Walmart Doubles Down on Organic Foods

Mass retailer partners with Wild Oats to sell organic foods at a discount.

April 14, 2014

CHICAGO – In an effort to make organic food more accessible to budget-minded consumers, Walmart is partnering with Wild Oats to sell organic packaged foods at prices 25% or less than other organic brands that it carries, the Chicago Tribune reports.

The effort is projected to “have a ripple effect in the grocery industry,” the Tribune notes, as many people cite high costs as an obstacle for purchasing organic foods.

Walmart said its internal research revealed 91% of its shoppers would consider buying organic brands that are affordable.

"We're removing the premium associated with organic groceries," said Jack Sinclair, executive vice president of the grocery division at Walmart.

Wild Oats was a chain of stores acquired by Whole Foods in 2007. It is relaunching itself as a line of foods with Walmart as its lone national retailer.

The Wild Oats items will launch as early as this month in roughly 2,000 Walmart stores and ultimately should be available in the more than 4,000 Walmart stores nationwide. They will be available on Walmart’s website this summer.

Walmart already sells more than 1,600 organic grocery items, including produce, dairy products and branded packaged goods. Their sales are growing at a faster rate than sales of conventional foods in almost every category.

"There's no doubt that organic food is becoming more popular for our customers, and they're buying more of the organic food that we do have," Sinclair said. "If we can make that price premium disappear, we think it will grow much, much faster.”

Wild Oats CEO Tom Casey said the company’s Walmart partnership would help distribute its products on a scale that hasn’t existed in the industry. "By partnering with Walmart, we're on a mission," Casey said. "We're starting a movement that can make it easier than ever for customers to access affordable organic products.”

The Wild Oats products available in Walmart will not be exclusive to the retailer, though pricing will be.

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