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January 17, 2007

4:19 pm | 1 recommendation | 15 comments

Is Wal-Mart Really Organic?

| posted by Lynne d Johnson

The Cornucopia Institute, a farm policy research group based in Wisconsin has been taking a lot of shots at Wal-Mart concerning the retailer's organic food labeling practices. For one, the organization charges that Wal-Mart's signage misrepresents nonorganic food as organic. There are photos on Cornucopia's web site backing up the organization's allegations. According to The Wall Street Journal, "The organic-food industry has mushroomed into a juggernaut with nearly $14 billion in sales in 2005 and annual growth of roughly 20%," and, "food empires like Dean Foods Co. and Danone SA now churn out organic products, and Wal-Mart Stores Inc. has become a major seller of organic food."

About four months ago Cornucopia informed Wal-Mart that its misrepresentation could be interpreted as consumer fraud, and later followed up by filing a formal legal complaint with the USDA after finding that many of the reported deceptive signs were still in place in Wal-Mart stores. Cornucopia’s complaints ask the USDA and Wisconsin regulators to fully investigate the allegations of organic food misrepresentation. The farm policy organization has shared their evidence, including photographs and notes, from multiple stores in Wisconsin and in many other states, with the agency’s investigators. Fines of up to $10,000 per violation for proven incidents of organic food misrepresentation are provided for in federal organic regulations.

Wal-Mart corporate spokeswoman Karen Burke told the La Crosse Tribunel that any mislabeling was "inadvertent." “Although Wal-Mart has more than 2,000 locations that may offer up to 200 organic selections in addition to thousands of non-organic offerings, we believe it to be an isolated incident should a green organic identifying tag be inadvertently placed by or accidentally shift in front of the wrong item,” she said. “The USDA certification label is featured on the packaging of the organic selections we offer for further customer information and verification.”

This past September, The Cornucopia Institute also accused Wal-Mart of cheapening the value of the organic label by sourcing products from industrial-scale factory-farms and Third World countries, such as China. The Institute released a white paper, Wal-Mart Rolls Out Organic Products - Market Expansion or Market Delusion?, that concluded that Wal-Mart was poised to drive down the price of organic food in the marketplace by inventing a "new" organic -- food from corporate agribusiness, factory-farms, and cheap imports of questionable quality.

Is Cornucopia just picking on the big guy, or are Wal-Mart's organic retail practices really questionable?

Tags: Management, wal-mart
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Recent Comments | 15 Total

January 17, 2007 at 4:55pm

maryanne
walmart and organic --like oil and vinegar, dont mix! oxymoronic. Walmart has its place...but not in the true organic world...what we need is a hybrid word that more accurately describes the product...any suggestions out there? 'natural' is now meaningless and strictly a marketing term...my hope is that we can keep organic from the same fate.
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January 18, 2007 at 12:28am

Peter
I think that Wallmart is just trying to make money like its always been doing...what gets me is that they are trying to maybe get "hippies" into buy ing at Wallmart so they could increase their revenue. What i find funny is that in the past ther term organic was used for things that had carbon in them...soooo everything was considered organic!
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January 18, 2007 at 1:15pm

Mark
The Cornucopia Institute accuses Wal Mart of being " . . . poised to drive down the price of organic food in the marketplace . . ." Sounds like the right idea to me- the methods may not make the institute smile but wouldn't it be great if the scale of organics could grow such that everyone could afford to eat natural? Could "The Institute" perhaps try instead to help WalMart and other resellers improve their supply chain so that it benefits the largest number of consumers possible with healthy food products?
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January 19, 2007 at 9:17am

Puspakant R. Patel
Walmart does not know the difference between Organic and Natural. Walmart needs to hire regulatory person who could help to identify that product meets the requirements of FDA/USDA guidelines for calling product as natural or as organic. I think Walmart is just want to make money by making a false marketing claims that are not supported government regulations. I strongly decline to buy products from Walmart that has false product claims. I will not trust the product made by outside of the country. Product made in China is a question for claiming a natural, since we all knows that the product does not qualify for FDA natural guidelines. To me, Walmart MUST STOP MAKING A FALSE CALIM AND IF THEY WANT TO MAKE ORGANIC PRODUCT CLAIMS THEN THEY MUST BUY FROM US MANUFACTURER.
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January 19, 2007 at 11:22am

ernie
Organic foods? Fertilized with raw sewerage from hog, dairy and chicken farms? That makes it organic. As much as eating foods fertilized with bone and blood meal makes vegetarians feel good. You can pay $15 for a steak dinner in a restaurant or $50 in a fancy restaurant. But you can't eat the window dressing that just cost you $35. After all the fresh food problems last summer, I'll take the food not carrying e-coli from raw fertilizer.
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January 19, 2007 at 1:35pm

