Connect with us

Alaska

The parent companies of 2 of Alaska’s grocers want to merge. Here’s what we know.

Published

on

The parent companies of 2 of Alaska’s grocers want to merge. Here’s what we know.



Shoppers come and go from Fred Meyer and Carrs stores that face each other across the Seward Highway in Midtown Anchorage on Thursday, Aug. 8, 2024. The parent companies of the competing businesses, Kroger and Albertsons, want to merge. (Matt Faubion/Alaska Public Media)

Last week, Alaska Congresswoman Mary Peltola joined 27 other D.C. lawmakers from 16 states in a legal brief backing a lawsuit by federal regulators to block a massive, national grocery store merger. 

Most Alaskans live in a community where a Fred Meyer store competes directly with a Carrs or a Safeway, so the proposal for one parent company to buy the other for $24.6 billion has a lot of Alaska consumers worried. 

Here’s what we know about where the proposal is now, after it was first announced in October of 2022. 

Advertisement

What’s at stake? 

If you take what the companies are saying in good faith, not much. They’ve made sweeping promises about the good things that will happen and the bad things that won’t if Kroger, which owns Fred Meyer, is allowed to buy Albertsons, which owns Safeway and Carrs. The companies say investors, customers, workers and communities are all supposed to benefit. 

“We are confident our transaction with the proposed divestitures will mean lower prices and more choices for customers,” Kroger CEO Rodney McMullen said in a video about the proposed merger. “It will mean more opportunities for retail associates to grow their career while we secure the future of good paying union jobs.”

Here are some of the specific promises Kroger and Albertsons have made: 

  • No store closures
  • No pharmacy closures
  • No front-line job losses with protection for worker pay and benefits
  • A $500 million investment in reducing prices
  • A $1 billion investment in employee benefits
  • A $1.3 billion investment to improve Albertsons stores

Kroger points to its 20-year track record that includes lowering its profit margins to keep prices down amid past acquisitions.

How can all of these promises be possible? 

The idea is if Kroger and Albertsons merge, they’ll be in better shape to compete with even bigger retailers, like Costco and Walmart, as well as growing competitors, like dollar stores that now sell groceries and even Amazon. Bigger scale means bigger efficiencies, and that’s where the upside is supposed to come from.

Of course, most Alaskans live in communities where Fred Meyer competes with Carrs or Safeway. Specifically, that’s Anchorage, Eagle River, Palmer, Wasilla, Fairbanks, Juneau and Soldotna.

Advertisement

Federal regulators are wary of mergers because they can be anticompetitive, concentrating too much market power and hurting regular shoppers. To try to win regulators’ approval, Kroger and Albertsons say they’re prepared to sell off all 15 of the Carrs and Safeway stores in those Alaska communities, plus three more in Girdwood, Kenai and North Pole, to a company called C&S Wholesale Grocers based in New Hampshire. 

The Safeways in Seward, Valdez, Kodiak, Ketchikan, Nome and Unalaska are not on the divestment list and would remain with the merged company.

Nationally, Kroger and Albertsons plan to sell a total of 579 stores, plus six distribution centers and a dairy plant, to C&S. 

Again, McMullen says these divested stores won’t close, because C&S is committed to running them as they are today. 

Albertsons CEO Vivek Sankoran says C&S will make the landscape more competitive. 

Advertisement

“Their deep industry knowledge and experience gives us great confidence in their ability to become even fiercer competitors moving forward,” Sankoran said in the video. 

C&S CEO Eric Winn also says his company is playing the long game.

“We are confident this expanded divestiture package will provide the stores, supporting assets and expert operators needed to ensure these stores continue to successfully serve their communities for many generations to come,” Winn said in an April press release.

The United Food and Commercial Workers Local 555, which represents 30,000 grocery store workers in Oregon, Idaho and Washington, came out in support of the merger in February. However, the parent union, which represents 1.2 million workers, voted last year to oppose the merger. Other UFCW locals, including Alaska’s, also oppose the merger. 

So what’s the problem? Why do people oppose the merge?

Basically, opponents just don’t believe the companies, and there isn’t anything in place to hold them to their promises. 

Advertisement

In Alaska, the opponents include Democratic Congresswoman Mary Peltola, 24 state lawmakers, the grocery store workers’ union and lots of regular Alaskans.

“It’s a huge issue for Alaskans that resonates. It’s not a political issue, it’s a pocketbook issue,” said Veri di Suvero, executive director of the Alaska Public Interest Research Group, a statewide consumer advocacy nonprofit that also opposes the merger. “Whether or not it’s in good faith, about these spinoffs, we’ve seen over and over again that they don’t work.”

