Green Perseveres Through Tough Times
Posted - March 30, 2009
Recession or Not, Green Still the Way to Go
By Adriana Michael, O.W.N.
Unemployment rates have been on the rise around the world, and the financial crisis at its peak in strong countries like the United States and the United Kingdom. This uncertainty anticipated a gloomy economy and a tough business environment for 2009. The good news is that by the end of the first trimester, the organic and natural sectors continue showing strong performance, although not at the same growth rate as in previous years.
Organic consumers are well informed, committed and have a firm idea of their purchasing priorities. In the US and Europe the industry reports steady sales of organic fruits, vegetables, dairy products, grains, bread and meat. In Germany market research firm Nielsen Co. conducted a survey of 9,000 households this past February, 54 percent of the respondents said that they may have to adjust and give up a few things due to the economic crisis, but their lifestyle will not change much. 29 percent stated that the crisis will not affect their lifestyle and purchasing decisions. “Over 75 percent of the respondents said that in spite of the recession they would not give up buying organic, natural or health related products”, says Brigitte Arndt-Rausch of Nielsen Co. GmbH.
Conventional supermarkets, pharmacy chains and discounters lead the growth of organic sales in Germany, which enjoys a 40 percent market share. And consumers will look to the large retailers’ own brands and other more affordable alternatives, in order to stay committed to the values and beliefs that trigger their purchasing of organic certified goods, adds Arndt –Rausch.” Higher prices for organics will be accepted only if the products show a strong difference from lower priced goods in terms of taste, quality, nutrition content and positive health, environmental and social claims.
According to the Organic Trade Association, in the last decade organic food sales in the USA have grown 15 to 21 percent each year. And even though in 2008 organic sales were lower than the 23 percent projected sales of $23.6 billion, (the report has not been released at the time of writing) new research from The Natural Marketing Institute (NMI), reveals that consumers are increasingly incorporating organic products into their lifestyles. “Total household penetration across six product categories increased from 57 percent in 2006 to 59 percent in 2007”, according to NMI.
In Australia 61% of grocery buyers buy organic products, while there is some evidence of a slowing in sales of some of the more expensive packaged organic products, reports the Organic Federation of Australia (OFA). “(Sales of organics) continue to increase because consumers are buying more organic products for home consumption, rather than spending on more expensive items such as cars and TVs,” said in a release Andre Leu, OFA’s chairman.
In the UK, where consumption of organic food have indeed experienced one of the largest declines during the financial crisis, non-foods such as energy-saving light bulbs showed extremely strong sales. “In the last three months of 2008, 12.3 million of them were sold in the UK, up from 8.9 million in the same quarter of 2007, an increase of 38.2%”, the BBC recently reported, adding that “a lot of the increase may be attributed to the falling price of the bulbs”.
While we may not be seeing the accelerated growth rates of previous years, it has been encouraging to observe the positive attitude and high traffic at the fairs this trimester, much to the relief of the socially and environmentally responsible entrepreneurs and consumers. There is no doubt that, in spite of the economic recession, green is and will continue to be the way to go!
Predictions for 2009
Posted - March 30, 2009
Organic Monitor Shares 2009 Predictions
Presented by Amarjit Sahota, Organic Monitor
With the slowdown in the global economy, uncertainty for ethical & sustainable industries built up during 2008. Organic Monitor, a UK based business research & consulting firm specialized on the global organic sector & related product industries, has offered its predictions for 2009.
Organic Foods
Global sales of organic food & drink have been increasing by over US $5 billion a year, reaching US $46 billion in 2007. Positive growth is expected to continue in 2009, however slower growth rates are envisaged in countries affected by the financial crisis.
The UK market has been the most adversely affected because of the harsh economic climate reducing consumer expenditure. Other countries have been less affected with double-digit growth still continuing in northern European countries. Although consumer demand for organic foods remains high, increased price sensitivity is leading consumers to ‘trade downwards’. 
