Attack on discounters Migros and Coop with cheaper organic products, but they come at a price

Organic products are very popular with Swiss consumers - as long as the higher quality is affordable. Coop and Migros are now launching cheaper organic food, but not always from Switzerland.

The organic market in Switzerland is flourishing. With annual per capita expenditure of CHF 454, local consumers are in first place on the international organic hit list, reports the "Handelszeitung".

As a national organic quality feature, Bud products with the Swiss cross guarantee that at least 90 percent Swiss raw materials have been used in production. This is how they earn the designation "Bio Suisse".

However, if you want to afford "organic", you have to dig deeper into your wallet. According to the Federal Office for Agriculture (FOAG), buying organic products costs an average of 56.4 percent more than buying conventional goods. For quite a few consumers, however, the price premium on products with the Swiss Bud label is simply unaffordable.

Wholesalers react to high organic prices

The wholesalers Coop and Migros have now recognized the high-priced organic dilemma of their customers. Cheaper alternatives are now intended to make organic products more affordable for shoppers with a less bulging wallet. However, these are products that do not carry the Bud label - and do not always come from Switzerland.

For example, the German organic supermarket chain Alnatura, which is managed in Switzerland by the Migros Cooperative Zurich (GMZ) under a license agreement, relies on the German budget organic brand Prima in its 25 stores here. "The Alnatura Prima! products have been available in all 25 Alnatura organic supermarkets in Switzerland since the beginning of January. The range extends from apple juice to wholemeal flour and includes 25 basic products," a GMZ spokeswoman confirmed to the Handelszeitung newspaper.

GMZ justifies the introduction of the cheaper brand with the savings for consumers: "Organic should be affordable for all customers who want to eat sustainably, regardless of their budget." Prima products have not yet made it onto the shelves of Migros stores.

Coop focuses on low-cost organic

However, the aim is to attract customers with low-price products in the organic range. "We are continually adding to our low-price range, but it is also subject to seasonal fluctuations, which is why we cannot give a specific figure," explains a Migros spokesperson.

Since spring 2024, Coop has been offering goods from the low-cost organic line Bio 365. The organic range now includes 39 products. And the range is to be expanded further. Over the next one to two years, the Basel-based wholesaler wants to increase the product margin to fifty to sixty. These should be around 30 percent cheaper than comparable Bud products.

A spokesperson for the company sees the Coop's organic range as a cost-effective addition to the existing organic range: "Our comprehensive organic range, which is based on over 4,000 Bud products, will be supplemented with selected items and offer our customers a wide selection."

Concerns at "Bio Swiss"

At Bio Swiss, concerns are spreading about the development at the lower end of the organic price band. After all, the Swiss organic trade association lives from license fees collected from retailers for the use of the Bud label. This income falls victim to the introduction of cheap EU organic imports.

Nevertheless, the offensive of cheap organic products is still viewed with a certain degree of serenity by the major distributors. "In terms of entering the organic market, such cheap products are welcome. Sooner or later, consumers will come to the organic bud," says a spokesperson for the association.