by Paul Clarke

When I was growing up in the 1970s, my family made a brief foray into the world of natural foods that can be summed up in two words: wheat germ. My mother had purchased a jar during an impulse-driven healthy-shopping spree at a distant natural-foods store. After we all dutifully tasted the stuff, the jar languished at the back of our refrigerator until someone eventually threw it away.

Natural foods outgrew the wheat-germ phase long ago, as is abundantly clear to me during a summer-afternoon visit to the expansive Whole Foods Market in North Seattle-the first of what will soon be six Seattle-area outlets of the natural-foods leviathan. Shoppers push their carts between mounded displays of organic melons, apples and cherries; past the cooler case full of prewashed, bagged organic salads from Earthbound Farm, and display cases of fresh organic meats and seafood; and down aisles of freezer cases filled with boxes of Cascadian Farm's French-cut green beans, Amy's organic black-bean enchiladas and Whole Foods' store-brand veggie burgers. With its meat counter, freezer aisles and deli case, the store looks much like any other upscale supermarket-the cantaloupes are from Mexico, the bell peppers from Canada, the apples from New Zealand-but signs also point out that the organic blueberries hail from the nearby Skagit Valley and that the bagged, yellow-and-red Rainier cherries were grown by Mark and Karol Miller at Indian Dan Canyon Ranch in Brewster, just on the other side of the Cascade Range. And somewhere amid the rows of bottled organic pasta sauce, frozen organic pizzas and loaves of organic bread, there is, quite possibly, a lonely jar of wheat germ.

Once the province of the counterculture, organic has gone mainstream. Whole Foods Market is the giant of natural-foods retailers, but in conventional supermarkets such as Safeway, Kroger and Wal-Mart-places that less than a decade ago still harbored suspicions of the organic industry-shelves and coolers are now dedicated to cartons of organic milk and boxes of organic cereal. Thanks to a fortunate convergence of events-a growing awareness of the importance of nutrition and proper diet, a maturing organic industry, a rise in environmental consciousness-organic has become a sophisticated business, and that business is booming.

"Organic has had some incredible growth, and a lot of this has to do with an awakening of consumers to health issues, and to a greater understanding of the importance of the decisions they make when they buy food," says Jake Lewin, director of marketing for California Certified Organic Farmers (CCOF), a Santa Cruz-based organization that is one of the oldest and largest organic certifiers. "Consumers have realized that when they buy food in a sustainable manner, it has a real impact in the world. As part of that reality, organics has grown."

Organic agriculture's modern popular origins are in the back-to-the-land alternative culture of the late 1960s and early '70s, when fledgling organic farmers held as their goal the production of food and fiber without the use of chemical pesticides and herbicides, and with an emphasis on working with natural systems to farm in an environmentally sustainable manner. Since that beginning, the organic industry has grown into a multibillion-dollar business. According to the Organic Trade Association, which represents sectors of the North American organic industry ranging from farm to retail, the industry accounted for less than one-half of 1 percent of overall domestic food production in 1990 and generated approximately $1 billion in sales. By 2005 that figure had grown to nearly $14 billion-an average annual growth rate of nearly 20 percent over the past 15 years-and the organic sector had captured 2.5 percent of the domestic market. Since the 2002 implementation of the National Organic Standards-a unifying set of federal regulations that clearly defines the way organic products may be produced and labeled-the industry has continued to grow, as mainstream retailers expand their lines of organic products, and natural-foods retailers, such as Whole Foods Market, expand across the country.

While companies such as Whole Foods Market, Earthbound Farm and Cascadian Farm have become organic titans, the industry is still close to its early roots. These companies, along with countless small farms, food companies and markets, started with more idealism and enthusiasm than money. Considered, sometimes disdainfully, as an outgrowth of the late 1960s "hippie" alternative culture, organic farmers are, in many ways, an American archetype: agrarian entrepreneurs facing multiple obstacles and relying on experience, hard work and community support to lead them to eventual success.

"At the small-farm level, it's David against about six Goliaths," says Bob Scowcroft, executive director of the Organic Farming Research Foundation in Santa Cruz, California. "It's industry; it's weather; it's lack of marketing; it's government opposition; it's media inattention-and yet, organic has succeeded such that it's now on the national screen. Some of those entrepreneurs changed over time, and grew with the consumer interest. The first wave are now in their 50s, and some of them are managing $300 million operations, when 25 years ago, they had just 10 acres."

