Germany still leads the pack
Posted - January 30, 2010
Germany still leads the pack
Based on a report produced by Dr. Klaus-Juergen Holstein, Ein Herz fuer BIO magazine
Germany still represents the biggest organic market in Europe, with potential for growth, followed by France and Great Britain. Organic sales account for 6.5% of the total food sales in Germany, 3.4% in France and 2.2% in Great Britain.
Compared to the other two countries, the German food market is generally low-priced, including organic food. The German organic sales concentrate mainly on fruit and vegetables, supplements and wellness food from rice cakes to vegetarian spread, and on dairy products.
Regarding channels of distribution, at the end of the 1990s small specialist shops dominated with over 40% of organic sales. Today, the 2000 specialist shops account for only 23% of total sales. Supermarket chains with around 40,000 outlets account for 35 %, and 19% of sales go through discount-markets, which with 10,000 retail shops account to 40% of total food sales.
Specialist shops do not have a well developed structure yet.There are only two large chains , Alnatura and Denn´s. The leading organic seller is tegut. Wth only 300 shops, nearly 20% of the retailer’s annual turnover is organic food.
Sales of organics are reported higher in smaller outlets, with a 9.4% increase compared to 1% for the general food sales growth. Many small-sized German supermarkets are manager-owned within the food chains Edeka and Rewe. At Edeka some regional offices in the South of Germany buy organic food directly from regional wholesalers or producers. At Rewe management has a more national centralized purchasing operation.
Germany’s best known organic brands started as a combination of an organic umbrella or brand and wholesale operations such as Biozentrale with Gut & Gerne, Rila with Rinatura and Rapunzel/Biogourmet. The smaller supermarkets normally sell a range of about 12,000 products, 400 – 1200 of which are organic quality, while the larger retailers offer a selection of 20,000 to 30,000 products, with up to 3000 in organic quality. Maximum stock capacity per outlet is about 14,000 products, which means many products have to be delivered directly to the shops. Over 60% of organic products are distributed by wholesalers.
The main consumers of organic food in Germany are baby boomers 50+. The younger generation find organics too expensive and not attractive enough, while the 30 + generation, more into the “feeling good”, trend, is turning into the most avid advocate of organics. Buying local continues to be a strong motivator in general and health concerns are the main reason for buying organic.
During the current financial global crisis the German organic market has remained strong and stable, except in the consumption of dairy products. While there is high price pressure on all vegetables, products such as coffee, wine and preserves reported sales increase. The trend of organic products, offering good value, continues.
“Retail” a Revitalizing Agent in Health Care Reform and the Economy
Posted - May 19, 2009
“Retail” a Revitalizing Agent in Health Care Reform and the Economy
Source: The Organic Trade Association
Powerful new research suggests retailers have the potential to help solve the U.S. health care crisis. A presentation including the release of this exclusive research will be presented at the new Health and Wellness Education Program, June 16-18 in Chicago, at Lakeside Center/McCormick Place.
The session, “Retailing’s critical role in revolutionizing health care and revitalizing the economy: A blueprint for improving consumer health and wellness, transforming the health care industry, and energizing the U.S. economy through retail” will be presented by Dave Nazaruk, Senior Vice President for Retail Business Development, StayWell/MediMedia USA in collaboration with Progressive Grocer Magazine and Nielsen Business Media. The session will take place on Wednesday, June 17th at 1:30pm.
This exclusive data presentation, open to all attendees and exhibitors, will demonstrate how food and drug retailers can drive health care activity through touch points of access, frequency of interaction, pre-existing trust and loyalty relationships and the ability to deliver powerful incentives and education to motivate desired behaviors. The material will show how unhealthy consumer behaviors can be challenged, and incentives developed, for consumers to embrace greater personal responsibility for their health and wellness.
The Program is part of the All Things Organic™ Conference & Trade Show, OTA Annual Meeting and Member Days, Expo Comida Latina, and All Asia Food, which also feature pavilions on health & wellness and specialty products, More information on the Health and Wellness Education Program at www.organicexpo.com
Italian Firm Reaches Latin America
Posted - March 30, 2009
La Finestra’s Next Frontier: Latin America
By Adriana Michael, O.W.N.
