Latest news with #C&S
Yahoo
28-05-2025
- Business
- Yahoo
AGS and C&S Join Forces to Provide Grocery Retailers Optimized Wholesale and Supply Offerings
MIAMI, May 28, 2025--(BUSINESS WIRE)--Atlantic Grocery Supply (AGS), the grocery division of Pompano, Florida-based Sun Commodities Inc. (Sun Group), and C&S Wholesale Grocers, LLC, (C&S) an industry leader in wholesale grocery supply and supply chain solutions in the United States, are partnering to provide wholesale supply solutions to retailers in the Caribbean, Central and South America. Sun Group has a deep history of supplying retailers throughout the Southeast region and the Caribbean. AGS, Sun Group's grocery division has continued to expand over the years. In this agreement with C&S, export customers will be supplied with the most competitive pricing and a vast grocery assortment of more than 40,000 items. Christopher Miller, President, AGS said, "We're excited to partner with C&S and leverage their strong national scale to offer the same competitive supply to all our export customers. With the combined offering of our leading produce supply along with the entire grocery assortment of C&S, we're able to provide the export market with an unparalleled offering." The new partnership will operate out of C&S's one-million square foot warehouse in Miami, Florida — with C&S and AGS partnering on sales to Florida-based independent retail customers and AGS leading sales to export customers. The Sun Group will continue to service produce to retailers and food service customers throughout the Southeast of the United States and the Caribbean. "We look forward to working with AGS and leveraging our strong capabilities to provide a superior assortment and service experience. Together, C&S and AGS will create an optimized supply chain model that brings unparalleled value to AGS's customers," said Eric Winn, Chief Executive Officer, C&S. "C&S is committed to growing our customer base and building on our quality and service legacy of braggingly happy customers." About Sun Group:The Sun Group is one of the nation's largest wholesale produce distributors with locations throughout the Southeast. Founded in 1995, Sun has a long history of servicing customers in the Southeast of the United States and the Caribbean. Sun has expanded over the years to include divisions supplying retailers, export, and food service customers. In 2018 Sun added the Atlantic Grocery Supply (AGS) division to provide grocery items to its customers in the US and abroad. Recognized by its customers for its high level of dedicated service, AGS and Sun have continued to expand their geography, sales channels and product offering, today servicing thousands of customers. About C&S Wholesale Grocers, LLC:C&S Wholesale Grocers, LLC is an industry leader in supply chain solutions and wholesale grocery supply in the United States. Founded in 1918 as a supplier to independent grocery stores, C&S now services customers of all sizes, supplying more than 7,500 independent supermarkets, chain stores, military bases and institutions with over 100,000 different products. C&S also proudly operates and supports corporate grocery stores and services independent franchisees under a chain-style model throughout the Midwest, South and Northeast. We are an engaged corporate citizen, supporting causes that positively impact our communities. To learn more, please visit View source version on Contacts Sun Group Contact:Erika HankarMarketing@ C&S Media Contact:Lauren La BrunoSenior Vice President of Communications & MarketingC&S Wholesale Grocers, LLCCSComm@ C&S Investor Relations:Julie DrakeVice President, Assistant TreasurerIR@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
28-05-2025
- Business
- Business Wire
AGS and C&S Join Forces to Provide Grocery Retailers Optimized Wholesale and Supply Offerings
MIAMI--(BUSINESS WIRE)--Atlantic Grocery Supply (AGS), the grocery division of Pompano, Florida-based Sun Commodities Inc. (Sun Group), and C&S Wholesale Grocers, LLC, (C&S) an industry leader in wholesale grocery supply and supply chain solutions in the United States, are partnering to provide wholesale supply solutions to retailers in the Caribbean, Central and South America. Sun Group has a deep history of supplying retailers throughout the Southeast region and the Caribbean. AGS, Sun Group's grocery division has continued to expand over the years. In this agreement with C&S, export customers will be supplied with the most competitive pricing and a vast grocery assortment of more than 40,000 items. Christopher Miller, President, AGS said, 'We're excited to partner with C&S and leverage their strong national scale to offer the same competitive supply to all our export customers. With the combined offering of our leading produce supply along with the entire grocery assortment of C&S, we're able to provide the export market with an unparalleled offering.' The new partnership will operate out of C&S's one-million square foot warehouse in Miami, Florida — with C&S and AGS partnering on sales to Florida-based independent retail customers and AGS leading sales to export customers. The Sun Group will continue to service produce to retailers and food service customers throughout the Southeast of the United States and the Caribbean. 