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Industry News
April 28 , 2010

Vitamin Retailer News
NPA Certifies First Home Cleaning Product
The Natural Products Association (NPA) recently granted its Natural Home Care seal to Green Works® Natural Bathroom Cleaner, making it the first home cleaning product to be certified as natural under the organization’s new certification program.

Despite a surge in popularity of natural cleaners, confusion among consumers about what makes such products natural is high, said NPA. A recent national survey found that 77 percent of those surveyed reported confusion as to what natural means when it comes to home care products.

The seal means that the NPA and an independent third-party certifier have reviewed the product’s ingredients and manufacturing processes and determined that it meets the organization’s rigorous guidelines. Until the NPA launched its home care product standard in February, there was no independent certification program in place focused exclusively on verification of natural ingredients and products. Now, the NPA’s easily identifiable seal will help consumers discern which products meet its high standard of “natural,” the association said. Shoppers can expect to see the seal on store shelves by May.

Under the new program, products must follow strict guidelines set out by NPA to merit bearing the seal. The criteria include, but are not limited to:

• Product must be made up of at least 95 percent truly natural ingredients or ingredients that are derived from natural sources, excluding water
• No ingredients with any suspected human health risks
• No processes that significantly or adversely alter the natural ingredients
• Ingredients that come from a purposeful, natural source (flora, fauna, mineral)
• Processes that are minimal and don't use synthetic/harsh chemicals
• Non-natural ingredients only when viable natural alternative ingredients are unavailable and only when there are absolutely no suspected potential human health risks
• Transparency and full disclosure of ingredients

The full set of criteria and the new seal can be found at www.thenaturalseal.org.

Nutricap Labs Announces Retail GMP Webinar
Nutricap Labs (Farmingdale, NY) announced that it will host an exclusive webinar entitled “Will Your Supplement Shelves Be Ready? Understanding the Retail Impact of the June GMPs.”

Nutricap Labs Executive Vice President of Sales and Operations Jason Provenzano will lead this webinar. Provenzano has been recognized for his expertise in the areas of GMP certification, private labeling and contract manufacturing by numerous industry publications, making him the perfect presenter for this informational webinar, the company said.

During this webinar, Provenzano will provide the latest updates on the GMPs that are scheduled to take effect in June and how they will revolutionize the current state of the nutraceutical manufacturing industry. Attendees, who will receive Provenzano’s “The 8 Golden Rules of Contract Manufacturing,” will learn:

• What the June GMPs will entail
• How these regulations will impact the current state of the dietary supplement manufacturing industry
• How to choose between custom manufacturing and private labeling
• Insider tips on how to select a GMP-certified manufacturer

To register, click here.

For more information, call (800) 494-6154 or visit www.nutricaplabs.com.

Organic Products Retailer News
OTA Releases 2010 Organic Industry Survey Findings
US sales of organic products continued to grow during 2009 despite the distressed state of the economy, the Organic Trade Association (OTA) revealed in findings from its 2010 Organic Industry Survey. In fact, organic product sales in 2009 grew by 5.3 percent overall, to reach $26.6 billion. Of that figure, $24.8 billion represented organic food. The remaining $1.8 billion were sales of organic non-foods.

“While total US food sales grew by only 1.6 percent in 2009, organic food sales grew by 5.1 percent. Meanwhile, organic non-food sales grew by 9.1 percent, as opposed to total non-food sales, which had a one percent negative sales growth rate. These findings are indicative that even in tough times, consumers understand the benefits that organic products offer and will make other cuts before they give up products they value,” said Christine Bushway, OTA’s executive director.

Experiencing the most growth, organic fruits and vegetables, which represent 38 percent of total organic food sales, reached nearly $9.5 billion in sales in 2009, up 11.4 percent from 2008 sales. Most notable, organic fruits and vegetables now represent 11.4 percent of all US fruit and vegetable sales. Since the approval of the final National Organic Program rule published in 2000, sales of organic fruits and vegetables have grown from $2.55 billion, representing approximately three percent of all fruit and vegetable sales, to the nearly $9.5 billion level and 11.4 percent penetration level. Meanwhile, during that time, organic food sales have grown from $6.1 billion to $24.8 billion in 2009, jumping from 1.2 percent of all US food sales to 3.7 percent.

The mass-market channel had the lion’s share of organic food sales in 2009, with 54 percent of organic sold through mainstream grocers, club stores and retailers. Natural retailers were next, with 38 percent of total organic food sales. Although still representing a small percentage of sales, farmers’ markets, co-ops and CSA (community-supported agriculture) operations gained a lot of interest as consumers increasingly look for locally and regionally produced organic foods.

In the organic non-food sector, organic supplements led, with $634 million in sales, representing 35 percent of total organic non-food sales. Organic supplement sales were 12 percent higher than in 2008. Organic fiber (linen and clothing) totaled $521 million in sales, up 10.4 percent, while personal care products, at $459 million, were up 3.7 percent from 2008 sales.

The 70-page report is now available for purchase, priced at $795 for OTA members and $1,495 for non-members. Orders can be placed online by clicking here or by contacting Stella Sexton at ssexton@ota.com.

2012 Fancy Food Show Moves to DC
The 2012 Summer Fancy Food Show will be held at the Walter E. Washington Convention Center in Washington, DC. The unanimous decision to move the show in 2012 was made at a recent meeting of the Board of Directors of the National Association for the Specialty Food Trade (NASFT), as a result of the expected ongoing renovation of New York City’s Jacob K. Javits Convention Center, the show’s long-time home.

Two years ago, the NASFT decided to hold the 2011 Summer Fancy Food Show in Washington, DC. NASFT believes the renovation in New York will not be completed by 2012 and will continue to adversely impact the quality of the Fancy Food Show. The Javits Center is the permanent home of the Summer Fancy Food Show, and NASFT looks forward to bringing its 2,300 exhibitors and 25,000 attendees to New York City for years to come.

For more information on the NASFT and its Fancy Food Shows, visit www.specialtyfood.com.

Nutrition Industry Executive News
NPA Urges Senate to Reconsider FTC Expansion
On April 22, the Natural Products Association (NPA), representing the natural products industry, along with over 40 other major trade associations and business groups from a wide range of industries, sent a letter to Senate Majority Leader Reid and Senate Republican Leader McConnell strongly urging them to oppose the inclusion of provisions that would dramatically expand the rulemaking and enforcement authority of the Federal Trade Commission (FTC) in the financial reform bill Restoring American Financial Stability Act (S. 3217), currently pending in the Senate.

“Granting the FTC broad new authority across all but a few sectors of the American economy is not a necessary or relevant response to the causes of the recent recession. The financial troubles of the past year have not been laid at the FTC’s doorstep, and provisions to expand the Commission's authority are out of place in legislation to reform the financial system,” the letter stated.

The letter was a unified message from a broad variety of industry segments, including retail, advertising, automotive, food and consumer electronics, which also stated that “these FTC-related issues deserve their own due consideration and debate in the more appropriate context of an FTC reauthorization, as has been done in the past. We strongly urge the Senate to focus its current debate on restructuring the financial regulatory system, and not rush to make changes to the FTC that would have a fundamental impact on a broad segment of the business community.”

NPA also alerted its membership base of more than 10,000 retailers, manufacturers, wholesalers and distributors of natural products, including foods, dietary supplements, and health/beauty aids of the potential threat to the way the industry interacts with regulatory agencies, as well as how it currently conducts business. “We are asking our members to take action on this important issue by contacting their senators and urging them to focus on strengthening the stability of our economy, not regulating industries that had nothing to do with the financial crisis,” said John Gay, NPA’s CEO and executive director. “At a time when businesses are struggling to both survive and create new jobs, adding burdensome new regulations and ceding more authority over natural products businesses to the FTC is just what the economy does not need.“

For more information about the Natural Products Association, visit www.npainfo.org.

O.BERK Celebrates 100 Years, Receives Honor
O.BERK Company (Union, NJ), a full-service supplier and distributor of glass and plastic containers, closures, sprayers and pumps, has recently announced that 2010 marks the 100th anniversary of the founding of the company. Its namesake, Osias Berk, established O.BERK in Newark, NJ, in 1910. In 1925, the company was purchased by Isaac Goldstein, great grandfather of current O.BERK Chairman and CEO Marc M. Gaelen.

Four generations later, the company has grown from three employees to 150 in four locations. At its inception, O.BERK sold only glass bottles and containers; today, O.BERK provides a full line of glass and plastic containers along with many different types of closures, sprays and pumps, as well as decorating services. “And, proudly, we’ve grown into the largest organization in our industry in the mid-Atlantic region of the United States,” added Norbert Gaelen, O.BERK’s former chairman and Isaac Goldstein’s grandson.

In looking to the future of O.BERK in the packaging industry, Marc Gaelen offered his vision: “Our first 100 years have seen dynamic growth and diversification in our product lines, our customers and our complete service solutions. We will continue to differentiate ourselves in the packaging space as a leader in providing packaging solutions, not just packaging products. We will continue to work with our customers to provide all the resources they need to walk them through our total customer-centered packaging process, to manage their needs, and to exceed their expectations.”

In related news, Fairleigh Dickinson University’s (FDU) Rothman Institute of Entrepreneurship announced that its Family Business Forum has been renamed the O.BERK Company Family Business Forum thanks to a generous donation from Norbert Gaelen and his family in honor of the Company’s 100th anniversary. The Gaelen family’s commitment will enable FDU’s Rothman Institute to enhance its services and help more family businesses succeed. The O.BERK Company is a former member of the Forum.

O.BERK Company Family Business Forum will offer six seminars this year for those involved in family businesses. The morning seminars are scheduled through November and are open to members and guests.

For more information, call (800) 631-7392 or visit www.oberk.com.


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