Germany Leads the Way
Posted - May 12, 2008
Organic Supermarkets and Discounters Remain as Driving Forces in Germany
Introduction by Kai Kreuzer, BIO-Marktinfo
When Rudolf Steiner “invented” organic agriculture in the 1920s, he couldn’t have perceived what significance it would have in Germany some 80 years later. Today, Germany is the biggest European organic market, with a share of around 30% of all organic sales in the continent. Three percent of total food consumption is organic. Last year 16,800 farmers worked on 812,000 hectares of organic farmland. That’s almost 5% of the total agricultural surface. Germany recorded 4 billion Euro in organic sales in 2007, 15% more than the year before.
Based on its evolution, the German market can be divided into three categories: the pioneers, the small specialized shops and the conventional market. The first phase refers to the early 1920s, when concern for the side effects of industrialized farming was already evident. Farmers noticed the steady decline in their crops; some decided to follow the principles of Rudolf Steiner. Demeter and Reformhaus were among the first names to appear. During World War II, development came to a halt.
The first simple direct-marketing systems sprung up in the mid 1950s, when farmers began to sell their produce at shops and farmers’ markets. In the 1960s, there was moderate growth in organic farms belonging to the biodynamic Demeter association and the Bioland group, founded in 1971.
In the second phase, beginning in the early 1970s, specialized organic shops emerged. One of the first was the Erdgarten in Munich and Rapunzel in Augsburg, predecessor of today’s big importer and trader. Most organic wholesalers were founded during this period, due to demand from shops for regular suppliers. Shop owners drove to farms for wheat, potatoes, vegetables and fruit. Some drove to Italy in lorries to import wine and oranges! A structure of about 18 wholesalers was born which continue to do business today, largely delivering on a regional basis. Dennree, the only national distributor and now the biggest wholesaler with a yearly turnover of 230 million Euro, started in 1974.
After 25 years, about 2,500 specialized shops had been founded and the percentage of organic product lines continues to increase. The average retail space grew from about 25 m2 to 100 m2. These shops were still tiny compared to the supermarkets and shopping centers that had been developing at the same time.
The third phase began in 1998, with the foundation of the organic supermarket Basic in Munich, center of Germany’s organic lifestyle. Although Basic was not the first organic supermarket in Germany - about a half dozen others preceded it - none has enjoyed such enormous success. In the last 8 years, small retail chains have developed. In 2005, 60 organic supermarkets opened with a retail space between 200 and 1,000 m2. Altogether, there are now more than 300 such stores, with 50 to 60 new ones cropping up per year.
Meanwhile, consumer awareness of organics grew thanks to the “conventional” mistakes of non-organic producers. Organic options moved into mainstream consciousness through food scandals, including hormones in calf meat. Soon organics were no longer considered fringe products for odd customers who wore eco-clothing, but instead developed an image as a choice for modern, sustainability- and future-oriented customers.
Seeing opportunity, big business entered the picture. In 2003, the discount-retail company Plus (2,750 shops) rolled out a modest range of organic products (30 lines) under their own label BioBio. Branchenprimus Aldi Süd (together with Aldi Nord and its 3,700 shops) are now the biggest sellers of organic potatoes. In May 2006, discounter Lidl (2,700 shops) began to offer organics, with a range of 50 products. Last year, discounters added organic bananas with good results.
Quantities sold in the specialized markets have stayed about the same, but bulk sales are made by discounters and conventional supermarkets. Total sales of organic bananas in Germany tripled from 2004 to 2006, from 8,000 tons to 21,700 tons. Standard organic items such as milk, yoghurt, bread, cheese, mueslis, potatoes and some fresh fruit and vegetables are widely available. Broad ranges (of 2,000 organic items or more) are carried by specialized shops, organic supermarkets and a smattering of conventional shops.
The next years will bring a moderate growth of organic food lines in the conventional trade and more competition for the specialized trade, as the old standbys try to to defend their loyal market share. The winner, in any case, will be the consumer, who enjoys ever more choices.
Please read on to Part 2, main text of the article.
Germany Leads the Way - Part 2
Posted - May 12, 2008
Organic Supermarkets and Discounters Remain as Driving Forces in Germany
By Martin Grass
Learning about the people behind the brands we see at the fairs and shops is important to maintain the transparency of the organic sector. Keeping track “from field to fork” is the prevalent slogan.
