Organic grocery wars get heated: will Whole Foods fix a broken Wild Oats?

Sarah Gilbert — Thu, 22 Feb 2007 22:55:00 EST

Filed under: Consumer Experience, Rants and Raves, Competitive Strategy, Wal-Mart (WMT), Johnson and Johnson (JNJ), Kellogg Co (K), Whole Foods Market (WFMI), Safeway Inc (SWY)

I've been in love with natural foods grocers since I was a little girl, when Fred Meyer opened a little mini-store dedicated to raw peanut butter, tofu, wheat germ and a dozen different kinds of bulk grains. The store had candy bars made out of honey and I loved it. Since then, my understanding for and appreciation of the natural grocer has grown up with the industry; from the cute little small-town co-op where I shopped in college, to the Fresh Fields (acquired, and already assimilated by, Whole Foods Market, Inc. (NASDAQ:WFMI)) I fell in love with in Philadelphia during business school, to the discovery of the Portland, Oregon New Seasons chain when I moved "back home" in 2001. I noshed at every quick-service franchise that jumped on the healthy foods wagon, from spirulina-spiked smoothies to bagels loaded with sprouts and hummus.

Natural and organic grocers always seemed like the nice (if a bit militant) guys, interested in supporting the local farmer, providing non-toxic food and diapers for our babies, striving to make sure our bodies were healthy and our baths were perfumed with chamomile and lavendar. And then 2005 happened.

Suddenly Wal-Mart Stores, Inc (NYSE:WMT) was in the organic grocery game. Safeway Inc. (NYSE:SWY) started its own line of "O" organic foods. Johnson & Johnson (NYSE:JNJ) created a line of herbal-infused babycare products and Kellogg Company (NYSE:K) launched organic Rice Krispies and Corn Flake s. Big business had figured it out and suddenly it wasn't smelling much like chamomile and patchouli. No. It smelled more like war.

With the news yesterday that Whole Foods was set to acquire Wild Oats Markets (NYSE:OATS), the war seems ever more bitter.

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Whole Foods in a battle for organic domination

Beth Gaston Moon — Thu, 22 Feb 2007 11:27:00 EST

Filed under: After the Bell, Deals, Good news, Wal-Mart (WMT), Whole Foods Market (WFMI), Kroger Co (KR), Safeway Inc (SWY)

As Peter reported yesterday afternoon, Whole Foods Markets Inc.
(NASDAQ:WFMI) is prepared to acquire its rival, Wild Oats Markets (NASDAQ:OATS), for $18.50 per share. It will mark the 19th and largest acquisition for Austin-based WFMI in its history.

In an accompanying statement, WFMI chairman and chief executive noted that "The growth opportunity in this category has led to increased competition from many players, most of whom are not dedicated natural and organic foods supermarkets, but are considerably larger than we are..." Methinks he could be alluding to that lone half-aisle containing soy milk and Kettle Chips at my neighborhood Wal-Mart Stores (NYSE:WMT) Supercenter? Or the increasing presence of organic offerings at Kroger (NYSE:KR) and Safeway (NYSE:SWY) locations?

Privately owned Trader Joe's has also become quite a force to be reckoned with in the world of natural grocers, with more than 250 locations. Hip and surprisingly affordable, it is my natural grocer of choice. But the Trader Joe's I've visited lack the expansive deli offerings, fresh sushi, or impressive wine selections available at WFMI.

Continue reading Whole Foods in a battle for organic domination

Whole Foods in a battle for organic domination originally appeared on BloggingStocks on Thu, 22 Feb 2007 11:27:00 EST. Please see our terms for use of feeds.

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