Chilean holding company Cencosud (Centros Comerciales Sudamericanos) announced it has acquired full ownership of premium supermarket chain The Fresh Market.

Chilean holding company Cencosud now has full ownetship of The Fresh Market. Photo courtesy of The Fresh Market UPI

SANTIAGO, Chile, Sept. 4 (UPI) -- Chilean holding company Cencosud (Centros Comerciales Sudamericanos) announced it has acquired full ownership of premium supermarket chain The Fresh Market after purchasing the remaining 33% stake held by investment fund AP VIII Pomegranate Holding.

The sale was valued at $295 million, according to a filing Cencosud made with Chile's Financial Market Commission, the country's financial regulator.

The Fresh Market was founded in 1982 by Ray and Beverly Berry in Greensboro, N.C., and specializes in high-quality fresh and healthy products, baked goods, prepared foods, floral arrangements and other items. The chain operates 172 stores in 22 states, mainly in Florida, North Carolina, Virginia and Georgia.

In 2022, Cencosud purchased a 67% stake in the company for $676 million, marking the Chilean retailer's entry into the U.S. market.

"We are very pleased to have reached this agreement, which marks an important milestone in our strategy to strengthen Cencosud's presence in the U.S. market," Cencosud CEO Rodrigo Larraín said in announcing the full acquisition of the supermarket chain.

"The supermarket business in the United States has shown positive performance and is entering a new stage of growth that excites us greatly," he said, adding that the acquisition will allow the company to accelerate integration of the chain into its operations.

Cencosud, one of Latin America's largest retailers, was founded in 1963 by Horst Paulmann. His family remains the majority shareholder in the holding company, which operates supermarkets, home improvement stores, department stores, shopping centers and financial services.

The company operates in six countries: Chile, Argentina, Peru, Colombia, Brazil and the United States. In the United States, it has focused only on the supermarket segment, which grew 12.8% in sales in 2024 thanks to store expansion and online sales.

Claudio Pizarro, a researcher at the Center for Retail Studies in the Department of Industrial Engineering at the University of Chile, said Cencosud's latest move underscores the Chilean supermarket operator's strategy to expand in the U.S. market.

"The United States is the largest supermarket market -- it's where Walmart started, and today it is the global leader. The performance of The Fresh Market has been very positive and shows strong growth potential," he said.

He added that 80% of Cencosud's revenue comes from its supermarket business, where it has developed its own private-label products, such as Cuisine & Co.

"It is an increasingly important and distinctive asset in its supermarket business," Pizarro said.

With the full acquisition of The Fresh Market, Cencosud aims to become a major global player in the supermarket sector, said Jorge Berríos, academic director of the finance program at the University of Chile's School of Economics.

"Cencosud is a company with a strong presence in Latin America. Its natural path was to pursue expansion into the United States and become a global player through a niche supermarket, where it has found a significant opportunity," Berrios said.

"Today, people want to buy quality food, and they are willing to pay for that service," je added.