Connect with us

CBS News

FTC sues to block Kroger-Albertsons merger, saying it could push grocery prices higher

Avatar

Published

on


Colorado Attorney General files lawsuit to block merger between Kroger and Albertsons


Colorado Attorney General files lawsuit to block merger between Kroger and Albertsons

02:02

The Federal Trade Commission on Monday sued to block a proposed merger between grocery giants Kroger and Albertsons, saying the $24.6 billion deal could result in higher prices for millions of American consumers.

The FTC filed a lawsuit in U.S. District Court in Oregon, alleging that the deal is anticompetitive and could harm shoppers by boosting prices for groceries and other essential household items. The merger could also result in lower quality products and services, as well as limit shoppers’ options for where to buy groceries, the agency alleged. 

The FTC was joined in the suit by eight state attorneys general and the District of Columbia.

Kroger and Albertsons, two of the nation’s largest grocers, agreed to merge in October 2022. But grocery costs have soared since the pandemic, pushing Americans to spend more of their income on food than they have in 30 years and prompting some critics to point to corporate “greedflation” as a cause.

Given high food-price inflation, the merger was bound to get tough regulatory scrutiny. 

“This supermarket mega merger comes as American consumers have seen the cost of groceries rise steadily over the past few years,” said Henry Liu, Director of the FTC’s Bureau of Competition, in a statement

He added, “Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today.”

U.S. prices for food eaten at home typically rise 2.5% per year, but in 2022 they rose 11.4%, and in 2023 they rose another 5%, according to government data. Inflation is cooling, but gradually.

Bigger rivals 

The companies said a merger would help them better compete with Walmart, Amazon, Costco and other large rivals. Together, Kroger and Albertsons would control around 13% of the U.S. grocery market; Walmart controls 22%, according to J.P. Morgan analyst Ken Goldman.

Kroger, based in Cincinnati, Ohio, operates 2,750 stores in 35 states and the District of Columbia, including brands like Ralphs, Smith’s and Harris Teeter. Albertsons, based in Boise, Idaho, operates 2,273 stores in 34 states, including brands like Safeway, Jewel Osco and Shaw’s. Together the companies employ around 700,000 people.

The FTC, which said the proposed deal would be the largest grocery merger in U.S. history, said it would also erase competition for workers, threatening their ability to win higher wages, better benefits and improved working conditions.

The Biden administration has also shown a willingness to challenge big mergers in court. Last month, the Justice Department sued to block a proposed merger between JetBlue Airways and Spirit Airlines.

The action by the FTC and the states follows lawsuits filed earlier this year in Colorado and Washington to block the merger. The states that joined the FTC lawsuit Monday are Arizona, California, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming.

Kroger’s pledge to lower prices

Kroger has promised to invest $500 million to lower prices as soon as the deal closes. It said it also invested in price reductions when it merged with Harris Teeter in 2014 and Roundy’s in 2016. Kroger also promised to invest $1.3 billion in store improvements at Albertsons as part of the deal.

Last year, C&S Wholesale Grocers agreed to purchase 413 stores and eight distribution centers that Kroger and Albertsons agreed to divest in markets where the two companies’ stores overlapped. C&S said it would honor all collective bargaining agreements with workers.

Still, the United Food and Commercial Workers union, which represents 835,000 grocery workers in the U.S. and Canada, voted last year to oppose the merger, saying Kroger and Albertsons had failed to be transparent about the potential impact it would have on workers.

The union was also critical of a $4 billion payout to Albertsons shareholders that was announced as part of the merger deal. Several states, including Washington and California, tried unsuccessfully to block the payment in court, saying it would weaken Albertsons financially.

Kroger and Albertsons had hoped to close the deal early this year. But the two companies announced in January that it was more likely to close in the first half of Kroger’s fiscal year. Kroger’s fiscal second quarter ends August 17.



Read the original article

Leave your vote

CBS News

A study to devise nutritional guidance just for you

Avatar

Published

on


It’s been said the best meals come from the heart, not from a recipe book. But at this USDA kitchen, there’s no pinch of this, dash of that, no dollops or smidgens of anything. Here, nutritionists in white coats painstakingly measure every single ingredient, down to the tenth of a gram.

Sheryn Stover is expected to eat every crumb of her pizza; any tiny morsels she does miss go back to the kitchen, where they’re scrutinized like evidence of some dietary crime.

Stover (or participant #8180, as she’s known) is one of some 10,000 volunteers enrolled in a $170 million nutrition study run by the National Institutes of Health. “At 78, not many people get to do studies that are going to affect a great amount of people, and I thought this was a great opportunity to do that,” she said.

precision-nutrition-study-participant.jpg
Sheryn Stover participates in the Nutrition for Precision Health Study, to help tailor dietary recommendations according to an individual’s genes, culture and environment.

