Haggen will have a new owner if the proposed acquisition of Albertsons Companies by Kroger goes through — not Kroger, as originally planned, but New Hampshire-based C&S Wholesale Grocers.
Kroger and Albertsons have released a revised divestiture plan for the merger the two companies originally announced in October 2022. An earlier plan would have spun off 413 stores to C&S, a national wholesale grocery supply company. The new plan increases that total to 579, and now includes the Haggen banner.
C&S would acquire a total of 124 stores in Washington state from the two merging companies, in addition to the Haggen name and, as earlier announced, the QFC brand.
Albertsons currently operates 15 Haggen grocery stores, but the revised divestiture plan stated that should Kroger decide to keep any individual stores under the names sold to C&S, they would be “re-bannered” into one of the remaining Kroger or Albertsons Companies brands.
At the time of the merger announcement, Kroger and Albertsons combined operated nearly 5,000 stores including those under the Albertsons, Safeway, Fred Meyer, QFC and Haggen names.
Kroger said the latest divestiture plan is designed to respond to federal and state antitrust concerns regarding the original agreement, and “enhance competition in overlap geographies.”
“Importantly, the updated divestiture plan continues to ensure no stores will close as a result of the merger and that all frontline associates will remain employed, all existing collective bargaining agreements will continue, and associates will continue to receive industry-leading health care and pension benefits alongside bargained-for wages,” said Kroger Chairman and CEO Rodney McMullen in a statement.
Earlier this year, Washington state sued to block the proposed merger, alleging it would harm consumers and raise prices. The Federal Trade Commission followed suit in February.
A coalition of UFCW union locals — said to represent more than 100,000 Kroger and Albertsons workers across the nation, including in Washington state — issued a statement after the revised divestiture plan was released, claiming the new plan increases the challenge C&S would face.
“They have no experience operating retail stores in these states, would still lack the IT, customer loyalty and manufacturing capabilities needed, and would most likely end up monetizing the real estate under many of these stores,” the union statement read.
Haggen was founded in Bellingham in 1933, but filed for bankruptcy after a failed 2014 expansion bid and was purchased by Albertsons in 2016.
Frank Catalano writes about business and related topics for CDN; reach him at frankcatalano@cascadiadaily.com.
