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Description: In This Issue: Washington & The Natural Industry, Financial Concepts, Sports Nutrition, and SupplySide West Booth Preview

SU A VRM Media Publication P SE BO PLY E U OT SID S A H E T 5 W 60 EST www.niemagazine.com October 2015 Go to www.niemagazine.com sabinsa for info about this advertiser Go to www.niemagazine.com healthco for info about this advertiser TableofContents Proud Supporter of VOLUME 20 NO. 8 OCTOBER2015 F E A T U R E S 28 Washington and the Natural Industry Well-tended friendships education and vigilant attention from the natural industry make for good relations inside the Beltway. 36 Free-from Demand Research and vision for the perfect non-allergenic ingredients are answering consumers call for free from products. 42 Sports Nutrition A L S O I N S I D E Manufacturers and suppliers are targeting emerging markets in this category. 12 20 22 24 26 58 62 63 63 64 Industry News Ingredient News Association News Science Update Conventions & Meetings SupplySide West Booth Preview Equipment & Packaging Advertiser Index Industry Events Supplier of the Month C O L U M N S 4 First Word 8 Legalities 52 Production Line NEW N M COLU 54 Financial Concepts 56 Nutraceuticals FREE Subscription (Print Digital or BOTH) & E-newsletter Available www.NieMagazine.com Copyright 2015. Nutrition Industry Executive (ISSN 2331-2602) Volume 20 Number 8 October 2015. Nutrition Industry Executive is published monthly (except for bimonthly January February and July August and November December) by Vitamin Retailer Magazine Inc. 431 Cranbury Road Suite C East Brunswick NJ 08816 USA Phone (732) 432-9600 Fax (732) 432-9288. All rights reserved including the right to reproduce in whole or in part. Not responsible for unsolicited material. Opinions expressed in by-lined articles or advertisements are not necessarily those of Nutrition Industry Executive or its owners. Publisher is not liable for advertiser product claims or representations. Advertisers assume total responsibility for the contents of their advertisements. Printed in U.S.A. Basic annual subscription rate is 50.00. Application to Mail at Periodicals Postage Prices is Pending at East Brunswick NJ 08816 and additional mailing offices. POSTMASTER Send address changes to Nutrition Industry Executive P.O. Box 15026 North Hollywood CA 91615-5026. Subscription Customer Service Nutrition Industry Executive P.O. Box 15026 North Hollywood CA 91615-5026 USA Phone (818) 286-3170 Fax (800) 869-0040 niecs magserv.com www.niemagazine.com. Back Issues & Single Copies For order information contact (732) 432-9600 or info niemagazine.com. March issue is 25.00. All other issues are 8.00 each. 2 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 Go to www.niemagazine.com plt for info about this advertiser FirstWord Clear Statements on Nutritional Needs y 85-year-old mother recently broke her left hip. During a follow-up appointment with her orthopedic surgeon calcium supplements were mentioned. Being involved in the supplement industry I was compelled to quiz the doctor and nurse practitioner about the reports on calcium supplements association with heart attacks. Those reports were a scam the nurse practitioner stressed explaining that she believed any risk to heart health was extremely small and that my mother should most definitely supplement as well as add more calciumrich foods to her diet. I was grateful for this response and the practitioners ability to offer clear advice and to cut through the chaff. There are plenty more examples of gray areas being created about the benefits of supplementation that are not being taken lightly. In September Tieraona Low Dog MD presented data from the Centers on Disease Control and Prevention (CDC) to congressional staffers at an educational briefing Life Fortified A Physician s Case for Dietary Supplements held by the Congressional Dietary Supplement Caucus (DSC). This was in cooperation with leading trade associations representing the dietary supplement industry--the American Herbal Products Association (AHPA) Consumer Healthcare Products Association (CHPA) Council for Responsible Nutrition (CRN) Natural Products Association (NPA) and the United Natural Products Alliance (UNPA) that jointly issued a press release. The CDC data showed that tens of millions of Americans aren t getting enough essential nutrients to ensure their bodies function optimally a stark contrast to headlines and sound bites that assert Americans get the nutrients they need from food alone. Low Dog highlighted that nearly 90 million Americans have a vitamin D deficiency Publisher Daniel McSweeney Editorial Director DanM VRMmedia.com Associate Russ Fields Publisher RussF VRMmedia.com Advertising Roy Kieffer Sales Manager RoyK VRMmedia.com Advertising Gary Pfaff Sales Associate GaryP VRMmedia.com Editor-in-Chief Janet Poveromo JanetP VRMmedia.com M 30 million Americans are deficient in vitamin B6 18 million Americans are deficient in vitamin B12 and nearly 16 million Americans have a vitamin C deficiency. I m extremely concerned when I hear misleading sound bites on the evening news that people don t need vitamins because they get all the nutrients they need from their diet because it isn t just patients who hear this doctors also hear it repeatedly Low Dog said. This mantra that Americans get all the nutrients they need from food is simply not true and the data demonstrates it is false. It is much harder than you think to get the nutrients you need from food alone. Low Dog illustrated this point by outlining what the average person would need to eat in order to get the minimum recommended amount of many individual nutrients. For example in order to get the recommended 18 milligrams of iron per day through food you d need to eat four cups of raisins 15 cups of broccoli three cups of cooked spinach 10 ounces of beef liver or 45 ounces of chicken breast. She noted that meeting the minimum amount of nutrition is especially difficult for lowincome Americans who can use the Supplemental Nutrition Assistance Program (SNAP) to purchase candy and soda but not multivitamins. Low Dog concluded that a thoughtful coordinated approach between industry and public health initiatives is required to address the many complex factors like lower nutrient content in today s foods and unintended consequences of well-intentioned health campaigns to avoid certain nutrientrich foods like egg yolks that contribute to Americans vitamin and mineral deficiencies she said. With health conscious consumers now focusing on living healthier lifestyles and questioning even long-held nutritional beliefs (e.g. cow s milk) boldly clearing the gray areas about the benefits of supplementation should continue to be prioritized. Managing Editor Shari Barbanel ShariB VRMmedia.com Assistant Editor Corinne Anderson CorinneA VRMmedia.com Contributing Writers Jeanne Cullen Esq. Jackie Fishman Barbara M. Schmidt PhD Lisa Schofield Risa Schulman PhD Art Director Robert Certo Production Manager RobertC VRMmedia.com Production Assistant Bryan Zak Graphic Designer BryanZ VRMmedia.com Circulation Manager Rosie Brodsky Rosie StarkServices.com A PUBLICATION OF VRM MEDIA President Daniel McSweeney VRM Media 431 Cranbury Road Ste. C East Brunswick NJ 08816 Phone (732) 432-9600 Fax (732) 432-9288 Email info VRMmedia.com Website www.niemagazine.com VRM Media publishes Nutrition Industry Executive Vitamin Retailer Gluten Free Retailer Natural Practitioner and FitnessTrainer magazines. Subscription Customer Service To order a subscription or manage your account please contact us at Nutrition Industry Executive P.O. Box 15026 North Hollywood CA 91615-5026 USA Phone (818) 286-3170 Fax (800) 869-0040 niecs magserv.com www.niemagazine.com Back Issues See the Table of Contents page for price and order information. Connect With Us www.twitter.com www.facebook.com www.linkedin.com www.instagram.com www.pinterest.com vitaminretailer vitaminretailermagazine company vrm-media vitaminretailermagazine vrm_media 4 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 Go to www.niemagazine.com jiaherb for info about this advertiser Go to www.niemagazine.com drvita for info about this advertiser Legalities Labeling Claims and Class Action Lawsuits Part 2 Avoiding Litigation By Jeanne Cullen Esq. A long with the growing demand for and attention to product ingredients many consumer product manufacturers and retailers continue to be under a growing attack from class actions and other investigations involving their product labels advertising campaigns and websites. This is particularly true for those manufacturers and retailers in the food and beverage and supplement industries. This growing attention translates into increased scrutiny and subsequent actions from many sources including the government and state attorneys general regulators from the FDA (U.S. Food & Drug Administration) and FTC (Federal Trade Commission) consumer protection advocacy groups and plaintiffs class action attorneys. These actions while historically predominantly filed in the state of California have recently been much more prevalent in other states as well including New York New Jersey Florida Illinois and Missouri among others. While the defense continues to successfully repel these claims new targets including supplement manufacturers find themselves a growing target by 8 Nutrition Industry Executive plaintiffs in many of the same attacks drawn from plaintiffs playbooks against food and beverage manufacturers. Given the history on these claims there are many tips and best practices manufacturers and retailers can learn from in mitigating potential exposure for new class actions or other litigation regarding their product labels advertising campaigns and websites. They do this in many ways like by keeping in touch with their members through monthly newsletters updates and reports. Participating at industry conferences is also a quick way to get exposed to and educated on many of the current issues. Conduct Consumer Surveys and Monitor Social Media Although it is critical to understand and follow FDA and FTC regulations and to be educated on how the issues are being litigated in various jurisdictions at the end of the day your claims will be judged against what a reasonable consumer would believe is not false and misleading--and that may be changing. So keep in tune with your consumers by monitoring and responding to consumer complaints and social media posts. Engage in social media and adjust your product s messaging accordingly. Monitoring consumer advocacy group websites and NGOs (non-governmental organizations) such as the CSPI CU and CFS could be helpful as well in identifying what the issues are likely to be. Likewise monitoring popular bloggers may also shed light on current or www.niemagazine.com October 2015 Be Aware of the Legal Trends and Get Educated on the Issues Under Attack Nowadays there are many resources for learning about the current trends and issues consumer products manufacturers are facing. (See Legalities Part 1 in NIE s September issue.) In addition to reading about the issues from many sources there are many informative conferences hosted by various organizations and trade associations such as the Grocery Manufacturers Association (GMA) or the American Herbal Products Association (AHPA) among others aimed at educating and training many in the industry on how to avoid some of the trending pitfalls with their labels packaging and advertising. Celebrating 20 Years of Excellence 1995-2015 Go to www.niemagazine.com alkemistlabs for info about this advertiser Legalities future consumer perception to labeling and advertising issues. Review Your Labels Promotional Materials and Website Regularly Invest early in having your labels packaging promotional materials or websites reviewed. During that process use FDA and DSHEA (Dietary Supplement Health and Education Act of 1994) as a starting point only. Compare your statements not only to regulations and regulatory guidance but also to recent trends occurring in national litigation. Remember that in addition to being judged against regulations your claims will be judged against whether a reasonable consumer would find it to be false and misleading and consumer perception may be changing in this highly volatile environment where consumers are paying attention to food products more now than ever. Specifically when analyzing packaging content ensure all facts regarding nutrition labeling is not only truthful and substantiated but also that it is placed conspicuously on the packaging. A proper review is not limited to the product label alone but also incorporates statements on the website and other advertising and promotional marketing of the products. Important information that clarifies a claim must be clearly and prominently disclosed. Consider placement and prominence with clarity in the messaging. Qualifying information must be clear and prominent so consumers are not misled. Advertisers are responsible for express and implied claims reasonably conveyed by promotional materials. The same rules also apply to digital media. A lack of online real estate does not excuse inadequate disclosure. This is especially true when using links and although linking can be adequate the link must be obvious clearly labeled and placed as close as possible to the qualified information. The adequacy of the disclosure should be in connection with the relevant medium and important disclosure information should be prominent in the body of the ad. ated. Monitor your suppliers and know where your ingredients are sourced. Consider requiring and seeking thirdparty certifications for each of your product s ingredients or components. Additionally you must have a reasonable basis to support each expressed and implied claim reasonably conveyed by promotional materials. It is also required that you have at least the level of substantiation referenced in the ad or on your product label e.g. studies show consumers prefer. Spell out your intended and supported message then ensure that you have qualified support for such messages. Then examine whether the message to your consumers is true not misleading and substantiated in the overall context of the product s marketing and labeling. waiver of consumer class actions. By making a class action waiver part of the bargain for sale matters of dispute with consumers can be more easily managed and cost predictable through arbitration. Review Update and Expand Your Insurance Coverage Given the wide range of losses that can arise from an action involving your packaging labeling and advertising campaigns manufacturers should beware of the breadth of coverage provided by their different policies and seek professional advice interpreting policy exclusions and definitions. Sometimes a party s D&O (directors & officers) coverage may provide coverage for the company as well. Even if it is determined that your applicable insurance does not provide the proper coverage for the action at hand discuss additional coverage with an adviser to get coverage in place for future potential losses. A proper review is not limited to the product label alone but also incorporates statements on the website and other advertising and promotional marketing of the products. Consider the Value of Your Claims to Your Consumers Compared to the Risk After careful consideration is given to the truthfulness and substantiation of a particular claim the right decision for your brand may still be to remove the statements altogether for the simple and sole reason of eliminating potential litigation risk. The timing of the removal of targeted statements may also be important when considering individual state s catalyst theories which may allow for the award of plaintiff s attorneys fees for being the catalyst for the defendant s change in actions (like its removal of the targeted statement). Keep Open Communications With Your Opposing Counsel Strategically decide when and what to share with plaintiff s lawyers early in the lawsuit to demonstrate to plaintiff s lawyers the weaknesses in their claims. A good opposing counsel should appreciate the hurdles they face in class certification and in proving their claims and should be open to try and resolve the matter early. There are many ways manufacturers and retailers can mitigate their risks and reduce potential litigation exposure involving their product labeling and advertising. A careful and strategic approach using these recommendations can be the key to avoiding future litigation. NIE Jeanne Cullen is a partner in the commercial litigation and product liability groups in the Chicago office of Perkins Coie LLP where her practice focuses on alleged false labeling litigation alleged breach of contract and other UCC issues and labeling and advertising counseling concerning retail and consumer products. She is also a member of the firm s retail & consumer products food & beverage and advertising marketing & promotions groups. www.niemagazine.com October 2015 Ensure That Your Statements Are Well Substantiated Remember that objective claims must be true not misleading and substanti10 Nutrition Industry Executive Review and Revise Your Terms and Conditions with Consumers For those sales directly with consumers include in the terms of use language in the arbitration clauses a Celebrating 20 Years of Excellence 1995-2015 Go to www.niemagazine.com bergstrom for info about this advertiser IndustryNews NYAG Targets Devil s Claw Supplements Industry Responds n September 9 New York Attorney General (NYAG) Eric Schneiderman sent cease-anddesist letters to 13 companies that sell devil s claw herbal dietary supplements informing them that their products containing devil s claw material were tested at the New York Botanical Garden using DNA technology. The results showed that the devil s claw was a different botanical species than what was labeled and what the NYAG termed a less desirable species of the herb. According to the American Botanical Council (ABC) in botanical classification and nomenclature devil s claw is usually known scientifically by its Latin name Harpagophytum procumbens where Harpagophytum is the genus of the plant and procumbens refers to the species of the plant. The DNA-barcoding tests commissioned by the NYAG showed that some herbal supplements actually contain Harpagophytum zeyheri a slightly different form of devil s claw i.e. a different but very closely related species. In effect they are like two siblings. Both species of devil s claw have a similar chemical profile said Thomas Brendler a medicinal plant expert and editor of the African Herbal Pharmacopeia a compilation of technical information of various African medicinal plants including their O botany growing conditions range of habitat chemistry and traditional and modern medicinal activities and uses. Brendler noted that while both species differ marginally in shape and chemical composition both are considered equally effective. We sincerely appreciate Attorney General Schneiderman s interest in the quality of herbal materials sold in dietary supplements and his apparent desire to help consumers maintain access to high-quality safe and effective herbal products said Mark Blumenthal founder and executive director of ABC. We here at ABC have a similar mission as evidenced by our longtime efforts in the ABC-AHP-NCNPR Botanical Adulterants Program in which we have been working on educating industry and all relevant stake- holders about quality issues in the global herbal market he continued. However splitting the devil s claw genus in the very narrow way that they have done in this investigation is akin to splitting hairs--it has no real meaning or value to anyone particularly the herb consumer. Supply chain integrity is of the utmost importance to the dietary supplement industry. There are multiple ways to qualify the supply chain to identify ingredients and to detect adulterants in products. The companies involved should be permitted to defend their methods of ingredient testing and to justify their use of particular species of botanicals before being declared to be misbranded or adulterated by the New York attorney general said Steve Mister president and CEO of the Council for Responsible Nutrition (CRN) in a statement. The federal law for dietary supplements requires that what s in the bottle is on the label. Proper identification of ingredients is a requirement of federal law and we expect all companies to stand behind the quality of their products Mister continued. As we have seen before investigations by the New York attorney general s office are rarely as clear-cut as they might seem. For more