Washington, D.C. – News reports today indicate that Kroger and Albertsons, two of the country’s largest supermarket chains, are in merger negotiations, with a deal to be announced as early as this week.

In response, Food & Water Watch Managing Director of Policy Mitch Jones issued the following statement: 

“At a moment when American families are already struggling with skyrocketing food prices from a hyper-consolidated grocery industry, the notion of another mega-merger between corporate food giants couldn’t be more alarming. The federal government’s own analysis finds that supermarket consolidation typically leads to price hikes. For the sake of everyday consumers, farmers and workers, the Biden administration should be rejecting this terrible, greed-driven proposal out of hand.”

Recently Food & Water Watch issued a report detailing the deepening consolidation crisis in the country’s grocery industry, and what it means for consumers. In the report — “The Economic Cost of Food Monopolies: The Grocery Cartels” — Food & Water Watch examined the market share of the dominant companies across 55 grocery categories. The research found that more than 60 percent of the analyzed grocery categories are tight oligopolies/monopolies. Just eight of the 55 categories (15 percent) could be considered highly competitive. 

The research also showed an alarming trend towards fewer, bigger stores. From 1993 to 2019, the number of grocery stores nationwide declined by roughly 30 percent, as the combined market share of the four largest grocery retailers tripled to 69 percent. Kroger and Alberstons already own a staggering 22% of the market share of grocery stores, with their own vertically integrated supply chains. 

Contact: Seth Gladstone – [email protected]

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