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[ General Perceptions of the Represented Products and Evident Trends | Issues and Concerns | Opportunities for Alberta Companies | Sessions Attended | "Where's the Beef? - Organic That Is" | "Creating and Keeping Customers" | Healthy Food Trends | The New Organic Market | "Understanding the American Market" | Food Borne Pathogens | Cosmetic Ingredients & Claims | "Natural Approaches to Depression" | Sports Supplements | "State of the Industry" | "Hemp for Personal and Environmental Health" | "Oats: A Healthy Grain with Healthy Scientific Support" | Homeopathic Medicine ]
The Natural Products Expo is a major trade show for participants of the natural product and organic industries. The 31,000 attendees included 11,000 retailers (health food stores, natural and organic product supermarkets, food service and stores connected to alternative health care providers and fitness gyms etc.), wholesalers, distributors, brokers, alternative health care providers :chiropractors, naturopaths and some allopathic physicians and pharmacists wanting to learn the latest about the natural products industry.
In the Marketing Services Division U.S. Team business plan for 1998/99, the Team identified the need to do an organics project as the first study under its long term strategy of identifying and researching niche product opportunities in the Pacific Northwest U.S. (the study in now underway with the selection of Serecon/Globalwise).
With more than 2,100 exhibitors in eight pavilions it was believed that there would be significant opportunity for Ken McCormack to network with other show attendees and exhibitors and collect useful market information and intelligence at both the show itself and the seminars that were included. It would be possible to identify trends and direction in the agri-food industry and to collect information on niche market opportunities/constraints for the Alberta organic/natural foods industry. With an increasing number of client requests for information on the natural products and nutraceutical market and the difficulty in finding timely information, Joyce Lencucha, Agri-Food Development Specialist requested and received permission to attend this trade show and conference. Having four specific clients in mind allowed focused investigation of specific parts of the expo.
Ron Wegner, of Investment Development Branch, attended to gain a better understanding of the Natural Products Industry to help identify investment attraction opportunities for Alberta. Primary objectives were to identify sectors of the Natural Products industry which could benefit from locating value-added processing in Alberta. The development of processing could be in the form of building new production facilities or developing strategic alliances or co-packing relationships with existing Alberta processors.
The expo was divided into areas or pavilions:
On March 11 the Organic Trade Association sponsored an Organic Market Place under a big top tent which really gave it a farmers' market atmosphere. Many of the fresh produce exhibits only attend this day and were not represented at the trade shows on subsequent days.
In addition, the expo included numerous educational seminars, some directly related to the conference others company sponsored and held in neighboring hotels. The seminars ran a full day longer than the trade show and only mornings once the trade shows commenced. The following notes highlight the trends and information that we were able to identify during the three day event.
Although disappointed to some extent by the low percentage of food products relative to the other areas like nutritional supplements and cosmetics, there was still clearly great interest in what was represented. It is doubtful that any companies who were present and did not have contracts with brokers or distributors, left that way. Certainly the trends that were discussed in the seminars and symposiums were evident in the food showcase and it was interesting to note from the entire Expo that the trends and concepts that are occurring in the PNW U.S. are not so different from what can be expected in Alberta in the coming years. (Exceptions could be made with respect to the popular types of food at the food service and HMR level. Alberta will likely have a similar interest in organic and natural Asian and Italian cuisine, whereas Mexican and Mediterranean foods may be popular in the U.S. due to their ethnic composition. It may be more likely that Indian cuisine will be more evident in Canada)
Organic/Natural Foods
There is a wide variety of organic foods that are available to consumers. The largest representation seemed to be in the area of cereal products (including pastas [including Kamut], cookies, nutritional bars, breakfast cereal, tortilla chips, rice crackers, milled grains [including Kamut], pizza doughs, granola, bread mixes, cereal based dessert mixes, granola bars, rice flour, crackers, pretzels, and others).
Dairy was also well represented with ice cream, milk, yoghurt, cheese, dairy-based coffee and tea drinks and dairy based chocolate. There were also dairy replacements like soy and rice drinks, and coffee creamers.
