Comments on: Questions From My Blog On Wild Oats Merger http://www2.wholefoodsmarket.com/blogs/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/ Just another Whole Foods Market Blogs weblog Wed, 18 Nov 2009 21:01:15 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Claude Bause http://www2.wholefoodsmarket.com/blogs/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/comment-page-1/#comment-836 Claude Bause Mon, 02 Jul 2007 19:05:03 +0000 http://wholefoodsmarket.com/socialmedia/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/#comment-836 [Chip Joyce]It is morally egregious that the government can even ask a single question about your desire to acquire another company[CJ] Exactly! Why should that memo even matter? Mergers shouldn't be blocked based on private communcations to board members, but should instead be based on, oh I don't know *if they actually violate the law*. It simply makes no sense to hold a company (or person) accountable for their thoughts instead of their actions. [Deborah]Do you seriously think that Whole Foods customers reading your blog as well as news reports of your comments are pleased to know that you want to limit their shopping choices which always results in higher prices for the consumer?[Deb] This merger would greatly increase my shopping choices, just like it would several other people who live by a Woats, but not a WFM. Also your claim that mergers "always" results in higher prices is simply ignorant of economics. I suggest you read up on "Economies of Scale", which describes how mergers often lower prices as a result of lowered opperating cost...thus making WFM more competitive with respect to other grociers. http://en.wikipedia.org/wiki/Economies_of_scale [Deb]You [Chip Joyce]It is morally egregious that the government can even ask a single question about your desire to acquire another company[CJ]

Exactly! Why should that memo even matter? Mergers shouldn’t be blocked based on private communcations to board members, but should instead be based on, oh I don’t know *if they actually violate the law*. It simply makes no sense to hold a company (or person) accountable for their thoughts instead of their actions.

[Deborah]Do you seriously think that Whole Foods customers reading your blog as well as news reports of your comments are pleased to know that you want to limit their shopping choices which always results in higher prices for the consumer?[Deb]

This merger would greatly increase my shopping choices, just like it would several other people who live by a Woats, but not a WFM. Also your claim that mergers “always” results in higher prices is simply ignorant of economics. I suggest you read up on “Economies of Scale”, which describes how mergers often lower prices as a result of lowered opperating cost…thus making WFM more competitive with respect to other grociers.

http://en.wikipedia.org/wiki/Economies_of_scale

[Deb]You

]]> By: Chip Joyce http://www2.wholefoodsmarket.com/blogs/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/comment-page-1/#comment-834 Chip Joyce Mon, 02 Jul 2007 03:50:40 +0000 http://wholefoodsmarket.com/socialmedia/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/#comment-834 Mr. Mackey, It is morally egregious that the government can even ask a single question about your desire to acquire another company. It is simply not the government's business. Unfortunately, we live in an era of disregard for individual rights to such an extent that the very concept is alien to most everyone. Bill Gates failed miserably when the government went after Microsoft: it was a Chamberlainian moment in American business. To contrast, I hope that you will mount a principled defense for your rights. I have no confidence in our government or culture, however, and do not want you to be a martyr. You have my sincerest support. I greatly admire your achievements, and the beautiful experience of shopping at Whole Foods that you have created. Sincerely yours, Chip Joyce New York City Mr. Mackey,
It is morally egregious that the government can even ask a single question about your desire to acquire another company. It is simply not the government’s business. Unfortunately, we live in an era of disregard for individual rights to such an extent that the very concept is alien to most everyone.

Bill Gates failed miserably when the government went after Microsoft: it was a Chamberlainian moment in American business. To contrast, I hope that you will mount a principled defense for your rights. I have no confidence in our government or culture, however, and do not want you to be a martyr.

You have my sincerest support. I greatly admire your achievements, and the beautiful experience of shopping at Whole Foods that you have created.

