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20 GROCERY & DEPARTMENT STORES GOURMET NEWS SEPTEMBER 2013 www.gourmetnews.com Grocery & Department Stores Kroger Purchases Rival Mid-Atlantic Supermarket Chain Harris Teeter In July, The Kroger Co. and Harris Teeter Supermarkets, Inc. announced a definitive merger agreement under which Kroger will purchase all outstanding shares of Harris Teeter for $49.38 per share in cash. Harris Teeter brings to Kroger a well known brand along with its base of 212 stores in the southeastern and mid-Atlantic markets, including the Washington, D.C.area. Harris Teeter stores are largely located in high-growth markets in North Carolina, Virginia, South Carolina, Maryland, Tennessee, Delaware, Florida, Georgia and the District of Columbia. Harris Teeter also operates distribution centers for grocery, frozen and perishable foods in Greensboro, N.C. and Indian Trail, N.C. and a dairy facility in High Point, N.C. Harris Teeter had revenues of approximately $4.5 billion for fiscal year 2012. "We are excited to welcome Harris Teeter to the Kroger family," said David B. Dillon, Kroger's Chairman and Chief Executive Officer. "Harris Teeter is an exceptional company with a great brand, friendly and talented associates and attractive store formats in vibrant markets run by a first-class management team. They share our customer-centric approach to everything we do, from store format and merchandising to innovative loyalty programs." "This is a financially and strategically compelling transaction and a unique opportunity for our shareholders and associates," Dillon continued. "We look forward to bringing together the best of Kroger and Harris Teeter while continuing to operate and grow the Harris Teeter brands. Together, we can continue to deepen our connections with customers across all of our markets." Thomas W. Dickson, Chairman of the Board and Chief Executive Officer of Harris Teeter, said about the merger, "Harris Teeter has a long track record of creating shareholder value and this merger is the culmination of those efforts over many years. We are excited about becoming part of The Kroger Co., one of the best food retailers in the U.S., while maintaining the Harris Teeter banner, our management teams, our new store growth plan, our distribution and manufacturing facilities in North Carolina as well as our headquarters in Matthews, N.C." GN Trader Joe's is Consumers' Favorite Grocery Chain, According to Market Force Study Trader Joe's is North America's favorite grocery store based on customer satisfaction. This is according to a new study of 6,600 consumers conducted by Market Force Information, a worldwide leader in customer intelligence solutions. Publix Super Markets and Whole Foods Market rounded out the top three. All three received high marks for courteous staff, inviting atmosphere and high-quality produce. Market Force's grocery retailer study was designed to uncover where consumers prefer to shop, as well as why they favor one grocer over another. When asked to rate their satisfaction with their most recent grocery store experience, consumers scored Trader Joe's above all others. Publix, Whole Foods, Wegmans and ALDI also ranked high, indicating both their customers' overall satisfaction and the likelihood that their customers will recommend the grocers to friends and family in the future. The Market Force survey found generally high overall satisfaction among consumers with their preferred grocery stores. This can make it difficult for one store to woo customers away from another. "With most consumers satisfied with their grocery-shopping experiences, it makes for a very competitive playing field for grocers looking to distinguish themselves from the masses," said Janet EdenHarris, Chief Marketing Officer for Market Force. "We start to see the greatest opportunities for differentiation in operations-re- lated attributes such as fast check-outs, gracious staff and atmosphere." Both Trader Joe's and Publix performed well in the operational excellence attributes, with Trader Joe's ranking first for its atmosphere and quick checkout process, and second in the other three categories. Publix was tops among shoppers for its cleanliness and courteous staff, and second to Trader Joe's in atmosphere. Hy-Vee and H-E-B also fared consistently well in key categories. The survey was conducted in May across the United States and Canada. Respondents' ages ranged from 19 to over 65. Approximately 73 percent were women and 27 percent were men. Half of respondents have children at home. GN New Product Opens Supermarket Doors to Special-Needs Shoppers During her early years, Caroline Long fit comfortably in the child seat installed in traditional grocery carts. However, she eventually outgrew those seats, putting her mother Drew Ann Long in a bind. Caroline has Rett's Syndrome, a nervous system disorder that has left her unable to walk, talk or use her hands. Drew Ann, who also has two typical children, soon realized that she needed an original solution to her groceryshopping problem. Neither hiring a babysitter nor pushing Caroline in a wheelchair while maneuvering a grocery cart were practical, so Long was driven to design a custom cart that would allow her to shop with all of her children freely. Caroline's Cart is a state-of-the-art product that will provide families of specialneeds children new freedom of mobility. Officially launched July 18, a number of retailers have already begun ordering Caroline's Carts for their establishments. Technibilt, member of the Wanzl Group, the world's largest producer of grocery carts, began production on a line of Caroline's Carts on August 1. "Technibilt is thrilled to be a part of this amazing grocery cart for children with disabilities. It is going to provide families the opportunity to shop with their child with a disability, with the same ease as a typical child," said David Orfinik, Vice President of Sales and Marketing for Technibilt. Caroline's Cart was honored as an innovative contribution to special-needs individuals with the prestigious 2013 Da Vinci Award for Transportation and Mobility. In 2012, Caroline Long was named a National Youth Ambassador for Easter Seals, an opportunity that gave a greater platform for her story and the cart that bears her name. Easter Seals is so enthusiastic about the cart that it will be the first product emblazoned with the organization's iconic lily logo. For Information on Caroline's Cart, visit www.technibilt.com or www .carolinescart.com. GN BRIEFS Stop & Shop Bringing Customers Local Flavor The Stop & Shop Supermarket Company LLC re-launched its Local Route program in all of its stores to guide customers to fresh, locally grown produce while they shop. Each week, Stop & Shop's produce departments will highlight local farms and feature fresh items from those farms. Stop & Shop has been a leader in the buy local movement for many years, supporting local farmers and suppliers. Customers can find local products in Stop & Shop stores throughout the year. Especially during the summer months, many "in season" produce items have come right from the ground in a nearby town or county. Stop & Shop invites customers to visit www.stopandshop.com for more details on the store's Local Route program and to find recipes for fresh new ideas to lighten up summer meals with locally grown produce. Food 4 Less Working to Reduce Hunger Supermarket chain Food 4 Less raised $154,559 to assist hunger relief efforts. The funds were raised through the supermarket company's annual Bringing Hope to the Table campaign. Monies raised through this year's Bringing Hope to the Table campaign will benefit food banks that are members of Feeding America, the nation's largest hunger-relief organization. Since 2006, Food 4 Less has contributed more than $1.5 million in food and funds to local food banks through the annual Bringing Hope to the Table campaign. "We are grateful to our customers and vendors who chose to make a difference in the lives of hungry families," said Bryan Kaltenbach, President of Food 4 Less. "Thanks to their generosity, Feeding America food banks in the communities served by our stores will be even better positioned to provide food and resources to the hungry." United Supermarkets Introduces TortillaMaking Machines United Supermarkets is officially in the tortillamaking business—and in a big way. Requiring five staff members to operate, the chain's new tortilla machines now produce two distinctly different products. "The 'Mi Pueblo' recipe is your basic table tortilla but with superior quality," said Scott Nettles, Senior Director of Perishables for United Supermarkets. The second, "Tejano Style," represents an improvement over a homestyle product. "We've tried to improve the quality of both products by limiting the preservatives," Nettles explained. "The Mi Pueblo tortilla has a 21- to 30-day shelf life at retail, while the Tejano product will have very little preservatives and a seven-day shelf life. From the two recipes, United will be able to control not only the per-package tortilla count, but also the size of the tortillas, giving store guests a wide variety of products from which to choose.

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