It’s easy to think of Latin America as a source for wholesale organic ingredients, but few think of it as a market for high-end European organic foods. Yet improving economies are changing that perspective. As the standard of living rises, so do the occurrences of diabetes, allergies and obesity. Enter La Finestra sul Cielo, an Italian organic pioneer and leading food producer with a heavenly antidote: carefully processed foods that appeal to those who know that prosperity means little without good health.
Spearheading the overseas project to bring La Finestra sul Cielo (in English the name means “window to the sky”) to Latin America is Miguel Angel Montesinos, managing director of the sister company in Spain. Montesinos and his wife, Anna Flo started la Finestra sul Cielo España five years ago, after noticing that Spain did not carry any products such as those of La Finestra’s unique line. 
The couple took on the challenge of introducing the Italian line first to Valencia. Sales exceeded soon everyone’s expectations. This prompted Marco Merla, managing director at La Finestra’s head office in Italy and the Montesinos to expand operations across Spain. Currently, over 1,200 Finestra products can be found in 1,500 Spanish retail outlets, including organic supermarkets Eco Veritas and Natura Si, with annual sales reported at over 4 million Euro.
The contagious enthusiasm of Montesinos and his passion promoting organics has also opened doors for La Finestra’s line of macrobiotic foods in Portugal. With this market ably covered by Anna , Miguel sees Latin America as the next obvious region for expansion. A target many European organic companies have not considered in the near future.
For Spain, it’s a natural market,” Montesinos says. “If several companies from different sectors such as cars, computers, heavy machinery and consumer goods are doing well in Latin America, why not organic certified foods?”
First stop: Brazil.
In cooperation with distributor Jeffrey E. Sidi La Finestra sul Cielo Espana is now bringing their products to Brazil, first because it has a growing organic market. Second, the government is particularly supportive of the organic sector. La Finestra tested the market with their line of cereal beverages through Pao de Açucar, a local supermarket chain that has identified organic foods as a category of importance. It serves it with a more personal approach than other large conventional supermarket chains. Response to la Finestra’s products at Pao de Açucar has been positive. Careful not to compete with existing businesses in Brazil, however, Finestra will introduce only unique products such as their vegetable and cereal based drinks, spelt pasta and crackers, all milk, egg and sugar-free foods.
“Most of the local businesses concentrate on fresh produce, tropical and exotic fruits, soy and soy-based foods, rice and coffee,” says Sidi. “We will only import foods that don’t compete with local suppliers.” However, although soy-based drinks are already popular there, they are often full of sugar, coloring, preservatives and other undesirable substances that health-conscious consumers avoid. La Finestra’s soy drink line, on the other hand, stands out because of its highly nutritious and natural makeup.
So far, La Finestra sul Cielo Espana has introduced 80 products into Brazil, in spite of the relatively high retail price. Besides the cereal drinks, goods made with quinoa and amaranth have been well accepted “We work with very low margins” says Sidi. “But with over a thousand different products to choose from, we are able to remain profitable in spite of a strong Euro and currency fluctuations”. Montesinos and Sidi are optimistic. They believe one way to the Latin stomach is by introducing health practitioners to their product line.
“Consumers need coaching in the purchasing of organics,” says Sidi. Health practitioners can explain to their patients how gluten, sugar, egg and salt-free foods are important to a balanced diet, while also explaining the health benefits of cereals like kamut and quinoa.
Though a venture still in its infancy, La Finestra products can now be found in 150 Brazilian retail outlets after only one year. In 2009, the young and enthusiastic team targets 300 outlets in Sao Paulo and other main Brasilian cities.
Montesinos already put an eye in other markets to conquer: Colombia, Mexico and Chile. Both men agree that the key to opening up Latin markets is a combination of finding serious entrepreneurs passionate about organics who have a strong financial foundation and a commitment to see a project through, despite economic ups and downs. Looking through heaven’s window on what Montesinos has already accomplished for La Finestra in Spain, Portugal and now South America, success seems deliciously close.
Fast and Organic?
