Whole Foods swallows
smaller rival, according to the headlines today. What's interesting is
how the bit of the food sector variously described as "luxury" or
"health-conscious" or "organic" has exploded in recent years. It's now,
with Wal-Mart's organic initiative, firmly in the mainstream (and on
Main Street). And valuations are climbing for these 'green' foodstores (Whole Foods trades at around 30x earnings compared to traditional grocer Safeway at about 18x). So I'd expect more dealmaking and consolidation as green foodsellers like Chicago's Treasure Island and Trader Joe's
expand beyond their regional bases. I'm interested in specialty foods
because - the concept of "food miles" aside - I think there's some
great opportunities available in the smaller end of the market. Forage Food, out of clean, green New Zealand, is one great example of a company that should grow and grow.