>>> WELCOME TO THIS HEARING FROM
FARM TO KITCHEN TABLE HOW
CONSOLIDATION SPIKES FOOD
PRICES, I AM REPRESENTATIVE
PRAMILA JAYAPAL AND I HAVE THE
HONOR OF REPRESENTING THIS
DISTRICT, WE ARE SO DELIGHTED WE
HAVE SEVERAL COLLEAGUES HERE TO
JOIN US SO BEFORE WE OFFICIALLY
STARTED I WANTED TO INTRODUCE
THEM, CONGRESSWOMAN KIM SCHREIER
FROM THE STATE OF WASHINGTON WHO
SERVES ON THE ENERGY AND
COMMERCE COMMITTEE AND PRIOR TO
THAT DID SERVE ON THE
AGRICULTURE COMMITTEE AS WELL.
CONGRESSWOMAN FROM OREGON. WHO
HAS BEEN A GREAT CHAMPION OF
LABOR AND SITS ON THE HOUSE
TRANSPORTATION COMMITTEE AND
NATURAL RESOURCES COMMITTEE AND
COVERS WOMAN EMILY RANDLE ALSO
FROM OUR STATE. WHO SERVES ON
THE OVERSIGHT COMMITTEE NATURAL
RESOURCES COMMITTEE AND CHAIR OF
THE BETTER PAY AND BENEFITS TASK
FORCE ON THE CONGRESSIONAL
PROGRESSIVE CAUCUS. WE ARE
REALLY PLEASED WE ARE KICKING
OFF THE 1st OFFICIAL FIELD
HEARING OF THE MONOPOLY BUSTERS
CAUCUS WHICH I FORMED IN
CONGRESS ALONG WITH COLLEAGUES
PAT RYAN, CHRIS AND ANDY CRAIG,
VERY GRATEFUL GOVERNOR FERGUSON
IS WITH US TODAY. AND YOU WILL
HEAR FROM HIM SHORTLY ABOUT HIS
WORK IN LEADERSHIP AND TAKING ON
CONSOLIDATION MONOPOLIES GOING
BACK TO THE DAYS WHEN YOU WERE
ATTORNEY GENERAL NOW IN YOUR
POSITION AS GOVERNOR. ALSO,
GRATEFUL TO THE SEATTLE MAYOR
KATIE WILSON FOR HER SUPPORT OF
THIS HEARING SHE IS AT THE
NATIONAL CONFERENCE OF MAYORS SO
SHE'S NOT HERE BUT WE ARE
DELIGHTED TO BE JOINED BY THE
DEPUTY MAYOR. MOST OF ALL WE ARE
GRATEFUL TO OUR WITNESSES
PUTTING SOME WHO HAVE TRAVELED
FROM OTHER STATES TO BE WITH US
TODAY, WE REALLY APPRECIATE IT
AND I LOVE A CHANCE TO INTRODUCE
ALL OF YOU FORMALLY WHEN WE GET
THE HEARING STARTED. A FEW QUICK
HOUSEKEEPING ITEMS, I AM RUNNING
THIS THE WAY WE RUN OFFICIAL
HEARINGS IN WASHINGTON D.C. SO
WE WILL HAVE OPENING STATEMENTS
FROM WITNESSES AND 5 MINUTES OF
QUESTIONS FROM MEMBERS OF
CONGRESS AFTER OUR INTRODUCTION
AND WELCOMES AND WE DO HAVE A
TIMER. THERE IT IS OKAY. IN THE
BACK. SO WE CAN KEEP TRACK OF
TIME AND WE'LL DO OUR BEST TO
LET IT WHEN TIME IS UP AND WE'RE
DOING SOMETHING DIFFERENT THAN
WE DO IN PROFESSIONAL HEARINGS
WITH AN OPPORTUNITY TO TAKE
PUBLIC TESTIMONY FROM ANYONE WHO
WOULD LIKE TO TESTIFY TODAY AND
SPEAK ON THIS ISSUE. YOU WILL
HAVE 1 TO 2 MINUTES SO BE AWARE
OF THAT AND WE WILL TRY TO GET
IN WHATEVER WE CAN AND IT HAS
BEEN LIVE STREAMED BY THE
SEATTLE CHANNEL WITH A RECORDING
AVAILABLE AFTER THE HEARING
CONCLUDES. WITH THAT LET ME
WELCOME THE DEPUTY MAYOR FOR A
BRIEF WELCOME. (
>> THANK YOU CONGRESSMAN,
CONGRESSWOMAN. GOOD EVENING
EVERYONE I AM THE DEPUTY MAYOR
FOR THE CITY OF SEATTLE UNDER
THE ADMINISTRATION OF MAYOR
KATIE WILSON, AS NOTED MAYOR
WILSON IS IN THE OTHER
WASHINGTON AND DOING WHAT SHE
NEEDS TO DO. WORKING AND
CONNECTING WITH OTHER MAYORS
THROUGHOUT THE COUNTRY AS
COLLECTIVELY AS WE TRY TO SOLVE
SOME REALLY REALLY CHALLENGING
ISSUES. WORKING CLOSELY WITH
STATE LEADERS AND FEDERAL
LEADERS IT IS IMPORTANT FOR
MAYOR WILSON TO BE THERE SO SHE
REGRETS NOT BEING HERE AND JOIN
YOU TONIGHT. WE ARE PROUD TO
HOST THIS IMPORTANT FIELD
HEARING FOR THE MONOPOLY BUSTERS
CAUCUS AND WELCOME MEMBERS OF
CONGRESS, GOVERNOR FERGUSON AND
OTHER WITNESSES AND MEMBERS OF
THE PUBLIC I WANT TO EXPEND A
SPECIAL THANK YOU TO THE
CONGRESSWOMAN, WE 1st MET WAS
THAT 10 YEARS AGO HERE AT CITY
HALL. SO IT IS A TIME WARP, SO I
MET CONGRESSWOMAN PRAMILA
JAYAPAL WHEN CITY OF SEATTLE WAS
ON THE FRONT EDGE OF LEADING A
MOVEMENT AROUND MINIMUM WAGE AND
AT THE TIME I WAS A LOWLY POLICY
ADVISOR FOR THE FORMER MAYOR AND
WE NEEDED SOMEONE TO BRING THE
VOICE OF THE IMMIGRANT COMMUNITY
TO THE TABLE AS WE THINK ABOUT
HOW DO WE MAKE SURE WORKERS HAVE
ACCESS TO A LIVABLE WAGE AND
SEATTLE LED THE WAY AND I WANT
TO SAY THANK YOU FOR YOUR
LEADERSHIP DURING THAT TIME AND
DRIVING THAT IMPORTANT WORK AND
WE HAVE SEEN WHAT THAT HAS DONE
ACROSS THE COUNTRY. ALSO WANT TO
ORGANIZE COUNCILMEMBER HERE CITY
COUNCIL MEMBER IS HE HERE? I
THOUGHT I SAW HIM POP IN HERE. I
THINK HE WAS GOING TO COME IN
LATER. ARE THERE ANY OTHER
ELECTED OFFICIALS THAT I DID NOT
MENTION? PLEASE STAND AND
ACKNOWLEDGE. EXCELLENT,
EXCELLENT SO TONIGHT HEARING
FROM FARM TABLE TO KITCHEN TABLE
HOW CONSOLIDATION SPIKES FOOD
PRICES SHINES A LIGHT TOUCHING
EVERY HOUSEHOLD THE RISING COST
OF GROCERIES AND GROWING
CONCENTRATION OF POWER IN THE
FOOD SUPPLY CHAIN FROM FARMS TO
FACTORIES TO GROCERY STORES,
CONSOLIDATION HAS MADE IT HARDER
FOR FARMERS, SMALL BUSINESSES
AND WORKERS TO SURVIVE AND
HARDER FOR FAMILIES TO AVOID THE
BASICS, THIS CONVERSATION IS
CRITICAL TO RESTORE FAIRNESS AND
COMPETITION IN THE FOOD SYSTEM
ENSURING EVERYONE FROM RURAL
COMMUNITIES TO URBAN
NEIGHBORHOODS HAVE ACCESS TO
AFFORDABLE QUALITY FOOD. FOOD
EQUITY IS A TOP PRIORITY FOR THE
ADMINISTRATION AND WE LOOK
FORWARD TO THE PARTNERSHIP THAT
YOU ALL HAVE BEEN LEADING FOR
YEARS TO COME. THANK YOU AGAIN
TO THE MONOPOLY BUSTERS CAUCUS,
CONGRESSWOMAN JAYAPAL AND ALL OF
YOU FOR BEING HERE. WE LOOK
FORWARD TO THE IDEAS AND ACTIONS
THAT WILL COME FROM THIS
CONVERSATION. THANK YOU.
>> THANK YOU SO MUCH. THANK YOU
DEPUTY MAYOR, NOW IT IS MY HONOR
TO WELCOME OUR GOVERNOR,
WASHINGTON STATE GOVERNOR BOB
FERGUSON. JOINING US IN THE
MIDST OF A BUSY LEGISLATIVE
SCHEDULE AND I KNOW YOU CAME UP
FROM OLYMPIA FROM THIS AND I'M
SO GRATEFUL YOU'RE HERE TO
ADDRESS US AND ALL THE WORK ON
THIS, GOVERNOR BOB FERGUSON.
>> THANK YOU SO MUCH
CONGRESSWOMAN AND THINK IT TO
THE CITY OF SEATTLE AND TO THE
MAYOR FOR HOSTING. 1st IS THERE
A BETTER NAME FOR ANY
ORGANIZATION THEN MONOPOLY
BUSTERS CAUCUS? THAT'S NUMBER 1
IN THE 1st REASON I WANTED TO BE
HERE, CAN GOVERNORS BE HONORARY
MEMBERS? I WOULD LOVE IT, A
WONDERFUL CAUCUS AND REALLY
APPRECIATE ALL THE WORK THEY DO
AND ALL MEMBERS OF CONGRESS WHO
ARE HERE I HAVE DEEP RESPECT FOR
EVERY MEMBER WHO SERVES
ESPECIALLY ON THE WEST COAST
TRAVELING TO THE EAST COAST THAT
IS A CHALLENGE ON THE PERSONAL
AND PROFESSIONAL SITE
CHALLENGING WHEN TIMES ARE GOOD
AND TIMES ARE CHALLENGING NOW SO
PLEASE GIVE A ROUND OF APPLAUSE
FOR ALL THE MEMBERS OF CONGRESS
FOR THEIR SERVICE WHICH WE
APPRECIATE. BEFORE I GIVE BRIEF
REMARKS THE CONGRESSWOMAN ASKED
ME TO SPEAK ABOUT THE CASE I
WORKED ON ABOUT THE ISSUES BEING
TOUCHED ON HERE, ONE OF THE MANY
GREAT THINGS ABOUT BEING
GOVERNOR AS WE HAVE THE
WASHINGTONIAN OF THE DAY A SMALL
AWARD WE GIVE OUT THE GOVERNOR
GIVES OUTCOME OF THE CRITERIA BY
THE WAY IS EXTREMELY STRICT,
HOWEVER THE GOVERNOR DECIDES
SHOULD BE WASHINGTONIAN OF THE
DAY THAT'S THE CRITERIA. SO I
HAVE BEEN DEEPLY APPRECIATIVE OF
ALL YOU HAVE DONE. ON BEHALF OF
A GRATEFUL STATE TRULY THIS IS
AN EXAMPLE OF THAT, ORGANIZING
FOLKS TOGETHER ON ISSUES THAT
AFFECT WASHINGTONIANS ACROSS THE
STATE WHO NEED REPRESENTATION. I
AM DEEPLY APPRECIATIVE OF THAT
AND LITERATURE BEING A
CHALLENGING TIME IN THE
NATION'S HISTORY. TYPICALLY
THIS MAY BE THE 1st TIME I
PRESENTED TO AN ELECTED OFFICIAL
BUT WHAT BETTER TIME AND
OCCASION MAN TO PRESENT TO OUR
OWN CONGRESSWOMAN PRAMILA
JAYAPAL, THE MOST PRESTIGIOUS
HONOR IN WASHINGTON STATE, THE
WASHINGTONIAN OF THE DAY. GIVE
HER A ROUND OF APPLAUSE. IT WAS
A SURPRISE AS YOU CAN SEE. THE
CONGRESSWOMAN ASKED ME TO SAY A
FEW WORDS WHICH WAS A PLEASANT
THING TO THINK BACK AS MY TIME
AS ATTORNEY GENERAL AND SOME
WORK WE DID AROUND A ANTITRUST
CASE AND THIS CASE GOES BACK AS
YOU RECALL TO THE PROPOSED
MERGER OF KROGER AND ALBERTSONS
THE GROCERY STORES. 2 OF THE
LARGEST GROCERY STORES OWNERS IN
WASHINGTON STATE AND THE
PROPOSED MERGER, THOSE ENTITIES
COMBINED MAKE UP MORE THAN HALF
OF THE SUPERMARKETS IN
WASHINGTON STATE AND THAT
PROPOSED MERGER IT BECAME CLEAR
TALKING TO MY ANTITRUST TEAM AND
PARTNERS AND FOLKS WHO WORK
THERE , IT WOULD DO HARM TO THE
PEOPLE OF WASHINGTON STATE, TO
THE WORKERS , TO THE PRICES ON
GROCERY PRICES BECAUSE WHEN YOU
CONSOLIDATE ARE PRICES GOING TO
GO DOWN, NO THEY ARE NOT, YOU
CONSOLIDATE THAT KIND OF POWER
AT THAT LEVEL ONLY BAD THINGS
ARE HAPPENING AND AT THE TIME WE
HAD A ANTITRUST TEAM SO I BECAME
ATTORNEY GENERAL THERE WERE 2 OR
3 ATTORNEYS NOT ENOUGH TO TAKE
ON BIG ANTITRUST CASES AND
STATES DON'T PROSECUTE, MANY
DON'T HAVE A ANTITRUST TEAM FOR
PRACTICAL PURPOSES. WE GREW THE
TEAM WHEN THIS CAME ALONG WE
THOUGHT LET'S TAKE A LOOK TO
SEE IF WE COULD CHALLENGE THAT
PROPOSED MERGER, COULD WE AS A
STATE CHALLENGE THAT AND STOP IT
AND AS WE WERE RESEARCHING IT
THERE WAS A LOT OF ARTICLES THAT
SAID IT CANNOT BE DONE BY A
STATE, A STATE CANNOT PULL IT
OFF, THE LEGAL CASE WAS NOT
STRONG, I LISTENED TO MY LEGAL
TEAM IN THE AG OFFICE WHO ARE
FANTASTIC NOT JUST ON ANTITRUST
BUT CIVIL RIGHTS AND STANDING UP
TO THIS MINISTRATION THEY DO
INCREDIBLE WORK. IN THE COURSE
OF GETTING DOCUMENTS FROM KROGER
AND ALBERTSONS ONE GREAT THING
IS YOU CAN SUBPOENA DOCUMENTS
FROM THESE COMPANIES WHEN YOU'RE
BUILDING YOUR CASE. I WILL SHARE
ONE EMAIL FROM A VICE PRESIDENT
OF MARKETING WITH ALBERTSONS WHO
WROTE IN THE EMAIL THAT I
SUSPECT THIS INDIVIDUAL DID NOT
WANT TO SEE THE LIGHT OF DAY
WHEN WE FILED THE CASE AND SET
TALKING ABOUT THE MERGER YOU'RE
BASICALLY CREATING A MONOPOLY IN
GROCERY WITH THE MERGER IT MAKES
NO SENSE THAT'S A VICE
PRESIDENT FROM ALBERTSONS. THAT
IS A COUPLE DOCUMENT TO HAVE IF
YOU'RE BRINGING A LAWSUIT
SAYING THERE'S MONOPOLY AND IT
MAKES NO SENSE, ANOTHER
EXECUTIVE WROTE IT'S ALL ABOUT
PRICING AND COMPETITION AND WE
ALL KNOW WITH THE MERGER PRICES
WILL NOT GO DOWN. THEY KNEW,
THEY WERE WRITING THIS TO EACH
OTHER SO WE THINK ABOUT THE
CONVERSATION WE ARE HAVING.
