Green Growth Continues
Whole Foods Market has introduced a new line of organic multigrain cereal including Organic Flax & Honey Twigs. On-pack call-out compares it to as much protein & fiber as Kashi Good Friends.
Imported organic food at WFM includes Pipe Rigate pasta made in Italy and new 365 EVVO Koroneiki single source variety made in Greece. Producers say that the best olive oil come from this variety.
Total U.S. organic sales – including food and non-food products – were $28.7 billion in 2010, up 9.7 percent, according to the Organic Trade Association.
The consumer market for organic products – as well as natural and eco-friendly products -- has now gone mainstream as traditional supermarkets, warehouse grocers, and mass merchandisers now account for the majority or organic products sales in the country outselling natural product retailers. See accompanying Organic Facts Box and Organic Store Brand Listing.
Driving this growth are consumers concern for personal health and consumers interest in protecting the environment. See also accompanying articles on Lite & Healthy Food and Eco-Friendly Cleaners.
Retailers are responding by putting nutritional information on packaging front labels and growing their eco-friendly, Fair Trade, and animal-welfare product programs. Sustainability continues to be an overarching societal concern and cause-related marketing continues to be the primary business response.
Whole Foods Market
Although Green has gone mainstream in retailing, the nation’s leading organic and natural food retailer, Whole Foods Market, Austin TX, continues to be the trailblazer in introducing new green initiatives in store brand products.
Its newest green store brand product program involves its Eco-Scale color-coded rating system that the retailer is now rolling out in all of its stores. The rating scale ranges from Red which indicates unacceptable ingredients and not allowed in its stores to Green which is the best rating and signals 100% natural, non petroleum ingredients. See Eco-Friendly Cleaners article in this issue for more details on the Eco-Scale program.
“All household cleaning products in our stores will list full ingredient on their packaging and be rated and third-party verified on safety and environmental impact by April 2012,” says the retailer on its website.
In July 2009, WFM announced its support of the inaugural Non-GMO Project – a non-profit collaboration of manufacturers, retailers, processors, distributors, farmers and consumers. Although organic certified food products are prohibited from using GMOs, natural foods are not.
“When developing our national store brand food products under the 365 Everyday Value label, we work with our manufacturers to source non-GMO ingredients,” says the retailer. Since the launch of the project all of WFM’s store brand natural food products have been enrolled in the Product Verification Program and bear the Non-GMO Project Verified seal.
The verification program uses a process that combines on-site facility audits, document-based review, and product testing to verify compliance with the standard at every level of the supply chain.
In 2009, the retailer also adopted new premium body care standards for personal care products sold in its Whole Body in-store departments.
“Premium Body Care is made to meet strict criteria with ingredients as close to nature and as minimally processed as possible,” says WFM. “All products that meet our Premium Body Care standard must have little environmental impact during manufacturing and also when released into the environment.”
To date, WFM has identified 2,500 exclusive brand and store brand products that meet its standard and carry the WFM Premium Body Care logo.
In support of Fair Trade, WFM also sources Whole Trade exclusive brand and store brand food products which it identifies with its Whole Trade Guarantee logo on packaging. As part of its Whole Trade program, in 2007 WFM started selling fresh Earth University bananas in its stores and brought the new frozen Earth University pineapple and banana chunks to stores in early 2011. The Whole Trade program is designed to ensure fair prices are paid for products, better wages and working conditions for growers and sound environmental practices.
Earth University is located in Costa Rica and is a private, international, non-profit school which offers an undergraduate program leading to a licenciatura degree in agricultural sciences and rational use of natural resources. Sales of Earth U. products at WFM help fund student scholarships at the university.
To help promote the mission of Earth University, this September WFM conducted a giveaway on its website for a chance to win one of five spots on a seven-day adventure to study abroad on the university’s campus in Costa Rica.
