HealthLine Projects the Top 7 Vitamin and Supplement Trends of 2021
Photo: Pexels
This article originally appeared in Presence Marketing’s April 2021 Industry Newsletter
By Steven Hoffman
The dietary supplement industry experienced its highest growth in more than two decades, with a 12.1% increase in 2020 as U.S. consumers focused during the coronavirus pandemic on improving their health and fitness and boosting immunity and wellness, reported HealthLine. The growth trend is expected to continue into 2021, with the following seven trends highlighted by HealthLine for the coming year: 1. Stress and Mental Health – consumers are turning to supplements to support mental health, and a recent report anticipates brain and mental health supplements will grow 8.5% over the next six years; 2. Beauty Support – there’s an increased interest in beauty as a subcategory of the supplements industry, said HealthLine, which reported that Google searches for collagen supplements increased 33% over the past year; 3. Immune Health – there’s been a 50% increase in consumers seeking out immune supporting supplements, according to HealthLine, and expect to see growth in sales of zinc, selenium, B complex vitamins, vitamins C and D, elderberry, echinacea, astragalus, turmeric, ginger, and in particular, medicinal mushroom extracts including chaga, cordyceps, lion’s mane, reishi and others; 4. Vitamin D – As studies link low vitamin D levels with increased risk of complications from COVID-19, vitamin D continues to lead the charge as the top nutrient for overall health, HealthLine said; 5. More Enjoyable Supplement Experiences – Think gummies as consumers seek more convenient and enjoyable delivery vehicles for dietary supplements; 6. Trustworthy Companies – consumers are becoming increasingly knowledgeable about their health, and they’re growing wary of misleading or false health claims, and consumers will pay more for brands they trust to be transparent and honest about their products; and 7. Pet Nutrition – among the fastest growing categories in the pet industry are supplements and pet food products to help ease anxiety, aid skin issues and improve our pets’ gut health, and the pet dietary supplements market is projected to reach a valuation of #3.78 billion by the end of 2021, HealthLine reported.
Natural and Organic Products Sales Grow 12.7% to $259 Billion in 2020
Photo: Pexels
This article originally appeared in Presence Marketing’s April 2021 Industry Newsletter
By Steven Hoffman
Natural and organic products sales grew an estimated 12.7% to $259 billion, with sales on track to surpass $300 billion by 2023, reported New Hope Network at its virtual Spark Brand Success event, held March 2-4, 2021. Sales were accelerated by the COVID-19 pandemic, as consumers cooked more meals at home and developed a greater interest in healthier food, wellness and boosting immunity. “2020 was a challenging year. But natural and organic brands face a bright future. We are positioned where a growing number of consumers are headed,” Carlotta Mast, SVP and Market Leader at New Hope Network said at the event, the Fermentation Association reported. Natural and organic food and beverages (39% of total sales) and functional food and beverages (31% of total sales) dominate the market, reported the Fermentation Association. Other key findings include: Consumers are prioritizing health and are seeking immunity-boosting and nutrient-dense foods. However, while consumers are focusing on health and wellness more than ever, they’re also struggling with junk food, lack of exercise, and anxiety and sleep issues emerged in 2020. Also, binge drinking is up a disturbing 41% among women since the start of the pandemic, Mast noted. Consumers want less sugar and fewer carbs and additives, and plant-based foods, pantry staples, frozen foods and meat/fish/poultry experienced the highest growth rates, while snack foods and packaged and prepared foods declined as fewer people opted for grab and go offerings during lockdown. Of note, Mast said the pandemic accelerated e-commerce sales, which grew 60% in 2020, generating $16.5 billion in natural and organic products sales. She noted that natural products are outpacing conventional products in e-commerce, with natural shoppers spending on average twice as much as those that buy “traditional” items online. “As you all know, organic is mainstream now,” Mast said. “During other economic downturns that we’ve experienced, the organic sector has typically taken a hit when it comes to sales growth, but not in 2020,” she said.
Join Carlotta Mast and Ryan Pintado-Vertner on Compass Coffee Talk, April 14, 11:30am EDT
Dismantling Barriers
Join Carlotta Mast and Ryan Pintado-Vertner as they discuss 'The Path to Systemic Change in the Natural Products Industry through Justice, Equity, Diversity, and Inclusion (J.E.D.I)’
Wednesday, April 14, 11:30am - Noon EDT
Zoom, Admission is Free
Carlotta Mast (Left) and Ryan Pintado-Vertner (Right)
Industry veterans and co-hosts of Compass Coffee Talk Bill Capsalis and Steven Hoffman will chat in real time with Carlotta and Ryan via Zoom and share with entrepreneurs, business leaders, and communicators ways to dismantle barriers and work toward systemic change in the natural products industry. Carlotta, also the co-founder of the Justice, Equity, Diversity, and Inclusion (J.E.D.I.) Collaborative, will speak on how the organization helps shape productivity in an increasingly multicultural marketplace. Additionally, Ryan will provide insight on how J.E.D.I. can help mission-driven brands and organizations capitalize on growth while also maximizing the company’s ability to create racial, economic, and climate justice.
About Carlotta Mast
With 20 years of experience, Carlotta has her finger on the pulse of new health, wellness and natural product trends and the forces shaping consumer attitudes and behaviors. Carlotta is a frequent speaker at industry events and conferences and has been interviewed about the natural products industry, regulatory issues and market performance by media outlets including The New York Times, Cosmopolitan, NPR, ABC News, BusinessWeek and many others.
About Ryan Pintado-Vertner
Ryan Pintado-Vertner is the Founder & Principal at Smoketown, a boutique consultancy that helps mission-driven brands and organizations maximize their growth while also maximizing their ability to create racial justice, economic justice and climate justice. Smoketown's empathy-driven work includes brand and innovation strategy, consumer research, outsourced marketing management, and mission refinement.
