WASHINGTON (dpa-AFX) - Kroger Co (KR) has removed Red Bull energy drinks from its shelves across the Tri-State region and nationally, while some stores have also reduced their selection of Boar's Head deli products, as grocery prices continue to rise and consumers increasingly seek lower-cost alternatives.
The changes have sparked discussion among shoppers, with analysts suggesting that pricing negotiations may be behind some of the product reductions.
University of Cincinnati grocery price analyst Ben Brennan said consumers are increasingly shifting from name-brand products such as Boar's Head to store-brand and value-oriented alternatives. He said grocery prices in the Tri-State rose 1 percent in August, driven partly by higher beef prices and seasonal changes in produce availability.
The Red Bull situation may be different, Brennan said, noting that higher aluminium and steel costs could contribute to price increases for canned products.
Northern Kentucky University analyst Janet Harrah said Kroger's size gives it significant negotiating leverage with suppliers but warned that removing popular products could affect broader shopping habits if customers visit competing retailers instead.
The changes come after Greg Foran became Kroger's CEO earlier this year. Foran previously worked at Walmart and has told investors that suppliers should not use inflation as an excuse for price increases. Kroger has not commented on the product changes.
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