Kroger, the nation's second largest retailer earns $ 1 Billion in sales from selling organic products.
Kroger started "Simple Truth" and "Simple Truth Organic" Natural Foods brand as a tagline for their organic products line back in 2010.
The company boasts the brand as being "Free From 101" artificial ingredients and preservatives, according to Businessweek.
The product line contains more than 35,000 natural and organic products. Each year, more or less 6,000 products are added into the roster.
"There is one area where the customer has clearly said that we're interested in, we're really just answering the customer's call for more and better," Michael Ellis, Kroger President stated in an interview.
Introduction of new range of organic produce has pushed the prices of natural products down.
Cereals, breads, dairy product are steadily gaining popularity and earning a place in the organic market.
Organic products spark consumers' interest when retail stores such as Whole Foods Market are "growing like mushrooms." Similarly, Kroger already has 2,600 supermarkets in 34 states.
Organic products can be found everywhere in what the company executives dub as "blurring of groceries and natural foods." When consumers go shopping, they now go for both organic and non-organic foods.
Furthermore, "organics" are slowly become a house brand, no longer the lobby of the trendy, expensive specialty shops and farmers markets.
On another note, according to the report, consumers are careful now more than ever in giving attention to food labels and organic products.
Despite the rising popularity of these products, there has been rumors that the price premiums of organic products will continually decrease, as increasing number of competition in the organic products category push the prices of these products down.
Kroger CEO Rodney McMullen affirmed that although the company earns more from organic products, he revealed the uncertainty of the price premiums for these products in the future.
Meanwhile, Kroger would be introducing yet another line of organic products, wines, this fall, according to Ellis.
