Colorado v. Kroger trials ends, outcome still uncertain

After 3 weeks of trial, the Colorado v. Kroger suit concluded on Thursday. Denver District Court has yet to come to a decision on the $26.4 billion merger trial.

Grocery store chain, Kroger, announced they would be buying competitor, Albertsons, in October 2022. The business deal immediately raised concerns in states where the two companies compete. Economists believe that by Kroger eliminating their competition with Albertsons, product costs would rise due to the lack of a price ceiling.

According to the New York Times, the grocery chains make up about 13% of grocery sales nationwide. Colorado Attorney General representative, Arthur Biller, said that combined, both grocers make up 50% of grocery sales in the state. Overall the Attorney General Office raised concerns that the merger deal could cost Colorado shoppers $500 million per year.

Kroger lawyer, Matt Wolf, rebutted Biller’s claims, saying these concerns demonstrate a “profound lack of understanding of the modern grocery industry,” the Denver Post reported.

Wolf explained that since Kroger’s prices are about 10% to 12% lower than Albertsons, consumers who previously shopped at Albertsons will now benefit from Krogers ownership of the company.

If the merger deal is successful, some Albertsons stores will be sold to C&S Wholesale, a grocer company based out of New Hampshire. Some staff members would be transferred to C&S, and the company says they plan to invest $150 million in 91 Colorado stores they acquire to lower prices.

Dr. Nitin Dua, another representative for the Colorado Attorney General Office, made the trials closing testimony. Dua says that even if C&S was able to make up to 70% of the sales Albertsons made while the chain owned the grocery stores, there would be dozens of non-competitive supermarket areas.

Kroger has also been taken to court by Washington and Oregon in attempts to block the merger deal. Colorado District Court ruling is yet to come.