Organic Growth
By Elaine Pofeldt

(FORTUNE Small Business) – PBM PRODUCTS, based in Gordonsville, Va., made its name as a purveyor of low-cost baby formula. But in February it launched Parent's Choice Organic, the first nationally available organic baby formula. Thanks to an exclusive deal with Wal-Mart, CEO Paul Manning expects PBM's sales to grow around 25% this year, to close to $200 million.

FORMULA FOR SUCCESS: PBM's first big break came in 1998, when the one-year-old company won the contract to create Wal-Mart's house-brand baby formula. But the company took a big risk to move into the organic market: purchasing a state-of-the-art plant in Georgia, Vt., that industry sources value at about $100 million. Ten months later Wal-Mart agreed to act as the exclusive distributor for Parent's Choice Organic products.

BABY BOOM: Giant competitor Abbott introduced an organic version of Similac in October, but Parent's Choice has an edge. Thanks to a lean staff and its ability to piggyback on Wal-Mart's marketing, PBM says it can charge about 20% less than major brands can for even non-organic formula.

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.