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Table of Contents July/August 2011 • Volume 14, No. 6
34 The Nutraceutical Beverage Market: Thirsting for New Ideas New ideas have all but dried up for beverages, but the ‘natural’ trend may provide the point of differentiation brands need for future growth.
Cover design by: Jessica Carlin
44
44 The Global Herbs & Botanicals Market
Herbs and botanicals will continue to grow in popularity and sales, as long as consumers continue the trend of self-care.
54
54 Formulation Trends in
Functional Foods & Beverages The functional food and beverage sector is benefiting from an endless array of ingredient options.
Columns 26 • Word From Wall Street by Adam Ismail
30 • From the Corners of the World by Paul Altaffer & Grant Washington-Smith
28 • Healthcare Practitioner Corner by Erik Goldman 4 • Nutraceuticals World
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Departments 8 • Top Of The News • Packaged Facts reveals insights; On-trend products defying economic downturn 10 • Editorial • a word from the editor 12 • Nutraceuticals World In Print & Online • line-up of expanded coverage @ nutraceuticalsworld.com 14 • Industry News • Omega 3 foods & beverages to hit $7 billion; EU claims list won’t come before 2012 60 • Nutraceuticals Research • a recap of the latest clinical trials 62 • Supply Source • profiles on Connoils and The Wright Group 64 • New Products • recent nutraceutical product introductions 68 • Suppliers Corner • new developments from industry suppliers 71 • People In The News • who’s who and who’s moving where 72 • Calendar • upcoming industry events 72 • Classified Section • classified advertising section 73 • Advertisers Index • cross reference of advertisers in this issue 74 • The Nutraceuticals Multiverse • a quirky look at nutraceuticals in a parallel universe NUTRACEUTICALS WORLD’S circulation is audited by BPA International. Authorization to photocopy items in NUTRACEUTICALS WORLD for internal or personal use, or internal or personal use of specific clients, is granted by Rodman Publishing, provided a base fee of U.S. $1 per page is paid directly to: Copyright Clearance Center, 27 Salem St., Salem, MA 01970 USA. NUTRACEUTICALS WORLD (ISSN 1531 0671) is published 10 times a year (Jan/Feb; March; April; May; June; July/August; September; October; November, December), in addition to a Company Capabilities supplement and Beauty I&O supplement, by Rodman Publishing Corporation, 70 Hilltop Road, Ramsey, NJ 07446 USA. Phone: 201-825-2552. Fax: 201-825-0553. Periodical postage paid at Ramsey, NJ 07446 and additional mailing offices. Publications Mail Agreement No: 40028970: Return Undeliverable Canadian Addresses to Circulation Dept. or PO Box 1051, Fort Erie, ON L2A 6C7;
[email protected]. POSTMASTER: Send address changes to NUTRACEUTICALS WORLD, 70 Hilltop Road, Ramsey, NJ 07446 USA. Printed in USA. Free subscriptions to NUTRACEUTICALS WORLD are available to qualified individuals. Others are as follows: U.S. one year subscription $95.00, Mexico/Canada one year subscription $120.00 (5% GST required on Canadian orders. GST #134451756). Foreign Airmail one year subscription $195.00. Back issues available: $12/issue. Payment must be made in U.S. dollars via U.S. bank or by Visa or Mastercard. The publisher reserves the right to determine qualification of free subscriptions. Missing Issues: Claims for missing issues must be made within three months of the date of the issue. Also publishers of HOUSEHOLD AND PERSONAL PRODUCTS INDUSTRY (HAPPI), BEAUTY PACKAGING, NONWOVENS INDUSTRY, INK WORLD, LABEL & NARROW WEB INDUSTRY, COATINGS WORLD, CONTRACT PHARMA, MEDICAL PRODUCT OUTSOURCING AND ORTHOPEDIC DESIGN & TECHNOLOGY. Printed in the U.S.A.
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“…2011 will serve as a jump-start for the market as sales ultimately increase by a dramatic 45% by the end of the year…the market will grow by 103% between 2010 and 2015.” —Packaged Facts, predicting growth of natural and organic foods
On-Trend Products Defying Economic Downturn
According to Netherlands-based Innova Market Insights, new food products with an ethical or premium positioning are on the rise despite the difficult economic situation. New data show that consumers, while pinching pennies elsewhere, are readily snatching up value-added products positioned on ethical platforms. As a percentage of total U.S. launches, new food products with an ethical positioning grew from more than 3% in 2008 to 6% of introductions tracked in the first quarter of 2011. This paradigm shift comes as the wellness category is blurring to encompass new areas not typically considered as health and nutrition, such as “minimally processed,”“locally sourced” and “sustainable” and appealing to a more “responsible”American consumer increasingly concerned about the environment and sustainability. The U.S. market accounted for 25% of all new global products tracked with a “FairTrade” positioning (Apr 10-Mar 11), with an explosion in launch activity in the past two years. Innova Market Insights reported a doubling in tracked U.S. launches with the typically higher-priced “FairTrade” positioning from 2008 to 2010, the worst years of the current economic collapse. “Consumers believe that products manufactured with more respect toward animal or human welfare and the environment are worth the extra charge,” said Lu Ann Williams, head of research at Innova Market Insights. “This, in turn, led to a surge in third-party certification from organizations such as FairTrade, Rainforest Alliance Certified and the Marine Stewardship Council.” “Manufacturers must meet the demands of third party certifiers in order to capitalize on this growing trend and boost their brand image,” Ms. Williams added. This means creating minimally processed foods, with an eye on agricultural practices and sustainable ingredient sourcing. Also flying in the face of the soft economy is the “premium” trend. An Innova Market Insights scan of new launches found that 14% of new products tracked during the first quarter of 2011 had a premium positioning, compared to 10.5% in 2010 and up from more than 8% in 2008 when the economic crisis began. These statistics indicate consumers are willing to indulge, even—or perhaps especially—in times of financial woe. “Recent product launch activity reveals that U.S. manufacturers are not giving up on premium products, despite the uncertain recovery,” Ms. Williams explained. “Instead, they are aiming to meet the demand for added-value encompassing better quality and offering consumers a momentary escape in stressful times.” She concludes that this trend will pressure stagnant brands to innovate.
Packaged Facts Reveals Food, Beverage & Snack Insights
Far outpacing growth in conventional groceries, U.S. retail sales of natural and organic foods and beverages rose to nearly $39 billion in 2010, an increase of 9% over the previous year, and 63% higher than sales five years earlier, according to “Natural and Organic Foods and Beverages in
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the U.S., 3rd Edition” by market research publisher Packaged Facts. The next several years are forecast to experience even greater growth. Packaged Facts projects 2011 will serve as a jump-start for the market as sales ultimately increase by a dramatic 45% by the end of the year. Overall projections are that the market will grow by 103% between 2010 and 2015, with total annual sales exceeding $78 billion in 2015. Helping to fuel growth are recent moves by major marketers and manufacturers seeking to capitalize on consumer demand for these products. At the beginning of 2011, Frito-Lay North America, the $13 billion snack food division of PepsiCo, announced that by the end of the year, approximately half of its product portfolio would be made with all-natural ingredients. The change will affect three of Frito-Lay’s biggest brands: Lay’s potato chips, Tostitos tortilla chips and SunChips multigrain snacks. “The Frito-Lay products will in themselves have an enormous impact on the natural foods marketplace, and Frito-Lay’s move will spur other manufacturers to invest more heavily in producing natural and organic products,” said David Sprinkle, research director and publisher of Packaged Facts. “Since Frito-Lay’s announcement, Kraft Foods and Coca-Cola have made strategic moves to better position themselves in the market.” A February 2011 Packaged Facts consumer survey found that 38% of the U.S. adults who are grocery shoppers buy organic groceries, and 58% buy packaged food products marketed as “all-natural” (but not organic). Furthermore, the Packaged Facts survey found that 37% of all respondents “strongly” (12%) or “somewhat” (25%) agree that they seek out natural and organic foods and beverages. In other developments, Packaged Facts has released a new report on snack foods. Despite the lingering effects of the global recession, American consumers are snacking more than ever, thanks to less frequent restaurant dining, frenzied lifestyles that encourage on-the-go eating, a growing tendency to replace meals with several smaller snacks, and marketer efforts to combat the obesity epidemic by developing healthier snack foods that still taste appealing. In “Snack Foods in the U.S., 4th Edition,” Packaged Facts reports that U.S. retail sales of packaged snacks reached $64 billion in 2010, up from $56 billion in 2006, for a compound annual growth rate (CAGR) of 3%. Health continues to be a strong motivator for food and beverage purchases among U.S. consumers, and Packaged Facts forecasts that it will remain so for the foreseeable future. As consumers seek ways to achieve a healthier lifestyle, snack foods that are marketed as “better for you” will remain popular. “Companies are realizing they must highlight attributes such as vitamins, minerals, fiber content and lower sodium to both educate consumers and take advantage of demand for such products,” Packaged Facts explained. July/August 2011
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From The Editor
It’s Only Natural… It’s true; becoming a mom changes you. For one, I care more about what I put on my shelves, in my refrigerator and on my family’s dinner table. I constantly find myself looking at labels to make sure I can pronounce and understand the ingredients in the products I buy. I’m looking for“simple”products, because somehow—at least in my mind—that means my life will be simpler too. This is why I am fully hooked on the “natural” trend and actively seek out these products in the marketplace. I’m the type of consumer who can’t make the full commitment to organic (or shopping at“Whole Paycheck,”i.e, Whole Foods), but I can find a way to make most of my purchases“natural”—even if the definition of natural means different things to different brands. Let’s face it: the term natural is more accessible, more mainstream. And, most“natural”labeled products are cheaper compared to organic fare. A February 2011 Packaged Facts consumer survey found that 38% of U.S. grocery shoppers buy organic groceries, and 58% buy packaged food products marketed as “all-natural” (but not organic). Furthermore, the Packaged Facts survey found that 37% of all respondents “strongly” (12%) or “somewhat” (25%) agree that they seek out natural and organic foods and beverages. This is why the trend toward natural will be such a monstrous driver in many product segments—from beverages to food to cleaning products to pet food—during the next several years. For foods and beverages in particular, 2011 will be a pivotal year, according to Packaged Facts, which predicted natural and organic offerings would grow 45% this year, and 103% between now and 2015. The biggest changes will come from the major food and beverage giants overhauling their product portfolios to meet this rapidly growing consumer demand, a trend that has already proliferated big time in the mainstream market.“At the beginning of 2011, Frito-Lay North America, the $13 billion snack food division of PepsiCo, announced that by the end of the year, approximately half of its product portfolio would be made with all-natural ingredients,” Packaged Facts said in its latest report. “The change will affect three of Frito-Lay’s biggest brands: Lay’s potato chips, Tostitos tortilla chips and SunChips multigrain snacks.” “The Frito-Lay products will in themselves have an enormous impact on the natural foods marketplace, and Frito-Lay’s move will spur other manufacturers to invest more heavily in producing natural and organic products,”said David Sprinkle, research director and publisher of Packaged Facts.“Since Frito-Lay’s announcement, Kraft Foods and Coca-Cola have made strategic moves to better position themselves in the market.” In an interview for this issue’s nutraceutical beverage article (page 34), Mintel beverage analyst Garima Goel Lal brought up an interesting point about the convergence of natural and functional. She believes “functional” foods and beverages in the future won’t resonate with consumers unless they’re natural first. She said consumers are interested in these products because they care about their health, so what’s the point of purchasing a functional food or beverage if it isn’t natural? But do I always practice what I preach? No. And I know I am not alone. There are millions of families—just like mine—who strive to “do the right thing” most of the time, even if it means slipping here and there to buy the Cheetos loaded with Yellow No. 6 and other artificial ingredients. You gotta live a little.
Editor: Rebecca Wright (
[email protected]) Associate Editor: Sean Moloughney (
[email protected]) Online Editor: Joanna Cosgrove (
[email protected]) Vice President/Editorial Director: Tom Branna (
[email protected]) Art & Technical Manager: Michael Del Purgatorio (
[email protected]) Designer: Jessica Carlin (
[email protected]) President: Rodman J. Zilenziger, Jr. (
[email protected]) Executive Vice President/Publisher: Matthew Montgomery (
[email protected]) Associate Publisher: Stephen E. Lipscomb (
[email protected]) Advertising: Dayle Verrengia (
[email protected]) Production Manager: Pat Hilla (
[email protected]) Circulation Manager: Joe DiMaulo (
[email protected]) Online Director: Paul Simansky (
[email protected]) 70 Hilltop Road, Ramsey, NJ 07446 USA Tel: 201-825-2552; Fax: 201-825-0553 E-mail:
[email protected] Website: www.nutraceuticalsworld.com Subscription Information: To renew/subscribe/update subscription information, please visit www.nutraceuticalsworld.com and click on “subscription services” or contact
[email protected]; 201-825-2552 x356
Columnists Anthony Almada MSc GENr8, Inc.
Paul Altaffer RFI Ingredients, Inc.
Paula Brown British Columbia Institute of Technology
Jeff Crowther The Natural Products Association (NPA), China
Erik Goldman Holistic Primary Care
Joerg Gruenwald analyze & realize AG
Todd Harrison Venable LLP
Adam Ismail Global Organization for EPA & DHA (GOED)
Doug Kalman Miami Research Associates
Dr. A. Elizabeth Sloan Sloan Trends, Inc.
Grant Washington-Smith Alticor, Inc.
Editorial Advisory Board Steve Allen Nutrition Capital Network
Nancy Childs, PhD Saint Joseph’s University
Steven Dentali, PhD American Herbal Products Association (AHPA)
Loren Israelsen United Natural Products Alliance (UNPA)
Alex Merolli Nutri+Food Business Consultants
Paul Paslaski BioVittoria Limited
Ellen Schutt LaunchNatural
Scott Steinford ZMC USA
Gregory Stephens, RD (Business Insights Columnist) Windrose Partners
Rhonda Witwer National Starch Food Innovation
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Stay connected with
nutraceuticalsworld.com
The New NutraceuticalsWorld.com Nutraceuticals World launched a redesigned website last year, featuring expanded content, enhanced navigational tools and additional resources that streamline access to our comprehensive archive of market information.
Knowledge Center In an effort to help you access more than 10,000 articles from the past 12 years of Nutraceuticals World’s coverage, we have created a “Knowledge Center,” which contains a growing base of information designed to offer you the most relevant news and articles associated with specific categories in the nutraceuticals industry. We have divided the Knowledge Center into two sub-categories—Nutraceuticals Markets and Health Conditions, which are divided further into nearly 50 unique sections, such as Antioxidants, Baby Boomers, Cardiovascular Health, Immune Function and Sports Nutrition.
TrendSense Industry expert Liz Sloan is flexing her marketing muscles, offering analysis on different segments each month using Sloan Trends’TrendSense models. You can find her analysis, complete with downloadable TrendSense Data Charts, under the “Research” tab of our website.
Top Online Stories @ nutraceuticalsworld.com Soy Story Soy has had a wild ride during the past decade, and it’s not over.
NIH Launches New Web Resource for Alternative Medicine NCCAM’s new alternative medicine portal seeks to inform and assist healthcare providers.
Calcium in the Crosshairs New study controversially contradicts popular opinions on a widely trusted supplement.
‘Naturally Filtered’ Blog Each month associate editor Sean Moloughney will offer his thoughts on emerging trends. Look for his blog under the “Opinions” tab of our website.
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Omega 3 Foods & Beverages to Hit $7 Billion by 2015 Novel production technologies are allowing for the addition of omega 3 fatty
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“Omega 3 oils are in high demand and the attention is fueling growth in the still maturing industry.” —Packaged Facts
acids to an expanding number of foods and beverages, imparting the assortment of scientifically backed health benefits to consumers without the unpleasant fishy
CRN Comments on U.S./EU Trade Barriers Association calls for reasonable import standards that aren’t overly restrictive. The Council for Responsible Nutrition (CRN), Washington, D.C., recently submitted comments to the International Trade Administration (ITA) concerning regulatory cooperation between the U.S. and the European Union (EU) that could help eliminate or reduce unnecessary divergences in standards that impede U.S. exports. In written comments, John Hathcock, PhD, senior vice president, Scientific & International Affairs, CRN, acknowledged that CRN members continue to encounter significant regulatory barriers to trade of dietary supplement products or ingredients, but pulled up short of calling for harmonization of standards. “CRN does not expect, nor necessarily desire, the U.S. Government, and the International Trade Administration (ITA) in particular, to take actions to eliminate differences in the relevant regulations between the U.S. and EU. Instead, CRN requests that the U.S. Government take action to reduce or eliminate non-tariff barriers to trade in these products. In these efforts, it should be recognized that standards do not necessarily need to be ‘harmonized’ but, instead, the EU and its member states should only impose import standards that are no more restrictive than necessary to achieve legitimate goals (in this case, to protect public health).” Dr. Hathcock went on to request that ITA assure products manufactured in the U.S. are not excluded from EU markets in violation of World Trade Organization (WTO) agreements. CRN highlighted two areas of particular concern to its members: health claims on labels of dietary supplement products (known as food supplements in Europe), and maximum amounts of vitamins and minerals allowed in these products. “CRN members are concerned that the advisory opinions provided to the European Commission (EC) by the European Food Safety Authority (EFSA), if implemented in a legally binding manner by the EC or any of the EU member states, could create unjustified technical barriers to the import of U.S.-made dietary supplement products into the EU,” CRN said. “While the texts of the EU Health Claims Regulation, itself, does not appear to violate the WTO agreements as such, it is the expected application of the EFSA
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odor or taste. As essential fatty acids support cardiovascular, reproductive, immune and nervous system health, omega 3 oils are in high demand and the atten-
opinions that we anticipate will violate the EU’s obligations of Articles 2.2 and 5.1.2 of the WTO Technical Barriers to Trade (TBT) Agreement by imposing requirements more restrictive than needed to protect the public health.” According to CRN, the Terms of Reference (TOR) for addressing potential health claims instructs EFSA to take into account the totality of evidence and to determine if CRN members cona cause-and-effect relationship between a tinue to encounter significant regulatory food or ingredient and a health effect has barriers to trade of dibeen established. “During its implementaetary supplement prodtion of these instructions, EFSA has rouucts and ingredients. tinely denied the existence of a causal relationship unless demonstrated in randomized, controlled clinical trials (RCTs). In effect, EFSA is not genuinely considering the totality of scientific evidence, and thus not adhering to the instructions in the TOR. [Therefore], if the EC implements regulations congruent with the EFSA opinions it will be imposing requirements more restrictive than necessary to adequately perform the legitimate objectives of protecting and informing the public.” As for the maximum amounts of vitamins and minerals in dietary supplement products, the European Food Supplements Directive (Directive 2002/46) provides a basis for a risk assessment. However, the EC has not released maximum values in draft or final form, allowing individual EU member states to continue their previous regulatory policies, “most of which are excessively restrictive by setting maximums based on Population Reference Intakes (called Recommended Dietary Allowances or RDAs in the U.S.),” CRN noted. “Such policies effectively keep higher potency U.S.made products out of most of the European market.” “If and when the EC releases draft or final maximums based on risk assessment as demanded by the Food Supplement Directive, CRN will comment to U.S. Government authorities and provide our evaluation of whether these values represent arbitrarily restrictive risk assessment and are more restrictive than necessary to protect the health of consumers. If such excessive restriction is present and is implemented in a legally binding manner, it would represent a violation of the WTO agreements,” CRN said.
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tion is fueling growth in the still maturing industry, according to “Omega-3 Foods and Beverages in the U.S., 3rd Edition” by market research publisher Packaged Facts. The report estimates U.S. retail sales of food and beverage products with a “high omega 3” or “high DHA” claim— predominantly meaning omega-enhanced products—grew 11% and approached $4 billion in 2010. Packaged Facts predicts the U.S. omega 3 ingredient market will grow 40% between 20102015, as U.S. retail sales of “high omega 3” or “high DHA” foods and beverages (excluding fish) approach $7 billion by the end of the forecast period.
Negative EU Claims List Won’t Come Before Summer 2012 The threat of an EU-wide ban on the use of article 13.1 claims on the European
Commission’s negative register is not expected before next summer, according to international food policy consultancy EAS. Stefanie Geiser, EAS regulatory affairs manager, said as the European Commission has indicated it intends to present its proposal for an article 13.1 “Union list” of claims to the Standing Committee for discussion and potential adoption only by the end of 2011, it was unlikely that any ban on rejected claims would come into force before spring or summer 2012. The European Commission is awaiting the final batches of article 13.1 claims opinions from the European Food Safety Authority (EFSA), expected in September, before it can finalize its proposal for the Union list. EFSA has completed 80% of its article 13.1 claims assessments for all substances excluding botanicals, with around 600 claims still to be assessed.
EFSA issued a set of 442 article 13.1 claims opinions in April, of which Ms. Geiser said only 22% were positive, with nearly one third of those having already been assessed before. Food companies will need to develop new approaches to communication and marketing if EU authorities adopt EFSA opinions as they stand, she added.
FDA Grants Qualified Health Claim in Infant Nutrition Florham Park, NJ-based Gerber Products Company, a part of the Nestlé family, has received notice from FDA that Gerber Good Start milk-based formulas meet the criteria for a qualified health claim related to a reduced risk of atopic dermatitis. The official language from the FDA is as follows: “For healthy infants who are not exclusively breastfed and who have a family history of allergy, feeding a 100% whey
DSM Opens Nutrition Innovation Center in New Jersey
In addition, sensory analysis facilities enable DSM to optimize production processes, improve product quality, test new ingredients and analyze and evaluate a wide range of products. New facility will accelerate customers’ speed to market. Highly experienced specialists will work in close collaboration with DSM’s customers to offer applications expertise, Designed to foster inspiration and creativity, DSM has unveiled product development assistance and scale-up bench top fora new state-of-the-art Nutrition Innovation Center in Parsipmulation. This will facilitate the creation of breakthrough applipany, NJ, which allows for broad access across specialties, cation concepts and prototypes, bringing consumer-relevant housing an array of capabilities under one roof. nutritional solutions to market quickly. Decades of experience in nutritional “Our new nutrition center is truly a and specialty ingredient solutions are ‘one-stop-shop’ for innovation,” said Rick available on demand, helping manufacturGreubel, president, Human Nutrition & ers of food, beverage, dietary supplement Health, DSM Nutritional Products. “It will and personal care products find a comenable customers to stay ahead in a petitive advantage faster than ever before. highly competitive, constantly changing “Our goal is to help customers get to health and nutrition marketplace—whatmarket faster with appealing solutions ever their target application.” that work,” said Jean-Claude Tritsch, diThe center is the latest addition to rector, Global Technical Marketing, DSM’s global community of six netDSM calls its new nutrition center a Human Nutrition & Health, DSM Nutriworked application laboratories. Housing ‘one-stop-shop’ for innovation. tional Products. The new center allows more than 100 application specialists and DSM to tailor those solutions for custechnical marketing experts, these facilitomers, converting the latest scientific ties provide customers with convenient, and clinical findings into dietary supplement and functional personalized support wherever they are in the world. food concepts that contain effective nutritional ingredients. “The scope of this site really is unrivalled anywhere in the From ROPUFA omega 3-fortified ice cream, to chocolate inworld,” said Hans-Christian Ambjerg, president, DSM Food fused with resvida resveratrol and Teavigo green tea, to a Specialties. “From this one location, DSM’s vast scientific strawberry milk with Fabuless appetite controller, DSM’s capaknowledge will help manufacturers achieve faster product debilities are clearly on display in the new innovation center, which velopment, enhanced operational and cost efficiencies and, ulhouses a cutting-edge laboratory and fully equipped pilot plant. timately, increased profits.”
