Sainsbury has defended its decision to lower the price of organic produce in its stores through its rebranded organics range So Organic.
Speaking at the Food and Drink Federation’s annual organics seminar, Sainsbury’s sustainability director Alison Austin said that the retailer had lowered its organic pricing because cost was stopping consumers from buying goods.
“Price was the primary obstacle putting customers off from buying organic produce,”
Austin said. “Sainsbury has funded the price reduction, which is an investment in organic. We want to grow the market, make the concept more attractive to everyday customers, and reinforce trust and interest in organic food.”
Sainsbury came under fire from some delegates at the seminar, who said they wanted the multiples to compete on quality rather than low price.
Sainsbury launched its So Organic range earlier this month, adding more than 100 products to its already 400-strong store range in a multi-million pound overhaul (The Grocer, August 20, p11).
Austin added that more lines would be introduced to the range, with Christmas products expected in store from next month. The initiative is designed to help Sainsbury regain its crown as the number one supermarket for organic produce - an accolade lost to Tesco a few years ago.
Meanwhile, in a video address to the seminar, Prince Charles stressed how committed he was to the organic industry. He hoped that consumers would reconnect with farmers and producers to rebuild a thriving, indigenous food culture.
Also speaking at the seminar, Lord Bach, minister for sustainable food and farming, meeting organic manufacturers for the first time since his appointment, said the organic food and drink sector was valued at in excess of £1bn in the UK and was growing by more than 10% per year.
“This represents an opportunity for all involved in the industry to meet this growing demand,” he added.
US supermarket chain Kroger’s second-quarter profit rose 38% to $196.5m on total sales up 6.8% to $13.9bn. Like-for-like sales were up 3.4%, or 5.1% including fuel.
Campbell Soup Co’s full-year sales rose 6% to $7,548m. Sales of condensed soups were up 8% led by solid growth of Chicken Noodle soup, although ready-to-serve soups fell 1%. Sales for the final quarter were also up 5% to $1,498m.
Russian supermarket chain Pyaterochka’s half-year pre-tax profit rose 46% to $75.9m on a 20% rise in net sales to $638.2m. The chain now runs 616 stores.
Wrigley has opened a $45m global innovation centre in Chicago, in order to develop confectionery products.
Dutch supermarket retailer Ahold has completed the 1140m sale of Deli XL, its delivered foodservice wholesale subsidiary, in the Benelux, to an affiliate of foodservice company Bidvest Group.
Market analyst Datamonitor says sales of packaged ethnic foods will hit 17bn in Europe by 2009.
In Spain alone the value of packaged ethnic foods could treble by 2009. Ethnic packaged food products currently make up only 0.9% of Europe’s 1450bn packaged food market.
The Coca-Cola Company and the Coca-Cola Hellenic Bottling Company have jointly acquired Fresh and Co, the leading producer of fruit juices in Serbia and Montenegro. The deal includes a production facility located at Subotica and the juice and nectar brands Next and Su-Voce.
Japanese supermarket chain Daiei plans to open its first ‘compact supermarket’ in November. The store, located in Tokyo’s Setagaya district, will have a retail space of 1,000 sq m and sell packaged meals, prepared side dishes and perishables. One hundred of the stores are expected to open over the next five years.
Beth Brooks
n 38% rise
n campbell up
n profit soars
n by gum
n deli XL sale
n ethnic boom
n serbia coke
n daiei compact
Speaking at the Food and Drink Federation’s annual organics seminar, Sainsbury’s sustainability director Alison Austin said that the retailer had lowered its organic pricing because cost was stopping consumers from buying goods.
“Price was the primary obstacle putting customers off from buying organic produce,”
Austin said. “Sainsbury has funded the price reduction, which is an investment in organic. We want to grow the market, make the concept more attractive to everyday customers, and reinforce trust and interest in organic food.”
Sainsbury came under fire from some delegates at the seminar, who said they wanted the multiples to compete on quality rather than low price.
Sainsbury launched its So Organic range earlier this month, adding more than 100 products to its already 400-strong store range in a multi-million pound overhaul (The Grocer, August 20, p11).
Austin added that more lines would be introduced to the range, with Christmas products expected in store from next month. The initiative is designed to help Sainsbury regain its crown as the number one supermarket for organic produce - an accolade lost to Tesco a few years ago.
Meanwhile, in a video address to the seminar, Prince Charles stressed how committed he was to the organic industry. He hoped that consumers would reconnect with farmers and producers to rebuild a thriving, indigenous food culture.
Also speaking at the seminar, Lord Bach, minister for sustainable food and farming, meeting organic manufacturers for the first time since his appointment, said the organic food and drink sector was valued at in excess of £1bn in the UK and was growing by more than 10% per year.
“This represents an opportunity for all involved in the industry to meet this growing demand,” he added.
US supermarket chain Kroger’s second-quarter profit rose 38% to $196.5m on total sales up 6.8% to $13.9bn. Like-for-like sales were up 3.4%, or 5.1% including fuel.
Campbell Soup Co’s full-year sales rose 6% to $7,548m. Sales of condensed soups were up 8% led by solid growth of Chicken Noodle soup, although ready-to-serve soups fell 1%. Sales for the final quarter were also up 5% to $1,498m.
Russian supermarket chain Pyaterochka’s half-year pre-tax profit rose 46% to $75.9m on a 20% rise in net sales to $638.2m. The chain now runs 616 stores.
Wrigley has opened a $45m global innovation centre in Chicago, in order to develop confectionery products.
Dutch supermarket retailer Ahold has completed the 1140m sale of Deli XL, its delivered foodservice wholesale subsidiary, in the Benelux, to an affiliate of foodservice company Bidvest Group.
Market analyst Datamonitor says sales of packaged ethnic foods will hit 17bn in Europe by 2009.
In Spain alone the value of packaged ethnic foods could treble by 2009. Ethnic packaged food products currently make up only 0.9% of Europe’s 1450bn packaged food market.
The Coca-Cola Company and the Coca-Cola Hellenic Bottling Company have jointly acquired Fresh and Co, the leading producer of fruit juices in Serbia and Montenegro. The deal includes a production facility located at Subotica and the juice and nectar brands Next and Su-Voce.
Japanese supermarket chain Daiei plans to open its first ‘compact supermarket’ in November. The store, located in Tokyo’s Setagaya district, will have a retail space of 1,000 sq m and sell packaged meals, prepared side dishes and perishables. One hundred of the stores are expected to open over the next five years.
Beth Brooks
n 38% rise
n campbell up
n profit soars
n by gum
n deli XL sale
n ethnic boom
n serbia coke
n daiei compact
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