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| Article Date: | 21/09/2009
| | Article Title: | Organic firms tackle flagging fortunes by going back to basics |
The recession has hit the organic food industry with sales falling 13% in a year. This has been blamed on a shift in customer buying patterns, which are based on price over quality in the current climate. Aldi and Lidl for instance are recording record sales.
In response a national consumer campaign is planned to spell out what organic means for ordinary shoppers. It is estimated that 10% of organic shoppers account for 57% of sales: the movement has a hardcore following, but most other consumers do not understand its principles, which go beyond health to sustainability, animal husbandry and pesticide-free production.
Analyst TNS divides organic shoppers into three categories: evangelists, dabblers and accidentals. Evangelists "fully understand the message", while accidentals "don't think they buy organic but we have electronic evidence that they have". Dabblers buy organic, sometimes, for "what it implies in terms of taste, safety, sustainability" – and they are the sector the OTB wants to convert to regular organic shoppers.
The OTB is also applying for match-funding from the EU to assist with its marketing of the brand "Organic", in what would be the first European campaign led by the industry rather than government. Officials are currently working out what claims it can make with the Advertising Standards Authority.
Major organic brands such as Green & Blacks, baby-food maker Organix and drinks firm Rocks Organic all insist they are not affected by the downward trend. Kellie Fernandes, global marketing director at Green & Blacks, says that their sales are up 4% this year, due to them having “very loyal customers."
source: guardian.co.uk |
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