News Alert: Kroger And Albertsons Reportedly In Advanced Merger TalksOctober 13, 2022
Supermarket giants Kroger and Albertsons are in advanced talks toward a potential merger, according to reports from Bloomberg and CNBC. The deal, which could be announced as soon as this week, would create company with a market cap of around $47 billion, with Kroger accounting for roughly two-thirds of the total.
Kroger, which had revenues of $138 billion last year, operates stores under its namesake brand as well as Fred Meyer, Ralphs, King Soopers, and Harris Teeter. In total, the group has almost 2,800 stores across 35 states.
Operating nearly 2,300 retail stores in 34 states and Washington, D.C., Albertsons Cos. is comprised of food and drug stores doing business under the Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Randalls, and Haggen banners, among others. For fiscal 2021, the group reported sales revenue of $72 billion.
Both companies are massive beverage alcohol players in the national retail market. Kroger carries some 4,000 unique spirits SKUs, with significant variances in selection from market to market, according to local laws. Albertsons sells spirits in 1,200 locations, wine in 1,800 locations, and beer in 2,000 locations—and where all three beverage alcohol types are sold, beverage alcohol comprises about 10% of total store sales.
Kroger director of adult beverage Jason Milburn was named a Market Watch Leader in 2020, while Curtis Mann, group vice president of alcohol at Albertsons Cos., last month was named Market Watch’s Retailer of the Year.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.