Kerry’s note: The merger Ted is referring to is the one I wrote about in February. Ted makes some great points, enjoy his post.The Federal Trade Commission, an organization dedicated to among other things “promoting consumers’ freedom to choose goods and services in an open marketplace at a price and quality that fit their needs - and fostering opportunity for businesses by ensuring a level playing field among competitors.” - has decided to block the merger between Whole Foods and Wild Oats. They claim “Whole Foods and Wild Oats are each other’s closest competitors in premium natural and organic supermarkets, and are engaged in intense head-to-head competition in markets across the country”. In addition, they claim “Whole Foods and Wild Oats, are differentiated from conventional retail supermarkets in several critical respects. These include the breadth and quality of their perishables - produce, meats, fish, bakery items, and prepared foods - and the wide array of natural and organic products and services and amenities they offer. In addition, premium natural and organic supermarkets seek a different customer than do traditional grocery stores.”As mentioned in several other excellent articles, it appears the FTC has not been to a grocery store, farmers market, or even a gas station in the past ten years or so. Who are they kidding?
Whole Foods - The Supposed Monster of FoodLast year, organic sales reached a record high of $17 billion dollars. “Supernaturals” like Whole Foods, Wild Oats, and Trader Joes took home 24% of this bounty while independent natural food stores were responsible for 22% of the sales. The CONVENTIONALS brought in 31% of this business. And keep in mind, the entire $17 billion is a whopping three percent of all food business. Truth is, organic products are everywhere today and growing like crazy. Walmart sold more organic milk than anyone last year, and organics as a whole are expected to grow by another 20% this year. I really doubt that the merging of Whole Foods and Wild Oats is going to stop anyone from selling organic products. The only thing that could do that is if we stopped buying them.Going further, the FTC’s position that Whole Foods and Wild Oats have a completely different customer than anyone else selling premium organics is complete rubbish. I consider myself a “hardcore” organic consumer - it’s a real term, look it up - but I still go to Costco, Safeway, even the farmers market. I can’t buy the death chemical that Kerry uses to clean her contacts, or my gold-and-platinum-forged razor blades, at either Whole Foods or Wild Oats. I tried some of the Safeway “O” organics line - mainly out of morbid curiosity - and with less than stellar results. I have even purchased organic avocados for last-minute guacamole from Albertson’s. They were MORE expensive than at Whole Foods, in case you were wondering.The worst tactic that the conventional stores practice is to take the top-selling (read: easiest) organic and natural items from Whole Foods and place them in a coral labeled “ORGANIC”. If you love soymilk, chips, energy bars, supplements, or juice, you are in total luck. They have dedicated a whole section of the store for you. You can meander the three or four aisles to your hearts content - just don’t wander too far, or you will be right back into the world of preservatives, trans-fats, and pestcides. Whole Foods, Wild Oats, the independents, even the wanna-be (Trader Joe’s), don’t retail their products like this, and for good reason. They know that most of us are looking for a commitment to something deeper than “just another merchandising scheme”. We want fresh perishables, high quality meat & seafood, and a mission-driven business that aligns with our values. If Whole Foods and Wild Oats merge to remain competitive with all of the other retailers who have joined the trend, I say let it be. This deal is small beans compared to some of the other deals that have sailed through the FTC. The proposed merger in question doesn’t affect consumer choice, will not raise prices, lower quality, or really even make a difference in the grand scheme of things. The only thing that will change is that Whole Foods will have more locations, and a struggling retailer (Oats) will be able to see the light of day again.Figure it out, FTC. You are wasting all of our time and playing in a world you know nothing about. I believe you will lose this battle in court, and it will become very clear to all of us that, like many other government agencies, you are bought and sold by the highest bidder. We need stores like Whole Foods, and we need them to remain competitive, because in all truth it’s tough to find a big business that is actually doing something good anymore.I will be back next week with part two of my animal series.
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