NATURAL PRODUCTS EXPO EAST 2000-10-02 (1)

BARBARA MURRAY

BALTIMORE -- Those who market to the health-conscious consumer gathered here at Natural Products Expo East recently to tackle a range of topics, including category management and when to integrate or segregate products on shelves.

Jim French, senior vice president, Natural Marketing Institute, Telford, Pa., said it depends upon the category and the retail environment, with organic produce generally better off segregated. Distributors like one place in the store versus ten different aisles, he said, noting that Food Emporium, in New York City, has 100% integration, using yellow shelf tags to denote organic products and green ones for all-natural.

David Schams, national sales director for Seeds of Change, Santa Fe, N.M., said retailers generally want more natural and organic products together, but "just because it indexes high doesn't mean it warrants a reset.

"We're working with the retail chains as they move forward," Schams continued in a conversation with SN on the show floor, where his company was exhibiting pasta sauces, salad dressings and salsa, as well as its organic seeds.

"The biggest dilemma right now is should it be a section within a section, or a natural set, or in-line? Over time, having them shop for natural product with the more conventional product makes more sense."

He said Safeway is planning 500 store-within-store sets for natural and organic foods.