Consumers Take on Grocery Giants Amid Soaring Prices, Including a Boycott of Kellogg's
Updated: Mar 23
WCTU - The Federal Trade Commission's (FTC) investigation, "Feeding America in a Time of Crisis," has spotlighted how major grocery store chains leveraged pandemic-induced supply chain disruptions to significantly inflate their profit margins. This strategic pricing adjustment has left consumers grappling with persistently high costs for basic necessities.
The FTC's findings, released recently, underscore a stark disparity between rising grocery prices and the actual supply chain recovery, suggesting an opportunistic profit boost by retailers at the expense of the consumer. The report particularly notes a more than 6% increase in grocery retailers' revenues over total costs in 2021, which further escalated to a 7% increase in the first three quarters of 2023.
Parallel to the FTC's findings, a consumer-led boycott has emerged as a potent form of protest against Kellogg's, a company at the forefront of criticism for its pricing strategies during these economically challenging times. Utilizing platforms like TikTok, the boycott campaign, embodied by the hashtag #letthemeatcereal, aims to compel Kellogg's to lower its prices by encouraging consumers to opt for alternative or homemade cereal brands from April 1 to June 30, 2024. This movement has gained traction following Kellogg Co. CEO Gary Pilnick's controversial suggestion in a CNBC interview that families could mitigate food inflation by turning to cereal for dinner—a comment made amid a backdrop of a price hike of over 17% in Kellogg's products compared to the previous year.
Amplifying the call to action, TikToker @crystallakes477 passionately urged, "I really want this to be spread everywhere... even our mothers, fathers, spread this, let's get this going." This plea underscoring the collective frustration of many Americans
and the power of social media to galvanize widespread support for the boycott.
Adding a creative twist to the movement, a large trend of TikTokers are turning to DIY solutions, with many sharing tips on crafting and storing homemade cereal varieties; providing a nudge towards self-sufficiency and boycott participation.
The FTC's report and the ensuing consumer backlash highlight a broader critique of what has been termed "greedflation"—the notion that corporate profiteering is a significant driver of the current inflationary period, a theory gaining traction among economists and policymakers alike. While Kellogg faces direct action from consumers, the phenomenon appears to be part of a larger pattern of behavior among major food and beverage retailers. Reports suggest the boycott is already having an impact, with prices for Kellogg’s cereals dropping to as low as 99 cents on supermarket shelves, a change attributed to the growing consumer pushback, and all of this even prior to the proposed start date of the 'official' boycott, which is planned to begin on April 1st and go through the end of June.
As the boycott gains momentum, it reflects a larger frustration with sustained grocery inflation, which remains high due to a complex mix of factors, including labor shortages, supply chain disruptions, and environmental challenges. The situation has led to increased scrutiny of corporations like Kellogg, with plans already underway to target additional companies in the coming year. This consumer movement represents a pivotal moment in the ongoing dialogue about corporate responsibility, consumer power, and the future of food pricing in America. To read the full FTC Supply Chain Report that was recently released, click here.
