Jim and Joyce Raley Teel have announced they will transfer majority ownership of Raley's supermarkets to their son, Michael Teel, the company's president and chief executive officer.
The Teel's four daughters will continue to hold minority ownership.
Also, Raley's has signed a partnership agreement with Harris Ranch Beef. The move ensures that Raley's customers will be provided only California Grown USDA Choice Beef, locally raised and grown.
In a letter to Raley's employees, Jim and Joyce Teel stated, "This is a significant accomplishment, as fewer than 12% of family businesses transition to a third generation. With Mike's passion and vision, we have great faith he will guide and grow the business for future generations."
They said that transitioning to a third generation of family ownership is an important step in keeping Raley's a family-owned company and Northern California business leader.
The Teel family is committed to continuing family ownership of the company for generations to come, they said. This transition ensures the continued presence of a strong family-owned business, one of the largest privately held companies in the Sacramento area, that contributes positively to the region's economy and community.
"My grandfather saw the potential in this area 80 years ago," Mike Teel said, "I want to continue that legacy, and continue to invest in the region. It's poised for growth and so are we. This is our home, and we're here to stay."
Mike Teel will own 92% of the company and become majority owner, with his sisters equally sharing the remaining 8%.
He said that over the last decade, Raley's has focused on expanding its product line, including organic and natural food offerings. Under his direction, that will continue, he added,
"I'm very proud, as my parents were when they took on the responsibility of leading this company," he said. "I look forward to working with my sisters and the entire Raley's team to honor our parents' and our grandfather's legacy."
As for the Harris Ranch agreement, Koen Vemelyen, the grocer's meat and seafood expert, said that when Raley's went looking for premium, well-marbled and locally produced beef, "we found it in our own backyard at Harris Ranch."
He said Harris Ranch's sustainable, local and home-grown beef helps support local California and regional economies. Cattle feed is tested to ensure it is free of pesticide residue, and finished beef is screened for antibiotic resides above USDA standards.
Harris Ranch beef is grown by ranching families committed to animal welfare, Vemelyen added.
"For over 50 years, Harris Ranch has strived to produce the highest quality beef in the world," said Dave Wood, chairman of the grower's beef division. "Still family owned and operated, we take great pride in raising beef that's as pure and great tasting as nature intended."