July/August 2011
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protein partially hydrolyzed infant formula from birth up to 4 months of age instead of a formula containing intact cow’s milk proteins may reduce the risk of developing atopic dermatitis throughout
the first year of life. FDA has concluded that the relationship between 100% whey protein partially hydrolyzed infant formulas and the reduced risk of atopic dermatitis is uncertain, because there is little
Staying Ahead of the Curve: Childhood Obesity By Dr. A. Elizabeth Sloan Childhood obesity is one of the fastest growing, most elusive and virtually untapped health and nutrition opportunities in recent history. And it’s getting political too. First Lady Michelle Obama’s “Let’s Move” campaign, new USDA Center-of-the Plate recommendations, state programs (e.g., “First 5 California”) and global initiatives (e.g., “International Obesity Task Force Secretariat”) are all aimed at better managing children’s weight. Then there’s proposed junk food taxes, menu labeling, new school lunch guidelines and vending bans too. But the reality is: weight is simply not a major “Mom concern.” In fact, overweight /obesity for their own children ranked 21st among mothers’ concerns—behind environmental allergies, alertness, asthma, lack of exercise and ear problems, according to HealthFocus. Only 21% of moms are “extremely/very concerned” about overweight/obesity. Moreover, the number of moms “very satisfied” with the healthfulness of their child’s diet
scientific evidence for the relationship. Partially hydrolyzed formulas should not be fed to infants who are allergic to milk or to infants with existing milk allergy symptoms. If you suspect your baby is al-
reached a new high—37% in 2010 vs. 25% in 2004, reports the “2010 Gallup Study of Children’s Eating Behaviors.” Calories are also not a top concern for moms. Gallup reports that almost as many moms (14%) made a “strong effort” to increase their child’s calorie intake as those who are trying to cut back (17%). The importance of “low calorie” when buying food for their kids fell from the 14th most important factor in 2004 to 17th (HealthFocus). In addition, parents don’t like to think that their child is overweight, creating a lack of purchase motivation. Only 11% of moms admitted to HealthFocus that their child was overweight. Lastly, while two-thirds of households with kids practice some form of healthy eating strategy, calorie-conscious behaviors—with the exception of eating more low-fat dairy and cutting back on sugary foods—are not among their regular behaviors (FMI, “Shopping for Health Report”). Market Potential According to Sloan Trend’s TrendSense Model, childhood obesity reached “Mega Market” status in 2010. For comparison, protein, high blood pressure and stroke are also “Mega” TrendSense markets. Moreover, with Medical Counts tripling during the past decade, the marketability of products aimed at childhood obesity shows no sign of slowing down. However, this market is not one in the same with calories and kids. According to TrendSense, up to this point calories have played a minor role in this explosive segment. At the present time, the market for calories/children is a trendy, fad-like Level 1 Mass Market opportunity, being seemingly inflated by media, health professional and political attention to the childhood obesity issue
* Although there are many factors that go into determining consumer trends, measuring how medical/nutrition activity levels have risen over the past decade, as well as some of the key milestones that have occurred and how these issues have been understood and embraced by the public are essential in predicting the sustainability of the Consumer trend line.
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ready allergic to milk, or if your baby is on a special formula for the treatment of allergy, your baby’s care and feeding choices should be under a doctor’s supervision.”
Schiff Nutrition Acquires Probiotic Brands for $40 Million Salt Lake City, UT-based Schiff Nutrition International, through its subsidiary Schiff
during the past few years, rather than by truly concerned parents. At this point, calories/children has just begun to cross over the Medical Threshold, which signals a long-term sustainable trend. Medical Counts are also extremely low and are unable to support a strong market opportunity for calories/kids at this time. Growth Potential • 32% of U.S. kids are overweight—10% of infants and 1 in 7 preschoolers (NCHS/CDC). By 2015, one-third of American kids will be obese. • In 2008, the American Academy of Pediatrics mandated that pediatricians counsel their patients on weight for the first time in history. As a result, parents’ attention to weight control will likely increase. • America is in the midst of the largest baby boom in its history; Hispanic births outpace the general population 4:1. With an already high incidence of overweight and obesity among minority children—27% of Mexican-American kids ages 2 to 5 are overweight, 26% Black and 21% White—the weight control market will accelerate across all racial communities. • In the U.S., only four new foods/drinks were introduced in 2010 with weight control claims aimed at kids ages 5 to 12; 40 new low calorie foods/drinks came onto the market, down from 60 in 2009 (Innova Market Insights). • Globally, 22 million children under age 5 are overweight (WHO). Mexico, the U.S., Canada, Spain, Portugal and the U.K. have the highest incidences of childhood obesity.
Nutrition Group, has purchased certain assets and assumed certain liabilities of Ganeden Biotech, Inc., Cleveland, OH, for $40 million in cash. Schiff now owns the worldwide exclusive rights to use the lead-
demonstrating that people who regularly eat these products are more likely to be at, or closer to, their ideal weight. This is a very simple and effective weight control solution for kids. Dietary Supplements While parents have increased the use of supplements for their children dramatically during the past two years, the children’s weight loss market is not a pill market. Bars, beverages and meal replacements remain the most likely solutions. However, they need to be tailored to the caloric and nutrient needs of children, not adults.
References furnished upon request. About the author: Dr. A. Elizabeth Sloan is president of Sloan Trends, Inc., Escondido, CA, which is a consulting firm that offers trend-tracking and predictions, strategic counsel and business-building ideas for food, supplement and pharmaceutical marketers. Each month she will provide analysis and discuss opportunities of a particular market being covered in a given issue.
SLOAN TRENDS’ TRENDSENSE is a 15-year-old trend tracking system, which identifies and quantifies trends as well as predicts the optimal timing, sustainability and life-cycle stage of ingredients, terms, product opportunities and related market issues. The model displays medical and consumer “activity levels” based on a comprehensive analysis of five critical sources of information—
Functional Foods Although lower calorie kid’s foods will likely have more appeal in a few years, foods/beverages positioned for healthier eating, lower-fat, lower-sugar, high protein and satiety are currently stronger weight management platforms for kids products. Gallup reports that 36% of moms are making a strong effort to limit sugar, 33% HFCS (high fructose corn syrup) and trans fats, and 30% low/no calorie sweeteners vs. 17% calories. Six in 10 households with kids regularly opt for whole grain and low fat dairy as part of their healthy eating strategy per FMI. Moreover, marketers who tout their seemingly low calorie content may face a negative response as consumers often perceive calorie levels to be lower than they actually are (e.g., juices). Low calorie, however, has very high appeal in the kids’ snack segment; 32% of parents want more low-calorie snacks; 37% low fat. Six in 10 parents want kids snacks with more nutrients. Lastly, one of the most overlooked opportunities involves promoting the plethora of well executed, massive studies carried out by the dairy, soup and ready-to-eat cereal industries
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consumer, trade and competitive, legal and regulatory and media coverage. The resulting charts give insight into the market’s changing health issues and concerns, the ingredients that are up-and-coming and those that have just about run their course, as well as what health claims, marketing messages and products will bring your company the most success. • Emerging Phase = Trends begin to appear on the radar screen. Companies should begin to collect literature and market details for those that exhibit continual growth and that might be of interest. • Popularization Phase = Medical/Nutrition crossover to consumer media and marketplace; opportunity for niche or specialty markets. Marketers/manufacturers should begin a detailed evaluation of the supporting marketing and scientific data and determine if this term/trend offers a good strategic fit and is appropriate to pursue. Appropriate product development procedures should be undertaken. • Commercialization Phase = Mass-market ready. Mainstream consumers have a significant degree of familiarity with the term/trend and there is opportunity for competitive advantage by getting out ahead of the competition or by providing a unique and highly innovative product positioning for success.
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ing probiotic technology GanedenBC30 (Bacillus coagulans GBI-30, 6086) in the over-the-counter and dietary supplement space and the leading brands Sustenex and Digestive Advantage under which BC30 is currently sold. Ganeden and Schiff also intend to collaborate on extending the use of probiotic technologies into new areas of human health. GanedenBC30 has more than 95 U.S. and foreign patents and patent applications. The assets and brands acquired from Ganeden generated net revenue of approximately $17 million for the year ended December 31, 2010. (For more details on this deal, see this issue’s Word from Wall Street column, which starts on page 26.)
Nestlé Health Science Acquires Prometheus Labs Prometheus Laboratories Inc., a specialty
pharmaceutical and diagnostic company based in San Diego, CA, has been acquired by Switzerland-based Nestlé Health Science S.A., a wholly-owned subsidiary of Nestlé S.A. With the goal of pioneering science-based nutritional solutions in order to deliver improved personalized healthcare for medical conditions, Nestlé Health Science became operational in January 2011. In the long term, the company aims to use nutritional solutions to change the healthcare paradigm and deliver affordable and effective health benefits, which are also safe and sustainable. Prometheus’ capabilities strongly support Nestlé Health Science’s ambitions. “This is a strategic move into gastrointestinal diagnostics,” said Luis Cantarell, Nestlé Health Science president and CEO. “Prometheus’s leading edge diagnostics
Most Consumers Take Vitamins or Supplements Nearly half began their regimen based on the recommendation of an expert. A recent survey conducted on behalf of the Vitamin Shoppe, Inc., North Bergen, NJ, found that 60% of U.S. adults currently take a vitamin or supplement. For this survey, carried out by Wakefield Research, 1000 U.S. adults were asked a series of questions intended to shed light on America’s vitamin and supplement habits. Of those who take vitamins, more than 70% of respondents said they feel more confident about their health when they are taking a vitamin. Multivitamins are the Figure 1 most popular supplement, with 75% of respondents reportedly taking the supplement regularly. Other top supplements taken by those who consume vitamins were: vitamin D (52%), vitamin C (49%), calcium (45%), B vitamins (43%), fish oil (42%) and iron (25%). (See Figure 1.) “It’s very difficult to eat the recommended daily servings of fresh fruits and vegetables to satisfy our bod-
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technology and outstanding sales force will help us to develop an integrated approach to personalized healthcare. It is fully consistent with our vision of pioneering science-based nutritional solutions to deliver improved personalized healthcare for medical conditions.” (For more in-depth analysis on this acquisition, visit our website: http://www.nutraceuticalsworld.com/contents/view/39868)
BASF Sees Growing Demand for Vitamin D & Natural Colors As vitamin D sales reach record levels, manufacturers of dietary supplements, foods and beverages are looking for opportunities to differentiate their products in the crowded marketplace. “Demand has never been greater for vitamin D3 with a long shelf-life at room tempera-
ies’ nutrient needs,” Figure 2 said Sharon Richter, a registered dietician based in New York City. “A great way to fill in the nutritional gaps is with a vitamin and supplement regimen—it’s simple and fits seamlessly into today’s fastpaced lifestyle.” Starting on a vitamin regimen was not an impulse decision for many Americans. Nearly half (46%) began taking a vitamin based on the recommendation of an expert, one-third (34%) wanted to improve their health generally, and one in 10 (9%) wanted to feel better about themselves. (See Figure 2.) Interestingly, The Vitamin Shoppe survey found only 38% of moms and dads take a daily vitamin, compared to 56% of nonparents. Even fewer parents pass on this habit to their children. Only 34% of kids get a daily vitamin. For those who do not take supplements, 43% feel they do not need vitamins with a balanced diet, 22% think they would never remember to take them, and 9% feel vitamins are too expensive. As for gender differences, 65% of women count taking a vitamin as one of the things they do to stay healthy, compared to just more than half of men (55%). When it comes to exercise, 70% of men hit the gym for 30 minutes or more each week, compared to 65% of women.
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ture and excellent stability in the final application,” said Santiago Vega, product manager, Human Nutrition, BASF Cor-
poration, Florham Park, NJ. “Our customers are experiencing double-digit vitamin D sales increases, escalating their
Multivitamin Quality Varies Widely Price doesn’t equate to quality, according to recent review. Laboratory test results of 60 multivitamins from ConsumerLab.com, White Plains, NY, have shown the contents of the bottle don’t always match the claims on the label. “Consumers should know that multivitamins vary widely in quality,” said Tod Cooperman, MD, president of ConsumerLab.com. “Fortunately, you don’t have to spend a lot to get a good multivitamin.” ConsumerLab.com’s latest report on multivitamins sold in the U.S. and Canada (including three products for pets) found eight multivitamins contained less of an ingredient than claimed, two contained more than claimed, one multivitamin intended for pets was contaminated with lead, tablets of another multivitamin failed to properly disintegrate, and three supplements listed ingredients in ways that did not comply with FDA requirements. Dr. Cooperman also noted that many products contained levels of vitamins or minerals that exceed daily tolerable upper intake levels, potentially increasing the risk of side effects. Surprisingly, there was almost no connection between price and quality. Many inexpensive multivitamins (ranging in price from 3 to 14 cents per day) passed every test. At the same time, several relatively expensive products—some costing more than 50 cents or even more than $1 a day—failed the review. Multivitamins are the most popular supplements in the U.S., accounting for sales of $4.8 billion in 2009, according to Nutrition Business Journal, Boulder, CO. ConsumerLab.com tested multivitamins for key nutrients, lead contamination and proper labeling. Tablets were also checked to make sure they would break apart properly when consumed. Among pet supplements tested, one product that costs 8 cents per day was approved. Two pet supplements failed. One was contaminated with 7.45 mcg of lead per tablet. This product has been tested by ConsumerLab.com in two previous reviews and the amount of lead has increased over the years. The other pet product contained 32% less vitamin A than the label claimed. Dr. Cooperman said consumers should take stock of their personal nutritional needs before considering a multivitamin. Using the report as a guide, they can find real value without any hidden surprises. “You can easily save $100 a year and possibly avoid problems,” he said. In addition to the new multivitamin report, ConsumerLab.com provides a free listing of the latest recommendations for vitamin and mineral intake. John Gay, executive director and CEO of the Natural Products Association (NPA), Washington, D.C., responded to the review. “ConsumerLab.com is a company whose business model has long raised questions about its results. The bottom line is that the supplement industry has a strong record of quality, one that is bol-
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needs for quality ingredients that meet the highest safety standards and regulatory requirements worldwide.”
stered by extensive regulatory and self-regulatory efforts.” With implementation of Good Manufacturing Practices (GMP) for companies of all sizes, manufacturing operations and quality measures are required to ensure that what is listed on the label is what is in Multivitamins are the most popular the product, he added. supplements in the U.S., generating “Is it any wonder that half of sales of $4.8 billion in 2009. all Americans trust dietary supplements and use them as part of a healthy lifestyle? While consumers should check with their doctor before taking any supplements, they should rest assured that dietary supplements are both safe and fully regulated as a unique category of food under the Dietary Supplement Health and Education Act.” In a separate test of 11 red yeast rice supplements, ConsumerLab.com found significant differences in levels of cholesterol-lowering statin compounds. Statin levels fell dramatically among brands previously tested in 2008 and a potentially toxic contaminant, citrinin, was found in four of the products. Red yeast rice naturally contains the cholesterol-lowering statin compound lovastatin, the active ingredient in prescription Mevacor. Labels on red yeast rice products, however, generally do not disclose lovastatin content due to concern that the supplement will be considered an unapproved drug by FDA and removed from the market. This makes it difficult for consumers and doctors to assess and compare red yeast rice supplements, although they remain widely used and can be effective. In addition to lovastatin, red yeast rice contains a variety of related compounds, which may act synergistically to lower LDL cholesterol. Side effects may also be diminished compared to pharmaceutical statins. Among 11 products in the report, amounts of lovastatin compounds ranged from 0 mg to 3.5 mg per 600 mg of red yeast rice. The average amount was 1.48 mg per 600 mg. Products shown to work clinically have contained 1.63 mg to 5.7 mg of lovastatin compounds per 600 mg of red yeast rice. Based on the suggested serving sizes of the recently tested products, ConsumerLab.com found that only four would deliver a daily dose of lovastatins in the range used in clinical studies. Several products tested were among those previously reviewed by ConsumerLab.com in 2008 (and subsequently published in a peer-reviewed article in Archives of Internal Medicine in 2010). ConsumerLab.com discovered the amounts of lovastatin compounds in these products to be 29% to 88% lower than in the same ones purchased in 2008, although the labeled amount of red yeast rice (600 mg) remained the same. The declines suggest that different and chemically weaker red yeast rice raw materials are now being used.
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According to Euromonitor, U.S. sales of single-entity vitamin D supplements (not including multivitamins) rose 22% from 2009 to 2010. And just last year, an Institute of Medicine (IOM) panel increased the Recommended Daily Intake (RDI) for vitamin D to 600 international units (IU) for individuals age one to 70 and to 800 IU for adults older than 70. BASF has also witnessed growing demand for its expanded range of carotenoid colorants in foods and beverages. For years, manufacturers have relied on FD+C certified colors as safe, inexpensive, stable and easily applied ways to create bright and appealing foods and beverages. However, recent events in the U.S. and Europe have generated some negative attention for certified colors. For example, the FDA Food Color Advisory Panel hearings held in March resulted in widespread media coverage. While a U.S. warning label on food dyes was ruled out, the panel voted that certain children may be susceptible to them, and further research is necessary. These events are causing a shift in public perception. According to a recent survey, 44% of consumers said they avoid food colors/dyes. Instead of waiting for more scientific findings and regulatory action, major food manufacturers are taking the initiative now. More than 90% of drink developers say they will be using at least some natural flavors/colors this year.
$13 Million Provexis Acquisition Targets Sports Nutrition U.K.-based Provexis plc has entered into a conditional agreement to purchase the entire issued share capital of SiS (Science in Sport) Limited, which manufactures and sells sports nutrition products, for a total consideration of £8 million. SiS produces sports nutrition products for consumers and professional and elite athletes, including Olympic athletes, professional cyclists and triathletes. For the financial year ended December 31, 2010, SiS had unaudited turnover of £4.6 million. The directors of the company believe Provexis can use its management and technical capabilities to support growth in the SiS business in the areas of product development, scientific and regulatory expertise and expertise in the sports nutrition sector.
U.S. Herb Sales Grew More Than 3% in 2010 Sales of herbal dietary supplements in the U.S. increased 3.3% in 2010, reaching more than July/August 2011
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$5.2 billion, according to conclusions of a new report published in the current issue of HerbalGram, the non-profit American Botanical Council’s (ABC) quarterly journal. The HerbalGram report is based on herb supplement sales statistics from market research organizations Nutrition Business Journal (NBJ), SPINS and SymphonyIRI. NBJ estimated the total herb supplement sales figure for 2010 based on data derived from company surveys, interviews with major retailers and industry experts, and various published and unpublished secondary material. NBJ estimated that sales in the mainstream market channel (e.g., drugstores, grocery stores, etc.) experienced steady growth, increasing 6.6% in 2010 over 2009 sales to a total estimated $936 million. Sales in the natural and health foods channel grew by about 2% in 2010 to nearly $1.7 billion. “Despite the general economic turndown, consumers continue to demonstrate their interest in and demand for natural ways to improve their health,” said Mark Blumenthal, HerbalGram editor. “These 2010 sales increases for herbal supple-
ments tracks with strong demand in 2009, where the sales increased 4.8% over the previous year, even during the depths of the recession.”(For more details on the state of the global herbs and botanicals market, see our annual update on page 44.)
Companies Sweetening on Potential for Agave While agave is probably best known as the plant from which tequila is made, interest continues to rise for its use as a sweetener in the form of agave nectar, or agave syrup, according to Innova Market Insights, The Netherlands. Agave only made up about 3% of the sugar and sweetener launches recorded globally on the Innova Database in the 12 months to the end of March 2011, but there was a noticeable increase in interest in the U.S. market in particular, where the number of launches doubled over the same period, although from a relatively small base. In addition, Innova Market Insights recorded that agave was increasingly used as a sweetener ingredient in a wide range of product launches, including soft drinks, sauces, cereals and confectionery.
U.K. Report Argues Fish Oil Offers Little Benefit A new report from the U.K.’s National Health Service (NHS) claims nearly all dietary supplements, including fish oil, are a waste of money and offer consumers little value. The Global Organization for EPA and DHA Omega-3 (GOED), Salt Lake City, UT, said the report contained a three-page review of fish oil supplements that concluded there was no compelling evidence on the use of fish oil for either children or adults, even though it noted that EPA and DHA were important nutrients. GOED considers many of the conclusions related to fish oils to be inaccurate and misleading, particularly those related to cardiovascular disease. The authors relied on the conclusions of a 2002 Cochrane review, which found there was no significant evidence of a reduction in cardiovascular events or mortality with EPA and DHA intake from any source. However, the evidence considered in that review is now more than 10 years old and the available body of scientific literature has since doubled. Notably, the main conclusion of the Cochrane review indicated there was not enough evi-
MyPlate Replaces Food Pyramid
So it’s tough to be a nutritionist, too. But we do have time to take a look at our kids’ plates. As long as they’re half full of The U.S. government has ditched its food pyramid for a fruits and vegetables, and paired with lean proteins, whole more relatable image of a plate, in an effort to communicate grains and low-fat dairy, we’re golden. That’s how easy it is.” nutritional information to consumers simply and effectively. ChooseMyPlate.gov provides practical information to individuals, health professionals, nutrition educators and the food industry MyPlate was designed to help consumers to help consumers build healthier diets with make healthier food choices, according to resources and tools for dietary assessment, First Lady Michelle Obama, Agriculture nutrition education and other user-friendly nuSecretary Tom Vilsack and Surgeon Gentrition information. Over the next several eral Regina Benjamin, who unveiled the years, USDA will work with Ms. Obama’s federal government’s new food icon in Let’sMove! initiative and public and private June. MyPlate emphasizes the fruit, vegpartners to promote MyPlate and ChooseMyetable, grains, protein and dairy food Plate.gov as well as the supporting nutrition groups, urging Americans to fill half their messages and “how-to” resources. plate with fruit and vegetables. “What we have learned over the years is “This is a quick, simple reminder for all that consumers are bombarded by so many of us to be more mindful of the foods that nutrition messages that it makes it difficult The MyPlate icon instructs consumers to fill to focus on changes that are necessary to we’re eating and as a mom, I can already half their plate with fruits and vegetables. tell how much this is going to help parents improve their diet,” said Secretary Vilsack. across the country,” Ms. Obama said. “This new campaign calendar will help unify “When mom or dad comes home from a long day of work, the public and private sectors to coordinate efforts and highwe’re already asked to be a chef, a referee, a cleaning crew. light one desired change for consumers at a time.”
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dence to suggest people should stop consuming rich sources of EPA and DHA. In addition, the NHS report incorrectly emphasized that only people suffering from heart attacks should obtain EPA and DHA from 2-4 servings of fish per week, when in fact this is the guidance provided by multiple scientific groups for a healthy population, GOED noted. The report also concluded that evidence is still developing in other areas like cognitive function and dementia. It highlighted the inconsistency of studies in child development, and that all of the major studies had concluded more studies were needed to determine the effect of these supplements. However, the authors extended this to say: “School children do not need to take fish oil supplements.”
Magnesium Deficiency Reduces Effectiveness of Vitamin D The effectiveness and benefits of vitamin D
July/August 2011
are greatly undermined in the absence of adequate levels of magnesium in the body, according to Dr. Carolyn Dean, MD, ND, magnesium expert and medical director of the non-profit Nutritional Magnesium Association. Magnesium acts with and is essential to the activity of vitamin D, and yet most Americans do not get their recommended daily allowance (RDA) of this important mineral. Extensive research has shown that vitamin D deficiencies play a major role in the development of dozens of diseases, including breast cancer, prostate cancer and colon cancer, as well as diabetes, heart disease, arthritis, osteoporosis, psoriasis and mental illness.
Gluten-Free Label Introduced Responding to consumer and industry demand, Quality Assurance International (QAI), San Diego, CA, and the non-profit National Foundation for Celiac Awareness (NFCA) have developed a new sciencebased, gluten-free certification program.
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This new triple-verified label brings transparency and trust to people who need gluten-free foods as part of maintaining their healthy diet. The program uses feedback from consumers, manufacturers and retailers and includes product review, onsite inspection, testing to ensure compliance to 10 ppm or less and ongoing compliance (including random product testing). Widespread cross-contamination of source ingredients means that even manufacturers who singularly produce gluten-free products must incorporate adequate testing and verification protocols into their operating procedures. The stringent nature of the QAI certification protocols ensures prevention of contamination and co-mingling, critically important for those with allergies to gluten and gluten-intolerance. “The profound growth in the marketplace has necessitated a stronger emphasis on food safety for the 17 million families looking for gluten-free foods,” said Alice Bast, NFCA founder and president.
