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Articles from 2018 In April


GOED appoints new executive director

GOED’s board of directors is pleased to announce that Ellen Schutt has been appointed as executive director of GOED. Ellen was previously vice president of communications and education and had been acting as interim executive director since the departure of Adam Ismail at the end of February.

DSM’s Tom Feeley, chairman of the GOED board, commented on the decision: “The GOED board is confident in Ellen’s ability to lead GOED into the next chapter of this tremendous organization. We look forward to many successes and great progress for the category under her leadership.”

Ellen Schutt added, “I’m very excited to continue the great work GOED has done for the past 11 years. I also see a lot of new opportunities and ways to further our mission. We are very lucky to have an incredible group of members that support our work and share our combined vision for growing the EPA and DHA category on a global basis.”

Source: Global Organization for EPA and DHA Omega-3s

[email protected]: Sweetgreen helps transform L.A. corner store | Tech startup targets food stamp users

Thinkstock peppers and produce on grocery shelf

How Sweetgreen helped this corner store with a healthy transformation

Now this is collaboration. It’s the story of a 20-year-old family liquor store situated in Los Angeles’s Hyde Park neighborhood, where the nearest grocery store is a mile away and fresh, healthy food isn’t readily available. That is, until the store's second-generation store owner saw an opportunity to re-make it into a place where community members could buy healthy groceries. She worked with a local nonprofit called Los Angeles Food Policy Council that helps small retailers make healthy shifts. Fast-casual salad chain Sweetgreen also helped in a big way—it lent its expertise in branding, supply chain operations, merchandising, retail logistics and waste tracking to help transform the store, which reopened as Hank’s Mini Market in April. All parties involved hope this can be an example of how big businesses like Sweetgreen can, instead of taking mom-and-pop stores out of business, collaborate with them. Read more at Fast Company…

 

This startup says it wants to fight poverty. A food stamp giant is blocking it.

About 1 million food stamp recipients are using a smartphone app called FreshEBT to manage the balance of their accounts, plan their grocery tips, find coupons and even apply for jobs. The app is a product of Brooklyn-based Propel, a tech company with major backers like Silicon Valley firm Andreessen Horowitz and The Durant Company, an investment company started by NBA player Kevin Durant. But lately, the app has been unavailable in many states because of challenges working with Conduent, a government contractor that handles the food stamp networks in 25 states. Conduent maintains the database that the app connects to and says its networks have been overloaded with data requests from the app. It’s also started competing with an app of its own. But, “Propel’s early success suggests there is opportunity for innovation in the low-income market,” The New York Times writer Steve Lohr writes. Read more at myAJC…

 

Herbalife Ltd announces name change to Herbalife Nutrition Ltd

According to the MLM nutrition company, its name change better reflects its leadership as a global nutrition company. Read more at Reuters…

 

Buying the farm: Investors may save beloved Slope health-food store, owners say

Brooklyn’s beloved Back to the Land Natural Foods is in jeopardy as it struggles with sales and foot traffic, but owner David Basham says more than one angel investor has expressed interest in saving it. The store has been open since 1971. Read more at Brooklyn Paper…

 

Genetic sleuthing bolsters food poisoning searches

Food safety scientists are using genetic analysis to detect pathogens in food linked to the food poisoning outbreaks—like recent ones caused by contaminated romaine lettuce. The new approach has the potential to stop foodborne illness before it spreads, and to connect the dots between outbreaks. Read more at ABC News…

 

Saffron Road steps up online sales

"If you can sell in any other location, you can certainly sell online. And finding the right partners that can do that with you is important."

—Jack Acree, executive vice president, Saffron Road

Saffron Road, known for its globally inspired frozen meals and snacks, is investing more in e-commerce capabilities these days—especially for its sauce and snack products, which Acree says are well suited for online sales because they don't use glass and are single-use. But the company is selling its frozen items online, too.

We caught up with Acree at Natural Products Expo West to hear more about Saffron Road's approach to e-commerce.

Impressing Whole Foods: Highlights from the 2018 Supplier Awards

Pacha Soap Pacha Soap Whole Foods

This year’s Supplier Awards are out from Whole Foods Market, and there are some exciting brands in the mix, including some that are relatively new to the spotlight.

Take Ocean Hugger Foods, for example, maker of Ahimi, the “first-to-market sashimi-grade vegan tuna product,” which is now in New York and Los Angeles Whole Foods stores. Ocean Hugger Foods’ innovation spurred Whole Foods Market to include “high-tech, plant-forward” foods as a top food trend for 2018, and won the Outstanding Innovation award.

