UNFI is being overrated in my opinion. Organics will fall just like Atkins. People are realizing that organics are not any "healthier" than non-organic food. Sure, maybe a piece of puffed rice is better than 6 pounds of bacon a day (a la Atkins), but overall, it's not based on any good science. Organics success is marketing.
Organic food, unlike Atkins, is not a fad. It's how all food was before the 1940s, and that goes back a long time. I've been eating organic food since the 1970s, a 30-year personal fad if there ever was one.
I'm thrilled that organics are finally hitting the mainstream and we can profit from public companies that bring them to the market.
Where is the proof about the link to breast cancer, and that eating hormone-fed chickens kills you? A Perdue chicken, sorry folks, looks a lot healthier than a chicken from the organic lot which appears to suffer from malnutrition (or worms). Just remember, every time you bite into a "healthy" organic/rabbit-food raised chicken, you stand a much higher chance of eating something that has been infested with worms, larvae, and feces. Mmmm....scrumptious. Boy, I just looove to eat feces.
Cash I have no numbers to back up my views (well actually I do using UNFI's last qtr #'s) other than fact UNFI beat estimates last qtr in earnings & revenue. Plus UNFI raised guidance. Now last qtr WFMI missed on earnings & got beat up where as OATS had a good qtr and yesterday WFMI had a good qtr & Oats had a good qtr. Now let's see these 2 companies are UNFI's biggest customers. I listened to UNFI's last CC and they discussed opening more distribution centers (hopefully buying/leasing rather than building). This will help curb fuel cost. In yesterday's earnings announcements WFMI & OATS both announced opening more stores with plans for more. Supervalu has said they will open 50 SunFlower Market stores in next 5 years which may not be significant to you. But does anyone reading my post see a pattern here? UNFI is biggest organic & natural distributor; the market leader. It's opening more distribution centers. WFMI & OATS are opening more stores. UNFI also supplies thousands of other stores. UNFI is projected to grow earnings by 17% over next 5 years by analysts. Organics is a hot market and Bank Of America analyst back in December after upgrading UNFI commented CEO FUNK had a good relationship with Whole Foods. One concern I have seen is UNFI's contract with WFMI expires in 07 and there is a question about whether Whole Foods might put the screws to UNFI with regards to a new contract. However WFMI is not Walmart. But hey I have no crystal ball. Maybe UNFI's earnings will sux later this month. But I believe I have made a strong case to hold UNFI as a growth play and management hopefully will become more efficient and continue expanding margins. Good Day.
Organic snob? I do not think soooo, I know this Org. is and has been the ONLY growing segment in the grocery industry!!! Double digit for years and growing.
Here is the skinny, Schools, hospitals,Kids are into the natural and organics.....
This category is just in the infancy of what it will become!!!! those in the industry see it and know it is far from the leveling off.
UNFI in conjunction to Organics will not be as it is enjoying today. Whole foods is up and rocketing forward. UNFI is not and will not enjoy the growth with them. They are growing with self distribution.
Sunflower market is and will be insignificant to the big picture in means of $$$$$ in supply.
That will diminish quicker than whole foods. Oats would make a very nice addition to Sunflower markets in the big picture would they not? They will be absorbed and UNFI will become a small supplier to them.
LOL, another organic "snob," thinking he is above those who eat normal food that, god forbid, was sprayed so that a disease carrying worm doesn't get inside. Can you sound any more insecure?
The problem is the hype is dying. The research in any peer-reviewed journal (aka real journal for those idiots on this board), is severely lacking. Supportive "research" is nothing but anecdotes, or a publication in the "Western Journal of Organic Quasi-medicine." Got any links in Index Medicus to support your organic fad? Just curious. Oh...but you're judging me by my handle. LOL, just like all the other organic followers: "I want to be different, like everyone else."
I assure you that this is far beyond a fad. Fads pop on a scene and get over sensationalized. Organics are a movement and a choice to a healthty eating. Clinically Organics have all the facts to support the choice of converting selectively.Try an Organic Banana or tomato, better yet a braburn apple. Tell a breast cancer victim that the foods do not matter!!!!
Organics is a real deal and is only going to grow. This is the issue for UNFI. They will see competition and will loose market share.
Super Valu will not have UNFI as a primary supplier, That is thier job and they will do it well.