Food Contact Chemicals Used in Production and Packaging Are Finding Their Way Into Humans
This article first appeared in the October 2024 issue of Presence Marketing’s newsletter.
By Steven Hoffman
Researchers working with the Food Packaging Forum discovered that of the roughly 14,000 known chemicals that are used in food manufacturing and packaging, approximately 25% or 3,601 of these food contact chemicals (FCCs) have been found in the human body. The chemicals include bisphenol, PFAS, phthalates, metals, volatile organic compounds, and many others that have been linked to endocrine system disruption, diabetes, obesity, neurodevelopment disorders, cancer and other diseases.
The study, Evidence for Widespread Human Exposure to Food Contact Chemicals, published in September 2024 in the Journal of Exposure Science and Environmental Epidemiology, comprehensively searched biological data collections for detections of FCCs in humans, such as from samples of blood, urine, skin, and breast milk. The data is now assembled and available in a public listing with an interactive search tool.
“Our research helps to establish the link between food contact chemicals and human exposure, highlights chemicals that are overlooked in biomonitoring studies and supports research into safer food contact materials,” lead author Birgit Geueke, Ph.D., and Senior Scientific Officer at the Food Packaging Forum, said in a news release.
When the research team reviewed scientific literature to learn what is known about FCCs detected in humans, they concluded there is a broad lack of knowledge of the effect of these chemicals on human health, and the potential hazards of many of these chemicals have not yet been sufficiently investigated. For other chemicals that migrate from packaging into the food, such as synthetic antioxidants and oligomers (a type of non-intentionally added substance that may be present in plastic food contact materials), the authors pointed out that little is known about their presence in and impact on humans.
“Many of these FCCs have hazard properties of concern, and still others have never been tested for toxicity,” the researchers wrote. “Humans are known to be exposed to FCCs via foods, but the full extent of human exposure to all FCCs is unknown.” It also is likely that the actual number of FCCs in humans is even higher because only a subset of FCCs was investigated in detail, noted the study’s authors.
Dr. Jane Muncke, co-author of the study, expressed concern over such widespread chemical exposure, stating, "This work highlights the fact that food contact materials are not fully safe, even though they may comply with regulations, because they transfer known hazardous chemicals into people. We would like this new evidence base to be used for improving the safety of food contact materials—both in terms of regulations but also in the development of safer alternatives."
The Great Chemical Migration
From shrink wrap and takeout containers to plastic bottles and coated paperboard packaging, scientists have known for years that chemicals can migrate out of food packaging into the food itself. We all know not to microwave food in plastic packaging, as high temperatures can cause the plastic to leach into the food. Foods high in fat or acidity also tend to absorb more chemicals from packaging, reported the Washington Post. Foods packed into smaller containers have increased risk of chemical crossover, too — Muncke shared with the Washington Post that on a recent flight she was given a tiny container of salad dressing. “They served the salad with a 15ml little plastic bottle with olive oil and vinegar that you could pour over. I thought, ‘Well, I’m not doing that,’” she said.
Muncke also shared with the Washington Post that while most of the chemicals leaching from food packaging come from plastics, “Probably the worst one is recycled paper and cardboard. And I know that’s a hard one to stomach.” Recycling paper, cardboard or plastic for food packaging leads to non-food grade inks mixed in next to food, she said, adding to the chemical exposure risks. However, in a positive regulatory move, FDA announced in February 2024 that paper and paperboard food packaging coated with grease-proofing PFAS chemicals would no longer be sold in the U.S.
In January 2024, Consumer Reports published an investigation into plasticizers used in food packaging to make plastic containers softer, more flexible and durable. Phthalate compounds — the ones most commonly used as a plasticizer — are so ubiquitous that it has been reported that 95% of all humans have detectable levels of phthalates in their urine. What Consumer Reports found in tests of nearly 100 foods was that bisphenol and phthalates are widespread in food products. “We found them in almost every food we tested, often at high levels. The levels did not depend on packaging type, and no one particular type of food — say, dairy products or prepared meals — was more likely than another to have them,” Consumer Reports said. From canned sliced fruit to pasta to yogurt containers, the investigation found high levels of phthalates in the packaging. Some organic products the consumer advocacy group tested also were not immune to high levels phthalates detected in product packaging.
In addition to packaging, foods are often subject to chemical exposure in the production, manufacturing and potentially in the transport process. According to Consumer Reports, while early efforts to limit food exposure to such chemicals focused on packaging, “…it’s now clear that phthalates in particular can also get in from the plastic in the tubing, conveyor belts and gloves used during food processing, and can even enter directly into meat and produce via contaminated water and soil.”
Leah Segedie, founder of consumer advocacy group Mamavation, has conducted PFAS investigations into a number of different consumer products, and also to provide consumers with guidance in searching for products free of such chemicals. In 2022, she released a report about PFAS contamination of pasta sauces, both organic and conventional. Out of the 55 different pasta sauces she tested in 2021, 17 were organic and four of those, or approximately 25%, had detectable levels of PFAS.
“I believe that PFAS contamination of organic products is also taking place during the manufacturing process and when products get transported,” Segedie told Max Goldberg, Editor of Organic Insider. “What is touching the food? Was a contaminated lubrication used on a machine? Was food stored in a vat that was fluorinated, as it was crossing the Pacific Ocean in an incredibly hot shipping container? Does the food contain contaminated spices? All of these and many other variables are the reason why the end-product should be tested, not just the ingredient,” she said.
Finding PFAS Free Alternatives
Responding to growing concern over “forever chemicals” in food and consumer packaged goods, a number of natural, organic and conscious CPG companies are offering alternatives for products that contain PFAS. The Environmental Working Group compiled a list, updated in January 2024, of companies that have declared their products have no added PFAS, in including food, fashion, beauty care and other consumer products categories. Online retailer Thrive Market this year announced in a blog on its website that, “Though more research is needed, PFAS are being studied as potential carcinogens. This month, Thrive Market added PFAS to its list of non-compliant chemicals and substances, meaning that you won’t find it in any products on our site.”
Businesses such as HeyBamboo, a toilet paper brand made from 100% bamboo, is committed to using absolutely no plastic in its packaging. “The wrap is made from bamboo, and so is the core of our toilet paper and paper towel products,” said company founder and CEO Joslyn Faust. “We like to say that we’re sustainable to the core,” she said. Another emerging brand, Generation for Change, is committed to making plastic-free health and personal care products, stating that it’s “a company made for the plastic-free generation.” In 2022, FoodTank reported on 19 food and beverage companies looking to move beyond plastic packaging
For natural and organic food brands, Charles Haverfield, CEO of U.S. Packaging and Wrapping, offered this counsel in 2023 in Sustainable Packaging News: “Selecting suitable materials for organic packaging demands a discerning approach. Choose options that minimize the presence of unwanted chemicals while upholding organic and sustainable principles. Materials like compostable plastics, plant-based fibers and paper offer a natural breakdown without leaving behind harmful residues. Glass and metal containers, which are highly recyclable and chemically inert, limit interactions with the packaged goods. Steer clear of some conventional plastics, as they can harbor hazardous additives like phthalates and bisphenol-A. Instead, explore alternatives like bio-based plastics or cellulose-based materials. It's important to note that while aluminum is recyclable, certain aluminum-coated packaging materials may contain additional coatings that clash with organic principles.”
