The List: Food, Grocery, Beverage & Related Companies Donating to Earthquake Relief Efforts in Haiti

Last Update: January 21, 2010 - 10:55 pm eastern - 07:55 pm pacific

The earthquake that stuck the island nation of Haiti on Tuesday is one of the most devastating natural disasters in recent times.

The U.N., United States and other nations are rushing to the country's aid with money and human resources, as are key non-governmental agencies (NGO's) like the Red Cross, Salvation Army, Doctors Without Borders and many others.

Right now the biggest need for these key agencies is cash in the form of donations. This is particularly the case with the Red Cross, which is serving as the lead NGO in Haiti as it regularly does globally in such disasters.

Our beat is food - the global food and grocery industry, along with all related topics.

In this post we will keep a running count of all the food-grocery companies - retailers, food-makers, marketers and others - throughout the world we can find that are making donations of any type to Haiti relief, along with listing any types of fund-raising programs these companies and their employees are doing.

The Natural~Specialty Foods Memo List is regularly updated as we learn about new efforts.

Also follow our Twitter feed - www.twitter.com/NSFoodsMemo - for real-time updates on food-grocery companies donating to the relief efforts in Haiti.

As individuals, one simple way you can contribute to Red Cross Haiti assistance efforts is by simply texting "HAITI" to 90999 on your mobile phone. Doing so will result in a donation of $10 to be charged to your cell phone bill.

Donations to the Red Cross can also be made here (American Red Cross) or here (International Red Cross).

Numerous other NGO's and non-profits are also seeking donations for their respective earthquake relief efforts.

Some Information, resources, and ways you can help survivors of the Haiti earthquake.

The Natural~Specialty Foods Memo List

Food-grocery retailers of all formats

1. Walmart Stores, Inc., the largest retailer in the U.S. and the world, has donated $500,00 to Haiti earthquake relief efforts so far - $400,000 in cash to the Red Cross and $100,000 worth of pre-packaged food kits donated at the request of the Mexican Red Cross for Haiti.

Walmart also has set up a special Web site here where its employees and others can make individual donations to the relief efforts. Walmart also said on Wednesday (January 13) that it is working on an addition support plan for Haiti. Read about it here and here.

Update: Friday, January 15: Below are some of the additional efforts Walmart has made since Wednesday, January 13:

>Walmart Canada announced a campaign to raise money for Haiti disaster relief, starting with a $100,000 contribution from the company to the Canadian Red Cross.

>Walmart Puerto Rico made a donation of $25,000 to the Puerto Rico chapter of the American Red Cross and launched a campaign to encourage customers to contribute the change from their store purchases to benefit disaster victims.

>Walmart Argentina also announced a $25,000 contribution today to the Red Cross in that country.

>Walmart operations in Canada, Puerto Rico, Mexico, and Chile have launched fund-raising campaigns to benefit disaster victims.

2. Florida-based grocery chain Publix has donated $100,000 to Haiti relief. The supermarket chain has also launched a donation campaign in all of its Florida stores, where shoppers can make cash donations to help the victims of the 7.0 magnitude earthquake. Link: http://tinyurl.com/yz5w9rq

3. Food, grocery and general merchandise retailer Target just announced it will donate $500,000 to earthquake relief efforts in Haiti. More here. In addition to the cash donation, Target stores volunteers are working in partnership with students from The Fair School in Minneapolis, Minn. and ImpactLives, a local non-profit organization, to prepare more than one million meals to send to Haitian earthquake victims.

4. Pleasanton, California-based Safeway Stores, Inc. is making an initial $100,000 donation to the American Red Cross and UNICEF, two organizations at the forefront of the earthquake disaster relief mission in Haiti. More here. In addition, Safeway has launched a company-wide fundraising program to help Haiti. The company’s 1,730 stores throughout the U.S. and Canada will immediately begin collecting donations for Haiti disaster relief through a checkstand donation program, says Safeway CEO Steve Burd. Further, Safeway’s corporate offices and other non-store facilities will also conduct employee fundraisers so the company’s entire workforce can contribute to helping the people of Haiti recover from the earthquake, Burd says.

5. Online consumer packaged goods-consumer products retailer and multi-level marketer Away is donating $100,000 to disaster relief efforts in Haiti, as well as matching contributions its employees and distributors make through its Web site here. Among the products Amway sells include natural-organic-health food and beverage items, vitamins and nutritional supplements.

6. Toy, game and kids' products (and yes food and grocery) retailer Toys "R" Us, through its Toys"R"Us Children's Fund, is making a $150,000 donation to help the non-profit Save the Children organization in its efforts to provide relief to victims of the 7.0 magnitude earthquake that struck Haiti's capital of Port-au-Prince on Tuesday. More here . [Learn about what 'Save the Children' is doing, and the help it needs, in Haiti here .] And yes - Toys "R" Us qualifies as a 'food and grocery' retailer." Read our May 5, 2009 story here.

7. Mega-online retailer Amazon.com, which sells an extensive selection of food, grocery and non-foods packaged goods, has established/placed a box on its main Web Site homepage where customers can contribute to the international relief efforts for the survivors of the 7.0 magnitude earthquake in Haiti. See details here. All customer donations go to the charity Mercy Corps, which is assisting on the ground in Haiti.

8. Pennsylvania USA-based supermarket chain Weis Markets Inc. will begin collecting donations on behalf of the American Red Cross' Haiti Relief and Development Fund in its 165 stores in Pennsylvania, Maryland, New York, New Jersey and West Virginia on Friday, January 15. Starting tomorrow, customers can donate the amount they wish by adding to their grocery bill at check out or at the stores' courtesy desks, says company president and CEO David J. Hepfinger.

9. Jacksonville, Florida-based supermarket chain Winn-Dixie announced today it is launching its "Neighbors Helping Neighbors" program in all of its 514 stores to help support the American Red Cross disaster relief efforts in Haiti. "Neighbors Helping Neighbors" allows Winn-Dixie customers to donate to the Red Cross by simply indicating the amount of their choosing (between 50 cents and $500) at the cash register, says Mary Kellmanson, group vice president of marketing for the grocery chain. Additionally, the Winn-Dixie Foundation and the Western Union Foundation have partnered to donate $200,000 to the American Red Cross International Response Fund. See here.

10. Seattle, Washington-based PCC Natural Markets (@PCC on Twitter.com), the largest natural foods retail cooperative in the United States, has made a $25,000 donation to the American Red Cross for the benefit of relief efforts in Haiti following the earthquake that has devastated that country. “The magnitude of food, health care and infrastructure support needed by victims of this disaster is overwhelming,” says Tracy Wolpert, PCC’s CEO. “We are pleased to contribute to the recovery efforts being coordinated by the American Red Cross." See more here.

11. United Kingdom-based Tesco, Britain's leading food retailer and the fourth-largest overall retailer in the world, has donated ~50,000 pounds ($81,645 in U.S. dollars) to the British Red Cross to be used for the agency's relief efforts in Haiti. See here. Tesco also owns and operates 135 Fresh & Easy Neighborhood Market food stores in California, Nevada and Arizona USA.

12. Kroger Co. announced today (01/19/2010)) it has donated $250,000 through its The Kroger Foundation to the American Red Cross for its Haiti relief efforts. Read more here.

The Kroger Co.-owned and Los Angeles, California-based Ralphs/Food 4 Less grocery chain announced today (01/14/2010) that their stores will accept donations from customers to support the Red Cross' Haitian earthquake relief efforts. The supermarket chains are establishing collection points in all of their Ralphs stores in Southern California, Food 4 Less stores in Southern California, Las Vegas, Illinois and Indiana, and Foods Co stores in Central and Northern California where customers can make cash donations. Donations will be accepted beginning today through January 30, 2010 with all funds collected going directly to the American Red Cross for its Haitian earthquake relief efforts. More here.

Additionally, Kroger Co.-0wned chains Dillons, Fred Meyer, Fry’s, King Soopers, QFC and Smith’s Food & Drug are all conducting in-store collection drives similar to what its Ralphs/Food 4 Less chain is doing., Kroger C0. also announced today (01/19/2010) all of its stores have thus far raised $600,000 in donations for the Red Cross, and that the company expects the total donations to be more than $1 million by the time the drives are completed. The $600,000 in customer contributions is in addition to the $250,000 donation Kroger made to the Red Cross.

13. North Carolina-based supermarket chain Harris Tweeter Inc. is donating $25,000 to the American Red Cross for the organizations Haiti relief efforts. Additionally, the grocery chain has launched a chain-wide fundraising drive to aid victims of the earthquake in Haiti. The grocer is selling $1 and $5 earthquake relief cards to customers at all of its 194 stores. The cards can be purchased through Jan. 31. Harris Teeter says customers donated more than $66,784 during the first day of the campaign. More here.