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Study Shows Benefits of Higher EPA/ DHA Intake A new meta-analysis published in the British Journal of Nutrition (BJN) demonstrates that 250 mg of EPA and DHA per day is merely a minimum requirement for reducing the risk of some coronary heart diseases, and that further benefits are derived from higher doses. The meta-analysis revealed that by increasing intakes of EPA and DHA over 250 mg, the risk of sudden cardiac death in a healthy population was reduced a further 35% and the risk of non-fatal coronary events a further 16%. The Global Organization for EPA and DHA Omega-3 (GOED), Salt Lake City, UT, and a group of GOED members sponsored the study, which resulted from the group’s work to establish a heart health claim in the European Union (EU). GOED hopes the implications of this paper will be far-reaching as more health claims and intake recommendations are established around the world.
Atrium Innovations to Research Metabolic Syndrome Focused on metabolic syndrome, Atrium Innovations Inc., Quebec City, Quebec, Canada, has committed to a multi-year nutrition research program. This global effort will be conducted in collaboration with a strategic partner, the Institute of Nutraceuticals and Functional Foods (INAF). The total current funding for related projects planned and in progress is more than $5 million, and includes partial support from governmental agencies. Atrium’s research involves gaining a better understanding of metabolic syndrome and investigating the impact of nutrition on the prevention and treatment of silent inflammation associated with this condition. More specifically, research will emphasize the health benefits of small fruits, the anti-inflammatory mechanisms of specific fish oil fractions in the prevention of cardiovascular disease, probiotics and systemic enzyme therapy in the management of inflammation and health promotion.
Domino Sugar Enters Stevia Market Domino Foods, Inc., Iselin, NJ, has entered a collaborative agreement with WILD Fla24 • Nutraceuticals World
vors GmbH, Germany, and China-based Sunwin International to offer all-natural sweetener products, such as cane sugar, rice, malt and stevia, in addition to sweetening systems that can include both natural and artificial sweeteners plus sophisticated flavor modifiers. Domino Sugar and its affiliates produce and market sugar and other sweetener products through technical, engineering and manufacturing knowledge. WILD has aligned itself as a strategic stakeholder with Sunwin to allow for the consistent supply of Sunwin Stevia, world-class quality and production capabilities that allow for the utilization of specific taste modification technologies in the creation of high-purity products.
Pronova BioPharma to Begin Mixed Dyslipidemia Trials Following pre-clinical results for its PRC4016, a new chemical entity for the treatment of mixed dyslipidemia, Norway-based Pronova BioPharma is preparing to initiate clinical trials. PRC-4016 is a structurally enhanced omega 3 fatty acid with potent triglyceride and cholesterol-lowering effects. The prevalence of dyslipidemia across the seven major pharmaceutical markets is estimated at approximately 270 million people with diagnosis rates of approximately 35-40%. Pronova BioPharma is preparing to submit a CTA (Clinical Trial Application) for PRC-4016 in Europe, with the first patients expected to be dosed in September 2011. The Phase I trial will involve 80-120 subjects and be conducted in the U.K. PRC-4016 will be tested in single and multiple escalating doses. Phase II studies are expected to begin in 2012.
GNC & Shadow Beverages to Develop RTD Product Line Looking to serve a broader, more diverse audience of active consumers, GNC Holdings, Inc., Pittsburgh, PA, has entered an exclusive licensing agreement with Shadow Beverages and Snacks, LLC, Tempe, AZ, the producer and distributor of Ironclad Energy + Hydration and No Fear Energy drinks. Under the terms of the agreement, Shadow Beverages and Snacks will produce a line of ready-to-drink (RTD) products that will be marketed under the www.nutraceuticalsworld.com
GNC brand. Shadow Beverages will develop, produce, market and sell drinks under the GNC Live Well trademark for sale across a wide range of retail outlets. It is anticipated that the first products developed under the agreement will go into distribution in the third quarter of 2011. (For more news and analysis on this and other beverage developments, see page 34.)
RFI Ingredients Opens European Office RFI Ingredients LLC, Blauvelt, NY, has opened a sales office in the U.K. Headed by Andrew Wainwright, RFI Europe will be based in Staffordshire, U.K. and will target European markets. Mr. Wainwright has held senior management positions in the food ingredients industry for many years. His most recent role was as Divisional CEO for Natraceutical, the Spanish owned global natural ingredients business. “We are eager to bring our 23 years of experience in natural formulas and ingredients to the European market,” said Jeff Wuagneux, RFI’s CEO.“We are looking forward to introducing the RFI platform in Europe where our offerings are a great fit with health conscious consumers.”
LGC Launches Health Sciences Business U.K.-based LGC has launched a new Health Sciences business unit, which combines the group’s sport, food, consumer safety and pharmaceutical testing activities within a single new entity. Health Sciences offers supplement customers in-house testing services, which include banned substances (prohibited by World Anti-Doping Agency), nutritional biomarkers, nutritional analysis and contaminants and residues.
Mérieux NutriSciences Acquires Provident Clinical Research Expanding its capabilities in North America, France-based Mérieux NutriSciences Corporation has acquired Provident Clinical Research & Consulting, Inc, Chicago, IL. Provident provides clinical research and consulting services to the food and biopharmaceutical industries and specializes in designing and conducting clinical nutrition trials aimed at managing risk factors July/August 2011
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associated with metabolic and cardiovascular diseases. Provident will be integrated into Mérieux NutriSciences’ Biofortis Business Unit.
EnWave Signs Agreements with Milne & Kellogg Vancouver, British Columbia, Canada-based EnWave Corporation has signed a commercial license agreement with Milne Fruit Products Inc., Prosser, WA, to supply Radiant Energy Vacuum (REV) technology for the dehydration of a variety of specified fruit products. The agreement includes a provision for royalty payments on nutraDried fruit products produced using EnWave’s technology. EnWave’s dehydration technologies for food include nutraREV, MIVAP and quantaREV, with each employing a combination of vacuum and microwave energy to deliver a high-speed, low-temperature food dehydration process. The technologies can be used to dry a wide variety of fruit, vegetables, herbs, meats and seafood in order to maintain high levels of nutrition, flavor, color and texture. In other news, EnWave has signed a research and development agreement with Kellogg Company, Battle Creek, MI, to measure the nutritional and commercial benefits of EnWave’s nutraREV food dehydration technology within a broadly defined product area that includes cereal and cereal bars. The agreement provides an exclusive period of up to 12 months for Kellogg to test nutraREV with an option to license the technology at the end of this period. Further terms of the agreement were not disclosed.
Canadean Acquires Nutrafiles Health Ingredients Database U.K.-based Canadean has acquired the Nutrafiles health ingredients database, an analytical tool designed for research, marketing and new product development teams within the food, beverage and ingredient industries. Launched in 2009, the Nutrafiles database allows professionals to find and compare more than 1000 specific health ingredients. Unbiased and transparent information on each specific ingredient facilitates the users’ decision-making when designing new beverages, foods and supplements to benefit consumer health. July/August 2011
CK Nutritional Signs Distribution Agreements with ESM, Stratum Focused on innovative ingredients that are supported by compelling value propositions, CK Nutritional Ingredients has signed distribution agreements for Canada with Stratum Nutrition, St. Charles, MO, and ESM Technologies, Carthage, MO. CK Nutritional Ingredients will distribute Stratum’s novel fiber Artinia, and ESM’s patented NEM (Natural Eggshell Membrane) in Canada.
Joint Venture Focuses on Chewing Gum Creating a partnership with a primary focus on patented nutraceutical chewing gum, Denmark-based Gumlink, has acquired a 50% stake in Tab Labs Inc., Langley, British Columbia, Canada, through a recent joint venture agreement. Tab Labs has recently shifted a great deal of focus toward the increasingly attractive functional and nutraceutical market for chewing gum. Tab Labs has especially focused on upgrading its facilities to accommodate sensitive active ingredients, such as probiotics. Gumlink will be reinforcing the joint venture by contributing its nutraceutical chewing gum capabilities, and the accumulated know-how in its R&D facilities located in Denmark.
AIDP Acquires Distribution Rights to Magnesium Ingredient Los Angeles, CA-based AIDP, Inc. has secured the exclusive distribution rights to Magtein, a magnesium-based functional ingredient designed to improve memory, focus and overall cognitive health. With a myriad of potential applications for Magtein, AIDP is currently supplying the ingredient to dietary supplement and functional product manufacturers nationwide.
Biovelop Signs Distribution Agreements Sweden-based Biovelop AB has signed distribution agreements for its PromOat betaglucan soluble fiber ingredient covering 13 countries, including Belarus, Belgium, Canada, Finland, Iran, Luxembourg, Malaysia, The Netherlands, Russia, Singapore, South Africa, Taiwan and Ukraine. “The level of excitement and interest in Prowww.nutraceuticalsworld.com
mOat from distributors in such a diverse range of countries reflects both PromOat’s versatility as an ingredient and also its truly global appeal to food, beverage and supplements manufacturers,”said David Peters, director of sales and marketing for Biovelop.
Napa Nutritionals Debuts with Science-Backed Supplements Napa Nutritionals, LLC, Napa, CA, a new dietary supplement company with a mission to offer finished products containing handpicked science backed ingredients, has opened its doors for business. Inaugural products include two versions of the vitamin C ingredient Fast-C from Scientific Food Solutions, LLC: FAST-C 500 mg VeganCaps capsules and FAST-C 500 mg tablets.
Ecuadorian Rainforest VP to Discuss Herb Trends on Radio Show Scheduled to discuss Peruvian herbs and current marketing trends, Steve Siegel, vice president of Ecuadorian Rainforest, LLC, Belleville, NJ, will be a guest on “The Urban Herbalist”radio show, 1110 AM in the Hudson Valley, NY, and WTBQ.com on Sunday, July 24 at 12 p.m. Marguerite Dunne, host of the show, and Mr. Siegel will be discussing the ethnobotany history of herbs from Peru as well as some of the current marketing trends in product formulations.
Stepan Acquires Lipid Nutrition Product Lines Stepan Company, Maywood, NJ, has acquired the Clarinol, Marinol and PinnoThin product lines from Netherlands-based Lipid Nutrition B.V., formerly a part of IOI Loders Croklaan Group. The acquired product lines will be integrated into Stepan’s Food and Health Specialties business, which will be renamed Stepan Lipid Nutrition. The acquired products combined with Stepan’s NEOBEE Medium Chain Triglycerides provides a patented portfolio of nutritional oils with a greater offering to customers in the global food, supplement, nutrition and pharmaceutical industries. Stepan’s Maywood, NJ, site will continue to operate the central management of the business with a new Stepan Lipid Nutrition office located near Amsterdam. Nutraceuticals World • 25
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Word From Wall Street
There is a wave of economic pessimism dominating financial markets today, coupled with a raging debate about whether or not we are about to enter a double-dip recession. The last time we were in this situation, toward the end of 2007 and beginning of 2008, the merger and acquisition (M&A) markets froze up and deals were abandoned. In the nutrition space today,
Staying Positive The Schiff-Ganeden acquisition proves that good deals can be made in a bad economy.
By Adam Ismail
Adam Ismail is the executive director of the Global Organization for EPA and DHA Omega-3s (GOED), Salt Lake City, UT. He previously worked in business development, mergers and acquisitions, and business strategy at Cargill Health & Food Technologies, Health Strategy Consulting and Health Business Partners. He can be reached at
[email protected]. 26 • Nutraceuticals World
however, some key strategic deals are still being completed. The Schiff-Ganeden Deal While the nutrition industry may not buck the trend of the broader economy, at least as M&A deals are concerned, a recent deal from Schiff Nutrition International is a good reason to be optimistic about the near future. On June 3, Schiff announced it was acquiring the Sustenex and Digestive Advantage brands of supplements from Ganeden Biotech. Along with the two existing brands, Schiff also received exclusive worldwide rights to the use of Ganeden’s BC-30 strain of probiotics in dietary supplements. The two brands generated $17 million in sales during 2010, but Schiff paid $40 million in the acquisition. While it may sound like a steep valuation, there are plenty of strategic reasons this deal may pay off. In fact, Schiff said it expects the acquisition to be accretive to its earnings nearly immediately. One of the fastest growing trends in the supplement industry is the use of standalone brands, separate and distinct from a company’s leading brand. Compared to other industries, loyalty to umbrella brands in the supplement space is www.nutraceuticalsworld.com
relatively low, so broad-line supplement brands often end up competing on price in the mass market and even the natural foods channel. Standalone brands allow companies to create additional value by leveraging a company’s existing access to shelf space, with a more tailored marketing program that highlights the unique benefits of the product. Schiff has two extremely successful examples of success with this model in its portfolio—the Move Free joint health supplement and the MegaRed krill oil supplement. And brands like Sustenex and Digestive Advantage fit nicely into this model. In addition, the main product categories in the industry today that have achieved high penetration in all channels are multivitamins, omega 3s, glucosamine/chondroitin, probiotics and vitamin D. However, because these are primary categories, it seems like nearly every company in the industry is active in these categories. The challenge for companies competing with these products is to create some sort of lasting differentiation, which has always been an issue in the supplement space. Unique marketing and branding represent some of the ways companies are differentiating themselves. In examining its portfolio of brands, which is built on a platform of ingredients, probiotics represent a missing link for Schiff. So in addition to already knowing how to run a multi-brand portfolio, Schiff has added a complementary product to its lineup. There is more potential value for Schiff, though. Ganeden is primarily an ingredient manufacturer that has been successful in licensing its proprietary probiotic technologies into applications around the world. As such, the costs of managing two retail-branded supplement products is much more expensive for Ganeden than it would be for Schiff. This is because July/August 2011
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“For Ganeden, generating $17 million in sales from two brands is admirable, but Schiff will likely be able to take these brands to new levels.”
Schiff already has broad access to shelf space across the country, an existing marketing operation setup for supplements and a retail-oriented sales force. For Ganeden, generating $17 million in sales from two brands is admirable, but Schiff will likely be able to take these brands to new levels. Further, Ganeden sweetened the deal by adding the proprietary rights to its patent portfolio for the supplement industry. So as these brands grow, Schiff will have access to unique technologies that will serve as a platform for new product development, and that others will find difficult to replicate. In the end, Schiff paid $40 million for a $17 million line of products that has unique differentiation from strong branding, a complementary product line and strategy, potential for much greater market penetration, and ready-to-go technologies for new product development. All of these extra benefits made Schiff feel confident there was more strategic value and upside to this deal amid a potential downturn of the economy. And Schiff has said it has plans for future acquisitions, so similar deals in other categories will NW probably follow soon.
Stay Tuned! Want more financial news? Log on to nutraceuticalsworld.com and click on the “Opinions” section to read past “Word from Wall Street” columns.
July/August 2011
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Nutraceuticals World • 27
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Healthcare Practitioner Corner
An industry friend of mine, a high-level executive at one of the major practitioner channel nutraceutical companies, recently told me a disturbing story about a doctor he knows. This doctor, a primary care MD affiliated with several California hospitals, is committed to nutrition-based natural healthcare, and tends to go with lifestyle-based therapies, dietary changes and nutraceuti-
Getting Off The (Disease) Plantation Doctors are seeking real changes that will improve their patients’ lives and their own.
By Erik Goldman
Erik Goldman is the co-founder and editor of Holistic Primary Care-News for Health & Healing, a quarterly medical news publication reaching 80,000 primary care MDs, NDs and DOs, and covering the wide spectrum of natural healthcare. Before launching Holistic Primary Care in October 2000, he was the New York Bureau Chief for International Medical News Group, a well-established medical publishing company that produces clinical news publications for various medical specialties. He has been writing for medical audiences about clinical practice and socioeconomic trends in medicine for 20 years. He can be reached at 212-406-8957; Fax: 212-4068959; E-mail:
[email protected]; Website: www.holisticprimarycare.net. 28 • Nutraceuticals World
cals as first-choice approaches rather than pharmaceuticals and invasive procedures. Apparently, this physician got a call from an administrator at one of the area hospitals, who was concerned that the doctor was not following appropriate patient management guidelines because his admission rate—the number of patients he was sending into the hospital—was noticeably lower than other similar primary care doctors in the area. In short, the administrator was saying, “You’re not sending us the expected amount of patients, so you must be doing something wrong.” The doctor quickly stood up for himself and told the hospital that in fact he was doing something right: He was helping his patients restore health, prevent disease and avoid hospitalization. That’s what a good doctor should be doing, right? Apparently not. This story, unfortunately, is all too common. I’ve heard many similar tales. They reveal an ugly truth about American healthcare. The hospital systems—which are getting bigger and more consolidated by the minute—view people as units of commerce, sources of revenue. They view community-based physicians not as healwww.nutraceuticalsworld.com
ers, not as professionals dedicated to helping people get well, but as mediators of patient referrals, plain and simple. In recent years, the large hospital systems have been purchasing small physician practices at an unprecedented rate. Current estimates are that one in six primary care physicians are now full-out employees of hospital systems, or are working in practices fully owned by hospital systems. Why? Because dwindling insurance reimbursement coupled with rising overhead costs and insane paperwork hassles have made independent private and small group practice nearly impossible for many primary care doctors. Data from Holistic Primary Care’s recent survey of 2000 U.S. primary care doctors indicate that one in five is considering making a major change in his/her practice during the next two to three years. Of those considering change, 35% are considering selling their practices to a hospital network and/or seeking salaried positions in a hospital system. In the last few years, a cadre of consultants has emerged that specialize in helping doctors sellout to hospitals. In fact, there’s a sub-specialty within the legal profession that’s focused on medical practice valuation and execution of these transactions. Residency training programs in primary care are prepping the next generation of primary care doctors not for independent practice, as in the past, but for life on the Disease Plantation, where their primary job is not to think independently about how to help people get well, but rather to follow “evidencebased” protocols and guidelines, and make appropriate referrals based on statistical averages. As if that were the only option. It’s not, of course, but we’ll get to that in a minute. The appeal of selling off to a hospital is understandable: a doctor who does so is suddenly relieved of having to oversee two July/August 2011
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“Insurers and government-funded plans now have very strong motivation to either withhold more care than they already do, or start to get serious about prevention.” or three billing clerks, of having to manage a business. He’s got a more predictable income and fixed work hours. No more worry about“the business stuff;”he can just concentrate on medicine. He’s well-ensconced in a massive establishment that’s got his back…so long as he behaves appropriately, follows appropriate treatment guidelines and makes appropriate referrals. And the administrators and medical directors decide what’s “appropriate.” And then there’s the problem called “conflicting incentives.” Hospitals make money when patients get admitted, when they undergo procedures, when they need ancillary services. In short, hospital systems have big incentive to increase the number of referrals they get—hence their interest in buying physician practices. In principle, the payors (Medicare, Medicaid and private insurance plans) have incentive to keep people out of hospitals and reduce the number of procedures. In reality, though, the private insurers really haven’t had a whole lot of incentive to prevent conditions that require procedures and hospital admissions because they could always pass along the increased costs in the form of higher premiums. That’s starting to change, in part due to the Obama healthcare reform plan. Suddenly, it won’t be so easy for insurers to raise premiums. Employers will simply say, “Screw it; I’ll pay the extra taxes and my employees can get their insurance through the government.”
The insurance plans now have real incentive to cut their “medical spend.” And with all the deficit hawking in Washington these days, you can bet the Fed plans won’t be encouraging exuberant healthcare service utilization! That means insurers and government-funded plans now have very strong motivation to either withhold more care than they already do, or start to get serious about prevention. Caught in the middle of these fiercely conflicting incentives is Joe & Jane Doctor, who somehow have to deal with the hospitals telling them they’re doing wrong by under-referring, while insurers chide them for over-utilizing expensive services. If you are a health policy think-tank type, you might argue this is an elegant, dynamic tension that leads to the most appropriate utilization, fosters innovation and optimizes outcomes. If you’re a doctor in the trenches, you’ll probably say this is crazy-making nonsense that has nothing to do with what’s really good for patients. Now, the good news is doctors do have other options besides selling the practice or bailing out of medicine altogether. Our survey showed that for every doctor who contemplates selling his/her practice or seeking a salaried job, there’s one who’s considering a move to a non-insurance based practice model. We’re talking about direct-pay feefor-service and “membership” or so-called “concierge” practice models. Though direct-pay models certainly have their own challenges, they do eliminate
third party intermediaries in the practitioner-patient relationship, and all the data I’ve seen show marked improvements in health outcomes. Simply put, doctors who can spend more time, devote more attention, think for themselves and apply their best clinical judgment on behalf of their patients are better at helping people get better. Despite the continued depressed economy, growth of direct-pay medical practice is robust and holding steady. What do these trends mean for the nutraceuticals industry? Well, if I were running a practitioner channel company, I would be doing intensive market research and needs assessment at both ends of the spectrum—the direct-pay, private practice stalwarts and the formerly private, now hospital-owned physicians. Both have—or will have—strong incentive to do a better job of preventing chronic disease. The direct pay docs truly need to demonstrate their value to their patients who are paying out of pocket and expect results. And once the insurance plans start putting a hard squeeze on the hospitals, those physicians who’ve sold their practices to hospital networks may soon find themselves under strong pressure to minimize use of expensive services. In both settings—on or off the Disease Plantation—there could be tremendous opportunities for companies manufacturing products that can help people maintain real health or attenuate the chronic diseases now bankrupting our systems. NW
Want to learn more about the practitioner channel? Get the details! Holistic Primary Care’s new, “Primary Care Physicians & Holistic Medicine: Transition, Transformation, Opportunity— An Executive Report from Holistic Primary Care’s 2010 Physicians’ Survey,” is a comprehensive analysis of physician attitudes, practice patterns and personal experience with holistic nutrition-based medicine, nutraceuticals and natural products. It is the first survey of its kind to assess a large and representative sampling of conventionally trained MDs across the U.S. The report, complete with charts, graphs and a detailed analysis, is available for purchase at www.holisticprimarycare.net/survey or contact Erik Goldman at 212-406-8957 or
[email protected].
July/August 2011
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From the Corners of the World
In our October 2007 column we reviewed the Indian nutraceutical market. At that time we received several pointed comments suggesting that any review of India is not complete without at least a mention of its favorite obsession—cricket! It’s nearly four years later and we have been busy trying to understand the rules of the game. It has, however, become apparent that the com-
India: The Prowling Tiger India has moved center stage as an economy to watch and nutraceutical companies are ready to pounce.
