Markets
KR

Costco Partners with Amira to Boost Organic Food Business - Analyst Blog

Warehouse retailer Costco Wholesale CorporationCOST has partnered with Amira Nature Foods Ltd ANFI to sell the latter's organic products at its stores in Arizona, Nevada, California, Colorado, New Mexico and Utah.

The above-mentioned Costco stores will sell 20 lbs bag of Amira Organic Sona Masoori Rice, a low starch and lightweight variety of rice and part of Amira Nature Foods' latest organic products range. Amira Nature Foods is a Dubai based company that sells basmati rice along with other organic rice products.

Americans are becoming increasingly health conscious these days and as a result, demand for organic food has shot up considerably. Like other retailers, Costco too has jumped on the bandwagon to make the most of this opportunity presented by the growing organic food industry.

Consumers now expect better quality food and a range of diet options at their local grocery store and are ready to shell out extra for it. Natural and organic foods aren't just a fad, as some predicted - they're the new standard.

Moreover, the best part about the food industry is that, while it is relatively less vulnerable to adverse economic conditions, it will surely step up during sustained economic recovery when higher disposable income automatically increases the demand for food. Hence, in the current scenario of a rebounding economy with falling unemployment rate and gasoline prices along with improving consumer spending, this industry displays much potential.

Apart from Costco, retailers like The Kroger Co. KR and Wal-Mart Stores Inc. WMT are also developing their organic and natural food business.

Currently, Costco carries a Zacks Rank #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

COSTCO WHOLE CP (COST): Free Stock Analysis Report

AMIRA NATURE FD (ANFI): Free Stock Analysis Report

WAL-MART STORES (WMT): Free Stock Analysis Report

KROGER CO (KR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

KR COST WMT

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More