Good morning, everyone, and thanks for joining us today. Your first question was, as you look at the guidance for the fourth quarter and you back into the ID sales in the range of somewhere between of average 3% to 4.5%, why is it less than Q3 at 5.2%? When you guys think about Q4, within the ranges of guidance, I think you should think about it very much in context of Q3. While other CEOs were trying to figure out how to shift their teams to remote . But anything you can see early on that might enlighten us on what the trends might be? And so we were expecting a lot of that to come into the market. Yes. So I think as you look at it as a management team and enhancing shareholder value, how should we think about it, especially because you are sitting on a pretty big chunk of cash on the balance sheet and it's growing? Rodney McMullen, chairman and CEO of The Kroger Co., and Vivek Sankaran, CEO of Albertsons Cos., on Tuesday made their case to proceed with the planned $24.6 billion merger of their companies at a Senate Judiciary subcommittee hearing in Washington, D.C. McMullen and Sankaran were two of three retail chief executivesalso including Michael . In 2009, Sankaran founded the Detroit Center for Family Advocacy, the first organization in the country to provide multidisciplinary legal assistance to families to prevent the unnecessary entry of children into foster care. The oldest executive at Albertsons Companies, Inc. is Melissa C. Plaisance, 60, who is the SVP, Investor Relations, Treasury & Risk Management. How will the consumer react going forward? EMEA +44 20 7330 7500. Our next question comes from the line of Edward Kelly with Wells Fargo. Professor Vivek Sankaran, '01, advocates for the rights of children and parents involved in child welfare proceedings. Do you need to take extra steps in 2022 for your Own Brands to merchandise them more aggressively? So it's a substantial portion of the business. Year-to-date, we have launched 540 new products, including 143 in the third quarter and are on track to launch over 800 this year. Susan began her career in Albertsons Denver Division while still in high school and worked her way up in the ranks proving her ability to lead, to execute and to bring teams together in one assignment after another in her 30+ years in the retail grocery business. During the third quarter and year-to-date, we have generated significant free cash flow, driven by strong operating results and lower working capital. Okay. But clearly, the performance last year was strong. In addition, the retention rate of actively engaged members continues to be over 93%. Right. Vivek most recently served as CEO of PepsiCo Foods North America. We have started a full court press on the next generation of productivity initiatives that we'll be working on in 2020, starting in 2022 and moving those into 2023 and 2024, and that's shaping up very nicely. Sankaran provided the MFC update in a rundown of Albertsons' progress in its strategic priorities, which include the acceleration of its digital and omnichannel capabilities. Regarding debt reduction, during the quarter, we retired $330 million of outstanding notes, reducing annual interest expense by approximately $18 million. Vivek most recently served as CEO of PepsiCo Foods North America. Thank you for your participation. While we have made attempts to ensure that the information displayed are correct, Zippia is not responsible for any errors or omissions or for the results obtained from the use of this information. Presented "The Need For High-Quality Legal Representation in Child Welfare Cases" and "Litigating Termination of Parental Rights Cases" at the Oklahoma Children's Conference, Oklahoma City. Excluding the impact of fuel, our gross margin rate increased 10 basis points compared to Q3 2020, primarily due to productivity initiatives, improved pharmacy margins related to COVID-19 vaccine and favorable product mix, including in fresh, where sales outpaced center store by 500 basis points. I think we're going to get a lot more visibility to that. Okay. Or are you ahead of the curve as far as reacting to state, local, and minimum wages? A long-term sustainable performance creates value. Yes, I'd be happy to. And finally, during the quarter, we returned $56 million or $0.12 per share in cash dividends to our common shareholders, bringing our year-to-date total to $149 million. As you pointed out, we're making good progress now in Own Brands. Presented "Sparking a Revolution of Values: Changing the Narrative in Child Welfare Cases" at the Protecting Delaware's Children Conference, Child Protection Accountability Commission, Dover, Delaware. Co-facilitated the "Family Defense Appellate Workshop" for Michigan's State Court Administrative Office, University of Michigan Law School, Ann Arbor. Every lawyer has the power to transform the toxicity in the legal profession. And the way we do that is to make sure that we are judicious about the categories where we pass it through. "It used to be typically 1.5%, so it's a little bit higher. Executive Summary. But obviously, you're just having a blowout year this year. