Wal-Mart is Going Organic
by Kara DiCamillo, Newport, Rhode Island on 05.12.06
The nation's largest grocery retailer has decided to go organic. The New York Times reported today that starting this summer, Wal-Mart will be stocking its supermarket shelves with a lot more organic food. The company believes that by offering organic choices, it will “help modernize its image and broaden its appeal to urban and other upscale consumers.” Wal-Mart’s new interest is expected to “change organic food production in substantial ways.” Food industry experts are saying that Wal-Mart could possibly become the nation’s largest seller of organic products, surpassing Whole Foods, because of two reasons: its 2,000 supercenters and its lower prices. Already, Wal-Mart is the largest seller in organic milk (who knew?).
We posted back in January about how Whole Foods costs more than Wal-Mart and we sure did get a ton of comments. Like many of you, we wonder about how the quality of the organic products that Wal-Mart plans to sell. But Kellogg, Kraft, General Mills and Pepsi are all hard at work developing organic lines of their most popular products (like Raisin Bran, Cheerios, Green Giant vegetables and Tropicana) that will make their debut first in Wal-Mart stores and then to other national retailers. Ronnie Cummins, director of the Organic Consumers Association, says that Wal-Mart is going to wreck organic the way it’s wrecking other retail stores. He feels they might start outsourcing from overseas and China to cut costs but Bruce Peterson, head of perishable foods for Wal-Mart says they can offer lower prices because of the company’s enormous volume and by having efficient distribution and inventory systems. At least they don’t have plans to develop a private label organic line. Ick. Via (and photos) ::New York Times
That’s one objective accomplished, now let’s make ‘local’ then new ‘organic.’
As usual, implementation is everything, so we'll have to wait a bit. But that's definitely good news (as long as they don't find a way to subvert the "organic" label).
Organic is great, but lets not forget about the other terrible business practices that Wal-Mart partakes. I'm still not shopping there.
According to the Organic Consumers Association the attack on the meaning of organic is already on. It's hard to celebrate Walmart going "organic" when the term "organic" will loose it's meaning (if they get their way.) Why didn't The New York Times and Treehugger mention this important issue?
The link to the OCS is: http://www.organicconsumers.org/sos.cfm
I'm in the same boat as Allison - carrying organic is great and all, but they still have a long way to go before I'll ever think of shopping there.
It certainly is a dilemma between 1) buying (only) organic food from them to show them that there's demand for it, that they've made the right decision (unless we learn that the things they sell are not really organic) and that they should continue to move in that direction (steer the ship from the inside) and 2) not giving them money until they change some of their other practices (boycott).
Aloha Treehuggers,
If you haven't seen, "The High Cost of Low Price", check it out.
Here's what it says on the film's website: "The High Cost of Low Price is the documentary film sensation that's changing the largest company on earth. The film features the deeply personal stories and everyday lives of families and communities struggling to survive in a Wal-Mart world. It's an emotional journey that will challenge the way you think, feel... and shop."
Hearing workers in China talk firsthand about their experiences was compelling and sad. If, for whatever reason, you shop at Wal-Mart, see this movie!
http://www.walmartmovie.com/
Aloha, E =)
This is a good move for Wal-Mart, a company I've shopped at for over 20 years. I've seen other supermarket chains attempt "organic" in my area and the results have been dismal at best. Nothing beats the local (and locally-buying) natural foods cooperative of which I am a member and and shop there weekly.
It's fun to watch all the anti-Wal-Mart zealot sheeple get all excited and negative about anything this company does. It humors me to no end.
It's fun to watch all the anti-Wal-Mart zealot sheeple get all excited and negative about anything this company does. It humors me to no end.
Why would it do that?
I worry that this will endanger small local farms even further. Right now, one of the cheapest places to find good, cheap, organic food is from one of the many local family farms in my area. If Wal-Mart can undercut their prices by selling organic products from huge conglomerates, I just hope that consumers take into account quality and source. The organic label is only so meaningful.
I'm one to stick to the smaller co-op type stores and shops which is just my personal preference; however I have witnessed with thine own eyes the target market and clientelle at local Wal-Mart stores and doubt that organic foods will be a top seller. I have a feeling the Little Debbie Snackcakes and other more processed foods will stay number one.
www.walmartwatch.com
www.battlemart.com
Organic is becoming a marketing term as the standards are being lowered by the day.
Wal-Mart .. trust them as far as you can throw them.
You know, Wal-Mart is one of the purest, transparent, and predictable companies there is. They make money. They do so by sticking to the letter of the law, or by pushing that letter by using their power, money, and formidable legal juggernaut. They don't claim to do anything else. How often do you get such honesty and clarity from a company?
