Great Atlantic & Pacific Tea Company, Inc.

▪ American company

      German-owned food distribution company that operates supermarket chains in the United States and Canada. Headquarters are in Montvale, New Jersey.

      The company's history traces to 1859, when George F. Gilman and George Huntington Hartford founded the Great American Tea Co. in New York City to trade in tea bought from the cargoes of the clipper ships. Initially a mail-order operation, it began opening retail stores in the 1860s. The company was renamed Great Atlantic & Pacific Tea Company in 1870. By 1881 its stores extended as far west as St. Paul, Minnesota, and as far south as Richmond and Norfolk, Virginia. Soon coffee, spices, and extracts were added to the sales. In 1900 the company, which had nearly 200 stores, was incorporated. Twenty-five years later there were about 14,000 “economy stores,” and A&P was the largest grocery chain in the United States; in the 1930s A&P began operating stores in Canada. In 1936 the first of A&P's supermarkets was opened; and these, fewer in number, eventually supplanted the former smaller stores. A&P further contracted over the years, giving up its Midwestern outlets in the 1970s and limiting its operations to the Eastern Seaboard. In the 1980s, however, the company began acquiring a number of food chains, including Kohl's Food Stores (1983; sold 2003) in Wisconsin; Shopwell (1986) and Waldbaum's (1986) in New York; and Farmer Jack (1989) in Michigan. Many of the chains continued under their own names, and other stores operated by A&P came to include Super Fresh and The Food Emporium as well as Dominion in Canada.

      A&P, once also owner of manufacturing plants producing an array of food and household items (primarily under Ann Page and A&P labels), withdrew from most manufacturing in the 1970s and '80s but continued to distribute a number of private-label food products under brands such as America's Choice and Master Choice. A&P sold its coffee business (Eight O'Clock brand) in 2003.

      In 1969, at the death of its eccentric and domineering president, Ralph Burger, A&P was the largest food chain in the United States, with more than twice the sales of its nearest competitor, Safeway. In 1973, however, Safeway's sales surpassed A&P's, and in 1978 A&P fell to third place behind Kroger; in the 1980s its ranking fell still further. Beginning in 1979, after stock prices fell dramatically, the German supermarket giant Tengelmann bought a controlling percentage of the outstanding shares.

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