Sincerely yours,
Chip Joyce
New York City

]]> By: jody giesler http://www2.wholefoodsmarket.com/blogs/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/comment-page-1/#comment-833 jody giesler Sun, 01 Jul 2007 18:43:01 +0000 http://wholefoodsmarket.com/socialmedia/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/#comment-833 Upon finding out that the ftc is blocking your merger:I live in rural Pa and make 2 trips a month to buy organic and health food in cleveland,oh.Within a small radius there is a whole foods store,a wild oats,a trader joes,a whole foods co-op,and a mustard seed cafe.I find a wide variety of foods available and appreciate the differences between these stores.However,it is usually the wild oats sale flyer that gets my first attention as they have more items on a regular sale basis(unlike the very few at whole foods.)I do appreciate some of the low fixed daily prices at whole foods,but simply put whole foods is the store for rich people while wild oats is more affordable with its sales.I know that regardless of your current intentions,you will raise prices(and profits,your salary etc.)at wild oats and in a short time close it.Realistically, I am glad the ftc has intervened on the consumers behalf.I have forgone long ago investing in Wall Street when I realized that there are few Ceo's who can be trusted.Profit above the people(both employees and the consumer)and the goal is to line your pockets with cash and retire comfortably.I hope the government holds its ground. Upon finding out that the ftc is blocking your merger:I live in rural Pa and make 2 trips a month to buy organic and health food in cleveland,oh.Within a small radius there is a whole foods store,a wild oats,a trader joes,a whole foods co-op,and a mustard seed cafe.I find a wide variety of foods available and appreciate the differences between these stores.However,it is usually the wild oats sale flyer that gets my first attention as they have more items on a regular sale basis(unlike the very few at whole foods.)I do appreciate some of the low fixed daily prices at whole foods,but simply put whole foods is the store for rich people while wild oats is more affordable with its sales.I know that regardless of your current intentions,you will raise prices(and profits,your salary etc.)at wild oats and in a short time close it.Realistically, I am glad the ftc has intervened on the consumers behalf.I have forgone long ago investing in Wall Street when I realized that there are few Ceo’s who can be trusted.Profit above the people(both employees and the consumer)and the goal is to line your pockets with cash and retire comfortably.I hope the government holds its ground.

]]> By: Greg http://www2.wholefoodsmarket.com/blogs/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/comment-page-1/#comment-832 Greg Sun, 01 Jul 2007 03:45:32 +0000 http://wholefoodsmarket.com/socialmedia/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/#comment-832 Wow! I am surprised that you actually posted my comment and even more surprised that you personally responded--pretty cool! I am still disappointed that you will be selling Henry's, as I don't think it will be good under Apollo, but have no choice but to take a "wait and see" approach. If you opened more Whole Foods in Southern California, it would not be such as big deal to me, since I would just shop there, but there simply are not enough locations in Orange County. Will that change? Wow! I am surprised that you actually posted my comment and even more surprised that you personally responded–pretty cool!

I am still disappointed that you will be selling Henry’s, as I don’t think it will be good under Apollo, but have no choice but to take a “wait and see” approach.

If you opened more Whole Foods in Southern California, it would not be such as big deal to me, since I would just shop there, but there simply are not enough locations in Orange County. Will that change?

]]> By: John Costino http://www2.wholefoodsmarket.com/blogs/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/comment-page-1/#comment-831 John Costino Sat, 30 Jun 2007 02:10:51 +0000 http://wholefoodsmarket.com/socialmedia/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/#comment-831 I hope the FTC is OK with this. AT&T Says Buying Dobson for $2.8 Billion Reuters I hope the FTC is OK with this.

