The move follows the sale of the grocer's convenience store business earlier this year for $2.15bn.
Kroger has also made several recent investments to ramp up its e-commerce capability.
Earlier this year, the retailer bought a stake in British online supermarket Ocado, acquired meal kit firm Home Chef, and launched its grocery delivery service Kroger Ship.
The American retailer said it has hired investment bank Goldman Sachs for the review of it Turkey Hill business.
"Turkey Hill is a unique CPG food business within Kroger Manufacturing as it is a strong, nationally-known brand," said Erin Sharp, group vice president for Kroger Manufacturing.
"Turkey Hill's successful and recognizable ice cream and beverage products have the potential for greater growth outside of our company. We want to ensure Turkey Hill has every opportunity to meet its full potential."
Turkey Hill, which has nearly 800 workers, produces products such as milk, ice cream, iced teas and fruit drinks.
Today, Kroger owns 38 food manufacturing plants, including 19 dairies, which produce the grocer's portfolio of house brands.