The "Fast Money" traders debated whether there may be opportunities in the grocers after Sprouts Farmers Market issued disappointing guidance, dragging down other names in the space.
Sprouts said in a statement that industry-wide promotions have negatively affected retail deflation and traffic generation, amid a "prolonged deflationary environment" and "competitive landscape."
Sprouts said it now expects third-quarter sales growth to be roughly flat. Wall Street had previously expected Sprouts to grow sales by about 2.2 percent during the quarter, according to a FactSet consensus estimate.
Trader Brian Kelly said he isn't interested in the grocers and would rather own something like sugar. He pointed to the Barclays Bank iPath Bloomberg Sugar Subindex Total Return, which has surged more than 33 percent this year.
Trader Steve Grasso said that he is more interested in the producers like Tyson Foods than the grocers.
Trader Guy Adami said he actually likes Whole Foods because of the risk and reward. He said that while this is "a challenged story at best," the stock closed at $29.08 on Wednesday, about a dollar above its 52-week low of $28.07.