Kroger looking to sell its Turkey Hill ice cream and beverage business

[retailisking]

With the sale of the C-stores, the other shoe is about to drop as it puts the "other" Turkey Hill on the block
https://www.cincinnati.com/story/money/2018/08/07/kroger-puts-turkey-hill-ice-cream-biz-up-sale/922995002/

[Scrabbleship]

With the sale of the C-stores, the other shoe is about to drop as it puts the "other" Turkey Hill on the block
https://www.cincinnati.com/story/money/2018/08/07/kroger-puts-turkey-hill-ice-cream-biz-up-sale/922995002/

The Northeast seems to be the one nut Kroger seems to not know how to crack at all. Save for the buy of Murray's Cheese in NYC, this will leave them with nothing north of the Mason/Dixon Line or east of the PA/OH-WV borders. Fun thing is that once they divest of Turkey Hill they have no real path back into Pennsylvania/into anywhere else. Even the chance that was ready made for them - the plans Harris-Teeter had to expand into the Philadelphia market back under Ruddick ownership - faded into the ether.

I wonder what the odds of Kroger going after someone without a major market presence - think a Weis, Tops, Price Chopper, Big Y, et Al. - would be at this point.

[retailisking]

I don't think Kroger has the stomach for any major acquisitions after the Roundy's buyout came with a significant set of challenges. Their other banners aren't doing so hot, either. Since David Dillon retired as Kroger CEO they've been stagnating. I agree that they really don't have a path into the Northeast, which is already heavily overstored, without buying regional players like Weis, Tops, Price Chopper, Big Y or Market Basket.

[TheFugitive]

If Kroger wants back into Pennsylvania they could start by buying out individual owners
of Shop n' Save stores that are supplied by SuperValu.  Ironically many of these were Kroger
locations when they left the state in 1985.

It is debatable though whether they really want to do this.  The competition is getting so
tough that even 600-pound gorilla Giant Eagle is having its struggles.  Plus Kroger left
specifically because they were having problems with the UFCW. They basically walked
away rather than settle a strike.   I am sure if they come back the union will make it a
point to ensure that they extract their pound of flesh for that.

[Scrabbleship]

If Kroger wants back into Pennsylvania they could start by buying out individual owners
of Shop n' Save stores that are supplied by SuperValu.  Ironically many of these were Kroger
locations when they left the state in 1985.

It is debatable though whether they really want to do this.  The competition is getting so
tough that even 600-pound gorilla Giant Eagle is having its struggles.  Plus Kroger left
specifically because they were having problems with the UFCW. They basically walked
away rather than settle a strike.   I am sure if they come back the union will make it a
point to ensure that they extract their pound of flesh for that.

What institutional memory would UFCW have after 35 years though? Your leadership from that point is all retired if now dead at this point.

[TheFugitive]

If Kroger wants back into Pennsylvania they could start by buying out individual owners
of Shop n' Save stores that are supplied by SuperValu.  Ironically many of these were Kroger
locations when they left the state in 1985.

It is debatable though whether they really want to do this.  The competition is getting so
tough that even 600-pound gorilla Giant Eagle is having its struggles.  Plus Kroger left
specifically because they were having problems with the UFCW. They basically walked
away rather than settle a strike.   I am sure if they come back the union will make it a
point to ensure that they extract their pound of flesh for that.

What institutional memory would UFCW have after 35 years though? Your leadership from that point is all retired if now dead at this point.

It's about making a point.  You mess with us, we mess with you.
You bring a knife, we bring a gun.  It's about establishing turf for the next battle.

When I lived in Michigan UFCW would picket stores for years after they had
tangled with them.  Sometimes under completely different owners.

[Scrabbleship]

If Kroger wants back into Pennsylvania they could start by buying out individual owners
of Shop n' Save stores that are supplied by SuperValu.  Ironically many of these were Kroger
locations when they left the state in 1985.

It is debatable though whether they really want to do this.  The competition is getting so
tough that even 600-pound gorilla Giant Eagle is having its struggles.  Plus Kroger left
specifically because they were having problems with the UFCW. They basically walked
away rather than settle a strike.   I am sure if they come back the union will make it a
point to ensure that they extract their pound of flesh for that.

What institutional memory would UFCW have after 35 years though? Your leadership from that point is all retired if now dead at this point.

It's about making a point.  You mess with us, we mess with you.
You bring a knife, we bring a gun.  It's about establishing turf for the next battle.

When I lived in Michigan UFCW would picket stores for years after they had
tangled with them.  Sometimes under completely different owners.

You mess with us, we mess with you...but the principles have long gone off to Florida or Heaven and the people involved were all kids when stuff happened.

Michigan and Unions are an odd beast, what with people aligned with UAW taking their frustrations on foreign-inspired cars even those made in the US by UAW members.

[TheFugitive]

I grew-up in Pittsburgh and I have lived in Michigan.
The areas are a lot alike when it comes to union attitudes.
Michigan was perhaps just a bit more hard-nosed.

The steelworkers didn't like imported cars any more than the autoworkers did.
I can remember a time where if you owned a Datsun you parked it on the street here
at your own risk.  There was a good chance an unemployed steelworker would have
taken a sledgehammer to it by the time you came back.

[deerwrecker2017]

If Kroger wants back into Pennsylvania they could start by buying out individual owners
of Shop n' Save stores that are supplied by SuperValu.  Ironically many of these were Kroger
locations when they left the state in 1985.

It is debatable though whether they really want to do this.  The competition is getting so
tough that even 600-pound gorilla Giant Eagle is having its struggles.  Plus Kroger left
specifically because they were having problems with the UFCW. They basically walked
away rather than settle a strike.   I am sure if they come back the union will make it a
point to ensure that they extract their pound of flesh for that.

Anybody that was in the Pittsburgh area in the early to mid 80's knew very well of all of the circumstances as well. The local Economic Conditions negatively affected by the recession (Loss of Industrial Jobs from the closures of Mills and Plants) had both undercut the demand of Kroger's products and services which was higher-end and caused the labor-management relations to deteriorate which lead to the strike. From the looks of the strike Kroger could have likely been looking for a way to pull out and just saw the strike as their opportunity to make their exit (A extremely severe blunder). It is really true that Kroger should have just found a way to settle the strike than cut their losses and make a cowardly withdrawal form the market. You are right about the fact that the unions will try to look for a way get some payback in the event that Kroger ever tries to reenter the Pittsburgh area market.