Cheap, organic food is increasingly stocking supermarket shelves and discounters are rolling out promotions. Are organic pioneers the losers of this boom?
Aldi Southern has just gone on the offensive again: “Only natural, organic, and a step up, conscious nutrition,” says an ad for the discount supermarket chain’s new brand. A spokeswoman explained in detail what “going further” means: “The brand’s unique selling point is based on ingredients that are as raw as possible, such as spelt, sea and rock salt, rather than table or industrial salt, and Gentle processing.” This phrase used to be heard only in health food stores, not at industry giants.
“Quality suffers”
The organic shop “Quer Beet” has been located in Kassel since 1987. Owner Mira Sulzbacher feels every day what it means to have more and more cheap organic products in discount stores. “Of course, our organic store is a little more expensive than Lidl or Aldi organic, so customers have left. We’ve noticed in particular that fruit and veg are less bought, which has actually been our strongest pillar. But it’s It’s less overall.”
The 33-year-old grew up in the shop her father started. Martin Sulzbacher was one of the first adopters of organic food in northern Hessen 36 years ago. He is often ridiculed for his idealism. He is skeptical of the increasingly organic development of discounters: “If everyone makes organic products, then it won’t be the same anymore. Bioland will cut expenses, and probably Demeter. So I’m worried that the quality will suffer because of this” .
it’s important for customers
Similar concerns arose when Lidl and Bioland announced their partnership in 2018. Nothing happened – except that customers can now buy organic produce cheaper. The numbers show it works. Sales of organic food in Germany have more than doubled, from 7 billion euros in 2012 to 15 billion euros in 2022.
Sales at organic supermarkets fell by 10.8 percent last year, according to market research firm GfK. Health food stores even saw a negative value of 37.5%. It was a different story for retail chains’ private labels: a nine percent increase.
Organic as the “new normal”?
Aldinand is relying on this effect to launch a new brand. They are supported by the organic association Naturland, whose logo can be found on some products. “We are facing climate catastrophe, we are facing dramatic loss of biodiversity, our livestock industry is in some ways completely unacceptable, and organic is only part of the solution. This is why organic is the ‘new normal’ trend. It’s a must,” says Naturland Managing Director Steffen Reese.
For him, there was no other option but to partner with discounters in order to appeal to mass shoppers. So, is Naturland and Co. partly responsible for the decline of small stores? “I don’t think success eats up the pioneers,” Rees said. “We have a different target group in terms of discounts and organic trade, and I believe that if we succeed in attracting more organic customers with discounts, those who are looking for other products will also go to the organic store.”
Where did these organic matter come from?
Norbert Klapp has been raising pigs for 30 years. His stud farm uses Class 2 livestock, which means “corral plus”. This is slightly above the legal minimum of 0.8 m² per breeding sow. About 95% of stud farms in Germany use this form of breeding.
The cost of switching to organic farming will be high: “I need to invest almost a million euros,” says Clapp. “Of course I’m also thinking about it. The issue at the moment is security, like a long-term contract, so that I don’t get stuck investing.” Landzwei recommends not only looking for the organic seal, but also buying locally made products.
organic is not organic
Mira Sulzbacher from the organic shop “Quer Beet” also says that the organic products she produces in the region are very different from those in discount stores: “For me the main aspect is actually regional and seasonal. We have many Suppliers directly from Kassel or the surrounding area. These are very small companies, which means we just have a wider range of direct suppliers.”
She also thinks that more and more food is produced to high organic standards is good for everyone. She wants to stick with it, and hopes that organic will really become the “new normal” – and her organic store will benefit from it.