News Briefs

On Sept. 29, the health care division of The Kroger Co. provided Express Scripts, Inc. written notice of its intention to terminate their pharmacy provider agreement for commercial customers. According to Kroger Health, it has attempted on dozens of occasions since February to negotiate in good faith with Express Scripts – seeking a more equitable and fair contract that lowers cost, increases access, and delivers greater transparency – but there has been little to no progress to date.

"Kroger is doing everything possible to deliver greater value for our customers and navigate this ongoing period of record inflation. We do not believe Kroger customers should have to pay higher costs to increase Express Scripts' profits," said Colleen Lindholz, president of Kroger Health.

"We took the necessary step of announcing our intention to terminate our contract with Express Scripts because the current arrangement does not enable Kroger to improve health access, deliver greater pricing transparency, and keep prices affordable for our more than 17 million patients," continued Lindholz. "So far, our efforts to negotiate in good faith have not delivered an agreement in the best interest of our customers – especially members of the military and their families receiving benefits through Tricare – that protects them from rising costs amid record inflation. Kroger remains willing to negotiate any contract with Express Scripts that results in a fair, transparent agreement at a rate that benefits everyone – particularly our customers – and prevents any disruption of services."

If a new agreement is not reached by Dec. 31, most Express Scripts' commercial customers around the country will no longer be able to fill prescriptions at pharmacies within the Kroger family of companies.

Serving 60 million households annually nationwide through a digital shopping experience, and almost 2,800 retail food stores under a variety of banner names, Cincinnati-based Kroger is No. 4 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.

Consumers on the path to discovery at Trader Joe’s can once again get a taste of products that pique their interest. According to the latest “Inside Trader Joe’s” podcast, the pandemic-related hiatus on sampling is over.

“Demo is back!” asserted company crew members during the podcast episode.  The podcast was recorded during the recent Captains Meeting of store leaders held in Los Angeles.

Going forward, sampling at Trader Joe’s stores will take a different tack.  “We want to focus a little more on new products. Things not necessarily on your shopping list, but things we’re excited to share,” noted Matt Sloan, VP of marketing at the grocer.

A store leader named Ken from the Trader Joe’s in Somerville, Mass. explained the approach in more detail: “I think one of the hardest things is we have all these new products that we can talk about with our customers, but we want our customers to try it … I think demo is kind of that next shared experience with food, and in our culture, food is everything.”

Also during the Captains Meeting, winners of the Trader Joe’s Golden Potsticker awards were revealed. The award recognizes locations and crews that exhibit strong connections with their customers and neighborhoods – in other words, stores that are especially nice. Winners include Store 5-5-9 in Staten Island, N.Y.; Store 5-7-1/Bridgemarket in New York City; and Store 5-5-2 in Oceanside, N.Y.

With more than 500 stores in 40-plus states, Monrovia, Calif.-based Trader Joe’s is No. 27 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America. 

Pete and Gerry's Organics LLC is bringing on a seasoned CPG executive as its new CEO. Tom Flocco, most recently the president and COO of Utz Brands, is taking the reins of the Monroe, N.H.-based organic, free-range and pasture-raised egg provider.

Flocco’s 35-year background in the CPG industry and other sectors also includes a stint as president and CEO of distilled spirits company Beam Suntory. In addition, he is chairman of Everglades Boats and was a partner at McKinsey & Co. in its consumer practice.

“We are thrilled to have Tom join Pete and Gerry's leadership team as CEO. Tom is an impressive executive with a wealth of experience across food and consumer businesses that will help us accelerate the company's growth and further its mission,” noted Adam Waglay, co-founder of Los Angeles-based Butterfly Equity, which holds a majority interest in Pete and Gerry’s.

Flocco, who started his career at Procter & Gamble, said that he is looking forward to guiding Pete & Gerry’s at a time increased consumer interest in such products. “Pete and Gerry’s is a pioneer in the premium egg category, with tremendous growth potential as consumers demand more nutritious, sustainable and humanely raised eggs. I look forward to working with our team members, our family farmers and our customers to continue on this incredible journey,” he observed.