Thus, organic food sales from discounters and other low-cost retailers are increasing at the expense of other retailers. Retailer private labels are also becoming more popular than manufacturer brands.
Natural Cosmetics
Global sales of natural and organic cosmetics are increasing by over US $1 billion a year. As for organic foods, most demand is concentrated in Europe and North America. Preliminary research shows that European sales exceeded US $2 billion for the first time in 2008.
Healthy market growth rates are continuing in 2009, with most growth observed in mainstream retailers like supermarkets, drugstores and pharmacies. Retailer private labels are a major driver of market growth; a growing number of retailers are launching certified natural & organic cosmetics under their private labels, offering consumer low-price quality products. However, some rationalization is expected in 2009 due to a large number of brands competing with private labels for retail shelf-space.
Fair Trade Products
Consumer demand for fair trade products continues to strengthen in spite of the economic slowdown. Preliminary research indicates that global fair trade product sales exceeded US $3.5 billion in 2008.
Growing interest in social & trade issues involving developing countries is driving market growth. Retailer investment is stimulating production of fair trade products; a number of European supermarkets have converted their entire supply chains of certain products to fair trade. The fresh produce category is tipped to show the highest growth in 2009.
Natural & Organic Ingredients
Slowing demand from food processors, beverage companies and other end-users is bringing supply in balance with demand. After experiencing several years of undersupply, ingredient prices are expected to decline in 2009. Increased globalization of supply chains is predicted to continue as large ingredient companies spread their production bases.
Soya & Functional Foods
Dairy alternatives are continuing to gain popularity across the globe. The success of soya milk is leading to high investment in related products, marketed as dairy alternatives and / or functional products. Oat-based dairy alternatives are expected to continue to gain ground in 2009. A major advantage soya and oat-based products have is that they can be marketed on health claims.
Many new functional foods are expected to be launched in 2009, however few are likely to have a long-term presence because of the high rate of product failures in this market.
Ethical Textiles
Rising ethical consumerism is fuelling demand for organic and fair trade textiles. New product launches are expected to continue in 2009 as investment comes in from new producers and retailers.
Sustainability
Organic Monitor also expects sustainability to become increasingly prominent in 2009. Natural & organic product companies are at the forefront of adopting sustainable and ethical business practices. This development is leading to some convergence between product sectors. Indeed, many new organic product launches contain fairtrade ingredients. The number of carbon neutral companies is also expected to increase in 2009.
An Organic Valentine
Posted - February 9, 2009
Choose Organic This Valentine’s Day
Give your business partners, clients, secretaries and loved ones a sweet organic treat this Valentine’s Day. Innovative organic options in the chocolate and cut flower categories abound.
There are good reasons to choose organic in both cases. Conventional flowers normally have heavy applications of pesticides and fertilizers. This threatens low-wage workers’ health, in many cases, even before its “green” impact.
So source a quick certified pesticide-free bouquet on-line at Organic Bouquet or find a local option through Local Harvest’s organic flowers page.
Meanwhile, organic, fair-trade chocolate benefits the communities that grow it – contrasting the economic and environmental exploitation on so many large conventional cocoa plantations.
Ecuadorian Organics’ Pacari Chocolate helps the communities its crop grows in by paying a fair, living-wage price, with guarantees from one year to next. The cocoa is processed into bars right in the same communities, adding value locally instead of in a foreign country. The firm has also funded green projects such as solar-powered flashlights to replace disposable battery-powered ones, in communities where home electricity is a luxury and flashlights are a must.
Want to make your own, maybe with the kids? Then check out US firm Glee Gum’s Make Your Own Chocolate Kits. Made with organic cocoa, they’re just the thing to get your hands dirty with They are on discount until Valentine’s Day. Glee Gum also sells natural make-your-own chewing gum kits that are bound to be a hit with “kids” young and old.
When purchasing gifts this Valentine’s Day, be sure to spread your corporate and personal image of environmental and social responsibility while also spreading the love.