Here we present some of the best players of the organic scene in Germany. They are producers and processors. Most of them started a retail shop back in the 1970s . The retailers play an important role, especially organic supermarkets and natural health stores such as the Reformhaus chain, the oldest health conscious retail chain, dating back from the 19th century. Today, Reformhaus operates mainly in Germany, Austria and Switzerland, with products under its own Neuform brand and the brands of other suppliers.
Although not all products are organic, the trend is to increase the number of organic certified products. Reformhaus is a strong reference in the German market for reliable advice, quality products, variety and convenience. On the other hand, organic supermarkets have been emerging with a strong image of a trendy yet quality-oriented sector, where LOHAS consumers gather for a cappuccino while their bread is being baked.
The association of organic supermarkets includes ten companies, among them Alnatura, Basic, BioCompany, Ebl-Naturkost, eo (for Eat Organic), Füllhorn, Grüner Markt, Naturata, SuperBioMarkt and Vollcorner BioMarkt.
Please meet some German entrepreneurs, pioneers and newcomers below!
Managing Director Joseph Wilhelm
Line of products: Muesli, dried fruits, oils, sauces, grains, chocolate
In 1974, pioneers Joseph Wilhelm, Jennifer Vermeulen and Peter Erlinger opened an organic natural food store. Three decades later, the company has become one of Europe’s largest importers and distributors of organic dried foods and has operations in Spain, France, Italy, Turkey and the United States. Annual turnover reached Euro 76 million in 2005. The firm delivers more than 400 products directly to natural food stores and organic supermarkets in Germany. Exports, 34% of the firm’s business, go to 31 countries. Imports come via long-term projects and partners around the world. The firm developed the fair trade seal “Hand in Hand”.
Andechser Molkerei Scheitz GmbH
Managing Director Barbara Scheitz
Line of products: Dairy, yogurt and cheese specialist
Bavarian organic pioneer, the 5th most sold organic brand in Germany. Mrs. Scheitz is the 2nd generation running this successful Euro 75 million business with 170 employees and 420 farmers from the producers’ associations Bioland and Demeter. Andechser introduced functional and reusable glass containers to the sector. The firm boasts annual processing of 64 million kg of cows’ milk and 5 million kg of goats’ milk. Exports go to France, Greece and Holland. Constant innovation and product diversification is Andechser’s recipe for success.
Managing Director Volkmar Spielberger
Line of products: Cereals, oils, dried fruits, chocolate, nuts, tomato-based sauces, salt and spices
Mr. Spielberger is the 3rd generation in this dynamic business, established in 1930, operator of the first and only organic mill in Germany. Involved in production under Demeter quality since the mid 1960s, the firm now has 100 employees and an annual turnover of around Euro 20 million. Naturata imports ingredients through long-term cooperations and partnerships in over 30 countries. These include olives from Greece and Tunisia, dried fruit from Turkey, chocolate from the the Dominican Republic and sesame seeds from Uganda.
Ulrich Walter GmbH
Managing Director Ulrich Walter
Line of products: Organic coffee, tea, herbs and spices
In 1979, Ulrich Walter and his wife Angela started a 30 m2 natural food store. Today, their firm is one of the main players in Germany’s organic scene, with 6 divisions for a total area of 5,500 m2. Annual turnover was Euro 17.5 Million in 2005. The company’s own brands are Lebensbaum, Bioveda, Donum Naturae and, under license, Janosch and Kosmos Krauterhexe. These brands are present in a range of 300 products distributed at the national level. Exports go to the EU, Japan and Taiwan; imports come from 30 countries, mostly European nations.
La Selva Toskana Feinkost-Vertriebs-GmbH
Managing Director Karl Egger
Line of products: Tomato purees and sauces, soups, wine, pesto
In 1980, Karl Egger, co-founder of the organic producers association Naturland, made his dream come true: An organic enterprise in Italy to produce quality food in a sustainable way. With an annual turnover of some Euro 10 million, La Selva is among the best known brands in the specialty food segment and has a range of 140 products. Exports account 50% to Germany and the rest to other countries. At first people thought he was crazy, but today his project has become a model to inspire others. The firm also offers a bed and breakfast facility suiting up to 30 guests.
