How do you see Kroger potentially benefiting from the formation of PearlRock Partners? Might the initiative cause conflicts with Kroger’s existing CPG trade partners? For up-and-coming food brands, is Kroger’s analytics and shelf space more appealing than partnering with a larger CPG conglomerate?
Interactive Edge’s CEO, Zel Bianco comments, featured on RetailWire’s Braintrust :
This is a smart and well thought-out strategy. Kroger has looked at and continues to look at new areas for growth and greater profit margins that are above and beyond their traditional grocery business and these initiatives help to bolster both. These emerging brands have become the darlings of the industry for many CPG companies and will absolutely compete with brands and categories that their suppliers already sell to Kroger but they are buying these emerging brands to better compete and innovate, so why shouldn’t Kroger be in the mix as well? Private label, emerging brands that are being acquired by CPG companies and now by retailers – they will all need to find a way to compete and hopefully thrive.
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