AT&T Says Buying Dobson for $2.8 Billion
Reuters

]]> By: harmony sprout http://www2.wholefoodsmarket.com/blogs/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/comment-page-1/#comment-830 harmony sprout Fri, 29 Jun 2007 12:30:17 +0000 http://wholefoodsmarket.com/socialmedia/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/#comment-830 you wanna know what i think..... people are afraid of change...always have been...always will be!!!! this isn't the first time i've seen a mass freak out about whole foods growth. this is really sad to me because most of the people complaining have NO IDEA ALL OF THE INCREDIBLE THINGS WHOLE FOODS DOES FOR OUR PLANET!!!!!!!!!! i've worked for whole foods for a long time....so i've seen the company grow A LOT! the first week i worked for WFM was right around the time they bought a gourmet grocery chain in michigan...Wooooo boy...were people mad about that....but you know what...THEY GOT OVER IT! no matter where you place a whole foods people are always going to have something to say...i think part of that is our store is a bit overwhelming to customers that haven't been exposed to a grocery store that cares. i've never been happier or more proud to work for a company...whole foods not only inspires me to make life changes...i crave the knowledge it has so i can then turn around and educate as many people as possible. i've learned more about taking care of our planet from working at a GROCERY STORE than i have buy watching the news....at least we can say our company is doing something to change the tragic condition our planet is in!!!!! everyone should be happy about whole foods growth because with new stores, come new team members and new customers....and the way i look at it is...that's more people to inspire and educate so they can turn around with the same passion and educate more and more people. one thing i keep seeing in these comments (that's really frustrating) is people talking crap before they look into what we are about. all they have to do is look under ISSUES or COMPANY on our website and read about the wonderful, amazing, beautiful, loving things we are doing! i know we live in a time where it's easier to listen to other peoples opinions on the radio or t.v. and that it's too time consuming to sit and read for 15 min and be educated the right way....but it's definitely necessary in this situation. john...i'm proud to be working for you and i hope you continue to spread the love in your heart. hopefully some day soon all of these negative comments will turn into praise. thank you for all of your hard work to make our home (and peoples lives) more beautiful. sincerely, harmony sprout you wanna know what i think…..
people are afraid of change…always have been…always will be!!!!
this isn’t the first time i’ve seen a mass freak out about whole foods growth.
this is really sad to me because most of the people complaining have NO IDEA ALL OF THE INCREDIBLE THINGS WHOLE FOODS DOES FOR OUR PLANET!!!!!!!!!!

i’ve worked for whole foods for a long time….so i’ve seen the company grow A LOT!
the first week i worked for WFM was right around the time they bought a gourmet grocery chain in michigan…Wooooo boy…were people mad about that….but you know what…THEY GOT OVER IT!
no matter where you place a whole foods people are always going to have something to say…i think part of that is our store is a bit overwhelming to customers that haven’t been exposed to a grocery store that cares.
i’ve never been happier or more proud to work for a company…whole foods not only inspires me to make life changes…i crave the knowledge it has so i can then turn around and educate as many people as possible. i’ve learned more about taking care of our planet from working at a GROCERY STORE than i have buy watching the news….at least we can say our company is doing something to change the tragic condition our planet is in!!!!!
everyone should be happy about whole foods growth because with new stores, come new team members and new customers….and the way i look at it is…that’s more people to inspire and educate so they can turn around with the same passion and educate more and more people.

one thing i keep seeing in these comments (that’s really frustrating) is people talking crap before they look into what we are about. all they have to do is look under ISSUES or COMPANY on our website and read about the wonderful, amazing, beautiful,
loving things we are doing!
i know we live in a time where it’s easier to listen to other peoples opinions on the radio or t.v. and that it’s too time consuming to sit and read for 15 min and be educated the right way….but it’s definitely necessary in this situation.

john…i’m proud to be working for you and i hope you continue to spread the love in your heart. hopefully some day soon all of these negative comments will turn into praise.

thank you for all of your hard work to make our home (and peoples lives) more beautiful.

sincerely,
harmony sprout

]]> By: Paul http://www2.wholefoodsmarket.com/blogs/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/comment-page-1/#comment-829 Paul Fri, 29 Jun 2007 03:28:08 +0000 http://wholefoodsmarket.com/socialmedia/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/#comment-829 John, The FTC is acting foolishly and arrogantly, and I support your fight against them. However, I don't agree with this comment of yours: "Monopolies are impossible in a market economy unless created and maintained by the coercive power of government. Otherwise so-called "monopolies", and even companies with strong competitive advantages, are eventually undermined by imitation and entrepreneurial creativity in the competitive marketplace." John, monopolies do exist and damage the competitive environment. Let's take this semi-hypothetical example: A software company called M-Soft creates a superior operating system and wins control of 99% of the market. (And good for them, because they deserved it.) M-Soft is also one of thousands of companies that write application software--things like word processing programs, spreadsheet programs, kids' educational software, computer games, and so on. Application software is built on top of an operating system; this means that application software can do only as much as the operating system allows it to. With this background, what if M-Soft manipulates the operating system so that there are hidden, better features that only M-Soft application software can use? These features allow M-Soft application software to look better and run much faster. Suppose also, that M-Soft has another weapon. If an application software competitor becomes too successful, M-Soft can change the operating system so that features the competitor relies on suddenly don't work as well. Now think of this situation from the point of view of an application software start-up, A-Soft. You are A-Soft's founder, and you have the most brilliant software idea in years. Unfortunately, you know that once you create your product and start achieving some success, M-Soft can step in, copy you, and leverage its operating system to harm your product and help its product. You won't be able to compete against M-Soft when this happens, and you'll go out of business. Is competition harmed? Yes. Are consumers harmed? Yes, very much so. In reality, A-Soft will even get to build its product. When A-Soft tries to raise money from investors to fund initial product development, investors will balk at putting money into a company destined to fail. The result? A-Soft's innovative product never gets created. Thousands of other companies meet the same fate, and the pace of innovation slows to a crawl for the next 20 years, until changes in technology allow other operating system companies to finally start chipping away at M-Soft's 99% market share. John, what do you think about this example? In this case, the monopoly had nothing to do with the "coercive power of government." Rather, it was the NETWORK EFFECTS inherent in the operating system market that caused the monopoly to develop and be maintained. I will agree with you that monopolies are rare. The FTC should have kept its hands out of the Staples/OfficeDepot and Sirius/XM mergers, too. John,

