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Integrate Organic Foods for Best Sales

The benefits of an integrated approach to merchandising natural, organic and green products were extolled here last week by Denis Ring, president of Bode International, during the Healthy Foods International Expo and Conference. You wouldn't create a whole segment and dedicate it to foods that are low-fat or low-salt, so it doesn't make sense to do the same with natural and organic, said Ring,

DALLAS — The benefits of an integrated approach to merchandising natural, organic and green products were extolled here last week by Denis Ring, president of Bode International, during the Healthy Foods International Expo and Conference.

“You wouldn't create a whole segment and dedicate it to foods that are low-fat or low-salt, so it doesn't make sense to do the same with natural and organic,” said Ring, who held responsibility for launching Whole Foods' 365 private-label line. “Everyone in America knows about organic — this isn't niche stuff anymore.”

Despite the market's maturity, mainstream shoppers still need a bit of prodding, he acknowledged.

“Some retailers have had success with integrating store-within-a-store concepts, but what worries me is that the consumer who doesn't view themselves as a natural, organic or green shopper won't go into the set,” Ring said. “Almost everyone goes down pasta and cereal aisles.”

He warned retailers not to use these items as margin correctors, especially since consumers will compare prices.

“If you take a jar of store-brand conventional pasta sauce priced at $1.99 and place it next to an organic jar that is $5.99, the consumer won't buy it,” he said. “Many of the consumers shopping for these items are pretty bright, and if they find out they're paying too much for a product, they'll be offended — and they'll remember it.”