News, Insights, Inspiration and Happenings
Albertsons Terminates Merger Agreement with Kroger

Albertsons Companies has moved to end its merger agreement with Kroger after the U.S. District Court in Oregon and the King County Superior Court for the State of Washington issued injunctions with respect to the proposed merger.

“Given the recent federal and state court decisions to block our proposed merger with Kroger, we have made the difficult decision to terminate the merger agreement. We are deeply disappointed in the courts’ decisions,” Albertsons’ CEO Vivek Sankaran said in a statement.

Sankaran continued, “We start this next chapter in strong financial condition with a track record of positive business performance. Over the last two years, we have invested in our core business and in new sources of revenue, while enhancing our capabilities through the rollout of new technologies. All of this has been built on a rich asset base, including our beloved brands in premium locations with substantial real estate value. These assets provide us the opportunity to optimize the acceleration of our Customers for Life strategy and other value-creating initiatives. We are excited about our agenda to create long-term value and are committed to returning cash to our stockholders both in the near term and in the future. We will be providing additional details on our plan no later than our earnings conference call in January 2025.”

As reported, the proposed $24.6 billion was blocked by courts in Oregon and Washington this week.

Both Kroger and Albertsons released statements saying that they are disappointed in the decision. In a statement to the media, Kroger said:

“Through its proposed merger with Albertsons, Kroger would invest more than $1 billion in lower grocery prices, invest an additional $1 billion in higher grocery worker wages, and invest an additional $1.3 billion to improve Albertsons stores. Kroger is disappointed in the opinions issued by the U.S. District Court for the District of Oregon and the Washington State Court, which overlook the substantial evidence presented at trial showing that a merger between Kroger and Albertsons would advance the company’s decades-long commitment to lowering prices, respecting collective bargaining agreements, and is in the best interests of customers, associates, and the broader competitive environment in a rapidly evolving grocery landscape.”

If approved, the merger would have been the largest supermarket consolidation in U.S. history.

The FTC, which has opposed the merger since its announcement, applauded the rulings.

“The FTC, along with our state partners, scored a major victory for the American people, successfully blocking Kroger’s acquisition of Albertsons,” according to a statement by the FTC’s Bureau of Competition Director Henry Liu.

“This historic win protects millions of Americans across the country from higher prices for essential groceries—from milk, to bread, to eggs—ultimately allowing consumers to keep more money in their pockets,” according to the statement. “This victory has a direct, tangible impact on the lives of millions of Americans who shop at Kroger or Albertsons-owned grocery stores for their everyday needs, whether that’s a Fry’s in Arizona, a Vons in Southern California, or a Jewel-Osco in Illinois.

“This is also a victory for thousands of hardworking union employees, protecting their hard-earned paychecks by ensuring Kroger and Albertsons continue to compete for workers through higher wages, better benefits, and improved working conditions.”

Meanwhile, after the court rulings, Albertsons filed lawsuit against Kroger for breach of merger agreement, stating that Kroger refused to offer an adequate divesture package and repeatedly ignored regulators’ concerns, which Albertsons claimed caused the merger deal to be blocked.

Kroger countered that the lawsuit is baseless and without merit.

“Kroger refutes these allegations in the strongest possible terms, especially in light of Albertsons' repeated intentional material breaches and interference throughout the merger process, which we will prove in court,” according to a Kroger statement.

“We went to extraordinary lengths to uphold the merger agreement throughout the entirety of the regulatory process and the facts will make that abundantly clear.

“We are confident in Kroger's value creation model to drive sustainable growth. Kroger's Board of Directors is currently evaluating next steps that serve the best interests of Kroger's customers and associates, and create value for shareholders.”

Trend Alert: PLMA Show Coverage: Pickle Products

A variety of pickle-flavored popcorn, trail mixes and other snack foods were spotted on the exhibit floor at the Private Label Trade Show.

Fueled by social media, all types of pickle-flavored foods are trending. As reported, PLMA’s 2024 Salute to Excellence Awards® award winners include Private Selection™ Dill Pickle Pretzels Twists from the Kroger Co.; and Well Market™ Zesty Dill Pickle Flavor-Infused Sprouted Almonds, CVS Pharmacy.

Ideas and Inspiration: Kitchen Goods at H-E-B, Hy-Vee, Kroger

Slow Cooker- A slow cooker, digital air fryer, hand mixer and electric chopper are among the small kitchen appliances in H-E-B’s Kitchen & Table private label cookware line.

- The Hy-Vee Seasons brand includes a 2- and 7-quart slow cooker and digital toaster.

- Kroger shoppers looking for kitchen supplies can get cooking tongs, pastry brushes and much more from Kroger’s Everyday Living brand.
 

PLMA Show Coverage: Five Trends to Watch

PLMA’s 2024 Private Label Trade Show, the premier event for store brands, closed with a record number of attendees. The sold-out show floor at “The Store Brands Phenomenon 2024 - Empowering the Retail Industry” Private Label Trade Show, held Nov. 17-19 in Chicago, featured 1,821 exhibitors from 60 countries; 700 were first-time exhibitors.

In all, some 14,000 retailers, visitors, exhibitors, and others from the store brand and retailing industries attended.

