Marketing Industry Overview
by Rick Bohs, National Marketing Director
 
The Sept. 18 issue of Supermarket News included an insightful article about potential consolidations in the supermarket industry entitled “The Future of Consolidation.” Citing fluctuating company valuations and a changing antitrust climate as catalysts, SN made the following projections on the “Big Five” supermarket chains based on discussions with top industry analysts:
Ahold USA - May move into California where it could buy Stater Brothers, Save Mart or Raley’s or could enter Florida and pursue Publix. Likely will remain in the East, where it could purchase Giant Eagle based on ownership of other Giant chains.
Albertson’s - Could pursue Midwest expansion by purchasing Fleming/Rainbow or Fleming/Sentry, or go west for Furr’s or Raley’s. Another scenario has them buying New England-based Shaw’s to accompany the Osco drug stores they acquired when they purchased Jewel-Osco.
Delhaize America - While integrating Hannaford, the company may want to strengthen itself in the East with the purchase of Pathmark or Weis Markets.
Kroger Co. - Having adopted the strategy of purchasing smaller chains, one analyst sees them moving into the Northeast after Shaw’s, Wegmans or Giant Eagle. They could also try to get Furr’s and integrate it with their Smith’s operation in the West.
Safeway - With its history of growth via acquisition, H.E. Butt and Publix are high on Safeway’s wish list. They could also be interested in Pathmark (to combine with their Eastern division), Giant Eagle, Schnucks or Winn Dixie.
 
“The Future of Consolidation,” by Elliot Zwiebach
Supermarket News Sept. 18, 2000 Volume 48, Number 38
 
Potential Buyers: Potential Sellers:
Ahold USA Fleming
Albertson’s Grand Union
Delhaize America Pathmark Stores
Kroger Co. Shaw’s
Safeway Weis Markets
 
From the Northwest/Western Canadian region:
• Pacific Periodicals of New Westminster B.C will now have all their distribution work performed through their parent agency in Calgary, Ab.
• Albertson’s Stan Carter will be leaving at the end of the year, but a replacement has not been named.
 
From the Southwest region:
• Jan Taketomo has been hired as a buyer at Ralph’s.
• Ralph Ryan will assume buying duties for Vons.
 
From the South Central region:
• Bob Callahan resigned as buyer for H.E. Butt and will join TDS as a VP of Marketing.
 
From the Northeast region:
• Derica Gobeil assumes buying duties for Shaws/Star Supermarkets.
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