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.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.