The U.S. organic foods market has exploded in the past ten years. Now a $15-billion industry, organic foods have moved past specialty manufacturers and Whole Foods Markets to national manufacturers and retailers. Recently Kellogg introduced organic versions of three major cereal brands, Including Raisin Bran. Rice Krispies, and Frosted Mini Wheats As many other food manufacturers look to the organic market they are also keeping a keen eye on the U.S. government's strict standards on the use of the word "organic.' Regulations state that foods labeled as "organic" must consist of at least 95 percent organically produced ingredients, and those labeled made with organic Ingredients must contain at least 70 percent organic ingredients. If a product contains loss than 70 percent organic ingredients, the term organic cannot be used anywhere on the front of the package. In addition, operations that process organic food must be certified by one of 60 USDA-accredited certifying agents. A civil penalty of up to $10,000 will be levled for any person who knowingly mislabels a product

1. Explain the product fine reasoning behind Kellogg's adding organic products.

2. Do you think that average consumers knew the differences in organic label designations? Do you?

3. General Mills markets organic cereals under the Cascadian Farm brand name. Compare its brand development strategy for organic cereals to Kellogg's strategy.