Posted - November 1, 2008
Trends: organic, fast, fresh food
By Adriana Michael - as printed in O.W.N. Fall 2008
Recently, the available selection of organic products has grown explosively. US domestic sales of organic food and beverages are estimated to reach $23.6 billion in 2008, up from roughly $20 billion in 2007 and just $1 billion in 1990, according to the Organic Trade Association.
Yet eating only organic food can still be challenging enough while at home. Vacations, business trips or simple errands make it almost impossible – even many dedicated organics consumers have buckled and eaten a fast-food hamburger.
Happily, more restaurant franchises are opening that specifically target customers who want nutritious, organic food at speeds similar to those of the fastest greasy junk providers.
Take O’Naturals, a chain co-founded by Gary Hirshberg, chairman and CEO of US Stonyfield Farm. His firm entered organic fast food early, when it opened its first location in 2001. Its eateries aim to offer delicious, healthy organic food fast, while serving as a visible and supportive local community member. This chain now has six outlets.
Pizza Fusion, based in Florida, began to offer organic pizzas in 2006. It franchised last year and has seven stores. According to Entrepreneur Magazine, it has sold 65 franchises and is planning to have 100 outlets open and 300 franchises sold by 2010.
US-based EVOS, meanwhile, has five locations, with two more to open soon. The chain grew out of the desire to produce health-conscious fast food. The firm uses an air-baking method for fries and other foods that greasy spoons typically deep-fry. This keeps fat content up to 70% less than in typical fast food.
Canada has also seen the beginnings of organic fast food. Ozone Organics opened its first location in London, Ontario in 2007. Co-owners Scott Kay, Walt Spivak, and Ron Delanghe were tired of the “tofu and bean sprouts” stereotype of organics. They believed providing fast food favorites such as burgers, hot-dogs and french-fries would increase the market for organics as a choice when eating out. In Spain, eaters can choose FastGood, a successful chain that has introduced gourmet ingredients to traditional fast-food menus.
Consumers in Hamburg, Germany may go to Nat, the first in a planned restaurant chain. It features burger patties of organic beef and lamb and many other dishes. The menu changes quarterly, allowing Nat to emphasize seasonal regional ingredients. All ingredients are certified organic and management buys Fair Trade where possible.
In Berlin, Germany’s “green city,” residents enjoy eating at Gorilla. Instead of better burgers, its owners opted for an all-vegetarian, 100% organic fast-food operation. Starting as a tiny snack bar in 2006, the firm now has five locations and a catering service.
“We cater to health-conscious business people who have little time and want to enjoy a balanced meal in a nice restaurant atmosphere,” says founder Matthias Rischau.
In spite of the success of the Slow Food movement, healthy fast food is definitely a growing trend in the organic market. Even in Colombia, where organics are barely starting to take off domestically, a new organic and natural restaurant has opened in Bogota. Located near several office buildings and set inside a magnificent house designed in Zen style, SUNA offers foods from native natural and organic ingredients to busy businesspeople.
Putting together the logistics – finding a supply chain to include mainstream, organic and natural product distributors, local and direct suppliers who offer a consistent supply, and the many other aspects needed for a good restaurant business plan – is a challenge. The menu has to include some feature dishes all year round, while adding regional and seasonal ingredients for greater sustainability. The paperwork to preserve traceability from farm to table is tremendous, for restaurants that want to be organic certified.
In spite of the higher prices organic foods imply, there is definitely a growing consumer segment to support fresh organic food served fast. With the many benefits of natural, organic, regional and local food catching on all over, soon there won’t be any reason to have to accept food you know isn’t good for you.
Billion Dollar Boom
Posted - September 11, 2008
Organic and Natural Markets Expanding Rapidly
America’s shopping habits are experiencing a sea change when it comes to natural and organic products. These are now available in most every retail outlet, meaning consumers can easily purchase alternatives.
The new report (issue two) titled Natural and Organic Food and Beverage Trends in the U.S., by market research firm Packaged Facts, investigates the trends and demographics behind this solid growth. The report features material not in the first edition, including in-depth consumer analysis from both Simmons NCS and BIGresearch and case studies examining brand performance, sales data, and trends in nine key product categories.
The natural and organic markets continue to gain strength in food, drug, and mass outlets alike. Stores such as Whole Foods and Trader Joe’s have now brought natural and organic products to mainstream Americans, leading to savvier consumers.
