"Major Deflationary Disruption" Looms After Amazon Purchase Of Whole Foods

Tyler Durden's picture

Authored by Mike Shedlock via MishTalk.com,

Amazon bought Whole Foods yesterday. Widespread carnage in the grocery stock prices followed. Jim Cramer called it a major deflationary disruption saying stores cannot compete.

“If I was the Federal Reserve, I would have a meeting on this. Inflation is going to go down…. You have to rethink food … Costco knows how to compete. It will be in there tooth and nail with toilet paper and paper towels. … But Kroger, a crisis in Cincinnati, crisis.”

“Major Disruption of Society”

SupplyChain247 reports Amazon’s Move to Purchase Whole Foods Is ‘Disruption of Society’

TheStreet’s Action Alerts PLUS Portfolio Manager Jim Cramer said Amazon’s move to acquire Whole Foods is a disruption of society, “this is what I regard to be a move by Amazon to destroy the margins and own the business of food and groceries in this country,” Cramer said.

 

With Amazon putting down $13.7 billion to buy Whole Foods, Bezos is sending a powerful message to his retail rivals;

  • Food suppliers will now be dealing with an even larger grocery store, meaning potentially pressured profit margins for organic players such as Hain Celestial.
  • Amazon officially shows intent to enter bricks-and-mortar retail in a larger way than just bookstores. Combine that with its unmatched digital presence, Walmart, Target and others have been put on notice.
  • Grocer stores like Kroger will now be in an even bigger price war.
  • Amazon Prime integrated into Whole Foods could hurt Costco over time. Many Costco members are also Prime members.

“What Amazon did to the mall, it will now do to grocery stores,” said Cramer.

Here is a Tweet to think about:

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StackShinyStuff's picture

It will be nice to see prices fall at Whole Paycheck

knukles's picture

Let me make this perfectly clear, people.
I am not going to fucking order my groceries over the net. 
It just ain't gonna happen.

Bezos and his empire are prima facie evidence of the need for renewed anti-trust activities

Everybody take a deep breath before panicking.
Mr Bezos just bought brick and mortar.

Read that again

Mr Bezos just bought bick and mortar.

This might just be the first "disruptive" brick and mortar purchase of the electronic age.  (My ass)

robertocarlos's picture

But a can of beans is a can of beans. They can't fuck up that order.

El Vaquero's picture

Do you know how many different kinds of beans there are?  I mean, I have, on hand, Anasazi beans and Zuni Gold beans, which IMO are better than pinto beans.  So are the blue speckled and sonoran tepary beans that I have.  You bet your ass they can fuck it up.  

Hikikomori's picture

Amazon has been selling Anasazi beans already - you're out of touch, I'm afraid:

https://www.amazon.com/Anasazi-Beans-10-Lb-Bag/dp/B000RHVEFG/ref=sr_1_2_...

 

bamawatson's picture

libs prefer Mexican Jumping Beans

Pinto Currency's picture

Hysterical article.

And the core PCE leaves out food and energy anyway.

There is no shortage of fiat money creation by the Fed because Amazon buys a grocer.

The Fed is raising rates after blowing a multi-decade credit bubble and will collapse the economy with that action.

Four chan's picture

another stupid purchace by bezos who has more money than brains.

Stuck on Zero's picture

Now you can order your Whole Foods "California Mix Organic Vegetables" (imported from China) from Amazon.  Goodie.

Richard Chesler's picture

Scumbag extraordinaire Jim Cramer.

Fuck you asshole!

luky luke's picture

Inflation is going to go down?????????????????

What are these people SMOKING?

http://biblicisminstitute.wordpress.com/2015/08/14/when-money-is-the-pro...

luky luke's picture

That freakin Cramer is still around??? How did that guy even get a job?

Oh, yes. He's one of (((them))).

AVmaster's picture

I don't see anything, ANYTHING wrong in this article(besides fuckin jim cramer)...

