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Grocery stores boost donations as Democrats criticize their business practices
Aug 23, 2024 3:30 AM

WASHINGTON, Aug 23 (Reuters) - The level of political

donations from major food companies accepted by Democratic

lawmakers has ticked higher this congressional election cycle,

even as many Democrats have accused the top U.S. grocery chains

and their suppliers of pushing prices higher at consumers'

expense, a Reuters analysis of Federal Election Commission data

shows.

Democrats have reason to focus on food prices, which have

risen 25% between 2019 and 2023. Reuters/Ipsos polling shows the

economy is voters' top concern and they have higher confidence

in Republicans to manage it.

Dozens of Democrats have stepped up their calls since Kroger ( KR )

, the nation's biggest grocer by revenue, proposed a $24.6

billion merger with smaller rival Albertsons ( ACI ). The

Federal Trade Commission's challenge to the deal, which it

argues is bad for shoppers and workers, goes to trial in an

Oregon federal court beginning Monday.

Albertsons' ( ACI ) PAC has so far contributed $291,500, more than

triple its $90,000 through the full 2021-2022 election cycle.

Kroger's ( KR ) PAC is also running ahead of its pace, having donated

$141,000 so far, up from $140,500 for the entirety of the

2021-2022 cycle.

At least 154 Democratic lawmakers or their fundraising

organizations have accepted contributions from a handful of top

food companies during the current campaign cycle. That includes

51 congressional Democrats - one in five - who have done so

while publicly blasting corporate greed in the food industry.

Some of the Senate's most vulnerable Democrats - Ohio's

Sherrod Brown, Pennsylvania's Bob Casey and Wisconsin's Tammy

Baldwin - are among those who both criticized food companies'

tactics and taken their donations.

Sixty-five congressional Democrats and their affiliated

fundraising committees have received 94 contributions from

Kroger's ( KR ) and Albertsons' ( ACI ) political action committees totaling

$185,000, according to the FEC data through June 2024.

The two companies' donations are dwarfed by Walmart ( WMT ),

whose PAC has contributed at least $441,500 to Democrats this

election.

Corporate PACs are legally allowed to give up to $10,000 to

campaigns and typically donate to both parties. Overall, 58% of

Kroger's ( KR ) and Albertsons' ( ACI ) combined donations went to Republican

congressional campaigns this cycle.

Sixty-eight current members of Congress have sworn off

accepting corporate PAC money, according to the group End

Citizens United, up from 59 two years ago. Activists say

lawmakers need to realize it may come with strings attached.

"Large corporations like this don't just give money to

elected officials for their health, they do it to expect some

type of return," said Morgan Harper, policy director at Fight

Corporate Monopolies. "That return can often be in trying to

stop the wheels of government from moving to enforce the law

against them."

Vice President Kamala Harris also made cracking down on

price gouging a focus of the first major economic speech of her

presidential campaign.

BLASTING 'GREEDFLATION'

Casey, who faces a stiff reelection fight in Pennsylvania,

has said Mondelez International ( MDLZ ) stoked "greedflation"

by shrinking its Wheat Thins crackers and Double Stuf Oreos, and

criticized Procter & Gamble ( PG ) for its prices on toilet

paper, dish soap and toothpaste.

His campaign accepted $1,000 donations from PACs for both

companies, which supply retailers including Kroger ( KR ) and

Albertsons ( ACI ).

Casey's campaign said criticizing donors demonstrated

independence.

"Bob Casey is an independent fighter who will always stand

up for working people against corporate greed and companies

ripping off Pennsylvanians," a campaign spokesperson said.

A Mondelez ( MDLZ ) spokesperson said the company considers "a

variety of criteria including positions on public policy issues

important to our business, the presence of our employees or

facilities in a candidate's district or state and key committee

membership or leadership positions" when making campaign

donations.

Brown, whose Ohio reelection bid is rated one of Democrats'

most challenging as they seek to defend their 51-49 Senate

majority, last year received $2,500 from Cincinnati-based

Kroger's ( KR ) PAC and $5,000 from Albertsons' ( ACI ) PAC. Brown was also the

only lawmaker to receive contributions from the CEOs of both

grocery chains, both of whom contributed the maximum $6,600.

He has broadly blamed corporate spending on stock buybacks

and executive bonuses for pushing grocery prices higher. He

supports the Kroger-Albertsons' deal because the companies are

unionized.

"If this merger is done correctly, and Kroger ( KR ) ensures that

workers have a seat at the table, the company has the potential

to become one of the largest union companies in an industry that

is increasingly dominated by nonunion corporate giants," said

Brown spokesperson Kevin Donohoe.

The United Food and Commercial Workers International Union,

which represents workers at both chains, opposes the merger.

Wisconsin's Baldwin accused General Mills ( GIS ) of

"deceptive" pricing for shrinking Cocoa Puffs cereal boxes by

1.2 ounces but charging the same price. Since then, Baldwin's

campaign received a total of $7,500 from General Mills' ( GIS ) PAC.

Baldwin's campaign did not respond to requests for comment.

Congressional Democrats have also blasted rising prices in

the meatpacking industry but have still accepted at least

$286,000 in campaign donations this cycle from JBS USA, Tyson

Foods ( TSN ) and Cargill.

Albertsons ( ACI ) declined to comment. The other companies

mentioned did not respond to requests for comment.

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