A number of packaging suppliers are offering PFAS free options, such as Good Start Packaging, Delfort, CarePac and others, which offer compostable fiber and paper food packaging with no added PFAS. In January 2024, Organic Produce Network reported that a new third-party packaging standard, GreenScreen Certified — a collaboration between the Center for Environmental Health and Clean Production Action — will certify packaging products that are free from PFAS, as well as “thousands of other chemicals of high concern to human health and the environment.”
Learn More
Video Abstract: Evidence for Widespread Human Exposure to Food Contact Chemicals
Full Study: Evidence for Widespread Human Exposure to Food Contact Chemicals
Summary of Study: Evidence for Widespread Human Exposure to Food Contact Chemicals
Database on Food Contact Chemicals Monitored in Humans (FCChumon)
Food Engineering Magazine: Get the PFAS Out of Food Packaging Materials ASAP
Guide to PFAS Free Food Packaging
Mamavation Guide to Avoiding Products with Forever Chemicals
Environmental Working Group Guide to Companies Marketing Alternatives for Products that Contain PFAS
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Contact steve@compassnaturalmarketing.com.
First-Ever Newtopia Now Reinvents the Natural Products Trade Show Experience Through Connection and Community
DENVER (Sept. 5, 2024) — Newtopia Now, the inaugural health and wellness event for the consumer-packaged goods (CPG) industry, organized by New Hope Network and held at the Colorado Convention Center, received over 7,000 registered attendees, 4,000 of whom were registered buyers, creating a vibrant environment where connection and community were at the heart of the experience. With 560 exhibiting companies, including 180 companies exhibiting at a trade show for the first time, Newtopia Now successfully reimagined the traditional trade show by focusing on authentic interactions and purposeful discovery.
Newtopia Now is the immersive experience designed to foster deep connections and provide a platform for emerging brands and product innovation within the conscious products industry through four intentionally curated neighborhoods: Thrive, exploring the future of human health; Represent, celebrating diverse founders and multicultural products; Regenerate, championing sustainability and environmental impact; and Glow, featuring conscious beauty and holistic wellness.
Attendees were introduced to a range of innovative activations, including the Thrive Café, Tasting Bar, Represent Kitchen and Glow Salon, all opportunities crafted to help buyers experience products in real-life applications and encourage engagement with sponsors and exhibitors. Beacon’s product discovery platform and the Newtopia Now show mobile app further informed connections before, during and after the show with product information and buyer criteria being incorporated throughout the event. A standout feature of the show format was also The Market, a unique experience where attendees could explore products through self-discovery in a natural, grocery store-like environment. Instead of traditional price tags, QR codes linked to Beacon Discovery profiles, enabling a seamless and educational experience.
Receptions throughout the Thrive and Regenerate neighborhoods offered attendees an occasion to mingle and sample functional beverages, zero-proof mocktails and tasty bites as consumer demand grows for mindful alternatives for snacks and refreshments.
The event also hosted speed networking sessions and curated one-on-one meetings through the event’s matchmaking program, Conscious Connections, designed to pair investors and retailers with emerging brands and products, offering a rapid and effective way to build valuable relationships. Additionally, to cultivate organic connections and further deepen the sense of community, attendees participated in offsite experiences such as yoga at Red Rocks Amphitheater, neighborhood-themed dine-arounds throughout Denver and a brunch for women in CPG at Ophelia’s.
“Conscious Connections made it easier to meet with the buyers that wanted to meet with us, which made our meetings that much more intentional,” noted Jessica Harvey, sales operations manager, Dr. Bronner's.
“Newtopia Now was everything we hoped for and more. The opportunity to sample our pizza with this audience and the connections we made were invaluable. The show was a game changer for our brand,” remarked Kristin Caman, founder and chief executive officer, Etalia.
Newtopia Now’s four stages, found throughout each of the neighborhoods, hosted an impressive lineup of content focused on inspiring and educating buyers, brands and other members of the CPG ecosystem looking to differentiate their businesses. Keynote speakers included culinary icon Carla Hall, Blue Zones founder Dan Buettner and Vitamin Shoppe Chief Executive Officer Lee Wright. Additionally, the content lineup brought to the stage leaders from top retailers including Whole Foods Market, Target, Bristol Farms, Ulta Beauty, PCC and Thrive Market, sharing insights that would help brands not only get into those retail stores but also more effectively move their products off shelves.
“It has been an eye-opening experience to meet so many diverse and innovative brands that I had never seen before here at Newtopia Now. Although this is still a large conference, it felt more intimate, and I have been able to connect deeper with brands as a result,” shared Rick Burian, senior manager of supplier diversity, Ulta Beauty.
“Newtopia Now feels different, this feels like the conscious connections we are looking for with brands,” added Le’Spencer Walker, director of merchandising vendor development, Target. Casey Gaston, executive leader of local and emerging brands for Whole Foods Market, noted on LinkedIn, “The energy at the show was incredible and I hope to see this kind of format, focused on new and emerging conscious brands and trends, continue. It was approachable, with excellent programming, and offered a lot of quality time and conversations for me and my team.”
Broadcast celebrity chef and entrepreneur Carla Hall expressed, “I am looking for products to move forward in the well-being space and this is a very captive audience to come and check out some of these things as I am looking for future partners.” Veena Krishnan, co-founder and chief operating officer of Daybird, winner of the first-ever Conscious Beauty Pitch Event Presented by Giannuzzi Lewendon, exclaimed, “Newtopia Now is electric and interactive. A lot of the people who are passing through the neighborhood are going through with intention; they are the buyers we want to talk to, and they are looking for brands like us.”
“Newtopia Now has proven the demand for authenticity and purpose in the natural products industry. From curating the space so likeminded brands and attendees would organically encounter each other, to the on- and off-site mindful moments that brought us closer together, our community needs these intimate and intentional touchpoints. We are more than a place to do business, we are a platform for learning, growing, expanding and uniting, as we strive to create a positive market that supports more health for our environment and our people,” explains Danica Cullins, Executive Vice President of Health and Nutrition, Informa Markets North America.
True to New Hope Network’s ethos, Newtopia Now demonstrated its commitment to sustainability throughout the event, from replanting all trees featured on the show floor across the Denver area in partnership with The Park People Association, to donating unused samples and merchandise featured at the show via the program We Don’t Waste, allowing brands to give back to the local communities. The implementation of reusable serve ware system r.Cup provided reusable plastic cups for large networking sessions, reducing trash and single-use plastic waste.
Newtopia Now is setting a new standard for industry events by blending innovation with intention. The event underscored the importance of creating conscious connections and building an experience that left a lasting impact on attendees. Buyers, retailers, brands and attendees can look forward to an even more impactful experience with all new community experiences packed into one day. As Newtopia Now continues to evolve, the event returns to Denver next year, Aug. 20-22, 2025.
Stay informed for the chance to be part of the health and nutrition industry’s most purposeful gathering. For more information, visit newtopianow.com.
About New Hope Network
New Hope Network is a leading authority in the healthy lifestyle products industry, offering solutions for the complete supply chain from manufacturers, retailers/distributors, service providers and ingredient suppliers. Through its comprehensive portfolio of content, events, data, research and consultative services, New Hope Network is dedicated to fostering a prosperous, high-integrity CPG and retail ecosystem that promotes health, joy and justice for all people while regenerating the planet. For more information, visit newhope.com.