information visit www.herbalgram.org or www.crnusa.org. Industry Trades Request FDA to Create Separate Office of Dietary Supplements he Natural Products Association (NPA) along with the Council for Responsible Nutrition (CRN) Consumer Healthcare Products Association (CHPA) and the United Natural Products Alliance (UNPA) have called on the U.S. Food and Drug Administration (FDA) to elevate their Division of Dietary Supplement Programs (DDSP) in the Center for T Food Safety and Applied Nutrition to an Office. DDSP is the science and policy division created after DSHEA to handle enforcement decisions for the 35plus billion dollar dietary supplement industry as well as products illegally masquerading as dietary supplements. The aforementioned trade associations support FDA s move to elevate the division to a separate office in order to prioritize the effective regulation of dietary supplements and enforce against tainted products and those with hidden ingredients. To view the joint letter to FDA visit www.npainfo.org app_themes npa docs regulatorylegislative fda dst atofda_ddsptooffice_final.pdf. 12 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 Vitatech Announces Sale of Nutritional Products Manufacturing Business itatech Nutritional Sciences Inc. (Tustin CA) has announced the sale of its nutritional products manufacturing business to Kingdomway USA LLC. Kingdomway USA is a wholly owned subsidiary of the world s largest manufacturer of coenzyme Q10 and other commonly used raw materials. The new company will be named Vit-Best Nutrition Inc. and will offer all of the products and services for which Vitatech is known including powders two-piece capsules tablets capsule banding enteric coating custom coating full range packing services and product formulation. V Vit-Best will be led by Gale Bensussen who assumed the role on September 8 as both CEO and president. Bensussen brings extensive nutritional supplement manufacturing experience to the firm. Thomas Tierney Vitatech s founding president and CEO will serve as a senior advisor to Vit-Best. All other members of Vitatech s management and staff will remain at Vit-Best in their current roles. Vit-Best will continue to manufacture from Vitatech s pharmaceutically licensed cGMP (current good manufacturing practice) facility in Tustin. As a contract manufacturer VitBest will remain intensely focused on providing the highest quality nutritional and dietary supplements as we move forward in the global market for nutritional products Bensussen said. This of course means that we will continue to only use pure top-quality ingredients with our inhouse analytical laboratory monitoring every stage of production to ensure the integrity of all processes and products. For more information visit www.vitatech.com. Go to www.niemagazine.com jtnaturals for info about this advertiser October 2015 www.niemagazine.com Celebrating 20 Years of Excellence 1995-2015 Nutrition Industry Executive 13 IndustryNews Herbal Dietary Supplement Sales in U.S. Rise 6.8 Percent in 2014 ales of herbal dietary supplements in the U.S. increased by 6.8 percent in 2014 reaching an estimated total of more than 6.4 billion. These statistics and other herbal sales figures are included in a new market report published in HerbalGram the peer-reviewed quarterly journal of the nonprofit American Botanical Council (ABC). Sales in the mainstream market channel--which includes retail outlets such as S food drug and mass-market stores plus club and convenience stores--continued to grow increasing an estimated 2.1 percent over 2013 sales while sales in natural and health food stores rose by a stronger estimated growth of 5.2 percent. 2014 marks the 11th consecutive year of increased herbal supplements sales according to data from previous HerbalGram herb market reports. Consumers continue to demonstrate Go to www.niemagazine.com nutraceutix for info about this advertiser 14 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 their interest and confidence in botanical dietary supplements for a wide variety of health reasons said Mark Blumenthal founder and executive director of ABC and editor-in-chief of HerbalGram. The annual HerbalGram herb market report is based on herbal supplement sales statistics from the Nutrition Business Journal (NBJ) and market research firms SPINS and IRI. The report covers only retail sales of herbal dietary supplements and does not reflect the sales of most herbal teas botanical ingredients used in natural cosmetics or government-approved herbal drug ingredients in over-the-counter medicines. In the mainstream multi-outlet channel SPINS IRI reported total sales of about 802.3 million for botanical dietary supplements in 2014--an increase of 2.1 percent over 2013 sales. NBJ--which includes convenience store data in its mass-market channel--estimated slightly higher sales of 1.12 billion. According to SPINS IRI the top-selling herbal supplements as coded by primary ingredient in the mainstream multioutlet channel in 2014 were horehound (Marrubium vulgare) a key ingredient in throat lozenges cranberry (Vaccinium macrocarpon) popular primarily for its claimed benefit of helping maintain urinary tract health echinacea (Echinacea spp.) for use during cold and flu season black cohosh (Actaea racemosa) a popular aid to manage menopausal symptoms and flax or flaxseed oil (Linum usitatissimum) a source of plant-based omega-3 fatty acids used in the management of a variety of conditions. SPINS calculated sales of botanical dietary supplements in natural and health food stores to be over 330 million an increase of 5.2 percent over 2013 sales in this channel. The SPINS figure does not include sales from the U.S. s largest natural foods chain store Whole Foods Market. The five top-selling herbal supplements of 2014 in the natural channel as coded by primary ingredient according to SPINS were turmeric (Curcuma longa) and extracts standardized to curcumin wheatgrass and barley grass (Triticum aestivum and Hordeum vulgare respectively) flaxseed and or flax oil aloe vera and spirulina blue-green algae (Arthrospira spp.). Turmeric showed a significant 30.9 percent increase in sales in 2014 continuing its rise in popularity from 2013. For more information visit www.herbalgram.org. www.niemagazine.com October 2015 AHPA Endorses Craft Beverage Act to Support Kombucha Trade he American Herbal Products Association (AHPA) has endorsed the Craft Beverage Modernization and Tax Reform Act (S.1562 and H.R. 2903) legislation that would reduce excise taxes compliance burdens and regulations for small beer wine cider and distilled spirit producers including certain kombucha manufacturers. Kombucha is a fermented beverage that usually contains a small amount of alcohol that is naturally produced by traditional manufacturing processes. When kombucha contains 0.5 percent alcohol or more by volume at any time it comes under the jurisdiction of regulations of the U.S. Treasury s Alcohol and Tobacco Tax and Trade Bureau (TTB). T Exempt beverage producers from complex capitalization rules for aged products and level the playing field between U.S. businesses and their international competitors Expand TTB program integrity funding to crack down on tax cheats while providing additional funding for TTB regulatory functions and label approvals Expand current TTB information sharing to all excise taxes administered by U.S. Customs and Border Protection (CBP) The bill was introduced in the U.S. Senate by Senator Ron Wyden (D-OR) and in the House of Representatives by Representative Erik Paulsen (R-MN). The legislation builds on a number of popular proposals to revise current law. It is strongly supported by many industry groups and lawmakers on both sides of the aisle. For more information visit www.ahpa.org. The specific classification of a kombucha product under federal alcoholic beverage law is made by TTB on a case-by-case basis depending on the formulation and method of production. But irrespective of TTB s classification the Craft Beverage Modernization and Tax Reform Act could benefit all manufacturers and marketers of kombucha products that contain over 0.5 percent alcohol because it will reduce excise taxes compliance burdens and regulations for brewers cider makers vintners and distillers. The legislation would benefit all producers but is designed to provide greater financial and regulatory relief for smaller volume companies. Among other provisions the bill would Reduce excise taxes for beer wine cider and distilled spirit producers Simplify formulation and label approvals by exempting common ingredients from lengthy TTB approval process Increase collaboration between brewers by removing restrictions on tax-free transfers and repealing unnecessary inventory restrictions Go to www.niemagazine.com fenchem for info about this advertiser October 2015 www.niemagazine.com Celebrating 20 Years of Excellence 1995-2015 Nutrition Industry Executive 15 IndustryNews ADM Names New Leaders of Wild Flavors Specialty Commodities Businesses rcher Daniels Midland Company (ADM Chicago IL) recently named Kenneth Campbell president of the company s WILD Flavors business and named Manda Tweten president of the company s Specialty Commodities business (SCI). Campbell who most recently served as president of ADM s Specialty Commodities business brings 18 years of experience with ADM to his new role having previously served as ADM s vice president North American Oilseeds where he oversaw the company s softseed commercial and processing teams. Earlier he held various commercial leadership roles in risk management and operations at A ADM Oilseeds facilities in Mankato Minnesota and Frankfort IN. He will be based at the WILD Flavors campus in Erlanger KY. Tweten joined ADM with its acquisition of WILD Flavors in 2014 and served as vice president sales North America prior to being named to her new role. She brings more than 16 years experience with some of the world s leading food flavor and agribusiness companies to the position. ADM s Specialty Commodities business is based in Fargo ND. In Ken and Manda ADM is tapping two leaders with exceptional track records for expanding and deepening customer relationships said Vince Macciocchi president WILD Flavors and Specialty Ingredients business unit. They recognize that our food-industry customers are seeking a true partner to help them anticipate and respond to changing consumer tastes and that ADM--with our broad ingredient portfolio global footprint and decades-long legacy of food innovation--is well-positioned to play this role. I am confident that their deep industry knowledge experience building strong teams and focus on innovation and customer excellence will serve our food-industry customers very well Macciocchi added. For more information visit www.adm.com. Go to www.niemagazine.com apl for info about this advertiser 16 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 Go to www.niemagazine.com lycored for info about this advertiser IndustryNews NattoPharma Research Network Receives 2.9M Euro Grant attoPharma (Oslo Norway and Metuchen NJ) is participating in an International Research Network coordinated by Queen Mary University of London (U.K.) that has been awarded with a 2.9-million euro grant from European Commission s research program Horizon 2020-MSCA-ITN. Other partners of the network are four highly ranked research university departments in Europe (University of Maastricht University College Dublin [part of the national University of Ireland] Ludvig-MaximiliansUniversitaet Muenchen and Karolinske Institutet in Stockholm) and the independent life science medical research charity in the U.K. the Medical Research Council Technology. The grant NattoPharma is participating in is called EVOLuTION (European Vascular Interventions and Therapeutic Innovation Network) and the N money will be utilized to train the next generation of entrepreneurial scientists within this scope. According to Horizon 2020 a staggering amount of research program applications were received and each application was evaluated by a panel of experts within the relevant field of research with the highest possible score being 100 percent. The EVOLuTION application received 95.6 percent of maximum 100 percent one of the highest scores for all applications received by the commission. Since 2004 NattoPharma has worked in close relation with the Maastricht University in documenting benefits of menaquinone-7 the company s exclusive vitamin K2 branded as MenaQ7. The Horizon 2020 grant will fund two full-time persons at the University of Maastricht for the next three years focus- ing on characterization and documentation of new biological aspects and effects of MenaQ7. The Horizon 2020 research grant is one of the most prestigious grants in Europe. The successful grant assignment and the opportunity to allocate highly qualified researchers to further work on vitamin K research is a great recognition of the MenaQ7 platform by this collaboration so far said Associate Professor Leon Schurgers at CARIM Maastricht University the main contact between NattoPharma the University and Horizon 2020. I have great expectations for potential new and exciting observations that will arise from our mutual efforts--identifying even more positive health benefits of MenaQ7. For more information visit www.nattopharma.com. Robinson Pharma Completes Commercialization for Vegetarian Soft Gel Production R obinson Pharma Inc. (Santa Ana CA) has completed commercialization requirements for vegetarian soft gel production and is now fulfilling orders. This starch and carrageenan vegetarian gel matrix is a result of proprietary engineering techniques that have led to the creation of a stable vegetarian supplement. Vegetarian soft gels comply with growing consumer demand for animal-free supplements. Vegetarian soft gel capabilities were previously implemented into Robinson Pharma s varied portfolio of dosage forms for manufacturing back in early May 2015 as part of an ongoing commitment to supporting clients in their various marketing and brand image needs. After many successful trial runs involving vegetarian soft gels to test product and process robustness Robinson Pharma is now offering commercial batches to current and new clientele. Vegetarian soft gels pack numerous advantages over traditional animal gelatin soft gels. They offer premium delivery dissolution superior thermal stability properties and ready-made claims for the vegetarian vegan market as they are free of animal byproducts. Currently Robinson Pharma is incorporating colorants to enhance presentation for client preference and has successfully encapsulated light paste products and ingredients such as Biotin and CoQ10. Pilot batches of vegetarian soft gels containing more complex pastes for multivitamins prenatal vitamins memory support eye health and weight management formulas are being initiated. Vegetarian soft gels by Robinson Pharma are also capable of incorporating numerous oil products for a variety of dietary supplement projects including vitamin E flaxseed oil CLA and coconut oil--all of which are vegetarian compliant. Stability testing for vegetarian soft gel products is currently in effect. For more information visit www.robinsonpharma.com. You reHired BENEO (Morris Plains NJ) has announced that Andreas Herber has been named a new member of the Andreas executive board of Herber directors at BENEO GmbH. Herber will oversee the areas of production and operations new business development as well as nutrition science regulatory affairs and food application (BENEO-Institute and BENEOTechnology Center). He will also be responsible for corporate communications human resources and IT. Package All Corp Opens Arizona Distribution Center ackage All Corp. headquartered in Bayport NY has expanded its Western operation by opening a new distribution center in Casa Grande AZ. The 45 000square-foot facility boasts an expansive packaging inventory for the OTC (over-the-counter) pharmaceutical and nutraceutical industries joining Package All distribution centers in California Florida and New York. The Arizona location will exclusively serve the Southwestern territory. P We ve had tremendous success over the past 31 years and we continue to see potential for more growth said Phil Padgett Package All president and CEO. This new Distribution Center allows us to build the market promote the Package All brand and provide the Southwestern Region with the high level of service that Package All is known for. The Arizona location is fully staffed with a warehouse and logistics team offering delivery to the Phoenix and Metropolitan areas as well Celebrating 20 Years of Excellence 1995-2015 as dedicated customer service representatives. Regional Sales Manager Dean Coon manages the facility. We have always been committed to our long-time customers and the opening of this Distribution Center was a direct response to their needs. We re excited about expanding our global presence remarked Sophia Ibarra vice president Western region. For more information visit www.packageall.com. www.niemagazine.com October 2015 18 Nutrition Industry Executive Go to www.niemagazine.com naxa for info about this advertiser IngredientNews XPI Supplements Introduces Alpha-Focus With Cognizin PI Supplements (Provo UT) has created Alpha-Focus with New York-based Kyowa Hakko USA s Cognizin Citicoline and a variety of other ingredients that may help improve brain function. Alpha-Focus leverages Cognizin with ingredients such as Vinpocetine which increases blood flow to the brain and X Huperzine-A which prevents break down of acetylcholine a compound critical for learning and memory concentration. XPI Supplements is a sports and health supplement company and provides a wide range of products designed to optimize workout and performance results. The company also aims to enhance overall well-being. Clinical research has shown that citicoline has multiple applications and is able to improve various aspects of the brain s physiological activity the company said. For more information visit www.xpisupplements.com or www.kyowa-usa.com. Study Focuses on MSM s Effects on Knees and Muscle Soreness he University of Memphis Health and Sports Sciences Department presented a scientific poster The Effects of MSM [methylsulfonylmethane] Supplementation on Knee Kinetics During Running Muscle Strength and Muscle Soreness Following Eccentric ExerciseInduced Quadriceps Damage at the 39th Annual Meeting of the American Society of Biomechanics. The study investigated the effects of Washingtonbased company Bergstrom Nutrition s OptiMSM supplementation on knee function (knee joint kinetics) during running along with its effects on muscle soreness after knee-damaging exercises (knee extensor damage). MSM supplementation didn t seem to affect knee joint kinetics after damaging exercise but a portion of the findings suggested that the return to regular training following knee extensor damage could occur quicker with MSM supplementation. The results of this study add further credibility to OptiMSM s potential to possibly aid athletes in their recovery times said Rodney Benjamin director of research and development for Bergstrom Nutrition. For more information visit www.bergstromnutrition.com. Planda Biotechnology Announced New Products With Phytofare landa Biotechnology Inc. an Arizona-based company and producer of the bioavailable Phytofare catechin complex announced that Ultimate Sports Nutrition (USN) is investigating and developing a new line of products for the Australian and New Zealand markets that incorporate Planda s green tea catechin-based Phytofare ingredient. In a previously announced agreement USN committed to using Phytofare catechin complex exclusively in all products manufactured or sold in Europe and South Africa that incorporate green tea. In order to further develop and expand on the existing agreement USN and Planda agreed to explore the uses of Phytofare with other USN contract manufacturers beginning in Australia and New Zealand. USN has really embraced the benefits of phyto-availability in their quest to deliver the absolute best quality products to their customers. Phytofare delivers more of the active ingredients to the blood stream where those ingredients then remain in the system at functional levels much longer than generic supplements said Callum Baylis-Duffield vice president of sales and marketing for Planda . Under the terms of the revised three-year agreement USN has agreed to use Phytofare as the exclusive green-tea ingredient in their manufactured supplements in South Africa and the European Union exchange for guaranteed pricing and availability concessions from Planda . For more information visit www.usn.co.za or www.plandaibiotech.com. T P Hinoman s Vegetable Whole-protein Granted GRAS inoman Ltd. an Israel-based company was granted self-affirmed GRAS (generally recognized as safe) status for its Mankai a vegetable whole-protein ingredient with high nutritional value said the company. The status was endorsed by a third party-appointed panel composed of some of the top food toxicologists in the U.S. the company said. The nutritional composition of the Mankai microgreen ingredient was H determined to be high in protein (45-48 percent) low in fat (7-8 percent) and a carbohydrate content of 24-45 percent. GRAS approval of the Mankai highprotein ingredient is a major step toward Hinoman becoming a key microgreen protein supplier in the U.S. market said Udi Alroy vice president of marketing and business development for Hinoman. Hinoman s proprietary cultivation platform makes Mankai a reliable sustainable food source for Celebrating 20 Years of Excellence 1995-2015 large-scale growth and consumption. Mankai is produced in an advanced hydroponic system that optimizes yield throughout the year the company said the regulated aquaculture platform is highly controlled and operating under remote cultivation management and regulation. This ensures the plant s purity so that Mankai is clean and free from all pesticides and heavy metals. For more information visit www.hinoman.biz. www.niemagazine.com October 2015 20 Nutrition Industry Executive Go to www.niemagazine.com natreon for info about this advertiser IngredientNews Pet Supplements with OxC-beta now Available to U.S. Retailers ivamune Vital Health3 Chews a line of pet supplements from Canada-based Avivagen containing the ingredient OxC-beta is now available to retailers in the U.S. The active ingredient OxC-beta in the Vital Health3 Chews gets to the root of many health concerns regarding pets by supporting the immune system the company said. Fully oxidized beta-carotene compounds occur naturally as carotenoid oxidation products in vegetation but in minute amounts. They have been developed to support companion animal health and for use in the global food V animal market. According to Avivagen it benefits skin mobility joints and digestive health. Vivamune Chews are suitable for pets in all life stages and can be given to dogs and cats as young as six weeks of age. While pets of any age can benefit from Vivamune they are especially suitable for older or aging pets to help support and maintain overall health and promote quality of life Avivagen s website said. We re pleased to now make Vivamune Vital Health3 Chews directly available to retailers said Tracy Gillet marketing manager at Avivagen. Vivamune offers pet owners a new natural option for skin and joint issues providing a healthy alternative to prescription medications or older supplement technologies such as omega fatty acids and glucosamine according to a press release. For more information visit www.avivagen.com. Newtricious Seeks Partners to Market MacuView etherlands-based Newtricious is offering a limited number of partnerships to companies in the nutrition industry interested in marketing its proprietary product MacuView. MacuView is a natural drink powder comprised of egg yolks and dairy and has been studied in five clinical studies for eye health. MacuView was developed for maintiang healthy vision and inhibit the progression of age-related macular degeneration (AMD) the leading cause of blindness in the U.S. The product is based on a patented formulation of egg yolk and dairy N and contains natural ingredients including lutein zeaxanthin and DHA (omega-3). We re very excited about the opportunity to bring MacuView to the U.S. and to partner with companies seeking a clinically validated whole food product for eye health said Jos Nelissen CEO of Newtricious. As whole food products become more popular with consumers MacuView offers an ideal alternative as a whole food 100 percent natural drink that has proven benefits for eye health. Clinical studies completed with MacuView demonstrated improvement in visual acuity increased macular pigment density and assisted in night vision. It has been successfully test marketed in The Netherlands and has received significant positive consumer feedback the company said. MacuView offers consumers a convenient easy-to-use drink with proven benefits for eye health said Nelissen. We re looking forward to developing marketing partnerships in the United States for introducing MacuView. For more information visit www.newtricious.nl en. AssociationNews AHPA Chief Science Officer to Serve on NIST NIH DSQAP Advisory Board merican Herbal Products Association (AHPA) Chief Science Officer Dr. Maged Sharaf has become a member of the Dietary Supplement Laboratory Quality Assurance Program (DSQAP) Advisory Board. DSQAP began in 2007 as a collaboration between the National Institutes of Health (NIH) Office of Dietary Supplements (ODS) and the National Institute of Standards and Technology (NIST) to enable participants to improve the accuracy and precision of their measurements for nutrients marker compounds toxic elements and or pesticides in dietary supplement ingredients and finished products. Federal dietary supplement regula- A tions require manufacturers to evaluate the identity purity and composition of their ingredients and finished products Sharaf said. I m excited to work with the DSQAP program to help manufacturers meet these regulatory requirements efficiently and effectively. Over the past eight years NIST has administered 11 exercises with more than 150 participating laboratories in 22 countries. Participants include academic government and third-party testing laboratories as well as instrument standards and dietary suppleCelebrating 20 Years of Excellence 1995-2015 ment manufacturers. Test samples have been distributed in the areas of nutritional elements toxic elements watersoluble vitamins fat-soluble vitamins fatty acids botanical markers organic contaminants and recently botanical identity. To date DSQAP has produced more than 20 natural-matrix SRMs and analytical methods have been developed for the measurement of citrus alkaloids flavonoids catechins phytosterols xanthines and organic acids. Certificates of analysis for these materials are available at www.nist.gov srm. For more information on previous DSQAP exercises including past reports visit www.nist.gov mml csd organic dsqap.cfm. www.niemagazine.com October 2015 22 Nutrition Industry Executive Go to www.niemagazine.com nutralliance for info about this advertiser ScienceUpdate Effects of Spinach Extract on Satiety Feel Full Curb Cravings A new study found in the Journal of the American College of Nutrition examined how consuming the concentrated extract of thylakoids found in spinach can reduce hunger and cravings. Thylakoids encourage the release of satiety hormones which is beneficial in slowing down fat digestion. The study examined the effect of consuming a single dose of concentrated extract of thylakoids from spinach on satiety food intake lipids and glucose compared to a placebo. Sixty people (30 males and 30 females) classified as overweight or obese took part in a double-blind randomized crossover study. They consumed either the spinach extract or a placebo in random order at least a week apart. Using blood sam- ples their lipid and glucose levels were measured before a normal breakfast followed by a dose of the extract and standard lunch four hours later. After another four hours pizza was served and throughout the interval various blood tests and responses were gathered. The results showed that the spinach extract containing thylakoids increased satiety over a two-hour period compared to a placebo. There were no dif- ferences in plasma lipids and energy intake at dinner but males showed a trend toward decreased energy intake. Thylakoid consumption may influence gender-specific food cravings--in a previous study it was found that in women a reduced urge for sweets was significant after a single dose of the spinach extract and the reduced urge for sweets was sustained throughout the study. The reduction in hunger and the desire for salty food that we saw in this study might make thylakoids particularly useful for people with high blood pressure and associated weight problems summarized article co-author Frank L. Greenway MD. For more information visit www.americancollegeofnutrition.org. Omega-3s May Help Improve Treatment Quality of Life in Cancer Patients dding omega-3 fatty acids to anti-tumor medications may improve treatment response and quality of life for cancer patients according to a new study by researchers at the University Hospitals of Leicester in the United Kingdom. The study published in the OnlineFirst version of the Journal of Parenteral and Enteral Nutrition (JPEN) the research journal of the American Society for Parenteral and A Enteral Nutrition (A.S.P.E.N.) examined 50 patients with advanced pancreatic cancer. Patients were given 1 000 mg of gemcitabine weekly followed by up to 100 g of omega-3 rich lipid emulsion for three weeks followed by a rest week. This was continued for up to six cycles progression unacceptable toxicity patient request or death. The study found evidence of activity in response and disease stabilization rates reduction in liver metastasis volume and improved quality of life scores in this group of patients. While this is the first study to use omega-3 fatty acids with a chemotherapy agent in a cancer setting the researchers believe the results are encouraging enough to warrant further investigation in a randomized phase III trial. For more information visit www.nutritioncare.org. Genetic Study Finds Association Between Reduced Vitamin D and MS Risk G enetic findings support observational evidence that lower vitamin D levels are associated with increased risk of multiple sclerosis (MS) according to a new research article by Brent Richards from McGill University Canada and colleagues published in the journal PLOS Medicine. MS is a debilitating autoimmune disease that affects the nerves in the brain and spinal cord. There is no known cure for multiple sclerosis and it usually presents between the ages of 20 and 40 years. While some observational evidence suggests there may be a link between lower vitamin D levels and MS risk it is difficult to infer a causal relationship because individuals who develop multiple sclerosis in these studies might share another unknown characteristic that increases their risk of MS (this is known as confounding). Using a genetic technique called Mendelian randomization to reduce the 24 Nutrition Industry Executive possibility of confounding the authors examined whether there was an association between genetically reduced vitamin D levels (measured by the level of 25-hydroxyvitamin D the clinical determinant of vitamin D status) and susceptibility to multiple sclerosis among participants in the International Multiple Sclerosis Genetics Consortium study which involves 14 498 people with multiple sclerosis and 24 091 healthy controls. The authors found that a genetic decrease in the natural-log-transformed vitamin D level by one standard deviation was associated with a two-fold increased risk of MS. While the Mendelian randomization approach used by the authors largely avoids the possibility of confounding or reverse causation the reliability of these findings may be limited by some of the assumptions made by the researchers during their analysis. Nevertheless the authors concluded Celebrating 20 Years of Excellence 1995-2015 that genetically lowered vitamin D levels are strongly associated with increased susceptibility to multiple sclerosis. Whether vitamin D sufficiency can delay or prevent multiple sclerosis onset merits further investigation in long-term randomized controlled trials. The authors also noted ongoing randomized controlled trials are currently assessing vitamin D supplementation for the treatment and prevention of multiple sclerosis ... and may therefore provide needed insights into the role of vitamin D supplementation. For more information visit www.plos.org. www.niemagazine.com October 2015 Go to www.niemagazine.com olcott for info about this advertiser Conventions&Meetings Annual AHG Symposium O n October 15-19 at the YMCA of the Rockies in Granby CO The American Herbalists Guild (AHG) will hold the 26th Annual Symposium New Horizons in Clinical Herbalism. The Annual Symposium will host some of the world s leading herbal educators and deliver presentations on a wide range of topics in herbal medicine. The event will feature keynote speaker Ethan Russo who will present The Endocannabinoid System in Health and Disease Herbalism for the Future. The Symposium will also feature more than 40 lectures pre- and post-sympo- sium intensives (ranging from beginner to advanced) open discussion panels and meetings with the leading companies in natural health at the vendor showcase. This year the Annual Symposium will cover a special track of classes addressing chronic disease and herbal therapies. Those who attend four workshops in this track as well as the post-symposium intensive will earn a certificate of completion in Chronic Disease and Herbal Therapies Training. The AHG will continue to award continuing education credits for classes taken at each Annual Symposium all classes are eligible for NCCAOM PDAs. For more information visit www.americanherbalistsguild.com symposium. Keynote Speaker Announced for CRN s Day of Science T he Council for Responsible Nutrition (CRN) announced that Howard D. Sesso ScD MPH associate professor of medicine at Harvard Medical School and associate epidemiologist at Brigham and Women s Hospital will be the keynote speaker at The Workshop CRN s Day of Science on October 21 at the Ritz Carlton Rancho Mirage in Palm Springs CA. The day-long Science Symposium will be held in tandem with The Conference. Sesso is best known to the dietary supplement industry for his clinical trial research on the multivitamin and chronic disease. He will share findings and analysis from his latest research project in this area and into the analyses from Physicians Health Study III. The Workshop will also feature sessions on trends in supplement use nutritional prevention of cognitive decline assessing initiatives on botanical research and interpreting the science on the safety of food ingredients. The evening concludes with a reception for the attendees of the event and The Conference. Registration options include 1.) The Workshop 2.) The Workshop and day one of The Conference 3.) The Workshop and The Conference Package or 4.) The Conference. For more information www.crnusa.org 2015events. Vitafoods Asia 2015 itafoods Asia an event dedicated to the nutraceutical functional food and beverages and dietary supplement industries in Asia welcomed trade professionals to the exhibition and conference at the AsiaWorldExpo in Hong Kong on September 2. The two-day event amassed more than 150 international exhibiting companies providing access to the latest ingredients and raw materials as well as complimentary and paid learning opportunities. The industry is expectant as it congregates here each time and the positive vibe is obvious across the show floor. This year regulatory changes in the region suggest greater prospects in growth for the functional food and supplement markets. Based on the activity we ve seen today the show is reinforcing its status as the preferred platform with the best business and learning opportunities Portfolio Director Chris Lee of Vitafoods Events said. For more information visit www.vitafoodsasia.com. Go to www.niemagazine.com nutritional 26 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 V Go to www.niemagazine.com pinnaclelabs for info about this advertiser Partisanship aside well-tended friendships education and vigilant attention from the natural industry make for good relations inside the Beltway. By Janet Poveromo Introducing the participants Robert Craven CEO FoodState (MegaFood) Robert Craven I t is vital for those in the natural products industry to work with government legislators and regulators to ultimately provide consumers access to safe healthy products. Nutrition Industry Executive magazine discussed the state of affairs with natural product leaders whose goals are to foster and maintain those connections inside Washington. NIE Where does the supplement industry stand with the U.S. government today Craven I think as an industry we re in the process of growing up and as such there are some very real challenges that we need to face head-on in the near future primarily the confusion surrounding our industry in Washington. The biggest threat I can see at the moment is that we are not used to getting really kicked around--after all our industry began out of a very sincere desire to help people. So we as an industry need to adjust to the new norm and do a much better job of explaining ourselves in Washington quickly. Daniel Fabricant Daniel Fabricant PhD Executive Director and CEO Natural Products Association (NPA) Mike Greene Vice President Government Relations Council for Responsible Nutrition (CRN) Mike Greene Risa Schulman PhD President Tap Root Risa Schulman In an uncertain world people are looking for what s real--and we can help them find it by establishing and driving trust and certainty. And not just with consumers but with Washington as well. Greene We re at an interesting time in the industry because as you know DSHEA (Dietary Supplement Health and Education Act) is 21 and we have lots of new friends and new faces that we re working with. Of course Senator Hatch (R-UT) is still here and still a champion of the industry. We re working with Senator Martin Heinreich (DNM) and Tim Scott (R-SC). From my experience with CRN in the past 15 years we re moving in the right direction. We re doing what we can to enhance and fully enforce DSHEA and we re looking toward the future. And I think that s what we re really optimistic about. Fabricant We have to look across all branches of government--legislative executive and judicial. I think we ve got challenges on all three fronts at the same time we ve done a good job www.niemagazine.com October 2015 28 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 of building relationship with the agencies--it s very good. They are listening and working with the industry to correct any problems. With Congress there s been so much turnover that the clock is really ticking. We ve got a lot of work to do to bring people into the fold. It may not be the way it was before. I don t think anyone in Congress is going to be in office for 30 plus years. Senator Harkin was [an ally] and Senator Hatch still is. We may want to focus less about personal interest and more about business interest and how these businesses are in their congressional district and how this industry is part of their constituency. With the judicial side if things don t go right on the other two sides you fight it out in court. There are some pretty significant cases on the table right now. There s Bayer and the federal government s enforcement of cGMPs (current good manufacturing practice). There s a lot of good dialogue at the court level but we have to remain vigilant on all three fronts. Government is changing and the industry is changing so you have to be plugged into those changes on all levels and it s not always easy. NIE Who in Washington can now be listed as allies of the industry Craven There are several trade groups working to make sure our voice is heard in Washington and they re doing a great job bringing folks to the table but one person in particular I ll mention is Congressman Tim Ryan (D-OH) author of The Real Food Revolution. He has a similar viewpoint about the core role that food can play in wellness and I think he could be a very powerful ally to our industry because he thinks the way we do. To me it s not so much about finding someone who will champion supplements as it is finding someone who will champion overall health and wellness and eating right. Fabricant We have some of our old friends still. Obviously Senator Hatch is our greatest champion. Martin Heinreich has been named as potential there. Joe Manchin (D-WV) Senator Alexander (R-TN) and Senator Heller (R-NV) have been very helpful there as well. In the House we ve got a lot--Jared Polis (D-CO) Jason Chaffetz (R-UT) September 2015 www.niemagazine.com Frank Pallone (D-NJ) Erik Paulsen (RMN). That s just to name a few that s not everybody and we re working on some of the new folks and how to bring them into the fold and get them excited about the industry. NIE What are the biggest threats to the industry