Disrupters To The Organic Food Industry

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Walmart will be offering organic products at lower prices.  Walmart partnered with Wild Oats to sell a a group of food staples that will be less costly than other current organic brands already found on Walmart shelves.

This will create a disruption to Whole Foods.  Whole foods tried to purchase  Wild Oats in 2007 but had to sell because of anti-trust issues in 2009.  Wild Oats is able to make the organic staples at a lower cost and therefore Walmart will be able to sell the organic products for less.

http://blogs.marketwatch.com/behindthestorefront/2014/04/10/wal-mart-wild-oats-team-up-to-disrupt-organic-food-industry/

Jack Sinclair, Walmart’s U.S. Vice President of Grocery states in the article above that they want to disrupt the market.  Walmart wants to bring accessibility to organic products.  Walmart will also sell an organic brand under it’s own generic label that is cheaper than what Whole Foods will sell.

This is fascinating that companies such as Walmart are thinking of ways to disrupt the Market under the guise of providing cheaper products to consumers.  While this may be part of their campaign, the main campaign is to take the business.

It will be interesting to see if Whole Foods will be able to compete and lower their prices in order to maintain the business.  Wondering if Walmart’s sowing of Wild Oats be the beginning of the end for companies such as Whole Foods?

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One Response to Disrupters To The Organic Food Industry

  1. sydhavely says:

    Great example of disruption in the food industry where you have a low-cost supplier inching up the food chain (literally) by offering a typically expensive but perceived high-value product (organic) available to a great portion of the market. Great post, Margaret.

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