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If a couple recent news stories are to be believed, economic woes are driving shoppers to abandon organic and natural products in droves. One, which appeared in this week’s issue of Newsweek, declares “the bloom is going off organics”, citing data from The Hartman Group and a recent study by WSL Strategic Retail that show a declining interest amongst consumers. Also quoted are three shoppers who agree that, well, the price just isn’t right.

The story cites numerous cost examples to back this up: $7 for a gallon of organic milk, $4.50 for a loaf of organic bread, $50 for a liter of extra-virgin olive oil, and so on. Compare all this, notes the reporter, to $2.99 for a gallon of conventional milk at a Kroger store, and you get an idea of the price spread that’s crimping organic sales.

All of this is very easy to digest for readers. But the issue is more complex. For one, prices have gone up across the board, not just for organic. Conventional milk averages around $3.70 per gallon across the country right now (I don’t know where he got the $2.99 figure, but it’s definitely an anomaly). So consumers are in the habit of paying more in every aisle. Also, studies show that people are eating out less and eating at home more. Sure, most of these individuals are leaving Applebee’s and reaching for the Stove Top stuffing, but there are many who can still afford to pay the premium on certain wellness products, including organic.

One dividing point in all of this is loyalty. Shoppers who truly believe in the healthy, ethical qualities of organic and natural offerings will not abandon them in tighter times. The Newsweek story acknowledges this, highlighting that only a fifth of organic consumers hold this level of commitment. This is true, but according to the Natural Marketing Institute, that percentage is growing.

Will sales of natural and organic products ebb eventually? Sure — and we may be seeing a bit of that right now. The wellness industry is an ever-evolving one, and for one industry to sustain double-digit growth year after year is difficult. But I think it’s a stretch to imply that the category is losing its luster — or, er, going off bloom.

Wait, don’t call the ASPCA just yet. I meant Chia Pet — you know, those terra cotta figures shaped like animals (or the heads of Homer Simpson or Scooby-Doo) that get slathered with wet seeds and eventually grow “hair.” Rarely does a Christmas go by without the ad popping up on television, blaring that timeless refrain, “Ch-ch-ch-chia!”

Well, those sprightly green tendrils that make up the hair are actually an ancient grain, one of several species making a comeback as health and wellness reintroduces consumers to traditional foods. Chia was once a dietary staple of the Aztecs. Today, food manufacturers are looking at its high omega-3, fiber and calcium content as an ideal addition to processed foods (it helps that chia is flavorless, unlike its more modern cousins, flax and hemp).

A new report from Datamonitor found that chia — along with quinoa, spelt, and amaranth — are increasingly being used to boost the nutritional profile of mass-produced foods and beverages. Productscan Online, the firm’s database of new product introductions, found that the number of products incorporating these old grains grew 50% worldwide, from 257 in 2005 to more than 500 last year.

Chia is going into all sorts of products, ranging from energy bars and even tortilla chips; others, like amaranth, are getting mixed into cold cereals. The vast majority of American consumers probably still isn’t familiar with these primitive grains, so there are few expectations the market for them will blossom anytime soon. But, people are searching for ways to reduce the amount of processed foods they eat. Datamonitor researchers found that 63% of Americans polled said it was at least “important” to cut down on their consumption of highly processed foods.

So, now you know what I mean when I say, “Eat you pet.” But mind the pottery. It might be a bit too much roughage.

Take a look at any refrigerated case in the produce department, and you’ll understand just how supermarkets feel about fresh juices and smoothies. It’s not uncommon these days for stores to merchandise up to 8, multi-tiered feet of these fruit and vegetable concoctions.

Labor-sensitive retailers like juice smoothies because they require no special knowledge to pack out and don’t require trimming and rotation like fresh produce. Smoothies have a longer shelf life, too.

So, it’s no surprise to see fresh smoothie kiosks whipping up competition in the $2 billion category. Supermarkets like Safeway and Whole Foods Market have installed juice and smoothie stations in select stores over the past few years. Many are outlets of national chains like Jamba Juice and Smoothie King. Some are franchised, but the vast majority of these in-store units are leased to, and staffed by, the retailer.

Paul Clayton, CEO of Jamba Juice, told us a while back that a 250-square-foot kiosk produces about two-thirds the revenue of one of the company’s freestanding stores — not a bad return on a small footprint. They’re also much more efficient to run.

