Bio&Bio vs. Garden vs. Alnatura vs. Anyone Else

If you shop in health food stores, you have probably already noticed that prices for certain items can vary dramatically from one place to another. It is reasonable to conclude that larger chains carry higher fixed costs, which adds to the final price. Then you stumble upon an exception. A small bulk shop in the harbor city of Split sells the very same product for half the price. I must admit, that surprised me. My first thought was how this modest, little known shop managed to be so competitive on that product. One might conclude that a smaller operation has fewer fixed costs than the big names. I prefer not to mention any brands, because the aim is not to dent anyone’s reputation. The aim is to encourage us to draw our own conclusions.

Let us return to the puzzle. If a small shop managed to compete on the price of that item, consider that the product itself has no organic, eco or bio label. It is logical to assume an organic version would cost more. Yet must it really cost that much more?
Is such a steep premium justified?

Broadly speaking, yes. These products tend to be higher in quality and cleaner in composition. There are fewer synthetic pesticides and herbicides, no routine antibiotics or growth hormones, and no GMOs, which usually makes them healthier. Beyond that, producers who work in this way take responsibility for their surroundings. They avoid polluting the environment with the substances listed above and they help preserve habitats for birds and other wildlife. In short, they invest in Mother Nature for the long term. These growers are also less exposed to harmful agents when treating crops. A deeper discussion would lead into fair trade, permaculture and related topics, and that is not a short conversation. All of this has a cost. Certification, maintaining cultivation standards and the constant push toward something better all add up. That is why the product carries a higher price. It makes sense.

Even so, this is a smaller retailer that places modest orders and now operates two shops. When compared with much larger stores of the same kind, how can it offer such a low price?

Another difference is that this smaller shop sells goods in bulk, while the big players sell pre packed items in smaller formats. The shelf price must also cover repacking, packaging and printed materials for the container. Have I missed anything?
Taken together, these costs could explain a higher price point. Let us grant them that, since we have little choice. They started as small boutiques and now rival the neighborhood supermarket. This niche has both deepened and widened. We used to be satisfied simply with a bio product. Today we are inundated with labels that shout “BIO”, “ECO” and “ORGANIC”. It is only natural that the average shopper would assume Organic is the best, and will buy Organic. In reality, much of it is equivalent. Most importantly, it is not black and white. There are many grey areas. For instance, one directive on free range conditions for hens and their eggs does not require that the birds remain outside at all times. It only requires that farmers provide access to the outdoors. Many grey areas indeed. That said, those same hens are fed exclusively with feed from organic cultivation, for example organic maize. The same logic applies to milk and meat. You can be confident that a farmer must feed such animals exclusively with organic nutrients and must not administer antibiotics, growth hormones or anything that could introduce undesirable substances into the animal’s system. Rest assured that standards are enforced, because penalties are severe.

I have also read that the United States has gone even further. There are certifications for family farming and certified natural farming, among others. The conversation is increasingly not only about how to grow better, but how to stand out from a sea of similar products. Faced with a wall of options in these stores, one can be unsure what to buy. Offering choice is fine, yet an excess of choice leaves the customer undecided. I would be content to enter a shop and choose a single reliable producer for basmati rice, and the same for the rest of the pantry. The abundance can be confusing. It is largely designed to keep you in the store longer, so that a few unplanned items find their way into your basket.

They become guided by the pursuit of profit, upkeep and expansion.