KROGER IN COURT: Kroger Touts Track Record of Efficiencies

Representatives from The Kroger Co. and Albertsons Cos. took seats again in court sessions held in Seattle and in Denver, as the week drew to a close without a ruling by a judge in a third case in Oregon brought by federal regulators.

On Oct. 3 in Seattle, three witnesses supported Kroger’s claim that the merger will create efficiencies benefiting shoppers and workers. Testimony by Mafaz Maharoof, VP of strategic finance, M&A and long-range planning at Kroger; Ryan Cloward, VP of operations for Albertsons’ Seattle division; and independent efficiencies expert Rajiv Gokhale backed up Kroger’s claim that the merger will lead to an investment of billions of dollars in capital improvements, lower prices, and associate wages and benefits. 

The jury heard about Kroger’s previous efforts to take such actions, including its investment of $100 million aimed at cutting prices at Roundy’s stores after its acquisition of that chain in 2015. Kroger’s attorneys also pointed to the results of its acquisition of Harris Teeter 10 years ago, which led to led to lower prices after a $125 million investment.

Meanwhile, in Denver, Kroger’s attorneys focused on the divestiture package, reinforcing arguments brought up in the concurrent court cases that C&S Wholesale Grocers is an established grocery business that will provide important support and services, including technologies that are a virtual “clone” of the tech stack that Albertsons stores currently use.

As the trials in Washington state and Colorado continue – marked by central and often overlapping contentions  – U.S. District Judge Adrienne Nelson is still weighing the case that wrapped in her court in late September, noting that the deliberation process is moving as “as expeditiously as possible.”