Kroger 2014 Annual Report Download - page 63
Download and view the complete annual report
Please find page 63 of the 2014 Kroger annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.61
TH E B O A R D O F D I R E C T O R S R E C O M M E N D S A V O T E A G A I N S T T H I S P R O P O S A L F O R T H E
FO L L O W I N G R E A S O N S :
Asoneofthelargestretailersofnaturalandorganicfood,Krogeroffersawidevarietyofprivatelabel
andnationalbrandantibioticfreemeatitemsinourstores.In2012,weintroducedourprivatelabelSimple
Truth®andSimpleTruthOrganic®brandsofnaturalandorganicproducts.Allofthemeatitemswiththe
SimpleTruthandSimpleTruthOrganiclabelareantibioticfreeandareavailableinourstores.Thisincludes
beef,pork,andpoultry.
Manyofourcustomershaveindicatedapreferenceforantibioticfreemeatitems.Infact,salesofSimple
TruthandSimpleTruthOrganicandotherantibioticfreeitemshaveincreasedsignificantlyinthepastseveral
yearsandweexpect to see continuedgrowth in these items. That’s why weare continuing to offernew
antibioticfreeitemsandworkingwithsuppliersastheytransitiontheirproductstoantibioticfree.Wewill
continue to monitor the purchasing practices of our customers and will continue to meet their demand to the
extentoursuppliersareabletodoso.Wedonotbelieve,however,thatgivencurrentcustomerpreferences
and availabilityofproduct itisappropriatetoimmediatelyphase outall non-antibiotic-free meatsorseta
date-certainforwhenatransitionshouldbecomplete.
As such, we believe that the requested report would serve little benefit to our shareholders, and
preparationofareportwoulddivertresourcesthatotherwisecouldbemoreappropriatelyusedinthebest
interests of our shareholders.
SHAREHOLDERPROPOSALSANDDIRECTORNOMINATIONS–2016ANNUALMEETING.Shareholder
proposalsanddirectornominationsintendedforinclusionintheproxymaterialrelatingtoKroger’sannual
meetingofshareholdersinJune2016shouldbeaddressedtoKroger’sSecretaryandmustbereceivedatour
executiveofficesnotlaterthanJanuary13,2016.TheseproposalsmustcomplywithRule14a-8andtheSEC’s
proxyrules.
Inaddition,Kroger’sRegulationscontainanadvancenoticeofshareholderbusinessandnominations
requirement, which generally prescribes the procedures that a shareholder of Kroger must follow if the
shareholderintends,atanannualmeeting,tonominateapersonforelectiontoKroger’sBoardofDirectors
or to propose other business to be considered by shareholders. These procedures include, among other
things,thattheshareholdergivetimely noticetoKroger’sSecretary ofthenominationorotherproposed
business,thatthenoticecontainspecifiedinformation,andthattheshareholdercomplywithcertainother
requirements. Inorder tobe timely, thisnoticemustbedeliveredinwriting toKroger’s Secretary, at our
principalexecutiveoffices,notlater45calendar dayspriortothedateonwhichour proxystatement for
theprioryear’s annual meetingofshareholderswasmailed toshareholders.Ifashareholder’s nomination
or proposal is not in compliance with the procedures set forth in the Regulations, we may disregard such
nomination or proposal. Accordingly, ifashareholderintends, at the 2016annual meeting, to nominate a
personforelectiontotheBoardofDirectorsortoproposeotherbusiness,theshareholdermustdelivera
noticeofsuchnominationorproposaltoKroger’sSecretarynotlaterMarch29,2016,andcomplywiththe
requirementsoftheRegulations.IfashareholdersubmitsaproposaloutsideofRule14a-8forthe2015Annual
MeetingandsuchproposalisnotdeliveredwithinthetimeframespecifiedintheRegulations,Kroger’sproxy
mayconferdiscretionaryauthorityonpersonsbeingappointedasproxiesonbehalfofKrogertovoteonsuch
proposal.Shareholderproposals,directornominationsandadvancenoticesshouldbeaddressedinwritingto:
Secretary,TheKrogerCo.,1014VineStreet,Cincinnati,Ohio45202-1100.
AttachedtothisProxyStatementisour2014AnnualReportwhichincludesabriefdescriptionofour
business,includingthegeneralscopeandnaturethereofduringfiscalyear2014,togetherwiththeaudited
financial information contained in our 2014 Annual Report on Form 10-K filed with the SEC. A copy of
that report is available to shareholders on request without charge by writing to: Todd A. Foley,
Treasurer, The Kroger Co., 1014 Vine Street, Cincinnati, Ohio 45202-1100 or by calling 513-762-1220.
OurSECfilingsareavailabletothepublicontheSEC’swebsiteatwww.sec.gov.