Di Suvero points back to 1999, when Safeway bought out Carrs. AKPIRG and Alaska’s attorney general got involved, and they worked out a deal to sell off seven stores to let the merger go through.

Six of those stores became Alaska Marketplace grocery stores. They all closed within about a year. 

The seventh, at the University Center mall in Midtown Anchorage, survived and became a different grocery store, Natural Pantry, which eventually outgrew the space and built its current, standalone location off 36th Avenue.

Advertisement

Fast forward to 2015, and Safeway got swallowed up by Albertsons. Federal regulators approved that deal after the companies agreed to divest 168 stores. 146 went to a small Washington grocery retailer called Haggen. 

Haggen wasn’t successful, either. Within a year, Haggen sued Albertsons and accused it of sabotaging stores it bought. It got sued back by Albertsons and filed for bankruptcy. In the ensuing firesale, Albertsons ended up buying back many of its divested stores, and ultimately what remained of Haggen itself. 

Di Suvero is also concerned about how unique Alaska’s supply chain is, particularly its heavy dependence on a single port. Di Suvero and other opponents question if C&S has the expertise and wherewithal to step in and run its new grocery stores successfully.

So critics think C&S is setting itself up for failure, like Haggen?

Yes.

C&S isn’t a national player in the world of retail groceries. It owns the Piggly Wiggly brand and runs some Piggly Wiggly stores directly, but most are independently owned and operated under a franchise license. It also runs 11 Grand Union markets.

Advertisement

But C&S is a big deal nationally in grocery wholesaling, supplying more than 7,500 supermarkets. Forbes says it’s an industry leader in supply chain innovation, the largest wholesale grocery supply company in the country and the eighth biggest privately held company in the country. So C&S is in a totally different league from Haggen. 

That said, the Federal Trade Commission says C&S doesn’t have its own store brand product lines, loyalty programs or e-commerce platforms it needs to successfully compete. 

Does Alaska figure prominently into the overall merger? 

No. 

Kroger and Albertsons combined have 36 stores in the state. That’s 11 Fred Meyers, and 24 Carrs or Safeways plus Crow Creek Mercantile in Girdwood. Across the country, they have about 5,000.

Advertisement

And unlike in the Safeway-Carrs merger in 1999, the governor’s office has been hands off. Gov. Mike Dunleavy has not weighed in. The state Department of Law, which has its own consumer protection unit, says it’s monitoring the merger and the Federal Trade Commission’s legal fight to stop it. 

Outside of Alaska, eight states and the District of Columbia have joined the FTC’s lawsuit in federal court in Oregon.

And the attorneys general of Colorado and Washington have their own similar lawsuits. 

What happens if the merger gets shot down? 

There’s a lot invested in this merger. A reporter with WCPO in Cincinnati, where Kroger is headquartered, dug through financial filings and found that through March, the two parent companies had already spent $864 million in merger-related expenses. 

WCPO also found that Kroger had agreed to pay Albertsons $600 million if the merger fails. 

Advertisement

So that’s a big incentive for Kroger to appeal if these legal fights don’t go its way. 

So what’s next?

The legal stuff. 

Hearings in the FTC case at the U.S. District Court of Oregon begin Aug. 26. This case is important, but won’t necessarily make or break the merger. The judge there is supposed to rule on whether or not to pause the merger, while more substantive arguments go before an administrative law judge in Washington, D.C. 

The trial in the Washington state court is scheduled to begin Sept. 16, and, separately, a Colorado state judge last month imposed his own order to pause the merger, pending a legal challenge there. That trial is scheduled to begin Sept. 30. 


Advertisement
a portrait of a man outside

Jeremy Hsieh covers Anchorage with an emphasis on housing, homelessness, infrastructure and development. Reach him atjhsieh@alaskapublic.orgor 907-550-8428. Read more about Jeremyhere.





Source link

Alaska

Alaska Sees Coldest December In Years | Weather.com

Published

on

Alaska Sees Coldest December In Years | Weather.com


undefined

Play

2 Feet Of Snow Traps Drivers In Michigan

Do you think that Alaska is cold during winter? Of course it is! However, the type of cold the state is experiencing right now if unprecedented. How about having consecutive days of temperatures colder than 40 degrees below zero!

This is true for much of the Alaskan interior, particularly near Fairbanks and in between the Alaska and Brooks mountain ranges.

Over the last four days in Fairbanks, temperatures have struggled to reach 40 degrees below zero, with organizers in Fairbanks even postponing their annual New Year’s Eve fireworks show due to the extreme cold.

The temperature in the final few minutes of 2025 in Fairbanks was 43 degrees below zero.

