KROGER ALBERTSONS MERGER UPDATE

September 13 Merger Update Letters to Members

Stop the Merger Rally! Monday, September 30 @ Noon

Colorado Attorney General Phil Weiser’s legal challenge to stop the proposed mega-merger between Kroger and Albertsons kicks off in Denver on Monday, September 30.

Stand with workers and stand up for customers and our communities to oppose the merger! We’re hosting a rally outside of the legal hearing on the steps of the Denver City & County Building on 9/30 at noon. RSVP to let us know you’ll be there!

Denver City & County Building, 1437 Bannock Street, Denver, CO 80202

UFCW Local 7 and the Stop the Merger Coalition have spoken out against the merger since it was announced two years ago because we know it could lead to job losses, food and pharmacy deserts, and less power for workers at the negotiating table. Kroger and Albertsons are doing just fine. They don’t need this merger to compete, and if it goes through, our communities will suffer.

Let’s stand together in solidarity to Stop the Merger! Here’s how to help:

September 13, 2024

We Continue Our Fight Against the Kroger/Albertsons Merger as the FTC Trial Enters Final Week, More Trials to Follow

(Photo credit – Dominick Ojeda, UFCW 3000)

“Enough is enough. We can no longer stand by and allow corporate greed that puts profit before people. Our workers, our communities and our customers deserve better.”  – Carol McMillian, UFCW Local 7R member (far left in image above)  and a bakery manager at Kroger-owned King Soopers in Colorado was one of several speakers at out Stop the Merger Press Conference on August 26, 2024 on the courthouse steps outside the federal court in Portland, OR, just before the 1st day of the trial.

Dear grocery store members,

Since the trial of the Federal Trade Commission's lawsuit to stop the proposed merger between Kroger and Albertsons began on August 26, workers have been at the courthouse, talking to the media, and talking to customers about how damaging this would be for workers, customers, and our communities. 

We’ve been doing this work for nearly two years and we’ll continue to do it until we finally put a stop to this disastrous merger.

The federal court case is expected to conclude on Tuesday, September 17, and the judge could make a decision on whether or not to approve the FTC’s request for what is called a “Preliminary Injunction” as early as the first week of October. If the injunction is granted, the merger would be put on hold until after a full court case on the merits of the merger is done. 

Meanwhile, on Monday, September 16, the Washington State Attorney General’s lawsuit to block the merger will begin its trial in Seattle. The Colorado Attorney General’s lawsuit to block the merger is scheduled to start on September 30.

The outspoken work of grocery store members and our community partners, as well as many enforcement agencies like the FTC and Attorneys General, have all been central to the successful efforts so far to stop the proposed mega-merger of Kroger and Albertsons.

Kroger’s Q2 Earnings Call

Kroger held its 2nd Quarter Earnings call on Thursday, September 12, and it showed what we’ve been saying all along: Kroger is doing just fine, and doesn’t need this merger to compete. Same store sales were up 1.2% (higher than expected) and the company pointed to higher online sales and increased loyalty households as drivers of stronger sales and growing private label brands as a driver of increased profitability. 

Notably, these areas—ecommerce capacity, customer loyalty and private label manufacturing—are ones that C&S Wholesale Grocery (the proposed buyer of 579 divested stores if a merger were allowed) lacks, underscoring concerns that C&S would not be able to operate those stores in a sustainable way. Kroger also discussed strong profits in the pharmacy sector and acknowledged pharmacies as a leading cause of loyalty. We’ve pointed out time and time again that C&S has little to no experience managing pharmacies that are a lifeline to our communities.

Also of note, company officials claimed that shrink (the loss from theft or other causes) has been improving, though is still elevated, and that OSHA incident rates are currently at record lows. Members, who actually work in the stores, paint a very different picture of understaffed stores with high rates of shoplifting rates and significant health and safety risks.

In the News

UFCW Locals 7, 324, 400, 770, 1564, and 3000 have held press conferences, store actions, webinars and interviews to raise our concerns to the public through more than a thousand media stories from coast to coast since the very first day Kroger and Albertsons announced their proposed plan to merger.  Time and again grocery store workers, sharing their experiences, have proven to be a critical part of those news stories. Most recently, several stories around the FTC trial have been noteworthy:

You can find more of the most recent news coverage on the Stop the Merger website news page here.

