Panel Features Top Chef Host Padma Lakshmi, Other Notables, on Future of Food
Photo by Wikimedia Commons
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
Photo by Wikimedia Commons
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.”
Cross-Country Road2Wellness Tour Reaches the Finish Line at Making Strides Walkathon, Oct. 15, in Jones Beach, New York
FOR IMMEDIATE RELEASE
Cross-Country Road2Wellness Tour Reaches the Finish Line at Making Strides Walkathon, Oct. 15, in Jones Beach, NY
Raising awareness for cancer prevention and a cure, leading nutritional supplement maker Nature’s Answer CEO Frank D’Amelio, Jr., has led a team of riders on a 4,000-mile, cross- country motorcycle tour in partner with the American Cancer Society. The riders reach the finish line on October 15 at the start of the Making Strides Walkathon in Jones Beach, NY.
Hauppage, NY (October 11, 2017) – What does a coast-to-coast motorcycle tour and the American Cancer Society have in common? Both are hoping to raise awareness across America about cancer prevention, treatment and finding a cure during Breast Cancer Awareness Month in October.
Led by Frank D’Amelio, Jr., CEO of New York-based Nature’s Answer, one of the nation’s oldest and largest family owned manufacturers of nutritional supplements, along with a group of colleagues, the riders on the Road2Wellness Tour are covering 4,000-miles from San Diego to New York to kick-start the nonprofit Nature’s Answer Foundation with a mission to help educate communities and raise funds for prevention, treatment and research to finding a cure for cancer – a disease that has affected nearly every family in America.
During the 16-day road trip, which began September 30, the Road2Wellness Tour, held in partnership with the American Cancer Society, has included stops along the way to highlight the foundation’s support of health and wellness and cancer research organizations throughout the U.S., including the following organizations. The tour culminates October 15 at the starting line of the annual Making Strides Against Breast Cancer Walkathon in Jones Beach, NY.
American Cancer Society’s Hope Lodge – With 31 Hope Lodges across the U.S., the American Cancer Society’s Hope Lodge offers cancer patients and their families a free place to stay when their best hope for treatment may be in another city. The Nature’s Answer Foundation is proud to support Hope Lodge, and the Road2Wellness Tour included stops at Hope Lodge in Phoenix, AZ; Nashville, TN; and Hershey, PA.
Cold Spring Harbor Laboratory – Founded in 1890 in Cold Spring Harbor, and home to eight Nobel Laureates, the Cold Spring Harbor Laboratory is one of the world’s preeminent institutes specializing in cancer, molecular biology and genetics research.
Making Strides Against Breast Cancer Walkathon – The Road2Wellness Tour riders reach the finish line at 7:00 am on the morning of Sunday, October 15, in Jones Beach, NY, where they will join 250 Nature’s Answer employees, family and friends at the starting line of the annual Making Strides Against Breast Cancer Walkathon.
Southwest College of Naturopathic Medicine – Southwest College of Naturopathic Medicine in Phoenix, AZ, is a premier university for naturopathic practitioners. SCNM is one of seven accredited naturopathic medical schools in North America.
St. Jude Children’s Research Hospital – Families never receive a bill from St. Jude’s for treatment, travel, or lodging for life-threatening childhood illnesses. Most of the funding for this world-renowned children’s research hospital, based in Memphis, TN, comes from donors, with only 14% coming from insurance – a vastly different model from other hospitals, and one supported by the Nature’s Answer Foundation.
Social media coverage of the tour using #road2wellnesstour has featured frequent updates and live streaming on Facebook (Nature’s Answer); Twitter (@natures_answer); Instagram (naturesanswer and road2wellnesstour); and on the tour’s website, www.road2wellnesstour.com.
Nature’s Answer will donate 10% of total product sales across all channels of distribution during the entire month of October to the Nature’s Answer Foundation, to be distributed to various charities to support cancer research. In addition, select Road2Wellness Tour gear is available online at www.road2wellnesstour.com, with the net proceeds from the sale of these items to be donated to qualifying charities, as well.
For more information and a complete tour schedule, to see a list of our partners, and to make a tax-deductible donation, please visit www.road2wellnesstour.com. To schedule an interview with Nature’s Answer CEO Frank D’Amelio, Jr., contact Steven Hoffman, steve@compassnaturalmarketing.com, tel 303.807.1042.
About Nature’s Answer
Founded in 1972 by Frank D’Amelio, Sr., along with his wife Josephine, Nature’s Answer® is one of the largest family owned and operated manufacturers of nutritional supplements in North America. Today, Nature's Answer continues to combine the best of traditional herbal remedies, vitamins and minerals with innovative scientific techniques and phytopharmaceutical manufacturing to deliver supplements of the finest quality and value for the entire family. Visit www.naturesanswer.com.
About the Nature’s Answer Foundation
Established in 2017 as a tax-deductible, nonprofit 501c3 organization, the mission of the Nature’s Answer Foundation is to support scientific research to help find a cure for cancer and other leading diseases, promote preventive health education, and raise funds for these important causes. Please visit our website, Nature’s Answer Foundation.
