NBJ s ORGANIC FOODS report 2006

Transcription

1 NBJ s ORGANIC FOODS report 2006 An analysis of markets, trends, competition and strategy in U.S. organic foods. October 2006 Rsearched and written by: Nutrition Business Journal (a division of New Hope Natural Media and Penton Media, Inc.) 4452 Park Boulevard, Suite 306 San Diego, CA (619) , Fax: (619)

2 Nutrition Business Journal, TABLE OF CONTENTS 1. ACKNOWLEDGEMENTS NBJ S BASIC DATA METHODOLOGY RESEARCH METHODOLOGY FOR THE 2006 NBJ/OTA SURVEY DISCLAIMER COPYRIGHT DUPLICATE COPIES AND MORE INFORMATION ON NBJ PRODUCTS AND SERVICES ABOUT NBJ AND RESEARCH PARTNERS EXECUTIVE SUMMARY THE EVOLUTION OF THE ORGANIC MOVEMENT AND CURRENT MARKET DRIVERS What is Organic Agriculture? General Definitions USDA S 2000 ORGANIC STANDARDS: A LEGAL DEFINITION Regulatory History The Organic Foods Production Act of Highlights from the Organic Foods Production Act of Organic Labeling Requirements Product Labeling under the Organic Foods Production Act of Regulatory Details Remain Organic Standards Challenged in 2002 and 2004 and Regulatory Update: Harvey Lawsuit Ripples Organic Pond in Standards for Organic Personal Care Debated Standards Developed for Organic Fiber HIDDEN COST OF CONVENTIONAL AGRICULTURE Pesticide and Antibiotic Use in the United States Monoculture & Factory Farming Full Cost Accounting Levels the Playing Field Organic Farming Competes Favorably in Studies GOVERNMENT SUPPORT: CONVENTIONAL & ORGANIC AGRICULTURE Conventional Agriculture Organic Agriculture Family Farmers Invest Futures in Organic Production Organic Benefits Need More Scientific Backing IMPACT OF ORGANIC STANDARDS ON SALES Labeling Impact Hard to Assess Regulatory Certainty Will Enhance Confidence USDA Organic Seal and Other Survey Responses CONSUMER DRIVERS Desire for Health and Well Being Desire for Safer Food and Pesticide Avoidance Family Farms Associated with Food Safety Locally Grown Could Be a Powerful Message Lifestyle and Taste are Key Say Brand Experts Consumers Vague on Organic Benefits Brand Awareness: Science Versus Emotion Summary of Key Organic Consumer Drivers Boomer Demographics Nutrition Business Journal, San Diego, CA

3 NBJ s Organic Foods Report NBJ s Organic Purchaser Model SPINS Sets Out to Track the Evolution of the Natural and Organic Consumer Organic Food IQ by Geographical Location NMI Sees Polarization Among Both LOHAS and Health & Wellness Consumers Where Are Consumers Headed? Traditional Tools Alone Won t Provide the Answer GMOS & GENETIC ENGINEERING Definition of Genetic Engineering Risks of Agricultural Biotechnology Use of Agricultural Biotechnology GMOs: Threat and Opportunity GMO Regulation & Labeling in Europe International