Whole Foods’ troubles.

Two articles from the NY Times this month on Whole Foods. One, “Whole Foods Looks for a Fresh Image in Lean Times,” covers the chain’s troubles trying to expand beyond the right-tail portion of the pool of grocery shoppers. There’s an underlying implication that this is due to the stagnating economy this year, but really, this was inevitable. Nearly every high-end brand eventually tries to move downmarket because the high-end market isn’t large enough to sustain the growth rates the company and its shareholders want to see. Whole Foods has been slowly moving left on the income curve through two efforts: one, becoming more competitive on packaged goods that are also available in other chains (like Kashi products, including their TLC Crunchy granola bars, a staple scouting snack for me because they’re delicious and high in fiber); and two, educating more consumers on the benefits of natural and organic foods. The media has helped on the latter front – a case of left-wing media bias of which I actually approve – but Trader Joes, also rapidly expanding, is a serious thorn in Whole Foods’ side on the former front. Indeed, we split our shopping among several stores, and we buy a lot of staple packaged foods at Trader Joes, including olive oil, balsamic vinegar, organic sugar, nuts, dried fruits, jarred artichokes and roasted red peppers, vanilla extract, eating and baking chocolate, and even specialty items like pizza dough and Parmiggiano-Reggiano ($5/pound cheaper than Whole Foods).

The second article, of course, covers Whole Foods’ response to their recent recall of ground beef. I can say with certainty that I bought and consumed ground beef from Whole Foods within the recall time frame, and did not end up in the hospital or with a minor case of food poisoning; I do cook my burgers at least to medium, which helps. More importantly, however, I was unaware that Whole Foods sold any beef that wasn’t ground in the store. The one I frequent most often has little clocks up that indicate when each type of beef (85%, 90%, and 93%) was last ground. Why would I assume that they were buying ground beef made elsewhere? And, as the Times article points out, why on earth are they doing business with a processor with a history of safety issues? I switched all of my beef purchasing to Whole Foods years ago when I learned more about how cows are fed; Whole Foods “guarantees” that all its beef is made from cows fed vegetarian diets. Do I need to question that now as well?

Comments

  1. Question anyone who has to worry about the bottom line.

  2. I’m a fan of Whole Foods, but in the first article, the Whole Foods co-president (?) makes me think they are self-delusional:

    “I’m getting a little tired of that tag around our neck,” he said, referring to the nickname. “We are a lot more competitive than people give us credit for. We challenge anyone on like items.”

    He’s missing the point. Actually, he’s missing the point, the line, the circle, and the room in which they were drawn. So what if your “like items” cost the same when 80% of your inventory consists of expensive “non-like items”? It’s such a silly argument.

    Fellas, put down that Kool-Aid (or whatever the organic substitute would be).

  3. “Question anyone who has to worry about the bottom line.”

    Um… I worry about the bottom line.

    I think we call it business.

  4. Stop shopping at whole foods and use a local butcher or CSA. Knowing the butcher makes a world of difference. Same goes for the fish monger.

    For New Yorkers: http://www.csapasturedmeatandpoultry.com/default.aspx

  5. Keith – when’s the non-fiction Klaw 100 coming out?

  6. Local butcher? What a delightful anachronism. Haven’t seen one close enough to here to make sense for me.

    Steve C. posted this in the wrong thread, but I assume it’s meant for this one:

    Quality is not the exclusive province of Whole Foods. Nor is the average supermarket exclusively home to hordes of Coke swilling shake and bakers. We use the local supermarket, along with many smaller specialty markets in the Boston area, and we cook and eat a wide variety of fresh, healthy meals.
    My one trip to Whole Foods, in forty years of grocery shopping, turned up some nice items but the store overall didn’t offer good value for the money so I never went back.

    Our local supermarkets suck. I’m not sure where you live in Boston, Steve, but we’ve tried the local Stop N Shop, Foodmaster, and Shaws, and the quality – especially of produce – is unacceptably poor. We do shop at Wilson Farms and occasionally at Russo’s, but for meats/fish, I have yet to find the equal of Whole Foods.

  7. This is why I have to stay in NYC. I have 3-4 butchers and 6+ fish mongers in walking distance of my apartment. I realize this is not common in most cities.

    That said, meat and poultry CSAs are definitely available in Boston. A quick google search revealed this option:

    http://www.stillmansfarm.com/purchasingourmeat.html

  8. That’s nearly two hours from my house. I had to look it up, since I’d never heard of Hardwick.

    I’ve seen the occasional meat vendor at local farmers’ markets, but it’s mostly produce – which is fine, but you don’t get a whole lot of shopping done that way.

  9. I have to believe that some of the hippies in Cambridge have organized a meat CSA by now. Organics, slow food, this just seems to be right in your particular Ivory Tower’s wheel house.

  10. Ooops. When I wrote “your particular Ivory Tower”, I was speaking geographically. I forgot about the Harvard thing. Sorry.

  11. One of the benefits of living here in Portland is the wide availability of locally sourced food. I am not a fan of Whole Foods, but if I didn’t have alternatives (like the fantastic Portland chain New Seasons), I would likely shop there.

