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[9 comments]

Whole Foods Seeks 'Organic' Certification for Bodycare Products

June 24, 2010

By Bernice Hurst, Contributing Editor, RetailWire

The use of oil and petrochemicals in manufacturing bodycare products is something not all consumers consider when shopping. Additional confusion may be caused by the fact that some manufacturers label their products "organic" despite the presence of these ingredients. As yet, there is no official certification for this term on non-food products; the USDA cannot police products that have not been officially certified but choose to define themselves as organic.

Now Whole Foods Market has taken matters into its own hands, announcing that "all personal care products and cosmetics making an organic claim sold in its U.S. stores must be third-party certified by June 1, 2011."

This means they must meet the USDA's National Organic Program standard, the same standard to which organic food must be certified under U.S. law. Products claiming "made with organic ingredients" and "contains organic ingredients" must also be certified.

Suppliers have until August 1, 2010 to explain how they will change their labelling or formulations to comply with the new standard. Those that don't submit an explanation are expected to be dropped from store shelves over the coming year.

"Our shoppers do not expect the definition of organic to change substantially between the food and non-food aisles of our stores," said Joe Dickson, quality standards coordinator for Whole Foods, in a statement. "We believe that the organic claim used on personal care products should have just as strong a meaning to the organic claim used on food products, which is currently regulated by the USDA's National Organic Program."

A detailed list of requirements for all personal care products using the word organic on the product label followed his statement.

In recognition and praise of Whole Foods' new policy, the Organic Consumer's Association issued its own statement encouraging other retailers to follow suit. Ronnie Cummins, its co-founder and executive director, described it as "a major victory for people who want to stop washing petrochemical formulations all over their bodies and then down the drain." OCA has been orchestrating a "Coming Clean Campaign" since 2004, trying to encourage selectivity amongst retailers and regulation from the USDA, claiming that without accreditation, "the main cleansing ingredients and preservatives are usually made with synthetic and petrochemical compounds."

Discussion Questions: What do you think of mandated certification standards for personal care products making organic claims? Should other retailers follow suit? Is there strong consumer demand for organic and/or "natural" claims around bodycare products?
[Author's commentary] In addition to the fury, grief and frustration generated by the disaster in the Gulf of Mexico comes a growing awareness of the ways in which we use (and depend on) oil. Over the past few years, many have realized that there is more to it than the fuel used to transport products around the world and power the factories that make those products. There has also been much publicity surrounding its use in creating the packaging for said products. And, of course, transporting the packaging to the products. But Whole Foods is conflating two separate issues. Firstly, organic certification and how to ensure its consistency. Secondly, removing petrochemicals from bodycare products. Achieving the second may be a prerequisite and enabler for the first but lumping them together in this way could be overly-complicated and counter-productive.

FINANCIALS:     [NASDAQ:WFMI]


Discussion Questions:

While we value unfettered opinion, we urge you to show respect and courtesy for people or companies about whom you comment. Keep in mind that this is a public, professional business discussion. RetailWire reserves the right to edit or refuse the publication of remarks that we deem unsuitable. We may also correct for unintended spelling and grammatical errors.

Instant Poll:

Is the need for certification of 'organic' claims around personal care products just as important as food?

Comments:

I think Whole Foods is smart to take the lead on making sure that they are really selling what's advertised. Organic is what defines them and it only makes sense to protect their brand. If you can't trust that the products Whole Foods says are organic are in fact organic, why bother shopping there?

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Marge Laney, President, Alert Technologies, Inc.

This is a good initiative by Whole Foods.

There's too much mis-selling on the organic platform, especially using "weasel words" like bio and natural. Any brand that pushes for clarity and transparency has my vote.

Devangshu Dutta, Chief Executive, Third Eyesight

It's an interesting question...but the answer has to be, in the age of transparency both are equally important.

I'm not sure there's an absolute right or wrong--in other words, one could argue that it's not necessary to label food products as organic either. But people want to have a choice about what they put IN their bodies. Why shouldn't they have a choice about what they put ON their bodies?

We could argue about whether or not what goes on the skin actually makes it under the skin eventually, but that's irrelevant. It's the age of the customer, and Whole Foods is acting as a customer voice here (obviously for its own reasons). Expect Walmart to follow.

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Paula Rosenblum, Managing Partner, RSR Research

A segment of consumers wants organic and will consistently pay the extra money for it. A much larger segment does not. Whole Foods serves the smaller segment, and therefore it's taking the right step for its customers. Consumers will vote with their wallets. For Whole Foods, this makes good sense.

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Max Goldberg, Founding Partner, The Radical Clarity Group

As someone who grew up in an era when getting clean was more demanding than getting organic skin treatment, I confessedly relied on soaps such Lava, Lifebuoy and laundry soap. So I doubt that my aging skin would resuscitate and beautify under new world of organics or the increased cost that would come from its opportunistic application by Whole Foods.

This may be another panacea but I shall content myself to shower in the shade of this sycophancy of skin. Darn it.

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Gene Hoffman, President/CEO, Corporate Strategies International

Is there any doubt that Whole Foods is one of the (if not THE) best companies in the U.S.??? Due to their avid customer base, they have permission to take "better for you" things to a completely new level of awareness and are in the process of doing so. How relevant is the use of petroleum products and their pervasiveness? I seriously doubt that many of us even realize what the phrase "get off the juice" would really mean. Petroleum is so ingrained in everything we do, it doesn't even seem possible right now.

But with actions like these taken by companies like Whole Foods, at least there's a light at the end of the tunnel. A light that many of us will follow...either immediately or in short order. Keep going with it, John Mackey!

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Lee Peterson, EVP Creative Services, WD Partners

So are those pelicans in the Gulf covered with organic bodycare products?

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Gene Detroyer, Professor, Independent

I applaud Whole Foods for taking the lead and running with this. There is always a leader and follower in every market. Whole Foods stands out as a leader. I expect there will be resistance from the suppliers and manufacturers. But they either get on board the train now or risk missing out later.

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Ed Rosenbaum, CEO, The Customer Service Rainmaker, Rainmaker Solutions

It will be interesting to see what impact this has in light of the ongoing economic challenges.

Mark Johnson, President and CEO, Loyalty 360

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