As examples, Scowcroft cites organic pioneers such as Gene Kahn, and Drew and Myra Goodman. Kahn, a self-described "hippie farmer," founded Washington-based Cascadian Farm in 1972. The company he created is now the nation's largest producer of organic frozen food; by 2000, Cascadian Farm's profits and potential had become so attractive that the company was acquired by General Mills (Kahn was named a vice president). The Goodmans started Earthbound Farm on 2 acres in California's Carmel Valley in 1984. In 1986, Earthbound Farm became the first company to successfully launch prewashed, bagged salads, and now the company is the country's largest grower and shipper of organic produce, and markets its salad greens in three-quarters of all supermarkets in the United States.

Scowcroft also cites as an example the company formed in Austin, Texas, by John Mackey, Renee Lawson Hardy and Craig Weller in 1980. At the time these business partners founded the first Whole Foods Market, it was one of fewer than six natural-food supermarkets in the United States. The store easily could have remained small, if not for a desire among the founders to take a gamble on the future of organic food and to create their own kind of company with a unique approach to management.

"There was a boldness or willingness to take a chance that the organic-food industry would become a mainstream thing," says Walter Robb, co-president of Whole Foods Market. The company complemented that boldness with a unique management style that would satisfy employees-the company calls them "team members"-and encourage creative thinking as the company acquired and merged with other natural-foods entities. "Think of it as a tumbleweed that's building up speed, picking up more things as it goes," Robb says. "There may have been different companies that were better at different things, but such was the strength of the vision and the culture that we picked up people and ideas along the way, and picked up momentum."

Today, the rapidly expanding Whole Foods Market empire has 184 store locations in North America and the United Kingdom-including the largest supermarket in Manhattan, at Columbus Circle-and 40,000 employees on its payroll. Total revenue in 2005 was more than $5 billion, and Robb expects revenues to reach $12 billion in 2007. In the 26 years since it was founded, Whole Foods Market has acquired and merged with other natural foods chains, including Boston-based Bread & Circus, in 1992; Los Angeles-based Mrs. Gooch's, in 1993; and, in 2004, the British chain Fresh & Wild, marking the company's first foray into the overseas market. In addition to its retail stores, the company also owns subsidiaries such as the Colorado-based Allegro Coffee Company and the Seattle-based Select Fish, a processor of seafood from Alaska and the West Coast. As testament to its management style, Whole Foods Market regularly appears on Fortune magazine's "100 Best Companies to Work For" list, and last year the company marked another milestone when it was added to the Fortune 500, debuting at number 479.

While entrepreneurial vision and a creative business plan can help a company become established, outside events are frequently key for making a business succeed. Whole Foods Market appeared and began to expand at a time when several key issues were coming together in the larger culture.
"There's the megatrend of the growing awareness about health and wellness, and the role that plays in people's lives," Robb says of the company's growth. "You have 80 million boomers, a growing awareness about people wanting to live vital lives, and the role that diet plays in supporting the quality of life. You have a parallel happening about the health of the planet, where people are realizing that the way we've been doing things is not sustainable. Changes have to be made, and Whole Foods has been in the right place at the right time to support some of that change, and we've led some of that change."

Among the changes Whole Foods Market has supported is the development and enactment of a national organic program, and standards on food quality, the care of farm animals, and meat and seafood standards. "In a number of avenues in the food industry, we are part leaders and part participants, and it's kind of a virtuous circle," Robb says.

The development of the National Organic Standards is perhaps the most important event in the modern history of the organic industry. Prior to implementation of the standards in 2002, food and products labeled as "organic" were governed by a patchwork of state laws and industry regulations that were often confusing for consumers. The passage of the Organic Foods Production Act as part of the Farm Bill in 1990 set in motion a process in which the organic industry and consumer groups, working with the Department of Agriculture, would create a comprehensive system of rules defining what, exactly, "organic" meant. After years of input and, at times, heated debate, the National Organic Standards were finalized in 1999 and went into effect in 2002. Products meeting the standards and verified by a third-party certifier are entitled to use a green-and-white "USDA Organic" seal. The law has had an enormous impact on the organic industry.

"What the law did was legitimize the [organic] category," Robb says. "It said that there's a seal now, that consumers can have confidence that this product is what it says it is. It gave consumers confidence, but it also gave businesses confidence that the rules were defined, that it wasn't an amorphous thing. It was really a defining moment for the organic industry to have that foundation for growth."