By Paul Altaffer & Grant Washington-Smith
Paul Altaffer is on the product and business development team at RFI Ingredients, Blauvelt, NY, a manufacturer of innovative natural ingredients and custom formulations for the functional food and dietary supplement industries. He was previously the founder and president of Nat-Trop, an ingredient company now operated by RFI that develops and trades primarily in South American products. He can be reached at 510-3370300; E-mail:
[email protected]. Grant Washington-Smith has over 17 years of experience across a variety of businesses in the natural products industry. He previously worked in business development and brand management for Alticor Inc. Prior to arriving in the U.S., Grant was involved in marketing and business development throughout New Zealand, Australia and the Asia/Pacific region. His focus has been on the commercial development of the novel and the innovative. He can be reached at
[email protected]. 30 • Nutraceuticals World
plexity and passion for their national game is a metaphor for the country itself. While this column will be unable to sort through the details of cricket, we will attempt to review the opportunities sprouting in India and assess some of its risks. Meanwhile, congratulations to India, winners of the 2011 ICC Cricket World Cup! India’s Bustling Economy India continues its dominant place as one of the world’s key emerging economies. It is considered a BRIC member country—which is an acronym for Brazil, Russia, India and China. Of the four BRIC countries, India has the lowest per capita GDP and is just behind China in population. What is surprising, though, is that India is expected to surpass China in the next few years as the most populous country on the planet, while being roughly a third of the size. With the growth in overall population, there is also corresponding growth predicted for the affluent working middle class in India. According to data presented in June 2011 by Netherlands-based Innova Market Insights, India will continue to expand its working age population to more than 240 million over the next 20 years, unlike the other three BRIC countries, which will see a sharp decline during the same period. This www.nutraceuticalsworld.com
in turn will result in ever-increasing consumer demand and present a market opportunity for the international nutraceutical and functional food markets. An article published by Ernst and Young (India) in August 2010, pinned the Indian nutraceutical market at $1 billion, with an 18% CAGR. The report also noted the medium term opportunity to increase the market size to $4 billion as a result of the 148 million potential customers in the growing middle class. Another report from Frost & Sullivan suggests the Indian nutraceutical market is worth closer to $2 billion, with projected sales of $5 billion by the year 2015. Key Trends in India The key trends driving the market today remain focused around the treatment and mitigation of disease rather than prevention. Some of these trends include: • Regardless of the fact that India is a strong emerging economy, the concept of “health and wellness” is still a relatively minor issue. • India has a large diabetic population but demand for food intolerance products is low. • The Indian government has allowed “sugar-free”claims on products in response to a growing diabetic population. • Vitamins are the most common nutrients used in food fortification. Key Ingredients in India’s Nutraceutical Market: • Flavored powdered milk drinks fortified with vitamins and minerals. • Xylitol is popular in gum confectionery. India’s Market for Dairy Ingredients: • “Better for you” dominates the liquid milk category. • Fortification is popular in flavored powder, milk beverages. • Liquid milk scarcity drives demand for skimmed milk powder. • Liquid milk scarcity is also driving July/August 2011
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demand for soymilk. • Sour (fermented) milk drinks compete for shelf space with reduced fat flavored milk. India’s Market for Nutritional Fats and Oils: • The health and wellness trend has yet to catch on in the market for fats and oils. • Fortification presents a marketing strategy for functional lipids—contains vitamins A, D and E. • The “Natural” claim is important and olive oil generates interest with the Indian consumer. Olive oils are the most expensive, with premium positioning for specific blends. Emerging Opportunities According to Innova, the rise of a young and economically aspiring population will lead to a variety of potential new trends: • The median age of the population is at about 24 years. More than 100 million Indians fall in the 17-21 years “coming-of-age” category. This represents a significant opportunity to market to young, upwardly mobile, fairly well educated population. • Active Vegetarianism: 31% of Indians (356 million people) are vegetarians and 22% (253 million people) also do not eat eggs. Supplementing with protein will be an ever-increasing opportunity in India. Alternative sources of protein from soy, rice, hemp or chia, for example, all look prime for development and fit within the
lifestyles of many Indians. • The increase in wealth and propensity to emulate westernized diets will contribute greatly to increasing obesity rates and especially to the rate of diabetes. By 2030, it is expected India will have nearly 80 million people with diabetes. This represents an extraordinary opportunity for developing products targeted to this population. • Mass-market retailing is just now emerging in India. This phenomenon represents many opportunities for companies planning on building their brands in India. India’s Regulatory Environment Regulatory agencies in India do not encourage manufacturers to promote dietary supplements as natural products, but rather generally as drugs. It is very difficult, therefore, for manufacturers from the dietary supplement industry to compete with manufacturers within the (regulated) pharmaceutical market. Consequently, dietary supplement manufacturers must market their products within pharmaceutical industry regulations, under a drug or Ayurvedic manufacturing license. The two Acts governing the Indian nutraceutical industry are classified under the following: 1. Foods are covered under the Prevention of Food Adulteration Act (PFA). 2. Drugs are covered under both the Drug and Cosmetic Act, 1940 and the Drugs and Magic Remedies Act, 1955.
Classification of a product as either food or a drug is based on manufacturers’ marketing claims. When a product is marketed as a food, the advantage to the manufacturer is a less complicated process. However, some states still require product registration of these products as drugs. Under the PFA, functional foods are defined by Rule 32A as a “nutritional food,” which is: “Food claimed to be enriched with nutrients such as minerals, proteins or vitamins.” To be compliant with the act manufacturers must include the quantities of such added nutrients on the label. If, however, a product is to be marketed as a drug, the drug category includes the following: • Allopathic drugs • Traditional medicines (e.g., Ayurveda, Siddha, Unani-ASU and homeopathy) • And can include vitamins, minerals, herbs The advantage to a manufacturer under drug regulations is that if approved as a drug, appropriate disease claims are permitted. Like other drug/pharmaceutical regulations around the world, pre-market approval is a requirement. It is also important to note that no fortified/functional foods are allowed under the drug regulations; these are covered under the food act. Currently in India there is no good definition for dietary supplements. There have
Natural Health Products in India are manufactured within three distinct industries: “Pharma” includes pharmaceutical, medical and diagnostic manufacturers; these cover traditional medicines such as Ayurveda, Siddha, Unani and homeopathy—with estimated annual turnover of $6 billion and estimated annual growth rate of approximately 10%. “Food” includes food manufacturers, with an estimated annual turnover of $4 billion and estimated annual growth rate of approximately 5%. “NHP” is the emerging sector of dietary supplements, nutraceuticals and functional foods. This third group is a mostly unregulated industry with an estimated annual turnover of around $1.2 billion.
July/August 2011
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“India’s natural products industry is actively seeking partnerships to establish global export beachheads in key markets.” been attempts to define a third category (i.e., creating a Draft Bill on Health Food Supplements), but nothing concrete has ever materialized. An attempt to bring focus to the category did occur recently with the establishment of the Food Safety and Standards Authority of India, (FSSAI), which was created under the Food Safety and Standards Act, 2006. Also supporting Indian dietary supplement manufacturers is an industry group called Health Foods and Dietary Supplements Association (HADSA). Originally established in 2002, HADSA provides support and advocacy for Indian dietary supplement and functional food manufacturers. Strategies for Successful Business in India India’s natural products industry is actively seeking partnerships to establish global export beachheads in key markets. The country is seeing much of its export growth coming from markets in the Middle East as well as the more traditional markets of Southeast Asia, the U.S. and Europe. India represents an excellent staging market for companies interested in exploring non-traditional markets such as the Middle East. Part of the rationale for India exploiting joint ventures and partnerships is that it has traditionally been “trader” based and consequently unable to exploit any added value from this approach. By partnering with international organizations, Indian companies improve the bi-directional flow of intellectual property and increase the added value to the industry. The other major opportunity is to leverage India’s knowledge based economy. While China was building manufacturing infrastructure, India was educating its people. India is best known as a least cost service provider for offshore call centers; however it also has a major strength in lifescience research and development. By 32 • Nutraceuticals World
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some estimates, there are more engineers and scientists per capita in India than any other country. Some nutraceutical companies have already discovered India as an incredible research and development resource, stemming from the large and mature generic pharmaceuticals industry that exists there. Indian research and technology in areas of fermentation processes, plant extraction and even chemical synthesis are generally much more developed than their Chinese counterparts, and still have the labor cost savings that make outsourcing so attractive. As an industry, the Indian health food market still remains in a nascent stage as we reported back in 2007, with around 75% of Indian retail health food brands still being imported. However, the industry shows strong growth potential and much of the early stage commercial/regulatory risk has been reduced as international nutraceutical companies establish a record of doing business in the market. But challenges remain, as poor infrastructure, lack of adequate facilities for storage, transportation and cold storage facilities continue to hinder growth. And while the Indian regulators have worked to improve the regulatory framework, there is still plenty of confusion around rules, regulations and licensing for a variety of different commodities. India remains a difficult place to start a business, and running the business is not always easy either, but for those who can navigate the regulatory and infrastructural issues, opportunities await. Whether one views the country as a developer and manufacturer of nutraceutical ingredients and products, or as a strong emerging market for nutraceuticals, India is prime for development and early entrants are likely to be prized. The time is right to pounce on the NW opportunities India has to offer! July/August 2011
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The Nutraceutical
Beverage Market: Thirsting for New Ideas
New ideas have all but dried up for beverages, but the ‘natural’ trend may provide the point of differentiation brands need for future growth. By Rebecca Wright Editor
I
f 2010 was any indication of a sluggish future for functional beverages, 2011 is proof of that reality. For several reasons—reduced consumer spending, market saturation, increased consumer skepticism, a terrible economy, lack of new ideas—the market has reached a new low in terms of product introductions and market activity, particularly among the “Big Three”—CocaCola, PepsiCo and Dr. Pepper Snapple Group. The latter had nothing new to add to the category this year. If anything, according to Garima Goel Lal, beverage analyst with Chicago, IL-based Mintel, the market remains flat. Further, she said, “In terms of functional claims, there hasn’t been anything remarkable.” Still, the market is making some gains in categories like energy beverages. In fact, according to Packaged Facts, energy drinks are keeping the functional beverage category afloat.“Sales of energy drinks—along with the performance of ready-to-drink (RTD) teas and sports drinks—have helped the functional and natural RTD beverage market grow to $23 billion,” Packaged Facts stated in its latest report,
This article in a nutshell: • A ‘natural’ progression • Playing in the sports & energy drinks arena • The power of protein • Hit me with your best shot • What’s new?
34 • Nutraceuticals World
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The Nutraceutical Beverage Market
“Functional and Natural Ready-to-Drink Beverages in the U.S.” During the height of the recession between 2008 and 2009, Packaged Facts said functional beverages—including energy drinks, sports drinks and functional waters; ready-to-drink tea and coffee; and yogurt drinks and smoothies—flat-lined in sales growth, keeping with an overall slump in the beverage market due to the stagnant economy and reduced consumer spending. “Nevertheless, by 2010 energy drinks/shots, sports drinks, RTD teas, and fruit/vegetable smoothies all showed renewed dynamism, signaling the onset of a new cycle of sales growth for the market,” the market research firm said.“All had gains of at least 5%, with energy drinks/shots experiencing the highest gain at 10%.”
A ‘Natural’ Progression Most beverage experts agree the nutraceutical beverage market is currently awash in “me-too” energy beverages and shots, as well as coconut water-based elixirs and Vitaminwater knockoffs. Never before has the category been so barren when it comes to new innovations. As a result, companies have been hard at work, trimming product lines and simplifying formulations and product labels, especially from a “natural” standpoint. The latter is a trend analysts predict will rake in huge sales down the road. Far outpacing growth in conventional groceries, U.S. retail sales of natural and organic foods and beverages rose to nearly $39 billion in 2010, an increase of 9% over the previous year, and 63% higher than sales five years earlier, according to "Natural and Organic Foods and Beverages in the U.S., 3rd Edition" a report released by Packaged Facts in June. And the market research firm predicts even greater growth during the next several years. “Packaged Facts projects 2011 will serve as a jump-start for the market as sales ultimately increase by a dramatic 45% by the end of the year. Overall projections are that the market will grow by 103% between 2010 and 2015, with total annual sales exceeding $78 billion in 2015.” Ms. Goel Lal of Mintel said consumers are indeed interested in natural ingredients, and July/August 2011
beverages free from artificial ingredients. As a result, she explained, “This impacts the functional beverage market in a big way because these consumers are concerned about their health, so if a product is not all-natural, then it automatically undermines the functional health attributes of the product.” Recent analysis by Netherlands-based Innova Market Insights offered a similar view. “The most popular health-related claims recorded by Innova Market Insights during 2010 were undoubtedly concerned with naturalness and freedom from artificial additives and preservatives. This encompassed a wide range of products, led by juices and water, which tend to be seen as inherently fairly natural.” The more traditional health-related area of low-calorie or diet drinks also continued to receive considerable attention, Innova said, with reduced sugar, sugar-free and noadded-sugar lines taking second place overall in terms of health claims. The next place, but at a distance, went to drinks marketed as containing antioxidants. Not surprisingly, the natural trend has spilled over to several beverage categories, notably energy beverages, where players are looking to capitalize on the inherent energizing benefits of fruits or natural sources of caffeine. A case in point is Nestle’s arrangement with Jamba juice, which culminated in the launch of three new energy beverages in March. According to U.K.-based New Nutrition Business (NNB),“Creating an all-natural energy drink proposition is the holy grail of many beverage companies. Without the cobranding with Jamba—a brand with significant credibility among the target market of young, mostly female consumers—Nestle could not have had any hope of launching such a product, since its brand has no credibility in categories such as these.” Moving away from energy, the growth in relaxation beverages—which rose to popularity last year on the heels of several launches—has significantly slowed. While analysts believe consumer demand is there for foods and beverages that can provide stress relief, products have not yet delivered in a way that has garnered mainstream acceptance.“The market is still very small and not growing exponentially like energy beverages; it’s still dominated by small players www.nutraceuticalsworld.com
and limited distribution. Further, none of the major players have shown interest in the relaxation trend, especially as products continue to espouse negative connotations.” With an eye squarely on misleading claims and products that run afoul of regulations, FDA will eventually get to these types of beverages too, Ms. Goel Lal concluded.
Playing in the Sports & Energy Drinks Arena Innova says sports drinks, once the preserve of sportsmen and athletes for use before, during and after exercise, have started to be used for refreshment by a range of consumers on a more casual basis, while energy drinks have an even wider spectrum of use, varying from the drink of choice for night clubbers to an aid for concentration when working long hours or driving long distances. According to Mintel’s Ms. Goel Lal, the energy drink category remains a top contender in terms of growth, holding second place overall in terms of functional beverages. “Energy drinks attained the highest growth in 2010 across all categories, and is the second largest segment overall, next to juices, which have been declining,”she said. “What we are noticing is that the category has continued to perform well during the recession—it’s retaining its consumer base very well. However, what we are not seeing is an increase in the consumer base at this time.” Consequently, she believes the market will probably reach its peak during the next five years, especially as the rate of adding new consumers slows down. The Innova Database recorded well over 800 global sports and energy drink launches in 2010. By comparison, the overall number of sports and energy drink launches recorded on the Innova Database peaked at more than 1400 in 2005, as the energy drinks market really started to take off—equivalent to more than 13% of total soft drinks launches recorded for that year. “As the market has matured,” the market researcher said,“the number of launches has fallen steadily, but remained fairly consistent in 2009 and 2010 with over 820 launches each year, equivalent to between 7% and 8% of total soft drinks launches recorded in each of those years.” Nutraceuticals World • 35
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In terms of growth from a geographic standpoint, Innova said while the U.S. and Asia lead the sports and energy drinks markets in volume and value terms, Europe is seeing the highest levels of new product activity, reflecting the large number of countries involved, as well as many of the strongest growth rates.
The Power of Protein To many industry pundits, protein represents a relatively untapped opportunity as far as beverages go. Once the domain of bodybuilders, companies are realizing that other consumer groups such as seniors, for example, could benefit from a daily injection of protein too. In response, there have been several moves to create protein-based beverages, using formats previously considered off-limits to the macronutrient—like clear beverages and juice. “Protein beverages…have moved more into the mainstream sports and energy market in recent years, with the development of RTD products, taking the sector away from its traditional format of powder mixes and its traditional target of body-
builders,” Innova explained.“The drinks are now starting to be targeted at consumers looking for basic nutrients, such as protein and fiber, for weight management and/or generally maintaining a healthy lifestyle, offering a convenient on-the-go snack or meal replacement.” While the market is still undeveloped, Innova said there are high levels of product activity, particularly in the U.S., where PepsiCo’s mainstream Gatorade now features high-protein recovery options in its G Series and G Series Pro portfolios. “Other more mainstream products include Bolthouse Farms’ Perfectly Protein and Protein Plus ranges, while specialist companies include Abbott with its Ensure Muscle Health range,”the market researcher noted. Nevertheless, NNB believes beverages may not be the best format for delivering protein. “Most companies have focused on bars and beverages to deliver a high dose of protein, but these are not formats that have a strong association in most people’s minds with protein. They are still a new and unfamiliar way of getting protein and this has been an important factor in the slow development of the market.”
The Coconut Water Wars Brands continue to fight for market share in this exploding category. According to U.K.-based New Nutrition Business (NNB), the coconut water category has grown about $200 million a year in sales in the U.S., “a staggering 400% increase over its estimated size just a year ago.” NNB says the “Big Three” of the American coconut water market—Vita Coco, Zico and O.N.E.—also continue to grow. And the category should remain healthy for some time, according to beverage experts. Tom Pirko, a beverage consultant who was quoted in the March issue of NNB, said coconut water products “have succeeded on their own merits. There’s always an ongoing search by consumers for something new and different and exciting and well-packaged. Coconut water has an inherently good image—people smile when you talk about it.” The battle being waged at retail is a fierce one, filled with complex partnerships, unique formulations and new positionings. In terms of the former, Pepsi seems to have the most deals cooking—it has a 50% stake in O.N.E., its own Naked Juice version of coconut water, and a partnership with GNC to create and sell a product line called
36 • Nutraceuticals World
Hit Me With Your Best Shot Innova contends that while overall sales of energy drinks now appear to be stabilizing in more established markets, the key growth area in recent years has been that of energy shots, although it remains largely focused on the U.S. market, where sales are reported to have risen 37% to $952 million in 2010. Additionally, the market researcher said sales are forecast to more than double by 2015. “Pioneer 5-Hour Energy continues to lead the market by a wide margin, but Red Bull is now in second place, ahead of another specialist 6-Hour Power, then Monster Hitman,”it said. As the market has developed, Innova points out that the range of products available has broadened and now includes sugarfree, caffeine-free, extra-strength, all-natural and organic products. In addition to the traditional caffeine, taurine, B-vitamins, herbs, antioxidants and amino acids, emerging ingredients include juice and superfruit extracts, resveratrol, protein, ribose and omega 3 fatty acids. And shots aren’t just for the younger crowd anymore. According to a June 2 Wall
Phenom, consisting of fortified coconut water products. The Phenom joint venture follows the successful retail launch of PepsiCo’s Gatorade G Series Pro at GNC stores in May 2010. Vita Coco, one of the origBattle coconut is just getting started. inal brands in the category, maintains a 62% share of the market—far ahead of other players in the category—as well as a significant minority stake held by InBev, NNB reported in its March issue. It also maintains distribution agreements with Dr. Pepper Snapple Group and GNC. Recently, it added heavy-hitter Alex Rodriguez of the New York Yankees to its celebrity fan base. He will begin appearing in Vita Coco ads this July. As for Zico, Coca-Cola showed its interest by taking a minority stake (less than 20%) in the company in 2009. It also counts basketball great Kevin Garnett of the Boston Celtics among its celebrity athlete endorsers. Beyond these major players, there are several others vying for a piece of the coconut water pie. And if they’re not launching their own coconut water products, they’re using it as the main attraction in several new beverage formulations.
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Street Journal article, energy shot leader 5Hour Energy is tapping the Baby Boomer segment to generate additional sales. In fact, the company has started working with AARP, the aging persons advocacy group, to advertise and promote its product. Moreover, it made an appearance at last October’s annual AARP convention, and started running full page ads in the AARP bulletin, which goes to 22 million households.