14. The eastern U.S.-based Stop & Shop Supermarket chain announced today that along with its sister supermarkets it will donate $100,000 to the American Red Cross International Response Fund. Additionally, beginning on Saturday, January, 16th and continuing through January 31st, it will be collecting donations in all stores and corporate offices for the Victims of the Haiti earthquake on behalf of the American Red Cross International Response Fund. More here.

15. The Rite Aid drug chain announced today that it's making a $50,000 donation through its Rite Aid Foundation to the American Red Cross International Response Fund to help the victims, families and communities affected by the earthquake in Haiti. The retailer also announced that it will launch a customer and associate fundraising program next week to aid earthquake relief efforts. Customers will be able to donate funds by purchasing $1 disaster relief certificates at any Rite Aid store across the United States. Rite Aid sells a selection of food, grocery and related packaged goods products in its stores. More here.

16. Walgreens, the largest drug chain in the U.S., announced today it's donating $100,000 to the American Red Cross in response to the devastating 7.0 magnitude earthquake that struck Haiti this Tuesday. In addition, the retailer will also match employee donations–dollar for dollar–up to $50,000. Further, Walgreens is providing non-perishable food, water and medical supplies to the University of Miami Global Institute for Community Health and Development which has set up clinics and triage units on the streets of Port-au-Prince, the largest city in Haiti, just miles from the epicenter of the quake. Walgreens stores in the Miami area are also taking donations for local Red Cross relief efforts on the ground in Port-au-Prince. Walgreens sells a selection of packaged and perishable foods, grocery products and related goods in its 7,159 drug stores, which are located in all 50 U.S. states. More here.

01/21/2010 Walgreens said today that just days into offering customers the option to make donations to Haiti disaster relief efforts at its registers, its stores across the country have collected more than $1 million. Contributions are helping the American Red Cross Haiti Relief and Development Fund send much needed assistance and aid to those affected by last week’s earthquake. Walgreens stores will continue taking customer donations through the end of the month. More here.

17. Modesto, California-based Save Mart Supermarkets has launched a fundraising drive in all 259 of its Save Mart; SMart Foods, Lucky and FoodMaxx banner stores in Northern California and California's Central Valley region for Haiti relief. The grocer's chainwide fund drive runs until February 1, 2010.

18. Natural and organic food retailer Whole Foods Market Inc. announced today that its 289 stores in the U.S., Canada and the United Kingdom have set up an easy way for shoppers to make donations to help the people of Haiti who have been devastated by the recent earthquake. Shoppers can give any amount at the checkouts at its 289 stores to directly support several different relief organizations, the grocer said today. In addition, the company has created a special “Haitian Fund” to support Whole Foods Market Team Members who have been affected by the earthquake. “We have many Team Members from Haiti, and together we are supporting them by taking these steps,” said Walter Robb, co-president and chief operating officer at Whole Foods Market. “We’re also setting up donation boxes in employee areas in stores, facilities and offices.” More here.

01/20/2010: Whole Foods Market, Inc. announced today that its customers at 289 stores in the U.S., Canada and the U.K. have donated $1 million to several relief efforts in Haiti since January 14. Additionally, through its Whole Planet Foundation, Whole Foods Market said today it is doubling its original commitment to now provide $1 million to its on-the-ground microlending partner in Haiti, Fonkoze. More here.

Here are two examples of what all or most of the 289 Whole Foods Market stores are doing: (1) The Whole Foods Market store in West Hollywood, California [ here on Facebook] is collecting donations to help provide medical aid to survivors of the earthquake in Haiti. All donations will go to the organization AmeriCares to aid it in its work in Haiti. AmeriCares is a non-profit global health and disaster relief aid organization, which delivers medicines, medical supplies and aid to people in crisis around the world. (2) The Whole Foods Market store in Walnut Creek, California [here and here] has started a 'Haiti Earthquake Fund Relief Drive' in the store. Here's how they describe it: Please join us in our efforts to help the people of Haiti by making a donation today! Simply tell your cashier which amount ($2, $5, $10) you would like to add to your bill. All donations will go directly to The American Red Cross Earthquake Relief for Haiti... Thank you.

19. Two-store Jacksonville, Florida-based independent natural and organic foods grocer Native Sun Natural Foods Market has launched a customer fundraising drive in its stores to aid the victims of the earthquake in Haiti. The retailer has set up cash donation boxes at every checkstand in its two locations (11030 Bay Meadows Road and 10000 San Jose Blvd in Jacksonville). Customers paying with a credit or debit card can also donate by asking their cashier to add a $1 or $5 donation to their total purchase, the natural grocer says. Collections will be taken through Jan. 31. More here.

20. The Sacramento, California-based Raley's Family of Fine Foods supermarket chain has launched an in-store fund drive for Haiti relief efforts. "Customers can give to Haitian earthquake relief during their stop at the grocery store, and know that 100% of their donations are going directly to the International Response Fund through the American Red Cross to help the devastated area," Raley's said. The chain has set up checkstand collection boxes in all its 134 Raley’s, Bel Air, Nob Hill Foods and Food Source banner stores in Northern California. The checkstand donation program runs January 16 through February 13, 2010. Raley's is paying for all administrative costs, it says, and 100% of the donations will go directly to the International Response Fund through the American Red Cross to help the devastated area. More here.

21. Family-owned Portland, Oregon-based grocer New Seasons Market has launched a checkstand-based fundraising campaign for the victims of the earthquake in Haiti in its nine Oregon stores. All donations collected in the stores will be donated to MercyCorps, a non-profit organization that has launched a major aid effort in Haiti. Learn more about the organization here. New Seasons Market also announced today (January 16) that it will match dollar-for-dollar the first $10,000 of donations made by customers in its stores.

22. The St. Louis, Missouri-based Dierbergs supermarket chain is conducting a checkout donation fundraiser in all 24 of its stores in the state. Shoppers can have whatever amount of money donated to Haiti relief efforts by simply adding it (rounding up) to their grocery bill total at checkout. All donations go to the American Red Cross. More here and here.

23. Omaha, Nebraska-based Baker's Supermarkets, which is owned by Kroger Co., has teamed up with the local television station, KETV, in Omaha to raise money for the American Red Cross' relief efforts for Hiati. Shoppers can make donations at the checkstands in all the the chain's stores. Customers can either make a cash donation or “round-up” their grocery bills as they go through the check-out. The fundraiser started on January 15 and runs until January 30, 2010. More here and here.

24. 180-store supermarket chain Giant Food of Landover, Md. today (January 15, 2010) announced that along with its sister supermarkets, it will donate $100,000 to the American Red Cross International Response Fund. In addition, beginning Saturday, January 16 and continuing through January 31, Giant Food of Landover, Md. will collect donations in all 180 of its stores in Virginia, Maryland, Delaware, and the District of Columbia, and in its corporate offices for the victims of the Haiti earthquake on behalf of the American Red Cross International Response Fund. More here.

25. Family-owned 153-store Arizona USA supermarket chain Bashas' started a checkout-based donation campaign today in all of its stores in the state. Bashas' operates stores under the Bashas,' Food City, AJ's Fine Foods, Dine Markets and Sportsman's banners in Arizona. From the grocery chains BashasNews Twitter site January 15, 2010: 'Donate to the Haiti Relief Fund at any Bashas', AJ's or Food City statewide. 100% given directly to the American Red Cross relief efforts. More here and here.

26. Beverage and food retail giant Starbucks, which also produces, markets and sells natural and specialty foods products, just announced on Twitter (January 17) that it's donating $1 million via its Starbucks Foundation on to the American Red Cross to assist the agency in its relief efforts in Haiti. Here's Starbucks' (@Starbucks on Twitter) Tweet this evening: We're devastated by the destruction in Haiti. To help, the Starbucks Foundation is donating $1 million dollars to the American @RedCross.

In addition, today (January 18) Starbucks says it is committing additional support and funding to the growing international relief effort in Haiti. Starting today, participating Starbucks stores in the U.S. and Canada will enable customers to make monetary donations at store registers, with no purchase necessary, to benefit the American and Canadian Red Cross organizations for a limited time, says chairman and CEO Howard Schultz. More here.

As part of the in-store fundraising effort, Starbucks has teamed up with musician Wyclef Jean, who is a native of Haiti, to produce a video about the fundraising campaign at Starbucks. View the video here: http://tinyurl.com/y954eb2

27. North Carolina-based natural grocery chain Earth Fare has pledged to make donations to two non-profit oranizations - Partners in Health and the (former Presidents) Clinton-Bush Haiti Fund. In addition, the natural grocer has made a post on its company Blog encouraging customers and others to make a donation to four organizations (including the two it is donating to) it says that based on its own research will ensure your donation reaches the people in need. More here.

