Food Roundup: Whole Foods Stung by Rivals, Cargill Profits Up, Aldi Pushes into U.S., and More

Whole Foods Says Rivals Won’t Help It in FTC Fight — It’s a real pain when your competitors just won’t come across with their private financial data. Whole Foods has been asking for just that from 93 rivals as the troubled natural-foods grocer fights the Federal Trade Commission’s attempts to undo its 2007 acquisition of Wild Oats Market.

Some of those rivals – “a certain number” a Whole Foods exec vaguely puts it – aren’t playing ball, and the company says that’s hurting its case.

The FTC’s case is a silly one for at least two reasons: first, the $565 million merger has been complete for more than a year and most Wild Oats stores have already been converted; second, the notion that Whole Foods has any real control over the natural-foods market is belied by the company’s own dismal results. Even Kroger sells natural foods these days.

Two of the chains approached by Whole Foods – Gelsen’s of southern California and New Seasons in Portland, Ore., have asked courts to throw out the chain’s subpoenas.

A hearing on the merger is slated for April. [Source: Reuters]

Cargill Profits Up on Fertilizer Sales — The closely held food-processing giant said it earned $1.19 billion in its second quarter, up 25 percent thanks largely to its 64 percent investment in Mosaic, a maker of fertilizer.

The company doesn’t report revenues or break out its profit numbers by segment. But it said that, excluding Mosaic, earnings would have been “moderately below” those of the year-ago period.

The highly diversified company has a cushion against the spiraling economy, but it is not immune. “We don’t expect our company to be spared the difficulties that come with a worsening economic environment,” said Lisa Clemens, director of investor relations.

The Wall Street Journal noted that “it’s not clear how long the fertilizer business will continue to lift Cargill’s earnings” since demand for crops has diminished. [Source: Wall Street Journal]

Aldi Plans Push in U.S. Market — The German grocery discounter with the Soviet-style ambiance will open at least 75 stores in the United Stated this year, including one in New York City, it’s first there.

The recession will help draw customers to Aldi’s ultra-cheap goods. Store brands make up nearly all of what it sells, by volume. The average among other grocers is about a fifth.

Aldi operates about 1,000 stores in the U.S. [Source: Wall Street Journal]

Analyst: McDonald’s Becoming a ‘Major Player’ in Coffee — Stifel Nicolaus analyst Steve West said in a note to investors Tuesday that the burger chain could boost per-store sales by between 3 percent and percent once its “McCafe” specialty-coffee bars are fully installed.

McDonald’s is about halfway there, and expects to have the coffee bars in nearly all outlets by mid-year. [Source: AP]