- 08/27/2025
- Future of retail
Retail as a Force for Transformation: Unlimited Growth Potential for Organic?
In this edition of the SustainableFutureLab 2025, the focus was on pricing pressure, responsibility, and the role of the retail sector in the organic food industry. Managing directors from drugstores, discounters, organic specialty retailers, and conventional food retailers, along with an academic representative, gathered at the invitation of BIOFACH and the GOOD FOOD COLLECTIVE to discuss the challenges and opportunities in an ever-evolving market.
Written by BioHandel
In its second year, the interactive format once again featured provocative theses, with audience voting on statements such as: “Retail is a degenerative system,” “Price is not the top success factor for drugstores and discounters,” and “Retail has the greatest power to transform the food system.” A role-switching exercise among the panelists brought both clarity and tension – the goal was to go beyond the usual talking points expected in such a round.
Price, Education, Responsibility: Discount Sector Perspectives
For many consumers, price is now the deciding factor in food purchases. The past years have mostly seen shifts in market share rather than growth of organic compared to conventional. Is the success of organic food solely a matter of price? What roles do the different retail sectors play in the development of organic? And where lies the biggest lever for the socio-ecological transformation of the food system?
Hans Martin Hermann, Head of Corporate Affairs at Lidl, emphasized that all forms of retail have a role in the system. Organic pioneers gave important impulses, but the specialty organic shops alone cannot scale organic. Discounters, while unable to provide personalized advice, can reach large segments of the population. With its broad assortment, Lidl allows consumers to choose between organic and conventional – increasing organic's reach. He also highlighted customers’ price sensitivity and lack of brand loyalty, as well as a general lack of basic nutritional knowledge.
BNN: Opposing the “Cheap Is Better” Narrative, Advocating for Cultural Change
Kathrin Jäckel, Managing Director of the German Association of Organic Processors, Wholesalers and Retailers (BNN), criticized the widespread messaging that “cheap is better.” Instead, she called for a fundamental value shift to drive real change.
She, too, emphasized the importance of reach: connecting with people is key. The organic movement was founded as an alternative to the conventional food system. However, it has clung to its ideals for too long and neglected the needs of customers. A moralizing tone has created pressure – something that has notably changed. Today, the shift is toward cooperation and positive narratives. The organic specialty trade still plays a crucial role in driving this transformation.
dm: Pleasure Instead of Sacrifice – Organic for All
Kerstin Erbe, Managing Director at dm, described the company’s strategy as the “democratization of luxury.” The goal is to reach everyone – by offering sustainable yet affordable products that match the structure of a customer base representative of society at large. Organic should not be exclusive, and pleasure must take center stage. dm deliberately counters the image of organic as expensive or ascetic. They want to show that sustainability and good taste can go hand in hand.
Dennree: Making Organic Visible – and Accessible
For Lukas Nossol, Head of Communications at organic specialist Dennree, the growing presence of organic products in discounters is not a threat. Basic organic supply belongs there, he said, while the specialty organic shops provide depth, variety, and advice. Dennree has not observed a decline in customer numbers or a simple redistribution of market share. Nossol also sees a lack of nutritional knowledge as a challenge: the general education level worries him. At the same time, he emphasized that high prices or low incomes aren’t the core issue – even students shop at their organic market.
Conventional Retail: Still Not Ready for Organic
Theresia Quint, Managing Director of three EDEKA stores (with approx. 30% organic share) and Chair of the Board of Bioland Processing & Trade, believes conventional grocery retail still has a lot of catching up to do. Organic works differently – and often lacks the structures and understanding it requires. Treating organic like conventional products risks eroding consumer trust. Her conclusion: the conventional retail sector must learn to think and act differently when it comes to organic.
True Prices, Real Transformation
On the topic of true food costs, there was strong consensus among the panel. Professor Stephan Rüschen of the Baden-Württemberg Cooperative State University called on policymakers to incorporate environmental externalities into pricing and reduce taxes on organic products – e.g., by lowering VAT. If external costs were factored in, he argued, organic would be relatively cheaper – creating a fairer, more sustainable pricing system. His stark summary: “We’ve known since 1985 that we’re heading toward disaster.” Small steps are not enough – drastic change is needed.
Quint agreed, saying consumers must become more aware of their influence. Erbe added it’s “insane” that the most future-proof products are often the most expensive. She quoted Ursula von der Leyen: “We have to give nature a price.”
The audience strongly supported the thesis that “Retail has the greatest power to transform the food system.” The retail representatives themselves acknowledged this responsibility.
Finally, the perspective switch revealed a surprising level of consensus: all retail sectors – discount, drugstores, conventional supermarkets, and organic specialty retailers – are needed to ensure the continued growth of organic.
This article was first published in German, in its original version on biohandel.de.
Author
