Another large American retailer is getting into organics in a big way.
Amazon.com has launched an on-line grocery store stocking 14,000 non-perishable food products, about half of which are either natural or certified organic items.
The e-commerce giant joins the ranks of Wal-Mart and Costco, two other major U.S. retailers that have recently expanded their organic food offerings.
“We felt like our customers were showing a lot of interest in organics,” said Amazon spokesperson Stephanie Mantello.
The company had been marketing food through its health and personal care store, which turned out to be a popular service for its on-line consumers.
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“We found our customers were very interested in those products,” Mantello said. “We decided that they warranted their own store.”
Amazon.com’s grocery store offers more than 1,200 brands, including food industry leaders such as Kraft, Kellogg and Procter and Gamble.
But it also boasts a wide variety of natural and organic brands such as Annie’s Homegrown, Wild Oats, Newman’s Own and Nature’s Gate and includes products as varied as whole grain cereals, snacks, licorice and tea and coffee. Mantello was not sure if the company was buying any of its products from Canadian companies.
Amazon offers free delivery on orders of more than $25 US to customers willing to wait five to seven days. A premium is charged to customers wanting faster delivery of their groceries.
Grocery products are not available on Amazon’s Canadian website.
Mantello said his company’s move is good news for organic farmers, considering Amazon is simply responding to the steady flow of feedback it receives from its customer base.
“There is a demand (for organic products) and this is one way that people are showing it and looking for these products through our site,” she said.
Laura Telford, executive director of Canadian Organic Growers, said Amazon’s interest in organics is more proof the organic industry is here to stay.
The interest in organic commodities shown by America’s top retailers should help reassure conventional growers who are contemplating making the switch to organics that they are making the right decision.
“The message is the markets are out there. If you want to trade in organics as a farmer you need to get into the system now because it takes three years to transition,” Telford said.
While it is encouraging to see large mainstream American retailers embracing organics, she said her organization is committed to promoting the sale of organic products by local, independent retailers in Canada and there are developments on that front as well.
Telford said Canadian grocery chains are recognizing the value of organics. For instance, Thrifty Foods, which operates a number of outlets in British Columbia, now carries more than 400 organic items, including more than 70 varieties of organic fruit and vegetables.
“I think it is a trend,” Telford said.