  12. It was only a couple months ago when I realized there was an Italian sausage maker less then a block away. He makes three kinds of sausage: sweet, hot and Hungarian.

    I have never gotten a satisfactory explanation regarding what qualifies the sausage as Hungarian, but damn, its good.

    I love immigrant neighborhoods.

    Ok, one last option. I know that they are NOT cheap, however if you want the absolute best meat of the absolute pest pedigree, check out Lobels. They ship.

    http://www.lobels.com/

  13. Keith, moved to boston? For some reason, I thought you were still in the Burgh.

    Personally, ever since graduating college in Pittsburgh (and shopping at Geagle – ugh) – the only place I use is Trader Joe’s. I like the food, and if I need something else, I’ll go down the street to the Wal-Mart for soap/toothpaste etc etcand other essentials.

  14. “Left wing media bias.” I love this line. For every ten instances of left wing media bias I can show you 20 examples of right wing media bias. And for those 20 I’m sure anyone with a little time and effort could show me 30 more instances of left wing media bias. In my experience, weight given to one or the other only proves the bias of the accuser. Wield it with care Keith.

  15. Todd, I disagree. There is a left wing media bias and for good reason. Most reporters (sports writing excluded) are educated, intelligent individuals. Naturally they favor the left.

  16. I wish I even had a Whole Foods, or Trader Joes. Although Publix, our regional supermarket, is better than the ones I’ve found in other parts of the country ( I love seeing the Publix stuff in Alton’s fridge sometimes.) I also use Fresh Market when I can get to the other side of town.

  17. Keith, I know you aren’t in the city proper, but there are at least three butchers I can think of off the top of my head in the North End, the best being on Salem Street not too far from where Martineti’s used to be. Savenor’s in Beacon Hill also has great meat.

  18. Todd, by your calculations, you owe us two examples of right wing media bias.

  19. I’m in the opposite boat of Keith. The closest Whole Foods isn’t far away (20-25 minutes), but town in which it’s located can be a pain to navigate.

    However, within my town there is one small market with excellent cheese, meat, and fish departments (although I find the fish monger to be a bit of an prick). Fortunately, there’s an excellent seafood place across the street from the market, which I’ve found to be very good.

    I also have a butcher down the street from the fish market which is quite good. I realize this isn’t the norm.

    With that being said, I’ve recently found out there is a Whole Foods opening literally a mile away. So, I will have to give it a more extensive look. It will also be interesting to see how the small market, butcher, and fish market do once it opens.

  20. The 5 step process for organic almost certainly salmonella-free ground beef:

    Step 1: Buy Organic Chuck Roast (I get mine from Whole Foods)
    Step 2: Cut into 1-inch cubes trimming only large or hard pieces of fat away
    Step 3: Grind in small 1 1/2 Cup batches in Cuisinart using normal chopping blade
    Step 4: Fashion into rounds
    Step 5: Grill to desired internal temp

    I grind chuck at home about once a month for burgers. The result is a much better tasting burger that tastes more like steak than bland ground beef. I usually cook to somewhere between rare and medium-rare. Mark Bittman did a piece on this last summer so check it out in the Times’ Food Section.

  21. There are all those neighborhood butcher shops right by Terrence Mann’s place… maybe Ray Kinsella can give you directions.

  22. I split my buying between Trader Joe’s and Whole Foods…it sounds like we have pretty similar grocery shopping habits. I buy the Kashi TLC granola bars and GoLean cereal in bulk…they’re unbeatable as far as the mix of taste and nutrition goes.

    The part of the beef recall that really bothers me is what it says about the difference between the supply chain that leads to the generic supermarket and the supply chain that leads to Whole Foods, especially since it comes at time when the chain is under major pressure from shareholders.

    I’m not naive enough to think that the beef I buy at Whole Foods comes from a small farmer who slaughters each cow himself, but I like to think that the premium I pay at Whole Foods buys me more naturally raised and safely handled meat.

  23. the problem, as noted, is the need for constant increases in growth/profits as a publically traded company — therefore they have to open new stores and either do so (a) closer than usual to an existing store, thereby saturating the market & (b) in areas where shoppers are more price sensitive & less prone to shopping there in leaner times. It also hurts that many “regular” markets continue to add local/organic/botique brands to their offerings to draw the whole foods shopper. Gotta love a place where I can buy my fresh seafood, good cheese & the occasional 2 liter diet mountain dew in the same store.

  24. Have you tried Lee’s Sandwiches?

  25. Phill, I think you’re making it sound way too easy and simple when it’s not. I tried to get into two CSAs in Brooklyn. I’m on a wait list that’s over 40 names long. At this rate, I can get in around 2012. Fingers crossed.

    And butchers are dying breeds unfortunately. If I have the time, I can walk the 20 minutes it takes for me to go to my butcher, but most days, it’s just not possible. And the fishmongers in my neighborhood are terrible.

    Look, I’m all for truly organic products, grass-fed meats, and sustainable eating of seafood, and abide by such whenever possible. But the overwhelming majority of my monthly spending money is used on foods like these because for me, it’s the only thing that I’m willing to spend this much on. I don’t expect everyone else to be willing to make the financial sacrifice. People have different priorities. And I think it’s unfair to expect everyone to fall in line.