or DSHEA Craven The biggest threat to our industry and our existing regulatory framework is a lack of trust. We must build trust--with our consumers with the media and with Washington--for continued credibility. What can we do to build trust The issue of self-regulated has been around since DSHEA was crafted in 1994 and that perception persists over 20 years later. So I think we can and need to take this even further. You hear a lot about transparency these days but I think we can be more than transparent we can be transformative--transforming the way we do business and what people see when that curtain is pulled back. This is exactly why we ve implement a few changes at MegaFood recently as part of our Big T Transparency initiative including open access to facilities new product development plans and even audit and testing results. The end goal of all of it is to help people understand what s real what s true and what to believe when it comes to supplements. Schulman We are currently living with the biggest threat to the industry loss of consumer trust. We all know this and there are steps being taken by many bold and courageous individuals and companies to develop transparency and accountability in sourcing and manufacturing. There is however an additional area that is an equal threat to trust and that is efficacy. Developing products and benefit claims that are truly evidence-based is a prerequisite to transparency. If the product doesn t have real efficacy it doesn t matter how and from what it was made. While many companies to their credit strive to be sciencebased fewer have the deep scientific and regulatory know-how and the ability to synthesize the two in order to develop a strong and solid platform for their products. Greene I think the biggest threat right now is probably from industry becoming intransigent--saying that Congress isn t going to do anything or nothing is going to happen in the states. We always have to be vigilant and we have to recognize that there are potential issues that can come about from any corner that could cause problems for the industry the consumer and with the way we re regulated. Our traditional detractors like Senator Durbin (D-IL) and Senator Blumenthal (D-CT) who has joined Sen. Durbin in the past has introduced amendments that focused on dietary supplements but of course we re expecting the reintroduction of the Dietary Supplement Labeling Act (their legislation). That could come in a couple months. In the House of Representatives we saw the retirement of both Henry Waxman (D-CA) and John Dingle (DMI). We haven t had many detractors there in fact I believe this is the result of great education but some of the work we ve done with the Dietary Supplement Caucus is the primary way the trade associations and the industry in general educate Congress. I believe that has had a lot to do with it. We have had great access to representatives we share good information and we do our best to remind everyone on the Hill that dietary supplements are regulated. We re not regulated like drugs but we are regulated. Fabricant Our biggest threat is us and our biggest threat is apathy. I m not a naysayer but I think that most people who were around during DSHEA wouldn t know how to operate now. It s so different. Grass roots are still important and NPA does a lot with grass roots. Politics are so financially driven now--that s really a threat. I think the natural and organic industries don t think they have to operate like other industries do. They think That s for big tobacco. That s for people like big petroleum. It s not for us because we re healthy we re good. That s fine but realize that for every consumer that thinks the industry is good and healthy there s a politician in Washington that says something about this doesn t sit right with me. If we re not constantly in their ear telling our story (and not giving to their campaign) they will say I really have no incentive to help you guys out. Nutrition Industry Executive 29 Celebrating 20 Years of Excellence 1995-2015 NIE What is the biggest misconception about the supplement industry that needs clarification in Washington Craven I would say the biggest misconception about the industry is that it s simple and unregulated. We all know we re a very complex industry and that the tendency for the government and media to oversimplify or paint with a broad brush across the industry is a huge misconception. This oversimplification leads to situations like what we have in New York where the attorney general is skipping the regulatory process and forcing change through investigations and agreements with specific companies or the belief that one DNA test can tell you what s in a botanical. Greene The whole category of regulation probably would have been my response five years ago. But I think Congress pretty much understands it. Now it s more about what DSHEA will do and how it works--the question of whether or not DSHEA has been fully implemented and enforced. I think we all recognize that there needs to be more enforcement of bad actors in the industry and we re looking at how DSHEA is operating--how it s operating 20 years after it s been introduced. Twenty years ago we didn t have the internet. And the internet is a major way in which dietary supplements are sold and information is shared. Twenty years later we re looking at how DSHEA is evolving and what needs to be changed in the future. Fabricant I think the biggest misconception in Washington is that people-- Congress members and their staff-- who don t know the industry read news and they get most of their opinions about the industry from the news. And that s never a good portrayal of any industry. They hear about [problems with] sexual enhancement weight loss and bodybuilding products and that s not the industry at all. Also they think there s no science out there. NIE What is the biggest misconception the industry has about Washington Craven I d say it s that Washington actually cares about supplements. I don t think Washington cares a lick about DSHEA or the broader supplement industry. Of course they care about the bad players and I support them in that but I think we would be well served as an industry to elevate the conversation and make it more emotional by aligning with the broader health and wellness conversation. I firmly believe that our industry is a vital part of the solution to the U.S. health care crisis. If we make an effort to elevate our discussions with Washington to this level and we work to explain how we can provide real solutions to this very real problem I believe we will have more success and build more trust. I m not a fatalist. I believe that if we do it right and walk the walk Washington will come along with us. Greene It s that the industry thinks since Congress is controlled by the Go to www.niemagazine.com generexlabs for info about this advertiser 30 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 Go to www.niemagazine.com certifiednutraceuticals for info about this advertiser discussion on dietary supplements from the agency ... and we really need that dialogue. NIE What about the labeling of GMOs Craven It will be interesting to see where the DARK (deny Americans the right to know) act bill goes now that it s through the House. A governmentbacked non-GMO standard and program though optional may be a path that could work for many companies who want to verify their products are non-GMO. Republicans who are anti-regulations that nothing will happen to dietary supplements in the next couple of years because Republicans are generally probusiness and don t want to see added regulations. I think that we ve got to be vigilant and that we have to keep our eyes open because there are some concerns being raised by folks like the New York attorney general. Fabricant People in the industry think that others like us and we don t have to play the game the same way big tobacco and big petroleum does. That s a huge oversight and a recipe for disaster. If you re not at the table in Washington you re likely on the menu. If we re not giving our time and money they re not going to listen to us. NIE How will food safety legislation impact the natural products industry Craven Foreign supplier verification programs and minimizing intentional adulteration are good for supply chain transparency and are good for building trust. We welcome attempts to make better safer more transparent food. This type of dialogue is probably even more important in the natural products space because our consumers demand it. The FDA s (Food and Drug Administration) FSMA (Food Safety Modernization Act) is an opportunity to rise to the occasion. They are working hard on making sure the legislation is scalable and won t be unfair for the little guys with less capital. FSMA will impact FoodState more so than other companies that don t work directly with farmers. Some folks are already doing a lot of what the legislation calls for but formalizing the regulation will standardize the industry. It s good stuff. Fabricant After the peanut butter incidents the industry needed an overhaul. I think industry has been responsive on comments. One of the things concerning us is that we re going to need clarification from the agency--we have GMPs that are very strong on dietary supplements and the industry and the reputable companies have done a good job on implementing them. But there hasn t been a lot of 32 Nutrition Industry Executive If you re not at the table in Washington you re likely on the menu. If we re not giving our time and money they re not going to listen to us. -- Daniel Fabricant PhD Executive Director and CEO Natural Products Association (NPA) It is a shame that this bill negates the state rights because we see this as a path to driving real change in Washington. At MegaFood we re taking the stance that the bill will pass so we should all be evaluating it and preparing for its impact. We have supported both state initiatives and Just Label It as we are in favor of mandatory labeling efforts. In the end if the consumer is loud enough the right bills will get passed. Fabricant Everybody s looking to the Senate since the bill passed the House for GMOs. It was an overwhelming majority that passed 275 to 150. All eyes are on the Senate and at some point there will be discussion about moving the bill ahead ... it s a wait and see approach. People are starting to see that if the states get involved to require labeling it will be a challenge because we can t have 50 different labels for our products. There s still a lot of split in the industry but having 50 labeling requirements will be really tough for everybody. Celebrating 20 Years of Excellence 1995-2015 NIE How should industry work with regulators to provide safe products to consumers Craven I think we should heighten support of efforts and laws currently in place bringing more awareness through third-party certifications like NSF cGMP. I am in favor of extending cGMP up the supply chain as well however there will be complexities as it relates to farmers and this should be thought through carefully. As a brand that buys directly from farms we don t want to put an unnecessary burden on this portion of the supply chain. We will continue to use our high farmer standards audits and ingredient testing to ensure quality safety and identity from farmers. But for other dietary supplement ingredients no less than cGMP should be required. Additionally I m in favor of hurdles for the bad players and anything that helps our industry build trust with consumers. Unfortunately I feel like these hurdles have to be instituted by a thirdparty trusted entity like the government in order to get past the self-regulated misperception. I haven t thought through all the ramifications or details of how it would be implemented but I would be in favor if the industry came out strong on items like pre-market product registration or a national label ingredient database. Schulman Self-policing could go a long way to raising the image of the industry in regulators eyes. I am talking about an official and gold standard system for certification and assistance. If this could marginalize the 15-20 percent of sellers out there with shoddy and non-compliant products this would also be a big step toward raising our credibility. Greene It comes back down to education and I know it s somewhat boring and pass and it s not active like lobbying. But it s about education and constant vigilance. We do a lot of great things in this industry. We passed DSHEA and then we didn t do anything for the next five years then we passed the serious adverse event reporting law because we believed it was right for our consumers and then nothing gets done for the next couple of years. And then just last year we worked on the Designer Anabolic Steroid Control Act. So we have to be vigilant and we can t rest on our laurels and think nothing s going to www.niemagazine.com October 2015 Go to www.niemagazine.com suanfarma for info about this advertiser happen. We have to do what we can to make sure Congress hears us. We re not going anywhere. We re evolving we re becoming mainstream and we need to behave like a mainstream industry. So I m very excited about the future. Fabricant Follow the law especially if it pertains to labeling and quality. Those are the big-ticket items. I m not saying the FDA is always our friend but engage them both on a headquarters level and on a local level. Know what they re about and let them know what your business is about. Transparency is critical. NIE What steps are associations or other entities taking to help industry work with Washington Craven At FoodState we support virtually all of the major associations and believe they are working hard for our interests in Washington and in the industry. I also think the new Coalition for Supplement Sustainability [trade association] is an important step in collaboratively tackling the challenges facing the industry and to help spread the word about how we can help each other by creating standards that benefit the whole industry. Greene CRN does a fly-in every year. Advocacy is very important to us because our members are the manufacturers and ingredient suppliers in the industry so we want to make sure that Congress knows that our products are made to high-quality standards they re beneficial and they re safe above all else. So when our members come to town they talk about what they do. We encourage our members to interact with their members of Congress during Congressional recess when they re back home in their districts and states and many of our members do that. Fabricant [The NPA] has always prided itself on being the most effective on the Hill. We definitely still are and we brought that back in a short time. We contribute more than anybody does whether it s PACs (political action committees) whether it s direct lobbying whatever it is we re the first ones through the wall when there s a fight. You have to have a watchdog at the gate. We work with Congress work with the regulators and work with the courts to make sure that the industry is getting a fair shake. NIE Other comments Craven I think we re at a point now in this country where people are starting to grasp the concept of overall wellness. People are frustrated with the health care system and they re getting older and the sad truth is that as a country we re just not as healthy as we need to be. The good news is that consumers are more aware than ever thanks to the rise in social media in particular and are increasingly looking for products like dietary supplements organic and fresh foods etc. to help them be healthier. The supplement industry needs to claim its rightful position in this movement. NIE 34 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 Go to www.niemagazine.com dpl-us for info about this advertiser Demand ood allergies are a fact of life for millions of Americans. The ranks of these individuals grow every year as health professionals learn more about allergies and do a better job of isolating and identifying specific types. Although most food allergies cause relatively minor symptoms some can cause severe reactions and can be lifethreatening. Despite research efforts there are no cures. Sufferers must adhere to diets that strictly avoid the food allergens that set off their symptoms. This reality has helped boost the natural foods and nutrition market and spurred research in better-tasting foods that substitute for the allergy-producing ingredients. This industry has leapt to the challenge seeing a new opportunity to enhance the health of its customers while finding new markets in which to expand. 36 Nutrition Industry Executive Free-from One of the most challenging issues with combination products is being able to include therapeutic levels of key ingredients while keeping the daily serving of tablets or capsules to a minimum -- Marci van der Muelen National Sales Manager Nordic Naturals Research and vision for the perfect non-allergenic ingredients are answering consumers call for free from products. By Jackie Fishman F Typical allergy-producing foods include milk eggs peanuts tree nuts such as almonds walnuts and pecans soybeans wheat fish and shellfish. Many of these foods are so ubiquitous in the American diet that the nutrition industry s efforts and response to replacing them with substitutes is more than a smart business decision it is actually a public service. Manufacturers and Suppliers Partner to Meet Demands and Delight Consumers According to Josh Hahn marketing manager for MycoTechnology in Colorado manufacturers are always seeking ways to make allergy-friendly foods taste better. He said suppliers are turning to companies like MycoTechnology to think differently about how to process foods. One example he cites is their mushroom-based food-processing platform which is a natCelebrating 20 Years of Excellence 1995-2015 ural sustainable chemical-free and non-GMO process that removes gluten from wheat while boosting the overall protein content by 40 percent. It also offers flavor profiles such as cinnamon and lemon zest. Kevin Bael product manager for rice specialty ingredients at BENEO in Germany said their customers are interested in understanding the source processing conditions and labeling options for ingredients they are considering for use. Additionally their customers want to partner with them in mastering the art of balancing technological issues with a cleaner label. The key to this partnership is a well-defined combination of the right ingredients that meet or exceed the consumers requirements in terms of taste texture and visual appeal. Bael pointed out how consumers are increasingly looking at the nutritional profile before purchasing food and beverages products. In a BENEO survey of www.niemagazine.com October 2015 Go to www.niemagazine.com nutragenesis for info about this advertiser Demand U.S. consumers 69 percent of respondents indicated they look at nutritional labels for ingredients they are trying to avoid. This is why it becomes more and more important for manufacturers to provide allergy-free products with less sugar less fat less calories etc. He credited this trend with the growing interest in his company s specialty rice ingredients because they combine well nutritionally with dietary fibers or functional carbohydrates. Thom King president and CEO of Oregon-based Steviva Ingredients stated how manufacturers look to their suppliers for product segregation documentation and good manufacturing practices to prevent cross-contamination. Additionally manufacturers seek field-tofactory verification and traceability. Free-from King said suppliers increasingly look for greater levels of traceability and accountability from their vendors all the way down the supply chain. He said solid documentation in addition to touring farms and factories is paramount to ensure products are truly allergen-free and sustainably grown. Nicole Rees business development manager Glanbia Nutritionals (Wisconsin) explained that as manufacturers try to replace allergenic ingredients they look for alternatives such as proteins and fibers that can not only provide a good nutritional profile but also replace functional properties. According to Jean Shieh marketing manager with Sensient Natural Ingredients in California many food manufacturers are seeking clean-label ingredients. Manufacturers are demanding products with no artificial ingredients additives or chemicals which can deter consumers. She cited as an example how monosodium glutamate (MSG) naturally occurs in many foods and yet more manufacturers want to avoid it or ingredients associated with MSG in their products. Gluten-free ingredients are also in high demand because more people selfdiagnose food allergies therefore making gluten-free or other diets that cut out whole food groups more common Shieh pointed out. This trend increases demand for gluten-free certifications from ingredient suppliers. As a result of this demand she cited how sweet potatoes and onions have been elevated into super foods. She explained that Sensient Natural Ingredients certify all of its products as free from cross-contamination with gluten to provide the reassurance manufacturers and consumers seek. In addition she said to keep up with demands manufacturers are not waiting for government regulations but are responding voluntarily to consumer s needs. Ingredients Gaining and Losing Popularity Ingredients popularity wax and wane depending on research new developments and the changing concerns of natural food customers. Manufacturers work hand-in-hand with their suppliers to develop and modify new ingredients so they meet the demands of their consumers. Hahn said that he sees an increase in demand for plant-based sweeteners such as stevia and monk fruit as well as plant-based proteins. He explained that sugar and many artificial sweeteners are falling out of favor. According to Bael his company s 2013 U.S.