SuperValu (United States)

SuperValu, Inc.
Company type	Subsidiary
Industry	Grocery wholesaler and retailer
Founded	1926; 100 years ago
Founder	Investors from B.S. Bull and Company (originally Winston and Newell Company)
Fate	Acquired by United Natural Foods (UNFI) in 2018
Successor	United Natural Foods
Headquarters	Eden Prairie, United States
Area served	United States
Key people	Sean Griffin (CEO after 2018 acquisition), Mark Gross (former CEO), Craig Herkert (former CEO), Wayne Sales (former CEO), Sam Duncan (former CEO)
Products	Grocery products, retail stores, wholesale supply, third-party logistics via Advantage Logistics and Total Logistic Control, specialty produce via W. Newell & Company
Owner	United Natural Foods (UNFI)
Parent	United Natural Foods

SuperValu, Inc. operated as a prominent American wholesaler and retailer specializing in grocery products, with its headquarters situated in Eden Prairie, Minnesota. Established in 1926, the company eventually became a fully owned subsidiary of United Natural Foods (UNFI).

On July 26, 2018, SuperValu consented to be acquired by UNFI, headquartered in Providence, Rhode Island, for $1.3 billion in cash. Alongside this purchase, UNFI took on $1.6 billion in debt and liabilities. The acquiring company anticipated achieving roughly $175 million in cost savings within three years and intended to divest SuperValu’s grocery store operations.

By mid-2022, the SuperValu brand had mostly been phased out, remaining only in a few smaller grocery outlets. Additionally, its distribution center located in Hopkins, Minnesota was rebranded under the UNFI name.

History

The origins trace back to 1870 when Hugh G. Harrison financed B.S. Bull and Company, a wholesale dry goods firm based in Minneapolis. Although this venture was brief, its founders went on to establish Winston and Newell Company in 1926 by merging two businesses supported by investors from B.S. Bull.

Winston and Newell affiliated with the Independent Grocers Alliance (IGA) in 1928 but departed in 1942 to form a "virtual chain" comprising independent stores operating under the SuperValu and U-Save brands. The success of this concept led to renaming the firm as SuperValu Inc. in 1952, later shortened simply to SuperValu in 1992.

SuperValu became publicly traded on the New York Stock Exchange starting in 1967 until its takeover by UNFI in 2018.

Acquisitions

In 1955, SuperValu expanded by purchasing Joannes Brothers Company based in Green Bay, Wisconsin, a grocer serving Wisconsin and northern Michigan since 1872. This acquisition became known as SuperValu’s Green Bay Division and moved operations to a modern suburban facility.

The company's entry into the institutional market was marked by acquiring Food Marketing Corporation of Fort Wayne, Indiana, in 1963. George W. McKay, then president of Food Marketing, joined SuperValu as Executive Vice President and advanced to CEO by 1970.

SuperValu bought the discount retailer ShopKo in 1971; it was later spun off as an independent public company in 1991 with SuperValu retaining a 46% ownership until ShopKo reacquired those shares in 1997. The company also created County Seat in 1973 but sold it a decade later.

In 1975, SuperValu acquired Hornbacher's, followed by the purchase of Minnesota-based Cub Foods in 1980, which had grown to over 73 stores by 2011.

The early 1990s saw multiple acquisitions including Scott's Food & Pharmacy (1991), Wetterau, Inc. which operated Shop 'n Save and Save-A-Lot (1992), and bigg's (1994). Scotts and Biggs were eventually divested. The $1.5 billion purchase of Richfood Holdings expanded their Mid-Atlantic distribution network and added store banners such as Farm Fresh Food & Pharmacy, Shoppers Food & Pharmacy, and Metro.

In 2003, SuperValu acquired former Midwest assets from Fleming Companies, incorporating brands like Sentry Foods and Festival Foods.

On January 23, 2006, SuperValu partnered with CVS Corporation and Cerberus Group to buy Albertsons, Inc. for $9.7 billion. This acquisition included more than 2,150 stores such as:

Acme Markets (134 locations) (later sold to Cerberus)
Fuel centers branded Acme Express and Albertsons Express (107 units) (divested)
Albertsons (564 locations) (sold to Cerberus)
Bristol Farms (15 locations) (subsequently sold)
Jewel and Jewel-Osco (198 locations) (transferred to Cerberus)
Lazy Acres Market (1 location) (later divested)
Max Foods (3 locations) (rebranded as Lucky)
Pharmacies under Osco Pharmacy and Sav-on Pharmacy banners (906 locations); standalone stores were sold to CVS
Franchises of Save-A-Lot
Shaw's (188 locations) and Star Market (20 locations) (also sold to Cerberus)

Craig Herkert, formerly with Walmart, assumed the role of CEO in 2009.

By January 2011, facing a quarterly loss of $202 million alongside a revenue decrease of 6% down to $8.67 billion, SuperValu closed twenty underperforming outlets; its stock price dropped by 12% to $7.52 per share.

