In August, Seattle-based Amazon finalized its $13.7 billion acquisition of natural and organic retailer Whole Foods Market, Austin, Texas. The acquisition has translated into big changes not only in the pricing of many natural and organic products sold within Whole Foods stores, but likely will impact the ways that consumers purchase consumer packed goods (CPG).
Seattle-based Amazon and Whole Foods Market Inc., Austin, Texas, announced that they have entered into a definitive merger agreement under which Amazon will acquire Whole Foods Market for $42 a share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market’s net debt.
Just as SKU proliferation has allowed consumers more choices for their food and beverage purchases, the retail channel market has seen its own proliferation of new stores for these products. Natural and organic retailers, also referred by some analysts as fresh format stores, are one channel that has presented competition to traditional supermarket share.
Will cover all channel in $1.74 trillion US food industry
August 19, 2016
Chicago-based Technomic Inc. announced that its new 2016/17 U.S. Food Industry Universe analysis will provide coverage of all channels within the $1.74 trillion U.S. food industry, including retail grocery and foodservice.
The movement to become closer to one’s food source and consumers craving more healthful food and beverage options have buoyed the growth of the $53.5 billion natural and organic business, according to Rockville, Md.-based Packaged Fact’s July 2014 report titled “Natural and Organic Foods and Beverages in the U.S., 4th Edition.”
Demand for organic products is booming, according to the Organic Trade Association (OTA), Brattleboro, Vt. In 2013, organic product sales jumped 12 percent compared with 2012 to $35.1 billion, setting a new record, it reports.
American consumers’ desires for organic products continue to gain steam. According to data from the Washington, D.C.-based Organic Trade Association (OTA), sales of organic products reached $35.1 billion in 2013, an increase of 11.5 percent compared with the previous year.
Approximately two out of three “health and eco” consumers identify selection of healthy and organic products or produce as the most important factor when deciding where to shop regularly, according to the August 2013 “Market Lifestyle of Health and Sustainability (LOHAS) MamboTrack Health & Natural Shopper Research & Beverage Market Industry Insight” report.