Contact
Steven Hoffman, tel 303.807.1042, steve@compassnaturalmarketing.com
Christine Berry, tel 631.840.3153, cberry@bio-botanica.com
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The Road2Wellness Tour is Coming To Colorado
FOR IMMEDIATE RELEASE
The Road2Wellness Tour is Coming To Colorado
Supporting local organizations and raising awareness for cancer prevention and a cure, leading nutritional supplement maker Nature’s Answer CEO Frank D’Amelio, Jr., is leading a team of riders on a cross-country motorcycle tour in partnership with the American Cancer Society and to raise funds for cancer research, with stops in Colorado and Kansas.
Boulder, CO (October 4, 2017) – What does a coast-to-coast motorcycle tour and the American Cancer Society have in common? Both are hoping to raise awareness across America about cancer prevention, treatment and finding a cure during Breast Cancer Awareness Month in October.
Led by Frank D’Amelio, Jr., CEO of Nature’s Answer, one of the nation’s oldest and largest family owned manufacturers of nutritional supplements, along with a group of colleagues, the riders on the Road2Wellness Tour are covering 4,000-miles from San Diego to New York to kick-start the nonprofit Nature’s Answer Foundation with a mission to help educate communities and raise funds for prevention, treatment and research to finding a cure for cancer – a disease that has affected nearly every family in America.
During the 16-day road trip from September 30 to October 15, the Road2Wellness Tour, held in partnership with the American Cancer Society, includes stops along the way to highlight support of health and wellness and cancer research organizations throughout the U.S., including the following tour stops in Colorado and Kansas:
Alfalfa’s Market, Friday, October 6, 10:00 am (local time)
1651 Broadway, Boulder, CO 80302
Independently owned natural foods grocer Alfalfa’s Market, with stores in Boulder and Louisville, CO, has long been a natural products industry pacesetter and pioneer, as well as a leader in the Colorado community. With a stop at the Boulder store, visitors can meet the Tour riders, learn about cancer prevention, and sample wellness products from Nature’s Answer.
Green Acres Market – Bradley Fair, Saturday, October 7, 11:30 am (local time)
8141 E 21st St N, Wichita, KS 67206
Green Acres Market is hosting lunch for the Road2Wellness Tour riders at its Bradley Fair store in Wichita, KS. Voted 2014 Retailer of the Year by Whole Foods Magazine, family owned Green Acres Market, with eight stores in Kansas, Missouri and Oklahoma, is dedicated to creating more sustainable communities and helping customers on their journey to wellness.
Additionally, the Road2Wellness Tour will highlight:
American Cancer Society’s Hope Lodge – With 31 Hope Lodges across the U.S., the American Cancer Society’s Hope Lodge offers cancer patients and their families a free place to stay when their best hope for treatment may be in another city. The Nature’s Answer Foundation is proud to support Hope Lodge, and the Road2Wellness Tour includes stops at Hope Lodge in Phoenix, AZ; Nashville, TN; and Hershey, PA.
Southwest College of Naturopathic Medicine – Southwest College of Naturopathic Medicine is one of the nation’s premier universities for naturopathic practitioners. SCNM is one of seven accredited naturopathic medical schools in North America.
Cold Spring Harbor Laboratory – Founded in 1890 and home to eight Nobel Prize winners, the nonprofit Cold Spring Harbor Laboratory is one of the world’s preeminent institutes specializing in cancer, molecular biology and genetics research.
Making Strides Against Breast Cancer Walkathon – The riders reach the finish line in Jones Beach, NY, on October 15 at the Making Strides Walkathon where they will join 250 Nature’s Answer employees, friends and family participating in the walk.
Social media coverage of the tour using #road2wellnesstour will feature frequent updates and live streaming on Facebook (Nature’s Answer); Twitter (@natures_answer); and Instagram (naturesanswer and road2wellnesstour).
Nature’s Answer will donate 10% of total product sales across all channels of distribution during the entire month of October to the Nature’s Answer Foundation, to be distributed to various charities to support cancer research. In addition, select Road2Wellness Tour gear is available online at www.road2wellnesstour.com, with the net proceeds from the sale of these items to be donated to qualifying charities, as well.
For more information and a complete tour schedule, to see a list of our partners, and to make a tax-deductible donation, please visit www.road2wellnesstour.com. To schedule an interview with Nature’s Answer CEO Frank D’Amelio, Jr., contact Steven Hoffman,
steve@compassnaturalmarketing.com, tel 303.807.1042.
About Nature’s Answer
Founded in 1972 by Frank D’Amelio, Sr., along with his wife Josephine, Nature’s Answer® is one of the largest family owned and operated manufacturers of nutritional supplements in North America. Today, Nature's Answer continues to combine the best of traditional herbal remedies, vitamins and minerals with innovative scientific techniques and phytopharmaceutical manufacturing to deliver supplements of the finest quality and value for the entire family. Visit www.naturesanswer.com.