Managing Director Peter Kowalsky
Line of products: Innovative soft drink
Bionade is one of the current success stories of the organic sector in Germany. Established in 1995 by Dieter Leipold, the firm developed a unique soft drink produced with organic ingredients following revised beer-brewing principles. It was not easy to launch the product properly, but perseverance, unique advertising and a close relationship with the press finally paid off. In the last 2 years, the company has grown 300%, with 60 million bottles sold. The drink is distributed to organic stores and to conventional supermarkets and other points of sale, including a distributing relationship with the Coca-Cola Company.
Managing Director Siegfried Schedel
Line of products: Baked goods
Established in 1996 as an innovative enterprise from the Bioland association, Siegfried deals in direct milling and production of frozen baked goods distributed throughout Germany. Exports are sold to 17 European countries. The group’s annual turnover was Euro 5 million in 2005. Mr. Schedel was not satisfied with the development of the conventional baking industry and searched for alternatives in the organic sector, with support from Demeter and Bioland. The firm carries 14 patents and a range of 75 products in a mill developed with eco-friendly standards.
Managing Director Veronika Ramsauer
Line of products: Hemp-based natural cosmetics, energy bars, teas and oils
One of the youngest companies on the German organics scene, Natur-Oase was established in 2004 as part of Hanfwelt Riegler-Nurscher Österreich, with annual growth of 30%. Mrs. Ramsauer comes from the health sector. Fascinated with the beneficial properties of hemp that have been long neglected by modern industry, she decided to bring this natural product back to the consumer. Paying close attention to the market, Natur-Oase has developed a unique range of hemp foods and cosmetics. Exports go to France and Switzerland, with plans for an expanded distribution network.
Continued from Part 1, introduction.
C&A Goes Organic
Posted - May 1, 2008
Organic Cotton Catches On
By Gloria Neumann - as printed in O.W.N. Summer 2008
One of Europe’s largest clothing retailers has made an organics splash with a project that should purchase about 15% of the world’s organic cotton harvest this year- and retail the resulting clothes for the same price as the firm’s conventional equivalents.
C&A launched an organic cotton clothing range in more than 200 stores in Fall 2007, a project that consumed 1,200 metric tonnes of certified organic cotton last year. The line in 2008 should consume 7,500 metric tonnes, said spokesperson Thorsten Rolfes.
“We see organic farming as offering a great opportunity to improve the environment and related impacts on the climate,” Rolfes said. The project is “offering farmers in developing countries the chance to become more self-reliant and to expand their farming skills,” thus “playing a part in helping to reduce poverty in rural farming communities in developing countries.”
Offering the organic products for the same retail price as C&A’s conventional line does mean a smaller profit margin for the firm, Rolfes said. However, C&A expects this will speed up the availability of organic cotton products, he added, making the compromise worthwhile.
Organic Exchange has been C&A’s partner in its organic cotton project since 2004. The US-based charity works to unite brands like C&A with stakeholders all along the organic cotton supply chain - right back to the farmers in India who produce C&A’s organic crops.
About 5% of cotton clothing sold at C&A this year should be 100% organic cotton, said Rolfes. Some C&A stores feature a window promotion of the eco-products. Inside, the stores have a dedicated space that displays only the organic tops, bottoms, dresses, underwear and baby clothes, he said. Each organic product has a distinct tag indicating its status.
The initiative is just one part of the company’s “We C&Are” environmental strategy, released in 2007. That strategy also includes using renewable energy to power stores and distribution facilities, which, a company release states, should reduce the firm’s carbon dioxide emissions by about 70,000 tons this year.
C&A was founded in 1841 by Clemens and August Brenninkmeijer. It now has about 1,200 stores in 16 countries and employs 34,000 people.
Brazilian Cosmetics
Posted - May 1, 2008
Beyond Raw Ingredients
By Adriana Michael - as printed in O.W.N. Summer 2008
The bounty of Brazil’s rainforests provides many healing ingredients for everything from functional foods to jewellery. In the past, indigenous peoples have been often left out of related success stories. Raw ingredients are shipped off with no added value for the local economy.
Now the growing market for eco-friendly goods stimulates sustainable ways to preserve the forests and knowledge native experts have used for generations.
