeks)  
-----------------------------------------------------------------------------------------------------------
<S>                                                              <C>           <C>             <C>         
Sales and revenues . . . . . . . . . . . . . . . . . . . .       $2,219,451     2,091,822       1,938,758   
Other income . . . . . . . . . . . . . . . . . . . . . . .            4,312         6,012           4,590   
                                                                 ----------     ---------      ----------
Total sales, revenues and other income . . . . . . . . . .        2,223,763     2,097,834       1,943,348   
Cost of sales. . . . . . . . . . . . . . . . . . . . . . .        1,904,041     1,807,448       1,682,667   
Selling, general, administrative,                                                                           
  and other operating expenses,                                                                             
  including warehousing and                                                                                 
  transportation expenses. . . . . . . . . . . . . . . . .          264,024       230,221         198,553   
Interest expense . . . . . . . . . . . . . . . . . . . . .            8,277         8,106           8,087   
Depreciation and amortization. . . . . . . . . . . . . . .           23,170        20,193          18,389   
Profit sharing contribution. . . . . . . . . . . . . . . .            3,089         2,832           2,734   
Provision for income taxes . . . . . . . . . . . . . . . .            8,010        10,859          14,416   
                                                                 ----------     ---------      ----------
Net earnings . . . . . . . . . . . . . . . . . . . . . . .       $   13,152        18,175          18,502   
                                                                 ----------     ---------      ----------
                                                                 ----------     ---------      ----------
Earnings per share:. . . . . . . . . . . . . . . . . . . .       $     1.21          1.67            1.75   
                                                                 ----------     ---------      ----------
                                                                 ----------     ---------      ----------
Cash dividends declared per common share . . . . . . . . .       $      .67           .65             .57   
                                                                 ----------     ---------      ----------
                                                                 ----------     ---------      ----------
Average number of common                                                                                    
  shares outstanding during period                                                                         
  (in thousands)(2). . . . . . . . . . . . . . . . . . . .           10,868        10,881          10,576   
                                                                 ----------     ---------      ----------
                                                                 ----------     ---------      ----------
Pre-tax earnings as a percent                                                                             
  of sales and revenues. . . . . . . . . . . . . . . . . .              .95          1.38            1.69   
Net earnings as a percent                                                                                   
  of sales and revenues. . . . . . . . . . . . . . . . . .              .59           .87             .95   
Effective income tax rate. . . . . . . . . . . . . . . . .             37.9          37.4            43.8   
Current assets . . . . . . . . . . . . . . . . . . . . . .       $  212,264       219,956         209,305   
Current liabilities. . . . . . . . . . . . . . . . . . . .       $  128,159       153,068         127,608   
Net working capital. . . . . . . . . . . . . . . . . . . .       $   84,105        66,888          81,697   
Ratio of current assets to current liabilities . . . . . .             1.66          1.44            1.64   
Total assets . . . . . . . . . . . . . . . . . . . . . . .       $  380,771       388,269         352,187   
Capital expenditures . . . . . . . . . . . . . . . . . . .       $   34,635        52,019          29,680   
Long-term obligations (long-term debt                                                                       
  and capitalized lease obligations) . . . . . . . . . . .       $   77,950        66,216          66,988   
Stockholders' equity . . . . . . . . . . . . . . . . . . .       $  157,024       151,043         140,850   
Stockholders' equity per share,(1),(2) . . . . . . . . . .       $    14.45         13.90           12.97   
Return on average stockholders' equity . . . . . . . . . .             8.54         12.45           14.38   
Number of common stockholders                                                                               
  of record at year-end. . . . . . . . . . . . . . . . . .            2,146         2,227           2,234   
Common stock high price,(2),(3). . . . . . . . . . . . . .           25 3/4        27 1/2          26 1/2   
Common stock low price,(2),(3) . . . . . . . . . . . . . .           21 1/4            18          14 3/4   
----------------------------------------------------------------------------------------------------------

