Walmart Aims to Disrupt Organic Food Market with Low-Cost Brand

Wal-Mart Stores Inc. of Bentonville is entering the organic-food market through a new line of low-cost products, and experts say the move could have a significant impact on the industry.

The retail giant announced in a press release April 10 it will relaunch Wild Oats organic food products, a 27-year-old line once briefly owned by Whole Foods Market, at a price point that is at least 25 percent less than other national-brand organic products.

“We know our customers are interested in purchasing organic products and, traditionally, those customers have had to pay more,” Jack Sinclair, executive vice president of grocery at Walmart U.S., said in the press release. “We are changing that and creating a new price position for organic groceries that increases access.”

According to the release, 91 percent of Walmart shoppers would consider purchasing products from an affordable organic brand at the retailer.

The Wall Street Journal reported April 10 that the lower-cost line could have major significance on the organic-food industry.

 “We are trying to disrupt the market,” Sinclair said in a WSJ interview.

Walmart will sell nearly 100 Wild Oats products in its stores. Brands will include Wild Oats Marketplace Organic, certified organic products that make up 90 percent of Wild Oats’ offering; Wild Oaks Marketplace; and Wild Oats Marketplace Originals. 

 “Our availability at Walmart will allow us to finally pass along scalable savings directly to our customers,” Tom Casey, CEO of Wild Oats, said in the press release.

The U.S. packaged organic-food market doubled to $12 billion last year from $5.77 billion 10 years earlier, Euromonitor data showed, according to the Wall Street Journal. In comparison, the overall packaged food market rose about 25 precent to $360 billion during the same period