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. We are carrying more cash than we carried in the past. Karen, we are not going to give an outlook for 2022 today. In November, we announced the launch of the Albertsons Media Collective, a retail media network that will offer business partners a digital marketing platform and omnichannel solutions to reach our extensive customer network. Mr. Sankaran received an undergraduate degree from Indian Institute of Technology Madras, a graduate degree from Georgia Institute of Technology and an MBA from Stephen M. Ross School of Business. Prior to that, he served as the company's president and chief operating officer, a position he was named to in 2016. Okay. And we act as one entity, and that program is going really well, both from a monetary standpoint, but also from an organizational and culture standpoint. We have not quantified the amount of revenue coming from the COVID-19 vaccine, and we won't be quantifying that, of course. Sankaran gets a three-year contract, with base pay of $1.5 million per year, plus a $10 million sign-on retention award, and a bonus structure. And so we are hoping that part of 2022, as supply comes back, we'll also see growth in some of the categories, especially ones that are more expandable consumption. 03:07. madcap@cnbc.com. Okay. One is I was hoping to get a little more clarity on what you were saying about gross margin in fourth quarter, Vivek. It could go a little bit higher, but again, we have a strong consumer," Sankaran said, adding that the grocery chain has plans in the event it needs to absorb higher costs. And then what is baked into your 4Q guidance from the vaccine? We have more data. What is the salary of Mr Sankaran? How much is that starting to hurt you as you don't necessarily get full truckloads or no truckloads as maybe some of your labor isn't quite as available? In Own Brands, the introduction of new products as well as the rollout into Albertsons' legacy divisions continues to drive strong growth and improved margins. And Vivek, I'll just turn to you to take the Own Brands. And where is the biggest opportunity in '22 among your cohorts? Yes, I will take those. So there are more supply challenges, and we would expect more supply challenges over the next four to six weeks. The company's food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. In 2022, my expectation is that what we were not able to receive it this year because of constraints. And then can you talk about the dynamic that's changing? I was just wondering if you could share any learnings there from November. As the CEO & Director of Albertsons Companies, the total compensation of Mr Sankaran at Albertsons Companies is 8,483,335. Ladies and gentlemen, this concludes our time allowed for questions. In addition, we've got programs like the meals program that we'll roll out in 2022 more broadly across our network. Many of them, if you think about what happened through 2020 and '21, were building up capacity. Now what we don't know is if inflation continues to go up, does that behavior change as we go through the calendar 2022? Two quick questions. My follow-up is on a separate topic, just the labor inflation. That's the principle with which we've done this business. We expect adjusted EBITDA dollars in the range of $4.25 billion to $4.3 billion compared to previous guidance of $3.95 billion to $4.05 billion and adjusted EPS in the range of $2.90 to $2.95 per share compared to previous guidance of $2.50 to $2.60 per share. So, when we think about pass-through, we also have to be very focused on the competitive environment. Vivek Sankaran . Sharon will then go into the financial details of our third quarter as well as updated full year 2021 outlook, before handing it back over to Vivek for some closing remarks. Sankaran will also be paid up to $75,000 for relocation expenses incurred in connection with his relocation of his residence to the Boise, Idaho area., [Just months after Albertsons rolled out Plated kits locally, theyre gone. We also, Simeon, are competing with a very broad set of competitors every day in the market where we compete. Here is what I believe will be dramatically different as the world goes back into promotions in the future, and I don't know when that is. Sankaran will start his new job April 25th, according to the SEC filing. I believe that we need to continue to execute, gain market share, drive the business, deliver on our productivity initiatives. A clinical professor of law at the University of Michigan Law School, Sankaran directs both the Child Advocacy Law Clinic and the Child Welfare Appellate Clinic, through which law students represent children and parents in trial and appellate proceedings. Given our outperformance in Q3 and recent trends, we are raising our guidance for fiscal '21. Our next question comes from the line of Michael Montani with Evercore ISI. "Even today, we are selling so many flowers. As of February 26, 2022, it operated 2,276 stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci's Food Lovers Market; and 1,722 pharmacies, 1,317 in-store branded coffee shops, 402 adjacent fuel centers, 22 distribution centers, and 20 manufacturing facilities, as well as various digital platforms. Facilitated a panel discussion on "IVE Reimbursement for Parent and Children's Attorneys: A Prevention Tool to Support Families Through Legal Representation" at the National Council of Family and Juvenile Court Judges Conference, Orlando. Sankaran has written numerous articles focused on improving the child welfare system and has litigated cases before the Michigan Supreme Court. And during the third quarter, fresh ID sales outpaced center store by 500 basis points year-over-year and over 400 basis points versus two years ago. Her career has spanned roles from Store Director to Corporate Grocery Sales Director, Vice President of Bakery and Operations and, upon the sale of Albertsons Inc.s assets to SUPERVALU, Vice President of Customer Satisfaction. Okay. Sankaran explains consumer demand and supply chain issues . I think Sharon mentioned a little more inflationary cost pressure. Does