Leonard Green & Partners
by John Mackey, November 7, 2008 | Permalink
I’m really excited to announce that Leonard Green & Partners has invested $425 million in Whole Foods Market (a 17% percent ownership). We are pleased that Leonard Green, one of the most experienced and successful investors in the retail industry, has decided to make such a significant investment in our company. We view this as a strong vote of confidence in our business model and our long-term growth prospects, despite the tough current economic environment. This equity infusion, combined with our strong cash flow from operations, gives us the financial flexibility to manage through these difficult times while continuing to prudently invest in our long-term growth as we remain committed to our mission and core values. For my further thoughts, check out this video.
Categories: investors
Retail is just badly suited to being publicly traded unless you are of a size and scale where you can leverage that into shareholder value. That said, I hope that this cash infusion is enough to take care of WFM over the term. Reducing waste, improving the quality of management at the store level, and driving a much harder bargain with vendors that still demand too much money for their products are good ways to turn the arrows around and position WFM to be a stronger, better run competitor in this amazingly competitive sector.
Well, that’s good news. I am hopeful that your company can expand to the Grandville, Michigan area one day in the future. You’ve got a ton of future shoppers just waiting for the opportunity to part with their hard-earned cash in these parts.
Dear
Mr. Mackey, you come up as a straightforward person, I really think that this action is a positive step towards a better 2009. This kind of action, is not an easy one, thus my fully appreciation to you and the other members of the management team. I leave in Israel, but overwhelmed on a daily basis by WFM, and its ability to present a different approach to the retail market. You were, and still are the pioneers of this niche. TO be honest I was really concerned for the company’s future facing this terrible economic situation we are all experiencing, but this last action with Green is very wise thing of you to do. Thanks to that WFM has great chance to go through the economic storm, and thrive.
Personally, every visit in the states is accompanied with a visit in WFM.
All the Best,
Tsadi
Mr. Mackey,
This is indeed extremely exciting!! I know an investment of that magnitude is not just a sign of faith, but a definite understanding of Whole Foods’ importance. I just had my first Whole Foods experience in your newest store here in Jacksonville yesterday. Amazing!! It was a pleasure to ALL my senses. Although Jacksonville is having some difficult economic times like most of the country, I think choosing and purchasing food mindfully is always a wise investment. Yes, quality can cost a little more sometimes, but the benefits outweigh those costs, especially when it comes to healthcare down the road. After making the decision yesterday that I would definitely return to Whole Foods on a regular basis, I was so pleased to find this blog today and learn of this investment, which will hopefully help Whole Foods stay and GROW in the Jacksonville area.
I would like to also thank you for maintaining a blog as it truly communicates your passion for the mission of Whole Foods and your understandable need to maintain a connection with the customers and community. I am WHOLE-heartedly impressed.
Thank you!!!!
Mr. Mackey,
I am delighted about the good news, especially in our bleak economy. Someone is willing to invest money in something as fabulous as Whole Foods!YES!
My husband and I travel frequently to Tulsa, Oklahoma, to shop. A feeling of health, happiness, and balance envelopes me when I enter the store. My husband and I were raised in Europe on whole, nutritionally-rich foods without ‘green No9′, MSG, Splenda, growthhormones and the like. Please consider opening a Whole Foods Market in Oklahoma City. SOON.
I am sending you a ‘verbal hug’!
Take care.
Dagmar and family (cats included)
This may not be the time to expand considering your loss of customers that is happening because of your ill advised words in the WSJ concerning health care. What color is the sky in your world? I have shopped at Whole Foods since it opened in San Diego. Your words show such a lack of compassion for the Whole Nation, people who can afford to shop at Whole Foods and people who can’t afford thier next meal is disgraceful. You have lost another customer. Re-think expanding at this time.
Regarding Mr. Mackey’s comments on health care, I’ll be taking my business to the Santa Monica Food Co-Op until Mr. Mackey gets his head on straight.
I am disgusted at your stance on health reform. I have shopped at Whole Foods for many years. I will no longer do so but will find other options. I am so disappointed… I for some unkownon reason all these years thought that Whole Foods was in syinc with real humanity. I am devasted to learn the truth.
I cannot tell you how hurt I am to learn of your stance on this critical issue. I have lost a father, sister, sister-in-law and grandson because of pre-existing conditons and age that insurance companies decided to let die. Goodbye Whole Foods. I will nor will my family, neighbors or friends shop there again… ever. You are a disgrace to the real population of people that get what democracy is all about.