28. Kroger Co.-owned supermarket chain Smith's Food & Drug in Nevada has teamed up with the American Red Cross to accept donations for international relief in response to the earthquake in Haiti. Starting today (January 18) through Jan. 30, customers of Smith's Food & Drug can make a donation to the American Red Cross by simply adding any amount to their checkout purchase. All funds collected will directly benefit Red Cross International relief efforts in Haiti to provide food, water, shelter, medical supplies and other assistance, according to Marsha Gilford, Smith's vice president public affairs. More here.

29. Family-owned, New York based supermarket chain Wegmans has donated $100,000 through its The Wegman Family Charitable Foundation to the American Red Cross International Response Fund Haiti Relief. In addition, Wegmans is accepting customer donations for Haiti relief at the checkstands in all 75 of its stores in New York, Pennsylvania, New Jersey, Virginia, and Maryland. The in-store program runs through Saturday, January 23. Customers may donate any amount, and 100% of their donations will go to the American Red Cross International Response Fund Haiti Relief which provides funding for sending relief supplies, mobilizing relief workers, and providing financial resources, according to Jo Natale, Wegmans' director of media relations. More here.

30. The Virgina-based Ukrop's supermarket chain is partnering with First Bank to help support American Red Cross Haiti relief efforts. Beginning on Saturday, Jan. 16, 2010, and running until January 30, 2010, the supermarket chain is accepting shopper contributions at all 28 of its Ukrop’s supermarket and Joe’s Market store locations in Virginia. First Market Bank locations in the state also are accepting donations. Ukrop’s and First Market Bank will match the amount donated by customers up to $50,000, a Ukrop's spokesperson says. More here and here.

Food/grocery/beverage makers-marketers

1. Beverage giant Coca-Cola has made a $1 million cash donation to the earthquake relief efforts in Haiti. Link: http://tinyurl.com/ycv89pw

2. Kellogg Company, makers and marketers of numerous food brands, including some in the natural and organic foods space, has donated $250,000. Kellogg is also matching any donations its employees make to the earthquake relief efforts on a dollar-for-dollar basis. Link: http://tinyurl.com/yc9skvh.

3. Kraft Foods, which makes and markets natural and organic foods brands in addition to its extensive portfolio of conventional food products, has donated $25,000 to the efforts to assist the victims of the earthquake in Haiti. See here

4. Nestle Waters North America, the bottled water division of food and beverage giant Nestle, has donated $1 million worth of bottled water which is being shipped to Haiti. Link: http://tinyurl.com/yhfktkg.

5. Food and beverage company Pepsi has donated $1 million to Haiti relief efforts through its Pepsico Foundation. Additionally, Pepsi is shipping truckloads of bottled water, Gatorade and food items from its Quaker Oats food division to Haiti. Link: http://tinyurl.com/ydmjmbu.

6. Food company General Mills is donating $250,000 to earthquake relief in Haiti through its General Mills Foundation. The $250,000 pledge includes a $100,000 donation to the American Red Cross International Response Fund and a $150,000 donation to CARE International for long-term rebuilding efforts. See here. Among General Mills' extensive consumer packaged goods brand portfolio include natural and organic food brands Cascadian Farm, Muir Glen and Nature Valley.

7. US-based global food company ConAgra is donating $100,000 via its CanAgra Foods Foundation to the International Red Cross Relief Fund for its efforts to aid the victims of the 7.0 magnitude earthquake in Haiti. See here. The $100,000 donation designated specifically for Haiti is in addition to overall major funding the food company gives to the Red Cross. In 1998, the ConAgra Foods Foundation became a founding member of the American Red Cross Annual Disaster Giving Program, and, in 2005, it pledged an additional $1 million to the cause, to be contributed over five years.

8. Global food, grocery and consumer packaged goods company Unilever is donating $500,000 to the victims of Tuesday's devastating earthquake in Haiti, through its global partnership with the United Nations World Food Programme (WFP). See here. In addition to its monetary donation, Unilever says it's encouraging its employees worldwide to contribute to disaster relief efforts. Additionally, the company says it's preparing product donations to help meet the needs of those affected by the earthquake. Unilever's extensive portfolio of brands includes the popular Hellman's/Best Foods mayonnaise and Knorr specialty foods brand.

9. Dr. Pepper Company, the parent company of the Dr. Pepper/Snapple Beverage Group, has made a $100,000 donation to Haiti relief efforts. More here.

10 Drinks company Diageo Plc has donated 45,000 pounds of food and emergency supplies to the earthquake victims in Haiti. Diageo's specially commissioned 727 aircraft departed on January 15 from Miami with the 45,000 pounds of food and supplies aboard, the comapny said. More here.

11. Tyson Foods is matching employee donations up to $100,000 for Haiti relief efforts. The contributions will go to the Salvation Army, which has personnel on-site and is preparing one million ready-to-eat meals to send to Haiti. Tyson also is exploring ways to provide in-kind relief to accountable organizations providing assistance in Haiti.

12. Hormel Foods is matching employee donations up to $25,000 for relief efforts, with all contributions going to the American Red Cross. In addition to its main line foods business, Hormel has a substancial specialty and natural foods division. More here.

13. Cargill is making an initial corporate donation of $50,000 to long-time Cargill partners CARE and the World Food Programme. In Minneapolis, Cargill volunteers at the company's headquarters will be packaging 20,000 meals on Jan. 18 for the nonprofit Kids Against Hunger, which will be sent directly to people in Haiti; Cargill volunteers will be packaging an additional 30,000 meals over the next month.

Specialty and natural foods-specific food companies

Note: Let us know what you are doing in terms of donations, fundraising, ect to assist the relief efforts for the people of Haiti and the groups helping in the country in the aftermath of the earthquake. You can let us know using the comments box at the end of this post - or at our Twitter Feed at www.twitter.com/NSFoodsMemo. We want to know what you're doing - and add you the our list - regardless of company size or size the effort.

Others (wholesalers, brokers, co-operatives, trade associations, ect.)

1. Cooperative Development Foundation raising money to rebuild Haitian cooperatives. http://ow.ly/WxoY.

2. Coinstar, Inc. today (January 16, 2010) announced that more than 15,000 Coinstar centers in the U.S. have been enabled to support victims of the devastating Haitian earthquake that occurred earlier this week. A special U.S. Fund for UNICEF code, 5556, has been added to Coinstar Centers in participating locations allowing individuals to help the millions of children and families struggling to survive the aftermath of the Haiti earthquake. Coinstar centers are those machines you see that turn your change into currency. Many of the machines are located in supermarkets and discount stores in the U.S. Click here for full and additional details.

3. The Dairy Farmers of America, a cooperative representing more than 18,000 dairy farmer producer-members in the United States, is sending 54,000 cans of its “Sports Shake” dairy-based energy drink to Hiati for distribution by relief workers there. More here and here. The cooperative produces and markets value-added, milk-based products like its "Sports Shake," along with its other business activities.

4. Wine and spirits distribution company Southern Wine and Spirits is matching employee donations for Haiti relief up to a total of $100,000.

5. The National Association for the Specialty Foods Trade (NASFT), the U.S.-based trade association for the specialty foods industry - specialty foods manufactures-marketers, retailers and related companies - is encouraging its exhibitors and members to continue their long tradition of assisting people in need by responding to the humanitarian crisis in the aftermath of the earthquake in Haiti,” says Ann Daw, president of NASFT.

NASFT is currently holding its annual winter specialty foods trade show in San Francisco, California. The show runs through Tuesday, January 19.

The specialty foods association is encouraging its members and others in the $60 billion specialty food industry to support relief efforts in Haiti. Reports are stating that donations of money are the best way to help, the association president says.

In Addition, Ms. Daw says the Winter Fancy Food Show plans to keep its commitment to donate more than 100,000 pounds of specialty food and beverages to San Francisco Bay Area residents in need. The donation will be made at the close of the trade event on Tuesday, Jan. 19. For the second year, NASFT has been working with Feed the Hungry, an international hunger relief organization, to organize the donation and deploy the food to a network of local anti-hunger programs. More here.

[Note: If you're a food-grocery retailer, food company or related food and grocery industry business of any size that's doing any type of fundraising or making a donation for Haiti relief but aren't mentioned in our list, let us know using the comments box below. We will then add you and your efforts to our list. Readers: if you know of any such companies helping but don't see them on our list, please do the same - just tell us using the comments box and we will add them to our list. Thanks.]

Retail Memo: Newest Texas 'Newflower Farmers Market,' Which Sprouted From Parent 'Sunflower Farmers Market,' Blooms in Dallas, Texas

What's a "Newflower?"