 

The only people that do are the fuckin assholes that push for infinite upwards movement...

algol_dog's picture

Bezo's just stepped into a horrible cut throat, razor thin margined business, in order to make it even more of a horrible, cut throat razor thin, margined business. Another multi-year smoke screen for Bezo's to hide behind, avoiding the reality that the Company shows little to no actual profit. 

thedespised's picture

lol no, this is the trigger of the start of the middle of phase 2 right before the fall of the big one.

BabaLooey's picture

FIND...ANOTHER...CATCH PHASE

EL VAQ IS MORE "IN TOUCH" THAN YOU I WOULD SUSPECT.\

If not knowing a variety of heans - or being able to buy beans online (like it's now "new" since laughing Jeffy bought wholelottamoney Foods)

...then good. 

Less in the Matrix.........

I bet he grow beans............El Vaq

robertocarlos's picture

I like Eden Organic beans. Kidney beans in seaweed, must be the radiation I like. Also like their other beans Pinto, and Black. I will try more types. I don't think we have access in Canada to those other beans you listed.

So if I order Eden beans and I get a dented can of Heinz beans there could be a problem.

Mr. Universe's picture

Best to grow your own beans, but I ordered some organic black beans from Amazon over a year ago and they were labeled as produce from CHINA.It was just another reason to let Prime expire and dump Amazon.

 

HRH Feant2's picture

Ewwwwwwwww! FROM CHINA!

I was at my local grocery store and there were lots of types of shrimp. Only one that was wild. From Patagonia. There were two other types that were farmed -- in Asia. You couldn't pay me to eat farmed shrimp from Thailand or any other Asian country. No fucking way.

U4 eee aaa's picture

The way I sees it Bozos is selling magic beans

mc225's picture

isn't there some iodine in the seawood though, so it balances the radiation out, for a smoother mutation perchance?...

HRH Feant2's picture

I agree! What if the can is dented? What about the expiration date?

Hey, I have been experimenting with baked garbanzo beans all week. I know, it sounds crazy, but if you pat them dry and bake them at 400 for 40 to 50 minutes the canned ones turn into little crunchy morsels that actually taste GOOD!

I made a batch yesterday and finished them with the same sauce I use when making roasted pumpkin seeds: soy, a little worcestershire, a little sesame oil, and some rice wine vinegar. Bake them for 30 minutes and mix in a bowl with the dressing and finish baking for another 10 to 15 minutes. OMG those little things are so good! Guilt-free snacking because beans are a perfect food: pure protein and fiber!

swmnguy's picture

Those are fiendishly addictive.  Edamame soybeans, same type of deal.  Or the big white kidney beans, too.

HRH Feant2's picture

I was wondering if I could do the same thing with other types of beans! Thanks for the heads up!

The one mistake I made was putting on the seasoning at the beginning and, I found out the hard way, that the seasoning will burn. The other mistake was putting one batch into a container before they had cooled. have to make sure the batch is completely cool before putting in a container.

The other seasoning I like to use is olive oil, salt, garlic powder, and cayenne pepper. YUMMY! It makes them taste like beer nuts!

The trick is to bake them first and add the seasoning during the last 10 minutes. I can't wait to try some white Great Northern beans!

It is an understatement to say they are ADDICTIVE! I am not a person that likes sweets very much. I love crunchy things and I love salt so this snack is right up my alley. Plus I need to get more fiber and most foods with fiber taste like cardboard. Since these are baked, not fried, that is the other great thing about a no-guilt snack. Well, unless you can't eat salt. If that is the case you have my sympathy.

gimme soma dat's picture

I buy roasted green peas at the local amish bulk goods store.  They cost less than $1 for more than I can eat, so I've never tried to make them myself.  I imagine it would be just as easy.  I love baked garbonzos, too. 

swmnguy's picture

Yeah, the process is all pretty much the same as if you ever roasted pumpkin seeds at Halloween as a kid.  You learned the potential mistakes already.  And the texture and way they roast is all a little different so you have to keep an eye on them.

But man, fantastic snacking that makes you wonder why you haven't always been doing that, and why you ever buy any pre-prepared snacks.

