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How State Taxes Put a Bigger Pinch on the PoorThere is no hard evidence that organic food is any better for people than beer and burgers. There are some studies that show all the good side effects of eating well, but they were probably paid for by companies that produce milk straight from cows or wild salmon.
It does not matter much if the entire organic thing is a hoax, when people don't have money to buy fancy food, they are going to have to settle for Spam and Cheese Wiz, whether they like it or not.
One company that will be hurt by the eating retrenchment is Whole Foods (NASDAQ: WFMI), a favorite of the upper middle class who wants to look down their noses at people who go to regular grocery stores. According to The Wall Street Journal, "Analysts say the upscale grocer probably will have to trim its earnings forecast for the current fiscal year and announce further cuts to capital spending or new-store plans."
The real question is how long it will take WFMI to recover from any downturn. Its customers may decide that they like cheap, fatty food and never return. Whole Foods has watched its shares go from a 52-week high of $51 to $10. Those stock certificates may become so worthless that people will have to eat them as part of a healthy meal. At least they will cost less than the Whole Foods produce.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
11-03-2008 @ 12:19PM
Lee Gibson said...
I appreciate investment opinion on this site, but but advice predicated on snark and resentment aren't likely to make me any money.
11-03-2008 @ 12:51PM
monkeyrotica said...
HIGH-larious! Can't wait for the Whole Foods bubble to do like its bigger real estate brother.
11-03-2008 @ 12:58PM
william lindblad said...
I see you are not into Ag. Whole foods, perhaps, but not the entire organic sector.
I am hardly a grenola cruncher and plenty of the good old "fatty" remains on my plate, however when it comes to fresh veggies I prefer the no pesticide variety.
There is something else you should be aware of and that is commercial Ag. uses a lot of commercial fertilizer - the organic troops like compost, crop rotation and many other good soil retention methods. In other words, they don't spend a lot on fertilizer and given the increases, this may prove to be a competitive edge.
11-03-2008 @ 10:20PM
Markus said...
Living across the street from a WFMI store, I have my own feelings about their exorbitant prices, and shop (or not shop there) accordingly.
Nonetheless, your assertion that people shop there so they can look down their noses at those who shop in regular grocery stores is asinine and fallacious.
Perhaps they're simply patronizing a store where they enjoy shopping. In spite of your parochial opinion, price aside, their produce is quite a bit nicer than your average grocery store, and as such, one pays the price.
Shall we now pillory those effete snobs that dine at expensive restaurants simply so they can peer down their up-turned noses at those bourgeois riff-raff slumming at Denny's?
And finally, who are you, sir, that you have the audacity to opine on what's good for everyone else?
12-07-2008 @ 9:34AM
D said...
WHOLE FOODS IS GREAT (as is Mother's market, and others like them ...) AND IF WE WANT TO KEEP REAL AND HEALTHY FOODS ON THE MARKET, WE HAVE TO BUY THEM AND SUPPORT ORGANIC FARMERS, OR WE'RE SCREWED.
I WAS VERY ILL WITH A LIVER DISEASE AND I NOW I EAT 85% ORGANIC (NOT ALWAYS EASY TO FIND, AFFORD ETC) AND MY ENTIRE LIFE CHANGED. I CAN FUNCTION, I FEEL HEALTHY AND IT'S BEEN MANY YEARS AND I JUST KEEP GETTING HEALTHIER. IT DOES MAKE A DIFFERENCE!
ESPECIALLY FOR KIDS. THEIR LITTLE BODIES CAN NOT HANDLE ALL THOSE PESTICIDES. AND IT'S ALSO WONDERFUL FOR THE ENVIRONMENT.
12-07-2008 @ 1:42PM
MaryClare said...
Pay now or pay later is my motto. I'd rather eat organic, non-pesticide, non-GMO, non-bovine growth hormone, etc. anyday. The taste is superior to commercial produce and meat, and I know my $ is going towards supporting sustainable agriculture and farmers whose profit margin is razor-slim. Organic farmers don't get the subsidies commercial farmers do, so organic prices reflect actual cost to bring the produce/item to market. Your taxes are paying the gov't subsidies and if you took away the subsidies, you'd actually be paying more for commercially-grown and raised food. Sounds like this writer is biased towards living a healthy lifestyle. Too bad for him, bully for me.