Organic Industry
Structure
The development of the USDA National Organic Standard in place of differing state/regional standards was widely predicted to accelerate
trends of increasing consolidation in this sector. The first draft of the standard was released in 1997; what changes in ownership and control
have since occurred?
Most acquisitions of organic processors occurred between December, 1997 when the draft USDA standard was released,
and its full implementation in October, 2002. Few companies identify these ownership ties on product labels.
PDF version of Organic Industry Structure: Top 30 Acquisitions
Most
introductions of organic versions of well-known brands occurred after
the USDA standard was implemented in October, 2002. The development of the USDA National Organic Standard in place of differing state/regional standards was widely predicted to accelerate
trends of increasing consolidation in this sector. The first draft of the standard was released in 1997; what changes in ownership and control
have since occurred?
Most acquisitions of organic processors occurred between December, 1997 when the draft USDA standard was released,
and its full implementation in October, 2002. Few companies identify these ownership ties on product labels.
PDF version of Organic Industry Structure: Top 30 Acquisitions
Some, such as Dove Organic, have been developed specifically for Wal-Mart.
PDF version of Organic Industry Structure: Top 30 Introductions
Venture capitalists currently describe organic processing as "fragmented." They are acquiring brands within the same sector
(bread, meat, etc.) with plans to sell them for significant gain at a later date.
PDF version of Organic Industry Structure: Significant Acquistions and Introductions
Most remaining independent organic processors have resisted substantial buyout offers (typically 2 times annual sales; Ben & Jerry's
was acquired by Unilever for 1.1 times annual sales).
PDF version of Organic Industry Structure: Major Independents and Their Brands
Network Animation of Data from the 4 Charts Above
Larger, Higher-Resolution QuickTime Version: http://www.msu.edu/~howardp/OrganicIndustry.mov
Produced in collaboration with Skye Bender-deMoll, an author of SoNIA - Social Network Image Animator.
Mass market channels accounted for 46% of all organic foods sold in the US in 2005. An increasing number of supermarkets, wholesale
clubs and distributors are introducing organic private label products, as well as chains that specialize in organic and natural foods.
PDF version of Organic Industry Structure: Private Label Brands
