Top Stories » Special Features » Profiles & Trends

The online quiz for this story is available in PDF format. Click here to download.

---

If we can believe the famous aphorism by Brillat-Savarin, and we can tell who we are by what we eat, then many of us today are all natural, organic, sustainably grown and processed, and are a result of long tradition. Of course, on the other hand, there are consumers for whom the adage would mean they are fast, cheap, and easy, but that's another story. Either way, whether you are preaching to the choir or trying to convert the masses, the importance of artisanal, natural, heirloom, and organic foods is escalating in the world of gourmet foodstuffs, and all indications are that it will continue to do so. For the gourmet retailer then, many challenges arise. For the traditional grocer to segue into the arena of all-natural and organic foods usually means higher prices, the need to educate the consumer, and the question of how to merchandise these foods to make an impact. For many specialty stores, the job is usually a little easier and yet there are still considerations that can be different — those dealing with gourmet foods from Europe and beyond. Add to all this the paper trial required by the new organic standards and the knowledge necessary to effectively market artisan, organic, and heirloom foods, and one might find the whole process to be daunting indeed. They are important considerations, however, because what can be healthy for your bottom line can also be healthy for the planet and your customers. In other words, you say (commercially grown) tom-ay-to, I say (organically-grown) tom-ah-to — oh, well, you get the idea.

Farm to Market
The growth for the grocery business in general has been rather flat of late, a mere two or three percent annually. The market's organic segment, however, has been growing by leaps and bounds, or about 20 percent. That translates to approximately $15 billion this year, according to projections by most analysts. Even if one doesn't believe in the inherent goodness of eating organic foods, those are numbers to be reckoned with. As anyone who has walked the aisles of a major food show lately can attest to, this phenomenon is occurring in just about every area of the store, from fresh fruits and vegetables to packaged foods and fresh meat. In fact, even though beef production in general is slightly down, the market for natural and organic beef is growing at around 20 percent a year, according to the National Cattlemen's Beef Association. Many companies specialize in organic and all-natural food, while others have deciphered the writing on the wall so to speak and are adding organic versions of their most popular products as fast as they can print the labels.

Much of this growth has been spurred in part by a slew of health studies conducted over the past several years that indicate — surprise! — the food choices we make can have long-term effects on our overall health, as well as actually warding off sickness like cancer, heart disease, and diabetes. Specifically, the studies usually point to foods that are the least refined and closest to their natural state, such as fresh fruits and vegetables, nuts and seeds, and whole grains. Another aspect that should come as no surprise is that most of these foods actually taste better than overly processed, industrially made foods. For many consumers today, whether they make the natural selection due to their health, the planet's health, or simply because they are tastier, once they start traveling down that road, there's no turning back.

This shift in consumer attitudes is reflected in the figures for how America shops. While conventional supermarkets still command the lion's share of shopping dollars, natural/specialty stores like Whole Foods and behemoths like Wal-Mart are catching up and eroding the traditional shopping base that supermarkets have always maintained. The New York Times recently reported that the average number of trips to the supermarket among consumers dropped from 96 in 1996 to just 70 in 2004. Meanwhile, trips to stores like Wal-Mart climbed from 13 to 26, and even the big-box stores like Costco increased, creeping up from eight to 11 trips per year.

All of this seems to indicate that shoppers are looking for value, service, and foods that are more in line with what they perceive as a healthy lifestyle. Don't forget that whatever negative things can be said about Wal-Mart because of their scope and size, they are the biggest retailer of organic products in the country and perhaps the world. Probably, they are not carrying all that natural and organic product selection because they feel good about it, although they surely do, but because it sells. Assuming that you too are carrying a selection of natural and organic products, you need to let the world know that you do, what they are, what distinguishes them, and how to use them.

The biggest question for so many retailers is whether to integrate these products into the regular stock or to set up special sections where you can highlight the products. Many merchants feel that when the products sit side by side with more conventional products, the difference in price kills the sales of organic products. Alternately, when the organic and natural selection is segregated, shoppers are apt to miss them altogether because they are scanning the pasta aisle for pasta, the cookie aisle for cookies, and so on. This catch-22 of merchandising is daunting enough that many are afraid to really take the plunge into natural and organic. What's a retailer to do?

Where's the (Grass-Fed) Beef?
Like so many aspects of good retailing, signage is key to building a successful program designed to pump up sales of your natural, organic, heirloom, and artisanal food products. Start by displaying general signage around the store, signs that spell out why you carry these products and what customers can expect to find and where. Be bold. Inform your customers that you are a player in the game of natural, artisanal, and organic foods, even if it is not your store's primary focus. Who knows — in time, it may be. It's also important to educate the consumer about why these products carry a higher price tag, pointing out that the difference is usually minimal.

Next, create a consistent signage program that identifies your organic, natural, and artisanal selections located around the store. Color code them and employ bold graphics so customers can easily spot these shelf-talkers when they're walking the aisles. This way, you can integrate these products into the regular stock, making it easier for customers to find them, and ensuring that the products won't get lost. Use the shelf-talkers to explain a little about each product — where it comes from, how it is made, whether or not it is a traditional food or a modern innovation. Give your shoppers compelling reasons to buy organic and natural products.

A recent visit to Anuga, Cologne, Germany's huge trade fair, indicated that the interest in organic and natural foods is only escalating. Surely, it was the biggest trend noticed at the fair, with everyone from traditional olive oil producers to beverage makers scurrying to add organic versions of their products to their assortment. Indeed, whole companies that made only organic products were exhibiting; some of these companies didn't even exist a few short years ago. Additionally, many well-established companies who have been making traditional products for generations were seen adding organic lines into the mix. This trend is not going to fade away like so many pet rocks.

The bottom line is this — don't segregate your organic and natural products as though they were quarantined. Merchandise these foods for what they are — a part of everyday life that should be a part of everyone's life. Chances are the big-chain competition is opening up stores near your store, and if they haven't already, you can rest assured they will. Make yourself known as an establisher of trends rather than trying to catch up after your competition has set the trend. It will be good for your customers, good for the planet, and ultimately, very good for your bottom line.