Kroger considers selling off house brand Turkey Hill Dairy

By Beth Newhart

- Last updated on GMT

Turkey Hill Dairy sells ice cream, frozen yogurt, sherbet, iced teas, fruit drinks and milk. Pic: ©GettyImages/allFOOD
Turkey Hill Dairy sells ice cream, frozen yogurt, sherbet, iced teas, fruit drinks and milk. Pic: ©GettyImages/allFOOD

Related tags Ice cream Iced tea

The Kroger Company announced Tuesday it is considering the sale of Turkey Hill Dairy, a brand that is sold in supermarkets across the country.

The grocery chain may unload it to reach its “full potential.”

Turkey Hill Dairy was established in Pennsylvania during the Great Depression in 1931 and is still headquartered in Conestoga. It has been owned by Kroger since 1985.

The brand sells several varieties of ice cream, frozen yogurt and sherbet. They also produce a full line of iced teas, fruit drinks, milk and other frozen dairy treats with nearly 800 full-time, part-time and seasonal employees.

Fulfilling potential

Kroger did not cite a specific reason for considering a sale, but revealed that it has hired Goldman Sachs & Co. to “identify, review and evaluate the options.”

Erin Sharp, group vice president for Kroger Manufacturing, said, "Turkey Hill is a unique CPG food business within Kroger Manufacturing as it is a strong, nationally-known brand. 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.

"I'd like to thank our skilled and dedicated associates for building a successful brand our customers love. We believe it is in the best interest of our associates, the Turkey Hill business, and our shareholders to explore this course of action​."

ecommerce launch

Kroger currently owns 38 food manufacturing plants, including 19 dairies. It operates more than 2,800 retail locations and recently announced its flagship ecommerce program, Kroger Ship.

The service is launching first in Cincinnati, Houston, Louisville and Nashville with a flat delivery fee of $4.99 for orders under $35.

Yael Cosset, Kroger's chief digital officer, said "Kroger's ecommerce platform expands our offering beyond the physical store to include even more products. Along with staples and customer favorites, Kroger Ship will carry bulk and additional sizes, and focus on Our Brands, local and international food and flavors, specialty items, and health and wellness products.”

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