As they cater to petite palates with natural and organic fare, retailers' private-label lines are thriving just as vigorously as the little ones who are consuming their creations.

Tapping into the long-underserved market is proving to be profitable, retailers told SN.

“The children's segment is finally catching up to the level of adults in terms of quality and selection,” said Matt Cohen, founder and chief executive officer of single store Kidfresh, New York, which merchandises a range of store-brand items that are nutritionally balanced for different age groups. “We are answering the need for convenience, quality, freshness and good nutrition for this group of consumers, who have not been addressed in such a complete way in the past.”

Kidfresh produces its own line of all-natural and organic kid and baby foods, made fresh daily and sold in its store, on its website and at specialty toy store FAO Schwarz. Travelers can also pick up Kidfresh at New York's John F. Kennedy International Airport at the JetBlue and American Airlines terminals.

“We're finding that there's a huge market for wholesome foods for children that are 100% natural or organic, with no preservatives, additives, colors or fats of any kind,” noted Cohen.

Eight-ounce bottles of Kidfresh water retail for $1.25, while 4.5-ounce packages of store-brand frozen baby food, made by Evie's Organic Edibles of Manhattan, sell for around $4.50 each. The retailer also merchandises jars of private-label baby food in varieties including banana, pear and cherry; lentils; and peas. Shoppers can purchase freshly made main dishes, sides and desserts, choosing from selections like a hand-shaped sandwich with soft hummus; tender carrot wheels; and fresh fruit kabobs.

Cohen, a former Accenture management consultant, forecasts a future filled with opportunities to cater to young consumers.

“There are a lot of areas in this demographic that haven't been tapped,” he said. “Frozen baby food is still emerging and needs to gain more consumer acceptance. Price is also an issue that needs to be addressed, especially with natural and organic products, which are much more expensive than traditional items.”

Allergy-centric products are also on the cusp, with some retailers offering gluten-free, wheat-free and nut-free items that are easier on a young consumer's system, he added. Shoppers are responding with their wallets.

Sales of private-label baby food increased 9.7% to $22.3 million during the 52 weeks ending Oct. 6, while sales of branded baby food grew by just 3.3% to $3.1 billion in the same time period, according to figures from the Nielsen Co., New York.

Branching out into babies and kids is a logical step for just about any retailer with its own line of products, said Brian Sharoff, president of the Private Label Manufacturers Association, New York.

“Assuming a retailer has credibility, a name that is well respected, and if it can create something by way of packaging and content significantly different and better than the national children's brands on the market, private label will work,” he said.

In April Safeway launched a 40-item extension of its O Organics store-brand line in the form of O Organics for Baby and O Organics for Toddler.

Rice and oatmeal cereal and organic baby foods in three stages, along with milk-based infant formula with iron and a blend of lipids and DHA, are part of the organic baby line. O Organics for Toddlers includes snack crackers, apple cereal bars and bite-size Strawberry and Maple Arrowroot Cookies, among other products.

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Kid-friendly fare such as ringlets organic cereal, peanut butter and a variety of juices are included in Safeway's latest private-label addition, its O Organics for Kids line.

PLMA's Sharoff also cited Whole Foods and Sainsbury's as examples of chains with cutting-edge children's store-brand programs.