West Coast neighborhood grocers New Seasons Market and New Leaf Community Markets have entered into a definitive agreement to merge with Good Food Holdings. The agreement, which has been approved by New Seasons Market’s board of directors, is expected to close in January 2020.
New Seasons Market and New Leaf Community Markets will continue to operate independently as Certified B Corporations, with a commitment to the companies’ mission and values. Good Food Holdings says it is a natural fit for New Seasons Market and New Leaf Community Markets as it supports independent and regionally focused neighborhood grocers on the West Coast, including Bristol Farms, Metropolitan Market and Lazy Acres Natural Market.
“We are proud to join Good Food Holdings with a shared commitment to building community through good food,” said Forrest Hoffmaster, New Seasons Market and New Leaf Community Markets CEO. “This partnership with Good Food Holdings ensures our longevity as a community cornerstone—one that continues to nourish our neighbors and staff, inspire environmental stewardship and champion the local food economy, as we have done since 2000.”
Hoffmaster and the current local leadership team will continue to lead the organization. “We are thrilled to welcome New Seasons Market and New Leaf Community Markets to our family of brands,” said Matt Turnbull, managing director of Good Food Holdings. “We’ve long admired New Seasons and New Leaf as industry innovators, and look forward to partnering with their local leadership teams to deliver the best experience for customers, staff and the community.”
“We’re proud to have been a part of growing New Seasons Market and New Leaf Community Market into one of the nation’s most respected retailers,” said Stephen Babson, managing director of Endeavour Capital. “It was important to us that a new partner in the business understand the company’s ongoing commitment to its mission, values and broad engagement with employees, customers, vendors and communities. Good Food Holdings is the right partner to support and continue this legacy.”
Regional commitment and store footprint
Each Good Food Holdings grocer is deeply rooted in itslocal communities from Southern California to Seattle. As New Seasons Market and New Leaf Community Markets join the Good Food Holdings family, the strategy will be to continue growing each brand in and around its home market. By mid-2020, Metropolitan Market will be the exclusive Good Food Holdings brand serving the Seattle region. New Seasons Market will continue serving the broader Portland and southwest Washington metro area in Oregon, and New Leaf Community Markets will serve California’s Central Coast. Additionally Good Food Holdings’ Bristol Farms serves Southern California; and Lazy Acres Natural Market operates along the Southern California coast.
As a result, Metropolitan Market will acquire the Mercer Island, Washington, location and convert the store by mid-2020. The New Seasons Market Ballard, Washington, location will close by the end of the year, and New Seasons will not open a new location in the Central District of Seattle as originally planned.
Metropolitan Market has been in business in Seattle since 1971. “For nearly five decades, Metropolitan Market has proudly served as Seattle’s premier grocer and we look forward to partnering with the Mercer Island team and community to continue our food-forward approach,” said Ron Megahan, CEO of Metropolitan Market.
New Seasons Market will work closely with Seattle store staff to help them secure jobs with New Seasons in the greater Portland metro area, and Metropolitan Market in Seattle. For those who choose other opportunities, New Seasons Market will offer job search assistance, transition pay and extended health care benefits. New Seasons is working to support Seattle’s Central District community, and will donate to nonprofit partners in the neighborhood.
“We are extremely proud of our Ballard staff for their excellent service and unwavering support of the community,” said Hoffmaster, “and are thankful to the community partners that have been working with us in the Central District.”
Progressive grocer commitments
New Seasons Market and New Leaf Community Markets were the world’s first and second grocers, respectively, to earn B Corporation certifications. Under the agreement, New Seasons and New Leaf will remain committed to the rigorous B Corp standards and certification process, balancing purpose, people, the planet and prosperity. The neighborhood grocers say they will continue to support the regional food economy to help solve social and economic problems, and give 10 percent of after-tax profits to the local community. Additionally, Hoffmaster will serve on the Good Food Holdings board of directors; and a new mission advisory council chartered with ensuring continuity of the companies’ social and community benefit will provide guidance to the board of directors and company leadership.
PJ Solomon is acting as financial advisor to New Seasons Market and New Leaf Community Markets, and Citi is serving as financial advisor to Good Food Holdings.