The company explains that its Ahimi is made from tomatoes whose texture and flavor are transformed through a special technique. Its naturally occurring levels of glutamic acid help give it a savory, meaty flavor—but it's free of mercury, is safe for pregnant women and doesn’t contribute to the overfishing problem.

For the Organic Commitment award, the retailer recognized organic produce aggregation company Coke Farm and gimMe Health Foods, purveyor of organic seaweed foods from the woman (and family) behind Annie Chun’s. 

Whole Foods called out gimMe’s contributions to the growing functional snack category, in the form of the popular roasted seaweed snacks but also seaweed chips and thins.

Perhaps the biggest honor, Global Supplier of the Year, went to Miller Poultry and Pacha Soap Company, whose slogan runs, “With Pacha, when you buy locally, you're helping to create livelihoods globally.”

This maker of natural bar soaps, hand soaps, and bath soaks, bombs and scrubs is a Whole Foods fave, “for pioneering experiential, natural bath and body care, and exceeding goals for growth”—while, Pacha says, boosting livelihoods around the world by setting up soap shops, clean water initiatives and other sustainable ventures in developing nations. It’s been a WFM supplier since 2014, and a recipient of a loan through the Local Producer Loan Program.

Here's the full list of winners:

Global Supplier of the Year: Pacha Soap Company, Miller Poultry

Environmental Stewardship: Lotus Foods, Blue Circle Foods, Kvarøy Fiskeoppdrett

Non-GMO Commitment: Fage, Jacqueline's Gourmet Cookies

Organic Commitment: GimMe Health Foods, Coke Farm

Outstanding Innovation: Pacific Highway Wines & Spirits, Ocean Hugger Foods

Quality: Golden Boy Foods, Rainier Fruit Company

Rookie of the Year: Kettle & Fire

Service and Partnership: Country Natural Beef, Conlego

Women-Led Entrepreneurship: Kuli Kuli

Supplier of the Year, Southern Pacific Region: Hearst Ranch Beef

Supplier of the Year, Pacific Northwest Region: Terra Breads

Supplier of the Year, Northern California Region: Diestel Family Ranch

Supplier of the Year, Midwest Region: Kitchfix

Supplier of the Year, Northeast Region: Plenus Group Inc.

Supplier of the Year, Rocky Mountain Region: Ela Family Farms

Supplier of the Year, South Region: Eastern Carolina Organics

Regional Supplier of the Year, Mid-Atlantic Region: Lancaster Farm Fresh Co-op

Regional Supplier of the Year, North Atlantic Region: Hans Kissle

Supplier of the Year, Florida Region: Sushi Maki

Supplier of the Year, Southwest Region: Thunderbird

IdeaXchange

How data privacy could affect your marketing practices

Kelly Cavanaugh, Broadstreet Marketing

Recent stories in the news regarding compromised personal data and social media have added to consumers’ concerns about data privacy and targeting. Facebook recently responded to these concerns by removing functionality available to marketers, including the end of its Partner Categories program (which utilized third-party data to enhance targeting) and the overnight throttling back of its Instagram API.

These changes in functionality and policy are designed to scale back consumer information available to marketers, creating uncertainty in the future effectiveness of social platforms as marketing tools.

While it is unknown what all changes to marketing policy and practice are coming, the recent discussion does provide an opportunity for marketers to reflect on their current relationship marketing practices and methods. What are responsible marketers to do in this environment of increasing consumer distrust and potential regulation of social platforms?

Ask for permission

The best way forward is to embrace permission-based relationship marketing. By doing this, you will be communicating directly with consumers who want to receive your messages and you will deepen the connection between your brand and these consumers.

You need to own the relationship with the consumer, which means the approach to social platforms might change. While social media targeting tools can help identify consumers for acquisition, downstream social media efforts should drive interested consumers to provide permission for additional communications across multiple channels. This will allow you to continue to develop the brand-to-consumer relationship in meaningful ways beyond clicks and “likes.”

When you ask interested consumers for additional contact information, and permission to continue the conversation, you are creating a value exchange with the consumer. The consumers provide personal information on their end of the value exchange. Your end of the value exchange is to use their information and permission responsibly by providing relevant communications and offers while maintaining their trust that you will protect their information.