THESE ARE THE EMAILS THAT ARE
GOING ON BETWEEN EXECUTIVES AT
LARGE CORPORATIONS THAT THEY
DON'T THINK YOU'LL EVER SEE,
THEY KNOW WHAT'S GOING ON, THEY
KNOW WHAT'S GOING TO HAPPEN AND
THEY GO FORWARD ANYWAY SO THE
GOOD NEWS IS MY TEAM BROUGHT THE
CASE, WE BROUGHT THE CASE HERE
IN WASHINGTON STATE AND WE WON.
WE STOPPED THE MERGER. SO
PARTNERS FROM YOU CW WERE HUGE
PARTNERS AND THE LAST THING I
WILL SAY IS IT IS AN EXAMPLE AND
I APPRECIATE THE CHANCE TO SAY A
FEW WORDS BUT IT IS THE EXAMPLE
WE ALL HAVE DIFFERENT ROLES TO
PLAY , DIFFERENT OFFICIALS HAVE
DIFFERENT POWERS, DIFFERENT
ELECTED OFFICIALS HAVE CERTAIN
POWERS, GOVERNOR, STATE
LEGISLATORS, REPRESENTATIVES
HAVE BILL BEFORE THE SESSION
THEY GET TO GROCERY STORE PRICES
THAT ARE REALLY IMPORTANT TO
PASS THIS SESSION. WE ALL HAVE A
ROLE IN THIS AND THAT'S WHY I
APPRECIATE ALL OF YOU BEING HERE
IN THIS CONVERSATION WITH THE
WONDERFUL SPEAKERS WE HAVE AND
PROFESSIONAL LEADERS, HONORED TO
BE HERE WITH YOU, I APPRECIATE
THE WORK YOU'RE DOING, I HOPE
YOU HAVE A WONDERFUL EVENING.
THANK YOU SO MUCH EVERYBODY
APPRECIATE IT.
>> THANK YOU SO MUCH GOVERNOR,
FOR ALL THE WORK YOU HAVE BEEN
DOING IN THE PARTNERSHIP ,
GETTING STARTED WITH THE
OFFICIAL HEARING NOW I WANT TO
RECOGNIZE MYSELF 5 MINUTES FOR A
OPENING STATEMENT. THIS HEARING
IS THE 1st OF A SERIES OF FIELD
HEARINGS HOSTED BY THE MONOPOLY
BUSTERS CAUCUS A CONGRESSIONAL
CAUCUS CONSISTING OF 34 MEMBERS
OF CONGRESS RIGHT NOW INCLUDING
FROM SOME OF THE TOUGHEST SWING
DISTRICTS IN THE COUNTRY.
DEDICATED TO FIGHTING CORPORATE
MONOPOLY MAKING LIFE MORE
AFFORDABLE IN AREAS LIKE
HEALTHCARE, FOOD, HOUSING AND
UTILITIES. THE CAUCUS SEEKS TO
FIND LEGISLATIVE SOLUTIONS THAT
WILL RESTRUCTURE ECONOMY SO
CONSUMERS WORKERS AND SMALL
BUSINESSES CAN THRIVE NOT JUST
SURVIVE. TODAY WE ARE ADDRESSING
CONSOLIDATION IN ONE OF THE MOST
BASIC NECESSITIES OF OUR LIVES,
FOOD. WE HAVE ALL SEEN PRICES OF
GROCERIES SKYROCKETING IN RECENT
YEARS AND WHILE THE PANDEMIC AND
GLOBAL BOARDS SIGNIFICANTLY
STRAIN THE SUPPLY CHAIN IT'S
ALSO IMPORTANT TO RECOGNIZE THAT
THE VERY STRUCTURE OF
CONSOLIDATION IS A CENTRAL AND
CRUCIAL FACTOR TO THE TREMENDOUS
SPIKE IN GROCERY PRICES. TODAY,
WE RELY ON A VERY SMALL GROUP OF
MEGACORPORATIONS THAT CONTROL
THE SUPPLY CHAIN ALL THE WAY
FROM FARM TO TABLE. FOR DECADES,
CORPORATIONS HAVE SWALLOWED UP
SMALLER COMPETITORS TO THE POINT
THEY CAN NOW RAISE PRICES AND
REDUCE CHOICE WITHOUT
CONSEQUENCE. FROM THE FARMS
WHERE THE FOOD IS SOURCED TO THE
FACTORY WHERE THE FOOD IS
MANUFACTURED AND DISTRIBUTED TO
THE GROCERY STORE WHERE THE FOOD
IS SOLD TO YOU , THE CONSUMER.
SO WE START WITH FARMS THAT GROW
OUR FOOD. WHEN TALKING ABOUT
RECORD HIGH BEEF PRICES THAT WE
SEE TODAY, WE SEE THAT 80% OF
THE BEEF MARKET IS NOW
CONTROLLED BY 4 COMPANIES. JPS,
TYSON AND THE NATIONAL BEEF
PACKING COMPANY. THEY CONTROLLED
THE SLAUGHTER, THE PROCESSING,
THE DISTRIBUTION OF MOST BEEF IN
THE COUNTRY WHICH IS DETERMINED
HOW MUCH BEEF IN THE COUNTRY
COSTS AND SHORTCHANGES FARMERS
BECAUSE THOSE FARMERS HAVE SO
FEW OPTIONS OF WHERE THEY CAN
SELL THEIR BEEF. THIS
CONSOLIDATION IS SEEN IN OTHER
SECTORS AS WELL. WHAT IS THE RAW
INGREDIENTS OF FOOD HARVESTED,
THERE PROCESSED AND PACKAGED BY
A SMALL SET OF CORPORATIONS LIKE
KELLOGG, GENERAL MILLS AND CRAFT
TINES, IF YOU WALK DOWN THE
AISLES OF YOUR GROCERY STORE,
YOU MAY SEE 1 MILLION DIFFERENT
BRANDS SO YOU MIGHT THINK YOU
HAVE THESE DIFFERENT CHOICES OF
PRODUCTS MANUFACTURED BY
DIFFERENT COMPANIES, COMPETITION
RIGHT? WRONG. ALL OF THESE
DIFFERENT BRANDS ARE MOSTLY
OWNED BY JUST A FEW COMPANIES.
SO WHEN YOU THINK YOU'RE
CHOOSING BETWEEN A BOX OF CEREAL
FROM CHEERIOS , LUCKY CHARMS AND
CINNAMON TOAST CRUNCH, YOU ARE
BUYING CEREAL FROM JUST ONE
COMPANY. GENERAL MILLS. THESE
GOODS ARE THEN DISTRIBUTED BY
WHOLESALERS THAT DICTATE MOST OF
WHAT ENDS UP AT THE GROCERY
STORES, THESE DISTRIBUTOR'S
LIKE UNITED NATIONAL FOOD EAT
INTO SUPPLIER MARGINS BY
IMPOSING BURDENSOME AND OPAQUE
FEES MAKING IT ESPECIALLY HARD
FOR SMALL AND MEDIUM-SIZED FOOD
BUSINESSES TO BREAK INTO THE
INDUSTRY. FINALLY THE FOOD
ARRIVES AT THE GROCERY STORE,
THE TRADITIONAL SUPERMARKET
INDUSTRY HAS SHRUNK AS A HANDFUL
OF BIG-NAME GROCERS HAVE
ACQUIRED SMALLER LOCAL AND
REGIONAL RIVALS AND YOU HEARD
FROM THE GOVERNOR ABOUT THIS.
NOW WALMART, KROGER, ALL THE AND
ALBERTSONS NOW OWNS 1/3 OF ALL
THE COULD YOU GROCERY STORE
LOCATIONS. THIS CONSOLIDATION
GIVES STORES THE ABILITY TO
RAISE PRICES AND WORSEN WORKING
CONDITIONS WITHOUT NEARLY ANY
CONSEQUENCES TO THEIR BOTTOM
LINE. THAT CONSOLIDATION RESULTS
IN STORE CLOSURES AND BOXES OUT
INDEPENDENT GROCERY STORES.
THESE BIG GROCERS GET REALLY
STEEP DISCOUNTS IN THE FOOD THAT
THEY BUY THAT MAKE IT IMPOSSIBLE
FOR SMALL INDEPENDENT GROCERS TO
SURVIVE. THIS HAS RESULTED IN
FOOD DESERTS ACROSS THE COUNTRY
AND WE HAVE A NATIONWIDE MAP IF
YOU CAN SEE IT HERE, A MAP JUST
RELEASED BY THE INSTITUTE FOR
LOCAL SELF-RELIANCE. IT ACTUALLY
IDENTIFIES WHERE THERE ARE FOOD
DESERTS ACROSS THE COUNTRY. SO
IT IS TIME WE ADDRESS THE
CONSOLIDATION HAD ON AND THIS
HEARING IS THE 1st STEP TOWARD
UNDERSTANDING THE ROOT CAUSES OF
WHY OUR ECONOMY HAS FAILED TO
DELIVER AFFORDABLE FOOD FOR
AMERICANS AND THINKING OF
SOLUTION TO LOWER COSTS SO I'M
GRATEFUL TO MY COLLEAGUES FOR
BEING HERE AND TO ALL WITNESSES
FOR BEING HERE TO SHINE A LIGHT
ON WHAT'S HAPPENING IN THE FOOD
SYSTEM. SEVERAL ARE BASED IN
WASHINGTON STATE BUT I KNOW A
COUPLE OF YOU HAVE TRAVELED FROM
OTHER STATES SO WE ESPECIALLY
APPRECIATE YOU MAKING TIME TO BE
WITH US AND SPEAK OF YOUR
EXPERIENCES OF THE CONSOLIDATED
FOOD SYSTEM. WITH THAT IT IS MY
PLEASURE TO INTRODUCE TODAY'S
WITNESSES. INDEPENDENT CATTLE
PRODUCER, BUSINESS ENTREPRENEUR
AND FAMILY FARM ADVOCATE BASED
IN COLORADO SPRINGS, COLORADO.
AFTER EARNING HIS BACHELOR'S
DEGREE IN ANIMAL SCIENCE HE
BEGAN HIS CAREER IN CATTLE
FARMING AND RANCHING IN KANSAS
IN 1978, AFTER GROWING HIS
BUSINESS HE BEGAN SPEAKING OUT
AGAINST THE GROWING MARKET POWER
OF THE MEAT PACKING COMPANIES.
IN 2000 HE FORMED RANCH FOODS
DIRECT TO SELL HIGH-QUALITY
NATURALLY RAISED BEEF DIRECTLY
TO CUSTOMERS INSTEAD OF THEIR
LARGE MEAT PACKING COMPANIES. HE
HAS BEEN A FOUNDING MEMBER OF
FARM ADVOCACY GROUPS INCLUDING
OUR CALF AND ORGANIZATION FOR
COMPETITIVE MARKETS. CYNTHIA
DURAND IS A ENTREPRENEUR AND
SMALL BUSINESS OWNER BASED IN
WASHINGTON STATE. IN 2021 SHE
FOUNDED A SALVADORAN FROZEN FOOD
COMPANY INSPIRED BY HER CULTURAL
ROOTS. THE COMPANY IS A
MANUFACTURER AND CONSUMER
PACKAGED GOODS BRAND BASED IN
ARLINGTON WASHINGTON, THE 1st
SALVADORAN FROZEN FOOD BRAND IN
THE UNITED STATES AND HAS
RECEIVED NATIONAL RECOGNITION
FOR INNOVATION AND CONTRIBUTION.
BORN AND RAISED IN LOS ANGELES,
SHE WORKED AS A DATA ANALYST FOR
FORTUNE 500 COMPANIES PRIOR TO
STARTING HER FOOD BUSINESS.
MELISSA ROSE HAS WORKED IN
RETAIL STORES FOR A DECADE AND
IS CURRENTLY EMPLOYEE OF
KROGER'S FRED MEYER'S GROCERY
STORE IN SHORELINE WASHINGTON.
SHE IS A LINE MEMBER AND STEWARD
FOR THE UNITED FOOD AND
COMMERCIAL WORKERS UNION SHE
PREVIOUSLY WORKED IN THE FRED
MEYER STORE LOCATED IN THE LAKE
CITY NEIGHBORHOOD OF SEATTLE
WASHINGTON UNTIL KROGER CLOSED
THE STORE IN OCTOBER 2025. EMILY
CHASE IS THE CO-OWNER OF
CHASE'S MARKET A
THIRD-GENERATION FAMILY OWNED
INDEPENDENT GROCERY STORE IN
OREGON THAT FOCUSES ON PROVIDING
HEALTHY AND ORGANIC PRODUCED FOR
THE COMMUNITY, SHE SERVES ON THE
BOARD OF DIRECTORS OF THE
INDEPENDENT NATURAL FOOD
RETAILERS ASSOCIATION WHICH
REPRESENTS AND PROVIDES
RESOURCES FOR INDEPENDENT
NATURAL RETAILERS ACROSS THE
COUNTRY. SHE EARNED HER BA IN
BUSINESS MARKETING AND MUSIC
FROM THE COLLEGE OF IDAHO.
JONATHAN CANTOR IS THE FORMER
ASSISTANT ATTORNEY GENERAL OF
ANTITRUST DIVISION OF THE
DEPARTMENT OF JUSTICE FROM 2021
TO 2024. A ROLE WE WORKED
CLOSELY TOGETHER ON OR IN AND HE
WAS A CHAMPION ON THIS ISSUE ON
SO MANY LEVELS, PRIOR TO LEADING
ANTITRUST DIVISION MR. CANTOR
WAS A PARTNER IN THE WASHINGTON
D.C. OFFICE IS OF NATIONAL LAW
FIRMS AND FOUNDER OF THE
BOUTIQUE ANTITRUST LAW FIRM
DEDICATED TO PROMOTING ANTITRUST
ENFORCEMENT, MR. CANTOR BEGAN
HIS CAREER AS AN ATTORNEY FOR
THE FEDERAL TRADE COMMISSION
BUREAU OF COMPETITION. HE EARNED
HIS JD FROM WASHINGTON
UNIVERSITY IN ST. LOUIS AND BA
FROM THE STATE UNIVERSITY OF NEW
YORK AT ALBANY. THANK YOU FOR
BEING HERE AND WE ASK YOU
SUMMARIZE YOUR TESTIMONY IN 5
MINUTES AND TO HELP YOU STAY
WITHIN THE TIME YOU HAVE THE
TIME TO KEEP TRACK. PLEASE
BEGIN.
>> GOOD EVENING AND THANK YOU
FOR INVITING ME TO BE HERE. I
GREATLY APPRECIATE THE
OPPORTUNITY. I AM A CATTLE AND
MEAT PRODUCER WITH OPERATIONS IN
KANSAS AND COLORADO. I'M HERE
TODAY BECAUSE I HAVE DIRECTLY
EXPERIENCED THE DETERIORATION
AND NEAR COLLAPSE OF AGRICULTURE
SYSTEM DUE TO DECADES OF ABUSIVE
PRACTICES LIKING ANTITRUST LAW
ENFORCEMENT AND GROWING MONOPOLY
CONTROL. IN 1972 A LOCAL BANKER
LOANED ME THE MONEY TO BUY MY
1st COW'S AND IN 1978 I BUILT A
COMMERCIAL FEED YARD. THE CALF
FEEDER AND FINISHED CATTLE
MARKETS WERE COMPETITIVE AND
OPENED ALL PRODUCERS, THERE WERE
AS MANY AS 20 REGIONAL MEAT
PACKERS FROM 6 STATES WILLING TO
BUY MY CATTLE. FARMS WERE
DIVERSIFIED , EMPLOYING FAMILY
MEMBERS, RAISING CROPS AND
LIVESTOCK BUT A DECADE LATER THE
BIGGEST MEAT PACKER NOW OWNED BY
TYSON CAME INTO THE AREA AND
BUILT THE WORLD'S LARGEST MEAT
PLANT. IT SOON BECAME CLEAR THAT
THEY WERE ENGAGING IN PREDATORY
PRICING AND LEVERAGING THEIR
SIZE TO CONTROL SUPPLY. IN A FEW
SHORT YEARS, SMALLER INDEPENDENT
REGIONAL PLANTS CLOSED AND IBP
CONTINUED WITH THE WALL STREET
JOURNAL REFERRED TO AS THE DEATH
MARCH. WIPING OUT SMALLER PLANTS
ACROSS THE COUNTRY. AS THE
PLANTS WENT OUT OF BUSINESS FEED
YARD STRUGGLED TO SELL LIVESTOCK
TO FEWER AND FEWER BUYERS.
