K-VA-T Food City
usinfo | 2013-08-09 11:33

Food City is a U.S. supermarket chain with stores located in Kentucky, Virginia, and Tennessee. It offers the house labels "Food Club," "Top Crest", "ValuTime", "Food City Fresh!", "Food City Premium", "Full Circle", "Domestix", "Electrix", "Academix", "Pet Club", and "World Classics" many of which are part of the Topco corporate brand program.[1] Food City is also the exclusive distributor of regional favorites such as "Kay's Ice Cream", "Terry's Snacks", "Kerns Bread", "Lay's Meats",[2] along with "Chuck Wagon Dog Food".[3]

It is owned by K-VA-T Food Stores, a privately held family and employee-owned corporation (only 15% via ESOP) headquartered inAbingdon, Virginia.[4] K-VA-T Food Stores owns the Food City Distribution Center (formerly Mid-Mountain Foods), a distribution center K-VA-T helped form in 1974 and acquired full control of in 1998, Misty Mountain Spring Water, LLC, a producer of bottled water, as well as limited-assortment grocery stores named Super Dollar Discount Foods, and convenience stores named Food City Express. Many stores have their own gasoline stations, with the Gas'N Go branding.

History
K-VA-T Food Stores traces its history to 1955, when company founder Jack Smith opened his first 8,800-square-foot (820 m2) Piggly Wiggly store in Grundy, Virginia with the help of three special stockholders: his father, Curtis Smith, uncle, Earl Smith and cousin, Ernest Smith. In 1963, Smith added a second store in South Williamson, Kentucky, followed by a newly constructed third location in Pikeville, Kentucky in 1965, and a store in Prestonsburg, Kentucky in 1967.

The company continued to grow steadily until 1984 when they acquired Quality Foods, a 19-store chain (founded in 1918), that operated under the Food City name. The Smiths adopted Food City as the new nameplate, along with its heritage, for all of their stores going forward. In 1989, Food City purchased the 43-store White Stores chain based out of Knoxville, TN, more than doubling the size of the company.

In 1998, Food City acquired the 11-store Kennedy Piggly Wiggly chain as well as full control of Mid-Mountain Foods, the current K-VA-T distribution center. The following year,Winn-Dixie pulled out of the Knoxville market and sold their seven stores to Food City. In February 2006, Food City announced the purchase of eight Bi-Lo locations in Knoxville,Maryville, and Oak Ridge, Tennessee.[5]

K-VA-T celebrated its 50th anniversary November 17, 2005 by opening a 46,500-square-foot (4,320 m2) store in Vansant, Virginia, just outside of Grundy. Three years later, in October 2008, K-VA-T opened its 100th store in Rogersville, Tennessee. The company celebrated this event by sending a special commemorative I-beam to every store in the company where employees signed it as a goodwill gesture for the new store.[6] The beam sits above the entrance way in the 100th store.

In December 2010, K-VA-T purchased Old Town Market in Tazewell, TN as a replacement store for their New Tazewell, TN location.[7]
In June 2011, K-VA-T announced that a new corporate headquarters will be built in Abingdon, Virginia in the former Johnston Memorial Hospital. [8] The building is an anticipated $20 million investment expected to create 25 new jobs and open in 2013. $6 million in incentives were allocated for the project from multiple sources including Virginia Tobacco Commission, Washington County, and the town of Abingdon, Virginia. [9] The conditions for the incentives include "K-VA-T’s investment in the building must top $20 million, and the company must continue to employ at least 375 people, with a quarterly payroll of more than $4 million." [10]

The largest Food City ever opened in February 2012 in Bristol, Virginia. The store is 58,000 square feet (5,400 m2) and 8,000 square feet (740 m2) on the 2nd floor.

