Kroger Looks to Aquisition To Grow Private Brand

According to an article from Reuters this past week, Cincinnati based grocer Kroger is interested in acquisitions and has approached Private Brand manufacturers, but some potential targets want too much for their assets.

“People who are selling still have some idea of a big multiple in their head,” Kroger Chairman and Chief Executive David Dillon said on Wednesday at the company’s investor conference, which was webcast.

Executives said that the company would like to buy a plant that produces lower-cost private label goods — which have become more popular in the United States as consumers look to save money — and that Kroger has made a couple of unsuccessful offers, including one that faltered over competitive concerns.

Earlier this month, Kroger reported a better-than-expected fiscal second-quarter profit, fending off stiff competition from the likes of Walmart, Supervalu and Safeway.

Grocers like Kroger, who have beefed up their Private Brand offerings with a wider range of higher quality items, often shrug off price increases from food manufacturers since they make high-margin Private Brands a more attractive option.

Read the entire story.



Facebooktwittergoogle_plusredditpinterestlinkedinmail
Previous articlePrivate Label: Consumer Perceptions & Intentions – The Webinar
Next articleWalmart Evolves Great Value Design Strategy
Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.