Kroger Expands Direct Sourcing From Growers
The grocer is bypassing intermediaries and buying straight from producers, starting with fruit from Peru and building hubs in South America and Asia.
Updated on Nov. 9, 2026 in Organic Food
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Kroger is ramping up direct sourcing by buying straight from producers instead of paying intermediaries. The company aims to source more than 10% of its goods directly, up from less than 1% today.
Why it matters
Buying directly gives Kroger more control and visibility over its supply, and removes a third-party margin that previously sat between the retailer and growers. The move could shape how grocery prices and produce supply are managed across the U.S. market.
Kroger currently sources less than 1% of its goods directly, with a target of more than 10%. About 40% of its fruit for the November 2026 season was sourced directly from growers in Peru, though the stub does not say how those volumes compare to prior seasons.
The players
Kroger
Kroger is one of the largest supermarket chains in the United States, operating grocery stores across much of the country.
Greg Foran
Greg Foran is the chief executive officer of Kroger, who first outlined the company's direct sourcing strategy to analysts.
The details
CEO Greg Foran first outlined the direct sourcing strategy to analysts in June, and it was discussed further at an Oct. 20 analyst and investor day. Kroger is building logistics, sourcing, workforce and payment capabilities to work closer with producers, starting with a grape grower in Peru and extending to citrus, shrimp and frozen vegetables.
Timeline
June: CEO Greg Foran first outlined the direct sourcing strategy to analysts.
Oct. 20: Analyst and investor day where direct sourcing was discussed.
November 2026: Season for which about 40% of fruit was sourced directly from Peru.
2027: Planned infrastructure expansion into Asia.
Market Landscape
Large U.S. grocers have long relied on intermediary brokers to source produce, which added a margin between retailers and growers. Kroger's push to buy directly from producers marks a departure from that model and could pressure competitors to rethink their own sourcing.
Shoppers may see changes in produce availability and pricing as Kroger shifts its sourcing, though the company says it is working closely with suppliers to maintain prices. The stub does not specify when any price effects would reach store shelves.
The takeaway
Direct sourcing gives retailers more control over cost and supply, and watching whether Kroger reaches its 10% target will show how far the model can scale. Shoppers should track produce pricing and availability as the strategy rolls out.
Further reading
For more on how supply choices shape what ends up on store shelves, see Organic Food.
Source note: This article includes information reported by Grocery Dive.
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