'We look forward to working with AGS and leveraging our strong capabilities to provide a superior assortment and service experience. Together, C&S and AGS will create an optimized supply chain model that brings unparalleled value to AGS's customers,' said Eric Winn, Chief Executive Officer, C&S. 'C&S is committed to growing our customer base and building on our quality and service legacy of braggingly happy customers.' About Sun Group: The Sun Group is one of the nation's largest wholesale produce distributors with locations throughout the Southeast. Founded in 1995, Sun has a long history of servicing customers in the Southeast of the United States and the Caribbean. Sun has expanded over the years to include divisions supplying retailers, export, and food service customers. In 2018 Sun added the Atlantic Grocery Supply (AGS) division to provide grocery items to its customers in the US and abroad. Recognized by its customers for its high level of dedicated service, AGS and Sun have continued to expand their geography, sales channels and product offering, today servicing thousands of customers. About C&S Wholesale Grocers, LLC: C&S Wholesale Grocers, LLC is an industry leader in supply chain solutions and wholesale grocery supply in the United States. Founded in 1918 as a supplier to independent grocery stores, C&S now services customers of all sizes, supplying more than 7,500 independent supermarkets, chain stores, military bases and institutions with over 100,000 different products. C&S also proudly operates and supports corporate grocery stores and services independent franchisees under a chain-style model throughout the Midwest, South and Northeast. We are an engaged corporate citizen, supporting causes that positively impact our communities. To learn more, please visit
Yahoo
03-04-2025
- Business
- Yahoo
Kroger alleges C&S misconduct in Albertsons deal
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. Kroger claimed in a recent legal filing that C&S Wholesale Grocers is not entitled to the $125 million merger termination fee it is seeking to collect because it breached its contract with the grocer during the battle with regulators over its proposed combination with Albertsons. Kroger alleges that C&S disparaged the divestiture deal to regulators, secretly talked with Albertsons employees about the merger plan, failed to make disclosures to Kroger and didn't follow contractually required steps to prepare to run divested stores, according to papers the grocer filed Monday in response to a lawsuit filed earlier this year by C&S. This marks the latest legal salvo by Kroger as it battles lawsuits from C&S and Albertsons a few months after its proposed merger fell through. Kroger alleges that C&S, which was set to acquire hundreds of stores from Kroger and Albertsons if their merger got approved, didn't engage in good faith with the grocer during the regulatory review process and subsequent litigation by federal and state regulators. As the companies worked to overcome regulators' concerns about the deal, C&S secretly communicated with Albertsons about the merger strategy and then failed to disclose these exchanges to Kroger, Kroger alleges. Kroger said it was 'shocked' when an Albertsons executive disclosed C&S's communications with the company during the trial over the Federal Trade Commission's efforts to block the merger. 'Nothing excuses C&S's failure to disclose to Kroger during trial preparation its highly relevant communications with Albertsons, which were so relevant that some of them were ultimately cited in the Washington Court's decision enjoining the Merger,' Kroger said in the filing. Kroger also claims that C&S tainted regulators' perception of the divestiture deal. 'Critiquing and diminishing the divestiture package that C&S knew was critical to securing regulatory approval for the Merger was a flagrant and material breach of C&S's contractual obligations, and C&S's conduct predictably caused the regulators to view C&S as an inadequate divestiture buyer regardless of the scope of the divestiture package,' Kroger said its filing. Kroger claims C&S's parent company 'repeatedly refused to provide basic financial information' to certain landlords who requested guarantees for the leases for the assets set for divestiture. Kroger also says C&S didn't apply for thousands of licenses and permits necessary to operate the divested stores, claiming that by September 2024, C&S had submitted applications for only a third of the 18,000 licenses it would need. A spokesperson for C&S disputed Kroger's claims. 'Kroger's response to C&S's complaint only highlights that it has no good faith defense to its breach of its agreement with C&S that required Kroger to pay $125 million as a termination fee,' the spokesperson said in an emailed statement. 