CBD Products Next Big Thing at Expo West

For Presence Marketing Newsletter, April 2018
By Steven Hoffman

Despite an uncertain regulatory environment, products containing agricultural hemp extract rich in CBD, or cannabinoid compounds, were featured throughout the exhibit halls at Natural Products Expo West, appearing in botanical supplements, body care products, in foods – and in new product offerings from leading national brands.

In addition, if you came late to Expo West’s first-ever CBD Summit, a half-day workshop held the day before the exhibit halls opened, you were out of luck. Attendance was standing room only and people were listening from outside the door.

“This is the hottest product in the history of natural products, and there’s an opportunity for retailers to really sink their teeth into this whole hemp category,” Josh Hendrix, director of business development for Las Vegas-based extract company CV Sciences Inc., told the approximately 500 people attending the CBD summit.

Josh’s statement may be an exaggeration, however, industrial hemp sales totaled $688 million in 2016, according to Hemp Business Journal, and are projected to grow to nearly $2 billion in sales by 2020, led by hemp food, textiles, body care, and CBD products. Independent natural products retailers are leading that growth, with sales of CBD consumer products up over 1,700%, according to 2017 SPINS data. Sales of CBD products in the U.S. are projected to reach $646 million by 2022, according to Hemp Business Journal, with 28 percent of those sales occurring in the natural and specialty channel.

In addition, nearly three-dozen states have passed legislation in recent years allowing research or commercial production of agricultural or industrial hemp, the non-psychoactive cousin to marijuana.

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Bodycare brand leaders ShiKai and Andalou Naturals were among exhibitors introducing CBD products at Natural Products Expo West.

“It’s like anything that’s innovative and on-trend and disruptive — it tends to start in health foods stores, whether it’s pomegranate or plant protein or almond milk or CBD,” Todd Runestad, Ingredients and Supplements Editor for New Hope Network, told Alicia Wallace of the Cannabist in response to the sold-out CBD Summit at Expo West.

Complicating sales of hemp-derived CBD products is the fact that the U.S. Drug Enforcement Administration (DEA) has taken the position that CBD is illegal. The DEA created confusion in December 2016 when it filed a rule notice for the creation of a Controlled Substances Code Number for “marihuana extracts.” As the rule was finalized a month later, it met opposition by the industrial hemp industry, which filed a petition in the 9th U.S. Circuit Court of Appeals. The hemp industry’s lawyers, citing a 2004 circuit court ruling on agricultural hemp and the 2014 Farm Bill, have asserted that the DEA made a scheduling action against hemp and hemp-derived extracts and created a rule that has resulted in illegal seizures of hemp products. The court is not expected to rule on that case until later this year, the Cannabist reported.

The DEA rule temporarily shook the confidence of retailers, manufacturers and Expo West organizers in CBD products, said Runestad. However, after the Hemp Industries Association’s case against the DEA in 2017 and last year’s decision by natural and specialty retailer Lucky’s Market to carry lines of hemp extracts nationwide, Expo West trade show officials allowed hemp-derived extracts to be exhibited at the show, he told the Cannabist.

“That opened the floodgates,” Runestad said.

Among two dozen hemp extract companies exhibiting at Expo West, including CV Sciences and Ananda Hemp, other hemp/CBD product highlights included the introduction of Weller Snacks, a Boulder-based startup launching the first snack food line infused with CBD-rich hemp extract; Colorado Hemp Honey, a CBD rich honey; ShiKai CBD creams and lotions; and a new line of Hemp Stem Cell personal care products from Andalou Naturals.

When the smoke clears in the regulatory arena, given the rapidly growing popularity of CBD products, we should soon see the introduction of CBD product offerings from other major dietary supplement and wellness brands, as well.

Learn about the world of agricultural and industrial hemp at the 5th Annual NoCo Hemp Expo, April 6-7, 2018, in Loveland, CO. Colorado has become an epicenter of the hemp industry, and NoCo5 will draw 5,000 – 7,000 visitors and feature nearly 150 exhibits, making it the world’s largest trade show dedicated to industrial hemp. Learn more: www.nocohempexpo.com. 

Local Economies Benefit in Organic Agriculture “Hotspots”

While supporting local and organically grown has been on the rise, researchers at Penn State University set out to assess whether or not organic agriculture has a positive impact on local economies across the U.S.

Their findings, “Economic Impact of Organic Agriculture Hotspots in the U.S.,” published in the February 2018 issue of Renewable Agriculture and Food Systems by Cambridge University Press, concluded that organic agricultural hotspots, e.g., clusters of counties with positively correlated high numbers of organic operations, lead to lower county-level poverty rates and a higher median household income. The effect, say the study’s authors, appears to be specifically due to clusters of organic operations (whether farming/producing, processing, wholesaling, etc.), since the same effect is not seen with general agricultural hotspots. In other words, the researchers found that the countywide economic benefits are due to organic agriculture in particular, and not agriculture in general.

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Organic Operations Hotspots: Red: Hotspot; Blue: Coldspot; Grey: Not Significant. Source:  Economic Impact of Organic Agriculture Hotspots in the U.S., February 2018.

Using spatial statistics to identify hotspots across the U.S. of organic operations, the researchers compared economic indicators to general agricultural hotspots “to confirm that the benefits associated with organic production hotspots were, in fact, due to the organic component,” said the study’s authors, Julia Marasteanu and Edward Jaenicke of Pennsylvania State University’s Department of Agricultural Economics, Sociology and Education.

“Our results show that organic hotspot membership leads to a lower county-level poverty rate and a higher median household income. A similar result is not found when investigating the impact of general agriculture hotspots,” said the researchers.

“These results provide strong motivation for considering hotspots of organic handling operations, which refers to middlemen such as processors, wholesalers and brokers, and hotspots of organic production to be local economic development tools, and may be of interest to policymakers whose objective is to promote rural development,” the authors concluded.

“Our results may incentivize policymakers to specifically focus on organic development, rather than the more general development of agriculture, as a means to promote economic growth in rural areas, and may further point them in the direction of not only encouraging the presence of organic operations, but of fostering the development of clusters or hotspots of these operations,” they added.

Download a .pdf of the report here: https://www.researchgate.net/publication/323151836_Economic_impact_of_organic_agriculture_hotspots_in_the_United_States

General Mills is Transitioning 53 Square Miles of South Dakota Farmland to Organic

General Mills announced in early March it is converting 34,000 acres – more than 53 square miles – in central South Dakota to certified organic to supply the organic wheat it needs for its popular Annie’s Macaroni & Cheese line. The multinational food company is creating South Dakota’s largest organic crop farm to help ensure enough organic ingredients to meet the growing consumer demand for organic worldwide.

With only 1 percent of all U.S. farmland dedicated to certified organic production, this is a big deal, and part of a trend where food companies are taking a more direct interest in farming to help secure organic ingredient supplies as demand continues to exceed production. General Mills is partnering with Midwestern BioAg, a firm that helps conventional farmers transition to organic, to convert Gunsmoke Farms, a 34,000-acre wheat farm in Pierre, SD, in fertile lands near the Missouri River.

“The Gunsmoke project is an opportunity to use our scale to help convert large areas of acreage to organic as one of our tools to create a more stable supply chain. We also see it as a way to support our growing portfolio of organic businesses,” Beth Robertson-Martin, organic sourcing lead at General Mills, told The New Food Economy.

General Mills, the third largest producer of organic and natural foods, reported on March 21 that its natural and organic products portfolio was a bright spot amid otherwise disappointing third quarter results. General Mills reported net sales of $15.6 billion in FY2017. The company’s natural and organic brands include Annie’s, Cascadian Farm, Muir Glen, Food Should Taste Good, Immaculate Baking, Liberté, Mountain High, Good Natured Soup and EPIC Provisions. General Mills hopes to reach $1.5 billion in sales in 2020 for its natural and organic brands. Since 2005, General Mills’ natural and organic category has grown an average of 10 percent per year, reports Sustainable Food News.

Companies including Nature’s Path Foods, one of North America’s largest family held organic brands, and Pacific Foods also have invested in or purchased organic farmland in order to ensure supplies. Nature’s Path sources much of its organic grains including oats, wheat, heritage grains, hemp, legumes and flax from the Canadian Prairie and the U.S. Midwest, where in the past few years it has purchased thousands of acres of pristine organic farmland.

“We started growing [organic] butternut squash because of availability, Chuck Eggert, founder of Pacific Foods, told FoodNavigator-USA in 2016. “We’ve been doing this for almost 30 years, and back then, even if you wanted to do an organic product there [weren’t] enough supplies around. So we started growing our own and then we started encouraging others to do it.” Campbell Soup purchased Pacific Foods in 2017 for $700 million in cash.

“As an independent, family-run company, we have the freedom to put our money where our heart is, in support of sustainable agriculture – beyond just making organic products, Arran Stephens, co-founder and co-CEO of Nature’s Path, told FoodNavigator-USA. “We live by the mantra of ‘always leave the earth better than you found it.’”

Steven Hoffman is Managing Director of Compass Natural, providing brand marketing, PR, social media, and strategic business development services to natural, organic and sustainable products businesses. Contact steve@compassnaturalmarketing.com.

Survey Says: 80 Percent of Shoppers Prefer Independent Stores to Online

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For Presence Marketing Newsletter, March 2018
By Steven Hoffman

Independent grocers remain well positioned to compete with larger chains and online grocery alternatives in today’s price sensitive retail environment, according to the 2018 National Grocery Shoppers Survey conducted by the National Grocers Association (NGA).

According to the survey published in February 2018, 64 percent of independent shoppers are very or extremely satisfied with their local supermarket, and 80 percent of shoppers prefer their local store to an online alternative. Additionally, independent grocers are strongly associated with friendly employees, quality meats and produce, and easy-to-navigate layout, NGA reported.

“There’s no doubt that the supermarket industry is rapidly changing, either because of the growth of e-commerce or the explosion of new formats, along with shifting consumer trends. However, independent grocers are nimble enough to quickly overcome obstacles and with strong ties to their communities, they know what consumers want and need,” said Peter Larkin, president and CEO of NGA in a release.

The National Survey of Grocery Shoppers was conducted online within the U.S. by The Harris Poll on behalf of NGA among 3,008 adults, 18 and over between November 13 and December 8, 2017, using a sample from The Harris Poll Panel who self identified themselves as independent shoppers. Additional analytics were derived from Nielsen’s panel-based Independent Grocer shopper database of 44,000 consumers. Loyal independent shoppers are those that spend 50% or more of their reported shopping at an independent grocery store.

“In today’s omni-channel retail environment, independent grocers maintain a unique and strong connection with their shoppers,” said Jeanne Danubio, EVP of Retail Lead Markets at Nielsen. “Complementing the findings of this year’s survey, Nielsen’s new independent buyer group panel data shows that a loyal independent grocery shopper spends more than 40% more in grocery than the average shopper. It will be critical for independent grocers to maintain the quality and personal connections that keep these valuable consumers coming back to the independent store,” Danubio added.