Control the flow

To accomplish this, you need a consumer data management solution that helps you unify and protect your consumer’s data across all communication channels. The solution should allow you to manage the accurate inflow and outflow of consumer interaction information across marketing channels. While you might outsource the delivery of channel specific communications, you should maintain the records of who you are communicating with, what you are communicating and when those communications are sent. It is critical to maintain records of consumer permissions across channels, provide accessible methods for consumers to opt out and immediately act on those requests to opt out. Careful and accurate consumer campaign and response data management will enable you to protect your brand, and more importantly, the trust of your valued consumers.

There are many tools on the market that provide data management solutions but they are not all created equal. You can even start with a simple database in Excel. If you decide to use a prepackaged solution, be cautious and critical in your selection. Ask questions to make sure it captures all the necessary information for your category and the types of communications you envision using. Make sure it is easy to use and doesn’t take a manual or a background in SQL to understand what to do or additional plugins for functionality. It should be simple enough that interns can easily pick it up. And please understand how it captures and maintains different levels of consumer permissions.

Kelly Cavanaugh is an account executive for Broadstreet Marketing, which provides impactful, measurable and affordable marketing solutions for growing brands.

[email protected]: Food industry applications for blockchain | 2 new NOSB appointees

Thinkstock/allanswart Blockchain technology grocery

3 innovative ways blockchain will build trust in the food industry

We've heard a lot of buzz about blockchain, but how could it actually help improve the integrity of our food system? The technology could help build consumer confidence in the food supply chain by improving and hastening the process of food recalls, helping ensure that products meet their label claims and giving producers real-time access to market data, like commodity prices. Read more at Forbes...

 

Perdue appoints Greenwood, Schwartz to NOSB

The National Organic Standards Board is a 15-member board that advises the USDA’s National Organic Program in developing and updating standards for organic production. Members, who are appointed by the U.S. secretary of agriculture, serve five-year terms that start in January. Eric Schwartz, appointed to represent organic handlers on the NOSB, is CEO of the United Vegetable Growers Cooperative and has held positions at several other fresh food companies, including Dole Fresh Vegetables Inc. The new environmental protection and resource conservation appointee, James Greenwood, is an avocado grower who’s been active in UCLA’s Institute of the Environment and Sustainability and the Hass Avocado Board. Read more at The Fence Post…

 

Pass the hemp: Colorado prepares to regulate the plant like any other food ingredient

In a move to protect Colorado’s emerging hemp industry as a debate over legality plays out on the national stage, the state Senate unanimously passed House Bill 1295, which applies existing food manufacturing guidelines to products made from hemp. It also prohibits a company with an FDA-approved drug—say, GW Pharmaceuticals, which is on its way to having the first cannabinoid drug to get FDA approval—from restricting production and sale of naturally occurring CBD extracts. The bill has already passed in the House and now heads to Gov. John Hickenlooper’s desk. Read more at The Cannabist…

 

Lakewinds Food Co-op is growing organically with organics

With three locations in Minnesota suburbs, 45-year-old Lakewinds Food Co-op is fighting off big-box competition and thriving. It’s a story we’re hearing in different parts of the country—co-cops are not only surviving but really finding their footing in communities as large conventional retailers move into town. Read more at Twin Cities Business…

 

This plant-based pork company is on a mission to get consumers in Hong Kong to ditch meat

Omnipork, a new product from the company Right Treat, is set to debut this summer at restaurants in Hong Kong, the city with the highest per-capita meat consumption in the world. The pork substitute is made from pea protein, non-GMO soy, mushrooms and rice. Read more at One Green Planet…

 

Global Prebiotic Association welcomes news members

Global Prebiotic Association logo

The Global Prebiotic Association (GPA), the association formed to steward growth of the category, announced that Prenexus Health, Hayashibara (Nagase), Nutrasource Diagnostics and KGK Science have joined the organization. GPA has also added dietitian and CEO of Uplift Food Kara Landau as Media Representative and Nutrition Advisor. The goals of the association include: increase public awareness about the production, quality and science of prebiotic products, expand understanding of the solid science supporting both well-known and newfound benefits and create needed transparency about their interaction with the microbiome.

“We are honored to welcome these companies to the association,” said GPA Executive Director Len Monheit. “These organizations have committed to the category and we will, with them, be aggressive in growing the category and building global awareness and understanding of prebiotics.”

"We believe that prebiotics play an important role in microbiome and overall health and excited to be a part of the Global Prebiotic Association," said Tim Brummels, CEO of Prenexus Health. "We're thrilled to be leading partner as they develop a broader market for prebiotics."

Introducing the new GPA members:

Prenexus Health: Prenexus Health is a manufacturer of high quality, high purity prebiotic ingredients from nature that promote health and wellness.

