Customers Name Seven NCG Co-ops as their States’ Top Independent Grocers
Photo: Pexels
Originally Appeared in Presence Marketing News, February 2020
By Steven Hoffman
Using data from Yelp and Google Trends, market research firm 24/7 Tempo recently released a ranking of top supermarkets and grocery stores in each state. In seven U.S. states, customers ranked retail food co-ops, all members of the National Co+op Grocers Association (NCG), as their favorite independent grocery stores, reports the National Cooperative Business Association (NCBA). “Unlike corporate grocery chains, food co-ops are totally independent and owned by the community members who shop there. Instead of focusing on investors, food co-ops focus on providing fresh, healthy food for shoppers, creating sustainable jobs for employees, building a strong regional food system for everyone, and giving back to their community,” said C.E. Pugh, CEO of NCG, told NCBA. “It’s no surprise that so many shoppers appreciate the value of their community-owned food co-op, but few industries are as competitive as the grocery business, so that makes us especially proud of our member co-ops achieving these hard-earned rankings. It’s a true testament to our co-ops working diligently to serve their members and communities, and toward the day when everyone has the fresh, healthy food they deserve,” she added. Customers voted the following seven retail food co-ops as their favorite independent grocery store.
• Alaska: Co-op Market Grocery & Deli, Fairbanks
• Maine: Portland Food Co-op, Portland
• Nevada: Great Basin Community Food Co-op, Reno
• New Mexico: Mountain View Market, Las Cruces
• North Carolina: Tidal Creek Cooperative Food Market, Wilmington
• Tennessee: Three Rivers Market, Knoxville
• Vermont: City Market/Onion River Co-op, Burlington
Naturally Bay Area Entrepreneurs Gather for Natural Products Pitch Slam Showdown
Naturally Bay Area’s Premier Industry Event Showcases Top Finalists Competing for More Than $30K in Prizes, Plus a Powerhouse Panel of Special Guests and Judges for its 2nd Annual Pitch Slam Competition and Celebration, Held During the Winter Fancy Food Trade Show, January 19, 2020, in San Francisco, CA
SAN FRANCISCO, CA (January 9, 2020) – Naturally Bay Area, a vibrant and thriving business community comprised of entrepreneurs, investors, innovators and leading brands in the natural and organic products industry, is proud to announce its all-star panel of judges, presenting finalists and keynote speakers for the organization’s premier event of the year, The 2nd Annual Naturally Bay Area Pitch Slam. The event, held in conjunction with the Winter Fancy Food Show on Sunday, January 19, 2020, from 5:00 p.m. - 8:00 p.m., at the Mission Bay Conference Center, San Francisco, CA, will provide a unique evening for networking and mingling with A-list industry leaders.
Hundreds of natural products entrepreneurs will gather to cheer on the Pitch Slam finalists who will share their companies' innovations and brand strategies. Each competitor in the Naturally Bay Area Pitch Slam are founders of emerging local, natural and organic brands that are creating unique better-for-you food, beverage and personal care products and services.
Pitch Slam Finalists
There are six Naturally Bay Area Pitch Slam finalists who will participate in this year’s Pitch Slam competition. Each Pitch Slam finalist will present a timed business pitch to a panel of select expert judges who will vote for the final top-three winners. The six finalists include: A Dozen Cousins, Bread SRSLY, Down to Cook, Dr Hops Kombucha, Outlaw Soaps, and Renewal Mill.
Pitch Slam Judges
Naturally Bay Area has identified a select group of industry experts who will serve as the Pitch Slam panel of judges. Each judge will have an opportunity to ask questions, sample the products and vote on the winners. The powerhouse panel of judges includes:
Kevin Cleary: Principal, Big Rock Growth Advisors (Former President/ CEO, Clif Bar & Company)
Kevin is a results-driven, people leader with a successful track record at private and public companies. His focus on vision and strategy is brought to life by successfully aligning all executional elements throughout an organization. Currently, as Principal at Big Rock Growth Advisors LLC, he helps CEOs and companies drive and manage growth, while developing healthy cultures to ensure long-term success. Much of his advisory work is in leading organizations through the strategic planning process while also helping them create highly effective C-Suite teams.
Aditi Dash: Partner, CircleUp Growth Partners
Aditi is an investor and operator with a passion for food and tech consumer goods. At CircleUp Growth Partners, Aditi applies her applied experience in investing, operations, product innovation, tech, B2C, growth equity, and capital raising to help emerging brands scale with purpose.
Danny Rubenstein: Managing Partner, Mista
Danny brings a unique combination of skills, abilities, and relationships to MISTA and its members. He’s held every C-Suite role, and he has served as a board member, investor, and advisor for startups and early-stage companies multiple times over. Add in his big CPG company background and experience, and you have a mind that’s able to switch gears easily between where you are and where you want to be, and can help develop a strategic path between them.
Robyn Rutledge: Founder & CEO, SBG Growth
Robyn’s nearly two decade-long career in finance and investing has been concentrated in the consumer industry, with a focus on food, beverage, and wellness-oriented companies. Robyn is the Founder & CEO of SBG Growth, a consumer-focused investment and advisory business. Robyn also currently advises investment firms, entrepreneurs and other stakeholders on the consumer market landscape. Prior to launching SBG Growth, Robyn spent close to a decade with TSG Consumer Partners, a leading investment firm. She was also a member of the investment team at Thoma Cressey and prior to that, worked in M&A at Goldman Sachs in New York.
Patrick Wyman: Local Forager, Whole Foods Market Northern California and Reno
Patrick has 28 years of experience in the natural foods industry, and 18 with Whole Foods Market. He started with the company in a store support role for the grocery department, moved through grocery leadership, and now oversees the Northern California region’s local purchasing program and local vendor partnerships. In his current role, Patrick helps guide vendors through the logistics of bringing a product to market including topics like packaging, distribution, financing, and compliance with company and governmental standards.
