FTC OK's Several Whole Foods Divestures

WASHINGTONFTC announced it acted on several applications related to the divesture of stores and intellectual property as required after the Whole Foods Market acquisition of Wild Oats Market Inc. in 2007. In a letter to The Food Partners, which had filed the applications, FTC noted it approved three petitions related to certain store sites and Wild Oats intellectual property, and denied a fourth petition.

As far as store locations, A-M Holdings, the holding company for Alfalfas Market, will acquire and operate the existing Whole Foods location at 1621 Broadway in Boulderthe original site of Alfalfas Market. Healthy Investments petition to acquire a Whole Foods location in Kansas City, Mo., was also OKd, as was the request from Trader Joes East to acquire a closed store location in Portland, Maine, which it will re-open as a retail outlet.

Regarding intellectual property, Topco had sought to acquire the Alfalfas and Wild Oats names and related intellectual property, which it hoped to use for its member-owners to brand their in-store natural and organic sections and cafes, as well as lines of branded products. A-M Holdings also sought the Alfalfas name and intellectual property to use in its store operations; Luberski Inc. filed to acquire the Wild Oats name and intellectual property to develop and supply a Wild Oats line of natural and organic packaged foods products and to open Wild Oats stores by licensing the name to developers. FTC determined the Topco proposal did not satisfy the purposes of the divesture of the intellectual property, so denied Topco and approved the A-M and Luberski applications.

In a release from Alfalfas, Mark Retzloff, co-founder of Alfalfas Market, said the company expected to close the location at Broadway and Arapahoe around the end of July to do an extensive remodel, and reopen by the end of 2010. He added, We are thrilled to bring Alfalfas back to our hometown of Boulder in the exact location where it all started. As Boulderites ourselves, we will be able to directly address the needs of this community with our passion for natural and organic food, and health care products. We are working with a team of seasoned foodies, retail and organic industry pros to develop a new, state-of-the-art retail experience while maintaining the local, all-natural and community market feel Alfalfas was always known for.