Albertsons Companies, Inc. (ACI): PESTLE Analysis [Nov-2025 Updated]

You need to know exactly where Albertsons Companies, Inc. (ACI) stands in late 2025, and defintely the entire picture boils down to one monumental variable: the pending Kroger merger. This isn't just a simple deal; it's a Political battle, an Economic shift, and a Legal minefield that defines ACI's near-term strategy, whether the transaction closes or fails. We've cut through the noise to map the six critical macro-factors-Political, Economic, Sociological, Technological, Legal, and Environmental (PESTLE)-so you can quickly translate market pressures into actionable investment or strategic decisions right now.

Albertsons Companies, Inc. (ACI) - PESTLE Analysis: Political factors

Federal Trade Commission (FTC) Scrutiny and the Failed Merger

The primary political and regulatory event for Albertsons Companies, Inc. (ACI) in 2025 is the fallout from the failed acquisition by Kroger Co. The Federal Trade Commission (FTC) successfully sued to block the proposed $24.6 billion merger, alleging it would harm competition for both consumers and grocery workers. The FTC's administrative case was closed as of January 2, 2025, following the merger's termination. This successful antitrust challenge by the FTC signals a significantly more aggressive political and regulatory environment for large-scale corporate mergers, especially in essential sectors like food retail. You have to assume the bar for future consolidation is now much higher.

The political risk has now shifted from regulatory approval to litigation risk. Albertsons terminated the merger agreement in December 2024 after the courts blocked the deal and subsequently filed a lawsuit against Kroger for breach of contract, seeking the $600 million termination fee and billions in damages. Kroger filed counterclaims in March 2025, alleging Albertsons undermined the regulatory process. This ongoing, high-stakes legal battle in the Delaware Court of Chancery is the new political headwind, diverting executive focus and resources away from core operations, even as the company projects full-year 2025 Adjusted EBITDA between $3.8 billion and $3.9 billion.

State Attorney General Lawsuits and Post-Merger Litigation

The successful legal challenges brought by state Attorneys General (AGs) were a critical factor in the merger's demise, setting a precedent for state-level antitrust enforcement. The U.S. District Court for the District of Oregon and the King County Superior Court in Washington state granted the injunctions that ultimately halted the deal. The Washington Attorney General filed the first complaint in January 2024, followed by the Colorado Attorney General and a bipartisan coalition of eight states and the District of Columbia joining the FTC's federal complaint.

The political takeaway is that state-level antitrust action is a powerful, decentralized force.

• Key Antitrust Precedent: Courts relied on evidence of head-to-head competition between Kroger and Albertsons, affirming the viability of the 2023 Merger Guidelines.
• Litigation Cost: The post-merger litigation between the two companies is a direct cost of the political/regulatory environment, an unbudgeted expense that impacts the bottom line.
• Focus Shift: Management is now navigating a complex lawsuit while simultaneously driving a standalone strategy, aiming for identical sales growth between 2.2% and 2.75% for fiscal year 2025.

Increased Legislative Push for Higher Minimum Wages and Labor Protections

The political landscape continues to push for higher minimum wages and stricter labor protections, directly impacting Albertsons' operating costs, as labor is one of the largest operational expenses for grocery retailers. As of January 2025, 21 U.S. states implemented minimum wage increases, forcing grocery chains to adjust payroll systems and pricing strategies.

This legislative trend is not just a federal debate, but a state-by-state reality.

The company is actively trying to offset these rising wage rates through productivity initiatives, which helped reduce Selling and administrative expenses as a percentage of Net sales and other revenue by 50 basis points (excluding fuel) in the second quarter of fiscal 2025. Albertsons is also managing labor negotiations affecting approximately 120,000 associates, with nearly half under new agreements as of mid-2025. That's a huge collective bargaining risk.

Government Food Assistance Programs (SNAP, WIC)

Government food assistance programs, specifically the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Program for Women, Infants, and Children (WIC), are a critical political factor because they directly link federal policy to sales volume and consumer behavior. SNAP benefits were estimated to be on pace to redeem more than $100 billion in 2025 nationally before a temporary government funding halt caused disruption in late 2025.

