Monday, May 08, 2006
Organic Food Goes Mass Market
It's getting cheaper to go organic.
In a bid to capture a slice of the fast-growing organic-foods market, mainstream supermarket chains are rushing out their own store-brand lines that can cost significantly less than comparable specialty brands often found at health-food and gourmet stores. The pricing could remove a big barrier for many Americans who have wanted to try organic rice, cookies or cans of soup but have been put off by the prices. Though the store brands are less expensive, the chains say they adhere to the same federal standards for what constitutes organic as other brands.
Driving these moves is a desire to capture some of the growing consumer interest in organic foods -- which are often perceived as more healthful and environmentally friendly because their ingredients must be grown without pesticides. Chains are also looking to push back against specialty-food retailers like Whole Foods Market Inc., which have siphoned away customers in recent years. The U.S. organic-food market generated about $13.8 billion in sales last year, up from $11.9 billion in 2004 and $3.6 billion in 1997, according to market-research firm Nutrition Business Journal. The firm estimates organics will reach $15.5 billion this year.
http://online.wsj.com/article/SB114670795156643418.html
In a bid to capture a slice of the fast-growing organic-foods market, mainstream supermarket chains are rushing out their own store-brand lines that can cost significantly less than comparable specialty brands often found at health-food and gourmet stores. The pricing could remove a big barrier for many Americans who have wanted to try organic rice, cookies or cans of soup but have been put off by the prices. Though the store brands are less expensive, the chains say they adhere to the same federal standards for what constitutes organic as other brands.
Driving these moves is a desire to capture some of the growing consumer interest in organic foods -- which are often perceived as more healthful and environmentally friendly because their ingredients must be grown without pesticides. Chains are also looking to push back against specialty-food retailers like Whole Foods Market Inc., which have siphoned away customers in recent years. The U.S. organic-food market generated about $13.8 billion in sales last year, up from $11.9 billion in 2004 and $3.6 billion in 1997, according to market-research firm Nutrition Business Journal. The firm estimates organics will reach $15.5 billion this year.
http://online.wsj.com/article/SB114670795156643418.html
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