Packaged Facts estimates that in 2008 sales of natural and organic food and beverages will continue double-digit growth to reach $32.9 billion. For 2005-2008, Packaged Facts estimates growth of 67.6%, being a compounded annual growth rate of 18.8%.
Not even the current economic upheaval is truly impeding the market’s steady development, according to Packaged Facts prediction of strong single-digit growth through 2013.
“While natural and organic products are no longer recession proof, Americans are waking up to expect natural and organic food in their stores, food that is pesticide-free, hormone-free and non-GMO. Suppliers and retailers are quickly acting to provide it to them. We believe this consumer demand will continue to spur the strong growth for these products,” says Tatjana Meerman, Packaged Facts’ publisher.
This second issue of Natural and Organic Food and Beverage Trends in the U.S. examines the latest information on market size, projections for future growth, future trends and opportunities, consumer demographics, the retail landscape, and leading producers.
For further information visit: http://www.packagedfacts.com/Natural-Organic-Food-1119530
About Packaged Facts – Packaged Facts, a division of Market Research Group, publishes market intelligence on a wide range of consumer industries, including consumer goods and retailing, foods and beverages, demographics, pet, and financial products. Packaged Facts also offers a full range of custom research services.
Germany Leads the Way
Posted - May 12, 2008
Organic Supermarkets and Discounters Remain as Driving Forces in Germany
Introduction by Kai Kreuzer, BIO-Marktinfo
When Rudolf Steiner “invented” organic agriculture in the 1920s, he couldn’t have perceived what significance it would have in Germany some 80 years later. Today, Germany is the biggest European organic market, with a share of around 30% of all organic sales in the continent. Three percent of total food consumption is organic. Last year 16,800 farmers worked on 812,000 hectares of organic farmland. That’s almost 5% of the total agricultural surface. Germany recorded 4 billion Euro in organic sales in 2007, 15% more than the year before.
Based on its evolution, the German market can be divided into three categories: the pioneers, the small specialized shops and the conventional market. The first phase refers to the early 1920s, when concern for the side effects of industrialized farming was already evident. Farmers noticed the steady decline in their crops; some decided to follow the principles of Rudolf Steiner. Demeter and Reformhaus were among the first names to appear. During World War II, development came to a halt.
The first simple direct-marketing systems sprung up in the mid 1950s, when farmers began to sell their produce at shops and farmers’ markets. In the 1960s, there was moderate growth in organic farms belonging to the biodynamic Demeter association and the Bioland group, founded in 1971.
In the second phase, beginning in the early 1970s, specialized organic shops emerged. One of the first was the Erdgarten in Munich and Rapunzel in Augsburg, predecessor of today’s big importer and trader. Most organic wholesalers were founded during this period, due to demand from shops for regular suppliers. Shop owners drove to farms for wheat, potatoes, vegetables and fruit. Some drove to Italy in lorries to import wine and oranges! A structure of about 18 wholesalers was born which continue to do business today, largely delivering on a regional basis. Dennree, the only national distributor and now the biggest wholesaler with a yearly turnover of 230 million Euro, started in 1974.
After 25 years, about 2,500 specialized shops had been founded and the percentage of organic product lines continues to increase. The average retail space grew from about 25 m2 to 100 m2. These shops were still tiny compared to the supermarkets and shopping centers that had been developing at the same time.
The third phase began in 1998, with the foundation of the organic supermarket Basic in Munich, center of Germany’s organic lifestyle. Although Basic was not the first organic supermarket in Germany - about a half dozen others preceded it - none has enjoyed such enormous success. In the last 8 years, small retail chains have developed. In 2005, 60 organic supermarkets opened with a retail space between 200 and 1,000 m2. Altogether, there are now more than 300 such stores, with 50 to 60 new ones cropping up per year.
Meanwhile, consumer awareness of organics grew thanks to the “conventional” mistakes of non-organic producers. Organic options moved into mainstream consciousness through food scandals, including hormones in calf meat. Soon organics were no longer considered fringe products for odd customers who wore eco-clothing, but instead developed an image as a choice for modern, sustainability- and future-oriented customers.