Brazilian cosmetics firms Florestas Organic Botanical, Surya Nature Inc., Reserva Folio and newcomer Maté Therapy chose to break the mould by processing in Brazil. Florestas capitalizes on local Brazilian expertise, says founder and managing director Fernando Lima. Working with Brazilian labs to test its naturally rich plant ingredients, the company offers fair prices to local producers and processes in Brazil.
“Florestas realizes advantages over large, foreign firms through its low-cost structure, production flexibility and access to exotic and effective organic certified products,” says Lima. “By eliminating the middleman with direct purchasing, Florestas cuts cost and pays higher prices to local families.” Besides Brazil, its Ikove-brand line is now in major US retailer Whole Foods, as well as in Japan.
Capitalizing on the richness and beauty secrets of India and Brazil is Surya Nature. Founder Clelia C. Angelon, an animal-rights and environmental activist, sources from both countries to produce her beauty products, exported to 20 countries, fifty percent of total sales.
Amazonia Preciosa, Surya’s certified organic personal care line, features the scent of the preciosa tree which grows only in the Amazonas. “This kind of smell, you can’t copy in the lab,” Angelon says.
“In Amazonas, people know the plants, but they don’t know how to classify them scientifically,” she adds. Surya funds a school to help locals formalise their knowledge of useful plants and a cooperative that creates jobs for the graduates.
A delicate collection of handmade jewellery made from Amazonas golden grass will soon be added to Surya’s offerings, a move to preserve more of the region’s forests. This grass grows only in the southern Amazonas. Nowadays, many locals burn these forested fields to raise cattle. “We are showing them that they can make more money by preserving and working with the golden grass than by raising cattle and destroying the environment,” Angelon says.
Founded in 2003, Reserva Folio also makes optimum use of Brazil’s environmentally-sound resources. Founder and managing director Simone Valladares embarked on the challenging mission to develop her Apicultural, Aromatherapy and Amazonic organic and natural personal care lines. “It is very difficult to develop new formulations and ensure the peformance consumers are used to from conventional brands”, says Valladares. Reserva Folio offers soaps with a strong natural fragance, making one think of sweeet rainforest airs. Brazilian crops featured include andiroba oil, cupuacu butter and Brazil nut.
The youngest Brazilian natural cosmetics firm made its debut at Expo West this Spring: Maté Therapy has an attractive line of toiletries in deep blue containers. Yerba maté is the key ingredient in the young firm’s products, so far body lotion, antiseptic soap and room spray.
The firm sources and processes in Brazil and has already found interested US distribution partners. “Working with local maté producers and then a local factory is not too difficult”, says company President Denise Vieira de Souza. Yet few firms opt to process locally due to the additional investment needed, she adds. In organics, strict manufacturing regulations must be followed - an effort that can cost a lot of money. “Most firms prefer only to export the ingredients,” she says.
Still, if native crops are harvested sustainably and in partnership with local growers, any way to share the Amazonas bounty deserves support. Brazilian Forest Natural Products sells high quality Brazilian produce and herbs in freeze-dried, extracted and tinctured forms, mainly to Asia, with Europe and the US as near-future markets.
“Brazil has a lot to offer”, says the firm’s international operations manager Reindert Dekker. “The quality and, in particular, the variety of natural products present in Brazil is amazing”.
According to Dekker, “the most exciting part is working with products that are completely unknown now, but, that in two years time may be on every breakfast table or in a new top perfume,” he adds. That’s a familiar feeling for the many firms now working for sustainability with Brazil’s natural bounty.
OASIS
Posted - May 1, 2008
OASIS: New US Cosmetics Standard
By Adrian Larose - as printed in O.W.N. Summer 2008
A new industry-based organic cosmetics standard is attracting attention, and criticism, with respect to the question of how to define what qualifies as an “organic” personal care product.
The clear, legislated organic standards that exist for food are rarely used to certify personal care products (including cosmetics). According to some in the organic industry, the food standards are inappropriate for such use.
The draft OASIS (Organic and Sustainable Industry Standards) private cosmetics standard for US personal care products is already backed by about 35 firms, including large conventional companies such as L’Oreal and many small American organics firms. The draft standard is available for comment on-line at www.oasisseal.org until June.
A phase-in period beginning with an 85% organic requirement - counting water, a major ingredient in most cosmetics - to end at 95% just 4 years later is part of the draft, with restrictions on allowed ingredients in the remaining 5%. That has some groups insisting OASIS present itself as a “made-with organic” standard, not simply “organic”.
