Dive Brief:
- Organic Grains LLC has debuted Organicgrains.com, an online site offering freshly milled-to-order flour for $9.99 to $13.99 per pound, according to a company statement. The company is charging a flat $4.99 shipping rate for deliveries in the contiguous U.S., regardless of order size.
- The site features traditional, ancient and sprouted grains, along with a variety of flours. Some are already milled in a steel mill, while the milled-to-order flour — eight different types — is milled with stones. The traditional grains are mainly sourced from the U.S. and Canada, while the ancient grains come from audited facilities in South America and India. Organic Grains noted that it does not source any products from China.
- According to company director Tim Devey, Organic Grains is committed to providing healthy, organic grains and flours to customers. "Grains are the unsung heroes of the past and of the future, and we want to get their story out there. Most people aren't familiar with all the grains that have been staples around the world for millennia, many of which are high in protein, fiber and even omega-3s. It's time all those grains were brought together in one place," he said in the statement.
Dive Insight:
Organic Grains said it decided to launch the site after noticing how often consumers looking for organic grains had to travel from store to store to find them.
The company is also betting that customers want fresher grain and flour products, noting that traditional flour sold in grocery stores typically has been sitting on store shelves for weeks or months — and sometimes up to a year — before reaching consumers.
While the company said it produces some of the freshest organic flour out there and delivers it direct to consumers, it remains to be seen whether the public will prefer that quality and convenience over the much lower prices for already-milled organic flour from companies like Bob's Red Mill, Arrowhead Mills and King Arthur Flour.
Being the first to offer organic grains and milled-to-order flour online with a relatively low flat-rate delivery charge may merely be a marketing strategy to help differentiate Organic Grains in the increasing crowded organic grain and flour market.
However, questions remain as to whether this is the right market to be getting into at this time. While recent studies show that flour consumption in the U.S. is expected to grow at a 2.3% CAGR, it could be focused on commercial products. Tortilla manufacturing has grown by 6% in one year, followed by 4.3% growth for dry pasta, dough and flour mixes. Meanwhile, the gluten-free market continues to grow, and has been projected to be worth $5.28 million by 2022. These trends could signal far lower demand among consumers for the type of niche products Organic Grains mills.
And while all flour doesn't contain gluten — Organic Grains offers freshly milled amaranth and may add more gluten-free options — many of today's consumers may not be willing to take the time to bake. Desire for convenience is rapidly changing the market and its options. Unilever's Stork brand created a pour-and-bake cake mix earlier this year, and Pinnacle's Duncan Hines has made a mix for "mug cakes," which are traditionally simple recipes with a few pantry staples mixed together and microwaved. If consumers are looking for this level of convenience, the market for Organic Grains may be extremely small.