In September of that year, most fuel centers were sold off to convenience store operators including Tesoro, Holiday Stationstores, Couche-Tard (Circle K), and Stinker Stores.

By 2012, SuperValu operated approximately 2,505 combined food and drug stores featuring 878 pharmacies within those locations plus 117 fuel stations. It also supplied about 2,200 independent retailers under franchise agreements for Cub Foods and Save-A-Lot brands. The company emphasized efficient food distribution through a network of thirty-two distribution centers servicing around 2,349 retail outlets.

On July 11, 2012, fiscal Q1 results showed net sales of $10.6 billion with net income at $41 million—a decline from $11.1 billion sales and $74 million earnings reported the previous year—causing shares to plummet nearly 45% amid deteriorating debt metrics.

Herkert was succeeded by Wayne Sales as CEO on July 30; Sales had previously served as Canadian Tire’s CEO from 2000 until 2006.

In January 2013, SuperValu divested several chains including Acme Markets, Shaw's, Star Market, Jewel-Osco along with remaining Albertsons stores to Cerberus Capital Management for $100 million cash plus assumption of $3.2 billion in debt. Retained assets included Cub Foods; Farm Fresh Food & Pharmacy; Shoppers Food & Pharmacy; Shop ‘n Save brands; along with wholesale supply operations. This transaction finalized on March 21 that year.

On March 14, 2018, SuperValu declared plans to close twenty-one out of thirty-eight Farm Fresh outlets while selling most locations primarily to Kroger and Food Lion.

Sam Duncan was appointed CEO in January 2013 following his retirement from OfficeMax; he stepped down himself in October 2015.

In July 2016, SuperValu agreed to acquire twenty-two Food Lion stores divested by Ahold/Delhaize across Maryland, Pennsylvania, Virginia, and West Virginia; these were subsequently rebranded under Shop ‘n Save.

Mark Gross took over as CEO on February 3, 2016.

Later that year in October, Save-A-Lot was sold to Onex Corporation for $1.37 billion cash.

In April 2017, SuperValu entered into a merger agreement valued at $375 million with Unified Grocers based in Commerce, California; Unified Grocers became a wholly owned subsidiary with integration expected over two years. Later that same year saw the acquisition of Associated Grocers of Florida by SuperValu.

Sale of Company

On July 26, 2018, Supervalu reached an agreement to be acquired by United Natural Foods for $2.9 billion in cash. The transaction finalized on October 22, 2018, with Sean Griffin taking over as CEO of Supervalu, succeeding Mark Gross.

Overview

Having served IGA stores for over eight decades, SuperValu has cultivated deep relationships with family-run grocery businesses, many of which have operated across several generations. Despite this longstanding presence, SuperValu’s market share faced challenges from competitors such as Walmart and rapidly expanding regional chains like Giant Eagle. This competitive pressure resulted in the divestiture of its Shop 'n Save stores in the Pittsburgh, Pennsylvania region, with most locations transferring to independent owners who continue to operate under the Shop 'n Save name. Nevertheless, SuperValu continues supplying FoodLand, Save-A-Lot, and independently owned Shop 'n Save outlets throughout western Pennsylvania and northern West Virginia.

SuperValu capitalizes on bulk purchasing efficiencies by sourcing products from major national brands including Kraft Foods, General Mills, and Kellogg's, alongside suppliers specializing in beer, meat, produce, dairy, and health and beauty categories. These items are distributed through Direct Store Delivery networks from its distribution centers spread across the country.

Emerging sectors such as ethnic cuisine and natural or organic products pose unique challenges due to the absence of dominant market leaders. Whether SuperValu’s traditional emphasis on small grocery retailers can successfully extend into these areas remains uncertain.

The company’s brand lineup encompasses:

In addition to retail operations, SuperValu owns two third-party logistics companies—Advantage Logistics and Total Logistic Control—and established W. Newell & Company in 2005, a specialty produce firm based in Champaign, Illinois.

Chains

Prior to its acquisition by United Natural Foods in 2018, SuperValu operated a variety of retail banners:

County Market, featuring more than 100 independently owned stores across Iowa, Illinois, Indiana, Louisiana, Michigan, Minnesota, Missouri, Mississippi, Pennsylvania, Washington, and Wisconsin
Cub Foods, comprising 77 locations including 31 franchised outlets in the Minneapolis-St. Paul metropolitan area (MN) and IL
Festival Foods, licensed stores located in Wisconsin, Minnesota, and Michigan
FoodLand, licensed sites throughout Pennsylvania, West Virginia, Ohio, and Kentucky
Sentry Foods, six licensed stores operating in Wisconsin
Shoppers Food & Pharmacy, operating 56 stores across Washington, D.C., Baltimore, MD, and Northern VA
Shoppers Value Foods, licensed supermarkets operating on a cost-plus basis
SuperValu Pharmacies, managing 109 pharmacy locations nationwide

Former chains

SuperValu formerly owned multiple chains that were either sold or divested:

Acme Markets, consisting of 117 stores across Delaware, Maryland, New Jersey, and Pennsylvania; sold to Albertsons LLC
Albertsons, with 453 stores across Southern California, Colorado, Idaho, Montana, North Dakota, Nevada, Oregon, Utah, Washington, and Wyoming; sold to Albertsons LLC
Fuel centers and convenience stores branded as Acme Express, Albertsons Express, and Jewel Express; divested in 2011
bigg's, operating in Cincinnati (OH), Clarksville (IN), and Florence (KY); sold to Remke Markets in 2010
Bristol Farms, a specialty grocer based in Southern California; spun off in 2010
Farm Fresh Food & Pharmacy, headquartered in Norfolk (VA); 21 locations sold to Kroger and Ahold Delhaize in 2018 with others franchised or closed
Hornbacher's, eight stores serving Fargo-Moorhead/Grand Forks area; seven sold to Coborns in 2018 while one was closed
- Lazy Acres
Max Foods, Southern California outlets rebranded as Lucky Stores
Jewel-Osco, operating 182 stores across Illinois, eastern Iowa, northwestern Indiana, and southeastern Wisconsin; sold to Albertsons LLC
Marsh Supermarkets with 86 stores located in Ohio and Indianapolis as of 2013
Lucky Stores, five stores situated in Las Vegas and Southern California; sold to Albertsons LLC
Pharmacy chains Osco Pharmacy and Sav-on Pharmacy with a combined total of 722 pharmacies nationwide; sold to Albertsons LLC
Rainbow Foods, a Minnesota-based chain that ceased operations in 2018
Save-A-Lot, comprising approximately 1,250 stores nationwide including 860 franchised units; sold to Onex Corporation
'Scott's Food & Pharmacy, serving Fort Wayne and northeastern Indiana; sold to Kroger in 2007
Shop 'n Save, located in the St. Louis area and Southern Illinois; nineteen locations were sold to Schnuck Markets and converted while remaining stores closed in 2018 after unsuccessful sale attempts
The Pittsburgh-area Shop 'n Save stores became independently owned following divestiture; these are separate from the St. Louis-area outlets
ShopKo, spun off in 1991 with residual interests fully divested by 1997
Shaw's and Star Market, operating 169 stores throughout New England; sold to Albertsons LLC
Sunflower Market, an Indianapolis-based chain with five locations that closed by 2008
Twin Valu, a hypermarket concept based in Ohio that shuttered operations in 1996
KMART food supply operations which are now defunct

Product labels

Numerous banners carry private label products. Currently active private label lines under SuperValu include:

Arctic Shores – Seafood selections
Baby Basics – Infant care items (initially from Albertsons)
Carlita – Hispanic cuisine
Cub – Store brand generic products
Culinary Circle – Food of restaurant caliber
Essential Everyday – Equivalent to national brands
Equaline – Over-the-counter pharmacy and personal care products (originally Albertsons)
Farm Fresh – Store brand generic items
Farm Stand – Fresh produce
Flavorite – Budget-friendly sodas, launched in 1997
Whole Care Pet (previously Happy Tails) – Pet nutrition (initially Albertsons)
Heritage – Alcoholic beverages
Java Delight – Coffee sourced through Distant Lands Coffee
Max Velocity – Energy beverages
NutriPlan – Pet nutrition products
Richfood – Store brand generic goods
Shoppers Value – High-value generic brand
Stockman & Dakota – Premium beef cuts
Stone Ridge Creamery – Frozen treats including ice cream, yogurt, and sherbet
Wild Harvest – Organic produce, meats, and snacks (originally Shaw’s)
SuperChill – Soft drinks and alternative beverages
SuperCrunch – Snack items
Village Market
Wild Harvest Organic Foods – Natural and organic selections

Discontinued private label brands include Hillfarm, Economy Buy, Home Best, Essensia (originally Albertsons), Chateau, Quality Plus, and Elf.

Culture

Diversity

Since 2008, SuperValu has maintained a perfect 100% score on the Corporate Equality Index issued by the Human Rights Campaign.

Environment

Cub Foods, a subsidiary of SuperValu, became the first grocery store in Minnesota to receive LEED Gold NC2.2 Certification for its St. Paul location—one of only three grocery stores nationwide to achieve this honor. Albertsons was the pioneer among major retailers to obtain LEED Certification for a remodeled store incorporating water-efficient faucets, skylights, "Night" curtains over refrigerated cases, and LED lighting.

In August 2009, the U.S. Environmental Protection Agency acknowledged SuperValu for meeting emissions reduction goals under the GreenChill Program.

Accounting irregularities and practices in 2002

In June 2002, SuperValu disclosed it would revise previous financial statements due to accounting discrepancies within its pharmacy division, triggering an 18 percent decline in stock value. On July 12, 2002, the company was found liable in a lawsuit concerning improper accounting of cost of goods sold over at least four years and agreed to pay a $4 million settlement.

Notes

References

External links

Craig Herkert Forbes Profile
Cole, Heather. "Family-owned SuperValu survives in battle against superstores." St. Louis Business Journal. December 1, 2002.