About Compass Coffee Talk™
Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.
Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry. Learn more.
VIEW OUR PAST COMPASS COFFEE TALK EPISODES ON YOUTUBE
U.S. Hemp Brokerage Adds Willie Nelson’s Willie’s Remedy™, Wana Wellness™, First Crop™ and Plain Jane™ to Its Portfolio of Hemp and CBD Brands
FOR IMMEDIATE RELEASE
“On the Road Again”
U.S. Hemp Brokerage Adds Willie Nelson’s Willie’s Remedy™, Wana Wellness™, First Crop™ and Plain Jane™ to Its Portfolio of Hemp and CBD Brands
In addition to representing the country music icon’s hemp extract brand, Willie’s Remedy™, in natural channel retail and distribution, U.S. Hemp Brokerage has added to its product portfolio Wana Wellness™, a new line of hemp offerings from leading cannabis company Wana Brands; First Crop™, a standard setter in USDA Certified Organic hemp-derived CBD products; and Plain Jane™, the fastest-growing smokable hemp brand in the nation.
“If you haven’t heard of us yet, we expect you will very soon.” – Jeff Cole, Founder and Managing Director, U.S. Hemp Brokerage
Longmont, CO (March 15, 2021) – Manufacturers in the natural food, beverage, personal care and dietary supplement markets have long engaged sales brokerage firms to help represent them to leading independent and chain grocers and retailers across the country.
Now, Colorado-based U.S. Hemp Brokerage LLC (USHB) is firmly positioned to become the premiere brokerage firm exclusively dedicated to preparing and selling the highest quality and most efficacious hemp-derived consumer products market-wide.
USHB offers natural channel retailers a full range of products, including full-spectrum hemp extracts, dietary supplements and personal care products, and hemp-infused coffees, teas, functional foods, beverages and more. The brokerage also has extensive experience in promoting and selling related non-cannabinoid hemp-derived consumer products such as hemp bioplastics, clothing, bedding, furniture and more. In addition, USHB represents leading smokable hemp brands including Diesel Hemp, Plain Jane and Star Farm Organics.
Launched in 2019, U.S. Hemp Brokerage spent the pandemic months retooling and reinventing itself. “We decided to go small last year, and feel very fortunate to be coming through this pandemic stronger than when we first launched,” said Jeffrey Cole, a hemp industry sales, marketing, communications and media veteran, who founded U.S. Hemp Brokerage and serves as its Managing Partner.
Visit U.S. Hemp Brokerage at NoCo Hemp Expo, March 26-27, 2021, at the National Western Complex in Denver, CO. Visit www.nocohempexpo.com for more information.
Representing All-Star Brands
Having worked over the past year in building its brand portfolio, the U.S. Hemp Brokerage team is excited to represent the following leading brands, offering natural channel retailers full-service, COVID-compliant, customized promotional marketing and demo support.
Willie’s Remedy™ – U.S. Hemp Brokerage is pleased to announce it has been appointed to represent in the natural retail channel Willie Nelson’s brand Willie’s Remedy™, a Denver, CO-based line of organically grown, full spectrum hemp-infused products. The product line was inspired by legendary country music icon Willie Nelson and his wife Annie Nelson, and includes hemp-infused coffee, tea, tinctures, and topicals which are coming this year.
First Crop™ – Complementing the Willie’s Remedy product line, USHB was appointed to provide market readiness consulting and brokerage services for First Crop™, the Santa Fe, NM, CBD farm and product group dedicated to regenerative and organic agriculture. First Crop manufactures USDA Certified Organic hemp products including functional tinctures and supplements, such as Calm and Sleep, made with full spectrum hemp extract and adaptogenic botanicals. “First Crop sets an innovative new standard for adaptogenic hemp products. We’re honored to represent them,” said Cole.
Wana Wellness™ – In addition, USHB is pleased to represent Wana Wellness™, a brand new line of hemp-derived wellness products from top-selling cannabis manufacturer Wana Brands. A pioneer in edibles since 2010, Wana has made its name by incorporating quality ingredients and innovative, health-conscious recipes that eliminate high fructose corn syrup and are gluten free. Wana Wellness leverages this experience in its broad-spectrum hemp oil CBD gummies and line of tinctures that blend beneficial herbs with premium broad spectrum hemp extract.
U.S. Hemp Brokerage also represents other leading hemp extract lines including Hemp Luxe – a line of full-spectrum tinctures, topicals and gummies launched by leading Ohio-based independent natural products retailer Mustard Seed Market; Green Cherry Organics; Restorative Botanicals; Pure Kind Botanicals; and other breakout brands. Visit https://www.ushempbrokerage.com/brands/.
“It’s great to have the USHB product portfolio of 300-plus SKUs from these amazing brands. We carry half of the brands in USHB’s portfolio right now,” said Christin Evans, Supplements Manager at Lucky’s Market in Boulder, who went on to say she has worked with Cole and USHB partners since 2016, before the brokerage was founded.
Providing Complete, COVID-compliant, Retailer Promotional Support
“We are one of the first branded product groups dedicated to hemp-derived products that provides promotional support program management,” Cole noted. “We’ve been working with retail partners including Lucky’s Market, Alfalfa’s Market and others to create custom hemp displays, end caps and pricing that many retailers desperately need at this time,” he said.
“Also, many retailers are excited about our COVID-compliant demo opportunities, which make a big difference in our sales. Overall, we’ve worked with more than 700 stores nationally through all the brands we’ve represented. If you haven’t heard of us yet, we expect you will very soon,” Cole added.
“While it’s been a challenging year for finished, branded hemp-derived products, we look forward to expanding our services and product lines. We listen to our retail partners, learn what they want, and create customized, co-branded programs especially for their markets. Such custom promotional and merchandising programs are available to natural channel retailers nationwide for Willie’s Remedy™, First Crop™ and others,” he said.
