22 Aug 2008 |
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Safer, healthier perceptions boost the growth of organics The survey, conducted by Rochester, N.Y.-based Harris Interactive at the end of 2007, found that, of the more than 2,300 online responses weighted proportionally to the U.S. population, nearly 80% said they believe organic food is safer for the environment, and 76% said they thought it was healthier for them. "We continue to see tremendous gains within the organic category," said Robert Schueller, public relations director for Los Angeles-based World Variety Produce Inc., which markets under the Melissa's label. The survey respondents' beliefs may be right, according to a four-year European Union study. The study said organic fruits and vegetables have up to 40% more antioxidants than nonorganically grown produce. "Organic produce is kind of like the gateway to organic for a lot of consumers when they're first starting," said Barbara Haumann, press secretary for the Organic Trade Association, Greenfield, Mass. Haumann cited numbers from the OTA's 2007 Manufacturer Survey, in which organic fruit and vegetable sales were predicted to reach $8 billion last year. The 2007 Manufacturer Survey, which was conducted in March through June last year, also cited statistics that organic food and beverage sales were projected to reach $20 billion by the end of 2007 and $23.5 billion by the end of this year. "Produce is certainly the lion's share," Haumann said, citing statistics that produce grew 23% from 2005 to 2006. "Twenty-three percent growth is amazing, particularly since we all consider (produce) a more mature category." Market driven Making the transition to organic is a big commitment for growers, but it's one that the organic industry is seeing more, said Robert Verloop, vice president of marketing for Naturipe Farms, Naples, Fla. "(The statistics) give a farmer confidence to go into the transition phase," Verloop said. "If you're going to go organic, it's a long-term proposition, and while these trends have been evolving they're moving much faster today than they were two or three years ago." Other companies are seeing that many consumers, when given the choice, will purchase organic over conventional produce, said Scott Mabs, Homegrown Organic Farms' director of marketing. The Porterville, Calif.-based marketer, which formerly was Sierra Heights Marketing, sees that trend in consumers. The Harris Interactive survey results seemed to support that, with about 36% of American adults, including more than 90% of frequent organic food buyers, believing that the extra expense is worth it to have better-for-you food. Wenatchee, Wash.-based Stemilt Growers Inc. conducted a consumer questionnaire and found the same results, said Roger Pepperl, director of marketing. The questionnaire asked 1,700 American consumers questions about Stemilt's products, Pepperl said. "Over half of the people said they'd pay 40 cents more for that type of product," Pepperl said. A survey conducted in late 2007 by Mambo Sprouts Marketing, Collingswood, N.J., showed these trends as well. Results from the survey of 1,000 natural product consumers showed only one in 10 consumers weren't willing to pay extra for green products and services. Lifestyle integration The Natural Marketing Institute, Harleysville, Pa.., conducted its Health & Wellness Trends Database survey in March, and it revealed that consumer integration of organic products into their lifestyles is up from 57% in 2006 to 59%. The survey broke respondents into four categories: devoteds, temperates, dabblers and reluctants. And 2007 data shows that 18% of respondents fall into the devoteds category, while 22% are temperates, 41% are dabblers and 19% are reluctants. Mainstreaming "This reflects the mainstreaming of the organic marketplace and the opportunity that brands have to attract the most loyal segment of organic users -- devoteds," NMI president Maryellen Molyneaux said in a company press release. "Organics have just continued to grow," said Luke Patruno Jr., who manages the organics division at Los Angeles-based MCL Distributing, which markets under the 4-Earth Organics brand. "We're discovering organics can be offered to all segments in the marketplace," he said. Consumer integration has also led retailers to integrate organic products on their shelves, Schueller of World Variety Produce said. "Three years ago, retailers said they were looking more into organics," Schueller said. "We continue to see more new varieties become available organic for the first time." INFO BOX Dabblers & devoteds A Health & Wellness Trends Database survey conducted in March by the Harleysville, Pa.-based Natural Marketing Institute shows less than 20% of respondents were reluctant to try organics. Devoteds 18% Temperates 22% Reluctants 19% Dabblers 41% INFO BOX Fundraising beats its mark The Organic Trade Association raised more than $630,000 during its annual fund campaign this year, exceeding the association's initial expectation of $600,000. The money from the campaign will be used for the Greenfield, Mass.-based OTA's public policy, public relations and marketing programs, according to a news release. "These funds will be crucial as OTA continues its ambitious agenda for the year," said president Caren Wilcox, in the release. "All investments, big and small, make this campaign a success." More than 225 companies contributed to this year's fundraiser, and several produce handlers/marketers were named to the top investors Leadership Circle, including: * Cal-Organic Farms, Lamont, Calif., a division of Grimmway Farms, Bakersfield, Calif.; * United Natural Foods Inc., Dayville, Conn.; * Whole Foods Market Inc., Austin, Texas; * Pleasanton, Calif.-based Safeway Inc.'s O Organics line; * SunOpta Inc., Brampton, Ontario ; and * Tree of Life Inc., St. Augustine, Fla. |