Whole Foods Market
Encyclopedia
Supermarket
A supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...
chain
Chain store
Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses. In retail, dining and many service categories, chain businesses...
based in Austin
Austin, Texas
Austin is the capital city of the U.S. state of :Texas and the seat of Travis County. Located in Central Texas on the eastern edge of the American Southwest, it is the fourth-largest city in Texas and the 14th most populous city in the United States. It was the third-fastest-growing large city in...
, Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
which emphasizes "natural and organic
Organic food
Organic foods are foods that are produced using methods that do not involve modern synthetic inputs such as synthetic pesticides and chemical fertilizers, do not contain genetically modified organisms, and are not processed using irradiation, industrial solvents, or chemical food additives.For the...
products." The company has been ranked among the most socially responsible businesses and placed third on the U.S. Environmental Protection Agency's list of Top 25 Green Power Partners.
Early years
In 1978, 25-year-old college dropout John MackeyJohn Mackey (businessman)
John Mackey is an American businessman. He is the CEO of Whole Foods Market which he had co-founded in 1980. Named the Ernst & Young Entrepreneur of the Year in 2003, Mackey is a strong supporter of free market economics...
and his 21-year-old girlfriend Rene Lawson, borrowed $45,000 from family and friends to open a small natural foods store called SaferWay in Austin, Texas
Austin, Texas
Austin is the capital city of the U.S. state of :Texas and the seat of Travis County. Located in Central Texas on the eastern edge of the American Southwest, it is the fourth-largest city in Texas and the 14th most populous city in the United States. It was the third-fastest-growing large city in...
(the name being a spoof of Safeway
Safeway Inc.
Safeway Inc. , a Fortune 500 company, is North America's second largest supermarket chain after The Kroger Co., with, as of December 2010, 1,694 stores located throughout the western and central United States and western Canada. It also operates some stores in the Mid-Atlantic region of the Eastern...
). When the couple were evicted from their apartment for storing food products in it, they decided to live at the store. Because it was zoned for commercial use, there was no shower stall, so they bathed using a water hose attached to their dishwasher.
Two years later, John Mackey partnered with Craig Weller and Mark Skiles to merge SaferWay with their Clarksville Natural Grocery, resulting in the opening of the original Whole Foods Market on September 20, 1980. At 12500 square feet (1,161.3 m²) and with a staff of 19, the store was quite large in comparison to the standard health food store of the time.
The following Memorial Day
Memorial Day
Memorial Day is a United States federal holiday observed on the last Monday of May. Formerly known as Decoration Day, it originated after the American Civil War to commemorate the fallen Union soldiers of the Civil War...
, the most damaging flood in 70 years devastated Austin. Whole Foods' inventory was wiped out, and most of the equipment was damaged. The loss were approximately $400,000; Whole Foods Market had no insurance. Customers, neighbors, and staff pitched in to repair and clean up the damage. Creditors, vendors, and investors assisted in helping the store recover, reopening 28 days later.
Expansion
Palo Alto, California
Palo Alto is a California charter city located in the northwest corner of Santa Clara County, in the San Francisco Bay Area of California, United States. The city shares its borders with East Palo Alto, Mountain View, Los Altos, Los Altos Hills, Stanford, Portola Valley, and Menlo Park. It is...
. While opening new stores, the company fueled rapid growth by acquiring other natural foods chains throughout the 1990s: Wellspring Grocery of North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
, Bread & Circus of Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
and Rhode Island
Rhode Island
The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...
(banner retired in 2003), Mrs. Gooch’s Natural Foods Markets of Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
, Bread of Life of Northern California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, Fresh Fields Markets on the East Coast and in the Midwest, Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
Bread of Life stores, Detroit-area Merchant of Vino stores, and Nature’s Heartland of Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
. The company's 100th store was opened in Torrance, California
Torrance, California
Torrance is a city incorporated in 1921 and located in the South Bay region of Los Angeles County, California, United States. Torrance has of shore-front beaches on the Pacific Ocean, quieter and less well-known by tourists than others on the Santa Monica Bay, such as those of neighboring...
, in 1999.
The company started its third decade with additional acquisitions. The first was Natural Abilities in 2000, which did business as Food for Thought in Northern California
Northern California
Northern California is the northern portion of the U.S. state of California. The San Francisco Bay Area , and Sacramento as well as its metropolitan area are the main population centers...
. After the departure of then company president Chris Hitt and regional president Rich Cundiff,Southern California region, John Mackey promoted A.C. Gallo, president of the Northeast region and Walter Robb, president of the Northern California region to Co-COO and soon after added the titles of Co-President. This led to the promotion of three new regional presidents and a new era for the company. David Lannon became president of the Northeast region, Anthony Gilmore became president of the Southwest region, Ron Megehan became president of the Northern California region. In 2001, Whole Foods also moved into Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
. Later that year Ken Meyer became president of the newly formed South region and Whole Foods Market acquired the assets of Harry’s Farmers Market, which included three stores in Atlanta. In 2002, the company opened its first international store in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
, in Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
. Continuing its expansion, Select Fish of Seattle was acquired in 2003. In 2005, Whole Foods opened its 80000 square feet (7,432.2 m²) flagship store in downtown Austin
Downtown Austin
Downtown Austin is the central business district of Austin, Texas. Downtown is located on the north bank of the Colorado River. The approximate borders of Downtown include Lamar Boulevard to the west, 11th Street and sometimes Martin Luther King, Jr...
. The company's headquarters moved into offices above the store.
Whole Foods Market's expansion has increased the need for products and processing plants. In response, the company added its 365 Everyday Value product line and purchased Allegro Coffee Company in 1997. A seafood processing plant was opened in Atlanta in 2003, the year in which Whole Foods became United States' first national "certified organic" grocer.
, Whole Foods Market plans four stores in the state of Hawaii
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
. On Oahu
Oahu
Oahu or Oahu , known as "The Gathering Place", is the third largest of the Hawaiian Islands and most populous of the islands in the U.S. state of Hawaii. The state capital Honolulu is located on the southeast coast...
and in the City and County of Honolulu
Honolulu County, Hawaii
The City and County of Honolulu is a consolidated city–county located in the U.S. state of Hawaii. The municipality and county includes both the urban district of Honolulu and the rest of the island of Oahu, as well as several minor outlying islands, including all of the Northwestern Hawaiian...
, two of these are in development in Honolulu CDP, at Kāhala Mall
Kahala Mall
Kahala Mall is an enclosed shopping mall in Kāhala, Honolulu on the East Side of the island of Oahu. In addition to its service as a major shopping center, Kahala Mall also serves as a key stop on a number of TheBus routes...
in Kāhala and at Ward Village
Victoria Ward Centers
Ward Centers, formerly known as Victoria Ward Centers, is a major shopping complex of various shopping centers near Waikiki at Kaka'ako in Honolulu, Hawai'i...
in Kakaako
Kakaako
Kakaako is the name of a commercial and retail district of Honolulu, Hawaii between Ala Moana near Waikīkī to the east, downtown Honolulu and Honolulu Harbor to the west. Kakaako is situated along the southern shores of the island of Oahu....
.
United Kingdom
In 2004, Whole Foods Market entered the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
with the acquisition of seven Fresh & Wild stores. In June 2007, it opened its first full-size store, a total of 80000 sq ft (7,432.2 m²) on three levels, on the site of the old Barker's department store in Kensington High Street
Kensington High Street
Kensington High Street is the main shopping street in Kensington, west London. The area is identified in the London Plan as one of 35 major centres in Greater London....
, West London. Company executives claimed that as many as forty stores might eventually be opened throughout the United Kingdom.
However, by September 2008, in the wake of Whole Foods Market's financial troubles, Fresh & Wild had been reduced to four stores, all in London. The flagship Bristol
Bristol
Bristol is a city, unitary authority area and ceremonial county in South West England, with an estimated population of 433,100 for the unitary authority in 2009, and a surrounding Larger Urban Zone with an estimated 1,070,000 residents in 2007...
branch was closed because it had "not met profitability goals". In the year to 28 September 2008, the UK subsidiary made a £36M loss due to a large impairment charge of £27M and poor trading results. A first Scottish store was opened on November 16, 2011 in Giffnock, a suburb of Glasgow.
Acquisition of Wild Oats Markets and antitrust complaint
On February 21, 2007, Whole Foods Market, Inc. and Wild Oats Markets Inc.Wild Oats Markets
Wild Oats Markets was an operator of natural foods stores and farmers markets in North America. The stores offered dry grocery, meat, poultry, seafood, dairy, frozen, prepared foods, bakery, vitamins and supplements, health and body care, and household items. As of February 21, 2007, it operated...
announced the signing of a merger agreement under which Whole Foods Market, Inc. would acquire Wild Oats Markets Inc.’s outstanding common stock in a cash tender offer of $18.50 per share, or approximately $565 million based on fully diluted shares. Under the agreement, Whole Foods Market, Inc. would also assume Wild Oats Markets Inc.'s existing net debt totaling approximately $106 million as reported on September 30, 2006.
On June 27, 2007, the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
(FTC) issued an administrative complaint challenging Whole Foods Market, Inc.’s acquisition of Wild Oats Markets Inc. According to the complaint, the FTC believed that the proposed transaction would violate federal antitrust
Antitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
laws by eliminating the substantial competition between two close competitors in the operation of premium natural and organic supermarkets nationwide. The FTC contended that if the transaction were to proceed Whole Foods Market would have the ability to raise prices and reduce quality and services. Both Whole Foods Market and Wild Oats stated their intention to vigorously oppose the FTC’s complaint and a court hearing on the issue was scheduled for July 31 and August 1, 2007. Whole Foods Market CEO John Mackey took the unusual step of initiating a blog on the subject to explain his opposition to the FTC’s stance. Papers filed by the FTC revealed that for several years Mackey posted highly opinionated comments under the pseudonym "Rahodeb" on the Whole Foods Yahoo!
Yahoo!
Yahoo! Inc. is an American multinational internet corporation headquartered in Sunnyvale, California, United States. The company is perhaps best known for its web portal, search engine , Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Groups, Yahoo! Answers, advertising, online mapping ,...
investment message board, raising serious legal and ethical questions.
On August 23, 2007, the federal appeals court for the D.C. circuit
United States Court of Appeals for the District of Columbia Circuit
The United States Court of Appeals for the District of Columbia Circuit known informally as the D.C. Circuit, is the federal appellate court for the U.S. District Court for the District of Columbia. Appeals from the D.C. Circuit, as with all the U.S. Courts of Appeals, are heard on a...
refused to block the deal. The court cited increasing competition in the organic grocery business from traditional grocers like Safeway
Safeway Inc.
Safeway Inc. , a Fortune 500 company, is North America's second largest supermarket chain after The Kroger Co., with, as of December 2010, 1,694 stores located throughout the western and central United States and western Canada. It also operates some stores in the Mid-Atlantic region of the Eastern...
and Kroger
Kroger
The Kroger Co. is an American supermarket chain founded by Bernard Kroger in 1883 in Cincinnati, Ohio. It reported US$ 76.7 billion in sales during fiscal year 2009. It is the country's largest grocery store chain and its second-largest grocery retailer by volume and second-place general retailer...
as reasoning for allowing the deal. Whole Foods Market officially completed its buyout of Wild Oats on August 27, 2007. Whole Foods Market plans to upgrade and improve some Wild Oats locations before rebranding them to the "Whole Foods Market" name. Other Wild Oats locations will either be relocated or closed.