Attitudes to GMO U.S. State Legislatures Consider GM Agriculture Consumer Perceptions of GMO Softening in the United States Pew Poll Indicates Confusion and a U.S. Consumer Up for Grabs StarLink Incident Fading Into the Past Manufacturer and Retailer Reaction to GMO Food Industry Action to Avoid GE GMO Scenarios ORGANIC MARKET DATA OVERVIEW DATA OVERVIEW Nutrition Industry Nutrition Industry Growth NUTRITION INDUSTRY & ORGANIC FOOD GROWTH Organic Food Reaches $13.8 Billion NATURAL VS. ORGANIC FOODS PENETRATION OF ORGANIC FOODS ORGANIC FOODS GROWTH FORECAST Factors affecting growth in organic foods ORGANIC FOODS SALES GROWTH TRENDS VS. OTHER NUTRITION PRODUCT CATEGORIES ORGANIC FOODS PRODUCT CATEGORY SALES & GROWTH TRENDS ORGANIC FOODS BY SALES CHANNEL Channel Blurring Continues As Retailers Respond To Shifting Consumer Value Propositions Amazon.com Adds Natural/Organic Foods To Online Offerings Supermarkets Expand Natural & Organic Offerings Wal-Mart Weighs In As Formidable Organic Competitor Beyond Organic Wal-Mart Launches National Ad Campaign To Boost Organic Sales Target s New Private Label Organics Healthier Snacks Flood Mass Market; Financial Perspective on Nutrition Companies in Demand Whole Foods Reaches $5 Billion; Wild Oats Makes Strong Profit and Stock Gains Retail Insights Looks at the Evolution of Retail Strategy in the Natural Products Industry LEADING US NATURAL & ORGANIC FOOD MANUFACTURERS Organic Food Manufacturer, Wholesale, & Retail Universe Nutrition Business Journal, San Diego, CA 3

4 Nutrition Business Journal, More Multinationals Join the Ranks of the Organic Industry Large Independent Manufacturers Still Doing Well Profiles: Small Natural & Organic Companies Test Distribution Options ORGANIC FARMING: DEMAND OUTPACES PRODUCTION IN SUPPLY Organic Demand Outstrips Supply Raw Material Supply Identified As a Big Challenge FOOD SERVICE M&A AND FINANCE More Deals in Conventional and Natural Food Alike SunOpta and Hain Celestial Keep the Acquisitions Coming Robust Forecast for Private Equity Activity in the 2006 Health & Wellness Sector GLOBAL MARKETPLACE Mixed Fortunes in Europe s Maturing Organic Market Europeans Vote for Fair Trade Bananas ORGANIC FOOD AND BEVERAGE CATEGORIES ORGANIC FOODS HITS $13.8 BILLION IN Healthful positioning and mass-market penetration accelerate, while demand leads to shortages of some key organic ingredients Critics Complain; Consumers Buy Manufacturers Face Shortages Category Conundrum Natural Still Rings Shoppers Bells Margins Squeezed by Organic Ingredient Premiums Brands Look To Quality To Beat Private Label MARKETING AND BRANDING ORGANIC FOOD Brands Look To Quality To Beat Private Label Garden of Life Tests its Brand