Progressive Grocer

JUN 2016

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Page 142 of 239

Center of Action Natural and organic products are fueling sustainable growth in center store. By Daniel Lohman N atural and organic products are breathing renewed life into center store. Tey're also driving sustainable sales in almost every category as con- sumers continue to look for healthier alternatives throughout the store. Te notion that center store should be avoided due to all of the preservatives, artifcial colors, chemicals and hard-to-pronounce additives is no longer the case. Natural and organic products are at the center of these trends and are gaining in popularity, forcing traditional mainstream brands to clean up their acts. A growing number of shoppers (64 percent) are looking for healthier meal solutions to help manage their overall health, including reducing their need for prescription and OTC drugs. Tirty-nine percent of consumers sufer from an ailment, and 75 percent believe they can achieve better health through proper nutrition. Natural and organic shop- pers are typically well educated and knowledgeable about the products they eat. Tey read and compare labels to make the best possible choices for their needs. Shoppers want greater transparency and authenticity in the food they purchase and eat. Tey want to know how and where it was produced. Tese trends are apparent in foodservice as well as at retail. Baby Boomers and Millen- nials alike are driving demand across health ingredients. June 2016 | | 143 Te natural and organic channel is, and will always be, the incubator for such products. Many of the brands born in natural are being adopted by other channels. Shoppers are now able to fnd natural and organic products in nearly every retail channel, including drug, mass and convenience. Total store all-outlet sales are up 2.2 percent. Food, representing 60.6 percent of total store sales, is up 1.9 percent. Natural food, representing 7.7 percent of total food, is up 11 percent, while organic food is up 16.9 percent. Grocery Natural/Organic Category U.S. rank natUral rank organiC rank gMo rank Self-stable Fruit 4 1 1 4 Pie Filling 7 2 3 10 Prepared Beans 3 3 8 5 Shelf-stable Fish 11 4 6 2 Shelf-stable Liquid Soup 10 5 7 7 Mexican Food 1 6 8 6 Shelf-stable Vegetables 8 7 5 8 Mexican Sauce 2 8 4 3 Shelf-stable Meat 5 9 2 1 Tomato Paste and Sauce 6 10 10 9 Center Store Sales Rankings

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