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Articles from 2015 In July


NBJ Data Corner: How supplement sales break out by product

The industry is dominated by three categories collectively: Vitamins, Specialty Supplements and Herbs and Botanicals. These three categories make up 68 percent of all sales while the other three, Meal Replacement Supplements, Sports Supplements and Minerals, combine for only 32 percent of all sales in the supplement universe.

Two of these key supplement categories are struggling. Vitamins saw its single biggest sub-category, multivitamins, grow nearly flat in 2014 after media focused on a study calling vitamins "useless." Specialty Supplements saw their worst growth year since we began tracking the category. Fish oil continued to struggle for a second straight year, and three other key growth drivers for the Specialty Supplement category suffered major declines in sales growth for 2014. Only herbs and botanicals, a favored supplement of millennials, managed to continue their strong growth in 2014 by only slipping by one whole percentage point. With that said, 2015 did not start well for this segment, with the New York Attorney General accusing the industry for widespread mislabeling and adulteration.


Supplements for Aging Gracefully


More Supplements for Aging Gracefully


NBJ Data Corner: Multivitamins are no longer a safety net for supplement industry

NBJ Data Corner: Multivitamins are no longer a safety net for supplement industry

If there is any supplement which is ubiquitous in the marketplace, it is multivitamins. This supplement category has seen consistent steady growth since the turn of the century and accounts for more than $5.5 billion in sales. Multivitamins have been a source of legitimacy and safety for the industry through every bump in the road. In December of 2013, this changed as the Annals of Internal Medicine published a meta study that headlined: “Enough is Enough: Stop Wasting Money on Vitamins and Mineral Supplements.” The media quickly picked up on this story and focused on discussing if vitamins were a waste of money or not. The vast majority of news stories hinted or outright indicated that Americans do not need supplements, as our diets should be giving us enough vitamins. Both retail channels suffered, with mass market declining 3 percent and natural and specialty retailers seeing multivitamin sales decline 1 percent. While the vitamin category still has a fairly well respected vitamin in D, it will be important for the multivitamin category to rebound in 2015. But will it?


NBJ Data Corner: The supplement industry’s problem with trust

NBJ Data Corner: The supplement industry’s problem with trust

Trust. Trust is key in the consumer universe. How many products do you purchase that you have zero confidence in? With the myriad of negative news stories surrounding supplements, NBJ decided to ask the general population how they felt about supplements. The results were not very favorable for the industry. Thirty-one percent of consumer stated that they have never trusted supplements, with an additional 6 percent of consumers indicating that they no longer trust supplements. While this appears bad enough, an additional 10 percent of consumers indicated that they trust supplements less than two years ago.

Are these declines and complete void of trust the worst news, or is it the fact that only 9 percent of consumers surveyed indicated that they fully trust supplements? Whatever your opinion on that question is, it is clear that supplements will need to work on building trust with the consumer, for without trust sales can only go so far.


NBJ Data Corner: Sports nutrition going strong, but warning signs exist

Sports nutrition is divided into three categories at NBJ: Powders and Formulas, Pills and Hardcore Drinks. Of these three categories only Hardcore Drinks saw a sales growth improvement in 2014 compared to 2013. With that being said, sports nutrition continues to be a bright spot for the supplement industry overall. Of the three sub-categories, only Sports Nutrition Pills came close to growing at the rate of the overall supplement industry, and this subcategory is the classic laggard of the sports nutrition sub-categories. However, the decline in powders and formulas, especially in the mass market channel, is concerning, as nearly cutting your growth rate in half in one year should raise red flags for an industry.


NBJ Data Corner: When supplements lose trust

NBJ Data Corner: When supplements lose trust

How hard is it for a supplement to regain trust after consumers become skeptical of its effectiveness or use? Attempting to use sales figures as a guide shows that once a supplement category suffers back-to-back years of decline, the likelihood of a rosy outcome becomes frighteningly tough as only two of the eight supplements that qualified for the study showed dramatic rebounds. Only one, Selenium, was able to reach higher sales dollars than it had prior to the beginning of its "recession."

What did NBJ find? On average, once a supplement category suffers back-to-back declining years the supplement category shrinks by 25 percent before reaching back-to-back sales growth years. How is the rebound? Overall it looks decent at first, with growth of 16.3 percent on average; however, if we remove our two stars (Chromium and Selenium), the rebound averages only 2.1 percent.

Natural product company news - Week of July 27, 2015

Annie B’s has introduced a new coconut caramel flavor. Annie B’s is a small, family-owned caramel company based in Kellogg, Minnesota, that uses natural ingredients free of gluten and high fructose corn syrup.

