Search results: walmart

I can hardly believe this, and had to laugh when I read all the articles last week about how worried the food industry is about the new obesity drugs.

Imagine: if the drugs really do reduce appetite and interest in food—horror of horrors—people might eat less.

Eating less, as I have pointed out repeatedly, is very bad for the food business.

In Food Politics, I explained how the fundamental purpose of  food companies is to get you to eat more food, not less.

Beginning in the early 1980s, food companies did a better job of creating an “eat more” food environment.

People responded to this environment by eating more calories—lots more—and way more than enough to account for the rising prevalence of overweight and obesity.  Evidence?   See my book with Mal Nesheim, Why Calories Count: From Science to Politics.

When I am at my most cynical, I ask this question: What industry might benefit if people ate more healthfully?

I am hard pressed to think of any—certainly not the food, diet, or diet-drug industries (Novo Nordisk, maker of the semaglutide drug, Wegovy, now makes more than the gross domestic product of Denmark).

The only exception I can think of is not-for-profit HMO’s like Kaiser Permanente, which do better if their patients are healthier (and have no excuse for not paying their workers better).

Anything that helps people eat less and more healthfully is bad news for the food industry, and especially for companies making ultra-processed junk food.

No wonder companies are worried.

Here’s my collection from last week (with thanks to Lisa Young and Michele Simon for making sure I saw these articles):

• Wall Street Journal: America’s Food Giants Confront the Ozempic Era
• Yahoo Finance: Ozempic Is Making People Buy Less Food, Walmart Says
• Bloomberg News: If Ozempic Leads People to Eat Less, Maker of Cheez-It Will Be Ready
• Yahoo Finance: Snack-maker Conagra may tweak portions as weight-loss drugs alter appetites
• Washington Post:  Food, clothing, airlines: Ozempic is coming for these industries and more
• Yahoo Finance: Surge in obesity drugs like Ozempic has pummeled big food stocks. Is it time to eat them up?
• Food Fix:  Why Ozempic makes Wall Street woozy
• PepsiCo: PepsiCo monitoring impact of weight loss drugs, but says early impact on sales is ‘negligible’

My distant* but dearly loved cousin, Michael Kravit, sent this from Taiwan.  Seems like a really good idea.

I’m working on a book chapter on snack foods (for an updated edition of What to Eat) and I counted the number of feet of shelf space devoted to snacks—chips, crackers, cookies, toaster pastries, candies, etc—in the Ithaca Walmart: 4,100 linear feet, or 0.8 mile.

OK.  Some of them are nuts or dried fruit.  But the great majority?  Mostly ultra-processed and highly profitable to their makers.

*Definition of a distant cousin: he’s the grandson of my first cousin, which I think makes him twice removed.

Really, I can’t make this stuff up.

Thanks to Jim Krieger of HealthyFoodAmerica.org for sending me to Food Navigator-USA: Post launches the first-ever cereal designed to promote sleep.

A cereal meant to be consumed at bedtime?  I wanted it for my cereal box collection, and there hasn’t been a good one like this for a long time since the FDA started discouraging ridiculous health claims.  I went straight to the Ithaca Walmart and scored a box.

Sweet Dreams, the box tells you, is “part of a healthy sleep routine.”

The front-of-package claims:

• Made with whole grains
• Supports natural melatonin production with zinc, folic acid, and B vitamins
• Excellent source of Vitamin E for neuroprotection

The back-of-package claims:

• Sleep…We want to help you enjoy it.  With delicious wholesome ingredients, curated vitamins and minerals, and a specially formulated night-time herbal blend, our dreamy cereal is part of a healthy sleep routine.
• Made with a night-time herbal blend containing a touch of lavender and chamomile

I looked up the website:

For 130 million American adults, a good night’s sleep is elusive. You deserve good sleep, and we want to help you enjoy it! So, we made Sweet Dreams cereal, the first ready-to-eat cereal specially designed to support a good sleep routine and a fresh start to the next day…Available in Blueberry Midnight and Honey Moonglow flavors, make Sweet Dreams cereal a part of your bedtime routine and enable a better sleep cycle while satisfying those nighttime food cravings.

Comment:

I hardly know where to begin: “curated vitamins and minerals”?  “Supports natural melatonin production”?

This last is a structure/function claim like those for supplements.  It requires only the barest hint of scientific substantiation.

Reader, I ate it.

