Trader Joe’s and Aldi are entirely separate grocery chains with unique identities, but they share an intertwined and intriguing history — one that begins in post-war Germany and hinges on a family split over whether to sell cigarettes.

The result was two companies, Aldi Nord and Aldi Süd, which now operate as independent grocery empires. In the United States, that split shows up in an unexpected way: Aldi Süd runs Aldi stores across the country, while Aldi Nord owns Trader Joe’s.

It’s a connection that surprises many shoppers, especially given how different the stores feel. One has fewer frills and leans into discounted basics (plus some German staples), while the other focuses on exciting flavors and ready-to-eat items.

The Aldi story begins in Essen, Germany, in 1913, when the father of two brothers, Karl and Theo Albrecht, opened a small baked goods shop. Their mother, Anna, opened a grocery store a year later. Once Karl and Theo returned home following World War II, they took over the family business in 1945 and began building a grocery chain that prioritized a small, curated selection of products, minimal overhead, and consistently low prices.

According to Aldi Nord’s archived company historyafter the brothers opened their first self-service store in Essen-Schonnebeck, they expanded rapidly, reaching 100 stores in North Rhine-Westphalia by 1955. In 1961, they formally split the business: Karl took the south, and Theo claimed the north, setting up two separate companies now known as Aldi Süd and Aldi Nord.

The reason behind the split was never made public. Over the years, publications includingThe GuardianandThe Houston Chroniclehave pointed to a falling-out over cigarette sales as the cause of the break — specifically, that Theo was in favor of selling them and Karl wasn’t.

The cigarette dispute is by far the most commonly cited reason for the divide, although it has never been confirmed by the Albrecht family, Aldi Nord, or Aldi Süd. Given the family’s longstanding commitment to privacy — neither brother gave a media interview after the early 1950s — the full story behind the split has remained out of view. But one thing is clear: they didn’t agree about how to run the business.

Today, the two companies operate entirely independently and have no formal connection. Aldi Süd runs all Aldi-branded stores in the United States, where it first entered the market in 1976. The company lists the U.S. among its eleven international markets, and its American website, aldi.usreflects the group’s global branding.

Trader Joe’s, meanwhile, has been owned by the family behind Aldi Nord since 1979. According to Trader Joe’s FAQ, the company has no business or ownership relationship with Aldi Süd and is not connected to its U.S. stores.

Though the two chains share a focus on private-label products and minimal store design, they are distinct businesses with separate sourcing, leadership, and strategy. The next time you walk into a Trader Joe’s, you’re technically stepping into the domain of Aldi Nord — a company that, despite its name, plays no role in operating Aldi stores in the U.S.

If you’re in Germany, which store you go to — Aldi Nord versus Aldi Süd — will be determined simply by where you are in the country. In the U.S., feel free to pick the chain that best suits your needs. One is a destination for no-frills groceries, the other for cult-favorite snacks and frozen finds, and we happen to be fans of both.