In March 2012, K-VA-T announced the signing of the lease for their first location in West Virginia in the city of Bluefield, West Virginia.,[11] but decided in August 2012 against renovating the former Kroger location due to it not being cost effective.[12] In December, 2012 the Bluefield, West Virginia City Board approved a resolution to encourage residents to consider spending their money elsewhere other than the Bluefield, Virginia Food City if the storefront remains vacant. [13]

In April 2012, K-VA-T opened their first Food City Express food and fuel station in Coeburn, Virginia offering items typically stocked in a convenience store.[14] Later in August 2012, K-VA-T opened their first Food City Wine and Spirits liquor store in Pikeville, Kentucky.[15]

Community involvement
Due to their charitable activities and strong ties to their local economies, Food City received Supermarket News's Community Service Award for 2008.[16]

Steven C. Smith, president and chief executive officer for K-VA-T was named 2009 Grocer of the Year by Tennessee Grocers & Convenience Store Association during their annual convention. TGCSA selects one outstanding Tennessee retailer who exemplifies the high standards of integrity and efficiency upon which the organization was founded to be named Grocer of the Year.[17]

In February 2013, Food City received the Dale Carnegie Leadership Award which recognizes a commitment to excellent service and quality products; dedication to employee growth; recognition of employee value; and a sense of obligation which brings a high level of community involvement.

Appalachia Santa Train
In 1992, Food City began working with the Kingsport Area Chamber of Commerce and CSX Transportation to solicit donations of toys, candy, clothes and money for the Appalachia Santa Train, a 110-mile (180 km) trip through the Appalachian Mountains via train that distributes over 15 tons of gifts to children. Food City’s involvement has grown to the point where around 200 volunteers work on the project each year.[19]

Locally grown produce and eggs
Food City purchases a great deal of their produce within their trade area, providing additional support to the regions in which they operate. In 2006, Food City purchased in excess of $5,000,000 in locally grown produce from a number of local farms, including those in Grainger, Blount, Hawkins, Unicoi, Jefferson and Sullivan counties in Tennessee; Scott and Carroll counties and through Appalachian Harvest co-op for locally grown organics from the growers in Scott County, Virginia.[20] In July 2011 Food City announced that 95 percent of its eggs will come from Dutt& Wagner of Virginia, Inc., a family-operated egg business that produces and distributes its eggs from Abingdon, Virginia. The remaining 5 percent of eggs are considered specialty products such as Egg Beaters. [21]

School Bucks
In 1990, Food City began their Apples for the Students program. From its inception until 2007, the program allowed students to collect specially marked Food City register receipts in exchange for computers, software, sporting goods, calculators, teaching tools, audio/visual and other educational materials for their schools. In 2007, the program went completely electronic, allowing customers to link their Food City loyalty cards to the particular school they wish to donate to. This advancement also allowed schools to check totals online. In 2009, Food City rebranded its Apples for the Students program as Food City School Bucks.

Since the program's inception, Food City has awarded in excess of 14 million dollars in educational equipment and tools to over 800 participating area schools.[22]

Sports
Since 1987, Food City has been the official sponsor of the Tim Irwin/Food City Bass Tournament held in Lenoir City, Tennessee. Proceeds from the tournament benefit the Boys & Girls Clubs of the Tennessee Valley and has raised over $530,000 since 1990.[23]

Food City sponsors two NASCAR events at Bristol Motor Speedway, the Spring Sprint Cup race, the Food City 500 and the Fall Nationwide Series race, the Food City 250. The Food City deal, which is now in its 22nd year in 2013, is currently the longest race entitlement sponsor deal in the Sprint Cup Series. As part of the renewal and the 20th anniversary announcement in 2011, following the death in 2010 of track President and General Manager Jeff Byrd, the 20th anniversary race was renamed the Jeff Byrd 500 presented by Food City.[24] Along with these races, Food City holds the Food City Family Race Nights in Knoxville and Bristol, Tennessee the week preceding the NASCAR events.

