Wal-Mart to Drop Wild Oats Organic Food Brand -- Sources
April 25 2016 - 2:02PM
Dow Jones News
By Sarah Nassauer
Wal-Mart Stores Inc. is phasing out its Wild Oats organic food
brand, according to people familiar with the matter, dropping a
line of products introduced two years ago to bring inexpensive
organics to the masses.
The world's largest retailer has unwound a complicated deal with
private-equity firm Yucaipa Cos. that allowed it to sell Wild Oats
pasta sauces, cereals and other shelf stable products, the people
said. The products will disappear from Wal-Mart shelves in coming
months, they added.
Two years ago, Wal-Mart turned to Yucaipa as a faster way to get
more organic products on shelves as competitors like Kroger Co. and
Costco Wholesale Corp. reported skyrocketing sales of their own
natural and organic store brands. Yucaipa, which is run by
billionaire Ron Burkle, bought the Wild Oats brand after the
grocery chain was sold to rival Whole Foods Market Inc.
Now Wal-Mart is switching tactics, hoping to add organic
products to shelves in other ways, including selling more fresh
produce and going it alone by adding more organic food to its
existing store brand, Great Value, these people say.
Spokespeople for Wal-Mart and Yucaipa declined to comment.
Write to Sarah Nassauer at sarah.nassauer@wsj.com
(END) Dow Jones Newswires
April 25, 2016 13:47 ET (17:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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