Natural Grocers Wins Appeal Against USDA Bioengineered Food Disclosure Rules
A federal appeals court has ruled in favor of Natural Grocers, the Center for Food Safety, and other plaintiffs challenging U.S. Department of Agriculture rules under the Bioengineered Food Disclosure Standard Act. Natural Grocers led the lawsuit to uphold consumers' right to clear, accurate and easily accessible information about their food. The decision overturns three major loopholes that plaintiffs argued would have kept consumers in the dark: GMO vs. Bioengineered: Retailers and brands may use the name "GMO," which consumers widely recognize. Previous USDA rules focused on the exclusive use of "bioengineered," a term that plaintiffs argued was confusing and infringed on free speech rights. QR Codes Are Not Enough: The court rejected rules allowing companies to rely solely on QR codes or text messages for disclosure. Natural Grocers argued that not all consumers have smartphones or reliable internet access. The ruling requires companies to provide clear, on-package information accessible to everyone. All Ingredients Must Be Labeled: The court found the USDA was wrong to exempt highly processed foods, such as oils and sugars, from labeling. Even if altered genes are undetectable in the final product, the ingredients still originate from bioengineered crops. The USDA must correct this in their next rulemaking.
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- New Store Opening: Natural Grocers plans to open its first store in Lake Geneva, Wisconsin, in spring 2026, marking a significant milestone for the retailer and expected to attract local consumers while enhancing brand presence.
- Community Engagement Events: Ahead of the store opening, Natural Grocers will host a Community Meet-and-Greet and Hiring Event from February 17 to 19, providing opportunities for attendees to learn about the company's history, values, and job openings, thereby strengthening ties with the local community.
- Job Positions and Salaries: The hiring event will offer various positions, including Store Manager with an annual salary of $79,000 and Assistant Store Manager at $59,000, demonstrating the company's commitment to attracting and retaining talent in a competitive labor market.
- Employee Benefits and Culture: Natural Grocers emphasizes employee welfare by offering competitive pay, birthday bonuses, and discounts of up to 30%, reflecting the company's dedication to its workforce and aiming to enhance employee satisfaction and loyalty.
- New Store Opening: Natural Grocers plans to open its first store in Lake Geneva, Wisconsin, in spring 2026, marking a significant milestone for the retailer and expected to attract local consumers while enhancing brand visibility.
- Community Engagement: The new store will focus on creating a welcoming shopping atmosphere, emphasizing quality and community involvement, aiming to meet the demand for organic and natural foods among Lake Geneva residents, thereby increasing customer loyalty.
- Hiring Event: Natural Grocers will host a community meet-and-greet and hiring event from February 17 to 19, aiming to attract local talent to support the new store's operations and promote local employment.
- Market Expansion: This opening not only represents Natural Grocers' debut in Wisconsin but also reflects its strategic expansion nationwide, aiming to further solidify its leadership position in the organic and natural food retail market.
- Sales Growth Overview: Natural Grocers reported Q1 net sales of $335.6 million, reflecting a 1.6% year-over-year increase, with daily average comparable store sales rising 1.7%, indicating resilience in a cautious retail environment while maintaining full-year guidance.
- Profitability Insights: Diluted earnings per share grew 14% to $0.49, and operating income increased 9.7% to $14.6 million; however, gross margin declined by 40 basis points to 29.5% due to inventory shrink, yet management remains confident in long-term profitability.
- Expansion Plans: The company aims to open 6 to 8 new stores in fiscal 2026, targeting an annual new store growth rate of 4% to 5%, demonstrating its commitment to expanding market share despite cautious consumer spending trends.
- Consumer Behavior Insights: Management noted that income-constrained consumers are pulling back on spending, impacting sales performance; however, strong growth among {N}power Rewards Program members highlights the company's competitive advantage in customer loyalty.
- Earnings Highlights: Natural Grocers reported a Q1 GAAP EPS of $0.49, with revenue reaching $335.6 million, reflecting a modest year-over-year growth of 1.6%, indicating the company's resilience in a stable market.
- Dividend Declaration: The company declared a dividend of $0.15 per share, showcasing its ongoing cash flow and commitment to shareholder returns, which bolsters investor confidence.
- Market Outlook: Natural Grocers' 2026 guidance reflects cautious optimism; despite a downgrade to a hold rating, the company is actively seeking opportunities for market expansion.
- Retail Award Recognition: The company won a key retail award, highlighting its increased recognition within the industry, which may lay the groundwork for future growth and brand influence.
- Event Dates: Natural Grocers will host its Celebrate Iowa Day event from February 8 to 10, offering all {N}power® members a free reusable tote bag and a $5-off coupon, aimed at enhancing customer engagement and brand loyalty.
- Store Expansion Journey: Since opening its first store in Iowa in 2016, Natural Grocers now operates six locations across the state, including major cities like Clive, Davenport, and Dubuque, showcasing its steady growth and integration into the local community.
- Employee Welfare Commitment: With over 125 crew members employed in Iowa, Natural Grocers is dedicated to enhancing employees' physical, emotional, and financial well-being through free nutrition education programs and excellent benefits, reflecting the company's commitment to staff welfare.
- Customer Rewards Program: The {N}power membership program offers exclusive discounts and reward points to customers, encouraging more consumers to engage and adopt a healthy lifestyle, thereby driving sales growth and increasing market share for the company.
- Iowa Day Celebration: Natural Grocers will host a Celebrate Iowa Day event from February 8 to 10, offering all {N}power® members a free reusable shopping bag and a $5-off coupon, aimed at enhancing customer loyalty and boosting sales.
- Store Expansion and Community Impact: Since opening its first store in Iowa in 2016, Natural Grocers now operates six locations in the state, serving northeastern communities and demonstrating the company's commitment to the local market.
- Employee Benefits and Development: Natural Grocers employs over 125 crew members in Iowa, focusing on enhancing their physical, emotional, and financial well-being through free nutrition education and excellent benefits, which improves employee satisfaction and retention.
- Customer Rewards Program: The {N}power membership program offers exclusive discounts and reward points to customers, encouraging more consumer participation and enhancing the shopping experience, thereby driving overall company performance.








