Dive Brief:

• Annie's reported adjusted earnings per share of 29 cents for the fourth quarter, well below the 34 cents a share that analysts anticipated.
• Among the problems cited for the poor performance was the cost of organic wheat. Inflation costs for that commodity reached 20% in the quarter.
• The company also warned of trouble ahead in an expected inventory reduction by Annie's biggest customer: Whole Foods.

Dive Insight:

There are ways for Annie's to address the crazy price swings in the commodity markets. No doubt the company is working hard to find a more effective price-hedging strategy.

Getting past the Whole Foods hurdle will be tougher. Its unclear what other retailer would want to step in and buy as heavily from Annie's as Whole Foods has.