The whole food market is beginning to change how Americans shop and eat. The Organic Trade Association believes that the organic food market will reach $31 billion by 2007. Supermarkets like Whole Foods and Wild Oats are beginning to cut into the market share of traditional supermarkets. So much so that traditional supermarkets are trying to get in on the action, while there are signs that the whole food markets are becoming a bit more traditional.
A number of traditional supermarkets have begun selling their own brands of organic foods in an attempt to cash in on the popularity of organic. Recently, Yucaipa Companies, an investment company that made its name by merging and investing in grocery stores, bought both a 40 percent stake in the traditional supermarket chain Pathmark, and a 9.2 percent stake in Wild Oats.
Is the plan to close Pathmark stores and replace them with Wild Oats? This could be the scenario. Yucaipas' founder has said that while traditional supermarkets are trying to get back some of the market share, the whole food markets have to figure out how to bring more mainstream customers through the door. Our local Wild Oats market in Melbourne Florida was recently purchased by Whole Foods in late 2007.
This is good or bad depending on which way you look at it. In one sense, more access to organic, whole foods is a plus, but the reverse would not be good. In some whole food markets in an effort to become more mainstream, they are offering more processed foods as in the recent aquisition of Wild Oats. Still though, most traditional supermarkets in the country have only half an aisle or less dedicated to organic, natural, and whole foods. Whole food markets make up only about 10 percent of the grocery food market, while Wal-Mart, for example, has a 20 percent market share.
The best scenario will be increased access to organic, whole foods for the consumer and a faith in the profitability of organic farming and consumption compatible with the American economic system. This in turn will be a great health benefit for the consumer.
