Does Aldi Own Trader Joe’S In 2022? (You’Ll Be Surprised)
With its laid back Californian feel and low prices and original goods, Trader Joe’s has gained cult status with the mass with numerous Facebook groups and websites dedicated to the 500+ stores located in 43 states.
Aldi Has Trader Joe’s Owned In 2022
Aldi Nord owns Trader Joe’s. It is not the Aldi supermarket that North American shoppers know. Trader Joe’s is owned by Aldi Nord, which was formed when the two brothers who founded the Albrecht Discount chain in Germany parted ways. Aldi Sud oversees Aldi US operations.
Is there a second Aldi?
There are two Aldi entities, and before we can get into the details of how one of those Aldi companies took over Trader Joe’s, it’s important to understand a little bit about the history of the Albrecht family.
The Albrecht matriarch started the family’s first grocery in Essen in 1900, but Germany had suffered two World Wars. The Albrecht brothers Theo und Karl, who returned from war, took control of the business.
They saw that the situation was dire and the brothers decided to create their own niche by selling pantry products at very low prices. As the business grew, they opened multiple locations throughout Germany.
They were getting on quite well until the 1960s, when the brothers couldn’t agree on whether or not to sell cigarettes. Karl opposed the idea because he believed it would encourage shoplifters. Theo agreed with Karl.
So they split, with Theo assuming control over Aldi Nord and Karl at the helm of Aldi Sud.
When Did Aldi Nord Take Over Trader Joe’s?
Aldi Sud managed to reach the US in 1976. Importantly, Aldi Nord also acquired Trader Joe’s within three year.
As we can see, they weren’t looking to share a name or company with another chain to get into America.
Joe Coulombe, founder of Trader Joe’s (yes there is a Joe!) founded the business in 1979. Theo Albrecht, Aldi Nord CEO, purchased his company.
A writer at AldiReviewer.com actually reached out to Trader Joe’s to learn how closely Aldi Nord and Trader Joe’s are operated, and the TJ rep responded that the two entities do operate independently of each other.
Aldi Nord’s sister company Trader Joe’s has its own legal jurisdiction.
What exactly is Trader Joe’s?
Theo Albrecht made the California chain a great investment by sharing some background information about Trader Joe’s.
Joe Coulombe (a Stanford University grad) founded Trader Joe’s. Coulombe began his career in convenience stores and drugstores. When six of the Pronto Markets he had been managing were up for liquidation, Coulombe purchased them.
This was the 1950s. Coulombe made significant changes to his business model in the subsequent years. He was able to stand out against the flood of 7 Elevens that were selling the same items, and his stores became more unique.
The restaurant was renamed Trader Joe’s after a Los Angeles tiki bar (“Trader Vic’s”) in the late 1960s. Aldi Nord offered their services shortly after.
You can see why. Coulombe’s business model included more than simply finding random things and then putting them all together.
Not really. He rather created high-end products out of discontinued and overstocked items, which he then could sell to customers at a fraction of the cost. Do you sound familiar?
Whether or not that type of product (high-end/gourmet foods at low prices) made the Aldi Nord purchase of Trader Joe’s intentional, today it’s one of the biggest draws for both Aldi Sud and Trader Joe’s stores, and part of the reason middle-to-upper-class shoppers flock to both.
What Do Aldi and Trader Joe Sell?
Some claim that Trader Joe’s US and Aldi US get their products from the same wholesalers, but we don’t have any evidence to support that. However, the stores carry similar products and one example suggests that Aldi may have copied.
The best example of this would be Trader Joe’s cult classic Everything But the Bagel flavoring. It was introduced in 2017 by Aldi. Aldi later released their own version of the seasoning under their Stonemill Seasonings label. It was simply named Everything Bagel.
However, there are many similar products such as wine, (Trader Joe’s offers Two-Buck Chuck while Aldi has the Winking Owl brand which retails for around $2.50/bottle), cheeses fancy, naan bread, and almond butter.
It appears that Trader Joe’s stores carry a greater variety of similar products, since Aldi’s inventory is constrained by space and design. Picture elevated versions of fruit spreads, pickles and granola.
However, Trader Joe’s pantry staples are lighter than Trader Joe. A quick online search of Trader Joe ” For the Pantry ” pages reveals very few useful basics. Aldi’s 5-lb All-Purpose Flour Bag sells for only $3.99 and the same product sells on Aldi for just $1.15
There is overlap between their product lines, but they are both competing for disposable income. Both have made it their mission, to sell at low prices.
But it could be said that Trader Joe’s and Aldi occupy two very different niches, while veering over into each other’s lanes once in a while.
Does Aldi Own Trader Joe’S In 2022? (You’Ll Be Surprised)