“While there has always been an element of whistling-past-the-graveyard reverence to industry pronouncements about independents, it will always be true that a strong, well-run, well-merchandised and technically savvy local operator can effectively compete with big chains and online giants. Supermarket chains and online merchants may seek to replicate personalization using their loyalty program data and algorithms, but independent grocers offer the real thing,” note the editors of Food Dive.

Among the survey’s key findings:

E-Commerce:  Of those who shop for groceries online, 68 percent do it in addition to shopping in stores, with 75 percent of their purchases made at the store. NGA said convenience is the main impetus for shopping for groceries online, while the biggest obstacles to online grocery shopping are the consumers' need to see the actual physical items and their concerns about freshness. In addition, only 11 percent of those surveyed shop online, and they prefer home delivery to store pickup by a wide margin, 76 percent to 39 percent. Of products bought online, packaged food products are the most commonly purchased. General merchandise and health and beauty care items rank second, followed by cleaning products. Also, 27 percent of shoppers surveyed said they would increase their online grocery shopping over the next five years.

Health and Wellness:  According to the NGA survey, 63 percent of independent grocery shoppers expect grocery stores to support their healthier lifestyles, and provide more help with cooking instructions, reading nutritional labels, and guidance on foods with good nutritional value. When considering where to shop, these shoppers value low prices, quality meats and produce, friendly staff, cleanliness, and locally grown produce. Shoppers were almost split on where healthy foods should be displayed, with 58 percent saying that healthy food alternatives should be shelved alongside other food items, compared to 42 percent who think healthy food should be in its own section, separate from main aisles.

Areas Shoppers Value Most:  When considering where to shop for groceries, independent shoppers value low prices, quality meats and produce, friendly staff, cleanliness, and offering locally grown produce and other packaged goods. Almost 7 in 10 shoppers (67%) have no plans to switch from their independent store.

Areas of Needed Improvement:  The survey noted that independent supermarket operators need to upgrade their technology offerings, including improving their website usability, with consistent pricing online and offline, the same products online and in-store, and providing an easy-to-use smart phone app.

Food Waste Goes Bananas

Worldwide, a staggering 50% of all food that is produced goes uneaten and wasted, and the world’s most popular fruit, the banana, is also the world’s most wasted fruit, says a new study conducted by Karlstad University in Sweden. In all, seven fruits and vegetables – bananas, apples, tomatoes, lettuce, sweet peppers, pears and grapes – represented nearly half of the total fresh produce waste measured.

While consumers are behind most of the waste, as it occurs after food is brought home, grocery stores, too, throw away huge amounts, especially bread, fresh fruit and vegetables. As such, the researchers directly measured the amount of waste in the produce sections of three major supermarkets in Sweden. They also extrapolated the climate impact and financial cost of the wastage.

Consumers throughout the world prefer to eat bananas fresh and raw, and customers generally prefer a firmer banana—either completely yellow or with a tinge of green, reports Modern Farmer, meaning that perfectly edible bananas that don’t meet these standards are continuously thrown away by supermarkets that can’t sell them. According to the Swedish study, the banana provides the most food waste in terms of weight and environmental impact.

The researchers also looked specifically at the economic value of supermarket waste—not just what’s thrown out in terms of sheer weight. In terms of money lost by the business due to food waste, the leading culprits are cut greens, which go bad quickly – specifically, lettuces and fresh herbs. Lettuce alone amounted to 17 percent of the costs of wasted fruit and vegetables, the researchers found.

The researchers suggest that a focus on these seven products can help reduce economic losses in supermarkets. 

“Fruit, vegetables and bread are the biggest problem items regarding food waste in stores. These products are not so easy to redistribute because they have to get out to people while they are fresh,” Anne Marie Schrøder, chief spokeswoman for Matvett, a Norwegian nonprofit organization dedicated to reducing food waste, told ScienceNordic’s Norwegian partner forskning.no in response to the report. “Fortunately, efforts to reduce waste are in the interests of the environment and the stores. I am absolutely convinced it’s feasible to turn things around,” she added.

“There are three reasons for why we need to reduce food waste. It is not profitable for the grocery sector or for society. Nor is it environmentally or climate friendly. And we could feed the starving people of the world with the food wasted globally. All food has a value and a sensible utilization of the resources is essential,” Schrøder said.

Resources for Jobs and Careers in Natural, Organic and Sustainable Products

At Compass Natural, a lot of folks ask us about resources for finding senior-level jobs and career opportunities in the natural, organic, and eco-friendly products market. As such, we compiled a blog of resources for finding jobs and careers in this rapidly growing market, in no particular order. However, we welcome your comments and suggestions to add to the list. Happy green job hunting!

·      Green Dream Jobs. You can search by level and region. Awesome resource presented by our friends at SustainableBusiness.com. www.sustainablebusiness.com/jobs/

·      Luke's Circle is a great resource for sales, marketing, management and executive level jobs in the Denver/Boulder region, created by our friend and colleague Luke Vernon. www.lukescircle.com

·      GreenBiz has a great sustainable jobs board. http://jobs.greenbiz.com

·      TreeHugger has green job listings. http://jobs.treehugger.com

·      Sustainable Industries posts green jobs across the country. http://sustainableindustries.com/jobs

·      Just Means job listings have a social mission and NGO focus. http://www.justmeans.com/alljobs

·      Natural and Organic Industry Careers and Resources. A good compendium of industry resources and job opportunities. http://www.naturalindustryjobs.com

·      Food Force posts career opportunities with natural, organic, specialty and conventional food companies and brand leaders. http://www.foodforce.com

·      The Green Jobs Network "empowers people seeking careers in sustainability and environmental responsibility to find jobs, career resources, and build their professional network." http://www.greenjobs.net

·      Naturally Boulder is another resource for job listings in the Boulder/Denver region. http://www.naturallyboulderproducts.com/news/#jobs

·      World Wide Opportunities on Organic Farms. Wanting a Peace Corps-like volunteer experience, but on an organic farm somewhere around the world where you can learn about organic agriculture? Feeling young and adventurous? Check out WWOOF. http://www.wwoof.org

·      Green Career Guide job thread. http://greencareerguide.jobthread.com

·      California Certified Organic Farmers, an excellent organization for organic producers, posts job listings. http://www.ccof.org/classifieds.php#emp

·      ReWork:  Founded in 2011 by alumni of the Unreasonable Institute in Boulder, ReWork helps people find careers in values-based, socially responsible and sustainable businesses. http://rework.jobs/talent

·      Project NOSH: Project NOSH covers the world of entrepreneurial food companies and services that are expanding rapidly due to interest in Natural, Organic, Sustainable, and Healthy (NOSH) products and businesses. Project NOSH helps food and beverage companies to find the right employees, and develop business success. http://www.projectnosh.com/jobs

·      VeganJobs.com is a free global vegan job and resume hub operated by vegans for vegans and plant-based/vegan-oriented businesses and organizations. www.veganjobs.com

·      Food+Tech Jobs:  Search for tech, business, design, sales, marketing, operations and PR jobs at leading food companies. https://jobs.foodtechconnect.com/

Steven Hoffman is Managing Director of Compass Natural, providing brand marketing, PR, social media, and strategic business development services to natural, organic and sustainable products businesses. Contact steve@compassnaturalmarketing.com.

 

 

 

 

Survey Says: 80 Percent of Shoppers Prefer Independent Stores to Online

Source: For Presence Marketing Newsletter, March 2018
Author: Steven Hoffman

Independent grocers remain well positioned to compete with larger chains and online grocery alternatives in today’s price sensitive retail environment, according to the 2018 National Grocery Shoppers Survey conducted by the National Grocers Association (NGA).

According to the survey published in February 2018, 64 percent of independent shoppers are very or extremely satisfied with their local supermarket, and 80 percent of shoppers prefer their local store to an online alternative. Additionally, independent grocers are strongly associated with friendly employees, quality meats and produce, and easy-to-navigate layout, NGA reported.

“There’s no doubt that the supermarket industry is rapidly changing, either because of the growth of e-commerce or the explosion of new formats, along with shifting consumer trends. However, independent grocers are nimble enough to quickly overcome obstacles and with strong ties to their communities, they know what consumers want and need,” said Peter Larkin, president and CEO of NGA in a release.

The National Survey of Grocery Shoppers was conducted online within the U.S. by The Harris Poll on behalf of NGA among 3,008 adults, 18 and over between November 13 and December 8, 2017, using a sample from The Harris Poll Panel who self identified themselves as independent shoppers. Additional analytics were derived from Nielsen’s panel-based Independent Grocer shopper database of 44,000 consumers. Loyal independent shoppers are those that spend 50% or more of their reported shopping at an independent grocery store.

“In today’s omni-channel retail environment, independent grocers maintain a unique and strong connection with their shoppers,” said Jeanne Danubio, EVP of Retail Lead Markets at Nielsen. Complementing the findings of this year’s survey, Nielsen’s new independent buyer group panel data shows that a loyal independent grocery shopper spends more than 40% more in grocery than the average shopper. It will be critical for independent grocers to maintain the quality and personal connections that keep these valuable consumers coming back to the independent store,” Danubio added.

“While there has always been an element of whistling-past-the-graveyard reverence to industry pronouncements about independents, it will always be true that a strong, well-run, well-merchandised and technically savvy local operator can effectively compete with big chains and online giants. Supermarket chains and online merchants may seek to replicate personalization using their loyalty program data and algorithms, but independent grocers offer the real thing,” note the editors of Food Dive.

Among the survey’s key findings:

E-Commerce:  Of those who shop for groceries online, 68 percent do it in addition to shopping in stores, with 75 percent of their purchases made at the store. NGA said convenience is the main impetus for shopping for groceries online, while the biggest obstacles to online grocery shopping are the consumers' need to see the actual physical items and their concerns about freshness. In addition, only 11 percent of those surveyed shop online, and they prefer home delivery to store pickup by a wide margin, 76 percent to 39 percent. Of products bought online, packaged food products are the most commonly purchased. General merchandise and health and beauty care items rank second, followed by cleaning products. Also, 27 percent of shoppers surveyed said they would increase their online grocery shopping over the next five years.

Health and Wellness:  According to the NGA survey, 63 percent of independent grocery shoppers expect grocery stores to support their healthier lifestyles, and provide more help with cooking instructions, reading nutritional labels, and guidance on foods with good nutritional value. When considering where to shop, these shoppers value low prices, quality meats and produce, friendly staff, cleanliness, and locally grown produce. Shoppers were almost split on where healthy foods should be displayed, with 58 percent saying that healthy food alternatives should be shelved alongside other food items, compared to 42 percent who think healthy food should be in its own section, separate from main aisles.