Keynote Speakers & Fireside Chat
Prior to the showdown, attendees will hear insight from two successful women entrepreneurs, Lisa Curtis, the Founder and CEO of Kuli Kuli and Miyoko Schinner, CEO/Founder of Miyoko's Creamery. Lisa will serve as this year’s Host and Master of Ceremony. Miyoko will present the evening’s Keynote presentation and provide her insightful entrepreneurial story leading up to the successful evolution of Miyoko’s dairy-free, plant-based cheese brand and how it competes in the fastest growing category.
In addition, before the Pitch Slam winners are announced, attendees will have the opportunity to participate in a fireside chat with Wayne Wu, Partner at VMG Partners. Wayne will interview Elizabeth Giannuzzi, CEO & Co-Founder of Siren Snacks and 1st Annual first place Pitch Slam winner, and Hector Saldivar, Founder of Tia Lupita Foods and second place winner.
Ticket Information
Join the fun: Mingle, Cheer, Learn, and Eat & Drink. Reserve your seat now to make sure you have a spot for the premier event of the year – we will sell out! Tickets: Members, $49. Non-members, $69. Click here for tickets today!
About The Pitch Slam
Natural product companies based in Northern California were invited to compete and pitch amongst a wide selection of brands in the Bay Area. The Naturally Bay Area team narrowed the selection down to six finalists who will compete for prize packages valued at over $30,000, including:
$5,000 cash, courtesy of Aspect Consumer Partners
10'x10' booth at 2020 Natural Products Expo East (the world’s largest natural products trade show on the East Coast), courtesy of New Hope Network
A guaranteed spot to pitch at the 2020 Natural Products Expo East Pitch Slam, courtesy of New Hope Network
A suite of professional services including financial/legal advice, marketing, strategy consulting, and more.
2020 Pitch Slam Competition Sponsors
Aspect Consumer Partners, New Hope Network, Whole Foods, and Compass Natural Marketing.
About Naturally Bay Area
Naturally Bay Area is dedicated to building and fostering a community that nurtures conscious growth, leadership and innovation in the Bay Area natural products industry. Founded in 2018 as a 501c6 non-profit organization, it now has over five hundred members compromised of entrepreneurs, investors, innovators, and emerging and leading brands. Naturally Bay Area provides access to cutting-edge business education events and programs, opportunities for meaningful connections and networking, and special celebrations.
Naturally Bay Area is a part of Naturally Network, which supports a national ecosystem to galvanize and grow the natural and organic products industry. Naturally Network serves those who wish to create a more conscious and regenerative economy and culture through the power of business. Our collective goal is to manifest meaningful change for our industry, our society, and our planet.
Visit naturallybayarea.org, LinkedIn or Facebook for more information. For member or sponsor information, please contact us at info@naturallybayarea.org.
Naturally Bay Area Sponsors
Naturally Bay Area is proud to have Premier, Platinum, Gold, Silver, and Bronze-level Sponsors. Premier Sponsors include Aspect Consumer Partners, BPM LLP, Clif Bar & Company, Davis Wright Tremaine LLP, GABY, Mind the Font, Mista/Givaudan, Navitas Organics, New Hope Network, Propeller Industries, and The Burbank Hafeli Schiller Group. For a complete list of Sponsors, visit here.
Contact
Vanessa Toy, Naturally Bay Area, vanessa@cultivatecreations.com
Steven Hoffman, Compass Natural Marketing, steve@compassnaturalmarketing.com
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BeyondBrands® Brings Innovation to Winter Fancy Food Show with National Retail Launch for Three Conscious Product Innovations: Cool Beans, mood33, & Petal
Innovative Food & Beverage Accelerator Represents Leading Brands, Recruits New Talent and Invites Brands to Join the Conversation at National Trade Show, Booth #5745, January 19 - 21, Moscone Center, San Francisco, CA
San Francisco, CA (January 16, 2020) – BeyondBrands® is gearing up for a successful and busy Winter Fancy Food Show in San Francisco and is excited to announce the national retail launch of three innovative consumer packaged goods products: Cool Beans, mood33 and Petal. BeyondBrands, known for their high-level CPG experience and upper-level sales strategies to create, lead and deliver results for emerging brands in the marketplace will showcase these three up and coming brands at the World Finer Foods Booth #5745, North Hall, Moscone Center, San Francisco, CA, January 19-21, 2020.
Cool Beans
Global flavors, vegan and gluten-free? Yes, yes, and yes. Full of plant protein, fiber and nutrients, Cool Beans frozen wraps draw flavor inspiration from around the globe, serving up satisfying, portable eating for vegans, flexitarians or those who simply want to try something new. Plus, they’re easy to make. Just microwave and enjoy.
mood33
mood33™ brings the synergistic superpowers of all the beneficial hemp plant nutrients in a convenient, natural beverage. These herbal teas are mindfully sweetened to create six fruit-forward flavors, whether it’s Joy, Peace, Calm, Energy, Passion or Wellbeing. mood33 herbal teas are blended with flavorful botanicals that are carefully selected to harmonize with full-spectrum hemp extract.
Petal
Petal creates unique beverages using the finest natural extracts and essences, with just enough organic sweetness and plenty of sparkles. Their approach is botanical alchemy – an intuitive process that tunes in to the flavorful power of each ingredient by blending florals, fruits and herbs into the perfect refreshment. Petal comes packed with powerful antioxidants in six flavors: Original Rose, Mint Rose, Lychee Rose, Elderberry White Tea Flower, Peach Marigold, and Lemongrass Dandelion.
BeyondBrands is Growing
BeyondBrands is seeking more talent! They are looking for seasoned CPG experts in the Natural Products Industry to join its Conscious Collective. Inquiries can be made by emailing namaste@beyondbrands.org.
BeyondBrands partners are currently booking appointments with companies attending the Fancy Food Show. Interested in discussing a potential partnership? Learn how BeyondBrands suite of capabilities can position your natural products brand for success in the upcoming year by scheduling an in-person meeting, by emailing namaste@beyondbrands.org. For a complete list of BeyondBrand's capabilities, click HERE.
