A media frenzy has ignited since the acquisition as Amazon continues to change the food industry forever. The company’s aggressive plans to conquer the food sector is influencing more grocery chains and even restaurants to jump on the on-demand delivery bandwagon.
On Wednesday, Amazon made a few announcements sending shock waves through the industry. Whole Foods will be selling turkeys to Amazon Prime members for 50 cents less than non-Prime member price.
Besides the discount for Prime, the grocery chain is cutting prices on a list of items at all stores, most of which are holiday staples. The items include organic russet, potatoes, organic sweet potatoes, value pack boneless skinless chicken breasts, canned pumpkin, Chobani yogurt, and more.
“These are the latest new lower prices in our ongoing integration and innovation with Amazon, and we're just getting started," said John Mackey, Whole Foods' co-founder and CEO, in a press release announcing the new sales. "In the few months we’ve been working together, our partnership has proven to be a great fit."
This latest announcement, along with Amazon’s latest moves over the last month has had an impact on food stocks.
Kroger, a competing grocery chain, has seen a 3.5% drop in its stock since Wednesday’s announcement.
However, Walmart is gaining on Amazon. Its online sales have grown by 50% and its expanding its online grocery pickup service. Although the retail giant is targeting the grocery business, it’s making a major push in the apparel space. This is likely a move in response to Amazon encroaching on the food sector.
"Our goal is to create a premium fashion destination on Walmart.com," said Denise Incandela, head of fashion for Walmart U.S. eCommerce, in a press release. "We see customers on our site searching for higher-end items, and we are expanding our business online to focus on adding specialized and premium shopping experiences."
Walmart’s stock has spiked by 9%, according to a statement the company made on Thursday.
But grocery chains aren’t the only ones being forced to up the ante’.
Food companies like Campbell Soup, Kellogg, J.M. smucker are seeing a drop in stock prices. This isn’t surprising as Whole Foods products are mostly premium, specialty brands and consumers are gravitating more so to products label “organic,” “all-natural,” and “vegan.”
Read more about Amazon’s latest move at Business Insider.