Hearing Pivots On Cost Of Natural & Organic Foods

The Federal Trade Commission's objection to the Whole Foods - Wild Oats merger plan went before a judge yesterday, and the heart of the issue being considered is how much eco-conscious consumers will pay for their food.

Whole Foods has lowered prices when faced with competition in a community for the organic and natural foods that are its trademark, an economic expert testifying for the government said. Taking away its major competitor will logically mean prices will rise in markets where the two now compete, or may compete in the future.

Meanwhile, the expert for Whole Foods said its main competitors are mainstream super markets, and that few customers shop only at its groceries to the exclusion of others. The hearing continues today.

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