Update on Proposed Grocery Mega-Merger of Kroger and Albertsons and our Ongoing Opposition

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Since it was first announced in October of 2022, our coalition of UFCW local unions, and what has grown to over 100 organizations, have opposed the proposed mega-merger of Kroger and Albertsons. The main reasons for the opposition are the dramatic and negative risks the proposed merger poses to workers, shoppers and community – tens of thousands of job losses, hundreds of store closures, higher prices, food and pharmacy deserts, reduced consumer choice, impact on workers’ collective bargaining leverage and more. 

For over a year the opposition grew. Press conferences, a US Senate hearing, meetings with state and federal regulators, hundreds of TV, newspaper and radio stories, actions by workers at their stores, and much more. Many months of investigation led to a series of lawsuits being filed in early 2024.

Three Lawsuits That Started in Early 2024 are Still in Motion

On January 15, 2024, The Attorney General of Washington State filed a lawsuit to block the proposed merger. On February 14, 2024, the Attorney General of the State of Colorado filed a lawsuit to block the proposed merger. On February 26, 2024, the Federal Trade Commission (FTC) filed a lawsuit in federal court in Oregon to block the proposed merger and nine Attorneys General (Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon, and Wyoming) joined that federal lawsuit. These legal actions went to trial in August, September and October of 2024. As of today, there has yet to be a decision by the respective judges, but it is expected that decisions could come at any time. 

Companies’ Empty Promises Exposed at Trials

Throughout the trials, claims the companies had been making, and continue to make publicly, were debunked. Big promises made in press releases changed under cross-examination and oath. It became clear that these claims were nothing but empty promises. Stores could indeed be closed after a merger. Workers could indeed be laid off after a merger. Prices may not actually go down after a merger. None of these claims, repeated over and over again by the companies, were actually legally enforceable.

Outcome of Cases Still Unknown

It is also widely believed that a successful block of the proposed merger at any of these three trials could be likely. While there remain many unknowns, including the impact of the recent election, one thing is for sure: the merger is far from a done deal. Many financial analysts see the ongoing value of Albertsons stock hovering around $19 a share as an indication from the market that most investors see the merger as more likely to fail. Whenever a decision is announced, our coalition plans to issue a same-day statement.

The large Stop the Merger coalition (www.nogrocerymerger.com), which the UFCW locals 7, 324, 400, 770, 1564 and 3000 helped create and are leading, is made up of over 100 state and national organizations from consumer protection, food security, producers, and many others.

Virtual Town Hall Coming Soon – Stay Tuned

We are planning to hold a national on-line virtual town hall for grocery store workers, shoppers and members of the media soon to discuss the latest updates. Invites will be sent out in advance as well as posted on the nogrocerymerger website.

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UFCW Local Unions from Stop the Merger Coalition Oppose Kroger’s Wall Street Giveaway
UFCW Local Unions from Stop the Merger Coalition Oppose Kroger’s Wall Street Giveaway
UFCW locals’ stop the merger coalition applauds Albertsons’ decision to terminate merger transaction with Kroger
UFCW locals’ stop the merger coalition applauds Albertsons’ decision to terminate merger transaction with Kroger

Following yesterday’s court rulings blocking the proposed Kroger and Albertsons mega-merger, we welcome Albertsons’ decision to terminate the merger transaction, meaning there will be no further court appeals seeking to complete the merger. We encourage the leaders of both Kroger and Albertsons to invest resources in their stores by investing in adequate staffing so customers are better served and workers can safely and effectively operate the stores and stock the shelves. These investments will result in higher sales and improved satisfaction by shoppers and employees alike. 

Kroger Albertsons Mega-Merger Blocked by Federal Judge
Kroger Albertsons Mega-Merger Blocked by Federal Judge

“The well-reasoned decisions today by both Courts make plain what union grocery workers have known all along – this mega-merger would be bad for workers who deserve a workplace where they can be paid well for their labor, be safe and be respected. It would be disastrous for shoppers who deserve competition that leads to better choices and lower prices…”