the supermarket wages, because of unionization, does that lag where the overall market be? We continue to gain market share in units and dollars and did so in both food and MULO this quarter. Our next question comes from the line of Robby Ohmes with Bank of America. Albertsons Companies is the nations third-largest private company, with more than $60 billion in annual revenue. We don't pass through as much on the essential categories that customers need every day, and we try to balance that out. We are trying to be there. And is it you expect less vaccines? Please proceed with your question. Thank you. The debate we've all -- in the past, we had all said with this degree of supply constraint, there is untapped growth. Please proceed with your question. And we'll continue to look at it, Scott. Because first is, if you think about the lapse, the lapses were much more difficult in Q1 and Q2. Any time one of Boises big companies gets a new CEO, the first thing employees and community leaders think about is geography. So we just feel we've got a great foundation now to accelerate those things that are about relationship building and stickiness. First, I think the guidance implies around like a 2% ID for the fourth quarter. Forward-looking statements are based on our current expectations and assumptions and involve risks and uncertainties that could cause actual results or events to be materially different from those anticipated. Selling and administrative expenses as a percentage of sales were 25.4% in Q3 2021 versus 28% in Q3 2020 and 27% in Q2 2019. Our pharmacy team also continues to serve our communities within area of services, including the COVID and flu vaccines. I want to just start by following up on the inflation topic. In Drive Up & Go, we expanded our store count in Q3 and now cover 96% of our households with first-party pickup offerings. Our excellent locations near where people live provide us with a competitive advantage. Sankaran also told Cramer that some pandemic-era buying habits have persisted, even as the economy has been reopening from public-health restrictions. Presented "When Opportunity Knocks: Leveraging Title IV-E Funding to Advance Legal Representation for Children and Their Families" at the 42nd National Child Welfare Conference, Anaheim, California. And of course, it's hard to know what will happen with boosters going into 2022. So just to add two areas I wanted to hit on quickly. Hit him up! So when did that occur? So let's talk about out of stocks, right? This increase was primarily driven by the 5.2% increase in ID sales. It also manufactures and processes food products for sale in stores. And we were expecting that supply issues to get more resolved as we go into this period right now. This call is being recorded. And you're going to see the sector coming back that way, in my opinion, focusing on quality rather than quantity of promotions. [Operator Instructions] Our first question comes from the line of John Heinbockel with Guggenheim. Simeon, here's how I -- let me just provide some context on inflation. Pressed by Sen. Amy Klobuchar (D-Minnesota), chair of the subcommittee, on how Kroger and Albertsons would bring down prices . Filed 11/1/2021 6:30am. Just want to see if you wanted to quantify the benefit there on both ID sales and gross margin. Melissa Plaisance - Group Vice President, Treasury and IR. Rob, the first thing, our Own Brands penetration, if you look at it, is back to where it used to be pre-pandemic, which we like, right? Karen, we haven't given that, but there's a consideration that, I think, has to be put on the table when you're talking about SNAP, and it's something that we've learned in our analytics here, is that when you have a SNAP customer, when they have more SNAP, that means they spend less of their own money, but that doesn't mean necessarily in total that they will spend more. How broad-based is that? And you said you were running better than the 3% to 4%. So we -- this will also be a tailwind into 2022 in a substantial way. Thanks for reading! We haven't seen the consumer affected yet by that level of inflation," said Sankaran. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. That's helpful for Albertsons' financial performance, he said. Now Sankaran takes over for Donald. Omnichannel households increased by 4x versus Q3 '19, and sales retention remained strong. And my follow-up question is as we look towards 2022, I know you guys can't provide any specific guidance today, but is there any general thoughts on your ability to lap over this higher base next year? I've always called it margin tailwinds, whether it's mix management, shrink management, the COGS program that we started in late last -- December of last year -- I mean, December 2020, the supply chain initiatives. We still see a strong consumer. Asia Pacific +65 6212 1000. But on productivity, as Vivek mentioned in his comments, we're making great progress on the productivity initiatives that we announced. Fair enough. You may disconnect your lines at this time. So it's almost a mix shift in tender. What the company says, New long-haul bus service expands to Boise with partnership, BoiseDev partners with Big Brothers Big Sisters for community partnership, Hackers stole personal information of Albertsons employees in data breach, City to fine car dealer for removing trees, could require changes to landscaping, Analysis: IKEA is expanding. But where do you think your wallet share is even with your best customers? Mar 18, 2022. Sankaran will also be paid up to $75,000 for "relocation expenses incurred in . We've all learned to make sure that the stores