Monopolies across the grocery supply chain squeeze consumers, small businesses

I went to the lake last week. Before heading out, I went to the grocery store to buy some soda, an infrequent purchase in my household, and was stunned to find a 12 pack for $9.99. That was at least double the price I expected. Trying to understand where this pricing anomaly came from, I started checking out historical commodity prices. A bushel of corn for today versus 2011 - almost unchanged. Aluminum for today versus 2011 - almost unchanged. Transportation costs? West Texas Intermediate crude for today versus 2011 - almost unchanged. It’s either the caramel coloring or the water… Or the lack of competition.<p>After I left the store, I did check their ad, and found a 12 pack of a lower tier soda for $3.50<p>Someone is making 60 points of margin on the $10 12 pack. That seems extreme for what is effectively corn syrup and water in an aluminum can.

2021 article from the Guardian:<p>“ A handful of powerful companies control the majority market share of almost 80% of dozens of grocery items bought regularly by ordinary Americans, new analysis reveals.”<p><a href="https:&#x2F;&#x2F;www.theguardian.com&#x2F;environment&#x2F;ng-interactive&#x2F;2021&#x2F;jul&#x2F;14&#x2F;food-monopoly-meals-profits-data-investigation" rel="nofollow">https:&#x2F;&#x2F;www.theguardian.com&#x2F;environment&#x2F;ng-interactive&#x2F;2021&#x2F;...</a>

Seems we have reached 1910 again and need somebody like Teddy Roosevelt for some trust busting.

Does anyone have any sources for differences by region?<p>I live in Florida currently, and my brother visited from Oregon. He mentioned that Publix was significantly more expensive for groceries than in Oregon.<p>Florida has a lot of retirees and vacationers, so I assume that Publix executives might say: &quot;hey, if we bump the prices 10% in these tourist areas around Orlando, those midwestern snowbirds won&#x27;t bother to shop around and will pay it without complaint. And, the German family on vacation won&#x27;t know any better.&quot;<p>If true, this would be risky, because someone could figure out what prices are radically different in different areas at the same store. Pricing is so dynamic, and these production chains are so complex, it feels like an impossible task.<p>And, it would be fun to explore. Anyone know?

Austin Frerick has had a number of really great interviews since launching his book. Among others:<p>Odd Lots had him on, which is where I first heard about his work. <a href="https:&#x2F;&#x2F;podcasts.apple.com&#x2F;us&#x2F;podcast&#x2F;the-mega-corporations-that-control-what-americans-eat&#x2F;id1056200096?i=1000650703441" rel="nofollow">https:&#x2F;&#x2F;podcasts.apple.com&#x2F;us&#x2F;podcast&#x2F;the-mega-corporations-...</a><p>And an Iowa Public Radio interview <a href="https:&#x2F;&#x2F;www.iowapublicradio.org&#x2F;podcast&#x2F;river-to-river&#x2F;2024-05-31&#x2F;iowan-writes-about-corruption-in-americas-food-industry" rel="nofollow">https:&#x2F;&#x2F;www.iowapublicradio.org&#x2F;podcast&#x2F;river-to-river&#x2F;2024-...</a>

Has this penetrated Aldi&#x27;s, which uses in-house brands for the majority of their products?<p>Is Aldi&#x27;s a good way to avoid these monopolies?<p>From the article, does Aldi&#x27;s avoid?:<p>- Late delivery fees from vendors (or is it better than Walmart?)<p>- Slotting Fees<p>- Sundry wholesaler and retailer fees<p>- Price dependence on Tyson and other abusive suppliers

Monopolies and cartels are basically the entire US economy.<p>At this point it&#x27;s basically proven to be the end state of any &quot;free&quot; market in the real world.<p>Technological innovation is the only thing that truly disrupts monopolies and cartels.

I think this is particularly bad in Canada, where most of the brands are owned by two or three companies, and there has been clear evidence (and penalties) for price fixing.<p>Would love to hear what Canadians think about this + if they see any innovation on the horizon.

Honestly I am always surprised how cheap food can be by mass producing it. How can pork chops cost 0.99&#x2F;lbs or a whole chicken roasted but $5? I know these are sale items but I can feed myself so inexpensively and in general most of the food is pretty healthy (vegetables, some fruits, etc). These supply chains maybe squeezing profit but the likelihood a small business could even come close to the prices they have is small.

I really wish we could return to an era of congress that had appropriate mistrust in business and a strong desire for anti-trust busting. I think it’s one of the most important things we could do to prevent capitalism from going off the rails.

&gt; to help keep small businesses alive.<p>That’s what a lot of this concern is really about. Legal bailouts for mediocre boomers who run inefficient, unambitious businesses with high prices.<p>Small businesses try to guilt you for your business as they rarely offer something worth buying on the merits unless they occupy a niche.<p>&gt; Walmart and scattered Dollar Generals fill the void left by shuttered independent grocers. Frerick worries about the mid-level grocers “collaps[ing] like the rest of America.”<p>“Independent” in this case meaning high priced grocers people didn’t want to shop at. They got wiped out for being unable to control their costs.

It&#x27;s unfortunate that the word monopoly is losing it&#x27;s meaning. Formerly, it meant a business that had an overwhelming or total share of the entire market, plus high barriers to entry. Now it just means a big business, or the only option in my neighborhood.<p>Supermarkets aren&#x27;t especially profitable these days, and downward pressure on suppliers ultimately serves consumers anyway. The grocery business is very competitive, with incredible price transparency and low margins.