Organic Mecca in Colorado

Boulder is a centre for the organic industry in the USA, and companies and retailers are doing remarkably well in this university town. The local organic Rudi´s Bakery has become America’s leading supplier of organic bread, and with Aurora Dairy it is a second large-scale company to locate near Boulder. The town and the surrounding area, with its 100,000 inhabitants, provide enough customers to keep a number of specialist stores in business – among others, the flagship store Alfalfa´s, that is celebrating its renaissance with a sophisticated service concept. (Picture: Alfalfa´s combines a wealth of bio-experience, a high standard of sustainability and premium service)
The bio-concentration in Boulder is down to two facts: a public receptive to organic and sustainable, and especially to the presence of one individual - the organic pioneer Mark Retzloff (picture), who played and is still playing a key role in the development of the organic scene in Boulder. The former retailer and organic entrepreneur has been working in the industry for 45 years, has co-founded or managed a number of organic companies and was on the board of the industry association OTA for ten years, three of them as president (see our earlier report).

Retzloff, with three associates, invested his knowledge of the industry and his passion for organics in the store concept of Alfalfa´s. This is what strikes you as you wander through the flagship store in Boulder. Alfalfa´s first opened its doors in 1979 – the first big organic store in the town in those days. From the beginning of the 1980s, 11 stores were launched that at the end of the 1990s were merged with the chain Wild Oats. Wild Oats was in turn bought by Whole Foods Market (WFM) in 2007. A ruling by the Cartel Office in 2010 obliged WFM to divest itself of 31 stores – which was the opportunity to revive the concept of Alfalfa’s. On 22 April 2011, the specialist store opened with about 2,800 m² of shopping space (total area 4,000 m²). (Picture: Inviting – the extensive fruit and vegetable department)

Favourable conditions are in place. Affinity for organics is high in Boulder: according to a survey, 85 – 90 % of consumers in the town are prepared to buy organic products whereas the national average is around 60 %. Boulder has two Waldorf schools and is regarded as a centre for adherents of anthroposophy, and many artists and people pursuing an alternative lifestyle have made this peaceful town their home. The university (12,000 students) offers a course in ecology and sustainability, and forms of renewable energy are also researched there (including, however, nuclear energy and bio-technologies). (Picture: Alfalfa´s is also positioning itself prominently regarding sustainability)

In the autumn, the public land in the county and a nearby conservation area in the Rocky Mountains are going to be declared a Non-GMO-County. A powerful lobby group (Naturally Boulder) concerns itself with environmental issues and healthy food, and a large number of foodies live in Boulder and the region. This bio-savvy scenario brings 2,500 customers with an average spend of 18 US dollars to Alfalfa’s every day, despite strong competition (two independent organic shops, three WFM stores, three Safeways, two Krogers, etc.). Turnover in the first year is likely to be around 15 million US dollars. We’ve almost reached the break-even point, says Retzloff. (Picture: Criticism of genetic engineering on a screen in the fruit and vegetable department)

“Never stop improving” is the motto of Retzloff and the management team of Alfalfa’s -Barney Feinblum, Hugo van Seenus and Jimmy Searcy. This manifests itself in, for example, an organic share of the market that is very high for America: Retzloff tells us that their milk is
100 % organic, as are 99 % of the products in the extensive fruit and vegetable department, and the same applies to the food in the restaurant. Moreover, everything you could possibly wish for is there on hand: service counters with fine-food salads, antipasti and grilled food, a pizza bakery, bakery goods, sushi and juice bar, ice-cream and self-service counters with fresh soups and hot meals, a salad bar and a comfortable café/restaurant with Wi-Fi. The store is open every day from 7:00 to 22:00. (Picture: Gastronomy offer (deli) plus café/ restaurant take up a large space. People stay a long time because of the variety of foods on offer, and not least because of the free internet access)

You really do have to see the cheese counter (400 sorts of cheese), the butcher’s and the seafood department (picture). Fresh pasta is available every day. And there’s a catering service too. Other special features are the big department with bulk food and an expensively designed department with a huge selection of alcoholic drinks (wine, beer and spirits). The 80 % organic bulk food department (picture) stocks cereals, flakes, nuts, oil seeds, dried fruit of all kinds, vinegars, oils and honey (picture), that customers put into their own bottles, canisters or other containers.




The deli area (picture) accounts for 25 % of turnover. The ingredients are bought in by the store and prepared in their own kitchen. The share in turnover of the dairy products department is 10 %, and in the case of wellness (cosmetics, toiletries, food supplements) it is ca. 9 %. As well as its premium strategy for products and services, Alfalfa´s also applies a price point strategy. About 400 products, basic food items and other bestsellers, which many customers know the price of, are permanently low-priced (sustainable value). Regionality is an important theme as well. As regional as possible is the slogan of the purchasing department, right down to flowers. “We prefer to get supplies from small artisan firms,” says Retzloff about the purchasing strategy. In the spring of 2012, Alfalfa’s was nominated the best organic store in Boulder.

Three years before the first Alfalfa´s in 1976, Rudi´s Bakery was founded in Boulder. It operated the principle of simply producing wholesome, high-value bakery goods but, by the end of the 1970s, the company was about to go bankrupt. Mark Retzloff turned it around in a couple of years and put it on the road to success. The bakery has been certified organic since 1998, and since 2001 it has been called Rudi´s Organic Bakery. Every week, they produce about 400,000 loaves, sandwich rolls, bagels, muffins and other bakery goods that are frozen and distributed nationwide. (Picture: 5,500 m² for artisan mixing and baking)

From modest beginnings, the business has developed into one of the leading companies in the organic industry in the USA. “The bread culture has grown noticeably in the last ten years,” managing director Jane Miller is delighted to report. She is very happy with a rise in turnover of 20 % (2010/ 2011). Rudi´s Bakery has responded to the growing demand for gluten-free bakery goods with a comprehensive offer. Because of the high price of organic ingredients in this category, the products are only “all natural” quality, i.e. not certified organic. (Picture: Rudi´s Bakery boss Jane Miller is proud of the many prices they have maintained over recent years)

The dairy Aurora in the countryside near Boulder bottles milk only – but getting on for 500,000 kg a day. The ultra-heat-treated milk in Tetra Paks and gallon canisters (3.79 l) is shipped to all 50 American federal states. Because the high demand for organic milk can’t be covered by Colorado alone, they buy in milk from other states like Texas and Utah. 14,500 cows on six farms produce milk in the immediate vicinity of the dairy. Milk fat is sold to other dairies for processing into butter, cream, etc.

This highly specialised dairy supplies exclusively private label milk (none is sold under Aurora’s brand). Aurora Dairy has won many awards as the best dairy in the USA. Here too, Mark Retzloff was one of the initiators – in the early days, as managing director of Alfalfa´s, he founded the dairy Horizon (today the leading organic dairy in the USA) and gained experience in the business. In 2003, Aurora was built to use the most up-to-date technology for maximum quality and efficiency. In 2008, they started producing their own gallon bottles from light recycled PET, and an eco-water treatment plant was also constructed. The farms supplying Aurora get a good price for their milk and the farm workers receive social benefits like paid holidays and health insurance. Aurora invests about 250,000 US dollars a year in research. (Pictures above and right: Aurora Dairy,
left, one of the large-scale dairy farms right beside the factory)