Kroger to unload Turkey Hill brand
Kroger is mulling strategic alternatives for its Turkey Hill business, including a potential sale.
Turkey Hill produces a full line of iced teas, fruit drinks, milk, frozen dairy treats and a variety of ice cream in its Conestoga, Penn., manufacturing and distribution facility.
"Turkey Hill is a unique CPG food business within Kroger Manufacturing as it is a strong, nationally-known brand," said Erin Sharp, group vice president for Kroger Manufacturing. "Turkey Hill's successful and recognizable ice cream and beverage products have the potential for greater growth outside of our company. We want to ensure Turkey Hill has every opportunity to meet its full potential."
The news comes a few months after Kroger sold its convenience store operations. The company says it was because it wants to narrow its focus to revitalizing its grocery business via its Restock Kroger plan. The retailer announced it has completed the sale of its convenience store business unit to EG Group for $2.15 billion. Kroger says it will use $1.2 billion of the proceeds to repurchase stock and pay down company debt.
Kroger hired Holdman Sachs & Co. LLC to identify, review and evaluate its strategic options.
"I'd like to thank our skilled and dedicated associates for building a successful brand our customers love," said Ms. Sharp. "We believe it is in the best interest of our associates, the Turkey Hill business, and our shareholders to explore this course of action."
Kroger owns 38 food manufacturing plants, including 19 dairies, that produce high quality Our Brands products for Kroger's family of stores and Turkey Hill branded products sold nationwide.