About BeyondBrands
Assembled by Steaz & Good Catch Co-founder Eric Schnell, and Under the Canopy and Institute for Integrative Nutrition Co-founder Marci Zaroff, a team of 20+ senior-level natural lifestyle and eco-conscious experts are Co-Creating the future model of full-service executive-level consulting including brand incubation and acceleration through the agency's networks and affiliates. This Conscious Products Collective – comprised of specialists from the most respected natural and organic food, beverage, fashion, beauty and nutraceutical companies, to the most recognized consumer brands in the world – passionately and collaboratively delivers 360-degree consulting and outsourced management services for its clients. Visit www.beyondbrands.org.
About the Specialty Food Association
Founded in 1952 in New York City, the Specialty Food Association (SFA) is the leading advocate for the $148.7 billion specialty food industry. Representing makers, importers, entrepreneurs, retailers, distributors and others in the trade, the SFA aims to champion, nurture and connect its members to deliver traditional and innovative new products to consumers that expand consumption of specialty foods. With over 3,800 member companies, the Association helps its members through providing information, research, educational events, and celebrating the industry through its awards programs. The SFA is known for hosting the Winter and Summer Fancy Food Shows, and presents the sofi™ Awards honoring excellence in specialty food. Learn more at specialtyfood.com.
Media Contact
Steven Hoffman, Compass Natural, 303.807.1042, steve@compassnaturalmarketing.com
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Cool Beans™ Plant-Based Gluten Free Wraps Sizzle into the New Year with National Product Launch at Winter Fancy Food Show, January 19-21, 2020, San Francisco, CA
Innovative Healthy Frozen Food Brand Delivers on Protein and Flavor from Globally-Inspired Recipes, While Meeting Growing Demand for Clean, Balanced, Plant-Based Portable Eating
Chicago, IL (January 14, 2020) – Cool Beans, the latest innovation in the fast growing plant-based food category, is pleased to announce the launch of its three new wraps at this month’s Winter Fancy Food Show, being held at the Moscone Center in San Francisco, CA, Jan. 19-21, 2020. Trade Show attendees will have the opportunity to sample new Cool Beans plant-based wrap flavors including Moroccan Gold, Spicy Chipotle and Tikka Masala at the World Finer Foods Booth #5745.
The three new wraps include:
Moroccan Gold – Inspired by outdoor spice markets, this wrap weaves a unique tapestry of bold flavors and distinctive texture.
Spicy Chipotle – Like the heat of the Mexican sun, this wrap offers bold flavor thanks to a mix of veggies and a kick of poblano chili peppers.
Tikka Masala – A nod to India’s diverse culture, this wrap blends traditional Indian-style spices and coconut milk for a rich and aromatic flavor that’s sweet meets peppery.
Rooted in Whole Food Goodness
Cool Beans blends together the mightiest nutritional legumes with globally inspired recipes that result in clean, balanced food that’s good for you and your karma! Cool Beans’ mission is to help people choose the healthiest whole food, plant-based options while also reducing the amount of meat in their diet.
Vegetarian since childhood, Cool Beans Co-Founder & CEO Eric Schnell sees three major factors driving consumers’ long-term migration away from diets centered around animal products to more plant-based diets: “Whether for personal health, environmental reasons or animal welfare, more consumers are opting for plant-based foods as a long-term conscious choice,” says Schnell.
Because the migration is being driven by such a powerful consumer sentiment and is multi-generational, Schnell sees a large-scale opportunity for Cool Beans to be sold through natural, conventional, C-stores, colleges & universities and more. Schnell adds, “Vegan choices are no longer a category niche and we are excited to be entering the market at this time. We believe our brand is a natural fit and cost-effective solution for an easy-to-prepare meal that nourishes the mind and body.”
World Finer Foods
All Cool Beans wrap varieties are packed with bean power and made with plant-based protein and nutrients that won’t weigh you down. That’s why World Finer Foods supports the efforts Cool Beans is making to create a product that is not only better-for-you, but one that is environmentally friendly. World Finer Foods, a leader for building brands from around the globe, plans to distribute and market Cool Beans throughout the country.
“We celebrate our growth into the vastly changed and increasingly-important Frozen Food category with the launch of Cool Beans, a brand that delivers a unique and convenient new innovation in plant-based foods,” said World Finer Foods CEO Susan Guerin. “We are proud to leverage our expertise in the distribution of high-quality foods and stand at the forefront of Cool Beans’ journey to success as it enters this multi-billion-dollar industry.”
Ashley Koff Approved!
Cool Beans provides convenient, portable eating that consumers can feel good about whether vegan, flexitarian or in need of a delicious, satisfying gluten-free wrap. Ashley Koff, an award-winning dietitian, looks for products containing whole foods and minimally processed ingredients that deliver on a balance of nutrients. She says, “Not all plant-based products deliver better-for-you nutrition. However, after reviewing and tasting (lucky me!) Cool Beans, I am excited to give it my AKA stamp of ‘better nutrition’ and will be recommending these products to clients and my family to enjoy!”
About Cool Beans
Headquartered in Chicago, Cool Beans was founded in 2018, fueled by a passion to increase the availability of whole food, plant-based, gluten-free and convenient options in the supermarket. Backed by BeyondBrands and Co-Founder & CEO Eric Schnell, known for innovative conscious food and beverage brands including Good Catch Foods and Steaz Tea, Cool Beans is well positioned to meet rising consumer demand for plant-based foods.
Join the Cool Beans Conversation
@luvcoolbeans on Instagram
@eatcoolbeans on Twitter and Facebook
www.eatcoolbeans.com
Media Relations: April Siler, asiler@eatcoolbeans.com, tel 973.338.0300 x 189
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Hemp in The New Year! Register Now for the 2nd Annual Colorado Winter Hemp Summit, January 16, 2020, Boulder Jewish Community Center, Boulder, CO
Hemp industry, community leaders and advocates are invited to a town hall-style summit to recap the hemp industry’s growth and share 2020 market projections and chart a course for future growth
2nd Annual Colorado Winter Hemp Summit
When: Thursday, January 16, 2020, 10 am – 5 pm
Where: Boulder Jewish Community Center, 6007 Oreg Ave., Boulder, CO 80303 (map)
Register HERE: Tickets are $99 each.