Functional beverages are considered a major growth area in the industry and were well represented. They could be divided into four primary segments based on usage: isotonic drinks, lifestyle / wellness drinks, meal replacement drinks and medicinal teas. Tea and coffee could be found in raw leaf or bean form all the way to processed drinks available in bottles and cans. Of course flavors were very popular in the tea bags particularly green tea and most of them made some claims as to the benefits of the added herbs or the flavors. There was water everywhere you turned and quite a number of sodas and fruit drinks available, usually with herbs mixed in. Ready to drink meal replacement beverages containing soy rice or other non-dairy ingredients and sports drinks, in liquid and powder form, were popular.
Another extremely popular trend was the number of booths/companies dedicated to the sale of meal replacement bars for athletes. This has been a growth area for some years now, and judging by the response to these displays at the Expo, it is likely to continue to see considerable growth.
Produce-based products like vegetable burgers, fruit and vegetable drinks, soups, pasta sauces, salsa, bean chips, potato chips/sticks, packaged vegetables, salad bags, dried fruits and vegetables, nuts, vegetable based dips for chips and crackers, figs and orange juice. Packaged beans and pulses were also evident.
Another area that was clearly a large growth are is in the area of sauces. This product category was well represented by a number of suppliers of soya sauces (different flavors), multi-purpose sauces, vinaigrettes and dressings infused with herbs and spices (i.e. for pastas, salads, etc.), peanut butter, flavored syrups for coffee and tea, infused oils (i.e. rapeseed, flaxseed, soybean, sesame, etc.), and maple syrup.
Meat products were not very well represented with only a few booths. There was a variety of jerky including tuna, salmon, turkey and a beef/ostrich combination called Ostrim. There was a little ground beef and ostrich stirfry meat. One trend that seems to be reversing is the use of tofu as a meat replacer. It is still used and as available at the Expo, but far less than one would have expected. Organic eggs is also a growth area with three or four companies taking part in the show.
Hemp-based food products were also available including seeds that could be consumed like granola and hemp tortilla chips. Candies and chocolates was another area that was represented.
The greatest difficulty at the show was distinguishing between organic and natural products. All of the products listed above encompass both categories. Considering the definition and certification troubles that the U.S. is having (similar to Canada), it is little surprise that most of the products represented would have to be considered natural products as opposed to organic. Cereal-based products seemed most likely to be organic as well the produce, eggs, and some of the dairy category.
Herbal/Medicinal Products/Vitamins/Supplements
There was definitely no lack of these products. It was actually somewhat overwhelming to see just how many companies were selling herbal-based medicinal products. That is, until you started to see the repetition in the herbs themselves. While there was some variety of herbal remedies, the majority were clearly those that contained Echinacea, ginseng, ginkgo, kava kava, and St. John's Wort. There were numerous combination formulas directed to specific health concerns: cholesterol health, prostrate health, athlete's needs, menopause, bone strength, tension and mood, memory and concentration, cold season preparations. Everywhere you turned, companies were trying to give away samples and sell the merits of using herbal remedies. It seemed evident that the growth market that these companies are trying to target are mainly the elderly and children. Claims on products included relief from stress, insect bites, sunburn, swelling, cold symptoms, aches and pains, headaches, sexual dysfunction, anxiety, indigestion, etc. Another surprise was just how many companies when asked were forced to admit (usually in a round about way) that their products have not yet received approval by the U.S. FDA.
Two companies indicated their interest in importing "all of the herbs that we can produce". Others indicated interest in presentation from new ingredient suppliers. Many are compounders or solely marketing companies so it would be necessary for Alberta companies to identify specific labs doing the formulations.
Natural Pet Foods
The companies in this category were proof of the trend that people are caring for pets as they do themselves and family members. Many of the products contained herbs, ginseng and garlic were popular and chelated vitamins while others contained only organic ingredients. There were also supplements for pets including multi vitamins, and formulas designed for health concerns: joint recovery, ‘natural flea eze'.
Publications
The sheer numbers of magazines focused at this industry was amazing and an indication of its size. The insider and its buying guide will be a good resource as will some of the organic and nutraceutical publications.
Cosmetics / Personal Care
The final area of interest was that of natural products used in the cosmetics / personal care market. Representation was made from companies selling natural product-based deodorant, aroma therapy, lip balms, lip stick, soap, skin lotions, baby effects (wipes, gel diapers), massage therapy, shampoo, conditioners, and sun screen lotions. Hemp was a popular product in this category as it was in the food area as well.
