Target Makes Big Push Into Natural, Organic Market (Whole Foods' Sweet Spot) With 'Made To Matter'

By Barbara Thau

With its new “Made to Matter,” collection, Target TGT -1.52% is making a bold bid for a bigger chunk of the health and wellness market — and looking to siphon market share from the Whole Foods of the world.

At the Target Studio in Manhattan, executives from the cheap-chic discounter previewed “Made to Matter  —Handpicked By Target,” the 120-SKU line of natural, organic and sustainable products from 17 of the biggest brands in the space, such as Method cleaning products, Chobani Greek yogurt and Burt’s Bees health and beauty products.

Made to Matter holds “big” sales potential for Target, as natural, organic and sustainable products are growing at a 15% to 20% clip at the chain, outpacing the 10% industry average, said Kathy Tesija, executive vice president of merchandising and supply chain, during the meeting.

Method is one of 17 companies partnering with Target on its new “Made to Matter —Handpicked By Target” line of sustainable, organic and natural products.

Most of Target’s shoppers — 97% — already buy at least some natural, organic or sustainable products at the chain, she said.

The line is rolling out now to all of Target’s 1,754 stores, and reflects an unusual collaboration between the brands’ founders and CEOs, or,“social entrepreneurs.”

The name, merchandising and marketing concept behind Made to Matter, which includes grocery, healthcare and household products, as well as baby, beauty and personal care items, was hatched during a series of retreats where the 17 brand leaders gathered for brainstorming sessions.

That co-mingling of competitors turned out to be quite natural, Eric Ryan, co-founder of Method Products, told Forbes. “We’re wired the same way — social entrepreneurs on a social mission … We’re learning from each other.”

The pressure is on for national retailers to practice conscience capitalism, as consumers are increasingly voting with their dollars, favoring stores whose operating practices and products reflect some sort of social good.

Target shoppers will come to recognize the “Made to Matter” seal in the retailer’s stores and in its advertising messages as shorthand for products “that are better for you and your family,” said Jeffrey Jones, executive vice president and chief marketing officer.

The line includes new products and items that will be exclusive to the chain for six months.

Target says Made to Matter will be a launching pad for merchandise that reimagines an everyday product via a new healthy, organic or sustainable lens, such as the debut this month of the first bleach-free cotton baby diaper from Seventh Generation, and what Method calls the first-ever non-aerosol air freshener that is powered by nothing but air, which rolls out in August.

For Method, which has been working with Target since 2003, the collaboration marks a big business deal with the chain: The company is now building its first production facility in Chicago’s inner city.

“It’s the partnership with Target that brings the scale,” Ryan said.

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