Organic Processing Industry Structure
The development of the USDA National Organic Standard in place of differing state/regional standards was widely predicted to accelerate trends of increasing consolidation in this sector. The first draft of the standard was released in 1997; what changes in ownership and control have since occurred?
click for larger version
PDF version of Organic Industry Structure: Acquisitions & Alliances, Top 100 Food Processors in North America
The first wave of acquisitions of organic processors was concentrated between December, 1997 when the draft USDA standard was released, and its full implementation in October, 2002. A second wave of acquisitions has been occurring since 2012. Few companies identify these ownership ties on product labels.1
May 2016: Hormel acquired Justin's (nut butters) for $286 M.
March 2016: Pulmuone acquired Vitasoy/Nasoya for $50 M.
March 2016: General Mills invested $1.25 M in Tio Gazpacho.
Fyffe's (Ireland) acquired Highline Produce (Canada) for $111 M in May 2016.
Emmi (Switzerland) acquired Cowgirl Creamery in May 2016 and Redwood Hill Farm & Creamery in December 2015.
John B. Sanfilippo & Son, which was ranked the 98th largest food processor in 2012, acquired Orchard Valley Harvest (May 2010, $29.5 M).
Heinz acquired a 19.5% stake in Hain Celestial in 1999 while also transferring ownership of their Earth's Best brand, but sold all of its Hain Celestial stock in 2005.
ConAgra acquired Ralcorp in November 2012 for $6.8 B, but sold it to TreeHouse Foods in November 2015 for $2.7 B.
PDF version of Organic Industry Structure: Major Independents and Their Subsidiary Brands
Most remaining independent organic processors have resisted substantial buyout offers (typically 2 times annual sales).2
Updates: Applegate Farms is no longer independent, acquired by Hormel in May 2015 for $775 million (following an investment from Swander Pace Capital in 2009); So Delicious/Turtle Mountain/Purely Decadent is no longer independent, acquired by WhiteWave in September 2014 for $195 million.
Nature's Path, which remains independent, acquired Country Choice Organic in July 2015.
Network Animation of Data from 1995 to 2007
View QuickTime Version
Produced in collaboration with Skye Bender-deMoll, an author of SoNIA - Social Network Image Animator.
PDF version of Organic Industry Structure: Private Label Brands
An increasing number of supermarkets, wholesale clubs and distributors are introducing organic private label products, in addition to chains that specialize in organic and natural foods.
See also: Organic Brands, Organic Distribution & Retail, Organic Farms
1. Howard, Philip H. 2009. Consolidation in the North American Organic Food Processing Sector, 1997 to 2007. International Journal of Sociology of Agriculture and Food 16(1), 13-30. [PDF]
2. Howard, Philip H. 2009. Organic Industry Structure. Media-N: Journal of the New Media Caucus, 5(3). [online]