Colorado Politics

Weiser to invite Coloradans to weigh in on Kroger-Albertsons merger

Attorney General Phil Weiser announced on Thursday his intent to launch a listening tour to receive comments from Colorado residents about the impact of a proposed merger between supermarket giants Albertsons and Kroger.

Weiser indicated he is part of a multistate effort to investigate the merger and the specific concerns that may accompany a consolidation in the marketplace: increased food prices, closure of stores and reductions in employment. Weiser noted that in some parts of the state, the two companies now operate the largest, or perhaps the only, grocery stores in the community.

“It is not plausible to tell somebody in Cortez, ‘Oh, you could drive to Grand Junction for an alternative supermarket’,” Weiser said at a virtual press conference.

Kroger, which operates King Soopers and City Market stores in Colorado, and Albertsons, which operates Safeway locations, announced a nearly $25 billion deal earlier this year for Kroger to acquire its competitor. Reuters reports the companies trail only Walmart for market share among retail grocers, and that Kroger and Albertsons intend to “divest” some stores.

Leaders for the two companies have defended the merger as enabling them to better compete with Walmart and online retailers like Amazon.

Weiser said he has already received comments about the potential merger, but will announce when his office will visit communities to hear feedback. There will soon be a specific online portal advertised, but in the meantime, Colorado residents can submit comments through the attorney general’s website.

“My experience is we will get some qualitative and some individual testimony,” he said, “that will be helpful to us as we do our analysis and to prepare for the possibility of taking the companies to court to challenge the merger.”

In addition to his overall concerns about the merger, Weiser also filed a brief in King County Superior Court in Washington on Tuesday, advocating for a judge to block a planned $4 billion payout to Albertsons shareholders. The attorney general argued the dividend could weaken the company and leave it less able to compete, especially if the merger ends up failing and Albertsons remains a standalone enterprise.

According to Weiser’s office, there are currently 148 Kroger-operated stores in Colorado and 105 stores operated by Albertsons.

In this file photo, Colorado Attorney General Phil Weiser makes a point at a news conference in Denver on Sept. 15, 2021. 
(AP Photo/David Zalubowski, File)

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