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Kroger to form consumer brand incubator

Partnership with Lindsay Goldberg to drive data-driven investments

Russell Redman

May 14, 2019

2 Min Read
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Pushing ahead with its alternative business strategy, The Kroger Co. has teamed with private investment firm Lindsay Goldberg to form an incubator for next-generation consumer product brands.

Called PearlRock Partners, the platform will identify, invest in and help grow emerging consumer product companies and be one of the largest data-driven investment vehicles focused on consumer brands, the companies said late Tuesday.

“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,” Stuart Aitken, senior vice president of alternative business at Kroger, said in a statement.

“We are transforming from grocer to growth company by deploying our assets to serve even more customers and create margin-rich alternative profit streams,” added Aitken, who’s also CEO of Cincinnati-based Kroger’s 84.51° data analytics subsidiary.

The companies noted that PearlRock pairs Kroger’s merchandising capabilities and predictive analytics with New York-based Lindsay Goldberg’s deep consumer expertise and nearly 20-year track record of investing in and supporting family-owned and founder-led companies.

Related:Kroger retools senior management for ‘Restock’ strategy

“We are thrilled to partner with Kroger to help grow tomorrow’s most successful consumer brands alongside the entrepreneurs who built them,” said 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. “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.”

The relationship with Kroger will bring differentiated sourcing and visibility into evolving consumer preferences and brand performance, according to Lindsay Goldberg partner Chris Laitala. “Our partnership with Kroger creates an opportunity to invest in the consumer products industry with unique insights and a competitive edge,” he said.

Kroger said PearlRock Partners dovetails with Restock Kroger, the company’s strategy to redefine the customer experience. At Kroger’s investor conference last fall, executives said the company looking to alternative profit streams to help reach its goal of $400 million in operating profit by 2020 under the Restock Kroger. To that end, Kroger aims to monetize the huge, rich stores of data amassed from its position as the nation’s largest supermarket company, with 2,800 stores, vast digital properties, millions of daily transactions, and broad technology and analytics capabilities.

Related:Kroger banks on burgeoning sources of revenue

In announcing the PearlRock venture, Kroger explained that its new growth model aims to create a “virtuous cycle” in which its stores, logistics and data assets spawn new profit streams that, in turn, drive investments to further redefine the customer experience. The company added that the PearlRock platform “will also contribute to the small brand ecosystem, helping emerging brands grow and thrive in Kroger’s stores.”

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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