In addition to consumer products, U.S. Hemp Brokerage’s materials division serves the markets for bast, hurd, fiber, wood and plastics derived from industrial hemp. The company also deals in extraction and other hemp processing machinery, and technology, including applications and software for hemp consumers and industry, through the development of its solely-owned shopping cart and e-commerce platform, “not to mention our advanced automation relationship that will soon deliver our brands to market on a continuous basis,” Cole said.
About U.S. Hemp Brokerage LLC
Based in Boulder County, Colorado, U.S. Hemp Brokerage LLC (USHB) is dedicated to providing hemp farmers, processors and manufacturers with high-quality professional sales brokerage services to retail and wholesale customers. Since 2015, the leadership and associate team members of USHB have actively farmed industrial hemp, developed hemp brands and marketed them to local, regional and national wholesale and retail clients, including such natural, conventional and specialty retail leaders as Lucky’s Market, Sprouts Farmers Market, Natural Grocers, Alfalfa’s Market, Wegmans, Giant Eagle, Bed, Bath & Beyond, Target, CVS, Safeway, Albertson’s, Publix and other mass and natural grocery chains. The products and brands we represent have been carefully selected with a close eye on CGMP practices, compliance and traceability. Visit www.ushempbrokerage.com and on Facebook.
U.S. Hemp Brokerage will showcase its portfolio of branded products at NoCo Hemp Expo, March 25-27, 2021, at National Western Complex in Denver, CO. In addition, founder Jeff Cole will be moderating a panel titled Shelf Interest: the State of Hemp and CBD Retailing, on Friday, March 26, at the event. For more information, visit www.nocohempexpo.com.
Contact:
Jeff Cole, U.S. Hemp Brokerage, jcole@ushempbrokerage.com, tel 719.217.7230
Steven Hoffman, Compass Natural, steve@compassnatural.com, tel 303.807.1042
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Join Blair Kellison, CEO of Traditional Medicinals, on Compass Coffee Talk, March 17, 11:30am EST
Liquid Wisdom
Join Blair Kellison, CEO of the pioneering natural products brand Traditional Medicinals, as he shares the secret to his company's long-term success on Compass Coffee Talk.
Wednesday, March 17, 11:30 am – Noon EST
Zoom, Admission is Free
Blair Kellison, CEO, Traditional Medicinals
Featured guest Blair Kellison, CEO of Traditional Medicinals, joins Compass Coffee Talk. Kellison will share the story of the healing power of plants and the founding story behind one of the most successful, globally-known tea brands and its keys to success. Join the conversation and hear how the top tea company maintained a strong supply chain and built a legacy brand in the natural products industry during a pandemic
About Blair Kellison
Blair Kellison is the CEO of Traditional Medicinals, a mission-driven, organic, and fair-trade wellness tea company based in Sonoma County, CA. Blair came to Traditional Medicinals in 2008 in its 34th year to partner with co-founder Drake Sadler and became the company's first non-founder CEO. Blair is a former CPA with Ernst & Young, a brand manager with Nestle, and he received his MBA from Booth at The University of Chicago.
Thanks to our Sponsors!
About Compass Coffee Talk™
Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.
Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry. Learn more.
View our Past Compass Coffee Talk Episodes on YouTube
John Mackey, Co-Founder and CEO of Whole Foods Market, to Give Exclusive Interview with Compass Coffee Talk™
FOR IMMEDIATE RELEASE
John Mackey, Co-Founder and CEO of Whole Foods Market, to Give Exclusive Interview with Compass Coffee Talk™
Entrepreneurs, Marketers, and Innovators Are Invited to Join the Conversation with Natural Products Retail Pioneer, John Mackey, as he Discusses his New Book, ‘Conscious Leadership,’ February 25, 2021, 11:30 am EST
What: Compass Coffee Talk™
To Register: John Mackey, Co-Founder and CEO, Whole Foods Market, February 25, 2021,
11:30 am – 12:15 pm EST
Presented By: Compass Natural, Connecting Media and Markets in Natural and Organic Products
Sponsored By: Allegro Coffee and Presence Marketing
Boulder, CO (February 8, 2021) – John Mackey, Co-Founder and CEO of Whole Foods Market, will participate in a rare natural products industry interview with Compass Coffee Talk on Thursday, Feb. 25, 2021, 11:30 am – 12:15 pm EST. Mackey will discuss his latest book, “Conscious Leadership: Elevating Humanity Through Business,” a follow-up to the groundbreaking bestseller Conscious Capitalism — sharing what it takes to lead a purpose-driven, sustainable business.
John Mackey, Co-Founder and CEO, Whole Foods Market
Entrepreneurs interested in hearing John Mackey’s perspectives on business will have an opportunity to hear first-hand from the natural products executive during Compass Coffee Talk’s live episode via Zoom. Mackey will reflect on how Whole Foods Market has transformed in the past 40 years and share what’s ahead for the company in the next decade, including what it means to lead a business during these unprecedented times.
In his book Conscious Leadership, Mackey writes, “A conscious leader needs to be actively appreciative. We can be tough leaders at times, we can and should be strong, but at the end of the day, human beings respond best to care and appreciation. It’s important to remember that in business, everything we accomplish is ultimately done with and through other people. That is what conscious leaders do—we inspire, motivate, develop, and lead others.”
Compass Coffee Talk’s co-hosts Steve Hoffman and Bill Capsalis are looking forward to John Mackey’s participation on the show. "It’s not every day you get an opportunity to sit down and chat with legendary Whole Foods Market Co-Founder and CEO, John Mackey. We’re more than thrilled to be hosting an exclusive chance to speak with John in an intimate live setting and learn insights from his books and stories from his four decades in business at the nation’s top natural products grocer,” said Steven Hoffman, Managing Director, Compass Natural Marketing and Co-Host, Compass Coffee Talk.