While Albertsons has a lower penetration of SNAP-related sales compared to competitors like Walmart, the SNAP customer is still a vital segment for the company, often having a larger basket size. Kroger and Albertsons together account for nearly a third of national SNAP-related sales, illustrating the collective exposure to federal budget and program stability. The risk here is two-fold:

• Sales Volatility: Delays or disruptions in benefit distribution, as seen in late 2025, can cause immediate drops in store traffic and a shift in spending toward lower-priced goods.
• Policy Risk: Changes in federal or state eligibility rules for these programs could immediately impact the purchasing power of millions of customers, directly affecting Albertsons' identical sales growth, which was 2.8% in Q1 2025.

Albertsons Companies, Inc. (ACI) - PESTLE Analysis: Economic factors

Persistent food-at-home inflation, though slowing, still pressures consumer wallets and ACI's margins.

You're still seeing inflation hit your grocery bill, even if the rate has slowed from the 2022 peak. This persistent food-at-home inflation forces customers to look for value, which directly impacts Albertsons Companies' margins. For the 12 months ending September 2025, the Consumer Price Index (CPI) for food-at-home was up 2.7% year-over-year. The USDA Economic Research Service (ERS) forecasts a similar rise of 2.4% for the full year 2025.

This environment is a double-edged sword. It drives up ACI's procurement costs, but the company has largely managed to offset these headwinds through its productivity engine and strategic investments. Still, the gross margin rate decreased to 27.0% in the second quarter of fiscal 2025, down from 27.6% in the prior year, partly due to a mix shift toward lower-margin areas like pharmacy and higher digital delivery costs. That's a tight rope to walk.

Rising interest rates impact the cost of capital for store upgrades and managing existing debt load.

The higher-for-longer interest rate environment makes every dollar of debt more expensive, which is a real consideration for a capital-intensive business like Albertsons Companies. The company's net debt stood at approximately $7.03 billion as of February 2025. This debt level is manageable, sitting at a reasonable 1.9 times its Adjusted EBITDA.

To manage this, ACI is actively refinancing. In October 2025, the company announced a plan to issue $1.25 billion in new senior unsecured notes, a move designed to lower its overall interest expense and extend maturity dates. For the first two quarters of fiscal 2025, the company's net interest expense was:

• First Quarter Fiscal 2025: $141.8 million
• Second Quarter Fiscal 2025: $105.3 million

The rising cost of capital also raises the hurdle rate for capital expenditures (CapEx). ACI's planned CapEx for fiscal 2025 is in the range of $1.8 billion to $1.9 billion, which is a significant investment in store remodels and digital capabilities that must now clear a higher financing bar.

Consumer shift to high-margin private label brands (e.g., O Organics) continues to support gross profit.

When customer wallets are squeezed, they trade down from national brands to private label (or 'Own Brands'), and ACI is capitalizing on this trend. This shift is a huge margin boost because private label products generally carry a higher gross profit rate than national brands. Albertsons Companies' total Own Brands portfolio is valued at over $16.5 billion.

The penetration rate of these Own Brands reached 25.7% of sales in the first fiscal quarter of 2025. Management is aggressively pushing to increase this penetration to 30% over time. The O Organics brand, a key high-margin line, has already reached $1 billion in annual sales. The company is smart to lean into this.

Labor costs are rising, driven by a tight job market and recent collective bargaining agreements.

The tight US labor market, combined with the power of unionized workforces, is putting upward pressure on Albertsons Companies' Selling and Administrative (S&A) expenses. This is defintely the biggest near-term margin risk. ACI is negotiating contracts covering approximately 120,000 associates in fiscal 2025 alone.

Recent collective bargaining agreements illustrate the scale of the cost increases:

• California Agreement (July 2025): A tentative agreement was reached with three major union locals, securing meaningful wage and benefit increases for over 25,000 Safeway, Vons, and Albertsons workers.
• Teamsters Local 952 Contract (September 2025): Over 1,600 workers ratified a new five-year contract that includes an immediate $4 per hour wage increase, with total raises of $10 over the life of the contract, plus a $2 increase in pension contributions.

These agreements are critical for operational stability, but they represent a structural increase in the cost base that ACI must offset with productivity gains and digital growth to maintain its Adjusted EBITDA forecast of $3.8 billion to $3.9 billion for fiscal 2025.

Albertsons Companies, Inc. (ACI) - PESTLE Analysis: Social factors

Growing consumer demand for organic, health-focused, and locally sourced food items.