Hopefully Leonard Green paid with an American Express card, so he can void the charge. Otherwise he is going to be stuck with 17% of a company that suddenly only appeals to 17% of the population.
Way to be awesome, Mackey!
Based upon the article I read from John Mackey in the WSJ, I respectfully note that I will not shop at Whole Food stores anymore. You are a scary dude and based upon your assessment on the possible health care legislation I perceive that you (John Mackey) can make a case for repealing Medicare and Social Security, both socialist programs. I’m sure you can replace a liberal like me with all the conservatives in NY who will certainly flock to your stores.
You are a great American, Mr. Mackey. Thank you for standing up to what is right. We will still be loyal customers of Whole Foods with you as CEO. If they fire you, then, we’ll show our support somewhere else!!
Mr. Mackey – I can only splurge on special occasions to shop at WF. But because of your courage, character and integrity, I will now be tightening my belt somewhere else in my budget and shop more often at your stores in my long-time socialist community of Ann Arbor, MI. People who believe they have a right to “everything” just because they breathe and every one of their “warts” MUST be taken care of by someone else (meaning employers OR people who are healthier and TAKE CARE OF THEMSELVES paying the HIGHER premiums) are the most arrogant beings in existence. I hope they boycott your stores because the silent ones are the ones who will now shop at WF more often. The shallow, sanctimonious, narcissistic liberals are the obnoxious voices devoid of values and I hope they boycott. You will NOT lose Mr. Mackey. You have won something more precious than shoppers – more respect. I look forward to becoming a frequent shopper at Whole Foods.
Thank you Mr. Mackey for speaking out for more sensible affordable health care reforms that the American people can afford.
You are obviously very smart and practical with the Whole Foods unique and thoughtful brand but also realizing we cannot afford all these crazy utopian spending binges that will bankrupt this great Country.
We will continue to shop with 300-400 dollars a week groceries and more!!!
it’s a pitty your core customers are Obamamaniacs.
I totally agree with your stance on healthcare along with what I hope is 60% of America.
Never be afraid to tell the truth in a free country
mark TX
Thank you for some sanity in this world of political lies and mistruths. I agree with you and because of this I will make sure to shop at your store even more than I do now.
Thanks.
Bravo Mr. Mackey for having eloquently expressed your concern that more affordable health care options be explored before we repeat the mistakes of our one world neighbors. I will certainly go out of my way to shop your stores, though, wish you had an on-line store for those of us in rural America. My family will be stocking-up to improve our family’s health to ward-off the bleak alternative of socialized medicine. Please consider setting up an outreach co-op for the grass-roots customer who knows how to live within their means.
Way to go!! I will now beign shopping in your stores. Any time I am in the area I will stop in to buy something.
Mr. Mackey, Thank you for your courage in speaking out about the detrimental effects of the proposed healthcare legislation and offering more sane solutions to our problems.
Like another poster, WF is where we shopped when we wanted to splurge or needed a specialty item. But because of your bold actions, we will cut our budget elsewhere to make room for more WF shopping.
I am telling every patriot I know and in fact found another WF convert today!
Does Leonard Green & Partners understand the market for Whole Foods? Do they realize the type of people who normally shop there?
These people—I would venture to guess—voted for Barack Obama 80-20. Do they understand that they just handed over a huge amount of money to a company whose CEO just raised the middle finger to their most loyal customers?
I thought you’d like to understand this. You see, my spouse and I used to be very loyal Whole Foods customers. I estimate we spent around $7,000 annually at their stores. We are seething with anger about this. We feel like we were just kicked in the teeth.
After the vile Wall Street Journal screed by John Mackey, we will never spend one penny in this store. The very logo now gives us the creeps. And we’ll make sure that everyone we know hears about this.
Really, really bad business decision for a CEO to voice an opinion that is sure to alienate core customers. You should write a book on how to destroy a brand. This will likely be talked about in business schools for years.
I completely agree with your WSJ op-ed. This is exactly what we need for health care “reform”. Most of all, we need the government to stay out of our lives and not take over another industry.
I’ve never shopped in your store even though there’s one in our downtown area (Sarasota, FL). I will make a point to stop in next time I’m in the area.
Thank you for your comments. The other issue is the FDA. We need reform on their requirements. It costs millions to get things approved that should not have to go through this type of scrutiny and cost. We would get more holistic type of research and more products if we could get rid of the FDA as we know it. Also, if a person has not worked in the health care field or been in business, it is hard for them to grasp the view points you present. There are so many details the public just does not see. Keep up the good work.