On the other hand the industry recognizes that the large pharmaceutical companies themselves bring credibility to the industry and many believe will attract an entirely different customer base than those of health food stores, gyms and alternative health practitioners. In addition these companies have research and development departments and/or the funds to support independent research.
Market Opportunities
An Alberta company launched an organic line of pasta earlier this year that is already receiving considerable interest from brokers, distributors and retailers in Canada.
At the producer level, there is interest in starting organic egg production. Difficulties arise in terms of accessing quota as new producers.
There are cattle feedlots in Alberta that are considering switching to organic production. There is a window of opportunity here as the U.S. wrestles with the issue of standards and certification.
Interest has been expressed in accessing organic dairy production in Alberta by a U.S. Dairy company. There is a difficulty in finding organic milk since there does not seem to be any in Alberta yet. The U.S. company is interested in negotiating with a local dairy to process the milk and form a type of cooperative in production and processing and market the product under their name. Could also lead to cheese and yoghurt.
Nature's path out of B.C. which produces a line of cereals has been looking for organic malt barley out of Alberta. There is product in Alberta and we are following up on this.
As hemp production is illegal in the U.S., there is an opportunity for Alberta companies to grow a natural product and process it for the food, clothing and cosmetics industries. Very popular in the U.S. Body Shop, for example, already has a line of hemp-based bath and cosmetic products.
Alberta could also take advantage of its commodity base to form an organic snack food line (i.e. crackers, potato chips, pretzels, etc.)
Alberta could also be growing organic/natural vegetables for sale as product or for value-added sales as packaged vegetable sticks and salad bags.
Organic canola oil, possibly infused with organic herbs could also be popular in Canada as infused natural oils are already popular in the U.S. (Safflower, soybean oil, olive oil, some canola oil)
Investment Opportunities
In 1997, Natural Foods represented $7.7B U.S. in sales which is 1.7% of the $460B U.S. food products industry. Although a small component, natural and organic foods grew at a rate of 10% compared to 3% for traditional food products.
Discussions with exhibiting companies identified a number of general opportunities:
These types of opportunities suggest the need for value-chain development which may include co-packing in Alberta to supply Canadian and U.S. markets being developed by the U.S. companies.
As well, California-based natural products companies such as, Santa Cruz Fine Foods (San Jose) who produce organic snacks, sauces and condiments may be attracted by production in Canadian dollars for the Canadian market as well as cost effective distribution to mid-west U.S. markets.
There are a number of places where Alberta companies could be competitive:
"Where's The Beef? - Organic That Is?" - Presented by George Siemon, CEO CROPP Cooperative, and the Livestock Chairperson for the Organic Trade Association; and Eric Newman, Organic Valley
In the U.S., meat represents 20% of the retail market, but the USDA still has difficulty with regulating organic product. In 1985, the USDA formally excluded beef from its organic standards. It took until January of this year before producers were able to get the USDA to recognize certification for organic beef. The USDA still will not allow products to be labeled as "certified organic", but will permit packaging to include "(product) Certified Organic by (certifying body)". An example would be "Hot Dog Certified Organic by OCIA". Even with this allowance, there is still no accreditation for meat. Emerging issues in the industry centre on paraciticides and pasturing.
Industry representatives in the U.S. maintain that for the organic meat industry to become strong and protected from scrutiny, the necessary infrastructure would include producers, livestock suppliers, feed suppliers, slaughter plants, processing plants and ingredient suppliers all practicing recognized organic practices. Even still, there are major problems with finding agreed definitions of what constitutes organic and natural products. Natural is considered to be a medium between conventional and organic products. When considering the use of antibiotics, hormones, feed with pesticides and animal bi-products, and whether the animals were confined to a specific area, conventional producers would answer yes, natural producers would answer maybe, but organic producers must answer no.
Organic producers are cautious not to say that their product is better than conventional, only that they are offering a healthy alternative. There will be a market for both for the foreseeable future at least. With no single federal law on certification, different certifying bodies have variations of their accepted production and processing practices. This creates a difficult trust issue for retailers and consumers and will impede the growth of the industry. Organic producers want a federal law on standards and certification especially if they are to grow product for export markets.