Smoothies offer a fantastic health and wellness profile, and are ideally suited for supermarkets. That’s why competition among makers of both bottled and fresh smoothies is growing intense. McDonald’s is making them, and Starbucks is planning to. This week, Jamba Juice partnered with Dole Food Company, to launch Jambafruit.com, an online portal where consumers can submit and share smoothie recipes. Dole has slapped millions of customized stickers on bunches of fresh bananas that read, “I Want to Jamba!” at thousands of grocery stores nationwide.

The co-branding effort gets Jamba’s name deeper into supermarket territory, and Dole gains brand-name access into foodservice. This is the kind of arrangement we’ll likely see more of in the category as consumer demand for healthful, indulgent beverages grows.

Fun as it is to fill this space with ramblings and irreverence, as a trade-oriented site we’re obligated to share good hard data when it presents itself. And that’s just what we have for you today, courtesy of a couple state-of-the-industry reports released by the Food Marketing Institute at its banner show in Las Vegas. Though broad in scope, each one contains interesting insights into health and wellness marketing.

I’ll cut straight to the highlights.

The vast majority of retailers are using health and wellness strategies to stay competitive, numbers show. Eighty-nine percent say they’re emphasizing natural and organic products, and 85% say they’re focusing on consumer and family health. Ninety-seven percent say they’re playing up perishables, to great effect.

Economic concerns linger, however, and that could change retailers’ game plans as consumers trade down to less expensive items. Low price is the number one determining factor for shoppers, with 37% saying as much. Other studies have supported these findings, with some even stating directly that sales of premium-priced natural and organic products will suffer. But the opportunity is still there for creative retailers, according to FMI. Indeed, consumers say they’re eating out less, cooking at home more often, and consuming more leftovers than previous years.

People are also maintaining healthy attitudes that could translate into sales. Sixty-two percent say they’d like to eat healthier than they do right now. Of those who would like to improve their diets, 70% fall into the $75,000 to $100,000 annual income category, according to one study.

Sustainability remains a prominent issue for shoppers, as well. Sixty-one percent say the presence of a recycling and sustainability program is at least somewhat important when choosing a retailer. That’s because, as one study shows, more than 60% of shoppers have made a habit of recycling cans, plastic and paper products.

Given these attitudes, it’s puzzling that only 51% of retailers report that they sell reusable shopping bags. Or that more retailers don’t implement and promote bag recycling programs.

As the numbers show, wellness is an important, sophisticated category. Retailers need to make sure that they’re up to speed.

It’s reassuring to see the role government is playing in trying to get Americans to eat better, exercise and lose weight. The types of programs federal, state and even local governments are running these days are perfect ways for supermarkets to get involved in showcasing their own healthful products and services. Here are two examples of what I’m talking about:

Five months into their program, the 18,032 participants who’ve registered for the OKC Million have lost a total of nearly 73,000 pounds. The initiative, open to every single resident of Oklahoma City, Okla., was launched at the end of last year, under the leadership of the city’s cheery mayor, Mick Cornett (who has lost more than 35 pounds himself).

The program has several sponsors and partners, the most recent of which is Taco Bell (that’s right, home of Mexican fare with names like the Gordita Supreme and the Chalupa). The chain recently introduced its new lower-calorie and low-fat “Fresco” menu, and took advantage of the city-wide effort to promote the nine new items.

What’s notable here is that even a fast-food chain has the opportunity (and every right) to get in on the action here. Sure, these new items may not be the most healthful out there, but they represent a better-for-you option for hungry, on-the-go consumers.

Meanwhile, in California, the Network for a Healthy California is launching its 2nd annual Fruit & Veggie Fest throughout the state. The month-long promotion targets low-income families and touts the benefits of produce consumption.

Supermarkets are key players in the festival. One store in the Los Angeles area, Kroger-owned Food 4 Less, will sample fresh fruits and vegetables and conduct healthy shopping store tours. Local school district chefs will show participants different ways to incorporate more produce into their everyday meal plans.

These are the types of activities that can really improve the health of the food industry, too. Partnerships between government, private sector and the community need to be encouraged because they speak with one loud voice. And, these days, the message needs to be clear, since spending food dollars wisely is more important than ever.

