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"The Federal Trade Commission must intervene to block this destructive corporate coupling," an expert said.
Food and Water Watch warned on Wednesday that the announced acquisition of Kellanova by Mars Inc. would hurt consumers by allowing the candy giant to take control of a huge proportion of the market's snack and cereal bar sales and called for federal regulators to block the deal.
"The Biden-Harris administration has committed to reining in the food monopolies," Amanda Starbuck, FWW's research director, said in a statement. "The Federal Trade Commission must intervene to block this destructive corporate coupling."
Mars announced the deal, which valued Kellanova at $35.9 billion, earlier Wednesday. Kellanova formed when Kellogg Company split into two companies in September 2023.
Kellogg Company and Mars accounted for 49% of U.S. snack and cereal bar sales in 2022, according to FWW, which pointed to research showing that "growing market concentration leads to fewer consumer choices and rising food prices."
Starbuck said the current trend of food monopolies must be reversed.
"American grocery shoppers are suffering from high prices and fewer choices on the shelves—Mars' Kellanova acquisition would only make it worse," she said. "While processed food giants stand to ramp up profits from snack market domination, the American consumer will lose out with higher costs and fewer healthy options. A shrinking number of ever-larger corporations control a growing share of the food we buy, putting decisions about our health and finances in the hands of corporate kingpins."
Despite Starbuck's concerns, the deal has a good chance of gaining approval by federal antitrust regulators, Reutersreported last week.
Kellanova CEO Steve Cahillane told CNBC that he doesn't foresee any antitrust issues, though Daniel Hanley, a legal analyst at Open Markets Institute, expressed skepticism about the merger's legality in social media posts.
It's fairly ignorant for a CEO to say they don't foresee any antitrust issues. https://t.co/QP9mOGbNg0 pic.twitter.com/eDU86WO0un
— Daniel Hanley (@danielahanley) August 14, 2024
Another food-related merger under antitrust scrutiny is Kroger's $24.6 billion proposed acquisition of Albertsons, which the Federal Trade Commission, led by Chair Lina Khan, has sued to block.
Every year, the Food Chain Workers Alliance marks International Food Workers Week in November. As peoples' thoughts turn to holiday feasts, it's a time to recognize the labor that people working from field to factory contribute to feeding the world. What started as an awareness campaign in 2012 by organized food and farmworkers leveraging end-of-year holidays around the need to raise the minimum wage and improve working conditions from farm to table, the campaign has become more relevant than ever in 2021.
Too often, workers' calls for justice and all of our calls for a fair food system are met with false solutions.
Corporate greed has long been at the root of human rights violations in workplaces along the supply chain. Throughout the COVID-19 pandemic, big food companies that control much of the U.S. food supply and its infrastructure have posted record profits. Meanwhile, food and farmworkers were deemed "essential"--even as they struggled to get basic protections and fair pay at work. What we have witnessed throughout the pandemic is nothing new. There's a long history of over-exploiting and under paying the people who do the vital, yet too often unseen, work that keeps grocery stores stocked with food. But there's an equally long history of resistance led by those same people.
So often in the grocery store, those stories of resistance are made invisible. What we know of the struggles for human rights and dignity gets boiled down to an ethical label on a bar of chocolate or a tub of yogurt, and a simple question, "buy this, or buy that?" Over the years, my organization, Fair World Project, has produced many resources to help answer and expand on that question. But as the stories of #FoodWorkersRising this International Food Workers Week remind us, there are so many more ways we can build towards a fairer food system too.
In our "For a Better World" podcast, I have the honor of speaking to worker organizers, as well as others working to transform the food system. Right now, in the dairy barns of upstate New York, there's a years-long struggle going on for safe working conditions and for dignity. Workers tending the cows whose milk goes to Chobani have been calling on the yogurt maker to meet with them and negotiate. Organizing with the Workers Center of Central New York, these workers have moved legislative mountains, winning historic protections for union organizing and wage protections that too many farmworkers nationwide lack.
Now is a critical time in their campaign for justice. Instead of meeting with workers, Chobani has gone its own way, working with Fair Trade USA to develop a "fair trade dairy" label--without the participation or support of the workers it claims to benefit. In the words of organizer Crispin Hernandez, "We've spoken with workers on several of the farms participating in this program and without fail they are all confused about the program--how it works, who's running it, what their rights and benefits are, and how to get more information. Meanwhile working conditions and housing issues have not changed. We haven't seen any benefit to workers."
Too often, workers' calls for justice and all of our calls for a fair food system are met with false solutions like this label that try to rebrand the exploitative status quo as ethical. But there is another way.
Throughout the fall, we have seen wave upon wave of national strikes and labor actions as workers at national brands like Nabisco, Kellogg's and Hello Fresh joined thousands of others to stand up for fair pay and better working conditions. When actor Danny DeVito tweeted "No Contract, No Snacks," he set an example for what we can all do, regardless of our jobs. Our power and our participation in the food system doesn't start and stop in the grocery aisle. This International Food Workers' Week, we can amplify the demands of worker-led campaigns who are sharing their calls for action at #FoodWorkersRising2021. Together, we can support a food system grounded in justice that nourishes us all.
