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Today, U.S. District Judge Adrienne Nelson granted the Federal Trade Commission’s motion for a preliminary injunction to block the grocery megamerger between Kroger and Albertsons. Groundwork Collaborative Executive Director Lindsay Owens reacted with the following statement:
“Today’s decision is a major win for shoppers and grocery workers. Families have been paying the price of unchecked corporate power in the food and grocery sector, and further consolidation would only worsen this crisis.
“FTC Chair Lina Khan’s approach is the blueprint to deliver lower prices, higher wages, and an economy that works for everyone. The rebirth of antitrust enforcement has protected consumers against the worst of corporate power in our economy and it would be wise to continue this approach.”
Email press@groundworkcollaborative.org to speak with one of Groundwork’s experts about the Kroger-Albertsons merger and grocery prices.
BACKGROUND
- In her decision, Judge Nelson wrote that the merger would raise the cost of groceries for millions of consumers. Kroger is the second-largest grocery in the country, while Albertsons is the fourth-largest.
- The merger would have created a massive new grocery retailer that would control 22% of the retail food market, and result in two giant grocers (Kroger/Albertsons and Walmart) controlling more than 70% of the grocery market in over 160 cities.
- During the trial, it was revealed that a top pricing executive at Kroger wrote in an email, “On milk and eggs, retail inflation has been significantly higher than cost inflation.” These grocers used inflation to hike prices and supercharge their profits.
- A Groundwork report found that families are now paying 25+ percent more for groceries than they were before the pandemic, outpacing overall inflation. The report recommended antitrust enforcement against further mergers and consolidation in the food industry, like the Kroger-Albertsons merger.
This content originally appeared on Common Dreams and was authored by Newswire Editor.