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Kraft, United Natural & Hain Celestial: Organic gains

"The organic food industry is surprisingly resilient in an economic downturn," explains Benjamin Shepard, contributing editor with Personal Finance.

He adds, "Mainstream retailers and your corner grocer have been embracing the trend, devoting an ever-growing amount of shelf space to organic foods." Here's a trio of favorites.

"What was essentially a nascent industry in 1997 with $3.6 billion in sales has exploded to a behemoth with almost $14 billion in sales in 2006, according to the Organic Trade Association.

"And barring a major economic disaster worse than we've seen thus far, the industry looks set to continue double-digit growth well into the next decade.

"That's not to say there aren't potential troubles ahead as commodity prices continue to soar. Organic farming techniques tend to be more cost intensive--ironically enough--and transport costs continue to swell.

"But so far the industry has been able to pass the bulk of the higher costs onto consumers, and although sales volumes have dropped off and profits are down, those consumers are as dedicated as ever.

Continue reading Kraft, United Natural & Hain Celestial: Organic gains

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Last updated: May 27, 2012: 09:14 AM

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