Is the Honeymoon Over for Natural and Organics?

Dec. 15, 2008 - PRLog -- BOULDER, CO - With the country in a recession, 1.5 million jobs lost and headlines that read Budgets Squeezed, Some Families Bypass Organics and Organic Sales Moderate, you may think the honeymoon is over for natural and organics. That’s unless you’ve also read the headlines: Surge in Natural and Organic Food Sales Means Billion Dollar Boom, or Organic sales Remain Strong. With conflicting reports appearing simultaneously over the last three months, we have three industry leaders from Boulder, Co, an epicenter of natural and organic products, sharing their thoughts on the current state, and future of, the natural and organic industry.

Nicole Gervace, CEO of Infinitea Kombucha, a raw purifying energy drink that aids digestion, reported year to date sales were up 110% despite slower Q4 sales. But until Q4 closes, we can only speculate that the economy, a typical season lull, or both have affected this quarter’s sales. As for the future Mrs. Gervace said, “I’m not worried about some shoppers not buying organics due to the economy, because others, still seeing the benefit, will probably turn to less expensive outlets like Vitamin Cottage.” Case in point, a story in The New York Times highlighted a shopper who buys the same amount of organic food, but at four different locations to recoup her costs.

Should a 30% profit decline for Whole Foods mean doom and gloom for the entire industry? Probably not, especially when competitors like Safeway and Sunflower Market are gaining market share and offering competitive prices. Seth Mendelsohn, President of Simply Boulder Culinary Sauces, a line of gluten free and 100% natural sauces has seen an increase in sales – despite no Whole Foods presence or reducing his prices. In fact, Simply Boulder has been able to meet sales projections through King Soopers and Vitamin Cottage outlets alone. However, that doesn’t mean Whole Foods, with same store sales increases of 2.6%, wouldn’t be a win for Simply Boulder.

Brook Eddy, CEO of Bhakti Chai, a micro brew of fresh pressed ginger & fiery spices in a sweet broth of organic Fair Trade black tea has seen a year to date sales increase of 150%. And as the company heads into its busy season sales are expected to continue rising, along with the hopes to grow another 100% over the next year. Ms. Eddy said that wholesale is the primary revenue driver for Bhakti Chai, but that consumer demand has opened the doors to retail allowing them to better market themselves to a wider audience. Riding their wave of success means more time and energy will be focused on growing current markets and opening up new ones.

Despite a downturn in the economy, the honeymoon isn’t over for the natural and organic industry. And if you’re the owner of a young company, confused about the current state or future of the industry Ms. Eddy wants you to know that, “Entrepreneurs shouldn't be scared about the current climate if they want to launch or grow a business” And Mr. Mendelsohn and Mrs. Gervace concur adding that, “If you have a quality product and solid business plan, you’ll be OK.”

# # #

Will Dodd provides integrated marketing for young and start-up companies at an affordable cost. Will Dodd allows companies to compete with their larger competitors utilizing marketing tools such as PR, events, research and advertising.