retail news in context, analysis with attitude

The San Antonio Express News reports that "H-E-B is unveiling its own line of hundreds of organic products Wednesday in hopes of making the healthy items more affordable to customers in its stores across Texas." The "H-E-B Organics" label, the story says, "will include hundreds of food items including: canned vegetables, cereals, condiments, chips, breads, butter, fresh fruits and vegetables, cheese, lunch meats, bacon, beef, pork and chicken."

According to the story, all the products in the line are "USDA-certified organic, which prohibits the use of genetically modified foods and the produce must come from farms that practice sustainable soil-management methods and be grown using only organic-compliant materials….Pantry staples meet those standards as well as no artificial colors, flavors or preservatives. The fresh meats and dairy items promised that animals will be raised on organic feed with no added growth hormones or antibiotics and that they will be processed in certified-organic facilities."
KC's View:
Companies that can address both the real and perceived problem of organics being more expensive than conventional foods will, I think, have for themselves a real differential advantage.