Protecting the jobs and collective bargaining strength of union workers and keeping choice and price competition for our customers are key reasons for our long-standing and loud opposition to the proposed merger.

We recently launched a Stop the Merger Customer Petition to continue to build public support that has already garnered thousands of signatures! Please help spread the word about our petition by sharing www.nogrocerymerger.com/petition.

We hear from customers all over the country that Kroger and Albertsons’ proposed mega-merger threatens our communities with store closures, food and pharmacy deserts, thousands of laid-off unionized grocery store workers, and higher prices. 

You can take action by encouraging your organizational members, family members, fellow shoppers, friends, and others in the community to sign the petition to show Kroger and Albertson that they are opposed to this disastrous proposal.

Sign and share the petition at nogrocerymerger.com/petition

  

In solidarity, the Stop the Merger Coalition

Press Release

Stop the Merger - UFCW Locals 7, 324, 400, 770, 1564 and 3000

For Immediate Release: August 26, 2024

UFCW Grocery Store Workers’ Strong Opposition to Proposed Kroger-Albertsons Merger Resonates on Courthouse Steps Ahead of FTC Hearing

PORTLAND, OR – The Stop the Merger Coalition led by UFCW Locals 7, 324, 400, 770, 1564 and 3000 today held a press conference immediately prior to the much-anticipated Federal Court hearings of the Federal Trade Commission’s challenge to block the proposed mega-merger of Kroger and Albertsons. Workers and leaders from California, Washington and Colorado, representing over 100,000 union grocery store members, reiterated their opposition to the anti-competitive, anti-worker and anti-community scheme.

“We’re fighting back because we know that the proposed mega-merger between Kroger and Albertsons would likely lead to job losses, store closures, pharmacy and food deserts, and higher prices, which would harm working families in both rural and urban communities across the country,” said Kim Cordova, UFCW International Vice President and President of Local 7, representing workers in Colorado and Wyoming. “Kroger and Albertsons claim the merger is necessary to compete with Walmart and Amazon, but their true goal is to consolidate power and increase profits at the expense of workers and customers.”

Jessica Crowley, a UFCW Local 770 member and staff pharmacist at an Albertsons-owned Pavilions Pharmacy in Los Angeles, California, said, “Competition is essential for maintaining medication access, especially during drug shortages. Let’s be clear: this mega-merger will negatively impact retail workers, smaller suppliers, independent chains, and communities already facing challenges with food and medication access.”

Carol McMillian, a Kroger-owned King Soopers Bakery Manager from Local 7 said, “Growing up, we always thought of working at a grocery store as a secure, good-paying job that could support a family like mine. I spent 11 years working my way up to become a Safeway Bakery Manager, but after the Albertsons Safeway merger in 2015, I felt like my job was at stake and left to work at King Soopers instead to protect myself as a single mom. But here we are again – facing yet another merger creating uncertainty about our jobs and our livelihoods.”

Kyong Barry, who works at an Albertsons’ Safeway store outside Seattle and has served on her union’s contract negotiations team many times added, “I am proud that our local unions have stood up and raised our concerns about this proposed merger from the very beginning. Our ability as unionized workers to negotiate a better contract is at stake with this merger. It must be stopped.”

The Federal Trade Commission’s case challenging the merger, joined by the Attorneys General of Arizona, California, District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming, began today in federal court in Portland, Oregon, and is expected to last at least two weeks. A second case by the Washington State Attorney General is scheduled to be heard starting on September 16, and a third case brought by the Attorney General of Colorado is scheduled to be heard starting on September 30.

The Stop the Merger Coalition recently launched a customer petition ahead of the hearings, which in just a short time has already collected thousands of signatures of concerned customers telling Kroger and Albertsons to stop the merger that threatens our communities with store closures, food and pharmacy deserts, thousands of laid-off unionized grocery store workers, and higher prices. Recent media reports have indicated that Kroger and Albertsons have already spent over $864,000,000 on the merger process. 

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About Stop the Merger

UFCW locals 7, 324, 400, 770, 1564 and 3000 lead the Stop the Merger Coalition, including over 100 national, state, and local organizations representing diverse interests who share a common goal: to stop the proposed Kroger-Albertsons grocery merger because of its negative impact on our nation’s communities. For more information, go to www.NoGroceryMerger.com. 

