It's been a tough 12 months for the organic fresh produce sector. Sales of organic fruit, veg and salads are down 16.1% by value and 18.2% by volume [TNS 52w/e 17 May 09]. But organic's loss has been Angus Soft Fruits' gain. 

Its pesticide-free Good Natured Fruit cannot be classified as organic because it is not grown in soil, but thanks to the fact it boasts similar values to organic without the premium price tag it has gone down a storm with shoppers since being launched two years ago.

The brand, which is worth £5m, has been so successful that it is now branching into salads. Good Natured Salads launched into Asda in May with products including peppers, loose, vine and baby plum tomatoes, and cucumbers. 

Asda salad buyer Andy Wareham describes the range as a "more affordable alternative to organic", and while managing director Lochy Porter says ASF's strategy has never been to aggressively steal market share from organics, he admits the economic downturn has provided the perfect environment to establish the Good Natured brand.

"Organic sales were dropping way before we got involved in Good Natured Fruit, but we're affordable, which suits the consumer." By "affordable", Porter means about 20% more expensive than conventionally grown fruit and 20% cheaper than organic. The extra costs are associated with the pesticide-free growing method, which is more labour-intensive but produces better yields than organic. Although ASF's soil-less growing methods (much of its produce is grown in substrates) bar it from organic classification, Porter is happy charging more than for standard produce because he believes a significant number of consumers have concerns about the safety of pesticides.
 
By eschewing pesticides in favour of biological pest control (for example, using ladybirds to control greenfly a technique Porter refers to as "bug wars") he can price his products above the norm but below organic. "We know we're not organic, but this way allows us to get a health message across," he says. That message reached a whole new audience in 2007 when Good Natured Fruit launched nationally. It has achieved listings in Sainsbury's, Asda, Morrisons and The Co-op Group no mean feat in a category that has traditionally lacked brand lustre. Asda reported sales of Good Natured Fruit had outstripped sales of leading organic lines fivefold after it rolled the range out to all its stores.

Porter is now hoping to repeat the trick with Good Natured Salads. Pesticide-free may still be a niche category for now indeed ASF's business remains 85% in conventionally grown fruit but Porter believes the concept has longevity. "It's not about a niche sell," he says. "I think Good Natured has the potential to be a significant part of the business."

Porter refuses to be drawn on his next move, but with more products rumoured to be in the pipeline, Good Natured seems set to steal more market share from the beleaguered organic market.