Organics: 10 reasons to be cheerful...

- Last updated on GMT

Related tags: Asda, Tesco, Sainsbury's

It's been a challenging couple of years for the organic sector, with sharp declines in sales in many areas and a contraction in shelf space as supermarkets have weeded out their slowest sellers.

Shoppers, meanwhile, are increasingly being bombarded with rival claims such as 'free-range', 'local', 'pesticide-free', 'fair trade' and ‘natural’, many of which seem to resonate more strongly with punters than the all-encompassing organic message.

But there are still reasons to be cheerful, with organic sales recovering steadily, a new marketing campaign in the pipeline, and the publication of new research into the nutritional benefits of organic food eagerly awaited in January, Organic Farmers & Growers chief executive Richard Jacobs tells Elaine Watson.

Kantar Worldpanel data on UK retail sales of organic food and drink:

LATEST SALES: Organic sales in the 12 weeks to October 3, 2010 vs the same period in 2009 were down 2% (this represents a significant improvement on the previous 12 week period, when sales were down 6%)

RANKINGS: The biggest categories in organics are vegetables (£141m), followed by milk (£135m), babyfood (£118m), yogurt (£83m), fruit (£68m) and chocolate confectionery (£35m). The period covers the 52 weeks to September 5, 2010.

SALES GROWTH: In the 52 weeks to September 5, 2010, babyfood was the fastest growing category in organics, up 14.6%, followed by cider at 3.4%. yogurt at 3.3%, butter at 1.6% and herbs and spices at 1.5%. The biggest loser was fruit, down 13.1%, followed by hen's eggs down 7.5%, fresh poultry and vegetables, sales of which were both down 5.5%.

SUPERMARKET OWN LABEL SALES: Sales of organic own-label products in Waitrose were up 9% in the 12 weeks to September 5, 2010. Morrisons saw own-label organic sales dip 2% over the period, followed by Sainsbury's, which saw a 10% dip, Tesco, which saw a 19% dip and Asda which saw a 23% dip.

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1 comment

Honeyrose Bakery sales up double digits in 2010

Posted by Adrian Apodaca,

Here's some hard industry data from Honeyrose organic handbaking. We are a dedicated organic wholesale cake bakery. In the middle of a recession where no brands were launching we were able to launch three of our cakes in Sainsbury's (in its Free-From area) in February 2010, and grow our overall sales in double digits. Both our Honeyrose brand and private label business has grown in 2010. We grow because our products deliver on taste, quality, value and also because they are organic. Smart consumers get that.
www.honeyrosebakery.com
cakes@honeyrosebakery.com

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