Late to the private organic game, Supervalu goes big

Back in 2005, Supervalu decided to launch a new line of small organic markets, rather than launching its own organic line. But Sunflower Markets, as they were called, never really got off the ground in pilot Midwest markets. Supervalu (NYSE: SVU) suddenly shut the markets down two months ago, despite earlier announced plans to launch 50 U.S. stores by 2011. In early April, the Minneapolis-based grocer announced its intention to join Safeway (NYSE: SWY), Trader Joe's, and Wal-Mart (NYSE: WMT) in the private-label organic business, launching its own large Wild Harvest line.

The line is set to include 100 products at launch, ranging from eggs and milk to meat, produce, pasta, cereal and juice. Spokeswoman Haley Meyer says the longterm plan is to offer 250 to 300 products in the line across various categories. The launch comes on the heels of a study of "organizational opportunities," conducted by AC Nielson and commissioned by Supervalu in 2007, which revealed surging consumer demand for organic and natural foods.

The new line and its corresponding marketing campaign, urging consumers to "Organify Your World," debuted Sunday, April 13, across Supervalu's properties, which include Lucky's, bigg's, Club Foods, Albertsons, Farm Fresh, Hornbachers and Shop and Save.