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The Pickle Guys at Grand & Essex sell sauerkraut. I've never had it, but I've liked everything I've bought from there, so I assume the sauerkraut is also good.
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East Village Meat Shop on 2nd Ave and 10th Street has it and most likely the Hungarian shop (Yorkville Meats) on 2nd Ave and 80 most likely does, too. (I'm assuming you mean already prepared. At either of these places, you can good quality canned or jarred versions which will be improved if you simmer them with white wine or dry vermouth and a few pieces of granny smith apple.)
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