With this in mind, you should know that they will implement any policy that they think will help them make more money.
So now that energy prices are climbing, they start to invest in renewable energy tech for their stores, and new trucks for their fleet. Now that the hoy polloi know what "organic" is, they'll sell it and try to modify what the legal definition of "organic" is.
Look, you can disagree with them, but they are a pure product of our system. You gotta take the good with the bad, and then use the system to change the bad.
I see solar panels and a wind turbine on a Wal-Mart, but none on a Whole Foods, WM gets my dollar. Yea, I know about WF energy purchasing, but lets see them actually do what WM has started to do.
Wal-mart is trying to get the people that refuse to shop there to start, they want everyone! I agree - they have a long way to go before I'll step foot in a Wal-Mart. I also saw the movie "The High Cost of Low Prices," it's imacting. Note, other big box stores have similar effects, business ethics, but perhaps they aren't as cut throat as Wal-Mart or try to make an effort (i.e. Target), so try to shop from local, sustainable, or re-sell, resources as much as possible.
May I make a comment unrelated to the topic? I see Treehugger as an international site, so I was slightly annoyed by the use of the word "nation" in this post. Yeah, we all know that Wal-Mart is an American company, but why not write "the largest grocery retailer in the US" rather than "the nation's..."? I take the latter as an assumption that we're all in "the nation" (which for some reason always means the USA).
Wal-mart is doing a lot more regarding sustainability than just selling more organic produce. They've also started energy and waste reduction programs. Just on an initial pilot program of plastic recycling they saved 1,100 tons of plastic from going into landfills. Also by switching to PLA packaging on just four of their in-house baked food products they reduced over 500,000 tons of plastic that would enter a landfill annually. As an aside, last month they raised health benefits for their employees.
whats-up-with-wal-mart.html
Re: that private label organic line you are worried about... Well, they've already become the largest purchaser of 100% organic cotton products.
nike-vs-wal-mart-who-buys-more-organic.html
I don't shop at Wal-Mart, I don't live near one, but I champion everything they are doing, especially because they are influencing all of their suppliers to do the same.
I also agree with the first comment, how can we now make "local" the new "organic"?100-mile-diet-100-mile-wardrobe.html
Think about this scenario. Commodity producing farmers are having tough time making a go of their businesses. Whether they're big scale or family farmers, the going is tough for most of them. Because of this action by WM, they'll be encountering the "organic" brand identity for the first time on a mass scale in the one place the people with limited income will shop. And they'll be seeing it on familiar brands and products. The light bulb does on: "h'mm maybe I should go organic?"
What we want to see is a price reduction that is gradual enough to let them in the door, keeping the premium up enough so they have an incentive. The next step is for WM to use local suppliers and pay them a fair rate for produce. but one step at a time.
I wonder if the TH tips link works. I sent this story over to TH a month ago, and nothing. Now it appears in all its glory. A little slow on the reporting guys, pick it up.
Wal-mart, if for nothing else, feels like shopping in a third world country. Unorganized, chaotic, messy, over-crowded, rude workers, etc, etc. I hate going in there, prefer the other box stores when I have to go in.
And before you get on my case about teh 3rd world comment, I live in one right now (South Africa) and have lived in others before. Wal-mart just feels less organized period. Even if they have one of the most effiecient organizations in the world.
Can anyone say concentration of wealth? Overspecialization? As Walmart increases its range of product offerings, pushing out a greater diversity of local business by making it unprofitable to be local, where will that leave the resources of our communities? After the paltry amount that is retained through local wages and taxes, (only to be returned, because that is the only place one can afford to shop) just like global agribusiness drains land around the world of its biomass, our communities may have decreasing capital to sustain economic growth outside of the big box. Not only might we have fewer consumer options, the idea of options might become irrelevant when we would not be able to afford them if they existed. And the Waltons just get richer. More capital to determine what market they will exterminate, and further drain it of its resources. When a company has the ability to monopolize a product, it also has the ability to determine its attributes, organic just becomes another trademark, and "---" help us if they decide to co-opt the local label.
One government. One lifestyle. One store. How would we ever be able to confront Walmart about its practices, when it has so much of our wealth, and the only place to shop. Yes that is the extreme distopian view, but Walmart has obvious market domination goals.