Poor Economy Folds 2009 Tradeshow
Posted - January 20, 2009
Cancelled: earthNOWexpo 2009
A green retail fair scheduled for June 1-2, 2009 at the Las Vegas Convention Center has been cancelled.
earthNOWexpo, a national trade show dedicated to the green retail industry, has been cancelled due to poor sales and other organizational reasons.
Organizers report that green product manufacturers and service suppliers were reluctant to invest marketing dollars for this year’s trade show. Convention attendance has declined over the past two years thanks to ongoing budget cuts at many firms, they report.
Efforts to co-locate the show with the American Craft Retailer Expo in an attempt to revive the show failed, organizers said.
Companies contracted for exhibit space for earthNOWexpo 2009 should soon receive a letter regarding booth space refunds.
Surya Brasil Introduces First Brazilian Organic Body Care Line for Men
Posted - December 8, 2008
Male Cosmetics with Essential Oils, Healthy Proteins and Mild Cleansing Agents
Surya Brasil, premier supplier of organic and natural cosmetics from Brazil, recently launched Sapien, an exciting new organic body care line for men, featuring the products at BioFach America Latina and Expo East.
Formulated for male skin and hair, the line features pure essential oils, gluten-free amaranth proteins and mild cleansing agents gentle enough for a man’s sensitive side yet effective enough to do the job. Each of the six formulations is certified organic through EcoCert and is cruelty-free.
“Concerns about persistent bioaccumulation of toxins in our environment have heightened our awareness about the chemicals we use in our personal care products,” says Clelia Angelon, President and Founder of the Surya Brasil brand. “Because of this, we have not included synthetic fragrance, artificial color, GMOs, artificial preservatives, sulfates, phthalates, silicone or petroleum by-products.”
Distinctively different, Sapien is a luxurious way for men to groom naturally. Using ethically-harvested plants and fruits from the Amazon, these body care products provide the elements necessary for healthy, radiant hair and a beautiful complexion. A subtle, woody aroma comes from a blend of essential oils such as cedarwood, lemon, bergamot and clove.
For more on the 2-in-1 shampoo, shower gel, facial scrub, shaving cream, after shave and hair styling gel with ingredients such as acai and acerola, visit Surya Brasil’s website.
Surya is a member of the Campaign for Safe Cosmetics and PETA. Surya Brasil products are available at health food stores, pharmacies, beauty supply outlets and other fine stores throughout the world.
New Partnership at ATO
Posted - November 9, 2008
Top Food Industry Trade Events Join Forces to Produce Health & Wellness Content
Diversified Business Communications, producers of Expo Comida Latina and All Asia Food Chicago, and the Organic Trade Association, co-producers of the All Things Organic Conference & Trade Show, announced today a strategic alliance with Progressive Grocer to develop an education program for food retailers on trends in the growing health and wellness markets.
Progressive Grocer, a leading publication for members of the retail food industry, is published by Nielsen Business Media.
Co-located with the 2009 All Things Organic in Chicago, the new program will add multicultural, specialty, and health and wellness products to the lineup of organic products. This new combination creates a forum for buyers across retail, foodservice, distribution and manufacturing to enjoy valuable educational opportunities and source products that will help them stay competitive.
“Progressive Grocer’s retail market expertise, backed by the research and data analysis of Nielsen, will add a unique benefit to Diversified’s already attractive event offering,” said Stephen Dowdell, editor in chief of Progressive Grocer.
The Health & Wellness conference complements the already robust organic education program produced by the Organic Trade Association, and will focus on retail trends, consumer nutrition trends, health needs and personal care. Designed to give retail management and decisionmakers information on this growing trend, the program will tackle topics such as merchandising best practices, educating consumers, in-store nutrition guides and merchandising for health conditions.
“This unique partnership with Progressive Grocer allows us to offer retail buyers first-time access to content-rich education and trend analysis. The goal is to give buyers a resource to identify and anticipate the key trends and growth opportunities shaping this market,” said Liz Plizga, show director for All Things Organic, Expo Comida Latina and All Asia Food.