About Informa Markets
Informa Markets, a subsidiary of Informa plc (LON:INF), creates platforms for industries and specialist markets to trade, innovate and grow. With a global reach and diverse portfolio of verticals, including Pharmaceuticals, Food, Medical Technology and Infrastructure, Informa Markets connects buyers and sellers worldwide through face-to-face exhibitions, targeted digital services and actionable data solutions. For more information, visit informamarkets.com.
Media Contact
New Hope Network Public Relations pr@newhope.com
What Natural and Organic Buyers Want at Newtopia Now
Retailers look to New Hope Network's new natural products program and trade show to guide conscious CPG innovation and growth. Find out more.
This article originally appeared on the New Hope Network website on June 26, 2024
By Steven Hoffman
As the natural, organic, regenerative and “conscious CPG” industry prepares to gather in Denver, Colorado, on August 25-28 for the inaugural Newtopia Now, a number of retailers attending and participating in the event shared their thoughts on what drives their purchasing and foraging decisions today.
They also shared perspectives on how they best like to work with partner brands to achieve their goals and serve their customers—and how Newtopia Now can provide value in helping match them with companies and brands in a more intimate, innovative and curated trade show and conference setting.
Numerous retail buyers, foragers and business owners across the country participated in this story, ranging from large chains such as Whole Foods Market and Sprouts Farmers Market; smaller chains such as Earth Fare and Bristol Farms; online retailer Thrive Market; and independent grocers St. Vrain Market and Mustard Seed Market & Café.
Here’s what these retailers shared about today’s marketplace, what drives their purchasing decisions and how they are turning to the upcoming Newtopia Now as a key new resource to help them in their work.
Casey Gaston, Executive Leader, Local and Emerging Brands, Center Store, Whole Foods Market
Founded in 1980 and based in Austin, Texas, Whole Foods Market operates more than 530 stores in the U.S., Canada and the U.K. Casey Gaston is a featured presenter at Newtopia Now as part of a panel discussion, How to Get Your Product into Whole Foods Market, at 10:15 a.m. Tuesday, August 27.
Casey Gaston
Things are always changing in business and we have to remain nimble. Today, Whole Foods Market is connecting with suppliers in a lot more ways than ever before. Getting the attention of our merchants and foragers hasn’t changed as much, however. Start by doing your homework: utilize the Whole Foods Market Supplier Portal and review our quality and product standards. New and emerging brands can connect through our keystone incubation program, LEAP (Local and Emerging Accelerator Program). The LEAP Early Growth cohort, which works with early growth brands, is now in its third year and applications have tripled. While a limited number of brands are selected for a given cohort, others still get on to our radar as a result of the application process. Our Local Producer Loan Program also remains a strong pillar for Whole Foods Market.
As a forager team, we’re excited that the format of Newtopia Now is different. While large brands can get much of the visibility at a show like Expo West, Newtopia Now allows emerging brands to be the stars. We can’t wait to experience a show dedicated to new and emerging brands. We are looking for innovation and trends, and are excited to see brands that have something to show us. We like the concept of matchmaking, and we’ll be hosting some of our own meetings at the event. We’re going to lean in on all the tools and programs New Hope is providing at Newtopia Now.
Darren Viscount, Senior Natural Living Category Manager, Bristol Farms
Founded in 1982, Bristol Farms operates 13 stores in Southern California. With 27 years’ experience in retail, Darren Viscount is a featured presenter as part of a panel discussion, Leading Natural Living Buyers Tell All: Thrive, PCC and Bristol Farms, at 1:30 p.m. Monday, August 26.
Darren Viscount
Shopping for natural foods is less of a destination now than when I first started in the industry. Today, natural products can also be found online, in mass market, in conventional— there is a lot more opportunity for people to purchase these products. In addition, when there is disruption in the economy like we’ve seen over the past few years, people want value.
That said, while ingredients and quality are certainly a factor, our customers are looking for value. So, when I work with brands, I make sure we have promotions, including long-term promotional agreements and/or quarterly promotions. We also put an emphasis on staff training, whether it’s in-store, online or team training sessions. We want to help our customers so that when they get home, they know they’ve made the right decision on product selection.
Today, social media drives a lot of our purchasing decisions. We monitor TikTok and Instagram to see what’s trending. Right now, for example, trends in supplements include magnesium, creatine, high protein products, electrolytes, gut biome and health, probiotics and more. There are a lot of influencers on social media that drive people to our stores, too.
Our goal at Newtopia Now is to foster closer relationships with brands we meet at the event. I like to attend events such as Newtopia Now because I get to talk directly with founders, CEOs, product developers and other brand leaders and speak with them about how they will support our stores, our teams and our customers. It is valuable to me in building community on a business and personal level. With Newtopia Now structured as a more intimate event, we hope to get more one-on-one time with the vendors and find brands to cultivate and nourish from the ground up.
Phillip Nabors, Co-Founder, Mustard Seed Market & Café
With two full service stores and a restaurant serving the Akron, Ohio, market, Mustard Seed Market & Café, established in 1981, is one of Ohio’s largest independently owned retailers of natural and organic products. Cofounded by Margaret and Phillip Nabors, their sons Gabe and Abraham now lead operations for the stores. Phillip served as president of the Retailer Division of the NPA (formerly NNFA) in 1993 and served for 10 years on the Natural Foods Committee of FMI—the Food Marketing Institute.
Phillip Nabors
From the early days, we were unique from the more “pill-driven” health food stores of the time. We made a conscious effort to bring in locally sourced food, whatever we could get from producers and distributors. By having as much food as possible, we enjoyed a large trade area—a 50-mile-plus radius.
Now, the trade area is much smaller and we have to compete with everyone. We have to really sharpen our pencil on price to be competitive. The early days were about education; the customers went on a learning journey with us. Now that you can find natural foods just about everywhere, it’s “What’s the price?”
However, there remains the mission, along with the opportunity to educate, and we’ve always been the trustworthy source of information. We’re actually sincere about the mission of propagating wellness. Some people get that and are willing to drive or pay a bit more to support us. For Newtopia Now, I’m the test pilot for our company. I’m intrigued about the Matchmaking program and have signed up for it.
If I look back at all the best times I’ve had at shows, it’s the deeper conversations. Not just about the attributes of the product, but also alignment on values. I’ve always learned a lot from interacting with suppliers and brands, and I enjoy meeting new people and running into peers and colleagues I’ve known for decades. Plus, I learn a lot from other retailers. I’m looking forward to interacting with all these constituents on a deeper level at Newtopia Now.
I’d like to add that I appreciate all that New Hope Network has done over the decades and what a critical role it has played in growing the natural products industry. Their trade shows in large part enabled the industry’s growth. They have delivered an amazing product over the years. The fact that the company is trying something new makes me want to support them all the more.
Scott Romano, Vice President, Forager, Sprouts Farmers Market
Based in Phoenix, Arizona, Sprouts Farmers Market operates more than 400 stores in 23 states. Scott Romano is a featured presenter as part of the panel discussion, How to Get Noticed by the Sprouts Forager Team, at 12:30 p.m. Monday, August 26.
Scott Romano
Sprouts Farmers Market operates more than 400 stores in 23 states, and is looking to grow the store base at 10% per year going forward. Innovation is our key, and differentiation is what Sprouts is seeking.
