Food giant Heinz-Wattie's is relaunching itself into the New Zealand organic food market, with lower wholesale price premiums than in an initial foray four years ago.
The company has introduced a range of frozen vegetables which it recommends that supermarkets sell at prices just 5 to 10 per centhigher than for conventionally grown foods.
But supermarket chains do not yet appear up to speed with the plan. Retail premiums yesterday ranged from 15 per cent at Pak'N Save to 23 per cent at Foodtown and Woolworths.
Organic frozen vegetables are sold in smaller packets than standard varieties, so Heinz-Wattie's recommends a common price to take account of the varying weights.
But Foodtown and Woolworths were yesterday both charging $1.99c for 450g to 475g packets of frozen organic corn, peas, carrots and mixed vegetables compared with $1.79c for the 500g standard range.
Pak'N Save in Mt Albert offered the organic range for $1.85c with no 500g pack of standard products available for comparison, although peas were selling at other Foodstuffs outlets for $1.69c.
Wattie's spokeswoman Sonya Mandeno said it could not dictate retail prices, but the new Earth's Best range still worked out cheaper than frozen vegetables offered four years ago for at least 25 per cent more than conventional varieties.
The company has been selling large volumes of organic frozen foods to Japan and other export markets since the early 1990s but the earlier pitch to New Zealand consumers came unstuck over the higher prices and variable quality.
Supply was not consistent enough then, but this had been sorted out.