-commissioned market research showed 65 percent of polled consumers considered natural products as better for health with 47 percent actively looking for natural products. In addition the poll showed 45 percent consider non-GMO products as better. Consumer demand for healthier products includes ingredients with natural or intrinsic health benefits (e.g. fiber wholegrain protein). Bael pointed out that consumers avoid ingredients that appear to be modified unhealthy or artificial (e.g. fat sugar GMO ingredients artificial preservatives additives). King said he and his company are also seeing steady popularity growth in stevia and monk fruit as sweeteners because they are naturally low-glycemic as well as clean and free from allergens. www.niemagazine.com October 2015 Go to www.niemagazine.com herballyyours for info about this advertiser 38 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 Go to www.niemagazine.com orcasnaturals for info about this advertiser Demand He concurred with Bael that artificial sweeteners such as aspartame AceK and sucralose are quickly falling out of favor with consumers and therefore manufacturers. The fast-changing perception of healthfulness creates opportunities to develop and innovate Rees noted. In the gluten-free market for example consumers expect to see chia and ancient grains in everyday foods to add a nutritional boost to common products. In addition consumers now expect good fats such as coconut and flax seed oil to be incorporated into gluten-free foods for additional nutrition. She added that manufacturers have started using grains such as flax to create the same moisture management properties as gluten in baked goods. This use of flax has also encouraged consumers to choose gluten free for the additional health benefits that flax provides because it affords nutritional components such as omega-3 ALA protein fiber antioxidants and lignans. According to Rees the avian influenza epidemic has helped to make egg replacers popular in the bakery industry. A large number of manufacturers are now looking to completely remove eggs from their products and move toward whey protein-based ingredients. These ingredients provide a good texture and replace other allergens including milk and soy flours as well as help to reduce the fat and cholesterol content in products. Soy is the newest ingredient to fall out of favor she said. There is a movement from soy to whey although both are still considered healthy ingredients despite their allergen properties. Manufacturers chief challenge is to create a one-size fits all allergen-free ingredient that appeals to everyone. Sweet potatoes are naturally glutenfree and are great sources of betacarotene vitamin A and vitamin C Shieh added. We are now seeing many gluten-free baked goods made with sweet potato powders she said. Beet roots are also gluten-free and are sources of potassium phosphorus iron as well as vitamin A B and C. Beet root powder is used in many fitness-related Celebrating 20 Years of Excellence 1995-2015 Free-from products now she pointed out. Overall Shieh said ingredients currently falling out of favor are artificial ones. She pointed out how enhanced awareness of artificial ingredients has resulted in many companies removing them from their products. She singled out partially hydrogenated oil as most often being removed from many products since the recent FDA ruling on this substance s contribution to raising the level of LDL ( bad ) cholesterol in the blood. All of these efforts help the drive toward cleaner product labels. Challenges Presented by New Non-allergenic Ingredients Many new ingredients present challenges that manufacturers are currently working to overcome or change. Continued research and testing will allow them to find ways to improve the taste texture and selection of non-allergenic ingredients that will please consumers and enhance their nutritional intake. For example Hahn said stevia has a bitter metallic lingering aftertaste that had previously hindered its growth. He explained that MycoTechnology has developed a natural non-GMO and chemical free mushroom bitter blocker that removes this bitterness while maintaining pure sweetness. In other examples Hahn described how pea protein also has a flavor defect which limits use in certain applications. He also pointed out that monk fruit has a citrus flavor profile that contains a noticeable astringency in higher concentrations. Another drawback for this ingredient is the fact that it is also relatively expensive compared to other natural sweeteners. King explained that some high-intensity sweeteners could be inexpensive and readily available from low-cost Asian suppliers. However the quality of these sweeteners can be questionable. But they are cheap and manufacturers look for low-cost solutions to keep the cost of manufacturing goods down. He said that while natural and allergen-free products are always going to cost more cost should never outweigh the need for quality. Better Gluten Free The lack of gluten in recipe formulations for gluten-free products Bael said caused these products to gain a www.niemagazine.com October 2015 Go to www.niemagazine.com pizzey 40 Nutrition Industry Executive bad reputation for being dry bland powdery and badly textured. In addition gluten-free foods are often viewed as lacking vitamin fortification and therefore poor in B vitamins iron folate and dietary fiber than gluten equivalents. These products also often have a shortened shelf life creating challenges for manufacturers and retailers alike. He pointed out that over many years Beneo has developed gluten-free formulations with improved taste and texture as well as additional nutritional and technical benefits. One such formulation is their non-GMO specialty rice ingredients. These are popular because they add a pleasant mouth feel improved freshness and nutritional content to gluten-free products. In addition to gluten-free these functional ingredients from nature are lactose-free. Also noting the numerous challenges in formulating gluten-free products Rees said texture is one of the central concerns. She explained that glutenfree products tend to be crumbly because it is difficult to mimic the texture of traditional flours. In response to this issue her company has created whey and flax-derived ingredients which offer moisture retention protein freeze-thaw stability and enhanced texture. These qualities improve the flavor pleasant mouth feel shelf life and nutritional profile of gluten-free products. According to Rees When used in conjunction with gluten-free flours Glanbia Nutritionals OptiSol 5000 and OptiSol 5300 (flax-derived ingredients) help food formulators overcome the traditional challenges of gluten-free applications. She cited gum mucilage as a unique property of flaxseed and explained how it helps baked goods retain moisture and overall structural integrity. The range of uniquely processed flax-based ingredients can optimize moisture retention and maintain quality over a longer shelf life. The flax-derived ingredient in OptiSol 3000 contains a natural ingredient that blends the hydrocolloidal functionality of flax with a specialty whey protein so it can be substituted in the same amounts as dried whole eggs in baked items. In addition Rees pointed out Glanbia Nutritionals egg replacers OptiSol 3400 and OptiSol 3900 are specifically formulated to replace eggs in muffins and chiffon cakes respectively. In comparison studies on muffins using OptiSol 3400 and those using eggs the resilient moist texture in both recipes is comparable. Shieh was most concerned with product quality control that she maintained is crucial for allergy-friendly ingredients. To be certified for gluten-free she pointed out that the finished product and the production site must contain no more than 10 parts per million of gluten the same percentage applies to similar proteins including rye barley and hybrids of these grains. While no testing method exists currently that can measures to zero percent Shieh said the industry has established high standards. She maintained that throughout her company s entire process from fields to dehydration plants to packaging facilities they deliver the highest level of confidence that comes with the commitment to gluten-free certification. NIE FORMOREINFORMATION BENEO (973) 867-2140 Glanbia Nutritionals (608) 316-8500 MycoTechnology (949) 433-2870 Sensient Natural Ingredients (209) 667-2777 Steviva Ingredients (310) 455-9876 Extra Extra Visit www.niemagazine.com to see videos on clean label sugar reduction. Go to www.niemagazine.com ayushherbs October 2015 www.niemagazine.com Celebrating 20 Years of Excellence 1995-2015 Nutrition Industry Executive 41 Nutrition By Lisa Schofield in Sports Targeting Emerging Markets F or a wide variety of active individuals achieving a personal best-- whether it s an endurance sport such as long-distance running cycling or swimming or the ability to lift heavier weights or improving one s tennis swing or acing new yoga poses--is a feeling of personal fulfillment that is so deep because it s hard won. The growth of fitness centers is a key indicator that Americans are indeed enjoying not only getting physically fit but those workouts significantly enhance the sports they play or engage in. According to statisticsbrain.com as of April 27 2015 there are approximately 30 500 fitness centers in the U.S. and a total number of 273 500 personal trainers (also a significant consumer of sports nutrition products). Further surveys by the International Health Racquet and Sportsclub Association (IHRSA) have also shown a large increase in the number of health clubs and other fitness centers. From 2005 to 2012 the number climbed from about 26 830 to 30 500. Americans getting into the active life increased from 42 Nutrition Industry Executive 41.3 million (gym memberships) in 2005 to approximately 58.5 million by January 2013. According to gyminsights.com (a fitness industry media) The Physical Activity Council Topline Report (physicalactivitycouncil.com) revealed that over 60 percent of Americans regularly participate in fitness sports as of 2012. This is the fifth consecutive year in which these numbers have remained stable at 60 percent or more. This goes to show that the fitness trend is not going away soon in America and the fitness industry is only going to grow stronger each year. All in all fitness is a profitable industry in the US and the numbers will only continue to rise. Lynda Doyle vice president of global marketing OmniActive Health Technologies in New Jersey cited data from NBJ Supplement Business Report 2015 describing that sports nutrition is a strong market making up 13.3 percent of last year s total U.S. nutrition market and in the last 10 years more than doubled from 2004 ( 2.1 billion) to 2014 ( 4.8 billion). By the end of 2015 the market Celebrating 20 Years of Excellence 1995-2015 is estimated to grow by 8.2 percent from the previous year. Moreover sports nutrition is projected to be worth over 8 billion by 2020. Durrell Washington senior integrated marketing specialist customized solutions Glanbia Nutritionals (NA) Inc. Carlsbad CA observed that not only is sports nutrition much more mainstream expecting to see a compounded growth rate of 8 percent over the next few years but that mainstream channel distribution is driving growth. E-commerce further expands the channel penetration and internet sales are becoming the fastest growing channel for sales he said. Furthermore e-commerce lowers the barrier to entry for new supplement brands and manufacturers. With such incredible growth--and no signs of abatement--there have been key trends to emerge in the past several years that have created the modern landscape of sports nutrition. Chase Hagerman brand director with Texas-based Chemi Nutra observed that the sports nutrition market has grown immensely perhaps www.niemagazine.com October 2015 Go to www.niemagazine.com deerland for info about this advertiser Nutrition because the health category has gone mainstream. Not long ago if I mentioned sports nutrition to my friends when describing what I do they would humorously ask if they would bulk up like Arnold Schwarzenegger if they took one of our ingredient products he related. There are now numerous supplements that are considered to be sports performance products but aren t clearly identifiable as such to most consumers. For example whey protein powders were predominantly consumed by bodybuilders seeking to grow their physiques now there are many that are marketed for consumers interested in physical fitness for whatever sport or activity they re into. As an example of market differentiation Greg Paul PhD MBA marketing in Sports Targeting Emerging Markets director for global consumer segments at DuPont Nutrition & Health observed a strong trend in products targeting performance and recovery likely attributed to the growing popularity of team fitness programs such as CrossFit and Tough Mudder which are popular among Millennials. In fact the sports nutrition category has grown more than 10 percent in recent years with lines blurring between hardcore body builders and athletes to more mainstream fitness enthusiasts who aspire to live a healthy lifestyle. Michael Bush senior vice president with Ohio-based Ganeden Inc. said he has seen traction in the cross-functional product sub-segment specifically the combination of protein and probiotics. The sports nutrition active adult market is heating up as we are seeing more and more clinical work being performed looking the role of probiotics in protein utilization endurance recovery and more he noted. Sports nutrition said Doyle has expanded to include the everyday athlete and proactives --people who recognize the importance of taking dietary supplements as part of their regimen to maintain weight-wellness and overall health. The new sports nutrition consumer is interested in supporting his her performance and recovery naturally and as a part of an overall healthy lifestyle. The everyday athlete and proactives are driving the demand for clean sports nutrition and has propelled sports nutrition products beyond the locker room and into the kitchen cabinet. According to Paul DuPont Nutrition & Health recently conducted consumer research to better understand consumers in the sports nutrition and weight-management markets the insights from this research led to the development of its Food and Fitness Continuum a tool to help manufacturers understand the needs of three unique consumer groups that have evolved in recent years Go to www.niemagazine.com onceagain for info about this advertiser 44 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 Go to www.niemagazine.com cheminutra for info about this advertiser Nutrition Personal Record Performers-- Peak performers seeking foods that help them beat their best performance. Enlightened Actives--Informed healthy consumers who strive for better fitness by eating health foods that support their active lifestyle. Motivated Strugglers--Consumers who struggle with their weight and lack the knowledge and commitment to improve their health and well being. These consumer segments have gained traction as growing evidence demonstrates the need to combine physical activity with nutritious food choices to maintain a healthy quality of life and these consumers are seeking nutritious solutions that support their sports and fitness goals Paul explained. in Sports Targeting Emerging Markets Market Entry or Reformulation As is discernible the current landscape that is sports nutrition is vastly different than it was five to 10 years ago and it is a highly attractive category for branded supplements. Those that have been in the space for a while may also want to consider updating or expanding via reformulation. Our sources offer keen guidance for this market. In Bush s opinion consumers don t really want to take more pills. From Ganeden s specialty perspective probiotics sports-minded consumers seek the benefits of friendly flora but in a form they already can enjoy. He provided two examples of such a product that enhances a healthy and active lifestyle that has more than one functional appeal a probiotic-fortified sports nutrition protein shake with an added ingredient that also supports protein utilization or a meal-replacement bar featuring a probiotic that supports digestive health and immune health. But not every consumer wants the same solution he commented. It is important to meet the needs of each consumer sub-group and be crossCelebrating 20 Years of Excellence 1995-2015 Go to www.niemagazine.com extracts 46 Nutrition Industry Executive functional. Women seek different results than men and the weekend warrior is not looking for the same results as a bodybuilder. Consumers want a diverse product line that tastes great meets their needs and performs. When considering this space Doyle warned that similar to weight-management products sports nutrition has seen its share of magic bullet claims boasting unfounded benefits or the use of questionable ingredients with potential side effects. Consumers are wary of sensational claims and are more interested in products that are natural clean safe science-backed efficacious and easily able to fit into an overall fitness regimen. In Washington s view there is a growing trend in brand marketers focusing on a specific demographic or fitness regimen rather than making a one-size-fits-all product. Specialization in this aspect allows them to target their specific market which in turn helps to build a following and helps to define the retail space. For instance he pointed out fad and craze workouts like CrossFit have highly successful companies such as Pregenex sponsoring events and promoting to that targeted demographic only. This aligns them with the highly loyal community that they supply and allows them to grow alongside these trendy regimens. Additionally opined Washington the sports nutrition industry is going to further differentiate itself. I expect to see companies focusing on specific demographics from CrossFit women to men who run motocross every weekend to high school and college lacrosse players. I also expect to see further breakthroughs in application technology that will open up new finished product matrices to ingredients that were not functionally possible before. This includes advances in bioavailability and absorption water solubility heat pH and pressure sensitivity and flavor or mouth feel obstacles. Amino acid inclusion will start to be driven more by the mainstream population especially the elderly and plant-based protein will further diversify and grab a greater stake in the market. www.niemagazine.com October 2015 Go to www.niemagazine.com kyowa for info about this advertiser Nutrition For new entrants the sports nutrition category is easy to make a name for brand marketers said Hagerman. Chemi Nutra he noted has many customers in the startup stage yet already have significant followings in their niches. Just recently he related I was talking with a young entrepreneur and was shocked to hear that I didn t know that a certain outdoors sport existed yet there he is with dozens of those athletes sponsored and growing his business steadily. Hagerman is validating that aiming at niche actives and sports will likely garner more loyal sales and success than the older model of trying to appeal to the masses. Similarly he