In October 2007, the company completed the sale of all 35 Henry's Farmers Market and Sun Harvest Market stores to a subsidiary of Los Angeles grocer Smart & Final
Smart & Final
Smart & Final is a chain of warehouse-style food-and-supply stores based in Commerce, California, which developed through a series of mergers and expansions. The oldest of the combined companies, Hellman-Haas Grocery, was founded in 1871. The company has expanded to over 250 stores in the Western...
Inc. for $166 million.
On October 2008, as part of the ongoing FTC antitrust investigation, Whole Foods Market subpoenaed detailed financial records, market studies, future strategic plans, and other information from New Seasons Market, a regional competitor based in the Portland area. CEO Brian Rohter expressed concern about handing sensitive information over to a direct competitor, and the company has filed a motion with the FTC to block the subpoena.
SEC investigation
John Mackey (businessman)
John Mackey is an American businessman. He is the CEO of Whole Foods Market which he had co-founded in 1980. Named the Ernst & Young Entrepreneur of the Year in 2003, Mackey is a strong supporter of free market economics...
, became the subject of an informal inquiry by the Securities and Exchange Commission, according to The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
. Mackey posted numerous messages on a Yahoo financial forum under the user name "rahodeb", according to a court document filed by the U.S. Federal Trade Commission and postings on Yahoo! The postings came to light during an FTC investigation of Whole Foods Market's planned takeover of Wild Oats Markets Inc. Mackey's messages painted a bright future for Whole Foods Market Inc., the largest U.S. natural and organic grocer, and downplayed the threat posed by competitors. While it isn’t clear that Mackey violated any laws in his postings, the issue has raised numerous legal questions. The newspaper also reported the SEC was likely to examine whether Mackey’s comments contradicted what the company previously said or were overly optimistic about the firm’s performance.
The SEC considered whether or not the CEO had selectively disclosed material corporate information, which could violate a securities law passed in 2000 (known as Regulation Fair Disclosure) designed to prevent executives from sharing information with favored clients or analysts. On July 17, 2007, Whole Foods Market stated that its board had formed an independent committee to investigate the postings. The SEC cleared Mackey of the charges on April 25, 2008.
California vs. Whole Foods
Reacting in part to a study released by the Organic Consumers AssociationOrganic Consumers Association
The Organic Consumers Association is a consumer protection and organic agriculture advocacy group based in Finland, Minnesota. It was formed in 1998 in the wake of the mass backlash by organic consumers against the U.S. Department of Agriculture's controversial proposed regulations for organic food...
(OCA) in March 2008, in addition based on their own testing, the Attorney General of California has filed a major lawsuit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
against personal care and household cleaning product companies whose products recently tested highest for the carcinogenic contaminant 1,4-Dioxane
1,4-Dioxane
1,4-Dioxane, often called dioxane because the other isomers of dioxane are rare, is a heterocyclic organic compound. It is a colorless liquid with a faint sweet odor similar to that of diethyl ether. It is classified as an ether. This colorless liquid is mainly used as a stabilizer for the solvent...
. The California state attorney general filed a lawsuit against cosmetic companies, including Whole Foods Market Inc., for allegedly selling natural body care and household cleaning products that tested high for a cancer-causing chemical, in violation of state law. California v. Avalon Natural Food Products, No. RG08389960 (Alameda Co., Calif., Super. Ct.). California’s state attorney general Jerry Brown
Jerry Brown
Edmund Gerald "Jerry" Brown, Jr. is an American politician. Brown served as the 34th Governor of California , and is currently serving as the 39th California Governor...
filed a lawsuit against Whole Foods Market Inc. for failing to label its cosmetic products containing 1,4-Dioxane. The suit was filed in Alameda County Superior Court on May 29, 2008. Under Proposition 65, companies must label products that contain chemicals known to the state of California to cause cancer. Each violation carries civil penalties as high as $2,500 a day. The lawsuit states: "Plaintiff alleges that each defendant has known since at least May 29, 2004 that the body washes and gels and liquid dish soaps contain 1,4-Dioxane and that persons using these products are exposed to 1,4-Dioxane." The suit names Austin-based Whole Foods Market Inc. as a defendant, which markets the 365 brand sold in the company's stores. In a statement, Whole Foods spokesperson Libba Letton said the company investigated the claims and does not believe "these products represent a health risk or are in excess of California's Proposition 65 Safe Harbor level for 1,4-dioxane." "These companies need to stop treating the inclusion of cancer causing chemicals in their products as 'business as usual' and reformulate before consumer confidence in the natural products and organics industry is permanently damaged," says consumer activist David Steinman
David Steinman
You may also be looking for David B. Steinman, builder of bridges.David Steinman is an environmentalist, journalist, consumer health advocate, publisher and author...
who conducted the OCA study and originally exposed the presence of 1,4-Dioxane in baby bubble bath products in his book Safe Trip to Eden.
