Currently browsing posts about: Supermarkets

I’ve been asked to comment on Amazon’s proposal to buy Whole Foods.  So much has been written about it that it’s hard to add anything new.

My immediate thoughts:

• Monopoly capitalism in action
• Amazon owns everything
• This won’t help feed the poor

The facts: Amazon offered $13.7 billion to buy Whole Foods.  This may seem like a lot of money but it’s just 3% of Amazon’s $470 billion holdings.

How did this happen?

• Whole Foods CEO calls it “love at first sight” and a “whirlwind courtship.”
• But the marriage depends on approval by anti-trust regulators.

What are the implications?

Effect on retailers: Their stocks dropped immediately.  Amazon is serious competition.

Disruption: This may be a major disruption to grocers, but this industry may have had it coming.

Organics: Whole Foods specializes in organics; producers already cannot keep up with demand.  Farmers will have to grow more, but if Amazon imports organics that will open up possibilities for fraud.

E-commerce: this could increase the value of physical stores if done right, as well as online grocery shopping.

Food chains: Amazon on top.

 “Conscious capitalism”: The end

Maybe, feeding the world (says Alice Waters)

Better food for all?  Civil Eats considers this question, but asks will this do what Walmart does—force lower wages for workers and lower prices for farmers. 

Humor: Alexa: tell me some jokes about Whole Foods’s prices, drones, and Amazon’s ruling the world.

Advocates have been pressing USDA for years to (1) get data on what SNAP recipients buy with their benefits, and (2) permit pilot studies of what happens to purchases of soft drinks if you exclude them from the benefit package.

In 2012, I did a post on the 2012 SNAP to Health report.  Its recommendations:

1.  Protect SNAP benefits.
2.  Collect data

Lots of people have been trying to get USDA to produce data.  Anahad O’Connor, the author of the New York Times account, filed a Freedom of Information request with USDA.  In response, USDA sent him a report it had commissioned from IMPAQ, a “beltway bandit” consulting firm.  His story is here (I’m quoted).

Now we have a partial answer.  IMPAQ analyzed data from one large, unnamed retailer (could it be Walmart?).

Here’s USDA’s summary of the study (and here’s the complete study).

The USDA says the study shows that SNAP recipients buy pretty much the same amounts of what everyone else buys.

Summary category data show that both SNAP and non-SNAP households focused their spending in a relatively small number of similar food item categories, reflecting similar food choices. The top five summary categories totaled about half of the expenditures for SNAP households and non-SNAP households (50 versus 47 percent). Commodity-level data (in the full report) show that both SNAP and non-SNAP households made choices that may not be fully consistent with the Dietary Guidelines for Americans.

My reading of the report suggests that in this study, SNAP recipients spent more of a combination of their SNAP benefits and their own private money on:

• Sugar-sweetened beverages
• Hamburger
• Frozen meals
• Salty snacks
• Lunch meats
• Flavored milk
• Kids cereals
• Frozen French fries
• Convenience foods in general
• Infant formula

The report does not discuss why these differences might exist but it would be interesting to find out.

If sugar-sweetened beverages really comprise 9.5% of purchases, that comes to $6 billion a year.

That’s why taking them off the list of eligible foods is worth a try.

Recent SNAP news

The USDA is sponsoring a pilot project to allow SNAP participants to buy foods online from certain retailers, including Amazon in three states, Fresh Direct in New York, and various grocery chains in other states.

The idea is to make it easier for SNAP participants to get access to healthier foods.

I hope the USDA is keeping score on what gets bought online, and whether foods cost more.  The benefits are not allowed to be used for delivery costs.

I visited the AC supermarket in Utqiagvik, the town formerly known as Barrow.

It could be anywhere USA, with anything you could possibly want, including fresh blueberries from Argentina.  How’s that for food miles?

Remember: all of this, no exceptions, comes in by cargo plane.

The produce section was lovely, with remarkably fresh foods at equally remarkable prices.

Would you believe the green leaf lettuce is $3.50, the baby carrots $7.29, and the romaine $4.69?  New York prices on steroids.

How about white potatoes at $3.29, red ones at $2.79, and baking potatoes at $18.99 for 10 pounds.

Or the reason I was so concerned about the tossed out school lunch milk cartons: $7.11 on sale.

How about bread on sale for $5.98 a loaf?

Just to make me feel at home, here are the sugary drinks down one entire aisle.  The 12-packs were on sale for $10.98, which must not be enough to discourage sales.

Are soft drinks a problem in Utqiagvik/Barrow?

Yes, they are.

The prevalence of obesity and diabetes is low, but rising steadily, and the Indian Health Service dentists told me that they see plenty of little kids with rotted teeth from drinking sodas and sweet juices in baby bottles.

The nutrition transition is taking place in America too, and for the same reasons that obesity and diabetes are becoming problems in the developing world.

In Great Britain, at least, supermarkets promote junk foods more than they promote healthy foods.

No surprise.  Junk foods are more profitable!

Bernard Lavallée, Le nutritionniste urbain, has supplied an English translation of the French graphic I posted a couple of days ago:

He’s done other food graphics.  You can see them at this site.

Thanks for sending!

This is too much fun not to share.  Merci á Bernard Lavallée pour le Tweet:

Food and Water Watch has some excellent new resources on supermarket shopping:

• Take the quiz on who owns what and how much (really?  I didn’t know that).
• Take a look at the terrific graphics (here’s an example):

• Get the report: Grocery Goliaths: How Food Monopolies Impact Consumers.

Food & Water Watch found that the top companies controlled an average of 63.3 percent of the sales of 100 types of groceries (known as categories in industry jargon). In a third (32) of the grocery categories, four or fewer companies controlled at least 75 percent of the sales.

I will never think of “choice” the same way again.

A reader, Jeff Harpell, comments on my scheduled talk in Barcelona:

I lived in Barcelona last year and the year before….While they are becoming more influenced by American fast food, having both parents work, and buying more from one stop food markets, the lifestyle, social support systems, i.e., healthcare and eating habits still are very different from the USA

….I suspect that the Catalonians are concerned about their citizens’ heading down a path of bad eating habits and how to prevent them. Any thoughts to share?

Three first impressions:

1.  The tourist bureau on La Rambla gives out a free city map courtesy of McDonald’s.  The map helpfully identifies the location of all of the McDonald’s outlets in Barcelona, and its such a relief to know that you don’t have to go far to find one.  I counted at least 10.

2.  The Carrefour supermarket has a meat section unlike any supermarket meat section in the United States. Those unwrapped hams are not cheap (yes, that’s 79 Euros, nearly $140, but it’s a big ham).  Leaving the ham attached to the hoof is an interesting touch.  I can only imagine what the New York City health inspectors might say about them.

3.  The Boqueria open-air food market has the most beautiful cut fruit for sale—something like this would make getting those daily fruit servings a real treat.

More to come!