Except Doritos.  I know a guy whose father owns a regional-player chips and snacks company, and while he rages against anyone who would buy Old Dutch or any other Frito-Lay snacks, he has to grant the Doritos exception.

unsafe-space-time's picture

Damn this site has too many beaners

ejmoosa's picture

Can't be everything to every one.

And what about quality?  Wal mart doesn't have it.  Neither will Amazon Foods.

RAT005's picture

My understanding is Amazon just bought a bunch of little store fronts each with a little warehouse space from which to operate drone delivery of groceries.  I don't think this has anything to do with $2/lb organic tomatoes.

Mr. Universe's picture

a driverless car will pull up and call your cell phone to let you know your order is in the driveway. Enter your order code to unlock the door and pick up your groceries, no drivers or clerks. Oh, and no food when they decide to shut things off.

DAMIFIN0's picture

Pretty soon Jeff will b selling  a Tesla, 2 a driveway near you, but, only if they're Primesters.

Common_Law's picture

"They" being directly connected to bezos through the CIA who trusts him  enough to run 300 million+ of their back end infrastructure. 

I can only imagine what kind of new and improved "foods" they'll offer since there's only one degree of separation between the CIA and "healthy food"

jerry_theking_lawler's picture

You need A LOT less people in an automated society. If you have no 'purpose' in the society today....then you might want to find a purpose before it is too late and TPTB remove you from the system.

Useless eaters will not be tolerated in the near future.

Mr. Universe's picture

So what you are saying is either be a useful idiot slave to TPTB or die?  I imagine there will exist some sort of underground, but yes depopulation is coming, not in my lifetime perhaps but in my grandchildrens time for sure.

True Blue's picture

They bought a name and the right to lease overpriced retail locations. So far as I know, Hole Foods doesn't own the real estate in which their (crappy) stores are located. So, now they will pay the rent on a retail location -and instead of inviting customers to bring themselves in, buy their goods and leave; is going to pay out money and overhead to use them as 'distribution by drone' facilities? With the increased overhead from 'drone' fleet maintainance etc. etc. atop that? Bwahahahaha.

Whoa Dammit's picture

I'm sure the other retail tenants in the shopping centers, the shopping center owners, and the liability insurance companies for the shopping centers will be very happy to have WF's flying drone circus operating there. /s

adanata's picture

Yes they can, if they get those cans from unreliable sources, just as Bezos has done with other "Amazon products"; perisibles particularly. He's a globalist POS and I hope this comes back to bite him in the ass.

Deplorable's picture

Unreliable sources include China, where toxic ingredients are a mainstay.  

Sudden Debt's picture

Every time I go to America, I can taste the chemicals they put in your food.

 

Mr. Universe's picture

The water is poisoned with Fluoride and Chloramine, the air filled with chemtrails, our beef loaded with anti-biotics, and every supermarket shelf devotes the majority of it shelf space to Booze, sugar drinks and highly processed GMO soy/corn products. What's not to love? 

JoeySandwiches's picture

Though the assholes at the store will probably give you bruised bananas and can't pick out the right piece of meat.

max2205's picture

You can read a whole amazon book before you made it through the check out lane 

Deplorable's picture

They will fuck it up when they send you a can of Non-GMO Organic beans at twice the price of the generic beans you were expecting.

Anarchyteez's picture

When he owns everything real he'll also own TPTB and any chance at anti trust will be flushed.

SheHunter's picture

Bezos is never gonna offer fresh cow elk loin, home grown pork sausage or hand raised hen eggs.  nor apples and peaches grown in my backyard, nor wild raspberries that grow on the part of one of the horse trails we call bear lane - because of all the black bears that hang out on that stretch mid summer when the berries are ripe.  Screw amazon.  Too crowded and too smug.  I get what I need by scrolling just a little lower on the search page for a company struggling to breath with Amazon's both feet on its neck. 

adanata's picture

Moreover, Whole Foods sucks; it's a NWO mislabeled shit hole. Amazon already has a bad rep for contaminated nutrients as well. It's possible JB just made a big mistake...I hope so.