RETAILERS SEEK NEW ORGANIC MERCHANDISING SOLUTIONS: OTA

LYNNE MILLER

AUSTIN, Texas -- Merchandising organic fruits and vegetables with conventional produce presents a challenge to many department managers, and the new federal rules for organic foods create a sense of urgency for retailers concerned about best practices.

As supermarkets prepare to bring the national organic standards into their stores this fall, organizers of next month's All Things Organic trade show here will demonstrate the "do's and don'ts" of setting up merchandise at the show, May 8-11. Attendees will see, up close, an organic produce exhibit set up incorrectly, followed the next day by a corrected version, arranged in accordance with the organic standards.

The display will take up about 20 linear feet, or two booths on the show floor. An organic consultant will be stationed there to answer questions.

There's also a contest, where visitors can test their own merchandising knowledge by noting what's wrong with the exhibit on forms available at the booth. Whoever notes all of the goofs will win a prize -- a copy of the Good Organic Retailing Practices manual.

"Whether you're interested in the prize or not, it's a good way for people to learn," said Holly Givens, communications director for the Organic Trade Association, Greenfield, Mass., the show's sponsor and publisher of the manual.

The produce exhibit is a new feature at the show, and the time seemed right for it. An increasing number of retailers have contacted the OTA to find out how to create attractive merchandise displays that meet the government's standards that prohibit organic merchandise from touching nonorganic product, Givens said.

Starting Oct. 21, consumers will see USDA-certified organic seals on food, and industry observers believe that the government sanction is bound to instill confidence in the quality of the item, raise awareness of organic foods and potentially boost sales.

But even before the government set official standards, the organic movement had a strong following, officials noted. Organic sales grew by at least 20% every year throughout the 1990s, and are expected to continue to increase at about the same rate, reaching an estimated $13 billion in 2003, according to the OTA and Datamonitor, the international market research firm.

"My belief is everybody is an organic shopper," Elaine Lipson, author of "The Organic Foods Sourcebook," told SN. "They just don't know it yet.

"The conventional or mainstream supermarket that can offer good organic foods and knows how to market them has a tremendous opportunity," she said. "There's tremendous potential. We have to reach out to people in all neighborhoods, all income levels."

While many have an image of the organic consumer as an affluent suburban woman in her mid 30s, the latest findings debunk that stereotype, suggesting the potential market for organic merchandise is fairly broad, said Lipson. She will moderate a panel at the show that will review the latest research on the organic consumer.

The stereotype of the organic shopper grew out of the simple fact that wealthy suburban women tended to have the greatest assortment of organic merchandise at their disposal, said Lipson, a writer and editor who provides consulting services to the natural foods industry.

As the supply of organic foods increases, so grows the organic-consumer base. "Everybody eats," Lipson said. "People who care about food often are interested in learning about organic foods."

Another panel will show retailers how to create an organic destination in the supermarket. A marketing official from Whole Foods Market, also based here, is scheduled to be on the panel.

Now in its second year, All Things Organic is getting bigger. Organizers expect attendance to reach 1,500, a 20% increase over last year, Givens said, with 180 companies on exhibit.