USA TODAY US Edition

Whole Foods deal excites small businesses

Companies eager to see how Amazon can boost their biz

- Rachel Layne

Jennifer Constantin­e, founder and CEO of JC’s Pie Pops, surprised a group of industry executives at the Natural Products Expo East show last month with her enthusiast­ic reaction to Amazon’s purchase of Whole Foods.

“One gentleman said, ‘A lot of the young brands your size are terrified, and they think they are going to get erased.’ But I think that’s the wrong way to look at it,” said Constantin­e. “If you’re a little brand and you’re not really making it happen, it’s going to hurt. But if you sell, then you’ve got a much bigger platform now.”

JC’S Pie Pops, based in Los Angeles, was formed in 2013 after Constantin­e, a songwriter by trade, accidental­ly froze her homemade panna cotta, an Italian dessert meant only to be chilled. Whole Foods helped Constantin­e break into the specialty foods market by selling her prod-

uct in a handful of stores. With $5.3 million in sales last year, JC’s products are now at dozens of chains including Publix, Giant, Sprouts and H-E-B.

For entreprene­urs in the natural food and products industry like Constantin­e, Whole Foods has served as a launchpad of sorts for companies looking to get on mainstream store shelves. Companies and local farmers often would get into one or two locations and grow from there if their products took off.

Like the big supermarke­ts and food manufactur­ers who are nervous about Amazon’s size and power, many small suppliers can see benefits of the combinatio­n, but are also concerned what it could mean for them.

“I’m a little nervous because we’re a smaller player, but as an entreprene­ur, I’m excited about the distributi­on potential,” says Anupy Singla, owner of Chicagobas­ed Indian as Apple Pie and author of three cookbooks. She started selling spices in 2015 at her local Whole Foods and now has products in about a dozen stores. Amazon “may mean I can actually reach more consumers now. That’s really what we’re talking about on one level, for entreprene­urs,” she said, “even though there’s uncertaint­y.”

Whole Foods has been important for start-ups because it brings credibilit­y through rigorous requiremen­ts in organic and natural categories, says Natalie Shmulik, a consultant at The Hatchery, a food business incubator in Chicago that provides entreprene­urs kitchen space, consulting and classes.

Change was already afoot at Whole Foods prior to Amazon swooping in. The chain was already streamlini­ng its purchasing process before the Amazon deal closed in August, shifting to regional buyers and more approval through its Austin headquarte­rs rather than individual stores or regions, according to business owners, venture capitalist­s and others in the industry. Previously, small-business owners often dealt with the buying manager for an individual store or region, which could make it cumbersome to expand.

Denver-based Birch Benders broke into Whole Foods through a single store in Boulder, Colo., after the company formed in 2011 and worked its way into the region. Now it’s available in 7,000 stores in different chains nationally, says CEO and co-founder Matt LeCasse.

“We’re Whole Foods’ No. 1 pancake brand,” said LeCasse. “What’s been really exciting for all of us is that ... our goal of getting better food into every American household is working.”

 ?? JENNIFER CONSTANTIN­E ?? Whole Foods helped Jennifer Constantin­e, founder and CEO of JC’s Pie Pops, break into the specialty foods market by selling her product in a handful of stores.
JENNIFER CONSTANTIN­E Whole Foods helped Jennifer Constantin­e, founder and CEO of JC’s Pie Pops, break into the specialty foods market by selling her product in a handful of stores.

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