Festival Foods Sold to Schnuck Markets A New Chapter in Grocery Retail

Festival Foods Sold to Schnuck Markets A New Chapter in Grocery Retail

In a major development for the grocery retail world in the Midwest, Skogen’s Festival Foods—one of Wisconsin’s largest locally-owned supermarket chains—has agreed to be acquired by Schnuck Markets, Inc., based in St. Louis, Missouri. The deal was officially announced today, and it marks the beginning of a new era for both companies as they come under a shared umbrella: the newly created 1939 Group, Inc. 

What the Deal Entails

• Schnuck Markets will purchase 100% of the shares of Skogen’s Festival Foods and Hometown Grocers, Inc. This includes shares held by current CEO Mark Skogen and those held through Festival Foods’ Employee Stock Ownership Plan (ESOP).
• The acquisition brings under one roof over 51 stores in Wisconsin—42 operating under the Festival Foods banner, and 9 under Hometown Grocers, which itself includes various local grocers such as Dave’s County Market, Don’s Quality Market, Super Ron’s Food Center, and others. 
• More than 8,000 associates (employees) will become part of this new combined organization. When merged with Schnuck Markets, the total workforce is projected to exceed 19,000. 

Corporate Structure & Operations After the Sale

• The acquisition will not lead to rebranding; Festival Foods and the stores under Hometown Grocers will retain their current names and branding. 
• Each company will continue to operate from its existing headquarters: Festival Foods in Wisconsin (Green Bay / Onalaska / De Pere), Schnucks in St. Louis. They will become “sister companies” under the 1939 Group.
• Todd Schnuck, chairman and CEO of Schnuck Markets, will become Chairman and CEO of the 1939 Group. 

Timing, Financials, & Other Details

• The deal is expected to close in October 2025, subject to customary approvals and regulatory review.
• Financial terms of the agreement have not been disclosed. 
• Festival Foods was founded in 1946 by Paul and Jane Skogen. Over the years, under Mark Skogen’s leadership, it expanded to become a major regional grocery chain known for high customer service standards and community involvement. 

Reactions & Significance

• From Festival Foods leadership: Mark Skogen expressed pride in the legacy his family began, stressing that treating customers like guests, supporting associates, and giving back to communities have always been at the heart of their mission. He sees the merger as a way to continue and expand this legacy. 
• From Schnuck Markets leadership: Todd Schnuck emphasized that the two companies share “strikingly similar core values” and that this union combines two family legacies to strengthen regional grocery retail in the Midwest.

This acquisition is one of the larger ones in the Midwest grocery sector in recent years, given the scale of Festival Foods and its strong regional brand. Observers suggest that the deal may allow for expanded supply chain efficiencies, improved purchasing power, and possibly wider community and charitable initiatives, as both companies have strong histories in those areas.

What This Means for Customers & Communities

For the communities served by Festival Foods and Hometown Grocers, many things are likely to stay the same:

• Store names, branding, and local operations are expected to remain intact. 
• Jobs are expected to transfer over under the new ownership. The transition aims to be seamless for employees.
• Community involvement and charitable support have been emphasized by both companies, and there is hope this will continue or even grow under the 1939 Group.

Open Questions & Things to Watch

• How will operations, especially supply chains and procurement, be integrated? Will Festival Foods sourcing remain local?
• Will there be changes in pricing, product mix, or store policies under the new shared ownership?
• How will competition respond in Wisconsin and other nearby states? Are local or regional grocery chains likely to see this as a competitive challenge?
• How quickly will the regulatory review process conclude, especially if there are concerns around market concentration or competitive fairness?

The acquisition of Festival Foods by Schnuck Markets via the 1939 Group marks a significant shift in the Midwest grocery landscape. It brings together two family-run chains with overlapping values under a new structure, aiming to preserve the local identities while leveraging economies of scale. For customers, employees, and communities in Wisconsin, the key will be in maintaining what made Festival Foods special, even as it joins a larger organization. Time will tell how this integration plays out—but for now, it’s a major win for regional grocers.