The following are results from a recent consumer survey:
Concerns, therefore, in the industry which need to be addressed include (but are not restricted to) organic and natural product definitions, a single federal law governing certification and standards, manure management and its effects on water quality, contamination effects resulting from grain fed to animals, the use of water from wells and creeks (contaminants in rain water) for animals that may be contaminated, proper pasturing and evidence of paraciticides.
"Creating and Keeping Customers" - Presented by Performance Research Associates, Inc., Dr. Thomas K. Connellan
Partially due to increased global and local competition, customers are becoming much more demanding and knowledgeable. Consumer perceptions are not based solely on service providers in your industry, but on all service providers in general. Service providers are in the memory management business, the most important being the first and last impressions. Problems must be seen as potential opportunities to attract loyal customers. Research indicates that those consumers who have had problems with service providers where their concerns were dealt with effectively are more likely to come back than those who had no difficulties. It is an opportunity to build trust by expressing your commitment to the consumer and the service you provide. That is not a recipe to create problems so that you can solve them. Research also indicates that most customers will not give you the opportunity to fix it. As a service provider, you will only hear of 1 in 19 complaints from customers.
"Loyalty is not built from happy accidents, but impeccable attention to detail, seamless teamwork, etc." Every time that a customer comes into contact with your staff is a moment of truth (MOT) and each MOT must be a value-added experience. Service providers must look at every situation from a customer perspective if they are to be successful. Since accidents are inevitable, the following are tried and true service recovery steps:
Ensure that you do not move so quickly to fix the problem that you neglect to fix your relationship with the person. Service standards are not what we want staff to do, but how we want the customer to feel. Therefore, rules can not detract from employees empowerment to deal with each situation as an individual case requiring individual remedy. Behavior guidelines, therefore, are more important than hard and fast rules in the workplace.
Customers evaluate your service based on experience, not expectations. Service providers must manage both outcomes and process in order to be successful.
V=f (QSP) where
V = value
Q = quality
S = service
P = offered price point
"Healthy Food Trends: Past, Present and Future" - Presented by California State Polytechnic University - Dr. Sandy Kapoor
Bold distinctive flavors are here to stay. This is the message that participants at the Expo heard numerous times, and in most cases, it was backed up by research. In this case, Dr. Kapoor used demographic and immigration data and her understanding of the market to emphasize this point. Baby Boomers continue to be the largest age group in the North American population and immigrants now comprise 1/10 of all Americans (40% Hispanic and 24% Asian). In addition, and perhaps because of the immigration trend, Americans are accustomed to bolder flavors.
In terms of food selection, taste is the #1 consumer criteria. Following this are nutrition, product safety, price, storability, ease of preparation, food preparation time, and product packaging that can be recycled. Roughly 50% of Americans are concerned with nutrition, while most of the remainder are at least somewhat concerned. Consumers want foods that are low in fat and cholesterol but will not sacrifice taste.
With respect to flavor trends, due to the large and growing ethnic population, Asian spices will continue to be popular, as will tropical flavors and regional flavors (i.e. those that are indicative of certain parts of the U.S. like Marionberry from the Midwest). Consumers will also be looking for seasonal flavors available year round (i.e. watermelon), and garlic (especially roasted) will join salt and pepper as main seasonings at the dinner table. Herb and spice blends will become increasingly more popular as consumers demand more texture to their food. The use of flavored marinades and sauces (soya sauce, chutney, salsa, etc) will continue to be popular, as well as flavored oils and vinegars. Jams, jellies and marmalades will increase in popularity and likely become food ingredients, and consumers will be looking for healthier sweetening agents (types of honey, maple syrup, etc.).
In the food service area, ethnic restaurants will continue to grow in popularity and traditionally mainstream restaurants like Mexican, Italian and Chinese will move towards fine dining, a reputation niche reserved for french cuisine. Products and meals will become more sophisticated with light, flavorful sauces and more texture.
Pizza will continue to see growth, but higher quality ingredients will be necessary in order to compete. Ethnic flavors in pizza will also be in demand. Pizza crusts will be flavored and available in many sizes. Other popular cuisine will include:
Freshness, or at least the perception of freshness, will be a driving force at retail and food service and consumers will become more demanding of their retail establishments in that they provide documented proof of food safety and handling procedures. Presentation will become increasingly more important (i.e. packaging) and organic/natural foods will appeal to the safety and environmental concerns of consumers. Fruit and vegetable consumption will soar and the vegetarian movement is becoming more, not less popular. Fish consumption will rise and poultry will remain popular. Alternative meats will become more popular and American consumers will be demanding leaner cuts of red meat. Sandwiches, soups, salads will have great growth momentum and noodles of all shapes, sizes and ethnic origins will flourish.