Hayashibara (NAGASE Group): Founded as a starch syrup manufacture in 1883, Hayashibara has grown into a company with strong research and development expertise, engaging in original and creative research. In 2012, Hayashibara joined NAGASE Group.

Nutrasource: Established in 2002, Nutrasource is a full-service contract research organization (CRO) specializing in regulatory consulting, clinical trials and product testing for the natural health industry.

KGK Science: KGK Science integrates scientific, clinical research, commercial, and regulatory expertise to deliver well designed solutions for propelling health and wellness products to market.

As GPA’s Media Representative and Nutrition Advisor, dietitian Kara Landau will help raise awareness of the benefits of prebiotics and focus discussion on the microbiome. Landau will also contribute content and participate in speaking engagements on GPA’s behalf.

“Kara’s passion and commitment to helping build the prebiotics category is unmatched and we are excited to have her on our team. Her scientific background coupled with her ability to put information in laymen’s terms will help us achieve our objectives of elevating prebiotics profile,” said Monheit.

Source: Global Prebiotic Association

Private label important GNC growth driver

GNC logo

The sale of LuckyVitamin and ending of the Gold Card customer promotion program hit GNC's first-quarter revenue numbers as the supplement company reached $607.5 million in 2018, compared with $654.9 million in the first quarter of 2017.

The Lucky Vitamin sale on Sept. 30 resulted in a $22.7 million revenue reduction, while the pricing promo change showed a $23 million decrease, the company reported via press release.                  

Leaders on the first-quarter earnings call, however, touted a return to same-store sales increases, with this quarter marking the third consecutive in positive territory. Same store sales increased 0.5 percent in domestic company-owned stores (including GNC.com) in the first quarter. Yet decreases reached 1.9 percent at domestic franchise locations. As of  March 31, GNC had 3,385 corporate stores in the U.S. and Canada, 1,083 domestic franchise locations, 2,428 Rite Aid franchise store-within-a-store locations and 2,009 international locations. 

"During the first quarter of 2018, we continued to see the business improve, and were pleased with the progress of our strategic growth initiatives," CEO Ken Martindale said via press release. "Notably, we delivered meaningful gross margin growth, driven primarily by increased penetration of our private label brands. We continue to work to leverage our strength in innovation, expand our international presence and deliver a consistent, compelling experience at every customer touch point." 

Private label sales reached 50 percent of total sales, compared with 43 percent in Q1 2017. A key driver was the launch of Slimvance, a GNC branded weight loss product, Martindale said, which attracted new customers and drove larger basket sizes. The company also recently relaunched its AMP sports performance line with new packaging and products and continues to promote its Beyond Raw brand. The company's focus on innovation and quality, and how it communicates benefits to customers are key to success, noted Tricia Tolivar, chief financial officer and executive vice president. 

Additional first-quarter highlights include: 

  • Net income of $6.2 million compared with $24.7 million in the prior year quarter.  
  • Diluted earnings per share was 7 cents in the current quarter compared with 36 cents in the prior year quarter.   
  • The company recorded a $16.7 million loss on debt refinancing. Excluding this item and other expenses, adjusted net income was $20.1 million in the current quarter compared with $26 million in the prior year quarter, and adjusted EPS was 24 cents in the current quarter compared with 38 cents in the prior year quarter. 
  • Adjusted EBITDA, as defined and reconciled, was $59.3 million in the current quarter compared with $73.7 million in the prior year quarter. The prior year quarter includes the impact of $23 million in revenue and gross profit associated with the termination of the Gold Card Member Pricing program, as well as higher marketing expense of approximately $6 million in connection with the launch of the media campaign around the One New GNC.

Meanwhile, GNC's proposed $300 million joint venture with China's Harbin Pharmaceutical Group Holding Co. suffered a delay this week when GNC didn’t get a quorum for its stockholder meeting. More than 92 percent of proxies received authorized a vote in favor issuing convertible preferred shares that would give Harbin a 40 percent stake in the company. The next vote takes place May 9. 

We reviewed 7 natural deodorants (so you don’t have to)

Natural deodorant review promo

When Vogue publishes an article outlining the 10 chicest aluminum-free deodorants, you know you’ve got a trend on your hands. That, and the fact that conventional personal care conglomerates such as P&G, owners of Secret and Old Spice, and Unilever, owners of Dove, Degree and the unofficial scent of teenage boys, Axe, are acquiring natural deodorant brands in droves. Unilever recently acquired Schmidt’s, a product conceptualized and crafted by founder Jaime Schmidt in her kitchen, and in November, P&G acquired Native, a brand that is available via online purchasing only and has accrued a cult-like following.

