<SEC-DOCUMENT>0001214659-24-009661.txt : 20240521
<SEC-HEADER>0001214659-24-009661.hdr.sgml : 20240521
<ACCEPTANCE-DATETIME>20240521070727
ACCESSION NUMBER:		0001214659-24-009661
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20240521
DATE AS OF CHANGE:		20240521
EFFECTIVENESS DATE:		20240521

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KROGER CO
		CENTRAL INDEX KEY:			0000056873
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-GROCERY STORES [5411]
		ORGANIZATION NAME:           	07 Trade & Services
		IRS NUMBER:				310345740
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			0203

	FILING VALUES:
		FORM TYPE:		PX14A6G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-00303
		FILM NUMBER:		24966822

	BUSINESS ADDRESS:	
		STREET 1:		1014 VINE ST
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45201
		BUSINESS PHONE:		5137624000

	MAIL ADDRESS:	
		STREET 1:		1014 VINE ST
		CITY:			CINCINNATI
		STATE:			OH
		ZIP:			45201

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SISTERS OF ST FRANCIS OF PHILADELPHIA
		CENTRAL INDEX KEY:			0001519001
		ORGANIZATION NAME:           	
		IRS NUMBER:				231352545
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		PX14A6G

	BUSINESS ADDRESS:	
		STREET 1:		606 SOUTH CONVENT ROAD
		CITY:			ASTON
		STATE:			PA
		ZIP:			19014
		BUSINESS PHONE:		610-558-7661

