Does Aldi Own Trader Joe’s In 2024? You’ll Be Surprised

Trader Joe’s—with its kitschy branding, unique products, and devoted fanbase—seems like a world apart from Aldi’s no-frills approach. But the two chains are connected through their German roots. You may have heard rumors that the cult-favorite grocer is actually owned by its bargain-priced cousin. But does Aldi really own Trader Joe‘s? Read on for an in-depth look at the surprising relationship between these two retail titans.

Untangling the Aldi Family Tree

To understand how Aldi and Trader Joe’s are linked, we need to go back to post-World War II Germany. The Aldi chain was founded in 1946 by brothers Karl and Theo Albrecht. By 1960, Aldi had grown to over 300 stores across Germany.

But that year, a dispute led Karl and Theo to split the company into two separate entities:

• Aldi Nord: Covering northern Germany and controlled by Theo
• Aldi Süd: Covering southern Germany and run by Karl

This divide set the groundwork for the two autonomous Aldi groups we see today. Aldi Nord and Aldi Süd have distinct operations across Europe. And in the US, it’s Aldi Süd that owns the Aldi stores we shop at—over 2,100 locations across 38 states.

Back across the Atlantic, Aldi Nord was looking for ways to crack into the American market in the late 1970s without directly competing against Aldi Süd. Their solution? Acquiring an upstart California grocery chain called Trader Joe’s.

Trader Joe’s Pre-Aldi Ownership

Trader Joe’s has humble beginnings tracing back to Pasadena, CA in 1967. Founder Joe Coulombe had taken over a small chain of convenience stores called Pronto Markets. He quickly reimagined them into a new style of grocery store.

The new Trader Joe’s stores bucked many supermarket conventions of the time. According to Coulombe, they would be selling “healthful, unusual and surprising foods…priced competitively.”

This meant stocking Trader Joe’s with innovative products like fresh-squeezed orange juice, vitamins, and affordable wine—categories largely unheard of in regular grocers. Coulombe also decorated with maritime themes and staffed stores with employees donning goofy Hawaiian shirts.

By the late 1970s, Coulombe had grown Trader Joe’s to over 20 locations in southern California. And Trader Joe’s unique approach caught the eye of Aldi Nord executives across the pond.

Aldi Nord Acquires Trader Joe’s in 1979

In 1979, Theo Albrecht and Aldi Nord purchased Trader Joe’s, adding the up-and-coming chain into their portfolio as their entry into the US market. Fun fact: the purchase price was reportedly just $100 million!

However, Aldi Nord opted to mostly stay hands-off with Trader Joe’s after the acquisition. They recognized that much of the chain’s success came from its unique culture and approach that stood apart from a traditional grocer.

So Trader Joe’s has operated independently from Aldi since the purchase over 40 years ago. And that hands-off approach has paid off, with Trader Joe‘s growing into a beloved, 500+ store operation today with over $16 billion in annual sales.

Aldi Süd vs. Trader Joe’s: How Do They Compare?

With Aldi Nord overseeing Trader Joe’s separately from Aldi Süd’s US stores, significant differences have emerged between the two chains:

• Store size: The average Trader Joe’s is about 10,000 sq ft, larger than Aldi’s 8,000 to 12,000 sq ft stores.

• Product range: Trader Joe’s stocks ~4,000 items focused on innovative prepared foods, versus Aldi’s ~1,400 products emphasizing basics and staples.

• Price points: While both offer great values, Aldi edges out Trader Joe’s with rock-bottom prices on everyday items.

• Branding: Trader Joe’s has its whimsical, sea-faring branding stand apart from Aldi’s no-frills, “shopper-first” ethos.

• Shopping experience: Trader Joe’s encourages browsing discoveries, while Aldi offers ultra-efficient grocery runs.

So while Aldi sticks to the bare basics, Trader Joe’s provides foodies and adventurous shoppers an affordable way to indulge their wildest culinary whims. The chains cater to different audiences—but Aldi Nord reaps the rewards of both.

Do Aldi and Trader Joe’s Share Suppliers or Products?

Since operations are distinct, Aldi and Trader Joe’s do not source or manufacture private label items together. But they are likely tapping into some of the same industry suppliers, which may result in some uncanny product resemblances between the two chains’ house brands.

For example, Aldi released their “Everything but the Bagel” seasoning right after Trader Joe’s version became a best-seller. And you can find European-style butter cookies at Aldi and Trader Joe’s with nearly identical packaging.

However, out of the combined 5,000+ own-brand products sold across the two chains, these are just a tiny sample of items where Trader Joe’s or Aldi may have taken inspiration from the other’s successes. They do not indicate a shared supply or manufacturing process between the two companies.

Which Chain Should You Shop: Aldi or Trader Joe’s?

When it comes down to it, Aldi and Trader Joe’s each have their strengths as grocery destinations:

Aldi is the spot for saving on workhorse pantry staples, everyday basics, and kitchen essentials. You can easily save 30% or more switching regular shopping trips to Aldi.

Trader Joe’s excels at providing unique, indulgent foods you won‘t find elsewhere at an affordable price. It‘s the perfect place to stock up on fun treats and easy weeknight dinner ideas.

My advice? Take advantage of both. Use Aldi for 90% of your basic grocery shopping. Then pop into Trader Joe’s when you want to treat yourself without breaking the bank. Combining these two sister companies means you get the best of both worlds—low prices and foodie finds—all thanks to the Aldi family.

So while they operate independently, the Aldi connection helped Trader Joe’s become the beloved chain it is today. Next time you’re browsing their aisles, take a moment to appreciate just how intertwined this dynamic duo really is.