Press Releases

WASHINGTON – Today, Representative Mary Sattler Peltola (AK-AL) joined an amicus brief urging the Federal District Court for the District of Oregon to grant the Federal Trade Commission’s (FTC) request for a preliminary injunction in the Kroger-Albertson’s merger case. The brief outlines three major concerns with the merger: harm to consumers, harm to workers, and the growing consolidation of grocery chains leading to monopolistic practices.

The full brief can be read here. 

“I’ve been very clear how devastating this merger would be for Alaskans,” said Rep. Peltola. “I signed onto this bipartisan brief to protect Alaskan jobs and keep produce on our shelves. This is a collective effort in the right direction.”

Kroger owns Fred Meyer and its 12 Alaskan stores. Albertsons owns Carrs and Safeway and their 35 Alaskan stores. The proposed merger included selling 14 Alaskan Carrs-Safeway stores.

The FTC’s current challenge to the Kroger-Albertson’s merger, which threatens 579 stores nationwide, charges that the proposed deal will eliminate competition, leading to higher prices and lower quality products at stores. These negative impacts were seen in 2015 when Albertsons merged with Safeway resulting in store closures and higher consumer costs. Additionally, the last time a major grocery merger occurred in Alaska, seven stores closed, deepening food insecurity concerns for countless families. 

A potential Kroger-Albertson’s merger would also limit labor competition, reducing workers’ ability to negotiate higher wages, better benefits, and improved working conditions. For that reason, the FTC has focused this case on the likely harm to nearly 100,000 unionized grocery workers. Federal legislation protects workers from mergers that negatively impact employment, especially for unionized workers. 

The merger is part of a larger trend toward consolidation in the supermarket industry. The U.S. currently has one-third fewer grocery stores than 25 years ago. Aside from the direct threats this poses to consumers and workers, including the spread of food deserts and insecurity, it gives large grocery chains monopoly power over disadvantage smaller, independent grocers and farms. 

This case is currently being heard by the Federal District Court for the District of Oregon where the FTC has requested a preliminary injunction. 

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