Wild Oats, a popular line of organic and natural foods missing from shelves since 2007, is making a comeback at Fresh & Easy stores. The brand revival comes as the Southern California-based chain reinvents itself as wholesome grocery store under supermarket magnate Ron Burkle, who purchased the struggling British concept last year.
“We are piloting a handful of fresh products from our partners at Wild Oats,” company spokesman Brendan Wonnacott told the Register. “We’re excited to be bringing back Wild Oats to make better-for-you products more available and affordable for our customers.”
Cage-free eggs and four types of organic milk sporting the “Wild Oats Marketplace” label landed in the dairy section of 167 stores this week, including 102 locations in Southern California. Brown eggs boast “Just Laid” stickers on cartons and “hen laying” date stamps on each egg. The “Portlandia”-inspired move comes as more consumers demand transparency on food origin and animal welfare from grocers.
One in-store flier states the “hen to store” delivery is within 72 hours.
“New freshness has arrived,” the flier says.
Wonnacott declined to discuss specifics on Wild Oats, including the number of additional grocery items coming to stores. The pioneering natural foods concept was founded in Colorado in 1987. At its peak, it operated 110 stores in 24 states and in Canada. But the stores, and its products, disappeared after the chain was sold to Whole Foods Market in 2007.
Supermarket analyst Jim Hertel said the return of Wild Oats is not surprising given that Burkle owns the brand.
“The strong rumor six months ago was that they’d re-brand the (Fresh & Easy) stores (as) Wild Oats,” said Hertel, managing partner at Willard Bishop consulting firm in Illinois.
Adding products that have “consumer cachet” like Wild Oats is a smart strategy for Fresh & Easy, he added.
“That could work” to lure more foot traffic to stores, he said.
Fresh & Easy was losing millions last year when Burkle’s Los Angeles-based The Yucaipa Cos. took control of the chain from British retail giant Tesco. The deal included 167 of 200 stores, as well as distribution and manufacturing facilities in Riverside. The stores not purchased have since closed.
Yucaipa tapped former 7-Eleven executive James Keyes to run Fresh & Easy. The media-shy chief executive has declined to talk about his turnaround plans.
Wonnacott said the new leadership is focusing on convenience, low everyday prices, expanding selections of ready-to-eat meals and fresher foods. Store tweaks have been in the works since December, including expanded hours, from 6 a.m. to midnight daily.
Many of the changes have rattled shoppers, especially the elimination of printed coupons.
Budget-conscious consumers are no longer getting $3-, $5- and $10-off coupons in the mail – a regular perk since the stores launched.
In a Yelp forum, several reviewers discussed the recent changes.
“I was there today and it appears that F&E is getting Krogerized and starting to look more like a scaled down Food 4 Less,” one shopper wrote, referring to Burkle’s ties the parent company of Ralphs and Food 4 Less.
Another wrote: “I don’t save as much anymore.”
Wonnacott said shoppers can still get targeted “made for me” digital coupons through the chain’s loyalty “Friends” program. Those coupons provide discounts on groceries based on a shopper’s personal buying habits.
During a recent tour of a reconfigured store in Costa Mesa, Wonnacott pointed to some key changes being made to stores in California, Nevada and Arizona.
Refrigerators in the front of the store are stocked with dozens of prepared foods such as pasta dishes for easier shopper access. The high-demand items were previously found in the back of the store, which is now peppered with single bottled beverages such as Gatorade, juices and flavored waters.
A clearance rack reserved for a variety of close-to-expired foods such as produce, meats and dairy items has been scrapped.
Shoppers, instead, will find foods nearing expiration in their respective departments. Products are labeled with red or green 25 percent to 50 percent off stickers.
Wonnacott said it makes better sense to “see those markdowns where you’d normally find those products.”
In some ways, Yucaipa is taking a cue from Tesco’s original American invasion plan.
When the British giant launched the 10,000-square-foot stores in 2007, it promised low prices on natural and organic foods, premium takeout meals, and easy checkouts for time-pressed shoppers. They challenged everyone from Whole Foods to Trader Joe’s to convenience stores with their large selection of private label foods.
But as the recession hit, better-for-you foods took a back seat over discounting.
It was a losing game plan. Stores never turned a profit, eventually forcing Tesco to sell the chain under shareholder pressure.
By adding Wild Oats, Fresh & Easy is going back to a fresher-choices approach. It makes sense. The company says fresh foods “generally” account for two-thirds of sales, with prepared meals among the most popular items in stores.
Today, the Riverside commissary is busier than ever.
Wonnacott said a new culinary team has been hired to crank out more prepared meals, including a pipeline of new grab-and-go breakfast foods.
The manufacturing facility prepares a range of items from fresh-squeezed orange juice to pork tenderloin meals to hummus. Deliveries to stores are now made daily.
“There will be no better place to get the freshest products possible,” Wonnacott said.
Contact the writer: nluna@ocregister.com
