Organic Private Labels Outgrow Organic Food Brands; The Future For Organic?

Retailer organic private labels are growing faster than organic brands in the international organic food market, perhaps indicating the future for organic food. In the US, for example, Safeway’s private label, O Organics, launched in 2005, looks set to become the leading brand of organic foods. O Organics has over 300 organic products with sales in excess of $400 million. While in Germany, a drugstore’s private label is the leading brand of organic & natural cosmetics.  Retailers are pushing a price advantage and often their organic products are cheaper than conventional ones.  As private labels increase their share of the organic market organic brands must revise their branding strategies. Green & Black for instance, has positioned itself as an ethical brand, while Organic Valley, in the US, increasingly positions itself as a supporter of family farms and a proponent of sustainability.