Kraft and Heinz Merger Will Squeeze Out Small Food Producers Take Action to Put a Stop to Corporate Food Mega-Mergers Dear Indiana, Kraft Foods and H.J. Heinz recently announced a merger that will create the world’s fifth largest food company. While this may be great for their corporate profits, this is bad news for small food producers and anyone that shops at the grocery store. Take action to stop food mega-mergers and protect small farmers and food producers.
The post-merger company would sell $28 billion worth of food annually and control eight brands with sales over $1 billion and five more brands with sales between $500 million and $1 billion. Here's just a sampling of what they'll control:
People are largely unaware that these brands are not independent companies, creating the illusion of choice at the grocery store. Unfortunately, federal antitrust authorities likely will approve this merger because Kraft and Heinz do not produce many products that compete head-to-head, but this conglomerate merger will expand Kraft’s footprint and power in the supermarket, reducing consumer choice and likely increasing prices.
Ask the Department of Justice and the Federal Trade Commission to put a moratorium on food mergers.
Even when mergers do not join companies that sell the same kinds of foods, they give big food processing companies more economic power and leverage over other companies and consumers. New start-up food companies could find it harder to get on grocery store shelves because Kraft will have them surrounded on all sides. And supermarket chains are more likely to work with a conglomerate like Kraft supplying products in many different parts of the store than lots of companies that supply only a few products.
This is just the latest in a string of high-profile mergers, and is unlikely to be the last. A handful of large corporations with big political clout are rapidly consolidating the food system to increase their profits. This prevents small and medium-sized farmers from competing in the market, and it limits choice for people buying food.
The Department of Justice and Federal Trade Commission must stop approving these conglomerate mega-mergers and block this and future proposed deals.
Take action to stop the further corporate control of our food.
Thanks for taking action, Sarah Alexander Deputy Organizing Director Food & Water Watch act(at)fwwatch(dot)org |
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