EDISON, N.J. -- Twin County Grocers here and Key Food Stores Cooperative, Brooklyn, N.Y., are reportedly engaged in merger talks, observers told SN last week.
A merger between the two could add as much as $550 million to Twin County's sales base and more than make up for the possible loss of volume that would result in about a year if Mayfair Super Markets, Elizabeth, N.J., leaves Twin County, as most industry observers anticipate. Mayfair was acquired this summer by Netherlands-based Ahold and became part of Ahold's Edwards Super Food Stores division, which is supplied by C&S Wholesale Grocers, Brattleboro, Vt. Mayfair's store volume of $600 million includes about $350 million in wholesale volume pulled from Twin County -- about $200 million less than Key Food's volume, which is all wholesale, observers said. Officials at Key Food and Twin County could not be reached for comment. However, sources told SN the two companies have been talking for more than a year and may be very close to finalizing a merger agreement. Key Food services nearly 140 supermarkets in New York and New Jersey from a 500,000-square-foot distribution center in Brooklyn. Twin County, also a cooperative, services about 150 stores operating under the Foodtown name in New York and New Jersey out of facilities here and in West Nyack, N.Y. Its volume is about $1.1 billion.