Kroger announced that it is partnering up with private equity firm Lindsay Goldberg to form a new platform called PearlRock Partners. It will identify, invest in and help grow the next generation of leading consumer product brands by leveraging Kroger’s merchandising capabilities and predictive analytics and will be one of the largest data-driven investment vehicles focused on consumer brands. The platform will be a part of Kroger’s alternative profit streams portfolio, 84.51.° “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. We are confident this partnership with Lindsay Goldberg will help discover and cultivate new brands that Kroger customers will love,” said Stuart Aitken, Kroger’s senior vice president of alternative business and CEO of 84.51°. “We are transforming from grocer to growth company by deploying our assets to serve even more customers and create margin-rich alternative profit streams.”
Lindsay Golderg is a PE firm that focuses on family and founder owned businesses in middle market sectors such as consumer products, commodity-based manufacturing, energy services, business services, healthcare, financial service, energy transmission and waste disposal. Brian Kelley, a partner at Lindsay Goldberg who previously served as CEO of Keurig Green Mountain and president of Coca-Cola’s North American operations, added: “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.”
PearlRock Partners ladders to Restock Kroger, Kroger’s strategy to redefine the food and grocery customer experience in America. The plan, which is fueled by capital investments, cost savings and free cash flow, has four main drivers: Redefine the Food and Grocery Customer Experience, Expand Partnerships to Create Customer Value, Develop Talent, and Live Kroger’s Purpose. It consists of leveraging its stores, logistics and data assets to create incremental new profit streams, which then drives investments to further redefine the customer experience, creating a continuous cycle of growth. This in turn, not only drives new alternate profit streams for Kroger, but also contributes to the small brand ecosystem, helping emerging brands grow and thrive in Kroger’s stores.