Equity in Organic Food Demographic Marketing Tops List of Sloan Trends Predictions Organic Food Science Lays Foundation for Nutritional Claims Retailing Organics: A Gatekeeping Guide Q2 Brand Intelligence: Buying Motives Evolve Marketing the Stages of Organic ORGANIC DAIRY PRODUCTS Organic Dairy Trended Dollar Sales and Growth Organic Dairy Channel Distribution Organic Dairy Sub-Category Performance Organic Dairy Growth Forecast Organic Milk / Cream Organic Yogurt Organic Eggs Organic Cheese Organic Butter / Sour Cream/ Cottage Cheese Organic Ice Cream ORGANIC BREADS & GRAINS Organic Breads & Grains Trended Dollar Sales and Growth Organic Breads & Grains Channel Distribution Organic Breads & Grains Sub-Category Performance Organic Breads & Grains Growth Forecast Organic Dry Breakfast Foods Frozen and Fresh Bread/Baked Goods Nutrition Business Journal, San Diego, CA

5 NBJ s Organic Foods Report Organic Cookies Organic Pasta Organic In-store Baked/Bakery Retail Organic Baking Needs Organic Crackers/Rice Cakes Organic Rice, Grains & Dried Potato ORGANIC BEVERAGES (NON-DAIRY) Organic Beverage Trended Dollar Sales and Growth Organic Beverages Channel Distribution Organic Beverages Sub-Category Performance Organic Beverages Growth Forecast Organic Soymilk Organic Canned & Bottled Juice & Drinks Organic Tea Organic Fresh Juice Organic Coffee Substitutes / Cocoa Organic Coffee Organic Wine Organic Non-Soy Dairy Alternatives (Rice, Almond Milk) Organic Soft Drinks (Sodas, Bottled Water, Gatorade) Organic Beer Organic Frozen Juice ORGANIC SNACK FOODS Organic Snack Foods Trended Dollar Sales and Growth Organic Snack Foods Channel Distribution Organic Snack Foods Sub-Category Performance Organic Snack Foods Growth Forecast Organic Salty Snacks Organic Nutrition Bars Chocolate / Candy Bars Organic Nuts Other Organic Candy ORGANIC PACKAGED AND PREPARED FOODS Organic Packaged/Prepared Foods Trended Dollar Sales and Growth Organic Packaged/Prepared Foods Channel Distribution Organic Packaged/Prepared Foods Sub-Category Performance Organic Packaged/Prepared Foods Growth Forecast Cedarlane: In the Zone With Healthy Growth Ethnic cuisine heats up naturals market Organic Frozen Prepared Foods Organic Canned & Dry Soup & Broth Organic Baby Food Organic Tofu / Tempeh Organic Desserts (Gelatin, Pudding, Topping) Organic Food Service, Deli Organic Pasta Sauces Organic Dried Prepared Foods Organic Jams, Jellies, Nut Butter Organic Meat Alternatives / Veggie Burger Organic Canned Prepared Foods: Chili, Mex, Pasta, Asian, Stew, etc Organic Refrigerated Prepared Food (Dough, Mex, Pickles, Dips, Desserts) Nutrition Business Journal, San Diego, CA 5

