Beat Inflation By Owning The Grocery Store

Dividends Forever
4 min readDec 19, 2022

It’s no secret that food prices are soaring. And inflation is a major worry for many people around the world.

In today’s article, I want to highlight an unlikely inflation-beater that’s so obvious and boring most people overlook it. Yet, this wide-moat business has consistently outperformed the S&P 500. And, it’s rewarded shareholders with a steady stream of double-digit dividend increases.

What is this mystery business?

The Kroger Company ($KR).

Here’s what makes Kroger a unique market-beating investment, and why it should continue outperforming the S&P 500 well into the future…

What Is The Kroger Company?

Kroger is the largest U.S. supermarket chain and America’s fifth-largest retailer.

The company operates almost 3,000 grocery stores. And, it is currently in the process of acquiring Albertsons, a rival grocer, which will add an additional 2,250 stores to Kroger’s portfolio.

Buying a supermarket chain might sound boring.

But there’s actually a lot going on with Kroger that makes this company an exciting investment.

For starters, there’s a good chance you shop at Kroger and don’t realize it.

Kroger owns many smaller, recognizable grocery brands. These include: Ralphs, Mariano’s, Fred Meyer, Food 4 Less, Pick ‘n Save, and Quality Food Centers.

On top of this, Kroger also operates several private label brands like their organic-focused Simple Truth.

This is worth mentioning, because store-owned private label brands offer supermarkets some of their highest profit margins. There’s an excellent book titled The Secret Life of Groceries that goes into more depth on this, but private labeling profits are the reason chains like Trader Joe’s have been so successful. And, they’re a big winner for Kroger, too.

Lastly, Kroger has both a personal finance and gas station division.

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