Kroger recently announced that the company is exploring strategic alternatives for its Turkey Hill business, which produces a full line of iced teas, fruit drinks, milk, frozen dairy treats, and a variety of ice cream. The options include a potential sale.
"Turkey Hill is a unique CPG food business within Kroger Manufacturing as it is a strong, nationally-known brand," said Erin Sharp, Group Vice President for Kroger Manufacturing. "Turkey Hill's successful and recognizable ice cream and beverage products have the potential for greater growth outside of our company. We want to ensure Turkey Hill has every opportunity to meet its full potential."
Located in Conestoga, PA, the manufacturing and distribution facility employs almost 800 full-time, part-time, and seasonal associates.
"I'd like to thank our skilled and dedicated associates for building a successful brand our customers love," said Sharp in a company press release. "We believe it is in the best interest of our associates, the Turkey Hill business, and our shareholders to explore this course of action."
The company has hired Goldman Sachs & Co. LLC to identify, review, and evaluate the options. Kroger currently owns 38 food manufacturing plants, including 19 dairies, that produce Our Brands products for Kroger's family of stores and Turkey Hill branded products sold nationwide.
Kroger reported its Q1 financial results at the end of June 2018. The company saw positive results due to its Restock Kroger initiative, Home Chef acquisition, and partnership with Ocado. How will this potential sale play into the company’s bottom line? Deli Market News will continue to report.