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Brief Published: 23 Apr 2014

Walmart's Affordable Organic Range

Wild Oats' organic range

US retailer Walmart has announced plans to make organic products affordable and accessible for the average American consumer.

Walmart will partner with US-based food brand Wild Oats to offer organic food that is similarly priced to conventional foods, and up to 25% cheaper than other branded organic products. The range will include new Wild Oats products such as tomato paste, chicken broth and cinnamon applesauce cups. The grocery store has also announced that it will introduce further organic products in the yoghurt, deli and bakery departments.

Walmart will initially introduce the products at half of its 4,000 US stores to avoid shortages in supplies. Research conducted by the company suggests that 91% of its shoppers would consider buying affordable organic brands at the retailer.

The premium cost of organic foods is linked to the scarcity of grains such as soy, wheat and corn. By selling the produce at a lower price, Walmart hopes to cut the cost of organic products by generating greater demand. This in turn will benefit the environment, reducing the use of toxic pesticides and genetically engineered ingredients produced in the US.

According to US publication Nutrition Business Journal, consumer demand for organic foods is estimated to rise by 10-12% from now until 2020, alongside growing aspirations for a healthy lifestyle.

Challenging the success of deep discounter grocery chains – which are prospering in these tough economic conditions – many savvy supermarkets are rebranding their budget lines, bringing affordable luxuries to consumers with squeezed budgets. For more on this, see Rebranding Budget, part of the Austerity Opportunity Macro Trend.