Areas Shoppers Value Most:  When considering where to shop for groceries, independent shoppers value low prices, quality meats and produce, friendly staff, cleanliness, and offering locally grown produce and other packaged goods. Almost 7 in 10 shoppers (67%) have no plans to switch from their independent store.

Areas of Needed Improvement:  The survey noted that independent supermarket operators need to upgrade their technology offerings, including improving their website usability, with consistent pricing online and offline, the same products online and in-store, and providing an easy-to-use smart phone app.

Food Waste Goes Bananas

Worldwide, a staggering 50% of all food that is produced goes uneaten and wasted, and the world’s most popular fruit, the banana, is also the world’s most wasted fruit, says a new study conducted by Karlstad University in Sweden. In all, seven fruits and vegetables – bananas, apples, tomatoes, lettuce, sweet peppers, pears and grapes – represented nearly half of the total fresh produce waste measured.

While consumers are behind most of the waste, as it occurs after food is brought home, grocery stores, too, throw away huge amounts, especially bread, fresh fruit and vegetables. As such, the researchers directly measured the amount of waste in the produce sections of three major supermarkets in Sweden. They also extrapolated the climate impact and financial cost of the wastage.

Consumers throughout the world prefer to eat bananas fresh and raw, and customers generally prefer a firmer banana—either completely yellow or with a tinge of green, reports Modern Farmer, meaning that perfectly edible bananas that don’t meet these standards are continuously thrown away by supermarkets that can’t sell them. According to the Swedish study, the banana provides the most food waste in terms of weight and environmental impact.

The researchers also looked specifically at the economic value of supermarket waste—not just what’s thrown out in terms of sheer weight. In terms of money lost by the business due to food waste, the leading culprits are cut greens, which go bad quickly – specifically, lettuces and fresh herbs. Lettuce alone amounted to 17 percent of the costs of wasted fruit and vegetables, the researchers found.

The researchers suggest that a focus on these seven products can help reduce economic losses in supermarkets. 

“Fruit, vegetables and bread are the biggest problem items regarding food waste in stores. These products are not so easy to redistribute because they have to get out to people while they are fresh,” Anne Marie Schrøder, chief spokeswoman for Matvett, a Norwegian nonprofit organization dedicated to reducing food waste, told ScienceNordic’s Norwegian partner forskning.no in response to the report. “Fortunately, efforts to reduce waste are in the interests of the environment and the stores. I am absolutely convinced it’s feasible to turn things around,” she added.

“There are three reasons for why we need to reduce food waste. It is not profitable for the grocery sector or for society. Nor is it environmentally or climate friendly. And we could feed the starving people of the world with the food wasted globally. All food has a value and a sensible utilization of the resources is essential,” Schrøder said.

World's Oceans Rise to Highest Temperatures Ever Recorded

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Source: For Presence Marketing Newsletter, February 2018
Author: Steven Hoffman

We all know what’s happening and no amount of denial or the squelching of science can alter the facts. Climate change is real, and it is either being caused by or exacerbated by the activities of humankind. Through our extraction and consumption of energy, housing and transportation, manufacturing practices, and how we produce our food and fiber, we are releasing massive amounts of carbon into the atmosphere, where it is heating the land…and the oceans.

We are certainly seeing the results on land, with increasing occurrences of major storms, hurricanes, wildfires, floods and mudslides, and a rash of other extreme weather events that are having its costs in human lives and in billions of dollars.

Now, a team of scientists from the Chinese Academy of Sciences’ Institute of Atmospheric Physics found that the upper 2,000 meters of the world’s oceans were far warmer in 2017 than the previous hottest year ever recorded in 2015. Analyzing ocean data collected over the past 50 years, a clear trend is emerging, say the researchers. All the world’s oceans are getting steadily warmer, with 2017 recorded as the hottest yet. And while the atmospheric temperature is more susceptible to year-to-year fluctuations, the ocean data shows the consistency with which planet Earth is heating up, the researchers claim.

The findings come on the heels of research conducted by the Global Carbon Project, a group of 76 scientists in 15 countries. Their findings, presented to the United Nations in November 2017, showed that greenhouse gas levels in the atmosphere have also risen to a record high in 2017, and they are still rising.

“The long-term warming trend driven by human activities continued unabated. The high ocean temperatures in recent years have occurred as greenhouse gas levels in the atmosphere have also risen, reaching record highs in 2017,” said the Chinese researchers in a report published in the upcoming March 2018 edition of Advances in Atmospheric Sciences.

“The ocean heat records are so impressive because they’re absolutely on a steady warming trend,” Robert Anderson, a geochemist at Columbia University, told VICE News. “People who point to pauses in global warming haven’t looked at the warming of the oceans.”

The Soil Solution

To cool the oceans, we must regenerate the earth, and in particular, the way we produce our food and fiber.

In addition to the disturbing ocean warming trends, industrial agriculture practices are contaminating our oceans with synthetic pesticides and nitrogen fertilizer runoff, leading to expanding dead zones. On top of that, unabated carbon emissions in the atmosphere are acidifying earth’s oceans, which threatens coral reefs, as well as the ocean’s phytoplankton populations – microscopic but critically important species that provide two-thirds of the planet’s oxygen, says John Roulac, founder of Nutiva and an outspoken advocate of regenerative agriculture, in a January 2017 EcoWatch commentary titled “Spaceship Earth, Your Main Oxygen Systems Are Collapsing.”

“At the current trajectory, in just a few decades there won't be much left alive in our oceans as the phytoplankton dies—all because of how we grow our food,” said Roulac. “If we don't immediately deal with the number one ‘enviro’ issue of the day, ocean acidification, humanity will not be around in 2100 to observe rising temperatures or oceans lapping over Wall Street and Silicon Valley. The good news is that we can cool both the planet and the seawater, while removing excess carbon from the sea, by regenerative agriculture—a solution literally under our feet!” Roulac added.

According to research from the Rodale Institute and others, the benefit of regenerative agriculture – where the focus is on building healthy, biologically active soils through the use of cover crops, multispecies livestock, crop diversity, and no-till or low-till agriculture, is that it can effectively draw carbon out of the atmosphere and put it back where it belongs: in healthy organic soils.

In fact, says Rodale, which has conducted more than 30 years of ongoing field research, regenerative, organic farming practices and improved forestry, pasture and land management can move agriculture from one of today’s primary sources of global warming and carbon pollution to a potential carbon sink powerful enough to sequester 100 percent of the world’s current annual CO2 emissions.

Yes, you read that correctly: “100 percent of the world’s current annual CO2 emissions.”

"Simply put, recent data from farming systems and pasture trials around the globe show that we could sequester more than 100 percent of current annual CO2 emissions with a switch to widely available and inexpensive organic management practices, which we term 'regenerative organic agriculture,'" Rodale’s research team reported. These practices work to maximize carbon fixation while minimizing the loss of that carbon once returned to the soil, reversing the greenhouse effect."

Or, as the Wall Street Journal reported, “Organic practices could counteract the world's yearly carbon dioxide output while producing the same amount of food as conventional farming.”

The natural and organic products industry has always been at the vanguard of sustainable food and agriculture innovation and environmental and social responsibility. Now, we can take our leadership one step further and in a very meaningful way. We have the opportunity to change not just food but business. Today we must not only sustain, we must repair and regenerate to slow and reverse climate change, a very real and existential threat to humanity and all our four-legged, winged, finned and otherwise living relatives. We owe it to the world to take the lead.
 

Learn More About Regenerative Food and Agriculture

·      Regeneration International, an excellent and comprehensive clearinghouse of news, research, resources and information focused on regenerative food and agriculture, www.regenerationinternational.org

·      Rodale Institute, the leading on-farm research and education organization, based in Emmaus, PA, www.rodaleinstitute.org

·      Regenerative Organic Certified Label, established in 2017 by leading brands including Patagonia, Dr. Bronner’s and others and administered by NSF International, the Regenerative Organic Certified label builds on the standards set by the USDA organic label with an emphasis on soil quality and social fairness, https://rodaleinstitute.org/regenerativeorganic/

·      Climate Collaborative, leveraging the power of the natural products industry to reverse climate change, http://www.climatecollaborative.com

·      Natural Products Expo West Climate Day, March 7, 2018, join industry leaders for Climate Day 2018 at Natural Products Expo West.

·      Soil Not Oil, international agro-ecological and environmental conference, Sept. 9-11, 2018, San Francisco, CA, http://soilnotoilcoalition.org

·      Regenerative Earth Summit, the premier gathering of leaders in regenerative food, farming and fashion for climate action, Dec. 4-6, 2018, Boulder, CO, www.regenerativeearthsummit.org

Hemp Note:

Nearly three-dozen states have passed legislation in recent years allowing research or commercial production of industrial hemp, the non-psychoactive cousin to marijuana. From “CBD” herbal extract products now being sold in a growing number of natural products stores to food, fiber, cosmetics, textiles, paper, animal feed and construction materials, industrial hemp sales totaled $688 million in 2016, led by hemp food, body care and CBD products. Learn about the world of industrial hemp at the 5th Annual NoCo Hemp Expo, April 6-7, 2018, in Loveland, CO. Colorado has become an epicenter of the industry hemp industry, and NoCo5 will draw 5,000 – 7,000 visitors and nearly 150 exhibits, making it literally the world’s largest trade show dedicated to industrial hemp. Disclosure: yours truly is involved in promoting NoCo5, but I will tell you, it is an exciting, emerging market, and it looks to the natural products industrial as a model for its aspirations for success. Learn more at www.nocohempexpo.com.

EcoFarm Note:

I am freshly back from EcoFarm, one of the most refreshing gatherings of organic producers held annually at the incredibly scenic Asilomar State Park in Pacific Grove, CA. Drawing more than 1,000 attendees, the focus of the 38th annual EcoFarm conference was on regenerative agriculture and building healthy soils. Take note it is a farmer’s conference, but with a focus on the issues and how to grow organic, it provides a wealth of information among a community well rooted in building healthy soils and supplying America’s fruits, vegetables, meat dairy, grains and other crops. The Monterey Herald gave it a great review. With concerns about the aging of America’s farmers, I can tell you where the young farmers are. They are dedicated to organic and drawn to EcoFarm. Check it out next year, if only to regenerate yourself. Visit www.eco-farm.org.

Photo: Sunset, Pacific Grove, CA; Steven Hoffman

What the Flock? USDA Seeks to Kill Organic Animal Welfare Rule

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Source: Presence Marketing Newsletter, January 2018
Author: Steven Hoffman

December 21, 2017

After repeatedly delaying implementation of an Obama-era rule that would have required organic egg producers to provide actual outdoor access for their hens, USDA announced in mid-December it plans to withdraw the new organic animal welfare rule altogether.