6 Nutrition Business Journal, Organic Baby Formula ORGANIC CONDIMENTS & SAUCES Organic Condiments & Sauces Trended Dollar Sales and Growth Organic Condiments & Sauces Channel Distribution Organic Condiments & Sauces Sub-Category Performance Organic Condiments & Sauces Growth Forecast Organic Oils & Shortening Organic Sweeteners Organic Other Condiments Organic Jams / Preserves Organic Spices Organic Salsa (Refrigerated and Shelf Stable) Organic Salad Dressings Organic Dips Organic Ethnic Sauces Organic Ketchup ORGANIC FRUITS AND VEGETABLES Organic Fruits & Vegetables Trended Dollar Sales and Growth Organic Fruits & Vegetables Channel Distribution Organic Fruits & Vegetables Sub-Category Performance Organic Fruits & Vegetables Growth Forecast Organic Produce Growers Expand Production Organic Fresh Produce Organic Frozen Fruits and Vegetables Organic Canned Fruits & Vegetables Organic Dried Beans, Fruits and Vegetables ORGANIC MEAT, FISH & POULTRY Organic Meat, Fish & Poultry Sales in Organic Meat, Fish, & Poultry Trended Dollar Sales and Growth Organic Meat, Fish, & Poultry Channel Distribution Organic Meat, Fish, & Poultry Sub-Category Performance Organic Meat, Fish & Poultry Growth Forecast USDA Mulls Synthetics In Organic Meat The Natural And Organic Meat Marketplace Organic Poultry Organic Beef Organic Sausage/Deli Meats Organic Pork Organic Lamb Organic Fish ORGANIC NON-FOOD MARKET Organic Non-Food Categories Organic Non-Foods by Channel, ORGANIC FIBER TRENDS Organic Fiber Sub-Category Performance Organic Penetration: Fiber Organic Fiber Growth Forecast Organic Cotton Blooms ORGANIC PERSONAL CARE TRENDS Organic Personal Care Sub-Category Performance Organic Dilemma: What Rules Personal Care? Nutrition Business Journal, San Diego, CA

7 NBJ s Organic Foods Report Organic Penetration: Personal Care Products Organic Personal Care Growth Forecast ORGANIC NUTRITIONAL SUPPLEMENTS TRENDS Organic Nutritional Supplements Sub-Category Performance Organic Penetration: Nutritional Supplements Are Organic Supplements The Next Big Thing? Organic Nutritional Supplement Growth Forecast OTHER ORGANIC CATEGORY (HOUSEHOLD CLEANERS, FLOWERS, PET FOOD) TRENDS Other Organic Sub-Category Performance Organic Household Cleaners Safe Cleaners Represent a Natural Progression for Aware Consumers Organic Pet Food Organic Task Force Recommends Same Regs for Pets as for Humans Organic Flowers Green Flowers Begin To Color Market Other Organic Category Growth Forecast NBJ S ORGANIC COMPANY DIRECTORY Nutrition Business Journal, San Diego, CA 7

