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<pre>UK: Organic sales predicted to quadruple
12 Sep 2000

Consumer research carried out by Tesco, the UK's leading food retailer, has
led to predictions that sales of organic food will quadruple by 2005,
soaring to a value of £1bn and prompting a renewed drive to cater for this
once elitist market sector.

According to Tesco, about a quarter of its customers now buy some organic
food every week, largely due to concerns over child health. Their enthusiasm
for natural products is being lapped up by the supermarket retailer, which
has repackaged its now augmented organic line and promises to ensure that
every store carries an organic range. The company is even sponsoring a
Professor of Organic Ecology at Newcastle University.

With close to 70% of organic produce sold on the UK market originating
abroad, Tesco is also providing funds for the home-grown organic movement,
completing a deal with the Prince of Wales' company Duchy Originals to stock
more organic bread and biscuits. It is also spending £5m on a drive to lower
the price of organic food, which costs more to produce.

Frozen food retailer Iceland has been selling organic produce since last
June, investing £8m in the popular range. It has pledged that by next month
items produced without chemicals will cost no more than their non-organic
equivalents.

Asda currently provides the best deals on organic produce, some items
costing 10-15% less than competitors. Sainsbury meanwhile insists that
consumers will just have to pay more if they wish to chose from its organic
range, presently the largest within the supermarket retailers. It denies
this is due to profiteering, however.

Hot on the heels of food scares and concerns over GM foods, the organic
sector is growing at 40% pa, and with the continued investment of food
retailers this once specialist market is sure to keep growing.
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