Up From The Cereal Aisle

Ron Burkle was just 13 when he began bagging groceries at his dad's store. He stayed with the grocery business, soaking up every detail. But 16 years later, after working his way up to vice-president of a local chain, it was his turn to get bagged: After bungling a $100 million buyout of the company--despite persuading Warren Buffet to take a 50% interest--Burkle says he was fired on the spot.

Burkle's early stumble only whetted his appetite for action. "Getting fired was the best thing that ever happened to me," he says now. He's right. Today, Ronald Burkle, now 42, has emerged as a new power broker in the rapidly consolidating supermarket industry. On Feb. 6, his Los Angeles-based Yucaipa Cos. announced an agreement to acquire Dominick's Finer Foods Inc., a Chicago chain of 101 supermarkets, for $750 million. That deal comes on the heels of a $1.5 billion merger of Ralphs Grocery Co., a 168-store California chain, with Burkle's other Southern California holdings.