Festival Foods bought out

WISCONSIN – A new grocery conglomerate is forming in the Midwest as Schnucks acquires Festival Foods and Hometown Grocers, with the 1939 Group promising to preserve the local community ties that have defined these family-owned chains for decades.
On Sept. 16, Schnuck Markets, Inc. CEO Todd Schnuck announced the 1939 Group, Inc.’s definitive agreement to purchase 100% of the shares of Skogen’s Festival Foods and Hometown Grocers, Inc.
The purchase includes shares held by Mark Skogen, CEO of Festival Foods and Hometown Grocers, Inc., as well as the shares in the trust held by Employee Stock Ownership associates.
“Schnucks, Festival Foods, and Hometown Grocers, Inc. are joining together under a new parent company, the 1939 Group, and all stores will continue to operate with their existing banners and workforce. We’re looking forward to leveraging the expertise of all the companies while maintaining and strengthening their customer promise,” said Schnucks Senior Communications Specialist Paul Simon
“Upon the sale’s closing, the 1939 Group looks forward to welcoming the 8,000 associates into our family-owned company and is committed to maintaining the stores’ existing banners, which we know are well respected in the communities they serve. The sister companies will operate separately, and the majority of employees’ roles and responsibilities will not change upon the completion of this purchase.

“We are always evaluating store planning opportunities, potential customer expectations and other future actions that could position our company for continued success.”
Forty-two stores operate under the Skogen’s Festival Foods banner, while Hometown Grocers includes nine banners — Dave’s County Market, Denny’s Supervalu, Don’s Quality Market, Lake Mills Market, Lakewood Supervalu, Super Ron’s Food Center, Thompson’s County Market, Thorp Supervalu and Wittenberg Sentry Foods.
The 1939 Group is owned by the family that owns Schnuck Markets, Inc.
“We’re excited to not only share what we have learned over the past 86 years but to also learn from the associates of Festival Foods and Hometown Grocers who have quite a history of their own. Our companies have had success over the years because of the strong community involvement, and we expect that to continue,” Simon added.
“The transaction will likely take 30 days or more to close, pending the necessary reviews required for these types of transactions. It is anticipated to close in mid to late October.
“Following the purchase, the companies will maintain their existing workforces while operating with the corporate structure and headquarters in place today. We are honored to be entrusted with the legacy created over the last 80 years by the Skogen family and their team.”
“Our family is honored to be entrusted with the Skogen family legacy, one that began serving Wisconsin communities in 1946 and continued for decades under the leadership of Dave and Barb, and later, under Mark as CEO,” said Schnuck. “Schnucks, Skogen’s Festival Foods and Hometown Grocers share a strikingly similar set of core values, tracing our success to decades of consistently focusing on the communities we serve, the values we share and the ongoing quest for excellence in grocery retail. With this combination, we’re welcoming more than 8,000 associates to our family, unifying two family legacies and redefining what it means to be a regional grocer.”