Category: Produce Blueprints

Agribusiness owners thinking of selling their company—whether to explore new endeavors or enjoy more leisure time—often look to family members, senior management, or known competitors to acquire a stake in the business. 

In the realm of fresh produce or the greater food industry—outside the Kroger-Albertsons deal—what does the future hold for merger and acquisition (M&A) activity? Will the pace quicken or slow due to inflation and other factors?

Many in the greater food industry are waiting to see what happens with the proposed merger of Kroger Company and Albertsons Companies, Inc.

The role of private equity—and its impact on mergers and acquisitions (M&A)—continues to evolve.

Much consolidation has occurred in the grocery retail sector over the last several years, some of which is still ongoing—such as the potential Kroger-Albertsons deal.

The reasons for M&A deals vary. For a private equity firm, the typical reason is simply a desire for a strong return on investment.

Back then, it was tech companies and industry disruptors that attracted PE investment. In the years since, we’ve seen a steady increase of PE investment being made in actual produce companies—businesses that grow, ship, package, and deliver fresh fruits and vegetables. 

Merger and acquisition (M&A) activity is common in the business world, though it hasn’t been as prevalent in the fresh fruit and vegetable world—until recently.

Another feather in the hat of Stater Bros. Markets, Colton, CA, according to Carol Spieckerman, president of Spieckerman Retail in Bentonville, AR, is its hiring practices.

Stater Bros. Markets, Colton, CA, has grown from about 100 stores in the late 1990s to 170-plus stores in 2023, all within its core area of trade in Southern California.