Natural and organic personal care products are cleaning up right now, with sales having increased 17% from 2006 to more than $7 billion last year, according to Nutrition Business Journal. To further capitalize on this success and gain a leg up in the industry, many companies have begun jockeying for market position by addressing the issue of authenticity — why they’re the real deal, and why others aren’t.

Just today, for example, the Natural Products Association unveiled its own “natural” certification for personal care products during a press conference at New York City’s Mandarin Oriental hotel. Along with representatives from Burt’s Bees, Aubrey Organics and other participating companies, the association laid out details for what it claims is a higher standard that will allow consumers to identify products that are truly made of natural ingredients. Manufacturers that bear the new seal must meet a host of guidelines, including utilizing ingredients that are renewable, pose no human health risks, and are at least 95% natural. The seal should start showing up on products in stores within the next couple weeks, according to the NPA.

“Finally, we can end the confusion about what natural is and what natural isn’t,” said Mike Indursky, chief marketing officer with Burt’s Bees.

Running along the same lines, earlier this week Dr. Bronner’s Magic Soaps — an all-natural icon that’s been producing soaps for 60 years — filed a lawsuit in California Superior Court against several of its competitors, alleging that they’re falsely claiming to be organic. Jason, Estee Lauder, Avalon, Nature’s Gate and others will face litigation unless they commit to reformulate or drop their organic claims, according to Dr. Bronner’s.

Leaving no question about his sentiment on the issue, David Bronner, president of the Dr. Bronner’s brand, said in a statement that these companies have been “screwing over organic consumers”.

The ambiguity of “natural” has created headaches throughout the food industry, since outside of the meat industry there is no definition of the term. In the personal care category, neither natural nor organic claims are federally regulated. The Natural Products Association claims their new claim will end the confusion, but will consumers really be able to tell the difference at the retail level? In an industry that’s announcing and denouncing claims more and more, it could just be another addition to the clutter.

I recall reporting on a mess of problems at Safeway some years ago. They had acquired Randalls in Texas and Dominick’s in Illinois. It culminated in 2001, when the retailer bought Genuardi’s outside of Philadelphia. Shoppers were upset by the changes the parent company made after that purchase, taking away Genuardi’s local flavor and replacing it with centrally bought, cookie-cutter business practices that made it just another chain in the Safeway family of stores.

Well, chairman and CEO Steven Burd and the folks at Safeway can feel vindicated. Not only has the chain rebounded from those troublesome times, it’s flourishing. First-quarter results reported this week reached 44 cents per share, 2 cents ahead of analyst estimates. Safeway is forecasting its full-year profit will come in at $2.25 to $2.35 per share, up from the $1.99 per share earned in 2007.

More than anything, executives can thank health and wellness for the success. In 2005, the $40.5 billion chain (No. 4 in SN’s “Top 75 North American Food Retailers” list) launched the “Ingredients for Life” branding campaign. The initiative was built around health-focused Lifestyle format stores featuring upgraded perishables, a better selection of better-for-you foods and eventually, two private labels centered on wellness: O Organics and Eating Right.

Both of those store brands have been so successful they’re going global as part of a new broad distribution agreement called the Better Living Brands Agreement. Safeway officials say O Organics is the No. 1 organic food brand in the country, while Eating Right has become one of the fastest-growing health & wellness food brands. Better Living will make both labels available to all retail and food service channels in the country, supported by a network of co-packers and distribution companies.

I don’t think there’s another conventional food retailer out there that has used health and wellness to improve its own health as much as Safeway. Say what you will about conventional operators getting into the wellness business. Safeway has done it right.

Greetings from Chicago! I’m here at the All Things Organic show to see what’s new and notable from companies throughout the health and wellness industry. It’s a quick trip – just a little more than a day total on the show floor – but it hasn’t taken long to pick up on the interesting trends and new products.

Allow me to elaborate.

Kid and pet products are still going strong. Companies like Tasty Baby and Happy Baby are rolling out organic food that caters to that clean sheet desire so many parents have. And manufacturers like Pet Friendly have released healthy, increasingly gourmet pet foods that emulate human tastes; New Hampshire-based Yoghund, for example, makes a frozen probiotic yogurt for dogs. Nuts and snacks were also out in full force, many in small pouches for on-the-go eating.

