Page 25 - ARUBA TODAY

BUSINESS Thursday 22 June 2017
A25

Small food makers wonder about Amazon-Whole Foods impact

By JOYCE M. ROSENBERG there could be three,” Ma-
AP Business Writer her says.
NEW YORK (AP) — Among He also expects that Ama-
the many questions being zon will demand lower pric-
asked about Amazon’s in- es from food manufactur-
tended purchase of Whole ers than Whole Foods has.
Foods is one from small “If I were a supplier, I would
and medium-sized food be concerned about profit
manufacturers: How might margins,” Maher says.
this deal affect me? Meg Barnhart, who sells
The unknowns include spices for slow cooking
whether Amazon might through both Amazon and
change the grocery Whole Foods, believes
chain’s food offerings, there’s enough demand
which at the moment in- for natural or organic prod-
clude thousands of prod- ucts that Whole Foods will
ucts made by small and continue to seek out ones
mid-sized businesses. A key that are unique.
point for many companies “It would be such a radi-
is whether Whole Foods cal change if the compa-
would place less of an em- ny didn’t go in that direc-
phasis on buying locally tion,” said Barnhart, whose
produced or innovative In this Friday, June 16, 2017, file photo, groceries from Whole Foods Market sit in a cart before be- company, The Zen of Slow
ing loaded into a car, outside a store in Jackson, Miss.
foods after the $13.7 billion Associated Press Cooking, is based in Lake
purchase, expected to be- Forest, Illinois. Her products
come final later this year. products and gotten some seems like it would be eas- the support they need, are sold in 22 Whole Foods
Whole Foods’ buying interest. ier to loop that distribution the financial stability, and stores in the Chicago area.
strategy, which appeals With the Amazon deal system into Whole Foods,” Amazon will add to what But because of the grow-
to many consumers, has pending, though, she says, says Michael Volpatt, co- they’re currently doing,” ing number of retailers
made it possible for small “we just don’t know how owner of Big Bottom Mar- says David, owner of Gole- courting the natural and
players to get products that’s going to pan out ket in Guerneville, Califor- ta, California-based Outer organic food shopper,
into regional stores. The and what it means for us, nia, whose biscuit mixes Aisle Gourmet. some food companies are
company says between 10 something good or bad.” are sold through Amazon. Whatever changes Ama- bypassing Whole Foods.
percent and 20 percent of HFactor is also sold on Am- Whole Foods has struggled zon makes, they’re likely Muuna, a company that
the products in each of its azon and doing well, says in recent years with de- to be aimed at holding on makes single-serving con-
stores come from local pro- Levy, who’s based in New clining sales at established to Whole Foods’ current tainers of cottage cheese,
ducers. York. “I can only hope that stores and increasing com- customers, says Mike Ma- is content selling in big
But activist investors who having that status with Am- petition from big grocery her, CEO of Presenture, a chains in the Northeast,
advocated a sale of Whole azon will help us get into chains across the country company that helps food CEO Gerard Meyer says.
Foods also demanded that Whole Foods.” that have recognized the manufacturers sell their He doesn’t expect the Am-
it cut the number of prod- Many experts believe Am- demand from consum- products to retailers. So azon-Whole Foods deal to
ucts it offers to lower its azon would use its vast ers and are offering more he doesn’t expect that a have a big impact on his
costs. distribution system to help natural and organic foods. Whole Foods owned by company for now.
They contended that buy- streamline Whole Foods’ Jeanne David, whose Amazon would stop buying However, Meyer is interest-
ing small amounts of so operations. bread and pizza crust locally produced food. ed in seeing whether Ama-
many food items eroded That makes some food made primarily with cau- However, being competi- zon, through its ownership
the company’s profits. company owners who are liflower are sold in Whole tive on prices is part of Am- of Whole Foods, can find
Gail Levy, who sells HFac- courting the grocery chain Foods stores in the West, azon’s core culture, and a way to use its distribution
tor packaged water to more hopeful about their believes that Amazon’s buying larger quantities of system to deliver perish-
stores including Giant’s chances of success under ownership will strengthen a smaller number of prod- ables like cottage cheese.
nearly 200 supermarkets in Amazon. the chain and benefit sup- ucts helps a retailer lower “If they figure that out,
the East, has approached “They (Amazon) already pliers. its overhead. So “instead it portends well even for
Whole Foods about her have our gift boxes. It “Amazon will give them of five choices of honey, brands like ours,” he says.q