Iceland's organic gamble turns sour

Food retailer Iceland saw sales slump over the Christmas period partly because of its decision to focus on organic foods.

Food retailer Iceland saw sales slump over the Christmas period partly because of its decision to focus on organic foods.

Shares in the company fell sharply on the back of the news, which showed that sales had declined by 1.5 per cent in the second half of the year, as well as falling significantly over the four weeks to December 29.

Iceland blamed the decline on reductions in in-store promotions as well as the high-profile switch to organic food.

The company said that sales of organic products "had not matched the company's expectations" and that a review of the policy was underway.