Analyst: Organic Everywhere In Five Years

Oct 06, 2003
George Anderson

By George Anderson

Although organic items currently account for only two percent of food sales, there are those, such as Scott Van Winkle, analyst, Adams, Harkness & Hill who believe, “In five
years, organic products will be everywhere.”

Those such as Mr. Van Winkle point out that organics are no longer the sole domain of Whole Foods and health food stores. Organic products are now being stocked and sold even
in convenience stores such as 7-Eleven.

Reuters reports the chain began doing business with Hain Celestial Group a couple of years ago and today carries approximately 40 of the natural foods manufacturer’s products.

Hain Celestial, for its part, has resized packages to make them convenience store friendly and has kept a tight reign on costs to make sure its products are price competitive.

“Today, you probably see a 10 to 15 percent difference on price,” said Irwin Simon, chief executive of Hain Celestial.

Moderator’s Comment: How can a retailer carve out a niche for itself in natural products while continuing to sell the items it always has?

Borrowing a lesson from today’s K-VA-T dollar store story, we’d like to see retailers integrate natural products by category instead of going the store-within-a-store
or separate department route.
Anderson – Moderator

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