E. coli
On August 8, 2008, Whole Foods Market announced a voluntary multi-state recall of the fresh ground beef it had sold between June 2 and August 6, 2008 after outbreaks of E. coli O157:H7Escherichia coli O157:H7
Escherichia coli O157:H7 is an enterohemorrhagic strain of the bacterium Escherichia coli and a cause of foodborne illness. Infection often leads to hemorrhagic diarrhea, and occasionally to kidney failure, especially in young children and elderly persons...
in Massachusetts and Pennsylvania were linked to Whole Foods Market stores. Whole Foods Market was informed that the beef in question had come from Coleman Natural Beef whose Nebraska Beef processing plant was previously subject to a nationwide recall for E. coli O157:H7 contamination. Although the illnesses linked to Whole Foods Market were reported in Massachusetts and Pennsylvania, the company broadened the voluntary recall to many other states as a cautionary measure.
Security and Loss Prevention
Whole Foods Market hires armed security personnel for retail locations, either directly or contracted through security companies. Some locations hire off-duty police officers for store security. Whole Foods Market hires third party security vendors to issue automatic civil demandsCivil Recovery Demands (Shoplifting)
Retailers in the 50 States of the United States have the authority under state laws, that have been passed within the past several decades to demand civil damages by letter notice from apprehended shoplifters. A conviction for shoplifting is not a prerequisite to the civil demand for damages by...
in case of shoplifting. There is a strict "no heroes policy" in effect, which prohibits store employees from directly interfering with shoplifters.
Historical financial highlights
- January 1992: Whole Foods goes public, trading shares on the NASDAQ Stock Market as WFMI.
- November 1993: WFMI stock splits 2 for 1.
- June 2001: WFMI stock splits 2 for 1.
- October 2001: Moody's upgrades WFMI debt ratings.
- May 2002: WFMI added to S&P MidCap 400 Index.
- December 2002: WFMI added to the NASDAQ-100 Index.
- January 2004: Whole Foods Market paid its first dividend ever, 15 cents on each share of the company's stock.
- November 2004: Board of Directors approves 27 percent increase in quarterly dividend to $0.19 per share.
- March 2005: WFMI joins the ranks of the Fortune 500Fortune 500The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
, entering the list for the first time at No. 479. - April 2005: Board of Directors approves 32 percent increase in quarterly dividend to $0.25 per share.
- November 2005: Board of Directors approves 20 percent increase in quarterly dividend to $0.30 per share and announces special $4.00-per-share dividend.
- December 2005: Whole Foods Market stock splits 2 for 1, the third stock split in the company’s history.
- November 2006: The company's salary cap was raised from 14 times the average pay of a full-time worker to 19 times the average pay. This is up from the original eight-times cap that was set in the late 80’s. Additionally, the company announced that CEO John Mackey will receive a salary of one dollar (started January 1, 2007), and will forgo any future stock option awards.
- November 2006: Whole Foods Market's stock dropped 18 percent after the company lowered its 2007 sales forecasts.
- August 2007: A federal judge cleared the way for Whole Foods to merge with its rival Wild Oats Markets Inc., discounting recent arguments that the reduced competition would lead to higher prices.
- March 2009: Federal judge orders the divestiture of Wild Oats Market as well as one of Whole Foods existing stores.
- December 2009: In a December 24, 2009 filing with the U.S. Securities and Exchange Commission, Co-founder and CEO John Mackey voluntarily gave up his chairmanship, a position he's held since Whole Foods' inception in 1978. John Mackey will still remain on the board of directors. The new chairman will be John Elstrott.
- May 2011: The stock symbol changed from WFMI to WFM.
Product quality
Food coloring
Food coloring is a substance, liquid or powder, that is added to food or drink to change its color. Food coloring is used both in commercial food production and in domestic cooking...
, sweeteners, preservatives, and many others as listed on their online "Unacceptable Food Ingredients" list. Whole Foods Market has also announced that it does not intend to sell meat or milk from cloned
Cloning
Cloning in biology is the process of producing similar populations of genetically identical individuals that occurs in nature when organisms such as bacteria, insects or plants reproduce asexually. Cloning in biotechnology refers to processes used to create copies of DNA fragments , cells , or...
animals or their offspring, even though the U.S. Food and Drug Administration
Food and Drug Administration
The Food and Drug Administration is an agency of the United States Department of Health and Human Services, one of the United States federal executive departments...
(FDA) has ruled them safe to eat.
The company also sells many USDA-certified organic foods and products that aim to be environmentally friendly and ecologically responsible. Stores do not carry foie gras
Foie gras
Foie gras ; French for "fat liver") is a food product made of the liver of a duck or goose that has been specially fattened. This fattening is typically achieved through gavage corn, according to French law, though outside of France it is occasionally produced using natural feeding...
or eggs from hens confined to battery cages due to animal cruelty concerns, as a result of successful advocacy by animal welfare groups. The Whole Foods Market website details the company's criteria for selling food, dietary supplements, and personal care products. According to CNN, the extent of Whole Foods Market's nutritional screening is it "doesn't carry any food containing trans fats or artificial coloring".
Allyn Jones, who is part of the Whole Body division of Whole Foods Markets insisted the company avoids brands "that were just using organic as a marketing gimmick." She added "Standards that apply on one side of the store do not apply on the other". "Products made using petroleum-derived and other synthetic or chemical ingredients, prohibited in organic foods, can be found among the organic shampoos and lotions made by Avalon, Nature's Gate, Jason Natural Cosmetics, Kiss My Face and other brands", said Urvashi Rangan, an environmental health scientist, who works for Consumer Reports
Consumer Reports
Consumer Reports is an American magazine published monthly by Consumers Union since 1936. It publishes reviews and comparisons of consumer products and services based on reporting and results from its in-house testing laboratory. It also publishes cleaning and general buying guides...
. Many personal care products using the word organic contain ingredients that do not exist in nature. The federal guidelines that regulate organic food labeling do not apply to cosmetics. A consumer group says the main ingredient in some brands, a hydrosol, mainly water, is used to inflate the organic content.
