We are a gullible culture. Whether it’s the internet telling you that vaccinating your children causes autism or commercials convincing you that Enzyte will turn you into John Holmes, no one has ever gone broke underestimating the intelligence of the American public.
Now the curtain has been pulled back on another steaming pile of bullshit designed to separate you from your money – organic foods. A study just published in the Annals of Internal Medicine concludes there is no evidence “organically grown” fruits, veggies or meat are any more nutritious than the regular stuff you get off the shelves at your local supermarket.
Organic Food is more expensive because you believe it is healthier. And when you believe that, you subconsciously will believe it tastes better. Even if you couldnt pick the organic product in a blind taste test:
Which brings me to Whole Foods (WFM) - the Wall Street growth darling that’s just off it’s 52 week and all time highs. WFM is typically 15%-30% higher than your local supermarket. Food prices are already skyrocketing due to the drought. Add in the sheer brilliance of using 40% of the corn crop to produce ethanol and I believe there is a perfect storm brewing on the horizon for Whole Foods.
It won’t happen overnight – the last big hit to WFM was during the 2008 recession when the stock dropped 77% . A good indicator their top is coming will be when same store sales growth starts to tank. Current guidance for Fiscal year 2012 sales growth is 15.6%-15.8%, while same store sales growth for 2012 is 8.6%-8.8% – so far they are hitting their targets.
For me the question is how long until their customer base wakes up and realizes they have been overpaying for a lie
13 Responses to The Organic Food Lie and it’s Implications for Whole Foods
The “organic isnt better for you” story has already been debunked. (articles found everywhere). As a grower for personal consumption I can tell you it is non GMO heirloom is better in every way you can tell.
I think he is talking about growing vegetables “for personal consumption” in a home garden.
In that regard, I completely agree that a (organically or conventionally grown) heirloom tomato tastes better than the pieces of shit you find at the grocery store (whether it’s WFM or SWY).
oops, that was in reply to kcscott…
You speak from a bias position as this impacts your business. Understandable, but no less inaccurate.
Click the link “study just published in the Annals of Internal Medicine”
Do you think there’s any better source to believe than the American College of Physicians?
Organic food is healthier for the simple reason it requires better soil to even grow the shit. They are replacing the Safeway at the bottom of the hill with a Whole Foods, because the area is getting yuppified with a bunch of new condo developments which will be filled with people who are totally stoked to pay 30% more (like me). The biggest local organic store has 2 locations and is growing at a clip of about 15% same store. I think that will be dampened as people are going to go straight to Whole Foods, because literally everything will be just a little bit cheaper due to WMFI’s increased purchasing power.
WMFI = a bowling ball.
Guess what? WFM food taste better, it’s consistantly a GPTW top ten (attrition), and grass fed beef is what seperates us from the heathens.
Plus they have a massive holisitic medical station, and sell fucking acorns and orchids at a 200% premium.
They butter you up around every corner to juice the upsales.
Those fuckers are tier one.
And I’m long WFM, to be FD.
And if I knew how to spell this would all be much more credubull.
LOL on the spellin’[sic] You can’t argue with taste. Goin’s outside to pick an organic tomatoe [sic] and some broccoli, maybe a cuke or two.
As an organic grower for personal consumption it’s a no brainer, less hassle and the same or higher yields. For a small farmer it’s a no brainer, less money to $MON and others and more money in your pocket. Yes, some things are a bitch to grow organically, apples for one, so it’s no big deal as a consumer to buy non organic.
I love all of the freaking so called “free-market” types that rant and rave when the small farmer is allowed to make a buck competing against factory farms use up the land and are clearly unsustainable.
Chef’s aren’t stupid. Why do you think they source their meat and produce locally? It tastes better. Learn how to grow your own. If not support your local farmer.
I would like to comment, but you echoed my thoughts almost exactly.
Though one point of contention is the cost to the organic farmer which can be high if he/she relies on ‘foreign’ amendments to the soil rather than through crop rotation, green manuring, composting.
But, yeah, nothing beats growing your own.
This post is NOT directed at anyone growing their own food for personal consumption -Props to you
This is about the hoax that is WFM, and to a lesser degree CMG, given to a clueless populace
My very subjective observation of the customers at the two WFMs I visit:
1. Those who have the money, don’t care and will keep shopping WFM as long as they feel like it.
2. Those who have little money and are shopping smart for healthy food at WFM, some are, some aren’t.
3. Wannabe morons who are probably running up a credit card bill they cannot pay. These are the ones with a cart full of unhealthy foods they think are good for them since they are at WFM. They also buy tons of commodity items, which is the tell for this group.
I frequently see people leaving the store staring at the receipt in confusion/ dismay, at the WFM where I eat lunch at a counter facing the exit.
At WFM I buy mostly prepared foods and canned cat food. No interest in the produce, I go to Giant or Safeway for that.
I have no idea or view about the stock price. I made a few bucks on WFM options this year, and may trade it again.