&

Your Experts

• Ryan Smith: History of Organic Produce

• Dionne Roberson: Organic Agriculture

• Leah Brosius: Marketing and Analysis

• Rachael Faulkner: Accounting and Finance

• Joel Brust: Competitors

History of Organic Foods

• 1963: First Popular Book on Organic Foods Published

• 1970’s: A Large Social Movement

• 1990’s: Government Interaction

• Today: Government Regulations

What is Organic Agriculture?

• Requires the Use of Practices that Maintain the Balance of Nature.

• Promotes and Enhances Biodiversity Through an Ecological Management System.

• Prohibits the Use of Unauthorized Chemicals and Other Elements.

Myths of Going Organic

• Organic Foods Taste Bad.

• Organic Means Vegetarian.

• Organic is Unregulated.

Percent of Certifiers Per RegionMid West Leads in Certifiers

41%

24%

16%

19%

Mid West

West

South

East

Source: Organic Farming Research Foundation

Types of Certification

• “100% Organic”

• “Organic”

• “Made with Organic Ingredients”

Organic Agriculture

• Environmental Impacts

• Health Benefits

• Childhood Learning

Environmental Impacts

• Soil, Air & Water Pollution

• Biodiversity Erosion

• Energy Loss

• Water & Fossil Fuel Consumption

Health Benefits

Improve Intake of:

• Vitamins

• Minerals

• Other Nutrients

Childhood Awareness

• Obesity Rates Rise

• Formative Years Important

• Health & Environmental Stressed

Consumers Stress Importance of "Clean Foods"

Year 2001

70.0%

62.9%

52.5%

44.6%

0% 25% 50% 75% 100%

M eats Without Antibiotics & Hormones

Foods Grown Without Pesticides

Non-B leached Grains

Foods that Haven't Been Irradiated

Source: The Marketing Institute

Marketing Organics

• Creating an Image

• Implementing Consistently

• Educating the Consumers

U.S. Market for Organic Foods

Produce42%

Other Foods32%

Groceries15%

Dairy11%

Source: http://www.organictrading.com/

Marketing to Kids

• Starting an Organic Garden

• Sampling Out New Choices

• Providing a Creative Mix

Marketing to Parents

• Saves Time

• Provides Peace of Mind

• Insures Healthy Well-Being

The Number Issues

• Why A Higher Price?

• Savings in Organic

• Balancing the Costs

• How Costs Can be Reduced

Why A Higher Price?

• ‘Organic’ Requirements

• No Pesticides = More Labor

• Government Favoritism

• Impossible Competition

Savings in Organic

• Seasonal Advantages

• Locally Grown Foods

• Oversupply Benefits

Balancing the Costs

• Receiving Grants

• Obtaining Government Aid

• Increasing Sales

School Pays Less With Organic PieOrganic Pie

Grants5%

Fed Gov't8%

Student53%

Adult6%

School28%

Current Pie

Adult4%

School35%

Fed. Gov't8%

Student53%

Source: Issaquah School District Source: Issaquah School District

Introducing Our Competitors

• Organic Valley

• Original Organic Company

• The Organic Company

Greater Selection and Higher Quality

• Over 250 Varieties

• Apples to Zucchinis

• Out of Season Products

• Rigorous Standards

• “Bad Apple” Program

The Local Economy and Low Prices

• 518 farms & 34,000 acres

• Exclusive Contracts

• West Coast Operation

• Savings for You

Dominating the Local Market

73%

14%

8%5%

Natural Selection Foods

Organic Valley

Original Organic Co.

The Organic Company

Source: http://www.nsfoods.com/about/washington/local.html

We’ve Done it Before

• 3 Years of Success in Berkeley

• Recent Program in Olympia

• We Can Do it Again

The Clear Choice for Organic • No One Beats Our Selection

• No One Beats Our Quality

• No One Beats Our Local Involvement

• No One Beats Our Prices

• No One Beats Our Experience

Organic Sales Push Ahead

$3,000,000

$4,500,000

$5,400,000

$6,500,000

$7,800,000

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

1996 1997 1998 1999 2000

What Does Organic Do For You?

• Increases Health

• Increases Revenue

• Increases Peace of Mind

• Increases Diversity