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Kroger (KR) & 80 Acres Farms Forge Deeper Ties to Expand Reach

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The Kroger Co. (KR - Free Report) and 80 Acres Farms, a pioneering leader in global vertical farming, have joined forces to make fresh and clean produce accessible to a broader spectrum of households. This collaboration signifies a significant step toward improving the availability of quality produce and embracing sustainable agricultural practices.

Since 2019, 80 Acres Farms has been a trusted supplier to Kroger, starting with a single store in downtown Cincinnati and gradually expanding to encompass more than 300 stores across Ohio, Indiana and Kentucky by 2021. Buoyed by this success, the collaboration is poised to reach new heights, with plans to expand services to nearly 1,000 Kroger stores spanning the Midwest and Southeastern regions.

Dan De La Rosa, Kroger's group vice president of fresh merchandising, commented, "At Kroger, we believe everyone deserves access to fresh, delicious food." He highlighted the significance of 80 Acres Farms' innovative approach and technology in providing customers with nutrient-rich produce while championing sustainable cultivation practices. This collaboration serves to broaden the accessibility of exceptional 80 Acres Farms products known for their long-lasting and exquisite taste.

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80 Acres Farms differentiates itself by growing pesticide-free produce indoors, utilizing fewer natural resources. With operational farms in Ohio and Kentucky and research facilities in Arkansas and The Netherlands, the company is committed to elevating agricultural practices. The newest farm, inaugurated in December 2022 in Florence, KY, is projected to yield approximately 40 million servings of produce annually. As part of its forward-looking strategy, 80 Acres Farms is poised to launch another advanced farm in Georgia, with more expansions on the horizon.

Kroger's extensive reach allows 80 Acres Farms to introduce its fresh produce to new regions, including Michigan, Tennessee and Georgia in early 2023, with further expansion into the Mid-Atlantic and Delta regions during the fall. In addition to its renowned salad blends, 80 Acres Farms envisions supplying Kroger customers with an array of products, including convenient and appetizing grab-and-go fresh meals.

Mike Zelkind, the co-founder and CEO of 80 Acres Farms, remarked, "Retailers have long been attracted to indoor farming because of its potential to supply fresh, healthy, and great-tasting produce in a more environmentally sustainable and resilient manner." He praised Kroger's foresight in recognizing the pivotal role vertical farming plays in reshaping the nation's food supply chain and delivering products that resonate with customers.

Wrapping Up

The partnership between Kroger and 80 Acres Farms is poised to revolutionize fresh produce accessibility while championing sustainable agriculture. This collaboration serves as a model for the integration of innovative technology and eco-friendly practices in shaping a brighter future for food production and distribution.

Shares of Kroger, which carries a Zacks Rank #2 (Buy), have advanced 7.6% year to date compared with the industry’s rise of 11.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Picks You Can't Miss Out On

Here we have highlighted three other top-ranked stocks, namely Grocery Outlet (GO - Free Report) , Ross Stores (ROST - Free Report) and Walmart (WMT - Free Report) .

Grocery Outlet, the extreme value retailer of quality, name-brand consumables and fresh products, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 12.3%.

The Zacks Consensus Estimate for Grocery Outlet’s current financial-year sales and earnings suggests growth of 10.6% and 2.9%, respectively, from the year-ago reported numbers. GO has a trailing four-quarter earnings surprise of 14.3%, on average.

Ross Stores, which operates off-price retail apparel and home fashion stores, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 10.5%.

The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and earnings suggests growth of 4.7% and 13.5%, respectively, from the year-ago reported numbers. ROST has a trailing four-quarter earnings surprise of 11.5%, on average.

Walmart, which operates a chain of hypermarkets, discount department stores and grocery stores, currently carries a Zacks Rank #2. The expected EPS growth rate for three to five years is 6.6%.

The Zacks Consensus Estimate for Walmart’s current financial-year sales suggests growth of 4.3% from the year-ago period. WMT has a trailing four-quarter earnings surprise of 12%, on average.

Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.

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