Posted on 05/07/2015 4:36:26 AM PDT by Hojczyk
Whole Foods shares are getting crushed after earnings. The company reported record second quarter sales that still were below investors' expectations, and shares were down as much as 10% in after hours trade on Wednesday.
This past weekend at the Berkshire Hathaway annual shareholders' meeting this past weekend, CEO Warren Buffett singled out the company, saying that that the customers there simply don't seem like a happy bunch.
Here's some more color on what Buffett said, according to Time:
"Food and beverage companies will adjust to the expressed preferences of consumers. No company does well ignoring its consumers.
"It’s amazing how durable [consumer brands are]. Berkshire Hathaway was the largest shareholder of General Foods from 1981 to 1984 — that’s 30-plus years ago. It was bought by Philip Morris and spun out as Kraft. Those same brands are popular today. Heinz goes back to 1869. The ketchup came out in the 1870s. Coca-Cola dates to 1886. It’s a pretty good bet that a lot of people will like the same things."
Whole Foods is popular for its fresh and organic food options.
But Buffett is unapologetic for his junk food habits and the amount of coke he drinks.
He recently added Kraft Foods to his portfolio, the maker of Velveeta cheese, Oreos, and others.
And as his vice chairman and long time business partner Charlie Munger quipped: "Sugar is an enormously helpful substance. It prevents premature softening of the arteries."
In response to questions about holding investments in companies that make foods high in sugar (like Coca-Cola,) while consumers' diets shift towards healthier options, Buffett said (via Bloomberg): "I don’t see smiles on the faces of people at Whole Foods."
(Excerpt) Read more at finance.yahoo.com ...
They might get their perfect diet wrong, and die an extra 30 minutes early.
No thanks. Experiment on yourself and your kids.
I'm happy with my diet.
/johnny
It’s a matter of what you are used to. I cut out most processed foods a decade ago and work hard at making good food from scratch. Now if I eat something made with bullion instead of homemade broth it tastes bad to me. Likewise store bought or baked goods from a mix are something I just can’t eat. We don’t eat much cereal as I usually make breakfast, but even my kids prefer kashi to fruit loops ;-). It’s what your taste buds are accustomed to eating.
My foods aren’t flavorless, just less flavors from esters (organic chemistry lab on that is what started the process to eliminate artificial ingredients).
I usually shop at Meijer stores here in the midwest because they make a point of selling locally grown food and its my way of supporting local farmers.
Buffett is a crony capitalist socialist
The owners of Whole Foods is a rabid capitalist (sorry hippies...your food dollars are going to conservatives).
No wonder Buffett doesn’t like them
Warren, I am the biggest individual receiver to the TARP, talking nonsense. Oh please......
Whole Foods has a great products, but it’s expensive.
If you want to go to a good organic grocery store, then I suggest Earth Fare. It’s very similar to Whole Foods, but it’s prices are A LOT lower.
Trader Joe’s has good organic food too, but just not that fancy.
“Healthy food” science has as much integrity as does global warming science. Organic branded foods are a way of parting fools from their money.
That's because he goes there with his secretary, and she's busy thinking about how she pays more in taxes than he does.
Same here. They have the best variety of produce around other than farmer’s markets.
Meijers apple selection alone is staggering. As a chain they are pretty good at the greengrocer end of things.
CC
I’m afraid of hepatitis, so the less contact I make with these mutilated and tattooed freaks, the better.
Their prices are also comparable to Walmart.
They’re a regional chain.
If there’s an Indian grocer near your home, skip Whole Paycheck and shop there. They have all of that (including the best basmati) and the prices are as Crazy Eddie used to say: INSANE!!!
I agree, for the most part the whole health food thing is just so much left wing BS.
I go to these places as I have developed major food allergies in my old age. Gluten, and nitrates get me sick. I can get get cured meats without nitrates there (NaCl is still a good curing agent). These places have their place.
I cut out processed foods too, mainly because of the high nitrate and sodium content.
I try to keep contact to the absolute minimum.
Yep, born in Grand Rapids, been to the original “Meijers thrifty acres” when I was little.
CC
Got something against organically grown free range bugs?
LOL, you’re damn skippy I do, and against the other kind! (When I told my brother about this, he, being a big bad Iraqi war veteran, said “Heck, we had flies all over our rations in Iraq, so many that you just learned to consider them extra protein”. Gross!)
Satanic. When called on this, the Hokey Old Sinner gave a peculiar defense…"I killed all the unborn because it was a pet cause of my dead wife." Sheesh.
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