Kroger Announces the Sale of Vitacost.com, Inc.
Rhea-AI Summary
Kroger (NYSE: KR) announced the sale of its subsidiary Vitacost.com, Inc. to iHerb; the transaction closed on January 8, 2026. Kroger described Vitacost as a non-core asset and said the divestiture supports its priorities to simplify the organization and focus on core business. Kroger expects no impact to its previously issued financial guidance for 2025. No financial terms were disclosed. Kroger and iHerb said they are working to ensure a smooth transition for associates and customers, and each party has named financial and legal advisors for the deal.
Positive
- Transaction closed on January 8, 2026
- No expected impact to Kroger's 2025 financial guidance
- Divestiture aligns with Kroger's focus on simplifying core business
- iHerb acquires a brand with existing customer base and equity
Negative
- No financial terms disclosed, limiting transparency for investors
- Sale removes a revenue stream tied to Kroger's eCommerce portfolio
Market Reality Check
Peers on Argus
KR was up 0.86% while key peers ACI, SFM, TGT, WMK, and GO showed gains between 2.97% and 6.11%. Despite broad peer strength, the momentum scanner did not flag a coordinated sector move, suggesting KR’s setup was more stock-specific.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 07 | Customer analytics feature | Positive | -4.0% | Launch of Yearly Checkout personalized 2025 spending and savings summaries. |
| Dec 30 | Health initiative launch | Positive | -0.1% | Harris Teeter health-focused products, tags, and nutrition coaching rollout. |
| Dec 29 | Food access program | Positive | -0.8% | Verified Savings discounts for government-assisted shoppers and Boost offers. |
| Dec 29 | Brand partnership | Positive | -0.8% | Tempo ready-meal promotion with Maria Sharapova and related sweepstakes. |
| Dec 23 | Share repurchase expansion | Positive | +0.0% | Board approval of incremental $2.0B buyback, reinforcing capital return focus. |
Recent company-focused announcements with generally positive tone have often seen flat-to-negative next-day moves, with only the large buyback authorization aligning positively with price.
Over the last weeks, Kroger has emphasized customer engagement and capital returns. Initiatives like Yearly Checkout and Verified Savings for government-assisted shoppers, plus the Harris Teeter health-focused program and a Tempo meal partnership, all carried positive strategic tone but were followed by modest share declines. By contrast, the Dec. 23, 2025 approval of an additional $2.0 billion repurchase, lifting total authorization to $9.5 billion and leaving $2.9 billion available, coincided with a slightly positive reaction.
Market Pulse Summary
This announcement detailed Kroger’s sale of Vitacost.com, a non-core eCommerce health and wellness subsidiary, to iHerb, with closing on January 8 and no change to 2025 financial guidance. It fits a broader focus on simplifying the organization and prioritizing core grocery operations. Investors may watch future disclosures for how proceeds are allocated and how remaining digital and eCommerce assets contribute to profitability and capital return priorities.
AI-generated analysis. Not financial advice.
Retailer finalizes sale to iHerb
"As we shared earlier this fiscal year, we are reviewing all non-core assets to determine their ongoing contribution and role within the company as we make progress on our key priorities: simplifying our organization, improving the customer experience, and focusing on Kroger's core business," said Ron Sargent, Kroger's Chairman and CEO. "The sale of Vitacost is an important step in that process. We believe iHerb is well positioned to help Vitacost reach its full potential outside of Kroger, and we are working together to ensure a smooth transition for associates and customers."
Kroger and iHerb have worked to ensure minimal disruptions for customers and associates.
"The acquisition of the Vitacost brand represents a strategic investment in a name long associated with quality, value, and trust among American health and wellness consumers," said Emun Zabihi, Chief Executive Officer of iHerb. "Vitacost's strong brand equity and established customer base complement iHerb's global platform and capabilities, enabling us to further strengthen our leadership in the online health and wellness market."
This transaction is not expected to impact the Company's previously issued financial guidance for 2025. No additional financial terms were disclosed.
Advisors
RBC Capital Markets, LLC is serving as financial advisor and Weil, Gotshal & Manges LLP are serving as legal advisors to Kroger. Ducera Partners, LLC is serving as financial advisor and Latham & Watkins, LLP are serving as legal advisors to iHerb.
About Kroger
At The Kroger Co. (NYSE: KR), we are dedicated to our Purpose: To Feed the Human Spirit™. We are, across our family of companies more than 400,000 associates who serve over 11 million customers daily through an eCommerce experience and retail food stores under a variety of banner names, serving America through food inspiration and uplift, and creating #ZeroHungerZeroWaste communities. To learn more about us, visit our newsroom and investor relations site.
About iHerb
iHerb, LLC, is one of the world's leading online retailers dedicated to offering an unbeatable selection of vitamins, minerals, supplements and other health and wellness products, including sports nutrition, beauty, bath and personal care, grocery, baby and pet care from nearly 2,000 reputable brands. Supported by a global workforce of 3,000 team members, iHerb serves 14 million active customers across 180 countries and 36 languages. iHerb's sophisticated global logistics network is anchored by nine climate-controlled logistics centers located in the
Forward Looking Statements
This press release contains certain statements that constitute "forward-looking statements" within the meaning of the federal securities laws, including statements regarding Kroger's financial guidance for 2025. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Such statements are indicated by words or phrases such as "expect," and "guidance". Various uncertainties and other factors could cause actual results to differ materially from those contained in the forward-looking statements.
These statements are subject to a number of known and unknown risks, uncertainties and other important factors, and the risks and other factors discussed in reports filed with the Securities and Exchange Commission (the "SEC") by Kroger from time to time, including those discussed under the heading "Risk Factors" in its respective most recently filed Annual Report on Form 10-K and subsequent filings with the SEC, that could cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. Except as required by law, the Company disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.
Kroger assumes no obligation to update the information contained herein unless required by applicable law. Please refer to Kroger's reports and filings with the SEC for a further discussion of these risks and uncertainties.
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SOURCE The Kroger Co.
FAQ
When did Kroger (KR) complete the sale of Vitacost?
Will the Vitacost sale affect Kroger's 2025 guidance (KR)?
Did Kroger disclose the sale price for Vitacost in the KR announcement?
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Who are the advisors for Kroger and iHerb on the Vitacost deal?