Dear John Mackey
This is to SUPPORT your recent editorial in the Wall Street Journal. Rest assured, angry people are far more likely to speak up (esp when organized by social networking sites), than people who were either not bothered by the op-ed or even appreciated it. I fall into the latter category, as do several others that I spoke to about the op-ed.
Please continue to exercise your right to free speech and be comforted by the fact that — in all likelihood — this will not affect your sales at all.
Thank you for standing up for what you believe is right, and thank you for showing via example that it is possible for large companies to offer sane, economic and compassionate insurance benefits for their workers, including even some that are not full time.
Saluting you!
Thank you for the most thoughtful and sensible health care reform proposal I have read. Your plan is excellent, and I have written to all of my legislators asking them to consider it and work to implement it. Would you consider running for public office on a national level? Don’t worry about any lost customers; you have gained many more.
I agree wholeheartedly with John Mackey! There is alot of BS from both political parties on the health debate. The ideas that John put forth address the basic problems with solutions that will improve healthcare and reduce cost. If liberals don’t like it, tuff…they are only 20% of the population and getting smaller by day. Keep up the good work John!
Don’t like what the President is trying to do? Well you just lost a customer. Unlike health ins. companies its easy to switch to Sunrise Market, Co-op or Joe’s Market.
Michael T. McTague
You go, John. Those of us who like the fact that someone of the CEO calibur had the guts to state their views…has my vote and my patronage at your store!! Those of you who didn’t and will boycott Whole Foods? He employees 50,000 people…those are the ones you will hurt.
I support the CEO of Whole Foods’s view and suggestions on the health care bill and will support him by visiting his store tomorrow. Please continue to verbalize your ideas/suggestions to oboma on this issue.
I support your CEos’ ideas and suggestion on the health care bill. We will support him by visiting his stores tomorrow.
You should run for office. You have integrity & are willing to stick up for your convictions & what’s right. Too many government officials are swayed by lobbyists yet you don’t. You are willing to get paid $1 a year for the good of your employees. We need less greed in business & Washington & need to speak for whats right & not be afraid to stand up for what’s right. I wonder if the Health Care Reform is good enough for the President & government officials? Probably not! If it’s good for us, it’s good for them too. It’s time they listen to what the working people want. I’m glad we’re a free Country & will shop at your store & will support you anyway I can. Keep up the good work. God speed.
Lori
It will take a lot of time to look up distributors for gluten-free products. In fact, I’ve spent the better half of the evening doing so. You see, our family suffers from Celiac Disease–by the way, if you have it, good luck getting coverage. Eventhough, we make a good living, we can’t afford to shop at Whole Foods, on so many levels.
My wife and I drive 140 miles each way to shop at Whole Foods. Some times I would wonder if it was worth it. After Mr Mackeys comments, now I know it was. Thank You.
THANK YOU SIR FOR HAVEING THE BALLS TO SAY SOMETHING ABOUT OBAMAS PLAN ON HEALTH CARE.WHEN NO ONE ELSE WILL AND STANDING UP FOR YOUR EMPLOYES THANK YOU
I am one American who believes the healthcare reform the goverment is proposing is not in the best interest of the people of the United States. I appreciate that you offered a your personal opinion. My family who has never shopped at Whole Foods will now shop there every week.
The customers you do lose over this will not be missed, as your business will thrive with new customers who repsect you and your opinion.
I heard about your Health Care article and that people were boycotting your stores. I read and agree completely with what you said. Thanks. I don’t normally shop at your store, because it is quite a distance from my house, but today I made that trip and will continue to do so, to boycott the boycotters. I want to support you and your store, because I think it is great what you do for your employees, charity, and the public.
Thank You,
Donna
I for one will be shopping more at Whole Foods. Way to go.
Kudos to Mr. Mackey. I have lost most of my retirement investment, but I am still a loyal American and a believer in the constitution. WhAT we REALLY need are companies with CEO’s like him. We will lose so much if we turn over our society and rights to the politicians. God Help America.
I join many others…..the people who object to the position of the Whole Foods CEO (especially RUSSELL MOKHIBER) are as STUPID and NARROW MINDED as the Democrats that are trying to BANKRUPT the USA with the take over of a perfectly fine health care system. I WILL NOW BE PATRONIZING WHOLE FOODS REGULARLY!!! I would love to patronize Mr.??? Russell Mokhiber in an entirely different way!!! You are a true traitor Mr.??? Mokhiber!!!!
