The organic and local grocery trend has been gaining popularity across the nation and right here in Indiana.
Larger stores, such as Kroger, are offering more locally grown products, and specialized stores are popping up across the state - and that's making it hard for smaller organizations to keep up.
That struggle is especially pronounced in Bloomington, where a sharp drop in business has caused Bloomingfoods to lay off more than a dozen administrative staff members and undergo major structural changes.
The shelves at Bloomingfoods are lined with products covered in labels – organic, local, and all-natural to name a few.
The local food co-operative has been around since the 70s and caters to a community that values health food.
"I think because Bloomingfoods did such a good job educating the public and people want natural foods, they want whole foods, they want organic, local foods," says Bloomingfoods board member Dedaimia Whitney.
All of this is going to present a challenge to the co-op to stay open.
Lately, competition in the natural foods market has forced Bloomingfoods to re-evaluate how business is done.
Whole Foods is making plans to move in on the city's east side, and Indianapolis-based Green BEAN natural food delivery came to Bloomington this past month.
The biggest competition so far seems to be Colorado-based company Lucky's Market, which recently opened a store on the south side.
Since Lucky's opened, Bloomingfoods' business has dropped 20 percent.
"So Lucky's has opened, Kroger is already doing a pretty good job expanding their natural foods selection," Whitney says. "We have advance warning that Whole Foods might be coming in. We might have a Fresh Thyme coming in, so all of this is going to present a challenge to the co-op to stay open."
Despite the setbacks for some businesses, state agriculture officials say they're still confident in the local foods market.
"This year when I met with some key executives with some of the larger retailers, they're telling me that their organic side of the business will more than double next year," says David King, who manages the Indiana Grown program.
Starting next month, the state-funded program will amp up promotion of local produce by rebranding it as "Indiana Grown."
King believes the high demand for organic and natural foods is more than just a trend.
Organic is not a fad."
"Organic is not a fad," he says. "We've seen some fads in the local industry. We saw some carb fads - low-carb, high-carb fads - but organic has been so closely tied to a lifestyle, so I project that it's going to continue to grow probably for the next 10 years."
That prediction is what's causing other sellers to get into the market.
Food co-ops are being formed in Columbus, Richmond and Terre Haute.
"We think Terre Haute is in the right spot to band together and create a food co-op for everyone," says Lorrie Heber, the vice president of Terre Foods' board of directors.
The Terre Foods co-op has no storefront yet, and board members have been working since 2009 to get Terre Foods up and running - but Heber says they're close.
Terre Foods organizers say they aren't worried about competition; Though, they recognize keeping a hold on the local foods market won't be easy.
Several years down the road, they could find themselves asking the same question Bloomingfoods management is asking now.
"What can we offer that other grocery stores can't? I think it's the co-operative business model - the fact that the owners of the co-op help shape its policy and its decision making," Whitney says. "That's what appeals to me about it. I want to have some direct influence over my own food supply, and the co-op is a way for me to do it."
Whether that's enough depends on the customer. Some customers say they're loyal to Bloomingfoods.
"I like it because it's small," Bloomingfoods member-owner Jaqueline Guntzel says. "I don't like bigger stores. The new Kroger feels like an airport to me."
Others say where they shop will depend on more tangible factors.
"Honestly, I do prefer Lucky's over Bloomingfoods," says Bloomington resident Michael Wissig. "It's a little bit cheaper, and there's a bigger selection, but I'm a vegetarian, and they have a lot more vegetarian options and they're better than Kroger."
Bloomingfoods is currently operating under an acting general manager from National Co-op Grocers as it re-organizes.
A public meeting for Bloomingfoods will take place Monday evening at the convention center downtown. All member-owners will be invited and the acting general manager will be there to answer questions.