	MAIL ADDRESS:	
		STREET 1:		606 SOUTH CONVENT ROAD
		CITY:			ASTON
		STATE:			PA
		ZIP:			19014
</SEC-HEADER>
<DOCUMENT>
<TYPE>PX14A6G
<SEQUENCE>1
<FILENAME>d516241px14a6g.htm
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<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Notice of Exempt Solicitation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NAME OF REGISTRANT: THE KROGER COMPANY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NAME OF RELYING ON EXEMPTION: SISTERS OF ST. FRANCIS OF PHILADELPHIA</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>ADDRESS OF PERSON RELYING ON EXEMPTION: 609 S. CONVENT ROAD, ASTON,
PA 19014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Fellow Kroger Company Shareholder,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Sisters of St. Francis of Philadelphia seeks your support for Proposal
4 on the Kroger Company (&ldquo;Kroger&rdquo;, or &ldquo;the Company&rdquo;) 2024 proxy ballot. The resolved clause states:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>RESOLVED</I></B><I>, shareholders ask that the board commission
and disclose a report on the external public health costs created by the sale of tobacco products by our company (the &ldquo;Company&rdquo;)
and the manner in which such costs affect the vast majority of its shareholders who rely on overall market returns.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We are the lead filers of this proposal, which has been co-filed by
other concerned investors, including the Sisters of Charity of St. Elizabeth, NJ, Sisters of the Humility of Mary, OH, CommonSpirit Health,
Bon Secours Mercy Health, Congregation of St. Joseph, OH, Mercy Investment Services, and Trinity Health.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Our Rationale to vote FOR and Rebuttal to the Company&rsquo;s Opposition
Statement follows:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As investors, we expect companies in our holdings to align their operations
with their stated mission and vision. Investments made with a company, while certainly influenced by financial considerations, can also
include factors such as good will, sustainability, transparency, and mission alignment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Kroger Company operates 2,750 grocery retail&nbsp;stores under
a variety of banner names, as well as 170 jewelry stores, 35 food production or manufacturing&nbsp;facilities producing private-label
products, and 1,585 supermarket fuel centers. Additionally, the company operates 2,200 pharmacies, in 35 states and 220 clinics in 9 states,
located in their combination food and drug stores.<SUP>1</SUP>
Kroger Health, a division of The Kroger Company, has committed its resources to improve the general health of the communities they serve,
saying &ldquo;Our vision is to help people live healthier lives, and our mission is to improve health outcomes with simplified solutions
that combine health, wellness and nutrition.&rdquo;<SUP>2</SUP>
Their team of 24,000 healthcare practitioners include pharmacists, nurse practitioners, dietitians and technicians &ldquo;helping people
live healthier lives.&rdquo;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>1</SUP>
https://ir.kroger.com/news/news-details/2024/Kroger-Health-Announces-Continued-Inclusion-in-Centenes-Pharmacy-Network/default.aspx</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>2</SUP> https://www.krogerhealth.com/</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At the top of the Kroger family of companies is the Kroger Company,
which offers numerous products and services to assist with healthy eating and living, including a staff of registered dieticians to offer
advice, their OptUP app to help customers choose healthy foods, diabetes management, and tele nutrition.<SUP>3</SUP></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Despite the company&rsquo;s prioritization of health in their printed
words and actual operations, and despite their efforts in fusing of their health, wellness, and nutrition programs, Kroger continues to
sell cigarettes and other tobacco products in their stores.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 12pt"><B><I>Tobacco is a uniquely destructive
product</I></B></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cigarette smoking is the cause of more than 480,000 deaths each year
in the United States. In fact, more than 10 times as many Americans have died prematurely from smoking than from as wars fought by this
country.<SUP>4</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The World Health Organization (WHO) developed the Framework Convention
on Tobacco Control in 2003 to &ldquo;protect present and future generations from the devastating health, social, environmental and economic
consequences of tobacco consumption and exposure to tobacco smoke.&rdquo;<SUP>5</SUP>
Currently, 138 countries and territories, representing 66.5% of the world's population, require picture health warnings on cigarette packages,
while 42 countries and territories are actively moving ahead with plain packaging. &ldquo;Plain packaging includes health warnings on
packages and prohibits tobacco company branding such as colours, logos and design elements.&rdquo;<SUP>6</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">According to the Center for disease Control and Prevention (CDC), &ldquo;Smoking
harms nearly every organ of the body and affects a person&rsquo;s overall health, including weakening of bones, teeth and gum health,
promotes diabetes mellitus, decreased immune function, and can contribute to the onset of cataracts and rheumatoid arthritis.<SUP>7</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As stated in &ldquo;The Public Health Impact of Tobacco&rdquo; by Dr.
Prakash C. Gupta of the Tata Institute of Fundamental Research, health professionals, such as pharmacists, play a role in keeping the
public safe from the harms of tobacco, stating &ldquo;Health professionals need to take on an active supportive role in helping individuals
and communities stop smoking and chewing tobacco and advocate for legislation to protect children and the general public from environmental