Natural deodorants aren’t exactly new—they have been available in natural products stores for decades. But sales were stagnant; products were unexciting. Sometimes, natural deodorants appeared in odd formats, such as in a tub rather than a stick, rendering would-be shoppers frightened away by the prospect of using their hand to smear an oily substance into their moist pits. While we in Birkenstock-wearing Boulder are no strangers to trying uber-natural deodorants (or, ahem, none at all), in order for most consumers to truly make a switch to natural, products must mimic conventional options and actually work.

Such deodorants are successfully squashing consumer skepticism about efficacy, which is pushing the entire natural beauty and body category forward, says Jessica Rubino, New Hope Network’s in-house personal care expert.

“Would those plant-based deodorants ward off the stench? In recent years, formulators have worked hard to ensure the answer to this question posed by consumers and retailers would be a resounding ‘yes,’” Rubino explains. “And perhaps the greatest breath of fresh air (yes, it’s safe to take a nice big inhale) has been in the form of high-performance deodorants that are proving skeptics wrong and delivering seriously satisfying results—all with safe and effective ingredients.”

That said, some natural deodorants do limit B.O. better than others. A few editors on the New Hope Network content team have spent the last month experimenting with both new and legacy natural brands to determine which ones come out on top. Here, we review seven deodorants—so you don’t have to.

Crystal Invisible Solid Deodorant Lavender & White Tea

From the makers of the classic aluminum-free deodorant (it’s also available in a chunky “crystal” form) comes this redesigned product in a stick. It’s made without aluminum, chlorohydrate, parabens, zirconium or artificial dyes—ingredients often found in conventional products. While the Lavender & White Tea scent sounded wonderful, it smelled more saccharine than floral.

Experience: The texture is similar to a firm gel, which left no flakes or white streaks on my clothing. It pleasantly glided over my skin, making it a cinch to quickly use.

Efficacy: In my case, the “24 hour” call-out on the front of the package wasn’t accurate. It lasted for about six hours, and then my mom told me I smelled. And moms don’t lie.

SRP: $5.79

Recommend to a friend? I probably wouldn’t recommend this product to a friend, but I do appreciate Crystal’s heritage as an original natural deodorant. And I’m sure Crystal works wonderfully on others. Perhaps it’s just not for me.

Native Lavender & Rose

A full day of work, a 104 degree, 75-minute hot yoga class and a late-evening neighborhood stroll with the pup were no match for Native. This product left me feeling fresh from rise to rest. 

Experience: The smell is the perfect simple botanical blend, and the traditional roll-on applicator is smooth and doesn’t harden. The best part? You can subscribe in a cadence of one to four months from the Native website and save cash and time, so you never have that panicked “out of deodorant” moment.

Efficacy: After many tumultuous relationships with natural aluminum-free deodorants, I found that Native takes the prize for keeping me dry and feeling confident in a way that I can only explain as magic.

SRP: $12 per bar or $30 for 3 bars. Not sold? Invest in the tiny travel pack for $24 for 5 mini-bars.

Recommend to a friend? Though the price point is high, it's worth the cost.

Tom’s of Maine Long Lasting Deodorant Unscented

There’s lots to love here. With nine ingredients, this is one of the cleanest options I’ve seen, and it scores top marks in the Environmental Working Group’s Skin Deep database. Of course, Tom’s of Maine has been a pioneer in the natural personal care space, demonstrating a long-lasting commitment to transparency, sustainability and social consciousness.

Experience: This was easy to apply—it's naturally soft, so you don’t have to let it warm against the skin like you do with some others, and it’s never left marks on my clothes.

Efficacy: The “24 hour odor protection” claim on the packaging seems like a stretch. For this not-particularly-sweaty office dweller, it barely held up for the length of the workday. By the time I changed clothes for an afternoon or evening workout, it was definitely time to re-apply.

SRP: $4.27-$5.99

Recommend to a friend? Maybe for those who don’t sweat a lot and aren't super active.

Kiss My Face Active Life Deodorant 

The ingredient list is a bit intimidating, but it’s still clear of aluminum, parabens and artificial fragrances. It was also one of the more affordable options on the shelf at my local natural products store.

Experience: The first application was a little rough against my skin, but it was smooth sailing after that. At first, this deodorant smells a little funky when you take off the cap, due to the various extracts inside (rosemary, sage, coriander, thyme and green tea). Once I put it on, though, I didn’t notice any particular smell.

