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Grocery stores increase donations to congressional Democrats


Grocery stores increase donations to congressional Democrats

The amount of political donations from major food companies accepted by Democratic lawmakers this congressional election cycle has increased slightly, according to a Reuters analysis of Federal Election Commission data, even as many Democrats have accused leading U.S. grocery chains and their suppliers of driving up prices at the expense of consumers.

Democrats have every reason to focus on food prices, which rose 25% between 2019 and 2023. Reuters/Ipsos polls show that the economy is voters’ biggest concern and they have greater confidence in Republicans to get it under control.

Dozens of Democrats have stepped up their demands since Kroger (KR.N), the country’s largest grocer by revenue, proposed a $24.6 billion merger with smaller rival Albertsons (ACI.N). The Federal Trade Commission (FTC) is challenging the deal, saying it is harmful to shoppers and workers, and the case will be heard in federal court in Oregon starting Monday.


Groceries
The Federal Trade Commission has challenged the proposed merger between Kroger’s and Albertsons, arguing that it would adversely affect workers and customers. Kaylee Greenlee Beal

Albertsons’ PAC has donated $291,500 so far, more than triple its $90,000 for the entire 2021-2022 election cycle. Kroger’s PAC is also ahead of its pace, donating $141,000 so far, compared to $140,500 for the entire 2021-2022 cycle.

At least 154 Democratic lawmakers or their fundraising organizations have accepted donations from a handful of leading food companies during the current campaign. Among them are 51 congressional Democrats – one in five – who did so while publicly denouncing corporate greed in the food industry.

Among those who have both criticized the food companies’ tactics and accepted their donations are some of the most vulnerable Democrats in the Senate – Sherrod Brown of Ohio, Bob Casey of Pennsylvania and Tammy Baldwin of Wisconsin.

According to FEC data, 65 congressional Democrats and their affiliated fundraising committees have received 94 donations from Kroger and Albertsons political action committees totaling $185,000 through June 2024.

The two companies’ donations are dwarfed by Walmart (WMT.N), opens new tab, whose PAC has donated at least $441,500 to Democrats this election.

Corporate PACs are legally allowed to donate up to $10,000 to campaigns, and typically to both parties. In total, 58 percent of Kroger and Albertsons’ combined donations this election cycle went to Republican congressional campaigns.

According to the group End Citizens United, 68 current members of Congress have vowed to stop accepting money from corporate PACs, up from 59 two years ago. Activists say lawmakers need to realize that doing so may come with strings attached.

“Large corporations like these don’t just give elected officials money for their health, they do it expecting something in return,” said Morgan Harper, policy director at Fight Corporate Monopolies. “That quid pro quo can often be trying to stop the wheels of government turning to enforce the law against them.”


Price tags in the grocery store
68 members of Congress have promised not to accept money from corporate PACs. REUTERS

Vice President Kamala Harris also made tackling price gouging a focus of her first major economic policy speech during her presidential campaign.

Breaking the “greedflation”

Casey, who is expecting a tough re-election fight in Pennsylvania, said Mondelez International (MDLZ.O) had fueled “greedflation” by reducing its Wheat Thins crackers and Double Stuf Oreos, and criticized Procter & Gamble (PG.N) for its prices on toilet paper, dish soap and toothpaste.

His campaign accepted $1,000 in donations from PACs for both companies, which supply retailers such as Kroger and Albertsons.

Casey’s campaign team said criticizing donors showed independence.

“Bob Casey is an independent fighter who will always stand up for working people, against corporate greed and against companies that rip off the citizens of Pennsylvania,” a campaign spokesman said.

A Mondelez spokesman said the company considers “a range of criteria when making campaign donations, including positions on policy issues important to our business, the presence of our employees or facilities in a candidate’s district or state, and membership on key committees or leadership positions.”

Brown, whose re-election in Ohio is considered one of the Democrats’ toughest as they try to defend their 51-49 Senate majority, received $2,500 last year from Cincinnati-based grocer Kroger’s PAC and $5,000 from Albertsons’ PAC. Brown was also the only lawmaker to receive donations from the CEOs of both grocery chains, both of whom donated the maximum amount of $6,600.

He generally blames corporate spending on stock buybacks and executive bonuses for the rise in food prices. He supports the Kroger-Albertsons deal because the companies are unionized.

“If this merger is done correctly and Kroger ensures that workers have a seat at the bargaining table, the company has the potential to become one of the largest unionized companies in an industry increasingly dominated by non-union large corporations,” said Brown spokesman Kevin Donohoe.

The United Food and Commercial Workers International Union, which represents workers at both chains, is against the merger.

Baldwin, of Wisconsin, accused General Mills (GIS.N) of “misleading” pricing by shrinking the size of Cocoa Puffs cereal packages by 1.2 ounces while keeping the price the same. Since then, Baldwin’s campaign has received a total of $7,500 from General Mills’ PAC.

Baldwin’s campaign team did not respond to requests for comment.

Democrats in Congress have also criticized rising prices in the meat processing industry, but still accepted at least $286,000 in campaign contributions this legislative session from JBS USA, Tyson Foods (TSN.N), opens new tab and Cargill.

Albertsons declined to comment. The other companies mentioned did not respond to requests for comment.

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