Supervalu part of consortium in acquisition of 18 Rainbow Foods grocery stores
MINNEAPOLIS — Supervalu, the owner of Cub Foods, along with four Twin Cities-based independent grocery retailers, on Wednesday announced they had each entered into definitive agreements to acquire 18 Rainbow Foods grocery stores from Roundy’s for approximately $65 million plus inventory. In total, the group agreed to acquire the Rainbow grocery stores, including 13 Rainbow pharmacies and three Rainbow liquor stores in Minnesota.
Jerry’s Enterprises, Haug Enterprises, Lund Food Holdings, and Radermacher Enterprises have joined Supervalu in executing these agreements. Once completed, the acquired stores are intended to be operated by Supervalu, a Cub franchisee or an independent retailer as 10 new Cub Foods locations, two new Byerly’s locations and six locations are expected to be operated under the Rainbow banner.
Of the 18 stores, Supervalu will have 100% ownership in three Cub stores, majority ownership in two Cub stores, minority ownership in three Cub stores and 100% ownership in two Rainbow stores as well as 100% ownership interest in eleven pharmacies. Supervalu’s aggregate purchase price across its multiple purchase agreements is approximately $35 million in cash plus the cost of inventory that will be purchased at the closing of the Rainbow store sale. In addition, as part of the transactions, Supervalu will assume certain lease obligations and certain multi-employer pension liabilities related to the stores being acquired by Supervalu.
“Supervalu is thrilled to participate in this consortium of retailers that is acquiring Rainbow stores,” stated Sam Duncan, Supervalu’s president and CEO. “We’re especially pleased that highly respected independent retailers here in the Twin Cities are also acquiring Rainbow stores. These independent retailers are great customers to Supervalu who understand the importance of being a strong community grocer.”
Cub Foods consists of a combination of corporate-owned and franchised locations. Following the close of the transactions, Cub Foods will total 66 stores in the Twin Cities and 77 stores banner-wide (including 76 stores in Minnesota and one store in Illinois).
“With more stores under the Cub Foods brand and being serviced out of our distribution center in Hopkins, we will be better positioned to improve our efficiencies and explore ways to bring even stronger value and price competitiveness to our shoppers going forward," stated Mike Stigers, Cub Foods president.
The transactions are subject to customary closing conditions and are expected to be completed by the end of the summer.
Lipton and Kristen Bell partner for new film series
PURCHASE, N.Y. and ENGLEWOOD CLIFFS, N.J. — Lipton Iced Tea, a brand from Unilever, launched the first film in a three-part series, produced in partnership with actress Kristen Bell.
As creative director of the comedic series, Bell will help bring Lipton’s new brand personalities, Carl and Stu, to life. The series follows the two delivery men as they encounter a variety of hilarious situations. Bell, who many consumers may recall as the voice of Anna in the animated film "Frozen," among her many other film and television credits, is happy about taking her creativity behind the lens.
“In the series, Carl and Stu remind us that we need to break out of our routines and embrace positivity and our passion in life,” Bell said. “I‘m proud I could bring my creative point of view and a little sense of humor to this project.”
Carl and Stu also are asking fans to participate in the “Win an Extra SUNday” promotion, which will run from May 16 to Sept. 6. To enter, consumers can visit LiptonSUNday.com and enter the code found under the caps of specially marked bottles of Lipton iced tea varieties.
FDA panel advises against Rx-to-OTC switch of Singulair
WASHINGTON — The Food and Drug Administration’s Nonprescription Drugs Advisory Committee on Friday voted 11-4 opposed to switching Merck’s allergy remedy Singulair from Rx-to-OTC, according to an Associated Press report.
According to the report, NDAC panelists questioned the safety of Singulair as an OTC remedy, especially considering patients could use it as an off-label remedy for the more serious condition asthma.
The proposed OTC use is "temporarily relieves these symptoms due to hay fever or other upper respiratory allergies: Nasal congestion, runny nose, itchy, watery eyes, sneezing, itching of the nose.” The applicant proposes to label the product for OTC use in adults 18 years and older.
As a prescription remedy, Singulair is also indicated to prevent asthma attacks and for the long-term treatment of asthma in adults and children ages 12 months and older, as well as to prevent exercise-induced asthma in people 6 years of age and older.