WINDOWS NARROWED AND TAKE IT OR
LEAVE IT BECAME THE NORM. FEED
YARDS WERE FEARFUL TO SPEAK OUT,
SEEKING RELIEF FROM THE MISERY
OF SELLING IN A CONTROLLED
MARKET AND SCRAMBLE LIKE IN A
GAME OF MUSICAL CHAIRS TO LINE
WITH IBP ANY OTHER BIG MEAT
PACKERS TO WHAT IS KNOWN AS
ALTERNATIVE MARKETING AGREEMENTS
OR AMA'S, GIVING THE BIGGEST
FEEDERS PREFERENTIAL TREATMENT
FOR PROVIDING SUPPLIES USED TO
DEPRESS THE CASH MARKET. THE BIG
FEED YARDS GOT BIGGER WHILE THE
SMALLER , LOW COST AND MORE
EFFICIENT FEEDERS WENT OUT OF
BUSINESS, AFTER SPEAKING OUT
AGAINST THE CONSOLIDATION IN
1996 I JOINED A FEDERAL LAWSUIT
CLAIMING ANTICOMPETITIVE
PRACTICES UNDER THE PACKERS AND
STOCKYARDS ACT, A LAW DESIGNED
SPECIFICALLY TO PROTECT
PRODUCERS OF LIVESTOCK. BY 1998
I WAS DOWN TO 1 BUYER AND OTHER
BIG MEAT PACKERS DROP BY TO
OFFER WHAT WAS REFERRED TO AS A
BID NOT TO BUY. LOWBALL PRICE SO
LOW THAT THEY KNEW I WOULD
REJECT IT. THE PRACTICE WAS USED
TO CONDITION DESPERATE CATTLE
SELLERS TO ACCEPT LOWER PRICE
FROM THE DESIGNATED BUYER. IT
WAS CLEARLY HIGHLY PROFITABLE
BIG MEAT PACKERS WERE
COOPERATING DELEGATING
TERRITORIES AND PUSHING PRICES
LOWER FOR CATTLE PRODUCERS WHILE
HANDING HUGE MARGINS TO THE BIG
GROCERY STORES WHO CHARGE HIGHER
PRICES UNRELATED TO THE PRICE OF
CATTLE. I HAD 14,000 CATTLE IN
MY FEED YARD WHEN IT WAS
INFORMED BY MY ONLY BUYER,
NATIONAL BEEF THAT THEY WERE
DONE BUYING FROM ME. I ASKED THE
THEN SEC. OF AGRICULTURE WHY HE
WAS NOT ENFORCING PACKERS AND
STOCKYARDS ACT AND HE RESPONDED
AND I QUOTE IN THIS MODERN DAY
OF GLOBALIZATION WE NEED BIG
COMPANIES THAT CAN DO BUSINESS
GLOBALLY. I HAD NO CHOICE BUT TO
CLOSE MY FEED YARD AND IN 2000 I
DECIDED TO SCALE BACK AND SELL
MEAT DIRECTLY TO THE CONSUMER
RATHER THAN LIVE CATTLE TO THE
MEAT PACKERS WHO CONTINUE TO
OPERATE ABOVE THE LAW. OVERALL
FEED DEMAND IS AT RECORD HIGHS
WITH THE BIG MEAT PACKERS
CONTROLLING 80% OF THE MARKET
AND THEY SELL BEEF EQUALLY
CONCENTRATED GROCERY STORE AND
FOOD SERVICE SECTOR, TODAY
PRODUCERS SHARE THE CONSUMER
DOLLAR IS DOWN BY ALMOST 40%
FROM WHEN I BOUGHT MY 1st COW
WAS. FOR HALF CATTLE PRODUCERS
ARE OUT OF BUSINESS, 86,000
INDEPENDENT FEED YARDS LIKE ME
ARE GONE, MEANWHILE BIG MEAT
PACKERS LIKE TYSON ARE
SHUTTERING PLANS IN RURAL
COMMUNITIES. IN CLOSING I
BELIEVE IT IS PAST TIME TO BREAK
UP THE BIG MEAT PACKING, BIG
RETAIL AND BIG FOOD SERVICE
COMPANIES AND AGGRESSIVELY
REBUILD , PROTECT AND SUPPORT
LOCAL REGIONAL INFRASTRUCTURE,
THANK YOU FOR YOUR LEADERSHIP ON
THIS ISSUE I LOOK FORWARD TO
QUESTIONS.
>> THANK YOU SO MUCH, YOU ARE
RECOGNIZED 5 MINUTES.
>> HI. HERE'S THE FOUNDER OF A
FROZEN FOOD COMPANY BUT MORE
IMPORTANTLY AS A SMALL BUSINESS
OWNER NAVIGATING A SYSTEM
INCREASINGLY MAKING IT HARDER
FOR INDEPENDENT MANUFACTURERS TO
SURVIVE. BOTH A FROZEN FOOD
MANUFACTURE AND CONSUMER
PACKAGED GOODS BRAND 2 ENTITIES
UNDER ONE ROOF WE MANAGE OUR OWN
FACILITY REGULATORY COMPLIANCE,
PRODUCTION, LABOR AND LOGISTICS
WHILE HANDLING MARKETING, SALES
, BRANDING AND RETAIL OUTREACH,
BOTH ARE TIME-CONSUMING, HIGHLY
REGULATED AND LEAVE LITTLE ROOM
FOR ERROR. XINCA FOODS IS
SELF-FUNDED I HAVE INVESTED MY
OWN SAVINGS AND MY FAMILY HAS
INVESTED THEIR SAVINGS INTO THE
BUSINESS, THERE IS NO VENTURE
CAPITAL BEHIND US, NO SAFETY
NET, NO WEALTHY BACKER ABSORBING
LOSSES EVERY DECISION CARRIES
REAL PERSONAL RISK, THE BUSINESS
REPRESENTS SACRIFICING LONG
HOURS AND THE BELIEF THAT HARD
WORK AND PERSISTENCE SHOULD MEAN
SOMETHING IN THIS COUNTRY. THE
SCALE OF FOOD MANUFACTURING
OPERATIONS TO A SIZE WHERE IT
CAN COMPETE WITH ESTABLISHED
BRANDS REQUIRES AN ENORMOUS
AMOUNT OF MONEY, THIS PUTS THIS
VENTURE OUT OF REACH FOR MOST
PEOPLE. REALISTICALLY THERE ARE
ONLY 2 VIABLE PATHS TO ACHIEVE
THIS STARTING WITH AND SPENDING
SIGNIFICANT PERSONAL WEALTH OR
SECURING AN INVESTOR WILLING TO
FUND A VENTURE FROM THE
BEGINNING, FOUNDERS WITHOUT
THOSE ADVANTAGES THE PLAYING
FIELD IS NOT LEVEL IT IS
STRUCTURALLY TILTED AGAINST US.
THESE CHALLENGES ARE COMPOUNDED
WHEN DEALING WITH LARGE NATIONAL
DISTRIBUTORS SUCH AS SMALL
BUSINESSES THAT DO NOT HAVE THE
SIZE OR LEVERAGE TO NEGOTIATE
FAVORABLE TERMS. WE SPENT A
UNWARRANTED AMOUNT OF TIME ,
MANY OF THESE ARE NOT LEGITIMATE
OR ARE THE RESULT OF ERRORS YET
DISPUTING THEM REQUIRES TIME,
EXPERTISE AND STAFFING THAT
SMALL BUSINESSES DO NOT HAVE.
THESE PRACTICES QUIETLY DRAIN
RESOURCES FROM SMALL
MANUFACTURERS WHILE UNDER
COMPANIES ARE BETTER POSITIONED
TO BYPASS THEM. AT THE SAME TIME
SMALLER REGIONAL DISTRIBUTORS,
MOST HISTORICALLY SUPPORTED
LOCAL AND EMERGING BRANDS ARE
DISAPPEARING DUE TO
CONSOLIDATION. AS NATIONAL
DISTRIBUTORS DOMINATE THE MARKET
COMPETITION SHRINKS THIS MARKET
CONCENTRATION REMOVES INCENTIVE
FOR LARGER DISTRIBUTORS TO OFFER
SERVICES IN A COMPETITIVE WAY
WHICH INCREASES COST FOR
MANUFACTURERS AND RAISES PRICES
FOR CONSUMERS. DISTRIBUTOR'S
MEAN FEWER CHOICES, LESS
INNOVATION AND FEWER SMALL
BUSINESSES TO GROW. I SAY THIS
PLAINLY AND HONESTLY FOR MYSELF
AND ENTREPRENEURS THE AMERICAN
DREAM FEELS OUT OF REACH ONE
HARD WORK PERSONAL SACRIFICE AND
FAMILY SAVINGS ARE NOT ENOUGH TO
COMPETE IN A CONSOLIDATED MARKET
SOMETHING IS BROKEN. THE DREAM
SHOULD NOT BE RESERVED FOR THOSE
WHO ARE ONLY WELL-CONNECTED.
I'M NOT ASKING FOR SPECIAL
TREATMENT I AM ASKING FOR FAIR
TREATMENT. WE NEED PEOPLE IN
POSITIONS OF POWER TO ADVOCATE
FOR INDEPENDENT MANUFACTURERS
AND FOR THE LOCAL DISTRIBUTORS
TO EXIST. POLICIES THAT ADDRESS
CONSOLIDATION PROMOTE
TRANSPARENCY AND ENFORCE
ACCOUNTABILITY WHICH HELP
RESTORE BALANCE, IF WE CARE
ABOUT ENTREPRENEURS LOCAL JOBS
FOOD AFFORDABILITY AND CONSUMER
CHOICE WE MUST CARE ABOUT WHO IS
ABLE TO PARTICIPATE IN THE
MARKET. I URGE YOU TO STAND WITH
SMALL BUSINESSES LIKE MINE AND
HELP ENSURE THE AMERICAN DREAM
IS NOT SOMETHING WE TALK ABOUT
IN THE PAST TENSE BUT SOMETHING
FUTURE FOUNDERS CAN
REALISTICALLY PURSUE. AS WE LOOK
INTO THE FUTURE, WE, YOU AND I
AND THE GOVERNMENT MUST RESIST
IMPATIENT TO ALLOW FURTHER
CONSOLIDATION OF THE FOOD
SYSTEM. THANK YOU.
>> THANK YOU SO MUCH, THIS ROSE
YOUR RECOGNIZE.
>> THANK YOU FOR INVITING ME TO
THIS HEARING. I WORK WITH THE
LAKE CITY FRED MEYER ALMOST 5
YEARS, HAVE TAKEN ON ROLES IN
ALMOST EVERY DEPARTMENT WITH A
VARIETY OF TITLES BUT I'M
CURRENTLY THE LEAD OF THE HEALTH
FOOD AND BEAUTY DEPARTMENT. FOR
THOSE WHO DO NOT KNOW LAKE CITY
IS A PROUD WORKING-CLASS
NEIGHBORHOOD IN NORTH SEATTLE,
LIKE MANY GROCERY STORES OURS IS
A ANCHOR SHOP IN THE COMMUNITY.
WE HAVE STOOD AT THE NEXUS OF
SEVERAL BUS LINES WITHIN WALKING
DISTANCE TO SINGLE-FAMILY HOMES
AND NUMEROUS APARTMENT
COMPLEXES. MY WIFE AND I LIVED
THERE, WE WALKED TO WORK AS DID
MANY OF MY COWORKERS. ELDERLY
PEOPLE IN NEARBY HOMES WALK INTO
OUR STORE THE ONLY PHARMACY IN
THE NEIGHBORHOOD FOLLOWING THE
CLOSURE OF WALGREENS AND RIGHT
8. AUGUST 19 THE LAST YEAR
GROUPS OF EMPLOYEES WERE CALLED
INTO CLOSED-DOOR MEETINGS, AT
THE MEETINGS THEY TOLD US THE
STORY WOULD CLOSE IN OCTOBER.
THEY GAVE US NO SPECIFIC DATE
AND WE DO NOT RECEIVE AN
OFFICIAL DATE UNTIL ONE WEEK
BEFORE WE CLOSED. THE NEWS DID
NOT MAKE SENSE TO ANYONE, I
EVENTUALLY LEARNED CORPORATE
PLAN TO CLOSE LOW PERFORMING
STORES, BUT DURING MY TIME I
DON'T REMEMBER A PERIOD WHEN
THE STORE WAS NOT BUSY. THE
PARKING LOT WAS CONSISTENTLY
FULL, THE BUS LINES BROUGHT
PLENTY OF PEOPLE IN AND AS I
MENTIONED IT WAS A VERY WALKABLE
NEIGHBORHOOD. NONE OF THAT
SEEMED TO MATTER LEAVING IN A
RED WITH A PHARMACY DID NOT
MATTER, BEING THE ANCHOR AT OF A
MIDDLE-CLASS WORKING COMMITTEE
DID NOT SEEM TO MATTER. THE ONLY
THING THAT SEEMED TO MATTER WAS
THE BOTTOM LINE. UNFORTUNATELY
THE STORE CLOSURE WAS NOT THE
ONLY DECISION MOTIVATED BY
DESIRE FOR PROFIT OVER COMMUNITY
NEEDS. I'VE HELD SO MANY TITLES
ON THE STORE PARTLY BECAUSE
CORPORATE HAS BEEN RUNNING
SKELETON CREWS FOR YEARS. WITH
STAFFING SALTING MANAGERS
REGULARLY HAVE TO PULL WORKERS
FROM ONE DEPARTMENT TO PLUG THE
HOLE IN ANOTHER. RUNNING THAT
LIEN MAKES IT DIFFICULT TO
DELIVER THE LEVEL OF SERVICE
CUSTOMERS DESERVE CONTRIBUTE TO
LONGER LINES AND EMPTY SHELVES
AND MEET ME LESS TIME TO GET
WORK DONE CAUSING US TO FEEL
PRESSURE TO SKIP BRAKES OR EVEN
LUNCHES. THIS LEADS TO
EXHAUSTION AND BURNOUT, THIS
MAKES GETTING WORK DONE EVEN
HARDER LEADING TO MORE BURNOUT
AND SPIRALING OUT OF CONTROL.
THIS KIND OF CHURN AND BURN
CULTURE RIGHT NOW MAKES IT HARD
TO RETAIN SKILLED EXPENSED
WORKERS TO HELP RUN A STORE
EFFICIENTLY AND DEVELOP
RELATIONSHIPS WITH CUSTOMERS TO
KEEP THEM COMING BACK. THIS IS
WHAT HAPPENS WHEN CORPORATIONS
GROW INTO GIANTS WE GIVEN THE
POWER TO CRUSH EVERYTHING IN
THEIR PATH , THEY GROW BIGGER
GRIND DOWN WORKERS AND FLATTEN
COMMUNITY STORES INTO NUMBERS ON
A SPREADSHEET. WHILE THE UNION
DOES A GREAT JOB FIGHTING FOR
WHAT WE NEED AT THE BARGAINING
TABLE THEIR GROWTH REDUCES OUR
POWER AT THE BARGAINING TABLE,
THESE COMPANIES ARE NATIONAL BUT
WE HAVE TO BARGAIN WITH THEM
LOCAL. THIS DOES NOT HAVE TO BE
THE FUTURE OF GROCERY WORK
COMING OF THE POWER TO CALL OUT
COMMUNITIES PLEASE USE THAT
POWER TO PROTECT ACCESS TO FRESH
FOOD AND WORKERS WHO SHOW UP
EVERY DAY TO PROVIDE IT.
>> THANK YOU SO MUCH MS. CHASE
YOU RECKON IS, PULL THE MICRO
NICE AND CLOSE TO YOU SO WE CAN
MAKE SURE WE HEAR YOU.
>> HOW IS THAT? GOOD EVENING
MEMBERS OF CONGRESS. THANK YOU
FOR THE OPPORTUNITY TO TESTIFY
AT TODAY'S FIELD HEARING. MY
NAME IS EMILY CHASE A CO-OWNER
OF CHASE'S MARKET IN ONTARIO.
THIRD-GENERATION 1800 FT.÷
NATURAL FOOD STORE AND THIS
SUMMER WE WILL CELEBRATE THE
75th ANNIVERSARY, SINCE 2014 MY
BUSINESS HAS BEEN ONE OF 350
MEMBERS OF THE INDEPENDENT
NATURAL FOOD RETAILERS
ASSOCIATION. I CURRENTLY SERVE
ON THE BOARD OF DIRECTORS.
