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JACKSON DAIRY SHIFTS PRODUCTION AWAY FROM ICE CREAM EXCLUSIVELY TO MILK

CINCINNATI, OH, October 12, 2001 – The Kroger Co. (NYSE: KR) today said it plans to shift production at the Jackson Dairy in Hutchinson, Kansas exclusively to milk by Oct. 19 and close its ice cream manufacturing department.

The decision will affect 30 full-time positions at the facility, which has a total of 125 hourly and management employees. Those 30 employees will be offered jobs with comparable pay and benefits at Dillon Stores Division distribution centers in Hutchinson and Goddard. Dillon is a retail division of Kroger. Jackson Dairy is part of Kroger’s manufacturing division.

Kroger said the decision to focus operations exclusively on milk production will enable the dairy to operate more efficiently. The Company said ice cream production volume had declined to a point that the dairy could no longer manufacture product at a competitive cost.

Headquartered in Cincinnati, Ohio, Kroger is one of the nation’s largest retail grocery chains. At the end of the second quarter, the Company operated 2,392 supermarkets and multi-department stores in 32 states under approximately two dozen banners, including Kroger, Ralphs, Fred Meyer, Food 4 Less, King Soopers, Smith’s, Fry’s and Fry’s Marketplace, Dillon, QFC and City Market. Kroger also operates 788 convenience stores, 420 fine jewelry stores, 143 supermarket fuel centers and 41 food processing plants.


Kroger Contacts:
Media: Gary Rhodes
(513) 762-1304

 

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