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The Wall Street Journal reports this morning that “organic farmers and grocery retailers are embracing the idea of lower-cost, private-label products to retain newly budget-conscious consumers.” Organic private brands accounted for almost 23 percent of all organic sales in the 52-weeks ending June 13, according to a Nielsen Co. study, compared to less than 14 percent during the previous year.

The trend reflects the reality that organic retailers – just like most other retailers - are trying to cater to cash-constrained consumer, and are working with suppliers and wholesalers to develop private brands that they believe will expand their appeal to shoppers.
KC's View:
It isn’t just wholesalers and suppliers that are working with retailers. It is our understanding that companies like Daymon Associates, for example, are making real strides ion developing effective private brands for their retailer clients…and that this is a segment where they are seeing real growth.

BTW…this is a good example of why, even if economists say that the recession has ended, people are going to continue acting, at least for a time, in a recessionary mode.

People haven't lost their aspirations, but they are seeking new ways to fulfill those aspirations and are making decisions about priorities.