SPECIAL ALERT |
CAMPAIGN UPDATE
Organic Trade Association Board Gets More Organic
The Organic Trade Association has a new board president: Matt McLean, CEO and founder of Uncle Matt's Organic Inc., an all-organic citrus juice and produce brand.
McLean succeeds Julia Sabin of Smuckers, who served as president for the past three years. Sabin's OTA presidency was highlighted in an Organic Spies video. Organic Spies argued that, as VP of the "natural" division of a primarily conventional company, Sabin would support Food Inc.'s efforts to co-opt and water-down organic while protecting industrial agriculture's GMOs and factory farms.
Sabin continues to serve as an OTA board member, but another OTA leader profiled by Organic Spies, Chuck Marcy of Marcy and Partners, has retired from the Board after serving three full terms, nine years, including eight years as board treasurer.
Marcy was President and CEO of Horizon Organic from 1999 until 2004, when he sold Horizon to Dean Foods for $246 million. Organic Spies argued that the largest conventional milk company controlling the largest organic milk company benefitted Dean Foods and conventional agriculture more than Horizon and organic agriculture. Organic Spies made the case that the Dean-Horizon merger is the reason Horizon fought enforcement of the rule that organic cows must graze on pasture and why the OTA adopted the failed strategy of advocating for "coexistence" between organic and genetically engineered alfalfa, rather than trying to stop GMO alfalfa and the threat that this perennial crop would contaminate and destroy organic alfalfa. (Horizon finally submitted to the organic pasture rule after an OCA boycott, but the USDA ultimately rejected coexistence and approved GMO alfalfa without regulations to protect organic.)
Other officers of the new OTA board are:
- Sarah Bird (Annie's Homegrown, Division of Annie's Inc.) as Vice President-United States - NATURAL/ORGANIC
- Gunta Vitins (Vitins Consulting) as Vice President-Canada - N/A
- Kristen Holt (Quality Assurance International) as Treasurer - ORGANIC CERTIFIER
- Todd Linsky (Cal-Organic/Grimmway Farms) as Secretary - ALL ORGANIC
Other members of the current board are:
- Tony Bedard (CEO of Frontier Natural Products Cooperative) - ALL ORGANIC
- Melody Meyer (VP of Global Initiatives, UNFI) - MOSTLY NATURAL
- Scott Nash (CEO of Mom's Organic Market) - MOSTLY ORGANIC
- Tom Cowell (Growers International Organic Sales Incorporated) - ALL ORGANIC
- Nicole Dawes (Late July Organic Snacks) - ALL ORGANIC
- Chris Ely (Applegate Farms) - NATURAL/ORGANIC
- Kelly Shea (WhiteWave Foods) - CONVENTIONAL/NON-GMO/ORGANIC
- Craig Weakley (Craig Weakley Consulting) - N/A
- Leslie Zuck (Pennsylvania Certified Organic) - ORGANIC CERTIFIER
IMPORTANT NEWS
Barbarians at Whole Foods Market's Gate?
Shares of Whole Foods Market jumped to more to $68 amid intense speculation, as reported by the Daily Mail, that cash-rich private equity firms, including the daddy of them all, KKR and Bain Capital, could be lining up a cash offer at a substantial premium to the prevailing price, around $90 a share.
Whole Foods Market is the world's number one organic food seller and is valued at around $11.8 billion.
The Daily Mail noted, "The fact it carries no debt has attracted considerable private equity interest and it's more than likely that should it come under corporate attack from that area."
KKR was the subject of the best selling book and HBO movie "Barbarians at the Gate," which tells the story of Henry Kravis, the master of leveraged buyouts at Wall Street's Kohlberg Kravis Roberts & Company, and his $31-billion-dollar leveraged buy-out of RJR Nabisco in 1988.
What would it mean to have a private equity firm running Whole Foods?
Private equity firms aren't grocers running a supermarket, they are short-term investors who manage "bundles of assets." Their goal is to suck cash out of the enterprise, not invest in production services, or employees.
As Business Week put it (10/30/2006), "Private equity firms are using slick new tricks to gorge on corporate assets, helping themselves to fat fees while leaving the companies they sell dazed and depleted."
If this were to happen to Whole Foods, the result would probably be an intensification of the trend towards more green-washed, so-called "natural" junk foods and less healthy, farm-fresh, certified organic whole foods.
And, certainly the likes of KKR would have no incentive to allow Whole Foods to do anything like committing to go non-GMO, as it has with its store-brand products.
Quality, service, employee health care, wages and benefits, cause marketing, community investment - everything Whole Foods did outside making a profit would be at stake if KKR took over. And, with the debt a leveraged buyout dumps on its victim, there would be no way for Whole Foods Market to ever recover.
Learn more: A Workers' Guide to Private Equity (PDF)
VIDEO OF THE WEEK
Are Americans aware of GMOs in their food? Do they want them labeled? Label GMOs has some answers.
Label GMOs, Committee for the Right to Know, is a political action group that strives to bring awareness to the public regarding genetically modified (GMO) foods. Label GMOs is spearheading an upcoming ballot initiative in California to require companies to label foods that contain GMO products.
Check out Label GMOs' YouTube channel to watch their new videos
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Sponsored Message
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Join the OCA-Endorsed National Buying Club for Organic and Non-GMO Foods: The Green Polka Dot Box
OCA is happy to announce the formation of a new national distribution service for home delivery of organic and non-GMO foods, at 30-50% below the cost of retail, with free shipping on orders of $150 or more. The new national distribution club is called the Green Polka Dot Box (GPDB).
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