THE FRIDAY 5: Kroger, Albertsons Move Forward From Failed Merger; FDA Food Recalls Abound

1. What Are Kroger and Albertsons Focusing on Following Failed Merger?

PG Digital Editor Marian Zboraj’s deep dive into where Kroger and Albertsons each stand following their failed merger late last year caught reader attention this week. While the two grocers have since publicly blamed one another for the fallout in the form of dueling lawsuits, C-suite shakeups at both companies and a deeper look at the resulting operational changes paint a more nuanced story.

Meanwhile, news that Kroger is giving its loyal shoppers easier access to digital deals also gained clicks this week. The food retailer recently started adding paper flyers mirroring its weekly digital deals near the entrances of its stores in an effort to democratize coupon usage.

“We are always listening to our customers to create a better shopping experience,” a Kroger representative told Progressive Grocer. “To make it simpler for our customers to take advantage of the full value our stores offer, we are providing an easy-to-use flyer that customers can scan to save with digital coupons.”

2. FDA Recalls Abound

A major blueberry recall that was announced before the busy Fourth of July holiday, as well as the recent recalls of several other food items, made news this week. The FDA updated the blueberry recall to the high Class I level on July 1, related to a positive Listeria test in early June.

The affected products were distributed to an unnamed customer in North Carolina by Alma Pak International of Alma, Ga., with more than 12,000 pounds of organic blueberries subject to the FDA notice. The FDA confirmed that no blueberries have yet reached product shelves.

Other recent recalls include the following items:

• Semi-sweet chocolate nonpareils sold under the Wegmans brand and produced by Mellace Family Brands California, Inc., due to an undeclared milk allergen.
• 12-oz. vacuum packages of Oscar Mayer Turkey Bacon Original from Kraft Heinz Food Co., due to potential Listeria monocytogenes.
• Vampire Slayer Cheese Curds from Face Rock Creamery with lot code “Use by 082925," due to potential Listeria monocytogenes.

3. Family Dollar Goes Its Own Way

This week marked the official separation of Family Dollar from the Dollar Tree banner. The latter completed the previously revealed sale of its Family Dollar business segment to Brigade Capital Management LP and Macellum Capital Management LLC for $1 billion. 

Prominent retail executive Duncan MacNaughton was appointed chairman and CEO of Family Dollar back in May, while Jason Nordin will remain as president. Under the dedicated leadership team and new private equity owners, Brigade and Macellum, along with Arkhouse Management Co., Family Dollar is focused on building a stronger, more agile organization.

Family Dollar’s headquarters will remain in Chesapeake, Va., and it will continue its mission to “serve the underserved,” focused on the opportunity to build a “new Family Dollar.” 

4. Food Retailers Step Up Amid Devastation in Texas

Grocers have stepped in to help those affected by the devastating flash flooding in Texas that has claimed at least 100 lives. H-E-B, which is headquartered in the Lone Star State, is working with relief groups and area officials to support local efforts. The grocer has also sent food and supplies directly to the affected towns of San Angelo and Marble Falls. 

Together, Walmart, Sam’s Club and the Walmart Foundation are committing up to $500,000 in grants and in-kind donations, along with other initiatives. Amazon is deploying resources, too, as it simultaneously works to ensure the safety of its employees and providers. SpartanNash, for its part, is providing at least three truckloads of water and food for distribution through Convoy of Hope.

5. One Big CPG Acquisition and One Big Bankruptcy

A year after news surfaced that Mars, Inc. plans to acquire the Kellanova company spun off from the former Kellogg Co., it’s been confirmed that WK Kellogg Co. is being scooped up by Italian company The Ferrero Group. The deal is valued at $3.1 billion.

The acquisition includes the manufacturing, marketing and distribution of WK Kellogg’s famous cereal portfolio. Ferrero said it plans to invest in and grow WK Kellogg’s cereal brand that includes the iconic Frosted Flakes, Froot Loops and Rice Krispies lines, among others. 

Meanwhile, big CPG player Del Monte Food Co. has filed for Chapter 11 bankruptcy and is looking for a buyer. The nearly 140-year-old company’s portfolio consists of such brands as Del Monte, Contadina, College Inn, Kitchen Basics, JOYBA, Take Root Organics, and S&W. 

According to the company, it’s now pursuing a value-maximizing sale process as part of an overall strategic balance-sheet restructuring.