However, the situation has taken a bitter turn with recent revelations from the Federal Trade Commission (FTC) that a group of Albertsons executives, including CEO Vivek Sankaran, have been deleting text messages ordered by the court to be preserved. This misconduct has added a new layer of complexity to an already contentious trial.

The merger between Kroger and Albertsons, two powerful supermarket giants, has significant implications for the food industry. If approved, the combined entity would become the second-largest grocery chain in the United States, trailing only behind Walmart, with a significant 15% share of the national grocery business. The merger would employ over 700,000 people and generate more than $200 billion in revenue. Notable brands owned by Kroger and Albertsons include Safeway, Ralphs, Smith's, Harris Teeter, Dillons, Fred Meyer, Vons, Kings, Haggen, Tom Thumb, Star Market, Jewel-Osco, and Shaw's.

The timing of this merger is particularly crucial as consolidation trends reshape the industry. A decline of 30% in the number of grocery stores over the past few decades has already led to pricing concerns. Mega-chains not only leverage their size to secure better pricing for goods but also have the ability to increase prices faster than costs, contributing to inflation.

Experts predict that if the Kroger-Albertsons merger proceeds, it could trigger a domino effect within the industry. Other chains, such as Ahold Delhaize USA, Publix, H-E-B, Hy-Vee, Wakefern/ShopRite, Wegmans, Giant Eagle, Southeastern Grocers, WinCo Foods, Price Chopper/Market 32, Tops Friendly Markets, Raley's, and Bashas', may consider similar consolidation moves.

The potential consequences of this merger extend beyond market concentration. The FTC, supported by evidence including executive quotes and extensive city-specific impact assessments, argues that consumers, suppliers, and workers will bear the brunt of the resulting price increases and wage reductions. Currently, Kroger and Albertsons engage in aggressive competition, benchmarking prices against each other and offering promotional discounts to attract shoppers. They also closely monitor and enhance the quality of their respective products. Additionally, unions like the United Food and Commercial Workers benefit from the rivalry between the two chains when negotiating collective bargaining agreements.

The FTC's recent revelations of text message deletion by Albertsons executives have further complicated the trial. The court had ordered the preservation of all relevant documents, including text messages, but the FTC discovered that four out of eight executives failed to comply. The deleted text messages could potentially contain evidence related to pricing strategies and the impact of the merger on consumer costs.

The magnitude of this misconduct has drawn significant attention. CNBC's Jim Cramer, who has been critical of FTC Chair Lina Khan, doubts Kroger's chances of winning the trial. Furthermore, the FTC seeks an adverse inference, urging the judge to assume wrongdoing on the part of the defense. This could heavily influence the outcome of the trial in favor of the FTC's allegations.

Unions, such as the Teamsters and the United Food and Commercial Workers International Union, expressed their support for the FTC's challenge. Several politicians, including Katie Porter, Adam Schiff, Jackie Rosen, Dan Sullivan, Lisa Murkowski, Amy Klobuchar, Mike Lee, Ron Wyden, and Chris DeLuzio, have voiced concerns and opinions about the merger.

As the trial begins, all eyes are on the courtroom, waiting to see how the new evidence of text message deletion will impact the proceedings. The FTC's allegations, coupled with the ongoing investigation into collusive behavior regarding prices and wages during strikes, has turned this merger into a scandal-ridden affair. The outcome of this trial could shape the landscape of the grocery industry for years to come, affecting prices, wages, and consumer choices.