Latest Stories — Food & Power

Big Food Paybacks to Cafeteria Operators Spark Controversy

Last week, a coalition of farmers, fishermen, and food system activists launched a new campaign that calls on three dominant food service management companies, Aramark, Compass Group, and Sodexo, to increase local and humane food purchasing, invest in racial equity, and reduce their carbon emissions, among other demands. These companies represent 77.5 percent of the food service management industry, or the business of running cafeterias and restaurants for hospitals, schools, stadiums, corporate headquarters, and other institutions.

Will Big Booze succeed in becoming Big Buzz?

Earlier this month, Constellation Brands, maker of Corona, Svedka, and Robert Mondavi wines, invested $4 billion in the largest pot corporation in the world, by market cap. The deal expands Constellation’s ownership stake in Canadian Canopy Growth Corp from 9.9 percent to 38 percent and includes warrants to eventually own over 50 percent.

Mergers & AcquisitionsClaire KellowayAugust 30, 2018cannabis, capital, investment, mergers, Beer

Ag Bank Mergers Exacerbate the New Farm Crisis

Last year, the Nebraska Rural Response Hotline, which connects farmers and ranchers with legal, financial, and mental health services, set four monthly records for the number of new callers in financial distress. This spike reflects the broader hardship facing rural Americans in the midst of what some are calling the new farm crisis.

Mergers & AcquisitionsClaire KellowayAugust 16, 2018consolidation, credit, Farm crisis, grains, commodity, mergers, Banks

As Independent Grocery Stores Wane and Amazon Looms, Wholesale Middlemen Merge

Last week, organic and natural foods distributor, United Natural Foods Inc. (UNFI) announced plans to buy the largest publicly traded grocery wholesaler, Supervalu, for just under $3 billion. The deal is largely a defensive move by UNFI after Amazon bought their largest customer, Whole Foods.

RetailClaire KellowayAugust 2, 2018Amazon, consolidation, distribution, farmworkers, merger, OTA, Supervalu, UNFI, Whole Foods, Wholesaler, mergers, retail

Colluding Pork Packers Accused of Pigging Out On Fixed Prices

Since roughly 2009, Americans may have been paying too much for their pork chops, barbeque, hams, and trotters.

Processing & DistributionFood & PowerJuly 19, 2018collusion, lawsuit, pork, price fixing, Agri stats

Meet the Monopolists Who Took “Independence” Out of the Fourth of July

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.

Claire KellowayJuly 9, 2018

Mars Buys Another Veterinary Network, as a Candy-Company Turned Pet Care Giant Furthers its Influence Over Animal Health

Last week, Mars, the company best known for brands like Snickers, Skittles, and Wrigley’s gum, purchased AniCura, a network of 200 animal hospitals spanning seven European countries.

Mergers & AcquisitionsClaire KellowayJune 21, 2018candy, M&A, Pet food, vertical integration, mergers

Bayer-Monsanto Deal Closes as Farmers Warn of Higher Prices and Less Resiliency

On Thursday, Bayer closed its $62.5 billion purchase of Monsanto. This comes roughly a week after the Department of Justice (DOJ) approved the merger, on the condition that the corporations sell off $9 billion worth of assets, including seed divisions, intellectual property, research projects, and more. Yet even after these divestitures, the combined entity will be the largest global seed and agrochemical corporation, and U.S. based field crop growers fear the power of the new combine.

Seeds & AgrichemicalsClaire KellowayJune 7, 2018Bayer, Chemicals, commodity, merger, monsanto, seeds, GMO, grains, Big Data

Rapid Consolidation in Canada’s Cannabis Market Raises Fears Among Small Growers – Both North and South of the Border

Last week, Canada’s Aurora Cannabis Inc. announced plans to purchase rival medical marijuana grower, MedReleaf for $2.5 billion, the biggest ever deal in the legal cannabis industry. This follows a wave of consolidation in Canadian cannabis as the country prepares to become the first G7 nation to legalize recreational marijuana nationally as early as this summer.

Mergers & AcquisitionsClaire KellowayMay 24, 2018mergers

Walmart Sells U.K. Subsidiary, Putting One-Third of the British Grocery Market Under One Roof

Last week, Walmart announced plans to sell its U.K. subsidiary Asda to rival British grocery chain Sainsbury’s. The proposed deal would create the largest grocery store chain in British history, with more than 31 percent of the market in the hands of one company. It would put even more pressure on farmers and food suppliers, and threaten 330,000 employees with job losses.

Retail, Mergers & AcquisitionsClaire KellowayMay 10, 2018retail, retailers, mergers

Ranchers Oppose Marfrig Acquisition that would Spell More Foreign Control Over US Beef

A growing number of American ranchers are calling on the Trump Administration to block a Brazilian corporation’s plan to take over America’s fourth largest meatpacker. They say the deal would worsen monopolization in the sector and further harm the livelihoods of American farmers and ranchers.

Mergers & AcquisitionsKevin CartyApril 26, 2018foreign ownership, mergers

How Grubhub, UberEats, and Minibar are Taking over Your Local Restaurant and Wine Store

A frenzy of deal-making is remaking the food delivery app business. In January, UberEats acquired Ando, a food delivery startup founded by celebrity chef David Chang. In early March, Japanese conglomerate Softbank invested $535 million into DoorDash. A few weeks later, Grubhub expanded its partnership with the review site Yelp to facilitate ordering home delivery of restaurant meals. Meanwhile, the tech publication ReCode reported last week, DoorDash and Postmates have discussed merging.

RetailKevin CartyApril 12, 2018data, DoorDash, drizly, Grubhub, minibar, monopoly, Postmates, UberEats, price discrimination, retailers, retail, Beer, Big Data