Meet the Monopolists Who Took “Independence” Out of the Fourth of July
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As Americans gather to celebrate liberty by shooting off fireworks and firing up the grill, their shopping carts tell a much darker story about power in America. Even though the average grocery store carries 47,000 products, five times more items than they did in the 1970s, our 4th of July dollars go to fewer and fewer companies.
From hot dogs and ketchup to beer and charcoal, this week's Food & Power shows just how concentrated America’s food system, and the entire economy around it, have become.
You can find this edition of Food & Power, here, published in Vice.
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This month, it became much harder for small and local vendors to do business with Whole Foods. First, Amazon announced that Prime members will receive an extra 10 percent off on select Whole Foods items. But an email obtained by the New Food Economy reveals that this price cut will come entirely out of food companies’ pockets, in the form of a retroactive charge for the value of the discount. Next, Amazon announced that they will lay off hundreds of Whole Foods employees who helped to promote local products, reports the Wall Street Journal. A year after Amazon’s acquisition, individual Whole Foods locations have lost much of their autonomy, as the chain makes it more expensive for vendors to claim shelf space and moves towards a more centralized purchasing regime.
Last week, ConAgra purchased Pinnacle foods for $10.9 billion in cash and stock. As CNBC reports, the merger makes ConAgra the second largest frozen food company, behind Nestle, as ConAgra absorbs Pinnacle’s Birds Eye, Evol, and Gardein frozen brands. The merger also brings other popular labels under the ConAgra orbit, including Udi’s and Glutino gluten-free products, Smart Balance and Earth Balance products, Duncan Hines cake mix, and Wish-Bone salad dressings. The merger comes months after activist investor, Jana Partners, disclosed a nearly 9 percent share in Pinnacle, meaning they are set to make $144 million off the deal. Jana made headlines last year when it pushed Whole Foods to sell to Amazon, pocketing over $300 million as a result.