8 Nutrition Business Journal, TABLE OF FIGURES FIGURE 1-1 TOTAL FOODS AND ORGANIC FOODS CONSUMER SALES AND PENETRATION, FIGURE 1-2 DISTRIBUTION OF US ORGANIC FOOD SALES, SHARES & DOLLARS FIGURE 1-3 ORGANIC FOOD CATEGORY SHARE, FIGURE 1-4 NATURAL VS. ORGANIC FOODS AND ORGANIC PENETRATION BY CATEGORY IN FIGURE 2-1 USDA ORGANIC SEAL...49 FIGURE 2-2 U.S. AND INTERNATIONAL ORGANIC MILESTONES...55 FIGURE 2-3 U.S. NUTRITION INDUSTRY: $74 BILLION IN FIGURE 2-4 U.S CONSUMER ORGANIC FOOD PURCHASE IN 2004 & FIGURE 2-5 U.S CONSUMER ORGANIC FOOD USE FIGURE 2-6LARGEST INCREASES IN LOHAS PRODUCT ATTRIBUTE DRIVERS (%LOHAS CONSUMER STATING THE FOLLOWING ARE VERY IMPORTANT IN PRODUCT PURCHASE DECISIONS)...61 FIGURE 2-7: GMO KEY FACTS...80 FIGURE 3-1 U.S. NUTRITION INDUSTRY REVENUES, 2005 ($MIL, CONSUMER SALES)...82 FIGURE 3-2 U.S. NUTRITION INDUSTRY REVENUES, 2005 GROWTH...82 FIGURE 3-3 U.S. NUTRITION INDUSTRY GROWTH BY PRODUCT, ($MIL, CONSUMER SALES)...83 FIGURE 3-4 GROWTH IN NUTRITION INDUSTRY PRODUCT SALES, ALL CHANNELS, FIGURE 3-5 GROWTH IN NUTRITION INDUSTRY PRODUCT SALES, ALL CHANNELS, FIGURE 3-6 GROWTH IN NUTRITION INDUSTRY SALES BY CHANNEL, FIGURE 3-7 GROWTH IN ORGANIC FOOD SALES BY CATEGORY IN FIGURE 3-8 US CONSUMER SALES OF NATURAL AND ORGANIC FOOD SALES ($MIL), FIGURE 3-9 US CONSUMER SALES OF NATURAL AND ORGANIC FOOD SALES ($MIL), FIGURE 3-10 SPINS DATA ON NATURAL VS. ORGANIC FOODS IN 2005 AND ORGANIC CONTENT LEVELS...88 FIGURE 3-11 ANNUAL U.S. CONSUMER SALES OF NATURAL & ORGANIC FOODS (LEFT) AND ORGANIC FOODS ONLY (RIGHT), E IN $MIL...89 FIGURE 3-12 ANNUAL U.S. CONSUMER SALES OF NATURAL & ORGANIC FOODS, E ($MIL)...89 FIGURE 3-13 U.S. ORGANIC FOODS SALES GROWTH RATES (+) VS. NATURAL & ORGANIC FOODS SALES GROWTH RATES (X) VS NATURAL FOODS SALES GROWTH RATES (DIAMOND) FROM E...90 FIGURE 3-14 NATURAL FOODS VS. ORGANIC FOODS, FIGURE 3-15 NATURAL FOODS VS. ORGANIC FOODS, ($MIL, CONSUMER SALES)...90 FIGURE 3-16 NATURAL VS. ORGANIC FOODS AND ORGANIC PENETRATION BY CATEGORY IN FIGURE 3-17 THE EVOLVING PENETRATION OF ORGANIC FOODS OF NATURAL & ORGANIC FOOD SALES BY PRODUCT CATEGORY IN 1997 AND FIGURE 3-18 TOTAL FOODS AND ORGANIC FOODS CONSUMER SALES AND PENETRATION, FIGURE 3-19 PENETRATION RATE OF U.S ORGANIC FOODS AS A PERCENTAGE OF TOTAL U.S. FOOD SALES, E...92 FIGURE 3-20 ORGANIC FOODS RANKING, 2005 (40 CATEGORIES RANKED BY PENETRATION OF THE TOTAL U.S. FOOD MARKET; $MIL, CONSUMER SALES)...94 FIGURE 3-21 NBJ ORGANIC FOOD SALES, 2005 ($MIL), AND GROWTH RATE FORECASTS BY PRODUCT, FIGURE 3-22 ORGANIC FOOD CATEGORIES RANKING (8 MAJOR CATEGORIES: PROJECTED SALES CHANGE BETWEEN 2006 & 2010E; $MIL) Nutrition Business Journal, San Diego, CA

