The natural and organic food segment is booming and big box stores are taking notice. According to Packaged Facts, Target recently informed its top suppliers—such as Campbell Soup, General Mills, and Kellogg—that the retailer intends to deemphasize popular processed brands in favor of products more in line with consumer demands, specifically healthier foods.
"Target is banking that national brand processed foods will be usurped by products such as gourmet sauces and oils made from fresh and locally sourced ingredients. Of course there's the caveat that these healthier products will be positioned and sold at affordable prices to remain competitive with more recognizable national brands," says David Sprinkle, research director for market research firm Packaged Facts.