Food Roundup: FTC Wants to Block Whole Foods Merger, Peanut Butter Blamed in Outbreak, and More

FTC Wants to ‘Halt’ Whole Foods-Wild Oats Merger
Incredibly, the Federal Trade Commission is pressing ahead with its move to “halt” the merger between the two natural-foods grocers, despite the fact that the deal was made last year and the companies have been pretty much fully integrated.

The FTC on Monday asked a federal judge to stop any merger activity as the agency’s various legal claims makes their way through the courts.

The FTC says it may seek to undo the merger.

Whole Foods called the request “absurd.” As Lanny Davis, the company’s lawyer, put it, “How can you halt something that is already done?”

Whole Foods bought its rival in 2007 for $565 million, and has spent millions since then converting stores. The FTC objected to the deal before it closed, saying it would create a monopoly in the “natural foods” business.

As Whole Foods notes, many other grocers sell natural foods. And as Whole Foods’ own anemic business results have recently showed, the chain has plenty of competition. [Source: AP]

Peanut Butter Fingered in Salmonella Outbreak
The Minnesota Department of Agriculture and Health confirmed Monday that the salmonella strain found in batches of peanut butter distributed by King Nut, an Ohio company, matches the strain that has sickened nearly 400 people nationwide.

A five-pound container of King Nut peanut butter was found last week to contain salmonella. It was found at a long-term care facility in Minnesota. King Nut has recalled peanut butter under the King Nut and Parnell’s Pride brands, which are sold chiefly to hospitals, nursing homes, schools and restaurants. The manufacturer is Peanut Corporation of America. [Source: Reuters]

Constellation Brands to Sell Spirits Unit

The wine, beer and spirits giant will sell its bargain liquor business to Sazeric for $274 million in cash plus $60 million in debt financing as it sharpens its focus on premium wine and booze.

The sale includes more than 40 brands. Many of which sell for about $6 for a 750-milliliter bottle. The unit accounts for about 5 percent of total sales, and the sale will hurt profits in the short run.

Proceeds will be used to pay down debt. [Source: AP]

Landry’s Buyout Canceled

The restaurant chain ended its agreement to sell the business to its CEO Tilman Fertitta because it was unwilling to disclose financing terms.

Fertitta had been angling to buy the company for nearly a year. [Source: Reuters]

Ruth’s Chris Issues Warning

Ruth’s Hospitality Group, which owns the steakhouse chain, said fourth-quarter same-store sales would fall by nearly a fifth. The company blames a severe dropoff in traffic. [Source: Columbus Business First]