Originally approved in January 2017 by President Obama in his final days in office, the organic animal welfare standards, known as the Organic Livestock and Poultry Practices rule (OLPP), would have prohibited enclosed “porches” in large-scale organic poultry houses in favor of real outdoor access for the birds. The new rule would have established minimum indoor space for the birds, as well.

USDA acted under pressure from large-scale pork and other livestock producers, who are threatened by any federal regulations regarding animal welfare, as well as a small handful of “industrial scale” organic egg producers. According to the USDA, at least 50 percent of the eggs currently sold as organic come from industrial-scale producers like Mississippi-based Cal-Maine, which houses up to 200,000 hens in a single, multistory aviary with porches, reported AgWeek in November 2016.

The fact that half of all certified organic eggs sold come from industrial-sized poultry houses with no real outdoor access for the hens is a situation that angers hundreds of other organic egg producers that do provide outdoor access for their birds. George Siemon, CEO of Organic Valley, requires its egg producers to provide outdoor space for its hens, saying it’s what consumers want and that it is a fundamental part of organic agriculture. “It needs to be a whole system that features the bird’s basic needs, and there’s no doubt that a hen wants to be outside scratching in the ground,” he told National Public Radio in support of the rule.

One organic activist group, the Cornucopia Institute, has even put together an "Organic Egg Scorecard" that rates different organic suppliers based on how closely they're aligned with Cornucopia's vision of humane, pasture-based organic egg production.

USDA: “Not Our Job”

In an announcement published in the Federal Register on December 19, 2017, USDA claimed the rule in question “would exceed USDA’s statutory authority,” which it says is limited to health care practices. “Withdrawal of the OLPP also is independently justified based upon USDA’s revised assessments of its benefits and burdens and USDA’s view of sound regulatory policy,” a department spokesperson said in a statement.

Dismayed by USDA’s decision, the Organic Trade Association (OTA) said in a statement, “This groundless step by USDA is being taken against a backdrop of nearly universal support among the organic businesses, and consumers for the fully vetted rules that USDA has now rejected. It is against this overwhelming public input that USDA ignores growing consumer demands for food transparency. Consumers trust that the Organic seal stands for a meaningful difference in production practices. It makes no sense that the Trump Administration would pursue actions that could damage a marketplace that is giving American farmers a profitable alternative, creating jobs, and improving the economies of our rural areas. Most striking is the administration’s continued confusion that organic standards are mandatory rather than voluntary. Farmers, ranchers and businesses choose to be in the organic marketplace, and Congress intended that industry and consumers work together to develop organic standards. This action undermines that goal.”

OTA originally filed a lawsuit against USDA in September 2017 to force implementation of the animal welfare rule. After learning of USDA’s decision to withdraw the rule, it took again to the courts to uphold organic standards. “In anticipation of the USDA’s continued attempts to kill this regulation, the Organic Trade Association last Friday filed an amended complaint in Federal Court. We will continue our fight to uphold organic standards, that this Administration continues to willfully ignore by repeatedly delaying this fully vetted and final voluntary organic standard, and now proposing to withdraw it. We will see the department in court and are confident that we will prevail on this important issue for the organic sector, OTA said."

Could OTA’s Lawsuit Backfire?

Max Goldberg, publisher of Organic Insider, cautions, however, that OTA’s lawsuit could backfire. If the lawsuit fails, “USDA might feel that is has strong legal ground to rescind previously enacted organic regulations, which has the potential to completely dismantle the entire organic industry,” Goldberg warned. “This all comes down to how an administration wants to interpret OFPA (the Organic Food Production Act). Does it want to interpret OFPA literally and not create any new regulations? Or does it want to interpret OFPA broadly and use it to create regulations that move the organic industry forward? With the Trump administration, it is definitely the former, not the latter,” he wrote.

The organic industry’s success reflects consumers’ increasing demand for transparency in how their food is produced and their support of humane treatment of farm animals, said a coalition of animal welfare groups in an August 2017 report. "A national survey conducted in 2016 found that the vast majority of consumers (77 percent) are concerned about the welfare of animals raised for food. In research conducted by the nation’s largest retailer, Wal-Mart, two-thirds of the company’s customers stated that they are more likely to shop at a retailer that improves the treatment of livestock," the report stated, adding that support for humane animal treatment was even stronger among consumers who buy organic foods.

“Consumers expect the USDA Organic seal to represent high standards for animal welfare. If consumers come to believe that organic regulations do not align with their expectations or their values, the long-term success of the organic program will be threatened. For the benefit of animals, farmers, and consumers, the USDA should act immediately to implement the OLPP rule. The future of the organic marketplace depends on it,” the report concluded.

Public Comments Encouraged

USDA is seeking public comments regarding its announcement to withdrawal the OLLP rule. Deadline for comment is January 18, 2018. To comment and for more information, visit https://www.ams.usda.gov/rules-regulations/organic-livestock-and-poultry-practices.

More than 75% of U.S. Adults Take Supplements; Millennials Turning to Probiotics

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Source: Presence Marketing News, November 2017
Author: Steven Hoffman, Compass Natural Marketing

Multivitamins, Vitamin D and Vitamin C are the most popular dietary supplements among U.S. adults, says a new consumer survey conducted by the Council for Responsible Nutrition and published on October 19. The survey found that overall, 87% of U.S. adults have confidence in the safety, quality and effectiveness of dietary supplements. According to CRN, 76% of U.S. adults use dietary supplements, an increase of 5% over 2016 values.

In related research, Millennials are driving sales in probiotics and functional foods. According to Packaged Facts, Millennials aged 18-34 have relatively higher interest in probiotic foods and beverages compared to Gen Xers and Baby Boomers. Overall, approximately 25% of U.S. adults seek out foods and beverages with high amounts of probiotics or prebiotics, according to Packaged Facts’ 2017 National Consumer Survey.

With the increased focus on their health and wellness potential in recent years, probiotics have emerged as one of the biggest trends today in the food and beverage industry, says Packaged Facts. Products range from the familiar (i.e., yogurt, kefir, kombucha and infant nutrition) to the cutting edge (probiotics in soda, coffee, tea, soups, beer and more).

“Probiotics have emerged as a driving trend in the industry,” said David Sprinkle, Packaged Facts Research Director. “And given the core importance of gut health, this suggests continued potential for growth of probiotic- and prebiotic-containing foods, as consumers continue to learn more about them and next-generation products make their case in the market.”

Packaged Facts’ survey also found even higher interest in probiotics among those who shop for food in the natural channel, which “retains its role as the most significant retail sector for food and nutritional trends,” it said.

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Steven Hoffman is Managing Director of Compass Natural, providing brand marketing, PR, social media, and strategic business development services to natural, organic and sustainable products businesses. Contact steve@compassnatural.com.

Regenerative Organic Certification and Seal Announced

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Source: Presence Marketing Newsletter, December 2017
Author: Steven Hoffman

In related news, Rodale Institute in cooperation with Patagonia, Dr. Bronner’s and a coalition of farmers, ranchers, scientists, nonprofits and other sustainably minded companies recently launched a new Regenerative Organic Certification program, based on three pillars:  soil health, social fairness and animal welfare.

“The goals of Regenerative Organic Certification are to increase soil organic matter over time, improve animal welfare, provide economic stability and fairness for farmers, ranchers, and workers, and create resilient regional ecosystems and communities” Rodale Institute announced.

“The need is clear,” Rose Marcario, CEO of Patagonia, said in a statement. ‘Conventional agriculture’ is harming the planet, exposing people to toxic chemicals, and causing unnecessary suffering to animals that support the system. Just as alarming is the fact that the earth’s topsoil is degrading and eroding at an alarming rate: Scientists predict that current industrial farming practices and deforestation will eliminate topsoil within 60 years. As grim as this picture looks, the promise of regenerative organic agriculture is not only a process that can rebuild critically needed topsoil, but also one that potentially sequesters carbon at the same time.”

Marcario pointed to research by Rodale Institute conducted in 2014 that estimated that if current crop acreage and pastureland shifted to regenerative organic practices, 100% of annual global CO2 emissions could be sequestered in the soil.

“Regenerative Organic Certification does not aim to compete with—or negate—current organic standards. It builds upon the standards set forth by USDA Organic and similar programs internationally, particularly in the areas of animal welfare and farmer and worker fairness. With additional emphasis on the regenerative organic practices aimed at increasing soil health and potentially sequestering carbon, we could mitigate the damage conventional agriculture has done to our shared planet,” Marcario said.

Learn more:

- Regenerative Organic Certified, https://rodaleinstitute.org/regenerativeorganic/

The Original Organic: Biodynamic Food and Farming on the Rise

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Source: Presence Marketing Newsletter, December 2017
Author: Steven Hoffman

What’s old is new again. Biodynamic agriculture, the predecessor to organic farming
developed in 1924 and based on the ideas of Austrian philosopher and scientist Rudolf
Steiner, is growing in popularity among farmers who want to reduce their input costs, build
the health of their soil, and also follow organic farming principles.
The biodynamic label, too, is appearing on more products as discerning consumers demand
organic food that’s been grown in the soil using regenerative agriculture methods that help
sequester carbon out of the atmosphere, as concern for finding solutions to climate change
rises with the temperature.


The number of biodynamic farms in the U.S. is growing rapidly, Elizabeth Candelario, co-
director of Demeter USA, the nonprofit certifier of biodynamic farms and consumer products
in the U.S., told The Guardian. According to Demeter, there are approximately 250
biodynamic farms and wineries in the U.S. and total U.S. acreage under biodynamic
production increased 16% in the last year, totaling 21,791 acres. It is estimated that 350,000
acres worldwide are farmed using biodynamic methods in 47 countries.


“Biodynamic farmers manage their farms—including fields, woods, wetlands, plants, animals
and people—as a self-contained, self-sustaining organism. They don’t use GMOs, synthetic
chemicals, fertilizers or pesticides,” reported Whole Foods Market in its blog (the retailer is
offering a growing number of biodynamic certified products).


“We’re talking about crop rotation and the value of manures and soil fertility; and biodiversity
and how that provides habitat for predators that eat the bad insects,” said Jim Fullmer, co-
director of Demeter USA, the only biodynamic as well as organic certifier in the country.
“The biodynamic system is just the original idea of an organic system. That is what it was
supposed to be. Not a list of materials that are allowed or prohibited, [which] is what organic
has become,” Fullmer said in the Boulder Weekly.


Integrating livestock into the farming operation is essential in biodynamic agriculture,
Fullmer told the Boulder Weekly. “When you do that you’re addressing a lot of input
concerns. You’re generating fertility out of the manures, but also the pasture and the crop
rotations and everything that comes out of the presence of animals. When that starts
happening, you’re building soil humus and when you do that, the farm is able to hold onto
water, it’s able to hold onto crop nutrients and provide them in a living, balanced way, which
leads to pest control because you have healthy resilient crops,” he said.