The cereal is crunchy, with occasionally visible almonds, but is cloyingly sweet (to my taste): A cup of cereal has nearly a tablespoon (13 grams) of added sugar– 24% of a day’s total sugar allowance.

No wonder it’s so sweet.  Sugars appear seven times on the ingredient list.

Whole Grain Wheat, Rice, Cane Sugar, Almonds, Whole Grain Rolled Oats, Canola and/or Soybean Oil, Flavor Clusters (Sugar, Corn Syrup, Degermed Corn, Palm Oil, Natural Flavor, Cocoa (processed with alkali)(for color), Blueberry and Carrot Concentrates (for color)), Salt, Honey, Corn Syrup, Barley Malt Extract, Molasses, Tocopherols (Vitamin E) to maintain freshness, Natural Flavor.

Post must be trying to sell more cereal.  Eat cereal at night?  Well, if you have sleep problems I suppose you can give it a try.

I ate this cereal in the morning.  It did not make me feel sleepy.

*******

For 30% off, go to www.ucpress.edu/9780520384156.  Use code 21W2240 at checkout.

TODAY on Zoom: 11:00 a.m.  Register here.

*******

I’m always fascinated by the food industry’s rationale for massive layoffs.

PepsiCo, for example.

It is planning to lay off hundreds of workers (see Washington Post announcement, and Food Navigator discussion).

The Wall Street Journal report’s Pepsi’s rationale:
PepsiCo Inc. PEP -0.37% is laying off workers at the headquarters of its North American snacks and beverages divisions, a signal that corporate belt-tightening is extending beyond tech and media, according to people familiar with the matter and documents reviewed by The Wall Street Journal…In a memo sent to staff that was viewed by the Journal, PepsiCo told employees that the layoffs were intended “to simplify the organization so we can operate more efficiently.”

PepsiCo reported a 12% increase in revenues last year.

Its global revenues came close to $80 billion in 2021.

PepsiCo Beverages North America’s operating profit has recently decreased by 10%,

primarily reflecting certain operating cost increases, including incremental transportation costs, a 37-percentage-point impact of higher commodity costs and higher advertising and marketing expenses. These impacts were partially offset by net revenue growth and productivity savings.

It paid its CEO $25,506,607 in 2021.  This is 500 times more than the median employee salary of $52,000.

That’s how the system works.

********

For 30% off, go to www.ucpress.edu/9780520384156.  Use code 21W2240 at checkout.

The headline says it all: Kroger to acquire Albertsons for $24.6bn solidifying its position as #2 grocery retailer with 11.8% market share.

This will make Kroger second only to Walmart’s 17.1% share.

Take a look at what this means.

The Kroger Co. Family of Stores

• Baker’s
• City Market
• Dillons
• Food 4 Less
• Foods Co
• Fred Meyer
• Fry’s
• Gerbes
• Jay C Food Store
• King Soopers
• Kroger
• Mariano’s
• Metro Market
• Pay-Less Super Markets
• Pick’n Save
• QFC
• Ralphs
• Ruler
• Smith’s Food and Drug

Now add in the Albertsons Companies’ Family of Stores

• Albertsons
• Safeway
• Vons
• Jewel-Osco
• Shaw’s
• Acme
• Tom Thumb
• Randalls,
• United Supermarkets
• Pavilions
• Star Market
• Haggen, Carrs
• Kings Food Markets
• Balducci’s Food Lovers Market

All of these will now be Kroger’s.  Monopoly capitalism, anyone?

Kroger’s press release says:

Kroger has a long track record of lowering prices, improving the customer experience and investing in its associates and communities. Consistent with prior transactions, Kroger plans to invest in lowering prices for customers and expects to reinvest approximately half a billion dollars of cost savings from synergies to reduce prices for customers. An incremental $1.3 billion will also be invested into Albertsons Cos. stores to enhance the customer experience. Kroger will also build on its recent investments in associate wages, training and benefits. Kroger has invested an incremental $1.2 billion in associate compensation and benefits since 2018. The combined company expects to invest $1 billion to continue raising associate wages and comprehensive benefits after close.

Who will hold Kroger accountable for these promises?

It needs to be held accountable.

***********

For 30% off, go to www.ucpress.edu/9780520384156.  Use code 21W2240 at checkout.

I subscribe to the British-based newsletter, Food Navigator.  It occasionally publishes roundups of articles on specific topics.  Here’s a sample of articles about current happenings in the meat industry.