In an effort to offer additional product depth for attendees, show producers have also added a specialty food pavilion to the show floor.
Bring on the Lipstick!
Posted - November 6, 2008
Economic crises prompt up-turn in small, feel-good luxuries
Smart cosmetics firms stand to benefit from the world’s current economic troubles. While female shoppers may be pinching the pursestrings on big-ticket items, many in the industry agree that more money is spent on small luxuries like lipstick during recessions.
Feeling down? Spend a bit to brighten your lips and look your best.
Mr. Leonard Lauder of cosmetics giant Estee Lauder told Magazin, the magazine offshoot of German newspaper Süddeutsche Zeitung, that the “Lipstick Index” rose after the now-infamous date of Sept. 11, 2001. The article in the October issue of Magazin says Lauder’s US lipstick sales doubled that year!
With more conscientious consumers seeking organic options, lipsticks that are healthy for the lips, the land, and the looks are a choice more ladies looking for a little luxury may make. Organic Monitor estimated in May that organic and worldwide natural cosmetics sales would reach $7 billion by the end of 2008 – fully $1 billion more than last year’s total. Forward-thinking Germany, meanwhile, saw that category reach 5% of the total German cosmetic market in 2007, a portion valued at 613 million EUR.
Amongst the many events confirming the continued success of this industry, Vivaness stands out as one that brings the whole world of natural cosmetics together. The annual event has been held since 2006 and is co-located with BioFach Nuremberg.
With Europe’s leading certification agencies for cosmetics developing a harmonised standard for natural cosmetics, to be available later in 2008, it could be time for consumers to step up to the plate and try more of the organic beauty products that are now available to them when they really want that little treat.
Sources:
http://sz-magazin.sueddeutsche.de/texte/anzeigen/26877
http://www.biofach.de/de/press/ars12/ars25/?arspageid=25.pm.4682
Fast and Organic?
Posted - November 1, 2008
Trends: organic, fast, fresh food
By Adriana Michael - as printed in O.W.N. Fall 2008
Recently, the available selection of organic products has grown explosively. US domestic sales of organic food and beverages are estimated to reach $23.6 billion in 2008, up from roughly $20 billion in 2007 and just $1 billion in 1990, according to the Organic Trade Association.
Yet eating only organic food can still be challenging enough while at home. Vacations, business trips or simple errands make it almost impossible – even many dedicated organics consumers have buckled and eaten a fast-food hamburger.
Happily, more restaurant franchises are opening that specifically target customers who want nutritious, organic food at speeds similar to those of the fastest greasy junk providers.
Take O’Naturals, a chain co-founded by Gary Hirshberg, chairman and CEO of US Stonyfield Farm. His firm entered organic fast food early, when it opened its first location in 2001. Its eateries aim to offer delicious, healthy organic food fast, while serving as a visible and supportive local community member. This chain now has six outlets.
Pizza Fusion, based in Florida, began to offer organic pizzas in 2006. It franchised last year and has seven stores. According to Entrepreneur Magazine, it has sold 65 franchises and is planning to have 100 outlets open and 300 franchises sold by 2010.
US-based EVOS, meanwhile, has five locations, with two more to open soon. The chain grew out of the desire to produce health-conscious fast food. The firm uses an air-baking method for fries and other foods that greasy spoons typically deep-fry. This keeps fat content up to 70% less than in typical fast food.
Canada has also seen the beginnings of organic fast food. Ozone Organics opened its first location in London, Ontario in 2007. Co-owners Scott Kay, Walt Spivak, and Ron Delanghe were tired of the “tofu and bean sprouts” stereotype of organics. They believed providing fast food favorites such as burgers, hot-dogs and french-fries would increase the market for organics as a choice when eating out. In Spain, eaters can choose FastGood, a successful chain that has introduced gourmet ingredients to traditional fast-food menus.
Consumers in Hamburg, Germany may go to Nat, the first in a planned restaurant chain. It features burger patties of organic beef and lamb and many other dishes. The menu changes quarterly, allowing Nat to emphasize seasonal regional ingredients. All ingredients are certified organic and management buys Fair Trade where possible.