Whole Foods Market has been criticized that its products may not be as progressive as they are touted to be. Author Michael Pollan
Michael Pollan
Michael Pollan is an American author, journalist, activist, and professor of journalism at the UC Berkeley Graduate School of Journalism. A 2006 New York Times book review describes him as a "liberal foodie intellectual."...
has contended that the supermarket chain has done well in expanding the organic market, but has done so at the cost of local food
Local food
Local food or the local food movement is a "collaborative effort to build more locally based, self-reliant food economies - one in which sustainable food production, processing, distribution, and consumption is integrated to enhance the economic, environmental and social health of a particular...
s, regional producers, and distributors. Parts of the debate have taken place publicly through a series of letters between Pollan and Whole Foods Market CEO John Mackey.
Ronnie Cummins, national director of the United States Organic Consumers Association
Organic Consumers Association
The Organic Consumers Association is a consumer protection and organic agriculture advocacy group based in Finland, Minnesota. It was formed in 1998 in the wake of the mass backlash by organic consumers against the U.S. Department of Agriculture's controversial proposed regulations for organic food...
, said that Whole Foods Market simply uses the term natural as a marketing tool. Cummins concluded that "Whole Foods Market now is a big-box retailer – and it's much more concerned about competing with the other big boxes than issues of ethics and sustainability." Similarly, researcher Stacy Mitchell of the New Rules Project argues that the corporation's aggressive marketing of local food is more hype than substance. The company is known to ship large quantities of produce across state lines. For example, in 2008, the company put "Texas sweet onions" on special in its Northern California stores even though California is one of the biggest onion producers in the world.
In a Wall Street Journal article in August, 2009, John Mackey acknowledged that his company had lost touch with its natural food roots and would attempt to reconnect with the idea that health was affected by the quality of food consumed. He said "We sell a bunch of junk". He stated that the company would focus more on health education in its stores.
Whole Foods Women's Food Based multivitamin was tested by ConsumerLab.com
ConsumerLab.com
ConsumerLab.com is a provider of independent test results and information to help consumers and healthcare professionals evaluate health, wellness, and nutrition products. ConsumerLab.com was founded in 1999. It is subscription fee based....
in their Multivitamin and Multimineral Supplements Review of 38 of the leading multivitamin/multimineral products sold in the U.S. and Canada. This multivitamin passed ConsumerLab's test, which included testing of selected index elements, their ability to disintegrate in solution per United States Pharmacopeia
United States Pharmacopeia
The United States Pharmacopeia is the official pharmacopeia of the United States, published dually with the National Formulary as the USP-NF. The United States Pharmacopeial Convention is the nonprofit organization that owns the trademark and copyright to the USP-NF and publishes it every year...
guidelines, lead contamination threshold set in California Proposition 65, and meeting FDA labeling requirements.
Purchasing
Whole Trade Guarantee
In April 2007, Whole Foods Market launched the Whole Trade Guarantee, a purchasing initiative emphasizing ethics and social responsibility concerning products imported from the developing world. The criteria include fair prices for crops, environmentally sound practices, better wages and labor conditions for workers and premium product quality. Whole Foods will work with TransFair USATransfair USA
Fair Trade USA, formerly "TransFair USA" is a 501 non-profit organization.Founded in 1998, Fair Trade USA’s mission is to "enable sustainable development and community empowerment by cultivating a more equitable global trade model that benefits farmers, workers, consumers, industry and the earth"...
and the Rainforest Alliance
Rainforest Alliance
The Rainforest Alliance is a non-governmental organization with the published aims of working to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behavior. It is based in New York City, and has offices throughout the...
to ensure the transparency and integrity of the program. One percent of proceeds from Whole Trade certified products will go to the Whole Planet Foundation to support micro-loan programs in developing countries. The company’s goal is to have at least half of its imported products from these countries fully certified within ten years.
Environmental record
Whole Foods placed third on the U.S. Environmental Protection Agency’s list of the "Top 25 Green Power Partners". The company also received the EPA Green Power Award in 2004 and 2005 and Partner of the Year award in 2006 and 2007. The company plans on purchasing 458 gigawatt hours of wind energy credits. This will keep about 700 million pounds (300,000 metric tons) of carbon dioxide emissions out of the atmosphere. This is equivalent to taking 60,000 cars off the road or planting 90000 acres (364.2 km²) of trees.Stakeholder philosophy
- See also Labor relations
In 1985, Whole Foods Market created its "Declaration of Interdependence", which emphasizes a stakeholder
Stakeholder theory
The stakeholder theory is a theory of organizational management and business ethics that addresses morals and values in managing an organization. It was originally detailed by R...
philosophy. Walter Robb, Whole Foods Market co-President, details the company's core values: "The deepest core of Whole Foods, the heartbeat, if you will, is this mission, this stakeholder philosophy: customers first, then team members, balanced with what’s good for other stakeholders, such as shareholders, vendors, the community, and the environment. If I put our mission in simple terms, it would be, No. 1, to change the way the world eats, and No. 2, to create a workplace based on love and respect. We believe business should meet the needs of all the stakeholders, as opposed to operating it for shareholders." CEO John Mackey describes how the stakeholder philosophy combines with capitalism: "We've always been unique in that we have a stakeholder philosophy, and it continues to guide us," Mackey says. "The beauty, in my opinion, of capitalism is that it has a harmony of interests. All these stakeholders are important. It is important that the owners and workers cooperate together to provide value for the customer. That's what all business is about, and I'd say that's a beautiful thing."
