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The Takeaway

Exploring Consumer Protection: The Kroger-Albertsons Merger

The Takeaway

WNYC and PRX

Politics, Wnyc, Daily News, Radio, Takeaway, National, News, News Commentary

4.6 • 716 Ratings

🗓️ 5 May 2023

⏱️ 17 minutes

🧾️ Download transcript

Summary

Original Air Date: March 3, 2023 As Americans faced soaring food prices, a proposed $24.6 billion dollar megamerger between Kroger and Albertsons was announced on October 14, 2022. These are two of the largest grocery chains in the country, accounting for more than 5,000 locations and employing over 700,000 people across its banner.  The United Food and Commercial Workers and Rocky Mountain Farm Workers Union- two of the nation's largest and oldest unions- are opposed to the merger citing its potentially monopolizing effects on the grocery industry and America's food system.  Back in 2015, Carol McMillian, a King Soopers groceryworker and a member of UFCW 7, remembers when Albertson’s acquisition of Safeway impacted her personally. Today, she joins us along with Dan Waldvogle, Director of Rocky Mountain Farmers Union, to talk about why they are a part of a broad coalition to ‘stop the merger.’ They spoke with The Takeaway about how this potential megamerger impacts some of America’s most vulnerable workers and consumers. Editor's Note: We reached out to a Kroger's Spokesperson for comment. If interested, read below. “Our proposed merger with Albertsons is about growing jobs and careers, and we expect the merger to create meaningful and measurable benefits for our associates. We will invest an additional $1 billion to increase wages and expand our industry-leading benefits starting on Day one following close, and we expect to provide new and exciting career growth opportunities for many associates. This commitment builds on our track record of supporting associates, including the incremental $1.9 billion we have invested in wages and comprehensive benefits since 2018. The Kroger Family of Companies is one of America’s largest unionized workforces and this merger also secures the long-term future of union jobs by establishing a more competitive alternative to large, non-union retailers. Kroger is a customer-focused organization, and our ability to deliver value to customers is rooted in providing lower prices and more choices. This is of critical importance to us, and we have a long track-record of investing in prices to lower costs, including investing more than $5 billion in lowering prices since 2003. As we have in past mergers, we will hold ourselves accountable to our customer commitments. This includes investing $500 million to lower prices starting on day one post close. With Albertsons, we will also offer customers a broader selection of fresh products and expand Our Brands portfolio to deliver more value without compromise.”

Transcript

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0:00.0

One third of all grocery stores have closed in the last 25 years, leaving over 10% of Americans in areas that lack easy access to fresh food.

0:16.4

On November 29th of last year, a U.S. Senate subcommittee held a hearing with the CEOs of Kroger

0:23.1

and Albertson grocery store chains to examine implications of a proposed $24.6 billion

0:30.1

merger between the supermarket giants. Here's Senator Amy Klobuchar, Democrat from Minnesota and chair of the subcommittee.

0:40.3

Going into a drugstore or a gas station or even a fast food place is still not the same as going into a regular grocery store.

0:52.3

This has serious implications for health and safety,

0:57.0

particularly for the over 6 million American children who don't have enough to eat.

1:03.0

Back in 2015, the Albertson's chain acquired Safeway Supermarkets.

1:08.0

And Cloberchard cited that earlier acquisition as emblematic of failed policy.

1:13.9

And she pointed to evidence that this earlier merger left communities with fewer grocery alternatives

1:20.0

and fewer jobs. Here is a pretty sad tale. In less than a year, the grocery chain that bought a majority of these

1:28.4

stores filed for bankruptcy. As a result, over 100 of the divested stores were closed for good

1:35.0

and over 8,000 employees were laid off.

1:39.5

My name is Carol McMillian. I am currently a grocery worker at King Supers, Kroger. I was also a grocery worker at

1:48.5

Safeway. And I am a proud UFCW Local 7 member and have been for almost 20 years. Carol remembers

1:57.0

when Albertson's bought Safeway, because the effect on her as a grocery worker was

2:01.9

very personal. And today, as a member of the United Food and Commercial Workers Union,

2:06.9

she's part of a coalition of labor organizations opposing the proposed Kroger-Albertson merger.

2:13.3

Farmers unions are also part of the coalition. My name is Dan Waldvogel.

2:18.1

I'm the director of Rocky Mountain Farmers Union.

2:20.8

I also spent a majority of my career as a ranch worker.

2:25.2

Dan and Carol talked with me about the reasons that they're working together to fight this merger.

...

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