MEDIA ADVISORY

August 22, 2024

CONTACT: Elizabeth Battiste

Public Affairs Director, UFCW Local 7

ebattiste@ufcw7.com | 720-364-1925

Stop the Merger Coalition of UFCW Locals to Hold Press Conference Ahead of Federal Case in Portland

On-the-Ground Contact: Dominick Ojeda, UFCW 3000, 206-229-8711, dojeda@ufcw3000.org

Colorado & Wyoming Contact: Elizabeth Battiste, UFCW Local 7, 720-364-1925, ebattiste@ufcw7.org

PORTLAND, OR – Immediately prior to the much-anticipated Federal Court case of the Federal Trade Commission’s challenge to block the proposed mega-merger of Kroger and Albertsons, the coalition of UFCW unions (Locals 7, 324, 400, 770 and 3000), who have helped lead the anti-merger efforts since it was first announced, will hold a press conference on the courthouse steps.  

When: Monday, August 26, 2024, at 8:00 AM PT

Who: Kim Cordova, President UFCW 7 (Wyoming and Colorado)

Grocery Store Workers: 

Member of Local 7 - Carol McMillian, Bakery manager at Kroger-owned King Soopers

Member of Local 770 - Jessi Crowley, Pharmacist at Albertsons-owned Pavilions

Member of Local 3000 - Kyong Barry, Albertsons Front-end Supervisor

Where: On the courthouse steps outside of the US Federal Courthouse

1000 SW 3rd Ave, Portland, OR

Background:

The Federal Trade Commission’s case challenging the merger, joined by the states Attorneys General of AZ, CA, DC, IL, MD, NV, NM, OR and WY begins on August 26 in federal court in Portland, Oregon. A second case by the Washington State Attorney General is scheduled to be heard starting on September 16 in Washington state. And a third case is scheduled to be heard starting on September 30th in Colorado brought by the Attorney General of Colorado.

The Stop the Merger Coalition recently launched a customer petition ahead of these hearings, which in just a short time has already collected thousands of signatures of concerned customers telling Kroger and Albertsons to stop the merger that threatens our communities with store closures, food and pharmacy deserts, thousands of laid-off unionized grocery store workers, and higher prices. Recent media reports have indicated that Kroger and Albertsons have already spent over $864,000,000 on the merger process. 

About Us:

UFCW locals 7, 324, 400, 770 and 3000 are all part of the Stop the Merger Coalition, including over 100 national, state, and local organizations representing diverse interests who share a common goal: to stop the proposed Kroger-Albertsons grocery merger because of its negative impact on our nation’s communities. 

More information on the effort to stop the merger can be found at www.NoGroceryMerger.com.

FOR IMMEDIATE RELEASE

July 25, 2024

CONTACT: Elizabeth Battiste

Public Affairs Director, UFCW Local 7

ebattiste@ufcw7.com | 720-364-1925

 UFCW Local 7 Statement on court injunction halting proposed mega-merger 

CONTACT: Elizabeth Battiste, 720-364-1920, ebattiste@ufcw7.com 

Denver, CO – United Food and Commercial Workers Union Local 7 President Kim Cordova today issued the following statement in response to the City and County of Denver District Court’s Preliminary Injunction to halt the proposed mega-merger between Kroger and Albertsons.

We’re pleased with the court’s decision to temporarily halt the proposed mega-merger, which would have devastating impacts in communities here in Colorado and across the country. Our members and customers alike are concerned about potential job losses, food and pharmacy deserts, increased food prices, cost to food suppliers, and a lack of competition if the merger goes through. It’s not a done deal, and we will continue to do all we can to stop the merger.

The Court today granted a Preliminary Injunction that will expire 5 business days after the Court rules on Colorado’s application for a permanent injunction. The Preliminary Injunction precludes the nationwide merger from being closed, as well as the associated sale of more than 500 stores nationwide to C&S Wholesale Grocers, including 91 Safeway and Albertsons stores in Colorado. The Court will consider the potential Permanent Injunction at what is anticipated to be a 14-day trial now set to begin September 30, 2024. 

Legal proceedings are also scheduled in Washington State and a federal case brought by the Federal Trade Commission to be heard in the United States District Court for the District of Oregon. The FTC is also challenging the merger in an internal administrative action. 