The most successful food suppliers will be those who can offer great taste, good texture, convenient preparation, appease consumer fears of food safety and environmental stewardship, assure a healthy food content and deliver it in an attractive package. Price will be important but many consumers will pay extra for what they want.
( Excellent speaker who would challenge and inspire Alberta companies with her creativity.)
"Growing Globally - The New Organic Market" - Presented by Bernward Geier - Executive Director, IFOAM; Patrick Holden, Director, Soil Association, Bristol, UK; Carl Haest, Haest Consultancy for the Organic Industry.
Carl Haest
Four thoughts:
Organic foods are produced now in 145 countries; 56 of these are in an advanced state. In the EU, organics went from hype to a trend and now to a lifestyle. It is mainstream. Organic retail sales in the EU are roughly $4.3 billion (US). U.S. is roughly $4.2 billion (US) and Japan is at $1.0 billion (US).
In the EU, the trend is to move away from small specialized stores and into large supermarkets dedicated to organic retail. Although the EU has greater sales that the U.S., the U.S. has far more variety. In the EU, organics is growing quickly in the catering industry (including airline food). Within the EU, Germany is the leader mostly with production in dairy, fruits, vegetables, baby products, breads and cereals.
The critical factors are price (not cheap but reasonable - 15-20% above conventional products), quality, and variety. Consumers buy organic product for personal health, taste, quality, environmental concerns, animal welfare.
The industry in North America must maintain integrity, don't sacrifice taste, protect from GMO's, harmonize certification, conduct generic marketing and invest in science and technology. Gaining and maintaining customer loyalty must be a key strategy. Trends are towards comfort/speed, health/safety, and value.
Bernward Geier (Green brochure on IFOAM)
IFOAM has 700 associations worldwide including all levels of industry. IFOAM is the basis for standards and regulations (standards, certification and accreditation) in the EU and other countries around the world. USDA has not used IFOAM as a basis for their regulations and standards which has contributed to their problems. IFOAM revises their regulations every two years and the trend s towards more strictness each revision. Organics is not the product, but the process therefore inspection must be of the production process, not the end product. Another problem with the U.S.
Certification is done by third parties, called certification bodies. They have a recognized logo, stamp, etc. verifying products as having followed and met the standards. Accreditation is a concern and IFOAM is investigating the issue of verifying certification bodies' accreditation. To accomplish this, IFOAM has formed the International Organic Accreditation Service Inc. (IOAS) which is responsible for approving accreditation.
Private sector in EU defines what is organic (not government). IFOAM has the backing of the WTO.
"Organic farming is sustainable agriculture put into practice" - IFOAM
Patrick Holden (Orange brochure on Soil Association)
The Soil Association supports high standards and unified certification standards and suggests that the U.S. should do the same. The Soil Association is pushing for a GMO free UK and EU in general. A strength of the Association in the UK is consumer involvement. They act as an effective lobby and promotion of consumer education and awareness. He believes that in addition to the comments of the other speakers, this is another flaw of the U.S. system. He believes that the U.S. requires an umbrella consumer association and that they should be involved as much as possible. Unlike the EU, the U.S. also does not have a coordinated retail association and this is also required.
The USDA must encourage organic farming and develop a policy network around it. Certifiers must be separate from government and the USDA should not be developing standards and accreditation. These should come from the private sector.
There is a push from the Soil Association and others in the EU for an EU organic seal as opposed to individual country seals. It is too confusing for consumers to have too many seals (there was much disagreement on the panel for this).
"Understanding the American Market" - Presented by Dale Kamibayashi - Director of Purchasing, Wild Oats Markets, Boulder, Colorado; Mayur Shah - Managing Director, Sunnyvale Bakery, UK; Michael Davis - Product Liability Specialist, Sidley & Austin, Chicago.
Dale Kamibayashi
Provided his insights as a buyer trying to keep up with trends and consumer demand. He outlined his presentation into seven major trends and concepts.
The key theme is that as a retailer, Wild Oats wants to eliminate (or at least reduce as much as possible) the risk to consumers.
