Wal-Mart's Organic Food Initiative: A Case of Hippie Capitalism Gone Awry?
Wal-Mart (WMT) has run afoul for potentially misrepresenting non-organic food as organic. Much skepticism about Wal-Mart’s true commitment to organic and whole foods greeted Wal-Mart’s original announcement that they are embracing the organic food sector. Traditionally Wal- Mart has been very demanding of its suppliers. They frequently have demanded and received substantial product changes. Such was/is their power with traditional consumer goods manufacturers. But the organic food industry has a passion that may match Wal-Mart’s purchasing behavior. In any event, there is now more doubt and skepticism about Wal-Mart’s entry into this food category.
The Cornucopia Institute based in Wisconsin leads this charge. Their announcement reads as follows:
The Cornucopia Institute, the nation's most aggressive organic farming watchdog, has filed a formal legal complaint with the USDA asking them to investigate allegations of illegal "organic" food distribution by Wal-Mart Stores, Inc. Cornucopia has documented cases of non-organic food products being sold as organic in Wal-Mart's grocery departments.
This doesn't surprise me one bit. I wondered about their organic initiative when they announced it. I just wasn't sure there was enough organic product to fill their shelves. I was concerned that they might come up with underhanded ways of filling this niche. Looks like my concerns were justified. It will be interesting to see.
BTW, I will point out that the Cornucopia Institute is not without it's detractors but that doesn't completely invalidate it's complaint, just makes it a little suspect.
The power to investigate is a great public trust. Emanuel Celler
