At a recent national conference for grocery co-op leaders, we heard about the Reagan-era policy shift that disadvantages Hunger Mountain Co-op, other co-ops, and independent grocers nationwide. It turns out that shopping at the Co-op is a way to fight back. See the full story, below. 

Cooler Heads Will Prevail: Dinner & Discussion Rescheduled to July 7 

The council hosts an annual Dinner & Discussion, and this year it is focused on envisioning the future of the Co-op. Unfortunately, we scheduled it in a building built for the past Vermont climate (with no air conditioning) on a night that turned out to be in the middle of a June heat wave. The event has been rescheduled for July 7; we’re looking forward to a comfortably cool evening (and crossing our fingers.) If you registered for the original date, you’re still registered. If you weren’t registered but want a part of the delicious meal (prepared by our own chefs!) and sparkling discussion, you can do so until Thursday, July 3 at the sign-up page. It’s in the Chapel of College Hall at the Greenway Institute (the former VCFA) in Montpelier; doors open at 4:30, and dinner begins at 5 pm. We hope to see many members there! 

To get the most out of the discussion, we encourage you to review the Co-op’s most recent Vision and Strategic Plan (2012) ahead of time. 

Co-op Connects on Saturday, July 19, 11 am to noon with the General Manager (GM) and one or two Council Members  

Join General Manager Mary Mullally and me (and likely another Council member) for Co-op Connects on Saturday, July 19 from 11 am to noon! We’ll have a table at the Co-op’s Summer Party.  

We’d love to chat with you about the past, present, or future of the Co-op – or anything else on your mind! Look for signs on where to find us. 

The Hidden Forces Behind Your Grocery Bill: How a 40-Year-Old Policy Shift Impacts Hunger Mountain Co-op 

A new era of fair competition could be on the horizon for community-rooted grocery stores, thanks to a growing movement to revive antitrust laws. In a recent keynote, Stacy Mitchell of the Institute for Local Self-Reliance traced the policy decisions that led to the consolidation of corporate power in the grocery sector—and highlighted the critical opportunity for co-ops to play a leading role in transforming the landscape. 

Mitchell spoke to participants at CCMA, an annual conference for food co-op board members and staff. Much of the following is from her talk. Understanding these forces helps us understand the challenges of running a local-oriented grocery store and advocate for our local producers and maintain affordable prices for our members.  

The Robinson-Patman Act, passed in 1936 during the Great Depression, was a direct response to the growing power of national chains like the supermarket A&P. A&P’s success wasn’t based on innovation or service, but on its ability to strong-arm suppliers. They demanded lower prices for themselves while simultaneously insisting those same suppliers charge higher prices to smaller competitors—effectively squeezing out local grocers. The Robinson-Patman Act bans this type of price discrimination, establishing safeguards to protect smaller businesses. 

For decades, the Act worked. The top four supermarket chains held around 20% of the grocery market in the 1940s—a percentage that remained remarkably stable for four decades. Independent grocers thrived, local economies flourished, and consumers had more choices. 

But that began to change in the 1980s. The Reagan-era Federal Trade Commission (FTC) quietly stopped enforcing the Act. This allowed large retailers like Walmart to gain immense power, leveraging their buying power to squeeze suppliers and undercut smaller competitors. 

Today, just four companies control roughly 60% of all grocery spending in the United States. This consolidation doesn’t just affect independent grocers; it also affects farmers and small food businesses. With fewer retailers to sell to, they have less negotiating power and are often forced to accept lower prices for their products. This ultimately reduces consumer choice; even though we may see many brands on the shelves, they are often owned by a handful of corporations. 

Fortunately, the tide is beginning to turn. The Federal Trade Commission, under Chair Lina Khan, began reinvigorating antitrust enforcement during the Biden administration. (The Trump FTC may, however, be reverting to the 40-year norm.) Renewed enforcement could help level the playing field for small farmers and vendors, ensuring they receive fair prices for their products.  

Some states are also stepping up, investigating and challenging anti-competitive practices or passing new anti-monopoly laws. Amelia Vath, spokesperson for the Vermont Attorney General’s Office, said the Attorney General had, since 2016, filed anti-trust litigation against drug manufacturers, Google, Apple, Amazon, and Live-Nation Ticketmaster. She added, “Our office is always investigating matters which are not public. Sometimes those investigations result in parties deciding not to complete a merger and/or to address the antitrust issues,” without litigation.  

Mitchell reached out to co-op leaders to join an independent business alliance, saying, “We really need your voice. Co-ops already model a better way, and you have a voice people trust.” 

Hunger Mountain Co-op also has tools to fight against these monopolistic practices. As members of the “co-op of co-ops” National Co+op Grocers (NCG), for example, we have collective bargaining power. While Amazon’s Whole Foods is UNFI’s largest customer, NCG is their second-largest; NCG has plenty of leverage in negotiating prices on our behalf. And by buying directly from so many farmers and other local vendors, we can pay them fair prices. 

By choosing to shop at Hunger Mountain Co-op, you’re not just buying groceries; you’re investing in a future where local businesses thrive, farmers are fairly compensated, and our community is strong. We are committed to supporting local food systems, providing fair prices for our products, and fostering a resilient community. 

The Wrap 

Late one night, a moth flew into the gas station operated by the Hanover Co-op and said to the cashier, “I’d like to buy some tofu.” The startled cashier said, “This is a gas station. We don’t sell tofu. Why’d you come in here, anyway?” The moth replied, “Because the light was on.” 

—Carl Etnier, Council President

Do you have any questions or comments about the council? Do you know any jokes even faintly related to food and/or co-ops? Please email them to me!