Mayur Shah
The theme for this presentation was to recommend (based upon experience) a strategy for penetrating the U.S. Health Food Business.
In terms of process:
Stephan Beyer
Topic was product liability and there are two booklets on the topic from the firm. U.S law is very confusing on this issue and the larger your market becomes, the greater the chances that you will be involved in a product liability suit. U.S. (like Canada) is a common law country but there are 51 jurisdictions in the U.S. with their own rules (50 states and Federal). Obtain the services of a professional for security.
"Food Borne Pathogens: A Challenge for Organic Producers and Processors" - Mike Villaneva, California Department of Food & Agriculture (CFDA); Ted Lafleur, Seeds of Change - Research and Development Manager; George Laogidis, Organic rade Association, Rod Crossley , a consultant on organic production practices and pathogen control.
The speakers pointed out the various factors and concerns affecting food safety issues today: environmental contamination, emerging pathogens, risk and perceived risk- onerous regulations on all commodities because of problems, shift of concerns from pesticides to pathogens. Food safety incidents can have a major impacts resulting in lost reputations, market loss and trade issues not to mention financial loss and law suits.
Mike Villaneva was good speaker and will be a good contact for some issues He was frank with the audience and shared that some decisions are being made by administrators based on politics with no understanding of ag production nor processing. It is important to work hard to make sure that decisions are science-based. He shared how CDFA worked hard to ensure the federal government understood producer concerns and constraints on developing the Guidelines for minimizing microbial hazards in fruits and vegetables. He emphasized the need for producers to follow good production practices with special emphasis on soils, manure and compost, water, worker hygiene and sanitation, transportation, recall and traceback.
He stated that he felt good production practices and quality assurance programs were less difficult to initiate at farm level than a true HACCP type program. He emphasized that fruit and vegetable packing houses both on and off farm need to institute GMP's even if not FDA approved. He reemphasized the importance of water quality and worker hygiene.
Ted Lafleur outlined the vendor assurance program developed by his company and shared the step by step procedure a potential vendor (processor) must complete before being listed with his distribution company, Seeds of Change. His presentation emphasized the strict specifications for production and process control that some buyers are requiring of vendors before they will carry a product.
The other two speakers shared that organic producers and processors because of the strict requirements and documentation required by certifying agencies may be in a better position to meet the needs of quality assurance program than others.
Water quality was a genuine concern of attendees particularly irrigation ditch, stream water where there is less control over upstream contamination and the lack of research and costs associated with ensuring safety.
"Demystifying Cosmetic Ingredients & Claims" - Michael Rutledge, VP and Director of Research, Earth Science
The speaker focused on the difference between a cosmetic claim and a drug claim and the associated labeling, promotional materials etc. If it's too good to be true, it probably is.
Directing his talk to retailers he challenged them to question claims, ask for studies, ask to speak to staff in company laboratories. Think of cosmetics as nutrition for the skin. He reminded them that ingredients applied topically have a different function than internal to the body.
This session reconfirmed concerns about some small Alberta cosmetic manufacturers: the need to understand formulation - safe ingredients do not necessarily result in safe formulas, the need for microbial testing, skin patch testing etc., the importance of ingredient lists. "All natural, no preservative cosmetics with more that 1-2% water are going to spoil - possibly faster that food products!! "
"Natural Approaches to Depression" - Lise Alschuler, N.D.
The speaker first outlined the difference between dysthymia and major depression, and the types of patients with whom she would or not work. She reviewed lifestyle factors and potential physiological results and reasons for mild depression. It was actually a very good session pointing out the need for a holistic approach including lifestyle , environmental and dietary changes with selected nutrient and botanical therapies.
"Sports Supplements: What's new and , What's not" - Edmund Burke, Ph.D. ,Professor and director of the Exercise Program at the University of Colorado
With the number of booths at the expo devoted to this topic and interest from a Calgary company in manufacturing some of these products seemed an important session to attend. The speaker had excellent credentials . One of the most interesting points he made related to the potential of some supplements beyond sports application to AIDS patients and aging.
