By Popular Demand: Organic Store Brands Expand

As consumer interest in organic product increases, at least two U.S. supermarket companies recently announced expansion of their private label offerings to meet that demand.

Roundy's Supermarkets, Inc., based in Milwaukee, Wisconsin, which operates 147 grocery stores in Wisconsin, Minnesota, and Illinois, has added organic products including soy milk, frozen fruit, pizza, and peanut butter to its line of private label offerings because of research that demonstrates significant consumer demand. Roundy's stores operate under the Pick 'n Save, Copps Food Center, and Rainbow Foods banners.

"The baby boomers are looking for something better to put in their systems," Robert Mariano, chairman and C.E.O., told the Milwaukee Business Journal. "People are more aware of what they're putting into their bodies."

Mariano said the move to boost organic offerings helps the company stay relevant with younger shoppers who seek out organic products. The company's other organic offerings include vitamins, canned vegetables, dry pasta, macaroni and cheese, applesauce, and soups.

All told, during 2006 Roundy's added 313 private label items, including pet food, select paper products, frozen steamed vegetables, bagels, whole bean coffee, and beef jerky, and plans to add about 2,500 Roundy's brand products over the next two or three years, according to Mariano.

Taste tests

The company took advantage of the busy Christmas shopping season in December to challenge consumers to tell the difference between its private label brands and national brands of the same items.

In special taste tests at shopping malls in Wisconsin and Minnesota, Roundy's tested string cheese, bread and butter pickles, strawberry toaster pastries, and cinnamon graham crackers. Participating shoppers received $5 off a $50 purchase at any Pick 'n Save, Copps, or Rainbow store and were also eligible to enter a drawing to win a basket of Roundy's brand products.

Meanwhile, the O Organic line of products introduced a year ago at Safeway, which the company says has proven popular with adults, is about to be expanded into food for babies and children.

Company officials told an investors conference Dec. 12 that it plans O Organic lines of baby food and foods for youngsters aged 6 to 12 years old. America's third-largest food retailer said it also plans to introduce a new product line called "Eating Right" that will feature nutritional icons on packages to help consumers find products that fit specific dietary plans.

Safeway officials said during the meeting that the O Organic line, which includes hundreds of products, is helping Safeway compete with Whole Foods Market, the largest seller of natural and organic food products in the U.S.