You need to see the shift from simply filling the pantry to curating a healthier lifestyle. This isn't a niche trend anymore; it's a core expectation that drives basket size. The United States organic food market is projected to be valued at approximately $95.4 billion in 2025, with a compound annual growth rate (CAGR) expected to be in the 7.2% to 10.35% range over the next few years. That is a massive opportunity that Albertsons Companies, Inc. must capture with its own brands, like O Organics and Open Nature.

The consumer focus is shifting from just weight loss to overall wellness. For instance, 58.3% of grocery shoppers now prioritize products that offer better overall wellbeing and energy. Plus, the demand for local is intense: over 75% of consumers prefer locally grown products when price and appearance are equal, and 25% are willing to pay a premium of 6% to 15% for it. This means you need a strong, transparent local sourcing strategy, not just a big organic section.

• Health Focus: Consumers under 35 show a significantly higher intent to buy organic food (36.3%).
• Local Premium: 42% of shoppers aged 50-64 prioritize local foods, showing it is a cross-generational trend.
• Action: Expand local vendor partnerships and clearly label in-store and online to capitalize on the price premium.

Increased focus on convenience drives demand for prepared meals and rapid e-commerce fulfillment.

The modern shopper is time-poor, which makes convenience a non-negotiable factor. This is why you see explosive growth in both digital and ready-to-eat (RTE) options. The US online grocery market is valued at approximately $203.0 billion in 2025, and Albertsons is actively participating, having reported a surge in digital sales of 23% in the second quarter of fiscal 2025. That's a good return on your digital investments.

The demand for quick, high-quality meals is fueling the US ready-to-eat meals market, which is projected to grow from $21.66 billion in 2025. This segment is not just about frozen dinners; it includes fresh, store-made prepared foods and meal kits. Albertsons' strategy must integrate these two trends: seamless e-commerce ordering with rapid fulfillment (delivery or pickup) for both raw groceries and prepared meals. The total U.S. online grocery sales reached a new peak of $12.5 billion in September 2025, a 31% growth year-over-year, showing just how fast the market is moving. You need to keep accelerating that digital investment.

Demographic shifts, especially an aging US population, require adjustments to store format and product mix.

The US population is defintely getting older, and this demographic shift requires a different retail approach. By 2030, all Baby Boomers will be at least 65, and their shopping habits are distinct. They tend to make fewer trips to the grocery store, which means maximizing the basket size on each visit is critical. A single-person household, common among older adults, spends about 16% less per year than a two-person household, so smaller package sizes and tailored promotions are key.

Albertsons needs to adjust store formats to improve accessibility and service. Older shoppers place a high value on ease of parking and excellent customer service at the tills. Product-wise, their preferences lean heavily toward health. About 50% of shoppers over 65 buy foods high in fiber, lower in saturated fats, and lower in salt, compared to only 30% to 40% of those under 35. This demographic wants health-focused products but values in-person service and convenience, not just digital speed.

Public perception of the merger's impact on local jobs and communities affects customer loyalty.

The social factor of public perception is currently dominated by the fallout from the failed merger with Kroger. The proposed $24.6 billion deal was halted by regulatory intervention in December 2024, but the negative public sentiment surrounding potential job losses and store closures remains a brand liability. You can't ignore it.

The public was concerned the merger would reduce competition and hurt local communities, which is a direct threat to customer loyalty in an industry where local connection matters. Now, Albertsons is proceeding with internal restructuring to find the synergies the merger was supposed to deliver. In early 2025, the company announced layoffs of nearly 400 corporate employees at its Safeway subsidiary and began merging divisions, such as combining the Intermountain and Denver Divisions. This internal cost-cutting, while necessary to achieve the fiscal 2025 Adjusted EBITDA target of $3.8 billion to $3.9 billion, is being watched closely. The narrative of job cuts after a failed merger can easily erode community trust, so transparency is paramount.

Albertsons Companies, Inc. (ACI) - PESTLE Analysis: Technological factors

You are seeing Albertsons Companies, Inc. (ACI) make a massive push on technology because they have to. The grocery business is a low-margin game, and digital is the only way to drive the efficiency and personalization needed to compete with giants like Walmart and Amazon. The company's fiscal 2025 strategy is clear: invest heavily in digital platforms and automation to unlock $1.5 billion in cost savings over the next three years (FY2025-FY2027), while simultaneously growing their high-margin digital channels.