CBS News


It’s called the Nutrition for Precision Health Study. “When I tell people about the study, the reaction usually is, ‘Oh, that’s so cool, can I do it?'” said coordinator Holly Nicastro.

She explained just what “precise” precisely means: “Precision nutrition means tailoring nutrition or dietary guidance to the individual.”

The government has long offered guidelines to help us eat better. In the 1940s we had the “Basic 7.” In the ’50s, the “Basic 4.” We’ve had the “Food Wheel,” the “Food Pyramid,” and currently, “My Plate.”

govt-nutrition-recommendations.jpg

CBS News


They’re all well-intentioned, except they’re all based on averages – what works best for most people, most of the time. But according to Nicastro, there is no one best way to eat. “We know from virtually every nutrition study ever conducted, we have inner individual variability,” she said. “That means we have some people that are going to respond, and some people that aren’t. There’s no one-size-fits-all.”

The study’s participants, like Stover, are all being drawn from another NIH study program called All Of Us, a massive undertaking to create a database of at least a million people who are volunteering everything from their electronic health records to their DNA.  It was from that All of Us research that Stover discovered she has the gene that makes some foods taste bitter, which could explain why she ate more of one kind of food than another.

Professor Sai Das, who oversees the study at Tufts University, says the goal of precision nutrition is to drill down even deeper into those individual differences. “We’re moving away from just saying everybody go do this, to being able to say, ‘Okay, if you have X, Y and Z characteristics, then you’re more likely to respond to a diet, and somebody else that has A, B and C characteristics will be responding to the diet differently,'” Das said.

It’s a big commitment for Stover, who is one of 150 people being paid to live at a handful of test sites around the country for six weeks – two weeks at a time. It’s so precise she can’t even go for a walk without a dietary chaperone. “Well, you could stop and buy candy … God forbid, you can’t do that!” she laughed.

While she’s here, everything from her resting metabolic rate, her body fat percentage, her bone mineral content, even the microbes in her gut (digested by a machine that essentially is a smart toilet paper reading device) are being analyzed for how hers may differ from someone else’s. 

Nicastro said, “We really think that what’s going on in your poop is going to tell us a lot of information about your health and how you respond to food.”  

microbe-reader.jpg
Microbiome analysis – studying microbes and genetic material found in the stool samples of program participants – is one of the components of the Nutrition for Precision Health Study. 

CBS News


Stover says she doesn’t mind, except for the odd sounds the machine makes. While she is a live-in participant, thousands of others are participating from their homes, where electronic wearables track all kinds of health data, including special glasses that record everything they eat, activated when someone starts chewing. Artificial intelligence can then be used to determine not only which foods the person is eating, but how many calories are consumed.

This study is expected to be wrapped up by 2027, and because of it, we may indeed know not only to eat more fruits and vegetables, but what combination of foods is really best for us.  The question that even Holly Nicastro can’t answer is, will we listen? “You can lead a horse to water; you can’t make them drink,” she said. “We can tailor the interventions all day. But one hypothesis I have is that if the guidance is tailored to the individual, it’s going to make that individual more likely to follow it, because this is for me, this was designed for me.”

      
For more info:

     
Story produced by Mark Hudspeth. Editor: Ed Givnish. 


“Sunday Morning” 2024 “Food Issue” recipe index
Delicious menu suggestions from top chefs, cookbook authors, food writers, restaurateurs, and the editors of Food & Wine magazine.



Read the original article

Leave your vote

Continue Reading

CBS News

A new generation of shopping cart, with GPS and AI

Avatar

Published

on


A new generation of shopping cart, with GPS and AI – CBS News


Watch CBS News



At a Price Chopper outside Kansas City, shoppers are test driving the new Caper Cart, featuring digital screens, GPS, cameras equipped with artificial intelligence, and packaging scanners that spit out coupons. Correspondent Jonathan Vigliotti looks at the technology used to “reinvent the wheel” of the shopping cart.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

CBS News

“All hands on deck” for Idaho’s annual potato harvest

Avatar

Published

on


“All hands on deck” for Idaho’s annual potato harvest – CBS News


Watch CBS News



In Idaho, harvest season means some high schools offer students a two-week “spud break,” when they help farmers get their potatoes out of the ground and into the cellar. And in some cases, their teachers join in. Correspondent Conor Knighton reports.

Be the first to know

Get browser notifications for breaking news, live events, and exclusive reporting.




Read the original article

Leave your vote

Continue Reading

Copyright © 2024 Breaking MN

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.