advised new brand marketers to keep their offerings lean until you have a solid loyal following it is optimistic in Sports Targeting Emerging Markets Until you have a solid loyal following it is optimistic to think that your customers will buy a suite of your products. The reality is that everyone has one bestseller not five. -- Chase Hagerman Brand Director Chemi Nutra to think that your customers will buy a suite of your products. The reality is that everyone has one bestseller not five. In fact we have a number of customers who are consolidating their product line up due to the complexities of managing so many products and dealing with underachievers. Ingredients to Consider There are many scientifically backed ingredients to consider for targeted sports and fitness supplements. Our sources for this feature offer some compelling examples. Janice Brown technical sales and support AstaReal Inc. in New Jersey markets AstaReal which she said is the most researched brand of natural astaxanthin in the market. Athletes are looking for an ingredient that will help boost endurance and limit muscle damage which is what AstaReal provides she explained. A study published in 2011 in the International Journal of Sports Medicine showed that just 4 mg Go to www.niemagazine.com somalabs daily supplemenCelebrating 20 Years of Excellence 1995-2015 tation of AstaReal significantly improved cycling time trial performance. Another clinical trial published in 2012 in the Journal of Sports Medicine and Physical Fitness indicated that supplementation with AstaReal could eliminate exerciseinduced free radical production and depletion of non-enzymatic antioxidant defense in elite young soccer players. These and multiple other published results are proof that AstaReal has genuine beneficial effects for improving athletic stamina and performance Brown summarizes. AstaReal continues to gain popularity among specific athletes such as cyclists runners and soccer players. Ganeden s patented probiotic GanedenBC30 not only supports digestive and immune health Bush emphasized but also has been shown in peer-reviewed clinical trials to support the utilization of protein and increase blood amino acid levels in individuals who consume it along with various forms of protein. Additionally GanedenBC30 has been successfully shown to decrease muscle soreness in addition to other indicators of positive recovery after exercise Bush explained. The combination of increased muscle retention plus a reduction in soreness that might interfere with healthy physical activity is a win-win for any athlete fitness enthusiast or active consumer. Glanbia Nutritionals offers a wide variety of proteins including whey protein (concentrates isolates casein individual peptides etc.) algal protein wheat protein and pea protein. Glanbia Nutritionals AminoBlast technology Washington www.niemagazine.com October 2015 48 Nutrition Industry Executive Go to www.niemagazine.com lonza for info about this advertiser Nutrition explained is a proprietary method designed to both increase the water solubility dispersibility of hydrophobic amino acids such as the branch chain amino acids but also increase the clarity of ready-to-mix powders containing amino acids to make them more palatable. Glanbia Nutritionals NutraShield encapsulation technology can be utilized for a variety of applications including bitter flavor masking processing stability improving shelf life (prevents oxidation) and preventing ingredient interaction. This can allow for sports nutrition ingredients such as amino acids and caffeine to be incorporated into a wider variety of finished product matrices without worrying about flavor issues or ingredient breakdown during manufacturing he described. Capsimax capsicum extract from in Sports Targeting Emerging Markets OmniActive Health Technologies is a naturally functional way to add value to formulas targeting athletes and fitness enthusiasts according to Doyle. Capsimax Capsicum Extract beverage-grade is a concentrated highlyactive natural capsicum extract that is encapsulated using patented OmniBead technology--a controlledrelease coating allows Capsimax to deliver beneficial levels of capsaicinoids without the oral and gastric burning sensation of unprotected red hot peppers. Capsimax is a natural stimulant-free ingredient that assists in weight loss a key goal shared by numerous individuals engaged in fitness routines. Capsaicinoids like the ones found in Capsimax are the bioactives in red hot pepper and have been shown to support thermogenesis increase energy expenditure and may impact overall metabolism-- all coveted benefits that athletes and fitness enthusiasts alike are looking for in their products she remarked. Chemi Nutra s newest ingredient Mediator Phosphatidic Acid (PA) is a muscle-building ingredient. Described Hagerman The obvious target market of this ingredient is weight trainers the less obvious beneficiaries are aging individuals who are losing muscle mass in a condition known as sarcopenia. Of course there are many more ingredients but the concept of utilization for targeted sub-markets is not only growing but should reap brand marketers high-performance marks. NIE FORMOREINFORMATION AstaReal Inc. (609) 386-3030 Chemi Nutra (866) 907-0400 Ganeden Inc. (440) 229-5200 Glanbia Nutritionals (800) 735-8137 OmniActive Health Technologies (866) 588-3629 Extra Extra Visit www.niemagazine.com for information on keying in on pre- intra- and post-workout ingredients. FAMILY OF PUBLICATIONS www.VitaminRetailer.com www.GlutenFreeRetailer.com Branch Out and Join VRM Media s 1995 20 Y ars Celebratingellence e of Exc 2015 www.NaturalPractitionerMag.com www.NIEmagazine.com www.FitnessTrainerMag.com NIE s Upcoming 2015 Issue Highlights Nov. Dec. 10 23 15 ad closing Supply Innovation Contact One of Our Ad Specialists Today Russ Fields at 732-432-9600 ext. 102 or e-Mail RussF VRMmedia.com Roy Kieffer at 719-358-9838 or e-Mail RoyK VRMmedia.com Gary Pfaff at 732-432-9600 ext. 103 or e-Mail GaryP VRMmedia.com 50 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 Go to www.niemagazine.com nutrition21 for info about this advertiser ProductionLine Facility Growth Review By Lisa Schofield rowth is healthy notably in an industry that is seeing more and more consumers enter through trial and become loyal. The dietary supplement industry is and has been for quite a long time one of those continual growth industries with no signs of abatement. Discovery research and development plus increased media exposure (mass and social) are placing good pressure upon an assortment of supplier and manufacturing facilities to ensure ability to fulfill demand. Juan Jose Albarran managing director Chile botanics division for New Jersey-based Naturex explained that today consumers are aware that chemical ingredients are not as safe as once perceived they are instead seeking natural ingredients to use instead. Concepts such as clean labeling or strict natural certifications (such as Ecocert and USDA [U.S. Department of Agriculture] organic) have become a sustainable and growing trend. The market is experiencing rapid growth and Naturex as the global leader in specialty plant based natural ingredients has G taken on a key position in delivering complete solution he said. At New Jersey-based Pharmachem Laboratories Inc. Lynn B. Dahle vice president and general manager observed a large push from customers who want full turnkey solutions under one roof. With the proper adherence to cGMP (good manufacturing practice) regulations timeframes are being elongated and every product transfer from one facility to another only adds to the lead time for a finished good. A turnkey solution negates such transfers providing for more expedient delivery he described. Dahle noted that industry is also looking for value-added ingredients and blends such as tablet-ready blends free-flowing agglomerates and instantized drink mixes. By partnering with the correct suppliers who can produce these it lessens the burdens that many manufacturers face in their R&D production and ultimately customer satisfaction he remarked. Dr. Greg Leyer chief scientific officer with Wisconsin-based UAS Labs which recently expanded its facility pointed to Celebrating 20 Years of Excellence 1995-2015 the phenomenal popularity of probiotics by consumers and many brand marketers are scrambling to create innovative and tasty products containing a wide variety of strains. Probiotics have been a growth driver in the dietary supplement industry and are expected to enjoy double digit sales increases through 2020 he reported. UAS Labs recently completed a 6 million expansion and upgrade of its manufacturing capabilities as well as its quality control and research and development laboratories. The facility which is organic- and NSF-certified has been designed to maximize cell viability at every step in the process with sophisticated temperature and humidity controls. Meanwhile Naturex made what Albarran described as a significant investment in order to increase its production capacities for quillaia extracts in Chile. The company has multiplied eight-fold its annual production of this ingredient becoming one of the largest manufacturers worldwide. At the same time he added Naturex was able to upgrade the infrastructure to meet global food safety certifications guaranteewww.niemagazine.com October 2015 52 Nutrition Industry Executive ing compliance with its customers requirements. To meet the needs of our current and future customers Pharmachem Laboratories has invested recently in both quality and equipment Dahle said. Since this Utah-located facility was acquired by Pharmachem two years ago our quality department has more than doubled in size. We have allowed our quality team to have the freedom and resources they need to ensure all the cGMPs are followed and have put in place a continuous improvement plan to help maintain the direction and focus that so often gets lost without one. Further he reported that equipmentwise the company has doubled its fluid bed granulation and drying capacity in the last two years and also has added a powder fill line for canisters. Further we will have at the start of the last quarter 2015 a high-speed stick pouching line. All of this has been added to the brand new facility we built a little over two years ago he noted. At Ingredients by Nature in California CEO Robert Brewster reported some sizable new additions New 50HP micronizer capacity 4001000kg hour particle size 80-2500 mesh this will increase IBN milling and micronizing capacity to 5-15 MT per day 20HP Crusher new added tea cut capacity 4-10 per day 2 of 10 x10 drying chamber which will provide newly added drying capacity 4-6MT per day. The installation of such drying chambers will largely increase IBN s wet granulation capacity to 3-5MT per day 90CBF steam sterilization chamber this will provide new sterilization capacity for high value small scale and sensitive materials to fix the gap of IBN s current large scale steam treatment system. Last year IBN the leading toll-services supplier doubled the size and capacity of its facility from 30 000 square feet to 60 000 square feet. with proper care they won t maintain stability for the end consumer. Naturex s quillaia extract is becoming an important ingredient for the food and beverage cosmetics and pharmaceutical markets according to Albarron who noted that the ingredient meets many of the current trends in labeling as it is 100 percent natural kosher halal non-GMO (genetically modified organism) allergen free and sustainably sourced. These characteristics along with its flexibility and wide-range of applications have given the it a prominent position in the global market. This new facility will greatly benefit customers and consumers alike by securing a steady supply of the ingredient and providing them with the highest standards in quality. These guarantees were previously difficult to achieve in the quillaia market he described. Dahle related that an increasing number of brand marketers are seeking a one-stop shop even though no one company can be everything to everyone. As a contract manufacturer he said it is always appropriate to see what upgrades fit into the wheelhouse of the business. In our case we do powders and we do them very well. It was only natural to have all these capabilities under one roof. He added that customers have been very receptive because they no longer need to audit several facilities and thus their lead times to receive their goods are much shorter. Plus their purchasing agents only need to have one phone number. Ultimately the end user will be more satisfied due to the fact they will have fresher more uniform product as everything is done under one roof he said. In a nutshell consumers expect their needs and wants to be fulfilled. The ability to do so lies in the constantly evolving expertise and capabilities of contract manufacturers and specialists. NIE FORMOREINFORMATION Ingredients by Nature (909) 230-6200 Naturex (201) 440-5000 Pharmachem Laboratories (800) 526-0609 UAS Labs (800) 422-3371 Motivations Rest assured the investment of millions of dollars for the upgrades and expansions is never an off-the-cuff decision. For each there were specific motivators. For UAS Labs it is the very nature of probiotics that necessitated the upgrades. Probiotics are unique microorganisms that cannot be treated like other nutraceuticals said Leyer. If they are not processed and handled October 2015 www.niemagazine.com Celebrating 20 Years of Excellence 1995-2015 Nutrition Industry Executive 53 FinancialConcepts Contribution Margin Analysis This flexible financial tool should not be overlooked by executives. By Chuck Slotkin C ontribution analysis is an accurate and flexible financial tool used by many corporate executives and investment professionals to analyze and manage business performance create growth strategies and meaningful financial forecasts and evaluate acquisition and investment targets. This tool is also very helpful in developing turnaround strategies for underperforming companies. Depending upon what a manager or analyst is examining contribution margin may be more closely related to either gross profit margin or operating EBITDA (earnings before interest taxes depreciation and amortization) margins. Contribution margin is important for many executives--not just CFOs. For example CEOs marketing and sales managers and production managers can measure (a) the profitability of any of its products and or services (b) how growth in gross sales actually translates into growth in profits (c) the components of total company profitability and (d) company breakeven points. Specifically it looks at the direct costs in the production sale and distribution of each individual product. Direct costs refer to things such as raw materials direct labor packaging shipping and sales commissions. As opposed to overhead costs such as production overhead general and administrative expenses direct costs will vary based on the number of products manufactured and sold. Contribution margin generates an accurate view if not sobering view at times of the profitability of different 54 Nutrition Industry Executive products and services. Management which is available to pay overhead may also use this analysis to design and expenses. Depending upon the nature track alternate sales promotions and of the company s business and market a determine the desirability of producing contribution margin of 3 750 may or products in-house versus using a comay not be an adequate to support the packer. In addition if a certain product necessary overhead structure. This has a negative contribution margin would generally be an excellent margin management has the tool to consider for a manufacturer and or marketer of dropping the product raising the price commodity products while a manufacin order to provide for an appropriate turer and marketer of proprietary brandprofit margin and or reducing the assoed products would generally find a conciated direct costs. tribution of 37.5 percent to be inadeThe contribution margin is computed quate. Second measuring direct by using a contribution income stateexpenses management to quickly anament. This format is a management Contribution Margin Statement Income Statement accounting version of Gross sales 10 000 the accounting-oriGross sales 10 000 ented income stateReturns discounts Returns 1 500 ment that has been & allowances 1 500 discounts & re-formatted to sepaDirect COGS 2 750 allowances rate direct and overhead costs. The difCosts of Fullfillment 750 3 500 & shipping ference between an goods sold income statement Sales Gross Profit 5 000 1 000 and a contribution commissions margin analysis for an Overhead Expenses Credit card 250 entire company is processing Fullfillment & shown in the charts at 750 shipping Contribution right. 3 750 margin Sales While both financial 1 000 commissions statements show the Overhead Expenses Credit card same EBITDA of 250 Production processing 1 000 000 the con750 overhead (COGS) tribution margin is Marketing & 1 000 Marketing & sales 1 500 more instructive in other selling two ways. First it Genereal Genereal 1 000 1 000 shows that every 1 & admin. & admin. of gross sales gener1 000 EBITDA EBITDA 1 000 ates cash of 0.375 Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 lyze how changes in tactics and strategy affect its overall ability to generate profits. Adjustments can then be made quickly and with confidence. The EBITDA margin is important because it shows the profit margin that exists after subtracting overhead costs in addition to the direct production sales and marketing costs that are configured into the contribution margin. Overhead costs include employee salaries rental costs equipment maintenance and non-direct marketing sales and advertising costs. The EBITDA margin excludes non-cash expenses such as depreciation and amortization. Analysts who evaluate corporate acquisitions and investments will evaluate both contribution and EBITDA margins knowing that the former margin exerts a powerful effect on the latter. recoup the profits lost as a result of the distributor discount (and other distributor expenses) particularly in situations where using distributors becomes a necessity. deficit management will also see how long it will take to reach breakeven. Financial Forecasting The contribution margin analyses described are an integral part of developing plausible future financial forecasts that can guide the execution of corporate business strategy help lenders and investors understand a company s potential and provide a framework for merger and acquisition activity. Contribution margin analysis also makes it easy to evaluate the inevitable changes and modifications that are made to a business plan over time. An example of how this analysis will show how an entrepreneur determined the feasibility and desirability of restarting a large manufacturing company that was shut down. Once the entrepreneur developed an operating plan with the existing management team we translated the plan into a 60-month financial forecast. What we learned was that the cash requirement to implement this plan was 30 million and that we needed to raise 100 percent of this amount as equity before beginning the restart. Even though the financing was available the entrepreneur decided not to pursue this opportunity because he would not have a controlling equity stake in the new company. Direct Marketing Analysis Successful direct marketers are usually adept at contribution margin analysis because they receive instantaneous and daily performance metrics. In the chart below Product A is a clear winner and is a candidate for substantial additional investment. Even though it has a mediocre contribution profit Product B should be kept since it still offsets overhead costs. On the other hand Product C should be discontinued unless management changes the go-to-market strategy and or reduces unit production costs. Otherwise the negative contribution margin translates into a loss on every product sold. Contribution margin allows direct marketers to do comparison testing of prices marketing messages different media and compensation structures on an ongoing basis. For example calculating the true lifetime value of a customer is inaccurate unless the analysis includes all of the direct costs associated with the initial order and future continuity shipments. Direct Sales vs. Distributors Another classic use of contribution margin analysis is determining whether or not to include distributors in the marketing mix. Contribution margin analysis helps management to understand the opportunities and costs involved in the