Kroger sells Vitacost to iHerb

Kroger continued to revamp its ecommerce operations with the sale this week of its Vitacost subsidiary to iHerb, a global supplier of vitamins, supplements and other health and wellness products.

Terms of the transaction, which closed on Jan. 8, were not disclosed. Cincinnati-based Kroger said the sale reflects the company’s ongoing focus on streamlining its operations and improving the customer experience through a review of its non-core assets.

Kroger continued to revamp its ecommerce operations with the sale this week of its Vitacost subsidiary to iHerb, a global supplier of vitamins, supplements and other health and wellness products.

Terms of the transaction, which closed on Jan. 8, were not disclosed. Cincinnati-based Kroger said the sale reflects the company’s ongoing focus on streamlining its operations and improving the customer experience through a review of its non-core assets.

“The sale of Vitacost is an important step in that process,” said Ron Sargent, chairman and CEO of Kroger.

The Vitacost divestment follows the announcement last year that Kroger would close 60 supermarkets in markets around the country over the coming months and its recent decision to scale back its partnership with automated warehouse operator Ocado.

Kroger said the sale would not impact its financial guidance for the year. In December, Kroger said it expected full-year identical-store sales to be between 2.8% and 3%, and operating profit to be between $4.8 billion and $4.9 billion.

Vitacost boosts iHerb’s U.S. presence
Irvine, Calif.-based iHerb Holdings said the acquisition of Vitacost would support its growth efforts in the U.S.

“Vitacost has a loyal customer base and deep assortment of products that aligns closely with our mission to make health and wellness accessible to all,” said Emun Zabihi, CEO of iHerb. “This acquisition immediately expands our scale in the U.S., strengthens our relationships with key brands and adds a largely incremental customer base to iHerb’s platform.”

iHerb said it currently has about 15 million customers in 180 countries and operates nine logistics centers across the U.S., Asia and the Middle East. Vitacost, meanwhile, offers delivery of nearly 40,000 items, including dietary supplements (vitamins, minerals and herbs), specialty foods, organic body and personal care products, pet products and sports nutrition products.

Vitacost supported Kroger’s ecommerce, wellness efforts
Kroger had acquired Vitacost in 2014 for about $280 million, saying at the time that the established ecommerce retailer would help Kroger jump-start its own fledgling ecommerce operations. Vitacost reported sales of $383 million in 2013 but had been losing money for each of the previous four years.

In addition to bolstering Kroger’s ecommerce expertise and infrastructure—Vitacost had two fulfillment centers that supplied customers in all 50 states and internationally—the acquisition also dovetailed with Kroger’s growing focus on health and wellness, the company said at the time of the acquisition.

In 2022, Kroger recorded a goodwill impairment charge of $160 million for Vitacost.com, noting that the talent and capabilities it acquired from the online retailer had been key to the advancement of Kroger’s digital capabilities. However, Kroger said its focus had shifted to store pickup and delivery. Commission at the time.

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Read the entire Current with Kroger for Period 12, 2025