Grocery stores operate on slim profit margins - i thought it was 2% not 1% - but it's a volume business and that slim profit margin doesn't apply to all the side shit, kiosks they have these days.
AND that doesn't count the HUGE money food and beverage companies pay for shelf space or more shelf space or better located shelf space. Try being a small new food company and getting any shelf space in a chain grocery store. They want to see the color of your money.
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