Green brands need to focus on distribution to succeed

Distribution is key to widening the appeal of green brands, according to research from Organic Monitor. Green brands that have achieved the most success are those that have expanded their distribution into mainstream channels.

Despite high consumer interest, most sustainable products currently have low market share. Organic foods account for just 4% of total food sales in North America, with ethical textiles and green household cleaning products accounting for less than 2% of sales in Europe and North America.

A tendency to focus on specialist outlets is what is relegating most green brands to relative obscurity, Organic Monitor says. For instance, around 40% of organic food sales in Europe are made through organic food shops and health food retailers.

Green brands need to think outside of specialist retail channels in order to broaden their appeal, taking their lead from brands like Green & Black’s in reaching out to mainstream consumers.

Success in large retailers has been key to Green & Black’s rise to become the world’s leading ethical chocolate brand. In the UK, the company recently launched a US$3 million television campaign to promote its organic and certified fair trade chocolates. Its sales have increased more than tenfold from US$7 million in 2002.

Almost all major retailers in Europe market organic foods under their own private labels, cannibalising branded product sales. This makes channel selection even more challenging for green brands.

Pioneering green brands and companies will be participating at the forthcoming Sustainable Foods Summit in Amsterdam on 4 and 5 June, including Green & Black’s, Änglamark (Coop Denmark) and PC Organics (Loblaw).

For more information about the summit, visit www.sustainablefoodssummit.com