In our spring update, we talked about the ups and downs in the Food Marketplace. With summer almost behind us and we continue to see the landscape change.  For decades food appeared to be a slow changing industry, but now we are truly in a disruptive and transformational state. Time for some quick updates as fall approaches.

The Fast-changing Food Landscape

Whole Foods and Amazon
Not only was Whole Foods bought out, but the day of the purchase close prices decreased up to 40% on some items. Traffic is up and parking lots are fuller, but we’ll see if the disruption will make them money.  Whole Foods was referred to as “Whole Paycheck” because of their price reputation, now we’ll see if they can recover market share and profit with their new owner.

Blue Apron
After their IPO things have not gone too well as the Chart of trading has shown.

But the latest word from their CEO is they view Whole Foods entry into the market as a positive and they will have all their problems fixed by year end.

CEO Matthew Salzberg dismissed concerns about competition. He said in a TV interview the week of his company's IPO that more competition will only help convince people to skip the supermarket and buy their groceries online.
"In some ways, Amazon is an ally for us in this fight," Salzberg told business news channel CNBC.

This video from CNBC talks about how their stock will recover, well time will tell.

As an associate member of the American Association of Meat Processors we keep up with the local trends in the Protein industry. I have asked my readers to think local and one of my small meat purveyors is now preparing meat products for Blue Apron and they have seen their business grow.

In the latest AAMP Newsletter there is a great story about a local meat guy in Illinois who is jumping on the prepared meal bandwagon. Please look at the article from AAMP “Meals Kits Trend is on the Rise”


Issue 640 - Everything Cycles.

Transformation and disruption was a topic in an article in the Sunday Philadelphia Inquirer. I read about the demise of Sears & Roebuck titled The Big Stumble. They believed they had no competitors. The New York Times dubbed them "The Amazon of the gilded age." Those of us in the baby boom generation remember Sears.  As a young boy I remember thumbing through the catalog, dreaming of what I could buy if I had the money.

Read more ...