“Earth University is producing so much more than delicious fruit; it’s shaping leaders who are making positive changes in the world and giving low-income students an opportunity to create a brighter future for themselves, their communities and the planet as a whole,” says Michael Besancon, senior global vice president of purchasing, distribution and communications for WFM.
Wegmans FYFGA all-natural food line includes Pomegranate Cranberry sparkling fruit juice and fat free Roasted Red Pepper dressing.
Trader Joe’s makes its Chicken Broth as both organic and free range, while its Tomato & Roasted Red pepper Soup is both organic and low sodium. Both come in retortable cartons.
In February 2011, WFM adopted the new 5-Step Animal Welfare Rating system established by the Global Animal Partnership – a nonprofit organization that facilitates and encourages continuous improvement in animal agriculture.
“With an overarching goal to continuously improve the lives of farm animals, Global Animal Partnership’s 5-Step Animal Welfare Rating system is one of the single most impactful programs we have implemented to date at Whole Foods Market,” says A.C. Gallo, president and chief operating officer for WFM. “Our customers have been asking for information on the raising practices on the farms and ranches that provide products to our stores. We are proud to adopt this new rating system that helps shoppers make even more informed buying decisions while offering them peace of mind that the animals from our producers are raised with care.”
All meat sold at WFM must meet the company’s strict quality standards, which require that animals be raised on a vegetarian diet without being administered antibiotics or added growth hormones.
Food You Feel Good About
Wegmans Food Markets, Rochester, NY, is another retail trailblazer in promoting healthy and eco-friendly store brand products. Under its Food You Feel Good About natural foods brand, the retailer this year introduced a new line free-range frozen chicken breast convenience items including nuggets (gluten free) fillets, strips, and bites.
“Some of the best chefs know that the way an animal was treated affects the meat’s flavor,” says the retailer on its website. “Plus, many of us are trying to eat more ethically to support treating the animals with care and respect.
That’s why we’re proud to offer this new item. These chicken were raised naturally (so no antibiotics) and had a 100% vegetarian diet (so no animal by-products ever). They also enjoyed a reduced-stress environment, which is True Free-Range G.A.P. Certified (Global Animal Partnership). And there’s no MSG, no nitrates/nitrites, and no filler to get in the way of flavor.
“We also think you’ll be pleased to hear that there’s far less breading and sodium used, compared to the national brand. Best of all, you’re making no compromises to enjoy the convenience of frozen chicken – just savoring the deliciousness!”
Wegmans was first among its retailer peers in introducing a healthy food store brand line with the launch of FYFGA in 1991 under the encouragement of Wegmans current president Colleen Wegman. Since then, the retailer has expanded the FYFGA line to include a large selection of Wegmans Organic fresh meat, produce and seafood, as well as dairy products and shelf-stable groceries which made their debut in 2003.
Open Nature
Safeway, Pleasanton, CA, has added to the list of its health and wellness initiatives in store brand products with the launch in January 2011 of Open Nature. This new line includes more than 100 products made with 100% natural ingredients, “from natural sources, with nothing artificial added.” The natural food line includes fresh meat and poultry, processed meats, dairy, bakery items, frozen foods and shelf-stable grocery items.
“Open Nature is a great addition to Safeway’s portfolio of health and wellness brands joining O Organics and Eating Right,” says Joe Ennen, senior vice president of consumer brands. “Open Nature is Safeway’s way of providing shoppers access to simple, flavorful food made from all-natural ingredients that is as close to nature as possible.”
Safeway has developed specific guidelines for each Open Nature product. For example, meat and poultry items in the new line must meet the following criteria:
- Raised without antibiotics,
- No added hormones,
- Fed an all-vegetarian diet,
- No artificial preservatives.
Launched in 2005, Safeway claims its O Organics brand has become the nation’s Number One organic line with 470 food and beverage items. The retailer’s Eating Right line of better-for-you foods, introduced in 2007, has grown to include more than 300 low-priced items that highlight dietary and healthy attributes on the front of the package.