are still very presentable, give the consumers as much choice as we can get. And so we still think that, that's the upside. In addition, he makes $8,483,335 as CEO & Director at Albertsons Companies. The great news for us is that, as Vivek mentioned earlier, the winning model, the work that we're doing on the consolidation of procurement is going extremely well. Participated in the panel discussion, "Presumed Guilty: Parents of Color in the Child Welfare System," at the 38th Annual Sparer Symposium, University of Pennsylvania Law School, Philadelphia. And finally, we are navigating challenges like inflation, product supply and labor shortages with agility and creativity. Albertsons CEO discusses higher inflation and strength of U.S. consumer. But if the consumer remains strong, we just -- because they're eating more at home, we think they'll continue to engage with us. Can you give us some color around volume and price? All participants will be in listen-only mode until the Q&A session. Presented "Legal Advocacy as a Prevention Strategy" at the Children's Bureau's Community Collaboration to Strengthen and Preserve Families Annual Grantee Meeting, Washington, D.C. He is a National Edward R. Murrow Award winner and a Stanford University John S. Knight Fellow. It was just a tad higher than that. watch now. Will the company go to him? But buried deep in a filing Friday with the Securities & Exchange Commission, its clear the reconstituted Albertsons will bring new CEO Vivek Sankaran to Boise. 65% of the management team is White. In Q3 '21, ID sales increased 5.2% and 17.5% on a two-year stack. Also during the quarter, we continued to see the benefits from our digital and omnichannel investments, including the ongoing expansion of Drive Up & Go and the opening of our first Midwest micro fulfillment center. Yes. We are also continuing to install energy efficiency and refrigeration upgrades and have installed these in over 700 stores through Q3 '21. That's how we have thought about it. We're not giving guidance on 2022. So look at us to accelerate the foundation that we've built across many different fronts over the last few years. DC? AdvertiseAbout BoiseDevContact: [emailprotected], 2023, Day365 - an Idaho-owned company. We are being thoughtful about the balance of the quarter at this point in time. Prior to that, he served as the company's president and chief operating officer, a position he was named to in 2016. December has also had Omicron. watch now. And what your expectations are for your management team? Gross margin rate was 28.9% in Q3 2021 compared to 29.3% in Q3 2020 and 28.3% in Q3 2019. I currently serve as CEO of Albertsons Companies, one of the largest food and drug retailers in the U.S. For over 13 years, I have been immersed in the food and grocery space, leading . And I want to point out that when we engage with customers in this way, it deepens their engagement with the brand. These decreases were partially offset by higher employee costs, depreciation and other expenses related to the acceleration of our digital and omnichannel capabilities and other strategic priorities. Call Cramer: 1-800-743-CNBC, Want to take a deep dive into Cramer's world? Remember that think of our business in two ways. So -- and then if you grow the top line and you do that, those two things I just talked about by definition, you're getting leverage in the business. You have the steel in the ground, but you now have call-offs on labor. First, our stores continue to be the foundation of our business and now allow us to serve our customers, both in-store and online. Federal Reserve officials believe price pressures will normalize as the Covid economic recovery progresses, although Chairman Jerome Powell acknowledged earlier Wednesday that "inflation could turn out to be higher and more persistent than we expect. Stack payments are coming down. Can you just give us a sense or just paint the picture. So participating in this program is socially the right thing to do, but it has also been very beneficial to the overall business. Americas +1 212 318 2000. Thank you. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. Mike's focus at Catapult is creating and executing a world-class operating platform to best serve our clients and patients. Over his ten-year career at PepsiCo, in addition to leading Frito-Lay, Vivek also served as the chief commercial officer for PepsiCo North America, Chief Customer Officer of Frito-Lay, and as the Senior Vice President of Strategy for PepsiCo. So, the first one is around the equity action. This concludes today's conference. Our next question comes from the line of Robert Moskow with Credit Suisse. Statement of Vivek Sankaran, Chief Executive Officer, Albertsons Companies, Inc. Before the U.S. Senate Judiciary Committee Subcommittee on Competition Policy, Antitrust, and Consumer Rights November 29, 2022 Chairwoman Klobuchar, Ranking Member Lee, and Members of the Subcommittee, my name is Just two quick follow-ups. Acceleration of digital and omnichannel is a top priority, investments in the digital support for our loyalty programs. And we believe that still. Vivek Sankaran Net Worth - Albertsons CEO Salary As of 2022, Vivek Sankaran's net worth is anticipated to be in the bracket of 25-30 million USD. Indian American Vivek Sankaran has joined Albertsons Companies, the largest food and drug retail chain in the United States, as its President and Chief Executive Officer. Energetic executive with 20+ years of experience successfully leading and scaling strategic business units for Fortune 100 companies. A Division of NBCUniversal. Manage Products and Account