Environmental involvement
In May 1999, Whole Foods Market joined the Marine Stewardship CouncilMarine Stewardship Council
The Marine Stewardship Council is an independent non-profit organization with an ecolabel and fishery certification programme. Fisheries that are assessed and meet the standard can use the MSC blue ecolabel. The MSC mission is to 'reward sustainable fishing practices’...
(MSC), a global independent, not-for-profit organization promoting sustainable fisheries
Sustainable fisheries
Sustainability in fisheries combines theoretical disciplines, such as the population dynamics of fisheries, with practical strategies, such as avoiding overfishing through techniques such as individual fishing quotas, curtailing destructive and illegal fishing practices by lobbying for appropriate...
and responsible fishing practices world-wide to help preserve fish stock
Fish stock
Fish stocks are subpopulations of a particular species of fish, for which intrinsic parameters are the only significant factors in determining population dynamics, while extrinsic factors are considered to be insignificant.-The stock concept:All species have geographic limits to their...
s for future generations. Whole Foods Market was one of the first American companies to partner with the Marine Stewardship Council, and continues to actively support its efforts in ensuring the sustainability of the oceans. The company first began selling MSC-certified seafood in 2000, and a growing selection of MSC-certified fish continues to be available.
In 2006, Whole Foods Market became the only Fortune 500 company to offset 100 percent of its energy cost with the purchase of wind power
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....
credits. A January 8, 2007, Environmental Protection Agency
United States Environmental Protection Agency
The U.S. Environmental Protection Agency is an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress...
(EPA) report listed Whole Foods Market as the second-highest purchaser of green power nationwide, citing its actions as helping drive the development of new renewable energy sources for electricity generation. The EPA report showed Whole Foods Market using 463.1 million kilowatt hours annually. It was covered, 100 percent net-wise, by its total electricity from biomass, geothermal, small-hydro, solar, and wind sources.
Eliminating plastic
On Earth DayEarth Day
Earth Day is a day that is intended to inspire awareness and appreciation for the Earth's natural environment. The name and concept of Earth Day was allegedly pioneered by John McConnell in 1969 at a UNESCO Conference in San Francisco. The first Proclamation of Earth Day was by San Francisco, the...
, April 22, 2008, Whole Foods Market eliminated the use of disposable plastic grocery bags company-wide. Customers can now choose between paper bags made from 100% recycled paper or from a selection of reusable bags. The company also began offering "Better Bags", a large and colorful grocery bag made primarily from recycled bottles. The move from the traditional paper/plastic system to environmentally friendly and reusable bags has been packaged as an initiative the company calls "BYOB – Bring Your Own Bag". The campaign is aimed at reducing pollution by eliminating plastic bags and reducing waste by encouraging bag reuse with "bag refunds" of 5-10 cents, depending on the store.
Public stance on healthcare by CEO John Mackey
In August 2009, Whole Foods CEO John Mackey wrote an editorial in the Wall Street Journal expressing his viewpoints on universal healthcare. "While we clearly need health-care reform, the last thing our country needs is a massive new health-care entitlement that will create hundreds of billions of dollars of new unfunded deficits and move us much closer to a government takeover of our health-care system," he wrote. He continued: "Many promoters of health-care reform believe that people have an intrinsic ethical right to health care—to equal access to doctors, medicines and hospitals. While all of us empathize with those who are sick, how can we say that all people have more of an intrinsic right to health care than they have to food or shelter?"Humane treatment of animals
In 2002, People for the Ethical Treatment of AnimalsPeople for the Ethical Treatment of Animals
People for the Ethical Treatment of Animals is an American animal rights organization based in Norfolk, Virginia, and led by Ingrid Newkirk, its international president. A non-profit corporation with 300 employees and two million members and supporters, it claims to be the largest animal rights...
(PETA) began petitioning Whole Foods to take steps to ensure the improvement of treatment of animals sold in the stores. In June 2003, members of PETA gathered in front of Whole Foods headquarters in Austin, Texas, to protest the company’s practice of purchasing duck liver (foie gras
Foie gras
Foie gras ; French for "fat liver") is a food product made of the liver of a duck or goose that has been specially fattened. This fattening is typically achieved through gavage corn, according to French law, though outside of France it is occasionally produced using natural feeding...
) obtained from factories in which workers force-feed large amounts of food to the ducks and remove the end of their bills to keep them from mutilating other ducks.
Whole Foods created the Animal Compassion Foundation in January 2005, a separate nonprofit organization, to help other producers evolve their practices to raise animals naturally and humanely. According to Whole Foods Natural Meat Quality Standards and Animal Compassionate Standards, pulling feathers from live ducks, bill trimming, bill heat treatment, toe punching, slitting the webs of the feet, and toe removal are all prohibited in the raising of ducks for Whole Foods Market. Any ducks treated in this manner, treated with antibiotics or antimicrobials, cloned, genetically modified, or not allowed medical treatment when necessary are to be removed from Whole Foods Market stock.
Whole Foods announced in June 2006 that it would stop selling live lobster
Lobster
Clawed lobsters comprise a family of large marine crustaceans. Highly prized as seafood, lobsters are economically important, and are often one of the most profitable commodities in coastal areas they populate.Though several groups of crustaceans are known as lobsters, the clawed lobsters are most...
s and crab
Crab
True crabs are decapod crustaceans of the infraorder Brachyura, which typically have a very short projecting "tail" , or where the reduced abdomen is entirely hidden under the thorax...
s, but in February 2007 made an exception for a new Portland, Maine
Portland, Maine
Portland is the largest city in Maine and is the county seat of Cumberland County. The 2010 city population was 66,194, growing 3 percent since the census of 2000...
store that is able to meet humane standards. The lobsters will be kept in private compartments instead of being piled on top of one another in a tank, and employees will use a device that gives them a 110-volt shock so that they are not boiled alive in a pot of water. Whole Foods will not be selling live lobsters at its other stores because they are not close enough to the lobster grounds. This decision has been criticized by some as damaging an important New England tradition and as removing people's connection to where their food actually comes from.