Anyone who is involved in the natural products industry, entrepreneurs, marketers, brand managers, and communicators are encouraged to join in the conversation. Registration is free, and attendees can sign up here.
About John Mackey
John Mackey, Co-Founder and CEO of Whole Foods Market, has built the natural and organic grocer from a single store in Austin, Texas in 1978, into a Fortune 500 company, which went public in 1992, and was purchased by Amazon in 2017. Today, Whole Foods Market is a top U.S. supermarket with more than 500 stores and 95,000 Team Members across the U.S., Canada, and U.K. While devoting his career to helping shoppers satisfy their lifestyle needs with quality natural and organic foods, Mackey has also focused on building a more conscious way of doing business.
Compass Coffee Talk Sponsors
Compass Coffee Talk gives special thanks to its sponsors Allegro Coffee and Presence Marketing.
Allegro Coffee Powers Compass Coffee Talk™
Colorado-based Allegro Coffee, a specialty coffee company that believes that where and how coffee is grown matters. Since 1977, Allegro Coffee has been committed to sourcing the highest quality coffee from farmers dedicated to environmental stewardship and worker livelihood.
Presence Marketing
Presence Marketing is the nation’s leading independently owned natural foods broker. Over the past 25 years, Presence has grown from a small and humble Midwest-based natural and organic food brokerage to a national powerhouse with more than 500 employees.
About Compass Coffee Talk™
Compass Coffee Talk™ features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of all sizes to succeed in the marketplace. Hosted by natural and organic products industry veterans Bill Capsalis and Steve Hoffman, Compass Coffee Talk is produced by Compass Natural Marketing, a leading P.R., branding, and business development agency serving the natural and organic products industry.
Contact
Bill Capsalis, Co-Host, 303.808.3441, bill@compassnaturalmarketing.com
Steven Hoffman, Co-Host, 303.807.1042, steve@compassnaturalmarketing.com.
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Grüvi, a Colorado-Based, Alcohol-Free Craft Brewery, Launches New Beer Varieties, Encourages Consumers to Skip the Hangover this Year
FOR IMMEDIATE RELEASE
Grüvi, a Colorado-Based, Alcohol-Free Craft Brewery, Launches New Beer Varieties, Encourages Consumers to Skip the Hangover this Year
Family-owned Beverage Brand Positioned to Make a Splash in the Non-Alcohol Spirits Category
Denver, CO (January 25, 2021) – Coloradoans who crave craft beer, minus the alcohol, have a new choice when it comes to socially drinking without the buzz this year, thanks to Grüvi, a new non-alcohol brewery. This winter, the company plans to release its newest beer varieties – the Golden Lager and Juicy IPA. Both will be available at select stores along the Front Range soon.
Established in 2020, Denver-based Grüvi offers a line of artisan-inspired, alcohol-free beverages, featuring well-known beer varieties such as IPA, Lager, Pale Ale, Sour Weisse, and Stout. Grüvi also has an alcohol-free product line available for wine lovers, including a Bubbly Rose and Dry Secco.
Even though the company is only a year old, it is already positioning itself as a category disruptor in the alcohol-free spirits industry. “The non-alcoholic beer and wine category has been ignored for so long, and we saw a need for innovation, education, and new brands,” said Niki Sawni, Founder and CEO of Grüvi. “At Grüvi, our goal is to help people find their ideal moment for a non-alcoholic beer and delight them with our taste and quality.”
Award-Winning Taste
This past fall, Grüvi’s team took home the People’s Choice Award and 1st Place at Naturally Boulder’s 16th Annual Pitch Slam & Autumn Awards. Sawni and her team competed against ten other brands in the natural products industry. Each company presented a timed 3-minute business pitch, including a question-and-answer session with a panel of judges who ultimately voted for the best brand.
The first-place prize pack included a free booth at Natural Products Expo East in 2021 with a guaranteed opportunity to pitch at the Expo East Pitch Slam. Additionally, the first-place winner will receive a robust suite of business services from sponsors, such as free financial and legal advice, packaging design, strategy consulting, and more – a total package worth $100,000.
Get your Gruv On
Enjoy the best non-alcoholic craft beverages on the market and look for the product line in the following eight states: Arizona, Colorado, Illinois, Pennsylvania, Vermont, Michigan, Minnesota, and New Mexico. For more information about Grüvi’s products, including its store locator, visit getgruvi.com.
About Grüvi
Grüvi is a small, family-owned brewery based in Denver, working to make the best craft, non-alcoholic beers on the market. The current product offerings include an IPA, Pale Ale, Stout, Sour, Bubbly Rosé & Prosecco. The company is always working to create new and unique styles. At Grüvi, the mission is simple - help others be healthy and stay social, one drink at a time.
Contact
Steven Hoffman, Compass Natural, 303.807.1042, steve@compassnaturalmarketing.com
# # #
Conscious Leadership: Join John Mackey on Compass Coffee Talk, February 25, 2021, 11:30am EST
Conscious Leadership
Join John Mackey, Co-Founder and CEO of Whole Foods Market, for a rare natural products industry interview with Compass Coffee Talk.
Thursday, February 25, 11:30 am – 12:15 pm EST
Zoom, Admission is Free
Featured guest John Mackey, Co-Founder and CEO of Whole Foods Market, joins Compass Coffee Talk. Mackey will discuss his latest book, “Conscious Leadership: Elevating Humanity Through Business,” a follow-up to groundbreaking bestseller Conscious Capitalism — revealing what it takes to lead a purpose-driven, sustainable business.
