Back Talk

What Does The Expanding Global Marketplace Mean To Your Business And To The Natural Products Industry?

Linda Knittel

Like many industries, the natural products and supplements trades are finding themselves in the throes of an international market expansion. In addition to delivering a whole new array of imported products to the shelves of natural products stores in the United States, this global exchange also has greatly increased the foreign demand for American-made goods. This growth has brought increased variety to consumers and increased prosperity to manufacturers. It has also heightened the debate surrounding certain industry issues, including genetically modified organisms (GMOs), organic vs. nonorganic, and what constitutes healthy competition.

"Globalization means consumers will be exposed to a greater variety of quality foods. In our industry, one of the key issues has always been upgrading the quality of the foods, not just in terms of health but in terms of taste. Our company imports organic foods from Italy, for example, and these products are GMO-free without [effort on our part]. They have a different orientation toward food there. Emphasis is on tradition, so the idea of GMOs is in opposition to that. In Europe there is a certain kind of snobbery that, to some extent, is well deserved. They look at America as a place that has a lower standard for food, but Europeans understand we are ahead of the game in terms of organic products, and that is where the demand for trade comes in."

Bob Donolla
National Sales Manager
Bio Nature
North Franklin, Conn.

"We are not 'going global,' we have been global since the beginning. However, the things that are happening on a global basis are certainly having a dramatic impact on us. The big one, of course, is the subsidy war, which is very detrimental to us.

"There is also the issue of GMOs. We have chosen to keep GMOs out of the marketplace until things settle down and there is an acceptance of these products. It is just a matter of time. This whole GMO issue got off to a very unfortunate start. Had the changes put into the crops been alterations that would have benefited the consumer, like better tasting or cheaper food, GMOs would have been received differently. With the knowledge we have now and our capability in the scientific arena, there is no evidence I can see that there is a problem with any of these products."

Barry Hall
Marketing Director
Flax Council of Canada
Manitoba, Winnipeg, Canada

"My feeling is that as an industry we wished for something and we got it. Now we are kind of leery of what we got. When I first entered this industry 20 years ago, we wanted everybody to have access to these great products and we wanted to make them affordable. Now they all have access and, unfortunately, because of increased demand, prices have gone up. I guess that is fine because, obviously, there has been more exposure and with it comes more science, education, technology and information.

"There are going to be international trade regulations that may be difficult to deal with, but that is the nature of business. Global competition has created better retailers with better business skills. Some companies, retailers and products are going to fall by the wayside, but that is evolution. The strong are going to go on."

Cheryl Hughes
Owner
The Whole Wheatery
Lancaster, Calif.

"For us, the international markets have been an area of new growth. Because of the increasing demand for nutraceuticals, foods and beverages, we are working more with fine chemical companies that service these markets.

"But the markets are getting much more competitive, which is a double-edged sword. It is good for us because we are not considered a commodity-type supplier. Thus, our brands are looked at favorably by the larger companies that want to make sure they have a standardized product with a history of safe use in the marketplace. However, it may not be so good for the consumer. Smaller companies traditionally have gone with commodity-type items because of their lower prices. As more and more commodity items fill the international market, it becomes more risky for the consumer because companies are turning to unproven suppliers."

Gary Troxel
COO, VP of International Sales
InterHealth Nutraceuticals Inc.
Concord, Calif.