THE ORGANIC DIET organics industry , Erin Lash , senior equity analyst at Morningstar , notes that businesses who leap into the organics industry without a plan may find themselves in trouble later on . To keep the industry growing , retailers and producers can ’ t just launch a line of organic products onto the market . They must also think critically and be smart about how those products are made and marketed .
“ By looking at the price premium afforded to organic products , it would suggest that it could be a brand intangible asset — consumers have paid a significant premium for organics over a significant period of time ,” says Lash . “ But because of all that could potentially eat away at that price premium that ’ s afforded to organics , we don ’ t think that this brand intangible asset is static — that means that it requires continued investment behind new products and marketing innovation to ensure that those products continue to resonate with consumers .”
How can producers maintain their edge and stay ahead of the market ? That depends on the way that they are getting into the market in the
first place . “ One thing we have seen them do more
Campbells organic product range
aggressively is pursue acquisitions ,” says Lash . “ That can be a successful strategy — assuming the acquired brand is fostered and developed , while also maintaining its unique characteristics .” As major brands like General Mills and Campbell Soup Company get into the acquisition game , Lash notes that preserving the integrity of the acquired brand is absolutely vital — without that , even a once robust brand can drop off as consumers abandon their loyalty .
“ When the General Mills-Annie ’ s Homegrown deal was announced last fall , General Mills management was quick to point out they would
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