Kroger is partnering with private investment firm Lindsay Goldberg to create a new platform to invest in consumer product brands.
Called PearlRock Partners, the platform will aim to help emerging consumer brands reach new customers and grow their businesses.
The companies said that it will leverage Kroger’s merchandising capabilities and predictive analytics along with Lindsay Goldberg’s consumer expertise and nearly 20-year track record of investing in family-owned and founder-led companies.
The platform forms part of Kroger’s Restock Kroger initiative, which the company said is “leveraging its stores, logistics and data assets to create incremental new profit streams”.
“We are excited to add PearlRock Partners to our portfolio of high-growth alternative profit businesses that generate additional value from our core grocery business,” said Stuart Aitken, Kroger senior vice president of alternative business.
“We are confident this partnership with Lindsay Goldberg will help discover and cultivate new brands that Kroger customers will love. We are transforming from grocer to growth company by deploying our assets to serve even more customers and create margin-rich alternative profit streams.”
Brian Kelley, a partner at Lindsay Goldberg, said: “We are thrilled to partner with Kroger to help grow tomorrow’s most successful consumer brands alongside the entrepreneurs who built them. Backed by a state-of-the-art predictive data platform, real-world consumer product expertise and unparalleled merchandising resources, these next-gen brands will be poised for growth and offer Kroger’s broad customer base greater choice, convenience and innovation.”
Lindsay Goldberg partner Chris Laitala added: “Our partnership with Kroger creates an opportunity to invest in the consumer products industry with unique insights and a competitive edge. Consistent with our track record of making transformative investments with exceptional industry partners, this strategic relationship with Kroger will provide differentiated sourcing and visibility into evolving consumer preferences and brand performance.”
In March, Kroger secured a deal to sell its Turkey Hill business to an affiliate of private equity firm Peak Rock Capital.
© FoodBev Media Ltd 2019
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