DENVER- As grocery store prices strain Colorado families' budgets, a group of more than 100 different organizations are speaking out about the proposed Albertsons-Kroger merger. The two are the parent companies of King Soopers and Safeway.
"We're just hearing over and over right now, from parents across the country, just how hard it is to get food on the table," said Allison Johnson, Campaign Director for ParentsTogether Action.
The are one of many organizations across the country speaking out against the merger. A group of more than 100 organizations have formed "Stop the Merger."
"We've seen mergers in the past drive out competition, which then increases prices and also can create food deserts, giving people fewer options for where they can shop. It also puts jobs at risk and lower the wage for the workers at the grocery stores themselves," said Johnson.
Attorneys General across the country have raised those same questions about the possible merger.
Colorado's AG Phil Weiser is investigating the merger and is traveling across the state, listening to consumer concerns, most recently stopping in Denver.
"When you have consolidation from three to two players, or two to one player, it generally doesn't go well for consumers. So a big part of our job is to define what is the relevant market? Where do people shop for groceries? What are trade offs both pluses and minuses of this merger?" Weiser said at the time.
Kroger continues to deny any claims that the merger will cause them to raise their prices.
They released this statement saying they plan to re-invest money from the merger into employee wages and benefits while also lowering costs for customers.
"Albertsons Cos. brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores. This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors. As a combined entity, we will be better positioned to advance Kroger's successful go-to-market strategy by providing an incredible seamless shopping experience, expanding Our Brands portfolio, and delivering personalized value and savings. We'll also be able to further enhance technology and innovation, promote healthier lifestyles, extend our health care and pharmacy network and grow our alternative profit businesses. We believe this transaction will lead to faster and more profitable growth and generate greater returns for our shareholders," said Rodney McMullen, Kroger Chairman and Chief Executive Officer.
The Federal Trade Commission is still reviewing the proposal.
Attorney General Weiser's next town hall meeting is in Cañon City this Wednesday.
