The recession hasn’t been very kind to natural and organic retailers, but there have been a few bright spots — and the brightest one, many will agree, has been the bulk department.

Yes, bulk: Those rows of plastic bins stretching down the aisles that, at just the pull of a lever, dispense everything from trail mix to chocolate nibs to shampoo. Shoppers can save money by taking as much or as little as they want, and save packaging by using the thin produce bags that, at a growing number of stores, come in biodegradable varieties.

Bulk is cheap, and bulk is green. But bulk is also different, and that makes it a complicated opportunity for many of the retailers, especially the mainstream ones, that are jumping on the trend.

To figure out how to best manage the category, I turned to an expert: Doug Sanders, president of Sprouts Farmers Market. Sprouts now operates 50 stores throughout the Southwest, and at each one, bulk is the star.

“The dead center of our store is the bulk department,” said Sanders. “Produce and bulk combined probably take up 30% of our store.”

Inside the department, Sprouts customers can find time-honored favorites like nuts and granola, as well as more modern, gourmet fare like dark chocolate pieces and cranberry-infused trail mixes. The latter choices, Sanders noted, are doing particularly well right now, in light of consumer awareness of antioxidants. MORE…

The science around coffee’s health benefits may be mixed at the moment, but there’s no doubt that the brew is a champion when it comes to organic sales. Figures released today at the 5th annual tasting event — hosted by the Organic Coffee Collaboration, a project of the Organic Trade Association — show that the market for organic beans in the United States and Canada topped $1.4 billion in 2009, up from $1.3 billion the year before.

Coffee is the No. 1 organic import, and now represents about 5% of all organic sales in North America. Organic certification continues to be a minimum, upon which additional standards are added, including for fair trade, bird-friendly, Rainforest Alliance and others.

The cup continues to fill as more roasters improve their relationships with growers and expand their roasting and distribution capabilities. Even with the recession, the category grew at just over 4% — not bad for a product subject to premium pricing and special-occasion treatment.

“This data shows that consumers did not shy away from organic during tough economic times, but rather purchased it in even greater volumes than in the past,” said Sandra Marquardt, who organizes the even every year on behalf of the roasters and the OTA.

Daniele Giovannucci, an international market analyst who conducts the survey annually, documented a 21% growth rate for organic coffee during the period 2004 to 2009, which dwarfs the conventional growth rate, which stumbled along at 1% during the same time frame.

With such a strong outlook, I’m tempted to close with one of the gag set-up lines from that 1980 movie classic, Airplane!, spoken by the earnest Dad flying with his wife and son: “I think I will have another cup of coffee…”

(Photo credit: Shayon Ghosh)

The dairy case at Winn-Dixie Stores just got some new competition. Luckily, this product favors the retailer, since it’s a private label yogurt, a new organic line that also includes added health benefits.

The five-item line, Winn-Dixie Organic Active Yogurt, is available in six-ounce containers of strawberry, blueberry, peach, vanilla and raspberry flavors. They’re certified USDA organic, kosher, and have no artificial preservatives or flavors, according to the company.

What’s different about this product? Beside probiotics and prebiotics, this yogurt is infused with heart-healthy omega-3s, calcium and vitamin D, and three grams of fiber per serving. No other retailer in Winn-Dixie’s operating areas offers a yogurt with all of the same health benefits, according to officials.

“Our organic line continues to expand with new products geared towards improving and maintaining a healthy lifestyle,” said Mary Kellmanson, W-D’s group vice president of marketing.

Retailers looking to stake a claim in wellness would be wise to look at the dairy category, one of the gateways to whole health. Besides fluid dairy, yogurt has captured the attention of many U.S. consumers as a healthful addition to their diets. It’s even been named the food of the decade.

Indeed, the entire yogurt category continues to rebound nicely from the recession. Figures from Mintel show that 2009 sales reached about $1.4 billion, up 32% over the prior five years. Though the big names — Dannon and Yoplait — lead the market, private label has emerged as a lively alternative, helped by the recent recession. Stats from the Private Label Manufacturers Association show that store-brand yogurt ranks among the top 20 in regards to volume, and has a 20% or so share of the category.

Stick your spoon in that and stir it around.

The concept of “value” can be a tough sell in a natural and organics world known for premium prices and gourmet cache, and so retailers in this space have had to work hard to change consumer perceptions. Supervalu tried and failed with its Sunflower Market banner. Same with Bashas’-run Ike’s Farmers Market, which shuttered its last store in 2009. There’s success to be had, as companies like Trader Joe’s and Mike Gilliland’s Sunflower Farmers Market have proved, and now there’s one particularly precocious retailer stepping up to show how it’s done.