tobacco smoke. Only then will this scourge of humanity stop taking its toll.&rdquo;<SUP>8</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>3</SUP>
https://www.kroger.com/health/info</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>4</SUP>
https://www.cdc.gov/tobacco/data_statistics/fact_sheets/health_effects/effects_cig_smoking/index.htm</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>5</SUP>
https://iris.who.int/bitstream/handle/10665/42811/9241591013.pdf?sequence=1
page 5</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>6</SUP>
https://www.prnewswire.com/news-releases/tobacco-plain-packaging-progress-continues-worldwide-with-42-countries-and-territories-moving-forward-with-regulations-302053876.html#:~:text=The%20report%20reveals%20there%20are,picture%20health%20warnings%20in%202001.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>7</SUP>
https://www.cdc.gov/tobacco/data_statistics/fact_sheets/health_effects/effects_cig_smoking/index.htm</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>8</SUP>
https://www.jstor.org/stable/24105879?read-now=1&amp;seq=1#page_scan_tab_contents
Current Science, Vol. 81, #5, pp. 475-481</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-size: 12pt"><B><I>The market for cigarettes is shrinking</I></B></FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Although cigarette smoking remains the leading cause of preventable
disease and death in the United States and cost the United States more than $600 billion&nbsp;in 2018, including more than $240 billion
in healthcare spending and nearly $372 billion in lost productivity<SUP>9</SUP>,
smoking rates continue to fall. Consumption has steadily declined from 42.6% in 1965<SUP>10</SUP>
to 11.5% in 2021.<SUP>11</SUP> In dialogues with shareholders
from the Interfaith Center on Corporate Responsibility (ICCR), Kroger team members have not shared sales figures for tobacco products.
However, with smoking rates decreasing, logic suggests that sales of cigarettes have and will continue to drop.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Cigarette use rates should continue to decline in the United States,
as states have found that increasing taxes on tobacco products has been an&nbsp;effective population-based strategy for decreasing smoking.<SUP>12</SUP>
Additionally, numerous states, cities, and municipalities have passed restrictions on smoking in government buildings, private businesses,
restaurants, and bars.<SUP>13</SUP> Even manufacturers
of cigarettes, such as Altria Group<SUP>14</SUP>, as well
as retailers that feature pharmacy businesses like Walgreens<SUP>15</SUP>
and Walmart<SUP>16</SUP> that sell combustible tobacco
products offer smoking cessation assistance, reflecting the ambivalence of these companies&rsquo; investment in this deadly merchandise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The reputational risk of selling this product is real</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The risk of Kroger selling a product that not only addicts, destroys
the health, and kills the user, but does so while promoting itself as a company that promotes good health is substantial. In Kroger Health&rsquo;s
Purpose, Vision, Mission statement, they announce &ldquo;We strive to feed the human spirit and help people live healthier lives with
everything we do. Our company mission is to improve outcomes by creating solutions that combine health, wellness, and nutrition, while
connecting with people on an emotional and personal level.&rdquo;<SUP>17</SUP>
&ldquo;In everything we do&rdquo; belies their promotion and sale of cigarettes, a product that offers nothing but negative outcomes and
satisfies only needs it creates through its addictive properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For decades, the American Pharmacists Association has opposed the sale
of tobacco products in pharmacies, and as far back as 2012, a study found that more than 75% of pharmacists who responded support legislation
banning the sale of tobacco products in pharmacies. Over 86% of respondents would prefer to work in a pharmacy that does not sell tobacco
products.<SUP>18</SUP> The American Heart Association<SUP>19</SUP>
and the American Lung Association, <SUP>20</SUP> also
support eliminating tobacco sales in retail outlets that contain pharmacies. Moreover, a 2016 study of customer attitudes toward tobacco
sales in pharmacies found that 66.1% of U.S. adults favor prohibiting tobacco sales in retail pharmacy stores, including 46.5% among current
cigarette smokers.<SUP>21</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>9</SUP>
https://www.cdc.gov/tobacco/campaign/tips/resources/data/cigarette-smoking-in-united-states.html</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>10</SUP>
https://www.lung.org/research/trends-in-lung-disease/tobacco-trends-brief/overall-tobacco-trends</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>11</SUP>
https://www.cdc.gov/tobacco/campaign/tips/resources/data/cigarette-smoking-in-united-states.html</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>12</SUP>
Effects of Tobacco Taxation and Pricing on Smoking Behavior in High Risk
Populations: A Knowledge Synthesis - PMC (nih.gov)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>13</SUP>
State
Laws Prohibiting Smoking in Government Buildings, Private Workplaces, Restaurants and Bars (lung.org)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>14</SUP>
Supporting Cessation - Altria</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>15</SUP>
Quit Smoking Answers | Health Answers | Walgreens</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>16</SUP>
walmart.cravingtoquit.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>17</SUP>
https://www.kroger.com/health/about#:~:text=We%20strive%20to%20feed%20the,an%20emotional%20and%20personal%20level.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>18</SUP>
https://bmcresnotes.biomedcentral.com/articles/10.1186/1756-0500-5-413#:~:text=In%201971%2C%20the%20American%20Pharmacists%20Association%20%28APhA%29%20House,keep%20smoking%20cessation%20a%20priority%20%5B%2021%20%5D.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>19</SUP>
