Schrier Enthused About Unraveling of Kroger-Albertsons Merger

Two of the country's preeminent grocery giants are now at odds.

Federal and state judges on Tuesday halted the proposed merger between Kroger and Albertsons in Washington. Following the decision, Albertsons reneged on the $25B merger and filed suit, accusing Kroger of breach of contract.

Democratic congresswoman Kim Schrier (WA-08) has long voiced her opposition to the merger, arguing that it would reduce market competition. She says the collapse of the merger is an unmitigated victory for smallholders and family farmers in North Central Washington.

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"They're already getting squeezed - you already know this," Schrier says. "They're getting squeezed. We're paying higher prices for produce in the stores; [farmers] are not seeing a bit of this. Family farmers are going out of business. And if you had taken away competition between Kroger and Albertsons, it basically would have taken all negotiation power away from farmers."

And consumers? This is advantageous to them too, Schrier says.

"[The merger] would've been really awful for farmers - and for everybody else! I mean, we all shop in the grocery stores. Again, if you take away competition, there's no incentive to lower prices in order to draw consumers in. Prices would go up even higher than they are already - and we're already paying through the nose for our groceries."

Washington is home to 329 Kroger and Albertsons stores, accounting for 10% of all Albertsons locations nationwide. Earlier this year, it was announced that Kroger and Albertsons planned to sell 124 of their stores in Washington as part of the merger agreement, including the East Wenatchee Safeway. Kroger's operations encompass several well-known brands, including Albertsons, which owns Safeway, Fred Meyer and QFC.

Following our report on this subject in August, Kroger issued a rebuttal.

"Kroger joining with Albertsons will mean lower prices and more choices for more customers in more communities, higher wages and more industry-leading benefits for associates, securing union jobs and expanded opportunities for farmers and suppliers," a spokesperson said. "The divestiture plan with C&S builds on these commitments by ensuring zero stores will close as a result of the merger, all frontline associates will remain employed, all existing collective bargaining agreements will continue and associates will continue to receive industry-leading benefits alongside bargained-for wages."

Fast forward to the present day - Kroger is condemning the perceived ignominy of its former merger partner. In a statement on Wednesday, Kroger called the Albertsons lawsuit "baseless and without merit."