SPINS' Natural Product Opportunity Report first to demonstrate Natural Products' performance and share of retail at the category level

Natural Product sales continue to outpace those of Conventional Products, offering an untapped opportunity of $3.6B

SAN FRANCISCO, CA, March 20, 2005 - Sales of increasingly popular Natural and Organic Products have increased 18% over 2004, surpassing Conventional Product sales growth of 2-3%. New research shows that with targeted distribution and new product development strategies, this segment holds an untapped growth opportunity of at least $3.6B.

SPINS, the leading information and service provider for the Natural Products Industry, is proud to introduce the Natural Product Opportunity Report - the first to demonstrate Natural Products' performance and share of retail at the category level. Sales and growth trends in the Conventional FDM channels are available through SPINS' partnership with ACNielsen and their Scantrack service. The study's Development Indices reveal the biggest opportunity areas across categories, offering Natural manufacturers a view of the total retail picture, and Conventional manufacturers a sizing of Natural segments across categories.

"For the first time, SPINS - in partnership with ACNielsen - can help the Natural Products Industry understand development opportunities in the context of broad market sales and dynamics. For instance, this report has called our attention to a multi-billion dollar upside opportunity for introducing natural and organic alternatives to popular frozen and refrigerated foods and beverages," said SPINS' President Jeff Nibler.

The Natural Frozen and Refrigerated department is growing at five times the rate of Conventional: 10.6% versus 2.4%. Development indices reveal a sales opportunity of nearly $1.9B in the department. For example, because many conventional retailers merchandise natural frozen entrees in stand-alone natural food sets, many consumers haven't been exposed to some extremely successful items in this category, such as all natural ethnic entrees and organic frozen pizzas. Their introduction into conventional supermarkets' frozen departments could mean a significant increase in sales.

This is just one of the many applicable insights into the channels, departments and categories that are primed for considerable growth with the addition of Natural Products.

For more information, or to purchase the Natural Product Opportunity Report, contact:

Diana Dixon


*Source: SPINSscan Natural, SPINSscan Conventional (powered by ACNielsen Scantrack), 52 weeks ending 12/31/05. Data excludes Wal-Mart and private label sales.


San Francisco-based SPINS was founded in 1995 as the first company to offer Natural Products sales data to the industry. Today, it is the premier provider of industry reporting and consulting services for this rapidly expanding sector. SPINS' comprehensive offering includes retail measurement services, content-based reporting, consumer information and consulting services. Learn more at www.spins.com.

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