Whole Foods: Can We Sustain Trickle Down Organics
Whole Foods LondonThe Brits have never been known for their culinary instincts, but Whole Foods is putting this to the test. The mega retailer opened its doors last week to lots of eager consumers and a flood of press. Everyone has a point of view of Whole Foods’ impact on the ethical consumer, true level of sustainability and “Whole Paycheck” pricing. The big question is how Whole Foods will fare in a country where the standard dietary guidelines of meat and two veg translate to potatoes with potatoes on the side.
In March, I wrote Whole Foods would usher in “trickle-down organics”. By emphasizing the luxury in eco luxury, Whole Foods would only encourage growth in the growing organics sections of Marks and Spenser, Tesco and Sainsbury. Within public dialog, we are seeing this. However, it’s not necessarily being seen as an elevation of non-ethical supermarkets. As one reporter from the Times pointed out, it’s more about the downfall of Whole Foods and other social entrepreneurs:
But however socially responsible these entrepreneurs remain as individuals, we can’t pretend that, once a critical mass has been reached, and they go public, that their companies are that different from say, Wal-Mart or Tesco (especially now that Sir Terry (Leahy) is so competitive, I mean so green, that he is carbon-labelling and has copyrighted the Tesco Wholefoods brand).
This could all be semantics you say, but we think it’s indicative of a larger issue amongst at least Londoners. At the moment, the ethical consumption world looks quite rosy. The Daily Mail reported last week, spending is on the rise:
The report, by analysts Mintel, shows an increasing number of shoppers are prepared to pay extra. The proportion agreeing with the statement "it's worth paying more for organic food"; has risen from 24.3 per cent in 2002 to 33.4 per cent this year.
Spending on organic food has soared from £849 million in 2004 to £1.23 billion last year, and is forecast to hit £1.7 billion this year.
The proportion of people buying Fairtrade products "whenever possible"; has increased from 26 per cent to 34.7 per cent. The study found attitudes to recycling were changing. In 2002, 64.5 per cent felt it was their "duty" to recycle rubbish such as packaging, compared with 75.6 per cent.
However, Whole Foods’ model in the store alone is daunting as the Observer reports:
It is, says food critic AA Gill, 'a very American approach to food'. I know this, because I encounter him and his girlfriend, Nicola Formby, stalking around the top floor. 'I'm slightly daunted by the sheer volume of products,' Gill says. 'That's very American, though. Americans like volume. I find it slightly off-putting. Who's going to eat all that? And what happens to the waste? There must be piles at the end of the day. Kensington is going to have the best-fed tramps in London.'
So while it might seem like semantics, the sheer scale of an organic world seems overwhelming. Added to that is recent media speculation of “good” labels like the fair trade and organic. In May Channel 4 produced a report on the Fair Trade’s true merits, while the British Soil Association recently launched a campaign to better understand the ecological impact of freight shipping on the virtues of buying organic.
This doesn’t mean either label is bad or either label will be rejected in the near future. It does mean that at the same time the mainstream British public is gaining greater awareness (these labels have been popular in the UK for over 10 years), it is also learning these labels are complex and difficult to scale at mass.
The result? As demand is soon to exceed supply, we might see the growing green bubble burst. Best case scenario is a renewed focus on government to begin developing better incentives, standards and regulation to help scale these operations. Worst case scenario is an exacerbation of the status quo: a hyper polarized world where true organic products are sold at an even greater premium followed by hybrids which border on “greenwash” and arguably bad products for the poor.
Just for the record, this isn’t necessarily a bad thing. What goes up must go down. Hopefully we will learn moderation in time and arrive at a more considered and culturally natural strategy for addressing global warming.
Tags: Big Business, ethical consumer, fair+trade, Food, organics, Social Entrepreneurship, sustainability, whole foods
