Organic once the favourite for foodies, now maybe loosing ground to an increasing preference to locally sourced food.

‘There seems an increasing body of evidence that Local is becoming more important than Organic to consumers around the world,’ Rob Ward explains from On-ward.co.uk
‘One of the reasons must be because consumer can have a greater emotional attachment to a locally sourced product. Better brand layering (the ’story’) and more consistent availability, could be why consumers are picking up more Local over Organic.’
A recent article in the Speciality Food Magazine (UK), featuring London’s Oxford Street John Lewis Foodhall store expressed that there was a shift towards away from Organic to food with a regional distinction.
‘The UK Organic food market nudged £2 billion in 2007 (ref. Soil Association) nearly 300% growth over the last 10 years, which seemed an unstoppable trend until very recently. Organic, however, is shackled with an expensive brand positioning. This expensive image meant premium until recently, now is being considered as elitist.

Whole Foods Inc. renowned for its Organic credentials, in USA recently reported a 12% decline in earnings for the 1st quarter 2008 (ref. Marketwatch.com).

Local doesn’t seem to carry this image problem. Retaining a ‘premium’ position but an earthy edge. Cutting out the middle man feel suggests ‘fresher’, an attribute that is not always associated with Organic.’

Your challenge:
Could we be seeing the first decline in Organic’s growth since the early 90’s?
Is ‘locally sourced’ brand image more robust in a tighter economic market?

Your comments are welcome…

CONT: Below, recent article from USA:
New Study: Local Tops Organic at the Grocer

(CSRwire) NEW YORK, NY – June 16, 2008 – U.S. consumers are changing the criteria they consider at the grocery store, valuing locally grown products over organic, according to the BBMG Conscious Consumer Report. This new national consumer study on purchasing behaviour and social values found that adults have a strongly favorable response to eco-labels and attributes including biodegradable (48% strongly favourable), cruelty free (46%), and locally grown (45%), a measure that falls dramatically for USDA Organic (26%).

The BBMG Conscious Consumer Report also found that “Enlighteneds,” the 10% of adult consumers who are most likely to purchase from companies that engage in socially responsible behaviours, are three times more likely than the average consumer to be early adopters, signalling that eco-friendly and local products will continue to gain an edge. Compared to average consumers, Enlighteneds expressed nearly double the strongly favorable responses for eco-labels like biodegradable (88% strongly favourable), cruelty free (87%), locally grown (85%) and USDA Organic (67%).

Consumers still say quality and price are paramount (66% say quality is very important, and 58% say price is very important). But Enlighteneds do as well, placing a much higher premium on quality (83% say it’s very important) and price (69% very important) than average consumers.

“Consumers are more aware of the impact that their purchasing decisions have, and in every sector we’re seeing values-driven criteria becoming part of consumers’ decision-making process,” said Mitch Baranowski, principal and co-founder, BBMG. “It’s not just about choosing organic any more. Determining whether or not a product is local has become more significant, demonstrating that relationships, trust and accountability are increasingly important when it comes to brand value.”