Wal Mart's Organic Program-Much Ado About Nothing

The company announced their intention on the opening day of Natural Products Expo West, the natural and organic industry’s largest and most important trade show. This was a shrewd move as Wal-Mart’s declared intention to add thousands of natural and organic SKUs to it shelves was the number one topic of discussion the three days of the show.

Today that intention seems a lot like the guy who tells you the check is in the mail or the heavy co-worker who always vows to go the gym at lunchtime but never does.

There were several key reasons to doubt Wal-Mart would follow though with its pledge, or if they did, that it would suceed.  Natural and organic shoppers like fresh foods, like the beautiful produce, seafood, meat and poultry so prominently featured in stores like Whole Foods.  Wal-Mart can never provide them with this.

Furthermore while many mainstream manufacturers have launched organic lines, prompted by Wal-Mart’s intention few have done very well.  Perhaps the most ill fated example to date is Kellogg’s organic Raisin Bran, Mini-Wheats, and Rice Krispies, products that are laughed at as examples of the failure of large CPG’s to understand natural and organic shoppers. Its doubtful many of the mainstream organic items created for Wal-Mart will last more than a year or two.  Expect brands like Ragu, Breyer’s, Kellogg’s, Keebler Tyson’s and many more to disappear soon. 

These shoppers want something special and they are constantly suspicious of frauds, wannabees and newcomers that are only interested in capturing their shopping dollars and not committed like they are, to creating a more sustainable world.  Natural and organic consumers prefer supporting smaller companies that they perceive share their values. This is where Wal-Mart falls short too, and even if, as they claim in the Business Week story to be continuing to expand organic products in key markets the end of this started really before it began.

In the meantime Wal-Mart still promises to go green, creating new stores that use little energy and rely on sustainable construction practices.  They are also requiring vendors to submit plans to change packaging consistent with sustainable business practices. Should Wal-Mart actually follow through with the plan, the company would revolutionize green building.  Lets see if they hold the course.

Meanwhile look for Target to expand organic offerings as it rolls out more superstore formats.  Their Archer Farms brand is currently confusing.  It offers both organic items and conventional ones that aren't only non-organic but loaded with artificial ingredients.  Should they get this brand 'figured out' they could impact sales in Whole Foods and other natural stores.