9 NBJ s Organic Foods Report 2006 FIGURE 3-23 ANNUAL U.S. CONSUMER SALES OF ORGANIC FOODS (BLACK BAR) VS. TOTAL NUTRITION INDUSTRY SALES (WHITE BAR), IN $MIL FIGURE 3-24 U.S. ORGANIC FOODS SALES GROWTH RATES (SQUARE) VS. TOTAL US NUTRITION INDUSTRY GROWTH RATES (DIAMOND) FROM FIGURE 3-25 ANNUAL U.S. CONSUMER SALES OF ORGANIC FOODS (SQUARE) VS. FUNCTIONAL FOODS (DIAMOND) SALES, IN $MIL FIGURE 3-26 U.S. NATURAL & ORGANIC FOODS (DIAMOND) VS. SUPPLEMENT (CIRCLE) SALES ANNUAL GROWTH RATES, FIGURE 3-27 ANNUAL U.S. CONSUMER SALES OF ORGANIC FOODS (SOLID BLACK BAR) VS. DIETARY SUPPLEMENT SALES, IN $MIL FIGURE 3-28 U.S. ORGANIC FOODS SALES GROWTH RATES (SQUARE) VS. SUPPLEMENT SALES GROWTH RATES (DIAMOND) FROM FIGURE 3-29 ORGANIC FOOD CATEGORY SHARE, FIGURE 3-30 U.S. ORGANIC FOODS SALES BY PRODUCT CATEGORY, ($MIL) FIGURE 3-31 DISTRIBUTION OF US ORGANIC FOOD SALES, SHARES & DOLLARS FIGURE 3-32 SPINS DATA: NATURAL & ORGANIC FOOD AND BEVERAGE SALES BY CHANNEL FIGURE UNIVERSE OF STORES FIGURE 3-34 U.S. ORGANIC FOOD SALES GROWTH RATES, MASS MARKET (CIRCLE) VS. NATURAL FOOD/SPECIALTY RETAIL (DIAMOND) IN FIGURE 3-35 ANNUAL U.S. CONSUMER SALES OF ORGANIC FOODS: NATURAL FOODS CHANNEL (BLACK) VS. MASS MARKET SALES (WHITE), IN $MIL FIGURE 3-36 ORGANIC PACKAGED/PREPARED FOODS CHANNEL DISTRIBUTION, FIGURE 3-37 UNIVERSE OF ORGANIC FOOD MANUFACTURERS, FIGURE 3-38 NBJ'S TOP NATURAL & ORGANIC FOOD MANUFACTURERS IN 2005, RANKED BY WHOLESALE NATURAL & ORGANIC FOOD SALES, SALES >$100 MILLION FIGURE 3-39 NBJ'S TOP NATURAL & ORGANIC FOOD MANUFACTURERS IN 2005, RANKED BY WHOLESALE NATURAL & ORGANIC FOOD SALES FIGURE 3-40 PROMINENT TRANSACTIONS IN THE NUTRITION INDUSTRY, : NATURAL & ORGANIC AND FUNCTIONAL FOODS FIGURE 3-41 GLOBAL ORGANIC MARKET ESTIMATE BY ORGANIC MONITOR, 2003 IN $MIL FIGURE 5-4-1TOTAL FOODS AND ORGANIC FOODS CONSUMER SALES AND PENETRATION, FIGURE 4-2 ORGANIC FOOD SALES OF TOTAL FOOD SALES, 2005 (CONSUMER SALES, $MIL) FIGURE 4-3 ORGANIC FOOD CATEGORY SHARE, US CONSUMER SALES FIGURE 4-4 ORGANIC FOOD CONSUMER SALES DOLLAR GROWTH, FIGURE ORGANIC PRODUCE AS A SUBSET OF U.S. ORGANIC FOODS INDUSTRY (US CONSUMER SALES) FIGURE 4-6 PENETRATION OF ORGANIC PRODUCTS BY PRODUCT CATEGORY IN FIGURE 4-7 PENETRATION OF ORGANIC FOODS OF TOTAL FOOD SALES BY PRODUCT CATEGORY IN FIGURE ORGANIC PENETRATION BY CATEGORY: LEADERS FIGURE ORGANIC PENETRATION BY CATEGORY: LAGGARDS FIGURE 4-10 FIGURE 4-11 NATURAL VS. ORGANIC FOODS AND ORGANIC PENETRATION BY CATEGORY IN FIGURE 4-12 ANNUAL U.S. CONSUMER SALES OF NATURAL & ORGANIC FOODS (LEFT) AND ORGANIC FOODS ONLY (RIGHT), E IN $MIL FIGURE 4-13 THE EVOLVING PENETRATION OF ORGANIC FOODS OF NATURAL & ORGANIC FOOD SALES BY PRODUCT CATEGORY IN 1997 AND FIGURE S FASTEST GROWING ORGANIC FOOD AND BEVERAGE CATEGORIES SCANNED BY SPINS (% SALES GROWTH) Nutrition Business Journal, San Diego, CA 9

