Michigan’s SpartanNash Takes Over Fresh Encounter – 49 Ohio Stores Now Under Control of Grocery Giant

SpartanNash expands its retail operations with the acquisition of Fresh Encounter Inc., a long-time partner with stores across Ohio, Indiana, and Kentucky.

SpartanNash Acquires Fresh Encounter, Growing Footprint in Midwest

GRAND RAPIDS, MI – In a bold move to strengthen its retail presence, SpartanNash, the Michigan-based food solutions company, has announced the acquisition of Fresh Encounter Inc., a 49-store supermarket chain operating in Ohio, Indiana, and Kentucky. This acquisition marks a 33% increase in SpartanNash’s retail footprint, further solidifying its influence in the Midwest grocery market.

The move is poised to significantly impact both the company’s long-term strategic growth and its retail operations. The acquisition also brings 2,500 Fresh Encounter employees into SpartanNash’s fold, ensuring a seamless transition while preserving local jobs. Michael Needler Jr. and Julie Anderson, the third-generation owners of Fresh Encounter, emphasized that the deal aligns with their family’s values and the continued growth of their business under a larger corporate umbrella.

“This acquisition is an exciting milestone in our Company’s strategic growth plans,” said Tony Sarsam, CEO of SpartanNash. “Retail is a critical component of our business model as we meet consumer needs and leverage insights from our stores to continuously innovate across our wholesale business.”

Long-Standing Partnership Leads to Acquisition

For 58 years, Fresh Encounter has been a customer of SpartanNash, using the company’s wholesale services to stock its grocery aisles. The acquisition formalizes a relationship that has been key to the success of both entities, combining Fresh Encounter’s strong regional presence with SpartanNash’s robust distribution network.

Fresh Encounter operates under several retail banners, including Community Markets, Remke Markets, Chief Markets, and Needler’s Fresh Market. With the acquisition, SpartanNash will now have a presence in Kentucky, in addition to expanding its footprint in Ohio and Indiana, key battlegrounds in the competitive grocery sector.

SpartanNash Continues Strategic Growth in 2024

This is the second major acquisition for SpartanNash in 2024, following its purchase of Metcalfe’s Market earlier this year. The company’s strategic push comes as it works to meet ambitious goals set forth in its 2025 long-term plan, which focuses on expanding retail operations and increasing earnings.

The acquisition is expected to close by late November, pending customary conditions. Financial terms were not disclosed, though Solomon Partners served as the financial advisor to Fresh Encounter, and Holland & Knight LLP provided legal advice.

Competitive Retail Environment Poses Challenges

The Midwest grocery market is already crowded, with players like Kroger, Meijer, and Walmart vying for consumer dollars. However, with Fresh Encounter’s established brand loyalty and SpartanNash’s aggressive growth strategy, the company is banking on its ability to thrive in this competitive space. Analysts expect SpartanNash to use this acquisition to gain more control over its supply chain, offer more competitive pricing, and leverage its wholesale business to drive additional revenue through its own stores.

Despite its growing dominance, SpartanNash faces hurdles, including inflationary pressures and changing consumer habits, which could challenge its ability to retain customers in the coming years. Retail analysts will be watching closely to see how the company balances the expansion with maintaining profitability.

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