The show had global appeal, featuring a record 54 country and regional pavilions from North and South America, Europe and Asia to help buyers to source new and innovative products for today’s global consumer.

Among the trends spotted on the Show floor:

Hot Honey - Hot honey is a spicy condiment that is being used as a dip, as well as drizzled on pizza and more. Products found on the Show floor: hot honey, hot honey corn, hot honey hummus and hot honey dip.

Kitchen Supplies that Make Clean-up Easier - Consumers are seeking out supplies that simplify their cooking routines. Products found on the Show floor: pre-cut parchment paper and aluminum sheets; roasting bags; air fryer liners and slow cooker bags.

Tempting Truffles - The unique aroma and flavor of truffles can be found in an increasing number of packaged goods. Products found on the Show floor: truffle hot sauce, truffle honey; and soy sauce with four truffles.

Premium Pet Treats - Pet treats made with a single ingredient or limited clean ingredients are available to reward our furry friends. Products found on the Show floor: turmeric cheese chews; freeze-dried lamb bites and meatball-style dog treats.

Pumped with Protein - Snack foods with lower net carbs and higher protein appeal to those taking GLP-1 medicine or who are simply looking for a better-for-you snack. Products found on the Show floor: pea-protein based cheddar crackers with 10 grams of protein per serving: brown rice and spirulina spaghetti with 9 grams of protein; high-protein bread.

“The annual Private Label Trade Show provided an unparalleled opportunity to discover the best and most innovative private label products from around the world, including food, beverages, wine and spirits, health and beauty care, general merchandise and much more,” said PLMA President Peggy Davies.

PLMA Show Coverage: Aldi’s Dave Rinaldo Outlines Growth Plans

It was standing room only for the keynote from Dave Rinaldo, President at Aldi, at PLMA’s 2024 Private Label Trade Show. In fact, it was the largest crowd ever for any PLMA event.

There’s good reason why. Aldi is on the fast-track for growth, investing $9 billion to open more than 800 new U.S. locations in the U.S. over the next five years. This will increase its store count from 2,400 to 3,200.

Supplier partnerships are key to its growth, Rinaldo said. The retailer seeks out suppliers that focus on quality and innovation, work to control costs and build shopper trust.

Watch our news report on Rinaldo’s keynote and other highlights of the 2024 Private Label Trade Show here:

Rinaldo thanked PLMA for inviting him and stressed his appreciation for the association and the Private Label Trade Show.

“I’m thrilled to be here kicking off PLMA,” he said.

Rinaldo said he was honored to deliver the keynote because of the growth opportunities that exist for Aldi and the private label industry as a whole. He cited how more and more consumers are trying and switching to private label.

“Shoppers know that they don’t have to sacrifice quality to get savings,” he said.

Rinaldo also emphasized the impact the industry can make beyond the bottom line through the support of foundations such as Alex’s Lemonade Stand Foundation to raise money for childhood cancer research.
 

'Store Brands Month' in January Has Widespread Industry Support

Retailers and manufacturers alike are readying the launch of the inaugural Store Brands Month in January 2025.

Pam Ofri, Wakefern Food Corp.’s Director of Product Development and Operations, Own Brands, said Store Brands Month will help promote and celebrate Wakefern’s Own Brands portfolio, a collection of 5,000+ products under the Bowl & Basket, Wholesome Pantry and Paperbird labels.

“Store Brands Month provides an amazing opportunity to elevate the conversation around store brands and encourage more shoppers to explore these valuable options,” Ofri said.

Along with Wakefern, many large national retailers from coast to coast have signed on to support Store Brands Month.

The month-long, direct-to-consumer program is the result of a nationwide partnership between retailers and manufacturers to promote the quality, value and excellence of store brands to shoppers. It’s planned to be an annual event.

The goal of Store Brands Month is to increase consumer trial by focusing attention on the positive attributes and practical factors of store brands - including value, digital convenience, ethical considerations, innovation and budget awareness - across all product categories in both brick-and-mortar and online retail formats.

Promotional strategies will be developed by participating retailers and executed both in-store and through a variety of digital and social media platforms.

“The time is right to bring greater visibility among consumers to our thriving industry,” PLMA President Peggy Davies said. “By coming together with our partners during a month-long campaign, we have an opportunity to further expand the presence and strength of the largest CPG brand in the store: private brands.”

PLMA is providing a Store Brands Month toolkit for retailers. Additionally, PLMA manufacturers, brokers and supplier members can access their own toolkit and more information through the members only portal on PLMA.com.

For more information, email storebrandsmonth@plma.com.

Hurricane Helene Community Outreach
Notable Quotable - Christine Heffernan, Topco Associates

“Our category management team is seeking to expand our premium assortment in categories like snacks, sauces, condiments, sweets, frozen entrees, globally inspired cuisine, in-store bakery, refrigerated entrees and frozen seafood.”

- Christine Heffernan, SVP, Center Store Sourcing and Supply Chain, Topco Associates, said during a recent PLMA Lunch and Learn presentation.  Click here to watch the presentation.

Trend Alert: Free Turkey

Weis, Giant Eagle and ShopRite are among the retailers offering free private label turkeys to shoppers who spend a certain amount in their stores in the weeks leading up to Thanksgiving.