10 Nutrition Business Journal, FIGURE S FASTEST GROWING ORGANIC FOOD AND BEVERAGE CATEGORIES SCANNED BY SPINS (% SALES GROWTH) FIGURE 4-16 DISTRIBUTION IN FIGURE 4-17 DISTRIBUTION OF US ORGANIC FOOD SALES BY SALES CHANNEL FIGURE 4-18: SUMMARY OF BUSINESS DRIVERS IN THE U.S. ORGANIC FOOD INDUSTRY FIGURE 4-19 ORGANIC LABELING CATEGORIES FIGURE 4-20 WHAT DOES ORGANIC MEAN? FIGURE 4-21: Q2 BRAND INTELLIGENCE FIGURE 4-22 NBJ'S TOP ORGANIC DAIRY COMPANIES, FIGURE 4-23 ORGANIC DAIRY SALES, FIGURE 4-24 ORGANIC MILK BRANDS FIGURE 4-25 NBJ'S TOP ORGANIC MILK & CREAM COMPANIES, FIGURE 4-26 NBJ'S TOP ORGANIC YOGURT COMPANIES, FIGURE 4-27 ORGANIC EGG BRANDS FIGURE 4-28 ORGANIC CHEESE BRANDS FIGURE 4-29 ORGANIC BUTTER/OTHER DAIRY BRANDS FIGURE 4-30 ORGANIC FROZEN DESSERT BRANDS FIGURE 4-31 ORGANIC CATEGORY SHARE, FIGURE 4-32 TOTAL AND ORGANIC BREADS & GRAINS FOODS CONSUMER SALES AND PENETRATION, FIGURE 4-33 NBJ'S TOP ORGANIC BREADS & GRAINS COMPANIES, FIGURE 4-34 ORGANIC BREADS & GRAINS SALES, FIGURE 4-35 ORGANIC BREAKFAST CEREAL BRANDS FIGURE 4-36 NBJ'S TOP ORGANIC BREAD (FRESH & FROZEN BAKED) COMPANIES, FIGURE 4-37 ORGANIC BREAD/BAKED GOODS BRANDS FIGURE 4-38 ORGANIC COOKIE BRANDS FIGURE 4-39 ORGANIC PASTA BRANDS FIGURE 4-40 ORGANIC BAKING NEEDS BRANDS FIGURE 4-41 ORGANIC CRACKER BRANDS FIGURE 4-42 TOTAL AND ORGANIC BEVERAGE CONSUMER SALES AND PENETRATION, FIGURE 4-43 ORGANIC BEVERAGE CONSUMER SALES AND GROWTH, FIGURE 4-44 ORGANIC BEVERAGES CHANNEL DISTRIBUTION, FIGURE 4-45 ORGANIC BEVERAGE SUB-CATEGORY PERFORMANCE, FIGURE 4-46 ORGANIC BEVERAGE SALES, FIGURE 4-47 ORGANIC BEVERAGES GROWTH FORECAST, FIGURE 4-48 NBJ'S TOP ORGANIC SOYMILK COMPANIES, FIGURE 4-49 ORGANIC NON-DAIRY BRANDS FIGURE 4-50 ORGANIC SHELF STABLE/FUNCTIONAL JUICE BRANDS FIGURE 4-51 NBJ'S TOP ORGANIC TEA COMPANIES, FIGURE 4-52 ORGANIC TEA BRANDS FIGURE 4-53 ORGANIC FRESH JUICE BRANDS FIGURE 4-54 ORGANIC COCOA BRANDS FIGURE 4-55 ORGANIC COFFEE BRANDS FIGURE 4-56 ORGANIC WINE BRANDS FIGURE 4-57 ORGANIC RICE AND NUT MILK BRANDS FIGURE 4-58 ORGANIC SODA/SHELF STABLE DRINKS BRANDS FIGURE 4-59 ORGANIC BEER BRANDS FIGURE 4-60 ORGANIC FOOD CATEGORY SHARE, FIGURE 4-61 NBJ'S TOP ORGANIC SNACK FOOD COMPANIES, FIGURE 4-62 ORGANIC SNACK FOOD SALES, Nutrition Business Journal, San Diego, CA

11 NBJ s Organic Foods Report 2006 FIGURE 4-63 ORGANIC & CONVENTIONAL CONFECTIONERY SALES 2005 (52-WEEK PERIOD ENDING JULY 7, 2005) FIGURE 4-64 ORGANIC SNACK BRANDS FIGURE 4-65 ORGANIC NUTRITION BAR BRANDS FIGURE 4-66 ORGANIC CHOCOLATE BRANDS FIGURE 4-67 ORGANIC NUTS, SEEDS, FRUITS, & TRAIL MIX BRANDS FIGURE 4-68 ORGANIC CANDY & GUM BRANDS FIGURE 4-69 ORGANIC FOOD CATEGORY SHARE, FIGURE 4-70 TOTAL AND ORGANIC PACKAGED/PREPARED CONSUMER SALES AND PENETRATION, FIGURE 4-71 TOTAL AND ORGANIC PACKAGED/PREPARED CONSUMER SALES AND GROWTH, FIGURE 4-72 ORGANIC PACKAGED/PREPARED FOODS