Boulder, CO (January 8, 2020) – Interested in learning more about the ever-changing hemp-derived products industry? The Colorado Hemp Company, producer of the 7th Annual NoCo Hemp Expo, is inviting hemp industry advocates, manufacturers, farmers and the community to its 2nd Annual Winter Hemp Summit on Thursday, January 16, 10 am – 5 pm, at the Boulder Jewish Community Center in Boulder, Colorado. Experts will discuss the state of the hemp industry in a town-hall style meeting and provide insight into hemp’s growth in the past year and what to expect in 2020. Keynote speakers will address hemp regulations and market projections to advancement and certification processes.
The Winter Hemp Summit is the run-up event to the 7th Annual NoCo Hemp Expo (NoCo 2020), scheduled for March 26-28, 2020, at the National Western Complex in Denver. Produced by the Colorado Hemp Company, as well, NoCo 2020 – the world’s largest gathering of hemp industry professionals under one roof – is expected to draw nearly 20,000 visitors. Setting the stage for this highly anticipated trade show and conference, the Winter Hemp Summit kicks off the New Year with the latest market research, forecasts, policy updates and news related to the 2020 growing and production season. View the sizzle reel HERE.
Notable Industry Speakers
The Winter Hemp Summit will feature industry experts including Patrick Goggin from Hoban Law Group; Hollis Glenn, Colorado Department of Agriculture; Wendy Mosher, New West Genetics; and Steven Taormina, NSF International. Their expertise will help clear the air on the FDA and USDA”s messaging, along with identifying opportunities for future growth in the industry.
“The Colorado Winter Hemp Summit is a premier event that kicks off the New Year with high level speakers and experts. We are encouraging everyone in the region to attend this event to help chart a course for the hemp industry,” says Morris Beegle, Producer of the Winter Hemp Summit and NoCo Hemp Expo. “The timing is now for the hemp industry to remain proactive on all fronts. The Winter Hemp Summit sets the stage for discussions about the opportunity to co-create an industry built on authenticity, transparency, entrepreneurship, innovation, diversity, equal opportunity and cooperation.”
Colorado Winter Hemp Summit 2020 Program Schedule
10:00 am – Doors Open & Registration
11:00 am – Welcome – Morris Beegle & Rick Trojan
11:10 am – 2019 Year in Review and 2020/2021 Looking Forward Policy/Lobbying: FDA, USDA, DEA – State & Federal Regulations
– Garrett Graff, Hoban Law Group
– Patrick Goggin, Hoban Law Group
– Shawn Hauser, Vicente Sederberg
– Cindy Sovine, Sovine Consulting
– Samantha Walsh, Tetra Public Relations – Moderator
12:15 pm – Colorado Hemp Advancement & Management Plan (CHAMP Overview)
– Brian Koontz, State of Colorado Department of Agriculture
– Adam Orens, MJ Policy Group
– Hollis Glenn, State of Colorado Department of Agriculture – Moderator
1:00 pm – 2:00 pm – Networking Luncheon
2:00 pm – The Business Challenges of Farming Hemp Genetics, Cultivation, Harvesting, Drying, Processing & Getting Contracts
– Joe Hickey, Halcyon Holdings
– Bill Billings, Colorado Hemp Project
– Wendy Mosher, New West Genetics
– Russell Orsborn, Bija Hemp
– Tim Gordon, Functional Remedies – Moderator
3:00 pm – The Path to Getting Hemp Products Certified Organic, Kosher and Other Certifications
– Steve Taormina, NSF International
– Rabbi Yehuda Goldman, EarthKosher
– Annie Brown, Rodale Institute
– Steve Hoffman, Compass Natural – Moderator
3:40 pm – Where the Market is at and Where is it Going Market/Investment Overview & Recap – Patrick Rea, Canopy Boulder
4:00 pm – 5:00 pm – Healthy Hempy Networking Happy Hour
Ticket & Event Information: Winter Hemp Summit & NoCo Hemp Expo
Tickets are on sale now for the 2nd Annual Winter Hemp Summit for $99.00 each. To purchase tickets or for more information, visit https://winterhempsummit.com/.
Register now and purchase tickets HERE for NoCo Hemp Expo, March 26-28, 2020.
For a complete list of sponsors and supporters visit the Winter Hemp Summit website.
About Colorado Hemp Company
The Colorado Hemp Company, producer of the 2nd Annual Winter Hemp Summit and the 7th Annual NoCo Hemp Expo (NoCo7), is a leading organization for the advancement and advocacy of hemp farming, processing, production, innovation, education, and legalization in the USA. The entire team is committed to researching and developing alternatives so that hemp can once again thrive, prosper, and help individuals and communities throughout America and around the globe.
Contact
Steven Hoffman, Compass Natural, 303.807.1042, steve@compassnaturalmarketing.com
Morris Beegle, Colorado Hemp Company, 970.541.0448, info@nocohempexpo.com
Packaging in 2020: Will CPG Companies Take the Lead on Plastic?
Originally Appeared in Presence Marketing News and New Hope Network’s Idea Xchange, January 2020
By Steven Hoffman
Presenting the theme, “Plastic Free by 2033,” Presence Marketing, in partnership with National Co+op Crocers (NCG), will host a panel on sustainable packaging solutions for natural products businesses at Natural Products Expo West in Anaheim, CA.
With its processing facilities and environment overwhelmed by handling nearly half the world’s waste for the past quarter century, China isn’t taking the U.S.’ recyclable waste anymore. And as costs skyrocket, many cities and municipalities across America have stopped plastic and paper recycling programs. As we enter the “post-recycling age,” according to retail innovation expert Piers Fawkes, consumers and businesses are becoming acutely aware that much of the amount of product packaging we generate ends up as waste that is choking landfills and the oceans.
Those of us in the natural products market may be more aware of these issues than much of the population, but as owners and operators of consumer products companies, we also are responsible for much of the single-use plastic packaging making its way into the environment.