When you think of today’s retail landscape, anyone can carry these products. So, for us in making buying decisions, differentiation and innovation lead the first round, and then we look for taste, number one. We scorecard every brand we bring in—we look at attributes such as diversity/minority owned, sustainability, is the product on trend, for example, regenerative agriculture, mushroom adaptogens, probiotics, etc. Then, based on a point system, we will place products in one of three buckets: yes, we want to pursue further; hold and let’s keep it in the pipeline; or decline and thank you, we’ll pass.
While we are being a little more selective, we do have a foraging program for new brands that can help take some of the costs out of the system. The foraging program is a 90-day test period where select brands can receive sales data and general engagement insight. We’re also able to learn from that to prepare the brand for next steps, be it regional or national, and also continue to evolve the program to have a higher success rate with brands we launch. Currently, we are finding success with brands that have built some kind of online B2C presence before expanding into brick and mortar.
Sprouts is looking forward to going to Newtopia Now. There will be a team of folks foraging on the floor, and I will be participating in a Buyer Side Chat to help vendors learn how to get in front of the buyers at Sprouts. The first year is more exploratory for us, however, we’re excited to see the different neighborhoods Newtopia Now has planned, and experience a show in a different way. As a more intimate and focused event, it is a welcome bookend to Natural Products Expo West.
Mitch Orland, Senior Vice President of Merchandising and Marketing, Earth Fare
Earth Fare, founded in 1975 and based in Asheville, North Carolina, is a leading chain of natural and organic food supermarkets with 18 locations in seven states throughout the southeastern U.S. A new ownership group, comprising some of Earth Fare’s original founders, purchased Earth Fare out of bankruptcy in 2020 and has been re-establishing the company as a natural foods retail leader across the Southeast.
Mitch Orland
We opened four years ago during the COVID pandemic when new owners bought Earth Fare out bankruptcy. The group comprises some of the original founders. Since then, we learned we have to reinvent ourselves. We have to be first to market, customer service is key, our people are important, and value perception is super important. Our industry is known for prices higher than conventional, but Earth Fare has combatted this price perception by offering discounts, promotions, every day deals and a Healthy Rewards in-store loyalty program.
Also, we like to stay on top of the trends and are getting out in front on regenerative food and farming. We are closely aligned with the Plant Based Foods Association, the regenerative Land to Market program, Regenified and others. We continue to cultivate these relationships and often they’ll tell us about brands that we can explore.
In addition, one of the top trends we’re working on is ‘craft vegan.’ It’s a trend that was reported on in 2023 by New Hope Network, and in fact, I coined the term to describe the next generation of artisan-made vegan foods, including plant-based aged cheeses, dairy-free butters, deli meats made from mycelium-based Koji, and more. We are getting a handle on food waste, and our program Save & Stop Waste has diverted over half a million pounds of food from landfills over four years.
Personally, I like to forage at local farmers markets within driving distance of our stores. It’s a great way to find local producers and supports the communities. We can bring product to market faster than anyone else—from farmers market to shelf in as little as three weeks. I’m also a chef, so what lights me up about my job is supporting small emerging brands and see what they’re going to do next.
Earth Fare is bringing a full team to Newtopia Now, and we are planning to do something fun—however, it’s a secret for now! For us, it’s about connection, learning, team building and what’s on the horizon. I’m glad New Hope is doing more to directly link the buyers and brands with this first-time event.
Neil Sullivan, Co-Owner, St. Vrain Market
Located in Lyons, Colorado, the gateway to Rocky Mountain National Park, in a historic building that once served as a creamery in the 1800s, family owned and operated St. Vrain Market is well known in the area for its selection of natural, organic and specialty products, premium meats and fresh baked goods. Co-owner Neil Sullivan’s experience includes working at the former upscale Sutton Place Gourmet in Washington, DC.
Neil Sullivan
My wife and I have owned St. Vrain Market for 16 years. It had been a grocery store for many years and has a 100-plus year history. The store was run down when we bought it, so we traveled around to visit independently owned, single-store retailers in northern California. We modeled a lot of what we do today on some of the things we saw coming out of these stores, including local sourcing. We also modeled the store as a European style market—you can shop here for the day’s or a few days’ needs.
We created a tagline when we launched St. Vrain Market: ‘Local and Fresh.’ We asked ourselves, how do you meet the needs of a local community by also supporting that local community? We source many products from fresh and local producers. We give the town something they can be proud of and the community has responded.
People know us best for our bakery—it comprises 20% of our revenue and we employ five full-time bakers—plus an all-natural deli and a very nice meat case. The produce we offer is almost all organic; we have a great dairy selection and we feature local and national brands.
We are far from a commodity player. When we look for supplier partners, we have a specific set of criteria. We’re looking for brands that share both beliefs and practices and can be a great partner for us. Clean ingredients, sustainable-focused packaging, conscious, mission-based businesses—we and other independent retailers are prioritizing these attributes over commodity pricing.
But, we also need entities such as New Hope Network to help us find those partners and sift through all that is out there in the broader industry. For us, Newtopia Now is helping to find the best ways to bring meaningful partnerships together and identify the brands that best align with our criteria. It will help cut through a lot of time and noise and not spin our wheels.
One of the trends we’re moving with is sustainable packaging in our foodservice and food preparation. We use compostable supplies almost exclusively. That’s the criteria I’m including in my Newtopia Now ‘dating profile.’ With Newtopia Now in the matchmaking business, it’s going to help me find suppliers that meet my dating profile.
Also, the event offers me an opportunity to get away from my business long enough as an owner-operator to get information outside of my store walls that I may not get otherwise. I’m also excited to engage at Newtopia Now with suppliers and partners that support minority owned businesses. Our mission statement at St. Vrain Market has nothing about food in it—it’s simply to build community. Our mission is to do well by doing good.
Kirstin Ratcliffe, Senior Category Manager, Beauty and Personal Care, Thrive Market
Thrive Market, based in Los Angeles, California, and founded in 2014, is the leading member-based online retailer offering natural, organic and regenerative products to healthy lifestyle consumers. Kirstin Ratcliffe is a featured presenter at Newtopia Now as part of a panel discussion, Leading Natural Living Buyers Tell All: Thrive, PCC and Bristol Farms, at 1:30 p.m. Monday, August 26.
Kirstin Ratcliffe
Our mission at Thrive Market is to make healthy and sustainable living easy and affordable and for everyone. We work with the biggest companies in the natural space to up and coming independent brands. Providing our members value is true to the core of our mission—we want to give people access everywhere. So, when we are looking for brand partners, value and price are a part of it; it’s one of the first conversations we have.
Being a fully online business, a huge focus for us is to meet our members where they are and to provide convenience. Convenience is a big factor, and we keep that in mind when we are curating. We have a tight pulse on what our members are looking for, and always strive to bring the products they know and love directly to them via Thrive Market. We take the guesswork out of finding healthy products for their entire home, and aim to be that healthy and sustainable destination where they can buy their groceries, as well as their shampoo, body wash, vitamins, toothpaste, cleaning products, etc.
Another key area we hone in on is our standards. We restrict 1,000+ ingredients, including phthalates, parabens, petroleum-derived ingredients and others, which you can learn more about on our website. Certified organic is a first choice when we can; non-GMO is nonnegotiable. We are always seeking more sustainable alternatives, including packaging. With beauty and personal care products, we closely follow standards put forward by the Environmental Working Group (EWG), and we require testing (i.e. for heavy metals) for certain ingredients of concern. We will require certain testing, if needed. We also carry cruelty free brands and prioritize Fair Trade Certified, as well as those brands that support regenerative sourcing and farming.
