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

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:


knukles StackShinyStuff Sun, 06/18/2017 - 12:54 Permalink

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 activitiesEverybody take a deep breath before panicking.Mr Bezos just bought brick and mortar.Read that againMr Bezos just bought bick and mortar.This might just be the first "disruptive" brick and mortar purchase of the electronic age.  (My ass)

In reply to by StackShinyStuff

BabaLooey Hikikomori Sun, 06/18/2017 - 18:23 Permalink

FIND...ANOTHER...CATCH PHASEEL 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

In reply to by Hikikomori

robertocarlos El Vaquero Sun, 06/18/2017 - 13:05 Permalink

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.

In reply to by El Vaquero

HRH Feant2 (not verified) Mr. Universe Sun, 06/18/2017 - 13:35 Permalink

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.

In reply to by Mr. Universe

HRH Feant2 (not verified) El Vaquero Sun, 06/18/2017 - 13:43 Permalink

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!

In reply to by El Vaquero

HRH Feant2 (not verified) swmnguy Sun, 06/18/2017 - 15:51 Permalink

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.

In reply to by swmnguy

swmnguy HRH Feant2 (not verified) Sun, 06/18/2017 - 16:50 Permalink

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.

In reply to by HRH Feant2 (not verified)

True Blue RAT005 Sun, 06/18/2017 - 13:44 Permalink

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.

In reply to by RAT005

SheHunter Anarchyteez Sun, 06/18/2017 - 23:45 Permalink

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. 

In reply to by Anarchyteez