transition from a direct sales model to using distributors. Two factors are important (1) how much incremental distributor sales are necessary to justify the switch over and (2) measuring how very specific changes in the cost structure affect profitability. For example management can more easily experiment with how to Revenue New Order New Orders S&H Continuity Product A 36 4 216 256 Expenses COGS Inbound Shipping 35 20 Product B 36 4 36 76 Corporate Turnarounds Management teams involved in the turnaround of non-profitable companies can utilize contribution margin analysis to design their business strategies. In order to Product C achieve profitability management must esti 25 mate the true potential to generate cash from 4 making sales that is suffi 13 cient to cover essential overhead expenses after 42 they eliminate unnecessary expenses. Contribution margin 8 analysis allows management to focus on determining how variations in direct expenses affect 24 the ability to profitably 4 grow sales and cash flow. Once they have a 8 realistic handle on the potential cash available to support overhead 7 expense they will know 51 if they need to cut additional overhead expense 9 and or raise capital to fund a cash shortfall. In addition to calculating Def. the size of the cash Celebrating 20 Years of Excellence 1995-2015 Contribution Margin Templates These templates are easy to set up in Excel. At the most granular level you may set up individual analyses for the contribution margin of each major product line or service as well as a separate sheet for overhead expenses. You may then aggregate all of the contribution margins and overhead expenses into another sheet within your Excel file. You may make these analyses very precise and easy to change by building assumptions into each of the variables. This may become very detailed such as what we prepared for the manufacturing restart example described above and multiple direct marketing companies. Alternatively contribution margin templates for direct marketers may either be simple or very detailed depending upon the goals of the analysis. NIE Chuck Slotkin founded Nature s Equity LLC more than 20 years ago specifically to work with natural products companies to raise capital execute mergers and acquisitions prepare valuations and business plans and advise entrepreneurs and CEOs on building equity value. For more information contact chuck.slotkin naturesequity.com. Nutrition Industry Executive 55 Media Call Center Fulfillment & Shipping Other Direct expenses Subtotal 20 8 25 12 99 157 2.6 24 8 9 7 68 8 1.1 Contribution Marketing Return on Investment October 2015 www.niemagazine.com Nutraceuticals Have antioxidant health claims lost credibility By Barbara M. Schmidt PhD and Risa Schulman PhD Tap Root LLC n recent years antioxidants have been added to an array of food beverages and supplements for their perceived health benefits. From fruit juices to popsicles breakfast cereals and gummy snacks and scores of dietary supplements numerous labels prominently display the word antioxidant. However advances in the research on antioxidants have made the antioxidant story less straightforward than many think. Ingredients with antioxidant claims while still scientifically valid in some cases are due for a makeover. When antioxidants burst on the scene in the early 2000s people were excited about them for a number of reasons. Diets rich in fruits and vegetables have known health benefits reducing the risk of cardiovascular disease obesity and cancer and studies pointed to the antioxidant activity of one phytochemical after another. Thus people made the correlation that phytochemical antioxidants must be the reason for the benefits of a healthy diet--and soon assumed it was a cause and effect relationship. Further the antioxidant tests most of which pitted the phytochemical of interest against vitamin E the model antioxidant showed higher and higher numbers in favor of fruits and vegetables and their components. Together this was the makings of a great story. I And why should anyone have believed otherwise A cursory review of the vast antioxidant literature would have indicated that scientists also supported the claim antioxidants good for you and that the more antioxidants consumed the greater the benefit. At that time the majority of research done had been done outside of the human body. With the benefit of time thought and more research it has become clear that certain compounds act as antioxidants in the body in the classically defined way but for others high ORAC (oxygen radical absorbance capacity) numbers otherwise lead to a dead end. Let s explore some of the places where the original excitement over antioxidants gets tripped up and why and then go on to the places where it does have unequivocal benefits. Lastly we ll discuss the good news in this story and suggest pathways for the maturing of strategy around antioxidant products. Problem Areas Early research consisted largely of in vitro test tube and cell studies. In the juggernaut of preclinical antioxidant research scientists performed total antioxidant activity assays like ferric reducing antioxidant power (FRAP) and ORAC on plant extracts and proclaimed them good for your health on the Celebrating 20 Years of Excellence 1995-2015 basis of their antioxidant power. Today although some scientists still argue over which assay is most like the conditions in the body there is a consensus understanding that these assays have limited utility when it comes to showing benefits in humans. This is because how a compound behaves in a test tube does not account for body pH bioavailability competitive compounds and other nuances of physiology. In addition antioxidants are often metabolized in the body to other compounds so often the body never sees the molecule that was ORAC tested at all. Some antioxidants are even altered in an in vitro environment to be pro-oxidants in other words they change to acting like free radicals In some cases this is not bad news in the body and may even explain the observed health benefit--but let s tell the right story Topical applications for cosmetics that tout antioxidants also run into problems. There are few antioxidants that remain stable in formulation and successfully penetrate through the stratum corneum (the outer dead layer of skin) to affect the living cells deeper down in the epidermis. Since most anti-aging claims are based on the ability of antioxidants to interact with living skin cells penetration and delivery of intact molecules is critical. (An exception is vitamin C which www.niemagazine.com October 2015 56 Nutrition Industry Executive does penetrate the skin reasonably well when applied topically and has demonstrated skin benefits.) In addition most antioxidants are quite difficult to stabilize in formulation (including vitamin C). Strong Evidence There is strong evidence that the tried and true vitamins act as antioxidants in the body. One is vitamin E which is a general term referring to any of the number of tocopherols with the biological activity of d--tocopherol. Their role in the body is to prevent the peroxidation of membrane phospholipids thereby protecting against cell membrane damage. This is a clear example of antioxidant activity in the fatty places of the body (membranes are made of fats). Vitamin C is a water-soluble antioxidant. In humans it is an electron donor for enzymes that participate in collagen carnitine and catecholamine synthesis. It also aids in iron absorption by either chelating iron or maintaining it in reduced form which is another antioxidant function. The human body synthesizes vitamin A from dietary carotenoids like -carotene and lycopene. Similar to the way carotenoids quench excess photoradiation in plants preventing oxidation -carotene can treat erythropoietic protoporphyria a painful photosensitivity condition in humans. Selenium is an integral component of glutathione peroxidase and thyrodoxin reductase two important endogenous antioxidant enzymes. These selenoenzymes protect cells against the damaging effects of hydrogen peroxide lipid hydroperoxides and oxygen radicals. The Good News As human research sought to answer deeper questions about how antioxidants act in the body the story became at once simpler and more complex. Compounds that are antioxidants in vitro fall into three categories when examined in the body 1) those that have an effect due to their antioxidant properties 2) those that have not shown an effect 3) those that have an effect but not due to their antioxidant properties There are some antioxidants that have come onto the scene that when tested do have effects that stem from their antioxidant properties. One example is punicalagin an ellagitannin found in pomegranate and responsible for its heart health benefits. Research has shown it prevents LDL oxidation which is October 2015 www.niemagazine.com an antioxidant function. Several other compounds have shown this effect on LDL oxidation in humans such as cocoa polyphenols CoQ10 and astaxanthin. In addition the carotenoids lutein and zeaxanthin accumulate in the human eye and help protect against macular degeneration by neutralizing free radicals caused by UV exposure. But there is also much research that has sought antioxidant effects and found none. Many antioxidants that claim effects have never been tested in humans at all or have only shown ambiguous results. The antioxidant paradox is a term used to describe the puzzling observation that large doses of antioxidants fail to prevent or treat diseases caused by oxidative damage even when presumed pharmacological levels are observed in the blood. Scientists believe this occurs for two primary reasons. First while oxidative damage may play a role in neurodegenerative diseases cancer and cardiovascular disease there are many other complex factors involved that would not respond to antioxidant therapy. Second the body s endogenous antioxidant defense system is sophisticated and highly regulated. Dietary antioxidants even in high doses may have little effect on the overall antioxidant capacity of the body. On the other hand much new research on the mechanisms of purported antioxidant compounds has come to show that their effects are real but are driven by actions other than antioxidant ones. A case in point is many flavonoids. Green tea catechins (often marketed as antioxidants) have effects on cardiovascular disease metabolic syndrome and photoaging that are driven by mechanisms such as reducing inflammation modulation of cell signaling pathways and regulation of DNA methylation. Proanthocyanadins have long been recognized for their potent antioxidant power yet scientists now believe their health benefits stem from their ability to influence the metabolism and composition of gut bacteria. In addition cocoa flavanols are technically antioxidants but their main action as an enhancer of circulation is due to effects on nitric oxide levels that are independent of antioxidant mechanisms. Recent clinical trials have shown that curcumin s effects on osteoarthritis are due to reduced collagen and cartilage degradation. The mechanism appears to be unrelated to antioxidant capacity. Carnitine although technically an antioxidant has as its main Celebrating 20 Years of Excellence 1995-2015 function to shuttle fatty acids into the mitochondria and remove toxic fatty acyl-CoA metabolites. Complex mechanisms of these types are arguably the most interesting new research in the field. Future Paths The time is drawing near that companies selling products for their antioxidant abilities should be thinking about new strategies for the future. For most ingredients the term antioxidant is only getting weaker from a science point of view. Its regulatory status for ingredients without daily values is shaky and has even been challenged in a few high profile court cases. But the good news is many compounds billed as antioxidants have documented health benefits in humans that are driven by other mechanisms. These should be developed further or sought out in new research and turned into the dominant marketing messages for these products. In the end it is more differentiating and the customer will be better served. We all know that new science claims and strategies take time making this message all the more cogent. So go out there and build the future NIE Dr. Risa Schulman is a dietary supplement and functional food expert focusing on sound science claims and strategy. Drawing on 18 years of experience she is currently the president of New Jersey-based Tap Root consulting firm. Schulman and her team assist ingredient suppliers manufacturers start-ups biotechs pharma law firms and investment bankers. Dr. Barbara Schmidt has a BS in horticulture from The Pennsylvania State University and a MS in Plant Biology from Arizona State University. Her PhD is from the University of Illinois UrbanaChampaign (UIUC) where she studied phytochemistry with a focus on anticancer and antioxidant compounds from berries. As a Postdoctoral Associate at Rutgers University Schmidt worked on numerous projects investigating therapeutic properties of natural products. She has been working in the natural products industry on product development for nine years. Nutrition Industry Executive 57 SupplySide West Booth Preview October 5-9 2015 Mandalay Bay Expo Hall Las Vegas NV The following companies advertising in this issue have submitted information describing their plans for SupplySide West--product launches show specials and special services are all included below. Booth numbers are provided with each listing to encourage in-person meetings to learn more. Alkemist Labs--Booth 1029 Alkemist Labs (Costa Mesa CA) is an experienced and respected cGMP contract testing laboratory specializing in finished product testing botanical ingredient identification and analytical research services to the food beverage nutraceutical sports nutrition and bodybuilding industries. Alkemist offers clients specialty contract research services using HPLC GC UPLC HPTLC UV VIS as well as monographs to evaluate the safety purity and quality of ingredients and finished products. What s new N.A. distributor for Extrasynthese Phytochemical Reference Standards. Convenient ordering via the company s website. For more information call (714) 754-4372 or visit www.alkemist.com. Biova LLC--Booth 3782 Biova (Olathe KS) will present how its watersoluble egg membrane (WSEM) offers formulators multiple delivery systems for expanded product lines and greater market potential. Learn more about BiovaDerm for human skincare reduces the appearance of fine lines and wrinkles BiovaPlex for animal health promotes activity healthier skin and coat BiovaFlex for joint health latest research shows fast fiveday and range of motion (ROM) results plus offers the only 88 percent protein standard For more information call (877) 682-2673 or visit www.biova.com. Chemi Nutra--Booth 921 With the recent NYAG issues and Sen. McCaskill FDA letters regarding memory claims targeted to seniors wonder if a bona fide safe ingredient exists for memory support Considered the best is Chemi Nutra s (Austin TX) SerinAid PhosphatidylSerine (PS). It is proven safe patented thoroughly researched efficacious supported by two FDA Qualified Health Claims and produced in Chemi s own FDA inspected plant. After more than 20 years it is still the market leader. Be wary of imitations. Trust SerinAid PS. For more information call (512) 823-2500 or visit www.cheminutra.com. Avanti Polar Lipids Inc.--Booth 1757 Avanti Polar Lipids (Alabaster AL) Analytical Services Division provides extensive laboratory testing using modern analytical techniques to the research food nutraceutical and pharmaceutical communities for their lipid related projects. Testing under cGLP and cGMP is available with appropriate notification and preparation. For more information call (205) 663-2494 or visit www.avantilipids.com. Deerland Enzymes--Booth 4435 Ayush Herbs--Booth 720 Ayush Herbs (Redmond WA) grows its herbs naturally in their pristine Himalayan habitat without the use of pesticides insecticides herbicides or chemical fertilizers. The company s products carry both organic and kosher certifications. Ayush s products are formulated by ayurvedic and naturopathic physicians and are made from standardized herbal extracts to ensure quality and potency. For more information call (425) 637-1400 or visit www.ayushextracts.com. Stop by the Deerland Enzymes (Kennesaw GA) booth at the end of the day on Wednesday for the company s Wine & Chocolate Soiree. Enjoy complimentary wine paired with gourmet chocolates fortified with the DE111 probiotic Deerland s strain of Bacillus subtilis clinically studied for safety and efficacy. While you re there get a sneak peak at Deerland s exciting advances in probiotic manufacturing with a look at the company s new state-of-the art facility set to begin operation in late 2015. For more information call (800) 697-8179 or visit www.deerlandenzymes.com. Bergstrom Nutrition--Booth 3581 OptiMSM is an ultra-pure branded methylsulfonylmethane ingredient manufactured by Bergstrom Nutrition (Vancouver WA). The only GRAS-designated MSM OptiMSM is the result of a proprietary four-stage distillation process that guarantees optimal purity quality and consistency. OptiMSM is manufactured exclusively in the U.S. in a dedicated cGMP-compliant ISO registered FDDC22000 certified facility and is backed by third-party testing to provide essential traceability. Kosher and halal certified non-GMO gluten free and vegan OptiMSM is also registered with Informed Sport. For more information call (888) 733-5676 or visit www.bergstromnutrition.com. 58 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 DPL-US--Booth 2850 DPL-US (Islandia NY) a U.S.-based company celebrating 10-years of service to the North American market supplies high-value mineral salts produced by DPL-US s German parent company Dr. Paul Lohmann. DPL-US offers the industry s most diverse portfolio of minerals with more than 300 different minerals for use in a wide range of dietary supplements such as tablets capsules gelcaps powders etc. Please stop by to learn more about DPL-US s products and to help the company celebrate its 10-year anniversary in the U.S. For more information call (631) 851-8810 or visit www.dpl-us.com. Healthco--Booth 3868 Healthco (Bloomingdale IL) is reintroducing itself to the market as a supplier of GMP-manufactured dietary supplements and raw materials. The company s catalog contains a wide variety of top quality tablets capsules soft gels and powders. Healthco has the knowledge and resources to fulfill orders of any size to retailers and other manufacturers whether it s private label single cases of pills or full truckloads. The company welcomes the opportunity to show what it has to offer For more information call (800) 477-3949 or visit www.healthco-intl.com. Jiaherb Inc.--Booth 2743 Dr. Vita Labs Inc.--Booth 4749 Visit the Dr. Vita Labs Inc. (Las Vegas NV) booth to receive an additional 5 percent discount on all manufactured products or WOLF services from Dr. Vita through December 31 2015 or receive a bonus buy from Dr. Vita on all manufacturing products through December 31 2015. Subject to regular terms and conditions. For more information call (702) 333-6115 or visit www.drvitalabs.com. Visit Jiaherb Inc. (Parsippany NJ) at booth 2743 at SupplySide West. For more information call (973) 439-6869 or visit www.jiaherbinc.com. JT Naturals LLC--Booth 4649 JT Naturals (Joplin MO) will be introducing its new Pet Supplement line as well as the company s exclusive Fish Protein Powder. Stop by the booth and the company can quote all your manufacturing needs. JT Naturals can provide a full turnkey quote within a week of meeting you at SupplySide West. Pick up a copy of JT Naturals bulk product and price list. For more information call (417) 553-0977 or visit www.jtnaturals.com. Extracts & Ingredients--Booth 4234 Extracts & Ingredients Ltd. (E&I Union NJ) will feature a unique line of Internally Stabilized nutritive oils for use in topical and nutritional applications. These oils are high in omegas 3 6 and 9 exhibiting the optimum ratios. E&I also offers a line of unique liquid botanical extracts based on ancient grains such as quinoa barley oat faro spelt and chia. For more information call (908) 688-9009 or visit www.morretec.com eni. Kyowa Hakko USA--Booth 1537 Join Kyowa Hakko USA s (New York NY) VendorWorks presentation on Cognizin Smart Science--Raise the IQ of your Brain Health Product on Wednesday from 3-3 50 p.m. The only citicoline backed by clinical research to support brain health claims Kyowa Hakko will be sharing the results of its most recent Cognizin study on adolescent males showing improved attention. Immediately following the presentation join the company at booth 1537 from 4-5 30 p.m. for a reception to learn more about Kyowa s science-supported high-quality ingredients. For more information call (800) 596-9252 or visit www.kyowa-usa.com. Fenchem Inc.