Certainly, sustainable packaging is an issue that goes beyond natural products companies. As we enter a new decade, any industry using product packaging that is not recyclable, reusable, compostable or elsewise environmentally friendly is facing growing consumer backlash and the higher cost of creating and disposing of waste in what is being termed the circular economy.
Not all is gloom and doom, however. Innovation in sustainable consumer products packaging is happening, and a number of natural and organic products leaders, as well as some larger food and beverage and CPG corporations, are setting the pace. The good news is many businesses are taking action, from the emergence of dedicated bulk retail stores to TerraCycle’s Project Loop and Nestlé’s Institute of Packaging Sciences. Other manufacturers are investigating how to create sanitary single-serve containers without the waste. Shippers, too, are expanding the use of bio-based pallet wrap, corrugated bubble wrap, mushroom-based packaging, software to reduce waste, and more. And as the garbage piles up, sustainable packaging innovation comes not a moment too soon.
Here are some highlights from companies that have been in the news recently for taking action to reduce the impact their product packaging has on the environment.
TerraCycle and Loop – Claiming it is boldly re-inventing waste-free packaging, renowned recycling firm TerraCycle unveiled at the 2019 World Economic Forum in Davos a service called Loop, which it says is a new approach to the days when the milkman collected reusable empty bottles and replaced them with refilled ones. Instead of the milkman, however, the local UPS driver delivers products from companies such as Procter & Gamble, Unilever, Nestlé, PepsiCo and others in durable, non-disposable packaging designed for multiple reuse before ultimately being recycled. When the products are consumed, the UPS driver returns to pick up the used packaging and sends it back to Loop where it will be cleaned, refilled and resold once again. Since its launch with a few hundred products in a handful of cities, Loop has engaged more than 10,000 consumers and a number of large household brands, as well as leading natural products companies.
Nature’s Path – Organic food leader Nature’s Path has committed to making all of its packaging reusable, recyclable or compostable by 2025, and was a founding brand partner with Loop, the reusable packaging program that launched earlier this year. The company is exploring fully compostable packaging, including films that will keep its breakfast foods fresh. It also is working toward fully recyclable plastic packaging. “As part of our 2025 packaging commitment, we’re currently testing new packaging options such as reusable (LOOP) and compostable with the OSC2 Sustainable Packaging Collaborative in the U.S.,” said Manuel Gorrin, Sustainability Manager for Nature's Path. The company also increased pallet efficiency by 17% for its Que Pasa Tortilla Chips line, reducing the number of truck loads and carbon emissions by 20 metric tons, the company says.
Pete and Jerry’s Organics – To reduce the need for packaging, nationally known organic egg producer Pete and Jerry’s Organics debuted a reusable egg carton in December 2019 at Hanover Co-op stores in New Hampshire and Vermont. The cartons, which retail for $2.99, are made from recycled BPA-free plastic and are refillable from a display of loose eggs discounted from a standard dozen to allow consumers to compensate for the initial investment in reusable packaging, the company said. "Reusable cartons are a logical next step in our ongoing commitment to sustainability, moving consumer behavior from recycling to reuse. We plan to expand this program in 2020 to reach even more consumers and amplify the program's impact with major retailers clamoring for this type of sustainable innovation," said Pete and Gerry's Organics CEO Jesse Laflamme.
Tom’s of Maine (Colgate-Palmolive) – After more than five years in development, the Colgate-Palmolive Co. announced it has finalized the design of what the company says is a “first-of-its-kind recyclable toothpaste tube.” The tube will debut in the U.S. this year under Colgate’s Tom’s of Maine brand. Roll-out to select international markets under the Colgate brand will follow. The company also says it plans to fully convert to recyclable tubes by 2025, when it says all of its products will be in 100% recyclable packaging.
Patagonia – In calling out the outdoor industry for its plastic problem – from product packaging to the plastic shrink wrap used to ship pallets to trade shows, the company used itself as a role model, and unveiled its own internal waste audit that it says can be used by manufacturers throughout the industry. “We shouldn't forget the pack-in, pack-out mentality we use in the backcountry when we hit the trade show floor,” the company said. "The trade show industry itself is large, complex and wasteful," Patagonia Environmental Analyst Tellez said. "Patagonia and the Plastic Impact Alliance can spearhead a theory of change to ensure meaningful, actionable impacts through collaboration–not just talk.”
Justin’s – Partnering with flexible packaging provider ProAmpac, Justin’s, maker of natural and organic nut butter products and snacks, began using a high-barrier pouch made with 25% post-consumer recycled (PCR) materials. “Finding ways to make our packaging more sustainable has been a long-time goal and continues to be something we’re committed to,” said Justin’s Founder and CEO Justin Gold. “We’re beyond excited to take another step in more sustainable packaging solutions with them.”
Meow Meow Tweet – By its own admission a “teeny company,” Meow Meow Tweet founder Tara Pelletier developed a formula for deodorant she loved, but couldn’t abide by the multiple plastic component parts – most of which are not readily recyclable – in the hard plastic containers used to house most deodorant products. Why, she asked, should a product she’d use for a few weeks or months come in a plastic case that would be around longer than she’d be alive? Searching for an alternative, Pelletier settled on a company that made sturdy paper tubes. While her team needs to hand-fill each tube and margins are “paper thin” because the tubes cost 60 times as much as mass-produced plastic options, it’s worth it, she says, not just because it makes ethical sense but to help demonstrate to others that there are workable, functional, creative alternatives to the plastic that has infiltrated every aspect of modern commerce, National Geographic reported. In related news, learn how other personal care companies are tackling the plastic problem in this New Hope Network report.
Tetra Pak – Shelf-stable packaging leader Tetra Pak announced in December 2019 that it has become “the first company in the food and beverage industry to responsibly source fully traceable plant-based polymers” using sustainably produced sugarcane. “We see plant-based materials as playing a key role in achieving a low-carbon circular economy. In the future all polymers we use will either be made from plant-based materials or from post-consumption recycled food grades,” said Mario Abreu, VP of Sustainability for Tetra Pak.