Roughly 1,400 workers who make Corn Flakes, Froot Loops, Frosted Flakes, Raisin Bran, and Rice Krispies walked off the job on Tuesday to demand a fair contract, bringing all of the Kellogg Company's U.S. cereal factories to a halt in one of the nation's latest strikes.
Anthony Shelton, president of the Bakery, Confectionery, Tobacco Workers, and Grain Millers International Union (BCTGM), on Tuesday expressed the union's "unwavering solidarity with our courageous brothers and sisters who are on strike against the Kellogg Company" in four cities: Local 3G in Battle Creek, Michigan, where the company is headquartered; Local 50G in Omaha, Nebraska; Local 374G in Lancaster, Pennsylvania; and Local 252G in Memphis, Tennessee.
\u201cLocal to any of these?\nGo show your support! \ud83d\udce2\ud83e\udea7\ud83c\udf55\n#KelloggStrike\u201d— BCTGM International (@BCTGM International) 1633459898
"For more than a year throughout the Covid-19 pandemic, Kellogg workers around the country have been working long, hard hours, day in and day out, to produce Kellogg ready-to-eat cereals for American families," Shelton said in a statement.
"The company continues to threaten to send additional jobs to Mexico if workers do not accept outrageous proposals that take away protections that workers have had for decades."
Daniel Osborn, president of Local 50G in Omaha, told the Associated Press that as the coronavirus knocked people out of work, remaining employees were often forced to put in 12-hour shifts, seven days a week.
"Kellogg's response to these loyal, hardworking employees," Shelton said, "has been to demand these workers give up quality healthcare, retirement benefits, and holiday and vacation pay."
According to Shelton, "The company continues to threaten to send additional jobs to Mexico if workers do not accept outrageous proposals that take away protections that workers have had for decades."
Last month, the Kellogg Company announced its plan to slash more than 200 jobs at its Battle Creek plant over the next two years.
\u201cAn issue that hasn't been noted in Kellogg's strike coverage so far, the company announced just a few weeks ago plans to cut 212 jobs at the Battle Creek, Michigan facility. https://t.co/rGaoEyLC1k\u201d— Michael Sainato (@Michael Sainato) 1633529669
Kellogg is also trying to institute a two-tier employment system in which "new hires will make less money, have higher health insurance payments, and will not earn a pension," according to the union, which characterized the company's proposal as a divide-and-conquer strategy that asks "the current workforce to sell out the next generation of Kellogg workers."
"Kellogg is making these demands," Shelton continued, "as they rake in record profits, without regard for the well-being of the hardworking men and women who make the products that have created the company's massive profits."
Shelton added that BCTGM is "proud of our Kellogg members for taking a strong stand against this company's greed and we will support them for as long as it takes to force Kellogg to negotiate a fair contract that rewards them for their hard work and dedication and protects the future of all Kellogg workers."
Citing Osborn, AP reported that the Kellogg Company, which said it is "implementing contingency plans," is expected to "try to bring non-union workers into the plants at some point this week to try to resume operations and maintain the supply of its products."
While BCTGM has not officially called for a boycott, a union spokesperson reportedly toldHuffPost labor reporter Dave Jamieson that "supporters and consumers could certainly support the Kellogg workers and their fight for a fair contract by choosing NOT to buy Kellogg cereals while the strike is ongoing."
On Twitter, the union shared a link where supporters can contribute to strike funds.
\u201cKellogg Locals are still working on establishing their strike funds. At the moment we have 2 of the four linked here: https://t.co/IqPUwHAtS5\n\nWill update as others go up!\n\n#KelloggStrike #1u\u201d— BCTGM International (@BCTGM International) 1633482329
The strike against Kellogg started just one day after nearly 99% of the International Alliance of Theatrical Stage Employees (IATSE), a 60,000-member union of film and television production crews, voted to go on strike if studios don't agree to a fair deal for the industry's lowest-paid workers.
Both actions could be early signs of a potential surge in worker organizing, as AFL-CIO president Liz Shuler noted.
\u201c\u2022 2,000 @CWADistrict1 hospital workers\n\u2022 1,000 @MineWorkers at Warrior Met\n\u2022 1,400 @BCTGM Kellogg workers\n\nAnd hundreds\u2014if not thousands\u2014more working people across the country who are stepping up for the respect & dignity they deserve. #Striketober #1u\nhttps://t.co/ionrmSBEwr\u201d— Liz Shuler (@Liz Shuler) 1633456486
The Guardianreported last week that "tens of thousands of workers around the U.S. could go on strike in the coming weeks in what would be the largest wave of labor unrest since a series of teacher strikes in 2018 and 2019, which won major victories and gave the American labor movement a significant boost."
Kellogg's workers aren't the first BCTGM members to strike during the pandemic.
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In July, aound 600 workers at a Frito-Lay plant in Topeka, Kansas walked off the job to fight against forced overtime hours, low pay, and other conditions that BCTGM Local 218 members deemed unacceptable.
In August, hundreds of BCTGM members working at Nabisco plants in multiple states went on strike to demand better working conditions and to protest the foreign outsourcing plans of Mondelez International, the snack maker's parent company.
Both strikes ended with workers ratifying new collective bargaining agreements.