Something that really caught my eye was the number of organic and all-natural insecticides. In addition to EcoSMART, which we briefed in a recent print edition of Whole Health, there were a couple others, like Orange Guard, which uses orange peel fragrance, and Natural Forces, which employs a sugar-based chemical compound to control outdoor pests. With spring here and summer soon to come (though it was hard to tell in balmy Chi-town this weekend), it’s a good time to address bug control. But more than that, it seems these insecticides speak to the same consumer demands that pet and baby foods do: protecting a family’s more dependent members.

Sustainability was also a big focus, and in some cases companies are taking it to notable new levels. A great example of this comes from Revolution, a brand new cosmetics company (they’re not even on the shelves yet) based in Ottawa, Canada. In addition to chemical-free health and beauty care items, they make a “22-use” skin cream that can be applied in just as many ways as advertised. Because it accomplishes what normally requires a clutter of products, the new cream helps conserve space and energy, according to founders Alexandra Zanela and Melissa Shabinsky, both long-time veterans of the cosmetics industry.

Could it be profitable to do more with less, as Revolution is trying to do? In an industry that went from farm stands to showcase stores and rocketing profits, anything’s possible.

Much like the mainstream wellness movement it’s now a part of, soy has evolved from a crunchy niche (tofu casserole, anyone?) into a major shelf presence. Just walk through the aisles of your neighborhood grocer and you’ll see soy milk, soy nutrition bars, cereal made with soy, and more, all prominently displayed.

Chalk this up to a host of factors. Food technology has helped soy develop beyond bland and into a palatable lineup of foods and drinks. There are also the many perceived health benefits, including studies that link soy to heart health and weight loss. And then there are those who, for whatever reason, have begun to swear by soy. Many — including, ahem, my mom — believe substituting soy for dairy or meat helps control their allergies. Or perhaps it helps with asthma, or headaches.

Whatever the reason, soy-based product sales have shot up over the past couple years. According to Packaged Facts, the category grew 29% between 2003 and last year. By 2012, the research group estimates, soy sales could increase from a current $2.1 billion industry to a $3 billion one. Companies like Clif Bar, with nearly $100 million in sales last year, are cashing in on the trend. Same with Dean Foods and its WhiteWave brand, which racked up $333 million in soy milk sales last year — an 85% share of the category.

In addition to the factors that have driven soy sales up to this point, some emerging market and cultural trends could work in the category’s favor. More and more milk drinkers may switch to the soy variety, especially if price and supply instability continue like they have. The number of consumers looking for meat alternatives — currently 26% of all households, notes the Packaged Facts study — should also increase; along with the physical health reasons behind cutting out meat, there also seems to be a burgeoning awareness of livestock’s contribution to global warning. Those cows sure do burp and fart a lot.

When Gaylord Nelson died at age 89 on July 3, 2005, Earth Day was already established on the calendar. It was a day of awareness and education, but also of celebration.

That’s not exactly how Nelson envisioned it when, as a U.S. Senator from Wisconsin in 1969, he announced a huge, grass-roots protest against environmental desecration for the following spring. Remember, it during the height of the Vietnam War, and demonstrations and sit-ins were popular forms of protest.

“I was satisfied that if we could tap into the environmental concerns of the general public and infuse the student anti-war energy into the environmental cause, we could generate a demonstration that would force this issue onto the political agenda,” he wrote. “It was a big gamble, but worth a try.”

Like a lot of other things that started out as a protest movement, Earth Day lost its rebel attitude as it matured. The same happened to organic living (and about 77 million baby boomers). It’s like they say: If you’re not a rebel by the age of 20, you got no heart; but if you haven’t turned establishment by 30, you’ve got no brains.

Well, Earth Day is 38 this year, and has joined the mainstream. School children pick up litter and learn about global warming. Supermarkets distribute reusable shopping bags. Communities launch more comprehensive recycling programs.

Anyone lamenting Earth Day’s going corporate is too nostalgic. The public is listening! Wasn’t that the goal all along? The timing of world events — gas and food prices, animal die-offs and global warming — makes Earth Day even more relevant. The ideal this commemorative day represents is manifesting itself as action in everyday life. Look at the hybrid cars people are driving, and the recyclable bags they’re bringing into the supermarket; the gardens on their front lawns and the solar power panels on the roofs of their homes.

I think Sen. Nelson and his cohorts would be delighted to see just how universally successful Earth Day has become. Every participant — corporations, government, schools, families and, yes, supermarkets — deserves some of the credit.