Posts Tagged “merger”
The U.S. Federal Trade Commission (FTC), charged with promoting consumer rights, sued to block what could be the largest supermarket merger in U.S. history. A merger of Kroger and Albertsons, the FTC said, would lead to higher prices, store closures, and job losses.
The $25-billion deal, announced in November 2022, has seen opposition from the United Food and Commercial Workers Union, as well as multiple senators and attorneys general. The FTC suit is one of the merger’s greatest challenges so far.
“Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today,” said Henry Liu, director of the FTC’s Bureau of Competition, in a public statement.
“Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.”
As part of the merger plans, the companies intend to divest 413 stores, eight distribution centers, and five private label brands to C&S Wholesale Grocers. The FTC suit has deemed the measures “inadequate”.
“The combined Kroger and Albertsons would have more leverage to impose subpar terms on union grocery workers that slow improvements to wages, worsen benefits, and potentially degrade working conditions,” an FTC statement said.
Kroger responded Monday, stating it would challenge the suit in court and stand behind the merger. Kroger said it would not negatively impact grocery competition and would result in lower prices for consumers and more investments in employee wages.
IRVINE, CA — GEM-Pack Berries, LLC and Red Blossom Sales, Inc. are combining forces.
GEM-Pack and Red Blossom build on more than 150 years of berry farming experience and collective acreage of strawberries, blueberries, blackberries and raspberries in nine berry growing regions throughout California, Mexico, Florida and South America.
“We believe the industry is changing and proactive consolidation will benefit our customers with consistency of supply, balanced production curves, improved quality and increased order fill rates for the entire spectrum of berries and seasons,” Director of Sales, Paul Kawamura.
After four years of quietly collaborating on cultivation and sales partnerships, GEM-Pack and Red Blossom realized their common philosophies and shared production priorities created a productive and powerful team.
The consolidation will combine GEM-Pack’s partnership with Healthy Harvest in Watsonville, and GEM-Pack’s continued operations in Oxnard, Irvine, Baja and Central Mexico, with Red Blossom Farm’s acreage in Santa Maria.
Included in the consolidation will be Red Blossom’s production from the Parkesdale Group in Florida, as well as Red Blossom’s long term, exclusive partnership with Mainland Farms in Central Mexico. Mainland Farms has grown to be Central Mexico’s second largest strawberry shipper, while also offering a full-spectrum berry program with blueberries, blackberries and raspberries.
GEM-Pack’s blueberry and bushberry programs in Mexico and South America will round out the company’s now year-round berry production.
Red Blossom and GEM-Pack complement each other’s strengths, adding deeper access to services in all departments. “As the overall produce industry continues to consolidate, we wanted to stay proactive and flexible. The merger facilitates continued growth and allows us to not only meet, but exceed customer expectations,” Mike Etchandy, CEO.
A merger has been announced by Washington Fruit & Produce Co. and Yakima Fresh to sell apples, cherries and pears.
The new partnership, Washington Fruit Sales, merges Yakima Fresh with the Washington Fruit & Produce sales team, according to a news release. Roche Fruit Co., which has marketed fruit through Yakima Fresh, continues to do so, while owning and operating its farming and packing operations.
Tommy Hanses, CEO of Washington Fruit & Produce, said he and his partners, Don and Doug Gibson of Mount Adams Fruit Co., are excited to work with the Roche Fruit and Yakima Fresh teams.
“We share many of the same values and philosophies, including commitment to quality and excellence in all that they do,” Hanses said. “The fit between these organizations enhances our ability to serve the needs of our customers.”
Washington Fruit & Produce was founded in 1916, and Roche Fruit was founded two years later.
“We have known the Washington Fruit team and organization for years and believe the opportunity to partner with another long-term, quality focused, family owned organization is really unique and will resonate with our customers,” Michael Roche, president said.
Steve Smith, general manager of Yakima Fresh, said the merger provides the company with an “exceptional opportunity.”
“The breadth and depth of our combined programs is very exciting,” Smith stated.
Yakima Fresh was founded in 2005, by three Yakima apple companies — Hansen Fruit & Cold Storage Inc., Roche Fruit Co. LLC, and Yakima Fruit & Cold Storage Co. Inc. — and Stadelman Fruit LLC, Zillah, Wash.
Starr Ranch Growers, Wenatchee, Wash., announced this spring it will be marketing Stadelman Fruit’s crops.
CMI Orchards, Wenatchee, also formed a partnership this spring with Yakima Fruit and Cold Storage Co.
Stemilt Growers, Wenatchee, became the marketer of cherries and apples from Hansen Fruit in 2018.