Email reveals who’s really paying for Amazon Prime’s new discount at Whole Foods: vendors

The thing about straws is you never know which one is going to break the camel’s back. And though many or most suppliers of Whole Foods Market may not know it yet, the company is in the middle of rolling out yet another pretty hefty straw. This could be the one.

In early June, Whole Foods announced what many knew was coming—a significant  integration of Amazon’s prized Prime membership program into its crown-jewel acquisition, Whole Foods Market. As of June 25, Amazon Prime members will receive an extra 10 percent discount on “hundreds of sale items” at Whole Foods stores nationwide.

“Since launching Prime savings at Whole Foods Market, we’ve seen excitement and momentum from both Prime members and our supplier partners,” said A.C. Gallo, president and COO of Whole Foods Market in a statement. Flyers and Whole Foods team members are in place to educate customers in-store.

But if shoppers are getting a discount, someone in the supply chain is taking the hit. And in the case of the Amazon Prime discount, internally called the Prime Savings Program, it’s food companies, large and small, that are getting stuck with the bill.

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