USA: Conventional food trade has highest sales of organics

According to the American Organic Trade Association OTA, the turnover of organic food in the United States amounted to approximately 29 billion US dollars in 2011 (22 billion euros), with the turnover in the non-food sector as high as 31.5 billion US dollars. These figures represent a share of roughly 45 % of the total world market for organic products and a share of 4.2 % of the food market in the USA. The sale of organic food rose by 9.4 % compared with the year before. In addition to the specialist wholefood trade, all formats in the conventional food trade sell organics, although the product ranges are mostly limited, and stores often don’t give them much time and attention. However, the Aldi subsidiary Trader Joe´s and the big chain Safeway make quite a good job of it. (Picture: Trader Joe´s – the Aldi subsidiary with eco-flair)
The big guns in the food trade in the USA, Kroger, Walmart, Safeway, Target, Trader Joe´s, Whole Foods (that is often counted as belonging to the conventional food trade) among others, are the main sales channel, and they account for 54 % of the turnover of organic products. The main reason may well be the high number of outlets and the fact that daily essentials – dairy products, eggs, cereals, pasta, coffee, tea, etc. – can be bought in organic quality and often at lower prices in these "skilled" classic one-stop-shops than in the specialist trade. So your average consumer may sometimes buy organic products even without knowing it. There has certainly been a change in the awareness of citizens in the USA regarding nutrition. More and more consumers look after their health, and as a consequence they more often buy healthy and organic food. A survey by OTA discovered that 78 % bought organic products at least once during 2011. Four out of ten families in the survey said they had bought more organic products than the year before. (Picture: Price campaign for organics at Safeway in the spring of 2012)

There is considerable variation in the sales strategy in the conventional food trade. The Safeway company, that was founded in California in 1915, has around 1,700 stores and a turnover of more than 43.6 billion US-dollars and is one of the leading food chains in America. The company, that owns the VONS stores, and others mainly in California, began in the early days to create an organic product range with its own brand O Organics. The brand now consists of 300 - 400 products, but Safeway also integrates organic manufacturers’ brands into its assortment, so that in practically all product groups you find organic alternatives. (Picture: The own brand O Organics stand out with their eye-catching design. All pictures of Safeway in Santa Cruz)

This upmarket concept means the company is not a price cutter in the retail food trade but advertises quality with its slogan “Ingredients for Life”. O Organics can be found in many product groups (mainly in packaged goods). In the fruit and vegetable department, you also see loose products.


(Picture on left: Fruit and vegetable display. Pictures below: Chilled cabinets, entrance)












When you hear the word discount, you expect to find plain surroundings, anonymous outlets devoid of flair and a restricted product range. At Trader Joe´s, the company founded in California in 1958, that’s only partly true. Although the product range of the roughly 375-store chain, that has belonged to Aldi Nord since 1979, is discounter-like with its approximately 3,000 articles, the stores each have an individual character and an unmistakable style. Hand-written signs (ceiling banners, wall signs and even shelf labels) are an amusing and charming way of leading customers through the store and drawing their attention to anything that needs pointing out (picture on left). A store manager (captain) said that every story has its own sign-writer. (Picture on right: Organic apples are sold individually. An attractive sign draws attention to bananas)

The food product assortment consists not only of essentials but also of special lines (for example, kosher and vegetarian), many specialities and imported goods (for example, fine foods and cheese), plus a wide selection of wines. The range of organic products, both own brand Trader Joe´s Organic (picure on left) and manufacturers’ brands, is relatively wide. Up to 80 % of the assortment is said to be own brand. Trader Joe´s is popular across the whole spectrum of consumers and also enjoys a positive image as an organic outlet. The colourful stores, the relaxed and informal crew (often in Hawaiian shirts) and the customer magazine in retro-style with a big recipe section all contribute to a certain cult status. The first organic products were actually introduced by the founder Joe Coulombe as long ago as 1971. (Picture on right: Kosher, veggie or organic, it’s all there at Trader Joe´s)

The Aldi subsidiary has about 50 more stores than Whole Foods Market (turnover in 2011: 10.1 billion US dollars), but its total turnover is lower (9 billion US dollars in 2011). The turnover per square metre is likely to be higher at Trader Joe´s, because the stores are smaller than those of its competitor. However, for the newer stores (picture on left in Santa Maria) size is frequently a priority. On the whole, the Aldi concern obviously gives its subsidiary in the USA a free hand in the design of the outlets and also in its cautious expansion policy.
(Picture on left: Spacious fresh food department; picture on right: some stores even sustain a permanent tasting area)