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Wal-Mart turning away from organic



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So much for their publicity stunt. It's back to traditional foods produced by the finest labs of Kraft and Novartis can produce. Nothing says food like a chemical factory so pass the Cheez Whiz and Jello.

A number of organic farmers across the country say that Wal-Mart has backed off of aggressive plans to offer more organic foods. After placing large orders for organic apples and juices last year, the retailer is cutting back or stopping orders altogether. Wade Groetsch, president at the Florida juice producer Blue Lake Citrus Products, says he stopped shipping his organic orange-tangerine blend to Wal-Mart after a few months. "The sales there just weren't enough to justify our costs of packing and shipping," he says.

A year ago last March Wal-Mart grabbed headlines by announcing its organic push. Stephen Quinn, a top marketing executive, told investors at a Bear Stearns conference that the company would double the number of organic food items in its stores to 400 and offer them "at the Wal-Mart price." But now Karen Burk, a spokeswoman for the company, says that the majority of Wal-Mart stores are offering between 100 and 200 organic food items. She says the company does not have a target, at least not a public one, of stocking 400 organic items in the average store.


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