TOGETHER WE REPRESENT HUNDREDS
OF NATURAL FOOD GROCERY STORE
SERVING MILLIONS OF AMERICANS
WHO RELY ON LOCAL STORES FOR
AFFORDABILITY, CHOICE AND
ACCESS. INDEPENDENT GROCERS ARE
AN ESSENTIAL PART OF THE FOOD
AND ECONOMIC AND FOR STRUCTURE
OF COMMUNITIES ESPECIALLY IN
RURAL AND LOW-INCOME AREAS WHERE
OPTIONS ARE LIMITED AND PRICE
MATTERS AS THE PANEL KNOWS
GROCERY RETAIL IS CONCENTRATED
WHAT MATTERS IS HOW THE
CONCENTRATION SHOWS UP ON THE
GROUND PARTICULARLY IN
DISTRIBUTION AND ACCESS FOR
INDEPENDENT RETAILERS. WHEN IT
CONTROLS WHERE FOOD IS SOLD IT
INFLUENCES ACCESS DISTRIBUTION
AND THE TERMS UNDER WHICH
PRODUCTS REACH THE MARKET, LARGE
CHAINS OPERATE DISTRIBUTION
CENTERS BUT THEY ALSO RELY
HEAVILY ON SHARED DISTRIBUTORS
USED BY INDEPENDENTS. I SEE
FIRSTHAND HOW THE PURCHASING
POWER OF DOMINANT CHAINS SHAPES
WHAT DISTRIBUTOR SCARY, THE
TURNS IN THE WAREHOUSE AND WHAT
DISAPPEARS, AS GROCERY RETAIL
HAS BECOME MORE CONSOLIDATED ,
INDEPENDENT GROCERY STORES
INCLUDING NATURAL FOOD RETAILERS
HAVE DECLINED IN NUMBERS. THIS
COINCIDES WITH THE INCREASED
BUYING CONCENTRATION AND GREATER
INFLUENCE BY THE LARGEST GROCERY
CHAINS INCLUDING KROGER AND
ALBERTSONS WITH SHARE
DISTRIBUTION SYSTEMS. AS
CONSOLIDATION INCREASES,
BARGAINING POWER SHIFTS TOWARD
THE LARGEST BUYERS MAKING IT
HARDER FOR INDEPENDENT STORES TO
ACCESS DISTRIBUTION ON
COMPETITIVE TERMS, WHEN
INDEPENDENT STORES LOSE ACCESS
OR PAY MORE FOR THE SAME GOODS,
SURVIVAL BECOMES HARDER. WHEN
INDEPENDENT IS SQUEEZED FOOD
BECOMES MORE EXPENSIVE, CHOICE
DISAPPEARS AND ACCESS RINGS. IN
GROCERY RETAIL WE ARE BEHOLDEN
TO THE POINT OF DISTRIBUTION. IN
PRACTICE THIS MEANS IF A PRODUCT
DOES NOT WORK FOR THE BIGGEST
CHANGE MY CUSTOMERS MAY NOT SEE
IT AT ALL EVEN WHEN DEMAND
EXISTS IN OUR COMMUNITY. THIS
LIMITS PRODUCT DIFFERENTIATION,
RESTRICTS CHOICE AND SLOWS
INNOVATION FROM SMALL BRANDS
THAT NEED TO STATION TO GROW.
AFFORDABILITY IS AFFECTED IN THE
SAME WAY. INDEPENDENT GROCERS
BUY FROM THE SAME SUPPLIERS AS
THE LARGE CHAINS BUT UNDER
DIFFERENT CONDITIONS EVEN WITH
INTEREST COLLECTIVE SUPPLY
AGREEMENTS INDEPENDENT GROCERS
ROUTINELY PAY 5 TO 15% MORE
WHOLESALE FOR THE SAME PRODUCTS.
THIS IS WHY INFRA EXISTS,
PARTICIPATION IS NOT INCREASING
PROFITS IT'S ABOUT SURVIVAL AND
INCREASING VOLUME. IT ALLOWS
INDEPENDENT RETAILERS TO PULL
LIMITED LEVERAGE AND REMAIN
VIABLE IN A SYSTEM THAT
INCREASINGLY FAVORS SCALE. IN
2024 MEMBERS COLLECTIVELY SAVED
150 MILLION ROUGHLY 27% COMPARED
TO STANDARD CATALOG PRICING
USING COST-PLUS INCH MARKS. IN
2025 SAVINGS EXCEEDED 160
MILLION AT SIMILAR RATES. WHEN
INDEPENDENT GROCERS RECEIVE
DISCOUNTS, WE PASS SAVINGS
DIRECTLY TO CUSTOMERS. MARGINS
HAVE NOT GROWN AS A RESULT , BUT
THE AGREEMENTS DO IS ALLOW US TO
COMPETE. A CLEAR EXAMPLE FROM MY
STORE , LONG BEFORE THE COMPANY
WAS ACQUIRED BY PEPSICO WE
ACTIVELY ADVOCATED , A STORE OF
OUR SIZE WILL NOT RECEIVE A
GENEROUS VOLUME DISCOUNT BUT WE
ADVOCATED THROUGH LOYALTY TO
THEIR LINE AND WANTED TO COMPETE
WITH ALBERTSONS DOWN THE STREET.
THEY GRANTED US AN ONGOING
DISCOUNT WHICH WE PASSED
DIRECTLY TO CUSTOMERS. AFTER THE
ACQUISITION, THAT DISCOUNT WAS
REDUCED FROM 20% TO 15% AND WE
WERE REQUIRED TO PROVIDE PROOF
THAT SAVINGS WERE BEING PASSED
TO CONSUMERS, WE COMPLIED
BECAUSE PASSING DISCOUNTS THERE
WAS HOW INDEPENDENT STORES
OPERATE. WHAT IS NOTABLE IS THAT
EVEN WHEN WE RECEIVE DISCOUNTS
CLOSER TO LARGER RETAILERS
RECEIVE AND PASS THEM THROUGH
OUR EVERYDAY SHELF PRICE OFTEN
ENDS UP LOWER. STILL MEETING THE
MARGINS WE NEED TO OPERATE
SUSTAINABLY NOT BECAUSE WE HAVE
MORE LEVERAGE, BECAUSE
INDEPENDENT GROCERS PRICE FOR
ACCESS AND AFFORD ABILITY. WE
CARRY LOCALLY PRODUCED HUMMUS
OUR MARGIN WAS 25% WHEN THE
NEARBY LARGE RETAILER PRICE WAS
WELL OVER 40%, MY PRIORITY WAS
AFFORDABILITY NOT MAXIMIZING
MARGIN ON MY SMALL SUPPLIER. THE
SAME IS TRUE FOR LOCAL EGGS
SUPPLIER THEY DON'T HAVE SCALE
OR DISTRIBUTION RELATIONSHIPS TO
SELL INTO LARGE TENT,
INDEPENDENT GROCERS ARE THERE
ROUTE TO MARKET, WHEN
CONSOLIDATION LIMITS THE ABILITY
TO REMAIN OPEN THOSE PRODUCERS
LOSE ACCESS ENTIRELY,
SENSIBILITY IS A CONCERN,
INDEPENDENT GROCERS WITHOUT
COOPERATIVE SUPPLY AGREEMENTS IN
RURAL AREAS EXPERIENCED OR
CLOSER RATES 67% HIGHER THAN
AVERAGE. MOST OF THAT ATTRITION
OCCURS IN RURAL AMERICA WHERE
ACCESS TO HEALTHY FOOD IS NEEDED
MOST, NOT JUST ABOUT INDEPENDENT
STORES IT'S ABOUT OPPORTUNITY,
INDEPENDENT GROCERS ARE PRIMARY
PATHWAY FOR LOCAL AND EMERGENCY
PRODUCERS WHEN ACCESS TO
DISTRIBUTION IS FAIR CONSUMERS
WILL SEE LOWER EVERYDAY PRICES,
COMMUNITIES RETAIN FOOD ACCESS
AND SMALL PRODUCERS GAIN A
FOOTHOLD IN THE MARKET, THAT IS
NOT A THREAT TO COMPETITION IT
IS COMPETITION WORKING.
INDEPENDENT GROCERS ARE NOT THE
PROBLEM WE ARE PART OF THE
OPPORTUNITY. THANK YOU FOR THIS
OPPORTUNITY.
>> THANK YOU SO MUCH, MR.
CANTOR.
>> THANK YOU CAUCUS CHAIR AND
MEMBERS OF COMMERCE, THANK YOU
FOR HAVING ME FOR THIS IMPORTANT
HEARING ON THIS TOPIC THAT HAS
RESIDENTS FOR SO MANY PEOPLE
THROUGHOUT THE COUNTRY AND HERE
IN WASHINGTON STATE. THESE ARE
NOT ABSTRACT CONCERNS, WE JUST
HEARD CHILLING ACCOUNTS FROM
REAL PEOPLE LIVING WITH THE REAL
CONSEQUENCES OF CORPORATE
CONCENTRATION. IT PAINTS AN
ALARMING BUT UNMISTAKABLE
PICTURE. A SYSTEMIC FAILURE
BROUGHT ON BY DECADES OF
NEGLECT, REFUSAL TO ENFORCE THE
LAWS THAT WERE WRITTEN BY
CONGRESS MORE THAN A CENTURY
AGO. WHY? BECAUSE WASHINGTON
MADE A CHOICE. A CHOICE TO LET
THE LAWS TURN TO RUST, WE WERE
TOLD MERGERS AND CONCENTRATED
POWER WOULD PRODUCE EFFICIENCIES
THAT WOULD EVENTUALLY TRICKLE
DOWN TO CONSUMERS , WORKERS AND
FARMERS. THE TRICKLE NEVER CAME,
THOUGH. BARELY A DROP. YET, THE
MULTINATIONAL CORPORATIONS THAT
CONTROL OUR FOOD SYSTEM ARE
THRIVING. SO WHAT DO WE DO NOW?
WE HAVE A CHOICE NOW. AND THE
SOLUTION DOES NOT HAVE TO BE
COMPETENT BECAUSE MOST OF THE
TOOLS THAT WE NEED HAVE BEEN ON
THE BOOKS FOR OVER 100 YEARS.
THE SHERMAN ACT TO BREAK UP
MONOPOLIES AND PREVENT
COLLUSION, THE CLEAN ACT TO
BLOCK MERGERS AND PREVENT
FURTHER CONCENTRATION. THE
PACKERS AND STOCKYARDS ACT TO
PROTECT FARMERS FROM UNFAIR
ABUSIVE CONDUCT. THE ROBINSON
ACT TO MAKE PRICING FAIR. ALL OF
THESE ARE HIDING IN PLAIN SIGHT
AND FOR MORE THAN 50 YEARS THEY
WORKED REALLY REALLY WELL. WE
SAW UNPRECEDENTED GROWTH IN OUR
COUNTRY. THE CREATION OF A
THRIVING MIDDLE-CLASS THAT WAS
THE ENVY OF THE WORLD. THEN
BEGINNING IN THE 1980S WE LOST
OUR WAY. ENFORCEMENT WAYNE,
AGENCIES STEP BACK, COURTS
INTERVENE AND THE VOICE OF
FARMERS AND SMALL BUSINESSES IN
RURAL COMMUNITIES FADED, DROWNED
OUT BY CHECKS AND CORPORATE
LOBBYING. DURING MY TIME AT THE
DEPARTMENT OF JUSTICE WE MADE A
CHOICE, A CHOICE TO LEAVE THE
PATTERN BEHIND AND TO FIGHT FOR
THE 1st TIME EVER IN THE HISTORY
OF THE DEPARTMENT OF JUSTICE TO
INFORM THE PACKERS AND
STOCKYARDS ACT TO BRING CASES TO
BREAK UP COMPANIES TO TAKE ON
COLLUSION, RAISING PRICES TO
TAKE ON THE SYSTEM THAT TURNED
FARMERS INTO DRIVERS. THAT ONLY
SCRATCHED THE SURFACE, NOW WHAT
HAPPENS IS A CHOICE. IN A MOMENT
WHEN THE FEDERAL GOVERNMENT
SEEMS TO HAVE UNLIMITED
RESOURCES TO DEPLOY I.C.E.
AGENTS IN CITIES LIKE
MINNEAPOLIS AND PORTLAND, FAR
FROM THE SOUTHERN BORDER,
IMAGINE WHAT THE MONEY COULD DO
IT WAS USED TO ENFORCE THE
PACKERS AND STOCKYARDS ACT TO
PROTECT ACCESS OF FARMERS TO
NATURAL RESOURCES LIKE POWER AND
WATER TO STOP RIGGING CATTLE
AUCTIONS TO BLOCK MEGA MERGERS
TO SUPPORT FAIR PRICING FOR
LOCAL GROCERS AND TO END FOOD
DESERTS, THAT IS TOO A CHOICE.
THAT IS ENFORCEMENT AGENDA THAT
WILL NOT ONLY HELP PEOPLE BUT IT
WOULD UNITE THE COUNTRY IN THE
PROCESS. NOW THERE ARE SIMPLE
THINGS IN ADDITION THAT CONGRESS
CAN DO. IN ADDITION TO THE LAWS
ON THE BOOKS AND REMARKABLY NONE
OF THEM WOULD COST A DIME TO
TAXPAYERS. MAKE IT CLEAR PACKERS
AND STOCKYARDS ACT MEANS WHAT IT
SAYS ON THE PAGE, NOT WHAT SOME
ACTIVIST JUDGE HAS UNDONE TO
NARROW DOWN. PROTECT THE RIGHT
OF FARMERS TO PROTECT THEIR
TRACTORS. THE DEPARTMENT OF
JUSTICE INDEPENDENT AUTHORITY TO
INITIATE PACKERS AND STOCKYARDS
ACT CASES WITHOUT THE
BUREAUCRATIC REFERRAL PROCESS
FROM USDA AND DEMAND ENFORCEMENT
OF LAWS ON THE BOOKS AND PROTECT
ACCESS FOR FAMILY FARMERS AND
RURAL COMMUNITIES TO AFFORDABLE
POWER AND WATER PARTICULARLY AT
A TIME WHEN DATA CENTERS ARE
CONSUMING NATURAL RESOURCES AND
PROLIFERATING AT AN ALARMING
RATE, THESE ARE NOT RADICAL
IDEAS, THEY ARE NOT EXPENSIVE.
AS I SAID THEY COME AT VIRTUALLY
NO COST IF NO COST TO TAXPAYERS.
SO LET'S LEARN FROM PAST
MISTAKES. WHEN IT COMES FROM
FARM TO TABLE THESE ARE THE
TABLE STATES, LET'S MAKE A GOOD
CHOICE AND LET'S MAKE IT COUNT,
THANK YOU.
>> [ APPLAUSE ]
>> VERY POWERFUL TESTIMONY FROM
ALL OF YOU. THANK YOU SO MUCH,
WILL NOW PROCEED UNDER THE 5
MINUTE RULE OF QUESTIONS AND I
WILL START WITH MY QUESTIONS AND
I WANT TO START MISS ROSE WITH
YOU. I LED THE BRIEF OPPOSING
THE ALBERTSON'S KROGER MERGER.
WITH MANY OF MY COLLEAGUES IN
CONGRESS AND SENATOR WYDEN ON
THE SENATE SIDE. I KNOW YOU SAID
YOU WORKED AT THE FRED MEYER IN
LAKE CITY MULTIPLE YEARS. KROGER
WHICH OWNS THAT LOCATION
ATTEMPTED TO MERGE WITH ITS MAIN
COMPETITOR ALBERTSON'S IN 2022.
YOU AND YOUR FELLOW UNION
MEMBERS RAISED A NUMBER OF
CONCERNS AT THE TIME ABOUT THAT
MERGER. WHEN THE MERGER WAS
ANNOUNCED AND I WONDER IF YOU
COULD GO INTO SOME OF THOSE
CONCERNS, THE THINGS YOU WERE
MOST CONCERNED ABOUT WHEN THE
MERGER WAS ANNOUNCED.
>> YEAH, SO THE MAJOR THING THAT
EVERYONE IMMEDIATELY GRABBED
ONTO HIS THIS WOULD RAISE
PRICES. WITHIN DAYS OF THE
MERGER BEING ANNOUNCED,
CUSTOMERS HEARD OF IT AND WERE
KIND OF GOING HEY, SO DID YOU
HEAR ABOUT THE MERGER THEY SAY
IT WILL LOWER PRICES AND THEN
YOU USUALLY LAUGH. IT WAS A BIG
JOKE, EVERYTHING THAT CORPORATE
SAID HEY THIS IS WHAT WE TRIED
TO DO TO HELP CONSUMERS,
EMPLOYEES AND CONSUMERS WERE
JUST THOUGHT IT WAS A COMPLETELY
RIDICULOUS IDEA.
