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The Journal.

Why the FTC is Challenging a $25 Billion Supermarket Merger

The Journal.

The Wall Street Journal

Business News, News, Daily News

4.25.8K Ratings

🗓️ 29 February 2024

⏱️ 18 minutes

🧾️ Download transcript

Summary

The Federal Trade Commission is suing to block a $25 billion merger between two supermarket giants: Albertsons and Kroger.WSJ’s Patrick Thomas unpacks the deal and what it would mean for the companies, workers and shoppers. Further Reading: -FTC Sues to Block $25 Billion Kroger-Albertsons Merger -It’s Been 30 Years Since Food Ate Up This Much of Your Income Further Listening: -Food Fight: PepsiCo vs. Carrefour -Are Rotisserie Chickens ‘Inflation-Proof’? Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

There are lots of supermarket chains around the country.

0:03.0

There's Shaws and Fred Meyer, food for less and Ralph's. But many of these

0:18.8

chains are owned by just two companies.

0:25.2

Albertsons and Kroger.

0:29.1

I think most people know what a Kroger is. Albertsons maybe a little bit less so, but most people know what these are,

0:32.4

but they don't't I don't think

0:33.4

they grasp how many different brands they have. That's our colleague Patrick Thomas.

0:39.1

He covers the food supply chain, from agriculture to grocery stores.

0:46.1

For example, my parents shop at a grocery store

0:48.8

at Omaha, Nebraska called Bakers.

0:51.4

Who owns Bakers, you ask?ger's owned them for over 20 years and I can use their

0:56.1

phone number for like the loyalty program at the Marianos here in Chicago, both are Kroger stores.

1:04.0

We go on vacation to Arizona.

1:06.2

There's a fries, and they once again use the same phone number,

1:08.8

it's still a Kroger.

1:09.7

So there's all these different brands, and they're,

1:11.8

you know, the more name-brand stuff they're pretty

1:14.5

much just two companies. But Albertsons and Kroger are trying to merge their

1:20.2

companies to become a supermarket empire. In October of

1:25.0

2022 they announced a 25 billion dollar deal that would combine their over 5,000

1:32.1

stores around the country. The company said this move

1:35.6

would allow them to slash prices for consumers. But on Monday, the Federal Trade Commission filed a lawsuit to block the deal,

...

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