Despite Whole Foods' welfare standards, it has come under harsh criticism from abolitionist
Abolitionism (animal rights)
Abolitionism within the animal rights movement is the idea that focusing on animal welfare reform not only fails to challenge animal suffering, but may prolong it by making the exercise of property rights over animals appear acceptable. The abolitionists' objective is to secure a moral and legal...
vegans such as Gary L. Francione
Gary L. Francione
Gary Lawrence Francione is an American legal scholar. He is the Distinguished Professor of Law and Nicholas deB. Katzenbach Scholar of Law & Philosophy at Rutgers School of Law-Newark....
who view his company's policies as a betrayal of the animal rights
Animal rights
Animal rights, also known as animal liberation, is the idea that the most basic interests of non-human animals should be afforded the same consideration as the similar interests of human beings...
position.
Whole Foods Market commits to a policy of donating at least five percent of its annual net profits to charitable causes. These donations are accomplished in multiple ways. Each store has the authority to donate food, labor or dollars to local not-for-profit organizations. Individual stores also hold 5% Days approximately four times a year, during which they donate 5% of that day's net sales to a local or regional non-profit or educational organization.
In 2005, the company created two foundations designed to effect solutions to global problems. The Animal Compassion Foundation strives to improve the quality of life for farm animals and the Whole Planet Foundation works to combat poverty in rural communities around the world through microlending. In 2006, the company announced that it would be providing up to $10 million in low-interest loans to local producers. The Local Producer Loan Program provided its first loan in February 2007.
Toxins
Environmental Working Group
The Environmental Working Group is an American environmental organization that specializes in research and advocacy in the areas of toxic chemicals, agricultural subsidies, public lands, and corporate accountability...
and the Center for Environmental Health presented a notice of intent to file an anti-toxin lawsuit against salmon producers. This was in large part due to Whole Foods' involvement, including highlighting companies' failure to warn consumers the fish contained potentially dangerous levels of cancer causing chemicals known as PCBs.
In February 2006, Shareholders of Whole Foods filed a resolution asking Whole Foods to report toxic chemicals found in its products. Substances such as Bisphenol A
Bisphenol A
Bisphenol A is an organic compound with two phenol functional groups. It is used to make polycarbonate plastic and epoxy resins, along with other applications....
(BPA), found in products such as baby bottles and children’s cups, are controversial. While most manufacturers have dismissed the claims and have continued to use BPA, Whole Foods no longer sells baby bottles and children’s cups made with BPA.
In the wake of concern over the safety of seafood imports from China, on July 10, 2007, The Washington Post
The Washington Post
The Washington Post is Washington, D.C.'s largest newspaper and its oldest still-existing paper, founded in 1877. Located in the capital of the United States, The Post has a particular emphasis on national politics. D.C., Maryland, and Virginia editions are printed for daily circulation...
reported that Whole Foods imports a small amount of frozen shrimp from China, accounting for less than 2% of the company's total seafood sales. A Whole Foods spokesperson addressed the issue, saying "We're not concerned about the less than 2 percent. It's business as usual for us."
Criticism and controversy
Whole Foods has frequently been the subject of resistance or boycotts in response to proposed store locations.The corporation has also been criticized for its aggressive policy of promoting its own in house brands (e.g. 365) at the expense of smaller and/or local independent ones.
Whole Foods CEO John Mackey's editorial on August 11, 2009, in The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
produced a storm of controversy.
Awards and recognition
- Whole Foods Market has been included in FortuneFortune (magazine)Fortune is a global business magazine published by Time Inc. Founded by Henry Luce in 1930, the publishing business, consisting of Time, Life, Fortune, and Sports Illustrated, grew to become Time Warner. In turn, AOL grew as it acquired Time Warner in 2000 when Time Warner was the world's largest...
magazine's annual list of the "100 Best Companies to Work For" every year since the list's inception in 1998, most recently at No. 5 in 2007.
- CEO John Mackey was named to Barron's list of the world's best CEOs, which recognizes 30 top corporate leaders who excel in not only profit growth and stock-price gains but also leadership strength and industry stature.
- The Environmental Protection Agency awarded Whole Foods Market its top honor of Green Power Partner of the Year for 2006. The company was also presented with the Green Power Leadership Award in 2004 and 2005.
- Based on 2005 revenue, Whole Foods Market is the fifty-fifth largest retailer in the United StatesUnited StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
- In the 2006 Harris Interactive/The Wall Street Journal ranking of the world's best and worst corporate reputations, Whole Foods placed 12th overall and received the best score of any company for social responsibility.
- Whole Foods was included in Corporate Responsibility Officer magazine's annual "100 Best Corporate Citizens" list for 2007, ranking No. 54 out of 1,100 U.S. public companies surveyed. The ranking is based on measures of corporate service to eight groups: shareholders, community, governance, diversity, employees, environment, human rights and product.
- Supermarket News ranked Whole Foods No. 23 in the 2007 "Top 75 North American Food Retailers" based on 2006 fiscal year sales of $5.6 billion.
- CEO John Mackey was named the 2003 Overall National Ernst & Young Entrepreneur Of The Year.
- Whole Foods was named 'World's Greatest Food Retailer' by the British trade magazine The GrocerThe GrocerThe Grocer is a British market leading magazine devoted to grocery sales, published by William Reed Business Media. It has been published since 1862. Its readership encompasses every aspect of the industry, from directors of the large multiples to independent retailers...
in 2006.
