Stores See Green With Organic Products

By Cathy Jett, The Free Lance-Star, Fredericksburg, Va.

Apr. 13–Finding organic products in the Fredericksburg area used to mean a trip to a speciality store.

Now everything from organic paper towels to poultry can be found at the supermarket.

And availability is increasing.

Food Lion, for example, is converting six of its Fredericksburg-area stores into Blooms, which will have a dedicated section for organic items called Nature’s Place.

Giant plans to expand its in-house Nature’s Promise organic line to nearly 200 items by the end of the year. And Ukrop’s has come out with its Ukrop’s Own Chicken, which is raised without antibiotics or chemical medicines.

Now even mega-retailer Wal-Mart is starting to throw its weight behind organics. It recently doubled the number of organic products as it tries to attract more affluent consumers and burnish its image. It’s also testing the appeal of more than 400 organic items at its newly opened Supercenter in Plano, Texas.

“It could be a tipping point if the demand from Wal-Mart rapidly boosts the number of people getting into organic farming,” said Michael Sadowski, senior advisor at SustainAbility, a think tank that coined the term “green consumer.”

Shoppers are snapping up organic items more and more because they feel they fit into a healthy lifestyle, said Holly Givens, spokeswoman for the Organic Trade Association, which has represented organic businesses in North America for 21 years.

That attitude is fueled by such studies as a recent one from researchers at the University of California, Davis, that found that organically or sustainably grown berries and corn contain up to 58 percent more polyphenolics. These natural antioxidants are a natural defense for plants and may be good for human health.

“Some consumers begin using [organic products] for the first time because of a health event, such as having a baby,” Givens said. “It makes sense that, as a prospective parent, you might be looking at your lifestyle and saying, ‘Hmm, what do I want to do to take care of my family?’ and revise your life a bit.”

Sales of organic items have increased about 18 percent a year since 2003, she said. “Prior to that, it ranged from 17 to 23 percent. On average, sales have increased 20 percent a year since 1990.”

Currently, the fastest-growing category for organic foods is meat and poultry, Givens said. Sales of organic baby formula and baby clothes and diapers made from organic fibers also are experiencing a growth spurt. They climbed 44.8 percent from 2002 to 2003.

Organic items first started cropping up in Fredericksburg-area grocery stores about five years ago. Soon, Giant and Ukrop’s were selling some under their own private labels.

“We wanted to cater to the segment of our customers who are interested in natural and organic products,” said Giant Foods spokesman Jamie Miller.

“Customers are looking for healthier products that don’t contain pesticides, synthetic fertilizers, growth hormones or antibiotics.”

Giant started out with 25 of its Nature’s Promise items, including milk and soy milk, in October 2004. It now has more than 100 nonperishable Nature’s Promise items, including eggs, chicken and frozen veggie burgers.

“Feedback has been very positive,” Miller said. “That’s been one of the factors driving us to increase product selection. Customers generally feel it’s a good-quality product at a good price, particularly compared to national organic and natural food brands, which tend to be a little bit higher in cost.”

At Ukrop’s, most natural and organic products are grouped together in one section of the store. Shelves laden with soaps, soups and cereals are surrounded by refrigerated cases of yogurt and frozen wild salmon.

Jane Garland, who started working in the natural food section four years ago, said sales have tripled since then.

“My cereals do really well. Kashi is probably the most popular,” she said.

“My chips do really well, too. We also have wheat-free and gluten-free, which are a big thing in this area.”

Ukrop’s sells a number of national brands of natural and organic products, as well as some under its own Full Circle label. Products are available off the shelf or can be special-ordered by the case for 10 percent less.

“A lot of people do that,” Garland said. “Organics can be pretty pricey.”

Food Lion also is starting to group most of its natural and organic products together. Its new Bloom stores, for example, will feature a Nature’s Place, which will have everything from chips, soups and pastas to items packaged in bulk.

“We wanted to provide a complete health destination point,” said Bloom spokeswoman Karen Peterson. “Shoppers are becoming more health conscious.”

Food Lion plans to remodel six of its Fredericksburg-area stores as Blooms, and will add Nature’s Place departments as it remodels some of the other stores. Natural and organic produce, seafood, poultry and meat will remain in their traditional sections.

Wal-Mart, already No. 1 in organic milk sales nationally, expanded into products ranging from pickles to macaroni and cheese last month.

“Clearly there’s popularity there and there’s volume there,” said Jeffrey Metzger, editor of the trade magazine Food World. “But the move also ties into Wal-Mart’s shifting game plan. They want to appeal to a higher demographic and broaden their market.”

He said Wal-Mart officials have seen the success of stores such as Whole Foods, which has long carried organic and natural items, and is “wildly popular” with younger, more affluent consumers.

“It’s going to have an impact,” he said. “They’ll be the largest player by size and scale.”

But, he said, Wal-Mart may not be as successful getting small organic farmers and cooperatives to reduce prices as they have been with such huge corporations as Kraft and Unilever.

“The supply is quite limited,” Metzger said. “These niche operators will not care as much if they deal with Wal-Mart.”

—–

To see more of The Free Lance-Star, or to subscribe to the newspaper, go to http://fredericksburg.com/flshome.

Copyright (c) 2006, The Free Lance-Star, Fredericksburg, Va.

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.