>> LEADING UP TO THAT
ANNOUNCEMENT, THERE HAD BEEN
OVER 3 DECADES OF LARGE GROCERY
STORES, LARGE GROCERY CHAINS
BUYING UP SMALLER REGIONAL
RIVALS AND OTHER NATIONAL RIVALS
LIKE THE 2015 MERGER BETWEEN
SAFEWAY AND ALBERTSON'S, DO
THOSE PAST MERGERS VALIDATE THAT
CONCERN ABOUT PRICE AND THE
CONCERNS AROUND STORE CLOSURES
AND OTHER THINGS THAT WERE
RAISED BY MS. ROSE AND ALSO IN
SOME OF THE CONSEQUENCES WE HAVE
SEEN?
>> MOST DEFINITELY. WE SAW PRAY
20 OR 30 YEAR PERIOD COMMUNITIES
HAD ACCESS 6, 7 OR 8 GROCERY
STORES GO DOWN TO ONE OR 2. AT
THE SAME TIME WE SAW INDEPENDENT
GROCERY STORES AND SMALL
BUSINESS IS BEING SQUEEZED.
INTERESTING BECAUSE KROGER AND
FRED MEYER USED TO BE SEPARATE
COMPANIES, KROGER AND FRED
MEYER. IT DID NOT NEED TO BE
THIS WAY AND EACH TIME, THERE
WERE PROMISES THAT PRICES WOULD
GO DOWN WHICH THEY DID AND THEN
PROMISES THAT IF THEY DIVESTED
CERTAIN GROCERY STORES,
COMPETITION WOULD BE RESTORED
AND I WAS THE PREVAILING
PARADIGM FOR HOW THE AGENCIES
REVIEWED MARTYRS AND THEY WERE
AROUND, THE VESTIGES DID NOT
WORK AND THEY DO NOT PRESERVE
COMPETITION NOW WE NEED TO BE
VIGILANT AND STOP THOSE MERGERS.
>> IS THAT WHY THE COURTS AGREE
WITH THE FEDERAL TRADE
COMMISSION AND WASHINGTON STATE
ATTORNEY GENERAL THAT THE MERGER
WAS UNLAWFUL AND CANNOT
CONTINUE?
>> ABSOLUTELY WHITE AND
PRESENTING THE JUDGE WITH THE
CASE, THEY WON AND PROTECTED
COMPETITION. WE NEED TO DO THAT
MORE.
>> IN ADDITION TO SWALLOWING UP
OTHER GROCERY CHAINS ONE OF THE
REASONS STORES LIKE KROGER AND
WALMART GOT BIGGER AND MORE
PROFITABLE IS THEY BENEFIT FROM
STEEP DISCOUNTS WE HAVE HEARD
SPOKEN ABOUT FROM LARGE
DISTRIBUTORS LIKE UNITED NATURAL
FOODS AND IS THAT I YOU SAY IT?
WHAT CHALLENGES DO YOUR FACE
WHEN NEGOTIATING WITH BIG
GROCERS AND DISTRIBUTORS TO GET
YOUR PRODUCT ON THE SHELF?
>> SO IT REALLY DEPENDS BECAUSE
NORMALLY THE DISTRIBUTOR HAS
MOST OF THE CONTROL OF THE
RELATIONSHIP. WE DO NEGOTIATE
WITH THE BUYER BUT THE
DISTRIBUTOR IS THE ONE WHO BASES
THE PRICE OF THE PRODUCT. SO WE
DON'T REALLY HAVE MUCH CONTROL
FOR THAT.
>> WHEN LARGE GROCERY STORE
CHAINS BY UP SMALL RETAILERS
WHAT IMPACT DOES THAT HAVE ON
YOUR BUSINESS?
>> NORMALLY WE JUST LOSE AN
ACCOUNT BUT IT DOES AFFECT OUR
REVENUE. ALSO COMES WITH A LOT
OF DIFFERENT STUFF LIKE IF THERE
ARE CERTAIN THINGS THAT GROCERY
STORE WAS DOING FOR EXAMPLE IF
THERE IS A FEE OR SOMETHING LIKE
THAT WE HAVE TO DEAL WITH THAT
SO THERE'S ALL THESE OTHER
THINGS THAT COME WITH IT WHEN
CERTAIN MURDERS HAPPEN.
>> A LOT OF IMPACT YOU HAVE TO
DO IT, THANK YOU SO MUCH MY TIME
HAS EXPIRED AND I REPRESENT --
RECOGNIZE REPRESENTATIVE FOR 5
MINUTES.
>> THANK YOU TO THE MONOPOLY
BUSTERS CAUCUS FOR HOLDING THIS
FIELD HEARING AND THANK YOU TO
ALL THE WITNESSES FOR YOUR
COMPELLING TESTIMONIES. THAT
COVERED THE ENTIRE LANDSCAPE .
AS YOU CAN IMAGINE HIGH PRICES
AT THE GROCERY STORE ARE ONE OF
THE THINGS I HEAR ABOUT MOST IN
MY DISTRICT AND AT THE SAME TIME
THE 8th CONGRESSIONAL DISTRICT,
OUR ECONOMY HINGES ON
AGRICULTURE. I HAVE THE APPLE
CAPITAL OF THE WORLD. SO I AM
HEARING FROM PRODUCERS, GROWERS,
RANCHERS, DAIRY MEN OF ALL TYPES
THAT THEY ARE NOT SEEING THE
PROFITS WHEN GROCERY STORE
PRICES ARE RISING, THEY'RE
GETTING PENNIES ON THE DOLLAR.
SO I WANTED TO HIGHLIGHT A LOT
OF WHAT WE JUST HEARD JUST NOW.
PRICE GOUGING IS HAPPENING AT
MULTIPLE LEVELS, FROM THE BRAND
CONSOLIDATION THAT WAS TALKED
ABOUT, TO GROCERY STORE
CONSOLIDATIONS LIKE WE KNOW 3
BEVERAGE COMPANIES CONTROL 90%
OF THE SODA MARKET. PEDIATRICIAN
IS NOT ENCOURAGING CONSUMPTION
OF SODA PH -- BUT WHAT YOU KNOW
IS IN RECENT YEARS THEY ARE
PURPOSELY MANUFACTURING LESS,
HIRING FEWER PEOPLE, CHARGING
MORE AND MAKING EVEN MORE
PROFIT. SIMILARLY, CRAFT HEINZ
CONTROL 65% OF THE CHEESE MARKET
, ALSO MANUFACTURING LESS,
CHARGING MORE, PATTING PROFITS
REFUSING COMPETITION, 3
COMPANIES CONTROL 80% OF THE
CHOCOLATE MARKET THAT'S OKAY IF
IT'S DARK CHOCOLATE. THE SAME
DEAL WITH SKYROCKETING PROFITS ,
YOU HAVE NOTICED THAT IN THE
GROCERY STORE I'M SURE. AND OF
COURSE WE HEARD 4 MEATPACKING
COMPANY'S CONTROL 80% OF THE
BEEF MARKET. AND YOU REALLY
DESCRIBED THAT WELL AND I WANTED
TO DIVE IN A LITTLE BIT HERE,
THE AVERAGE RETAIL PRICE OF
CHOICE BEEF DECEMBER 2024 WHEN
WE WERE LOOKING ACROSS ALL FINAL
BEEF PRODUCTS WAS DOUBLE WHAT
THE RANCHERS WOULD PAY. BUT IF
YOU LOOK BACK AND YOU TALKED
ABOUT HISTORY A LITTLE BIT
PRODUCERS FROM 1970 PRIOR TO THE
CONSOLIDATION WERE PAID ABOUT
2/3 OF THE RETAIL PRICE AND THEN
SINCE 2024, THINGS HAVE ONLY
GOTTEN WORSE. SOME PRODUCERS ARE
LINKING 1/3 OF THAT RETAIL VALUE
SO BASICALLY AS I SAID CONSUMERS
ARE PAYING MORE, RANCHERS ARE
SPENDING MORE ON LABOR AND INPUT
AND ARE BARELY GETTING BY AND
GROWERS IN MY DISTRICT WERE SO
WORRIED ABOUT THIS MERGER
BECAUSE THEN THERE WOULD BE NO
COMPETITION, THEY TURN IT TO
PRICE TAKERS NOT MAKERS AND THIS
WOULD ONLY EXACERBATE THAT LACK
OF FAIRNESS. I TOLD YOU
ORCHARDIST GETS PENNIES ON THE
DOLLAR. THEY ARE PAWNS IN THE
SYSTEM AND IT IS NO WONDER THAT
WE ARE LOSING FAMILY FARMS AT AN
ALARMING RATE. CAN YOU TELL US
ABOUT HOW OTHER PRODUCERS ARE
FARING AND HOW MANY OF THEM HAVE
SUCCESSFULLY DONE WHAT YOU HAVE
DONE WHICH IS GOING INDEPENDENT
AND ALSO MAYBE WHETHER YOU CAN
EVEN FIND LOCAL BUTCHERS.
>> I DON'T KNOW VERY MANY. IN
FACT I KNOW OF 2 THAT HAVE DONE
WHAT I HAVE DONE. IN INDIANA HAS
SOLD INTO THE WHOLESALE MARKET
BUT HAS NOT GONE ALL THE WAY TO
RETAIL LEVEL WHICH IS WHERE THE
REAL DOLLARS ARE. BETWEEN THE
PACKER AND THE RETAILER IS WHERE
THE REAL MONEY IS. AND THE
RETAIL BECAUSE OF THE POWER OF
WALMART, KROGER, ALBERTSON'S,
SAFEWAY, THEY HAVE THE POWER NOW
TO PUSH DOWN ON THE PACKER SO IT
USED TO BE THE PACKER EXERTED
POWER IN BOTH DIRECTIONS, DOWN
TO THE PRODUCER AND UP TO THE
RETAILER AND SINCE COVID, REALLY
THE RETAILER HAS REALLY
DOMINATED AND THEY ARE NOW
PUSHED DOWN ON THE PACKER. SO
YOU'VE GOT TO GO TO RETAIL.
WILL HARRIS IS ANOTHER ONE WITH
ON FARM SLAUGHTER LIKE I DO,
LIKE GREG DOES AND THEY ARE JUST
NOW STARTING TO LOOK AT
OPPORTUNITY THAT LANDED IN THE
RETAIL. BUT THE PROBLEM IS, IT
TAKES TOO MUCH CAPITAL, TOO MUCH
SKILLED LABOR AND THOSE CUTTERS
DO NOT EXIST .
>> THANK YOU I AM RUNNING OUT OF
TIME. THANK YOU FOR MAKING THAT
POINT, I JUST WANT TO EMPHASIZE
THAT I ALSO FOUGHT REALLY HARD
ON BEHALF OF THE CONSUMERS AND
APPLE GROWERS IN MY DISTRICT TO
BLOCK THIS MERGER AND I WANT TO
THANK YOU MR. CANTOR I WANT TO
THANK YOU FOR YOUR SUCCESSFULLY
FIGHTING THIS AND BLOCKING THE
MERGER. REST ASSURED WE WILL BE
TAKING ON THESE MERGERS AND
CONSOLIDATION OF THE RETAIL
INDUSTRY SO THANK YOU.
>> THANK YOU SO MUCH
REPRESENTATIVE TRIER. AND
ORGANIZE REPRESENTATIVE COIL 5
MINUTES.
>> THANK YOU FOR HAVING THIS
HEARING. I REPRESENT A RURAL AND
PREDOMINANTLY RURAL AND COASTAL
AREA WITH A LOT OF FARMERS,
RANCHERS, COMMERCIAL FISHERMEN
AND WE ARE PROUD OF THE ROLE
THAT WE PLAY IN FEEDING THE
WORLD LOCALLY GROWN GOOD FOOD.
BUT, WHAT WE HAVE SEEN, WE SAW
WITH KROGER A FEW YEARS AGO
OVERNIGHT THEY DECIDED NOT TO
PURCHASE ORGANIC FRUIT AND
VEGETABLES FROM OUR LOCAL
FARMERS WHO HAD ALREADY PLANNED
FOR THAT WE HAVE FARMERS AND
RANCHERS ONE NATURAL DISASTER
AWAY FROM GOING UNDER RIGHT NOW
AN AVERAGE, A FARMER GETS A
AVERAGE OF $.14 PER DOLLAR SPENT
AT THE GROCERY STORE AND THEY DO
NOT HAVE THE LEVERAGE TO
NEGOTIATE . I THINK YOU SPOKE TO
THAT INCREDIBLY WELL BECAUSE AT
A RECORD HIGH BUT RANCHERS ARE
NOT GETTING THAT MONEY. I WANT
TO FOCUS ON SOMETHING ELSE AND
THAT IS THE END PRICING, I KNOW
UFCW HAS BEEN FANTASTIC IN
WORKING TO STOP DYNAMIC PRICING
WHERE CONSUMERS WILL GET
DIFFERENT PRICES, WHERE PRICES
CHANGE OVERNIGHT, A LOT OF MY
CONSTITUENTS AND CERTAINLY AT
POINTS OF MY LIFE COME TO PAY
FOR THEIR GROCERIES AND IF IT IS
$.50 MORE, THEY HAVE TO FIGURE
OUT WHAT NECESSARY THING THEY
NEED TO PUT BACK. SO, MISS ROWS
COULD YOU TALK ABOUT MAYBE SOME
OF THE THINGS YOU ARE SEEING AND
CERTAINLY THAT UFCW IS DOING TO
HIGHLIGHT HOW DANGEROUS THIS IS
AND ALSO HOW THE TECHNOLOGY
COULD BE USED AGAINST WORKERS ?
>> YEAH, SO UFCW HAS BEEN
RECENTLY FOCUSING ON THAT
SIGNIFICANTLY DUE TO THE FACT
THAT ONE MAJOR FOCUS HAS BEEN ON
MULTIPLE REFERRED TO AS SURGE
PRICING WHEREAS WITH THE ABILITY
TO RAPIDLY ALTER PRICES DURING
THE DAY THAT WITHIN DYNAMICALLY
ALTER THE PRICES FOR MUCH IN THE
SAME WAY THAT LIKE A CABIN MIGHT
CHARGE MORE DURING A BUSY
PERIOD. YOUR BREAD PRICE WILL
LITERALLY GO UP TO ME $1, $2, $3
MORE DURING THE BUSIEST PART OF
THE DAY VERSUS IT WOULD BE A
MORE AFFORDABLE PRICE WHEN MOST
PEOPLE AREN'T ABLE TO GET
THERE. ALSO ADDITIONAL THINGS WE
HAVE SEEN CONCERN ABOUT IS
ADDITIONAL COUPONS, IN
PARTICULAR AMONG I WOULD SUSPECT
MORE RURAL , YOU KNOW I WORK IN
THE CITY SO PRIMARILY I HAVE
SEEN OLDER PEOPLE WHO DON'T
HAVE A SMART PHONE OR DON'T
WANT TO HAVE A SMART PHONE
LOOKING AT ALL THE DIGITAL
COUPONS AND GOING I CAN'T GET
THESE WHAT AM I DOING? AND
HAVING A GREAT DEAL OF
DIFFICULTY WITH THAT. SO BOTH OF
THOSE HAVE BEEN BIG FOCUS IS
WHEN WE ARE PARTNERING WITH
KATIE WILSON DURING HER CAMPAIGN
FOR MAYOR.
>> AND THEN MS. CHASE 1st OF ALL
THANK YOU AND I HAVE BEEN TO
YOUR STORE AND I LOVE IT BECAUSE
I TRY TO SHOP IN INDEPENDENT
STORES BECAUSE YOU GET BETTER
CHOICE, YOU GET BETTER OPTIONS
AND WE KNOW THAT MONEY IS NOT
GOING TO STOCKHOLDERS SOMEWHERE
INTERESTING IN THE COMMUNITY.
WHAT IS THE MOST IMPORTANT THING
WE NEED TO KNOW AS MEMBERS OF
CONGRESS THAT WE CAN DO TO HELP
ENSURE THAT STORES LIKE YOURS
CAN ACTUALLY COMPETE?