Efficacy: To my surprise, this deodorant kept me fresh throughout the day, even after a gym session.

SRP: $5.99

Recommend to a friend? Yes.

Nubian Heritage Patchouli & Buriti

Nubian Heritage has a line of Patchouli & Buriti-scented products ranging from bath bombs to body lotion to soap bars. Despite the patchouli, none of them, including this deodorant, smell overly like the third day at Woodstock. Rather, the scent is mild and soapy. I also dig the company’s commitment to sourcing fair trade ingredients, including shea butter.

Experience: Feels soft and nourishing on the skin, thanks to the abundance of oils and vegetable glycerin. Not for nothing, the deodorant's beautiful packaging looks great on my bathroom counter. Plus, it left no white streaks on my black blouse.

Efficacy: The deodorant effectively squashed stink during a low-active day spent working in front of my computer. But it quickly wore off during a pre-dinner run, which left me hunched over in a public bathroom, splashing water onto my pits before entering the restaurant.

SRP: $8.99

Recommend to a friend? Probably not.

Schmidt’s Natural Deodorant Rose & Vanilla

Available in luscious scents (yes, I'm describing a deodorant as luscious) such as Lavender + Sage, Ylang-Ylang + Calendula, Cedarwood + Juniper and more, this stand-out brand neutralizes odor and absorbs wetness. I love the easy-to-understand list of ingredients that includes arrowroot powder, coconut oil, shea butter, baking soda and more. If you wanted to, you could make this product in your kitchen. It's that clean label.

Experience: The texture is naturally rough—especially in winter months when my house is a little cooler. Place against your skin for a few seconds to allow the deodorant to soften, then glide on a thin layer. The scent is fresh and floral. It can rub off on dark clothing if you’re not careful.

Efficacy: Now this is what I’m talking about! Schmidt’s seems to last forever. I stayed fresh throughout the workday (with a quick run at lunch) and even through a hard session at the rock climbing gym. I don’t know how such natural, recognizable ingredients work so well, but Schmidt’s is officially my deodorant of choice from now on. I can’t wait to sample the other scents! 

SRP: $9.99 (I know it’s high, but you won’t regret it.)

Recommend to a friend? Absolutely!

Type: A Deodorant The Visionary Clean Crisp Citron

I love the squeeze-bottle container and unique applicator that ensures you apply a perfect, thin film to your underarms. The texture of the deodorant is quite nice—smooth and silky.

I’m happy to see that Type: A is transparent about what's inside—the company lists all ingredients and their functions on its website, which is rare in personal care. While the deodorant is free from aluminum and parabens, unfortunately Type: A does incorporate a few synthetic ingredients, such as diisopropyl adipate, which contribute to the creamy texture. But the existence of a database is commendable—it upholds the integrity of the brand.

Experience: Is it possible to look forward to putting on deodorant every day? It is with Type: A, as it makes my underarms feel smooth and perfectly moisturized. The crisp, citrusy smell is delightful. If scented deodorant isn't your thing, an unscented version is available, too.

Efficacy: Top notch! I almost feel like one application would stop stink and sweat for two days. It definitely works better than the conventional brands I’ve used all my life. 

SRP: $10

Recommend to a friend? Yes.

NBJ

Top takeaways on the raw materials market

raw materials market

In 2017, raw material sales grew 6.8 percent and hit $5.1 billion, while consumer sales of finished supplement products climbed 6.1 percent, reaching $43.5 billion. Beneath those numbers, the math changes with every sale, contract and delivery. Supply chain and price gouging. Quality and ingredient integrity. And that’s before the innovation driven by branded ingredient comes into the equation.

Finished product companies know their customers want purity and science to prove efficacy. Ingredient companies want to supply both but depend on finished products to communicate that, and do so responsibly. The level of cooperation and mutual benefit is what can either build the next blockbuster ingredient, or keep the most intriguing science in the lab.

Claire Morton, Nutrition Business Journal's senior industry analyst, offers these top takeaways from the 2018 Raw Materials Report: 

• The supplement raw materials market in 2017 was $5.1 billion with 6.8 percent growth.

• Sports nutrition raw materials had the strongest growth at 15.7 percent.

• Vitamins make up the largest share of raw materials, wholesale/manufacturer sales and consumer sales.

Fill out the form below to download the charts that these insights were derived from, and purchase the report here.

Download the top charts from the 2018 Raw Materials Report: