Following the approval of its acquisition of rival Wild Oats, Whole Foods Market has become the single most important natural food retailer in North America. The growing power of this 'supernatural' retailer is expected to consolidate supply chains of natural and organic foods, and some suppliers risk being squeezed out of the picture.
Natural and organic food companies have already been marginalized by mass market retailers.
Large retailers like Kroger and Safeway have come into the market and introduced organic ranges, many under their private labels. Most, like Wal-Mart, have encouraged their large conventional food suppliers to develop organic lines. Mass market retailers have thus used their existing supply chains for their organic product ranges.