Continued investment in e-commerce platforms and last-mile delivery to compete with major rivals.

Albertsons is treating its digital ecosystem as a core growth engine, and the numbers from the first half of fiscal 2025 show this is paying off. Digital sales surged 25% year-over-year in Q1 2025 and 23% in Q2 2025, significantly outpacing the overall identical sales growth of 2.8% and 2.2%, respectively. E-commerce penetration is rising, now accounting for approximately 9% of total grocery revenue in Q1 2025. The company is focused on making the e-commerce operation profitable, reporting that the business is already 'near breakeven and improving.'

The total planned capital expenditures for fiscal 2025 are substantial, ranging from $1.8 billion to $1.9 billion, with a significant portion dedicated to digital and technology platforms. This investment isn't just for consumer shopping; Albertsons also launched a B2B e-commerce platform in 2025, extending online ordering capabilities to businesses across more than 2,000 store locations.

Expansion of micro-fulfillment centers (MFCs) and automation to lower online order fulfillment costs.

To reduce the high cost of online order fulfillment, Albertsons is accelerating automation across its supply chain. The goal is to have 30% of its distribution volume automated by the end of 2025. This is a critical move to improve margins, especially for their e-commerce business which is currently near breakeven.

The company is focusing on two key areas for automation:

• Distribution Centers: Automation is already complete in three of their 22 dedicated distribution centers, with more rollouts planned for early 2025.
• Micro-Fulfillment Centers (MFCs): Albertsons continues to advance its strategy with Takeoff Technologies, embedding automated, small-scale fulfillment centers within existing stores. These centers typically hold 15,000-18,000 of the most popular items, speeding up order processing and freeing up store staff.

This automation strategy, alongside other productivity initiatives, is designed to systematically drive efficiencies and is the backbone of the planned $1.5 billion in cost reductions.

Use of AI for dynamic pricing, inventory management, and personalized marketing campaigns.

Albertsons is defintely doubling down on Artificial Intelligence (AI) to drive smarter, more personalized customer interactions and more efficient operations. This is where the company turns its massive customer data-from a loyalty program that hit 48.7 million members in Q2 2025-into a competitive weapon.

Key AI applications in 2025 include:

• Inventory & Waste Reduction: In October 2025, Albertsons completed the rollout of an expanded partnership with Afresh, deploying their AI-powered fresh replenishment solution across all store banners. This technology uses data modeling to align ordering, inventory, and demand for thousands of perishable items (like produce and deli) to reduce spoilage and ensure better in-stock conditions.
• Personalized Marketing: The Albertsons Media Collective (AMC) is leveraging AI to monetize customer data through targeted advertising, including the launch of a digital in-store display network in June 2025.
• Customer Experience: The company partnered with Google Cloud to launch an Ask AI tool in its mobile apps in September 2025. This conversational commerce agent uses AI to help customers with open-ended questions like meal planning, product comparisons, and personalized recommendations, simplifying the shopping journey.
• Dynamic Pricing: AI tools are being used by merchants to fine-tune pricing and promotional strategies in real-time, allowing for hyperlocal adjustments to remain competitive and improve margins.

Defintely increasing cybersecurity risks with the expansion of digital services and customer data.

The rapid expansion of digital services-from the mobile app with 13+ million active monthly visitors to the massive 48.7 million loyalty member database-creates a larger and more attractive target for cyber threats. While Albertsons has not confirmed a material security incident in 2025, the risk is tangible and high.

For example, in early October 2025, a threat actor group claimed to have exfiltrated a large dataset from Albertsons' Salesforce environment, which reportedly contained over 179,200 unique phone numbers and 141,800 unique email addresses, though the company did not confirm the incident. This incident highlights the immediate and persistent risk of third-party vendor compromise and the need for continuous vigilance.

Albertsons addresses this through a comprehensive risk management strategy, including 24/7 monitoring of its network, systems, and distribution centers, and partnering with multiple third-party managed security service providers (MSSP) for enhanced detection and investigation. The risk is that a single, large-scale breach could severely damage customer trust and incur significant financial and legal penalties, eroding the margin gains from their digital growth.

Albertsons Companies, Inc. (ACI) - PESTLE Analysis: Legal factors

Antitrust litigation from the FTC and state AGs is the main legal obstacle to the Kroger transaction.