Giant Eagle - Grocery chain Giant Eagle claims it is the first major grocery retailer to commit to removing single-use plastic from its stores by 2025. “We know it’s a lofty target, and will involve conversations with many partners, but we feel strongly that committing to anything less will only limit our potential success,” said Dan Donovan, Giant Eagle’s Senior Director of Corporate Communications. The company says it will begin moving away from the use of plastic bags, straws, single-serve fresh food containers and bottled beverages. In related news, in 2019, national fast-food restaurant chain KFC said that by 2025 all plastic-based, consumer-facing packaging will be “recoverable or reusable.” KFC said the move is part of a long-term plan to implement a more sustainable packaging strategy in its restaurants.
Carlsberg – International beer brand Carlsberg announced it is in the prototype phase in creating a sustainable, “bio-based,” fully recyclable paper beer bottle it calls the “Green Fibre Bottle.” The prototypes are being made from sustainably sourced wood fibers and either a recycled polymer film barrier or one made from bio-based polymers. The company says it has been working on the idea since 2015.
Procter & Gamble – Through its popular Head & Shoulders shampoo brand, P&G has launched what it says it the world’s first completely recyclable shampoo bottle. Teaming with recycling experts TerraCycle and SUEZ, P&G made the bottle with 25% recycled beach plastic. The company says it aims to make more than half a billion hair care bottles with 25% post-consumer recycled plastic. (That’s still a lot of plastic!)
Unilever – One of the world’s largest consumer products companies, Unilever, announced in October 2019 its commitment to reduce its use of virgin plastic by half, and a promise to help collect and process more plastic packaging than it sells. Cutting down on plastic is “the area that’s going to require the most innovation,” Richard Slater, Unilever’s head of research and development, told MSN News. Unilever currently generates 700,000 metric tons of plastic packaging each year, MSN News reports. (That, too, is a lot of plastic!)
Nestlé – Targeted among a number of CPG giants in a 2019 Greenpeace report as moving too slowly to phase out single-use plastic, Nestlé in 2019 established the Institute of Packaging Sciences to develop its own internal solutions rather than rely on suppliers, it said. The institute will focus on refillable or reusable packaging, simplified packaging materials, recycled packaging materials, high-performance paper and/or bio-based barriers, and compostable and biodegradable materials. Nestlé CEO Mark Schneider said, "Our vision is a world in which none of our packaging ends up in landfill or as litter. To achieve this, we introduce reusable packaging solutions and pioneer environmentally friendly packaging materials. Furthermore, we support the development of local recycling infrastructure and deposit schemes to help shape a waste-free world." According to Nestlé, it was able to develop recycled paper packaging for its Yes snack bars and for Nesquik All Natural cocoa powder in less than a year. “This ambitious timeline shows more progress toward sustainability is possible if sufficient resources and ambition are applied,” said Food Dive.
Amazon – Since introducing its Frustration-Free Packaging (FFP) program designed to reduce waste by providing consumers with easy-to-open packaging that also is 100% recyclable and shippable without the need for an additional box within a box, Amazon has expanded the program to include vendors. It has also taken other measures including using flexible, recyclable mailers for small items and optimizing box fit to avoid waste. However, adoption of the FFP program among vendors has been slow. Though time consuming, the FFP certification process can be worth it for sustainably minded brands selling on Amazon, advises digital marketing strategist Kevin Weiss in New Hope Network’s Idea Xchange.
Further Reading:
Coming Full Circle: Sustainable Retail in a Post-Recycling Age
By Piers Fawkes, founder and CEO of PSFK, Dec. 1, 2019
https://www.psfk.com/2019/12/sustainable-retail-circular-economy.html
10 Dynamo Sustainable Packaging Revelations of 2019
By Lisa McTigue Pierce, Packaging Digest, Dec. 11, 2019
https://www.packagingdigest.com/sustainable-packaging/10-dynamo-sustainable-packaging-revelations-of-2019-2019-12-11
2020 Will Be the Year Major Brands (Finally) Rethink Packaging
By MindBodyGreen, Dec. 8, 2019
https://www.mindbodygreen.com/articles/pepsico-unilever-and-more-make-using-less-plastic-easier
The Top 5 Packaging Trends for 2020
By Nathan Dube, Industrial Packaging, Nov. 14, 2019
https://www.industrialpackaging.com/blog/the-top-5-packaging-trends-for-2020
Pay Attention to These 2020 Packaging Trends
By The Unique Group, Nov. 25, 2019
https://theuniquegroup.com/pay-attention-to-these-2020-packaging-trends/
Packaging Trends in 2020 for Food and Beverages
By Gaurav Jain, Entrepreneur Magazine, Dec. 18, 2019
https://www.entrepreneur.com/article/344012
Why Reusable Food Packaging Has a Promising Future
By Jessi Devenyms, Food Dive, June 25, 2019
https://www.fooddive.com/news/why-reusable-food-packaging-has-a-promising-future/557119/
New Method Upcycles Plastic Waste to Valuable Products
By New Hope Network, Oct. 25, 2019
THE CIRCULAR ECONOMY
https://www.newhope.com/news/new-method-upcycles-plastic-waste-valuable-products-0
Eco-friendly Plastic: Hemp & Reclaimed Ocean Packaging
By A.J. Herrington, The Hemp Magazine, May 8, 2019
https://thehempmag.com/2019/05/eco-friendly-plastic-hemp-reclaimed-ocean-packaging/
Hemp Futures: Trends to Watch in 2020
Photo Montage: Compass Natural
Hemp Salve Photo: Pixabay
Hemp House Photo: Wikimedia Commons
Originally Appeared in Let’s Talk Hemp Newsletter, December 2019
By Steven Hoffman
In the year since hemp became legal in the U.S. under the 2018 Farm Bill, the hemp industry has quite literally taken off. Retail sales of CBD products in the U.S. alone are expected to surpass $1 billion in 2019, a 133% increase over 2018 sales, and Hemp Industry Daily projects retail CBD sales will increase to $10.3 billion by 2024, representing a five-year compound annual growth rate of 54%. Indeed, “2019 will forever be remembered as the year that launched America’s CBD craze,” observed Patrick McCarthy, CEO of ValidCare, a market intelligence and research platform for the hemp products industry.
