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Kroger gets $215 million from Turkey Hill sale

New owner bullish on food brand’s growth potential

Russell Redman

April 29, 2019

2 Min Read
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The Kroger Co. closed the sale of its Turkey Hill food brand to a Peak Rock Capital affiliate for $215 million.

Financial terms of the deal, which was announced last month, previously weren’t disclosed. Kroger said Monday that it plans to use the after-tax cash proceeds from the sale to reduce debt.

Turkey Hill makes a range of food and beverages, including iced tea, lemonade, fruit drinks, milk, frozen dairy treats and ice cream at its manufacturing and distribution plant in Conestoga, Pa.

Turkey_Hill_products.png"We want to thank Turkey Hill's associates for their dedication and their many contributions to the company," Erin Sharp, group vice president of Kroger Manufacturing, said in a statement. "We look forward to the continued success of the Turkey Hill brand."

Austin, Texas-based Peak Rock Capital, a private equity firm, agreed that its affiliate will continue to operate Turkey Hill from the Conestoga facility with its approximately 800 full-time, part-time and seasonal employees.

According to Robert Pistilli, managing director of Peak Rock, the acquisition of Turkey Hill brings an opportunity “to invest in a premier brand with an established reputation for quality, flavor variety and authenticity within the large and growing ice cream and refrigerated drinks space.”

Related:Kroger sells Turkey Hill food business

Peak Rock CEO Anthony DiSimone added that Turkey Hill offers a platform for growth and that the company “will be aggressively pursuing complementary acquisitions to extend the product and brand portfolio."

Along with Turkey Hill, Peak Rock's food and beverage investments include Berner Food & Beverage, Diamond Crystal Brands, Gold Coast Bakeries, Louisiana Fish Fry, Pretzels Inc., Sweet Harvest Foods and TNT Crust.

Kroger had said in early August that it was exploring strategic options for the Turkey Hill food business, including a possible sale. Kroger and Peak Rock unveiled the Turkey Hill deal on March 20.

The transaction doesn’t include Turkey Hill convenience stores. Cincinnati-based Kroger had sold those stores in April 2018 as part of the divestiture of its c-store business to U.K.-based EG Group in a $2.15 billion deal.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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