Shares of several packaged food makers are sliding after Amazon (AMZN) announced new lower prices on additional grocery items at Whole Food stores. General Mills (GIS), Campbell Soup (CPB) and Kellogg (K) are all among the worst performers on the S&P 500 today. LOWER PRICES: Whole Foods and Amazon announced new lower prices on additional best-selling grocery items and holiday staples at Whole Foods stores, including a new lower price on organic and no antibiotic turkeys for all customers – and an even deeper discount on organic and no antibiotic turkeys for Prime members. According to the e-commerce giant, this offer is a sneak preview of the special savings and in-store benefits Prime members can expect when Prime becomes the official rewards program of Whole Foods. PRICE CUT NOT SURPRISING: Commenting on the news and noting that this is the third significant wave of price reductions, KeyBanc analyst Edward Yruma highlighted that the items now incorporate select packaged goods. The analyst told investors that he is not surprised at the reduced prices for turkey items heading into the holidays, especially given ample industry supplies and historically-low prices. Additionally, recent channel checks and industry sources indicate grocery retailers have lowered prices on dairy items in an effort to drive more in-store traffic, he added. PRICE ACTION: In afternoon trading, shares of Amazon are down about 1%. Meanwhile, General Mills, Campbell Soup and Kellogg have all slipped about 2%. Shares of Kroger (KR) and Sprouts Farmers Market (SFM), competitors to Whole Foods, are each down about 1% as well.
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