We’ve always had a strong relationship with New Hope Network. We view its shows as a great way to connect with existing partners, discover new brands, create relationships with private label and third-party partners, and learn about what’s new and trending. We’re excited about the new experience that Newtopia Now offers, coming on the back of participant surveys to understand what they wanted from a show. The marketplaces, or neighborhoods, they’ve teased out is interesting and will provide an opportunity to see how products stand out against each other on the shelf. It’s also particularly important for us that a brand can stand out in an online environment. That’s what we’ll be looking for, as well as partners whose mission(s) aligns with our own.
Newtopia Now, New Hope Network's new trade show, is set for Aug. 25-28 at the Colorado Convention Center in Denver, Colorado. For more information and to register, click here.
Newtopia Now Unveils Programming Lineup for August
Featuring Dan Buettner, Carla Hall and Top Execs from Ulta, Sprouts, The Vitamin Shoppe & More
DENVER (May 21, 2024) – Newtopia Now, presented by New Hope Network, is proud to announce a sneak peek of its programming for the highly anticipated launch event, Aug. 25-28, 2024, at the Colorado Convention Center in Denver. Newtopia Now will revolutionize the landscape of conscious consumer packaged goods (CPG), offering attendees a curated experience focused on product discovery, insightful programming and intentional connections.
On-site programming will offer a wide range of sessions covering topics such as sustainability, diversity, retail practices and holistic wellness. Newtopia Now's content aims to educate and empower CPG professionals to navigate the evolving marketplace, drive positive change, and source the connections and resources needed to accelerate business needs.
This unique event introduces a "neighborhood" concept and distinctive marketplace, redefining the traditional trade show format and providing brands with innovative formats in which to showcase the latest initiatives and product offerings. Education will be organized across dedicated stages in each respective neighborhood.
Thrive, the ultimate destination for conscious health and vitality, will welcome keynote speaker Dan Buettner, American National Geographic Fellow and New York Times-bestselling author, to discuss Blue Zones insights and what it means for the CPG industry. Additional panels include nutrition and retail predictions with The Vitamin Shoppe CEO Lee Wright, a Buyerside Chat featuring leaders from across Whole Foods Market divisions and CPG Unwrapped with 10 innovative brands.
Represent, celebrating diversity and multiculturalism in CPG, will host Insights for Retailers Why Supporting Diverse-Owned brands Is Critical to Retail Success. Plus, during Your Roadmap to Success with Target, emerging and diverse-owned brands will learn what it takes to make it in the retail giant, which is increasingly focused on bringing direct-to-consumer brands into retail. From Legacy to Leadership: Black Culinary History and the Future of CPG will engage Adrian Miller, the James Beard winning cookbook author known as the "Soul Food Scholar," about how the CPG industry can preserve and advance the plant-based traditions rooted in Black food culture.
Regenerate, which will champion sustainability and environmental impact, hosts Cultivating Change: Retail Practices for Supporting Sustainable Brands and Agriculture, engaging the industry to learn best practices for partnering with environmentally friendly brands all the way down to the agriculture component, and How to Get Noticed by the Sprouts Forager Team, a conversation with one of the most innovation-forward accelerator groups in retail. Plus, the neighborhood will celebrate the culinary visionaries leveraging regenerative agriculture as a source of flavor and nutrition.
Glow, embracing the future of conscious beauty and holistic wellness, will invite chef and television personality Carla Hall to the stage to discuss the intersection of healthy aging, wellness and culinary excellence. One of the neighborhood's Buyerside Chats, Achieving Retail Success as a Conscious Beauty Brand: A Conversation With Ulta Beauty, brings Rick Burian, senior manager of supplier diversity from Ulta Beauty, to retailers. Additional sessions include Conscious Beauty's Glow Up: Merchandising for Values & Results-Driven Shoppers and the Glow Conscious Beauty Pitch Event, highlighting the top beauty and wellness innovators who will pitch their products and initiatives to a panel of CPG experts for a chance to win a brand-building prize package.
Additional leading retail establishments that will be featured in Newtopia Now programming include Fresh Thyme, Bristol Farms, PCC Community Markets, Thrive Market, Pop Up Grocer and more.
Registration for Newtopia Now, Aug. 25-28, is now open, but space is limited. To secure your spot and to learn more about the event, please visit www.newtopianow.com.
About New Hope Network
New Hope Network is a leading authority in the healthy lifestyle products industry, offering solutions for the complete supply chain from manufacturers, retailers/distributors, service providers and ingredient suppliers. Through its comprehensive portfolio of content, events, data, research and consultative services, New Hope Network is dedicated to fostering a prosperous, high-integrity CPG and retail ecosystem that promotes health, joy and justice for all people while regenerating the planet. For more information, visit www.newhope.com.
About Informa Markets
Informa Markets, a subsidiary of Informa plc (LON:INF), creates platforms for industries and specialist markets to trade, innovate and grow. With a global reach and a diverse portfolio of verticals, including Pharmaceuticals, Food, Medical Technology and Infrastructure, Informa Markets connects buyers and sellers worldwide through face-to-face exhibitions, targeted digital services and actionable data solutions. For more information, visit www.informamarkets.com.
Media Contact
pr@newhope.com
Talking Online Groceries – Join Jeremiah McElwee, Thrive Market, on Compass Coffee Talk, September 15, 11:30am EDT
Talking Online Groceries: Hear From Thrive Market On What’s Trending Today
Chief Merchandising Officer Jeremiah McElwee from Thrive Market to Share What's Trending in Online Retail on the Next Compass Coffee Talk™
Wednesday, September 15, 11:30 am – Noon EDT
Zoom, Admission is Free
Jeremiah McElwee
Find out what’s trending in the world of online retail and hear key insights from natural products industry leader Jeremiah McElwee, Thrive Market's Chief Merchandising Officer. Jeremiah has twenty-seven years of experience working on countless sides of retail and business, including tackling supply chain issues and growing brands from seed to shelf.
Thrive Market, Inc. was founded in 2014 with a mission to make healthy living easy and affordable for everyone. As an online, membership-based market, Thrive Market delivers the highest quality, healthy and sustainable products at member-only prices, carrying a curation of organic and non-GMO products, and offers 90+ filters and values, allowing you to shop by diet and lifestyle. As a tenured team member at Thrive Market, Jeremiah curated the company’s first catalog, and developed the quality guidelines that still drive product purchasing today.
About Jeremiah McElwee
A twenty seven year veteran of the Natural Products industry, Jeremiah has been on all sides of the business and supply chain, literally from seed to shelf. Part of the initial startup team at Thrive Market, Jeremiah currently serves as the Chief Merchandising Officer there. In addition to developing hundreds of best selling branded products that currently line natural food store shelves and previously managing the Whole Foods & 365 private label brands, he also helped Dr. Andrew Weil develop his branded product platform. When not working as an eco-superhero, he can be found in the Texas Hill Country practicing hot vinyasa yoga, reading children's books to his daughters, or checking the surf report and planning his next escape to the coast.
About Compass Coffee Talk™
Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.
Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry. Learn more.
VIEW OUR PAST COMPASS COFFEE TALK EPISODES ON YOUTUBE
Zevia Latest in Hot Season of Industry IPOs
This article originally appeared in Presence Marketing’s August 2021 Industry Newsletter
By Steven Hoffman
Zevia the Latest in a Hot Season of Industry IPOs, Private Equity Investment
For decades, the natural products industry has repeated the gospel of the relationship between diet and health.