Well, for purposes of this piece, it's a seedling that sprouts from a Sunflower, in this case Boulder, Colorado-based Sunflower Farmers Market, the fast-growing, fighting tiger chain of natural foods grocery stores founded and run by Mike Gilliland, who's first crack at the natural foods retailing game was Wild Oats Markets, which he founded in Boulder and ran for many years, and which today exists only as a now near-fully integrated part of Austin, Texas-based Whole Foods Market, Inc., which acquired Wild Oats in 2007 and finally gained full control of it on March 6 of this year, when it reached a settlement agreement with the U.S. Federal Trade Commission (FTC) over the regulator's nearly two year antitrust legal challenge against the acquisition. [See a linked bibliography on FTC v. Whole Foods here: Retail Memo: David Wales, Who Headed Up the FTC's Nearly Two Year Legal Challenge Against Whole Foods' Acquisition of Wild Oats is Leaving the Agency.]

Sunflower Farmers Market opened its third and newest "Newflower Farmers Market," banner store in Dallas (pictured at top), deep in the heart of Whole Foods Market country in Texas on March 18, less than a month ago. Whole Foods was founded in the 1970's and is headquartered in Austin, Texas.

Sunflower Farmers Market opened its first Texas store in November 2008 in Plano. It's second "Newflower Farmers Market" store bloomed in February 2009 in Austin, Whole Foods Market's hometown.

Why "Newflower" and not "Sunflower" in Texas?

When Sunflower Farmers Market opened its first store in Plano, Texas in November 2008 it went by the Sunflower Farmers Market banner.

However, the name "Sunflower Market" for natural foods stores happens to be owned by the supermarket chain Supervalu, Inc. Supervalu used to operate a handful of natural foods markets in the Midwest named Sunflower Market. The chain closed the stores in 2008, ending what was a new format test for Supervalu. However, the company retained the ownership of the Sunflower brand as it pertains to retail natural foods stores. [See our January 25, 2008 piece here: Breaking Retail News: SuperValu, Inc. to Close Sunflower Market Stores.]

Boulder, Colorado-based Sunflower Farmers Market, which currently operates 23 stores has a license from Supervalu to use the "Sunflower" name in the states of Colorado, Arizona, New Mexico and Utah, where it operates 20 of its 23 stores.

But Sunflower Farmers Market doesn't have a license from Supervalu, Inc. to use the "Sunflower" name in Texas, as well as in numerous other U.S. states, hence why the natural foods grocer changed the name of its then one store in Texas to "Newflower," and why the newest two Texas stores, and the all the other stores in the Lone Star State it will open, are and will be named "Newflower."

There's been some speculation that the reason Sunflower Farmers Market is using the "Newflower" name for its Texas stores is because there is an independent heath foods store in Texas named Sunflower. That's true, there is such a store. But the reason for the Newflower rather than Sunflower Farmers Market banner in Texas is because of the Supervalu ownership of the Sunflower name in the state.

Newflower Market, Inc. (the business name Sunflower Farmers Market uses) has a license from Supervalu, Inc. for the name Sunflower for certain states, but not for Texas," Bennett Bertoli, vice president of real estate for Sunflower Farmers Market, told Natural~Specialty Foods Memo (NSFM).

Additionally, Supervalu, Inc. confirmed to us that is owns the Sunflower Market name and currently licenses it to Sunflower Farmers Market only in Colorado, Arizona, New Mexico and Utah at present.

Supervalu, Inc. has no plans to bring back its small-format Sunflower Market natural foods format or stores anytime in the near future. The stores were a test of a standalone natural foods retailing format for the supermarket chain, and Supervalu decided to close the stores and beef up the natural and organic foods item selections in its over 2,000 U.S. supermarkets, including creating a new natural and organic store brand, rather than go forward with opening more Sunflower stores and creating a natural foods store chain.

Although from a retail marketing standpoint being able to use the Sunflower Farmers Market name in Texas and in other new states the natural grocer enters is a plus, there is a certain delight in the fact it is using "Newflower" in its newest state and market -- Texas. After all, sunflowers are plants that shed lots of seeds. And for Sunflower Farmers Market, other than being able to use its flagship "Sunflower" banner in Texas, which it obviously wanted to do, "Newflower," which sprouted from the "Sunflower" banner, seems to us to be about the next best thing. And to take the metaphor to a further extreme, more Newflower Farmers Market stores will "bloom" in Texas over the next couple years.

Dallas Newflower Farmers Market blooms

The grand opening on March 18 of the Dallas "Newflower Farmers Marke"t store, which is located at 1800 North Henderson Avenue at Lewis Street in the city, was jam-packed. The Sunflower-Newflower format (the store formats are the same, just the names are different) focuses on offering natural and organic groceries and fresh foods at discount prices. In fact, it's slogan is "Serious Food...Silly Prices."

Dallas residents aware of the discount pricing focus of the stores, along with hearing about it via the pre-Dallas store opening press attention and advertising in the city, turned out in large numbers for the store's grand opening, many with reusable shopping bags in hand, looking for natural and organic food and grocery bargains.

Newflower didn't let the shoppers down. The natural grocer offered hot grand opening deals in every department of the store. Sunflower-Newflower puts a major emphasis on offering fresh produce at everyday low prices, and the Dallas store's produce department was packed with opening day shoppers grabbing up cart fulls of low-priced fruits and vegetables.

The store's grand opening began at 6:30am with a free breakfast served in the store's parking lot to opening day early birds courtesy of the natural grocer.

The Dallas "Newflower Farmers Marke"t store's doors were opened at 7am on March 18. And the first 200 shoppers to enter the store and make a purchase were given a nice surprise -- each was presented with a free reusable shopping bag filled with $50 worth of free groceries courtesy of the Newflower store team.

Day-long grand opening activities included lots of food sampling throughout the store, a free beef bbq and even free chair massages for the bargain hunting grand opening day shoppers.

Sunflower-Newflower founder and CEO Mike Gilliland, who attends every new store grand opening, was at the Dallas store event on March 18, spotted throughout the store, and often in the produce department, which some say is his favorite part of the stores.

Sunflower Farmers Market founder and CEO Mike Gilliland stationed in the Dallas "Newflower Farmers Market" store's produce department on grand opening day. The word is that the produce department is the grocer's favorite of all. In fact, a Dallas Newflower store employee says that on the March 18 grand opening day that the CEO, who also bagged customers grocery as part of the opening, kept running off from the store front end to spend more time in the produce department.

Never the shy entrepreneur and grocer, Gillian said at the grand opening: " We're thrilled to bring our grocery store concept to Dallas, especially with today’s hard economic times. Newflower is the most cost-effective grocery choice, by offering fresh produce and all-natural meats from local vendors at down-home prices. We make healthy cooking easy, with in-store recipe cards, nutritional programs and the lowest prices around."

The Sunflower-Newflower markets are a bit of what we call a hybrid natural foods store, reminiscent of what Gilliland did with the Henry's (Southern California) and Sun Harvest (Texas) banners when he was at Wild Oats and the banners were a part of the chain. By this we mean they aren't orthodox natural-organic foods stores. The stores feature more mainstream-type and specialty items, along with natural and organic products.

Whole Foods Market, Inc. sold off the 35 Henry's and Sun Harvest stores in Southern California and Texas to Los Angeles-based Smart & Final shortly after acquiring Wild Oats in 2007. Gilliland had left Wild Oats long before the Whole Foods acquisition.

The format

The Sunflower-Newflower stores are no frills markets in terms of their design; attractive but basic. This allows the natural grocer to have less overhead, which allows it to achieve cost savings, and in-turn offer natural and organic food and grocery items at generally everyday lower prices than Whole Foods market and most supermarket chains do.

In a sense, Gilliland and team are attempting a natural-organic foods retail natural-organic category killer format, while at the same time trying to make sure sure the markets are both destination as well as neighborhood-oriented markets. The format seems to be working so far in all three regards, from our observations and analysis.

The new Dallas "Newflower Farmers Market" store also has a number of "green" features, according to the retailer. These include: energy efficient light fixtures, the use of recycled and refurbished equipment, cases and fixtures whenever possible, and cash registers that use double sided receipts to reduce paper waste by 40%.

The front of the store also features a skylight-style awning designed to let natural light into the front of the store, as the photograph at the very top of this piece shows.

One of the fighting tigers

Natural~Specialty Foods Memo (NSFM) has termed Colorado-based Sunflower Farmers Market one of what we call the three fighting tiger natural grocery chains. The other two fighting tigers are Arizona-based Sprouts Farmers Market and Colorado-based Natural Grocers.

All three of the Western U.S.-based natural grocers are fast-growing, and all three fear not to take on Whole Foods Market head-to-head in various markets, hence the fighting tiger name. All three, for example, are taking on or plan to take on Whole Foods right in its very own backyard of Texas, as they are in Colorado, Arizona, Southern California (Sprouts only so far there), New Mexico and Utah.

All three of the fighting tigers are using a similar, no frills everyday low-price formula as well, although each does so in its own unique way. It's not an accident that Whole Foods is focusing much more on value and pricing these days in its stores. The competition from these three fast growing natural grocery chains, along with the bad economy, has and is forcing Whole Foods to become much more price competitive, both on everyday prices and in its promotions. And Whole Foods is doing so.