LT Foods Americas, the company behind the ROYAL basmati ric brand, will launch its new organic brand ecoLife® in select Sam's Club locations on Aug. 1. The product portfolio will include authentic rice, beans, ancient grains and seeds sourced from their country of origin.

For parents who are concerned with super sticky multivitamin gummies that easily cling to teeth, American Health introduces Ester-C® Kidstiks, a non-effervescent powder drink mix option with 250 mg of Ester-C®, a patented vitamin C formula that supports immune health and delivers potent antioxidant benefits.

Bare Snacks, creator of Snacks Gone Simple, announced the launch of its new line of All Natural Crunchy Banana Chips, a first-of-its-kind, oil-free banana chip that is baked rather than fried.

Capping a decade of success employing people with criminal backgrounds and upending expectations in the bread category, Dave’s Killer Bread launched the newly formed Dave’s Killer Bread Foundation to expand employment opportunities for people with criminal backgrounds.

New from organic produce company Earthbound Farm comes certified organic, ready-to-eat salad kits in three varieties: Kale Caesar, Sun-Washed Mediterranean and Garden Party.

Working in partnership, Stratum Nutrition and BLIS Technologies announced new claim approvals from Health Canada for use of BLIS K12® probiotic in supplement products. Health Canada has approved products containing BLIS K12 to bear claim language such as, the product “promotes oral health [through the re-colonisation of the oral cavity]”, that it is an “oral probiotic for re-colonisation of the oral cavity after antibiotic treatment”, that “following oral antimicrobial rinsing Streptococcus salivarius K12 supplementation helps reduce volatile sulfur compound levels (halitosis)”, and that it “can help reduce the incidence of Streptococcal pharyngitis/tonsillitis (sore throats caused by pathogenic variants belonging to the Streptococcus genus)”.

5@5: Pesticide drift problems persist for organic farms | Thrive Market raises $30 million

5@5: Pesticide drift problems persist for organic farms | Thrive Market raises $30 million

Pesticide drift threatens organic farms

The $40 billion organic industry is most vulnerable to getting hit with unwanted pesticides from neighboring farms. That's why it's pushing for more national regulations around pesticide drift. Read more at NPR...


Thrive Market fed $30M for growing health food deliveries

The online retailer plans to use the new funding to open up a new distribution center in Batesville, Indiana, say co-founders Gunnar Lovelace and Nick Green. Read more at the Wall Street Journal...

Poor eating habits lead to nutrient gaps in children

In a comprehensive review of 10 years worth of research on nutrition gaps in children, Purdue University researchers found adolescents and food insecure children to be at the greatest risk. They also looked at the most common nutrient gaps in various age groups. Read more at IFT...


MSC-certified fish now served in one in six primary schools

More than 500 UK schools have become certified by the Marine Stewardship Council in the past year, according to a new report, and 17 percent of UK schools now serve MSC-certified fish. Read more at The Caterer...


Straus Family Creamery: When milk isn't just milk

How one Bay Area farm—the first 100 percent certified organic creamery in the country—defied a business model based on anonymous milk. Read more at Follow the Rooster...

Natural product movers & shakers - July 2015

Natural product movers & shakers - July 2015

Nature’s Power Nutraceuticals (NP Nutra) announced four new staff additions to their team of quality professionals: Virginia Agawin, Nanette Constantino and Lila Price as account managers and William Huen as logistics coordinator.

Vets Plus, Inc. is pleased to announce Lou Shaban has joined the animal health company as director of business development/R&D.

SpecPage, global provider of customised software solutions for recipe and product information management, has appointed Tim F. Mes as new member of the board of directors to support the company’s international growth.

Dr. Frederick Khachik, a renowned carotenoid scientist, joined the Kemin human nutrition and health division to focus on exploring the health benefits of dietary carotenoids in maintaining and promoting health.

Rooibee Red Tea Company announces the hiring of their new chief executive officer, Bryon Evans, who has 20 years of experience in consumer product goods, with a significant emphasis on brand management, beverage distribution, sales, and executive leadership.

Lars Asferg has joined Lallemand Inc. and will be heading its Bio-Ingredients Division.

BENEO, a manufacturer of functional ingredients, announced the appointment of Jon Peters to the position of president. He leads the company’s business for the Americas Region (U.S., Canada, Mexico and South America) from the U.S. headquarters in New Jersey.

Søren Westh Lonning has been appointed the new chief financial officer and member of the executive board of Chr. Hansen Holding A/S.

Sprouts Farmers Market announced that Shawn Gensch has joined the company as chief marketing officer, and Dan Sanders has joined the company as executive vice president of store operations.

Quality of Life Labs CEO Dan Lifton was named to the board of directors for the Organic & Natural Health Association.


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