'C&S looks forward to prevailing in court and holding Kroger to its unequivocal contractual promise to C&S.' C&S became part of the Kroger-Albertsons merger proposal when the wholesaler agreed to acquire stores and assets the grocers had planned to divest to win regulatory approval for their combination. After the initial divestiture deal faced criticism and scrutiny by state and federal regulators, C&S, Kroger and Albertsons agreed to an enhanced divestiture plan, under which C&S would have bought 579 stores and additional non-store assets such as infrastructure and access to the Signature and O Organics private brands. After judges in state and federal courts blocked the merger at the end of last year, Kroger terminated the agreement with C&S, according to legal filings. Earlier this year, C&S sued Kroger over its failure to pay the wholesaler the $125 million termination fee the two companies had agreed upon as part of the divestiture plan. Kroger claims C&S cannot substantiate its allegations that Kroger breached its contract with the wholesaler. Kroger's battle with C&S comes as the grocer also fights a lawsuit from Albertsons, which says it was denied its own $600 million termination fee and claims Kroger breached the merger contract between the two companies after experiencing 'buyer's remorse.' Kroger has also accused Albertsons of souring the deal's success, alleging that Albertsons secretly worked to undermine Kroger's strategy to secure regulatory clearance for their proposed merger. Recommended Reading Pardon the Disruption: Kroger and Albertsons court filings detail epic power struggle over failed merger
Yahoo
02-04-2025
- Business
- Yahoo
Kroger's road ahead runs through its past, analysts say
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. The last time Kroger brought on a new CEO was in January 2014. At that point, the company was riding high in the grocery industry: It was just about to close on its $2.5 billion acquisition of Harris Teeter, the tumult of the COVID-19 pandemic was still years away and Walmart had yet to assume the commanding role it now plays in the U.S. food retail sector. A lot has changed over the past decade. As Kroger looks for a successor to Rodney McMullen — who departed abruptly in early March after more than 11 years as the company's chief executive — the grocer faces much less favorable circumstances that have industry experts wondering whether it can regain its former glory. Some of those conditions, like the enormous reach of competitors like Walmart, Costco and Amazon, are beyond its control, while other challenges are a direct result of decisions Kroger made when McMullen was in charge, according to analysts. 'The golden age of Kroger was before Rodney took over,' said Scott Mushkin, CEO of R5 Capital, referring to Kroger's approach to the grocery industry under David Dillon, McMullen's immediate predecessor as Kroger's CEO. 'If you just look at the business … I would say they're kind of bumping along, kind of hanging on a little bit rather than thriving.' Kroger's challenges include recovering from its unsuccessful effort to merge with Albertsons — a transaction McMullen crafted and championed as CEO. The company faces lawsuits from Albertsons and C&S Wholesale Grocers, which had agreed to acquire nearly 600 divested stores in connection with the deal. Albertsons and C&S both allege that Kroger is responsible for the deal's demise under pressure from regulators. In its suit, filed in December, Albertsons claims that Kroger damaged the companies' chances of winning approval for the merger because it was unwilling to develop more robust divestiture plans. Kroger responded with its own allegations, claiming that Albertsons worked secretly with C&S on a 'misguided campaign' that led to the disintegration of the deal. Albertsons and C&S are also demanding that Kroger pay them termination fees of $600 million and $125 million, respectively. Kroger has refused to do so, claiming that Albertsons and C&S forfeited the fees. Under Dillon, Kroger focused heavily on basic operational details, like the length of checkout lines, customer service and store cleanliness, all of which helped the company maintain its position as a leader in the grocery space, Mushkin said. But more recently, Kroger has been less effective at communicating its value proposition to consumers than rivals like Sprouts Farmers Market and Publix, he added. 'It's very difficult when you're multi-banner, multi-regional, with different go-to-market strategies, to define what you are,' said Mushkin. 'It's the challenge for whoever takes over Kroger: Why, as a consumer, should I shop you beyond location?' A key issue for Kroger as it plots its future course is that its prices look more expensive to consumers than other retailers, a contrast that is exacerbated by Kroger's dependence on promotions while Walmart has an everyday low-pricing model, said Karen Short, managing director and head of consumer and retail research for Melius Research. 'They've gotten themselves completely out of whack on pricing relative to their competitors,' Short said. 