While legalization has spawned a burgeoning industry, challenges for hemp operators proliferated in 2019. Retailers, vendors and other entrepreneurial businesses had difficulty finding banking and credit card companies that would work with them. FDA in November issued a consumer advisory questioning the safety of CBD along with warning letters to 15 companies, setting off late-year uncertainty among businesses that sell CBD in food, beverages and dietary supplements. For farmers, USDA’s interim hemp regulations, published in October, have generated controversy around proposed testing procedures and potential for farmers to bear an undue burden of costs if crops need to be destroyed.
They say hindsight is 2020. If so, what better year for the hemp industry to remain proactive on all fronts. On the wish list for a new decade is the opportunity to co-create an industry built on authenticity, transparency, entrepreneurship, innovation, diversity, equal opportunity and cooperation, as well as one committed to promoting local economies, social responsibility and environmental stewardship.
Here’s a sampler of some of the hemp industry’s top issues, predictions and business opportunities to consider as we enter 2020 and a new decade.
Product Safety, Transparency and Reliability
“Today’s consumer cares about where the products they put in, and on, their bodies come from. This trend will hit the hemp industry next, as consumers demand information on plant origin, farming practices, product composition and sustainability,” says Patrick McCarthy of ValidCare. In addition, “broad categorical approval of CBD by the FDA won’t move forward until [industry] leaders band together to provide the safety data FDA is requesting. Until this happens, expect more FDA and FTC letters and class actions to chip away at consumer confidence and add risk and cost to branded operations,” he cautions in his new report, Ten Predictions for the Hemp-Derived CBD Industry in 2020. McCarthy also advises that as consumer sophistication grows in 2020, “they will demand easy and reliable ways to measure amounts when consuming or applying CBD and other cannabinoids. This will be driven by consumers and regulators alike, requiring ‘metered’ calibration of applicators like droppers or pumps, and standardization of serving sizes for consumables. Milligrams matter,” he adds.
Ditching the Pharmaceuticals
As consumers adopt CBD products, they are increasingly ditching the pharmaceuticals used for anxiety, depression and other mental health and physical issues. “Today, one in five Americans report they use hemp-derived CBD for “mental health reasons” such as anxiety, says McCarthy. “In 2020, we’ll see even more people ditch Prozac prescriptions for non-impairing hemp-derived CBD to support their mental health goals. Expect brands targeting this audience to commission research on hemp-derived CBD’s functional benefits for mental health.” In addition, McCarthy notes that the “AARP crowd is one of the largest demographics using hemp-derived CBD for chronic joint pain and sleep. Expect this trend to increase as Boomers seek to replace prescription and OTC pharmaceuticals with hemp-derived products – and to lobby for coverage and/or reimbursement through FSAs, HSAs and supplemental Medicare policies,” he predicts.
Certification
Discerning consumers seeking CBD supplements produced without the use of toxic, synthetic pesticides, or synthetic nitrogen fertilizer, much of which is derived from fracking, will be looking for the USDA Certified Organic seal on products. Also, in March 2019, the U.S. Hemp Authority announced 13 companies had achieved the U.S. Hemp Authority Certified Seal, established to elevate consumer confidence in product quality and safety. Expect more demand for Kosher certification and other certification programs in the future.
Using the Whole Plant
The coming decade will see the focus move beyond CBD to the whole hemp plant, many experts predict. “I think a lot of…farmers are going to realize that the cannabis plant is not a CBD plant, Marysia Morawska, Horticulture Educator at the University of Nevada, Las Vegas, predicts in Hemp Industry Daily. “What we’re going to see is a movement toward a trifecta or even quad-usage plant – so, something that’s utilized for the hurd, for the fiber, for the flower, for the grain. And once we realize what those genetics are, we’ll end up realizing that each region specifically has growing styles that will be differentiated by the genetics of that region. And we will move into a place where processing will include not just CBD.”
Tribal Hemp
South Dakota Governor Kristi Noem may be no big fan of hemp, but Native American tribes in the state and throughout the country are embracing hemp. In South Dakota, the Flandreau Santee Sioux Tribe and Oglala Sioux Tribe have filed applications with the USDA to grow hemp, and the Rosebud Sioux Tribe plans to hold a vote on hemp before applying, reports U.S. News & World Report. Muriel YoungBear, a member of the Meskwaki Nation in Tama, Iowa, and a University of Kansas graduate student studying business, has been networking with industry leaders, visiting Colorado growing operations and working within tribal economic development circles to become an educational resource for native nations in producing hemp and added value hemp products. Oglala Lakota tribal elder Alex White Plume has become a leading hemp producer and an inspiration to others. Meanwhile, Winona LaDuke, a Water Protector, former candidate for Vice President of the United States, and founder of the Anishinaabe Agriculture Institute, is leading a hemp fiber renaissance in northern Minnesota, advocating for developing hemp textile mills and helping to drive economic opportunities in hemp production for Native Americans throughout the U.S.
Infrastructure Needed
Licensed hemp acreage quadrupled in 2019, but the industry’s infrastructure wasn’t equipped to handle rapid growth. “While there is certainly expansive demand for hemp and hemp-derived products, there is a critical lack of processors capable of keeping up with such, due primarily to a lack both of hemp processing equipment or a mature supply chain,” writes Chris Hudock in New Frontier Data. “In the coming year, the introduction of new processors and established markets will remain vital to the pace and overall health of the industry” he says.
