Plummeting organic sales have led Tesco and Asda to slash the number of organic lines stocked by at least 30%, exclusive data reveals.
Tesco, which just two weeks ago pledged to support the category's recovery, has cut the number of organic SKUs stocked by 30% year-on-year. Asda has cut its range by 35%, according to data collected for The Grocer by market intelligence provider Brand View.
The move comes in response to falling sales across organic. Year-on-year sales in the multiples have fallen 14%, according to the latest Nielsen data [52w/e 5 September], reflecting how rapidly sales have dropped as recently as March sales were down just 1% year-on-year.
Processed products, such as ready meals, babyfood and snacks, have been particularly hard hit as retailers concentrated on stocking a smaller number of core lines, particularly in fresh produce.
"It's common sense that when shoppers buy less of a particular category, we will stock less," said an Asda spokeswoman. "Our customers have said they wanted more local food in Asda, and we've recently increased our range by 100 items. This space has to come from somewhere. We still have a choice of organic items across stores. If consumers want, say, an organic yoghurt, they will still find it but where there might have been several there may now be just one."
Soil Association policy director Peter Melchett said he believed the size of the range in multiples was less important than sales figures. "Sir Terry Leahy said this week he was seeing consumers return to higher-value categories, such as premium and organic, and that's what matters," he said. "The range might be slimmed down but the fringe of consumers who turned away in the downturn are returning."
However, brand owners said the delistings were a wake-up call for organic producers. "We as an industry need to simplify the benefits of organic," said Ella's Kitchen founder Paul Lindley. "The organic industry can learn from the Fairtrade and free-range initiatives, which have simple but effective messages but retailers and suppliers need to work together to achieve this."
Tesco said it remained committed to organic despite some consumers downtrading out of the category. "Customers have been looking at ways to save money, which has resulted in a more mixed basket of both value and premium lines," said a spokeswoman. "But because we continue to provide a really strong organic offering at great prices, customers are buying their organic food in Tesco rather than another supermarket."
Tesco, which just two weeks ago pledged to support the category's recovery, has cut the number of organic SKUs stocked by 30% year-on-year. Asda has cut its range by 35%, according to data collected for The Grocer by market intelligence provider Brand View.
The move comes in response to falling sales across organic. Year-on-year sales in the multiples have fallen 14%, according to the latest Nielsen data [52w/e 5 September], reflecting how rapidly sales have dropped as recently as March sales were down just 1% year-on-year.
Processed products, such as ready meals, babyfood and snacks, have been particularly hard hit as retailers concentrated on stocking a smaller number of core lines, particularly in fresh produce.
"It's common sense that when shoppers buy less of a particular category, we will stock less," said an Asda spokeswoman. "Our customers have said they wanted more local food in Asda, and we've recently increased our range by 100 items. This space has to come from somewhere. We still have a choice of organic items across stores. If consumers want, say, an organic yoghurt, they will still find it but where there might have been several there may now be just one."
Soil Association policy director Peter Melchett said he believed the size of the range in multiples was less important than sales figures. "Sir Terry Leahy said this week he was seeing consumers return to higher-value categories, such as premium and organic, and that's what matters," he said. "The range might be slimmed down but the fringe of consumers who turned away in the downturn are returning."
However, brand owners said the delistings were a wake-up call for organic producers. "We as an industry need to simplify the benefits of organic," said Ella's Kitchen founder Paul Lindley. "The organic industry can learn from the Fairtrade and free-range initiatives, which have simple but effective messages but retailers and suppliers need to work together to achieve this."
Tesco said it remained committed to organic despite some consumers downtrading out of the category. "Customers have been looking at ways to save money, which has resulted in a more mixed basket of both value and premium lines," said a spokeswoman. "But because we continue to provide a really strong organic offering at great prices, customers are buying their organic food in Tesco rather than another supermarket."
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