What’s New? (The following is a snapshot of product activity in the functional beverage sector during the last year.) The last year has been all about reducing calories, artificial additives and sugar for PepsiCo, Purchase, NY. Accordingly, it introduced Pepsi NEXT for consumers seeking the rich taste of full-calorie cola but have decreased their consumption in order to reduce the sugar in their diet. The company claims this product delivers real cola flavor and 60% less sugar. Under the Tropicana brand, PepsiCo launched Trop50 in Lemonade and Raspberry Lemonade flavors. These new varieties deliver 50% less sugar and calories, and no artificial sweeteners. According to Innova Market Insights, PepsiCo continues to perform well with Gatorade, which is the number five soft drinks brand in the U.S. overall after CocaCola, Pepsi, Mountain Dew and Dr Pepper. But it has seen difficulties in recent years, the market research firm said, with volume suffering a double-digit decline in 2009 as it began a brand revamp to move it from a sports drink maker to a sports performance innovation positioning with its G Series addressing pre-, during- and post-performance requirements. The G Series includes the Perform 02 rebranded identity of Gatorade Thirst Quencher and low calorie G2, as well as Perform 01 performance gels and Recover 03 protein enhanced sports beverages. The company also launched G Series Pro, an elite athlete range using the same numbering system but with a Prime prefix. G Natural and G2 Natural were also introduced for those looking for the benefits of a sports drink, but with all-natural ingredients. Lipton Iced Tea, a product of the Pepsi38 • Nutraceuticals World
Lipton Tea Partnership, has launched 100% Natural Lipton Iced Tea, a new line of beverages with a simple, all-natural ingredient list. New 100% Natural Lipton Iced Tea became available in April in four flavors—Green Tea with Citrus, Iced Tea with Lemon, Iced Tea with Blueberry Pomegranate and Green Tea with Passionfruit Mango. The diet portfolio also expanded to include Diet Green Tea with Watermelon. PepsiCo’s SoBe business launched SoBe Lifewater with Electrolytes in January. It has zero calories, contains a range of vitamins and minerals and comes in MacIntosh Apple Cherry and Strawberry Kiwi Lemonade flavors. PepsiCo’s IZZE brand also added Sparkling Watermelon to its product line-up. It is low-calorie and contains natural ingredients. In partnership with GNC, Pittsburgh, PA, PepsiCo has rolled out Phenom, a line of fortified coconut water products. It is low in fat and calories and is a “good source” of vitamin C and potassium. The products are available exclusively at GNC locations, with a wider release planned for later this year. In other news, GNC has formed a joint venture with Shadow Beverages, which will develop, produce, market and sell drinks under the GNC Live Well trademark for sale across a wide range of retail outlets. These products will be developed and produced in coordination with GNC and will continue to focus on the strength of the GNC brand. It is anticipated that the first products developed under the agreement will go into distribution in the third quarter of 2011. Perhaps the biggest news to hit the functional beverage world in the last year was Atlanta, GA-based Coca-Cola’s acquisition of Honest Tea in the beginning of March. The deal followed a 40% stake Coke took in the company in 2008. Since then sales have tripled as a result of expanded distribution. Honest Tea, a leading organic bottled tea company, will continue to be based out of Bethesda, MD. In order to retain its entrepreneurial culture, it will operate as a standalone business under current “TeaEO” Seth Goldman, his management team and current Honest Tea employees. Shortly after sealing the Coke deal, Honest Tea unveiled CocoaNova, a line of lowcalorie, brewed cocoa beverages. Honest www.nutraceuticalsworld.com
CocoaNova is a brewed cacao infusion that contains antioxidants and theobromine naturally found in dark chocolate. Made with certified organic and fair trade certified cacao
beans, the main ingredient in chocolate, the products contain 50 calories per 10-oz. bottle, as well as 50 mg of theobromine. Honest CocoaNova is available in three varieties: Mint Cacao, Mocha Cacao and Cherry Cacao. These innovations were made possible in close cooperation with Hershey. In Coca-Cola’s Vitaminwater line, a new variety called Stur-D was unveiled last October. It blends blue agave, passionfruit and citrus flavors, and according to the company, is the very first enhanced water and juice beverage to combine vitamin D, calcium and vitamin C. Each 8-oz. serving contains 10% of the Daily Value (DV) for vitamin D and calcium, 120% of the DV for vitamin C and 40% of the DV of four essential B vitamins (B3, B5, B6, B12).Vitaminwater stur-D is also the first nationally available enhanced water and juice beverage with a blue color that’s derived solely from fruit. On the Odwalla side of the business, Heart Health Superfood was introduced last September. This new variety contains .4 grams of plant sterols per 8-oz. serving, along with a mix of juices and purées: apple, peach, banana and strawberry. Then Odwalla says it adds a touch of tasty purple boysenberry puree and Concord grape juice. FUZE, part of Coke’s glacéau business unit, has relaunched its line of flavored beverages. Each of the 12 flavors contains an “excellent source” of antioxidant vitamins A, C and E. FUZE is available in seven base flavor varieties (Banana Colada, Peach Mango, Strawberry Guava, Orange Mango, Mixed Berry, Black & Green Tea and Green Tea) and five FUZE Slenderize flavor variJuly/August 2011
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eties (Tropical Punch, Strawberry Melon, Blueberry Raspberry, Cranberry Raspberry and Pomegranate Acai Berry). Slenderize varieties contain Super Citrimax, L-carnitine and chromium. Campbell Soup Company, Camden, NJ, has added two new varieties to its V8 V-Fusion vegetable and fruit juice: Concord Grape Raspberry and Concord Grape Raspberry Light. Each 8-oz. serving provides one full serving of vegetables and one full serving of fruit. It also expanded its V8 V-Fusion line of beverages with new V8 V-Fusion + Tea juice. The product provides a combined serving of vegetables and fruit (1/4 cup vegetables and 1/4 cup of fruit) in each 8-oz. serving, along with antioxidants from natural green tea. It is available in three flavors: Raspberry Green Tea, Pomegranate Green Tea and Pineapple Mango Green Tea. Most recently, Campbell’s entered the energy drink category with two new products: V8 V-Fusion + Energy drinks and V8 Energy Shots. V8 V-Fusion + Energy drinks combine vegetable and fruit juices and natural green tea. Each single-serving can contains 80 mg of caffeine, comparable to the leading energy drink on the market, the company says. The drinks are 50 calories, provide an “excellent source” of B vitamins and do not contain added sugar. V8 Energy Shots feature 100% vegetable and fruit juices combined with green tea extract, which provides natural caffeine comparable to an 8-oz. cup of the leading premium coffee. Each V8 Energy Shot also provides an “excellent source” of antioxidant vitamins A, C and E, along with vitamins B1, B2, B3, B6 and B12, which support metabolism. After making an initial investment of $15.6 million in 2009, Nestle Waters North America, Stamford, CT, completed its acquisition of Sweet Leaf Tea Company, Austin, TX in May. The deal offers Sweet Leaf far greater access to Nestlé’s distribution channels as well as its expertise in supply chain management and a powerful sales and marketing force. The Sweet Leaf and Tradewinds brands’ combined sales totaled more than $53 million in 2010. 40 • Nutraceuticals World
In other news, Jamba Juice announced in March that in addition to the Nestlé USA retail launch in the Northeast, which began in February 2011, the company will begin selling Nestlé Jamba All-Natural Energy Drinks in almost 600 Jamba Juice locations across the U.S. The Nestlé Jamba AllNatural Energy Drinks are available in three fruit flavors: Strawberry Banana, Crisp Apple and Pomegranate Blueberry. The energy drinks contain no artificial preservatives, flavors or colors, 0 grams of trans fat and no high fructose corn syrup. Additionally, each 8.4-oz. can contains 70% real fruit juice, 80 mg of caffeine derived from natural sources, is fat free and 90 calories per serving. Jamba has also launched Fruit & Veggie Smoothies, which contain three servings of fruits and vegetables in each 16-oz. offering. Products are available in three flavors: Berry UpBEET, Apple ‘n Greens and Orange Carrot Karma. Each contains less than 250 calories and represents an “excellent source” of vitamins A and C. Berry UpBEET contains strawberries, blueberries, carrots, beets, broccoli and lettuce. Apple ‘n Greens blends apple-strawberry juice with dark leafy green vegetables, carrots and lettuce, as well as spirulina, peaches, mangos and bananas. Orange Carrot Karma contains carrot juice, orange juice, mangos, bananas and ice. Also released recently, Jamba Probiotic Fruit and Yogurt Blends contain more than 500 million active probiotic cultures per serving from Jamba’s Probiotic Boost. The blends are available in three flavors: Vibrant Blueberry, Strawberries Alive and Thrivin’ Mango. All Jamba Juice Probiotic Fruit and Yogurt Blends are made with whole fruits and probiotics and are an“excellent source”of vitamin C. Last but not least, Jamba has launched Fruit Refreshers, beverages that contain coconut water and are an“excellent source”of vitamin C. Offering essential electrolytes and the natural hydration benefits of coconut water, the beverages are available in Purely Pineapple, Strawberry Lemonade and Tropical Mango flavors. www.nutraceuticalsworld.com
AriZona Beverage Company, Woodbury, NY, has launched AriZona Sports, a line of 100% natural isotonic sports drinks. Products include a proprietary formula that contains pure cane sugar and a balanced concentration of salts and minerals designed for rapid absorption. Each flavor—Fruit Punch, Lemon-Lime and Orange—contains electrolytes, including sodium, potassium chloride and sodium citrate. AriZona Sports contains no artificial colors or flavors and no preservatives. Products also contain 50 calories per 8-oz. serving. AgroLabs, Hillside, NJ, has added Coconut Water Recovery to its line of shots. The 3-oz. shot hydrates, replenishes and nourishes the body before or after exercise, and whenever the body feels tired, according to the company. It contains young coconut water concentrate, potassium citrate, guarana seed extract, green tea extract, vitamin B6 and vitamin B12. Genesis Today, Austin, TX, has launched Pure Energy organic shots, which deliver a 100% all-natural energy boost harnessing the power of two potent superfoods—acai and goji. Pure Energy merges these superfoods with naturally-occurring sources of caffeine like dried, fermented tea leaves, and essential vitamins in a 2-oz. shot. They come in Organic Acai Berry and Organic Goji Berry flavors. Abbott Nutrition, Abbott Park, IL, has introduced two new nutrition shakes: Ensure Muscle Health and Ensure Clinical Strength, which contain the proprietary ingredient, Revigor, a source of HMB (beta-hydroxybeta-methylbutyrate, an amino-acid metabolite), as well as 13 grams of protein. Ensure Clinical Strength also contains Immune Balance, a blend of prebiotic fiber. Xango, LLC, Lehi, UT, has released Xango 3Sixty5, a liquid dietary supplement that contains Active Defense Complex. The product is designed to shield the body from harmful microorganisms, environmental impurities and oxidative stresses, according to the company. Active Defense Complex contains bioflavonoids, reseveratrol, tocotrienols and a proprietary polysaccharide called Primactive. Looking to promote rest and restoration, Vemma Nutrition Company, Scottsdale, AZ, has added Vemma PM to its line of liquid supplement products. It contains antioxJuly/August 2011
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idants from mangosteen along with vitamins and minerals. HealthGuard Wellness, LLC, has launched Be Happy, a 2-oz. shot that contains amino acids and antioxidants, including Chocomine (a patented proprietary cocoa extract) and L-theanine. The product is designed to promote calm and focus, according to the company. It is available in Chocolate Cherry flavor. U.K. retailer Marks & Spencer has launched a new Super Juice designed to lower cholesterol. The product contains 0.75 grams of PromOat oat beta-glucan soluble fiber per 300 ml serving, providing consumers with 25% of the 3 gram daily intake of oat betaglucan recommended by FDA and the European Food Safety Authority for the reduction of cholesterol and subsequent maintenance of healthy cholesterol levels. The juice is available in Red Grape, Blueberry and Blackcurrant flavors.
ViVa Beverages, Southfield, MI, has launched Quick Beverages Sleep and Quick Beverages Relax, 2-oz. liquid shots that contain a proprietary blend of all-natural botanical ingredients, including melatonin, GABA, valerian root, lemon balm, chamomile and passionflower. Available in Berry flavor, the products are zero-calorie and sugar-free. Also looking to get in on the coconut water craze, NextFoods, Boulder, CO, has added Probiotic Coconut Water, as well as SuperGreen Live and StraightShot to its GoodBelly line of probiotic fruit drinks, which contain the patented Lp299v strain. GoodBelly Probiotic Coconut Water contains 20 billion live and active probiotic cultures and 80 calories per serving. GoodBelly SuperGreen Live contains a blend of antioxidants, vitamins and mineral-rich organic ingredients like spinach, spirulina, chlorella, parsley, alfalfa grass and oat grass. GoodBelly StraightShot contains 20 billion live and active probiotic cultures per 2.7-oz. shot. The FRS Company, Foster City, CA, has added Healthy Protein and Healthy Energy
formulas to its FRS line of RTD products. Both products contain the patented FRS quercetin formula. Healthy Protein debuted in two flavors: Orange Cream and Blackberry Acai. Each contains 25 grams of whey protein, 7 grams of dietary fiber and essential vitamins. FRS Healthy Energy products contain 325 mg of quercetin, 85 mg of green tea catechins, seven essential vitamins and 90 calories. They are offered in Cherry Limeade and Wild Berry flavors, which are formulated with organic sugar and stevia. Peach Mango, a low-calorie flavor option at 20-calories, is available with sucralose. Eternal Energy, Brighton, MI, has released Eternal Energy Shot, a 2-oz. energy supplement intended to increase energy, focus and alertness. The product’s formula features 24 vitamins, minerals, amino acids and antioxidants. It is available in three flavors: Tropical Punch, Wild Berry and Pomegranate. Juice behemoth Ocean Spray, LakevilleMiddleboro, MA, has launched Sparkling Juice Drinks, which contain 70% real fruit
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juice and no added sugar. Available in Cranberry and Pomegranate Blueberry, the beverages contain 90 calories per serving. One can is a “good source” of vitamin C and equals a full serving of fruit, according to the company. Diet Ocean Spray Sparkling Juice Drinks contain 10 calories per serving. Prometheus Springs, New York, NY, has expanded its line of capsaicin-spiced beverages to include three new flavors: Mango Chili, Citrus Cayenne and Spicy Pear. Each contains a proprietary blend of chili pepper extracts. Zola, San Francisco, CA, has added Acai with Pomegranate, available in 12-oz. and 32-oz. varieties, and Acai with Blueberry, available in 32-oz. value size, to its line of juices. The company has also launched Brazilian Caja with Mango Juice in Canada. In other news, the company is the force behind the launch of Daily Superfruit Shots at Jamba stores nationwide. They are available in three flavors: Acai Antioxidant Booster, which helps fight free radicals; Cupuacu + Mango Vitality Booster, which boosts vitality and endurance; and Acerola + Caja Vitamin C Booster, which helps support the immune system. WhiteWave Foods, Broomfield, CO, has introduced Silk Pure Coconut milk, which contains no dairy, lactose or cholesterol. Silk Pure Coconut is calcium-fortified, and is an “excellent source” of vitamin D and vegetarian-friendly vitamin B12. It is available in two low-calorie flavors: Original and Vanilla, with 80 and 90 calories per serving, respectively. Hoping to cash in on the facebook phenomenon, new beverage entrant facedrink LLC, San Luis Obispo, CA, has unveiled a 2.5-oz. liquid energy shot of the same name, which it claims will give consumers “social energy"—referring to the particular energy needed to manage a social life. facedrink is free of sugar, carbohydrates and only has three calories. It contains a blend of natural fruit flavors, taurine and caffeine, along with green tea and guarana. Cincinnati, OH-based Bossa Nova has added Organic Acai Pomegranate to its line of superfruit juice beverages. In other news, July/August 2011
all five varieties of Bossa Nova’s acai juice beverages received organic certification from Quality Assurance International (QAI) in December last year. Hype Energy, New Haven, CT, has added Hype Energy Organic to its line of energy drinks. The lightly carbonated beverage contains apple juice, aloe vera, tea and guarana extract, as well as natu-
www.nutraceuticalsworld.com
ral flavors, vitamins and antioxidants. U.K.-based Shotz Health has launched Big Shotz multivitamin and mineral juice shot, which contains MEG-3 brand omega 3 EPA/DHA. Each 120 ml bottle of Big Shotz contains 179 mg of omega 3s, as well as 11 vitamins, six minerals, prebiotics, antioxidants and ginseng. The product is available NW in Mango and Passionfruit flavors.
Nutraceuticals World • 43
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The Global
Herbs & Botanicals Market
Herbs and botanicals will continue to grow in popularity and sales, as long as consumers continue the trend of self-care. By Julie Dennis Contributing Writer
Botanical sales continue their gradual ascent in regions across the globe regardless, or perhaps because of, economic woes. “Part of it is economics; you can’t afford to get sick,” said George Pontiakos, president and CEO, BI Nutraceuticals, Long Beach, CA.“The trusted, consultative, medical resource is not out there; your family doctor is not there anymore and people are recognizing they have to take their health into their own hands.” It’s not all economics, though. Many people simply want to live healthier lives and botanicals are simply part of that goal. “Consumers continue to demonstrate their interest in and demand for natural ways to improve their health,” said Mark Blumenthal, founder and executive director, American Botanical Council (ABC), Austin, TX, and editor of HerbalGram and HerbClip. Increasing demand for botanical remedies is both a national, and international, trend. In fact, the global herbal supplement 44 • Nutraceuticals World
and remedies market is expected to reach $93 billion by 2015, according to a new report by San Jose, CA-based Global Industry Analysts, Inc.
U.S. Trends In the U.S., sales of herbal supplements increased more than 3% in 2010, reaching more than $5 billion, according to a new report published in HerbalGram, ABC’s quarterly journal. The driving force behind these sales figures are the estimated 77 million Baby Boomers, many desiring to stay healthy and fit well into old age.“Menopause for women, prostate for men and cardiovascular health,” are some of the concerns compelling consumers to reach for botanical remedies, according to ABC’s Mr. Blumenthal. It’s no surprise that botanicals addressing age-related health concerns topped the U.S. sales charts in 2010. In the food, drug www.nutraceuticalsworld.com
and mass market, botanicals that experienced the biggest sales increases included black cohosh, with 14% growth, cranberry, which rose 15%, and ginger, which increased 17%, according to SymphonyIRI Group, Chicago, IL. Fourteen percent, 15% and 17% growth are impressive sales increases in any market, and particularly telling when these numbers appear during a recession. Overall sales in this channel increased more than 6%. The top-selling single herbs in dollar sales were cranberry, saw palmetto,
This article in a nutshell: • U.S. trends • Europe: herbal hot spot • Brazil: botanical climate • Asia: naturally ripe for growth • Industry challenges • Future trends: that’s hot
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1.800.925. 11.800.925.1371 8 0.925 9922255 1371 71 71 w www www.ayush.com w.a .ayush yush.com yu 46 • Nutraceuticals World
soy, garlic and ginkgo, SymphonyIRI said in its report. Botanicals that experienced some of the largest increases in sales in the natural channel included, resveratrol, with 11% growth, stevia, which increased 12%, and turmeric, which grew 11%, according to SPINSscan data.
Europe: Herbal Hot Spot The European Union (EU) is home to the second largest nutrition products market in the world, behind the U.S., according to Global Industry Analysts, Inc. “Botanicals are regarded as safe and healthy, with relatively few side effects in contrast to synthetic drugs,” said Joerg Gruenwald, PhD, president of Germanybased consulting firm Analyze & Realize. Common health concerns in Europe, as in the U.S., reflect those of an aging, increasingly industrialized nation.“The most important health concerns are overweight/obesity, cardiovascular diseases (e.g., heart attacks, stroke), cognitive and physical performance,”said Mr. Gruenwald. Currently, some of the top-selling botanicals in the EU include ginseng, echinacea, ginkgo, St. John’s Wort and prickly pear. Despite the sales potential the EU represents, several key regulatory factors are slowing growth. As of the end of April 2011, “Products with botanicals that develop a pharmacological action have to be registered as a drug. That means many herbal products, which have been on the market as supplements, will need a registration, which is a very time and cost intensive procedure,” Mr. Gruenwald explained. “Few companies will have the necessary financial background for such investments.” As of January 2011, the U.K. Medicines and Healthcare products Regulatory Agency (MHRA) recorded 187 traditional herbal applications, of which 84 have been granted. So far, not a single product used in Traditional Chinese Medicine (TCM) or Ayurvedic medicine has been licensed, according to the Alliance for Natural Health. “In my view, one of the main obstacles for the registration of traditional medicines— often very complex mixtures—from Asia include the quality dossier requirement of developing and validating a quantitative www.nutraceuticalsworld.com
assay for the determination of every active ingredient present in the finished product. Many Ayurvedic or TCM herbal medicinal products contain 10, 20 or 30 active substances,” said Josef Brinckmann, vice president of research and development, Traditional Medicinals, Sebastopol, CA. Further slowing growth is the fact that the EU continues to move toward harmonizing legislation between countries. For example, one country may classify a product as a drug, while another may classify the same product as a supplement. As regulatory adjustments and implementation rolls out in the EU, the opportunity for growth continues to attract foreign manufacturers, although barriers to entry will be insurmountable for many. One of the biggest hurdles affecting foreign herbal product manufacturers and marketers “are the EU-residency requirements, none of which can be fulfilled by employees of a foreign company situated outside of the European Economic Area (EEA),” Mr. Brinckmann explained. Even if the foreign company employs EU citizens, “they will not meet the requirements since residency is required. This is, I believe, the most problematic and expensive area for any foreign company,” he said.
Brazil: Botanical Climate Another notable botanical market is Brazil, as regulations continue to change and opportunity continues to knock. The economy is relatively stable, wages are rising for many, and education and consumer demand for dietary supplements are increasing. “Brazil is going through a period of rapid growth, and consumption of health and beauty products is growing accordingly,” said Paul Altaffer, vice president of business and product development, RFI Ingredients, LLC, Blauvelt, NY. “Supplement sales are soaring as consumers are buying international and domestic branded products. As the economy grows so does income—and Brazil’s income inequality gap is narrowing, meaning more Brazilians can afford what a short period of time ago were considered luxury goods.” Brazil shares the same health concerns experienced by most industrialized nations, including obesity/overweight, lack of July/August 2011
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energy, stress, heart issues and immunity, according to Mr. Altaffer. The aging population in Brazil, similar to the EU and the U.S., is also a driving force behind consumer spending. In fact, consumers over age 60 are estimated to contribute about 13% of Brazil’s total income, according to a Euromonitor report. Addressing these concerns are some of the top-selling botanicals, including guarana, mate, acerola, acai, camu camu, cha de bugre, catuaba and boldo, Mr. Altaffer said. But with opportunity also comes challenges, especially as regulations continue to evolve and thwart more dramatic sales increases. One factor contributing to this slowing pace is the group of South American countries currently banding together to develop uniform regulations. Countries involved in this process include Brazil, Argentina, Paraguay, Chile and Uruguay. Consensus and stability are still elusive as these diverse countries attempt to transform the regulatory landscape.
“The system is quite bureaucratic. It becomes more complex as a result of Brazil’s (primarily) effort to come up with a common regulatory environment (similar to CODEX in Europe),”Mr. Altaffer explained. Needless to say, the pace of adopting new regulations has been slow. The emerging regulations are intended to bring Brazil “in line with U.S. and European regulatory frameworks. Brazil emulates the Europeans. As a result, supplements must all be registered with ANVISA (Brazil’s regulatory agency for health products and services), demonstrating safety/toxicity, efficacy and so on,” Mr. Altaffer added.
Asia: Naturally Ripe for Growth While Europe may represent one of the largest regional markets, “in terms of growth rate, the Asia-Pacific market, led largely by China and India, is set to pave the way with the highest CAGR (com-
pound annual growth rate) of [nearly 11%] through 2015,” according Global Industry Analysts’ most recent report. The Asia-Pacific countries share certain similarities, including a long-standing tradition of botanical medicine, current economic growth and an increase of people moving from rural lifestyles to urban centers. This exodus from rural to more industrialized environments “is escalating the incidences of health conditions like stress, obesity and hypertension. Due to this, there is greater focus on health maintenance and management as well as preventative care,” according to Nabeel Manal, CEO of Himalaya Herbal Healthcare, Bangalore, India. Botanicals including holy basil, neem, ashwagandha and turmeric are “widely known herbal remedies in India that combat lifestyle-related disorders,” said Mr. Manal. Helping to support herb sales in emerging markets, including India, is the evolving retail environment, which is
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increasingly designed to resemble more of a “western shopping experience.” For example, larger supermarkets, chain stores and malls are opening up in both rural and urban settings. The Modern Retail Format (MRF), with its organized aisles and easy access to merchandise is very different from the small, family-owned shops commonly found in most communities. The MRF “offers better product visibility and allows customers to read information on product labels before making the pur-
chase. This has increased the sale of herbal supplements in India,”Mr. Manal explained. As demand grows for natural products so has regulatory oversight. Licenses for new herbal supplements are monitored by a central regulation committee, regulations are established for product quality and excipients, companies are required to report on microbial counts and purity for every product, and all manufacturers are required to have periodic inspections for adherence to Good Manufacturing Practices (GMPs).
Botanical Drug Update The botanical drug industry is steadily growing despite high costs of approval. Over the past decade, a new U.S. botanical drug industry has been steadily growing, according to Freddie Ann Hoffman, MD, CEO and founding member of the Washington, D.C.-based consulting firm HeteroGeneity, LLC, which focuses on the development of complex, heterogeneous products, such as botanicals, for the U.S. market. Unlike dietary supplements, products classified as botanical drugs are intended for use in the diagnosis, mitigation, treatment, cure or prevention of disease, and also affect the structure or function of the body, Ms. Hoffman explained. In the U.S., these disease claims classify the product as a drug under the federal Food, Drug and Cosmetic Act. Any product not already approved as a “drug” must be approved under a New Drug Application (NDA) with FDA prior to being marketed. To study a new drug, the drug’s sponsor must first file an Investigational New Drug (IND) application with the FDA. This allows the drug to be studied in humans to obtain the safety and efficacy data required for U.S. drug approval. Furthermore, the product must be manufactured under strict conditions with a high-level of reproducibility and documentation, including the collection of nonclinical, and clinical data, using rigorous experimental designs, Ms. Hoffman said. Regardless of the high cost of pursuing a drug approval, for many manufacturers the appeal outweighs the price. There are approximately “500 INDs for botanical drugs that have been submitted to FDA in various stages of development. Many of these future drugs offer novel mechanisms of action,” Ms. Hoffman noted. While not a “botanical,” FDA approved a complex natural drug from an omega 3 fatty acid rich fish oil in November 2004. This drug is now marketed as Lovaza (GlaxoSmithKline), and according to IMS Health has had annual sales exceeding $1 billion dollars since 2009. In October 2006, the green tea extract Veregen was also approved as a “new” drug, and is now a prescription drug ap-
50 • Nutraceuticals World
With an ancient history of botanical medicine, increasing incomes for many, and an embrace of the western-style shopping experience many industry analysts expect India to continue offering herbal opportunities.
Industry Challenges In December 2010, FDA held a press conference, sent letters to trade associations, issued warnings, recalled products, and
proved for topical use to treat genital warts. Further, several older botanical ingredients, such as psyllium, are regulated as both “food” and “drug” ingredients. The potential benefits for the manufacturer pursuing a drug classification include significantly stronger labeling, such as direct clinical indications and promotional claims, warnings, precautions and contraindications for clinical use, Because botanicals are such and therefore “buy-in” by U.S. complex products, they may healthcare professionals—with posbe able to hit multiple targets sible reimbursement for prescription to prevent the resistance drugs. There is also significant proformed by malignant cells and tection of proprietary information, some infectious agents. including trade secrets—i.e., competitors cannot “borrow” science, unless the second drug is a “generic equivalent.” “To claim ‘generic equivalency,’ the active(s) from both drugs must be administered to human subjects and demonstrate comparable absorption and distribution patterns, in conformance with standardized ‘bioequivalence’ testing procedures,” Ms. Hoffman explained. Also, approved NDAs are given a period of exclusive marketing rights wherein FDA is prohibited from accepting another NDA submission for an identical product. “There are many diseases and conditions that do not respond to a single drug. Cancer is one of these, as is HIV infection and other infectious and inflammatory conditions. The standard of care for these conditions is to use a ‘cocktail’ of drugs,” said Ms. Hoffman. “Because botanicals are such complex products they may be able to hit multiple targets to prevent the resistance formed by malignant cells and some infectious agents, for example.” “Nature is a fantastic biochemist, which offers infinite possibilities for drug exploration,” she said, adding that if proven to work under strict U.S. drug law, “the future for complex drugs in the U.S. is wide open and bright.” —JD
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“I believe it is reasonable to state that there is a growing consensus among many in the herb industry and herb community that, yes, there is and has been an unfortunate growth in the adulteration of both raw materials as well as finished dietary supplement products that are made with such adulterated materials.” posted a message to consumers about the problem of“misbranded drug products masquerading as dietary supplements,” as reported by the American Botanical Council. The FDA action was quickly and broadly broadcast on personal and professional websites, as well as in media outlets, including The New York Times, The Washington Post, The Los Angeles Times, USA Today, The Seattle Times, The Wall Street Journal, National Public Radio, and ABC, MSNBC and Fox News. With actions like this many consumer
July/August 2011
and industry experts are wondering if the botanical industry is experiencing an increase in adulteration or just higher quality control standards and greater visibility. Apparently, the jury is still out. “No, adulteration is not worse than it was 10 years ago. The recognition of it is much more prevalent,” said Roy Upton, president of the American Herbal Pharmacopoeia, Scotts Valley, CA.“Ingredients that suppliers would have accepted before are no longer meeting identity specifications, are found to have been sulfited (requiring
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declaration on labels), treated for microbial reduction (irradiation or ethylene oxide— both illegal for supplement ingredients), or do not meet other quality specifications.” Mr. Upton also pointed out that: “herbs [companies] have traded for 30 years (i.e., adulterants) are no longer acceptable by manufacturers.” Conversely, other industry experts believe incidences of economically motivated adulteration are indeed on the rise.“Commodities are going up but consumer demand for below ingredient prices is rising.