Wal-Mart may be the world's biggest supplier of organic milk, but I wonder how much of it comes from family dairy farmers and how much of it comes from Horizon style factory farms. Organic Valley, a coop of small family organic dairy farmers, insistence on higher prices for its farmers led to the removal of the coop’s products from Wal-Mart in 2004. See "Doing Well By Doing Good" in the Feb./Mar. 2006 issue of Mother Earth News.
Wal-mart is a huge, publicly traded corporation. If they do anything good, it will be because it's profitable, and if there's an opportunity to do less good and make more money, you better believe they're going to jump on it.
Where does the organic milk that Wal-Mart is selling come from? Horizon and Aurora, the two largest organic dairy labels are essentially using the same feedlot and factory farm techniques to produce their milk, yet still are granted the USDA Organic label. For more on why see "Organic Milk Goes Corporate" in this month's Mother Jones. Here's a link: http://www.motherjones.com/news/update/2006/04/organic_milk.html/
On preview, what Anonymous was saying.
I love the anti-free market left - here is a positive news story that induces some sweet hypocrisy. Thanks for posting this story - the comments are priceless.
Hi, Mark Noonan.
So, let's say a company spends $1,000,000 doing something ostensibly positive for the environment, in the cheapest way possible so that its profits are maximized. Then it spends 10 times that much money publicizing what it did and 10,000 times that much money screwing over people and the planet.
How "positive" a development is this?
Depends on why they're doing it. If they are testing the waters, it's still better than nothing and should be (skeptically) encouraged, IMHO.
If Wal-Mart will be buying organic produce from small and medium sized family farms and paying fair prices for it that enable the farmers to live above a subsistence level, then they have my encouragement. If they are going to support organic produce in the same way they've supported organic milk -- by buying only from factory farms -- then I'm less enthusiastic. We will have to wait and see how this plays out. In any case, it's a story worth covering. I do beleive it's possible for the company to change. Wal-mart used to be better, and maybe it can be again. I hope so.
What bothers me is this quote, from the second page of the article:
"Organic agriculture is just another method of agriculture — not better, not worse," he said. "This is like any other merchandising scheme we have, which is providing customers what they want. For those customers looking for an organic alternative in things like Rice Krispies, we now have an alternative for them."
To Wal-mart, "organic" is just another marketing technique... they obviously don't care about the *reasons* people want organic food. How can we expect them to stay true to organic principles, when they don't have any principles?
The key question in my mind is: Is selling organic produce a sign that Wal-mart is changing its destructive business model, or is Wal-mart just selling another product and trying to portray an innacurate image of itself, as it has in the past?
We'll see . . .
Free market? Hardly. Wal-mart is highly subsidized by the US tax payers. Just do a searh engine search for wal-mark workers and welfare.
here's one hit.
http://www.dsausa.org/lowwage/walmart/2004/walmart%20study.html
Excuse me. Wal-Mart's hugeness means that the organic food market will get a needed shot-in-the-arm. Prices may come down, which means that pesticide-free food will be economical to people who drive used Fords, not new Volvos.
But that is not good enough for the Sanctimonier-than-thou, new Volvo-drivers. You see, they insist that you and I eat food that is only grown locally. So, their philosophy is that it is only right that you pay $10 for a bunch of bananas.
Let's give it up for Wal-Mart. They will do more for organic than your Whole Foods and Trader Joes ever will.
Hitting on the implementation issue again, I guess it remains to be seen if Walmart comes up with their own version of organic or the USDA's pseudo-organic label.
When I heard about this about a month ago I thought it was a good move for Wal-Mart and for everyone. I've since been informed that this is probably not the case. Here is an article on the topic: http://msfarmersdaughter.wordpress.com/2006/04/03/walmart-goes-organic/
I actually don’t own a car and live off of less $7,000 a year and I eat local and organic food every day. How, you may ask, do I accomplish this with such a small income? I grow my own and preserve it. Being green isn’t for the upper-class; it’s for those who tread lightly.
It's about time too.
I agree with it.
good article thanks!
I have a hard time seeing this as anything but a marketing ploy... Still, I suppose it helps support organic farmers in general.
Wow, I know this is supposed to be good news, but why am I afraid that the definition of what organic food is will change soon as multinational corporations start to play in this field?
my 5 year old says it best...
"wall-mart sucks" we don't care if they sell organics. they take advantage of everyone and wonder how they will pollute organics too...
i agree with the post, "let local becoem the new organic"
Walmart going organic has it's good and of course BAD things. For one teenagers like me who want to live a more nutricious lifestyle have the oppurtunity to buy some organic foods, like free range, grass feed beef which is incredbly expensive ( at least for me) and free range chicken, for cheap! BUT, what I'm afraid of, is that walmart is super corperate retail seller, if they get a hold on organic food they, will demand certain suppliers to lower their prices (walmart can do that it has the power, just like McDonalds to beef distributers.) This might cuase certain suppliers to cut corners to provide cheaper, and more goods for walmart. Which then might lower the quality of what we call organic. Next thing you know "organic" food is the regular homogenized stuff that's all around us.
