Kroger’s Organic Food Surpasses A Billion Dollars In Sales

Organic foods come at a price, but it isn’t stopping Kroger’s from selling their organic food products. The Kroger Company, an American retailer founded in 1883, is the largest supermarket chain in the United States in terms of revenue.

In 2010, Kroger introduced their organic food brands called Simple Truth and Simple Truth Organic. The company markets these brands as being free from 101 different preservatives and artificial ingredients. Their organic food product line consists of more than 35,000 products, with thousands more being added each year, Franchise Herald reports.

Michael Ellis, Kroger’s President, said that they are answering the demands of their customers.

“This is one area where the customer has clearly said that we’re interested in. We’re really just answering the customer’s call for more and better.”

Unlike before, organic food products are now slowly becoming a staple in many households. They are no longer seen as expensive specialties. Moreover, with many of organic foods being introduced, the prices of natural products are slowly going down.

Businessweek reports that Kroger has already surpassed the billion-dollar mark for the sales of their organic food line. More and more people are purchasing organic dairy, breads, and cereals. However, it is still worth noting that $1 billion is just 1 percent of the annual revenue that Kroger receives.

Rodney McMullen, Kroger’s Chief Executive, said that there’s more “margin pressure” now on organic foods that ever before.

“It seems that it’s becoming more and more of a competitive category, and so although margins tend to be better in natural and organic, I don’t know if that’s going to continue for the foreseeable future.”

Aside from being free of pesticides, organic food has several other advantages including having more nutrients, better taste, and they are better for babies and children. Now, shoppers are being more conscious about their decisions when it comes to purchasing food from the grocery. More shoppers are checking labels to see if they are organic products.

With the rising popularity of organic food, there are reports that price premiums could continually decrease over time, as there is big competition in the organic food products market. Kroger continues to provide organic food to customers, and this fall, they will be introducing organic wine that you can enjoy together with your organic food.

In addition, organic food lovers can try their hand in creating delicious dishes featuring organic food products from Kroger’s Simple Truth line by checking out recipes on their website.

[Image via Kroger Krazy]

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