Publix enters organic food business

When shoppers visit the new Publix GreenWise Market in Palm Beach Gardens they’ll be able to buy their organic fruits and vegetables, made-to-order lobster ravioli and Tide laundry detergent. Plus, they’ll find 50-year-old olive oil and wines priced at $250 a bottle.

The prototype store, which will open to the public on Thursday, is in many ways a conglomeration of an organic grocer, gourmet specialty market, restaurant and traditional supermarket all rolled into one.

It’s also Publix Super Markets’ attempt to protect its market share from the expansion of Whole Foods Market, which continues to grow its presence in South Florida with a store opening Wednesday in Coral Gables.

Publix GreenWise stores are scheduled to open next year in Boca Raton, Vero Beach and Tampa, followed by Coral Springs in 2009.

”We have customers that shop at Publix and are going to the competition to find organic and natural products,” said Maria Brous, Publix spokeswoman. “We want to give them a reason to stay here. We’re protecting our business and continuing to engage our customers. We feel we’re offering them a one-stop shopping experience.”

NO BIG SURPRISE

Publix’s move into the organic and natural foods arena isn’t surprising given the industry trends, which have seen these products move from the counterculture into the mainstream as consumers become increasingly concerned about health and food safety. U.S. sales of organic and natural products have been growing at a double-digit pace, reaching $28.2 billion in 2006 compared to $23 billion the previous year, according to Nutrition Business Journal.

As far as Whole Foods is concerned, Publix GreenWise and the moves of other traditional grocers into the organic and natural foods segment is a case of imitation being the sincerest form of flattery.

”It’s part of our mission to inspire others to imitate our format,” said Juan Núñez, president of the Florida region for Whole Foods, which will have 14 stores in Florida following the Gables opening and the merger with Wild Oats. “Competition is great. Customers will have a choice. We will continue to provide what we always provide: a great experience and great value.”

While just over half of all U.S. shoppers buy organic foods, research from the Food Marketing Institute shows that the most popular place for them to do that shopping is the traditional grocery store.

Those trends and the strength of the Publix brand will help GreenWise get consumers’ attention, industry experts said.

”Publix is so well-known and well-loved in Florida, I think that a lot of people will give them a chance,” said Lorrie Griffith, editor of The Shelby Report, a grocery industry trade publication. “Publix isn’t shy about trying new things. They don’t want to be looked at as a traditional grocer that’s standing still.”

Publix began introducing organic and natural products in its stores

in 1996 and the GreenWise store brand launched in 2001 with paper towels and napkins. But the GreenWise market, which has been in the works for several years, includes a selection that dwarfs anything the chain has done before. Almost 50 percent of the thousands of organic and natural products can’t be found at any other Publix store, Brous said.

TRADITIONAL, TOO

Along with the rows of organic salad dressings, juices and cereals, there are plenty of traditional, brand-name products like Cheerios, Kraft mayonnaise, Philadelphia cream cheese, Jell-O pudding and Lean Cuisine frozen meals. But there isn’t nearly the depth and breadth of traditional selections and some key products are missing like Coke and Pepsi.

”We didn’t want to alienate our traditional customer base,” Brous said. “We want our mainstream customer to also feel comfortable in this store.”

That’s a totally different strategy than the competition. At Whole Foods, the entire focus is on natural and organic products. There’s nothing in the store that doesn’t meet the company’s strict environmental standards. Looking for diapers or paper towels? Don’t expect to find any Pampers or Bounty.

”This is not something we do, it’s everything we do,” Núñez said. “It’s our mission and it’s something we truly believe in. We did it to make a difference and because we’re cause-oriented.”

What both Publix GreenWise and Whole Foods have in common is a store atmosphere that aims to cater to the time-starved customer who is looking for convenience and the gourmet foodie who is looking for specialty products.

At the new Whole Foods in Coral Gables, some of the features new to South Florida stores include a hardwood smoker and BBQ bar, in-store coffee roaster, grilling station and Asian Express featuring sushi, noodle bowls and teriyaki selections by local restaurant Sushi Maki. The store will also eventually offer valet parking.

FINE AMENITIES

At Publix GreenWise, the front of the store features 10 specialty stations,with more than 100 prepared foods that customers can buy to take home or eat upstairs in the mezzanine area. The selections include a Mediterranean oven with fresh-baked pizzas, a wok station with Asian specialties, custom-made salads and a carvery.

Some of these may start showing up over time at traditional Publix stores.

”Customers rely on us to be a food solution for them,” Brous said. “Our customers are eating out more and they’re looking for other options.”

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  • 2 Comments so far

    1. Remi October 4th, 2007 4:08 am

      This blog gives all the informations of Florida.

    2. Acai Berry Detox August 24th, 2008 2:06 pm

      I’m always into discussions on anything organic, so this read made me feel at home.
      I’ll bookmark the site and subscribe to the feed!

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