Will "Alternative" Foods Go Mainstream?

Since Whole Foods built a new store in Highland Park in 2001, I have been a regular at the store. Despite higher prices, I was attracted to a much higher level of cleanliness, a thorough description of food content and the option of no and low fat foods. In the meantime, I watched Tom Thumb close down a recently remodeled store and asked myself, "why don't they sell some of those Whole Food products?"

The recent purchase of 84% of Tom's of Maine by Colgate-Palmolive (stock symbol:CL and founded in 1806) for $100 million points to movement in that direction. Tom's of Maine was started in 1970 by Tom Chappell as a "natural" product category company with deodorants and toothpastes. Last year sales were about $50 million. In light of Tom's high profit margins, it doesn't appear that CL overpaid. Rather, Tom's will get heavyweight distribution and CL will begin to get that product line that Tom Thumb lacked. Winners all around?

Not likely. It looks like Whole Foods may be the ultimate loser through franchise erosion. As production and distribution gets more efficient for Tom's through CL's efforts, other food chains will have the ability to carry such products. While Whole Foods may argue that Tom's should not diminish its brand by selling through inorganic, animal-haters, CL will logically argue that if Tom's is good for the world, why limit its distribution?