![]() ![]() ![]() Grocery chains and superstores are also the main beneficiaries of government aid for Americans struggling to feed their families. We have roughly one-third fewer grocery stores today than we did 25 years ago, according to the US census bureau.”Īs countless mom-and-pop stores struggled to stay afloat during the pandemic lockdowns, revenue for Walmart US hit $341bn - almost 3% higher than the previous year. “Supermarket mergers drive out smaller, mom-and-pop grocers and regional chains. “Corporate consolidation can drive up food prices and reduce access to food,” said Starbuck. Now, just four companies – Walmart, Costco, Kroger and Ahold Delhaize – control 65% of the retail market. Until the 1990s, most people shopped in local or regional grocery stores. Less competition among agribusinesses means higher prices and fewer choices for consumers – including where they can shop for food. The 2020 total compares to just $29m spent during the 1992 election cycle, which means lobbying by the food industry has increased by sixfold in less than three decades as consolidation across the supply chain has boomed. The money came from every part of the food chain, including dairy, eggs, poultry, meat processing, farm bureaus, sugar cane, crop production and supermarkets. The economic power of the corporations has contributed to their growing political power, which in turn has led to laws that put profits before food and worker safety, consumer rights and sustainability.ĭuring the 2020 election cycle, the food industry spent $175m on political contributions, including lobbying by PACs and individuals and other efforts. The same goes for 73% of the breakfast cereals we eat – despite the shelves stacked with different boxes. Ninety-three per cent of the sodas we drink are owned by just three companies. For almost a third of shopping items, the top firms controlled at least 75% of the market share.įor instance, PepsiCo controls 88% of the dip market, as it owns five of the most popular brands including Tostitos, Lay’s and Fritos. ![]() The consolidation runs deep: four firms or fewer controlled at least 50% of the market for 79% of the groceries. “It’s a system designed to funnel money into the hands of corporate shareholders and executives while exploiting farmers and workers and deceiving consumers about choice, abundance and efficiency,” said Amanda Starbuck, policy analyst at Food & Water Watch. Our investigation is based on the analysis of market share data from thousands of supermarkets across the US. It’s widely agreed that consumers, farmers, small food companies and the planet lose out if the top four firms control 40% or more of total sales. We found that for 85% of the groceries analysed, four firms or fewer controlled more than 40% of market share. The Guardian and Food and Water Watch investigation into 61 popular grocery items reveals that the top companies control an average of 64% of sales. The rest goes to processing and marketing our food. Overall, only 15 cents of every dollar we spend in the supermarket goes to farmers. Farms and meat processing plants are among the most dangerous and exploitative workplaces in the country. It also means those who harvest, pack and sell us our food have the least power: at least half of the 10 lowest-paid jobs are in the food industry. This matters because the size and influence of these mega-companies enables them to largely dictate what America’s 2 million farmers grow and how much they are paid, as well as what consumers eat and how much our groceries cost. The size, power and profits of these mega companies have expanded thanks to political lobbying and weak regulation which enabled a wave of unchecked mergers and acquisitions. In fact, a few powerful transnational companies dominate every link of the food supply chain: from seeds and fertilizers to slaughterhouses and supermarkets to cereals and beers. Investigation shows scale of big food corporations' market dominance and political powerĪ handful of powerful companies control the majority market share of almost 80% of dozens of grocery items bought regularly by ordinary Americans, new analysis reveals.Ī joint investigation by the Guardian and Food and Water Watch found that consumer choice is largely an illusion – despite supermarket shelves and fridges brimming with different brands. Supported by About this content Nina Lakhani, Aliya Uteuova and Alvin Chang ![]()
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