ALAMOSA – In October 2022, the Kroger Company, owner of a stable of supermarket chains including City Market announced plans to merge with rival Albertsons Companies Inc., owner of Safeway Stores for $24.6 billion. The proposed merger would create a conglomerate with 5,000 stores, over 4,000 pharmacies, and 700,000 employees.
To satisfy antitrust issues by fostering competition, Kroger has proposed divesting 579 of its supermarkets nationwide, including the Safeway store in Alamosa. Kroger owns the nearby City Market supermarket.
Under that proposal, Kroger has agreed to sell stores to C & S Wholesale Foods based in Keene, New Hampshire.
Rodney McMullen, Kroger's Chairman and CEO stated in a press release, "Importantly, the updated divestiture plan continues to ensure no stores will close as a result of the merger and that all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading health care and pension benefits alongside bargained-for wages. Our proposed merger with Albertsons will bring lower prices and more choices to more customers and secure the long-term future of unionized grocery jobs."
In 2023, the Federal Trade Commission sued to block the merger stating it would result in higher food prices and hurt employee bargaining power.
The attorney generals in Washington and Colorado also filed suit to halt the merger.
In the lawsuit filed by Colorado Attorney Phil Weiser in February 2024, "Few issues impact Colorado citizens, especially families, more than food. What to eat, where to buy, and the cost of groceries are constant sources of anxiety for Colorado families.
“Rising grocery prices lead to food insecurity and hunger, strain the resources of local governments and non-profits, and harm every Coloradan. Now, in an already concentrated Supermarket industry, two of the largest supermarket companies in Colorado—and in the U.S.—seek to merge. Kroger, which operates King Soopers and City Market, intends to buy its chief competitor, ACI, which operates Safeway and Albertsons."
C&S was founded in 1918, by two Worchester, Massachusetts entrepreneurs, and owns the Grand Union and Piggly Wiggly brands of supermarkets. There are 11 Grand Union stores and more than 500 Piggly Wiggly stores in 18 states according to the websites of the companies.
Most of the Piggly Wiggly stores are independently owned. If the merger is approved, C&S will dramatically increase the number of stores it operates. C&S owns a vast network of food distribution companies.
The company website includes community involvement including $4.3 million donations in 2022-2023. Of that, $1.3 million went to charities including the Children's Hospital at Dartmouth-Hitchcock, Dana Farber Cancer Institute, and the Food Bank of Western Massachusetts. Other recipients include the Congressional Hunger Center, Keene Pride, and Latino Outdoors. The company received a rating of 100 from the Human Rights Campaign as a Leader in LGBTQ+ Workplace Inclusion.
Rick Cohen, a descendant of C&S founders, owns the company individually and through a family trust. According to Forbes, the privately held company had revenue of $34.7 billion in 2023 and has about 15,000 employees.
Cohen is also the CEO of Symbotic Inc., an artificial intelligence (AI) enabled robotic technology platform that according to the company, "Is changing the way consumer goods move through the supply chain. Intelligent software orchestrates advanced robots in a high-density, end-to-end system — reinventing warehouse automation for increased efficiency, speed, and flexibility."
Requests for comment for C&S to elaborate on the stated commitment to keeping the acquired stores open if the divestiture and merger are approved were not returned by press time.
