Harris Faces Industry Backlash Over 'Targeting Food Companies'... "We Are Struggling Too"

Harris: "Will Prevent Excessive Profiteering by Major Food Companies"
Announces Ban on Grocery Price Increases During Administration
Industry Backlash: "Labor and Raw Material Costs Have All Risen"

U.S. Democratic presidential candidate Vice President Kamala Harris has identified large food companies as a group profiteering through price hikes, and the Wall Street Journal (WSJ) reported on the 19th (local time) that the industry is pushing back against her pledge to strengthen related regulations. The industry argues that food inflation (food + inflation) is an unavoidable result of rising production costs.

According to WSJ, Vice President Harris announced on the 16th during her 100-day economic plan presentation that “we will prevent large corporations from unfairly exploiting consumers to make excessive profits” and promised to implement federal rules banning food price increases. The Federal Trade Commission (FTC) and state attorneys general will be empowered to investigate and punish food companies that violate these rules, and unfair mergers and acquisitions will also be cracked down on.

Harris’s move to “target food companies” comes as grocery prices have risen sharply over the past few years, thinning the wallets of the middle class. According to the U.S. Department of Agriculture, grocery prices rose 1% last month compared to the previous year, marking the lowest increase since 2019, but remain 27% higher than in 2019. WSJ reported, “Americans are now spending a significant portion of their income on food,” calling it “the highest level in decades.”

The large food industry has responded with objections. An executive from a food company told WSJ, “Nothing from raw materials to labor costs has not increased, and we need to maintain operating profits to develop new products.” Andy Harik, Vice President of the Food Marketing Institute (FMI), said, “I understand why they are upset about the sticky inflation shock,” but argued, “It is excessive to simply blame the food industry as the sole cause.”

However, small retailers seem to welcome Harris’s proposed rules banning food price increases, as reduced household consumption directly affects their livelihoods. The National Grocers Association stated, “Our members are suffering from inflation just like consumers,” and emphasized that “proposals to ban food price increases could be a solution to the problem.”

Some critics argue that as the presidential election approaches, the food industry has become a political scapegoat. WSJ analyzed, “Vice President Harris’s announcement of food company regulations appears to be an attempt to deflect related Republican attacks,” adding, “Although profit margins in the food industry are lower compared to other sectors, it can become a political target when Americans face economic hardship.”

Large food companies seem to be aware of this and have launched their own discount campaigns. Retailer Kroger plans to spend $1 billion to lower Albertsons’ prices once their merger is finalized. Food companies such as Kraft Heinz and Mondelez have also announced that they are slowing the pace of price increases, increasing discounts, or launching new products.

This content was produced with the assistance of AI translation services.