This year, the Covid-19 pandemic drove that simple truth home, to consumers seeking to boost immunity and health, to businesses seeing opportunity in selling better-for-you products, and to investors, as sales of natural foods and supplements surged in both brick-and-mortar locations and via e-commerce, as shoppers became much more comfortable shopping for groceries from their computers or smartphones at home during lockdown.
Now, as the U.S. healthy food industry emerges from one of the most challenging times in its history, investment in the natural and specialty foods channel is surging, including private equity and public offerings.
This year alone, to date in 2021, more than $10 billion in venture-backed capital has been invested in grocery startups, “vaulting past the $7 billion raised in the sector last year,” reported The Spoon on July 2. According to an April 2021 report by Finistere Ventures and Pitchbook Data, a total of $22.3 billion in private equity was invested in agrifood tech companies, including novel ingredients and alternative proteins, meal kits and food delivery, e-commerce, consumer facing tech, and supply chain, reported Food Dive.
In the public markets, a number of healthy products companies have completed, announced, or are considering IPOs, as the stock market continues to show signs of strength.
Here are highlights of IPO activity announced over the past few months:
Zevia Rides No Added Sugar Trend to IPO
Zero-calorie beverage maker Zevia began trading on July 22 on the NYSE under the ticker symbol ZVIA, pricing shares of its initial public offering at $14 per share. Net sales of Zevia products increased 29% year over year to $110 million, while increasing gross margins from 43% to 45%, reported Food Navigator-USA. Zevia credited its 2020 growth to a combination of velocity gains, growth in e-commerce (now accounting for 13% of sales), and increased distribution, with product available on Amazon, Zevia.com and more than 25,000 retail locations in the U.S. and Canada.
Specialty Grocer The Fresh Market Files for IPO
Specialty grocer The Fresh Market, based in Greensboro, NC, filed for an IPO on July 16. The specialty grocer operates 159 stores in 22 states. In the filing, the company reported comparable store sales growth of 22.3% in FY2020, up from -1.8% the previous year. The company intends to list on the Nasdaq exchange under the symbol TFM. CEO Jason Potter, in a letter to prospective shareholders, said the company made a number of changes after being acquired in 2016 by a private firm, including remerchandising the stores to focus on premium fresh food and offering competitive pricing on staple items, reported Grocery Dive.
Newly Combined Dole plc Announces IPO, Will Trade on NYSE
A newly created company formed from the combination of Total Produce plc and Dole Food Company Inc. announced on July 19 that it is planning an IPO of 26 million shares, priced between $20 and $23 per share. The new Dole plc says it will list shares on the NYSE under the ticker symbol DOLE. The combined businesses each have more than 150 years of history in the fresh produce industry, says the company, which claims it is one of the world’s largest producers of fresh bananas and pineapples, and one of the leaders in value-added salads and fresh-packed vegetables. The company also says it will have a growing presence in categories including berries, avocados and organic produce.
Healthy Snack Company Stryve Foods Begins Public Trading after SPAC Merger
Confident the company can disrupt the meat snack category, Plano, TX-based Stryve Foods, maker of meat snacks, on July 19 announced a merger with Andina Acquisition Corp. III under a shareholder-approved deal. Andina, a specialty purpose acquisition corporation (SPAC), changed its name to Stryve Foods, and began trading on the Nasdaq exchange under the symbol SNAX in late July. Stryve Foods is led by co-founder and co-CEO Joe Oblas, and co-CEO and chief marketing director Jaxie Alt, a veteran of the Dr. Pepper Snapple Group, reported Food Dive. Valued at $170 million, Stryve began by selling air-dried cured meats known as biltong, a tradition originating in South Africa that uses less sugar and additives than traditional meat jerky. Stryve reported sales of $14 million in 2019 and nearly $20 million in 2020, reported the Dallas News.
Instacart IPO Could Be One of the Biggest IPOs of 2021
After a round of fundraising this past spring that valued the company at $39 billion, rumors have abounded about a potential public offering from home delivery service Instacart. That said, Forbes reported in June that if it does go public, Instacart could potentially be one of the biggest IPOs of the year, though it was reported the company could opt for a Direct Listing, an alternative to a public offering in which no new shares are created and only existing, outstanding shares are sold. Currently, there is no information related to an Instacart IPO release date. However, MarketWatch reported that the company replaced its founder Apoorva Mehta as CEO with Facebook veteran Fidji Simo, who will take over leadership of the company in August ahead of an anticipated IPO possibly later this year.
Thrive Market Is Considering $2 Billion IPO Amid Surging eGrocery Sales
Online grocery sales nearly tripled in 2020, according to a July 2021 report by Packaged Facts. Based on this explosive trend, Bloomberg reported on July 8 that online membership-based natural products grocer Thrive Market, headquartered in Los Angeles, is considering an initial public offering at a valuation of more than $2 billion. According to Bloomberg, the company is working with investment bank Goldman Sachs Group. The company was founded by natural products and tech entrepreneurs Nick Green, Gunnar Lovelace, Kate Mulling and Sasha Siddhartha. By 2016, the company raised $141 million across three rounds of funding following its launch in 2014. According to Thrive Market, for every paid membership, Thrive Market donates a free membership to a family in need.
Chobani Files Confidentially for IPO; Company Valuation May Exceed $10 Billion
Chobani, the company that put Greek yogurt on the map, could potentially be valued at more than $10 billion in an IPO, a source told Reuters on July 7. The company on July 6 filed a confidential draft registration statement with the Securities and Exchange Commission (SEC) for a proposed underwritten public offering of common stock, with the number of shared and price range yet to be determined. Chobani, which means shepherd in Turkish, was founded in in 2005 by Turkish immigrant Hamdi Ulukaya, who, with a small business loan, bought a yogurt plant in South Edmeston, NY, that was being closed by Kraft Foods. Chobani, which produces yogurt, oat milk, dairy and plant-based creamers and other products, also is renowned in the natural products industry for its business accelerator program for mission-based food startups, the Chobani Incubator.
Eat Just Is Targeting a $3 Billion Valuation in Considering IPO in Q4 2021
California-based Eat Just, cofounded in 2011 by Josh Balk and CEO Josh Tetrick, has raised a total of $440 million to date, including a recent $200 million placement led by the Qatar Investment Authority, Forbes reported on June 25. According to Forbes, Eat Just’s cultured meat division, GOOD Meat, also secured $170 million in financing in May 2021 as it builds out a large-scale manufacturing facility for cultured meat in Singapore. Eat Just seeks to be one of the first companies to sell meat made from animal cells instead of slaughtered livestock, and according to Forbes. Tetrick feels the positive feedback on cultured meat the company has received in Singapore serves as validation for expansion of cultured meat products in the U.S. in the future. Tetrick confirmed to Forbes that a public offering is “definitely getting closer.”
Naomi Osaka-backed Salad Chain Sweetgreen Confidentially Files for IPO
Fast casual restaurant chain Sweetgreen, specializing in salads and plant-based foods, on June 21 announced it had confidentially filed for an initial public offering, with Reuters reporting that the restaurant chain, which includes tennis star Naomi Osaka as an investor, is hoping for strong investor interest “as demand for plant-based food products surges globally.” The healthy food chain was founded in 2007 with one location in Washington, D.C., by three college roommates at Georgetown University’s business school. Currently, the company operates 122 locations in 12 states across the U.S. To date, the company has raised a total of $478.6 million in funding over 13 rounds, according to Crunchbase. Sweetgreen was named one of Fast Company’s Most Innovative Companies in 2019 and 2020.