"It was originally, and still is to some people, a way to reject corporate farming practices and establish a connection to the food that you eat and the land that it is grown on. Therefore, people need to think long and hard about what they are really supporting when they start buying their organic food from Walmart." (Source: http://msfarmersdaughter.wordpress.com/2006/04/03/walmart-goes-organic/)
Two things stand out to me in that quote, CONNECTION and SUPPORT.
I believe we vote with our dollars and that every place we spend money is really an expression of ourselves and our beliefs.
We support the things we have a connection to. (From breast cancer to twinkies.)
The same goes for organic foods.
People have all kinds of different reasons (beliefs) for buying organic.
Buying organics from Walmart, may be a way 'into' organics for some people. And I applaud their desire to help themselves and the planet. (Two things I'm connected to.) If that is why they make the purchase. But I doubt, Walmart will be selling a copy of "The Future of Food" DVD (http://www.thefutureoffood.com) in their check out aisles.
Education and information are what help shape our paradigm. (The lenses through wich we see our world.)
Whole Foods staff are knowledgeable; WF stores have informative brochures available; as well as their educational DVDs. Yes. "They cost more." But I don't see Walmart committing to similar social quality standards - like buying local and employee development/training.
I don't shop at Walmart. There is a long list of places I refuse to shop. WF happens to be one 'big box' place where I make an exception, when I can't find what I 'need' at a local organic market or organic butcher (yes they exist!).
I choose to go without my (former favorites) oreo cookies and twizzlers; and pay a little more for my apples. Better for my waistline and the "organic education" of others. Two more things I'm connected to.
i think it is a move forward for them to offer organic selections but i think it is a huge leap backwards if they start outsourcing overseas. that would not be a sustainable approach to bringing the products to market. that is just more dependenecy on oil among other things.
maybe they should redevelop/ retrofit stores if possible to meet LEED silver or gold standards and really pave the way for some other global corporations.
The danger of WM offering organic could be pushing out the small organic producers and small business natural food stores. The key could be consumers leaning on Walmart in a big way to (1)purchase local from small and medium family farms; (2)not overseas outsource; (3)not undercut local small business natural food store prices and refrain from offering a more diverse selection of products than them. Regretably, a large consumer campaign is difficult to muster, but is probably the only thing that Walmart would take notice of.
I am no fan of bug business or Walmart. They have however made affordable organic buying options availabe to those who have had none. This "shallow organic" aproach can be overlooked because in the end it helps the cause by winning supporters who as they become more educated will make better purchase descisoins by shopping local and finding ways to support the grassroot deep organic producers, and still have healthier organic options on the way
I am 14 years old and have been trying to eat all organic for a few months now (for my health and the earth's) and it has been kind of hard for me.I love how I feel and all that but I live in a little town that has one health food store that I somtimes find things to eat, but hardly ever. But I live about 30 minutes from a walmart and I've definently noticed the Organic increase and I was a little "freaked" out about it. I couldnt believe that WALMART was selling so much organic and I felt as is the food wouldnt be true to the organic meaning just cause walmart was selling it. I had that feeling even though I didnt know anything about what walmart's organic produce like where it comes from or if its really organic. So even though it'd be alot easier for me to buy groceries with the rest of my family than instead of in those wonderful whole food stores (which I went crazy with happiness when I first went in one) I dont think I can turn to Walmart for my food needs. Maybe someday if Walmart really does start to care about its consumers health and the earth's I'll buy its organic produce but as of right now I just cant take the easy way and buy at walmart. I need to find more information on all this though! And its all very confusing!
"Activist groups, as well as some organic food retailers and dairies, contend that the company where Wal-Mart and the other big retailers get their milk operates large factory farms that are diluting the principles of organic agriculture and delivering customers a substandard product. They argue that Aurora’s cows do not spend any significant time roaming pastures and eating fresh grass; instead they live on a diet high in grains.
“They are trying to cut corners in the interest of producing milk as cheaply as possible,” said Mark Kastel, senior farm analyst at the Cornucopia Institute, which represents organic family farmers."
walmart is also the reason why deodorant no longer comes in a box with all that wasted packaging material... business decision is really where lasting environmental change will come from !
I, admittidly, do shop at Wal-Mart. I don't