Information. Our next question comes from the line of Simeon Gutman with Morgan Stanley. But specific to SNAP, are you seeing -- clearly, you've seen reductions in SNAP penetration already start I would assume. One was just from a food inflation perspective, if we see kind of food at home roughly 5% to 6% in the quarter, is that kind of the way to think about that? To enable the delivery of 37 million healthy breakfast to those in need, we collected $9 million, thanks to the generosity of our customers and the Thanksgiving and other 100,000 meals were provided to those in need with the help of one of our third-party delivery partners. And Robby, if I can address the supply chain question. So are you saying that gross margins can remain steady in fourth quarter? And then I wanted to ask, we're starting to see -- this is very anecdotal, but some out of stocks across a lot of different categories in supermarkets. So that's a shift relatively recently. Join here! Is that share gains from restaurants that have accelerated because of COVID or for any other reason? And we are working very, very hard where we have gained these customers to continue to keep them. This is Brandon Cheatham on for Paul. Just wanted to check in, Vivek, and still see that things are rational in your view, if that's still the case? In 2011, he was named Michigan's Parent Attorney of the Year. Sharon, you've talked about investment. Presented "In re Ferranti and its Aftermath" at the Family Division Referee Seminar sponsored by the Michigan Judicial Institute, Lansing, Michigan. You will likely be lapping some vaccine benefits depending on what happens with boosters, but -- so those would be your headwinds and then your productivity initiatives. In addition, we also are continuing to invest in our stores, completing 146 remodels and opening nine new stores through the end of the third quarter. First, the cost increases are real, right? So -- and we find that once they engage in our loyalty program, you see that. So it's going slightly faster to catch up with it over this year. I mean we have taken the gamut to engage with these customers. Our digital initiatives continue to drive engagement and growth, and we remain focused on elevating service quality, speed of delivery and the value of our loyalty offerings. We saw them in the third quarter. Albertsons operates grocery stores under multiple brands in more than 30 U.S. states and Washington D.C. Last week, the Labor Department reportedconsumer prices in May rose 5% from a year earlier, the highest reading for the consumer price index in nearly 13 years. And so -- and to me, there's been, one, a matter of getting stability in supply, and then we continue to introduce a whole bunch of new products. The company announced last year it would merge with Rite Aid, and that companys CEO John Standley would take the reins of the combined company. To this end, we have been automating production planning and simplifying tasks in our fresh departments, resulting in better quality, higher in stocks, and more time for customer interactions. Please disable your ad-blocker and refresh. We expect our tax rate to be in the range of 22.5% to 23.5% compared to a range of 23% to 24% previously. Based on our data team's research, Vivek Sankaran is the Albertsons's CEO. And that's the foundation, right, for creating value. Mike joined Slome Capital as a Managing Director to lead the firm's venture investments. Yes. And we are working very well with our vendors. So on the market share, you're right, we saw unit share going up and dollar share going up over MULO in Q3. Currently, Vivek Sankaran is President, Chief Executive Officer & Director at Albertsons Cos., Inc. and Chief Executive Officer of Safeway, Inc. Executive Summary. He was inducted into the CIO Hall of Fame in 2019. Got a confidential news tip? Sign up for free newsletters and get more CNBC delivered to your inbox. During the quarter, we continued to benefit from the retail and supply chain operations, merchandising and procurement initiatives that we have previously laid out. Please go ahead. But that said, we don't have supply issues that are constraining our business any differently than we did before, right? Based on our data team's research, Vivek Sankaran is the Albertsons's CEO. All Rights Reserved. And with that, I'll hand the call over to Vivek. Of this total $1,500,000 was received as a salary, $7,000,000 was received as a bonus, $0 was received in stock options, $0 was awarded as stock and $139,520 came from This year, as customers consume more meals at home, elevating our fresh offerings and introducing new technologies were a top priority. I will also say that we have made it a top priority this entire year on retention of customers, just for U, special promotions for all the new customers, learning them, finding what inspires them, digitally talking to them. And so, if you -- and we were just launching so many of our different initiatives. Supply will be always a little bit tricky, but we are feeling very good about where we're growing in Own Brands. In parallel to the rollout of our digital and omnichannel capabilities, we are also building a digital marketing platform that will allow our customers to engage with the food and brands they love. We'll also be investing in additional productivity initiatives. And so, Vivek, I kind of asked something similar last quarter. And so, I wish I could give you an indication, but nothing yet in the numbers for us. Now when it comes to unit volume, if you -- our unit volume -- unit share certainly has gone up.
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