The FTC is acting foolishly and arrogantly, and I support your fight against them. However, I don’t agree with this comment of yours:

“Monopolies are impossible in a market economy unless created and maintained by the coercive power of government. Otherwise so-called “monopolies”, and even companies with strong competitive advantages, are eventually undermined by imitation and entrepreneurial creativity in the competitive marketplace.”

John, monopolies do exist and damage the competitive environment. Let’s take this semi-hypothetical example:

A software company called M-Soft creates a superior operating system and wins control of 99% of the market. (And good for them, because they deserved it.) M-Soft is also one of thousands of companies that write application software–things like word processing programs, spreadsheet programs, kids’ educational software, computer games, and so on. Application software is built on top of an operating system; this means that application software can do only as much as the operating system allows it to.

With this background, what if M-Soft manipulates the operating system so that there are hidden, better features that only M-Soft application software can use? These features allow M-Soft application software to look better and run much faster. Suppose also, that M-Soft has another weapon. If an application software competitor becomes too successful, M-Soft can change the operating system so that features the competitor relies on suddenly don’t work as well.

Now think of this situation from the point of view of an application software start-up, A-Soft. You are A-Soft’s founder, and you have the most brilliant software idea in years. Unfortunately, you know that once you create your product and start achieving some success, M-Soft can step in, copy you, and leverage its operating system to harm your product and help its product. You won’t be able to compete against M-Soft when this happens, and you’ll go out of business.

Is competition harmed? Yes. Are consumers harmed? Yes, very much so. In reality, A-Soft will even get to build its product. When A-Soft tries to raise money from investors to fund initial product development, investors will balk at putting money into a company destined to fail. The result? A-Soft’s innovative product never gets created. Thousands of other companies meet the same fate, and the pace of innovation slows to a crawl for the next 20 years, until changes in technology allow other operating system companies to finally start chipping away at M-Soft’s 99% market share.

John, what do you think about this example? In this case, the monopoly had nothing to do with the “coercive power of government.” Rather, it was the NETWORK EFFECTS inherent in the operating system market that caused the monopoly to develop and be maintained.

I will agree with you that monopolies are rare. The FTC should have kept its hands out of the Staples/OfficeDepot and Sirius/XM mergers, too.

]]> By: Whitey http://www2.wholefoodsmarket.com/blogs/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/comment-page-1/#comment-828 Whitey Thu, 28 Jun 2007 18:34:48 +0000 http://wholefoodsmarket.com/socialmedia/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/#comment-828 In my mind, Mr. Mackey has always been an independent thinker and a competetive doer. This is something that many do not like. I believe that there is more behind the scenes. UNION INFLUENCE Whole Foods strongest market is in California, which is extremely pro union. Ron Buerkle got California pension money and union support to put his huge company together, before selling to Kroger. The Liberal California "block" does not want non-union companies to be successful. They do everything to block Walmart and now I believe Whole Foods. Their timing is perfect, right before a supermarket strike which would be great for Whole Foods. The addition of Wild Oats stores would have given Whole Foods even more presence in this market and advertising economies of scale. Unions and government are partners. They supply each other both money and support and both are good at taking money from workers. In my mind, Mr. Mackey has always been an independent thinker and a competetive doer. This is something that many do not like. I believe that there is more behind the scenes. UNION INFLUENCE Whole Foods strongest market is in California, which is extremely pro union. Ron Buerkle got California pension money and union support to put his huge company together, before selling to Kroger. The Liberal California “block” does not want non-union companies to be successful. They do everything to block Walmart and now I believe Whole Foods. Their timing is perfect, right before a supermarket strike which would be great for Whole Foods. The addition of Wild Oats stores would have given Whole Foods even more presence in this market and advertising economies of scale. Unions and government are partners. They supply each other both money and support and both are good at taking money from workers.