CHANNEL DISTRIBUTION, FIGURE 4-73 NBJ'S TOP ORGANIC PACKAGED/PREPARED FOOD COMPANIES, FIGURE 4-74 ORGANIC PACKAGED/PREPARED FOODS SUB-CATEGORY PERFORMANCE, FIGURE 4-75 ORGANIC PACKAGED / PREPARED FOOD SALES, FIGURE 4-76 ORGANIC PACKAGED/ PREPARED FOODS GROWTH FORECAST, FIGURE 4-77 NBJ'S TOP ORGANIC FROZEN PREPARED MEAL COMPANIES, FIGURE 4-78 ORGANIC FROZEN FOODS BRANDS FIGURE 4-79 ORGANIC SOUP BRANDS FIGURE 4-80 ORGANIC BABY FOOD BRANDS FIGURE 4-81 ORGANIC TOFU/TEMPEH FOOD BRANDS FIGURE 4-82 ORGANIC DESSERT BRANDS FIGURE 4-83 ORGANIC DRIED PREPARED FOOD BRANDS FIGURE 4-84 ORGANIC JAMS /PRESERVES FIGURE 4-85 ORGANIC NUT BUTTER BRANDS FIGURE 4-86 ORGANIC HONEY BRANDS FIGURE 4-87 ORGANIC CANNED PREPARED FOOD BRANDS FIGURE 4-88 NBJ'S TOP ORGANIC SAUCE/CONDIMENT COMPANIES, FIGURE 4-89 ORGANIC CONDIMENTS & SAUCES SALES, FIGURE 4-90 ORGANIC SWEETENER BRANDS FIGURE 4-91 ORGANIC SEASONING/SPICE BRANDS FIGURE 4-92 ORGANIC SALSA BRANDS FIGURE 4-93 ORGANIC DRESSINGS BRANDS FIGURE 4-94 ORGANIC SPREAD BRANDS FIGURE 4-95 ORGANIC SAUCES, SALSAS & DIPS BRANDS FIGURE 4-96 ORGANIC SAUCE BRANDS FIGURE 4-97 ORGANIC APPLE SAUCE BRANDS FIGURE 4-98 ORGANIC KETCHUP BRANDS FIGURE 4-99 NBJ'S TOP ORGANIC FRUIT & VEGETABLE COMPANIES, FIGURE ORGANIC FRUIT & VEGETABLE SALES, FIGURE SELECTED ORGANIC FRESH PRODUCE BRANDS FIGURE ORGANIC FROZEN FRUIT & VEGETABLES BRANDS FIGURE ORGANIC CANNED/SHELF-STABLE VEGETABLE BRANDS FIGURE ORGANIC DRIED FRUIT BRANDS FIGURE ORGANIC FOOD CATEGORY SHARE, FIGURE TOTAL AND ORGANIC MEAT, FISH, & POULTRY CONSUMER SALES AND PENETRATION, FIGURE ORGANIC MEAT, FISH, & POULTRY CONSUMER SALES AND GROWTH, FIGURE ORGANIC MEAT, POULTRY, & FISH CHANNEL DISTRIBUTION, FIGURE NBJ'S TOP ORGANIC MEAT, FISH & POULTRY COMPANIES, Nutrition Business Journal, San Diego, CA 11

12 Nutrition Business Journal, FIGURE ORGANIC MEAT, FISH & POULTRY SUB-CATEGORY PERFORMANCE, FIGURE ORGANIC MEAT, FISH & POULTRY SALES, FIGURE ORGANIC MEAT, FISH & POULTRY GROWTH FORECAST, FIGURE ORGANIC POULTRY BRANDS FIGURE ORGANIC BEEF BRANDS FIGURE ORGANIC PORK BRANDS FIGURE ORGANIC FIBER CATEGORY SHARE, FIGURE OTHER ORGANIC SUB-CATEGORY PERFORMANCE, FIGURE TOTAL AND ORGANIC HOUSEHOLD CLEANERS CONSUMER SALES AND PENETRATION, FIGURE PENETRATION OF ORGANIC HOUSEHOLD PRODUCTS /CLEANERS OF TOTAL HOUSEHOLD PRODUCTS /CLEANERS IN FIGURE TOTAL AND ORGANIC PET FOOD CONSUMER SALES AND PENETRATION, FIGURE PENETRATION OF ORGANIC PET FOOD OF PET FOOD IN FIGURE TOTAL AND ORGANIC FLOWERS CONSUMER SALES AND PENETRATION, FIGURE PENETRATION OF ORGANIC FLOWERS OF TOTAL FLOWER SALES IN FIGURE OTHER ORGANIC CATEGORY GROWTH FORECAST, FIGURE OTHER ORGANIC FORECASTED AVERAGE ANNUAL SALES DOLLAR GROWTH, Nutrition Business Journal, San Diego, CA