“We want a tougher list of allowed ingredients,” says Ronnie Cummins, co-founder and national director with the grassroots US Organic Consumers Association. “Certain preservatives and hydrogenated and sulphonated cleansers the draft allows are of concern “, he says.
But some chemicals are obviously necessary in cosmetics, counters OASIS. “You have to use chemistry,” says group chairperson Gay Timmons, with American ingredients firm Oh, Oh Organic. “We felt that the only way you could really do that was to identify those chemical processes and those chemicals that are environmentally responsible.” The OASIS standard follows US Environmental Protection Agency guidelines on green chemical processes, notes Timmons.
The phase-in addresses hard-to-find organic ingredients such as surfactants. The group hopes OASIS participant purchases will support and increase organic production of these, allowing products to reach higher organic percentages over time.
The Organic Consumers Association insists the US National Organic Program food standards can be applied to personal care products. About a dozen companies currently have NOP certified organic personal care products, Cummins noted . Timmons advises that the number includes a few OASIS members , but the particularities of the NOP regulations do not work for all personal care categories.
A cease and desist letter has been sent to OASIS by the consumers association, asking the group not to make organic claims until its plans satisfy certain criteria. According to Timmons, such demands only undermine the standards-creation consensus process - she noted that the NOP food standard only developed after many diverse private standards were created.
“To suggest, or to demand as has occurred in this cease and desist letter, that this is something we shouldn’t do, I think it undermines the very process that has given us a fantastic law in the case of the NOP,” she says. “The federal government’s not going to regulate something so controversial that people are constantly screaming at each other.”
OASIS members are also participating in an on-going national process aimed at creating a USDA-regulated standard Timmons says, and in the meantime, OASIS makes sense. “How are you going to get 360 million people to agree? It takes a while.”
Green Business
Posted - May 1, 2008
Keeping Your Business Green On-Line
By Matthew Gibson - as printed in O.W.N. Summer 2008
Many of us run our business from our home, or a small office. While we may have little to no time to reflect on our impact on the environment, it’s now easier than ever to reduce that impact, starting with a few clicks of the mouse. Many actions do not require a lot of concentration or changes to your routine to ensure our green business stays green, on-line. Here are a few things that we adhere to within our organization that may also help you.
- Computer Power - One of the first things to do is ensure you have the proper power settings enabled on your computers and other electronic devices. Many people do not, thus using a lot of energy even when you’re not working. Just turn on the sleep modes of your computers and monitors to conserve power, or consider upgrading to a new 0-watt standby LCD screen.
- Paper Consumption - Paper, some would say it’s a requirement of every business. No longer. While some studies show that businesses are using more paper than ever by printing emails, receipts and other items, you can help reverse this trend and save trees. If retention of important information is a concern, develop a backup procedure and policy that fits your organization for both files and e-mail and you will be well on your way to rarely using that printer. Don’t forget to turn it off when it’s not being used, either! Another step is to convert all invoicing, billing and vendor statements to an online format. Set up all bills and notices as e-statements. Don’t forget to sign up for your government’s “do not subscribe lists” to reduce junk mail, if available. For those times when you absolutely need paper, use organic or recycled versions, and for internal jobs, use both sides. Another great tip is to buy a paper shredder. After shredding documents for security, you can use the shredded paper to safely ship items. Unplug the shredder when it is not in use!
- Collaboration - Instead of commuting or traveling for meetings, use the long-distance tools that are available to you - Skype, MSN, AOL Instant Messenger, or VOIP services for international calls to save money. Video devices can even be used, all with much less environmental cost than traveling. Sites like Skrbl even allow for on-line white-boarding. Forget the boardroom, take it on-line!
- Get Wired - Stock the coffee machine with fairly traded, organic coffee or tea, and if can not avoid sugars, go for natural sweeteners. Stop ordering out - bring a lunch in re-usable containers. If you go out for lunch, try biking, walking or riding public transit.
- Energy Use - Many organizations offer incentives for using solar power, wind power or other ecologically-friendly methods to light up your offices. Talk to your local energy provider to see if they offer such programs. Alternatively, many energy providers offer “Green Power” programs that you can sign up for.
