Amazon’s announcement in June that it plans to buy Whole Foods for $13.7 billion has led to speculation throughout the retail industry about the corporation’s intentions in the grocery sector. Supply chain and retail workers in particular fear the merger will result in layoffs and less bargaining power overall. Some are ratcheting up unionization efforts in response.
Read MoreThe latest in a series of mergers that are remaking the business of farm credit in America will, in early July, bring together three lenders in the upper Midwest, AgStar Financial Services, Badgerland Financial, and 1st Farm Credit Services. The new Wisconsin-based institution, to be called Compeer Financial, will hold over $18 billion in assets and will be the country’s third-largest farm credit association.
Read MoreAnheuser-Busch InBev, the largest beer producer in the world, is taking another shot at the American craft brewing industry, this time by cornering the market on some key ingredients independent brewers need to make quality beer. The company last week announced that they would no longer be exporting hops from their South African hop farms to U.S. craft brewers, as promised, and would instead be redirecting the hops toward their own in-house brands.
Read MoreSince it was acquired in 2013 by the Chinese company WH Group, pork giant Smithfield has moved steadily to consolidate power over its supply chain. The company’s most recent purchase targeted grain elevators in Harpster and Morral, Ohio. This means Smithfield can now ship grains directly from Ohio to its feedlots in North Carolina. These acquisitions also serve to further the Chinese government’s power in the American food system.
Read MoreDays before entering office, President Donald Trump held a meeting with executives from agrochemical giants Bayer and Monsanto. The companies sought Trump’s blessing for their $66 billion merger, promising to create thousands of jobs if the merger is approved. But the companies’ track records, as well as evidence from past mergers, suggest the deal would likely result in a net job loss.
Read MoreAnheuser-Busch InBev is angling to control every shelf of your local beer store, and they’re doing it behind the scenes. That may seem surprising, given that the Belgian company has made headlines this year with its nearly complete $108 billion acquisition of SABMiller, the second-largest beer company in the world. But many in the industry see control over distribution, even more than deals, as the real source of ABI’s growing market power. And though the Department of Justice’s July approval of the merger seems to promote competition and place checks on the company’s pursuit of growth, those checks may not prove strong enough to rein in the beer giant.
Read MoreAfter months of debate, Congress in early July established a national standard for the labeling of foods that contain ingredients that have been genetically modified (GMOs). President Obama is expected to sign the bill, officially called the National Bioengineered Food Disclosure Standard.
Read MoreA generation ago, America’s farm and food economy was dominated by small family enterprises. Today, just four companies control 65 percent of pork slaughter, 84 percent of cattle slaughter, and 53 percent of chicken slaughter. Milk production is largely shaped by one large processor, Dean Foods, and one large cooperative, Dairy Farmers of America. Recent mergers, such as the Brussels-based Delhaize’s (Food Lion) acquisition of the Dutch company Ahold (Giant, Stop & Shop), have reduced the number of large grocers down to four. What does all this consolidation mean for our food economy?
Read MoreMergers and acquisitions in the food sector rarely draw the eye of supermarket shoppers. But name recognition has brought last week’s announced merger of H.J. Heinz Co. and Kraft Foods Group Inc. to the fore of business news. After all, these companies’ products are household staples — most readers of this article probably have a Heinz or Kraft product in their refrigerator right now. While this merger may seem innocuous — who cares that the mac and cheese company owns the ketchup company? — there could be serious ramifications for consumers and producers.
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