'And I don't know how you dig yourself out of all of that, because Walmart is increasingly giving you a reason to not go to Kroger.' One way for Kroger to counter the perception that it charges more than Walmart for groceries would be to sacrifice its earnings for a while in order to invest in bringing down prices, Short said. However, that could prove to be a hard sell to investors given that the company's operating profit and sales have been under pressure. While Kroger's stock price grew at a significantly faster clip than Walmart's between 2013 and 2015, the trend reversed starting in 2016, with Walmart widening its lead during the past year, according to a research note Short and fellow Melius analyst Jacob Aiken-Phillips issued on March 14. On Tuesday, Short and Aiken-Phillips downgraded their rating of Kroger's stock to 'sell,' citing Walmart's surging strength in grocery, Kroger's leadership void and the legal actions brought by Albertsons and C&S as reasons investors should unload their shares. Short also said Kroger's search for a replacement for McMullen presents it with a unique opportunity to change course, adding that the company — which is currently under the leadership Ronald Sargent, who is serving as chairman and interim CEO — should look outside for a new leader. 'I think Kroger is rudderless, and they need somebody who is going to bring new blood and new life and new thought,' she said. Speaking during an earnings call on March 6, Sargent said Kroger intends to consider candidates to replace McMullen from within its ranks and outside the company. A new leader could likely help Kroger move past issues such as the failed combination with Albertsons and instead focus on reframing its relationship with consumers, said David Halliday, associate teaching professor of strategic management and public policy at the George Washington University School of Business. 'The time to do that is when a new CEO comes in. A new CEO can set a long-term plan, [while] an existing CEO is going to have a harder time making tough decisions like trading off profits for a viable long-term pricing strategy,' Halliday said. 'The pricing strategy can't just be selling cheap food … but something that viably connects with customers and gives customers more value than they're getting now. Short said Kroger's efforts in recent years to double down on its data operations and invest in the multibillion-dollar network of automated fulfillment centers it has developed with Ocado are also weighing Kroger down at a time when it needs to find ways to stand out. Short added that Kroger's efforts to invest in alternative profit businesses, which include its data analysis and third-party media operations, have distracted attention from weaknesses in its core grocery business. In addition, the Ocado project has cost much more than expected, she said. As Kroger considers whom to hire to lead it going forward and how it should adjust its strategy, the company would do well to stay grounded in its roots as a supermarket operator, said Doug Munson, head of advisory services business development for retail intelligence provider RetailStat. Although the pressure to compete head-to-head with major competitors is intense across areas like e-commerce, pricing and non-grocery revenue streams, Kroger should focus more on improving the quality and distinctive value of its core grocery business, Munson said. Kroger is 'not going to beat the Wiincos and the Walmarts on pricing, but the narrative should be, 'When you come here, this is where you get your staples. This is your fundamental grocery store,'' Munson said. More immediately, analysts will be looking for Kroger to clarify its vision about where it fits in the grocery landscape, said Michael Infranco, assistant vice president of Retailstat. 'We haven't had the clearest strategies overall, the top-to-bottom strategy of what they want to be,' Infranco said. 'We need that from a new leader: to be a little more specific about what the end game is.' Recommended Reading Pardon the Disruption: Kroger and Albertsons court filings detail epic power struggle over failed merger Sign in to access your portfolio
Reuters
28-03-2025
- Business
- Reuters
Kroger and Albertsons play blame game after failed merger in billion-dollar battle
March 28 (Reuters) - Breakups are rarely easy, but the acrimony over a busted blockbuster deal can rival finger-pointing by the bitterest of star-crossed lovers. Consider the blame game unfolding now between Kroger and Albertsons in Delaware Chancery Court, where each grocery chain is attempting to fault the other for the failure of their $25 billion merger, which was blocked by judges in both federal and state courts in December. To hear Albertsons tell it in its Chancery Court lawsuit, opens new tab seeking billions of dollars, Kroger had 'a classic case of buyer's remorse' after negative reaction to the merger by investors, workers and politicians, as well as falling post-pandemic profits. As a result, Kroger allegedly failed to take 'any and all actions' possible to win antitrust approval for the deal, as required by the merger agreement. In a countersuit, opens new tab made public on Tuesday, Kroger