DOJ expands beef antitrust inquiry to Amazon, Walmart, others

8 major grocers face requests for 6 years of price, procurement and margin data

Shopper looks at meat products Beef for sale at a Walmart store in Burbank, Calif. (Patrick T. Fallon/Bloomberg)

Key Takeaways:Toggle View of Key Takeaways

  • The U.S. Justice Department expanded its meatpacking antitrust inquiry by seeking beef pricing data from eight major retailers.
  • Ground beef averaged $7.116 a pound in July, remaining near a record and contributing significantly to food inflation.
  • Retailers were asked to provide six years of purchasing, pricing, profit margin and market analysis data to investigators.

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The Justice Department expanded its antitrust inquiry of the meatpacking industry by demanding information on surging beef prices from eight major food retailers, including Amazon.com Inc., Costco Wholesale Corp. and Walmart Inc.

In a Sept. 1 social media post, DOJ said Associate Attorney General Stanley Woodward, the department’s No. 3 official, sent letters seeking the price data from Amazon, Costco, Walmart, Albertsons Cos., Kroger Co., the U.S. unit of Ahold Delhaize NV, Publix Super Markets Inc. and Aldi Inc.

In May, the Justice Department said it was examining potential antitrust violations in meatpacking. The agency normally conducts investigations privately, but President Donald Trump publicly requested the probe last year amid record beef prices. Woodward is overseeing antitrust enforcement at DOJ while the Senate considers Trump’s nominee for the role.

RELATED: Trump cuts tariffs on ground beef products to lower prices



Woodward, in letters dated July 14, asked the grocers to supply investigators with details about their beef purchasing and strategy, as well as retail pricing, profit margins and market analysis, for the past six years.

The grocers and the Justice Department didn’t immediately respond to requests for comment.

Beef prices have repeatedly topped records, making it one of the biggest drivers of food inflation. Ground beef averaged $7.116 a pound in July, plateauing slightly but remaining near an all-time high, according to the U.S. Bureau of Labor Statistics. Trump has tried to tamp down prices before the midterm elections in November, and most recently announced he would allow as much as 300,000 metric tons of imports at lower tariff rates over the next 90 days to boost supplies.

Walmart said in July that it would cut prices of seasonal products, including beef.

Amazon (No. 17), Costco (54), Walmart (1), Albertsons (48), Kroger (32), Ahold Delhaize (42) and Publix (58) all are on the Transport Topics Top 100 list of the largest private carriers in North America.

 

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