The Czech Republic: organic market on the way up again

Whereas in the middle of the last decade the organic market in the Czech Republic recorded strong growth – on occasions up to 70 % (2007) – the last three years have seen market uncertainty and falling sales. Some wholefood shops like Albio (see our earlier report) have gone bankrupt. Others have been able to survive, such as the three Country Life shops in Prague, thanks to the fact that they benefit from having their own wholesale business. “We’re pleased with the way turnover is now increasing again,” says Otakar Jiranek, the managing director of Country Life. Despite the economic crisis, the company has launched an online shop and a seasonal delivery service. On 24 June 2011 the company will celebrate its 20th anniversary. (Picture: Managing director Otakar Jiranek and shop assistant Jitka Janousová)
The turnover of organics in the Czech Republic amounted to about 1.8 billion Czech crowns in 2009 (67 million euros), which was the same as in 2008. The proportion of organics in the total food market came to 0.7 %. Exports were worth approximately 14 million euros. These are the figures of the market research institute UZEI, that comes under the Ministry of Agriculture. 69 % of spending on organic products by Czech consumers was in the conventional trade, 17 % in the specialist trade, 7 % in drugstores and pharmacies, 2.4 % in small food shops, 4 % via direct marketing and 1 % in gastronomy. Organic marketing breaks down as follows: dry goods 42 %, milk and dairy products 20 %, fruit and vegetables 10 %, bread and bakery goods 9 %, meat and sausage products 8 %, milled and starch-containing products 6 %, beverages 4 % and oils and fats 1 %. In 2009, there were 404 processors of organic food in the Czech Republic, which represents an increase over 2008 of only 2 %.

The proportion of organic products sold in the conventional trade is considerable, which explains the high market share of nearly 70 %. This is revealed in information made available by Tom Vaclavik’s management consultancy Green Marketing. In the lead in terms of the number of organic products is the German drugstore chain Dm, with almost 500 articles and 190 outlets. Organics in supermarkets are found mainly at Billa, Tesco, Kaufland and Spar. Billa has taken over the stores of its Belgian competitor Delhaize in the Czech Republic. Whereas previously organic products were labelled with the Austrian organic brand “Ja, natürlich”, cardboard shelf signs now highlight organic alternatives. The signs carry the words “ nase bio” that means “our organics”. The Dutch food chain Albert Heijn has some Albert shops in the Czech Republic that stock a small number of organic products. (Picture: Billa store in the north of Prague)

According to Jiranek, the turnover of Country Life fell in 2010 by 5 % from the equivalent of 10 million euros to 9.5 million. However, since the start of 2011 monthly turnover has seen an increase of 5 %. The retail trade accounts for 25 % of Country Life’s annual turnover. They are not thinking of setting up more shops at the moment because they want to wait and see what happens to the organic market in the Czech Republic. Jiranek is worried: “People’s buying power could drop even further on account of government cutbacks.” The company is very pleased with its most recently renovated shop near to Vitezne Square to the northwest of downtown Prague (picture). It was launched in 2006 and completely renovated in 2008/2009. The restaurant, that only opens over lunchtime, was started at the end of 2009. The total area of the shop and the restaurant measures 200 m².

Country Life set up its online shop in May 2010 and is now registering monthly turnover of 20,000 euros. It offers a complete dry goods range in which 2,000 articles are listed. 2,750 customers place regular orders, and the company maintains contact with another 3,000 customers. In the season, they offer a ‘vegetable subscription’ so that customers receive regular supplies of fruit and vegetables. This year it will run from June to November – the second time since it was launched last summer.

In the meantime, work goes on in the Country Life centre in Nenacovice, 25 km to the south west of Prague. This is the location of the wholesale business, the administration, an organic bakery and a farm. They grow 60 ha of crops, cereals and green manure and 2 ha of vegetables, with 5 ha being used for grazing and 3 ha for fruit growing. “We set up a farm shop there two years ago and it has proved to be very popular,” Otakar Jiranek explains. He says the overage spend is about 25 euros, which is around four times higher than in their three shops in Prague. In their wholesale business Country Life collaborates with 35 manufacturers and suppliers in the Czech Republic and sources goods in the international organic trade. They supply 400 wholefood stores and 600 other shops in the retail sector.

Supplying schools is becoming increasingly important. An organic schools programme was launched two years ago and is becoming well established, so that now 30 schools and three kindergartens are supplied on a regular basis. Another 30 schools have shown interest in joining the scheme. The canteens are supplied twice a week with fruit, vegetables, dairy products, cereals, lentils and bread, and in Bohemaia and Moravia the supplies are sent once a week. The company has produced brochures specifically to inform parents and teachers about the aims and objectives of the programme. The state supported programme runs from the middle of 2009 until the end of 2011. “At the moment, there’s a boom in weekly markets,” says Jiranek. You now see Country Life regularly at three of these markets in Prague. (Pictures on left and above: Country Life shop in Prague near Vitezne Square)

Every year, about 100 people – mostly between 20 and 30 years old – take part in five different training courses in the Country Life eco-centre in Nenacovice. They can opt for courses in vegetarian cooking, organic agriculture, massage, lifestyle counselling and disaster relief, after which they receive a certificate. Once qualified, they often found health clubs in their own localities, and there are already more than 90 across the Czech Republic. Every two months the company brings out a magazine with a printrun of 4,000 for these discussion groups and the customers of their own four specialist wholefood shops.

Every year Country Life organizes a big party with farm visits at its eco-centre, and people come in their thousands. It will be held this year on 11 September and a highlight that has been announced is the selection of a Miss Compost. Just how she is to be chosen will be revealed on the day.

So far you won’t find any organic supermarkets in Prague. After the shock bakruptcy of the flagship project Albio with its three wholefood shops and an organic restaurant, the sector has become more cautious. Nevertheless smaller shops and vegetarian bistros are still being opened in places where the Prague scene gathers. There are still some quite small wholefood shops with retail space of 40 to 80 m² - for example, Bioobchod (organic shop) that has a high footfall. It is also on the internet, so that customers can shop there too.

Looking at it from the street, you get the impression of a moderately well looked after shop (picture on left). Inside the customer is greeted by the typical organic shop atmosphere of the 1980s: dim, wooden shelves and wooden floor, chatting customers. The shop stocks a good range but it is restricted to dry goods.


The macrobiotic boutique Cesmina.bio has opened a brand-new basement shop in the street that runs parallel to Bioobchod. The product range is attractively presented. The shop has been designed with attention to detail and it is well lit – the only problem is the lack of customers. They’re sitting a little way along the street at Mama Coffee that has a corner location. The small green space in front – lots of bushes and a birch tree despite the size – is the alternative redezvous in this district for mothers doing the shopping and lots of other people besides. The coffee and teas are fair trade, although not yet organic. All three businesses are close to the underground station Pavlova, about 600 m south of Prague’s main railway station. (Picture on right: a pleasant break at Mama Coffee with fair trade tea or coffee and a piece of cake)
(Picture on left: Cesmina Bio, attractively designed but still waiting for customers)

Name	Street	Location
Country Life, Dejvice district	Ès. armády 30	160 00 Praha 6
Country Life	Melantrichova 15	110 00 Praha 1
Country Life	Jungmannova 1	110 00 Praha 1
Natural cosmetics shop Country Life	Melantrichova 15	110 00Praha 1
Restaurant, city centre	Melantrichova 15	110 00 Praha 1
Restaurant, Dejvice district	Ès. armády 30	160 00 Praha 6
Farm shop	Nenačovice 87	26601 Beroun 1

Tip: www.countrylife.cz