Today the Federal Trade Commission (FTC) and a bipartisan group of nine state attorneys general filed a lawsuit to block the proposed merger between grocery chains Kroger and Albertsons, citing antitrust concerns over higher prices for consumers and harms to workers.
A combined Kroger-Albertsons would create the second-largest grocery chain in the United States, giving the combined company control of 15% of the national grocery market.
In response, Farm Action issued the following statement which can be attributed to its president, Angela Huffman:
“FTC’s action today is a critical step forward for America’s farmers, workers, and consumers. A combined Kroger-Albertsons would have catastrophic impacts across our entire food system — from decreasing the number of purchasers for farmers to sell to, cutting jobs for workers, and increasing prices for consumers, this is a bad deal for everyone except the companies’ shareholders.
“By filing to block this mega-merger, FTC is fighting to shield farmers from getting further squeezed by retail market consolidation — it’s a critical move on the heels of the 2022 Census of Agriculture, which reported an alarming loss of farmers and ranchers. The consolidation of grocery stores across the U.S. decreases the number of purchasers that farmers can sell to, and farmers often get paid less as a result — today farmers earn a meager 15 cents from every dollar consumers spend at the supermarket while corporate retailers reap record profits. A combined Kroger-Albertsons would greatly exacerbate this devastating trend. Thanks to FTC for acting to thwart this catastrophic plan.”
FTC’s Kroger-Albertsons lawsuit marks one of the first merger trials since the FTC and DOJ updated the agencies’ merger guidelines in accordance with President Biden’s Executive Order on Promoting Competition in the American Economy that calls for greater scrutiny of mergers.
Farm Action has taken the following actions to oppose the merger:
- To educate policymakers, Farm Action submitted a statement for the record on the proposed merger for the Congressional hearing.
- Farm Action’s blog brings attention to the downstream effects of retail consolidation on farmers, consumers, and other small retailers.
- Farm Action moderated a roundtable discussion to raise awareness about the proposed merger featuring policy experts, consumers, and grocery workers.
- Farm Action is participating in the Stop the Merger Coalition led by UFCW to work collaboratively with others in this fight.
Media Contact: Jessica Cusworth, jcusworth@farmaction.us, 202-450-0887