https://www.heart.org/-/media/Files/About-Us/Policy-Research/Policy-Positions/Tobacco-Endgame/eliminating-tobacco-sales-in-pharmacies-UCM_467508.pdf</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>20</SUP>
https://www.lung.org/policy-advocacy/public-policy-positions/public-policy-position-tobacco#:~:text=The%20American%20Lung%20Association%20supports%20efforts%20to%20reduce,of%20all%20tobacco%20products%20at%20retailers%20with%20pharmacies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>21</SUP>
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5118143/</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">According to a 2019 study found in the National Library of Medicine,
&ldquo;Pharmacies that sell tobacco are also more likely to encourage its use; tobacco prices are lower in pharmacies relative to other
stores,&nbsp;and chain pharmacies are more likely than independents to stock tobacco products and sell them to minors.<SUP>22</SUP>
The study also found that that only 2% of pharmacists favor the sale of tobacco, while there is widespread public support for tobacco-free
pharmacies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition to selling cigarettes and other tobacco products, offers
for sale a wide variety of smoking cessation products, including a &ldquo;value pack&rdquo; of Nicorette gum for $73.99.<SUP>23</SUP>
Retail outlets that contain pharmacies and publicly promote themselves as champions of healthy living are callously and cynically profiting
from both the disease and the cure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A company or industry&rsquo;s reputation is harmed by the sale of age-restricted
products, like tobacco, to underage customers. Kroger was among the retailers, including others that contained pharmacies, that were publicly
criticized by the U.S. Food and Drug Administration (FDA) for &ldquo;repeatedly selling tobacco products to minors in violation of federal
law&rdquo;.<SUP>24</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Conversely, corporate goodwill is built through actions that benefit
customers, workers and the general public. As a result of CVS Health&rsquo;s decision to eliminate tobacco from its stores in 2014, the
company received praise from the American Cancer Society<SUP>25</SUP>,
President Barack and First Lady Michelle Obama<SUP>26</SUP>,
the American Medical Association, the American College of Pediatrics, the American College of Physicians, the American Academy of Family
Physicians and other medical societies.<SUP>2728</SUP></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Proposal Ask</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The proponents are simply requesting a report on the external public
health costs created by the sale of tobacco products. We are not asking the company to reshape its portfolio of products, but only to
educate itself on the risks to shareholder value, as well as the health of their customers and the public.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>22</SUP>
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6588971/#:~:text=Tobacco%20is%20the%20leading%20preventable%20cause%20of%20death,in%20low-income%20and%20middle-income%20countries%20%28LMICs%29.%2012%2013</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>23</SUP>
https://www.kroger.com/pl/smoking-cessation/22016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>24</SUP>
https://www.nytimes.com/2019/03/04/health/tobacco-cigarettes-minors-walgreens.html</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>25</SUP>
https://www.fightcancer.org/news/acs-can-presents-award-cvs-health-removing-tobacco-products-its-stores</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>26</SUP>
https://www.nbcnews.com/health/health-news/so-long-cigs-michelle-obama-praises-cvs-pulling-tobacco-n22156</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>27</SUP>
https://www.fiercehealthcare.com/practices/physicians-react-to-cvs-anti-tobacco-move</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>28</SUP>
https://www.cbsnews.com/news/medical-community-rallies-behind-cvs-decision-to-stop-tobacco-sales/</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A study conducted by CVS Health following the company decision to discontinue
the sale of tobacco products found that by eliminating some outlets for people to purchase these items, cigarettes purchased nationwide
were impacted. They found &ldquo;While the Company's decision reduced cigarette purchases across all retail settings, those who purchased
cigarettes exclusively at CVS Pharmacy were 38 percent more likely to stop buying cigarettes, and those who purchased three or more packs
per month were more than twice as likely to stop buying cigarettes altogether.&rdquo;<SUP>29</SUP>
The data confirmed there was indeed a public health impact as a result of their decision on tobacco.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Proponents encourage all Kroger Company shareholders to support Proposal
4, requesting the Board of Directors commission and disclose a report on the external public health costs created by the sale of tobacco
products by our company and the manner in which such costs affect the vast majority of its shareholders who rely on overall market returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For more information, please contact me, as noted below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sincerely,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Tom McCaney</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Director, Corporate Social Responsibility</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sisters of St. Francis of Philadelphia</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">tmccaney@osfphila.org</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>29</SUP>
https://www.cvshealth.com/news/community/cvs-health-research-institute-study-confirms-companys-tobacco-re.html</P>


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