Pete and Gerry’s portfolio includes Pete and Gerry’s Organic, Nellie’s Free Range and Consider Pastures eggs. The company became the first Certified Humane egg producer in the United States in 2003, and a decade later, it was the first egg producer in the world to achieve Certified B Corporation status.

 

The waning of the pandemic means that many in-store tasting experiences are back. Kowalski’s Markets, in the Minneapolis-St. Paul area, is celebrating A Taste of Kowalski’s on Oct. 15 between 11 a.m. and 2 p.m.

At this in-store event, shoppers can check out the latest additions to the regional grocer’s private label line and sample an array of store-brand favorites. Kowalski’s will also share recipes using private label and other products.

The independent grocer continues to expand its private label offerings. In September, Kowalski’s introduced a new blueberry small-batch jam, organic Crunchy Munchy Mix, and additional Maple Oat and Triple Berry varieties of granola.  

Operating 11 stores across the Twin Cities, Woodbury, Minn.-based Kowalski’s was founded in 1983 by Mary Anne and the late Jim Kowalski, and is currently run by Mary Anne and her daughter, CEO Kris Kowalski Christiansen. It’s the only grocery store in the area with a department devoted to gifts.

Produce shipping is about to be transformed thanks to a partnership between cloud-based software company Procurant and Uber Freight. The companies are rolling out an innovative shipping option for retailers and suppliers of fresh produce that promises to offer relief to the grocery industry.

The Procurant Ship feature allows produce suppliers with a Procurant account to view a competitive transportation rate and secure shipment of a specific load while responding to an active purchase order. This will provide immediate access to available quality carrier capacity to help streamline carrier selection and provide real-time, in-transit visibility.

[Read more: "New Software Improves Connectivity Between Fresh Produce Suppliers and Buyers"]

“This partnership is a game-changer for grocery retailers and their produce suppliers, and it will bring much-needed relief to an industry struggling with rising transportation costs and truck availability,” said Eric Peters, CEO of Watsonville, Calif.-based Procurant. “With this partnership, we move one step closer to a more cost-effective and streamlined fresh food supply chain.”

According to Matt Menner from San Francisco-based Uber Freight: “It’s imperative that produce suppliers are able to reliably source cost-effective, safe and reliable transportation services. And as freight rates [remain] volatile, new technologies can help suppliers ensure food stays fresh and arrives on time. Through this exciting partnership with Procurant, we enhance the resilience of produce supply chains by reducing waste, keeping costs down, moving produce more efficiently, and ultimately better supporting the communities we serve."

The Kroger Co. has revealed America’s top 10 favorite candies, with Reese's Peanut Butter Cups coming in at No. 1 and Snickers bars at No. 2. The ranking is based on 2022 sales projections that are based on sales from the previous year during the same period.

The top 10 candy sellers are as follows:

1. Reese's Peanut Butter Cups
2. Snickers
3. Kit Kat
4. Hershey Bar
5. Tootsie Roll
6. Twix
7. M&M's
8. Butterfinger
9. Milky Way
10. 3 Musketeers

"This Halloween, we expect our shoppers will purchase more than 11.5 million bags of fun sized candy — 7.6 million pounds of chocolate — to celebrate the season and make it a memorable experience," said Carlo Baldan, group VP of center store merchandising. "Trick-or-Treaters can look forward to their candy haul having lots of Reese's Peanut Butter Cups, Snickers and Kit Kat bars."

The grocer also shared that monster-sized variety bags account for 40% of all Halloween candy sales at Kroger, and that the top-selling Halloween bag is made by Hershey's and contains Reese's Peanut Butter Cups, Kit Kat bars, Heath bars, Whoppers, Milk Duds and Rolos.

Serving 60 million households annually nationwide through a digital shopping experience, and almost 2,800 retail food stores under a variety of banner names, Cincinnati-based Kroger is No. 4 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.