Overconsumption and Grocery WARS!(tm)

When the rest of the country began to realize that they had to accept what the crazy, California, hippie, liberals had been saying for months about the country being in a recession was true and not just more malice directed towards Bush (as if we needed more), I became interested in predicting the companies that would plunge. It's not that I'm a fatalist. It's just that I find over-consumption nauseating. Of course I am guilty of it myself at times (see love-hate relationship with Starbucks). Still, we try our best to reduce waste. We make every possible effort to not overconsume. We don't have credit cards. We cook. We shop at the thrift store. We recycle. We use reusable bags and containers. We believe this lifestyle affects the least amount of people in a negative way and allows us to be stewards of the Earth. In short, we're the most un-American type of American when "American" is equal to "consumption."

In determining which companies would fail, I turned to my own habits. First, I picked Starbucks. For the record, I hate myself every time I buy a Starbucks; however, where the fuck am I supposed to buy coffee anymore? I realize that purchasing a coffee is incredibly wasteful - think of the cup, not to mention to resources. Occasionally, though, I want a coffee.

How is Starbucks faring? Poorly. Very poorly. They are closing stores because people are losing jobs, produce costs double what it did one year ago, so a $4.00 latte is suddenly an insane purchase. Fourth Quarter profits for Starbucks were down 97%. How many board members headed for the top of the Space Needle after hearing that number?

Second on my list of over-priced joys is Whole Foods. I enjoy Whole Foods. The stores are organized; the staff is helpful. The last time I went, I had a bitter expression on my face. One of the employees actually stopped me to make sure that everything was going well in my life. Considerate. Yes. Creepy. A bit. But, despite Whole Foods' questionable practices of selling a number of non-organic items and some processed foods as well as its deplorable record regarding employee's rights (i.e. its refusal to allow the creation of unions), I believe that they mean well -- they want to make money while offering natural, healthy, earth-friendly items. They do the best that they can, and they do it well.

How is Whole Foods faring? Ick. Not as poorly as Starbucks, but their profits are down. The company acquired another natural grocer two years ago and is still fighting the FTC because it claims that would make Whole Foods a "monopoly." Hmmmmm - a monopoly in the natural foods' market?! That seems as insane as a $4.00 latte to me. Right. Whole Foods = monopoly but Walmart = not a monopoly? Add reversing the lobotomies of the FTC members to Obama's to-do list.

People turn away from organic in down times because it costs more. I can't imagine not making every effort to purchase organic. In addition to its FTC trouble, Whole Foods' business model of slow expansion seems to have hurt the company. Since gas is more expensive and people are driving less, they are not as likely to drive across town to the one Whole Foods in a thirty-mile service range. Unfortunately for Whole Foods, Kroger, the country's largest grocery store chain began stocking organic and natural foods two years ago. The company is committed to growing this line. The forced use of ethanol has also affected Whole Foods' offerings and prices since corn is more expensive now. What's the future for Whole Foods, then? Right now, the company's baggage resembles the colon of a life-long red meat eater. In short, it's compacted, smelly, unattractive, and bloated.

The demise of Starbucks may mean the return of coffee culture; therefore, I view its death as the last symbol of the greed born in the 80's and fueled by Baby Boomers. On the other hand, the fall of Whole Foods may not necessarily mean a resurgence in small health food stores. I think that Kroger will do well with expanding the natural foods market for a period of time and then it will implode. Kroger cannot acquire components of a niche and then claim to be an expert. A future still exists for Whole Foods, but I imagine that the near future will bring a sixty-mile drive for quinoa instead of a thirty-mile trek. Sorry, hippies. Maybe it's time to start composting and finally planting that kitchen garden.