From The Fall 2002 Issue of Natural Grocery Buyer

Statshots

Reliable old Joe isn't just Joe anymore—now it's shade-grown Joe, bird-friendly Joe, fair-trade Joe, certified-organic Joe.

Do your customers really care about these differences?

They do indeed, says Liz Kollar, vice president of sales for Avalon Organic Coffees in Albuquerque, N.M. And retailers who are smart about supporting their merchandise with point-of-sales materials can capitalize on that social and environmental sensitivity. "We have point-of-sale materials all over our sets. Customers just have to pull off the materials to learn what organic means or what bird-friendly means," she says.

To market these coffees, you'll need at least passing knowledge of coffee politics.

• Shade grown: Coffee traditionally was grown under the canopy of tall trees. But when a leaf rust attacked Central and South American coffee trees in the 1970s, shade-loving varieties were pulled up and replaced by hardier sun lovers. In addition to removing valuable habitat for about 150 species of migratory birds, this change also required farmers to apply heavy, oil-based fertilizers. Today, farmers are paid a premium for shade-grown beans, and reap additional income from other agricultural products produced by the shade trees. To be labeled shade grown, beans must meet a minimum standard established by the Specialty Coffee Association of America.
  
  
• Bird friendly: See shade grown.
  
  
• Fair trade: This label indicates farmers have been paid a "living wage" for their beans. Fair-trade-certified coffee typically comes from farmer cooperatives. Green, fair-trade-certified coffee beans average $1.26 a pound to the farmers vs. 50 cents a pound for conventional beans.
  
  
• Certified organic: This means the beans are grown without the use of synthetic herbicides, pesticides, growth regulators and fungicides, often on small farms or cooperatives. Third-party inspectors evaluate and certify the farms annually, verifying that the coffees meet or exceed federal organic standards.

—Dana Coffield

How Does Your Garden Grow?
Fresh fruits and vegetables accounted for 40 percent of organic sales in 2001

Source: Nutrition Business Journal

Meat Alternative Market Sizzles
Nutrition Business Journal estimates the wholesale market for meat alternatives was $395 million in 2001, which translates to approximately $550 million in consumer sales: 60 percent through supermarket and mass merchandising outlets, 30 percent through health food stores and 10 percent through other channels.

Source: The Natural Marketing Institute/Natural Business Communications

Pouty Over Pesticides
Limits on pesticide residues are calculated for an average-size person, and as a result, small children may ingest more than the legal limit.

Source: National Coalition Against the Misuse of Pesticides

Emerging Market: Organics

• One-third of the U.S. population currently eats organic and natural foods.
• Supermarkets began carrying natural and organic products in the late '90s and have captured 49 percent of sales.

  Source: USBX Advisory Services

  And the Survey Says...
  Where do you like to shop for organic foods?
  
  Warehouse club  2%
  
  Other retail environments  3%
  
  Superstore/mass merchandiser  10%
  
  Health foods store  12%
  
  Regular supermarket  73%

  Source: SupermarketsGuru.com Consumer Panel Survey

  Fewer than half of American supermarkets currently carry organic products.

  Source: The Organic Trade Association

  41 percent of Americans say they would pay a higher price for a "product whose taste they enjoy."

  25 percent say they would pay a higher price for a "product with added health and nutritional benefits."

  80 percent "frequently" consider price before purchasing a product.

  Source: Grocery Manufacturers of America

  "How beneficial do you think it is for parents to feed their children organic products?"
  
  Very beneficial  32%
  
  

  Somewhat beneficial  40%
  
  

  Not too beneficial  10%
  
  

  Not at all beneficial  13%

  "It makes sense for pregnant women, in particular, to eat and drink organic foods and beverages whenever possible."
  
  Agree  60%
  
  Disagree  34%
  
  Don't know  6%
  
  

  Source: RoperASW/Walnut Acres

  Chicken Run
  The average free-range chicken farm has 75,000 hens on it.

  Source: Knight-Ridder