Retailer-organic collaborations can be a powerful driver of change, allowing consumers to change the narrative

Creative collaborations between organic actors and leading retailers can be a powerful driver of change – and send a strong message to politicians and policy makers. A major new report on the state of European grocery retail by global management consultancy McKinsey shows that consumer ‘downtrading’ eased in 2023, and that shoppers are set to increase spending on healthy, organic and sustainable options in 2024. The report also predicts that Europe’s leading supermarkets will accelerate sustainability initiatives this year, as the window of opportunity to meet ambitious 2025 climate targets closes quickly.

McKinsey believes these health and sustainability drivers could improve financial outcomes for retailers by boosting sales at the checkout and cutting energy and operational costs. But are the CEOs of these companies listening, and what insights can we glean when we drill down into the detail of report?

Holdstock is optimistic about organic’s future prospects as inflationary pressures subside, citing latest data from analysts at NiQ showing UK organics back in growth in both value and volume terms. And it is notable that retailers are again showing more organised support for organic. This Spring, Marks & Spencer (M&S) announced that it would be rolling out organic ‘blocking’, merchandising organic chilled and ambient lines together in 90 stores, giving organic more visibility. ‘Big Four’ supermarket Sainsbury’s has recently placed around 140 organic products – spanning dairy, fresh produce and grocery – into its Nectar discount promotion, with substantial numbers of products now selling at below the price of conventional equivalents. Waitrose has also been rolling back the prices of its Duchy Organics range (founded, and previously owned, by King Charles’s Prince’s Trust).

Meanwhile, creative collaborations between Swedish organic actors and retailers, are helping to return organics to growth after a recent slump. Examples include premium supermarket chain Hemköp (200 stores nationally), which is now offering its club members double points on all organic and KRAV-labelled food products. Hemköp, already a strong performer in organics, has set itself a target of 10% of its total food sales to consist of organic and KRAV-labelled products by 2025. Another campaign, launched by Organic Sweden in partnership with prominent retailers and brands thanks shoppers at the point of sale for being ‘Eco Heroes’ when they choose organic. Part of Organic Sweden’s ‘nudging’ campaign, which started in 2022, it involves a close collaboration with leading Swedish supermarket ICA Sweden and five different food companies. The scheme has seen a significant uptick in organic food sales for both branded products and fresh produce.