- Carbon Use - Websites like Carbon Foot-Print, Carbon Fund, Carbon Mutual, or Carbon Neutral help to determine your business’ carbon usage. Buy off-set credits aim to help your business compensate for the environmental costs of what it can’t recycle by funding environmental initiatives.
- Recycled Tech - Don’t throw away your old electronics! Donate or recycle them. Some governments will give tax breaks when you donate old computers. This goes for cell phones, printer ink, etc.
- Lighting - Consider letting more sunlight into your work place instead of costly light bulbs. If that is not an option or you work at night, take a look at using LED Lighting to replace current lights. The initial cost is generally high, but long term the investment will pay for itself. Also consider motion sensors, timers or dimmers to control the office lights. They can all help reduce energy usage.
Matthew Gibson is President and CEO of Flewid Inc. (www.flewid.ca) a telecommunications firm based in Ottawa, Canada. Matthew also runs a popular blog on LED Lighting (news.thenewlight.ca). He welcomes feedback to m.gibson@flewid.ca.
Yacon
Posted - May 1, 2008
Yacon: Natural Sugar Control
By Adriana Michael - as printed in O.W.N. Summer 2008
A South American tuber grown in the Andes could offer valuable sugar control and immune system bonuses to the human body. The yacon, called an apple or pear of the earth for its sweet, crispy taste when washed and eaten fresh, grows between 1,500 and 2,500 metres above sea level. The Andean peoples have long used the root to ease health problems like liver ailments, says Dr. Cass Ingram, a natural health expert who has written a dozen books touching on functional foods such as yacon.
“South American traditional medicines have never been written about in common books. There’s been a lack of quality articles describing their ethnic use and the medicinal properties,” says Ingram, explaining yacon’s low profile. “No one has published about what the properties are.”
Yacon contains a high percentage of inulin, a fructo-oligo-saccharide or FOS. The body does not convert this class of sweet-tasting chemicals into energy, and so they rank a zero on the glycemic index scale. “This is the perfect functional food for resting the pancreas,” says Ingram.
Inulin mimicks better-known insulin, Ingram says, producing all kinds of health benefits. “Insulin has everything to do with how we digest our sugars and starches,” he says.
Good bacteria in the gut feed off the inulin, Ingram says. Yacon functions both as sugar control and as pro-biotic, thus boosting the immune system.
Caution is required to ensure a marketable product retains the benefits of the pure root. “We knew if we could keep it unprocessed, then it would be medicinal,” Ingram says of his early work with yacon.
Organic products derived from yacon are gradually becoming available in North America. Careful methods are required to ensure desirable inulin is obtained while unwanted fructose sugar, which occurs only in the root’s fibrous parts, is not. “If you don’t treat the product properly, what’s going to happen is that you will obtain only fructose sugar, which is not good,” says Jorge Urena, president and CEO of Uhtco Corporation. Uhtco is a well known supplier of organic yacon products, and the main importer to Canada.
Ingram worked with Urena and Uhtco’s partners in Peru to get organic yacon in its highest potency. “We asked him to make extracts that were unprocessed. No alcohol. No heat,” Ingram says. Working with small farmers in Peru and having built a Peruvian processing facility to house the required machines, Uhtco’s processing plant introduced yacon syrups and the line is expanding.
Yacon has a citrus, light caramel flavour, Ingram says. Urena prefers to use the syrups as a sweetener, while Ingram pours his over yogurt or other dairy products. “It’s more interesting for its aroma,” Ingram says, and its health properties.Whatever the impetus, many people today have far too much sugar in their diet and could certainly benefit from the natural, healthy powers of this exotic and not widely known “apple of the earth”.
Canadian Organics Grow
Posted - May 1, 2008
Canadian Organics Growing
By O.W.N. News Network - as printed in O.W.N. Summer 2008
Canada had 60 percent more organic farms in 2006 compared to 2001, the federal agency Statistics Canada announced recently. This represented about 3,500 farms who reported producing certified organic products, versus about 2,200 five years earlier.
Grain and hay crops were the most common, mainly for export. Various produce (combined as one category) formed the second most common Canadian organic crop.
Plenty of farms claimed to be producing via organic methods, but without certification - almost 12,000, mostly meat producers. Another 640 farms reported they were in transition to certified status.