jimbo
The problem is that most people, including it seems the author, do not realize that "organic" is an English word. It not only describes a particular USDA classification, but it can be used to describe any living thing, it's remnants or any number of processes. Another way it can be used is in marketing. Do you think Apple Computers actually have apples in them or are in any way related to the fruit? Of course not. You are expected to understand that the term "Apple" is used in this case as a marketing concept. The Wal-Mart Organic signage made no claim that the items labeled with that mark are USDA certified Organic, simply that they are members in a particular group of products. Take another example: 8.5x11 paper. Paper is in no way an electronic device, yet it is sold in the Electronics Department. Should the Electronics Advocacy Group (r) come out and press charges against Wal-Mart for having signs that read "Wal-Mart Electronics" on the same shelf as the paper? This isn't an issue over whether or not Wal-Mart should change their signage as much as it is about the stupidity of the average consumer and the willingness of your average lawyer to try to make a buck with it.
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January 22, 2007 at 8:53am

Kathy
I hate Walmart's grocery stores anyway so I wouldn't even try to get organic produce there. They keep opening up new Walmarts in my area. If you go when it's a grand opening, they have everything, products you can never find anywhere else (like Pepperidge Farm frozen turnovers in blueberry, red raspberry and peach just as an example). But go back a month later and see if you can find ANY item you're looking for. I couldn't even find CABBAGE in their produce department last month and I have given up on them. Every time I went there, I would have to go somewhere else to get the rest of the items on my list.
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January 22, 2007 at 11:20am

Nora A. Hart
I think they are just jealous of "The Walmart's Stores". Everytime I go into Walmart and look around at all the "Good Bargains". I think gee My Mom would love this store.
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January 22, 2007 at 1:19pm

Rachel from FL
I think Wal-Mart sells what they want, when they want and to who ever will be the sucker to buy it from them. Sam Walton would rollover in his grave if he knew of half of what goes on , also all the proceedes they donate to gays and lesbians is just WRONG and IMORAL and Sam Walton was not about that one bit ! I buy my groceries at grocery stores and produce from markets that are locally grown , why give the big conglomerant companies more money ...I'm out for the little guy.
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January 23, 2007 at 7:38am

Kathie
Walmart's employees could care less if they mislabel or mix different kinds of foods labeled differently. For pete's sake, they only make $6 to $7 an hour; why would they care. These truely organic foods need to be kept and stored separately from regular produce in order to comply with regulations. It's not like organic milk which is prelabeled.
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January 24, 2007 at 6:14am

Teresa Mitchem
I shop regularly at local organic food markets and big specialty chains like Wild Oats. And now I shop regularly at Wal-Mart for selected organic products that I trust because you can't beat Wal-Mart's prices--Muir Glen organic soups for $1.98 vs. $2.99 or even $3.49 at organic stores, and Amy's organic soups as well; Swanson's organic chicken, vegetable and beef broths for only $2.57 per 32 oz carton; Earthbound salads for $1.99 per package vs. $2.99 elsewhere. If you know your organic brands and Wal-Mart carries them, then you can get better prices for sure and that's a real boon to those of us to want to eat organic on a budget. Thanks Wal-Mart!
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January 26, 2007 at 12:05am

Leslie Eve
Let me start. I do not like Walmart. I feel they under pay their workers and buy products from counties that still have slave labor (like China). They are China's largest consumer. China is one of the top counties that are distroying our enviroment. If you shop at Walmart at all you must not really care about the enviroment or your health anyway. Let's be realistic. Walmart is here to make as much money as they can, that is fine. This is a corperations job. They are great at it. They donate very little money to any cause. This includes enviromental. If you choose to shop at Walmart, that is your moral choice. I will not see your there
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January 26, 2007 at 11:43am

Art
Walmart will do anything to kill their competitors. Find ways to cheat and offer cheap stuff and does not care one bit if they lie in their advertising. They are my absolute last spot for shopping since they are in my opinion one of the most deplorable examples of big business at best. Kudos to any city that keeps walmart out of their area Art
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February 5, 2007 at 10:54am

Terra
I love how I can now get organic food and clothes at a Walmart price. I love it!
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February 16, 2007 at 6:24pm

Tracie Marshburn
O.K. I understand all the negative comments about WalMart. Really. I do. But, as someone who works hard and would love for her family to eat organic food, but just can't afford it at the health food store here, I appreciate that I can now find a few things that are legit in the organic foods from WalMart. And no I am not a hippie, as someone mentioned before. I am a normal, everyday working mom who wants the best for her family - just like some of those who make more money. The problem is, I can't pay $4 for a can of soup. The week I tried to buy all organic at the local store, I paid more than twice as much for groceries. I do agree that all labeling should be honest with the consumers, but I have enough sense to know that if it does not say "Certified" Organic, then it probably ain't - no matter where you buy it. I love going into WalMart and buying some of the new Organic products and I love Amy's products they are now carrying. So I say, if you don't like WalMart, just don't shop there. But leave WalMart alone and let them offer those of lower income some healthier choices.
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