WhiteWave Proves Whole Foods' Results Dead Wrong

NEW YORK (TheStreet) -- With its first quarter results, WhiteWave Foods (WWAV) showed Whole Foods Market (WFM) investors that there is still money to be made in the organic beverage and food space.

Shares of Whole Foods are down close to 20% on the week, while WhiteWave's jumped 10% after releasing quarterly results. Shares of WhiteWave are back up near 52-week highs, at the same time that around a third of the population is lactose intolerant. There's another large part of the consumer market that has chosen to simply cut dairy out of their diets. Both are big positives for WhiteWave.

WhiteWave still has a large presence in both almond milk and soy milk. The company owns the soy and almond milk market, having over 25% of the market share for each. Now it's looking to capitalize on the increasing appetite for other natural and organic foods.

Eating healthy is proving to be a very powerful trend. WhiteWave Foods is proving to be the best pure play on this movement market.

There are some key growth areas for the company, the first being the expansion of its Horizon brand. It will soon launch Horizon brand kids' snacks. It has already launched Horizon macaroni and cheese.

Its $600 million acquisition of Earthbound earlier this year gave WhiteWave the brand presence and scale potential to take on the organic foods industry head on. Earthbound currently has a leading position in the organic packaged salad category, owning 45% of the market share. Earthbound plans to expand into the organic bowl salad kits, as well as single serve salad kits.

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