--Booth 2659 Fenchem (Chino CA) is a global ingredient manufacturer and distributor focused on nonGMO pharma-grade fermentation-based and organic natural ingredients. The company s goal for Supply Side West 2015 is to save customers a combined total of 1 000 000 on new orders over two days. Come by and grab your share of savings top quality ingredients logistics and service. For more information call (909) 597-8880 or visit www.fenchem.com. Lonza Inc.--Booth 1421 Lonza (Allendale NJ) is celebrating the 30th anniversary of manufacturing and marketing the Carnipure ingredient a premium grade of L-carnitine. Decades of scientific analysis and discovery backed by a dedication to technical and sales support have established an environment that drives consumer awareness and usage today. The success of Lonza s Carnipure L-carnitine is a prime example of bolstering an extraordinary ingredient with continued science and technical support said Michael DeGennaro NAFTA vice president of sales for Lonza Consumer Care. For more information call (800) 365-8324 or visit www.carnipure.com. October 2015 www.niemagazine.com Celebrating 20 Years of Excellence 1995-2015 Nutrition Industry Executive 59 SupplySide West Booth Preview October 5-9 2015 Mandalay Bay Expo Hall Las Vegas NV Natreon Inc.--Booth 937 Natreon Inc. (New Brunswick NJ) will be introducing Ayuric at SupplySide West. Ayuric is a clinically proven patent pending vegetarian organic non-GMO product to maintain healthy blood uric acid levels. It is derived from the ayurvedic plant Terminalia bellerica and has potent xanthine oxidase inhibitory activity in vitro. Come visit Natreon at booth 937 for the latest updates in its research. A new study done at The Ohio State University Medical Center showed Natreon s PrimaVie (purified Himalayan shilajit) dramatically upregulated the genes responsible for collagen synthesis. For more information call (732) 296-1080 or visit www.natreoninc.com. NutraGenesis--Booth 2166 NutraGenesis (Brattleboro VT) is a leading provider of proprietary branded nutraceuticals for dietary supplements and GRAS-affirmed functional ingredients for foods and beverages. The company s clinically tested patented ingredients feature highly marketable substantiated structure function claims that address today s leading wellness areas stress healthy weight management energy cognition metabolic cardiovascular health anti-aging antioxidant and respiratory immune support. Visit the NutraGenesis booth to learn how our efficacious ingredients can provide your products with a clear competitive edge. For more information call (802) 257-5345 or visit www.nutragenesis.com. NAXA The Natural Algae Astaxanthin Association (NAXA) invites you to its SupplySide West VendorBrief Presentation on Wednesday at 1 p.m. Learn why natural astaxanthin derived from Haematoccocus pluvialis deserves its place as the world s strongest antioxidant current regulatory guidelines and how to evaluate this powerful nutrient. In addition learn more on The health benefits of natural astaxanthin how to evaluate the differences between natural and synthetic artificial astaxanthin as well as regulatory guidelines for natural astaxanthin and structure function claims. Expert speakers will include Scott Steinford NAXA president Neal E. Craft PhD president of Craft Technologies Inc. and Marc Ullman attorney Ullman Shapiro & Ullman LLP. For more information visit www.astaxanthin.org. Nutralliance--Booth 4137 Join Nutralliance (Yorba Linda CA) at Booth 4137 to take a pull at the company s Where Winners Are Made slot machine and try your luck at winning a prize. Nutralliance s informative staff will also be on hand to discuss the newest addition to its line of exceptional non-GMO ingredients Ravetol natural mixed tocopherols from rapeseed. Along with our SunE from sunflowers and Lutegen lutein Nutralliance is your preferred supplier for non-GMO ingredients. For more information call (714) 694-1400 or visit www.nutralliance.com. Nutrition 21 LLC--Booth 1861 Nutrition 21 (Purchase NY) is a developer and marketer of clinically substantiated efficacious ingredients for dietary supplements medical foods and beverages including Nitrosigine and Chromax. Nitrosigine is a patented complex of bonded arginine silicate with FDA NDI notification status affirmed as GRAS. It boosts nitric oxide levels and can easily be formulated into sports nutrition men s health and cardiovascular health products. Chromax chromium picolinate is patented and has 50-plus clinical studies supporting weight management appetite control cognition and glucose metabolism. For more information call (914) 701-4500 or visit www.nutrition21.com. Nutraceutix--Booth 3243 Visit the Nutraceutix (Redmond WA) booth to learn more about the company s latest exciting probiotic strain clinical research and its patented BIO-tract and Viablend delivery system advancements including the new patent-pending BIO-tract II delivery system. Also join Nutraceutix as the company sponsors the popular post-conference Probiotics Workshop. For more information call (425) 883-9518 or visit www.nutraceutix.com. Once Again Nut Butter--Booth 228 Once Again Nut Butter s (Nunda NY) butter ingredients make better butter products The company is excited to exhibit Once Again at SupplySide West. Once Again Nut Butter s wholesome delicious products are wonderful ingredients in bars ice cream cookies crackers--lots of things All of the company s nut and seed butters are non-GMO verified and gluten-free certified and they are fabulous in recipes. Most of Once Again Nut Butter s products are available in 9- and 35-lb. tubs and many are available in drums. For more information call (888) 800-8075 or visit www.onceagainnutbutter.com. 60 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 www.niemagazine.com October 2015 Ocras Naturals--Booth 1866 Orcas Naturals (Landing NJ) is a leading developer of botanical extracts. The company s core business has expanded to include U-Caps 100 percent vegetarian liquid capsules. Orcas Naturals facility is NSF Certified for cGMP compliance and provides custom liquid capsule development and quality testing in the company s in-house laboratories. This new technology offers a solution for challenging formulations. Oxystorm (red spinach) a nitric oxide booster is the company s newest ingredient in Orcas Naturals Sports Nutrition line. Join Orcas Naturals at booth 1866 to get acquainted with the company s team and enjoy complimentary samples of Oxystorm. For more information call (888) 80-ORCAS (67227) or visit www.orcasnaturals.com. Pizzey Ingredients--Booth 4176 Pizzey Ingredients (Russell MB Canada) will be co-sponsoring the SupplySide West Functional Foods Summit taking place on Tuesday from 1 30-4 30 p.m. Pizzey Ingredients personnel will be on hand to discuss incorporating PurFlax s many benefits into your functional food product. Please also visit booth 4176 to sample a delicious beverage made with BevPur the flagship product in the company s PurFlax line of flaxseed ingredients. For more information call (204) 773-3532 or visit www.pizzeyingredients.com. Sabinsa Corporation--Booth 4121 Visit the Sabinsa Corp. (East Windsor NJ) booth to discover the exciting benefits of LactoSpore Sabinsa s room-temperature stable probiotic that is all the rage now. Plus discover curcumin that is non-staining and off white in color making it easy for your customers to enjoy taking curcumin. You can also explore the range of exciting sports nutrition ingredients and talk to Sabinsa about manufacturing your finest formula with the company s state-of-the-art contract manufacturing center located in Utah. For more information call (732) 777-1111 or visit www.sabinsa.com. Suan Farma Inc.--Booth 1813 Suan Farma Inc. (Fair Lawn NJ) is an enterprise of raw material supplies to the health science arena that encompasses the pharmaceutical nutraceutical cosmetic food agriculture veterinary and biotechnology markets. The company s core competencies are the quality assurance and international regulatory support that complements its sourcing capabilities. Together with its strategic alliances Suan Farma complements supply with R&D services such as personalized development of in-vitro in-vivo and clinical pharmacological methods for drug evaluation biological standardization of herbal products and other innovative bio-assay applications. For more information call (201) 343-1188 or visit www.suanfarmausa.com. October 2015 www.niemagazine.com Celebrating 20 Years of Excellence 1995-2015 Go to www.niemagazine.com mackflavor Nutrition Industry Executive 61 Equipment&Packaging Douglas Machine Introduces SmartSelect Automatic Changeover Douglas Machine Inc. a Minnesota-based company introduced SmartSelect an automatic changeover feature for multi-lane infeed conveyors and infeed rails. The independent rail positioning provides for fixed-side center-adjust and variable width positioning of multiple lanes. The new feature expands the company s automatic changeovers and fulfills the market need for a fast and repeatable conveyor and infeed changeover the company said. According to the company the SmartSelect benefits include improved egronomics changeover time reduction and repeatability. The rail positions are recipe-driven and locked into place to - 1 32 with enough holding force to withstand high product pressure. For more information visit www.douglasmachine.com products-solutions. Pigment Colorant Supplier Goes Live on ProcessPro ERP ProcessPro an ERP software solution company based in Minnesota announced the implementation of ProcessPro Premier with a premium pigment colorants manufacturer. American Colors Inc. an Ohio-based company selected ProcessPro when it discovered a need for a fully integrated system that would help fill current demands as well as handle growth within the organization. According to ProcessPro the ProcessPro Premier is the ERP of choice for many mid-sized chemical nutraceutical pharmaceutical and food and beverage manufacturers. The reason for this is because it addresses multiple industry-specific requirements for organizations to remain competitive. We are extremely pleased with the implementation process and our actual go-live was exciting and seamless with immediate benefits from all the pieces of our new investment said Patrick Militello American Colors Inc. vice president. Automated Warehouse Solution (AWS) has allowed us to gain visibility across our three locations and we have been able to bring our processes back into one integrated system THE NUTRITION INDUSTRY S without high modification costs. NEWS & INFORMATION RESOURCE For more information visit www.processproerp.com. 1995 20 Y ars Celebratingellence e of Exc 2015 West Rock Introduces FlexFit NIE s Upcoming 2015 Issue Highlights Nov. Dec. 10 23 15 ad closing Supply Innovation 2016 Media Planner Coming Soon Contact Your Advertising Sales Specialist for More Details Contact One of Our Ad Specialists Today Russ Fields at 732-432-9600 ext. 102 or e-Mail RussF VRMmedia.com Roy Kieffer at 719-358-9838 or e-Mail RoyK VRMmedia.com Gary Pfaff at 732-432-9600 ext. 103 or e-Mail GaryP VRMmedia.com Virginia-based WestRock Company a paper and packaging company announced the launch of FlexFit a flip-top dispensing closure specifically designed for flexible pouches across personal care home and food applications. FlexFit is designed with a latch-back cap feature that ensures a clean dispense by keeping the cap away during use. It also comes in a range of orifice sizes and shapes which gives brands an option to choose the best fit for their product. The idea behind FlexFit is at the intersection of urbanization and mobility said Bill Riley vice president at global innovation research and development and design at WestRock. The growing urban population needs solutions that can be refilled and stored in small spaces. Riley said that consumers want products that can be fit into their busy lives and brand owners are not different. Lower cost and less material use that can be easily shipped is something that companies want and FlexFit can provide. FlexFit manufactured in the U.S. is made of high-density polyethylene and can be used in food applications such as condiments and non-food products like detergents. For more information visit www.westrock.com. www.niemagazine.com October 2015 62 Nutrition Industry Executive Celebrating 20 Years of Excellence 1995-2015 Advertiser Index Alkemist Labs Avanti Polar Lipids Ayush Herbs Bergstrom Nutrition Biova LLC Certified Nutraceuticals Chemi Nutra Deerland Enzymes DPL-US Dr. Paul Lohmann Dr. Vita Extracts & Ingredients Ltd. Fenchem Inc. Generex Labs Healthco Herbally Yours Jiaherb Inc. JT Naturals LLC Kyowa Hakko USA Lonza Inc. LycoRed Corp. Mack Flavor Ingredients Inc. Natreon Inc. NAXA Nutraceutix Inc. Nutragenesis Nutralliance Inc. Nutrition 21 LLC Nutritional Engineering Inc. Olcott Plastics Once Again Nut Butter Orcas Naturals Pinnacle Labs International Inc. Pizzey Ingredients PLT Health Solutions Inc. Sabinsa Corporation Soma Labs Inc. Suan Farma Inc. United States Pharmaceopea 9 16 41 11 C3 31 45 43 35 6-7 46 15 30 1 38 5 13 47 49 17 61 21 19 14 37 23 51 26 25 44 39 27 40 3 C2 48 33 C4 (714) 754-4372 (800) 227-0651 (800) 925-1371 (888) 733-5676 (877) 682-2673 (951) 600-3899 (866) 907-0400 (770) 919-8907 (631) 851-8810 (888) 793-0351 (908) 688-9009 (909) 597-8880 (239) 592-7255 (800) 477-3949 (480) 892-8220 (888) 542-4372 (417) 553-0977 (212) 319-5353 (800) 365-8324 (877) 592-6733 (951) 683-6245 (732) 296-1080 (832) 843-7287 (425) 883-9518 (802) 257-5345 (714) 694-1400 (914) 701-4500 (760) 599-5200 (630) 584-0555 (585) 468-2535 (888) 806-7227 (800) 600-4634 (204) 773-3532 (973) 984-0900 (732) 777-1111 (732) 271-3444 (201) 343-1188 (301) 230-6361 www.niemagazine.com alkemistlabs www.niemagazine.com apl www.niemagazine.com ayushherbs www.niemagazine.com bergstrom www.niemagazine.com biova www.niemagazine.com certifiednutraceuticals www.niemagazine.com cheminutra www.niemagazine.com deerland www.niemagazine.com dpl-us www.niemagazine.com drvita www.niemagazine.com extracts www.niemagazine.com fenchem www.niemagazine.com generexlabs www.niemagazine.com healthco www.niemagazine.com herballyyours www.niemagazine.com jiaherb www.niemagazine.com jtnaturals www.niemagazine.com kyowa www.niemagazine.com lonza www.niemagazine.com lycored www.niemagazine.com mackflavor www.niemagazine.com natreon www.niemagazine.com naxa www.niemagazine.com nutraceutix www.niemagazine.com nutragenesis www.niemagazine.com nutralliance www.niemagazine.com nutrition21 www.niemagazine.com nutritional www.niemagazine.com olcott www.niemagazine.com onceagain www.niemagazine.com orcasnaturals www.niemagazine.com pinnaclelabs www.niemagazine.com pizzey www.niemagazine.com plt www.niemagazine.com sabinsa www.niemagazine.com somalabs www.niemagazine.com suanfarma www.niemagazine.com usp Industry Events October 5-9 SupplySide West Mandalay Bay Expo Hall Las Vegas NV (866) 230-2311 www.marketplace.supplysideshow.com October 2015 www.niemagazine.com Celebrating 20 Years of Excellence 1995-2015 Nutrition Industry Executive 63 SupplieroftheMonth Paul R. Faganel President Embria Health Embria Health Sciences 2105 SE Creekview Dr. Ankeny IA 50021 Phone (515) 963-9100 Fax (515) 964-9004 Embria Health Sciences is dedicated to creating and manufacturing natural science-based ingredients that support wellness and vitality. Sciences The company s ultimate goal is to provide the proven efficacy and safety needed for products that help people stay healthy and maintain a high quality of life and help them live more healthy days. Embria s ingredients are all made in America and are supported by years of thorough research and development. The company guarantees consistent and reliable ingredients by having accomplished professionals use leading edge technology in our manufacturing and quality systems. Here Paul R. Faganel president of Embria Health Sciences discusses the company s EpiCor ingredient. NIE Christie Rampone captain of the U.S. Women s National Soccer Team and 2015 World Cup Champions is a spokesperson for EpiCor. How has the relationship benefitted the brand Faganel Christie Rampone was introduced to EpiCor by a friend of hers in 2013. After experiencing tremendous benefits with the product during the winter of 2013-2014 Christie decided to partner with Embria. As the spokesperson for EpiCor Christie brings an authentic message of how a strong immune system is key to her everyday health while meeting the demands and stresses of being a career woman active mom and wife premier athlete and leader. Embria has benefitted from its relationship with Christie on multiple fronts. Christie has generated media awareness for the EpiCor brand through appearances at top news outlets including the New York Times New York Post Fox Business News TV CBS News Sports Illustrated ESPN Huffington Post and more. Total impressions due to media placements over the last 12 months are 103 660 754 with a PR value of 3 638 547. Christie has conducted herself in a professional and accommodative manner for Embria as an ambassador for the EpiCor immune strength message. The EpiCor brand is enjoying its highest level ever with aided awareness among supplement users reaching 10 percent. Also the EpiCorimmune.com website is enjoying its best traffic ever (up 35 percent year over year) and our 64 Nutrition Industry Executive Facebook likes have increased by 66 percent. NIE What s the recent news on EpiCor Faganel In 2010 Embria received the SupplySide West Scientific Excellence Award for EpiCor--the first ever award for an immune ingredient. Research continues to draw the link between the digestive system and the immune system so we were not surprised to find in one of our most recent published studies that EpiCor was shown to have beneficial effects on the digestive system. In the sophisticated digestive models used in the study EpiCor was shown to act like a prebiotic by increasing levels of friendly bacteria as well as by increasing butyrate an important short chain fatty acid for gut health. Embria will continue to invest in research to demonstrate how EpiCor benefits overall human health and wellness. NIE Last year the company launched a social media campaign in support of Vitamin Angels. Why did Embria choose to create the campaign via social media Faganel Part of Embria s mission is to help people live more healthy days. Therefore we look for ways to support the community and those in need. Vitamin Angels was a perfect partner for us because the organization does such amazing things for children around the world by providing the nutrients they need to survive and thrive. Social media was really the ideal outlet for this campaign because people were able to engage and Celebrating 20 Years of Excellence 1995-2015 interact by commenting liking and sharing. Through the Vitamin Angels campaign on Facebook we not only donated to a great cause we raised awareness of Vitamin Angels and the EpiCor brand by getting people and our customers involved in the effort. NIE Please explain Wellness Programs With EpiCor. Faganel We have had successful trials for the wellness program including with the City of Ankeny (Iowa) and with Swanson Health Products. The four-month-long Swanson campaign in which 120 employees participated resulted in 78 percent believing that EpiCor benefited their health and 86 percent reporting that they would recommend EpiCor to others. Embria is very willing to work with companies who want EpiCor as a part of its wellness program. They can simple contact us and we will work with them to get the program started. NIE Where do you see the company headed Faganel Embria is really focusing on supporting our existing EpiCor customers sales efforts and building distribution worldwide. Domestically we ll continue to invest in raising awareness of the EpiCor brand so that our customers can benefit from consumer pull towards their products. Embria also supports our customers by continuing to invest in world-class research which helps our customers develop stronger health claims and better differentiate their products containing EpiCor to fulfill demanding and evolving consumer needs. www.niemagazine.com October 2015 Go to www.niemagazine.com biova for info about this advertiser Go to www.niemagazine.com usp for info about this advertiser