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‘Spirit of ownership’ sets Kinney’s culture apart

‘Employee-owners are all in and motivated to swim strongly in the same direction.’

3 min read

GOUVERNEUR, N.Y. — Kinney 91Ƶs was founded in 1903 by pharmacist Burt Orrin Kinney in the small village of Gouverneur, N.Y., near the Adirondack Mountains. Today, Kinney is a 100% employee-owned retail pharmacy chain with 97 locations across upstate New York and Vermont.

The company provides an extensive range of pharmacy services — free of charge — including automatic prescription refills, text alerts, prescription delivery, Medicare Part D plan comparisons and its Life Vials program. Life Vials are specially labeled prescription bottles containing patients’ complete medical information, along with window stickers and refrigerator magnets to help first responders quickly access essential details during in-home emergencies. All Kinney pharmacies also feature secure medication collection kiosks.

Kinney pharmacists administer all vaccines recommended for adults 18 and older by the CDC (Centers for Disease Control and Prevention), and they offer health education programs and referrals covering colorectal cancer screening, smoking cessation, diabetes management, heart disease prevention and opioid addiction awareness.

According to chief executive officer David Warner, the company’s defining strength is its ESOP (employee stock ownership plan) structure, which profoundly shapes both its operations and culture. This “spirit of ownership” aligns goals across the organization, encourages long-term decision making and empowers employees to have a voice in how the business is run. It also enhances Kinney’s ability to recruit and retain top talent and enables teams to respond swiftly to changing market conditions — a frequent necessity in community pharmacy.

One recent example highlights this agility. When Rite Aid announced it would be permanently closing its doors, Kinney acted quickly to reduce the anticipated strain on both patients and store teams. Within just 17 days, the company launched 1-2-3 Transfer Me, a HIPAA-compliant self-service tool that allows patients to transfer prescriptions in three simple steps — without pharmacist involvement, which was required by New York State law at the time. All 1-2-3 requests are routed directly to the Patient Care Team members, who then contact providers to obtain new prescriptions. Kinney also created a dedicated phone line for those without internet access. To date, the tool has facilitated thousands of prescription transfers.

The company also responded swiftly to the Rite Aid announcement by acquiring two of its Vermont locations. In August, Kinney opened its 22nd and 23rd drug stores in the Green Mountain State, located in Springfield and Brattleboro. Both stores were transitioned seamlessly, with no interruption to patients or customers — and many former Rite Aid employees chose to join the Kinney family.

Kinney also anticipated widespread public confusion amid the rapidly shifting vaccination landscape and quickly introduced Ask Burt — an AI Vaccine Eligibility Assistant named after the company’s founder. Anyone can use Ask Burt; individuals do not need to be Kinney patients or customers. By visiting kinneydrugs.com/burt/, users can chat with Burt using plain‑language questions. In response, Burt identifies which vaccinations they may be eligible to receive and, when appropriate, provides a link to schedule an appointment at their preferred Kinney pharmacy.

Ask Burt is an Augmented Intelligence agent powered by a clinical knowledge base developed and maintained by Kinney’s team of clinical pharmacists. By comparing user inputs with this knowledge base, Burt produces a personalized list of seasonal vaccines for which a user may qualify — including COVID‑19, influenza, RSV, pneumonia and shingles. As vaccine recommendations continue to evolve, Burt helps users stay informed and up to date.

“We were thrilled to introduce Burt to help people determine which vaccines they may be eligible for,” said Kinney president John Marraffa. “Vaccine guidance can be complex, with many factors influencing eligibility. Burt makes the process engaging and interactive, helping people learn in a way that feels easy and accessible.”

“We are very proud of our recent achievements — and I attribute these successes directly to our employee‑owners. They are ‘all in’ and motivated to swim strongly in the same direction, even when the current is against us. Our ownership structure has allowed us to grow while preserving the invaluable institutional knowledge of our long‑tenured employees, some of whom have been with us for 20, 30, even 40-plus years,” said Warner. “It’s an enviable foundation that positions us to remain strong and resilient for the future.”


KINNEY DRUGS

KEY EXECUTIVES 

John Marraffa, President, Kinney 91Ƶs

David Warner, President & CEO, KPH Healthcare Services Inc.

HEADQUARTERS 

29 E. Main St., Gouverneur, N.Y. 13642

Phone: (315) 287-3600 

Website: kinneydrugs.com 

TRADE CLASS — 91Ƶ Chain

FULL-YEAR RESULTS 

Overall sales — $1.04 billion* 

Pharmacy sales — $845 million* 

Number of stores — 97 

Number of pharmacies — 97

Number of states operating — 2 (NY and VT)


*CDR estimate.

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