2011 Green Report Organic Facts
Here are some interesting statistics regarding organic consumer products compiled by the Organic Trade Association and posted on its website: www.ota.com.
- Total U.S. organic sales including food and non-food products were $26.7 billion in 2010, up 9.7 percent from 2009.
- U.S. sales of organic food and beverages have grown from $1 billion in 1990 to $26.7 billion in 2010, up 7.7 percent from 2009 sales. Organic fruit and vegetables experienced the highest growth rate, up 11.8 percent versus 2009, and now account for 11 percent of all U.S. fruit and vegetable sales. Organic food now accounts for 4 percent of overall food and beverage sales.
- Mass market retailers (mainstream supermarkets, warehouse stores, mass merchandisers) sold 54 percent of organic food in 2010, while natural food retailers sold 39 percent of total organic food sales. The remaining 7 percent of sales occurred via mail order, farmers markets, the Internet, and other specialty outlets.
- Global organic sales $54.9 billion in 2009 up 7.9% from 2008. The countries with the largest markets in organic sales are the United States, Germany and France. The countries with the highest per capita consumption are Denmark, Switzerland and Austria.
- 73 percent of U. S. families buy organic products at least occasionally, chiefly for health reasons, according to the 2009 U.S. Families Organic Attitudes and Belief Study.• 35 percent of survey respondents according to Mintel’s report on green living released in 2010 would pay more for environmentally friendly products.
- 67 percent of organic food consumers are concerned about genetically engineered (GE) ingredients contaminating organic food, according consumer poll data released by Consumers Union in March 2010.
In addition, as part of its health and wellness initiatives, over the past seven years, Safeway has removed added transfats from all private label products, converted 100% of the frying oil used in stores to transfat free, launched Eating Right for Kids without high fructose corn syrup in the formulation, and guaranteed all private label milk to be free of growth hormones. In the same timeframe, the company removed 20% of the sodium from various canned vegetables and its Signature Café Soup line, and launched sodium-free flavored beverages.
Fearless Flyer
Trader Joe’s, Monrovia, CA, has long been in the vanguard of marketing healthy, organic, and sustainable store brand products. Although TJ’s has made a serious commitment to Green store brand products, it takes a playful approach in marketing them to its loyal customer base. The Fearless Flyer product guide that is published seasonally is one of the retailer’s principal marketing tools. It regularly features approximately 40 products – most of which are store brand items and many of them organic.
In the August-September 2011 End of Summer Guide, the retailer used the occasion to tell its customers: “how we do business here at Trader Joe’s and how it make us different from pretty much any other place you might shop for groceries.
“All of the foods in the Trader Joe’s name are made without artificial flavors, colors, or preservatives. They have no MSG, no added trans fats, no genetically modified ingredients and no high fructose corn syrup. We buy directly from the manufacturer whenever possible, and we cut out all the added costs that tend to drive up the price of supermarket foods – things like bid ad budgets (obviously, no fancy advertising here), coupons and slotting fees. We keep it simple. Good food, great prices. Every day.”
In the Aug-Sept 2011 Guide, the retailer features its Green Barn Wines that are only available in its California market.
“Wines made with organically grown grapes have come a long way. We’ve been working with one of the pioneers of this burgeoning segment of the winemaking industry for years, and the wines he produces seem to get better as his efforts at sustainability and biodynamic farming grow even deeper roots (pun intended). We’ve recently partners with this talented craftsman to create Green Barn Wines, exclusive to Trader Joe’s.” Made with organically grown grapes, the wine retails for $6.99 per bottle.
In addition to sourcing all of its store brand products from Non-GMO ingredients, which it began in 2001, TJ’s began to source in 2005 all of its store brand eggs from cage-free hens. In 2010, the retailer announced that it had committed to sourcing all of its seafood purchases to sustainable sources by December 31, 2012. This applies to all formats of seafood that it offers: frozen, fresh, and canned.
