Amazon-Whole Foods alliance could strain the organic supply chain
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Online retail giant Amazon is on track to close its acquisition of the natural and organics grocer Whole Foods. Whole Foods has been losing sales in recent years as competitors ramp up their organic offerings at lower prices. Now Amazon says its working to “make high-quality natural and organic food affordable for everyone.” Analysts expect that will happen partly through a ramp up of private label products. The Whole Foods 365 brand will be available to millions of households that probably have not been exposed to it before. And that could spell trouble for competing name-brand organic food makers. If there’s a run on a particular ingredient small organic companies need for a product, it could put those companies in a difficult spot by threatening the supply chain.
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