Boulder, CO, restaurateur and certified biodynamic farmer Eric Skokan, owner of the Black
Cat Bistro
and Bramble & Hare Restaurant, grows over 250 different vegetables and raise
sheep, pigs, chickens, turkeys and geese on 130 acres spread between three different plots
of land in Boulder County. At the lowest point of production in March, about 65% of the
Bistro’s menu comes directly from the farm, Skokan told the Boulder Weekly. At the height
in the fall, it hovers around 95%. Skokan recently became the first certified biodynamic farm
to table restaurant in the country, the Boulder Weekly reported.

While linked to some “spiritual” or astrological practices, biodynamic is a system of
agriculture in essence. According to Candelario, this is not required for Demeter
certification. “I’m so happy I’m not in the business of certifying people’s spirituality,”
Candelario said. “What we certify is people’s farming to this beautiful agronomic standard.
Learn more:
- Demeter USA, www.demeter-usa.org
- Biodynamic Association, www.biodynamics.com

How to Help Farms and Wineries Damaged in the Sonoma, Napa and Mendocino Fires

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Source: Presence Marketing News, November 2017
Author: Steven Hoffman, Compass Natural Marketing

For those looking to help organic farmers and producers who suffered significant damage in the fires that swept through large parts of Sonoma, Napa and Mendocino Counties in northern California, here are some resources where you can help and learn more:

North Bay Just & Resilient Futures Funds

Resources from this fund, established by the Community Alliance with Family Farmers (CAFF) along with a coalition of community based organizations, will be provided to victims of fires, especially those suffering losses not covered by insurance or traditional relief services, and to support initiatives that build more just, healthy, and resilient communities.

California Certified Organic Farmers

CCOF is extending all organic compliance deadlines for operations in the Napa, Sonoma and Mendocino Counties, recognizing that power outages and fire damage will affect immediate business operations for some days, weeks, or longer. CCOF lists a number of organizations and ways industry members can help – visit CCOF’s Northern California Fire Relief Efforts page here.

California Wine Strong

Funds collected on this YouCaring.com website set up by California Wine Strong will be distributed to individuals, businesses and communities affected by the wildfires through Napa Valley Community Foundation’s Disaster Relief Fund, the Community Foundation of Sonoma County’s Resilience Fund, and the Community Foundation of Mendocino County Disaster Fund of Mendocino County.

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Steven Hoffman is Managing Director of Compass Natural, providing brand marketing, PR, social media, and strategic business development services to natural, organic and sustainable products businesses. Contact steve@compassnatural.com.

PMA Predicts Future Growth of Organic Market

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Source: Presence Marketing News, November 2017
Author: Steven Hoffman, Compass Natural Marketing

“Once merely a specialty item favored by the ‘uber health-conscious,’ organic food has widened its distribution channel, especially in retail formats, and has now become a staple in supermarkets around the world. The more accessible it becomes, the more its popularity rises.” So says the Produce Marketing Institute in an October 5, 2017, commentary. Organic achieved mainstream status due to consumer demand for transparency, especially about topics including food safety, chemical preservatives, genetically modified ingredients and pesticides, along with health concerns around diabetes, heart disease, cancer and more, which have affected food buying choices, said PMA.

“Consumers now expect to know the story behind their food before they’ll buy it. Is it locally sourced or imported from an international market? Is it produced in an ethical manner or does it come from a factory farm? If a food item doesn’t have a positive backstory, even if it’s cheaper, many consumers consider looking elsewhere. And some important components of a positive backstory include ‘natural,’ ‘organic,’ and ‘locally sourced,’ which can be major selling points despite the added costs. That shift helped transform organic produce from a niche underdog into a produce industry powerhouse, and it’s not slowing down,” said PMA.

Foods with organic and natural claims remain popular among households with children in the U.S., and organic strongly resonates with Hispanics, particularly Millennials and especially those with children. In fact, said PMA, parents in general are far more likely to embrace the positive reputation of organic. 

However, PMA cautioned that households with children are on the decline. Meanwhile, the number of consumers that lack trust in the organic label remains steady, it said. Older consumers are the most likely to be unconvinced of the value of organic and are hesitant to spend more for organic products. Younger shoppers, PMA points out, while open to the benefits of organics, often can’t afford them.

PMA reported that the global organic food market was $110.25 billion in 2016, according to management consulting firm TechSci Research. Global organic food sales are expected to reach $262.85 billion by 2022. While Europe and North America make up the strongest demand for organic food, PMA suggested that intense competition in those regions means companies must also look elsewhere to gain a foothold.

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Steven Hoffman is Managing Director of Compass Natural, providing brand marketing, PR, social media, and strategic business development services to natural, organic and sustainable products businesses. Contact steve@compassnatural.com.

Natural industry mourns passing of Miami retail pioneer Terry Dalton

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Author: Steven Hoffman, Compass Natural Marketing

Source: New Hope Network

With the Unicorn Village Natural Marketplace and Restaurant, and later Sublime Vegan Restaurant, Miami retailer and restaurateur Terry Dalton brought sophisticated hipness, financial savvy and customers in droves to his pioneering full-service natural foods supermarket and restaurant.

Natural products retail pioneer Terry Dalton, founder of the Unicorn Village in Miami, one of the industry’s seminal natural foods stores and restaurants in the 1980s and 1990s, passed away on Nov. 9, 2017, from head injuries suffered in a bicycling accident in northern Florida.

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Terry was a true rock star in the natural products industry and remained very active and enjoyed the outdoors. He passed away doing what he loved and is survived by his son, Sage Dalton, a senior dive master at Oceans First in Boulder, Colorado, and former wife and lifelong friend Kathy (Dalton) Boruff, who also resides in Boulder.

Terry sold the Unicorn Village—one of the top grossing stores in the country at the time—in 1995 to Whole Foods Market. If you ever had the chance to eat at his stand-alone Unicorn Village restaurant on the waterfront in Aventura in North Miami, you would have seen top celebrities of the time enjoying Terry’s (and chef Steven Petusevsky’s) nouvelle natural, organic and vegetarian cuisine.

Terry and his team brought that Miami 1980s hip and chic sophistication to natural, organic and vegetarian products, making it appealing to so many more people. After the sale to Whole Foods Market, Dalton subsequently co-founded Sublime—one of the top vegan restaurants in the country—with Nancy Alexander, founder of the Animal Rights Foundation of Florida. He remained involved in various consulting projects and causes since then but mostly enjoyed retirement over the past several years.

However, the impact Terry Dalton and his fellow retail pioneers—members of the original “Natural Network”—had on the evolution of our industry is a powerful and lasting legacy.

Terry Dalton stood out among a group of retail pioneers across the country who in the late 1970s and 1980s were dedicated to moving beyond stuffy, old-school health food store and crunchy, college-town natural food store formats. This intrepid group, including Terry and his Unicorn Village Natural Marketplace and Restaurant in Miami, were out to create the first full-service natural and organic food supermarkets that were the forerunners of today’s natural products retail marketplace. It was truly a unique entrepreneurial moment in the history of natural products.

Other members of the original “Natural Network” included Stan Amy of Nature’s Fresh Northwest (and New Seasons Market) in Portland; Mark Retzloff and Hass Hassan of Alfalfa’s Market in Boulder; John Mackey of Whole Foods Market in Austin; Peter Roy of the Whole Foods Co. in New Orleans (who later served as president of Whole Foods Market); Sandy Gooch of Mrs. Gooch’s Natural Food Market in Los Angeles; Anthony and Susan Harnett of Bread & Circus in Boston; and Terry Dalton of the Unicorn Village in North Miami. A number of these stores sold to Whole Foods Market and elsewhere, but their impact nonetheless lasts to this day.

Terry’s natural foods store and restaurant stood out as models for the industry. Throughout the 1980s and until 1995 when he sold his store to Whole Foods Market, Terry presided over one of the most sophisticated, hip and profitable natural foods scenes in the country. It was the THE place to go for natural foods, prepared foods and gourmet cuisine in the Miami area, and celebrities from Madonna to the stars of Miami Vice were regularly spotted perusing products in the market, or chatting over vegetarian fare in Dalton’s waterfront restaurant adjacent to his store.

Through my work as editorial director of the Natural Foods Merchandiser with New Hope Network in the ‘80s and ‘90s, New Hope co-founder Doug Greene sent me to many stores for our monthly retail profiles and I got to meet, report on and befriend so many of these founding retail pioneers—and work with them on seminars and educational programming at Natural Products Expo. Terry’s friendship was special and we remained close and worked on other projects together over the years. He took me under his wing like he did with many individuals in our industry, and helped nurture my career in the change-making and ever-changing natural and organic products market.

As such, his son, Sage, and his ex-wife, Kathy, asked if I would write this tribute to let the natural products community know of his passing and to honor Terry Dalton and his contribution to natural and organic food and agriculture, health and wellness, and environmental sustainability. I am honored to offer this tribute to Terry Dalton, my mentor and friend.

If you would like to learn more about the incredible founders who started an industry, including more about Terry Dalton’s work and legacy, read Natural Prophets by Joe Dobrow, an excellent book and an important history to preserve.

For those seeking to reach out to Terry’s family, please contact Sage Dalton at scubasage@me.com. The family is also still considering how best to honor his memory, and we’ll keep everyone posted. Life is precious, friends. Love and health to you all!

—Steven Hoffman, Compass Natural Marketing

Tributes from family and industry leaders:

“I met Terry in Florida when I was 17. We started hanging out, visiting our families in the west, and we moved to Oregon for a time in the mid-1970s where our son Sage was born. Terry would tell me of his vision of opening a juice bar and natural foods store, and over the next few years, it all materialized. First, we delivered honey for a beekeeper to natural foods stores up and down the West Coast, and when we sold all the honey, we’d fill the van back up with fresh produce and then sell that all the way back home. After Sage was born, we moved back to Florida to be closer to my family. Terry soon partnered on his first restaurant, Chestnut, in 1979 in Fort Lauderdale, which ultimately led to the Unicorn Village store and restaurant, and the rest is history. Terry was my soul mate, and while his biggest passion was for natural products, his biggest love was for his son, Sage. And yet, while to us he was husband and dad and liked to ride bikes and all that, we knew he was a rock star to so many people. He was so influential in launching the natural products industry.”

—Kathy (Dalton) Boruff, Terry Dalton’s ex-wife

 “My fondest, clearest memories of Terry Dalton, was when, in the mid-1970s, he lived in Oregon and was just starting out. He used to drive up Interstate 5 loaded to the gills with avocados, honey, dates and other fresh products from his runs in a van up and down the West Coast. He would just appear; there was no set schedule, but it was the highlight of the month when he came to visit. The store’s staff would empty out just to see what fresh products Terry brought to us. Of course, this was all before he moved to Florida and launched the Unicorn Village and his restaurants.”

