OLYMPIA — Jan. 17,2025 —Tammie Hetrick, president and CEO of the Washington Food Industry Association (WFIA), said today’s Federal Trade Commission (FTC) lawsuit alleging illegal price discrimination by PepsiCo, Inc. (Pepsi), underscores the need for the federal government to enforce antitrust laws under the Robinson-Patman Act (RPA).

The FTC lawsuit alleges that Pepsi’s practices included making promotional payments to a large, dominant retail chain, but not to independent grocery or convenience stores. Pepsi is the second-largest food company in the world.

“The FTC’s lawsuit against Pepsi could create a pivotal moment in the ongoing battle against anticompetitive retail practices,” said Hetrick. “Small, independent grocers are at the center of a perfect storm of record inflation, labor shortages, skyrocketing energy costs, and a purchasing power imbalance that threatens their very livelihood,” she added.

“Anticompetitive practices used by big national chains hit smaller retailers the hardest. I hope this is just the beginning of the FTC’s efforts to reign in anticompetitive behaviors using the RPA. This case would help level the playing field for smaller retailers who are forced to purchase products at higher prices than the largest retailers and retail chains,” said Hetrick.    

“Independent grocers are facing unsustainable conditions. In some communities, a family grocer may be the only grocery store option for miles. And when it comes right down to it, many of these smaller stores will eventually just close their doors or sell to a big competitor that does not have a connection with the local community,” said Hetrick.

Independent grocers in Washington state routinely average between a 1% and 2% profit margin, Hetrick said.

“Our members are the backbone of so many communities in Washington state,” she added. “We can’t afford to watch independent grocers get squeezed out, because in many corners of the state, when they’re gone, there’s no one willing to take their place.”