In other words, conditions are unbearably and dangerously cold, even by local standards in Central Alaska.

Advertisement

In Chicken, Alaska, located near the Canadian Border, temperatures dropped as low as 62 degrees below zero! Numerous other locations in the eastern Alaskan Interior have seen temperatures between 50 and 60 degrees below zero.

On top of bringing dangerously cold minimum temperatures, this most recent cold snap has also been more prolonged than usual.

Temperatures in much of Alaska have been largely colder than usual since roughly December 5th, 2025

Some regions in eastern Alaska and the neighboring Yukon Territory in Canada have seen combined December temperatures up to 30 degrees below the climatological average.

For reference, the average December temperature in Fairbanks from 1904 to 2025 is 22 degrees below zero with much of central Alaska having similarly cold December temperatures on average. The city has seen a temperature departure of 18.5 degrees below average for December 2025, ranking as the 8th coldest December on record.

Advertisement

This means that much of east-central Alaska has been stuck between 40 and 50 degrees below for nearly an entire month!

While many factors affect the severity of winters in Alaska, one notable statistic is the unusually high snowfall in portions of Alaska this past December. Fairbanks saw more than double its usual snowfall for the month of December.

Juneau, Alaska’s capital, located in far-southeast Alaska, has seen nearly its entire annual snowfall in December alone, at over 80 inches.

Snowfall promotes cold temperatures by reflecting light from the sun back to space. In Alaska, there is already very little sunlight during the winter due to its positioning on and near the Arctic Circle.

What little sunlight snow-covered portions of Alaska have seen has been quickly reflected back to space by the unusually heavy snowpack.

Advertisement

In Central Alaska, located between the Alaska and Brooks ranges, the heavy snowpack, lack of sunlight, and lack of transport of air from warmer locations have led to the development of an arctic high pressure system, leading to stable conditions and light winds. These conditions cause the land to rapidly lose heat, becoming even colder. With this arctic high pressure is in place, central Alaska has remained cold. However, a slight breakdown in the strength of the high will allow temperatures to warm somewhat (see forecast for next 3 days below).

Fortunately, this pattern will break down as we approach mid-January. A more active storm track from the Pacific is poised to bring wetter and warmer conditions to portions of Alaska, especially towards the middle to second half of the month. While this wetter pattern means snow for most, temperatures will improve, being far more bearable than the current temperatures in the 40 to 50 degree below zero range.

Hayden Marshall is a meteorologist intern and First-Year-Master’s Student at the Georgia Institute of Technology. He has been following weather content over the past three years as a Storm Spotter and weather enthusiast. He can be found on Instagram and Linkedin.





Source link

Continue Reading

Alaska

Alaska’s delegation responds to situation in Venezuela

Published

on

Alaska’s delegation responds to situation in Venezuela


ANCHORAGE, Alaska (KTUU) – Officials say Venezuela’s president, Nicolás Maduro, and his wife are in New York Saturday night after they were captured in a U.S. military operation that came amid strikes in the country’s capital.

Alaska’s delegation has responded to the situation.

Senator Dan Sullivan commented on the situation saying, “In the aftermath of last night’s remarkable operation, America and the world are safer.”

He continued, saying in-part, “Maduro was an illegitimate, indicted dictator who has been leading a vicious, violent narco-terrorist enterprise in our Hemisphere that was responsible for the deaths of tens of thousands of Americans. He will now face American justice. The interim Venezuelan government must now decide that it is in their country’s and people’s interest to cooperate with the United States and reject Maduro’s legacy of violence and narco-terrorism.”

Advertisement

Senator Lisa Murkowski said the U.S. does not recognize Maduro as the legitimate leader of Venezuela.

She said in-part, “While I am hopeful that this morning’s actions have made the world a safer place, the manner in which the United States conducts military operations, as well as the authority under which these operations take place, is important. When the Senate returns to Washington next week, Congress has been informed that we will receive additional briefings from the administration on the scope, objectives, and legal basis for these operations.”

Representative Nick Begich posted his statement on Facebook. He called the situation a “lawful arrest” and said it was “a powerful and flawless execution of American power and capability.”

Begich continued, saying in-part, “Stability and accountability in the Western Hemisphere are core U.S. national interests. For far too long, criminal networks operating in our own hemisphere have exploited weak governance and corruption. The result has been poisoned streets, overwhelmed borders, and countless American lives lost to fentanyl and other illicit drugs.”