Sprouts Farmers Market has done a lot of growing in its seven years. Started back in 2003 in Chandler, Arizona — right in the heart of Bashas’ country — Sprouts has expanded across the southwest and California at a rate of about ten stores per year. Next week, the privately held company will hit a milestone with the opening of its 50th store.

What’s the secret behind this impressive run? The recession, which cut expansion plans for most retailers, appears to have worked in the favor of Sprouts, which banks its image on price and freshness. Its mission statement is, “Helping America eat healthier, live longer and spend less.”

Success has required the chain to master the “spend less” aspect of the business. It also actively courts its customers, plays up its ability to build jobs within communities, and serves as an effective counterpoint to Whole Foods.

“We were very fortunate in the way we were positioned,” said Doug Sanders, Sprouts’ president, in an interview with Supermarket News reporter Roseanne Harper. MORE…

Last summer was a good one for grilling. Encouraged by poor attendance at steakhouses and other high-end restaurants, supermarkets ramped up their selection of premium quality meats at affordable prices. Some of the stories included USDA prime cuts selling for $8.99/lb. at Costco, and Wagyu beef, which normally goes for around $40/lb., selling for $14.99 at Seattle’s Metropolitan Market.

Madness! Delicious, delicious madness. As much as shoppers would like this trend to last, the reality is that it won’t. Feed costs are up, the economy is rebounding, and health and environmental concerns are transforming the meat case into the latest battleground of ideals.

What are some of these concerns? The use — some would say overuse — of sub-therapeutic antibiotics on livestock, for starters, has become a hotly contested issue. According to research out of West Texas A&M University, one-third of consumers believe that eating meat from animals treated this way will make them resistant to antibiotics. There’s also the issue of humane treatment, with 57% of consumers who believe mistreatment is widespread in the industry, according to the same study.

And then there are those who are cutting out meat entirely — or for one day, at least. Meatless Mondays, a grassroots effort that asks people to skip meat one day out of the week, is expanding across schools and households. It addresses the concerns that many people have over meat’s — especially red meat’s — saturated fat content, as well as the environmental impact of livestock processing.

All of this adds up to create some major red flags for the meat industry. But they’re not just watching all of this happen; they’re using their marketing muscle to play up the healthy side of the market MORE…

Supermarkets might want to check their inventory of nuts. Look in the grocery aisle for the cans and jars, the bulk section next to produce, and anywhere else these little gems are merchandised. Chances are sales will start going up very soon, thanks to a study that really cracks the shell on the connection between nut consumption and health.

First, some background. Nuts have had it pretty good for a few years now. It was the late 1990s when a new round of studies began taking a fresh look at the nutritional profile of walnuts, almonds, pecans and the like. One of the biggest findings has been that nuts have the ability to lower cholesterol and undo the effects of LDL or “bad” cholesterol.

The U.S. government concurred with these initial conclusions and in 2003 the Food & Drug Administration bestowed a qualified health claim on most nuts, stating that eating about two ounces daily could reduce the risk of heart disease.

Now, a new report published in the May issue of the Archives of Internal Medicine has found that people who ate even higher quantities of nuts (about 2 ½ ounces) every day lowered total cholesterol levels by 5%, and dropped their LDL cholesterol levels by 7%. In so doing, the ratio of bad to good cholesterol tipped to favor the good side. MORE…

Even if you’re lucky enough and can grill outdoors all year, the month of May is the kick-off for the rest of us. For the registered dietitian, especially one practicing in a supermarket setting, this is the time of year when we look around for ways to make outdoor cooking more nutritious. We’ll start playing up locally grown produce and some great seasonal foods. Healthy and good eating abounds!

This is also a time when our seafood and produce specialists are willing to team up and host taste tests, recipe demos and special displays that bring healthy eating to the top of the menu. So where do we start?

• Think safe grilling. Customers might be a little rusty from winter, so remind them of the basics. Equip them with meat thermometers. Explain the need to keep fat from dripping onto hot coals. Discuss the merits of grilling and keeping food from burning. There’s a lot of cross merchandising opportunities to promote safety while selling them the food they’ll be cooking.

• Look to produce for some great grilling foods. Right now, there’s fresh asparagus, Vidalia or other sweet onions, and some old favorites like tomatoes, zucchini, and green and red bell peppers. Emphasize organic and locally grown whenever possible. MORE…

Despite reassurances from manufacturers, consumers have become increasingly distrustful of chemicals in the products they buy. They’re reading labels, buying organic and all-natural foods, and campaigning against complex ingredients like bisphenol-A and high fructose corn syrup.

