From The Fall 2005 Issue of Natural Grocery Buyer

Trendspotting

New organic formats debut
A trio of grocery stores is putting its money where its customers’ mouths are: in organic and natural foods. Cub Foods, headquartered in Stillwater, Minn., received organic certification for all 66 of its Cub West stores, the chain announced in May. The certification requires the stores to handle and display organic products according to strict regulations, and to train employees to adhere to those rules. “Given the rapid growth of organic foods, the certification ensures shoppers that the integrity of our organic products is preserved from field to store,” says Brian Huff, the chain’s president.

H-E-B’s Central Market division has long recognized the demand for organics, but is now increasing its involvement in the organic realm. The San Antonio-based chain has launched a private-label line of organic and natural food. The line includes 28 categories and more than 85 SKUs. H-E-B surveyed customers in developing the line.

Publix Supermarkets, meanwhile, announced plans to open two stores dedicated to natural foods. The stores will bear the same name—GreenWise—as the natural products sections in Publix’s existing stores. The GreenWise stores are set to open in 2006. Publix, based in Lakeland, Fla., operates 855 stores throughout the South, and is the largest employee-owned supermarket chain in the United States.

This trend is just the beginning for conventional stores, says Bob Scowcroft, executive director of the Organic Farming Research Foundation, based in Santa Cruz, Calif. While he wouldn’t disclose specifics, Scowcroft said The Organic Center, an educational organization based in Rhode Island, was negotiating with Safeway, Stop & Shop and Shaws stores to offer organic information to consumers.

—L.B.

Organic sales jump 26%
Last April, 2,652 stores from 20 chains, along with 45 organic food brands, participated in the inaugural Go Organic! for Earth Day campaign, according to Michael Martin, president of Organic and Natural Experience, a division of Music Matters, the marketing company that coordinated the campaign. During the month, 2.1 million coupon books were given out in the stores and 1,515 in-store demos of organic foods were held, resulting in 300,000 samples being handed out.

“The really cool thing was the campaign took awareness of organic products up 8 percent,” Martin says.

And even cooler for participating retailers was the 26 percent average jump in sales for organic products compared to organic same-store sales in April 2004. Organic sales were also tracked, growing five times faster in April than they had in previous months.

“The Go Organic! campaign successfully integrated in-store POS [point of sales signage to point out organic products on the shelf], couponing, media coverage and a range of other in-market activities,” says Steve French, managing partner, The Natural Marketing Institute. “Based on the integrated marketing elements and the mainstream efforts, these factors helped to generate increased awareness of organics to 6 million American consumers.” Reports in different markets show coupon redemption rates from 10 percent to 34 percent.

Go Organic! for Earth Day will be repeated in 2006. This year’s campaign was sponsored by Earth Day Network, the Organic Trade Association and Music Matters.

—M.T.S.

Trends to watch at expo
A convention floor—especially one as teeming with activity as that of Natural Products Expo East—can be an overwhelming place. This year’s Expo, held Sept. 15 to 18 at the Washington Convention Center in Washington, D.C., will feature more than 1,100 exhibitors and hundreds of new natural and organic products. But there's no need to feel lost out there. It will be easier than ever to navigate. In addition to the product category pavilions, you can follow the "Hot Trends" icons all weekend, and you won't miss a thing.

“The categories we’ve highlighted for the Hot Trends are the ones that will bring new consumers into the natural market,” says Jennifer Shumar, Expo’s attendee marketing director. “Attendees will be able to easily seek out the companies that are producing these marquee-type products as they go through the show.”

The trends featured at Expo East 2005 will be Essential Fatty Acids, Sustainability, Special Diet, Grab ‘n’ Go and Kids. Each category has its own easily identifiable icon that will be posted at exhibitor booths, in the New Products Showcase and at seminars. Attendees can pick up a guide to the “Hot Trends” at exhibitor locators throughout the show.

Additional emerging trends will be the focus at “Health and Wellness Trends Create Hot New Products and Opportunities,” a seminar hosted by marketing consultants Steve French and Bob Burke on Thursday, Sept. 15, at 8:30 a.m. The seminar will unveil the industry’s most-talked-about products before the show floor opens on Friday morning. Directly following the Hot New Products seminar, one special diet trend will be addressed at “The Gluten-Free Boom: A Closer Look at this Growing Niche” at 10:30 a.m.

Keep up with the expanding natural body care market by visiting Expo’s first Natural Products Beauty Bar, an exhibit of new products from 40 personal care companies.

“Any retailer looking to capitalize on the growth in the personal care market cannot miss the Natural Products Beauty Bar,” says Expo East Beauty and Fashion Manager Heather Smith. “It’s the first place to stop to see new product launches for 2005.”

For more information on attending Expo East, go to www.expoeast.com.

—T.W.