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Error by FTC Reveals Whole Foods' Trade Secrets
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· Whole Foods set "ground rules" barring suppliers from selling directly to Wal-Mart. "It wants Wal-Mart to have to go through distributors because that raises Wal-Mart's costs," the document said.
· Company documents labeled "Project Goldmine" predicted that buying Wild Oats and shutting down certain stores would increase revenue 85 to 90 percent at nearby Whole Foods stores.
· The takeover will send as many as 80 to 90 percent of Wild Oats shoppers to Whole Foods stores, according to Whole Foods documents cited by the government. "As a result, they will unambiguously be worse off," because of increased prices, the FTC argued.
Kate Lowery, a spokeswoman for Whole Foods, said the company has "no idea how many stores" would be closed if the purchase goes through.
Sonja Tuitele, a spokeswoman for Wild Oats, said the release of confidential information is "obviously unfortunate and unfair" to the companies involved.
[Other FTC documents filed in the case revealed that Wild Oats may have retaliated against its former chief executive, Bloomberg News reported.
Perry Odak, who led Wild Oats until October, testified on behalf of Wild Oats in a probe that led to the FTC's suit to block the acquisition, the agency said.
"After receiving the transcript of Mr. Odak's testimony, the defendants appear to have withheld certain payments due to Mr. Odak," the FTC said.
Wild Oats management said the allegations aren't true, Tuitele said.]
