Statement of Food & Water Watch Executive Director Wenonah Hauter
Washington, D.C. —“Today, the Federal Trade Commission appropriately sued to block the merger between Sysco and US Foods, demonstrating that U.S. antitrust laws can have some teeth. The proposed deal between the top two broadline food distribution firms in the country would have created a national monopoly controlling three-quarters of the foodservice delivery market. The proposed merger could have imposed price hikes on restaurants, cafeterias, hospitals and stadiums that would harm consumers and businesses, undermining market competition.
“Finally, the federal antitrust cops have said ‘enough is enough’ to the wave of mega-mergers sweeping the food industry. The last year has seen the FTC and Justice Departments rubber stamp a host of giant agribusiness and food industry deals that have further consolidated an already over-concentrated sector of the economy.
“Today’s FTC action gives consumers, farmers and small and medium-sized businesses a ray of hope that antitrust authorities can act decisively to prevent mergers that create monopolies in the food system.”
Contact: Kate Fried, Food & Water Watch, (202) 683-4905, kfried(at)fwwatch(dot)org.