Competition good

This competition, along with the competition from supermarkets and discounters that are getting deeper and deeper into the natural and organic foods categories, is good for the industry overall because it will lead to a greater democratization of healthy, natural and organic foods.

The better the prices on the category items the more consumers can buy them, changing the industry from a niche (and some might say even elitist) enterprise to one aimed more at the masses. That's good for retailers and suppliers as well. More shoppers equals more sales. And more sales equals more efficiencies, which translates into higher profits.

That's a prescription both Dr. Natural and Dr. Organic would love to write.

Below are photographs from the grand opening of the new Dallas Newflower Farmers Market that sprouted in Dallas, Texas on March 18, 2009:

Shoppers check out and get "checked out" at the Dallas "Newflower Farmers Market" store on grand opening day, March 18, 2009.

The produce department is a central departmental feature in the Sunflower-Newflower stores. Although the stores average about 15,000 -to- 25,000 thousand square feet, the produce department in the stores is much larger than an average store of that size would have. This is by design. Sunflower-Newflower prices both conventional and organic fresh produce at low everyday prices. This serves not only as a way to draw shoppers to the store but helps grow market basket sizes in the stores as well. Notice the no frills, farmers' market-style design of the produce department above in the new Dallas Newflower store. Doing so provides cost savings which allows for the everyday low produce pricing practice. It obviously also fits in with the chain's overall theme and name.

Inside the Newflower Farmers Market store that opened in Dallas, Texas on March 19, 2009. Notice the basic, no frills product refrigerated cases and the painted cement floors. This is part of the chain's no frills store design which allows it to offer natural and organic products at lower everyday prices than many of its competitors. The focus is on the the product and its price rather than on the store's design. The balloon the happy little girl is holding were given out to children, along with other treats, all day at the store's March 19 grand opening event. The balloon is doing a great job of holding her attention so that mom can concentrate on her shopping.

Below is a selection of related, past stories and posts from NSFM:

~March 12, 2009: Retail Memo: Whole Foods Market is Selling Brand 'Wild Oats'- We Offer Three Retailers We Suggest Could Benefit From Buying the Brand

~December 6, 2008: Retail Memo: Fast-Growing and Scrappy Sunflower Farmers Market Ventures Deep in the Heart of (Whole Foods Country) Texas

~October 27, 2008: Retail Memo: Sprouts Farmers Market Store Number Eight 'Sprouts' in Texas; Deep in the Heart of Whole Foods Market Country

~October 21, 2008: Retail Memo: Natural Grocers Joining Sunflower Farmers Market in Opening First Stores in Whole Foods Market's Home City of Austin, Texas USA

~October 21, 2008: Retail Memo: H-E-B Set to Open 127,900 Square Foot Hybrid Mega-Store in Houston, Texas Suburb; Miles and Aisles of Organic and Premium Delights

~August 15, 2008: Retail Memo: 'Business Week' Discovers Sunflower Farmers Market, Just As Many Shoppers Are Doing Daily

~June 19, 2008: Retail Memo: Two Food Retailing Chains (Among the Growing Legions) Who Fear Not the Whole Foods Market, Inc.-Wild Oats Juggernaut

~July 8, 2008: Retail Memo: Former Raley's CEO Michael Teel and Partner Developing New Prepared Foods, Natural-Specialty Foods Chain in Sacramento, California

~May 18, 2008: Small Format Food Retailing Special Report: Raising (the stakes in) Arizona: Wal-Mart On-Track to Open First Marketside Stores in Arizona This Summer

~May 13, 2008: Small Format Food Retailing Special Report: Sprout's Farmers Market Gets $22 Million in New Financing; Will 'Sprout' 100 New Stores Over Next 5 Years

~April 29, 2008: Independent Grocer Memo: Utah's 75 Year Old Harmons Combats the Big Chains With Low-Prices; Gets Ready For Whole Foods' By Going Upscale & Natural

~February 24, 2008: Retail Memo: The Whole Foods Mrkt., Inc. as Monopolist Fallacy: How Sprouts Farmers Mrkts. and Others Are Growing Into the Heart of Whole Foods Country

~December 20, 2007: Retail Memo: Natural-Born Category Killers

[You can follow Natural~Specialty Foods Memo (NSFM) on Twitter.com at www.twitter.com/nsfoodsmemo.]

Store Brand - Private Label Memo: Store Brand Organic Products Gaining Prestege With Consumers Says New Study of What Shoppers Are Discussing Online

Retailer Store Brands: Special Report

The introduction and aggressive marketing of high-quality retailer store brand organic products is leading to a change in consumer perceptions in a positive direction, according to a soon to be released research report called the J.D. Power & Associates Private Label Industry Report.

The report is from J.D. Power & Associates Web Intellegence Division, which conducts content analysis research using information from a variety of online sites and sources as a way to guage consumer attitudes and perceptions. Most people know J.D. Power for its industry ranking of automobile quality. However, it's a full service research firm which also focuses on consumer package goods in addition to other consumer products research.

Janet Eden-Harris, vice president of J.D. Power and Associates Web Intelligence Division, which is based in Westlake Village, California, offered a preview of the firm's research into consumer attitudes of store brand organic products this week at the IRI (Information Resources, Inc.) Summit in Las Vegas, Nevada.

She said the J.D. Power Web-based research project shows that consumer attitudes about many store brands have shifted in the last couple years. Rather than has has been the case in the past, in which generally store brands, including organics, have been considered by consumers to be of lower-quality, with a low-price focus (including poor packaging quality), private label brands, particularly store brand organics, are now being thought of as unique and as having quality commensurate with that of traditional manufacturer-marketer brands.

"It's clear that consumers have begun to discard the idea that private label brands are of lower quality than traditional brands, which provides an opportunity for retailers to differentiate themselves with high-quality, reasonably priced store brands," Ms. Eden-Harris said in her presentation at the IRI conference.

The firm's report analyzed about 50,000 spontaneous conversations between March, 2008 and March, 2009 in various Blogs and online message and review boards that mentioned and discussed store brand/private label products from a variety of retailers, according to Ms. Eden-Harris.

Retailers with one-half of 1 percent or more of all discussions during the year are included in the report, she said.

The research report is designed to provide insight to retailers on what drives consumers to purchase their private label brands, as well as to help consumer packaged goods manufacturers develop strategies for differentiating and marketing their brands.

Ms. Eden-Harris said in her presentation at the conference that the complete study and its results will be released in April.

Below are a few highlights of the firm's report regarding private label or store brand organic products from Janet Eden-Harris' presentation at the IRI Summit:

>The report finds that the amount of online conversation about private label products has increased steadily during the past year, with volume peaking during the fall of 2008 as the economic crisis was unfolding.

>Organic store brand pricing is a strong motivator for consumers. But the quality and flavor of private label organic products drive the highest levels of positive sentiment, according to the Web-based content analysis study.

> Store brand food products from Safeway, Trader Joe's and Whole Foods garner particularly high levels of positive consumer recommendations, compared with other private label brands, and are perceived as being particularly healthful and flavorful.

>Positive consumer sentiment for store brand food items, especially organics, is higher than it is for non-food products such as diapers, paper products and cleaning supplies. The report's conclusion: This suggests that these products are perceived by consumers as commodities, purchased for their lower cost rather than as a favored brand in their own right.

In her presentation, Ms. Eden-Harris said the improved perception of store brand organic products doesn't mean opportunity has to be lost by brand manufacturers' and marketers.

"While retailers continue to gain ground with their private label products, there is still enormous opportunity for consumer packaged goods manufacturers," she said. "Innovation is still a big growth driver, and CPG companies still lead in that regard. New and differentiated products that are priced to value will win market share."

We agree with that conclusion since at least in "phase one" of store brand organic product development most of the retailer brand products have been versions of products already produced and marketed by brand manufacturers' and marketers. In fact, retailers like Safeway Stores with its O' Organics brand used sales data from its in-house natural-specialty foods department to decide which items to create under the private-label organics brand.

Additionally, most retailers rely on traditional manufacturers not only to produce their store brands but in many cases to offer advice and suggestions on private label product development.

However, we're now seeing what we call "phase two" of retailer brand organic product development in which select retailers like Safeway, Kroger, Wal-Mart, Trader Joe's (TJ's has always been a "phase two" natural-organic product developer and innovator), Target, Whole Foods, Costco and a few others are innovating and actually creating some products under their respective natural and organic store brands that don't exist under manufacturer brands in the retail marketplace.

In our analysis though food company manufacturers and marketers, particularly in the natural and organic segment, continue to be the innovators when it comes to new product creation and development. Retailers still tend to be followers rather than brand innovators overall in the categories.

