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Carnival brand unlikely to survive after stores' sale
(Dallas Morning News, The (KRT) Via Acquire Media NewsEdge) Jul. 26--The Carnival Super Market brand probably won't survive the transition to new owners.
Coppell-based Minyard Food Stores Inc. announced the sale Wednesday of the Carnival brand and 37 stores to a Houston wholesaler.
The wholesaler's Fiesta Mart subsidiary takes over the Carnival brand and 11 stores. Grocers Supply Co. will sell the other 26 stores to independent grocers who are customers of its wholesale business.
Fiesta will probably fold its share of the North Texas stores under its own name, and the independent owners will be free to rename the stores with their own brands, said Grocers Supply chief operating officer Dave Hoffman.
"We think the Fiesta brand is very strong in that market," Mr. Hoffman said.
Fiesta spokesman Bernie Murphy said the chain would succeed where 18-year-old Carnival didn't with Hispanic customers.
"Fiesta's been targeting the international market since its inception in 1972, so we feel we have a pretty good handle on that business," Mr. Murphy said.
"We don't try to be all things to all people, just take care of our international customers," he said.
With the strength of its own name and efficiencies from operating one brand, Fiesta has little reason to keep the Carnival identity, said Ed Fox, marketing professor at Southern Methodist University.
"If they ran two different stores, or store brands, there's some additional costs, in particular marketing costs," Mr. Fox said.
"They would have two separate advertisements each week instead of a single one."
The sale presents a growth opportunity for the local independent grocers that are Fiesta's competitors in the Dallas area.
"I think everybody does have an interest," said Jerry's Supermarkets co-owner Mike McAghren.
Jerry's is looking into the Grocers Supply acquisitions but hasn't committed to any locations.
Garland-based El Rancho will try to buy six stores in high-traffic areas: three Sack 'n Saves, two Carnivals and one Minyard, said general manager Alex Zarrag.
El Rancho operates eight North Texas stores and two in Houston.
To see more of The Dallas Morning News, or to subscribe to the newspaper, go to http://www.dallasnews.com.
Copyright (c) 2008, The Dallas Morning News
Distributed by McClatchy-Tribune Information Services.
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