The Federal Trade Commission announced it is filing a lawsuit to block the proposed Whole Foods-Wild Oats merger.
It claims there could be anti-trust issues in allowing the two dominant natural food supermarkets to merge. Whole Foods and Wild Oats announced they will vigorously challenge the FTC’s decision.
Industry insiders and financial analysts alike expressed surprise and believe the FTC is missing the point.
“I’m startled by FTC’s actions,” said John Moore, founder of brandautopsy.com and former director of national marketing for Whole Foods. “With all the major grocery stores stocking more natural and organic offerings, it seems preposterous to think a merged Whole Foods and Wild Oats would be a threat to competitiveness.”
Organic food makes up a tiny 3% of the total grocery sales. And even the combined sales of Whole Foods and Wild Oats represent only about 11% of total U.S. natural food sales.
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