Walmart Partners with Wild Oats in Effort to Make Organic Food Cheaper

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Walmart Wild Oats Partnership

Walmart plans to start selling organic foods for a cheaper price after it’s partnership with Wild Oats.

Walmart announced Thursday that it would be partnering with Wild Oats, a prominent health food label, in efforts to expand the organic food options and drive down the price of organic foods across the country.

“We know our customers are interested in purchasing organic products and, traditionally, those customers have had to pay more,” Jack Sinclair, executive vice president of grocery at Walmart US, said in a company press release. “We are changing that and creating a new price position for organic groceries that increases access. This is part of our ongoing effort to use our scale to deliver quality, affordable groceries to our customers.”

“We’re removing the premium associated with organic groceries,” Sinclair added. The Wild Oats organic products will be priced the same as similar nonorganic brand-name goods. “If we can make that price premium disappear, we think it will grow much, much faster,” he says.

How will they keep the price down of organic food? Walmart plans to eliminate the middle men and strike long-term agreements with farmers, Sinclair said.

Experts say increased supplies of organic ingredients should support expanded production and distribution, which often results in lower prices.

For now, Walmart will carry the Wild Oats label, which is owned by the Yucaipa Companies, a private investment firm, only in its pantry section, with items like tomato paste, chicken broth and cinnamon applesauce cup.

Over 90 percent of its offerings at Walmart will be organic, while the rest will adhere to company standards about ingredients and additives, a Wild Oats executive said, but not to any government regulations.

Walmart will first introduce Wild Oats at 2,000 stores in the coming months.

“What we don’t want to do is launch it in 4,000 stores and then not be able to supply those 4,000 stores in the short term,” Sinclair said. “Certain commodities are challenging in terms of being able to access both the raw material and the processing capacity.”

Walmart said it would be the only national retailer to carry Wild Oats products and that in the future it may consider adding fresh organics such as the milk, eggs and salads.

“We’re invigorating our brand by bringing great tasting Wild Oats products to more customers than ever before,” said Tom Casey, CEO of Wild Oats.

Wal-Mart Partners with Wild Oats to Make Organic Food Cheaper

Wal-Mart is trying to make eating healthy easier for Americans — by making it more affordable. The retailer said on Thursday that’s reached a deal with organic foods brand Wild Oats to sell the company’s products at lower prices.

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