Seeing opportunity, big business entered the picture. In 2003, the discount-retail company Plus (2,750 shops) rolled out a modest range of organic products (30 lines) under their own label BioBio. Branchenprimus Aldi Süd (together with Aldi Nord and its 3,700 shops) are now the biggest sellers of organic potatoes. In May 2006, discounter Lidl (2,700 shops) began to offer organics, with a range of 50 products. Last year, discounters added organic bananas with good results.
Quantities sold in the specialized markets have stayed about the same, but bulk sales are made by discounters and conventional supermarkets. Total sales of organic bananas in Germany tripled from 2004 to 2006, from 8,000 tons to 21,700 tons. Standard organic items such as milk, yoghurt, bread, cheese, mueslis, potatoes and some fresh fruit and vegetables are widely available. Broad ranges (of 2,000 organic items or more) are carried by specialized shops, organic supermarkets and a smattering of conventional shops.
The next years will bring a moderate growth of organic food lines in the conventional trade and more competition for the specialized trade, as the old standbys try to to defend their loyal market share. The winner, in any case, will be the consumer, who enjoys ever more choices.
Please read on to Part 2, main text of the article.
Germany Leads the Way - Part 2
Posted - May 12, 2008
Organic Supermarkets and Discounters Remain as Driving Forces in Germany
By Martin Grass
Learning about the people behind the brands we see at the fairs and shops is important to maintain the transparency of the organic sector. Keeping track “from field to fork” is the prevalent slogan.
Here we present some of the best players of the organic scene in Germany. They are producers and processors. Most of them started a retail shop back in the 1970s . The retailers play an important role, especially organic supermarkets and natural health stores such as the Reformhaus chain, the oldest health conscious retail chain, dating back from the 19th century. Today, Reformhaus operates mainly in Germany, Austria and Switzerland, with products under its own Neuform brand and the brands of other suppliers.
Although not all products are organic, the trend is to increase the number of organic certified products. Reformhaus is a strong reference in the German market for reliable advice, quality products, variety and convenience. On the other hand, organic supermarkets have been emerging with a strong image of a trendy yet quality-oriented sector, where LOHAS consumers gather for a cappuccino while their bread is being baked.
The association of organic supermarkets includes ten companies, among them Alnatura, Basic, BioCompany, Ebl-Naturkost, eo (for Eat Organic), Füllhorn, Grüner Markt, Naturata, SuperBioMarkt and Vollcorner BioMarkt.
Please meet some German entrepreneurs, pioneers and newcomers below!
Managing Director Joseph Wilhelm
Line of products: Muesli, dried fruits, oils, sauces, grains, chocolate
In 1974, pioneers Joseph Wilhelm, Jennifer Vermeulen and Peter Erlinger opened an organic natural food store. Three decades later, the company has become one of Europe’s largest importers and distributors of organic dried foods and has operations in Spain, France, Italy, Turkey and the United States. Annual turnover reached Euro 76 million in 2005. The firm delivers more than 400 products directly to natural food stores and organic supermarkets in Germany. Exports, 34% of the firm’s business, go to 31 countries. Imports come via long-term projects and partners around the world. The firm developed the fair trade seal “Hand in Hand”.
Andechser Molkerei Scheitz GmbH
Managing Director Barbara Scheitz
Line of products: Dairy, yogurt and cheese specialist
Bavarian organic pioneer, the 5th most sold organic brand in Germany. Mrs. Scheitz is the 2nd generation running this successful Euro 75 million business with 170 employees and 420 farmers from the producers’ associations Bioland and Demeter. Andechser introduced functional and reusable glass containers to the sector. The firm boasts annual processing of 64 million kg of cows’ milk and 5 million kg of goats’ milk. Exports go to France, Greece and Holland. Constant innovation and product diversification is Andechser’s recipe for success.
Managing Director Volkmar Spielberger
Line of products: Cereals, oils, dried fruits, chocolate, nuts, tomato-based sauces, salt and spices
Mr. Spielberger is the 3rd generation in this dynamic business, established in 1930, operator of the first and only organic mill in Germany. Involved in production under Demeter quality since the mid 1960s, the firm now has 100 employees and an annual turnover of around Euro 20 million. Naturata imports ingredients through long-term cooperations and partnerships in over 30 countries. These include olives from Greece and Tunisia, dried fruit from Turkey, chocolate from the the Dominican Republic and sesame seeds from Uganda.