See a spelling or grammar error? Report it to web@ktuu.com

Advertisement



Source link

Continue Reading

Alaska

Opinion: Before Alaska becomes an AI data farm, be sure to read the fine print

Published

on

Opinion: Before Alaska becomes an AI data farm, be sure to read the fine print


The Stargate artificial intelligence data center complex in Abilene, Texas. (AP)

Artificial intelligence is driving a revolution in the economy and culture of the United States and other countries. Alaska is being pitched as the next frontier for one of the most energy-intensive industries: data centers, with their primary purpose of advancing AI, socially disruptive to a degree as yet unknown.

Gov. Mike Dunleavy, the state’s biggest promoter, has invited more than a dozen high-tech firms, including affiliates of Microsoft, Facebook and Amazon, to establish “data farms” in Alaska. He has personally toured executives around potential sites in the Anchorage and Fairbanks areas. The Alaska Legislature has been a bit more circumspect, though its House Concurrent Resolution 3 (HCR 3) states that “the development and use of artificial intelligence and the establishment of data centers in the state could stimulate economic growth, create job opportunities and position the state as a leader in technological innovation.” True, however, the resolution makes no mention of drawbacks stemming from data center development.

The Northern Alaska Environmental Center (NAEC), based in Fairbanks, is examining the known and potential benefits, costs and risks of data center growth in the state. It urges a well-informed, unhurried, transparent and cautious approach.

First, though, what are data centers? They are facilities that house the servers, storage, networking and other computing infrastructure needed to support AI and other digital services, along with their associated electrical and cooling infrastructure.

Advertisement

Generally speaking, there are two categories of data centers. One is the massive hyperscale facility, typically operating at multi-megawatt scale and designed to scale much higher. An example is the proposed Far North Digital (FND) Prudhoe Bay Data Center. It would start with a capacity of 120 megawatts with “significant expansion potential.” Natural gas would power it.

The other kind is the micro or microgrid data center. A good example is Cordova’s Greensparc Corp/Cordova Electric Cooperative 150-kilowatt facility. It is powered by 100% renewable energy from the nearby hydroelectric plant. We concur with the University of Alaska Fairbanks’ Alaska Center for Energy and Power (ACEP) analysis that contends that such smaller and sustainable data centers, sometimes integrated into existing microgrids, are more feasible for Alaska, particularly in underserved or remote communities.

The main problem with data centers is their high to huge energy demands, especially hyperscale ones that can consume as much electricity as 100,000 homes. Cooling can account for about 40% of a facility’s energy use, though it varies. While Alaska’s cold climate is an environmental advantage, reducing the need for energy-intensive mechanical cooling systems, cooling still requires a lot of water. The NAEC advocates that any new data centers be required to minimize use and thermal pollution of waters and reuse waste heat for local heating.

The Railbelt grid already faces constraints and expensive upgrade needs. The NAEC believes that if new data centers are developed, regulatory safeguards must be in place to ensure they do not exacerbate grid shortages and raise household electricity costs.

Most electricity powering data centers still comes from fossil fuels, even as operators sign renewable contracts and add clean generation. Building fossil fuel-powered data centers would lock in high-emissions infrastructure for decades, contradicting global decarbonization efforts. NAEC suggests that any new data center be required to build or contract for an equivalent amount of clean energy generation (wind, solar, hydro or geothermal) to match its consumption.

Advertisement

There are many other concerns that need to be addressed when considering data centers and AI development. One is the problem of electronic waste, or e-waste. Needed upgrades to data centers result in e-waste, which contains hazardous materials. Given Alaska’s remote potential sites and limited recycling infrastructure, the cost of appropriately dealing with e-waste should be factored into data center decisions.

In their haste to recruit data centers, several states have granted substantial tax abatements and subsidies, often with limited public benefit. Alaska must learn from the mistakes made elsewhere. Before considering approval of any new data centers, legislation should be in place that ensures that the corporations that will profit do not get discounted power rates or tax breaks and pass additional costs to ratepayers, including costs for needed upgrades.

Yes, data centers provide some much-needed diversification to Alaska’s economy, but not much. They are highly capital intensive and employ many in the construction phase, but few for operation. Companies should be required to train and hire local residents to the degree practical.

Then there is the profound but scarcely recognized issue that transcends energy, economics and the environment. Data centers expand the compute available for increasingly capable AI systems. Some researchers and industry leaders argue this could accelerate progress toward AI that matches or exceeds human capabilities, along with new risks. Ultimately, the greatest cost of data centers and AI may be the changes wrought to our humanity and society, for which we are woefully unprepared.

Roger Kaye is a freelance writer based in Fairbanks and the author of “Last Great Wilderness: The Campaign to Establish the Arctic National Wildlife Refuge.” He sits on the Issues Committee of the Northern Alaska Environmental Center.

Advertisement

• • •

The Anchorage Daily News welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here.





Source link

Continue Reading
Advertisement

Trending