About John Mackey
John Mackey, Co-Founder and CEO of Whole Foods Market, has built the natural and organic grocer from a single store in Austin, Texas in 1978, into a Fortune 500 company, which went public in 1992, and was purchased by Amazon in 2017. Today, Whole Foods Market is a top U.S. supermarket with more than 500 stores and 95,000 Team Members across the U.S., Canada, and U.K. While devoting his career to helping shoppers satisfy their lifestyle needs with quality natural and organic foods, Mackey has also focused on building a more conscious way of doing business.
THANKS TO OUR SPONSORS, ALLEGRO COFFEE AND PRESENCE MARKETING!
About Compass Coffee Talk™
Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.
Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry. Learn more.
Natural Products Leaders Share their Outlook for 2021
Photo: Pixabay
This article originally appeared in Presence Marketing's January Newsletter and New Hope Network's IdeaXchange
By Steven Hoffman
If hindsight is 2020, then it’s anybody’s guess what 2021 will bring. And yet, that’s exactly what we asked these natural and organic products business leaders. Because if we can’t learn anything from the tsunami of the year that was 2020, then what’s it all for, one might ask? Read on to help prepare for a coming year of challenge and opportunity.
The Natural Industry is Primed to Serve – Russ Forester, SVP, Analytics and Insights, Hain Celestial Group
Russ Forester is an 18-year veteran at the Hain Celestial Group where, as SVP of Analytics and Insights, he provides category management expertise and consumer insights to help drive the company’s growth strategy. The publicly held company, with more than $2 billion in annual sales, owns a number of leading natural and organic brands, and has benefitted from the pandemic-driven shift to at-home eating and the consumer’s renewed focus on health and wellness.
“This past year, we’ve seen a shift to e-commerce, but where we’re really seeing the growth is not in ship-to-home from UPS or FedEx, for example. It’s coming from ordering from local grocers; sales are shifting 10-15% to this model, whether it’s curbside pickup or Instacart-style delivery, even to the point where certain retailers’ in-store sales may be down, but when you add in the online ordering channels, the overall sales are growing,” Forester observed.
“To paraphrase the CEO of Instacart, what we thought would take five years of adoption rates happened in five weeks. The pandemic, while creating a financial crisis, is driven by health concerns, and our industry is primed to serve that. Food is medicine, and products with a functional or immunity benefit, such as the wellness tea category, are doing very well,” he said.
Forester noted that premium brands are doing well across all income levels. “People are not traveling or dining out as much, so they are treating themselves to premium food at home. For those who are doing well, they’ve got more disposable income. We’re also seeing lower income shoppers are increasing their dollars in premium products. People are trying to find new ways to keep their families fed and healthy,” he added.
For smaller brands, the pandemic has created greater challenges for product discovery. “How do you use marketing tools today to create trials?” Forester asks. “Traditional methods of trade and promotions may not be as impactful, making it harder to break out. It may be best to reach consumers through digital outreach,” he advises.
“Our industry has always looked to the health and wellness of consumers and the planet. The pandemic has brought health and immunity to the forefront, and it’s mainstreaming the natural and organic industry more than ever before…in a good way,” Forester said.
Back to the Future – Steve Hughes, Co-founder and CEO, Sunrise Strategic Partners
As Co-founder and CEO of Sunrise Strategic Partners, Steve Hughes guides investments in such leading healthy lifestyles brands as Vital Farms, Maple Hill Organic, Coolhaus Ice Cream, Kodiak Cakes, Little Secrets, Teton Waters Ranch, Pact, Kill Cliff and Califlor. The unprecedented pandemic has created a portfolio-wide inflection point for the company. “We sell eggs, milk, pancake mixes, comfortable clothing you buy online…we’ve seen some extraordinary acceleration in our portfolio – from growth of 50% over the past three years, the Covid-19 pandemic has added about 20 points of growth this past year,” Hughes said. “People are going back to the future, and that will have stickiness; our better-for-you brands in three months got 18 months-worth of trial,” he said.
“For many big-box retailers right now, it’s about in-stock, not innovation,” Hughes quipped. “We’re seeing cutbacks so they can spread out on the essentials. That will be a headwind for emerging brands in 2021,” he observed.
“With that said, the real game changer for the future is what’s happening with direct to consumer (D2C) sales. D2C gives the consumer the option to buy not just what they want, but also what they may have never heard about. It’s going to be triple or quadruple what the growth was last year,” Hughes predicted.
“It’s going to be harder for a brand to break into natural products retail the old-fashioned way in the next 12-18 months. However, the next generation of brands is more likely to happen online, and when they get to be $10-20 million online businesses, then they can go to Whole Foods Market or other grocers and say we have so many people buying in your respective markets. It’s a whole new innovation model,” Hughes said. “Brick and mortar used to be the channel that led. Now, people will order online, and brick and mortar will follow.”
People Remember How They Were Treated – Gabe Nabors, CEO, Mustard Seed Market
“People are going to remember how they were treated in these times,” said Gabe Nabors, CEO of the two-store independent, family-owned natural products retailer Mustard Seed Market in Akron, OH. “It could be the simplest thing of talking with someone or thanking people. At the end of the day, it’s about being transparent with your staff and customers.”
Mustard Seed has had to continually pivot to serve its community while responding to the pandemic and safety and public health demands. Known for outstanding foodservice offerings, the retailer temporarily closed its restaurant when the county heightened safety restrictions, and converted the salad bar to a grab and go bakery set in its downtown location when nearby offices closed and lunch business dropped off.
The independent retailer also has had to contend with a lack of consistent product availability, Nabors shared. “We were getting an insane amount of out of stocks, so we reset aisles based on what’s selling well and what’s available. Out of stock items are still a problem, but we’ve mitigated it by changing up the sets and finding comparable products – and by communicating constantly with our partners. I would say communications with manufacturers and distributors are at an all-time high right now. And what worked last month doesn’t mean it will work next month – you have to monitor your own in-store trends faster than you ever had to before,” Nabors said.
