Whole Foods store | Grimmway Farms | organic-food industry | mainstream player

Natural Selection

by John Carroll
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"I call it the ripple effect," adds Scowcroft. "Every time a Whole Foods store opens, every individual store - from the mom-and-pop to the large chain - has got to address its own organic shelf."

That ripple looks more like a wave to the once small organic-food industry. And organic farmers have been quick to catch it as they push the transition of organic farming, from a small stake on the fringe of the major farming operations in the country 20 years ago to a mainstream player in its own right.

"Whole Foods demonstrated that there was a real market for organic produce," says James Parker, retail coordinator for Whole Foods' national purchasing office in Watsonville, California. "A lot of farmers were reluctant to make the plunge, afraid they didn't have a market for it, that they couldn't produce enough at a high-enough quality standard to sell in the marketplace. We helped convince them they could."

"It's been huge," agrees Jeff Huckaby, general manager of Grimmway Farms' organic division. With Whole Foods' help, Grimmway has mushroomed from a roadside stand in the late 1960s to a massive farming operation that now includes the high-profile organic brands Bunny-Luv and Cal-Organic, which started selling organic produce to Whole Foods when both operations were fledgling, struggling wannabes.

Once Whole Foods made it past the start-up phase, its deep pockets and almost insatiable year-round appetite for organics helped stabilize a turbulent market. And when expanding producers are looking at an unexpected bumper crop of table-ready produce, they can ask for help.

"It's a give-and-take relationship," says Stephen Poklemba of Marfa, Texas-based Village Farms, which grows tomatoes in vast hydroponic greenhouses in Texas, Pennsylvania, and Mexico. "If crops are overproducing and we need to move product, I can talk to Whole Foods and they can do a push or get an ad put out to move more of that product."

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ISSUE: Jan 1, 2006
American Way Cover - 1/1/2006