The organic category is under renewed focus in the retail sector, with Sainsbury’s relaunching its offer under new branding, and Asda unveiling impressive sales growth.
Sainsbury’s is hoping to tap into demand for organics by re-launching the category under the brand SO organic, and lowering prices on more than 100 products, while introducing a further 100 lines.
Meanwhile, Asda says its own revamp of its organic offer in the fresh produce market has seen sales climb by 53 per cent year-on-year. Courgettes alone have increased sales by 548 per cent, the retailer claimed.
Alison Dakin, Asda’s produce marketing director, said the success was down to the improvements the retailer has made in merchandising its organic products, coupled with offering lower prices.
“We are merchandising all the products together now, in distinctive green cartons and that has been a massive success,” she said.
Previously, organic goods had been kept with the parent line and therefore scattered throughout the fresh produce section. The retailer also introduced 10 new lines, including baking potatoes, spinach, broccoli florets, iceberg lettuce and celery.
Dakin said more young families were buying into the category, primarily to feed babies, a finding backed up by Sainsbury’s research.
Judith Batchelar, director of brand, said: “The market for organically produced foods has changed greatly over the years and today organic foods have much more universal appeal. They are just as relevant to whole families as they were to keen organic customers in the past.”
Asda puts a large part of its success down to increased marketing, said Dakin, which has seen it shout about organics at the point of sale, through it in-store radio station and in the Asda Magazine. Further adverts in Take a Break magazine highlighted a recent 25 per cent off offer.
Paul Farrell, produce buying manager for Asda, said: “We are always competitive on price and organics is no exception. Asda’s organic offer has been enhanced by the additional lines introduced earlier this year, we are now working with our growers, investigating new ranges for the future.”
The increasing focus on the price of organic produce is being echoed in Sainsbury’s with its decision to cut the price of 100 lines.
However the move will fuel fears in the organic sector that the market could have the value squeezed out of it by the competing multiples. In our feature on organics (page ..) a spokesman for the Soil Association told the Journal: “We have a cheap food culture in this country and if this were to spread to the organic sector it would be an unhealthy development.”
Keith Abel, co-founder of popular organic box scheme Abel and Cole, said: “Organic produce is not about being cheap; it’s about a fair price for quality, locality, variety and seasonality. Price does not come into organics.”
Sainsbury’s launched its rebranded offer to coincide with National Organic Week and a new feature will give consumers the chance to trace the fruit, vegetable and salad products under the SO organic range right back to the farm via the internet.
