Whole Foods Acquires Wild Oats Group Members: Lauren Denfeld, Summer Wanner, Tom Keyzers

Whole Foods Market Was Founded in Austin, Texas with three local businessmen in 1980 with a staff of only 19 people. 194 stores in the US and the United Kingdom More than 54,000 employees Leading retailer in natural and organic foods. In fiscal year 2006, the company sales were $5.6 billion In 2007, Whole Foods Market soars to number 5 spot on FORTUNE’s “100 best companies to work for.”

Wild Oats 1987: A couple name Gilliland and Cook buys the Crystal Market in Boulder, Colorado, and renames it Wild Oats. 1993: Wild Oats become the third largest natural foods chain in the U.S. 1996: The company acquires Alfalfas Market, and company goes public. 2000: Wild Oats had more than 110 stores in US and Canada 2001: Wild Oats name a new president and CEO 2004: Sales started to decline 2007: Whole Foods Market mergers with Wild Oats.

Acquisition August 2007, Whole Foods acquires Wild Oats for $670 million. Currently Whole Foods owns 307 stores in the United States, Canada, and the UK. Fortune 500 company

Acquisition Goal 2 years to centralize operations of both companies. Significant synergies through G&A costs, greater purchasing power, and increased utilization of facilities.

An organic food monopoly? The Federal Trade Commission claimed the merger would be anticompetitive and be harmful to consumers. Jeffery Schmidt competition director of the FTC: “We brought this challenge because the evidence before us showed that the merger would most likely result in higher prices and reduced choices for consumers who shop at premium natural and organic supermarkets”

Impact on Consumer Higher Prices? Lower Quality, Reduced Choices? Customer Service? –Probably Not. Many business analysts think that this is healthy competition Both companies have upstanding history –Similar core values –Added long-term value to customers and share holders

Alternatives Shop Locally- Corvallis Co-op Trader Joes- Portland and Eugene There is an increasing trend to “organic market-style” grocery stores –Safeway “Lifestyles” Stores

Sources Business Week: htm?chan=top+news_top+news+index_businessweek+exclusives ml Whole Foods: pg com/images/objective.jpg 4E1M: _business_hand_shaking.jpg