>> I THINK IT COMES DOWN TO
LEVERAGE AND HOW MUCH LEVERAGE
THE BIG GROCERS HAVE. THEY ARE
INCENTIVIZED TOTALLY DIFFERENT
FROM YOUR INDEPENDENT STORES.
AND I THINK INDEPENDENT STORES
HAVE AN IMPORTANT PLACE BECAUSE
WE HELP DISCIPLINE THOSE PRICES
JUST BY EXISTING AND SPEAKING TO
WHAT MS. ROSE SAID WITH THE
TECHNOLOGY ASPECT. WE DON'T HAVE
THE TYPE OF FUNDS TO RAPIDLY
CHANGE PRICING, THAT WILL BE
LIKE ELECTRONIC SHELF TAGS THAT
DO THAT INSTANTANEOUS. SO WE
NEED HELP KEEPING FINGER ON THE
LEVERAGE ASPECT AND ABILITY TO
BUY WITH SUCH GREAT PRICES.
YEAH.
>> THANK YOU SO MUCH AND THANK
YOU ALL FOR BEING HERE.
>> THANK YOU SO MUCH.
>> THANK YOU SO MUCH
REPRESENTATIVE INTO MY
COLLEAGUES ON THE MONOPOLY
BUSTERS CAUCUS FOR BEING HERE
TODAY. SO THIS MAP THAT SHOWS
THIS FOOD DESERT IS SQUARELY IN
MY DISTRICT. I REPRESENT THE
OLYMPIC PENINSULA , JEFFERSON,
IN THE COUNTY. DO WE ALL STAND
UP AND WAVE? YOU CANNOT SEE IT
NOW, BUT IT IS HALF OF THE
PENINSULA. VERY DRAMATIC. AND
THIS IS STARK AND DEPARTED FOR
ME BECAUSE I 1st STARTED
THINKING ABOUT MERGERS AND
CONSOLIDATIONS, NOT IN THE
GROCERY STORE SPACE BUT IN THE
HEALTHCARE SPACE BECAUSE ON OUR
SIDE OF THE WATER THE HEALTHCARE
MERGERS REALLY DROVE COMMUNITY
TO BEGIN UNDERSTANDING WITH THE
PRICE IMPACTS WITH ACCESSIBILITY
AND AVAILABILITY IMPACTS MEANT
AND COLLEAGUES FROM UFCW 3000 ON
THE FRONT LINES OF THAT
ORGANIZING AS WELL. OVER THE
LAST DECADE CONSOLIDATION HAS
REDUCED COMPETITION, INCREASED
HEALTHCARE COST, DEPRESSED WAGES
WHILE PLACING PRESSURE ON
HEALTHCARE WORKERS JUST LIKE WE
HAVE HEARD ON GROCERY STORE
WORKERS. WHEN LARGE HOSPITAL
SYSTEMS LIKE LARGE GROCERY
SYSTEMS BUY SMALLER HOSPITALS
AND DECREASE STAFFING RATIOS,
ELIMINATING SERVICE LINES TO
RAISE PRICES TO BOOST PROFITS
PATIENTS FACE HIGHER COST, WORSE
HEALTH OUTCOMES CAN THE SAME
PLAYBOOK INDUSTRY AFTER INDUSTRY
AFTER INDUSTRY. LIKE KROGER,
ALBERTSON'S, FRED MEYER,
SAFEWAY, WHEN THE BIG 3 CBS,
CAREMARK, CIGNA AND UNITED
HEALTH CORP. ACCOUNT FOR 80% OF
PRESCRIPTION DRUG CLAIMS, THEY
WIELD OUTSIZED POWER LEAVING
PATIENTS UNABLE TO AFFORD
LIFE-SAVING MEDICATIONS.
THOUGHTS THAT ARE 70 PEOPLE'S
MINDS WHEN THEY ARE IN THE
GROCERY STORE. ARE YOU ABLE TO
AFFORD YOUR PRODUCE AND
PRESCRIPTION WEEK TO WEEK OR
MONTH TO MONTH AND WHEN PRIVATE
EQUITY FIRMS CONTROL HOSPITALS
NURSING HOMES EMERGENCY ROOM
STAFFING , LIKE WHEN THEY INVEST
IN GROCERY STORES, THEY USE THAT
POWER TO CUT CARE, RAISE PRICES
AND SACRIFICE THE IMPACT ON
INDIVIDUALS, WHETHER THOSE ARE
CONSUMERS OR PATIENTS TO LINE
THEIR OWN POCKETS. IT IS SIMPLE
THAT THE BIG MEGACORPORATIONS
ARE IN THE BUSINESS OF ENRICHING
THEMSELVES. AND WE ARE TOLD OVER
AND OVER THAT CONSOLIDATION WILL
LEAD TO EFFICIENCY, BUT INSTEAD
MARKET POWER IS BEING
CONCENTRATED IN FEWER AND FEWER
HANDS, THAT'S WHY I THOUGHT
HOSPITAL HEALTH SYSTEM
CONSOLIDATION AND WHY AM EXCITED
TO BE PART OF THE MONOPOLY
BUSTERS CAUCUS TO WORK ON
GROCERY STORE CONSOLIDATION AND
HEALTHCARE CONSOLIDATION IN THE
OTHER WASHINGTON. MR. CANTOR ,
IN HEALTHCARE CONSOLIDATION IS
OFTEN JUSTIFIED AS INCREASING
EFFICIENCY YET PRICES RISE AND
QUALITY SUFFERS, HOW ARE USING
THE SAME DYNAMIC PLAY OUT IN THE
FOOD SUPPLY CHAIN AND HOW DOES
CONSOLIDATION ACROSS MULTIPLE
STAGES INCREASE THE HARM TO
CONSUMERS AND WORKERS?
>> THE CASCADE EFFECT. WHAT WE
SEE IN HEALTHCARE IS THE TYRANNY
OF THE MIDDLE MEN. MORE MONEY IS
BEING CAPTURED BY THE ENTITIES
IN THE MIDDLE , LESS MONEY IS
BEING SHARED WITH PEOPLE WHO
DELIVER THE CARE, WHO INVENT THE
SOLUTIONS IN THE POCKETS OF THE
PATIENT. WE HAVE SEEN THE SAME
THING HAPPEN. MORE MONEY IS
BEING MADE IS JUST NOT BEING
SHARED WITH THE PEOPLE WHO
PRODUCE THE FOOD, WHO SELL THE
FOOD , PACKAGE THE FOOD AS
INDEPENDENCE AND WE ARE SEEING
HIGHER PRICES FOR CONSUMERS, THE
MONEY BEING LOST IS EXTRACTED IN
THE MIDDLE.
>> THANK YOU SO MUCH. SIMILAR TO
THE ISSUES YOU FACE AS A
INDEPENDENT GROCER GOING
HEAD-TO-HEAD WITH CORPORATE
GIANTS, INDEPENDENT HOSPITALS
LIKE I DON'T KNOW THAT WE HAVE
ANY LEFT STRUGGLE TO COMPETE
AGAINST LARGE SYSTEMS WITH
MASSIVE PURCHASING POWER, YOU
SHARED FASCINATING INFORMATION
ABOUT SMALL RETAILERS LIKE YOURS
UNIQUELY SUITED TO WORKING WITH
SOME SMALL PRODUCERS BUT AS A
SMALL GROCER HOW DO DOMINANT
CORPORATION PRICING POWER AND
CONTROL OVER SUPPLIERS MAKE IT
HARDER FOR YOU TO COMPETE?
>> SO THE PRICING ASPECT OF IT ,
THAT HAS TO DO MORE OF LEVERAGE
AND BUYING POWER SO THEY CAN GO
AND TALK TO THE BRAND
SPECIFICALLY AND NEGOTIATE THEIR
OWN DEALS THAT THEY WANT AND
THEN THEY CAN GO THROUGH
DISTRIBUTORS AND PURCHASE THE
SAME PRODUCTS AT A MUCH LOWER
PRICE I ASSUME. THAN WHAT WE
CAN. AS FAR AS WITH THE
SUPPLIERS THERE SO MUCH
INFORMATION. WITH THE SUPPLIERS,
THEY CONTROL WHAT PRODUCTS ARE
IN THOSE DISTRIBUTION CENTERS
WHEN WE HAVE SHARED
DISTRIBUTORS. THEY CONTROL THEIR
NUMBERS, POINTS OF DISTRIBUTIONS
AND EVEN THE FREQUENCY ALONE
THAT THEY RECEIVED ORDERS VERSUS
A SMALL INDEPENDENT MAKES A BIG
DIFFERENCE BECAUSE THEY WILL GET
MORE ORDERS PER WEEK.
>> THANK YOU SO MUCH BETTER
CHAIR I YELLED BACK.
>> THANK YOU, WITH ENOUGH TIME
FOR SOME PUBLIC TESTIMONY. ONE
OF THE THINGS WE WANT TO DO WITH
THIS PUBLIC HEARING IS MAKE SURE
WE ARE HEARING FROM PEOPLE ABOUT
WHAT YOU ARE SEEING AT YOUR
GROCERY STORE , WITH THE SMALL
BUSINESSES AROUND. SO WE'RE
GOING TO START AT THE MICROPHONE
OVER HERE, I SEE WE HAVE
SOMEBODY WHO IS READY TO GO AND
WE ASK YOU KEEP YOUR MARKS TO
ABOUT 2 MINUTES SO WE CAN HEAR
FROM AS MANY PEOPLE AS POSSIBLE.
SIR, PLEASE.
>> [ INAUDIBLE ]
>> 1 2nd. IS THE MICROPHONE ON?
>> TESTING, HELLO. LET ME START
OVER. HI I AM A GROCERY WORKER,
I'VE BEEN A GROCERY WORKER 25
YEARS. I HAVE BEEN A PRODUCE
CLERK AT FRED MEYER SINCE 2008
AND FOR THE LAST 15 YEARS I WAS
WORKING AT FRED MEYER , THE
STORE THAT CLOSED. I LOVE MY
CUSTOMERS, THEY ARE HARD WORKING
CLASS PEOPLE AND I LOVED HELPING
THEM FIND THE INGREDIENTS FOR
THEIR MEALS AND TELLING THEM THE
OCCASIONAL BAD DAD JOKE. ALL OF
THAT CAME TO A HALT IN AUGUST
WHEN WE WERE ALL USHERED TO A
PRIVATE MEETING IN GROUPS AND
INFORMED THE STORE WOULD BE
CLOSING DESPITE THE FACT THAT WE
WERE CONTINUING TO BE BUSY. WE
HAD, WE WERE UP IN SALES ,
APPARENTLY NOT ENOUGH. AFTER THE
SHOCK WORE OFF , WE WERE ALL
KIND OF UPSET AND WORRIED THAT
WE MIGHT, YOU KNOW IT MIGHT NOT
WORK OUT FOR US, I'M GETTING
TRANSFERRED TO OTHER STORES,
LIKE LUCKILY THEY NEEDED DID
HELP US BUT THERE WERE QUITE A
FEW PEOPLE GOT TRANSFERRED TO
STORES AND I WAS ACTUALLY
BECAUSE A LOT OF US TOOK BUSES,
CANNOT TAKE THE BUS TO THE STORE
THAT THEY GOT TRANSFERRED TO SO
THEY CHOSE TO QUIT INSTEAD OF
CONTINUING ON. THIS IS ALL IN
FAVOR OF WALL STREET AND NOT
SOUTHEAST, 240th STREET IN LOCAL
NEIGHBORHOODS. THIS IS IN FAVOR
OF THE SHAREHOLDER RATHER THAN
THE STORE, THIS IS IN FAVOR OF
SHORT-TERM PROFITS VERSUS
LONG-TERM GOALS AND LONG-TERM
SERVING THE COMMUNITY. QUITE
FRANKLY IT NEEDS TO STOP. THIS
KIND OF ECONOMICS ONLY HAS ONE
OUTCOME AND IT IS FULL CLOSURE,
FORECLOSURE ON EVERYTHING AND
SELLING IT TO THE HIGHEST BIDDER
LIKE ALL OF OUR OTHER FAVORITE
BRANDS AND STORES THAT ARE
CLOSED THANKS TO PRIVATE EQUITY
AND OTHER BIG PROFITS AND
CONSOLIDATIONS. THANK YOU FOR
YOUR TIME.
>> THANK YOU SO MUCH.
>> HI , I LIVED HERE IN SEATTLE
ABOUT 8 YEARS, I USED TO BE YOUR
CONSTITUENT, NOW I AM IN ADAM
SMITH DISTRICT, BUT I'M
GRATEFUL YOU ARE DOING THIS.
THIS IS PIONEERING, VERY SMART
AND WE NEED MORE LIKE THIS, ONE
THING I WANT TO ENCOURAGE IS TO
LOOK MORE CLOSELY AT THE ROLE OF
BIG TECH COMPANIES WITH THE RISE
OF FOOD PRICES AND INSISTING
SURVEILLING EVERY SINGLE MOVE WE
DO AS CONSUMERS. YOU KNOW,
RECENT REPORTS SHOW THAT
PLATFORMS LIKE INSTACART HAVE
USED ALGORITHM PRICING AND DATA
DOMINANCE TO INFLUENCE FOOD
PRICES AND ENTRENCH MARKET POWER
SO I WANT TO ENCOURAGE MEMBERS
OF CONGRESS AND REGULATORS TO DO
EVERYTHING THAT YOU CAN TO STOP
DIGITAL PRICE-FIXING AND
EXCLUSIONARY CONDUCT. THANK YOU.
>> THANK YOU SO MUCH.
>> MY NAME IS BETH VALERIE, I
LIVE HERE IN SEATTLE. I WANT TO
COMMENT OR OPEN THE FLOOR UP TO
SOMETHING THAT MR. CANTOR TALKED
ABOUT. THE CONSOLIDATION IN THE
EQUIPMENT USED ON FARMS. IT IS
NOW DOWN TO JOHN DEERE OR
CATERPILLAR, THE 2 MAIN
PROVIDERS OF EQUIPMENT, NOW THE
INCREMENT THEY HAVE IS NOT ONLY
IT CANNOT BE REPAIRED BY THE
FARMER, BUT IT IS, THEY ARE LIKE
SUBSCRIPTIONS . IT IS SO
TECHNOLOGY ORIENTED THAT SOME
PEOPLE STOP FUNCTIONING ON YOUR
COMBINE IF YOU HAVE NOT PAID OR
YOU CAN OVERPAY YOURSELF OR TAKE
SOMEONE 2 WEEKS TO GET OUT
THERE. THIS HAS HUGE IMPACTS
WHEN IF YOU ARE A HAY FARMER AND
IF YOU CANNOT GET IN THE HAY AND
IT SPOILS ON THE FIELD THAN IT
DOES NOT GET TO THE CATTLE OR
WHOEVER , THE ANIMALS THAT NEED
TO BE FED SO SOMETIMES FARMERS
ARE RENTERS NEED TO CALL THEIR
HERD SO I WANT TO ADDED TO THE
MIX AND COMMENT. THANK YOU.
>> WE WILL SEE IF WE HAVE MORE
PUBLIC TESTIMONY. WE HAVE MORE
PUBLIC TESTIMONY? YEAH, PLEASE.
TO SEE IF WE CAN GET A ROUND OF
COMMENTS FOR WITNESSES AS WELL.
WE WERE GOING TO DO RESPONSE
FROM MEMBERS.
>> HI, I AM ORIGINALLY FROM
PORTLAND, OREGON BUT I LIVED IN
CORVALLIS, OREGON. 2019 TO 2023.
WHILE IN CORVALLIS I WORKED AT
THE CORVALLIS CLINIC A LOCAL
PHYSICIAN MEDICAL CLINIC THE
PROVIDED SERVICES TO SPECIALTY
AREAS , BACK IN 2024 OPTIMUM
ACQUIRED THE CORVALLIS CLINIC.
I'M NO LONGER LIVING IN
CORVALLIS, MY BROTHER LIVES
THERE, I HAVE FRIENDS AND FAMILY
THERE AND I RECENTLY HEARD IT
WILL BE CLOSING BETTER OB/GYN
DEPARTMENT. I AM VERY CONCERNED
ABOUT THIS, THE OTHER LARGEST
MEDICAL FACILITY IN THE AREA,
SAMARITAN AND PROVIDENCE ON THE
COAST AND ANOTHER DON'T
NECESSARILY PROVIDE THE SAME ,
THE SAME SERVICES THAT CORVALLIS
CLINIC PROVIDES. THAT IS AN AREA
OF CONCERN ABOUT AND YEAH, THANK
YOU SO MUCH.