<CAPTION>                                                    
---------------------------------------------------------------------------------------------
Eleven years ended December 30, 1995                         
(not covered by Independent Auditors' Report)                
                                                                   1986             1985     
(DOLLAR AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)          (53 weeks)      (52 weeks)   
---------------------------------------------------------------------------------------------
<S>                                                              <C>            <C>          
Sales and revenues . . . . . . . . . . . . . . . . . . . .       $1,573,717      1,323,294    
Other income . . . . . . . . . . . . . . . . . . . . . . .            3,640          4,106    
                                                                 ----------      ---------
Total sales, revenues and other income . . . . . . . . . .        1,577,357      1,327,400    
Cost of sales. . . . . . . . . . . . . . . . . . . . . . .        1,360,537      1,142,464    
Selling, general, administrative,                                                             
  and other operating expenses,                                                               
  including warehousing and                                                                  
  transportation expenses. . . . . . . . . . . . . . . . .          165,713        140,798    
Interest expense . . . . . . . . . . . . . . . . . . . . .            6,497          5,732    
Depreciation and amortization. . . . . . . . . . . . . . .           16,249         14,279    
Profit sharing contribution. . . . . . . . . . . . . . . .            2,349          2,101    
Provision for income taxes . . . . . . . . . . . . . . . .           12,178         10,020    
                                                                 ----------      --------- 
Net earnings . . . . . . . . . . . . . . . . . . . . . . .       $   13,834         12,006   
                                                                 ----------      --------- 
                                                                 ----------      --------- 
Earnings per share:. . . . . . . . . . . . . . . . . . . .       $     1.35           1.18    
                                                                 ----------      --------- 
                                                                 ----------      --------- 
Cash dividends declared per common share . . . . . . . . .       $      .52            .50    
                                                                 ----------      --------- 
                                                                 ----------      --------- 
Average number of common                                                                     
  shares outstanding during period                                                          
  (in thousands)(2). . . . . . . . . . . . . . . . . . . .           10,244         10,196    
                                                                 ----------      ---------
                                                                 ----------      --------- 
Pre-tax earnings as a percent                                                                
  of sales and revenues. . . . . . . . . . . . . . . . . .             1.65           1.66    
Net earnings as a percent                                                                    
  of sales and revenues. . . . . . . . . . . . . . . . . .              .88            .90    
Effective income tax rate. . . . . . . . . . . . . . . . .             46.8           45.5    
Current assets . . . . . . . . . . . . . . . . . . . . . .       $  182,676        125,051    
Current liabilities. . . . . . . . . . . . . . . . . . . .       $  120,687         77,867    
Net working capital. . . . . . . . . . . . . . . . . . . .       $   61,989         47,183    
Ratio of current assets to current liabilities . . . . . .             1.51           1.61    
Total assets . . . . . . . . . . . . . . . . . . . . . . .       $  313,908        239,767    
Capital expenditures . . . . . . . . . . . . . . . . . . .       $   26,969         25,438    
Long-term obligations (long-term debt                                                        
  and capitalized lease obligations) . . . . . . . . . . .       $   61,588         42,250    
Stockholders' equity . . . . . . . . . . . . . . . . . . .       $  116,416        107,384    
Stockholders' equity per share,(1),(2) . . . . . . . . . .       $    11.34          10.51    
Return on average stockholders' equity . . . . . . . . . .            12.36          11.57    
Number of common stockholders                                                                
  of record at year-end. . . . . . . . . . . . . . . . . .            1,829          1,868    
Common stock high price,(2),(3). . . . . . . . . . . . . .           19 1/8         15 5/8    
Common stock low price,(2),(3) . . . . . . . . . . . . . .           14 3/4          9 1/4    
---------------------------------------------------------------------------------------------
</TABLE>

(1) Based on outstanding shares at year-end.
(2) Adjusted to reflect 2-for-1 stock split 1987.
(3) High and low closing sale price. Prior to February 1985 high and low bid
    quotation.


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