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Eco-Efficiency icon Eco-Efficiency: Cardenas Markets

Greening Grocery Operations

Key Environmental Performance Area:

  • Greenhouse Gas Emissions (Facilities)

Implemented energy efficiency projects including lighting upgrades, kitchen exhaust controls, refrigeration upgrades, and more.

Projected to reduce electrical utility costs by approximately 25 percent, save 20 million kWh of electricity use, and avoid more than 9,000 metric tons of greenhouse gas emissions.

Challenge

Retail buildings in the United States have the highest energy costs of all commercial buildings, approximately $20 billion annually, and account for the second largest percentage of greenhouse gas (GHG) emissions.i Retail building managers can decrease their energy costs and associated greenhouse gas emissions through energy efficiency initiatives.

Cardenas Markets (“Cardenas”) is known and respected as a prominent Latino market and operates 31 store locations throughout the Inland Empire region of Southern California, an area reaching from Imperial County and the Pomona Valley to Las Vegas, Nevada. Cardenas Markets offers a wide selection of quality and fresh products with great service at a superior value.

Mi Pueblo is a leading Hispanic grocery retailer in Northern California. Each of its stores – located in the Bay Area, Monterey Peninsula, and the Central Valley – offers quality foods, greater value, and genuine service in an authentic environment modeled after hometown markets found in Mexico and Latin America.

During 2016, KKR made significant investments in both of these Hispanic grocery chains, which are now a combined business operating as Cardenas Markets LLC.

Responseii

In 2017, Cardenas began working with the Green Solutions Platform (GSP) team to evaluate and implement energy efficiency projects, including lighting upgrades, kitchen exhaust controls, refrigeration upgrades, renewable energy and demand management. To date, the team has developed a full energy management program that is expected to have the following annual benefits if fully implemented: reduce electrical utility costs by approximately 25 percent, save 20 million kWh of electricity use, and avoid more than 9,000 metric tons of greenhouse gas emissions.


i Energy Star. "Retail: An Overview of Energy Use and Energy Efficiency Opportunities." n.d. Web. 07 August, 2017.

Self-reported portfolio company data is not calculated, reviewed or independently verified by KKR or KKR Capstone. For more information regarding the results methodology for companies evaluationg their own data, please see the methodology section. There is no guarantee that any GSP-related avoided costs or added efficiencies will positively impact the portfolio company’s valuation or performance.

Unless otherwise noted, portfolio company data represents 2016 results, published in October 2017. These case studies may contain forward looking statements including descriptions of planned projects and projected results and savings. These statements are subject to the risk that the projects will not develop as planned or at all or that projected results and savings are not realized.