ORGANIC SOUPS WILL RING IN NEW YEAR AT WALNUT ACRES

BARBARA MURRAY

ARLINGTON, Va. -- The stock market may be shaky but Mark Rodriguez, chief executive officer of Acirca here, is bullish on the organic category.

Walnut Acres, which was acquired by Acirca in June, is launching a line of eight organic ready-to-serve soups in two-serving glass carafes for a suggested retail of somewhere around $2.99, according to the market. This product will launch nationally on Jan. 6 with a great deal of advertising and promotional support, going straight from the laboratory to the store without having a test marketing period.

In the first few weeks of presenting the product, Mark Koide, the brand's chief marketing officer, said the soups have received the support and authorization of all natural food distributors and Wild Oats, Whole Foods, and also Food Emporium, Wegmans, ShopRite, Gristede's, Ralphs, Fred Meyer, Raley's, Andronico's and King Kullen.

"For the year 2000, we believe the retail sales of organic food and beverages will be $8 billion," Rodriguez said. "We believe that approximately 35% of Americans are buying organic food but that only 10% are buying packaged organic food; so, we are extremely bullish and confident about our product."

Walnut Acres was founded in 1946 by Paul Keene in central Pennsylvania as America's first organic brand. Walnut Acres used to make a canned, condensed soup line, as well as canned vegetable lines, which will cease for now. The new ready-to-serve soups will come in reusable glass jars in a shape that is easy for consumers to handle, with a sodium content that Koide says is 20% to 30% below conventional soup leaders.

The flavors are: Ginger Carrot; Autumn Harvest, a pumpkin squash; Country Corn Chowder; Homestyle Broccoli; Zesty Tomato with fire roasted garlic; Savory Tomato, Minestrone and a Four Bean Chili.

Quality Assurance International, San Diego, is the third-party certifier. The soups will be produced on the East and West coasts initially and at a third site in the Midwest in 2001.

"The soup segment is still big, but specialty soups are driving it," said Oliver Sonnois, vice president of strategy and development. "Those which are adding new features to their packaging, like pull tops and glass or plastic packaging, and organic soups, are a large portion of specialty soups. The segment of the category that seems to be attracting the highest level of purchase intent is that with new recipes and health offerings." Organic soups are growing at a rate of 33% a year, Sonnois told SN.

Walnut Acres will be doing a mix of conventional advertising, promotions and a high level of in-store sampling and in-store events, the executives said.