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There are good extract manufacturers everywhere but the real issue is they want to win the business,”said BI Nutraceutical’s Mr. Pontiakos. Although there has never really been a comprehensive test of botanical raw materials or finished products to provide an accurate baseline, according to ABC’s Mr. Blumenthal, “I believe it is reasonable to state that there is a growing consensus among many in the herb industry and herb community that, yes, there is and has been an unfortunate growth in the adulteration of both raw materials as well as finished dietary supplement products that are made with such adulterated materials.” Illegal label claims represent another area at least a portion of the industry continues to grapple with. While most manufacturers are in compliance with the laws, FTC, which regulates advertising, seeks legal action against manufacturers using misleading health claims. In one of last year’s major legal actions, “as part of its ongoing efforts to uncover
over-hyped health claims in food advertising,” the FTC issued an administrative complaint charging the makers of POM Wonderful 100% Pomegranate Juice and POMx supplements with making false and unsubstantiated claims that their products could prevent or treat heart disease, prostate cancer and erectile dysfunction, according to the FTC website. As cited in the Wall Street Journal (October, 2010), Lynda Resnick, the entrepreneur who helped start POM Wonderful LLC said, “We’re going to fight this.” Although the case is ongoing, POM Wonderful has adjusted its advertising. Media coverage will continue to sway consumer buying habits, although recently the industry has not experienced the type of challenging media spectacle seen in past years with targeted herbs— ephedra, for example. Most recently, in December 2010, the Annals of Internal Medicine published a clinical trial on a proprietary echinacea formula. The trial results did not show a
statistically significant benefit for the echinacea product. According to Mr. Blumenthal, “It’s not a compelling result in either direction.”
Future Trends: That’s Hot The Amazon herbs cat’s claw and dragon’s blood are gaining sales ground in both dietary supplements and cosmetics, “and this is long overdue,” according to Chris Kilham, renowned Medicine Hunter. Schisandra, “which has languished in relative obscurity despite its mammoth health benefits, is now getting attention. And cocoa (Theobroma cacao) appears to be the greatest of all the superfruits and a life-saving medicine. So there is a lot going on in a very dynamic market right now,” he added Although acai took a sales hit in 2010, other botanicals with compelling research considered “exotic” in the western markets that are expected to increase in sales include baobob, camu camu and maqui.
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About the author: Julie Dennis has been working in the natural products industry for approximately 20 years as national educator for two highly respected dietary supplement brands, regional sales manager at a multimillion-dollar dietary supplement company, CEO of a start-up botanical supplement line, industry consultant and founder of NaturalCommunityReview.com. Published work includes contributions to The Los Angeles Weekly, The San Mateo Weekly, Nutraceuticals World, Vitamin Retailer and WE Magazine. She has also provided editorial support for books including, The Handbook of Clinically Tested Herbal Products, the American Botanical Council’s Clinical Guide to Herbs, and Dolphin Mysteries: Unlocking the Secrets of Communication, Yale University Press. She can be reached at
[email protected] or 530-478-1737.
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ber 25th, 2010. Yet despite this glowing report will customers continue spending the extra money these certified products typically require? Traditional Medicinals’ Mr. Brinckmann remains skeptical.“I do not believe that a majority of this minority are actually willing to pay appropriate retail prices for assurance of ecological, economical and social sustainability. Even so-called conscious consumers may still be more attracted to ‘deals’ and ‘discounts’ than to ‘appropriate’ and ‘fair’ pricing structures for all stakeholders in the NW supply chain,”he concluded.
FEATURING
Boswellia may also see a bump in sales as research continues to emerge. “Boswellia has a dramatic impact on cancer and, in essence, can teach the body how to heal itself,” said Dr. Ajay Goel, PhD, director of epigenetics and cancer prevention at Baylor Research Institute in Dallas, TX. Botanicals associated with anti-inflammation, including turmeric and ginger should also continue enjoying sales growth as studies continue to support benefits. As recently as this past February, a study demonstrating benefits of ginger root capsules in treating chemotherapy-induced nausea and vomiting in the young was reported in HerbClip. Many consumers are seeking convenient ways to incorporate healthy habits into their daily lives. Therefore, delivery systems such as capsules, tablets and functional foods continue to attract consumer attention and dollars. Foods infused with botanicals, sometimes called “functional foods,” represent some of the easiest and most popular ways for consumers to incorporate botanical ingredients into their daily lives. “Phytosterols, green teas, antioxidant herbal extracts and natural sweeteners are the botanicals that successfully crossed the threshold of functional foods. Several botanicals such as ginseng, acai and guarana are already recognized as crossover ingredients,”according to Global Industry Analysts. For the experienced health food shopper, Fair Trade certification is not a new
A large manufacturer offers you quantity, superior service, & everything in-between.
Foods infused with botanicals represent some of the easiest and most popular ways for consumers to incorporate botanical ingredients into their daily lives.
category, but some wonder whether today’s price-conscious consumer is willing to spend the extra money associated with certified products. Yes they are, according to recent research. In natural supermarkets, sales of Fair Trade certified products increased 16%, and in the conventional food stores 35%, according to a SPINSscan report, 52 weeks ending Decem-
One of the largest manufacturers of Botanical Extracts.
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Formulation Trends in Functional Foods & Beverages
The functional food and beverage sector is benefiting from an endless array of ingredient options. By Jeff Hilton Partner & Co-Founder Integrated Marketing Group I remember back in the 1990s sitting in meetings at Nature’s Way talking about the potential of the functional food and beverage sector, which at that point was in its infancy. Now, well over a decade later, we are in the ramp up to significant expansion of the category with new products entering the market on an almost daily basis. A simple walk down the beverage aisle of Whole Foods provides an excellent example of the proliferation that has occurred. The sheer volume of functional beverage entries is both staggering and intimidating. Even more sobering, 50% of those brands probably won’t be on the shelf one year from now. The beverage isle is a brutal retail battleground where brands either thrive or die. Functional food brands have not yet proliferated to the extent that functional 54 • Nutraceuticals World
beverages have, but based upon a review of marketplace activity and trends many more functional food introductions are on the horizon. And the key driver here is the consumer, believe it or not. In survey after survey, consumers have stated they prefer their health and wellness to result primarily from what they eat and drink, so it is not a huge leap to expect expanded growth for this market in the near future.
What is a Functional Food? As defined by the Institute of Medicine (IOM), Washington, D.C., functional foods are “those foods that encompass potentially healthful products, including any modified food or ingredient that may provide a health benefit beyond the traditional nutrients it contains.”Functional foods can include cereals, breads, yogurts, snacks and www.nutraceuticalsworld.com
beverages that are fortified with vitamins, herbs or other specialty ingredients. A specialty ingredient may be a naturally nutrient-rich whole food source such as spirulina, garlic, soy or a specific component of a food, such as omega 3 fatty acids from salmon.
This article in a nutshell: • What is a functional food? • Market dynamics • Food-supplement convergence • Doctor, doctor • Spicing up formulations • Superfruits still strong, but not for long... • Communicating the value of these products is key • Regulatory roadblocks • Closing the gap
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Market Dynamics Functional foods and beverages represent roughly a $40 billion category in the U.S. retail market. Growth between 2009 and 2010 slowed a bit compared to 2008— primarily because of the recession—and saw the discontinuation of many slow moving entries, particularly in the beverage sector. That being said, the functional food category is still outpacing traditional food and beverage sales in the U.S. Not surprisingly, nearly 90% of functional food sales occur in mass-market channels, including food, drug, mass volume stores (e.g., Wal-Mart/Target) and club stores (e.g., Costco/Sam’s). Large consumer packaged goods (CPG) companies such as General Mills, Kraft, Nestle, Tropicana and Coca Cola have led the charge in this sector during the past several years, and they continue to own the category in the minds of consumers looking for added functionality. It is also interesting to note that almost 60% of functional product sales occur in the beverage sector, which has taken the lead in both product development and consumer education. Unfortunately, roughly 80% of new functional products fail in the marketplace. This is largely due to inadequate promotion, inadequate consumer and trade education (i.e., just because it is a food, don’t assume that consumers will readily see the added value or be willing to pay more for it), and the fatal flaw of introducing what is basically an undifferentiated “me-too” product (i.e., how many energy drinks can the market support?). Despite increased creativity and innovation in the functional products sector, don’t expect this failure rate to improve anytime soon.
Food-Supplement Convergence One trend in product development and consumer demand that is hard to ignore is the merging of foods and dietary supplements. It’s no secret that consumers would prefer to get their nutrients primarily through the foods and beverages they consume, rather than taking additional supplements to fill in 56 • Nutraceuticals World
the gaps. Consequently, manufacturers on both sides of the equation are working to find ways to deliver efficacious doses of nutrients that meet taste and performance expectations when formulated into a food or beverage product. Several factors are driving this convergence, including: • A depressed economy • 2-for-1 mentality • Pill fatigue among older Baby Boomers • Rise in overall health awareness among Americans • Convenience • Trend toward simplifying life and nutritional intake Another clear factor in the convergence of foods and supplements is the emergence of “gateway nutrients.” Consumers are becoming increasingly aware of and perceive certain nutrients as having added value. As their perception of added value increases, they become more willing to pay a higher price for foods that include these nutrients. Examples of gateway nutrients include probiotics, omega 3s, antioxidants, soy and green tea. At a basic level, there are two primary types of functional food/beverage products: “Better for you”: foods that contain less or none of certain ingredients perceived by consumers to be less desirable. Examples include: • Low sodium soups • Reduced-fat mayonnaise; cholesterolfree baked goods • No sugar added desserts While these products may not be “truly functional,”they do offer consumers a way to manage their nutrient intake and improve their health. “Added functionality”: foods that offer nutrients in efficacious doses added to food products for improved consumer health and wellness. These types of products fit the classic profile of a functional food. Examples include: • High fiber products • Soy products • Juices with added calcium or vitamins • Fortified waters • Naturally antioxidant-rich juices www.nutraceuticalsworld.com
Doctor, Doctor Whether you are talking foods, beverages or supplements, the product development and marketing focus has turned to condition-specific applications. Increasingly, consumers are shopping to meet their specific health needs and they expect more targeted health solutions. Some of this targeted shopping behavior is recession-driven, and it helps that retailers are increasingly merchandising products by health needs. But beyond that, consumers are looking for a more focused approach to wellness that allows them to assess the results of taking a product. As such, they will look for specific health improvements, or lack thereof, and modify their shopping accordingly. Some of the more dominant health conditions include energy/performance, healthy aging, immunity, digestion, cardiovascular health, joint support, weight loss and diabetes. Table 1 (page 58) lists the ingredients that extend the promise of a condition-specific health benefit.
Spicing Up Formulations One of the newest (and oldest) players in the functional ingredient space are spices and seasonings, which have long provided flavor to food but are now being positioned as providing health benefits in the proper dosage. Examples of this trend include rosemary, red peppers, oregano, turmeric (curry), cinnamon and ginger. Spices support numerous conditions according to scientific literature. Turmeric is widely recognized as an anti-inflammatory agent, making it a top choice for joint health formulations. Red peppers (i.e., capsaicin) jumpstart metabolic activity and aid in weight loss. Ginger has a calming effect on the stomach and is a favorite in digestive health products. Cinnamon helps manage blood sugar and rosemary boosts liver function. In short, spices make a valuable addition in nearly every conditionspecific category.
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rally functional,” such as blueberries, pomegranates, whole grains, protein, fiber and soy. These types of ingredients have formed the basis of the functional food offerings in the marketplace to date, as they already have some consumer awareness and acceptance. Finally, these ingredients have ODI (old dietary ingredient) status, and are also GRAS for food and beverage formulations. This means manufacturers can make nutritive valuebased health claims that are less likely to
be challenged by regulators. As for superfruits specifically, don’t expect this trend to disappear anytime soon. Americans are enamored with these healthy superfoods, at least for now. But the category is showing some signs of fatigue, particularly as mainstream fruits such as blueberries, grapes, cranberries and pomegranates spend heavily to secure their rightful piece of the superfruit market pie. Meanwhile, keep your eyes peeled for ingredients like sea buckthorn berries (for
Table 1: Condition-Specific Functional Foods
Conditions
Ingredients
Examples
Energy
Green tea, Caffeine, Guarana, Phytochemicals
Perky Jerky, Dynapep, Guru Energy Drink, 180⁰
Performance
Electrolytes, Amino Acids, Protein
O.N.E. Coconut Water, Gatorade, Amino Vital, Silk Soy Milk
Healthy Aging
Omega 3s, Antioxidants, Trans-resveratrol, Sea Buckthorn,
Heart Health
Soy, Fiber, Cocoa, Phytosterols,
Joint & Bone Health
Turmeric, Soy, Calcium, Antioxidants (for inflammation management)
Yoplait (w/added calcium), Joint Juice, POM Wonderful
Cognitive Health
Citicoline, Resveratrol, Selenium, L-theanine (in tea leaves)
Nawgan, Red Wine, Green Teas, Kaia Foods Sprouted Sunflower Seeds
Digestion
Fiber, Probiotics, Whole Grains, Oats, Enzymes
Barilla Plus Pasta, Mojo Milk, GT’s Kombucha Teas, Tropicana Juice w/fiber
Immunity
Camu Camu, Echinacea, Probiotics
Wildly Nutritious Immunity Blend, Praeventia, Yogi Immunity Tea, Immune Water, Nestle Boost Kid Essentials
Weight Management
Turmeric, Soy, Capsaicin, Green Tea, Caffeine
Prometheus Springs Lychee Wasabi Capsaicin Spiced Elixir, Naga Chocolate Bar (w/Indian curry), Celsius
Diabetes
Stevia, Yacon
Zevia Natural Sodas, Yerbamate Royale Tea (w/stevia),Terramazon, Yacon Slices, LovingEarth Organic Yacon Syrup
Sleep Support
Melatonin
Drank
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Tofu Plus, Vitaminwater, Welch’s Healthy Start, Fruit2Day, Sibu Beauty, Gummy Pandas, Drench Water Soy Joy, Fiber One, Barilla Plus Pasta, Progresso (w/added fiber), CocoaNova, Kashi Heart to Heart Oatmeal
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beauty), yacon (for diabetes) and camu camu (for immunity).
Communicating the Value of These Products is Key The majority of new product failures have to do with what companies didn’t do enough of, specifically promotion, education and market differentiation. As a result, the brand failed to make a connection with the consumer and sales fell short of projections. Other issues have emerged that have more to do with product development than with marketing. One concern is the lack of efficacious doses offered in functional food and beverage products. If the products lack enough of the active ingredient to provide results for the consumer, the repeat purchase and word-of-mouth referrals will not happen. The consumer is trying to justify the added cost of a value-added product and they are definitely taking delivery of promised health benefits into consideration as they assess whether the benefits delivered are worth the price paid. Another critical issue is the lack of legitimate consumer research on both the ingredients added to the products as well as the composite functional product itself. More often than not, consumers are doing their homework to see if the added ingredients are clinically proven to be effective. Finally, the consumer is open to information but needs to be educated about new ingredients with which he or she is not familiar. Ingredients such as fiber, protein and calcium bring with them a cachet of awareness and other attributes, while other ingredients such as antioxidants, probiotics and omega 3s generally require a more thorough job of education and promotion. Product education takes time and money, something most companies underestimate when planning a product launch. Moms are totally overwhelmed with food choices, which adds pressure when making the right decisions for themselves and their families. Generally, the fewer ingredients on the nutrition facts panel the better. Keeping it simple is their new mantra. In particular, moms are keeping an eye July/August 2011
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out for overly processed food products and trying to avoid them whenever possible. Trans fats, high fructose corn syrup, preservatives and artificial flavors and colors are securely on the radar of things to watch out for. Particularly when it comes to staples for the household, such as milk, bread and eggs, they are attempting to change entrenched habits and begin buying whole grains and organic alternatives. In addition, mothers are increasingly concerned about incorporating more fresh items in the meals they serve. There is tremendous opportunity for functional food and beverage products to take advantage of this desire for foods that provide a dose of medicine. Research shows that the healthier a product is perceived to be, the less processed it is also perceived to be.
Regulatory Roadblocks One emerging problem within the category, which definitely impacts the consumer, is the increased use of exaggerated
or inaccurate health claims. Not only does this represent a significant area of risk for manufacturers with regulatory agencies, but it also erodes trust and credibility for all products at the consumer level. This type of offense occurs across the board, but is particularly rampant in the immunity, heart, cognitive and weight loss categories. Both FTC and FDA have stepped up their policing of these types of violations. Indeed, recent FTC legal actions against Coca Cola (for Vitaminwater), Kellogg’s (for Rice Crispies and Frosted Mini-Wheats), and most recently POM Wonderful demonstrate the agencies’ desire to clearly define and separate conventional foods and beverages from dietary supplements. Still, the marketplace battle is far from over, and as consumer demand and education increase, the temptation for companies to make aggressive health claims for their functional offerings will only grow stronger. Meanwhile, both sides show no signs of slowing in both the race to meet consumer needs and to protect the consumer from
misleading or exaggerated claims.
Closing the Gap It’s important to remember that product education in this category is in its infancy. Consumers may talk about eating healthy and making better food choices, but that doesn’t always translate into purchase behavior. The more your customers know about your products’ health benefits and clinical support, the more likely they are to embrace your brand and act on their convictions. The functional food and beverage category is definitely worth watching over the coming years. Consumers are clamoring for new products that offer enhanced nutrition and functionality. Eventually demand will NW exceed supply, so let’s get busy!
About the author: Jeff Hilton is co-founder and partner of Integrated Marketing Group, Salt Lake City, UT. He can be reached at
[email protected]; Website: www.imgbranding.com.
Mineral Salts for Nutritional Supplements • Very wide range of minerals • Food and Pharma grades • Low levels of Al, Cd, Hg, Pb • Special grades for - Soft-gelatine Capsules - Hard-gelatine Capsules - Tablets, Microtabs, Dragees - Sachets, Sticks - Liquids, Syrups Dr. Paul Lohmann Inc.
[email protected] www.lohmann-inc.com T +1-877-4DPL-USA July/August 2011
High value mineral salts www.nutraceuticalsworld.com
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Nutraceutical: Cocoa flavonols Indication:Vision and cognitive function Source: Physiol Behav, June 2011;103(3):255-60. Research: Researchers set out to test the hypothesis that cocoa flavonols could improve visual and cognitive function. As such, they recruited 30 young adults between the ages of 18 and 25 years who consumed a specified amount of both white and dark chocolate with a one week interval between testing sessions. Results: Those who consumed dark chocolate, which contained 720 mg of cocoa flavonols, showed marked improvement in visual contrast sensitivity and reduced the time required to detect motion direction. The cocoa flavonols also enhanced cognitive function by improving spatial memory and performance on some aspects of the choice reaction time task. When the participants consumed white chocolate, no significant benefits to visual or cognitive function were observed. This led researchers to conclude that cocoa flavonols found in dark chocolate appear to increase both visual and cognitive function in young adults. Since this study only focused on younger adults, a new study is underway to determine if these findings can be replicated in older adults. Nutraceutical: DHA-enriched bread Indication: Coronary heart disease (CHD) risk factors Source: Quarterly Journal of Significant Omega-3 Research, 2011;4(01). Research: The aim of this study was to assess the potential benefit of DHA supplementation on a range of CHD risk factors in Scottish men with pre-existing hypertension and/or hypercholesterolemia. Fifty-six hypertensive and/or hypercholesterolemic men were initially enrolled in the study and randomly assigned to receive either 2 grams per day of DHA or 1 gram per day of olive oil. The oils were incorporated into bread rolls, which were supplied on alternate days 60 • Nutraceuticals World
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“…a combination of beetroot and hawthorn, because of their NO activity, shows promise in reducing the risk for cardiovascular disease.”
for a total of 5 weeks. Systolic and diastolic blood pressure, heart rate and lipid profiles were measured at the end of the supplementation period. Results: Of the 56 men that enrolled in the study, results from 38 of the men were available for analysis. Men given DHA-enriched bread rolls showed significant reductions in systolic (5.8%) and diastolic (3.7%) blood pressure as well as heart rate (7.5%) when compared to baseline. The olive oil group also demonstrated reductions in these parameters but these did not reach statistical significance. Analysis of serum lipid profiles also demonstrated beneficial results in the DHA supplemented group, with significant increases in HDL cholesterol (16.7%) and significant decreases in both the total cholesterol to HDL cholesterol ratio and the non-HDL cholesterol to HDL cholesterol ratio when compared to baseline. These beneficial changes in serum cholesterol composition were also demonstrated in the olive oil supplemented group. Nutraceutical: Hawthorn Indication: Cardiovascular risk factors Source: Nutr Res, 2011;31(4):262-9. Research: For this double-blind, placebocontrolled study, researchers enrolled 30 patients over 40 years of age with three or more cardiovascular risk factors—hypertension, obesity, hyperlipidemia, smoking, sedentary lifestyle, family history of cardiovascular disease and diabetes. The subjects were administered either an herb blend supplement (containing beetroot and hawthorn berry) or placebo twice daily on an empty stomach for 30 days. Results: Patients taking the herb blend supplement experienced a significant increase in both plasma nitrite and nitrate, indicating an increase in systemic NO (nitric oxide) availability. There was also a statistically significant reduction of elevated triglycerides in 72% of the herb blend supplement group in www.nutraceuticalsworld.com
comparison to their levels at the start of the trial. These findings suggest that a combination of beetroot and hawthorn, because of their NO activity, shows promise in reducing the risk for cardiovascular disease. Nutraceutical: Olive oil Indication: Stroke Source: Neurology, June 15, 2011;[Epub ahead of print]. Research: Among participants from the Three-City Study with no history of stroke at baseline, researchers examined the association between olive oil consumption (main sample, n=7625) or plasma oleic acid (secondary sample, n=1245) and incidence of stroke (median follow-up 5.25 years), ascertained according to a diagnosis validated by an expert committee. Results: In the main sample, 148 incident strokes occurred. After adjustment for socio-demographic and dietary variables, physical activity, body mass index, and risk factors for stroke, a lower incidence for stroke with higher olive oil use was observed. Compared to those who never used olive oil, those with intensive use had a 41% lower risk of stroke. In the secondary sample, 27 incident strokes occurred. After full adjustment, higher plasma oleic acid was associated with lower stroke incidence. Compared to those in the first tertile, participants in the third tertile of plasma oleic acid had a 73% reduction of stroke risk.
Log on, learn more @ nutraceuticalsworld.com Find out everything you wanted to know and more about Beetroot when you visit our online “Research” section and download the Natural Standard monograph from our “Monograph Center.”