From 2005-2007, Food City also sponsored the former Hooters Pro Cup event at Bristol Motor Speedway, the Food City 150.[25][26]

Prior to 2010, Food City was a primary sponsor of the Web.com Tour Knoxville Open golf tournament in Knoxville, Tennessee, which benefits several charities.[27]

Locations
As of April 2013, K-VA-T operates 105 retail food outlets (95 Food City stores and 10 Super Dollar Discount Foods stores), 1 convenience store (Food City Express), and 1 liquor store (Food City Wine & Spirits) in Kentucky, Virginia, and Tennessee.[28][29][30][31][32] The chain includes 76 in-store pharmacies and 75 fuel stations.[33]

Food City Arizona
Food City in Arizona is not owned by K-VA-T Food Stores; it is owned by Bashas'.

References
1. ^ Topco Corporate Brands, Topco.com accessed on February 12, 2009
2. ^ Food City adds another iconic brand, Knoxnews.com accessed on June 5, 2008
3. ^ Nickles Banana Flip is back, Tricities.com accessed on April 12, 2012
4. ^ Steve Smith says Food City committed to improved health, wellness throughout region, Tricities.com accessed on April 15, 2011
5. ^ Food City Announces Plans to Acquire Knoxville Area BI-LO Supermarkets, press release dated February 17, 2006
6. ^ Lowe, Brandon (2008-10-01). "Food City banking on Union County growth with new store". Knoxville News Sentinel. Retrieved 2008-10-15.
7. ^ Food City buys out Old Town Market, will remodel building, claiborneprogress.net dated December 2010
8. ^ Former Johnston Memorial to become Food City HQ, tricities.com dated June 3, 2011
9. ^ K-VA-T to receive $6 million incentive, tricities.com dated December 26, 2011
10. ^ K-VA-T to receive $6 million incentive, tricities.com dated December 26, 2011
11. ^ K-VA-T Food Stores, Inc.: Chain signs lease, bdtonline.com dated March 17, 2012
12. ^ K-VA-T Food Stores Inc. responds to city, says company is looking for other sites in Bluefield, bdtonline.com dated August 29, 2012
13. ^ Bluefield City Board approves Food City resolution, bdtonline.com dated December 12, 2012
14. ^ Food City Express to open in Coeburn, Va, tricities.com dated April 2012
15. ^ Food City unveils big changes, news-expressky.com dated August 31, 2012
16. ^ Role Model, Supermarket News accessed on March 8, 2008
17. ^ Food City President and CEO Named Tennessee Grocer of the Year, press release dated April 20, 2009
18. ^ Food City employees, customers share in Dale Carnegie Leadership Award, dalecarnegietn.com dated February 18, 2013
19. ^ http://www.kentucky.com/2010/11/19/1532567/santa-train-starts-its-68th-run.html, Lexington Herald-Leader dated November 19, 2010
20. ^ Food City Features Locally Grown Produce, press release dated June 25, 2007
21. ^ Food City introduces locally produced eggs in their stores, tricities.com dated July 28, 2011
22. ^ Food City Kicks Off School Bucks Program, press release dated August 22, 2012
23. ^ Alumni Hall of Fame Honors Judge Tim Irwin, press release dated May 2, 2009
24. ^ Bristol Sprint Cup race renamed to honor Jeff Byrd
25. ^ 2004 Food City 150
26. ^ 2007 Food City 150
27. ^ Knoxville Open's future in doubt; Food City drops sponsorship, WBIR-TV website, February 8, 2010.
28. ^ "New Bristol Food City Set to Open". foodcity.com. Retrieved 2013-04-07.
29. ^ "A Food City Near You". foodcity.com. Retrieved 2013-04-07.
30. ^ "Find Your Local Super Dollar". superdollarstores.com. Retrieved 2013-02-23.
31. ^ "Food City Express to open in Coeburn, Va.". tricities.com. 2012-04-17. Retrieved 2013-02-23.
32. ^ "Food City unveils big changes". news-expressky.com. 2012-08-31. Retrieved 2013-02-23.
33. ^ "Clintwood Food City Gas 'n Go Now Open". foodcity.com. 2012-08-31. Retrieved 2013-02-23.

 

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