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Organic products are becoming increasingly important in Aldi‘s range, which is upsetting the organic market: the German discounter is worrying other players with its rock-bottom prices.
Market leader
The discounter’s total organic range currently consists of some 300 products, and the chain has managed to become market leader in the organic segment in Germany. Recently, Aldi made a deal with Schneekoppe to get brands from that manufacturer of organic products on the discounter’s shelves. That move turned out to be a major success, partly due to the personal endorsement of former football player Philipp Lahm. He has always been hugely popular in Germany and he became the owner of Schneekoppe in 2018.
“Aldi strikes a double blow,” says Martin Fassnacht of the WHU Business School: “The discounter enjoys the positive image of Philipp Lahm, and simultaneously, the chain strengthens its organic range with the Schneekoppe brand.”
Dismay
The fact that the brand is being sold at Aldi does cause some commotion on the organic market, because the chain is selling the organic products at significantly lowered prices as well and offers discounts of up to 30 %. The underlying tactic is clear: Aldi wants to attract organic buyers, hoping that they will put some other things into their shopping carts alongside the advertised organic products.
Many manufacturers and sellers of organic food are dismayed about these recent developments, fearful of raised prices due to resource scarcity. Aldi’s aggressive approach could fan the flames of the price war even further.
