July 31, 2003

Big Brands Pop Up in Organic Aisle


Contra Costa Times


In a risky reversal of marketing tactics, some of the world's best-known packaged-food companies have planted their brand names smack-dab onto organic versions of their products.

H.J. Heinz Co.'s Organic Ketchup hit supermarkets last year; in April, PepsiCo Inc.'s Frito-Lay introduced Tostitos Organic Tortilla Chips. Meanwhile, Tyson Foods Inc.'s Nature's Farm organic chicken is selling in grocery stores in the Northeast, while in several cities Unilever unit Ben & Jerry's Homemade is testing organic ice cream in four flavors (vanilla, strawberry, chocolate fudge brownie and sweet cream with cookies).

... But now, more companies are wielding the clout of their big brands to secure shelf space in the organic section of mainstream supermarkets.

Until recently, the market for organic products had been almost exclusively in boutique health-food stores and the Whole Foods Market Inc. chain. While U.S. sales of organic foods have nearly doubled over the past five years to $11 billion, they still amount to only about 2 percent of the $485 billion Americans spend on food in stores. Nevertheless, the long-term growth potential is getting hard for large food makers to ignore.

Posted by Norm M. Wada at July 31, 2003 03:18 AM
Related Categories: Theme - 'Health(ier) Food'



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