Things to Watch For in 2001

Supermarkets Going Natural

Consumers should expect a wave of new organic products and other natural foods on supermarket shelves next year. Noting the accelerating popularity of soy milk, nutrition bars and organic produce--and their fatter profit margins--supermarkets are opening separate natural-foods sections to cater to health-conscious baby boomers and Gen-Xers.

Sales of organic products--from milk to eggs to produce and processed foods--have been growing at a 20% clip annually over the last decade, mainly in natural-foods stores. But grocery chains say they plan to boost their stock and give natural-foods chains a run for their money.

New universal organic standards just released by the federal government should ease the transition of organic products to conventional supermarkets. Big food manufacturers such as Kellogg Co., General Mills Inc. and H.J. Heinz Co. already have made investments in natural-foods companies, and analysts expect more of these products to debut in supermarkets soon.

Food companies remain mum about their plans for introducing new products. However, analysts say more healthy convenience foods, such as organic frozen dinners, soon could be showing up alongside the Lean Cuisine meals in the frozen-foods case.