The battle between the Federal Trade Commission (FTC) and Whole Foods which began in 2007 continues. In 2007, the FTC challenged Whole Foods’ acquisition of the Wild Oats Markets, claiming the deal would create a natural food store monopoly.   Their injunction was denied and the merger was completed. More than a year later, an appeals court decision again opened the case.  Now that the merger is done, the FTC wants the two companies to separate. 
   Last December, Whole Foods filed a federal lawsuit against the FTC. It wants the case to be resolved in federal court under the jurisdiction of the Justice Department, rather than the FTC.
   Unlike other chains of grocery stores that stock their shelves with “foods” humans should not eat, Wild Oats, like Whole Foods, banned MSG, artificial flavors, colors and preservatives, and trans fats.  It also sold health food store items—vitamins, minerals, supplements, and organic produce.  Meat was antibiotic and hormone free, just like Whole Foods.
   Whole Foods Market was and is the number one store of its kind in the nation and Wild Oats was number two.  This much is true. But the only thing that truly separates either chain from traditional grocery stores in the minds of consumers is that Whole Foods (and formerly Wild Oats) are grocery stores that sell nutritious foods and provide a one-stop shop for other high quality health care items like vitamins and body and bath products.   
   Basically the FTC argues that these chains were the only competition for one another and that they served a discrete portion of consumers—loyal, intelligent consumers unlikely to shop at traditional grocery stores. 
   Traditional grocery stores are integrating organic meat and produce as well as health food sections. They do offer a little competition. Major competition comes from other, smaller health food stores, health food co-ops, and local farmers markets. Online sources for nuts, bath and body products, vitamins, minerals, and supplements are also competitive.
   If the government would do its job and eliminate chemicals from our food, clean up the dairy industry, and ensure that all meats were antibiotic and hormone free, every grocery store would be competitive with Whole Foods.    
   The Federal Trade Commission website lists the motions in this case on their website. It’s an interesting read.