Ulrich Walter GmbH
Managing Director Ulrich Walter
Line of products: Organic coffee, tea, herbs and spices
In 1979, Ulrich Walter and his wife Angela started a 30 m2 natural food store. Today, their firm is one of the main players in Germany’s organic scene, with 6 divisions for a total area of 5,500 m2. Annual turnover was Euro 17.5 Million in 2005. The company’s own brands are Lebensbaum, Bioveda, Donum Naturae and, under license, Janosch and Kosmos Krauterhexe. These brands are present in a range of 300 products distributed at the national level. Exports go to the EU, Japan and Taiwan; imports come from 30 countries, mostly European nations.
La Selva Toskana Feinkost-Vertriebs-GmbH
Managing Director Karl Egger
Line of products: Tomato purees and sauces, soups, wine, pesto
In 1980, Karl Egger, co-founder of the organic producers association Naturland, made his dream come true: An organic enterprise in Italy to produce quality food in a sustainable way. With an annual turnover of some Euro 10 million, La Selva is among the best known brands in the specialty food segment and has a range of 140 products. Exports account 50% to Germany and the rest to other countries. At first people thought he was crazy, but today his project has become a model to inspire others. The firm also offers a bed and breakfast facility suiting up to 30 guests.
Managing Director Peter Kowalsky
Line of products: Innovative soft drink
Bionade is one of the current success stories of the organic sector in Germany. Established in 1995 by Dieter Leipold, the firm developed a unique soft drink produced with organic ingredients following revised beer-brewing principles. It was not easy to launch the product properly, but perseverance, unique advertising and a close relationship with the press finally paid off. In the last 2 years, the company has grown 300%, with 60 million bottles sold. The drink is distributed to organic stores and to conventional supermarkets and other points of sale, including a distributing relationship with the Coca-Cola Company.
Managing Director Siegfried Schedel
Line of products: Baked goods
Established in 1996 as an innovative enterprise from the Bioland association, Siegfried deals in direct milling and production of frozen baked goods distributed throughout Germany. Exports are sold to 17 European countries. The group’s annual turnover was Euro 5 million in 2005. Mr. Schedel was not satisfied with the development of the conventional baking industry and searched for alternatives in the organic sector, with support from Demeter and Bioland. The firm carries 14 patents and a range of 75 products in a mill developed with eco-friendly standards.
Managing Director Veronika Ramsauer
Line of products: Hemp-based natural cosmetics, energy bars, teas and oils
One of the youngest companies on the German organics scene, Natur-Oase was established in 2004 as part of Hanfwelt Riegler-Nurscher Österreich, with annual growth of 30%. Mrs. Ramsauer comes from the health sector. Fascinated with the beneficial properties of hemp that have been long neglected by modern industry, she decided to bring this natural product back to the consumer. Paying close attention to the market, Natur-Oase has developed a unique range of hemp foods and cosmetics. Exports go to France and Switzerland, with plans for an expanded distribution network.
Continued from Part 1, introduction.
Veritas
Posted - May 1, 2008
Veritas: Strong Spanish Voice for Organics
By Lucia Lorente - as printed in O.W.N. Summer 2008
An organic supermarket chain based in Barcelona, Spain, with 14 retail outlets, runs its own brand, uses electric cars, produces its own television show, offers extra incentives and premiums based on quality to coffee suppliers in Nicaragua, and still offers competitive prices. What’s its secret? Media.
A Daunting Mission
Present company managing director Silvio Elias de Gispert, two experts in the supermarket business and a marketing professor saw that the organic sector was beginning to grow in other countries. So why not in Spain? In 2002, the four opened their first store - 120 square metres, displaying 1,800 different products. Through 2003, the firm opened three more stores, part of building purchasing volume and power to ensure lower prices for consumers.
Spanish shoppers consume less organics than most Europeans. Most are very conservative and see the word “ecologico” (organic) as negative, so Veritas had a daunting mission. In response, the firm went beyond retailing to become a media voice for organics.
