Consumers are abandoning organic and some companies too, at least in part. To reach a wider clientele, Prana, which specializes in granolas and healthy snacks, has decided to develop healthy, non-certified organic nut mixes – unlike its usual offer – intended for the market of low-cost retailers such as Maxi or Super C.
“We want to have an impact. To have an impact, it takes volume, it takes visibility, you have to be everywhere, “says Marie-Josée Richer, co-founder of Prana, during an interview with The Press. She then adds that her business had to “adjust” to remain accessible.
Consumers have turned to the Maxis, the Super Cs of this world. He is trying to save money. So consumer behavior has really changed. The more niche, organic products…. It has decreased.
Marie-Josée Richer, co-founder of Prana
This observation was also made recently during a webinar attended by representatives of NielsenIQ: there is a drop in sales of organic products in grocery stores. Prana felt it, the Union of Organic Milk Producers of Quebec too.
PHOTO HUGO-SÉBASTIEN AUBERT, THE PRESS
In addition to its organic offer, Prana now offers conventional nut mixes.
If the business led by Mr.me Richer has no intention of giving up on organic, after many internal discussions she has decided not to cater only to “consumers who can afford to buy organic products”. It has therefore developed conventional nut mixtures (notably with chocolate, beans and edamame), which are therefore less expensive.
PHOTO IVANOH DEMERS, LA PRESSE ARCHIVES
Marie-Josée Richer and Alon Farber, founders of Prana, in 2015
We subsidized organic with reduced margins because we believed in it and still believe in it. With the cost of raw materials and the cost of transport, it has become impossible, unfortunately, with our margins to continue to subsidize it.
Marie-Josée Richer, co-founder of Prana
“It’s all a move for Prana”, insists Mme Rich. But the idea, she illustrates, is not just to be “in the little $9.99 natural food store”. This is why the company, known in particular for its cereals and biscuits, has decided to expand its range with conventional, non-certified organic products.
“It was designed for discount stores because of the format, the placement in grocery stores. Loblaw was the first [entreprise] to jump at the chance. »
Discussions are currently taking place between the company and the retailer, confirmed Johanne Héroux, Senior Director, Corporate Affairs and Communications at Loblaw (Maxi, Provigo).
Also in the more niche granola niche, Geneviève Gagnon, president of La Fourmi bionique, also notes that there is “a certain price sensitivity” on the part of customers. “There are price changes on the shelves,” she recalls. With inflation, Mme Gagnon confirms his choice not to have opted for a “100% organic strategy”. “We use organic and conventional ingredients. In the case of almonds, for example, as prices are volatile, we have always remained conventional. »
On the side of the Union of Organic Milk Producers of Quebec (SPLBQ), President Bryan Denis recognizes “that there is a certain slowdown”. For the current year, he forecasts a drop in sales of 3%. The competition with other beverages (oat, almond or soy) is particularly fierce. Despite everything, Mr. Denis has no intention of abandoning the type of production in which he has worked for 22 years.
It doesn’t go any better in conventional milk. I wouldn’t make more money.
Bryan Denis, President of the Union of Organic Milk Producers of Quebec (SPLBQ)
No drop at Avril
Moreover, in these inflationary times when consumers are looking to save money, Avril supermarkets, which sell organic and niche products, are not experiencing any slowdown in their sales, assures co-owner Sylvie Senay. “On the contrary, our clientele continues to grow. We are continuing our development plan with a 12e branch in Repentigny in the fall of 2023.”