—Stan Amy, founder, Nature’s Fresh Northwest and New Seasons Market

 “Terry Dalton was clearly the leading voice for prepared foods, and he had the highest-volume vegetarian restaurant in the country for 10 years. None of us had cracked the foodservice code yet; Terry was way out ahead in terms of prepared foods, and his business was always very profitable. When we bought his store while I served as president of Whole Foods Market, Terry’s Unicorn Village team helped us dramatically improve our prepared foods offerings. Regarding the Natural Network, Terry was there from the very beginning. He saw the wisdom of us all working together, sharing information and trying to build this entire industry.”

—Peter Roy, founder, Whole Food Co., New Orleans; former president, Whole Foods Market; founder of the Natural Network; and board member of a number of successful natural products companies

 “Terry Dalton was a progenitor in our natural foods industry, changing the lives and career paths of many, including my own. In 1989 at the Unicorn Village Restaurant and Market in Miami, he introduced me to a new way of thinking about our food supply, ingredient quality and ultimately how these issues affect on not only us, but the bigger picture of our planet’s well-being. This was the training ground in which we would feed thousands each day, with creative, globally inspired, clean food prepared from scratch. He empowered me to create and explore new, more socially responsible culinary directions at least 20 years before others. Terry’s guidance and memory will continue to push me forward for years to come. His profound influence on the industry and me personally will continue to benefit our world for generations to come.”

—Steven Petusevsky, chef and culinary specialist; former executive chef, Unicorn Village; and author, Whole Foods Market Cookbook

 “Terry Dalton was such a good-hearted guy. Yeah, we were all pioneers in organic foods and natural grocery, but Terry really was the guy who pioneered the juice bar, fresh food and vegetarian food ideas that you see on every street corner in America today.”

—Hass Hassan, co-founder, Alfalfa’s Market, Boulder, Colorado, and Fresh and Wild Market, London, England

 “We remember in the 1980s when a group of independent natural products retailers throughout the U.S. decided to meet regularly so that information and techniques could be shared. We called ourselves ‘The Natural Network.’ Founding retailers included Stan Amy of Nature’s Fresh Northwest and New Seasons Market in Portland; Mark Retzloff and Hass Hassan of Alfalfa’s Market in Boulder; John Mackey of Whole Foods Market in Austin; Peter Roy of the Whole Foods Co. in New Orleans (who later served as president of Whole Foods Market); Sandy Gooch of Mrs. Gooch’s in Los Angeles, and Terry Dalton of the Unicorn Village in north Miami. We visited each other’s markets and collected a myriad of ideas and opportunities over the years. Visiting Terry Dalton’s Unicorn Village was a joy. The deli section and restaurant were truly advanced and creative. Terry became our go-to person as the rest of us were trying to incorporate prepared foods sections into our natural products markets. We shall always remember this delightful, knowledgeable man who contributed so much to the expansion and ethics of the natural products industry.”

—Sandy Gooch, founder, Mrs. Gooch’s Natural Food Market, and Harry Lederman, industry veteran, marketing specialist and investor, and husband and wife, Los Angeles

“Terry Dalton was one of the original ‘Fabulous Five:’ Nature’s Fresh Northwest, Bread & Circus, Mrs. Gooch’s, Whole Foods Market … and the Unicorn Village.”

—Cheryl Hughes, founder, the Whole Wheatery, Lancaster, Califronia

“Small, innovative food companies need advocates, buyers who’ll tolerate new stuff every week. All the way from tiny Redwood Valley, California, Brightsong Tofu filled a standing order of ‘whatever you got that’s new and good’ for Terry. It was the ‘80s. We shipped by air every Friday a big box of mixed tofu products; they were sold out the next afternoon. Terry inspired us to transcend the ordinary.”


—Richard Rose, founder, Brightsong Tofu, Tofurella and HempNut, Santa Rosa, California

“Terry was both idealistic and pragmatic. He also was from Oregon (a little logging town called Roseburg) and described himself as the black sheep of his family because he got into natural foods and liberal causes. And yet he was so successful and still so gracious. And he built the first, and probably only, dockside natural foods supermarket, where people in their yachts and cabin cruisers could buy provisions!”

—Gil Johnson, former editor, Natural Foods Merchandiser, Portland, Oregon

“Terry Dalton was developing and promoting women and minorities long before anyone was keeping statistics. To this day the Unicorn Village management team remains one of the most diverse teams with whom I have ever worked. Terry was always mentoring—when the Unicorn went to Natural Products Expo, Terry brought as many of the team as he could manage and still keep the show going at home. He wanted everyone to get a chance to see what it was like to play on a bigger stage. Terry was always trying new ideas, but he always wanted to back up what we were doing by analyzing the numbers. He was creative but results driven. I always felt a bit smarter after talking to Terry. Rock star, Renaissance man, solid and true friend.”

—Catherine Ali, former CFO, Unicorn Village

“I worked for Terry Dalton at the Unicorn Village for over 10 years, up until it was acquired by Whole Foods Market in 1995. It was one of the most successful independents in its day. Terry was a pioneer and a visionary, and he was a mentor and an inspiration to my career in the natural foods industry. I will forever be indebted to him and his memory will always be with me. My prayers and thoughts go to his family, Sage And Kathy.”

—Richard Lewis, former purchasing director, Unicorn Village, and General Manager, 4th Generation Organic Market, Boca Raton, Florida

“My father made a conscious choice to enjoy life. He loved bicycling, kayaking, jazz music, family and living a peaceful life. We are truly honored by the overwhelming expression of love we’ve received from this community of natural products people he was also dedicated to, in addition to his own family.”

—Sage Dalton, Terry Dalton’s son and dive master, Oceans First, Boulder, Colorado

Panel Features Top Chef Host Padma Lakshmi, Other Notables, on Future of Food

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Source: Presence Marketing News, November 2017
Author: Steven Hoffman, Compass Natural Marketing

Due to the power of social media, even young audiences in remote parts of the world know about “Top Chef,” said the hit food show’s co-host Padma Lakshmi, noting that children are more aware of food at a younger age, and engaging them in cooking and passing recipes down is important to food’s future. Home Economics “should be brought back” into the school curriculum, she suggested.

Padma spoke at The Next Big Bite: How We Will Eat & Drink, held October 16 at the Institute of Culinary Education in New York. The event was hosted by Les Dames d’Escoffier New York, a professional women’s culinary organization with members who are leaders in the fields of food, fine beverage, and hospitality. Lakshmi joined other panelists including Melissa Clark, New York Times food columnist and cookbook author; Kerry Heffernan, executive chef, Grand Banks Restaurant, New York; Pascaline Lepeltier, instructor, Court of Master Sommeliers at the International Culinary Center, master sommelier, and author; Missy Robbins, chef and owner, Lilia Restaurant, Brooklyn, NY; and Susan Ungaro, president, The James Beard Foundation. Dana Cowin, DBC Creative, host of the podcast Speaking Broadly on Heritage Radio Network, and former editor-in-chief of Food & Wine, moderated the panel.

Here are food trends to watch, according to the panel and as reported in Specialty Food News:

  • Vegetables and plant-based foods. Stem to stalk is the new nose to tail. “Wasting food is going to become like not buckling up,” predicted Ungaro.
  • Untapped resources of the ocean such as algae or dogfish. “Dogfish is very plentiful and now we’re sending it to the U.K. because they know if makes good fish and chips. People here don’t understand that it’s a great resource,” said Heffernan.
  • Increased interest in the origins, content, and production methods of wine and spirits. “We can know what we eat, but we don’t always know what we drink,” noted Lepeltier.
  • Demand for healthier fare will have chefs rethinking traditional favorites. “We’re going to see a trend toward healthier, but with balance,” said Robbins, who created her restaurant with a health-oriented menu in mind. “People will give themselves the authority to indulge when they want to.”
  • Foods to watch: seaweed; beans, pulses, and legumes; oysters; and hemp.

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Steven Hoffman is Managing Director of Compass Natural, providing brand marketing, PR, social media, and strategic business development services to natural, organic and sustainable products businesses. Contact steve@compassnatural.com.

Organic Industry Leaders Speak Out in Support of OTA’s Lawsuit Against USDA

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Source: Presence Marketing News, November 2017
Author: Steven Hoffman, Compass Natural Marketing

On January 19, 2017, one day before President Donald Trump’s inauguration, organic industry and animal welfare advocates hailed the release by the U.S. Department of Agriculture (USDA) new Organic Livestock and Poultry Practices (OLPP) rules – the result of a 14-year-long process that would require organic farms to follow improved animal welfare practices. The rule addressed four areas of organic livestock and poultry production, including requiring humane living conditions, animal healthcare, transport and slaughter.

The next day, however, on January 20, the new administration ordered a freeze on all new or pending federal regulations, and delayed implementation of the OLPP rules under the National Organic Program (NOP). In May, USDA asked for additional public input on whether it should enact the rule, suspend it, delay it, or withdraw it. During this new 30-day comment period, USDA received more than 47,000 comments, 99% of which were in support of implementing the new rules by November 14, 2017.

After hearing nothing from USDA since then, on September 13, the Organic Trade Association (OTA) filed a lawsuit against USDA saying it has a duty to protect and advance the U.S. organic sector, and that USDA is in violation of The Organic Food Products Act and the Administrative Procedure Act for its delay of the Organic Livestock Rule. OTA is asking the District Court for the District of Columbia to reverse USDA’s decision to delay and eliminate options proposed to further delay, rewrite or permanently shelve the rule—thereby making the final livestock rule effective immediately, as written.

“In a 60-day period in Spring 2017, the USDA received more than 45,000 positive public comments from farmers, consumers and food producers, agreeing with proposed rules to improve animal welfare, particularly increased pasture access for poultry. Its customers—the public—have spoken, but unfortunately, it seems, they have not been heard,” wrote Matthew Dillon, Clif Bar’s Director of Agricultural Policy and Programs, on September 26 in New Hope Network’s IdeaXchange. “Instead, USDA is listening to a few massive egg producers that want to increase sales into organic markets but not incur the costs of higher animal welfare standards,” he added.

Longtime organic industry leader Gary Hirshberg, Cofounder and Chair of Stonyfield Farm, also spoke out in support of OTA’s lawsuit. “Maintaining the integrity of organic standards, and the consumer trust that we in the organic community work hard every day to earn, demands constant vigilance,” he wrote on October 16 in New Hope’s IdeaXchange. “That’s why the recent legal action by the Organic Trade Association against the federal government over yet another delay in enacting the organic livestock regulations is so critical, and why it deserves the support of all organic stakeholders.”