A Media Solution
In 2004, Veritas launched its own television show with a local TV producer - a space to share information about the benefits of organic foods and a healthy lifestyle. The show features a nutritionist who answers questions from Veritas clients. The company develops the scripts, offers the samples of different brands and covers the cost of the TV presenter. “Real cooperation with the TV programmer, allowing us to reach people across Catalonia,” says Elias.
Veritas believes that the only way to improve peoples’ lives is to reach them via mass media. “There is no one else in Catalunya and at national level responsible for spreading the right information about organics and wellness options, not even the Spanish government,” says Elias. “Veritas is aware that our presence is important in helping to develop the new organic market in Spain.”
Attracting Consumers, Building Loyalty
To attract consumers to its stores and thus to the organics concept, Veritas introduced freshly baked organic bread in its stores. Consumers appreciated the tasty product, giving the firm an opportunity to start teaching the market what organics is all about. Each Veritas store has an expert on hand to answer questions and give information about new products. Educating the public about organics puts Veritas ahead of other competitors.
Another marketing tool of the innovative supermarket chain is its slogan. “Menjar de Veritat” - Catalan for “real food” - helped bridge the gap between mainstream consumers and organic foods. “By positioning organic as the best, most genuine option, many consumers now see Veritas as a reference point for finding healthy and delicious food,” says Elias.
Philosophy
Veritas also focuses on fair trade and access for all consumers to real, good foods. To ensure reasonable prices and high quality, the firm works directly with producers.
In Nicaragua, for instance, Veritas holds a competition among coffee producers. The highest-quality coffee produced by a cooperative gets a 2-year contract to supply the Spanish chain. Social premiums are added to the price to help further support workers and their community.
Veritas also cooperates with several community organizations in Barcelona seeking to improve waste collection and management. The company was among the first to introduce paper shopping bags. In May, Veritas will introduce reusable textile shopping bags. The firm also plans to plant trees to help compensate for its carbon footprint.
Continued Growth
The firm opened six more stores in 2005, and as of press the next store was scheduled to open in April. Elias states that opening a Veritas store costs about 300,000 Euros at an average of 300 m2. In 2007, the company’s annual turnover was about 11.5 million Euros. For now, all stores are owned by the firm, but the company may consider franchising.
Veritas now has 150 employees at 14 stores in Barcelona, Granollers, Sant Cugat and Castelldefels, offering 4,000 organic food products, 300 of which are Veritas’ own brand. “We offer all product categories usually found at a supermarket, except for fish”, says Elias. “There is little organic-certified fish and the small volume in the market is still very expensive.”
Electric Cars: Beyond Products
Veritas has gone “beyond product” with its media strategy while ensuring its whole strategy helps the environment. Recently, the firm introduced the electric car called Reva (Revolutionary Electric Vehicle Alternative) to Barcelona for its business fleet. Powered only by electricity, the vehicles reduce harm to the environment. In a hard market, Veritas has used the mass media to spread the message.
Organics Brasil USA
Posted - May 1, 2008
Meet OrganicsBrasil USA
By Adriana Michael - as printed in O.W.N. Summer 2008
OrganicsBrasil, a government initiative to promote Brasilian certified organic products at the main international fairs, officially introduced OrganicsBrasil USA at Expo West this Spring.
OrganicsBrasil USA is a commercial entity established to represent the OrganicsBrasil merchandising concept in the United States. It will manage promotional budgets and educate the sector and the public about new organic Brazilian imports.
“The American marketplace is beginning to buy into the true value of the OrganicsBrasil project by showcasing and promoting natural and organic products along with the social responsibility and ecological awareness they represent”, says Jacqueline Gracie, managing director of OrganicsBrasil USA and based in Los Angeles.
The project provides a strong institutional base, helping companies grow. The US extension is a joint effort between Organics Brasil as mentor and two consultants, Jacqueline Gracie and Alethea Macena of SOS Comex in Brazil.
This joint effort has already introduced 56 products of 5 participating companies from the OrganicsBrasil project to Whole Foods Market, the world’s largest natural retail chain. Besides being the leading US retailer in organics and natural health, WFM has openly embraced the merchandising concept developed under the umbrella of Organics Brasil. This started back in 2006 with about 25 WFM stores in Southern California, and recently reached the national level. A group of WFM buyers visited BioFach America Latina 2007 in Sao Paulo, to view the wide spectrum of certified organic products available for export in Brasil and meet potential suppliers.