If you want to be the CEO of a health food company then be the CEO. If you want to be a political commentator then resign as CEO of Whole Foods and join CNN. Why would anyone in their right mind take a chance on alienating the very customers who made up that $1.2 billion in sales? If I am CEO I don’t care if my customers are Republican, Democratic or Martians, as long as they have the money to buy what I am selling. Everyone is a current or potential customers. Maybe Whole Foods has too much business and can afford to drop some politically incorrect and unagreeable customers. That is cool if they are that successful!! I can tell you this – you wouldn’t catch me dead in one of their stores or as a stockholder of the company. They just made their first non-current and non-potential customer!! Congratulations!!
TerryGannt:
If liberals are only 20% of the population and shrinking how in the heck did they get Obama elected?!
Hey Mike….
Can’t wait to see YOU with a terminal illness waiting in line to get to see a Doctor – if/when the PRESIDENT that you so admire gets his TAKE OVER OF HEALTH CARE PASSED!
Watch what you wish for….you might get it!
John:
Congrats on putting together some great solutions. Thoughtful and workable. No need to recreate the wheel like the Dems are trying to do. It is so obvious that the liberals are trying to pull a “Power Grab” under the guise of we care about people. I am thouroughly amazed at the liberal followers. Not a thought in their heads. If Obama said run into traffic, there would be a good % of them that really would.
Open up in Newtown, CT…..Lots of disposable income and a great location to back it up.
Just let me know.
A loyal vendor!!!!
Neal
Mr. Mackey,
Your article in the wall street journal has everything the president’s plan does not. You offer ideas over ideology. You hit on all the bullet points that patients and doctors think about but which President Obama so glibly ignores. You lay out a foundation for how to insure and how to pay for it while the president merely says trust the government. Don’t worry about people boycotting your stores. The ones who do that probably eat more in samples in the store than they actually buy in the store. From here on out i will not only shop there but encourage all my friends and neighbors as well.
I also feel we need to do something for the less fortunate. We also need to do it wisely! I have never shopped at your store, but due to the closed-mindedness of others, based on your article, I plan on shopping at your store from now on. I plan on it tomorrow actually. Thanks for your concise and logical stance.
I have always loved and shopped Whole Foods. I will start driving the little bit further to shop there MORE! I will always support a business that balances ethics and profits. I don’t agree with everything expressed by Mr. Mackey, but always appreciate someone willing to use common sense rather than an emtional tie to one school of thought over another. For heavens sakes, why the hatred for a well thought out opinion?
I agree whole heartedly with you! Three cheers. It is a sad state of affairs when “free speech” is turned so by the media and voicing an opinion is cause for tar and feathering by the liberal left.
Whole foods is not convenient to my house…but I am going to make a point of going there as often as I can.
The negative response to anyone that disagrees with the healthcare plan is crazy. What happened to DEBATE and compromise…let alone COMMON SENSE? It is further proof of the entitlement mentality of the left and the fact that none of the current administration have EVER run a business. JUST because you can print money…does NOT mean you should.
Mr. Mackey,
With all due respect to those opposing views, I wholeheartedly agree with your comments. Thank you for your well reasoned thoughts and opinion.
The plain and simple truth is that 70% of those who died today…killed themselves, because of lifestyle choices. YOU have a choice to make!
Whole Foods is a perfect example of a store that is making a difference in positive lifestyle choices.
Our bodies have dynamic, and powerful self healing mechanisms that are fueled by vitamins, amino acids, and fatty acids.
That means that when we eat nutritious, natural food we give our bodies the tools it needs to repair and heal itself.
The bottom line is that without proper nutrition and exercise our bodies slowly break down into a state of disease.
This is the foundational truth that people must hear and understand.
Thank you for making a difference.
Dear Mr. Mackey:
I have never shopped at Whole Foods, but after your Op/Ed and the vicious response by some, I am going to
find a location and expect to be a regular customer soon. Keep up the good work.
For once, A measure and thoughtful look at the Health Care issue – from someone who actually deals with it ( unlike Congress).
This is nothing more than a concerted effort to have control of our lives and and boost Union membership.
HEB will now have competition as far as I am concerned. I will gladly support businesses who support the American public!
John Mackey has great ideas! I do think that individuals should watch their intake of unhealthy foods. Prevention is 100% better than to wait for the doctor to tell you that you have a disease that has been created by the high fat and high sugar food consumption. Obamacare seems to want to tax people to provide healthcare to everyone but we need to solve some of the “root” issues or else taxing will never be enough ever. It is like having a water bucket with a hole in it. We all need to be responsible. Eating food with pesticides is more likely to cause diseases than other foods. Thank John Mackey for bringing those to your gorcery store! John Mackey voiced his thoughts and I am glad his had the courage!