About the Nature’s Answer Foundation
Established in 2017 as a tax-deductible, nonprofit 501c3 organization, the mission of the Nature’s Answer Foundation is to support scientific research to help find a cure for cancer and other leading diseases, promote preventive health education, and raise funds for these important causes. Please visit our website, Nature’s Answer Foundation.
Contact
Steven Hoffman, tel 303.807.1042, steve@compassnaturalmarketing.com
Christine Berry, tel 631.840.3153, cberry@bio-botanica.com
# # #
The Bikes Are Shipped, the Crew is Ready, and the Road2Wellness Tour is About to Begin
FOR IMMEDIATE RELEASE
The Bikes Are Shipped, the Crew is Ready, and the Road2Wellness Tour is About to Begin
Hauppage, NY (September 26, 2017) –
The motorcycles have been blessed and shipped from New York to Los Angeles. The riders are ready to embark on a 4,000-mile, coast-to-coast journey. On September 30, the Road2Wellness Tour, with a mission to raise awareness of and funds for cancer prevention, treatment and research, is set to begin.
After receiving an official “blessing of the bikes” from Reverend Father Antony Asir of St. Thomas More Parish, the tour will be led by Frank D’Amelio, Jr., CEO of Nature’s Answer, one of America’s largest and oldest family owned manufacturers of nutritional supplements, along with a group of New York-based colleagues who will spread the word about cancer awareness during their 16-day road trip from the Pacific to the Atlantic Ocean by motorcycle.
The Road2Wellness Tour, held in partnership with the American Cancer Society and timed to coincide with Breast Cancer Awareness Month, will begin in Los Angeles and include stops along the way to highlight our support of the following organizations, including:
Hope Lodge – With locations throughout the U.S., the American Cancer Society’s Hope Lodge offers cancer patients and their families a free place to stay when their best hope for treatment may be in another city.
Southwest College of Naturopathic Medicine – One of the nation’s premier universities for naturopathic practitioners, the tour will stop at SCNM in Phoenix.
Cold Spring Harbor Laboratory – Founded in 1890 and home to eight Nobel Prize winners, the nonprofit Cold Spring Harbor Laboratory is one of the world’s preeminent institutes specializing in cancer, molecular biology and genetics research.
Making Strides Against Breast Cancer Walkathon – The riders reach the finish line in Jones Beach, NY, on October 15 at the Making Strides Walkathon where they will join 250 Nature’s Answer employees, friends and family participating in the walk.
The Road2Wellness Tour also includes stops at key retailers in Southern California, Phoenix, Denver and Boulder, Wichita, KS, Memphis and Nashville, TN, and New York to raise awareness on a local level. Social media coverage of the tour using #road2wellnesstour will feature frequent updates and live streaming on Facebook (Nature’s Answer); Twitter (@natures_answer); and Instagram (naturesanswer and road2wellnesstour).
“We wanted to do some good and help people share their stories,” said D’Amelio, who has lost several family members to breast cancer. “I’m excited for the ride itself, and I’m honored to support Hope Lodge, Cold Spring Harbor Laboratory, and more. We’ve got a lot of work to do, and this first annual Road2Wellness Tour is just the beginning.”
Nature’s Answer will donate 10% of total product sales across all channels of distribution during the entire month of October to the Nature’s Answer Foundation, to be distributed to various charities to support cancer research. In addition, select Road2Wellness Tour gear is available online at www.road2wellnesstour.com, with the net proceeds from the sale of these items to be donated to qualifying charities, as well.
For more information and a complete tour schedule, to see a list of our partners, and to make a tax-deductible donation, please visit www.road2wellnesstour.com.
To schedule an interview with Nature’s Answer CEO Frank D’Amelio, Jr., contact Steven Hoffman, steve@compassnaturalmarketing.com, tel 303.807.1042.
About Nature’s Answer
Founded in 1972 by Frank D’Amelio, Sr., along with his wife Josephine, Nature’s Answer® is one of the largest family owned and operated manufacturers of nutritional supplements in North America. Today, Nature's Answer continues to combine the best of traditional herbal remedies, vitamins and minerals with innovative scientific techniques and phytopharmaceutical manufacturing to deliver supplements of the finest quality and value for the entire family. Visit www.naturesanswer.com.
About the Nature’s Answer Foundation
Established in 2017 as a tax-deductible, nonprofit 501c3 organization, the mission of the Nature’s Answer Foundation is to support scientific research to help find a cure for cancer and other leading diseases, promote preventive health education, and raise funds for these important causes. Please visit our website, Nature’s Answer Foundation.
Contact
Steven Hoffman, tel 303.807.1042, steve@compassnaturalmarketing.com
Christine Berry, tel 631.840.3153, cberry@bio-botanica.com
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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.
Photo by Compass Natural
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.
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.
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
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
Source: Natural Foods Merchandiser, July/August 2017, published by New Hope Network
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
Photo: Pexels
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
Source: Wikimedia Commons
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
“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.”