>> THANK YOU.
>> OTHER PUBLIC , PLEASE.
>> HI MY NAME IS ADRIAN ATKINS.
I AM A CURRENT MASTERS STUDENT
FROM THE UNIVERSITY OF
WASHINGTON STARTING PUBLIC
HEALTH AND CURRENTLY IN MY
INTERNSHIP AND FOR MY THESIS
PROJECT I'M CURRENTLY DOING A
STUDY ON FOOD SECURITY IN
WASHINGTON STATE. SO I HAVE 5
YEARS OF SURVEY DATA I AM
WORKING WITH AND I HAVE USED
THAT TO FIND 30 PARTICIPANTS TO
COMPLETE QUALITATIVE RESEARCH.
SO WE DID HOUR-LONG STRUCTURED
INTERVIEWS WITH THESE
PARTICIPANTS AND SOMETHING I AM
HEARING OVER AND OVER AGAIN I AM
IN THE ANALYSIS PHASE SO I
CANNOT GIVE COMPLETE FINDINGS
BUT I WANT TO REITERATE
SOMETHING I AM HEARING IS HOW
THE COST OF LIVING AND COST OF
FOOD HAS IMPACTED PARTICIPANT
FOOD SECURITY, I AM FOCUSING ON
INDIVIDUALS WHO HAVE
TRANSITIONED IN AND OUT OF FOOD
SECURITY OVER THE COURSE OF 5
YEARS OF THE STUDY AND I CAN
JUST SAY WE ARE SEEING THIS
ACROSS ALL PARTICIPANTS OF
DIFFERENT INCOME RANGES .
PARTICIPANTS WELL ABOVE THE
POVERTY LINE SO I WANT TO
REITERATE THAT IS A HUGE CONCERN
FOR WASHINGTON RESIDENTS OF ALL
INCOME REGIONS AND A DIVERSE
POPULATION OF RESIDENTS. THANK
YOU.
>> THANK YOU SO MUCH FOR YOUR
RESEARCH. REPRESENTATIVE, WE ARE
HAPPY TO HAVE YOU HERE.
>> THANK YOU SO MUCH FOR HOSTING
THIS. I AM STATE REPRESENTATIVE
FROM THE 46th LEGISLATIVE
DISTRICT IN SEATTLE I LIVE HALF
A MILE FROM THE FRED MEYER
THAT'S CLOSED IN LAKE CITY.
THIS HAS TAKEN A LOT OF TIME AND
ATTENTION AND FOCUS THIS YEAR IN
THIS LEGISLATIVE SESSION. I'M
GRATEFUL YOU ARE WORKING ON THE
ISSUE OF MERGERS AND MONOPOLIES
AND THE LONG-TERM WORK THAT
NEEDS TO HAPPEN TO REVISION THE
SYSTEM. I WANT TO MENTION A
COUPLE THINGS WE ARE WORKING ON
HERE IN THE WASHINGTON STATE
LEGISLATURE. TO MAKE SURE FOLKS
CONTINUE TO HAVE ACCESS TO FRESH
AND HEALTHY FOOD BECAUSE WE JUST
CAN'T WAIT. FOLKS NEED FOOD
NOW, THEY NEED ACCESS RIGHT NOW.
THIS SESSION HAVE INTRODUCED 3
BILLS THAT GET OUT LONG-TERM
SHORT-TERM INTERMEDIATE
SOLUTIONS FOCUSING ON TRYING TO
PROTECT COMMUNITIES, FOCUSING ON
INCENTIVIZING FOLKS SERVING
UNDERSERVED COMMUNITIES AND LOOK
AT LONG-TERM SOLUTIONS. WE HAVE
LEGISLATION INTRODUCED THAT
PROHIBITS ANY GROCERIES OR
PHARMACIES FROM PUTTING
COVENANTS ON PROPERTIES AFTER
THEY LEAVE AFTER THEY SELL IT SO
WE CAN MAKE SURE OTHER GROCERIES
AND PHARMACIES CAN CONSERVE
COMMUNITIES. WE ARE WORKING ON
LEGISLATION THAT OPENS UP THE
POSSIBILITY OF MUNICIPAL GROCERY
STORES OR NONPROFIT GROCERY
STORES PUBLIC-PRIVATE
PARTNERSHIPS AS WELL BECAUSE
THESE SITUATIONS WHERE PRIVATE
COMPANIES ARE LEAVING WE DO NEED
TO ALLOW FOR FOLKS TO STEP IN
AND OTHER CREATIVE SOLUTIONS TO
ENSURE FOLKS HAVE ACCESS TO
HEALTHY FOOD, LASTLY WE ARE
WORKING ON LEGISLATION AND IT IS
INTERESTING AND EXCITING BECAUSE
IT SEEMS TO BE EVERYTHING CAN
AGREE ON BETWEEN BUSINESS AND
WORKERS AND COMMUNITY MEMBERS
AND NONPROFITS AND FOOD BANKS
YOU NAME IT WHICH IS TRYING TO
INCENTIVIZE GROCERIES OF ALL
DIFFERENT TYPES, BUT ESPECIALLY
SMALL INDEPENDENT CULTURAL
GROCERY STORES FROM GOING IN AND
SERVING COMMUNITIES AND STAYING
IN UNDERSERVED COMMUNITIES THEIR
TAX INCENTIVES SO I WANT TO
THANK YOU FOR THE WORK YOU ARE
DOING AND KNOW THAT WE HAVE YOUR
BACK LOCALLY AND WE ARE TRYING
TO DELIVER SOLUTIONS AS SOON AS
POSSIBLE FOR COMMUNITIES SO THEY
DO NOT LOSE ACCESS TO FOOD.
THANK YOU VERY MUCH.
>> PLEASE.
>> HI I AM A FARMER INCARNATION
40 MINUTES EAST OF HERE. IN A
PRIOR LIFE I WAS A ACADEMIC AND
POLICY ANALYST SPECIALIZING IN
FOOD SYSTEMS POLICY AND I STILL
TEACH CLASSES AT THE UNIVERSITY
OF WASHINGTON. I WANT TO
HIGHLIGHT A COUPLE THINGS. ONE,
IT HAS BEEN TOUCHED ON, WORKER
SAFETY, THIS ADMINISTRATION HAS
ROLLBACK REGULATIONS FOR
INSTANCE ON WORKER SAFETY ,
LINES, FEATS AND PROCESSING
PLANTS WITH CHICKEN AND MEAT
SLAUGHTER FACILITIES. THAT MIGHT
SEEM TANGENTIAL BUT IT IS
RELATED TO THE CONSOLIDATION OF
THIS INDUSTRY. ANOTHER THING I
WOULD LIKE TO EMPHASIZE IN
ACADEMIA WE DON'T TEND, WE JOKE
THINGS ARE NOT REAL UNTIL
ECONOMIST DISCOVERS AND SO THOSE
OF US IN POLICY AND SOCIAL
SCIENCE MY COLLEAGUES WE HAVE 80
YEARS OF RESEARCH THAT POINT
STYLE LOCALLY FACING BUSINESSES
PRODUCE GREATER CIVIC ENGAGEMENT
AND VIABILITY, GREATER ECONOMIC
EQUALITY AND THAT IS DEEPLY TIED
INTO IF THOSE BUSINESSES CANNOT
SURVIVE AND MINE IS A STRUGGLING
SMALL FARM BUSINESS, THEN
COMMUNITIES AS A WHOLE SUFFER AS
WELL. ANOTHER THING I WANT TO
HIGHLIGHT AND DISCLOSE AND THANK
YOU FOR YOUR WORK IS THE LEGAL
NATURE OF THIS. THESE ARE
SOLVABLE PROBLEMS AND MOST OF IT
IS LEGAL INTERPRETATION OF LAWS
ON THE BOOKS AS WELL AS THE
POLITICAL WILL. REPRESENTATIVES
THANK YOU FOR BEING HERE. THE
POLITICAL WILL TO PUSH THROUGH
JUDGES WILL INTERPRET LAWS NOT
BASED ON CONSUMER WELFARE
STANDARDS THAT HAVE BEEN THE
STANDARD OF INTERPRETATION TO
PUSH THAT THROUGH SOME DECADES
AGO , THAT IS BY THE WAY THE
BASIS FOR THE INTERPRETATION
THAT PROMISES LOWER PRICES BUT
WE DON'T ACTUALLY GET THE LOWER
PRICES OF CONSOLIDATION. THIS
ISN'T A LEGAL INTERPRETATION
MATTER AND WHAT I'M LOOKING FOR
IS WHAT YOU GOING TO DO TO THROW
EVERY ENERGY AT THE COURT
BECAUSE WE NEED A CHANGE IN
COURTS IN ORDER TO HELP PUSH
THESE THROUGH SO I WANT TO
HIGHLIGHT THOSE THINGS. THANK
YOU.
>> ANYONE ELSE? WE ARE ALMOST
RIGHT ON TIME WITH WHERE WE
THOUGHT WE WOULD BE. 'S WERE
GOING TO CLOSING STATEMENTS AND
RESPONSES TO WHAT WE HEARD. GO
AHEAD. I THINK WE CAN TAKE ONE
MORE.
>> HI MY NAME IS ALESSANDRA, I
LIVE NORTH OF SEATTLE. I USED TO
WORK IN THE FOOD INDUSTRY SO THE
WHOLE MONOPOLY THING IS VERY
IMPORTANT. I GOT TO SEE FROM A
DIFFERENT POINT OF VIEW. I THINK
ANOTHER THING I LOOK AT IS
ANOTHER SMALL BRAND TRYING TO
BREAK IN WITH RETAILERS WITH A
PRICE HIKE, THERE'S NOT ANYBODY
TO TAKE RESPONSIBILITY FOR IT. I
SAW EVERYDAY PRICE INCREASE ON
THE PRODUCT IN 2023 AT THE
RETAILER DID PRICE INCREASES
UNTIL 2025 SALES WERE GOING DOWN
AND RIVETING POST OUT OF IT AND
THEY WERE IN THE PRIVATE LABEL
BECAUSE THAT HIGHER
PROFITABILITY OFF OF IT SO IT IS
IMPORTANT TO NOT ONLY BREAK
THESE OUT, BUT ALSO FIND A PLACE
WHERE THEY TAKE RESPONSIBILITY
FOR WHAT THEY ARE DOING AND ALSO
SIMILAR TO THE INSTACART , WHAT
THEY DO ON APPS , SIMILAR PRICE
DYNAMICS AND ALL OF THAT, AND I
WANTED TO SAY THANK YOU FOR
THIS.
>> WONDERFUL.
>> WITHOUT BEING ABLE TO BE IN
THE FIELD AND TAKE IT PUBLIC
TESTIMONY. IT IS REALLY SUCH A
WONDERFUL THING. WE ARE GOING TO
CLOSING STATEMENTS AND I WILL
BAT CLEANUP SO WE WILL START
WITH .
>> AGAIN I WANT TO EMPHASIZE HOW
GRATEFUL I AM FOR THE HEARING
FOR ALL OF YOUR ENGAGEMENT AND
WITNESSES. WE HAVE ALL LEARNED
EVEN MORE DEEPLY ABOUT HOW
CONSOLIDATION IS DRIVING PRICES
, SUPPORTING THE BIG GUY,
THROWING THE LITTLE GUY UNDER
THE BUS WHETHER THE LITTLE GUY
IS A RANCHER OR FARMER OR WORKER
OR ENTREPRENEUR TRYING TO GET
INTO THE MARKETS. AND I WAS
FASCINATING TO HEAR THAT A
INDEPENDENT GROCER THAT HAS TO
PAY MORE WHOLESALE IS ABLE TO
KEEP PRICES LOWER AND I THINK
THAT REALLY UNDERLINES JUST HOW
MUCH PROFIT THESE GIGANTIC
GROCERY STORES ARE MAKING AND WE
HAVE ALL HAD ENOUGH OF IT. I
WANT TO THANK YOU FOR YOUR WORK,
I WANT TO NOTE IT WAS DONE
DURING ADMINISTRATION WHERE WE
HAD A FULLY STAFFED FTC WHERE WE
HAD YOU AND MARIE HAD
ADMINISTRATION THAT FELT SIMILAR
TO OTHER PEOPLE IN THIS ROOM ARE
FEELING. NOW WE HAVE A UPHILL
BATTLE TO DEMOCRATIC MEMBERS OF
THE FTC WHO HAD BEEN FIRED,
SUPREME COURT WAS OKAY WITH THAT
SO WE ARE LOSING THE TOOLS THAT
WE NEED AND THAT IS WHY WE WILL
ALL BE FIGHTING TO MAKE THESE
THINGS LAW. THANK YOU.
>> THANK YOU.
>> I WANT TO THANK EVERYONE FOR
BEING HERE AND ALSO TO THE
WITNESSES. YOU KNOW, WE ARE IN A
VERY DIFFERENT TIME BUT WHAT I
CAN TELL YOU IS I HAVE TALKED
ABOUT FOR INSTANCE THE STOP
PRICE GOUGING AT GROCERY STORES
ACT WHICH UFCW IS A PROUD
SUPPORTER OF AND I HAVE TALKED
ABOUT IT IN THE AREAS WHERE
TRUMP WON BY 36% IN THOSE
DISTRICTS, TO THE PLACE WHERE
WON BY 24% AND TO A PERSON THEY
SUPPORT THIS. MONOPOLY BUSTING
IS NOT A PARTISAN ISSUE. THIS IS
ABOUT PROTECTING CONSUMERS AND
TO THE YOUNG WOMAN WHO TALKED
ABOUT WHAT HAPPENED IN CORVALLIS
YES UNITED HEALTHCARE CAME IN ,
OFTEN BOUGHT LOCAL CLINICS AND
THEN WHEN THE DOCTORS LEFT,
BARRED THEM FROM ANY OF THE WORK
IN THE COMMUNITIES AND FIRED
PATIENTS THAT WERE ON MEDICAID.
SO, WORKING WITH OUR
LEGISLATURE, WE WERE ABLE AND
OUR GOVERNOR , LETTING THEM KNOW
IT WOULD NOT BE A GOOD IDEA TO
TAKE AWAY DOCTORS AND
COMMUNITIES THAT ALREADY DO NOT
HAVE ACCESS TO MEDICAL CARE. AND
YOU KNOW REPRESENTATIVE ,
MYSELF, THE SENATORS PUT UP
PATIENT OVER PROFIT ACT
PREVENTING LARGE INSURANCE
COMPANIES AND SUBSIDIARIES FROM
BUYING CLINICS. THIS IS IN EVERY
ASPECT OF THE WORLD. WE HAVE TO
STOP ANNAPOLIS, THIS IS BAD FOR
CONSUMERS, THIS IS BAD FOR
PRODUCERS, IT IS BAD FOR THE
ECONOMY AND AGAIN IT IS HARD
WHEN YOU LIVE IN A BLUE AREA OR
RED AREA, UNDERSTAND THIS IS NOT
A PARTISAN ISSUE AND SO I HOPE
WE TAKE THIS ON THE ROAD.
>> YEAH, FANTASTIC.