As in soccer, OrganicsBrasil has once again proven Brasil’s skill in teamwork, clear game strategy and defined goals. “It is not easy to properly communicate with all players to reach the common goals”, says Gracie. “Exporting involves more than sending goods across the border. There is need of a proper infrastructure to follow up with the buyer, to ensure the goods have arrived on time and with proper labelling, packaging and quality control”.
A unique added value is that once the products have been imported and are on US shelves OrganicsBrasil USA offers direct after sales service. “Visiting all stores where the products under OrganicsBrasil will be on display is very important, to assure stores there is support. Keeping in touch with the buyer, store management and the end consumer offers valuable information to the producer and exporter at the other end of the chain”, says Macena.
If a company requires commercial support in the US, the OrganicsBrasil USA business consortium offers a set of customizable solutions to meet each firm’s needs. “Each company has different needs when exporting”, says Gracie. Our work assisting Fazenda e Casa and its well received line of marmelades and deli foods is not the same as with a firm like Maté Therapy, the latest addition to the project. Each receives individual attention and assistance.
To take part in the OrganicsBrasil project, a company must be based and produce in Brasil and meet international accreditation for organic certification.
Aurora Organic Dairy Sued by Cornucopia Institute
Posted - December 13, 2007
USA Cornucopia Continues Defense of Integrity of the Organic Label
A major organic milk producer in the United States is facing lawsuits over concerns that it broke organic regulations while selling “organic” milk to such major retailers as Wal-Mart, Costco, Safeway and Wild Oats (a retail chain now owned by Whole Foods). Much of the milk was sold under the stores’ own brand names.
According to The Cornucopia Institute, federal court filings and class action suits have been made against Aurora Organic Dairy, based in Boulder, Colorado.
“This is the largest scandal in the history of the organic industry,” said Mark Kastel, with the Wisconsin-based farm policy research and advocacy group. The institute’s investigation and formal legal complaint alerted United States Department of Agriculture (USDA) investigators to potential problems at the dairy firm.
USDA investigations found that Aurora, which has about $100 million in annual sales, had 14 wilful violations of federal organic rules, according to the institute. The institute reports that Aurora confined animals to feedlot pens and sheds instead of grazing the animals, contrary to federal organic rules.
Packaging for many of the store-brand products featured pasture scenes. “That’s not even close to the reality of where this milk was coming from,” said Steve Berman, a Seattle lawyer whose firm is among those suing.
The USDA has since dismissed these complaints, Aurora says in a release. The release reads that the USDA has “affirmed the validity of each of Aurora Organic Dairy’s current certifications under the National Organic Program.”
“I am personally committed to the principles and success of organic agriculture and to the conversion of land to organic practices,” said Aurora’s president and chief organic officer Mark Retzloff.
Consumers have been harmed, the Institute contends. “Aurora was taking advantage of the consumer’s good will in the marketplace toward organics, and the USDA has allowed this scofflaw-corporation to continue to operate,” Kastel said. Ultimately, such acts may backfire, as consumers begin to question firms’ claims of organic, healthy production methods.
The firm, though, says there is no question. “There is absolutely no basis for claims we defrauded consumers by selling milk that isn’t organic - none whatsoever,” said Marc Peperzak, Aurora Organic chairman and CEO.
“We’re confident in the outcome,” Peperzak said of the legal challenges, “and will defend our company, our products and our reputation against any and all false claims.”
Cornucopia emphasizes that, if Aurora did violate organic standards, the firm remains an exception to the rule. A scorecard available on its website rates the large majority of dairy producers favourably.
Photos of what Cornucopia says is Aurora’s factory-farm operation can be viewed through the group’s website.
The Cornucopia Institute, a non-profit farm policy research group, is dedicated to the fight for economic justice for the family-scale farming community. Their Organic Integrity Project acts as a corporate and governmental watchdog on the credibility of organic farming methods.
Based on information from the Cornucopia Institute, www.cornucopia.org.