Not one to stand still, Mustard Seed recently launched MustardSeedWellness.com to expand its ecommerce presence, plus plans are in the works to remodel its flagship store. “The focus will be on fresh new floors, redesigned prepared foods areas to allow for more grab and go, and an expanded meat department. We’re investing in some store improvements in 2021,” Nabors added.
Building Resilience on the Shelves – John Raiche, EVP, Supplier Services, UNFI
“Coming out of Thanksgiving week, consumers saw the grocery shelves were much more resilient than earlier in the year when the pandemic hit,” noted John Raiche, Executive Vice President of Supplier Services at leading natural products distributor UNFI.
“Consumers have maintained pantry loads since the early days, so that may be a reason why the effect is more subdued. However, when consumers see a fully stocked shelf, they feel better than if they see empty shelf space, which may prompt them to panic buy. Going into 2021, we are seeing suppliers doing a much better job of meeting elevated in-home consumer demand,” Raiche observed. “Beyond that, the critical questions for our retailers will be what happens when in-home demand returns to more normal levels.”
Raiche, who shared he is responsible at UNFI for “looking at all the what ifs,” noted that everyone – suppliers, distributors and retailers – is working at elevated levels, allowing much less room for day-to-day hiccoughs, such as weather and delays. He shared his concern that worker health could impact supplier production. “Manufacturers are doing everything they can, but if community spread of Covid-19 is widespread, they can’t control what happens outside their walls,” he said.
To better prepare, UNFI has altered its targeted safety stocks, bolstered inventory and is in close communication with its suppliers, Raiche said. “We stand ready at a moment’s notice to pivot and give suppliers the ability to deliver product. We host cross-functional team meetings focused on service level and how can we solve today’s challenge. Also, we are personally giving presentations to our retail customers to share what we’re seeing and projecting in the next week, month, six months, etc., so our customers understand what we’re seeing in the moment.”
Raiche predicts that demand will steady and service levels will continue to improve. “This week and last week have been the best service levels from suppliers we’ve seen since March – that’s a good sign. The good news for our country is that the vaccines are rolling out, but we don’t see it as a light switch. There is going to be a lengthy transition, and the increased level of in-home demand will last well into 2021,” Raiche predicted. “In the long run, if more consumers get comfortable with cooking from home, that’s great for our industry.”
Changing Food Consciousness – Tracy Miedema, VP of Innovation and Brand Development, Presence Marketing
“Even though we’re still in the midst of the pandemic, we know now that healthy food is critical to our health and wellness going forward,” said Tracy Miedema, VP of Innovation and Brand Development at leading independent natural products brokerage Presence Marketing.
Speaking of the huge spikes in absolute dollar growth of such mature categories as produce, baked goods, meat and dairy (plant-based meat and dairy alternatives, too, enjoyed unprecedented growth in 2020), “It’s hard to overstate how massive these changes are – the taxing and pushing of the food system. But the system has been able to adjust, shift volume from other places and produce this much more. The feat involved to flex and adjust our grocery system at this scale to adapt to the pandemic should leave us all in a state of awe,” Miedema said.
“How people think about groceries has radically changed since the pre-pandemic days when 50% of our food dollars were spent away from home. People have plowed that money into grocery shopping, and it has changed their minds about what food is worth. To me, that’s more than a little bit of upside – it points the way toward a growing consciousness of food that is vital,” she said.
“In the past, food was dominated by a small number of conglomerates and we were forced to eat middling food with simple carbs and processed oils. However, there’s been a massive fragmentation in food types and brands that’s been part of a 20-year trajectory. That fragmentation has led to the creation of nutritionally dense foods with features and benefits tailored to the consumer. Some of these upstart brand are less resilient and are being severely challenged during the pandemic. They should take heart that long-term wellness trends are on their side.”
Miedema also said that smaller and emerging brands that can learn to navigate change – and that can adapt to become “digitally native brands” may find new ways to succeed. “If you’re a small brand, you’re hoping that the right person finds you on the shelf, but if you’re also online, that person is searching for you. It can flip the ‘foot traffic’ in your favor,” she advised.
View from a SuperNatural – Anonymous, from a Major Natural Retail Chain
“The tough thing about 2021 is that the first six to eight months are going to look very similar to 2020,” said a senior executive with a prominent natural products retail chain who asked not to be named. “The at-home trends are going to last, at least for that time, and the categories that went gangbusters are still doing well. Given that the next two to three months are going to be among the most challenging days of the pandemic, I don’t know if we’ll see the rush buying of the past, but retailers will see a solid January and February,” the individual said.
“However, the supply chain is still damaged, especially in paper and cleaning products,” the individual noted. Major cleaning products companies including Clorox, Seventh Generation and others have advised retailers and distributors that they may not see supply chain recovery until mid to late 2021. “The problem is compounded when a lot of these products are required for front-line healthcare needs,” the individual observed.
Also, of concern is an aluminum can shortage that will be an issue throughout 2021, the senior manager noted. “The reason being that for the last five years, the soda business has been declining and all the domestic can producers moved their production offshore. Right now, these companies are building out new plants in the U.S. to fulfill increased demand, but they will not be on line until late 2021 or 2022,” the individual projected.
“All of grocery is in a better spot today because we’ve been dealing with these elevated levels for so long, but it’s still a fragile ecosystem. Grocery stores were not designed to accommodate people eating 90% of their meals at home,” the individual said. “We are definitely trying to figure out how we can change the look of the stores to cater to the categories that are doing so well, such as baked goods, frozen foods, ethnic foods, spices and more. We’ve been going through this long enough that there will be muscle memory as we evolve. While we may know in 2021 what’s coming, 2022, however, is wide open in terms of how we emerge in the new normal.”
