Grocery stores squeeze the supplier and it ripples back to the primary producer. My uncle has been in the grocery business since he was a kid. He tells me that in Canada anyway there are only a handful of grocery suppliers. They can dictate to the packers and wholesalers what they'll pay. The independent grocers get short stick because the big chains can use their lost leaders more frequent than what the little guy can. The big profits are made on the dry goods on your way back to the perishables on the back wall.
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U.S. Grocery Price War
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