US supermarket chain Kroger Co. has said that it is exploring strategic alternatives for its Turkey Hill Dairy business, including a sale.
Turkey Hill, which has nearly 800 workers, produces milk, ice cream, frozen dairy treats, iced teas and fruit drinks.
"Turkey Hill is a unique CPG food business within Kroger Manufacturing, as it is a strong, nationally known brand," said Erin Sharp, group vice-president for Kroger Manufacturing.
"Turkey Hill's successful and recognisable ice-cream and beverage products have the potential for greater growth outside of our company. We want to ensure Turkey Hill has every opportunity to meet its full potential," added Sharp.
The unit was not part of the sale of Kroger's convenience store business to British gas station operator EG Group for $2.15 billion earlier this year.
The sale of the convenience stores, which had $4 billion in annual revenue, was part of Cincinnati-based Kroger's 'Re-stock' plan, which aimed to revamp its nearly 2,800 bricks-and-mortar supermarkets, cut prices, and boost in-store technology.
Turkey Hill distributes frozen dairy desserts and drinks in 49 US states, excluding Hawaii, and owns a manufacturing and distribution facility in Conestoga, Pennsylvania.
The company said that it had hired Goldman Sachs & Co. LLC to review and evaluate the options for Turkey Hill, which has been owned by Kroger since 1985.