Turkey Hill is a beloved brand of ice cream and refrigerated drinks that has been around since 1931. The company started out as a small dairy farm in Lancaster County, Pennsylvania and over the decades grew into a nationally distributed food and beverage brand. For over 30 years, Turkey Hill was owned by the Kroger grocery chain. However, in 2019, Kroger sold the Turkey Hill business to private equity firm Peak Rock Capital.
A Brief History of Turkey Hill Dairy
Turkey Hill Dairy has its origins back in 1931 when Armor Frey established a small dairy farm in Lancaster County, Pennsylvania Frey named the farm after the Turkey Hill section of rural Manor Township In the beginning, Turkey Hill Dairy focused on producing and delivering milk to homes in the surrounding community.
Over the years, Turkey Hill expanded beyond milk into making ice cream, iced tea, fruit drinks and other refrigerated beverages. By 1985, Turkey Hill Dairy operated a modern production facility and distribution center in Conestoga, Pennsylvania and had become one of the leading dairy producers in the state.
That year, Turkey Hill Dairy was acquired by the Kroger Company, one of the largest supermarket chains in the country. Under Kroger’s ownership, Turkey Hill invested in expanding its portfolio of ice cream and beverages and grew its distribution footprint nationwide.
Turkey Hill as a Kroger Subsidiary: 1985-2019
For 34 years, Turkey Hill Dairy operated as a subsidiary of Kroger. The grocery chain helped grow the Turkey Hill brand across the United States making its ice cream and tea available in thousands of stores.
During the period of Kroger’s ownership, some key events and product launches for Turkey Hill Dairy included:
- 1991 – Introduced gallon sizes of ice cream for retail sale
- 1994 – Expanded operations with a 70,000 square foot addition to Conestoga plant
- 1995 – Launched refrigerated iced tea in supermarkets
- 1999 – Introduced Turkey Hill “All Natural” ice cream
- 2002 – Launched Dairy Pure branded milk line
- 2007 – Unveiled first Turkey Hill convenience store and gas station
- 2016 – Opened innovation center at Columbia, Pennsylvania plant
Although Turkey Hill became a thriving ice cream and beverage brand under Kroger, by 2019 the grocery chain was looking to streamline its manufacturing operations.
Turkey Hill Gets a New Owner in 2019
In August 2018, Kroger announced it was considering strategic alternatives for Turkey Hill Dairy, including potentially selling the business. After exploring options, in March 2019 Kroger announced it had reached a deal to sell Turkey Hill Dairy to private equity firm Peak Rock Capital.
Peak Rock Capital, based in Austin, Texas, specializes in investing in middle-market companies with strong growth potential. The firm saw an opportunity to help build Turkey Hill into an even larger ice cream and beverage brand.
Financial details were not disclosed, but Kroger reportedly received $215 million from the sale. The transaction closed in May 2019, formally transitioning ownership of Turkey Hill Dairy to Peak Rock Capital.
What Does Peak Rock Capital Ownership Mean for Turkey Hill?
With the 2019 sale, Turkey Hill Dairy entered a new chapter in its decades-long history. As a standalone company under Peak Rock Capital, Turkey Hill has greater flexibility to expand its brand and products without being constrained to Kroger’s manufacturing or distribution priorities.
Peak Rock said it aimed to drive significant growth for Turkey Hill through product innovation and strategic acquisitions. Turkey Hill continues to operate its manufacturing and distribution operations out of Conestoga, Pennsylvania.
In the few years since the acquisition, Turkey Hill has already introduced some new innovations like light ice creams, dairy-free iced coffees, and ready-to-drink cold brew lattes. It shows that while the Turkey Hill brand has a long history, it still has room to grow into new product categories under its new ownership.
While Kroger was instrumental in growing Turkey Hill over a 30+ year span, the brand seems well positioned to thrive under Peak Rock Capital’s focus on investing in middle-market consumer companies. Turkey Hill’s availability and popularity today is a testament to the hard work by both its original founders and the business leaders that shepherded the company through ownership changes, keeping Turkey Hill a preferred choice for ice cream and iced tea after over 90 years.
Is Turkey Hill going out of business?
FAQ
Is Kroger Turkey Hill?
Can I use my Kroger card at Turkey Hill?
What brands are owned by Kroger?
Does Kroger own Turkey Hill?
Conestoga, Pa.-based Turkey Hill has a diverse customer base, including blue-chip grocers, distributors, wholesalers and convenience stores. Kroger disclosed that it received $215 million from the sale of the business, the after-tax cash proceeds of which it plans to use to reduce debt.
Does Kroger sell Turkey Hill ice cream?
Kroger said Monday that it plans to use the after-tax cash proceeds from the sale to reduce debt. Turkey Hill makes a range of food and beverages, including iced tea, lemonade, fruit drinks, milk, frozen dairy treats and ice cream at its manufacturing and distribution plant in Conestoga, Pa.
Who owns Turkey Hill?
The company is operated independently from Turkey Hill Minit Markets, a chain of more than 260 gas station convenience stores that carry Turkey Hill products in Pennsylvania, Ohio and Indiana.
Who owns Turkey Hill Dairy?
Armor Frey founded Turkey Hill Dairy on traditional values like faith, hard work and unwavering commitment to quality. Today, our neighborhood has grown, and millions have come to trust Turkey Hill to mean the finest in frozen desserts and beverages.