Kroger Co. Faces Antitrust Lawsuit over Price Hikes on Milk and Eggs
Kroger Co. is facing a federal antitrust lawsuit by the Federal Trade Commission and a group of states over allegations of price gouging on milk and eggs. The company’s top pricing executive, Andy Groff, testified in court that Kroger had raised prices more than necessary to adjust for inflation, despite acknowledging that cost inflation was actually lower than retail inflation.
The lawsuit is part of the government’s efforts to block Kroger’s $24.6 billion acquisition of rival Albertsons Cos. In response, Kroger argues that the acquisition would lead to lower prices for consumers and better position them against competitors like Amazon.com Inc. and Walmart Inc.
Groff revealed that Kroger aims to pass on inflation costs to consumers, especially on everyday essentials like milk, eggs, sugar, bananas, and lettuce. The company closely monitors prices on these items compared to competitors like Walmart and Aldi Inc., with Albertsons being a key competitor in every market.
Kroger has invested in the milk business over the years, operating more than a dozen dairy plants. The price hikes on eggs were attributed to a bird flu outbreak that reduced the supply and led to record-high prices in early 2023.
The ruling on whether to block Kroger’s acquisition of Albertsons is pending, with the trial taking place in Portland. The outcome of the case could have implications for the grocery industry and consumer prices nationwide.
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