Many sports nutrition products claim everything from immediate recovery after endurance to increasing muscle mass more effectively than steroids without any substantiation. While this practice is still popular today, in recent years more and more companies are now supporting independent research and/or developing products based on sound research published in legitimate scientific and medical journals. Then objective claims can be made about the nutrients, supplement or product mixture. The industry can only gain from this process. If the products do what they claim they will do in the advertising , and the athletes benefit from taking the supplement , the FDA and the media will be more respectful of the industry said Dr. Burke.
Below are 10 questions he suggested be asked when investigating nutritional supplements in addition to evaluating their advertising or product literature:
The sports nutrition industry is growing but not at the same rate as other supplements ; more and more consumers are using these products not just body builders any more but an increase in use and sales as science shows their value to aerobic and endurance athletes. The major change in this part of the industry is distribution as products can be purchased at gyms, in food and drug store chains, on the web and catalogues aimed at specific sports.
He reviewed some of the major products, presented some of the research behind the products and also pointed out some of the strengths and weaknesses of some products. One area he stressed as important to all athletes was the area of muscle recovery. The need to restore fluids and important minerals to recover form dehydration.
"State of the Industry" - Thomas Aarts, President of Nutrition Business International
The natural products or nutrition industry includes: natural and organic food, vitamins, herbs and botanicals, minerals, sports nutrition and natural personal care items including cosmetics. The industry is estimated to be $23.2 billion in the United States. Aarts stated that growth rates within the industry are well above the rate of the economy and included:
While natural products represent only about 4% of their mainstream counterparts, net sales are growing at about 10% per year versus 3% for traditional products. Aarts forecast that "Natural Products will represent over $90 billion or 10% of the food, drug, and health and beauty care market by 2012.
There are both demographic and cultural factors driving this growth rate: aging boomers are making the connection between health and food. The number of boomers: 76 million and climbing and increased life expectancy is a factor. There is an increased interest in alternative medicines and therapies and this is expected to grow as some health managed organizations in the U.S. covering alternative therapies that are less costly. As well, there is increasing scientific evidence of the value of some of these alternatives and research in this area is expected to increase as the major pharmaceutical companies expand in the market.
The other speaker in this session gave a pictorial talk about some of the history of the industry and the other some of the ongoing sparring with FDA over the DHSEA - the Dietary Supplement and Health Education Act.
"Hemp for Personal and Environmental Health"- Chris Conrad, Author of "Hemp: Lifeline to the Future" and "Hemp for Health"
Mr. Conrad outlined the history of hemp in the U.S. from it's early use in paper and textiles, to incentives from the U.S. government for farmers to grow hemp to maintain a domestic fibre source during WW II, to the prohibition on hemp in U.S. by the DEA following WW II. At this time, it is still illegal to grow industrial hemp in the U.S. which presents an opportunity for hemp production and processing in Canada. His presentation confirmed that there is likely a window of 3 to 5 years to establish a hemp industry in Alberta and western Canada before it becomes legal to grow hemp in the U.S.
"Oats: A Healthy Grain with Healthy Scientific Support" - Gregory Paul, Ph.D., Quaker Oats
In 1997, oats received the first food specific health claim issued by the FDA. Recent clinical studies reported by Dr. Paul continue to support the overall heart health and lifestyle benefits of increased oat and oat component consumption. Most of the health benefits focus on oats effectiveness in lowering blood total cholesterol and LDL-cholesterol. Oat soluble fibre modulates glucose and insulin after a meal and slows digestion. This leads to a steady release of glucose which can have a positive athletic impact if consumed 45 minutes before athletic activity. The effect of oats slowing digestion also leads to less feeling of hunger between meals and reduced food intake at lunch when consumed at breakfast. The fats in oats are largely poly unsaturated and healthier than all other grains.
"Newest Research on Homeopathic Medicine" - Dana Ullamn, M.P.H, Author of "Homeopathy A-Z"
Mr. Ullamn has authored five books on Homeopathy and is one of the foremost spokespersons in the U.S. He has been particularly effective in working with major institutions to change attitudes and policies towards natural health care. High quality research is becoming available which is finding that homeopathic medicine was at least as effective as the conventional drugs and considerably safer and less expensive. The State of the Industry presentation by Tom Aarts also indicated that one of the fundamental driving forces for natural products is the increasing acceptance of alternative medicines and documentation from quality research. HMO coverage of alternative therapies such as homeopathy because of its effectiveness and lower cost will continue to support natural product growth.
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