Organic market has suffered its sharpest fall.

Monday Sep 1, 2008

Evidence show that the organic market has suffered its sharpest fall and UK’s biggest grocers will try to reinvigorate sales of organic food. According to TNS a market research firm organic eggs sales tumbled to 18 percent in the four weeks to 10, customers opted for cheaper, low cost free range products. Big UK grocer admitted that sales of organic food were flat.
Supermarket chains including the Co-operative Group, Asda, Sainsbury and Waitrose will release a series of promotions during the Soil Association’s Organic Fortnight, this runs for two weeks from 6th of September. These chains will also focus on promoting basic brands as evidence emerges that consumers are now favoring cheaper, low cost produce.
Asda will release promotions in many categories, including price rollbacks on everyday items and food sampling across 250 stores. The chain claims to have avoided a fall in organic sales. Waitrose had seen a change in the type of organic products being bought “Value conscious customers are focusing their organic spend on areas they feel are the most important. This dovetails with increasing concerns about animal welfare,” a spokeswoman said. Waitrose is also introducing promotions for Organic Fortnight.
The organic food home delivery specialist, managing director of Abel & Cole Duncan Gibson, admitted the market was slowing but said the internet retailer was still growing sales strongly. The firm runs a 20 percent price promotion on most lines from middle September and on track to grow total sales by 25 percent this year. The Co-op’s price promotion is cutting 20 percent on organic produce.

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