Vita Coco, Runa Parent Company Files for IPO with Company Valued at $2 Billion
All Market Inc., parent company of Vita Coco, Runa energy drinks and the water brand Ever & Ever, may be planning an initial public offering as soon as Q3 2021, according to a June 18 report by The Business Times. According to unidentified sources, All Market could be valued at more than $2 billion. Vita Coco, founded in 2004, produces a variety of coconut-based beverages. According to Statista, sales of Vita Coco products totaled approximately $160 million in 2020. All Market Inc. in 2018 acquired Runa, a popular energy drink made from guayusa, found in the Amazon rainforest. The company’s Ever & Ever brand markets pH balanced water in recyclable aluminum bottles.
Oatly Raises $1.4 Billion in May 2021 IPO; Shares Rise 18% on First Day of Trading
Swedish oat milk maker Oatly, which reportedly counts such famous investors as Oprah Winfrey, Natalie Portman, Jay-Z and former Starbucks CEO Howard Schultz, raised $1.4 billion in an initial public offering on May 20. Shares were priced at $17, valuing the company at nearly $10 billion, according to CNBC. The company now trades on the Nasdaq exchange under the ticker symbol OTLY. In 2020, the company reported its revenue more than doubled over the previous year to $421.4 million, with food service accounting for 25% of sales and retail accounting for 75% of sales. Oatly reported a net loss of $60.36 million in 2020 as it invested in expanding into new markets, raising brand awareness and manufacturing, CNBC reported. Oatly CEO Toni Petersson in May told Food Navigator-USA “This is about conversion, it’s about converting people who used to drink cow’s milk into Oatly. And the addressable market is just massive … so it’s growth over profit.” Oatly products are currently sold in 60,000 retail locations and more than 30,000 coffee shops, reported VegNews.
Jessica Alba’s Honest Co. May 2021 IPO Raised $412.8 Million
Honest Co., the cruelty free personal care, household products and baby products brand co-founded by actor Jessica Alba, raised $412.8 million in an initial public offering held on May 4, CNBC reported. Trading under the ticker symbol HNST on the Nasdaq exchange, the company sold 25.8 million shares at $16 per share in its first day of trading, valuing it at $1.44 billion. The Honest Co. had revenue of $250 million in 2016, but has yet to turn a profit, reported LiveKindly. Alba, who started the company in 2011 three years after having her first child, said she founded the brand because she noticed a lack of natural baby products made without harsh chemicals in the marketplace. “When you look at this business, it feels like this is the direction in which the world wants to head,” said Motley Fool analyst Jason Moser on June 28. “A company that's very focused on ESG and sustainability. I think a big question for a business like this, it really boils down to pricing oftentimes. It's a little bit more expensive to make this stuff right now in the near term… As time goes on, those costs will come down, and I think a company like the Honest Co. has some brand equity that could play out in its favor.”
Impossible Foods In Talks to Go Public with a $10 Billion Valuation
Based on an April 8 report in MarketWatch, plant-based foods maker Impossible Foods is preparing for an initial public offering that could value the company at about $10 billion. Founded in 2011 and based in Redwood City, CA, Impossible Foods was recently valued at $4 billion in a private funding round in 2020, MarketWatch reported. The company’s signature product, the Impossible Burger, debuted in 2016. Sources told Reuters in April that Impossible Foods is exploring an IPO within the next year or a merger with a special purpose acquisition company (SPAC). Merging with a SPAC – a shell company that raises funds in an IPO with the goal of acquiring a private company – is becoming a popular alternative for companies seeking to go public “with less regulatory scrutiny and more certainty over the valuation that will be attained and funds that will be raised,” Reuters reported. Reuters also disclosed that Impossible Foods has raised $1.5 billion in the private investments, to date, with backers including Khosla Ventures, Horizons Ventures, and celebrities including tennis star Serena Williams and rapper and music entrepreneur Jay-Z. According to Food Dive, rumors of an IPO for Impossible Foods have circulated since competitor Beyond Meat went public in 2019.
Thrive Market Wants to Be the First Climate Positive Grocer
This article originally appeared in Presence Marketing’s June 2021 Newsletter
Thrive Market, the online natural products retail marketplace founded in 2014 by Nick Green, Gunnar Lovelace, Kate Mulling and Sasha Siddhartha, has set a new goal to become the nation’s first “climate-positive grocer.” The company saw sales skyrocket in 2020 during the pandemic and now CEO Nick Green says it wants to take those profits – and momentum – to pursue how it can reduce plastic packaging and overall waste, among other objectives.
“We are committing to not only minimize our negative environmental impact, but have a net positive effect on the climate specifically,” Green told Forbes Magazine. “The big message that we’re trying to send, which we hope other companies will embrace as well, is that doing less harm isn’t enough. We should all be thinking about what we can do to actually make things better to help heal the planet after a century in which we’ve done more harm than all prior centuries combined. Specifically, at Thrive Market that means committing to going carbon negative as a company by 2025 (right now we are carbon neutral), making our zero waste practices official with a TRUE Zero Waste certification in 2022, and going fully plastic neutral, as well, by 2023. We’re already proud to be the largest grocer ever to receive B Corp certification and looking forward to recertifying in October 2023 with even stronger commitments to both social impact, environmental stewardship and investment in our people,” Green told Forbes.
Said Thrive Market’s Chief Merchandising Officer Jeremiah McElwee, “The biggest inherent challenge is balancing out high quality, value and values-driven products being packaged in truly environmentally responsible formats. At present, those options can still cost five to 10 times what the more conventional options cost. So you can have a product that retails for $1.99 and the package itself costs $1. That means the customer would have to pay that premium when just affording healthy, organic food can be a challenge for many on a limited budget. Our approach is to create step functions so that we start with reduction always, then we move toward innovation and, ultimately, end of life solutions. Right now we have multiple pilots exploring both compostability and upcycling solutions for our shipping materials and product packaging,” he told Forbes.
As part of its Climate Positive initiative, the company identified three key areas of focus: carbon footprint, zero waste, and excess plastic. For more information on Thrive Market’s commitment to becoming the world’s first climate positive grocery store, visit here.
Hemp Harassment: Leading Online Retailer Thrive Market Forced to Cease Sales of All Hemp and CBD Products in Banking Backlash
Originally Appeared in Let’s Talk Hemp Newsletter, June 2019
By Steven Hoffman
In a seeming backlash to the burgeoning hemp economy, hemp and CBD retailers, industry associations and other hemp-centric businesses are being denied or threatened with denial of banking, credit card processing and other key business services, including a national newswire service that announced this past month it will no longer accept press releases from hemp companies, and is, in fact, deleting all existing and previously issued press releases related to hemp and CBD from its online archives. It is a disturbing trend in an industry that was made legal across the U.S. as a result of the 2018 Farm Bill and is projected to grow to $26.6 billion by 2025.
It has forced such retailers as leading online natural products grocer Thrive Market to cease sales of all hemp and CBD products, a best-selling category over the past 18 months on its nationally recognized ecommerce site. The member-based online retailer boasts more than 500,000 members. “In early June, we received a notice from our merchant processor demanding that we cease the sale of all hemp and CBD products on Thrive Market. We unfortunately have no choice but to comply, and we’ll begin removing our assortment as early as Thursday, June 20,” wrote Thrive Market’s cofounder and CEO Nick Green in his blog on June 17. As of this writing, clicking on that assortment link takes you to a blank product page on Thrive Market’s website.