UFCW Local 7 represents 23,000 members in the grocery, meat packing, food processing, healthcare, manufacturing, and cannabis industries across Colorado and Wyoming. The Union is part of the Stop the Merger Coalition, including over 100 national, state, and local organizations representing diverse interests who share a common goal: to stop the proposed Kroger-Albertsons grocery merger because of its negative impact on our nation’s communities. More information on the effort to stop the merger can be found at www.NoGroceryMerger.com.

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The Stop the Merger campaign includes over 100 national, state and local organizations representing diverse interests who share a common goal: to stop the proposed Kroger-Albertsons grocery merger because of its negative impact on our nation’s communities. For more information visit www.NoGroceryMerger.com

July 9, 2024

To UFCW Local 7 Grocery Members:

Today you may have heard that Kroger and Albertsons released a proposed list of stores to be divested to C&S Wholesale Grocers. We want to assure you that this changes nothing. The merger is NOT a done deal, and we continue to do everything we can to stop it.

As you know, the proposed mega-merger puts our members’ jobs and our communities' wellbeing at risk. If successful, the merger would have devastating impacts across our country, as made evident by the hundreds of stores included on the divestiture list released today. We cannot entrust our grocery stores – which are integral to our communities and our members – to the untested, inexperienced C&S Wholesale Grocers.

Kroger and Albertsons have known which stores they plan to divest for months, and the last-ditch release of the list today is an underhanded attempt to influence the courts and create the perception that the mega-merger is close to final, creating more uncertainty for our members like you.

The merger is being challenged by the state Attorneys General in Colorado, Washington, and many other states, as well as the Federal Trade Commission. These regulators have been in possession of this information for months and are steadfast in their legal challenges to the merger, which kick off at the end of July and are scheduled to run through September.

Even the company’s own press release states this is a proposed list and subject to change. If that is the case, why make it public now before the court dates begin?

As union members, we have protections under the law. If the merger goes through, we have a right to bargain over the effects of the merger. And of course, we will keep you updated every step of the way.

Again: The merger is not a done deal. We will continue to do everything we can to stop it. Thank you for all you do to serve your store and your community. We are stronger together.

In Solidarity,

President Kim C. Cordova

FOR IMMEDIATE RELEASE

July 9, 2024

CONTACT: Elizabeth Battiste

Public Affairs Director, UFCW Local 7

ebattiste@ufcw7.com | 720-364-1925

“The merger is not a done deal.”

UFCW Union Local 7 Issues Response to Kroger and Albertsons Public Release of Proposed Divestiture Store List

Denver, CO – United Food and Commercial Workers Union Local 7 President Kim Cordova today issued the following statement in response to the list of 485 grocery stores – including 91 in Colorado and 5 in Wyoming – Albertsons plans to divest to C&S Wholesalers in its attempt to merge with Kroger, Inc.

“The proposed mega-merger puts our members’ jobs and our communities' wellbeing at risk. If successful, the merger would have devastating impacts across our country, as made evident by the hundreds of stores included on the divestiture list released today. We cannot entrust our grocery stores – which are integral to our communities and our workers – to the untested, inexperienced C&S Wholesale Grocers.

“Kroger and Albertsons have known what stores they plan to divest for months, and the last-ditch release of the list today is an underhanded attempt to influence the courts and create the perception that the mega-merger is close to final, creating more uncertainty for our members. 

“The merger is not a done deal. We will continue to do everything we can to stop it.” 

A joint statement from UFCW Locals 7, 324, 400, 770, and 3000 was also released: 

“Today’s announcement changes nothing. The merger is not a done deal, far from it. We remain focused on stopping the proposed mega-merger for the same reasons we have stated since it was first announced over 20 months ago – because we know it would harm workers, it would harm shoppers, it would harm suppliers and communities, and it is illegal. The merger proposal was rejected in January and February by the Attorneys General from the states of Colorado and Washington and the Federal Trade Commission. We applaud their actions. They have been in possession of this proposed divestiture list, made public today by the companies, for months and that did not change their opposition to the proposed merger. These legal challenges to the proposed merger are moving forward with hearings beginning at the end of July and scheduled to go through September.”

More information on the effort to stop the merger can be found at www.NoGroceryMerger.com. 

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The Stop the Merger campaign includes over 100 national, state and local organizations representing diverse interests who share a common goal: to stop the proposed Kroger-Albertsons grocery merger because of its negative impact on our nation’s communities. For more information visit www.NoGroceryMerger.com