In Berlin, Germany’s “green city,” residents enjoy eating at Gorilla. Instead of better burgers, its owners opted for an all-vegetarian, 100% organic fast-food operation. Starting as a tiny snack bar in 2006, the firm now has five locations and a catering service.
“We cater to health-conscious business people who have little time and want to enjoy a balanced meal in a nice restaurant atmosphere,” says founder Matthias Rischau.
In spite of the success of the Slow Food movement, healthy fast food is definitely a growing trend in the organic market. Even in Colombia, where organics are barely starting to take off domestically, a new organic and natural restaurant has opened in Bogota. Located near several office buildings and set inside a magnificent house designed in Zen style, SUNA offers foods from native natural and organic ingredients to busy businesspeople.
Putting together the logistics – finding a supply chain to include mainstream, organic and natural product distributors, local and direct suppliers who offer a consistent supply, and the many other aspects needed for a good restaurant business plan – is a challenge. The menu has to include some feature dishes all year round, while adding regional and seasonal ingredients for greater sustainability. The paperwork to preserve traceability from farm to table is tremendous, for restaurants that want to be organic certified.
In spite of the higher prices organic foods imply, there is definitely a growing consumer segment to support fresh organic food served fast. With the many benefits of natural, organic, regional and local food catching on all over, soon there won’t be any reason to have to accept food you know isn’t good for you.
Amish and Organic
Posted - November 1, 2008
Amish Naturals: Sharing the grain
By Adrian Larose - as printed in O.W.N. Fall 2008
Many would agree most people do not connect with nature these days. We’re separated by walls of technology, away from nature’s rhythm. Yet, you needn’t visit the rainforest to get back in touch. The North American Amish have lived this way since the 18th century.
To say the Amish live in harmony with nature is an understatement. Eschewing modern conveniences like electricity and motor vehicles, the peaceful farming communities are strong in many places across the United States, as well as some parts of Canada.
The Amish’s traditionally organic, hardworking and quality-focused nature leads them to do differently than most. Amish furniture enjoys a quality reputation, and most recently has this extended to another area: food.
This reputation is due mostly to firms such as Amish Naturals. The company brings all-natural and organic products to market while supporting traditional Amish communities.
Amish Naturals began with pasta. Later additions include granola bars, a wheat-derived fibre supplement and microwave popcorn. Some products are organic; others are all-natural; all are kosher. The firm retails through 3,600 US based stores, with Canada and Europe in the works.
Its pasta facility in Holmes County, Ohio is largely operated by Amish. All staff believe firmly in Amish farming traditions.
“Almost 80% of the company’s workforce is Amish or Mennonite, a related denomination with many of the same core values,” says COO and Executive Vice-President Troy Treangen. The company recipes are similar to long-used Amish ones. “We’ve just taken that same process, same ingredients, and made it on a mass scale that they still operate. If you walk in our facility, you’ll see Old Order Amish guys and gals,” says Treangen.
The Amish lifestyle extends to helping others, no matter their faith. When a Holmes County Amish community helped non-Amish neighbour David Skinner recover from severe flood damage, he in turn decided to help them. Feeling there might be a market for the all-natural food the Amish enjoy, he created Amish Naturals and now works as its CEO.
“The Amish take a lot of pride in their work, whether it’s farming, making quilts, or furniture,” says Treangen. “They have the values that bring good quality food to the table. That’s what we’re really about, the wholesomeness.”
Those values have resulted in the firm’s wheat-derived fibre additive, for which Amish Naturals has filed a US patent. “It doesn’t alter taste at all,” says Treangen. “The additive is already in Amish Naturals’ high-fibre products. Other manufacturers could easily replace some flour with this additive.”
Not everything has been smooth sailing. Many Amish prefer to withdraw from the world. This can cause problems with organic certification.
