Kroger Acquiring Albertsons For $25 BillionOctober 14, 2022
In case you missed the news alert, the tie-up between grocery giants Kroger and Albertsons began to trickle out yesterday as the companies drew closer to a deal. This morning, it was officially announced that Kroger will acquire Albertsons for $24.6 billion, creating a retail behemoth with a market cap of around $47 billion.
Kroger had revenues of $138 billion last year and has almost 2,800 stores across 35 states. Operating nearly 2,300 retail stores in 34 states and Washington, D.C., Albertsons Cos. reported sales revenue of $72 billion.
Both are major players in beverage alcohol across wide swaths of the country. 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.