When you're hot you're hot, and when you're Whole Foods Market (NASDAQ: WFMI) you're ice cold -- and you're a health food store recalling beef provided by a supplier with a long history of USDA run-ins and a role in the latest outbreak of E. coli.
The Washington Post reports that "The meat Whole Foods recalled came from Coleman Natural Foods, which unbeknownst to Whole Foods had processed it at Nebraska Beef, an Omaha meatpacker with a history of food-safety and other violations. Nebraska Beef last month recalled more than 5 million pounds of beef produced in May and June after its meat was blamed for another E. coli outbreak in seven states."
Nebraska Beef's history of run-ins with the FDA is pretty remarkable: sanctions for problems including feces-contaminated carcasses, water from pipes dripping onto meat, and E. coli issues as far back as 1997.
That Whole Foods was unaware that it was acquiring its merchandise from such a questionable source raises serious questions about its quality control and sourcing -- those are two of the main reasons that many consumers are willing to pay a premium for Whole Foods products.
This is probably an isolated incident but, from a PR perspective, it's likely to be very damaging. With its reputation for being expensive (see Sarah Gilbert's Whole Paycheck) hurting sales in the current climate, Whole Foods is ill-equipped to deal with a scandal like this.
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Reader Comments (Page 1 of 1)
8-10-2008 @ 7:27PM
Dave said...
Whole Foods deserves the negative press. One habit I've noticed they have is raising the price of an item and then a week or two later having a "sale" on that item at the previous price proclaiming a savings! Currently they have on "sale" South of France soap, which was $4.99 until a few weeks ago raised to $5.99, now a "special" at $4.99! What nerve! Then there are the "sales" where you save $0.10 on an item! Doesn't it cost more to just print and post those stickers!
8-11-2008 @ 1:04AM
bangbangmaxwel said...
We spend billions of dollars to finance an unwinnable war in iraq and yet cannot protect our own citizens from contamanated beef raised here at home. It is a sad state of affairs.