As proof, Robb points to the announcement earlier this year that Wal-Mart-the nation's largest grocer and already the top retailer of organic milk-is planning to double the number of organic products it carries in its 4,000 stores. "That never would have happened 10 or 15 years ago, and I doubt it would have happened without these rules," he says.

For the most part, the organic industry has seen the set of rules as a blessing. "Something we found in our recent survey [of organic-industry members] is that a majority of people indicated that having the standards in place has increased their ability to generate sales," says Holly Givens, communications director for the Greenfield, Massachusetts-based Organic Trade Association. The survey found that, of those using the organic seal, 17 percent said the USDA labeling and certification programs had "dramatically increased their ability to generate sales of organic products," and 38 percent said the labeling had increased their organic sales somewhat. "Having those labeling requirements and certification programs has drawn attention to their products, and has given them a more consistent presence in the marketplace," Givens says.

Consumers have also found the national standards useful. A survey conducted last year by Whole Foods Market found that, three years after implementation of the National Organic Standards, nearly two-thirds of Americans have tried organic foods and beverages, a jump from just over half in both 2003 and 2004. Reasons given by respondents include a desire to avoid pesticides (70 percent), the perception of better freshness (68 percent) and a desire to eat healthier (67 percent). Eighty-seven percent of respondents also believed organic foods were better for their health, and 85 percent believed organic was of better quality.

While sales figures and consumer preferences give some idea of the success of the organic program, changes in the shift to organic farming reveal how extensive the impact may be. Bob Scowcroft says a researcher in California recently found that, in a two-year period following implementation of the national standards, 40 percent of the state's organic farmers dropped out of organic production-due to a number of reasons familiar to all farmers, such as drought conditions and market problems-while the number of farmers using organic methods increased by 43 percent. "So there's quite a bit of turnover of growers choosing to go organic, but the net [gain] every two years is 3 percent," Scowcroft says. While this seems like a slow and uncertain way to advance organic production, Scowcroft says a more telling figure is the number of acres in organic production. "Every two years, the net acreage increase was 30 percent. So these growers who are figuring out how to do it, and have ready markets for their commodities, are generally so successful that they're adding acreage. That somewhat reflects conventional agriculture in America-you get bigger."

Organic agriculture is becoming so popular that institutions such as Washington State University are introducing or expanding their organic programs. Nationally, Scowcroft says, the trends are similar. "We feel pretty comfortable that there are more than 10,000 organic farmers in the U.S.," he says. "In the mid '90s, there were 4,000 or 5,000, so it's doubled in 10 years, but the acreage has gone off the charts."

Just as "getting bigger" is a constant trend in American agriculture, the production and marketing of organic food has moved far beyond its farmers-market origins. With a near-constant growth rate of 20 percent, organic has attracted the attention of many mainstream food companies and retailers.
"Just about everybody in the food business is opening an organic portfolio," Scowcroft says. While indicating there are several significant challenges still facing the industry-everything from questions about the integrity of imported raw materials to a lack of government research funding-Scowcroft sees the interest of mainstream companies as an irrefutable sign that organic has arrived. "It's fully engaged now. Every supermarket wants to carry it, the box stores want to double their offerings, and it's all about the 'O' word."

Jake Lewin agrees. "[Organic] is something you might see every day, that regular people get to experience on a regular basis," he says. "Both the regular supermarket and the health food market have organic foods. That prevalence-the fact that it's a part of everyday life-shows it's not just a niche, but it's a real, viable choice."

Many familiar household brands are receiving organic makeovers. This summer, for example, Kellogg introduced organic versions of Raisin Bran, Frosted Mini-Wheats and Rice Krispies, which now appear alongside their conventional versions on supermarket shelves. In addition, grocery chains such as Safeway, Kroger and SuperValu have introduced private-label organic lines that they sell at prices below those of brand-name organic products.
"There's now a critical mass of interest in the marketplace, and a critical mass of shoppers who seek out these products," says Holly Givens. "Businesses are businesses-if there's a business opportunity, more people are paying attention."

As a sign of the shift in the market-place, a survey conducted by the Organic Trade Association earlier this year indicated that in 2005, the "natural food market" channel-including small natural food stores and chains as well as giants such as Whole Foods Market-represented 47 percent of U.S. organic food sales. Compare that to the roughly 46 percent (and growing) of total organic-food volume that was sold through supermarkets and grocery stores, mass merchandisers and club stores such as Costco and Sam's Club, and it's easy to see the direction the market is moving.

