Ingles Markets has filed a definitive proxy statement with the Securities and Exchange Commission ahead of its April 30 annual meeting, urging shareholders to reject a director nominee affiliated with members of the Sackler family.
The Asheville, North Carolina-based grocer is recommending that shareholders vote for its two independent director candidates, Dwight Jacobs and Rebekah Lowe, and strongly opposing the election of Rory Held, who was nominated by Summer Road LLC, a family investment office controlled by David Sackler. The Sackler family ran Purdue Pharma, manufacturer of OxyContin, and paid billions of dollars in fines and settlements related to the opioid crisis.
“We strongly believe that allowing any Sackler representative to influence the company as a member of the board would be bad for Ingles, bad for shareholders, bad for associates, bad for customers and bad for the communities we serve,” the company stated in a letter to shareholders dated April 1.
Ingles contends that electing a Sackler representative to its board would undermine customer trust and potentially reduce sales, given the impact of the opioid crisis on communities in the six Southeastern states where Ingles operates. The company noted that its 112 pharmacies and 106 fuel stations drive significant customer traffic and revenue.
Evidence of Helene recovery seen
The letter highlighted the company’s improved first quarter fiscal 2026 results, which the board cited as evidence of its recovery from Hurricane Helene’s impacts:
- Net sales increased 6.6 percent to $1.37 billion;
- Same-store sales increased 6.2 percent;
- Gross profit expanded to 24.4 percent of net sales;
- Net income nearly doubled to $28.1 million; and
- EBITDA increased approximately 25.1 percent.
“On the heels of Hurricane Helene just 17 months ago, Ingles Markets has demonstrated the resilience, discipline and long-term focus that have been core to the company’s growth and success over its 60-year history,” the board stated.
The company also announced plans for $120 million to $160 million in capital investments over the next two fiscal years, including installing new technology, remodeling up to six stores, upgrading equipment, reopening three stores temporarily closed due to Hurricane Helene and opening a new store in late spring 2026.
Preferred board nominees offer ‘complementary’ expertise
Ingles’ two director nominees bring complementary expertise to the board. Jacobs is a former Duke Energy executive with supply chain, real estate and financial experience. Lowe is a former Wachovia Bank regional president with experience leading large customer-focused operations.
The company argued that based on communications from Held, Summer Road appears primarily focused on the company’s real estate rather than long-term value creation. “We do not believe this narrow and short-sighted financial playbook is the best path for delivering significant, enduring returns for Ingles’ shareholders,” the board stated.
Ingles operates 197 supermarkets in North Carolina, South Carolina, Georgia, Tennessee, Alabama and Virginia. Three of four stores temporarily closed due to Hurricane Helene damage remained closed as of late March but are expected to reopen in 2026 and 2027.