Serving Changing Distribution Needs – Jeremy Adams, Director of Category Management, KeHE Distributors
“As a distributor our goal is to service retailers and suppliers. Even with unprecedented demand, we were able to stabilize service levels in the summer and fall. As our industry spiked in demand, we were able to develop partnerships with food service distributors. As our demand increased and theirs declined, those partnerships to help with transport were key in helping us meet demand,” said Jeremy Adams, Director of Category Management for KeHE Distributors.
“Also, as we got more into the quarantine phase we witnessed the emergence of the home chef and home baristas. With restaurants and travel shut down, the only indulgence was things people could prepare at home. As such, we saw a huge spike in high-end foods, international cuisine, spices, premium coffee and more,” Adams said.
With a heightened winter demand for soup and broth and other pantry basics, Adams noted that suppliers are doing everything they can to catch up with demand. “Some were able to ramp up, depending on how they source, if they manufacture themselves, or work with a co-packer,” he said. Also, while interest in home cooking has grown, “there is a need for quick and convenient meal solutions. From research we’ve seen, 40% of shoppers are interested in trying meal kits sold in stores. In the fresh aisle, in particular, there was a major shift from salad and olive bars to pre-packaged. The biggest trend is that people want contactless options,” Adams observed.
Adams also noted, with an increase in pet ownership in 2020, the pet products category has seen a lift in sales. “The jump in pet ownership will bolster demand in 2021 not just for pet food, but for all related products, such as supplements and toys,” he said.
“We were already seeing growth in healthy products; the pandemic just accelerated that. In some cases consumers may have been forced to try new products due to out of stocks, the good news is they’re becoming repeat customers. Like never before, shoppers are looking at brands in terms of their mission and vision – are they sustainable, woman or minority owned, do they give back, etc. That will continue in the future,” he said.
Compared to What? Analyzing the Data – Jerry Stroobosscher, Director of Data Services and Analytics, Presence Marketing
After the initial panic buying peaks in March and April, both conventional and natural grocery stores have seen sustained growth averaging 10-15%, “and we are continuing to see this growth in both channels weekly as we compare year-over-year growth,” said Jerry Stroobosscher, Director of Data Services and Analytics for leading independent natural and organic products brokerage Presence Marketing. “As we know, people are staying at home more, cooking at home more, and while it is conversely affecting the restaurants, realistically, we are going to see this continue through the winter,” he said.
As a data analyst, Stroobosscher and his SPINS cohort Michael Murphy are warning decision makers not to “freak out when we see negative growth numbers as we cycle against this past year’s numbers come March and April.” Given all the unprecedented growth in 2020, comparing year over year growth in 2021 may be negatively impacted in both channels as the markets stabilize, they cautioned. “Once we start matching against a year ago, we are going to see some challenging numbers. The published growth rates may be worrisome to some, but understand that the channels themselves have expanded over this time frame, and we envision this to continue for a long time,” Stroobosscher said.
“The pandemic has broadened the definition of better for you products and how consumers look at the natural space in terms of building health and immunity,” said Michael Murphy, SPINS Onsite Manager with Presence Marketing. “We’ve seen a progression of consumers moving toward supplements, herbs and homeopathy.”
Of note, while data indicates that dietary supplement sales have dipped since March in the natural retail channel, conventional grocers have expanded their sales of vitamins and supplements. “Natural retailers may need to reevaluate their approach to dietary supplement sales as conventional grocers become a stronger player,” they advised.
The Challenge at Retail – Pat Sheridan, Interim President and CEO, INFRA
“One of the core reasons independent retail associations like INFRA (Independent Natural Food Retailers Association) and NCG (National Cooperative Grocers) exist is consolidating buying power. Our combined buying power certainly has been a differentiator during the pandemic,” said Pat Sheridan, Interim President and CEO of INFRA.
With 280 independent retail members across the country, “supply chain disruption has been one of the largest issues for members,” Sheridan said. “Regionally, things are different every day. It eased in the summer, but has been picking up again this fall and winter,” he shared.
INFRA has helped its members find product and alternatives to replace what’s missing. “We’re rounding out the year successfully, but there are still a lot of challenges. There’s light at the end of the tunnel, but realism and science say we have a ways to go, which means we’ll continue to see disruptions in the supply chain,” said Sheridan.
Sheridan shared that INFRA has a national supply agreement with KeHE Distributors for center store categories, “and we have other supplementary national agreements specifically in wellness, and we also have some regional relationships in place that allow us to negotiate and manage supply chain on behalf of a larger group. Most of our members would have little leverage otherwise,” he noted.
INFRA also focused on increased communications with members, including education, webinars and updates. “Our communications allowed us to hear which regions the pandemic was hitting early on to help our members better prepare.” In addition, the consumer’s focus on wellness presents an opportunity for independent retailers.
“Before the pandemic, we identified a number of stores that were at risk, and now they are still in business. My hope is that the pandemic provided a lifeline to these retailers where they have been able to adjust and grow and hopefully have a longer life span. Our job as a cooperative of independents is to provide the relationships and tools for our members not just to survive, but to thrive,” Sheridan said.
Meeting Demand, Keeping Workers Safe – Robert Agnew, SVP, Sales, Bob’s Red Mill
At Bob’s Red Mill, one of the nation’s leading providers of natural and organic pantry staples from baking flours to hot cereals, since the pandemic began, the company has been balancing 25-30% sales growth with worker safety and morale, said Senior VP of Sales Robert Agnew. “By February, we will have added six new production lines. While we are at an 80% fill rate, we plan to be back up in the 90-95% fill rate range by then,” he said. “Fortunately, we had been planning to get ahead of capacity; however, the demand was so great that it has been a challenge to keep up,” he said.
Regarding worker safety, “We take it very seriously and do everything we can to keep our workers safe. It does affect your efficiency; everything slows down with social distancing,” he said. However, Agnew pointed out that the entire factory has been retooled over the last six years and the company is designing its production lines to be more efficient. “With 400 SKUs, we paused some items to be more efficient, including slow movers and duplications in size,” he shared.
