Corporate Greed at the Grocery Store
Kroger used inflation as an excuse to raise prices
Even as Presidential candidate Kamala Harris talks about strengthening federal laws against price gouging in the grocery industry, one company admits it raised prices on grocery staples above the rate of inflation.
News reports suggest Kroger used inflation as an excuse to boost costs on items such as milk and eggs as the company saw record profits post-pandemic.
According to Newsweek, Andy Groff, Kroger's senior director for pricing, said the company had raised the cost of milk and eggs beyond the levels of inflation while testifying to a Federal Trade Commission attorney on Tuesday.
The news outlet reports:
An internal email from Groff shows that the price of milk and eggs routinely exceeded what inflation would require for the chain to turn a profit, according to Newsweek, which reported that the executive said Kroger intends to "pass through our inflation to consumers."
"On milk and eggs, retail inflation has been significantly higher than cost inflation," Groff wrote in the internal email to other Kroger executives.
The admission comes as Kroger seeks to merge with another grocery giant, Albertsons, creating more consolidation in the grocery industry - a move that could also lead to less price differentiation.
The Biden-Harris Administration’s FTC is opposing the merger on grounds it could create a monopoly.
In Tennessee, a report suggests the Volunteer State has seen some of the nation’s highest inflation. As a result, a pair of Nashville lawmakers are seeking to address grocery price-gouging like that admitted by Kroger.
“High prices at the grocery store have weighed heavily on Tennessee families, and they deserve to know that their state government is taking every possible step to ensure fairness in the marketplace,” said Sen. Charlane Oliver. “Joining this task force would demonstrate our commitment to protecting consumers and promoting economic fairness for all Tennesseans.”
Sen. Oliver is joined by Rep. Aftyn Behn in an effort to convince Tennessee’s Attorney General to join a bipartisan group of state officials working to address price gouging. The group is led by the U.S. Department of Agriculture.