>> THANK YOU SO MUCH. THANK YOU
TO EVERYONE FOR BEING HERE AND
PARTICIPATING. ONE OF THE
STRIKING THINGS ABOUT BEING IN
CONGRESS IS THERE'S MUCH LESS
PUBLIC COMMENT THAN WE HAVE IN
THE LEGISLATURE. I AM REMINDED
HOW IMPORTANT IT IS TO BRING THE
VOICES OF NEIGHBORS FROM ALL
ACROSS THE STATE AND COMMUNITY
TO INFORM OUR WORK. SO THANK YOU
FOR MAKING SPACE FOR THAT. I
CANNOT AGREE MORE WITH MY
COLLEAGUES, WE HAVE TO DO
EVERYTHING WE CAN TO STOP THIS
CONSOLIDATION BECAUSE IT IS A
NONPARTISAN ISSUE, YOU KNOW THE
PEOPLE LIVE DOWN LONG DRIVEWAYS
IN RURAL PARTS OF THE OLYMPIC
PENINSULA, THEY KNOW
PARTICULARLY WELL THAT THEY ARE
LOSING WHATEVER PARTY THEY VOTE
FOR, THERE LOSING WHEN BIG
BUSINESSES ARE GETTING RICHER
AND RICHER AND THEY'RE GETTING
LESS AND LESS ACCESS TO
HEALTHCARE, TO GROCERIES, TO THE
BUYING POWER. WHEN WE SEE THIS
DYNAMIC PRICING CHANGE THE WAY
THAT RENTS ARE CALCULATED AND
GROCERY PRICES ARE CALCULATED
AND HEALTHCARE IS CALCULATED ,
IT'S HARDER AND HARDER FOR
PEOPLE TO GET BY AND THAT'S WHAT
WE HEAR AROUND THE COUNTRY THAT
FOLKS ARE JUST TRYING TO GET BY
AND IT IS OUR JOB TO USE EVERY
TOOL AT OUR DISPOSAL TO ENSURE
FOLKS CAN BUILD THEIR OWN LIVES
AND FUTURES. AND THAT MEANS
USING SOME REGULATIONS TO HOLD
ACCOUNTABLE, BIG PROFIT
MOTIVATED INDUSTRIES THAT ARE
JUST TRYING TO GET RICH OFF THE
BACKS OF THE PEOPLE SO THANKS
FOR BEING HERE AND I AM SO
EXCITED TO BE A PARTNER IN THIS
WORK.
>> ONE OF THE GREAT THINGS ABOUT
DOING A FIELD HEARING IS YOU GET
TO CONTROL WHAT HAPPENS, IT DOES
NOT HAVE TO GO ACCORDING TO
SCHEDULE SO I WANT TO GIVE OUR
WITNESSES AN OPPORTUNITY TO SAY
ANY LAST WORD AND I WILL TRULY
BAT CLEANUP AFTER YOU ALL. SO WE
WILL START WITH YOU.
>> YES , THANK YOU. JUST BECAUSE
WE BLOCK A MERGER DOES NOT
NECESSARILY MEAN WE'VE
ACCOMPLISHED ALL WE WANT TO
COMPASS. CISCO US FOODS , WHEN
WAS THAT MERGER DENIED? WE
CELEBRATED IT IN MY INDUSTRY.
ABOUT 10 YEARS AGO AND WE WERE
SUCCESSFUL BLOCKING THE MURDER
BUT THAT DOES NOT MEAN THEY
DON'T COOPERATE AFTER GETTING
TO KNOW EACH OTHER VERY WELL
DURING THE CONSIDERATION OF THE
MERGER. SAME WITH KROGER AND
ALBERTSONS. NOW WE ARE SEEING
KROGER STORES CLOSE OR SAFE WAYS
CLOSE AND YOU CAN SEE HOW THEIR
STRATEGIZING, LIKE THEY HAVE
BEEN TALKING TO EACH OTHER. I
WOULD INVITE YOU TO PULL OUT
YOUR PHONES AND LOOK UP THE
RETURN ON EQUITY FOR CISCO , BE
CAREFUL. THERE ARE INDICATORS OF
MARKET POWER AND THAT IS AN
AMAZING RETURN ON EQUITY. THAT
IS MONOPOLY POWER AND SO I WANT
TO REALLY ENCOURAGE US TO LOOK
AT BUILDING THE ALTERNATIVE FOOD
SYSTEM. THE REPRESENTATIVE
TALKED ABOUT PERHAPS SOME CAMINO
LOCALLY OWNED WHATEVER SUPPORTED
STORES BUT I LIKE THE IDEA OF A
MAKE YOUR OWN MARKET WHERE THE
BANKER AND THE BUTCHER OR THE
BREWER , THEY OWN THE REAL
ESTATE TOGETHER. THEY ARE NOT
PAYING RENT TO A LANDLORD AND
AFTER 20 OR 30 YEARS THEY HAVE
GOT EQUITY, THEY OWN IT. YEAR 8
OF A 10 YEAR LEASE THEY ARE NOT
LETTING THE PINKO THEY'RE NOT
LETTING THE THING FALL APART
HAVE A LONG-TERM VISION, I LOVE
THE IDEA OF THE SYNERGY THAT
COMES WHEN YOU CALL LOCATE WITH
A LOT OF OTHER PEOPLE THAT CARE
ABOUT IT LIKE YOU DO THANK YOU.
>> THANK YOU SO MUCH, PLEASE.
>> I WAS NOT REALLY PREPARED FOR
A CLOSING STATEMENT.
>> YOU DON'T HAVE TO, JUST IF
YOU HAVE ANYTHING YOU WANT TO
ADD. DON'T FEEL OBLIGED.
>> I WILL SAY THIS, I WORK WITH
FARMERS IN ARLINGTON, WASHINGTON
MARY HAVE A MANUFACTURING
FACILITY SO I WORK WITH
INDEPENDENT FARMERS AND I USE
PRODUCTS , THEIR STUFF TO MAKE
MY PRODUCT SO IT IS A LOT OF
WORK. ONE OF THE THINGS I WOULD
SAY IS MAKE SURE TO SUPPORT
SMALL BRANDS A LOT OF US ARE IN
RETAILERS, SOMETIMES WE ARE IN
BIGGER RETAILERS AND IT COSTS
MONEY TO BE ON THE SHELVES. ALSO
WORKING WITH BIG DISTRIBUTORS IT
COSTS MONEY TOO BUT FOR US IT'S
IMPORTANT TO HAVE VELOCITY ON
THE SHELF TO STAY ON THE SHELVES
AND FOR THE PRODUCTS TO STAY
THERE BECAUSE THE CONSUMER IS
VERY IMPORTANT TO US RIGHT, IN
ORDER TO SUSTAIN THE ECOSYSTEM
WE ARE IN. SO LIKE I WORK , I DO
WORK SOME RANCHERS WHICH WILL
START DOING THAT BECAUSE I HAVE
A NEW PRODUCT THAT CONTAINS, AND
I WORK WITH THE RETAILER AND THE
DISTRIBUTOR , THE MIDDLEMAN AND
I WORK WITH GROCERY STORE CLERKS
AND FOLKS SO I WORK WITH EVERY
SINGLE TOUCH POINT. SO , FOR ME
TO BE HERE IS VERY IMPORTANT
BECAUSE I GET TO SHARE THE STORY
AND TALK ABOUT HOW SMALL BRANDS
LIKE MYSELF CONSIDERED PACKAGED
GOOD BRANDS AND I AM A
MANUFACTURER. I WANT TO MAKE
SURE ALL OF YOU UNDERSTAND THOSE
ARE DIFFERENT POINTS BECAUSE
MANUFACTURERS PRODUCE AND MAKE
PRODUCTS AND CONSIDER PACKAGED
GOODS PRODUCTS, THE STUFF ON
SHELVES AND THOSE ARE DIFFERENT
THINGS THAT COST A LOT OF MONEY.
MAKE SURE TO SUPPORT SMALL
BRANDS AND YOU WILL SEE THEM ON
SHELVES. THAT'S IT FROM ME.
>> I WOULD LIKE TO FOLLOW UP ON
WHAT WAS SAID IN THAT THEY WILL
FIND A WAY TO MAKE THEIR PROFITS
EVEN WHEN WE DO THINGS LIKE
BLOCK THESE MERGERS. ME AND MY
FELLOW COWORKERS , WE ALL KNEW
THAT THERE WOULD BE FEWER STORES
IF THE MERGER GOT BLOCKED OR IF
IT WENT THROUGH BECAUSE IF THE
MERGER GOES THROUGH NOW THEY
HAVE MUCH LESS COMPETITION, THEY
CAN REMOVE A BUNCH OF STORES
FROM VARIOUS AREAS LIKE YES
THERE IS A SAFEWAY A BIT NORTH
OF LAKE CITY WHY WOULD THEY KEEP
THE SAFEWAY THERE AND FRED MEYER
ON LAKE CITY? ONE OF THEM WOULD
HAVE TO GO IF THE MERGER GOES
THROUGH THE MERGER DOES NOT GO
THROUGH THEY NEED TO GET PROFITS
UP SO THEY WILL CONSOLIDATE IF
YOU WERE LITTLE LOCATIONS AS
THEY'RE PAYING LESS MAINTENANCE
LESS IN JOBS, PAYING LESS IN
RENT AND EVERYTHING BUT THEY ARE
ABLE TO EXTERNALIZE THE COSTS TO
THE CUSTOMERS, THEY DON'T CARE
THAT THE CUSTOMER NOW HAS TO
DRIVE AN ADDITIONAL 20 MINUTES,
THAT IS NOT A COST TO THEM. WE
HAVE TO FOCUS ON THE FACT THAT
WE CAN GET WINS BUT WE HAVE TO
KEEP MOMENTUM AND PREVENT THEM
LIKE WE CAN BLOCK ONE MERGER
THEN THEY WILL FIND THE NEXT WAY
TO MAKE THEIR PROFITS AND THE
NEXT WAY TO SCREW OVER WORKERS
AND CONSUMERS. SO YEAH, WE NEED
TO CONTINUE FORWARD WITH A
STRONG ALLIANCE OF OUR LABOR
UNION OF THE LABOR MOVEMENT AND
LEGISLATIVE UNIONS.
>> THANK YOU SO MUCH.
>> WHAT I WOULD LIKE TO END WITH
IS IN ORDER TO STRENGTHEN FOOD
AT A LOCAL LEVEL YOU TO SUPPORT
THE LOCAL PRODUCERS THAT ARE IN
DISTRIBUTION. IT IS CAMINO YOUR
LOCAL SUPPLIER FOR EGGS, IT IS
GREENS, FACE AND BODY CARE, WHEN
YOU HAVE THE OPPORTUNITY TO
SUPPORT THOSE BRANDS I WOULD
ENCOURAGE YOU ALL TO DO SO.
>> THANK YOU SO MUCH, I KNOW YOU
HAVE A LOT TO SAY ON A LOT OF
QUESTIONS THAT CAME UP.
>> I WILL BE QUICK. 1st OF ALL
YOU ARE ABSOLUTELY RIGHT.
TRACTORS SHOULD NOT BE
SUBSCRIPTION SERVICES, THIS IS
RAISING COST AND THE COST OF
PARTS ARE GOING UP. THE ABILITY
TO FIX THEM THE COST IS GOING
UP, INABILITY TO FIX THEM AND
TRADE THEM IN THESE ARE PROBLEMS
WE NEED TO ADDRESS THOSE ISSUES.
THE POINT ABOUT THE JUDGES I
CANNOT AGREE MORE THE COURTS
HAVE ERODED THE RIGHTS OF PEOPLE
, THE RIGHTS OF CONSUMERS AND
FARMERS , THE RIGHTS OF
BUSINESSES. WE HEARD ABOUT THAT
IMPORTANT CASE COURTS TOOK THE
WORDS OF CONGRESS AND NARROWED
IT AWAY NOW BECAUSE THEY SAID
SOVIET IT WAS ECONOMICALLY
EFFICIENT WITHOUT GOING TO
CONGRESS TO ASK. THESE ARE
CHOICES AND WE NEED TO MAKE
CHOICES ABOUT JUDGES ,
REPRESENTATIVES, PEOPLE IN
POLICY AND POLITICAL POSITIONS
WHO WILL FIGHT FOR YOU WILL
FIGHT TO MAKE SURE WE ARE
PUTTING PEOPLE AT A BUSINESSES
AND CORPORATIONS. ULTIMATELY
THERE IS MORE WE CAN DO, WE
CANNOT UNDO 40 YEARS OF THAT
POLICY IN 4 DAYS BUT WE CAN
CERTAINLY TRY.
>> FANTASTIC. THIS WAS REALLY
REALLY WONDERFUL COME I WANT TO
THANK ALL WITNESSES AND I
COLLEGE FOR COMING. THE REASON
WE CALLED IT THE MONOPOLOGY
BUSTERS CAUCUS NOT THE ANTITRUST
CAUCUS IS BECAUSE WE WANT PEOPLE
TO MAKE THE CONNECTION BETWEEN
CONSOLIDATION AND MONOPOLIES AND
WHAT IS HAPPENING TO YOUR OWN
LIVES AND LIVELIHOODS AND
REGARDS SUCH A GOOD SCHOOLING
REALLY FROM WITNESSES ABOUT THE
DIFFERENT PARTS OF
CONSOLIDATION, HOW IT IS
AFFECTING SMALL BUSINESSES, HOW
IT IS AFFECTING INNOVATION AND
HOW IT'S AFFECTING WORKERS AND
CONSUMERS AND I THINK, FOR ME WE
ARE GOING TO HAVE TO ENFORCE THE
LAWS WE HAVE. THAT WAS SOMETHING
THE BIDEN DOJ DID THAT JONATHAN
CANTOR AND OTHERS DID , DURING
THE BIDEN ADMINISTRATION NOW WE
ARE SEEING A ROLLBACK OF THAT.
WE ARE GOING TO HAVE TO BLOCK
THE MURDERS BUT YOUR POINT IS
WELL TAKEN THAT JUST BLOCKING
THE MERGER IT IS A VICTORY
BECAUSE YOU ARE CHALLENGING THE
CONSOLIDATION PIECE OF IT BUT
YOU ARE NOT NECESSARILY SOLVING
ENTIRE PROBLEM BUT IT IS
IMPORTANT AND WE HAVE TO PASS
NEW LAWS AND I'M GRATEFUL TO
THE REPRESENTATIVE FOR HER WORK
ON THIS AND STATE LEGISLATURE, I
KNOW THE MAYOR IS TAKING THIS
ISSUE SERIOUSLY AS WELL,
THERE'S A LOT OF THINGS WE CAN
DO WITHIN OUR CITIES TO MAKE
SURE WE ARE CRACKING DOWN ON
THIS CONSOLIDATION AS WELL.
SOMEBODY RAISED THE ROLE OF BIG
TECH AND THIS IS SOMETHING WE
HAVE BEEN LOOKING A LOT AT AND
WE HOPE WE HAVE SOME LEGISLATION
THAT PERHAPS WE CAN ROLL OUT
AROUND THIS BECAUSE I DO THINK
SURVEILLANCE PRICING AND A.I.,
ALL THE DIFFERENT WAYS IN WHICH
TECHNOLOGY IS BEING USED TO
FACILITATE THE CONSOLIDATION AND
THE PROFITS OF THE CORPORATIONS
AND HURT WORKERS IS REALLY
IMPORTANT, WE WERE AT WASHINGTON
LAW SCHOOL TODAY AND I SAID TO
THE ROOM OF ABOUT 150 PEOPLE OR
SOMETHING, STUDENTS, THAT THERE
THE NEXT SET OF JUDGES, RIGHT?
WE HAVE TO RETHINK HOW ANTITRUST
HAS BEEN ENFORCED AND I THINK WE
HAVE A LOT OF WORK TO DO THERE.
I WILL SAY ON HEALTHCARE BECAUSE
THAT WAS RAISED SEVERAL TIMES
AND REPRESENTATIVE RANDAL TALKED
ABOUT IT. WE ARE DOING OTHER
FIELD HEARINGS THAT WILL BE
SPECIFICALLY ON HEALTHCARE AND
YOU ARE RIGHT THAT THE PATTERN
IS THE SAME AND THAT IS PART OF
A MONOPOLY BUSTERS IS TRYING TO
TAKE ON. SO I APPRECIATE YOU ALL
FOR BEING HERE AND FOR HELPING
US TO SORT THROUGH THIS AND ALSO
FOR MAKING THE CONNECTIONS
BETWEEN THE GIANT CORPORATIONS
THAT ARE ESSENTIALLY OWNING
EVERYTHING THAT WE DO AND
LEAVING US WITH FEWER AND FEWER
CHOICES , WORSE JOBS , MORE
DISREPAIR IN OUR COMMUNITIES AND
FEWER SMALL BUSINESSES, WE LOVE
SMALL BUSINESSES, I APPRECIATE
THE UFCW WORKERS ALSO TALK ABOUT
HOW MUCH THEY LOVE THEIR JOBS
BECAUSE I KNOW FOR ME MY GROCERY
STORE IS IMPORTANT AND I KNOW
ALL THE PEOPLE WHO WORK THERE SO
IT'S REALLY SUCH A CHAIN OF
IMPORTANT FACTORS THAT HAVE BEEN
RAISED TONIGHT AND I THANK YOU
ALL FOR BEING HERE AND FOR
HELPING US TO CONDUCT A VERY
SUCCESSFUL 1st FIELD HEARING OF
THE MONOPOLOGY BUSTERS CAUCUS.
>> [ APPLAUSE ]