Has the Economy Killed the Health Food Craze?

It is no secret that in a worsening economic environment, society tends to think twice about spending on luxuries. What exactly is considered a luxury can be problematic to define. Can food be a luxury? To some, certain foods, such as fruits and vegetables can be.

According to a recent research poll published Monday in the U.K., 15% of Brits are cutting back spending on fruits and vegetables, 7% said they are spending more on alcohol, and another 6% are buying more cigarettes, since the start of the British credit crunch about one year ago.

It is not surprising to learn that McDonald's (MCD) posted a 7.4% rise in U.K. sales in the second quarter. It is also not surprising to see the plummeting stock chart of Whole Foods (WFMI) over the past year. Whole Foods has been battling the FTC over its acquisition of Wild Oats, and the large increase in food costs.

The rise in food costs is making executives nervous over at Whole Foods, so much so that the company has initiated a guide for shoppers to save money while shopping healthy. According to a recent press release:

Whole Foods Market has recently initiated several programs that show consumers "how to shop Whole Foods Market on a budget." These include:

• "The Whole Deal[TM]" value guide which highlights great product steals and offers money-saving coupons and tips, and budget recipes to help shoppers continue to enjoy quality organic and natural foods while stretching their food dollar

• Value Tours: In-store "Value Gurus" lead Value Tours to show customers how to find the best deals and enjoy savings

• Promotion of 365 Everyday Value® items, the company's private label brand Promotion of family packs, value packs, and weekly promotions and deals

• "The Whole Deal" customer tips site with shopper suggestions and ideas on stretching your food dollar, found here

The press release also declared that about 80% of polled adults do not want to cut back on quality foods, and about 70% said that they continue to buy the same healthy food no matter the worsening economic condition.

So who do we believe, the British study or the Whole Foods poll? Are Americans finally waking up to the obesity epidemic? Dear I ask, are the British less concerned about their health than Americans?

Those are difficult questions to answer without further information and data, which would not be helpful unless we live through another couple of poor economic years. We can however criticize the British study on the fact that it does not distinguish between those who live a healthy lifestyle and those who do not. This is relevant, since we need to find out whether people who eat healthy are switching over to unhealthy food, or whether healthy people stay healthy, but spend less.

Personally, and this is my opinion, there have been trends over the last decade or so that seem to be quite strong. This includes better education for the masses, especially with the advent of the internet, and this makes the ignorance factor less relevant in today's society. Not many people can truthfully make the excuse "I didn't know" regarding what types of food are healthier.

Of course, I may be naive on this point, but I whole-heartedly believe, especially with the younger generation, that a trend towards better health, including quality fresh food, exercise and less smoking, is stronger than the opposing forces of a slumping economy.

I also believe that manufacturers and distributors of high quality foods would have been forced to start cutting back on their asking prices if demand was indeed waning, which does not seem to be the case according to the latest polls and research studies.

While there may be a reflexive reaction to an economy in recession, over the long haul society has made its decision to live a healthier lifestyle.

Disclosure: None

Comments

[retailwatcher:]

I wonder if 'cutting back' is just 'not throwing out' ?

In other words, leftovers are now eaten, thereby cutting back on the amount of groceries purchased weekly.

2008 Sep 11 11:35 AM

[DrA:]

"While there may be a reflexive reaction to an economy in recession, over the long haul society has made its decision to live a healthier lifestyle."

I fully agree with that statement. Society has surely started to take a step in the right direction, for a better life. It also helps from a financial perspective;

you may be paying a little more for healthy food, but you will be saving LOTS more in healthcare costs in the future.

2008 Sep 11 12:49 PM

[selene:]

Disagree STRONGLY with the implication that you have to shop at WFMI to get healthy food.

2008 Sep 12 09:34 AM

[DrA:]

selene,

im not sure the author is making the case that Whole Foods is the only place to get healthy foods. I think he just used it as an example. his point is that generally health food and proprietors of health food should do well regardless of the economy. at least, thats how I understood the article.

2008 Sep 12 12:03 PM

[Francorp:]

I still feel that we are seeing a great deal of health food concepts and that people in most cases are choosing to eat healthy.

2008 Sep 24 01:48 PM

[mhogan:]

Have you been to a whole foods lately?? Maybe it's just Houston but I am still waiting in line for 10 minutes... Nothing changed down here. I Agree with pangaea also. It is not a craze it is my way of life and many more will pick up on it, trust me!

2008 Oct 23 10:04 AM

[User 364560:]

it's right that every one go for healthy food. in "cutting back" we would not make any compromise with healthy food. it's depend on also your life style. well now a day the healthy food is like a life style also. it is necessary too for your healthy life.

Feb 26 12:50 AM