“The organic industry takes very seriously its contract with the consumer and will not stand aside while the government holds back the meaningful and transparent choice of organic foods that deliver what the consumer wants,” said OTA Executive Director Laura Batcha in a release. “The government’s failure to move ahead with this fully vetted regulation calls into question the entire process by which organic regulations are set—a process that Congress created, the industry has worked within, and consumers trust.”

From Point A to Point B: UNFI Chair Steve Spinner on the Future of Distribution

Author: Steven Hoffman
Source: This article originally appeared in the September 2017 issue of Presence News

UNFI Chairman, President and CEO Steven Spinner was in Colorado recently to address the Naturally Boulder business community about the future of distribution in the natural, organic and “better for you” consumer products market. 

The takeaway: “It’s a good time to be in this space,” Spinner said. “We are one of the few industries other than tech that actually grows,” he said, noting that the natural and organic market is growing at 10% vs. 1% growth in conventional foods.

  From left:  Mark Retzloff, Cofounder, Alfalfa’s Market; UNFI Chair Steve Spinner; and Carlotta Mast, SVP of Content, New Hope Network, and President, Naturally Boulder.

From left:  Mark Retzloff, Cofounder, Alfalfa’s Market; UNFI Chair Steve Spinner; and Carlotta Mast, SVP of Content, New Hope Network, and President, Naturally Boulder.

Yet, be prepared for change, Spinner encouraged. “Change is pretty good. The reality is those who have been in the natural products industry for a while have learned that in order to deal with all that growth, you’ve got to be comfortable with handling a great deal of change. Because UNFI is conservative, our balance sheet is conservative – we carry very little debt – and we can weather the changes,” he said.

Shifting Market Drivers

Among the drivers affecting the healthy lifestyles market, Spinner noted, “We are seeing consolidation among manufacturers and the maturation of retail. Also, consumer buying habits are shifting. People are living longer and buying homes and having children later. And with the growth of alternate channels, things are going to get more competitive, so be careful of the price you charge. The Internet has made everything more transparent,” he advised.

“For us, our margins have come down materially year over year – 80% of our volume is a cost-plus program of 10% or less. A common misconception is that we make all this margin on the backs of our suppliers, but that is not true. The way we achieve income growth is by becoming more efficient – we seek to reduce our costs further than our contracting margins,” Spinner shared.

While sales of natural and organic products are growing in mainstream stores such as WalMart, Costco, Kroger and others, “That’s not necessarily all bad because these stores are serving crossover shoppers, and then we get a committed natural and organic shopper,” he said.

At the helm of UNFI – the largest distributor of natural and organic products in North America, with more than $9 billion in annual sales – since 2008, Spinner has become widely recognized as one of the top distribution and logistics experts in the food industry. A publicly traded company (Nasdaq: UNFI), UNFI serves 43,000 customers in the U.S. and Canada from 33 distribution centers. 

The company recently reorganized itself into three regions: Pacific, Central and Atlantic. Additionally, Spinner noted, “In the past manufacturers had to deal with a number of different regions and policies were different. We have now shifted to a single Supplier Relationship Manager (SRM) system in which the manager works with the supplier on promotional schedules, product introductions, etc. We encourage brands to build a relationship with their SRM. Ask them for advice, for help in resolving issues with deductions, pricing, anything. Even though our managers have to respond to many brands, you might want to make the trip to visit your SRM. It can improve your relationship with UNFI dramatically,” he added.

Shift to the Perimeter

“About five years ago, we determined that the whole retail industry was going to shift from the center of store to the perimeter, that is, less space allocated to grocery and more allocation to dairy, deli and other perishables,” Spinner observed. “So we invested $500 million in refrigerated centers across the country. What we got wrong was the timing of the contraction in the center store – it happened a lot faster than we thought. Deli, produce, meat, frozen – these categories are all growing north of 9%. The perimeter is growing faster than the center of store.”

  “The perimeter is growing faster than the center of the store,” noted UNFI Chair Steve Spinner. Source: UNFI.

“The perimeter is growing faster than the center of the store,” noted UNFI Chair Steve Spinner. Source: UNFI.

UNFI serves all aspects of a retail store, what it refers to as “Building out the Store,” through its complete catalog plus private label brands including Blue Marble, Haddon House, Woodstock Farms, Select Nutrition and others. For the perimeter, UNFI serves retailers through its subsidiaries Albert’s Organics, Tony’s Fine Foods and Gourmet Guru.

A recent acquisition, Honest Green, also provides UNFI with the ability to drop ship over 35,000 products on behalf of small and national retailers that want to offer a broader range of items beyond their shelves, plus other non-traditional accounts that want UNFI products.

Speaking of e-commerce, Spinner said, “I know sometimes our [private label] products end up on websites, and perhaps those e-tailers try to get a price advantage. We try to prevent that. But the truth of the matter is, e-commerce is here to stay and we plan to get into it in a bigger way. We have to embrace it, understand it, and figure out a way to make it work while also serving our brick and mortar customers and helping them with their online sales platforms,” Spinner said. “E-commerce is still less than 4% of what’s sold in the U.S. However, U.S. food sales at retail are close to a trillion dollars, so a percentage point can mean a lot.” 

UNFI Next: An Option for Emerging Brands

“Some would say that we’re a really big company and hard to do business with…but we are a really efficient company that gets product from point A to point B,” Skinner admitted. “However, we do believe we should treat others as we would like to be treated ourselves.”

For established national brands, UNFI’s fee-based ClearVue program converts a brand’s total distributor promotional spend into one flat rate – “No more deduction surprises, and a tremendous amount of portal information available,” said Spinner, who reported that close to 100 suppliers currently participate in the ClearVue program.

UNFI Next Logo.png

For smaller companies, UNFI launched this past year its “UNFI Next” program to help bring smaller, innovative brands into its distribution system, working with a new team that curates and incubates emerging brands not currently in distribution. According to UNFI’s blog announcing the program, the product and brand criteria to define an emerging brand for UNFI Next include:

     • Brands/Products that disrupt their category

     • Products that are on-trend with key industry/category trends

     • New or break-through product entries to the market

“We realized we had gotten too big for some small suppliers, so we are excited about UNFI Next to find and on-board new and emerging brands,” said Spinner. “We are opening UNFI Next centers one DC (Distribution Center) at a time – Denver was recently added as a new UNFI Next center. This enables us to build and extend our pipeline to offer fast growing and exciting brands to our customers. When it works, we hand off the brand from UNFI Next to UNFI.”

To learn if your brand qualifies for UNFI Next, Spinner recommended contacting the appropriate regional Supplier Relationship Manager (SRM). To find contact info, visit here: http://yourbrandsmatter.com/srm-contacts/. You can also learn more about the UNFI Next program at UNFI’s Blog, October 2016 edition, here: http://unfisupplierupdate.blogspot.com/2016/.

Finally, in working with a distributor, Spinner cautioned that the reason suppliers may fail is when they think just getting into the distribution system is the “be all, end all.” Once the SRM places an order, that’s only the beginning, he said. “It’s your responsibility to sell it, get it placed, and get it off the shelf. We will work with you to help promote your brands, but again, I encourage you to build your relationship with your SRM. We also are committed to working with evolving retail stores that are responding to the needs of the future retail marketplace.”

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Steven Hoffman is Managing Director of Compass Natural, a full service agency dedicated to Public Relations, brand marketing, digital communications, social media, and strategic business development in the healthy lifestyles market for natural, organic, regenerative and eco-friendly products and services. Contact steve@compassnatural.com.

Natural Products Industry Matures; Independents See Sales Growth

As the natural and organic products industry reached $141 billion in sales on 7.4% growth in 2016, Natural Foods Merchandiser’s 2017 Market Overview reports independents are starting to thrive again as the market shifts.

By Steven Hoffman

  Source:  Natural Foods Merchandiser , July/August 2017, published by New Hope Network

Source: Natural Foods Merchandiser, July/August 2017, published by New Hope Network

As a new Managing Editor back in 1986 with the Natural Foods Merchandiser, I was charged with conducting, analyzing and reporting on the natural products industry’s annual retail market overview survey. I recall spending late evenings poring over data with New Hope Network founder Doug Greene to determine overall sales, growth categories and emerging trends. That was when the industry was just breaking $5 billion in sales – a fraction of what it is today.

Thirty years later, the natural and organic products industry is maturing, reaching $141 billion in sales on growth of 7.4% in 2016, according to the 2017 Market Overview, published in the July/August 2017 edition of Natural Foods Merchandiser (NFM) in partnership with Nutrition Business Journal, with additional data provided by SPINS and the Organic Trade Association’s annual organic industry survey.

Over this time, the natural, organic and better-for-you products sector has become widely recognized as a hotbed of innovation and growth in the overall food industry. Point in fact, the Amazon – Whole Foods Market deal announced in June promises to be a game changer not just for the natural products landscape, but also for the entire retail food market worldwide.

Independents Find Stronger Footing

Yet, as the market shifts, independents that have been able to weather the past few years may now find themselves in a stronger position, according to NFM’s 2017 Market Overview.

While sales growth was modest among independent natural products retailers – sales grew 4.3% to $54.4 billion, or 39% of overall natural products sales in 2016 – NFM also reported that 69% of natural products stores surveyed recorded a sales increase, and 72% noted they did not have a competitor open up in their neighborhood in the last year.

“It may go against conventional wisdom, but well-managed and strongly positioned independent grocers can coexist with big retail. While large, often publicly held chains may have scale and strong financial backing, independent grocers are often more agile, enabling them to move quickly to address emerging trends and shifting consumer preferences,” the editors of Food Dive observed in a July 19, 2017, report. 

“The difference between the corporate model, which you would now have to say includes Whole Foods, and the authentic, community-owned independent, is becoming clearer every day,” retail specialist Jay Jacobowitz of Retail Insights told NFM. “Those who embrace that authenticity and are passionate about serving their unique community will do well.”

Jacobowitz also noted that while the natural products industry may be maturing, there are areas of the country, including the East South Central region (Missouri, Alabama, Tennessee and Kentucky), that are far from saturated. “It’s a big country, and the big boys can’t be everywhere at once,” Jacobowitz said. “There are still opportunities out there.”

Independents also are more nimble in that they can feature local products, and are often the first to take advantage of such emerging product trends as cannabidiol, or CBD, a new category driving growth in dietary supplements and personal care.

Conventional Retailers Own 44% of Natural Products Market Share

During this time, razor-thin margins, increased competition and price wars impacted large mainstream grocery chains, as well as of some of the “supernaturals.” Kroger reported its first decrease in same store sales in 13 years in March 2017, NFM reported, and Whole Foods Market struggled with declining same store sales throughout 2016, prompting shareholder activism in April 2017 from Jana Partners, which held an 8.8% stake in Whole Foods, and ultimately, the announced sale to Amazon in June 2017.

