Kroger mulls future of Turkey Hill Dairy

Owner of Lancaster company ‘exploring alternatives,’ including sale

CINCINNATI, OHIO » The Kroger Co. is considering the future of one of its business units — Turkey Hill Dairy — which produces ice cream and beverages.

The company announced last week that it is “exploring strategic alternatives” for its Lancaster Countybased Turkey Hill Dairy, including a potential sale.

Turkey Hill Dairy, which has 800 employees, produces a full line of iced teas, fruit drinks, milk, frozen dairy treats and ice cream at its Conestoga manufacturing and distribution facility.

“Turkey Hill is a unique CPG (Consumer Packaged Goods) food business within Kroger Manufacturing as it is a strong, nationallyknown brand,” Erin Sharp, group vice president for Kroger Manufacturing said in a press release. “Turkey Hill’s successful and recognizable ice cream and beverage products have the potential for greater growth outside of our company. We want to ensure Turkey Hill has every opportunity to meet its full potential.”

The Kroger Co. owns 38 food manufacturing plants — including 19 dairies — which produce the supermarket company’s house brand products.

The company has hired Goldman Sachs & Co. LLC to identify, review and evaluate the options for Turkey Hill Dairy.

Last week’s announcement was not the first announcement in the past year about the company’s relationship with Turkey Hill — a company Kroger has owned since 1985.

In April 2018, Kroger completed the $2.15 billion sale of its convenience store portfolio — including Turkey Hill Minit Markets — to EG Group, a privatelyheld convenience store retailer based in the United Kingdom.

Of the 762 convenience stores sold as part of the transaction, more than 270 were Turkey Hill Minit Markets in Pennsylvania, Columbus, Ohio and Indiana. Kroger’s convenience store business operated in 18 states and employed 11,000 associates under the names: Turkey Hill, Loaf ‘N Jug, Kwik Shop, Tom Thumb and Quik Stop.

As part of the agreement, EG Group agreed to establish its North American headquarters in Cincinnati, Ohio, and continue to operate stores under their established banner names.

Turkey Hill Dairy was not part of that deal, which had been announced in October 2017.

No other information about the future of Turkey Hill Dairy has been made available by Kroger. The Kroger Co. operates 2,800 retail food stores under a variety of local banner names in 35 states and the District of Columbia. Email business story ideas to business editor/writer drovins@21st-centurymedia.com