J.D. Power's Web Intelligence Division analyzes consumer behavior online by using proprietary Natural Language Processing and machine-learning algorithms to dissect the who, what and why of online opinion, offering in-depth insights for some of the world's leading brands, according to Ms. Eden-Harris. It's a form of content and opinion analysis based on what consumers are commenting and opining on on the Web.

The purpose of the Web-based content and attitude analysis research is to glean what consumers are saying online as a way of better understanding consumer behavior, attitudes, opinions and trends.

With so many consumers now using online product review sites, Blogs, chat forums and social networking sites like Twitter and Facebook, we think such research is now essential, along with more traditional methods, in order to better understand consumer attitudes in the food, grocery and consumer products space.

In fact, Natural~Specialty Foods Memo (NSFM) uses our own form of Web-based content analysis often to spot, analyze and write about consumer behavior and trends based on information gleaned from search engines, social networking sites, online review sites and message boards and Blogs.

Using the Web to better understand consumer behavior and attitudes will become even more important sense so many consumers are using the Web to search for products, retailers and related information, along with reviewing products at online review boards, and generally increasingly using the Web as an integral part of overall consumer and shopper behavior.

Below is a linked selection of past stories from Natural~Specialty Foods Memo (NSFM) on and directly related to the retailer store brands topic:

~March 12, 2009: Retail Memo: Whole Foods Market is Selling Brand 'Wild Oats'- We Offer Three Retailers We Suggest Could Benefit From Buying the Brand

~January 31, 2009: Store Brands - Private Label Memo: Smart & Final-Owned Henry's Farmers Market Preparing to Debut New Natural & Organic 'Sun Harvest' Store Brand

~August 24, 2008: Marketing Memo: Store Brands 2.0: Better Store Brands and Brand and Shopper-Marketing Changing How Food Retailers Sell Their Own Brands

~August 6, 2008: Marketing Memo: Safeway's Challenge: Going From Store Brand Marketer to Consumer Brand Marketer With its O' Organics and Eating Right Brands

~April 28, 2008: Marketing Memo: Safeway Stores, Inc. to Market its 'O' Organics' and 'Eating Right' Organic and Healthy Brands to Other Retailers in U.S. and Globally

~April 28, 2008: Retail Memo: Safeway CEO Burd Says Shoppers Buying Store Brands Over National Brands By As Much As Six -to- One in it's North American Supermarkets

~June 4, 2008: Marketing Memo: Ingredients For 'Free Media' Marketing Success: Safeway Stores Finds Them With Announcement of its New 'Eating Right For Kids' Line

~May 9, 2008: Retail Marketing Memo: Safeway Uses Mother's Day Holiday to Launch its New 'mom to mom' Store Brand Baby Products Line in its Stores

~December 27, 2007: Marketing Memo: Safeway's O' Organics Brand in Asia

~December 23, 2007: Safeway's O' Organics Brand: Part Duex

~December 21, 2007: Friday Fishwrap: Safeway's O' Organics Brand

~January 8, 2008: Media Memo: Safeway's O' Organics Brand In Asia

~February 6, 2008: Retail Memo: Raley's Attempts to Come 'Full-Circle' With New Private-Label Natural and Organic Products' Brand

~April 7, 2008: Retail Memo: Wal-Mart, Target, Drug Chains Further Blur the Natural~Specialty Foods' Retail Class of Trade Lines

~October 11, 2007: Thursday Talking Points Memo:
Category Marketing Dominance: How Whole Foods Market, Inc. Became King of the Supernatural Retail Grocery Category and Why it Will Continue to Reign For Some Time

~February 11, 2008: Retail Trends Memo: UK's Asda Pioneering the 'Store-Grown' and 'Store-Raised' Niche: Will Raise its Own Kobe-Style Beef and Grow its Own Truffles

~December 9, 2008: Organics Category Memo: Wither Organics? Organic Food & Grocery Category Sales Down; But Double-Digit Growth Still Possible With Mass Market Lift

~November 28, 2008: Consumer Behavior Memo USA: 'Life, Liberty and the Pursuit of Frugality' - America's New Consumer Frugality

~November 28, 2008: Retail Memo: Target Corp. Launching Major Expansion of Food and Grocery Products in its Target Discount Format Stores

~May 3, 2008: Retail Memo: Loblaw's New President Charts A Course to Return the Grocer to Its 'Glory Days' of Being Canada's 'Best' as Well as Biggest Food Retailer

~December 12, 2007: Mid-Week Marketing Memo: Tesco's Fresh & Easy

~January 28, 2008: Monday Marketing Memo: Cost-Plus World Market Restructuring: We Think Specialty Foods and Beverages Can be the Key to a Successful Repositioning

~July 25, 2008: Retail Field Report Memo: Specialty Retailer Cost Plus World Market Is At A Serious Crossroads: We Offer Analysis and Suggestions For Moving Forward

~January 30, 2008: Retail Memo: A Peak Inside a New Trader Joe's Store

[Reader Note: You can follow Natural~Specialty Foods Memo (NSFM) on Twitter.com at www.twitter.com/nsfoodsmemo.]

Retail Memo: Whole Foods Market Opens New Store in Santa Cruz, California Today ... And There's Plenty of Competition

Pictured above is the famous "Giant Dipper" roller coaster at the Santa Cruz Beach Boardwalk in Santa Cruz, California. Built in 1924 it is one of the oldest roller coasters of its kind in America. With Whole Foods Market opening its first store in Santa Cruz today, we suggest there will be a natural foods retailing competitive roller coaster ride soon hitting the city.

Fresh from reaching its settlement agreement with the U.S. Federal Trade Commission (FTC) on March 6, Whole Foods Market, Inc. today opened a 31,500 square foot natural foods supermarket in the coastal Northern California city of Santa Cruz, home to the famous Santa Cruz Beach Boardwalk, and what's considered one of the most attractive campuses of the University of California, the University of California, Santa Cruz, the campus with the unique mascot -- Sammy the Banana Slug.

The new store is the first for Whole Foods Market in the city of Santa Cruz, which has a very high natural-organic foods shopper demographic. Northern California, which is one of the U.S. regions in which Whole Foods Market has the greatest number of stores, is one of the best market regions for the natural grocery chain in the country.

An interesting aspect of Whole Foods' opening its new natural foods supermarket in Santa Cruz so soon after its March 6 settlement agreement with the FTC regarding the regulatory agency's near 20-month legal battle to overturn the 2007 acquisition by Whole Foods Market, Inc. of Wild Oats Markets, Inc., is that Santa Cruz, a city of about 100,000 residents, is a very competitive natural foods retailing town.

For example, in the natural foods retailing class of trade, locally-based New Leaf Community Markets has long been the leader in Santa Cruz. In fact, New Leaf just opened on March 11 a brand new nearly 18,000 square foot natural foods market on the westside of the city. The New Leaf store is about three miles from the new Whole Foods store, which is located on the city's east side. The new store replaces an older New Leaf market on the westside. There's also a New Leaf store in downtown Santa Cruz. There are six New Leaf units in the region.

Another popular independent natural foods market in Santa Cruz is Staff of Life Natural Foods Market, which has operated in the city for many years and has a loyal following.

There's also a Trader Joe's natural and specialty grocery store in Santa Cruz. With its extensive selection of natural, organic and specialty products, Trader Joe's draws many of the same customers that Whole Foods Market stores do.

Safeway Stores, Inc. has a supermarket in Santa Cruz. The grocery chain, which is based in Northern California's San Francisco Bay Area, is in the process of building one of its brand new "Lifestyle" format supermarkets in the coastal community.

In addition to being filled with conventional food and grocery products, the new Safeway in Santa Cruz will be stocked full with natural, organic and premium food and grocery items, including the chain's popular "O' Organics" organic products brand and its "Eating Right" healthy foods brand. The two Safeway brands combined did about $1 billion in gross sales in Safeway's 1,750 stores in the U.S. and Canada in 2008.

The new Santa Cruz "Lifestyle" format Safeway also will feature a fresh, prepared foods-deli department and in-store special features like a fresh nut bar, which Safeway includes in its new "Lifestyle" stores. The new wave "Lifestyle" format stores often look in many cases very similar in design to a larger, new Whole Foods store.

Sacramento, California-based Raley's (130 stores, $3.5 billion in annual sales) has one of its Nob Hill banner supermarkets in Santa Cruz. Raley's is a major player in natural and organic foods retailing and the Santa Cruz Nob Hill store offers a strong selection of natural and organic products, reflecting Raley's competitiveness in the categories.

Add to this competitive mix Shoppers Corner, a longtime Santa Cruz independent supermarket that offers both conventional groceries and natural, organic and specialty foods. The grocer "stacks product high" and "sells it cheap," often offering natural and organic items for less than all its competitors.