The proposed $24.6 billion acquisition of Albertsons Companies, Inc. by Kroger was decisively blocked by antitrust litigation, making this the single most significant legal factor for the company in 2025. The Federal Trade Commission (FTC), along with Attorneys General (AGs) from states like Washington and Colorado, successfully argued that the merger would substantially lessen competition, leading to higher prices for consumers and lower wages for workers. A federal judge temporarily blocked the deal in December 2024, and the FTC formally closed its administrative case on January 2, 2025, effectively ending the proposed transaction.

Following the unfavorable rulings, Albertsons Companies, Inc. moved to terminate the merger agreement and filed a lawsuit against Kroger, alleging breach of contract and breach of the covenant of good faith and fair dealing. This shift means the immediate legal risk has moved from defending the merger to managing the fallout and potential litigation against the former suitor. It was a massive, high-stakes legal battle that took over two years.

Here's the quick math on the antitrust impact:

• The proposed merger value was $24.6 billion.
• The FTC and state AGs successfully argued the deal was presumptively unlawful under the 2023 Merger Guidelines.
• The District of Oregon affirmed the viability of the FTC's novel labor market theory, leaving this open for future enforcement actions against the grocery industry.

Compliance with evolving state data privacy regulations (e.g., CCPA) is a continuous operational challenge.

Navigating the patchwork of state-level data privacy laws, particularly the California Consumer Privacy Act (CCPA), as amended by the California Privacy Rights Act (CPRA), remains a complex and costly compliance issue. The financial threshold for CCPA applicability was adjusted for inflation in 2025, now applying to businesses with annual gross revenue exceeding $26,625,000, a figure Albertsons Companies, Inc. easily surpasses.

New regulations approved by the California Privacy Protection Agency (CPPA) in July 2025, though with staggered implementation, require significant internal process changes, especially around automated decision-making technology (ADMT) and risk assessments. Albertsons Companies, Inc. must now embed proactive privacy risk management into its core data processing activities.

The volume of consumer requests under the CCPA is substantial, demanding dedicated resources. For example, in 2024, Albertsons Companies, Inc. received 4,414 requests to opt-out of the sale/share of personal data, completing 4,407 of them with a mean response time of only 4 days, according to their public metrics. Furthermore, a separate legal risk materialized in a class action settlement related to the Telephone Consumer Protection Act (TCPA) for sending marketing text messages after consumers requested to stop, with the final approval hearing scheduled for October 3, 2025.

Ongoing risk of labor disputes and wage-and-hour claims, particularly post-merger.

The legal environment for labor remains volatile, fueled by high inflation and union activity. Albertsons Companies, Inc. faces continuous risk from organized labor and individual wage-and-hour lawsuits. In June 2025, union employees at Albertsons Companies, Inc. and Safeway stores in Colorado, affiliated with United Food and Commercial Workers (UFCW) Local 7, announced plans for a walkout after rejecting a contract offer that failed to meet key demands for staffing and livable wages.

The threat of a large-scale strike is real; in Southern California, union members representing 45,000 grocery store workers at Albertsons Companies, Inc. banners like Vons and Pavilions also overwhelmingly voted to authorize a strike earlier in 2025. This constant negotiation and strike authorization process creates legal and operational uncertainty. On the individual litigation front, a proposed class action for California employees alleging wage and hour violations-including denied meal and rest breaks and unpaid wages-was dismissed in April 2025, but the court's ruling was based on the lack of unified claims for class treatment, not the merit of the underlying allegations.

Food safety and labeling regulations require constant monitoring across a vast and complex supply chain.

The regulatory burden for food safety is increasing, driven by the FDA's Food Safety Modernization Act (FSMA). Albertsons Companies, Inc. is mandating aggressive compliance with the Final Food Traceability Rule (FSMA 204) across its entire supply chain. This is a critical legal and operational deadline in 2025.

The company requires all food and non-alcoholic beverage suppliers to transmit specific electronic data elements by June 30, 2025. This goes beyond the FDA's minimum requirements, as Albertsons Companies, Inc. is requiring this for all food products, not just those on the Food Traceability List (FTL). Failure to comply with these internal mandates jeopardizes supplier relationships and, more critically, increases the company's legal exposure in the event of a foodborne illness outbreak or recall. The complexity is immense, covering over 2,300 stores, 30 distribution facilities, and 21 manufacturing plants.