Mandatory national organic standards still do not exist in Canada, a significant obstacle for organic producers. Voluntary standards have existed since 1999; various provincial and private standards that interpret these in slightly different ways exist. A single federal standard is to come into force in December 2008, at which point certification bodies will have to be accredited by the federal Canadian Food Inspection Agency.
Such a standard could provide a necessary boost to organics marketing. Despite the growth in farms, Canadian shoppers’ 2006 organic purchases remained less than 1% of the approximately $50 billion they spent in grocery stores in 2006.
Mandatory Labelling
Mandatory labelling about the fruit, vegetable, added sugar and whole grain content of processed foods is not an idea that Canada will support, at least not in its current form, according to Canadian authorities.
The topic is on the agenda at the late April meeting (in Ottawa, Canada’s capital) of the Codex Committee on Food Labelling, a body that works globally to implement the World Health Organization’s food standards.
The Canadian delegation, led by the federal Canadian Food Inspection Agency, presented Canada’s draft position on the Quantitative Declaration of Ingredients in pre-packaged foods in early April. It indicated Canada would not support a WHO amendment that asks national governments to require labels to list processed foods’ content of ingredients like fruits and whole grains.
By contrast, the Canadian group’s position read, packaging need only include such information where the company’s product pitch emphasizes or describes one or more such ingredients. Such logic does not bode well for genetically-modified organism labelling either. Right to Know Legislation just introduced in British Columbia would require all GMO foods and toxic and cancer causing ingredients to be labelled, but if healthy ingredient labelling is not supported by Canadian authorities, how likely is this to receive the required support?
GMO Free
Posted - May 1, 2008
New GMO-Free Initiatives in North America
By Adriana Michael - as printed in O.W.N. Summer 2008
Non-GMO products in North America could soon be clearly differentiated from their genetically-modified competitors. Beginning in Fall 2009, a non-profit called the Non-GMO Project plans to have participating products sport a seal to indicate they have been verified GMO-free.
Founding sponsors of the project include well-known firms like Whole Foods Market and Nature’s Path. A long list of endorsing organizations is available at http://www.nongmoproject.org/endorsers/.
The program began with independent retailers concerned about clear identification of GM foods and gradually spread into a national project. At Expo West 2008 this March, a panel featuring the project attracted a packed, standing-room-only crowd, showing the organics industry’s keen interest in the GM-labelling question.
“Starting right now, we are enrolling products in the verification program,” Megan Thompson, the project’s executive director, said at the presentation. Waiting until Fall 2009 to label products should ensure the system will be running smoothly and products will have had enough time to be verified GMO-free by the project’s independent third party. “Everyone has an equal opportunity in that way to launch the seal together,” Thompson said.
The organization’s draft GM-free standard, available on-line, considers possible GM contamination of non-GM products as well as products that intentionally contain GM ingredients.
“If you are an industry member, whether you manufacture products, or you’re a grower, or a distributor, we encourage you to enrol,” Thompson said. Start by visiting www.nongmoproject.org.
To bridge the gap until the Non-GMO Project’s non-GMO seal hits the shelves, Jeffrey Smith, author of the two books Seeds of Deception, and Genetic Roulette: The Documented Health Risks of Genetically Engineered Foods, plans to publish a Non-GMO Shopping Guide. The guide will list products that have applied for Non-GMO Project verified status.
Smith’s Campaign for Healthier Eating in America: No Genetically Modified Organisms (www.responsibletechnology.org) plans to distribute the guide beginning this Summer. It should be available in certain stores, as a magazine insert and on-line.
The Campaign is run by the non-profit US Institute for Responsible Technology, which Smith founded in 2003. Its Non-GMO Shopping Guide should help consumers decide what belongs in their GM-free shopping baskets. The Campaign’s website also offers tips on what foods are likely to contain GMOs and on how to approach a GMO-free lifestyle.
Seeking a national GM-food labelling system for the United States is The Campaign to Label Genetically Engineered Foods (www.thecampaign.org). Started back in 1999 by Craig Winters, Alexander Schauss and Marlene Beadle, this group of environmental lobbyists is seeking grassroots support to convince Washington politicians that a nationally regulated GM-foods label is the best choice.
The group’s website provides links to help consumers easily e-mail politicians, retailers and manufacturers. Also key is spreading the word amongst your circle of organic-oriented contacts!