Labor relations
Among its core values, the company lists "supporting team member happiness and excellence". The company maintains that its treatment of workers obviates the needs for unions: At its U.S. stores, after 800 service hours, full-time workers are given an option to purchase health insurance coverage starting at $10 per paycheck for themselves (spouse and dependent coverage is offered for an additional charge). Workers also have access to a company-funded personal wellness account, and the starting pay at most stores is highly competitive.CEO Mackey drew attention to Whole Food's health insurance program (offered through United Health Care in the US) for its employees in an op-ed in the Wall Street Journal. In the article he called his company's insurance plan a viable alternative to "Obamacare". Whole Food's health insurance plan is notable for its high deductibles - $2000 for general medical expenses, and $1000 for prescriptions. However, employees receive $300 to $1800 per year (depending on years of service) in personal wellness funds, which are intended to help make up the difference. Once an employee has met the deductibles, insurance covers 80% of general medical costs and prescriptions. It should also be noted that medications and doctor care for the treatment of any type of mental illness are explicitly not covered by the company's health insurance policy. Mackey summed up his antipathy toward universal coverage in his op-ed by stating,
"A careful reading of both the Declaration of Independence and the Constitution will not reveal any intrinsic right to health care, food or shelter. That's because there isn't any. This "right" has never existed in America."
A "Boycott Whole Foods" page on Facebook
Facebook
Facebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook, Inc. , Facebook has more than 800 million active users. Users must register before using the site, after which they may create a personal profile, add other users as...
with more than 27,000 members was also created in response to John Mackey's position on health care. Conversely, an alternative group on Facebook
Facebook
Facebook is a social networking service and website launched in February 2004, operated and privately owned by Facebook, Inc. , Facebook has more than 800 million active users. Users must register before using the site, after which they may create a personal profile, add other users as...
was set up in support of John Mackey and Whole Foods.
Mackey, a libertarian
Libertarianism
Libertarianism, in the strictest sense, is the political philosophy that holds individual liberty as the basic moral principle of society. In the broadest sense, it is any political philosophy which approximates this view...
, makes no secret of his opposition to unions at Whole Foods Market. Mackey believes that unions facilitate an adversarial relationship between management and labor. An attempt at unionizing in Madison, Wisconsin
Madison, Wisconsin
Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. It is also home to the University of Wisconsin–Madison....
, in 2002 was met with resistance from store management and Whole Foods was accused by labor activists of union busting
Union busting
Union busting is a wide range of activities undertaken by employers, their proxies, and governments, which attempt to prevent the formation or expansion of trade unions...
. A 2004 ruling by the National Labor Relations Board
National Labor Relations Board
The National Labor Relations Board is an independent agency of the United States government charged with conducting elections for labor union representation and with investigating and remedying unfair labor practices. Unfair labor practices may involve union-related situations or instances of...
upheld the actions of Whole Foods at the Madison store. Further attempts at unionizing Whole Foods Market stores have been unsuccessful. Michael Henneberry of the United Food and Commercial Workers
United Food and Commercial Workers
The United Food and Commercial Workers International Union is a labor union representing approximately 1.3 million workers in the United States and Canada in many industries, including agriculture, health care, meatpacking, poultry and food processing, manufacturing, textile, G4S Security, chemical...
Union said they failed to attract the interest of the employees at Berkeley's
Berkeley, California
Berkeley is a city on the east shore of the San Francisco Bay in Northern California, United States. Its neighbors to the south are the cities of Oakland and Emeryville. To the north is the city of Albany and the unincorporated community of Kensington...
Whole Foods despite rallying there for seven years.
Whole Foods was criticized for its refusal to support a campaign by the United Farm Workers
United Farm Workers
The United Farm Workers of America is a labor union created from the merging of two groups, the Agricultural Workers Organizing Committee led by Filipino organizer Larry Itliong, and the National Farm Workers Association led by César Chávez...
(UFW) on behalf of agricultural workers laboring on strawberry farms. During the late 1990s, the UFW persuaded several large supermarket chains to sign a pledge in support of improved wages and working conditions for strawberry pickers. Whole Foods chose instead to support the farm workers directly by holding a "National 5% Day" where five percent of that day's sales — $125,000 — was donated to organizations which provide social services to farmworkers.
See also
- Organic foodOrganic foodOrganic foods are foods that are produced using methods that do not involve modern synthetic inputs such as synthetic pesticides and chemical fertilizers, do not contain genetically modified organisms, and are not processed using irradiation, industrial solvents, or chemical food additives.For the...
- Sustainable businessSustainable businessSustainable business, or green business, is enterprise that has no negative impact on the global or local environment, community, society, or economy—a business that strives to meet the triple bottom line. Often, sustainable businesses have progressive environmental and human rights policies...
- SupermarketSupermarketA supermarket, a form of grocery store, is a self-service store offering a wide variety of food and household merchandise, organized into departments...
- Wild Oats MarketsWild Oats MarketsWild Oats Markets was an operator of natural foods stores and farmers markets in North America. The stores offered dry grocery, meat, poultry, seafood, dairy, frozen, prepared foods, bakery, vitamins and supplements, health and body care, and household items. As of February 21, 2007, it operated...
- Trader Joes
- It's Getting Real in the Whole Foods Parking LotIt's Getting Real in the Whole Foods Parking Lot"It's Getting Real in the Whole Foods Parking Lot" is a rap song and subject of a viral music video that humorously describes various interactions occurring in and around a Whole Foods Market.-Background:...