Albertsons Companies, Inc. (ACI) - PESTLE Analysis: Environmental factors

Growing stakeholder pressure to reduce Scope 1 and 2 greenhouse gas emissions from fleet and facilities.

You are seeing significant pressure from investors and regulators to decarbonize your core operations, which means tackling the energy use in your stores and distribution centers. Albertsons Companies has an ambitious, Science Based Targets initiative (SBTi) approved goal to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 47% by 2030, using a 2019 baseline. This is a crucial, near-term metric for stakeholders.

For the most recent reported period (2023), the company's total reported Scope 1 and 2 emissions were approximately 4,004,364,000 kg CO2e. The breakdown shows that Scope 1 emissions, which include refrigerants and fleet fuel, accounted for 2,651,176,000 kg CO2e, while Scope 2 emissions from purchased electricity were 1,353,188,000 kg CO2e (market-based). To be fair, refrigeration and energy use account for about 86% of your Scope 1 and 2 emissions, so the strategy is clear: invest in energy efficiency projects like LED lighting and doors on refrigerated cases. The long-term commitment is to achieve Net Zero emissions in company operations by 2040.

Here is the quick math on your 2023 emissions profile:

Waste reduction and sustainable packaging goals are key focus areas for investor and consumer appeal.

Waste and packaging targets are a very visible area for consumers, and you are right at a major deadline in 2025. Albertsons Companies' commitment for the current fiscal year (2025) is to ensure that 100% of its Own Brands product packaging is recyclable, reusable, or industrially compostable. Plus, the goal for Own Brands plastic packaging is to incorporate 20% recycled content by the end of 2025. Hitting these targets is defintely critical for brand perception and avoiding accusations of greenwashing.

Beyond packaging, the operational goal is to achieve Zero food waste going to landfill by 2030, which is aligned with the UN's Sustainable Development Goal 12.3. This is a huge financial opportunity, too, as reducing food waste cuts disposal costs and potentially increases product availability. The company has also set a goal to reduce downstream Scope 3 emissions-those from the use of sold goods-by 27.5% by 2030, and is working with top suppliers, aiming for 63% of suppliers to have science-based targets by 2026.

Water usage and sourcing practices are under scrutiny, especially in drought-prone western operating regions.

Water stewardship is a silent but growing risk, especially since a significant portion of Albertsons' operations are in the drought-prone Western and Southwestern U.S. While the company has not publicly released a specific 2025 water reduction percentage goal, the focus is on two areas: supply chain and facility efficiency. Water is a major risk for your agricultural supply chain, which is why the company is investing in technology to enable water reduction savings from farm to retail.

For your direct operations, the primary water usage is in facilities and manufacturing. The company's strategy includes implementing water-efficient technologies and monitoring usage in high-risk areas. What this estimate hides is the massive, unquantified risk of water scarcity on commodity prices, which is a much larger issue than in-store water use.

Climate change impacts on agricultural supply chains introduce volatility in commodity prices and availability.

This is where the rubber meets the road for your bottom line. Climate change is not a future problem; it's a 2025 cost driver. Extreme weather events directly translate into supply chain disruptions and commodity price volatility, impacting your cost of goods sold (COGS).

For example, the ongoing drought conditions in the Western U.S., a key sourcing region, have continued to pressure prices for fresh produce. In late 2024 and into 2025, you saw significant price spikes and availability issues in key categories:

• Lettuce/Leafy Greens: Drought and heatwaves in California and Arizona led to a price increase of over 15% in Q4 2024, continuing into Q1 2025.
• Coffee: Global supply shocks, exacerbated by changing weather patterns in key growing regions like Brazil and Vietnam, pushed Arabica coffee futures prices up by more than 20% in the first half of 2025.
• Dairy: Increased feed costs due to drought-impacted corn and soy harvests in the Midwest contributed to a projected 5-8% increase in wholesale dairy costs in 2025.

This volatility forces a strategic shift toward more resilient sourcing, including controlled environment agriculture (CEA) and greater geographic diversification. You're already expanding the availability of packaged salads grown using vertical farming across more operating divisions, which is a smart move to de-risk the fresh produce supply.

Next Step: Finance: Model two distinct 2026 scenarios-Merger Closed vs. Merger Failed-to quantify the delta in capital expenditure and debt profile by the end of Q1 2026.