From developing a private standard, to pushing for national legislation on GM standards, to informing more consumers through GM-free guides in the meantime, the work required to bring North America’s GM foods out of the closet is finally being done.
Consumers have the power to support non-GMO products, Thompson pointed out. But before they can do so, they must be able to tell which products fit that category.
Veritas
Posted - May 1, 2008
Veritas: Strong Spanish Voice for Organics
By Lucia Lorente - as printed in O.W.N. Summer 2008
An organic supermarket chain based in Barcelona, Spain, with 14 retail outlets, runs its own brand, uses electric cars, produces its own television show, offers extra incentives and premiums based on quality to coffee suppliers in Nicaragua, and still offers competitive prices. What’s its secret? Media.
A Daunting Mission
Present company managing director Silvio Elias de Gispert, two experts in the supermarket business and a marketing professor saw that the organic sector was beginning to grow in other countries. So why not in Spain? In 2002, the four opened their first store - 120 square metres, displaying 1,800 different products. Through 2003, the firm opened three more stores, part of building purchasing volume and power to ensure lower prices for consumers.
Spanish shoppers consume less organics than most Europeans. Most are very conservative and see the word “ecologico” (organic) as negative, so Veritas had a daunting mission. In response, the firm went beyond retailing to become a media voice for organics.
A Media Solution
In 2004, Veritas launched its own television show with a local TV producer - a space to share information about the benefits of organic foods and a healthy lifestyle. The show features a nutritionist who answers questions from Veritas clients. The company develops the scripts, offers the samples of different brands and covers the cost of the TV presenter. “Real cooperation with the TV programmer, allowing us to reach people across Catalonia,” says Elias.
Veritas believes that the only way to improve peoples’ lives is to reach them via mass media. “There is no one else in Catalunya and at national level responsible for spreading the right information about organics and wellness options, not even the Spanish government,” says Elias. “Veritas is aware that our presence is important in helping to develop the new organic market in Spain.”
Attracting Consumers, Building Loyalty
To attract consumers to its stores and thus to the organics concept, Veritas introduced freshly baked organic bread in its stores. Consumers appreciated the tasty product, giving the firm an opportunity to start teaching the market what organics is all about. Each Veritas store has an expert on hand to answer questions and give information about new products. Educating the public about organics puts Veritas ahead of other competitors.
Another marketing tool of the innovative supermarket chain is its slogan. “Menjar de Veritat” - Catalan for “real food” - helped bridge the gap between mainstream consumers and organic foods. “By positioning organic as the best, most genuine option, many consumers now see Veritas as a reference point for finding healthy and delicious food,” says Elias.
Philosophy
Veritas also focuses on fair trade and access for all consumers to real, good foods. To ensure reasonable prices and high quality, the firm works directly with producers.
In Nicaragua, for instance, Veritas holds a competition among coffee producers. The highest-quality coffee produced by a cooperative gets a 2-year contract to supply the Spanish chain. Social premiums are added to the price to help further support workers and their community.
Veritas also cooperates with several community organizations in Barcelona seeking to improve waste collection and management. The company was among the first to introduce paper shopping bags. In May, Veritas will introduce reusable textile shopping bags. The firm also plans to plant trees to help compensate for its carbon footprint.
Continued Growth
The firm opened six more stores in 2005, and as of press the next store was scheduled to open in April. Elias states that opening a Veritas store costs about 300,000 Euros at an average of 300 m2. In 2007, the company’s annual turnover was about 11.5 million Euros. For now, all stores are owned by the firm, but the company may consider franchising.
Veritas now has 150 employees at 14 stores in Barcelona, Granollers, Sant Cugat and Castelldefels, offering 4,000 organic food products, 300 of which are Veritas’ own brand. “We offer all product categories usually found at a supermarket, except for fish”, says Elias. “There is little organic-certified fish and the small volume in the market is still very expensive.”
Electric Cars: Beyond Products
Veritas has gone “beyond product” with its media strategy while ensuring its whole strategy helps the environment. Recently, the firm introduced the electric car called Reva (Revolutionary Electric Vehicle Alternative) to Barcelona for its business fleet. Powered only by electricity, the vehicles reduce harm to the environment. In a hard market, Veritas has used the mass media to spread the message.