]]> By: Lord Westfall http://www2.wholefoodsmarket.com/blogs/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/comment-page-1/#comment-827 Lord Westfall Thu, 28 Jun 2007 18:31:20 +0000 http://wholefoodsmarket.com/socialmedia/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/#comment-827 Mackey, I want to applaude your candor & transparnet communincation on this and other issues. I've only recently become a WFM shareholder, but I've never been as impressed with the management of any company as I am with WFM. Not just with how you speak clearly & openly (which is rare amongst CEOs), but with EVA & WFM compensation structure. I also applaude WFM for discontinuing short-term guidance that Wall St. "investors" demand. Actions like this contribute to shareholder value (by removing the incentive for management to sacrafice long term profits for qtrly short term gains), though it may paradoxically depress the stock price temporarlly. Mackey,

I want to applaude your candor & transparnet communincation on this and other issues. I’ve only recently become a WFM shareholder, but I’ve never been as impressed with the management of any company as I am with WFM. Not just with how you speak clearly & openly (which is rare amongst CEOs), but with EVA & WFM compensation structure.

I also applaude WFM for discontinuing short-term guidance that Wall St. “investors” demand. Actions like this contribute to shareholder value (by removing the incentive for management to sacrafice long term profits for qtrly short term gains), though it may paradoxically depress the stock price temporarlly.

]]> By: Tom J. http://www2.wholefoodsmarket.com/blogs/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/comment-page-1/#comment-826 Tom J. Thu, 28 Jun 2007 16:33:40 +0000 http://wholefoodsmarket.com/socialmedia/jmackey/2007/06/27/questions-from-my-blog-on-wild-oats-merger/#comment-826 John, The FTC's case does not hold water. I have spent the last 20+ years on the front lines of the retail food industry from processing to wholesale to retailing. WFM a monopoly? What a joke. As soon as the "big boys" realized they were losing significant market share to the natural food industry (granted it took them long enough, asleep at the switch I suppose) they dove right in. You yourself have often pointed out both the positive and negative impacts this has had on both the natural/organic food industry. WFM could aquire 5 Wild Oats size "competitors" and still not have the market penetration that Safeway, Walmart etc. have. I have been a WFM team member for 7 years. During this time I have seen, from the inside, the changes as the company is morphing into the dreaded "corporate giant". Yes some aspects of our core values have become harder to maintain. Yes having to answer to Wall Street has added another variable to corporate decisions. But you know what? The core values of WFM are still the first thing we share with our new team members. Is it about the money? Of course its about the money but its not just about the money. We are doing so much more both on the local and global scale. WFM has used its success to benefit so many different types of "shareholders" other than the NASDAQ ones that I can't even begin. Alright, off the soapbox, I have every confidence that the merger will go through. Any other result just doesn't make sense. Beisdes, I sure would like to see my stock options start moving back up... John,
The FTC’s case does not hold water. I have spent the last 20+ years on the front lines of the retail food industry from processing to wholesale to retailing. WFM a monopoly? What a joke. As soon as the “big boys” realized they were losing significant market share to the natural food industry (granted it took them long enough, asleep at the switch I suppose) they dove right in. You yourself have often pointed out both the positive and negative impacts this has had on both the natural/organic food industry. WFM could aquire 5 Wild Oats size “competitors” and still not have the market penetration that Safeway, Walmart etc. have.
I have been a WFM team member for 7 years. During this time I have seen, from the inside, the changes as the company is morphing into the dreaded “corporate giant”. Yes some aspects of our core values have become harder to maintain. Yes having to answer to Wall Street has added another variable to corporate decisions. But you know what? The core values of WFM are still the first thing we share with our new team members. Is it about the money? Of course its about the money but its not just about the money. We are doing so much more both on the local and global scale. WFM has used its success to benefit so many different types of “shareholders” other than the NASDAQ ones that I can’t even begin.
Alright, off the soapbox, I have every confidence that the merger will go through. Any other result just doesn’t make sense. Beisdes, I sure would like to see my stock options start moving back up…

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