Organic, Inc.: Natural Foods and How They Grew (2)
——Organic, Inc. tells how an $11 billion industry arose out of an alternative food movement, bringing backwoods idealists into the age of the organic tortilla chip. A juggernaut in the otherwise sluggish food industry, organic food is now a consumer phenome
:st="on">Napa cabbage, baby Asian greens, daikon radish, broccoli rabe, red-leaf, green-leaf, and romaine lettuce along with bulk spring mix. Organic peaches were available in the summer, apples and pears year-round. Not all of the produce was organic, but much of it was, and I began buying it, figuring the lack of pesticides was a bonus for freshness and taste. Then I would move around the perimeter of the store, trying my best not to dump fresh seafood and meat and dairy on top of the produce. It would have made more sense to pick up the veggies last, so that they would be on top, but the hard facts of consumer enticement had dictated the layout of the store: the gorgeous array of fresh fruits and vegetable were the gateway to this consumer paradise. They had certainly hooked me. Without kids, I didnt think much about cost. Quality was all.
In New York, you have to understand, I didnt do supermarkets because they were impossible, nasty, and crowded. I relied on old-fashioned neighborhood and specialty stores like the Staubitz butcher shop on Court Street in Brooklyn, and Sahadis on Atlantic Avenue, where I stocked up on spices, dried fruit, hummus, thick Middle Eastern yogurt, and olive oil. In Greenwich Village, there was Murrays Cheese Shop, where the long wait was exceeded only by the number of exotic cheeses in stock, and Faiccos Pork Store across the street, with unequaled Italian sausage. You got fresh pasta at Raffettos on Houston Street and fresh mozzarella scooped by hand from the vat in the back of Joes Dairy on Sullivan Street. Then I would bike down to Chinatown for bargain seafood and vegetables or visit Russ & Daughters on the Lower East Side for smoked salmon and pickled herring, as my elderly father kibitzed with the staff.
But in Washington, I discovered that Whole Foods had brought many of these specialty foods into one convenient, upscale setting. Even the lighting was spectacular -- it was designed, a marketing consultant told me, to make people look better, feel better, and thus want to buy more. The quality of the goods themselves wasnt always up to the stuff I bought in New York, but it was high, the produce especially.
I began to notice something else, too. The store was getting more and more crowded and competition for parking had become fierce. Soon, Whole Foods offered valet parking -- at a supermarket! -- but it was free, so I took advantage of it. My business instincts kicked in, no doubt influenced by the awareness of how much money we were spending at Whole Foods each week -- and by implication, how much others must be spending, too.
I decided to get a piece of the action. Following the dictum of stock market guru Peter Lynch, who quaintly advised investing in what you knew, in companies you liked, I bought Whole Foods stock. This time, at least, it worked. Moreover, owning the stock justified whatever superfluous purchases struck my fancy -- French soaps, organic orange juice, a pricey T-bone, sushi-quality tuna, Venezuelan chocolate, Italian ricotta. If they swelled Whole Foods bottom line, they also swelled mine.
The more I spent at the store, the more I made on the stock, give or take a few swoons along the way, such as the companys ill-advised launch of a natural-food dot-com. Luckily, though, it always returned to what it knew best -- selling good food in a pleasant atmosphere. And it grew steadily, even as the economy dipped into a brief recession. Overall, I earned a return in excess of 130 percent by the time I sold the stock, over a period ending in mid-2002, when I began this book project (thus cutting my sole financial connection to the organic food industry). Ellen and I had, in effect, eaten for free at Whole Foods for two and a half years. Had I continued to own the stock, it would now be up more than sixfold.
Who would have thought that a natural-food supermarket could have offered a financial refuge from the dot-com bust? But it had. Sales of organic food had shot up about 20 percent per year since 1990, reac
 [ 1] [2] [ 3] 
|