The Illusion of Choice at Supermarkets

An analysis reveals that regardless of the huge, over-stuffed aisles, consumers aren't getting the vast range of choices they think they are.

The Food & Water Watch, located in Washington D.C. recently released an analysis of the nation's grocery industry.

In it, they reveal that regardless of the huge, over-stuffed aisles, consumers aren't getting the vast range of choices they think they are.

According to their findings, the major brands and mega-stores only offer the appearance of choice.

The business practices of both manufacturers and retail facilities actually diminish consumers' access to goods from smaller farms and producers.

On the producer end, it's not uncommon for big companies to create what only looks like brand competition.

For example, people looking for healthy cereal options and deciding between Kashi and Bear Naked are actually going to end up buying a Kellogg's product either way, as the company makes both.

Similarly, ConAgra puts 6 types of popcorn on grocer's shelves.

As far as retailers go, it's become common practice to give the best shelf placement to the highest bidder, squeezing companies that can't pay the premiums out of the running.

Considering that over 50 percent of all groceries are sold by 4 retailers -- Kroger, Target, Walmart, and Safeway -- that's a lot of advantage for those that can cover the display cost.