• Tyson VP Exclusive Part I: Strong APAC flexitarian consumer base makes alternative protein products ‘very complementary’ Tyson’s plant-based innovations are complementary and not competitors to its existing traditional meat products, claims its Vice President Commercial for APAC in the first part of our exclusive interview…. Read more
• Study linking deaths to red meat ‘appears implausible’ and ‘lacks transparency’: The World Cancer Research Fund International is accusing the GBD 2019 study of ignoring the nutritional value of red meat and lacking rationale. … Read more
• Plant-based brands accused of creating ‘a category failure, maybe one of the biggest in food industry history’: There’s a lot of buzz about plant-based innovation. But according to Julian Mellentin, of consultancy New Nutrition Business, much of this noise comes down to the ‘echo chamber’ created by media, consultants and the investment community. Is plant-based really resonating with consumers? And if not, why?… Read more
• ‘Highly’ marbled cell-based beef bites developed with 3D printing tech Steakholder Foods has coined the ‘first-of-its kind’ and ‘richly marbled’ structured meat product Omakase Beef Morsels…. Read more
• What’s meat’s beef with vegan burgers? The case against ‘meaty’ names for plant-based substitutes For the most part, the meat industry is against the use of ‘meaty’ denominations for plant-based alternatives. What’s the sector’s beef with ‘vegan burgers’ and ‘plant-based sausages’? FoodNavigator investigates…. Read more
• Walmart acquires minority stake in Sustainable Beef:  In a bid to provide its customers with more “high-quality, affordable” beef, Walmart has acquired a minority stake in Nebraska-based Sustainable Beef…. Read more
• Can monkeypox virus be transmitted via food? Experts aren’t ruling it out… Risk of contracting monkeypox through food cannot be completely ruled out, according to experts at the European Centre for Disease Prevention and Control and French food agency ANSES…. Read more

************

Coming soon!  My memoir, October 4.

For 30% off, go to www.ucpress.edu/9780520384156.  Use code 21W2240 at checkout.

This one comes from Great Britain.

Whew.  I was worried about potatoes.  What a relief!

I thought it was a spoof, but it’s not.  ASDA (formerly Associated Dairies) is a Walmart subsidiary in Great Britain.

It offers other products labeled the same way.   In case you were worried.

The Guardian and Food and Water Watch have produced a lengthy, interactive, and fact-filled investigative report, essential reading for anyone interested in how power is distributed in the US food system.

The report is a about how consolidation has increased the power of every segment of the food industry, and how that power imbalance threatens workers, consumers, and American democracy.

The size, power and profits of these mega companies have expanded thanks to political lobbying and weak regulation which enabled a wave of unchecked mergers and acquisitions. This matters because the size and influence of these mega-companies enables them to largely dictate what America’s 2 million farmers grow and how much they are paid, as well as what consumers eat and how much our groceries cost.

Here are some of the facts (and the Guardian summarizes others in an article on “The Illusion of Choice“):

• At least half of the 10 lowest-paid jobs are in the food industry. Farms and meat processing plants are among the most dangerous and exploitative workplaces in the country.
• Overall, only 15 cents of every dollar we spend in the supermarket goes to farmers. The rest goes to processing and marketing our food.
• Four firms or fewer controlled at least 50% of the market for 79% of the groceries. For almost a third of shopping items, the top firms controlled at least 75% of the market share.
• During the 2020 election cycle, the food industry spent $175m on political contributions, including lobbying by PACs and individuals and other efforts.
• Until the 1990s, most people shopped in local or regional grocery stores. Now, just four companies – Walmart, Costco, Kroger and Ahold Delhaize – control 65% of the retail market.
• Farmers received $424.4bn in subsidies between 1995 and 2020, of which 49% were for just three crops: corn, wheat and soybeans, according to the Environmental Working Group. Corn subsidies are the largest by a long way – $116.6bn – accounting for 27% of the total.
• At least half of the 10 lowest-paid jobs in the US are in the food industry, and they rely disproportionately on federal benefits. Walmart and McDonald’s are among the top employers of beneficiaries of food stamps and Medicaid, according to a 2020 study by a non-partisan government watchdog.
• Here in the US, there were 1.6bn animals living on 25,000 factory farms in 2017 – a 14% rise in just five years. Together, these animals produced about 885bn pounds of manure annually – equivalent to the human sewage generated by residents of 30 New York Cities.