Conventional wisdom was wrong about organics

(The Packer)

It is hard to imagine now, but there once was a time when organic produce was not an established part of the modern produce department.

In fact, not so long ago, some thought organics were a flash in the pan and nothing more.

As I was looking back through The Packer’s archives, I came across a column about the demise of organics from a fellow editor at The Packer, dated late January 1992.

The identity of the writer isn’t important now, but what he wrote about organics is jarring given the long run of success organic produce has enjoyed. 

Below is what he wrote, which was the “conventional” thinking in 1992 and showed how spectacularly wrong we can be.

“Anybody seen any organic produce lately?
If you believed the hype and hoopla about organic just 3 or so years ago, retail displays would be brimming by now with the stuff.
The fact is, it's almost nowhere to be found today unless you're in a bay area — notably trendy and upscale San Francisco or Boston. Must be something about bays.
Organic produce, it seems, died about as quickly as it was born, the progeny of the great Alar scare of 1989. Consumers jumped on the organic bandwagon, encouraged by images of Meryl Streep touting its benefits and media play about the risks pesticide residues posed, notably to children. Like personal computers, sushi and ‘Twin Peaks,’ organic produce became a trendy thing. Food fear and how to deal with it was ‘in.’
At the height of the Alar scare, virtually every major retailer was scrambling to line up organic sources and clear areas in the produce department for big organic displays. Believing in organics or not, retailers felt they had to respond to the food safety issue by handling organics or testing their produce for pesticide residues.
The organics frenzy certainly was not limited to retailers. Growers, too, jockeyed to meet the perceived demand by converting some of their acreage to organic production. Many talked of curtailing their chemical usage and offering consumers residue-free produce.
Today, organics pretty much has retreated to its former front lines — the health food and specialty stores frequented by consumers who have the time, money and proclivity to indulge their environmental and personal-health fears and concerns. While there certainly is a growing body of these consumers, especially environmentally aware ones, they do not make up a mainstream body of produce buyers.
A mix of factors contributed to the quick rise and equally quick fall of organic produce. For one, supply and demand conspired to render the category out of reach to the everyday produce consumer. A lack of suppliers and prices that consumers couldn't justify paying couldn't keep the organic train rolling. Organic's cosmetic appearance also paled next to its chemically aided cousins, confirming that consumers buy largely with their eyes.
While the industry's organic experience is largely water under the bridge, it may be an instructive one. The boom and bust of organics has something to say about the consumer, the way industry reacts to trends and the importance of marketing and promotion.
Certainly, no one ever underestimates the fickleness of the consumer. Organics was born with the idea that it would address the consumer's growing worry over produce safety. It died when idealism ran into reality.
Fear is one of the primary human emotions exploited to sell products. In the industry's organic experience, the consumer's fear turned out to be less than gauged and shorter-lived than expected. Other motivating factors, namely the desire for value, turned out to be more enduring than the fear factor.
Although mainstream consumer interest in organics proved to be temporary, some say the product could have had more enduring success if it had been marketed and promoted properly. Some industry observers point out, correctly, that organics is making greater inroads in health food and specialty stores where consumers will pay higher prices.
Roberta Cook, University of California-Davis agricultural economist, has studied the rise and fall of organics and cites a lack of promotion as one of the reasons it ran out of steam. In a paper delivered to the International Agricultural Economics Association meeting in Tokyo last August, Cook said, ‘Few new products which become successful are launched without significant advertising and merchandising support.’
This is one of the major lessons everyone involved in the produce industry should take from the organics experience. Marketing and promotion are essential to building consumer awareness, interest and following. While there might have been many reasons that didn't happen with organics and while it may not have helped, the experience points out that products have little chance of long-term success without an aggressive push.
But whether the market was really there to begin with, and not just a mirage, might be the question whose answer holds the most importance for the industry. Little extensive market research was done before organic produce was introduced to see whether a market truly existed.
Could the industry's experience with organic be repeated again? Are other product introductions doomed to failure because too little effort was made to research the market and too much faith was put in the staying power of media-driven trends?
Organic produce may have been a failure, but its lessons may prevent more such failures in the future.”

 

The Packer’s column from 1992 did serve to point out areas where the organic industry was lacking, mainly related to importance of marketing and raising consumer awareness.

Of course, in 1992, the USDA’s National Organic Program had not yet been established — that would come in 2000 — and implementation of USDA organic certifications and the USDA organic seal were still years away. 

Thankfully, the reports of the death of organics in 1992 were greatly exaggerated. 

The sector has outgrown its erratic infancy to become a produce department staple. Anybody seen any organic produce lately? Only everywhere and all the time.

 

 

Latest News

Sage Fruit at AWG showcase: Strong apple promotions available now
Sage Fruit at AWG showcase: Strong apple promotions available now

Sage Fruit Co. had good news for retail attendees at the Associated Wholesale Grocers' seventh annual Innovation Showcase, March 25-26.

Sustainable California Initiative charts progress in ag sustainability and equity
Sustainable California Initiative charts progress in ag sustainability and equity

GrubMarket says its initiative made strides in 2023, including the planting of 100,000-plus trees and aiding farmers in organic transition.

Oppy hits the slopes with competitive skier partnership
Oppy hits the slopes with competitive skier partnership

Ski-cross athlete Emeline Bennett will share food tips, highlights and more through Oppy’s social media channels.

World Variety highlights combo pack of dragon fruit at AWG showcase
World Variety highlights combo pack of dragon fruit at AWG showcase

With more than 1,500 options among its offerings, World Variety Produce had plenty of options to highlight at the Associated Wholesale Grocers' seventh annual Innovation Showcase, March 25-26.

AgroFresh bolsters postharvest solutions with Pace International purchase
AgroFresh bolsters postharvest solutions with Pace International purchase

The company says the acquisition will expand its postharvest portfolio and that it plans to collaborate with Valent BioSciences to develop future products to boost produce freshness.

Wonderful Citrus highlights Organic Halos, Seedless Lemons
Wonderful Citrus highlights Organic Halos, Seedless Lemons

Wonderful also promoted its No Shells pistachios, including its new Jalapeño Lime flavor, at the Associated Wholesale Grocers' seventh annual Innovation Showcase.