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Costco Is Organic Leader

June 10.2015

from Egg-Cite website

Jun 7, 2015
According to a June 2nd article in the Seattle Times by Angel Gonzalez, Costco has surpassed Whole Foods Market as the leader in sales of organic products.  Richard Galanti, CFO of the company noted that organic products generated $4 billion in the past fiscal year a 30 percent advance over the previous year.  Galanti noted that Costco organic business has doubled in two years. He commented “it’s still small, relative to total sales but growing faster and there is certainly more supply out there.”  Costco is obviously attracting a younger and more affluent clientele than competing club stores.

The organic sales value should be viewed against the total sales volume of $114 billion annually  generated by Costco. The Organic Trade Association estimates total organic-food sales at $36 billion which means that Costco has more than a 10 percent share the market.

Gonzalez considers that the entry of big box stores into organic will increase pressure on production, leading to increases in price.

Galanti noted that Costco was “pretty good at getting out there and working with suppliers both here and around the world to commit more too organic whether it’s raising eggs, ground beef or produce.”

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