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Connoils: Innovative Solutions for Healthy Nutrition As a global manufacturer and distributer of bulk oils, spray-dried oil powders, soft gels, extracts and specialty supplements, Connoils, Big Bend, WI, offers high quality products while maintaining a flexible support network for customers. The company was founded when Cargill Food Ingredients decided to discontinue its nutritional supplements product line. “This was a product line I was directly responsible for,” explained Stacy Peterson, president of Connoils.“At the time of the announcement, Cargill did not have an immediate plan on what to
lots of new inquiries and have signed on with numerous new customers.” The company supplies bulk nutritional products, primarily botanicals in the form of bulk oil, spray-dried oil powders and soft gels. Fluid bulk oils are derived from flowers, herbs and fruits that have been used to promote wellness for thousands of years, according to the company. “Our spray-dried powders carry a 60% oil load, which is higher than any others we’ve seen in the marketplace,” Ms. Peterson noted.“Customers seem to like the products a lot and this particular product
“We take pride in our quality and will only introduce new product offerings if they make sense to our business and the nutritional industry as a whole.” tell their customers about the discontinuation. Since my job was being eliminated I proposed a win/win situation and requested I take over the product line independently. They welcomed the recommendation and said numerous Cargill employees had made similar moves in the past and went on to be very successful.” Since June 2007 Connoils has supported existing customers while adding new ones, also growing sales and introducing new products. In order to establish its name in the industry, the company recently increased its marketing budget. As a result, Ms. Peterson said,“We have seen 62 • Nutraceuticals World
form has grown very successfully. Although our product line is rather small, we add product offerings that complement the other products in our list. We do not try to be all things to all customers, but rather provide a high quality product with superior customer service.” The company’s commitment to offering quality nutritional powders allows wholesalers and private label retailers to sell high oil content nutritional supplements in tablet or capsule form. Products are manufactured in a GMP-certified facility, and Connoils’ suppliers must meet or exceed strict standards for quality in order to provide safe products that satisfy www.nutraceuticalsworld.com
all regulatory requirements. “Everyone is looking for new product offerings and magical solutions to introduce into their diet for a healthier lifestyle,” said Ms. Peterson.“While everyone in the industry is constantly seeking new research data to introduce new items, we take a very cautious approach and only consider reputable product offerings. We take pride in our quality and will only introduce new product offerings if they make sense to our business and the nutritional industry as a whole.” According to Ms. Peterson, the company distinguishes itself through superior customer service, understanding that customers, buyers of nutritional supplements, need flexibility to order small to large quantities, as well as on-time delivery and competitive prices. In addition to these essential services, Connoils offers custom formulations, helping customers develop their own private label lines. Ms. Peterson said the company has weathered the economic storm of recent years. In fact, a poor financial climate has probably enhanced the company’s business, she added. “Consumers are showing more interest in being proactive in their health and are experimenting with more over-the-counter nutritional support to try and stay healthy and avoid expensive visits to the doctor. The nutritional supplement industry as a whole seems to be benefiting from the economic events. We certainly look forward to improvements in the economy and maintaining a healthier lifestyle through our product offerings.” —S.M. Connoils LLC P.O. Box 357 Big Bend, WI 53103 Telephone: 262-617-8670 Fax: 262-662-2828 E-mail:
[email protected] Website: www.connoils.com July/August 2011
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The Wright Group: Making All The ‘Wright’ Moves in Nutraceuticals “Sam” Wright, IV, assumed leadership of the company, and in January 2004 acquired the company from the Wright family. He has grown the company exponentially by expanding its domestic and international presence. “Today,” said Sam Wright, “the Wright Group spends a lot of its time focused on innovation, flexibility and customer and market needs.” In terms of its main product offerings, it supplies SuperCoat microencapsulated nutrients, SuperBlend custom nutrient premixes, SuperTab direct compression ingredients, NutraRice rinse proof rice premixes and WrightMade bakery ingredients. It also dabbles in probiotics and microencapsulated omega 3 ingredient solutions. Prior to shipment, the company claims all custom premixes and nutrient solutions are thoroughly tested by its in-house laboratory to ensure potency and performance. In addition, a Certificate of Analysis accompanies all orders. Explaining why the Wright Group plays an important role in the nutraceuticals market, Mr. Wright said, “The nutraceuticals industry has evolved rapidly over the last 50 years to the point where foods and dietary supplements have converged into one meta-industry. The Wright Group has always been a pioneer in the field of custom nutrient premixes, nutraceutical ingredients and innovative delivery systems. It was a very natural progression based on market needs and The Wright Group received FSSC 22000 certification at its Crowley, LA, our compatible skill set.” facility, demonstrating its commitment to the highest level of quality. Most recently, the
For the past 55 years, the Wright Group, Crowley, LA, has been providing innovative product solutions to a wide array of industries, from foods to dietary supplements and everything in between. The company was formed by Salmon L. Wright, Jr., whose father, Salmon Lusk Wright, had provided the inspiration for the company as a successful rice farmer during the late 1800s, early 1900s. A year after its founding as Wright Laboratory, Salmon L. Wright III decided to join his father in the family business. Soon after, the company was renamed Wright Enrichment. Initially, the company served the rice industry by providing rinse resistant grain premixes. The company then expanded, providing blended vitamin and mineral premixes for standardized products such as wheat flour, corn meal, bread and other applications. Wright Enrichment eventually expanded again, this time to custom formulation and blending of dry vitamin and mineral blends for fortification of a variety of international consumer food products. The latest chapter in the company’s history occurred in January 2003 when S.L.
July/August 2011
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Wright Group received FSSC 22000 certification at its Crowley, LA, facility, which, according to the company, demonstrates its commitment to maintaining the highest level of quality. It also has several other certifications such as ISO 22000 and Kosher and Halal certifications. In addition, it possesses a superior rating from the American Institute of Baking and features a separate allergen processing facility. Touching on the state of the food and dietary supplement industries, Mr. Wright said both have been under significant pressure to improve quality, traceability and safety. “This of course is a result of several food safety issues with ingredients imported from China as well as recalls of retail products produced domestically,” Mr. Wright explained. “The government has passed more stringent product labeling and safety regulations to help combat these issues. In the end, the more quality driven firms will prosper and marginal producers of food and supplement products will be eliminated because of noncompliance.” For the future, Mr. Wright is a firm believer that innovations in product forms and delivery systems will be a major driver of the nutraceuticals industry going forward. “Increased bioavailability, enhanced stability and solubility and the ability to incorporate a wider range of ingredients in challenging systems will be keys to future success,” he said. “The Wright Group is uniquely positioned to not only participate in this growth, but also to drive these innovations forward.” —R.W. The Wright Group 6428 Airport Road P.O. Box 821 Crowley, LA 70526 Telephone: 337-783-3096; 800-201-3096 Fax: 337-783-3802 E-mail:
[email protected] Website: www.thewrightgroup.net Nutraceuticals World • 63
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Fiber One 90-Calorie Brownies General Mills, Minneapolis, MN, has released Fiber One 90-Calorie Brownies. Each brownie contains 5 grams of fiber, which is 20% of the Daily Value. The product is available in Chocolate Fudge and Chocolate Peanut Butter varieties.
BluScience GNC, Pittsburgh, PA, has launched BluScience, a new line of dietary supplements that features pTeroPure brand pterostilbene. New products available through the BluScience line include HeartBlu for healthy heart support, which contains pTeroPure, blueberry extract and phytosterols. EternalBlu contains pTeroPure and other antioxidants that support cellular health and minimize the effects of oxidative stress. TrimBlu contains pTeroPure, jojoba and other vitamins and minerals to support metabolism. Blu2Go, a melt, contains pTeroPure and caffeine for energy support.
Beauty Shake Dr. Aaron Tabor, MD, founder of Physicians Laboratories, Kernersville, NC, has introduced Beauty Shake, a daily beverage for women designed to help support healthy skin, hair and nails. The product also serves
vitamins and minerals that nourish a healthy appearance from the inside out. Dr. Tabor’s Beauty Shake is available in three flavors: Chocolate Youth, Vanilla Vibrance and Strawberry Sparkle.
Jack LaLanne’s Vita-Lanne Swanson Health Products, Fargo, ND, has introduced Jack LaLanne’s Vita-Lanne AllIn-One Nutrient Formula, a liquid multivitamin that contains 400 nutrients, including vitamins, minerals, herbs and allnatural whole foods. The product features a proprietary fruit and vegetable blend that includes acai juice, blueberry concentrate, goji juice concentrate, kale, spinach, VitaCherry tart cherry and wild yam. Essential fatty acids, glucosamine, resveratrol and milk thistle are also included in the liquid multivitamin.
Clif Kid Zbar Crispy Clif Bar & Company, Emeryville, CA, has launched Clif Kid Zbar Crispy, an organic rice crispy snack that is an extension of the original baked Organic Zbar line. Zbar Crispy contains 8 grams of whole grains and is made with toasted oats for a lightly textured crunch. It is available in Chocolate, Chocolate Chip and Peanut Butter flavors. The company has also introduced a new Fruit Punch flavor for Zfruit, the fruit rope twist made with organic fruit puree. The product is an“excellent source” of vitamin C.
Flaxmilk
as a meal replacement that can be used as part of a diet or healthy eating plan, according to the company. Each shake contains 20 grams of protein, 600 mg of calcium, 2.5 mg of biotin, as well as other 64 • Nutraceuticals World
Flax USA, Inc., Goodrich, ND, has unveiled Flaxmilk, an all-natural, non-dairy milk product made from cold-pressed flax oil that is rich in omega 3 fatty acids. One 8-oz. serving of Flaxmilk contains 50 calories and provides as much calcium as cow’s milk with zero cholesterol and zero trans fat. In addition, Flaxmilk is plant-based and enriched with vitamins A, D and B12. The product is availwww.nutraceuticalsworld.com
able in Original and Vanilla flavors.
Wellness Natural Pet Food WellPet has added two new dog food recipes to its Wellness Super5Mix Small Breed line of products. Small Breed Just for Puppy Recipe contains DHA, high quality carbohydrates, proteins and fats, antioxidant-rich fruits and vegetables, vitamins and minerals to help support healthy growth, and smaller kibble size for more petite mouths and teeth. Small Breed Healthy Weight Recipe features reduced fat—26% less than Super5Mix Small Breed Adult Health—and lower calories to help achieve healthy weight loss. Created especially for overweight dogs, the recipe includes quality proteins—like deboned turkey and salmon meal—pea fiber, L-carnitine, glucosamine and chondroitin.
Nano-Encapsulated Supplements livethesource, Fort Lauderdale, FL, has launched a new product line backed by allnatural, patented nanotechnology. Products include livethesource Daily Multi-Vitamin, Symbiotic Diet and Vitamin D Booster. Daily Multi-Vitamin contains essential vitamins and minerals such as vitamin C, B vitamins, zinc, calcium and magnesium. The Symbiotic Diet is a nano tablet designed to improve brain function, enhance optimal health, elevate mood, promote self-control and reduce cravings. The patented, natural formula makes weight loss healthy and sustainable. Vitamin D3 Booster provides a daily dose of 2000 IU of vitamin D in nano-encapsulated form and delivers extracts of nutrient-rich greens to enhance heart health.
Probiotic Wraps & Hummus Cedar’s Mediterranean Foods, Ward Hill, MA, has debuted probiotic-fortified wraps, plus a new line of all-natural hummus with probiotics. Both products contain GaneJuly/August 2011
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denBC30 (Bacillus coagulans). The all-natural, preservative-free probiotic hummus is offered in four flavors: Original Tahini, Roasted Red Pepper, Roasted Garlic and Artichoke/Spinach. Initial plans are to include GanedenBC30 in the Whole Wheat and Thin White wraps, with the rest of the wrap line following soon after. The wraps can be used as a bread substitute for sandwiches and also present an alternative for pizza or sushi rolls.
POPUMZ All Natural Crisps Dr. Sears Family Essentials, Irvine, CA, has unveiled POPUMZ All Natural Crisps, available in new Barbeque, Ranch and Cheddar flavors. Designed as a snack for kids, POPUMZ are 100% all-natural, popped whole grain crisps that contain protein, fiber and omega 3 DHA. The products contain no trans fats or artificial flavors.
No-Sterol Israel-based Ta’am Teva Altman has launched No-Sterol, a natural product de-
July/August 2011
signed to help lower cholesterol. No–Sterol contains recommended dosages of phytosterols, omega 3 fatty acids and CoQ10. The formula was developed and manufactured by Soft Gel Technologies, Inc., Los Angeles, CA.
blind controlled study that found highlinoleic safflower oil reduced belly fat in 55 overweight, diabetic and post-menopausal women by up to 9.4%. It also increased adiponectin by 20%.
Omeganol & Lipideme SafSlim ReBody, Gainesville, FL, has introduced SafSlim, a dietary supplement that contains SAFActive78 high-linoleic safflower oil that is 100% natural, nonGMO and expeller processed. A patented delivery system puts the oil through an emulsification process that results in a better-assimilated and bioavailable form of the oil. The product is available in Tangerine Cream and Berry Cream flavors. SafSlim is based on an Ohio State University 16-week, double-
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PanGenex Corporation, Tampa, FL, has launched Omeganol, a dietary supplement that combines concentrated omega 3s with the antioxidant and cholesterol balancing properties of tocotrienols to support heart health. The company has also released Lipideme, which promotes cardiovascular health by combining omega 3 fatty acids from fish oil, phytosterols, tocotrienols and CoQ10.
Ayu-Dep Ayush Herbs, Redmond, WA, has released Ayu-Dep, a proprietary Ayurvedic formula that contains saffron, an herb popular in Eastern healing traditions for its uplifting, rejuvenating and tranquil effects. In addition to saffron, the blend includes ashwa-
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gandha (Withania somnifera), gotu kola (Centella asiatica), Bacopa monnieri, Mucuna pruriens and Indian barberry (Berberis aristata).
Vita Kids Bread Irish Pride Bakeries has launched Vita Kids Bread, which is fortified with MEG-3 brand omega 3. Every 100 grams of Irish Pride Vita Kids Bread provides 40 mg of omega 3 EPA/DHA, along with folic acid and vitamins C and D.
Elevate My Breakfast! Bars PROsnack Natural Foods Inc., Vancouver, British Columbia, Canada, has released Elevate My Breakfast! bars, a line of proteindense breakfast squares that contain whole fruit, whey protein, almonds and walnuts. These chewy, protein-rich, 90-calorie breakfast squares are gluten-free and 18% pure protein, with no granola fillers. They
are available in Raspberry Cranberry Blueberry, Mango Papaya Coconut and Cocoa Dark Chocolate Chip flavors.
consumed as is, or broken open and used to create a hot herbal tea, according to the company.
Energy-X Caffeinated Sugar Free Gum
PRE Probiotic Enhancer
Pacific Shore Holdings, Inc., Chatsworth, CA, has launched Energy-X Caffeinated Sugar Free Chewing Gum, which contains 55 mg of caffeine. It is available in Spearmint flavor. The company also anticipates releasing an Extreme version that will contain 102 mg of caffeine and will be infused with green tea extract.
Peppermint Leaf Vitamin Power, Hauppauge, NY, has added Peppermint Leaf whole herb dietary supplement to its line of nutritional healthcare products. Each capsule contains 450 mg of the active ingredient of the peppermint leaf. The capsules can be
Research Highlights
Vinoprin Vinomis Laboratories, Sewickley, PA, has launched Vinoprin, a dietary supplement designed to help relieve ordinary aches
erals noted for boosting energy and circulation and optimizing hormonal balance.
ArginMax May Improve Quality of Life for Female Cancer Survivors A natural nutritional supplement, ArginMax, marketed for the last decade as a sexual aid, may improve overall quality of life for female cancer survivors, according to researchers at Wake Forest Baptist Medical Center. Findings were presented at the 2011 American Society of Clinical Oncology (ASCO) annual meeting. With funding from the National Cancer Institute, researchers at the Comprehensive Cancer Center at Wake Forest Baptist, the Derrick L. Davis Forsyth Regional Cancer Center, and multiple other cancer centers across the country recruited 186 female cancer survivors to participate in the study. To be considered, adult female volunteers had to be at least six months beyond their last active treatment for any kind of cancer, with no current evidence of cancer. The Daily Wellness Company, based in Honolulu, HI, provided materials for the study, including ArginMax and placebo pills. Participants received three capsules of either ArginMax or placebo twice a day for 12 weeks and were asked to complete two standardized questionnaires that measure sexual function and quality of life. The questionnaires were completed at the start of the study, and again at four weeks, eight weeks and 12 weeks. Study findings revealed an across-the-board boost in measures of overall quality of life for the patients who were randomized to take ArginMax. Questionnaires showed improvements in both physical and functional well-being among the participants taking the supplement. ArginMax is made from a patented formula containing a proprietary blend of L-arginine, ginseng, ginkgo and 14 vitamins and min-
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PRE Beverage Company, Tustin, CA, has launched PRE Probiotic Enhancer Tropical Coconut Water, which is designed to promote optimal digestive health and immunity. The beverage contains a proprietary prebiotic blend that actively works with the body to trigger the growth of probiotics already present in the digestive tract, according to the company. PRE Probiotic Enhancers are also available in Passion Orange Guava, Pomegranate Blueberry and Acai Cherry flavors.
Campaign Boosts Omega 3 Levels into Healthy Zone Coromega, Vista, CA, has released preliminary findings from the initial phase of its national “6.2 For a Healthier You” campaign, which measured the omega 3 levels in select participants using one of the first omega 3 tests available in the U.S. The goal of the campaign is to inform people about the benefits of omega 3s, and the importance of achieving a healthy omega 3 score, which has been linked to many health benefits, including better heart, brain and joint health, and mobility. Existing research shows the average American scores less than 5% in blood omega 3 levels, though healthy levels start around 6%, and optimum levels begin between 8% and 9%. Coromega tested 23 individuals who regularly take Coromega Omega3 Squeeze, a daily dose of emulsified fish oil. Results showed the majority of participants who took Coromega daily achieved a score well into the healthy omega 3 zone, with more than half reaching the optimum omega 3 level. “Our preliminary findings have shown that people who take Coromega daily can achieve a score in the healthy omega 3 zone,” said Dr. Doug Bibus, Coromega’s scientific advisor and nationally recognized leader in omega 3 research. “Because it’s difficult to get the recommended daily dose of omega 3s through diet alone, we often advise adding a daily supplement.” Coromega used the Holman Omega-3 Test created by Dr. Bibus and renowned biochemist and omega 3 researcher Dr. Ralph Holman. The test measures an individual’s omega 3 score through a simple blood test.
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and pains. The all-natural formula contains a proprietary extract from the hops flower, which reduces the level of COX-2 paincausing enzymes in the body, but with minimal reduction of the COX-1 enzymes that protect the digestive tract, according to the company.
CREATING TOMORROW’S SOLUTIONS
EuroMedica & Life’s-Trio EuroPharma, Green Bay, WI, has launched EuroMedica brand of natural supplements for health professionals. The line includes specialty products for pain and inflammation support, joint and spine health, neurological health, upper respiratory and intestinal tract health. Many of the EuroMedica products contain the clinically proven BCM-95, a bioavailable form of curcumin. For example, CuraPhen Professional Pain Formula and CuraPro are standardized to contain 500 mg of BCM-95. The company has also introduced Life’s-Trio to the U.S. market. The dietary supplement powder contains MultiBene for triple heart protection, which features phytosterols, minerals and crushed Nordic flax seed in a patented combination. Life’s-Trio helps block the absorption and reabsorption of cholesterol; facilitates cholesterol removal from the body; supports healthy blood pressure; and provides essential minerals—including potassium—that play a direct role in healthy heart contractions and rhythms.
WHAT DO YOU WANT TO MASK?
ellura Trōphikōs, LLC, Atlanta, GA, has introduced ellura, a premium cranberry extract supplement. Designed to promote urinary tract health, each once-daily capsule of ellura contains Vaccinium macrocarpon-derived proanthocyanidins (PAC). Ellura is manufactured in France, where it is known as Urell, and is supported with a health claim from the French government. The claim states that 36 mg of PAC, as measured by the BL-DMAC method, can reduce the adhesion of bacteria to the urinary tract walls.
Helps Teas Helps Teas, part of Spain-based Pharmadus, has launched its Helps Teas product line in the U.S. This brand includes products for both adults and children. The line includes Just for Her, a menopause supplement; Organic R&R, for relaxation; Organic Easy Digestion; Make it Easy, for constipation; Breathe; Organic Green Tea Leaves, for overall well-being; and For Low Sugar Diets, to help stabilize blood sugar. The children’s product line includes Breathe, to alleviate cold and flu symptoms; Dreams, to calm and relax kids before bed; For Little Tummies, to promote relief from a variety of stomach problems; and For Rehydration Diets, to help replenish a sick child’s fluid levels.