says Albertsons 'secretly coordinated' with C&S Wholesale Grocers, which was set to buy hundreds of grocery stores that the parties planned to divest, in a 'surreptitious scheme' to pursue their own regulatory strategy. Kroger is seeking unspecified damages from Albertsons for willfully breaching the merger agreement. Also jumping in the fray, C&S on March 14 sued Kroger, opens new tab in Delaware Superior Court seeking payment of a $125 million termination fee it says it's entitled to under its agreement with Kroger. This isn't the first time companies in a merger gone wrong have sued each other in Delaware, though the cases tend to be highly fact-specific. To misquote Tolstoy, every failed merger fails in its own way. Still, a 2020 decision, opens new tab by Vice Chancellor Travis Laster holding that Cigna breached its obligation to try to close a $54 billion merger with Anthem – but that the merger would probably have been enjoined anyway, so Anthem wasn't entitled to recover damages – will likely come into play in allocating the burden of proof for the thwarted grocery union. A Kroger spokesperson declined comment. Albertsons in a statement said it was 'steadfastly committed to the success of the combination,' but that Kroger 'did not hold up its end of the bargain.' A C&S spokesperson said via email that the New Hampshire-based company 'worked tirelessly in support of the merger and divestiture, including communicating with both Kroger and Albertsons executives.' Announced in 2022, the proposed merger would have been the largest-ever supermarket combination. Kroger – operating stores under regional names including Fry's, Harris Teeter and King Soopers – and Albertsons – whose regional banners include Jewel-Osco, Safeway and Vons – together have about 5,000 supermarkets across 48 states. Going into the deal, Kroger anticipated it would have to sell off stores in locations where the two chains competed head-to-head to appease the Federal Trade Commission and state regulators. Per the merger agreement, Kroger agreed to divest up to 650 properties and lined up C&S as the buyer. Like many antitrust fights, market definition was key. Kroger argued its grocery competitors nowadays go beyond traditional supermarkets to include retail behemoths like Walmart, Costco and Amazon. If Kroger could convince regulators to adopt such a broad view of the competitive landscape, perhaps divesting a few hundred stores might assuage their concerns that the merger would lead to higher prices for consumers. At its first meeting with the FTC, Kroger proposed shedding just 238 stores, Albertsons said. Kroger subsequently offered to divest 413 stores to C&S, later upping the total to 541, then 579 outlets. Albertsons argues this was the wrong approach, calling Kroger's position 'indefensible.' According to Albertsons, Kroger 'squandered its credibility with regulators' by refusing to propose a viable divestment package, its lawyers from Williams & Connolly; Selendy Gay; Dechert; and Richards, Layton & Finger wrote in the Delaware complaint. Albertsons also says Kroger shut it out of the 'disorganized [and] protracted' process of selecting C&S as the purchaser, and that picking a wholesaler with a limited track record of running retail outlets 'introduced new obstacles' for regulatory approval. The FTC along with attorneys general from eight states and the District of Columbia sued to block the deal in 2024, while Colorado and Washington filed suits on their own. Albertsons says it's owed a $600 million contractual break-up fee since the merger failed to close by the outside date set in the agreement, plus additional damages. Under the terms of the merger agreement, Kroger was in charge of antitrust regulatory strategy, while Albertsons was obliged to cooperate and support the effort. Kroger faults Albertsons for allegedly engaging in 'secret communications' with C&S, urging it to tell regulators it needed more stores from Kroger to compete effectively post-merger, Kroger counsel from Weil Gotshal & Manges and Ross Aronstam & Moritz wrote. Offering to divest more assets is of course one way to mitigate antitrust concerns, but here, Kroger said Albertsons' rogue strategy backfired, making regulators believe C&S was 'a weak buyer that would not be an effective competitor regardless of the number of stores it received.' Kroger also alleges Albertsons manufactured a 'faux litigation record' of 'lawyer-crafted letters' so it would be ready to sue its would-be partner for billions of dollars if the merger failed to close. To bolster the allegations, Kroger notes that shortly after court decisions enjoining the merger were issued, Albertsons moved to terminate the deal and sued Kroger in Delaware for damages. 'No doubt capable counsel represents Albertsons, but even they could not draft a 140-page complaint in a few hours,' Kroger said. Was having a complaint ready to go nefarious? Or just advance planning? The Delaware court will decide this and other questions in weighing whether the union was ever meant to be, with a possible trial late next year or early 2027.
