Whole Foods sold to Amazon

(ianrobo) #1

This has taken the market by shock.

https://www.bloomberg.com/news/articles/2017-06-16/amazon-to-acquire-whole-foods-in-13-7-billion-bet-on-groceries

What it shows is the demand for organic whole foods is growing and Amazon see this. They have the network to row this business and this can only be positive for us as prices in the US will come down.

(Michelle C.) #2

Alexa: I’d like some overpriced groceries…

(jilliangordona) #3

I’m not sure this will drive down organic prices. Agriculture products are not subject to the exact same demand/price models. Organic is so expensive because there tend to be higher labor costs and lower yields of the product. Plus the initial USDA organic certification is very expensive.

(ianrobo) #4

Amazon have of course took these over for their network but they also have a brand etc. I do see this as a positive if they keep the branding and Amazon can help in driving up demand thus lowering prices as more suppliers enter.

Thats the market theory !

#5

So… I can get a grass-fed ribeye delivered by drone just in time for dinner?
Oh wait, I don’t have $100 on me. :wink:

(ianrobo) #6

ha ha but actually thats the theory, just in time food shopping, is whole foods that more expensive then ? Or just organic prices in general as explained above ?

#7

I’ve heard Whole Foods called “Whole Paycheck”. There are cheaper sources of organic food so I think Bezos has some wiggle room for lowering prices a bit.

(ianrobo) #8

we presume he will keep whole foods exactly as they are now in terms of their USP ? Also I presume that the stores are located in the more ‘hipster’ places of the US, shame we do not have anything similar here.

#9

The nearest one to me is about 85 miles, last I checked. I hope that drone has extended range capabilities.

(betsy.rome) #10

What worries me is the narrowing of choice due to the consolidation of corporations. That would leave Amazon the option to hijack prices for organic groceries since they’ll have such a huge market share. Bigger fish eats big fish = less competition.

(ianrobo) #11

first changes

https://www.bloomberg.com/news/articles/2017-06-18/amazon-said-to-plan-cuts-to-shed-whole-foods-pricey-image?cmpid=socialflow-twitter-business&utm_content=business&utm_campaign=socialflow-organic&utm_source=twitter&utm_medium=social

as long as they stay whole foods in all senses then good news if prices come down ?

(ianrobo) #12

and today Amazon have confirmed cuts in prices and especially to Prime customers

(Mike Glasbrener) #13

Yup That’s what I’ve read except they called the hipster neighborhoods “upscale” as in more money. It also gives them a quick distribution option for perishables.

(ianrobo) #14

of course and clearly aiming towards the younger market because that is the future. Especially with who is in charge of USDA now

(ianrobo) #15

any hope that this deal was good for our WOE and whole food movements - destroyed -

https://www.bloomberg.com/news/articles/2017-08-30/organic-doritos-give-frito-lay-a-path-into-amazon-s-whole-foods?cmpid=socialflow-twitter-business&utm_content=business&utm_campaign=socialflow-organic&utm_source=twitter&utm_medium=social

overtime there is a way around it etc

(Mike Glasbrener) #16

I personally hate the way organic and healthy are inextricably linked by marketeers. Heroin, bad! Organic Herron on the other hand, great for you!

(ianrobo) #17

Exactly but that is the way they want it, bet prices 20% more than standard bars eh ? I just hope their target market is more savvy than that

(Mike Glasbrener) #18

Some are, some aren’t. Not all WF customers have a metabolic disorder. Also, I think a higher percentage of WF customer are at a healthy weight than regular grocery stores as observed by a higher precedence of “eye candy” (AKA attractive people).

(ianrobo) #19

I guess the point is eating these crap will not make people stay at a lower weight, see I would think Whole Foods = healthy and if you get people thinking organic Cheeto’s are ‘healthy’ there in lies a major problem.

just like vegetable oils are ‘healthy’ or high carb is ‘healthy’ ?

(Mike Glasbrener) #20

Yes I get it. It looks like they’re heading down a dangerously slippery slope because the camel has his nose under the tent. That said, there’s tons of crap in WF currently that I’d never consider putting in my mouth. Pancake/waffle mix, organic cereal with “healthy can sugar”, ice cream, soda, again with cane sugar… For me WF makes healthy options much more accessible. But it’s still a mine field.