Anticipating that the in-home cooking trend will continue, “We are very transparent with our customers and distributor partners,” Agnew noted. “Our company is able to get through this because of the relationships we’ve built over the years. That comes from founder Bob Moore all the way through the organization. I manage the sales team and it’s important to keep morale high and be in close communications with my team and the entire company, reminding them that everything does pass and we’ll get through this together. It sounds trite, but it’s true,” he said.
Agnew also looks forward to a return to trade shows in the future. “I’m looking forward to sore feet and knees, and interacting with my customers, colleagues and industry friends again.”
Our People Are Heroes – Blair Kellison, CEO, Traditional Medicinals
Looking back at 2020, Blair Kellison, CEO of wellness tea brand Traditional Medicinals, referred to a quote in a holiday card he received from KeHE CEO Brandon Barnholt: “2020 was the year we learned our business is essential and our people are heroes.” “That quote summarizes the year for me,” Kellison said.
“If you’re a manufacturer, you were on the front line. Manufacturing businesses had to come to work every day – many of us could not work from home, we took no time off, and sales were skyrocketing. Whether it’s an economic downturn or the pandemic, when these things happen, people gravitate toward health and wellness products. When push comes to shove, people care about their health and are willing to spend money on it. That has supported our industry all these years, and when times are tough, it drives it faster,” Kellison said.
Kellison admits top brands are getting disproportionate attention from retailers right now. “Fill rates are important; retailers don’t have time and they seek reliability.” However, he also noted that for many companies, including Traditional Medicinals, it’s getting harder to introduce new products as retailers focus on best sellers and category leaders during the pandemic. “The hallmark of our industry is small companies, and yet it’s a hard time to launch innovation.” What Traditional Medicinals is doing is investing in IT and improving infrastructure. “You can’t get complacent; things will change back and you have to be ready,” he advised.
While Kellison anticipates that companies should prepare for more remote working in the future, he and Traditional Medicinals founder Drake Sadler have spent much more time connected and in the factory. “As the CEO, I began to work at the plant again, like the old days. Also, Drake and I were communicating much more, and being at the plant helped reinforce the connection with the front line workers,” he noted.
Kellison also predicted, “In-person appointments aren’t going away. They may be less often, but they’ll be more meaningful. As CEO, I would go on a lot of sales calls. I’ve flown, sat in lobbies for a 30-minute meeting. Now, with the digital tools at hand, I’m going on more sales calls than ever.”
Financing Soil Health – Robyn O’Brien, Co-founder, RePlant Capital
“Covid exposed vulnerability in the system and it is forcing us to build a better one. That starts with capital and how you deploy it,” said Robyn O’Brien, author of The Unhealthy Truth and Co-founder of RePlant Capital. Launched with co-founders David Haynes and Don Shaffer, the $250 million fund is focused on providing loans direct to farmers and incentivizing adoption of regenerative agricultural practices that rebuild healthy soils and help mitigate climate change.
“Initially, we thought we’d create a fund to invest in projects from soil to shelf, but the more we understood the crisis in agriculture, not only can we provide financing for farmers transitioning to organic and regenerative methods, we can have a positive impact on financial, climate and human health. If, for example, a farmer transitions 7,000 acres in Indiana from chemical agriculture to regenerative, that farmer can save up to half a million dollars a year. Currently, we are working on an almond project in California’s Central Valley that will generate significant water savings. We need to do this at scale and with alacrity,” O’Brien said.
O’Brien pointed out that while 80% of consumers are trying organic products, only 1% of U.S. farmland is organic. “It became clear there’s a bottleneck in the supply chain, leading to manufacturers importing organic grains from such countries as Romania and Bulgaria. The majority of our farmland is chemically grown; the organic supply chain in America barely exists,” she said.
O’Brien shared that the lead investors in the RePlant fund are women – “From the food industry and the tech industry, most are mothers; also, some early investors, both male and female, are CEOs from the food industry. In addition, according to O’Brien’s research, “Five times more women than men are moving into regenerative farming. Also, parents are realizing that if they want their kids to come back to the farm, regenerative, organic agriculture and financial resiliency are ways to attract them. There hasn’t been a financial services firm focused on climate solutions through soil health. We want to focus on progress, not perfection, and meet the farmers where they are,” she said.
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Honor the Earth: Join Winona LaDuke on the Next Compass Coffee Talk, January 13, 11:30am EST
Honor the Earth
Join Winona LaDuke, Hemp Ambassador and Water Rights Protector, to discuss the possibility of a green economy, water rights, and her non-profit Honor the Earth, in addition to sharing her experience of protecting the land in her home state of Minnesota against the threat of corporate expansion.
Wednesday, January 13, 11:30 am – Noon EST
Zoom, Admission is Free
Featured guest Winona LaDuke, a globally recognized Hemp Ambassador and Water Rights Protector, joins Compass Coffee Talk. LaDuke will discuss the possibility of a green economy, water rights, and her non-profit Honor the Earth, in addition to sharing her recent experience of protecting the land in her home state of Minnesota against the threat of corporate expansion.
About Winona LaDuke
Winona LaDuke is a rural development economist and author working on issues of Indigenous Economics, Food, and Energy Policy. She lives and works on the White Earth reservation in northern Minnesota and is the Executive Director of Honor the Earth (HtE). She co-founded HtE with music artists, The Indigo Girls, as a platform to raise awareness of and money for indigenous struggles for environmental justice. She works nationally and internationally on climate change, renewable energy, and environmental justice alongside Indigenous communities. She is the founder of the White Earth Land Recovery Project, one of the country's largest reservation-based non-profit organizations.
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About Compass Coffee Talk™
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