“The Amish are organic farmers by definition,” says Treangen. “Organic is the old, natural farming method. Yet the Amish cultural desire to stay disconnected from the broader world, for independence, security and religious unity, can hamper organic certification.”
It is difficult for some to accept a direct relationship with authorities. Others have nonetheless taken the plunge and are fully certified, including the firm’s egg supplier.
Perhaps combining new and old is the real story. “What we’re doing is taking an ethnic brand, an ethnic culture, an ethnic product, and bringing it to national exposure,” Treangen said. “You do have to apply certain levels of technology to do that.”
The Amish, meanwhile, grow quality crops under organic methods and contribute labour to a company that brings their culture and food to a wider audience.
“We want to be the largest Amish employer in Holmes County,” Treangen said. With 40 employees after only 18 months, Amish Naturals seems to be well on its way.
Organic Growth in Thailand
Posted - November 1, 2008
Thailand’s Organic Sector Ready for a New Level
By Lucia Lorente - as printed in O.W.N. Fall 2008
After almost two decades producing rice and other crops under organic farming methods, Thailand has earned an international reputation for high-quality ingredients. Already the world’s largest exporter of organic rice, the country’s organic sector is ready for new challenges.
Success seems inevitable, if past accomplishments are anything to go by. Thailand’s organic producers are committed to innovation, notably in the areas of crop fertility and pest control. Expansion has followed, with a growing number of farms converting to organic production. The sector enjoys government support and officially recognized organic farming practices and certification. Strong networks and alliances both in Thailand and worldwide provide a way to share best practices.
The Thai Organic Trade Association (TOTA) and the Earth Net Foundation - Green Net are coordinating these renewed efforts. The Earth Net Foundation - Green Net is a non-governmental organization in Thailand that promotes organic farming and helps farmers sell their crops in the domestic market and abroad. Michael Commons of Green Net says Thailand shows strength in different areas of its organic sector.
“Farmers in some regions of the country are getting equivalent or better rice yields than conventional producers, even secondary yields,” says Commons. “In particular, the Khao Kwan and Hak Muang Nan Foundations and their associated farmer networks have developed a strong capacity in rice seed selection, breeding, improving and developing new varieties that perform well under organic farming methods.”
Conventional rice prices have more than doubled in both domestic and international markets. Chemical fertilizers have also risen in price. This situation may help stimulate conversion to organic methods.
“More and more firms are interested in organic farming,” says Commons. “We even receive groups from other Asian countries looking for training in organic production, certification, processing, and marketing, areas where Thailand already has a strong existing capacity.”
With respect to certification Thailand has ACT, its own IFOAM credited certification body, able to certify operators for all of the major market standards.
The Thai government has increased support for organic agriculture over the last five years, with funding for initiatives at regional and international levels.
The Thai Organic Trade Association (TOTA) was established in 2005. The organization’s mandate is to increase export capacity and exposure in the domestic and international market.
“Under one umbrella, it is much easier to channel attention from the government, market our products, develop further alliances with local and foreign organizations and achieve common goals,” says Wanlop Pichpongsa, president of TOTA and member of the STC-group, the first Thai company to export organic rice to Europe.
Under the TOTA banner, Thai companies have presented their products at Biofach Germany for the past three years, and made strong connections during their trade missions to Expo West in Anaheim and All Things Organic in Chicago. This year they will have a pavilion at Biofach Japan.
Thailand has positioned itself as a reliable supplier of tasty foods, fresh and frozen ingredients and ready-to-eat meals. A number of companies (not organic certified - yet) are successfully exporting all natural ready-to eat frozen meals, mainly to the United States. The challenges now are to increase organic production and consumption in Thailand and to diversify lines to export more products with added value, that are totally organic.
“We know how to produce good food and how to export it to meet the requirements of the international market, but we still do not have all ingredients to export a complete organic meal, say a Thai curry,” says Pichpongsa.
Besides rice, Thai exports include vegetables, coconut meal tapioca, sugar, Thai sauces and chilli peppers. The latest introductions include organic certified shrimp and a line of natural soaps and body care.