Meanwhile, the U.S. Hemp Authority, a not-for-profit trade group developing certification standards for the industry, lost payment processing services in June after being dropped by its vendor, Stripe, based in San Francisco, reported Hemp Today on June 20. According a report in CNN Business, Stripe said it dropped the U.S. Hemp Authority’s account because of liability concerns, despite the fact that the trade organization is not a seller of any hemp products. “We’re being told we’re high risk. We’re actually trying to minimize human risk,” Hemp Authority president Marielle Weintraub told CNN.
Abrupt Notice
Since a leading credit card processor, Elavon, a subsidiary of U.S. Bank, abruptly notified its hemp and CBD clients in March 2019 that it had recategorized hemp and CBD merchants as a “prohibited business type” and was backing out within 45 days of handling payment processing for such companies, a number of hemp businesses have been scrambling to establish secure and durable payment processing relationships. According to one estimate by Philippa Burgess, cofounder of MMJ FinSol, a Denver-based financial services solutions company for hemp, cannabis and other “high-risk” businesses, Elavon’s policy changes affected up to 40,000 CBD companies.
Another merchant processor, Fortress Payment Technologies, in May 2019 notified all its ecommerce customers selling CBD products that they would no longer be able to process Visa credit card payments through the bank. Some sellers received less than eight hours’ notice of these changes, reported Folium Biosciences, a vertically integrated hemp-derived phytocannabinoid producer based in Colorado Springs. The company recently launched a CBD/hemp friendly financial services platform for its customers to help remove the financial hurdles faced by the CBD industry, it said.
Kyle Rapoza, cofounder of Vermont-based Mansfield Provisions, which distributes CBD products online and through brick and mortar retail partnerships, lost credit card processing services for his company in late May 2019, when Elavon stopped doing business with the hemp industry. He explained to Ganjapreneur Magazine that, in the wake of Elavon’s action, many of the industry operators he knows and does business with are moving back to high risk (and high fee) accounts. Rapoza has since been able to access more traditional business accounts through a state credit union, Ganjapreneur reported.
Biggest Challenge Facing the Hemp Industry
It’s a “difficult time” for the industry as it related to financial services, which he called “the biggest challenge in the industry right now,” Jonathan Miller, general counsel for Kentucky-based industry association Hemp Roundtable, told Ganjapreneur. “The law, we believe, is clear that since the [2018 Farm Bill], hemp and CBD are no longer controlled substances. There should be no concern whatsoever that there would be violations of federal law to engage in commerce. …Unfortunately, there is a lot of misinformation – it’s banks, it’s credit card companies, it’s merchant services that have been refusing to do business with these hemp and CBD companies.”
Because banks have been so hesitant to serve hemp and CBD businesses despite the legalization of hemp in the Farm Bill, U.S. Senators Mitch McConnell (R-KY) and Ron Wyden (R-OR) – chief proponents of legalizing hemp – in April 2019 sent individualized letters to four federal banking and financial regulatory institutions, imploring them to prevent banking discrimination of the hemp industry, reported Cannalaw Blog.
In addition, when pressed by U.S. Senator Jon Tester (D-MT) at a hearing in June 2019, Marijuana Moment reported that Federal Reserve board member Michelle Bowman pledged to inform banks that they can service hemp businesses. When Tester asked specifically how the Fed is advising institutions when it comes to hemp, Bowman responded, “We have not told them that they cannot bank them.” Tester countered that while he and Bowman might be on the same page, it is possible that banks were hearing a different message—hence why hemp businesses have said that they’re still experiencing difficulties accessing credit. Tester said clarification is especially important at this stage because of fallout from trade wars with China and Mexico, as hemp represents a potentially lucrative crop for American farmers. “I would agree with you. We would not discourage banks from banking these types of customers,” Bowman said. “We’ll try to clarify that. Hemp is not an illegal crop.”
What, No Press Releases?
While certain merchant banks seek to stifle hemp industry growth through the denial of critical financial services, another service provider in the media newswire business seeks to silence its voice.
One leading hemp industry media and event production company, Colorado Hemp Company, based in Loveland, CO – producer of the NoCo Hemp Expo, Southern Hemp Expo, and the Let’s Talk Hemp weekly newsletter and podcast – was recently informed by its newswire service, ReleaseWire, that it will not post or distribute any new press releases that mention hemp, and in addition, it was deleting all existing and previous press releases mentioning hemp that Colorado Hemp Company had posted in the past. In a policy update issued on May 8, 2019, ReleaseWire, one of the nation’s leading online national newswire services, issued the following statement, after which it began informing hemp-centric businesses that not only were they not accepting new press releases for distribution, they were deleting all existing press releases and archives related to cannabis, hemp or CBD:
“ReleaseWire was recently contacted by our credit card processor and informed that they have a policy in place that restricts merchants, including ReleaseWire, from linking to, or providing information about, marijuana, cannabis, CBD, hemp and related products. As such, we have been instructed by our credit card processor that we must not only stop taking press release submissions on these topics, but we must remove any existing press releases and related content from our site. They have provided us with a small window of time to complete this process or risk losing the ability to process credit cards.”
Meanwhile, other newswire services including Cision, owner of PR Newswire and PRWeb, continue to accept and publish hemp, CBD and cannabis related press releases on behalf of clients.
Hemp Friendly Payment Processors
So which payment processors are willing to serve hemp and CBD companies? One such processor, Adept Payments, says on its website that it helps high risk businesses, including vape, CBD, adult, casinos and more.
While financial services group, Edward Jones, has no official policy about outreach to the hemp industry, a broker in Bend, OR, contacted Hemp Industry Daily to say he was offering a “full spectrum of banking, investment, insurance and financial planning services to hemp farmers.” Officially, Edward Jones is “looking at the provision in the Farm Bill that addresses hemp growing,” John Boul, manager of global media relations for the St. Louis-based Edward Jones told Hemp Industry Daily in April 2019.
Square, a leading online payment processor, recently soft-launched credit card processing for CBD companies, but the program is still in beta testing phase and is by invitation only. Former credit card processing professional and current blogger Phillip Parker, who describes his site, CardPaymentOptions.com, as a credit card processing watchdog group, posted a guide to the Best Merchant Accounts for Hemp Products in June 2019. Also, Merchant Maverick, a self-described comparison website that reviews and rates credit card processors, mobile payment services and other small business software, published a guide to the Best CBD Oil Merchant Account Providers in April 2019.
For CBD sellers on Shopify and other major ecommerce platforms, a recently launched processor, Organic Payment Gateways, advertises that its mission is to help people in the CBD business process payments online, and that its payment gateways work smoothly with Shopify, WooCommerce and others. Leap Payments, Instabill and other services promote that they are dedicated to ensuring CBD businesses “can accept debit and credit card payments just like any other business can.”
So, for now, you won’t find any hemp or CBD products at Thrive Market, however, the ecommerce retailer says it won’t give up without a fight. “We believe that ethical and sustainable hemp is another cause worth fighting for, so rest assured that we will be working behind the scenes in the coming weeks to get hemp products back on Thrive Market,” Nick Green wrote in his blog. “In fact, we’re already in conversations with a new processing partner to try to make that happen.”