Slog

News & Arts

Line Out

Music & Nightlife

Tuesday, December 9, 2008

Whole Foods Goes After Portland Natural Food Store's Internal Documents

Posted by Erica C. Barnett on Tue, Dec 9, 2008 at 3:14 PM

Whole Foods Market's dispute with the Federal Trade Commission over the larger company's takeover of Wild Oats Market has hit (close to) home: the 270-store natural-foods behemoth is seeking to force New Seasons Market, a nine-store natural-foods chain in Portland, to divulge confidential records, including market studies, strategic plans, expansion proposals, product lists, and weekly sales information for the past two years.

Although New Seasons is not involved in the lawsuit, Whole Foods says it needs the information to demonstrate that its takeover of smaller competitor Wild Oats is not harming other competitors. The battle has been documented in the Oregonian, on Gourmet's web site by Barry Estabrook (who wonders why, "with major airline mergers and multi-billion-dollar banks rushing to leap into bed with each other," the FTC is fixated on a relatively minor half-billion-dollar merger), and in painstaking detail on New Seasons' blog, where company CEO Brian Rother expresses doubt that Whole Foods will keep his company's private information private.

Whole Foods says that we should give our information to their lawyers and they claim the lawyers won’t let anyone else in the organization see them. That’s like trusting the fox to guard the henhouse – and we don’t have any faith it’s going to work like that.

I’m sorry to say this, but some of the people at Whole Foods have a history of less than stellar behavior when it comes to competing fairly. There are two obvious examples of this. First, last year, their CEO John Mackey was caught posting derogatory information online about Wild Oats, using a made up screen name. Here’s a New York Times story about that.

Second, during the first round of this law suit last year, the FTC released a bunch of e-mails that some Whole Foods executives had sent over the previous few years. You can find the entire (really lengthy) FTC report here, but just to give you a flavor of it, below are a few excerpts of Whole Foods’ comments in regards to Wild Oats:

“Wild Oats needs to be removed from the playing field...”

“…[m]y goal is simple – I want to crush them and am willing to spend a lot of money in the process.”

“...elimination of a competitor in the marketplace, competition for sites, competition for acquisitions, and operational economies of scale. We become the Microsoft of the natural foods industry.”

Yikes!

Rother writes that New Seasons is "running up whopping legal bills" fighting Whole Foods, and he told the Oregonian he estimates collecting the information in the subpoena could cost $500,000.

Share via

  • Twitter
  • Facebook
  • Newsvine
  • Reddit
  • StumbleUpon
  • del.icio.us
  • Email
 

Comments (9) RSS

Oldest First Unregistered On Registered On Add a comment
1
Just think of all the research on their competitor they get for that small amount of money though, half a mil is cheap for oppo research.
Posted by Will in Seattle on December 9, 2008 at 3:23 PM
2
yeah and you hippies want to keep buying your expensive organic food from whole foods? you go right ahead, but all you are doing is supporting "the Microsoft of the natural foods industry."
Posted by jameyb on December 9, 2008 at 3:32 PM
3
I don't get this. New Seasons isn't a party to the FTC challenge, nor are they the object of it. Can someone please explain to me what legal grounds Whole Foods think they have to compel a competitor to divulge confidential information to them under these circumstances?
Posted by COMTE on December 9, 2008 at 3:45 PM
4
Oh, and FWIW, I stopped patronizing Whole Foods at least six or seven years ago, when I found out they were non-union...
Posted by COMTE on December 9, 2008 at 3:46 PM
5
yeah and you hipsters want to keep buying your expensive organic food from whole foods? you go right ahead, but all you are doing is supporting "the Microsoft of the natural foods industry."

FTFY. Hippies dig in dumpsters, and steal from their neighbor's gardens.
Posted by dirty hippie on December 9, 2008 at 4:00 PM
6
I liked Wild Oats better, and I was sad when Whole Foods ate them, even though I could only go to one a couple times a year, when I visited a city that had one.

Whole Foods is an evil entity, unconvincingly disguised as a good one.
Posted by this guy i know on December 9, 2008 at 4:23 PM
7
@4 for the win.
Posted by Will in Seattle on December 9, 2008 at 4:59 PM
8
New Seasons is the greatest grocery store in the region. It would RUIN Whole Foods if it opened here.
Posted by stutter on December 9, 2008 at 7:46 PM
9
I motherfucking love me some New Seasons. I want one up here so bad. It's like a hybrid of Metropolitan Market, QFC and a co-op.
Posted by Sir Learnsalot on December 9, 2008 at 10:32 PM

Add a comment

 

All contents © Index Newspapers, LLC
1535 11th Ave (Third Floor), Seattle, WA 98122
Contact Info | Privacy Policy | Terms of Use