This isn’t a revelation, of course, but it’s an appropriate lead-in to today’s news: A report released today by the highly influential President’s Cancer Panel that supports the growing concern about these chemicals, arguing that their role in causing many types of cancer is grossly underestimated.

In fact, if I’m reading everything right, I’d call it a landmark medical endorsement of the organic movement.

In the 240-page report, the panel — which advises the National Cancer Program and, as its name implies, reports directly to the president — lays out a case for tightening regulation and providing education on the risks of chemicals like BPA. There are nearly 80,000 chemicals currently on the market, the report asserts, and only a small percentage have been adequately studied or regulated. Furthermore, the regulatory mindset that says a chemical is safe unless there’s clear evidence to the contrary, is a dangerous one, since modern science doesn’t account for all the ways in which these elements work.

“The increasing number of known or suspected carcinogens compels us to action, even though we may currently lack irrefutable proof of harm,” said LaSalle D. Leffall, Jr., M.D., chair of the panel, in a statement.

It’s estimated that 41% of all Americans will eventually be diagnosed with cancer, and that 21% will die from it. MORE…

Topco Associates’ pitch for the dormant Wild Oats brand name seems — at first blush — like an odd move. What would a company that already offers a pretty successful private-label natural/organic brand called Full Circle want with a retail name that hasn’t been seen on shelves for three years?

Or, more to the point: Why would Topco want it?

First, the background: The Wild Oats brand name has been for sale since Whole Foods Market acquired Wild Oats in 2007. A messy antitrust battle with federal regulators ensued, and ended only after Whole Foods agreed to sell off 32 Wild Oats units, along with the brand (to date, three stores have actually been sold).

Fast forward three years. According to papers filed with the Federal Trade Commission, Topco and Luberski Inc., a Fullerton, Calif.-based food-product supplier, are both bidding for the Wild Oats rights. A source familiar with Topco tells me that Topco has been interested in the name since the acquisition.

Why? The current thinking is that Topco will position the Wild Oats name as a “better-for-you” brand that complements the existing Full Circle natural/organic line, similar to what Safeway has done with its “O” Organics and Eating Right brands.

Adding a lesser-evil tier will allow retailers who pull from Topco to offer an additional line, with different price points and product attributes, to mainstream customers who might otherwise simply buy conventional products if given only a natural/organic option. MORE…

Each day on the show floor brings new insights into how the many moving parts in the natural foods industry can process emerging consumer demand and turn out products that answer the call. There were two trends that we saw in the aisles yesterday that will soon be coming to a store near you:

Flexitarian Soy: Soy regularly gets into trouble. Studies come out against it, only to be answered by research refuting the original findings. Nevertheless, soy remains the dominant alternative protein of choice for vegans and vegetarians — and now, it seems, flexitarians.

That last term was coined recently to describe those people who might also call themselves “casual vegetarians.” They don’t follow a rigorous no-meat diet, but they have cut down on their meat consumption, either for health or ethical reasons. Judging from some of the products we’re seeing here, it seems as if soy manufacturers are poised to deliver a soy product that increases the acceptance factor of these part-timers.

First, from Vitasoy/Nasoya, comes a line that’s been fortified with essential vitamins (particularly B12) that are primarily found in meat, and often at risk in a vegetarian diet. The second comes from Harmony Foods, which is introducing a dry soy mix that is extremely flexible (after all, flexitarian eaters must desire flexibility) and can be shaped into patties, balls or crumbles, simply by adding water.

What’s more — and here’s the kicker — the latter product is flavored to mimic certain animal proteins, such as chicken. So, these optional vegetarian consumers will be able to find a compromise between their actions and their desires.

Then there’s product redesign: An impressive number of manufacturers are unveiling new graphics, updated logos and more ecological packaging at the show. Among the big ones we found were Nature’s Path, the Canada-based maker of cereals and cereal bars. Their new boxes are 30% smaller now, though they contain the same amount of product. What’s more, the dimensions of the boxes won’t require retailers to reset shelves or change planograms, One of the side benefits for companies undertaking such a program is that, if the work with retailers, they’ll likely be ablr to get one or two more facings of their products onto shelves.

Over at Barbara’s Bakery, the company’s iconic puffin no longer gets top billing in the graphics. We learned that the new design will harken back to the company’s founding, and its California roots, with a bucolic image and a craft-paper shade of brown threading throughout.

We’ll note that all of the products mentioned are either just coming to market or are going into distribution right after the show. The fact that many manufacturers time their efforts to Expo West indicates the importance they give the show as a marketplace of ideas. For this reporter, this makes wandering the aisle more like a treasure hunt for seek out the new and improved items your customers are going to soon see.