Other publicly traded supernatural chains, including Natural Grocers and Sprouts, saw their stocks decline in 2016 as a result of increased competition from all sides. Natural Grocers’ stock price continues to be depressed in 2017, though Sprouts’ stock price has rebounded.

Yet, through all that jockeying for market share, the bottom line is that conventional retailers, including food, drug, mass, convenience and club stores, now command the majority of natural and organic products sales.

According to NFM’s survey, in 2016 conventional retailers captured 44% – or $61.5 billion – of all natural and organic products sales, while traditional independent natural products retailers and chains claimed 39% ($54.4 billion) of overall natural and organic products sales in 2016. Additionally, while sales among independents grew a modest 4.3%, sales of natural and organic products among conventional retailers grew at double digits, or 10.2%, in 2016.

Here Comes the Internet

As consumers become ever more comfortable shopping on the Internet from the comfort of their homes, offices and mobile devices, ecommerce sales of natural and organic products grew 11% to $5.7 billion in 2016, capturing 4% of overall natural products sales, reported NFM’s Market Overview survey. 

Online sales are sure to continue a strong growth curve, as ecommerce retailers such as Thrive Market, meal kit providers including GreenChef.com and independent brick and mortar retailers increase their online presence. Plus, a growing number of manufacturers are finding markets by creating their own online shopping pages and also by offering their products on Amazon, which continues its juggernaut as the dominant force in online retail. (With its acquisition of Whole Foods Market, it will be exciting to see how Amazon integrates and advances its brick and mortar and online retail strategies.)

The online channel is likely to capture significantly more market share in the next decade from brick and mortar stores, predicted a January 2017 report by Food Marketing Institute and Nielsen. Online sales could grow five-fold over the next 10 years, with U.S. consumers spending $100 billion on “food-at-home” items by 2025, FMI and Nielsen predicted. The report also found millennial shoppers surveyed were more willing to buy groceries online in the future than other consumer groups.

Health supplements, in particular, are benefitting from ecommerce, with $2.6 billion in online sales reported in 2016 by market research firm 1010Data. Brands that focus on “natural” products experienced the most online sales growth last year, 1010Data reported.

Herbal Blends, CBD Drive Supplement Sales Growth

Sales of herbal and homeopathic products increased 13.4% over the 52 weeks ending March 19, 2017, to reach a market value of nearly $2 billion, according to SPINS data shared in NFM’s Market Overview. Vitamin and supplement sales also grew 3.5% to approximately $12 billion in sales. Overall, SPINS reported 5% growth, valuing the total supplements market at approximately $14 billion.

SPINS also reported that sales of herbal blends grew 22% over the previous year, accounting for much of the herbal category’s success. According to research firm Mintel, consumers are responding to supplement formulas that call out benefits, rather than ingredients—and blends often meet that criteria, NFM reported.

Other top-performing supplements in 2016 include turmeric/curcumin and cannabidiol, or CBD, which is emerging as a leading supplement for anxiety and pain management. Despite the regulatory grey area surrounding CBD, sales of CBD supplements grew more than 1700% last year, primarily in the natural channel, reported Hemp Business Journal. Leading market research firm SPINS named CBD oil one of the “ingredients to watch” in its 2016 Trend Watch report.

Other supplement categories of note include organic supplements, which grew 7.4% in 2016. Retailers in NFM’s Market Overview survey also cited probiotics, bone broth and kombucha as top growth categories.

Other categories showing strong growth in 2016 include organic meat, fish and poultry (9.1% growth); organic beverages (6%); organic condiments (6.3%); and organic personal care and other products (8.1% growth in 2016).

The Indie Universe: Over 26,000 Independent Stores

Among NFM’s findings is that, among independent natural products retailers, on average, 60% of a store’s offerings are organic and 40% are described as “natural.” Also, roughly half of all sales in independent natural retail stores are from products that are “Non-GMO certified.”

Additionally, NFM estimates there are 26,042 independent stores in the U.S., including health food stores, natural foods stores and supermarkets, specialty food stores, personal care and herb shops and related boutiques and kiosks, and natural chains including Whole Foods Market, GNC, Vitamin Shoppe, Natural Grocers by Vitamin Cottage, Sprouts Farmers Market, PCC, Earth Fare, Fresh Thyme Farmers Market, MOMs Organic Market, and others.

Click here to download the complete 2017 Market Overview report, including all data charts, published in the July/August 2017 edition of Natural Foods Merchandiser.

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Steven Hoffman is Managing Director of Compass Natural, a full service agency dedicated to Public Relations, brand marketing, digital communications, social media, and strategic business development in the healthy lifestyles market for natural, organic, regenerative and eco-friendly products and services. Contact steve@compassnatural.com.

Better for You Beauty: U.S. Natural Personal Care Sales Reach $5.7 Billion in 2016

The market for natural and organic personal care products, including cosmetics, skin and hair care and other products, reached $5.7 billion in 2016, an increase of 9.2 percent over the previous year, reported Global Cosmetic Industry Magazine in May 2017. “Consumers’ increasing focus on wellness – from diet to exercise to self-care – are a leading factor behind this growth,” said Naira Aslanian of the Kline Group, producer of the study.

According to the study, 67 percent of consumers who purchased natural and organic personal care products (NOPC) are trying to live a healthier lifestyle, and 49 percent of NOPC consumers consider them safer and of better quality than conventional alternatives. Most consumers who don’t purchase NOPC cite higher cost compared to conventional products.

Consumer concerns around ingredients and synthetic materials has boosted demand for natural formulations, and brands have responded with a spectrum of offerings from organicto wholly natural to what Aslanian described as “natural-inspired.”

According to Kline Group, facial treatments are the leading growth driver in skin care, which comprises the majority of U.S. natural beauty care products sales. Natural hair care sales have outpaced those of natural cosmetics, said Kline, in part due to lack of conventional retail growth for the latter segment.

Children’s personal care products are ripe for growth, too, according to market research firm Mintel. “Parents are information seekers when it comes to raising their kids and, therefore, could be more aware of ingredients to avoid in their children’s personal care products, as well as their own,” Jana Vyleta, health and personal care analyst at Mintel, told Global Cosmetic Industry Magazine. “This presents an opportunity for natural and organic personal care brands to target parents, as they should incentivize them to purchase both adult- and child-specific products.”

Whole Foods Market recently celebrated its third annual Beauty Week to raise awareness of the benefits of natural and organic personal care products. The natural grocer notably has disallowed more than 75 ingredients from the body care brands it carries, including phthalates, microbeads, triclosan, BHT, BHA and aluminum chlorohydrate.

Global Natural Health Supplements Market to Grow at 8 Percent CAGR

It’s the supplement a day that keeps the doctor away. Or so think the world’s consumers, as people prefer to adopt a healthy lifestyle and preventive healthcare, reports international market research firm Persistence Market Research in a new global market study released in April 2017.

Such interest in staying healthy and avoiding urban lifestyle-related diseases such as diabetes, obesity and high blood pressure will drive an estimated 8 percent CAGR from 2016 – 2024, projects Persistence Market Research. Valued at U.S. $37 billion in 2016, the global natural health supplements market is forecast to reach U.S. $70 billion by 2024.

“Growing adoption of self and direct medical practices is propelling growth of the global natural health supplements market in the coming years. Furthermore, upsurge in demand for natural health supplements among an older population suffering from disorders related to joints and bones is likely to fuel growth of the global natural health supplements market over the coming years,” said Persistence Market Research.

In addition to retail, growing trends of digitalization and e-commerce platforms will significantly boost growth of the global natural health supplements market, the market research firm added.

“People have begun realizing the importance of preventive health measures and therefore are drifting towards choices that decrease the negative effects of such lifestyle diseases,” said Persistence Market Research.

“Natural health supplements act as a healthy alternative to prevent such diseases. This has led to an explosive growth in the market for natural health supplements globally. Moreover, due to the increasing penetration of the Internet, various health magazines and online forums such as Livestrong.com and nutraceuticalworld.com provide vital information to consumers regarding the health benefits associated with the intake of natural health supplements. This has had a positive effect on the global natural health supplements market.”

Organic Products Growth Outpaces Overall Conventional Food Market; Hits 5 Percent Market Share

Market Research
Author- Steven Hoffman
Published In- June 2017 Presence Marketing / Dynamic Presence Newsletter

The news is just in from the Organic Trade Association (OTA) and it’s very good. Sales of organic products in the U.S. reached a record $47 billion in 2016, up from sales of $43.3 billion in 2015, reflecting overall growth of more than 8 percent. Compare that to a lackluster growth rate of less than 1 percent for the overall food industry, says OTA. Another significant first for the organic industry, reports OTA in its May 2017 Organic Industry Survey, is that organic food now accounts for more than 5 percent – 5.3 percent to be exact – of total U.S. food sales.

The organic industry is creating jobs, too, according to the OTA report. More than 60 percent of all organic businesses with more than five employees reported an increase of full-time employment in 2016, and said they planned to continue adding to their full-time work staff in 2017.

 Source: Organic Trade Association, May 24, 2017

Source: Organic Trade Association, May 24, 2017

“Organic farmers are not just staying in business, they’re often expanding. Organic handling, manufacturing and processing facilities are being opened, enlarged and retooled. Organic farms, suppliers and handlers are creating jobs across the country, and the organic sector is growing and creating the kinds of healthy, environmentally friendly products that consumers are increasingly demanding,” said Laura Batcha, CEO and Executive Director of OTA. Produce – organic fruits and vegetables – accounted for nearly 40 percent of overall organic food sales. Growing at 8.4 percent in 2016 – almost three times the 3.3 percent growth rate of total fruit and vegetable sales – organic fruits and vegetables now account for nearly 15 percent of the produce Americans eat, says OTA. Organic meat and poultry products, too, marked record growth of more than 17 percent in 2016 to $991 million. The category is expected to top $1 billion in sales in 2017 as consumers demand transparency and awareness continues to grow about the benefits of organic over conventionally produced meat, poultry and dairy products.

Other organic food categories showing explosive growth included organic dips, growing 41 percent to $57 million, and organic spices, posting a 35 percent increase to $193 million. Of the overall $47 billion in sales of organic products, non-food organic items claimed nearly $4 billion of that total. Organic fiber, supplements and personal care products accounted for the majority of those sales, reporting nearly 9 percent growth in 2016.“Increasing consumer awareness that what we put on our body is as important as what we put in our body is driving the growth in organic fiber sales, while a growing desire for transparency, clean ingredients and plant-based products is spurring sales of organic supplements and personal care products,” OTA noted. “Organic products of all sorts are now found in the majority of kitchens and households across our country,” said Batcha. “But the organic sector is facing challenges to continue its growth. We need more organic farmers in this country to meet our growing organic demand, and the organic sector needs to have the necessary tools to grow and compete on a level playing field. That means federal, state and local programs that help support organic research, and provide the organic farmer with a fully equipped tool kit to be successful.”