How retailers are driving organic produce and sustainability

How retailers are driving organic produce and sustainability

Matt Fowler of Natural Grocers discussed the challenges and opportunities in the organic produce industry in a GOPEX 2025 panel moderated by Kellee Harris of the Giumarra Cos.
Matt Fowler of Natural Grocers discussed the challenges and opportunities in the organic produce industry in a GOPEX 2025 panel moderated by Kellee Harris of the Giumarra Cos.
(Photo: Wayne Hardy)
by Jill Dutton, Jan 16, 2025

AVENTURA, Fla. — Retailers are increasingly setting the bar in organic, regenerative and sustainable agriculture. In addition to driving organic produce sales, retailers such as Sprouts Farmers Market, Natural Grocers and Mom's Organic Market are also championing environmental and trade justice initiatives.

In a panel discussion at GOPEX 2025, moderated by Kellee Harris from the Giumarra Cos., representatives from these retailers discussed significant strides in organic practices.

Sustainable packaging was highlighted as a priority, with a preference for compostable options. Consumer education and loyalty were noted as crucial, with initiatives like nutritional coaching and cooking classes. Corporate sustainability goals and worker welfare were also discussed, with a focus on transparency and collaboration between suppliers and retailers.

Key challenges in sourcing organic produce

When it comes to challenges in sourcing organic produce, Matt Fowler, Natural Grocers category manager for produce, said the industry changes from week to week but highlighted the need to maintain full shelves, wide availability and low prices for customers.

“We're always dealing with a new challenge that needs a solution. At Natural Grocers, the challenge is making sure our shelves always stay full, we always have wide availability and always make sure that we can offer our customers the lowest price possible. Those are definitely the key challenges that we're facing right now,” Fowler said.

Allan O'Donoghue, Sprouts category manager for local produce, said challenges include the difficulty of maintaining organic supply and the need for innovation and adaptation.

Chris Miller, produce director and meat and seafood coordinator for Mom's Organic Market, emphasized the importance of relationships and honest communication to navigate tough transition seasons.

Show from left, Allan O'Donoghue of Sprouts Farmers Market and Chris Miller of Mom's Organic Market shared insights during a retail panel discussion at GOPEX 2025.
Show from left, Allan O'Donoghue of Sprouts Farmers Market and Chris Miller of Mom's Organic Market shared insights during a retail panel discussion at GOPEX 2025. (Photos: Wayne Hardy)

Consumer perceptions and preferences

Harris asked the panel about the conscious consumer and the importance of organic produce to them.

Miller said consumers often buy based on what looks best and emphasized the need for quality and value proposition.

“We can talk in circles about how educated our consumer bases are, but in my opinion, it honestly comes back to the quality of what's on the shelf," he said. "We often talk about education, education, education, but what it comes down to is providing something that people want to spend their dollars on."

Fowler said consumers are well informed and care about the environment and their families, making organic produce important to their values.

O'Donoghue added that millennials and Generation Z view organic as a lifestyle choice and not just a trend.

Sustainable packaging initiatives

Kelly asked about the importance of sustainable packaging to the three companies.

Fowler emphasized the need for compostable packaging and the role of transparency and collaboration with suppliers.

“Natural Grocers is all about sustainability, and having sustainable packaging is a big deal for us," he said. "We're hearing from our customers that they want to see more sustainable packaging options in our store. It's what we want to see in our stores, and we have to get more people behind it to really push the entire industry to go the way that we want it to go.

“And we're starting to see it. This past year, I've talked to a few growers that are already exploring sustainable packaging, and it's great to see at Natural Grocers," Fowler added. "We would prefer to see compostable packaging. Recyclable is great, but not everybody has direct access to recycling programs. In Denver, it's very easy for anybody to recycle, but we're finding that it's not the same for people in other states that do not have direct access to recycling programs. So, compostable is definitely the way to go, and we will continue to keep being very vocal about how we want to do the industry for sustainable packaging."

Miller discusses the preference for bulk items and the challenges of implementing sustainable packaging without compromising quality.

For Sprouts, O'Donoghue mentioned ongoing research and testing to find the best sustainable packaging solutions.

Supporting a healthier planet

Harris segued into each store's responsibility in sustainability. “We talked about sustainable packaging, but what about overall sustainability beyond the produce department? What is your store doing to try and support a healthier planet? Do you have corporate sustainability goals that you can share? And do you share those with your customers?”

“Our company's purpose is to protect and restore the environment," Miller said. "We have recycling and composting centers in all of our stores. Over the course of the year, we run different programs, whether it's collecting denim or holiday Christmas lights. I think for us, that is the brand: We are an environmental company that happens to sell groceries — so our messaging is right there in the actions.”

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