With growth comes growing pains, and the organic industry is not exempt. As farms and stores have gotten larger and distribution chains have begun to extend around the world, some have voiced concerns that "organic" is becoming the very thing it was supposed to be an alternative to. These concerns have echoed through the industry for years, and they entered the public forum earlier this year, with publication of Michael Pollan's bestselling The Omnivore's Dilemma: A Natural History of Four Meals. In his book, Pollan-a journalist who has written extensively about the organic industry for The New York Times-challenged companies such as Whole Foods Market and Cascadian Farm on their commitment to the original spirit of the organic movement. Among his concerns are the environmental impacts of shipping organic food cross-country or internationally, and the preference among some large organic companies to purchase produce from massive monoculture farms thousands of miles away, as opposed to smaller, local, agriculturally diverse family-owned farms that, in Pollan's opinion, have long been the organic ideal.

While debates can often be contentious, Pollan and Whole Foods Market CEO John Mackey have followed a very public and civil path, with Mackey posting extensive rebuttals to Pollan's arguments on his company's Website, along with Pollan's response. Throughout the exchange, the discussion remained polite and positive, and a reader gets the sense that both sides are committed to the same goal: preserving the integrity and enhancing the success of organic agriculture.

"Raising the awareness about local food is a very healthy thing," Robb says. "I don't know of a bigger supporter of local foods than Whole Foods over the years. It's spurred a very big discussion and dialogue within the industry over all these things, and that's healthy. It's important to remember what it took to get here-a lot of years of flying under the radar, developing the supply-even to get to the point where we're having this conversation. I don't think anyone was thinking about stopping at this point, and riding 'big organic' into the sunset. We're going to keep evolving, and this is something helpful to think about."
While debates continue about ways to operate a big organic business in a sustainable way, many in the industry see the embrace of organics by a mainstream audience as a net positive. "Fundamentally, I want to see organic in people's hands," Lewin says. "I also want to see people make conscious decisions about what they eat and where they get it, and by getting organic at a conventional supermarket, it brings someone that much closer to buying organic at a farmers market. It's really not mutually exclusive."

And while organic pioneers may never have imagined that a 3-acre lettuce farm could grow into one of the industry's largest players, the benefits of such a large-scale shift are distributed far beyond the industry.

"From a global, planetary perspective, it's a wonderful thing that this many more products will be produced sustainably," Robb says. "There's less pollution, less soil erosion-it's a very healthy thing. Ultimately it'll result in greater supply, and probably lower prices."

Industry supporters also point to the national standards as a way to ensure that the organic movement doesn't lose sight of its goal for sustainable production, even while mainstream retailers increase their interest. "No matter the size of the business, if they want to label something as organic and sell it in the U.S., it has to meet the federal standard," Givens says. "No matter what type of agricultural product it is, or what business model they have or the size of the business, they still have to follow the law. More businesses are choosing to offer organic products-that means more acres in organic production and an environmental benefit for everybody."

Ultimately, any debate over keeping organic "pure" while allowing the business to grow is not about competing visions-it's about merging the two and using the organic industry's momentum to move toward a more sustainable food system. "Some of us would like to buy fresh from the farm every three days, but that's just not the way it is right now," Scowcroft says. "We need to be evolutionary activists, and get the farms closer to the city and keep them profitable," and support local farmers markets and local distribution channels. "That takes time, and not that many people are thinking about food in that context."
While reorienting Americans' perspectives to farming and reorganizing distribution channels may seem pie-in-the-sky ideas, not so long ago the notion that Wal-Mart would be the nation's largest seller of organic milk seemed pretty far-fetched, too. Assuming for the moment that organic's double-digit annual growth rate continues unabated, eventually making it responsible for 20 percent, or 50 percent, of the national food supply, the future of food might look very different.

"Last year, we asked some of our members, in honor of our 20th anniversary, to look out to 2025 and see what it could be like then," Givens says. "The majority said they anticipate organic products will become more of an ordinary, everyday part of people's shopping, and that the products will be found just about everywhere."

Scowcroft agrees, and like any pioneer, he sees this as yet another starting point to talking and thinking about the food we eat. "I live in Santa Cruz, where we have farmers markets every day, and you can't open a restaurant without telling what local farmer you got your organic produce from," he says. "I can envision a world where organic is the baseline, and the regional or local aspect becomes your value-added [component]. 'Organic' can become the place where the conversation starts."

This article originally appeared in Alaska Airlines Magazine, August 2006. Paul Clarke lives in Seattle.