President John T. Niccollai
IMPORTANT MESSAGE FROM PRESIDENT JOHN T. NICCOLLAI, OCTOBER 13, 2022
Merger Talks Between Kroger and Albertsons:
Informed sources today commented on the merger possibility between the two biggest U.S. Supermarket chains, namely Kroger and Albertsons.
Over the past many months, we have continued to hear rumors of the fact that Albertsons is shopping around for a sale. In Local 464A’s jurisdiction, that sale would relate to the Acme banner and the Kings banner. As your President, I have had numerous discussions with top level Albertsons executives who continually tell me that the financial investors who own a minority interest in Albertsons, are the entity seeking to sell. Common sense would dictate that no knowledgeable buyer would be interested in the acquisition of a minority interest which would not give them the ability to manage and control the company. There is an old adage “Where there’s smoke, there’s fire.” At this juncture, there is a hell of a lot of smoke.
Kroger is the largest supermarket operator in the country with 2,850 locations and over 465,000 employees. They operate under more than two dozen Brand-Name banners. It is interesting to note, however, that they do not operate any stores in New Jersey, New York, or New England. Although Kroger has constantly sought to come into the Northeast, they have been reluctant to enter this market with competition such as Shop Rite and Stop & Shop.
According to market experts, Kroger avoided the acquisition of A&P since the company prefers to acquire healthy chains that have a strong market share.
Your Union is reaching out to Albertsons to get confirmation regarding this alleged acquisition. It may be impossible, however, to receive any confirmation prior to a public announcement since the government scrutinizes comments made by public companies prior to mergers and acquisitions.
To our Brothers and Sisters from Acme and Kings, please be assured this is not “our first ride at the rodeo” and along with our professionals we are prepared to protect you and to give you outstanding representation. One positive factor is that Kroger is an extremely successful company and has adequate resources to manage an acquisition of this magnitude.
We will continue to keep the membership informed as any significant information becomes available.