In other words, Santa Cruz is a perfect laboratory to test the FTC's (now historic) antitrust argument that a combined Whole Foods-Wild Oats is monopolistic. As we argued throughout the legal case, in today's natural-organic foods retailing world in the U.S., Whole Foods competes against not only natural foods stores, but also certain supermarket chains (like Safeway) and hybrid format retailers (like Trader Joe's).

Therefore, since Santa Cruz has three high volume and competitive natural foods markets -- the two New Leaf units and Staff of Life -- along with Safeway and Trader Joe's, plus Shoppers Corner, it's our analysis that Whole Foods will have its competition cut out for it in the coastal city. It won't be a cakewalk on the boardwalk for Whole Foods Market in Santa Cruz.

By the same token, Whole Foods will inject a massive dose of competition into the food and grocery retailing business in Santa Cruz. The natural foods supermarket chain is going after the city's consumers aggressively with discount pricing, hot promotional deals, special events and other merchandising and marketing schemes designed to fill the store's aisles.

But the local guys will fight back. That's why the market was right, and why the FTC ultimately gave Whole Foods a sweet settlement deal. The competition abounds and is always changing and growing.

[Suggested reading: Jondi Gumz, a staff writer for the Santa Cruz Sentinel newspaper, has a comprehensive and insightful piece published in the paper today about Whole Foods' opening of its new store in Santa Cruz, and the competitive aspects having the new big league player in town might have on the city's existing retailers. Read the story here. There's also a color slideshow of photogrpahs of the new store at the link.]

Retail Memo: The FTC-Whole Foods Market Settlement Agreement Looks Much Like Our January 'Blueprint-Template For A Settlement Deal' Proposal

The FTC - Whole Foods Market, Inc. Settlement Agreement

The four members (their normally are five but the FTC is currently one short) of the U.S. Federal Trade Commission (FTC) voted unanimously on the settlement deal with Whole Foods Market, Inc., announced on Friday, March 6, ending the nearly 20-month legal battle waged by the FTC to overturn the 2007 friendly acquisition by Whole Foods Market of Wild Oats Markets, Inc. [Read the details of the settlement agreement in our March 6 piece here: Daily Memo: It's A Done Deal: Whole Foods Market and the FTC Reach A Settlement Agreement On Wild Oats' Acquisition Antitrust Challenge.]

Additionally, the 4 -to- 0 unanimous vote in favor of a settlement by the FTC's Commissioners came just eight days after President Obama named the only Democrat on the FTC, Jon Leibowitz, as its new Chairman, and just a few days after Chairman Leibowitz officially assumed the duties of FTC Commission Chairman.

[Read: Daily Memo: Whole Foods Market - FTC Settlement Deal Watch - Countdown to March 6, And: Daily Memo: Whole Foods Market - FTC Settlement Deal Watch - 9 Days to March 6. And: Retail Memo - Breaking: FTC Commissioner Jon Leibowitz Odds On Favorite to Be Named Chairman; Positive Development For Whole Foods' Settlement Talks.]

Below is a link to the press release issued by the FTC on Friday, March 6, announcing the settlement deal ending its antitrust legal challenge to Whole Foods Market's 2007 acquisition of Wild Oats:

[Link: FTC Consent Order Settles Charges that Whole Foods’ Acquisition of Rival Wild Oats was Anticompetitive.]

Below is the key quote from FTC Commissioner Jon Leibowitz in the March 6 press release regarding why the federal regulatory agency responsible for antitrust enforcement and consumer protection decided to reach and agree to a settlement with Whole Foods Market, Inc., despite for 20 months saying it's goal was to overturn the acquisition in order to preserve competition in what it called the "premium natural and organic retailing segment (PNOS) in a number of U.S. markets:

"As a result of this settlement, American consumers will see more choices and lower prices for organic foods,” said FTC Chairman Jon Leibowitz. “It allows the FTC to shift resources to other important matters and Whole Foods to move on with its business."

Although we've previously suggested the two parties should reach a settlement agreement in numerous pieces beginning some time ago, Natural~Specialty Foods Memo (NSFM) formally called for the FTC and Whole Foods Market, Inc. to reach a settlement on the legal case in this January 29, 2009 piece, where we focused the argument on the need for a settlement to be reached: Retail Memo - Breaking: Whole Foods Makes Settlement Offer to FTC; FTC Halts Action For 5 Days; Natural~Specialty Foods Memo Calls For A Settlement.

In that call for a settlement, we said achieving a settlement is important in part so that the FTC can move on to more important matters, including finding real antitrust cases to challenge, and so that Whole Foods Market can get back to what it does: merchandising and selling natural and organic food and grocery products.

In other words, FTC Chairman Leibowitz basically says in the March 6 press release what we said in our January call for a settlement, as well as in a number of stories prior to that.

In our January 29 piece, [Retail Memo - Breaking: Whole Foods Makes Settlement Offer to FTC; FTC Halts Action For 5 Days; Natural~Specialty Foods Memo Calls For A Settlement], we also offered a settlement blueprint or template for the FTC and Whole Foods. The basis of the settlement blueprint comes from the reporting, writing about and analysis we've been offering on the deal and antitrust challenge since the summer of 2007.

Below is a part of what we offered in the January piece:

A settlement blueprint or template

"In other words, the universe of stores we are talking about regarding a post-merger, combined Whole Foods-Wild Oats isn't much more than 100 nationally throughout the U.S. in these 29 markets where the FTC deems Whole Foods Market, Inc. a PNOS segment monopoly.

Our argument since the summer of 2007 has been that a post-merger, combined Whole Foods-Wild Oats isn't a monopoly. [You can read a recent story in which we made our argument as to why that's the case at the link here: Retail Memo: Natural-Organic Foods and U.S. Retail Marketplace Realities; Why the FTC's Case Against the Whole Foods-Wild Oats Merger is Pure Folly.]

However, looking at FTC v. Whole Foods Market, Inc. today from a completely practical standpoint, we see no reason why the FTC and the natural grocer should not be able to achieve a settlement. After all, we are talking about a universe of just slightly more than 100 stores that the FTC is saying a "PNOS" category monopolist (Whole Foods) makes. We're also talking about just 29 specific U.S. markets. These two key facts need to be the starting point for negotiation, we suggest.

The FTC and Whole Foods need to look at each of these 29 markets and the number of stores the combined Whole Foods-Wild Oats has in each of the markets. Both parties then need to do an independent competitive analysis on each of these markets, including in the analysis not just natural foods class of trade retailers but also food retailers that are hybrid natural-organic-specialty supermarkets. These include retailers like Gelson's and Bristol Farms in Southern California, Raley's and Andronico's Markets in Northern California, The Fresh Market (chain), which has stores in the south, Midwest, Mid Atlantic and eastern regions, Wegmans in the east, Haggen Foods in the Pacific Northwest, and the numerous other natural-organic-specialty "hybrid" chains that fit this category in the 29 markets designated as monopolist by the FTC.

Once this real competitive analysis is done in the 29 U.S. markets, the FTC and Whole Foods then need to agree on Whole Foods' closing an agreed upon number of those 100-plus former Wild Oats stores in each of the respective markets. There still might remain 29 of those markets after the independent competitive analysis work is done, which is something that can be completed in a matter of a few days. But there also could be fewer than 29 remaining after the analysis.

The burden in the FTC's administrative process is on Whole Foods in reaching a settlement, that's why the natural foods grocery chain reached out to the FTC and submitted a settlement offer. In return the FTC suspended action on the case for five days. We think thus far that's a positive spirit of cooperation.

As all lawyers and negotiators know, first time settlement offers are seldom accepted. Instead they tend to be the opening entree to get settlement talks started. Whole Foods has served that opening entree with its offer. The FTC has responded in kind with the temporary halt of legal activity. Both moves are good negotiation openers. After all, another thing all good negotiators know is that the best negotiations come when both sides give a little something right at the start." [Read the entire story here.]

What we suggested is essentially the framework the FTC used in arriving at the settlement deal.

The FTC required (and the natural grocer agreed) Whole Foods Market, Inc. to put up for sale 32 stores -- 13 stores (12 former Wild Oats units and one existing Whole Foods unit) currently in operation and 19 stores that already have been closed, some by Wild Oats before the Whole Foods Market acquisition, the others closed by Whole Foods post-acquisition. [Read the details, including a list of the stores to be sold, here.]

Additionally, the FTC required Whole Foods to put the Wild Oats brand and associated intellectual property up for sale. This is really nothing to Whole Foods since if it thought the Wild Oats brand had value to the company it would be using it in some way. Instead, Whole Foods has intentionally shelved the Wild Oats brand. Now perhaps it can even make a few bucks from selling it.

