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GOURMET NEWS JULY 2018 www.gourmetnews.com Retailer News RETAILER NEWS 1 2 BRIEFS Kroger Supports USO through Honoring Our Heroes Campaign Southeastern Grocers Successfully Completes Financial Restructuring Southeastern Grocers has successfully completed its financial restructuring and has emerged from Chapter 11. Through this process, SEG has transformed its financial profile and established a strengthened balance sheet by decreasing overall debt levels by approximately $600 million (including $522 million of debt exchanged for equity in the reorganized company) while maintaining the company's strong liquidity position. With a solid financial foundation, SEG will further advance its business through store remodels and new stores. The company will also invest in additional customer programs, including the introduction of the new SE Grocers rewards loyalty program beginning in July 2018. Peapod Opens New Chicago Headquarters Online grocer Peapod officially opened the doors of its new headquarters in Chicago at 300 S. Riverside Plaza on June 5. All of Peapod's corporate employees have transferred from Peapod's former headquarters in Skokie, Illinois, to the new space in Chicago. Peapod first announced the planned relocation this past fall, and the move comes as Peapod is experiencing year over year growth and expanding into new zip codes. The new headquarters will support this growth and allow Peapod to attract the best and brightest talent Chicago has to offer. GrubMarket Acquires So Cal Farm Network California-based online grocer GrubMarket has formally announced that it has agreed to acquire So Cal Farm Network, a leading purchaser and provider of farmer identified, seasonal produce. The terms of the deal were undisclosed. GrubMarket will leverage its vast produce supply chain network and wholesaler relationships to quickly expand So Cal Farm Network's offerings to even more retailers, food service providers, and community-supported agriculture programs. Additionally, this acquisition will further accelerate GrubMarket's produce supply chain presence across the West Coast, as So Cal Farm Network has many valuable synergies with GrubMarket's existing portfolio of brands. Giant Food Announces Partnership with HelloFresh Giant Food announced a partnership with HelloFresh to sell five exclusive meal kits in all 166 stores throughout Maryland, Washington D.C., Virginia, and Delaware. The meal kits are now available in-store. The meal kits include recipes like Chickpea Couscous, Paprika Chicken, Peppercorn Steak, Mediterranean Style Chicken, and Homestyle Meatloaf. Each meal kit contains pre-cut, pre- measured, and pre-washed ingredients and serves two people. The meals take less than 30 minutes to prepare and cook, and range from $14.99-$19.99 per kit, offering servings as low as $7.50 per plate. The meal kits are currently available in the deli sections in Giant stores. The Kroger Co. has made a $1 million do- nation to the USO as part of its annual Hon- oring Our Heroes campaign. Kroger's Honoring Our Heroes campaign has sup- ported veterans, active duty military and their families since 2010, raising more than $21 million through both corporate funds and customer donations. As a result, Kroger is the largest cumulative donor to the USO in the organization's 77-year history. This year, the Kroger family of compa- nies is once again expanding its efforts to bring families around the table by partner- ing with the USO to host Red, White, and Barbeque events across the country. These events will serve more than 3,000 people as a special thank you for their service. "Kroger can never do enough to thank members of the military and their families for the sacrifices they make to serve our country every day. But we can at least do what we do best at Kroger – which is to serve America through food inspiration and up- lift," said Jessica Adelman, Kroger's Group Vice President of Corporate Affairs. "Since words are inadequate to describe our grati- tude, we at Kroger have worked hard to take action to back up those words. Kroger is the single largest donor to the USO, contributing over $20 million over the past decade, plus we have hired more than 43,000 veterans since 2009. It is our honor and privilege as America's grocer to serve America's heroes." "The USO is truly grateful for the Kroger family of stores and its ongoing commit- ment to our nation's men and women in uniform," said Lisa Anastasi, USO Chief De- velopment Officer. "From hiring transition- ing service members to in-store fundraising activations, Kroger continues to prove it is a dedicated Force Behind the Forces helping connect our service members and their fam- ilies to the things they love and fight for." More than 2 million Americans serve on active duty or in the reserves, including many Kroger associates. Kroger believes that sharing a meal together creates lasting bonds. GN Kroger Acquires Home Chef The Kroger Co. and Home Chef, the country's largest private meal kit com- pany, have announced a merger agree- ment that will significantly accelerate availability of meal kits and position the combined company to lead the way in revolutionizing how families shop for, prep, and cook their meals. The initial transaction price is $200 million and fu- ture earnout payments of up to $500 mil- lion over five years are contingent on achieving certain milestones, including significant growth of in-store and online meal kit sales. The pending merger comes on the heels of Home Chef 's 150 percent growth in 2017, $250 million in revenue, and two profitable quarters. After the deal closes, Home Chef will op- erate as a subsidiary of The Kroger Co., maintain its e-commerce business on homechef.com, and assume responsibility for Kroger's meal solutions portfolio. The company will continue to operate its offices and facilities. Following closing, Kroger will make Home Chef meal kits available to Kroger shoppers, both in stores and online. The transaction is expected to close in the second quarter, following the satisfaction of customary closing conditions, including regulatory approval. GN Union Market Continued from PAGE 1 Market Culinary Director and Executive Chef Sandro Romano. Prepared foods will showcase the most flavorful options of the season, with the featured menu items of- fered for the new store's grand opening in- cluding a Quinoa Salad with tri- colored quinoa, radishes, snap peas, peas, fava beans, crunchy sprouts and pearl onions; Black Rice and Shiitake Salad with edamame, red bell peppers, wax beans and scallion; and Brown Rice with Shaved Golden Beets, fennel, sunflower seeds, crunchy sprouts, red onion, mint and sherry vinaigrette. All of Union Market's fresh beef, pork, lamb and poultry offerings are humanely raised, guaranteed antibiotic- and growth hormone-free and fed only a vegetarian diet. Fresh seafood is sustainably sourced and fully traceable. There are more than 160 varieties of domes- tic and imported cheese in the case, including local and regional options, artisanal offerings and imported classics, and the new Union Market's dairy case is filled with milk, yogurt, butter and other products from local fa- vorites like Ronnybrook, Five Acre Farms and Hudson Valley Fresh. Union Market offers free home delivery within a 10-block radius of the store, with variable charges for deliv- eries to locations further afield, or cus- tomers can order by phone or online and have their orders brought out to the curb when their cars pull up. Union Market supports local farmers and producers by offering high-quality local products and produce whenever possible. Gotham Greens, Satur Farms and Red Jacket Orchards are among the stores' local produce suppliers. Local dairy and eggs come from Five Acre Farms, Hidden Camp Farm, Blue Marble, Van Leeuwean, Ample Hill Creamery and Coach Farm. Stumptown, Café Grumpy, Joe's, Oslo and Grady's supply cof- fee to Union Market, and Mast Brothers, HU and NuNu chocolate products are in the stores. In the bakery, find locally made products from Blue Duck Bakery, Lady Bird Bakery, Steve's Authentic Key Lime Pie, Or- washers, Balthazar, Bien Cuit, Pain d'Avi- gnon, Dough Doughnuts, Underwest Donuts and Sugar Sweet Sunshine. Union Market has hired 46 new employ- ees to support its expansion. This store opening brings the total number of Union Market locations to five. The other loca- tions are: in Brooklyn, 754-756 Union Street and 402-404 Seventh Avenue in Park Slope and 288 Court Street in Cobble Hill, and, in Manhattan, 240 East Houston Street on the Lower East Side. GN

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