Vplenish Vplenish Nutritionals, Boca Raton, FL, has released Vplenish, which contains a taste-free blend of vitamins C, D, B6 and B12, plus zinc, antioxidants and electrolytes. Designed for addition to any food or beverage, Vplenish contains no additives, preservatives or artificial colors. It is also gluten-free, kosher, safe for diabetics, calorie-free and caffeine-free. July/August 2011
Would you like to mask the bitter taste or soften the intense flavor of your product? Talk to us. We have the solution. With our technology and know-how, we can help you mask undesired side effects. We offer you the controlled encapsulation of a large variety of molecules. In many cases, we can encapsulate the desired ingredient for you and supply you with ready-to-use complexes. Our technology of choice is encapsulation via ring-shaped sugar molecules, known as cyclodextrins. With 15 years of experience in manufacturing and formulating _-, `- and a-cyclodextrins we are the innovative partner for the nutrition industry. Find out more about us and our other products and services at www.wacker.com/food Wacker Chemical Corp., +1 517 264 8794,
[email protected]
www.nutraceuticalsworld.com
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Legacy Probiotic Blends Nebraska Cultures has launched Dr. Shahani’s Legacy Blends, a line of four new probiotic blends that includes Pro-Traveler, Healthy-Defense, Kid-Kare and Digestion-
Plus. Formulations are supplied in raw material form, including bulk powder, bulk capsules or exclusive chewable tablets. The Pro-Traveler probiotic blend combines Lactobacillus acidophilus DDS-1 and Bifidobac-
Research Highlights
important, as these two hormones released from the intestine help tell your brain that you are full,” said Dr. Hendrich. Fibersol-2, a digestion resistant maltodextrin, was developed by
Study Supports EpiCor’s Effectiveness Research published in the May issue of the Journal of Medicinal Food indicates that EpiCor, from Embria Health Sciences, significantly increases natural killer (NK) cell activation and serum antioxidant levels within two hours. Other rapid changes included effects on T and NK cell circulation. The randomized, double-blind and placebo-controlled crossover study observed EpiCor’s effects on immune cells in vivo, with specific focus on NK cell activation, antioxidant status and key immunomodulating agents (cytokines) in a short timeframe. Blood samples from 12 healthy adults were taken at baseline, and 1 and 2 hours after a 500 mg oral dose of either EpiCor or placebo. Results after 1 hour showed increased activation of NK cell populations and a rapid increase in interferon-Υ, a key messenger molecule of the immune system. Effects noted at 2 hours included significant serum antioxidant increases. “The increased levels of some key biomarkers as shown in this study shed light on mechanisms of action that help explain the reduction in cold and flu symptoms seen in earlier clinical studies,” said Larry Robinson, PhD, study coauthor and vice president of scientific affairs for Embria. For further information: www.embriahealth.com Fibersol-2 May Help Control Satiety Results of a recent clinical study conducted by Dr. Suzanne Hendrich at Iowa State University indicates Fibersol-2 digestion resistant maltodextrin, a soluble corn fiber, promotes satiety by increasing hormones PYY and GLP-1. The randomized, double-blind, placebo-controlled crossover study included 19 healthy individuals (9 males and 10 females). Participants underwent treatments in which they consumed a meal with 0, 5 and 10 grams of Fibersol-2. At specific times, a visual analog scale (VAS) questionnaire in which participants mark how full or hungry they feel, was provided to measure individual perception of appetite and satiety or level of fullness. Results of this study demonstrate that Fibersol-2 delays post-meal hunger. “The effects of Fibersol-2 to increase hormones PYY and GLP-1 are particularly
68 • Nutraceuticals World
terium bifidum, which may combat common food-poisoning bacteria, according to the company. The Healthy-Defense blend is formulated to help fight yeast, fungal and viral infections. This blend is made with
Japan’s Matsutani Chemical Industry Co., Ltd., and has been exclusively produced by ADM since 1999. For further information: www.fibersol2.com Phase 3 Sugar Controller Suppresses Glucose, Insulin Levels Two separate studies show that consumption of L-arabinose and a trivalent, patented food source of chromium, (Phase 3 Sugar Controller, LA-CR, from Pharmachem Laboratories, Inc.), significantly lowered both circulating glucose and insulin levels after consumption of a 70-gram sucrose challenge, compared to placebo. The studies are described in a peer-reviewed article published in the May issue of Nutrition Journal. According to lead researcher, Gilbert Kaats, PhD, “The data from these two separate studies reveal that a formula containing Phase 3 Sugar Controller can facilitate a consistent suppression of both circulating glucose and insulin without adverse side effects. The replication of the suppressive effect observed in the two sequential studies increases the confidence of the formula’s efficacy.” In the first phase of study one, 20 subjects were given a 70gram sucrose challenge and completed capillary glucose measurements at 30, 45, 60 and 90 minutes for control. This was followed the next day but with the subjects also consuming a novel formula containing L-arabinose and trivalent patented food-source chromium combination. In the second phase of study one, 10 of the subjects took the formula daily for four weeks and repeated the baseline capillary tests at the end of each of the four weeks. In study two, the same procedures used in the first phase were repeated with 50 subjects but with added circulating insulin measurements at 30 and 60 minutes from baseline. “The results showed the supplement group exhibited significantly lower glucose responses for all four testing times and that the formula was significantly more effective in lowering circulating insulin after 60 minutes from baseline,” added Dr. Kaats. For further information: www.pharmachemlabs.com (continued on page 70)
www.nutraceuticalsworld.com
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50% Lactobacillus acidophilus DDS-1, 25% Bifidobacterium bifidum and 25% Enterococcus faecium. The Kid-Kare probiotic blend is designed to help replenish the strains most commonly found in healthy children and infants. The blend is 35% Lactobacillus acidophilus DDS-1, 35% Bifidobacterium bifidum, 15% Bifidobacterium longum and 15% Bifidobacterium infantis. The Digestion-Plus blend is designed to support a healthy colon by replenishing healthy bacteria, improving digestion and acidifying the colon. It is made with 40% Lactobacillus acidophilus DDS-1, 30% Lactobacillus salivarius and 30% Bifidobacterium bifidum. For further information: www.nebraskacultures.com
Quatrefolic Gnosis received the “Most Effective Strategic Product Development” award for its Quatrefolic, a folate derivative, at Vitafoods this year. The independent judging panel recognized Quatrefolic for excellence in: innovative patent design, high quality product
July/August 2011
development, flexibility and choice for the consumer, recognizing market and consumer demands and trends, strategic market orientation, project planning and execution and overcoming research and development challenges. Quatrefolic is a new generation of folate derivative with benefits over the older generation (6S)-5methyltetrahydrofolate calcium salt. For further information: www.quatrefolic.com
Stevia-Sweetened Chocolate Barry Callebaut has introduced a dark chocolate made with stevia extract in the North, Central and South American markets. The company replaced sugar with an all-natural sweetener solution comprised of dietary fibers, the natural sugar alcohol erythritol and stevia extract, which alone offers zero calories per serving. The new chocolate can be used in a variety of applications, including molding, enrobing and inclusions, or customized for a specific application. For further information www.barry-callebaut.com
www.nutraceuticalsworld.com
Lutemax 2020 Award OmniActive Health Technologies has received the Frost & Sullivan 2011 Global Product Differentiation Excellence Award for its Lutemax 2020 lutein and zeaxanthin eye health ingredient. Frost & Sullivan measured key benchmarks, including unique product development, quality assurance, market acceptance, potential growth opportunities and brand perceptions. Lutemax 2020 combines a unique balance of lutein with two additional carotenoids—RR-zeaxanthin and RS(meso)-zeaxanthin—in a bioavailable ratio. For further information: www.omniactives.com
Ergo-D2 Total Nutraceutical Solutions, Inc. (TNS) has released Ergo-D2, a mushroom-based ingredient formulated using proprietary technology that naturally enhances bionutrients and antioxidants, such as L-ergothioneine and vitamin D2. For further information: www.totalnutraceutical.com
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Australian Regulations Training Robert Forbes and Associates (RFA) now offers personalized training courses in Australian regulations for companies planning to sell dietary supplements, foods and cosmetics in Australia. The regulatory affairs and GMP consulting firm offers the new service through Skype connection. The one-hour training courses are conducted one-on-one at a time that is convenient to each individual. RFA will also offer instant Australian regulatory
updates via Twitter. Currently, 16 RFA courses are offered and cover a wide range of topics, including an introduction to Australian foods, supplements and cosmetics regulations; complementary medicine (dietary supplements) applications, product claims, labeling, stability testing, GMP and advertising; and cosmetics ingredients and labeling. For further information: www.robert-forbes.com
Natural Eggshell Membrane ESM Technologies has received the Frost
(continued from page 68) Carnipure Tartrate Increases Muscle L-Carnitine Content A new study shows that long-term L-carnitine supplementation in the form of Carnipure tartrate, from Lonza, coupled with the intake of carbohydrates increases muscular L-carnitine content in recreational athletes. The randomized, double-blind, placebo-controlled study was conducted by the School of Biomedical Sciences at the University of Nottingham Medical School in England and published in the Journal of Physiology. During low-intensity exercise, increasing muscle L-carnitine content led to glycogen sparing and increased fatty acid oxidation. In high-intensity exercise, it led to a decrease in anaerobic energy production, including a decrease in muscle lactate accumulation. Furthermore, during a performance test, L-carnitine supplementation resulted in lower perceived exertion as well as increased work output. Previous studies show that Carnipure tartrate supplementation can increase fatty acid oxidation in a non-athletic population. The current study is the first to show the same effect in recreational athletes. These findings together with previous findings demonstrate that Carnipure supplementation may lead to a decrease in the production of free radicals, less tissue damage and reduced muscle soreness after exercise. For further information: www.lonza.com Low-Fat Chocolate Milk Impacts Aerobic Fitness and Performance Drinking chocolate milk after a workout can boost improvements in aerobic fitness and body composition, according to new research presented at the American College of Sports Medicine (ACSM) 58th Annual Meeting and 2nd World Congress on Exercise is Medicine. These presentations come on the heels of another study published in the May issue of Journal of Strength and Conditioning Research focusing on chocolate milk’s beneficial effect on cycling performance and signals for muscle recovery in endurance athletes. For the latest study, from researchers at the University of Texas— Austin, 32 healthy, untrained participants followed a 4.5-week aerobic training program consisting of one hour of moderately intense cycling, five days each week.
70 • Nutraceuticals World
& Sullivan 2011 North American Dietary Supplements for Joint Health New Product Innovation of the Year Award for its NEM (Natural Eggshell Membrane) product. Frost & Sullivan evaluated products based on several criteria: innovative element of the product, leveraging leading technologies, value-added features and benefits, increased customer return on investment (ROI), as well as customer acquisition and penetration potential. For further information: www.esmingredients.com
Immediately and one hour following exercise, they consumed lowfat chocolate milk, a calorie and fat-matched carbohydrate beverage or water. The men and women drinking chocolate milk after exercise improved their body composition, measured by the combination of increased lean muscle and decreased body fat, when compared to those drinking the carbohydrate beverage. The chocolate milk drinkers also had greater improvements in aerobic fitness compared to those drinking either the carbohydrate beverage or water. The study published in the Journal of Strength and Conditioning Research focused on 10 endurance trained cyclists and triathletes who cycled for 90 minutes at a moderate exercise intensity prior to performing 10 minutes of high-intensity intervals. Immediately following exercise and again two hours following exercise, participants consumed a recovery drink of low-fat chocolate milk, a calorie and fat-matched carbohydrate beverage or a non-caloric flavored water. Muscle biopsies were obtained immediately after exercise, 45 minutes after exercise and again four hours after exercise. Following this four-hour recovery period, subjects also performed a 40-kilometer cycling time trial. Results showed that chocolate milk improved cycling performance, more than the other drinks, cutting at least six minutes, on average, off the athletes’ ride time for going the same distance. Chocolate milk also increased signals for muscle protein synthesis, which leads to the repair and rebuilding of muscle proteins, more than the other drinks. In addition, the results showed that chocolate milk and the carbohydrate drink were more effective than water in restoring carbohydrate fuel in the muscle. There was no difference between groups in markers of muscle breakdown. For further information: www.usdairy.com Green Shell Mussel Improves Arthritis Symptoms An Australian clinical study of Christchurch, New Zealand-derived green shell mussel powder, from Aroma New Zealand, indicates significant anti-inflammatory properties for arthritis sufferers. Conducted by researchers at Queensland University, the trial demonstrated that arthritic conditions improved by 43% over eight weeks for arthritis sufferers who took part in the trial. The study showed overwhelming reduction in joint pain and increased joint mobility in patients. For further information: www.aromanz.com
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People in the News Watson
Aaron Secrist has joined NOW Foods, Bloomingdale, IL, as quality and regulatory manager. He has 20 years of experience in the dietary supplement industry. For the past three years Mr. Secrist has provided regulatory consulting services in the industry. He previously served as director of quality and R&D for Nature’s Way. Enzymedica, Inc., Port Charlotte, FL, has appointed Scott Cloud executive vice president of Enzyme Science, a new division of the company in the practitioner channel. He previously served as vice president and general manager of Integrative Therapeutics, Inc. (ITI), the practitioner division of Schwabe North America. The Enzyme Science line will feature Enzymedica’s Therablend technology in therapeutic formulas designed to meet specific needs of physicians and healthcare practitioners. BASF Corporation, Florham Park, NJ, has named Samy Jandali vice president, Nutrition & Health, North America. He will be responsible for leading the newly formed Nutrition & Health business unit in North America, which includes four global business units: Human Nutrition, Animal Nutrition, Aroma Chemicals and Pharmaceutical Ingredients and Services. He previously headed the sales division for BASF Pharmaceuticals. The company has also appointed John Gehbauer regional marketing manager, Human Nutrition. He will oversee more than a dozen product lines and has responsibility for all regional marketing and scientific communications and strategic business development. In addition, BASF has named Laura Troha regional brand management and regional marketing communications manager, Human Nutrition. She will be managing marketing programs for the expanded line of BASF’s products and services. She will also be regional product manager for Tonalin CLA. She previously served as marketing manager for the Cognis portfolio in North America. InterHealth Nutraceuticals, Benicia, CA, July/August 2011
Schimmel
has appointed James Lugo, PhD, director of business development and research. He will be responsible for overseeing all related activities, including tracking industry trends and developments, identifying and evaluating potential products and managing the new product development process. A veteran of the pharmaceutical industry, Dr. Lugo has led new product launches for such companies as Elan Pharmaceuticals and Chugai Pharmaceuticals. The company has also hired Zainulabedin Saiyed, PhD, as R&D manager. He previously worked as assistant professor in the Department of Immunology, College of Medicine, at Florida International University. He will be responsible for managing InterHealth’s pipeline of research studies. Brian Peotter has joined ESM Technologies, Carthage, MO, as western region sales manager. He will be responsible for advancing the ESM and Stratum Nutrition ingredient portfolio throughout the western U.S. Mr. Peotter previously worked with Unigen, where he was building an international presence for Unigen’s specialty botanical extracts in key markets around the world. Israel-based Solbar has appointed Todd Watson president of Solbar USA. He has more than 25 years of managerial and commercial experience in the food ingredients and commodity industry. Mr. Watson has extensive experience in sales and marketing, working for well-known multinational companies, including Cargill. He spent the past two years as president and CEO of Protient, Inc. Cyvex Nutrition, Irvine, CA, has hired Puya Yazdi, MD, as medical director. He will be responsible for overseeing the company’s ongoing clinical studies and safety trials, promoting education surrounding all Cyvex ingredients—particularly omega 3s in preventive health—and spearheading research and development. In addition to his role at Cyvex, Dr. Yazdi is currently a California Institute of Regenerative Medicine Fellow unwww.nutraceuticalsworld.com
dergoing further scientific and medical training in the Department of Medicine and the Sue and Bill Gross Research Center at the University of California, Irvine. Catalent Pharma Solutions, Somerset, NJ, has appointed Rao Tatapudy, RPh, PhD, vice president of scientific affairs, Innovation & Growth. Dr. Tatapudy will be responsible for strategic programs in R&D and technology platforms with a focus on innovation and growth of current technology platforms and advances in bioavailability enhancement, taste masking, modified release and particle engineering. He previously worked at Pfizer, where he was new product leader and director of new product and process development with responsibility in global manufacturing services. The company has also appointed Harry Jeffreys vice president, Quality Management Systems & Compliance. He will be responsible for leading the Quality Management System (QMS) and Compliance team and driving excellence in Quality and Compliance across Catalent. Mr. Jeffreys joins Catalent from GE Healthcare in the Medical Diagnostics Division where he held various leadership roles within Quality. Bruce Schimmel has joined Superior Materials, Inc., Garden City, NY, as sales manager. He will be responsible for leading coverage of the New England area while also handling individual accounts. Mr. Schimmel brings expertise in the handling of national accounts as well as management over expanded territories. He previously served as business development manager at Hydrite Chemical. Solazyme Roquette Nutritionals LLC, San Francisco, CA, has named Jodie Morgan president and general manager. She has more than 20 years of experience in commercializing chemicals and food ingredients, including her most recent role as president of SPI Foods, a global specialty food ingredients manufacturer purchased by Corn Products in 2007. Nutraceuticals World • 71
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2011 Calendar
JULY Jul. 19-22: The 14th Annual NBJ Summit, Dana Point, CA: New Hope Natural Media, 866-458-4935; E-mail:
[email protected]; Website: www.nbjsummit.com
AUGUST Aug. 16-18: 9th International Conference on Functional Food Components in Health & Disease, San Diego, CA: Functional & Healthy Food Center, 866-464-6955; Email:
[email protected]; Website: www.functionalfoodscenter.net
SEPTEMBER Sep. 7-9: Vitafoods Asia, Hong Kong: Vitafoods, Contact: Phil Hawkins, 44-207240-2444; E-mail:
[email protected]; Website: www.vitafoodsasia.com Sep. 22-24: Natural Products Expo East, Baltimore, MD: New Hope Natural Media, 866-458-4935; E-mail:
[email protected]; Website: www.expoeast.com
www.anuga.com Oct. 10-14: SupplySide West, Las Vegas, NV: Virgo Publishing, Contact: Amy Sharman, 480-990-1101; E-mail:
[email protected]; Website: www.supplysideshow.com Oct. 12-13: Elderly & Medical Foods 2011, Amsterdam, The Netherlands: Bridge2Food, Contact: Gerard Klein Essink, 31-30-225-2060; E-mail:
[email protected]; Website: www.bridge2food.com/emc2011.asp Oct. 16-19: 2011 AACC International Annual Meeting, Palm Springs Convention Center, Palm Springs, CA: AACC International, Contact: Rhonda Wilkie, 651454-7250; E-mail:
[email protected]; Website: http://meeting.aaccnet.org Oct. 19-22: CRN Annual Conference & Workshop, Rancho Palos Verdes, CA: Council for Responsible Nutrition (CRN), Contact: Katie Stevenson, 202-204-7682; Fax: 202-204-7701; E-mail:
[email protected]; Website: www.crnusa.org
Oct. 8-12: Anuga, Cologne, Germany: Koelnmesse, 773-714-0063; E-mail:
[email protected]; Website:
2012 MARCH Mar. 7-8: Nutracon, Anaheim, CA: New Hope Natural Media, 866-458-4935; Email:
[email protected]; Website: www.nutraconference.com Mar. 9-11: Natural Products Expo West/Supply Expo, Anaheim, CA: New Hope Natural Media, 866-458-4935; E-mail:
[email protected]; Website: www.expowest.com
MAY NOVEMBER
OCTOBER
[email protected]; Website: www.crn-i.ch Nov. 14-17: International Society for Nutraceuticals & Functional Foods (ISNFF) Annual Conference, Sapporo, Japan: ISNFF, 709-864-4000; E-mail:
[email protected]; Website: www.isnff.org Nov. 29-Dec. 1: Food Ingredients Europe, Paris, France: United Business Media, 3120-40-99-544; E-mail:
[email protected]; Website: www.ingredientsnetwork.com
Nov. 12: Nutrition Issues in Codex: Health Claims and Nutrient Reference Values, Bad Soden, Germany: CRN-International, 202-204-7682; E-mail: hn-
May 8-10: SupplySide East, New York, NY: Virgo Publishing, Contact: Amy Sharman, 480-990-1101; E-mail:
[email protected]; Website: www.supplysideshow.com
Classifieds Nutraceuticals World CLASSIFIED ADVERTISING RATES Ruled Box $140 per column inch (1x) $135 per column inch (5x) $120 per column inch (10x)
Deadline to place ads or send materials is the fifth day of the month preceding issue.
Blind Box $30 additional
******
Situation or Help Wanted Ad $1.75 per word with a $85 minimum 72 • Nutraceuticals World
For more information: Tel: 201-825-2552 Fax: 201-825-0553 E-mail:
[email protected] www.nutraceuticalsworld.com
July/August 2011
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Advertisers Index
Advertiser
Page No.
Telephone
Fax
Website
A. Holliday & Co.
42
416-225-2217
416-225-2745
www.teacoff.com
Ayush Herbs
46
800-925-1371
425-451-2670
www.ayush.com
BASF
5
800-527-9881
973-4256843
www.nutrition.basf.com
Bio-Botanica
19
800-645-5720
631-231-7332
www.bio-botanica.com
Biothera
43
877-699-5100
651-675-0400
www.biothera.com
Biotropics Malaysia
11
+ 603 2245 8000
+603 2245 8008
www.biotropicsmalaysia.com
Blue California
39
949-365-1990
949-635-1988
www.bluecal-ingredients.com
Brunswick Labs, Inc.
27
508-281-6660
Capsugel
Cov. 2
888-783-6361
864-942-3079
www.capsugel.com
Cognis Nutrition & Health
41
800-673-3702
513-482-5516
www.cognis.com
Council for Responsible Nutrition
61
410-654-5525
202-204-7980
www.crnusa.org/2011events
Dr. Paul Lohmann, Inc.
59
877-4DPL-USA
631-851-8815
www.lohmann-inc.com
Ecuadorian Rainforest
7
973-759-2002
973-759-3002
www.intotherainforest.com
Flavex Naturextrakte GmbH
48
+49 (0) 68 35-91 95-0
+49 (0) 68 35-91 95-95
Gencor Pacific
3
714-870-8724
732-875-0306
www.gencorpacific.com
Gourmet Mushroom
52
707-823-1743
707-823-1507
www.mycopia.com
Hsu’s Ginseng
51
877-446-7668
715-675-9730
www.hsuginseng.com
iTi tropicals
23, 65
800-223-5484
609-987-0252
www.iTitropicals.com
Jiaherb Inc.
53
973-439-6869
973-439-6879
www.jiaherbinc.com
Jost Chemical Co.
55
314-428-4300
314-428-4366
www.jostchemical.com
Kewpie Corporation
21
+81-3-3486-3338
+81-3-3486-4640
Natreon, Inc.
45
732-296-1080
732-296-1075
www.natreoninc.com
OmniActive Health Technologies
Cov. 4
866-588-3629
877-588-3629
www.omniactives.com
Pharmachem Laboratories
32, 33
800-526-0609
201-246-8105
www.pharmachemlabs.com
Pharmachem Laboratories
57
800-526-0609
201-246-8105
www.phase2info.com/3-phases.html
Polyphenolics
47
559-661-5556
559-661-5630
www.polyphenolics.com
Sabinsa Corp.
Cov. 3
732-777-1111
732-777-1443
www.forslean.com
San Francisco Herb and Natural Food Co.
51
800-227-2830
510-770-9021
www.herbspicetea.com
SanHerb
52
917-887-0262
SoluBlend Technologies
37
Terry Laboratories
49
800-367-2563
Wacker Chemical Corp.
67
517-264-8794
Walter H. Jelly Ltd.
42
847-455-4235
847-455-4315
www.walterjelly.com
Welch, Holme & Clark
69
973-465-1200
973-465-7332
www.welch-home-clark.com
July/August 2011
www.brunswicklabs.com
www.flavex.com
www.kewpie.co.jp/english/fc
www.sanherb.com
321-242-0625
www.terrylabs.com www.wacker.com/food
www.nutraceuticalsworld.com
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Nutraceuticals Multiverse A quirky account of what could/may be happening in parallel universes/dimensions.
Setting: Multiverse Hall of Truth, Corporate Rotunda, ZR1.29.da, 8 September 2011. Persephone Menthali, Chief Justice, Supreme Corporate Court: “Good afternoon ladies and gentlemen. In returning from this Court’s morning session—an enervating one at that—we now enter into
The Ethos of ‘Ethics’ What if consumers were able to query nutraceutical industry executives— and the executives were ‘inspired’ to tell the truth?
By Anthony Almada
Anthony L. Almada, BSc, MSc, FISSN, is the president and CEO of GENr8, Inc., an innovator/marketer of evidence-based performance nutrition products, and of Fein Innovations, LLC, an innovator/marketer of taste-free caffeine food products. He has worked throughout the entire value chain in the nutrition industry since 1975. Mr. Almada can be reached at 32565 B Golden Lantern, PMB 477, Dana Point, CA 92629; 949-218-9779; E-mail:
[email protected]; Websites: GENr8speed.com; GetFein.com 74 • Nutraceuticals World
the consumer questions session. Mr. Dalton, would you please return to the stand…and may I remind you that you are still under oath.” Gerard Dalton, CEO of Nutriverse Sciences, Inc.: [Dalton approaches the stand and sits down].“Yes, Madam Chief Justice—I am cognizant that I am still under oath.” Chief Justice Menthali: “Thank you, Mr. Dalton. Is the first consumer representative ready to commence with questioning? Please state your name and occupation, and then you may proceed with your questions to Mr. Dalton.” First Consumer Representative: “Thank you, Madam Chief Justice. My name is Siobhan Walsh, and I am the director of Analytical Chemistry for VersOmix Foods. Mr. Dalton, as an analytical chemist with 24 years of experience, as a former elite athlete, and as a mother and wife, I was appalled to learn of your company’s practices, all under the façade of being ‘certified GMP’ and ‘Science First,’ one of your brand’s taglines. “I had hoped that the horrific events surrounding the melamine scandal on Earth in this century’s first decade would have deterred any company from engaging in economic adulteration on such a large scale, let alone any scale. You authorized the addition of the amino acids taurine and glycine into your company’s protein-containing products, especially those containwww.nutraceuticalsworld.com
ing whey protein. “To the casual or less scrutinizing consumer this seems innocuous, as both of these amino acids are naturally occurring and found in a variety of protein-rich foods. However, the intent was to reduce the amount of actual protein used in your formulations. As the standard test of protein content measures not the quantities of each amino acid but the total amount of nitrogen—an element found in all amino acids and other non-amino acid chemicals, like melamine—the certificates of analyses for each lot of your products met their specifications.Yet you duped your consumers, your ethics-driven employees and your business partners. Two days ago we found out that your corporation’s profitability increased by 14%, and your sales of protein products skyrocketed by 112% last year—no doubt due to the price reductions you implemented, and which your competition could not sustainably match. I don’t care to know how you fell asleep at night. I simply want to know—WE want to know—WHY did you sanction this practice?” Mr. Dalton: “Ms. Walsh…I knew my approval of this practice was wrong. I knew it was unlawful. I knew it was ethically depraved. We were losing market share. Sales of our flagship products, which use a lot of whey protein—were falling sharply in response to sharply rising prices of whey protein. I was desperate, so I availed my bachelors degree in nutrition science and devised this idea. It actually evolved from the melamine scandal on Earth—as you alluded to—but I wondered what could be added to protein that would “analyze out” as protein but also be safe. Taurine and glycine are dirt cheap—about one-quarter to one-fifth the cost of whey protein concentrate and isolate. I never wanted to hurt anyone. The answer to your question, ‘WHY?’ I had intended to do this for no more than three quarters, and I never thought we would get caught. I NW thought we were smarter…” July/August 2011
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