[Of course, in the dynamic and interesting world of food retailing anything can happen. Perhaps Mike Gilliland, the founder of Wild Oats and now founder and CEO of fast-growing Boulder, Colorado-based Sunflower Farmers Market, will buy the brand from Whole Foods and bring back the Wild Oats name in the form of a chain of natural foods stores bearing the banner. For example, Sunflower is opening stores in Whole Foods' hometown market of Texas. However, because of what likely is a trademark issue with a natural foods store in Texas that uses the "Sunflower" name, the natural grocer has renamed its thus far handful of Texas' stores "Newflower." Wouldn't it just be ironic if Gilliland bought the Wild Oats brand from Whole Foods Market, Inc. and instead changed the name of the Texas stores to "Wild Oats"? It's intellectual property and retail brand marketing food for thought. And you read it here first.]

So, in a nutshell, the FTC seems to have used a very similar process to the one offered in our blueprint-template to arrive at a settlement deal; the key element of such a settlement agreement being, as we suggested, having Whole Foods agree to sell some selected stores in return for the antitrust regulator dropping its legal action, so that both parties could move on to doing what they should respectively be doing, antitrust enforcement and consumer protection for the FTC, and selling natural-organic groceries for Whole Foods Market.

We think the settlement is a good one for Whole Foods.

Reader Resource: Below are links to all of the FTC-filed information on the settlement deal with Whole Foods Market, Inc.:

>Agreement Containing Consent Orders
>Decision and Order [Public Record Version]
>Order To Maintain Assets
>Analysis of Agreement Containing Consent Orders To Aid Public Comment
>Commission Letter Approving the Divestiture Trustee Agreement
>Divestiture Trustee Agreement [Public Record Version] [Appendices B, D, and E Redacted]
>Amended Part 3 Administrative Complaint [Issued on September 8, 2008]
>News Release
>Order Withdrawing Matter From Adjudication

Daily Memo: Whole Foods Market - FTC Settlement Deal Watch - 9 Days to March 6

There was no announcement at the end of business today, Thursday, February 26, 2009, regarding a settlement deal between the U.S. Federal Trade Commission (FTC) and Whole Foods Market, Inc. on the FTC's legal challenge to overturn Whole Foods' 2007 friendly acquisition of Wild Oats Market, Inc.

The FTC halted its legal proceedings in its ongoing case against the deal until March 6 while the federal government agency responsible for antitrust and consumer protection issues and the Austin, Texas-based natural foods grocery chain hold talks designed to negotiate a settlement to the FTC's now about 18-month challenge to the merger.

While the clock is ticking towards March 6, the FTC could extend its legal proceedings halt beyond that date if it feels negotiations are promising but that all that's needed is more time to arrive at a settlement deal.

However, the FTC has an April 6 date set for an administrative trial in which an agency-appointed Administrative Law Judge will hear arguments from both parties on the acquisition-merger and at the end of the proceeding make a decision on the status of the combined Whole Foods-Wild Oats. Whole Foods has virtually completed integrating all but a handful of the Wild Oats stores into its culture and corporate operations, rebranding all but about 6-10 of the former Wild Oats stores that it hasn't sold or closed (about 100) to the Whole Foods brand.

[Read our first column of the countdown to March 6 here: Daily Memo: Whole Foods Market - FTC Settlement Deal Watch - 10 Days to March 6. The link also includes (at the bottom of the post) a compete bibliography of our recent coverage and analysis of FTC v. Whole Foods Market, Inc. from December 2008 to the present, as well as containing archival links to past stories from NSFM on the topic and issue going as far back as the summer of 2007.]

FTC. V. Whole Foods Market: News and Notes

A wise old Motley Fool:

The financial and investment publication "Motley Fool" appears to agree with Natural~Specialty Foods Memo's (NSFM) analysis and argument, which we've been making since August, 2007, that the FTC's 18-month challenge to Whole Foods Market, Inc.'s friendly $565 million acquisition of Wild Oats is folly.

Here's what Motley Fool writer Alyce Lomax wrote about the FTC. v. Whole Foods case in a general piece in the online publication on February 17, 2009 about government regulation and federal regulatory agencies like the FTC: "Regulators vs. reality: Meanwhile, I’ll bet we can all think of examples when regulators have done things that simply didn’t seem to make sense. How about the Federal Trade Commission’s bizarre and ongoing witch hunt against Whole Foods Market (Nasdaq: WFMI)? Whole Foods’ CEO John Mackey contended that the FTC asked for more documentation from his company when it was trying to acquire Wild Oats than it demanded when ExxonMobil (Nasdaq: XOM) hooked up. Meanwhile, the whole thing was absurd, since Whole Foods faces competition from everybody from Wal-Mart to Trader Joe’s."

Sounds about right to us.

[You can read the full piece, "The Trouble With Regulation, here.]

Whole Foods and its competitors:

The FTC's central antitrust argument regarding a combined Whole Foods-Wild Oats is that Whole Foods Market, Inc. now constitutes a monopoly in various U.S. markets in what the regulator calls the "premium natural and organic retailing segment (PNOS)." We argue this is wrong because the FTC-created category is non market reality-based and doesn't depict how natural and organic foods are retailed in the U.S. today.

That reality is that Whole Foods has plenty of competitors -- from fast-growing natural foods chains and independents to discounters like Trader Joe's, mega-discounters getting deeper into the categories like Wal-Mart, Costco, Target and others, mega-supermarket chains like Safeway Stores, Inc. with its Lifestyle format (1,750 stores in the U.S. and Canada), Kroger Co. and Supervalue, along with scores of big regional chains like Publix in Florida, H-E-B in Texas, Wegmans in New York, Raley's in Northern California and dozens more, topped off by scores of multi-store upscale independents and even more single store independents, all deep in natural and organic products merchandising and sales.

Three of those fast-growing natural foods class of trade chains agree with us based on their behavior. Those natural grocers -- Colorado-based Sunflower Farmers Market, Colorado-based Natural Grocers and Arizona-based Sprouts Farmers Market -- all are opening stores in Whole Foods Market stronghold markets throughout the Western U.S., taking the competitive battle right to the leader. These states include Colorado, New Mexico, Arizona, California -- and now Texas, where Whole Foods is headquartered, and where some might think it owns the natural and organic foods retailing market.

Not so. Sunflower Farmers Market just opened its latest Texas natural foods market right in Austin, Whole Foods' home town. It has, and is building, additional stores throughout the state. Sunflower now calls its Texas stores Newflower. The grocer hasn't confirmed it but the change from Sunflower in Texas (and it's just in Texas) to Newflower could be because there is a long time health foods store in the state that uses the Sunflower name.

Sprouts and Natural Grocers also have stores in Texas and plan more. Sprouts announced this week in fact it has just signed a lease for another Texas natural foods market. Sunflower-Newflower will be announcing shortly leases for two more new store sites in Texas, according to one of our sources.

Would these three fast-growing natural foods retailers really challenge Whole Foods on its home turf if they thought it was a powerful monopoly natural products retailer? Of course not. They are doing so for the complete opposite reason: They believe the Whole Foods Market business model and format is vulnerable to their smaller, fewer-frills, everyday low price formats, which is something all three of these Western U.S.-based chains have in common.
Maybe the FTC should just watch the market -- and the behaviors of Whole Foods Market's competitors? Just a thought.

FTC Chairman watch: Tomorrow?

On Tuesday in this piece [Retail Memo - Breaking: FTC Commissioner Jon Leibowitz Odds On Favorite to Be Named Chairman; Positive Development For Whole Foods' Settlement Talks] we wrote that current FTC Commissioner Jon Leibowitz, a Democrat, appears to be a lock as the new chairman of the regulatory agency. We said President Obama was likely to make the announcement before the end of this week. We are told by our sources the President will do so tomorrow. But President Obama is a rather busy President these days, so it might not happen on Friday. However, we continue to believe Leibowitz is the man.

Lanny Davis: The Zelig of Washington D.C.

Speaking of busy people, Washington D.C. lawyer (partner in the Orrick law firm) and Democratic Party major player Lanny Davis, who is the lead outside counsel and head lobbyist for Whole Foods Market, Inc., as well as the lawyer heading up the current settlement talks with the FTC for the natural grocery chain, (there are three Washington, D.C. law firms retained on the case) in its battle against the FTC., still has time not only to handle other clients for his firm, and to appear as an analyst at least once a week on CNN or Fox News (along with a few other projects), but he's also doing some Op Ed writing this week.

Davis, who was a fraternity brother at Yale College with former President George W. Bush, went to Yale Law School with former First Lady, Senator from New York and now Secretary of State Hillary Clinton, and has been best friends with her since then (including being one of her top advisers in her run for President last year), as well as serving as Special Counsel to Bill Clinton when he was President, is a volunteer with the Israel Project, an American nonprofit group that describes itself as being organized to get out facts about Israel to the media.

As part of that fact-communicating project, Lanny Davis wrote an opinion piece titled, "A Nuclear Iran; Just Suppose..." in Monday's (January 21) edition of the conservative Washington, D.C. daily newspaper The Washington Times. You might find his opinion and position on the issue interesting. [Click here to read the opinion piece.]