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CtW Investment Group Calls for Whole Foods Board to Remove Chair and CEO John Mackey
Date:8/25/2009

r supervision of executive communications in order to ensure that Mr. Mackey can cause no further damage to Whole Foods' brand and reputation in his remaining time with the company.
  • Commit to issuing a thorough and exacting annual review of all political or partisan uses of corporate resources, including a justification of any such expenditure, and make this review publicly available.

    • The CtW Investment Group works with pension funds sponsored by unions affiliated with Change to Win, a federation of unions representing nearly 6 million members, to enhance long-term shareholder returns through active ownership. These funds are substantial long-term Whole Foods shareholders.

    Whole Foods' Unique Strength and Vulnerability

    Whole Foods is the leading national provider of natural and organic foods, and as such has benefited from growing environmental and health consciousness among affluent urban consumers. However, this leading position makes Whole Foods uniquely vulnerable to disaffection from these core customers if they perceive that the company is not managed in a manner consistent with their values. Following the publication of Mr. Mackey's op-ed piece opposing President Obama's health care reform proposal on August 16, 2009, Whole Foods customers have reacted with outrage: at least 26,000 have now joined a Whole Foods Boycott page on Facebook. Numerous commentators have noted that a boycott of Whole Foods by politically progressive customers could cause a significant loss of shareholder value. We note with apprehension that the Company's letter of apology to customers - the necessity of which reinforces our concerns - appears to have done nothing to soften the backlash against Mr. Mackey, and unfortunately, Whole Foods itself.

    While we respect Mr. Mackey's First Amendment right to express his political views, as he did for instance in noting that the
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    SOURCE CtW Investment Group
    Copyright©2009 PR Newswire.
    All rights reserved

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