FDA Guidance Could Take Time
With growing popularity and marketing hype surrounding CBD products, federal regulators are challenged to conduct research and establish policy, and this could take not months but years. Questions of health and public safety abound, especially as less scrupulous manufacturers and marketers make unsubstantiated health claims about the effectiveness of CBD products. Add to that the mysterious vaping crisis in 2019. “You can’t go from zero to one hundred without the government needing to feel like it’s doing its job. There are checkboxes that bureaucrats and agencies need to see, and by statutory mandate, it’s the FDA’s core job to protect consumers,” says Bob Hoban, President and Founder of the Hoban Law Group. However, with regard to FDA’s warning letters, “Stop making claims,” Hoban urges marketers of CBD products. “The FDA’s perspective in [its] consumer update assumes there are no studies. This is inaccurate. And the legality of hemp derivatives is clear. If the FDA has studies that challenge the World Health Organization’s, and indicate toxicity, those should be released immediately. But every time the FDA says the words hemp or CBD the industry shakes and the media runs wild. Unless the FDA has some steak, all this sizzle is just adding to the noise. Do we really need more of that?” he asks.
Consolidation on the Horizon
With Canadian companies acquiring U.S. hemp food, beverage and CBD businesses, along with competitor consolidation, as witnessed by the 2019 merger of RE: Botanicals and Palmetto Harmony, expect more mergers, acquisitions and consolidation as businesses and investors seek to gain efficiencies and improve the top and bottom line in a young, but highly competitive market.
Continued Growth, But Better Planning Required
“The hemp industry will surely experience explosive growth in 2020 as the USDA and FDA begin to release rules, take comments and eventually implement said regulations,” predicts Ray Mazzie, Director of Hemp Industries Association Florida, in Hemp Industry Daily. “Compliance and learning from others’ mistakes will prove to be invaluable to 2020 hemp operators, regardless of where they sit in the supply chain,” he advises. Adds Mark Case, Founder and CEO of Knoxville, TN-based International Hemp Auction and Market, “2018 was a gamble but a good year for most. 2019 was a gamble but a thin year for most. 2020 is not a year for gamblers. Rather, it will be successful only for those who are wise and prudent, fully integrated and who work with a good business plan to go the long haul.”
The FDA Strikes Back: Agency Issues Warning Letters to 15 CBD Makers, Releases Consumer Guide Expressing Doubts About CBD Safety
Originally Appeared in Let’s Talk Hemp Newsletter, November 2019
By Steven Hoffman
As the USDA Takes Public Comments on Its Final Interim Rule for Hemp Production, FDA on November 25 Issued Warning Letters to 15 CBD Makers and Expressed Doubts about the Safety of CBD in a Newly Released CBD Consumer Guide
The U.S. Food and Drug Administration (FDA) seems to have flipped the Thanksgiving bird, so to speak, to the hemp and CBD industry when it issued on November 25 – the Monday before Thanksgiving – warning letters to 15 companies for allegedly selling products containing cannabidiol (CBD) in ways the agency said violate the Federal Food, Drug and Cosmetic (FD&C) Act.
On the same day, the FDA also released a revised Consumer Update – titled What You Need to Know (and What We’re Working to Find Out) About Products Containing Cannabis or Cannabis-derived Compounds, including CBD – that details the agency’s alleged safety concerns about CBD products, in particular the safety of CBD in food. In a blow to the burgeoning CBD marketplace, the FDA said it couldn’t conclude that CBD is safe for use in human or animal food.
Despite the 2018 Farm Bill removing hemp — defined as cannabis and cannabis derivatives with very low concentrations (no more than 0.3% on a dry weight basis) of THC — from the definition of marijuana in the Controlled Substances Act, CBD products are still subject to the same laws and requirements as FDA-regulated products that contain any other substance. “The FDA is concerned that people may mistakenly believe that trying CBD ‘can’t hurt,’” it said in the Consumer Guide. “The agency wants to be clear that we have seen only limited data about CBD’s safety and these data point to real risks that need to be considered,” the agency added.
The FDA expressed particular concerns in the Consumer Guide about potential liver toxicity, drug interactions and male reproductive toxicity. The FDA also stated that using CBD may have certain temporary side effects, including, among others, drowsiness, insomnia, gastrointestinal distress, decreased appetite, irritability, and agitation. The FDA says it is actively working to answer questions about science, safety and quality of products containing cannabis and cannabis-derived compounds, particularly CBD. It also said it wants to learn about and identify potential risks associated with cumulative exposure such as ongoing use and ingestible or topical use, the effect on special populations such as elderly, children, and pregnant or breastfeeding women, and the use of CBD by pets and other animals.
Bad Comparisons
However, Dr. Stuart Titus, CEO of Medical Marijuana, a publicly traded company which has created a CBD product line, challenged the FDA’s decision, telling Forbes, “The FDA has mistakenly substituted the adverse effects of Epidiolex, a refined, isolated and semi-synthetic form of CBD, as being the same form of CBD that is being sold by those in the nutritional supplement industry,” he said. “Nothing could be further from the truth. There is no evidence to show that botanical forms of CBD have much more ‘drug interaction’ than normal foods or that the natural botanical form of CBD confers the ‘toxic liver effects’ that the FDA mentions in its statement.”
Titus also told Forbes that the CBD industry, the Hemp Roundtable and the U.S. Hemp Authority have been working to increase their standards and industry-wide vigilance toward the quality of manufacturing, and other regulations regarding the production of a safe and well-tested form of CBD.
In a 2018 report, the World Health Organization found no adverse health effects but rather several medical applications for cannabidiol (CBD), despite FDA policy, reported Forbes. According to the WHO, naturally occurring CBD is safe and well tolerated in humans (and animals), and is not associated with any negative public health risks. Experts with the international health organization further stated that CBD does not induce physical dependence and is “not associated with abuse potential.” According to the WHO, people are not getting high off of CBD, either. “To date, there is no evidence of recreational use of CBD or any public health related problem associated with the use of pure CBD.”
Currently, writes Stephanie Savage of law firm Miller & Martin, Epidiolex is the only FDA-approved drug product containing CBD. The FDA believes that the new drug approval process is the best way to ensure the safety and effectiveness of new medicines, she says. Even though products are being marketed and sold as a food or dietary supplement, FDA asserts it is illegal to market CBD by adding it to a food or labeling it as a dietary supplement. The FDA is evaluating the regulatory frameworks that apply to certain cannabis-derived products that are intended for non-drug uses, including whether and/or how the FDA might consider updating its regulations, as well as whether potential legislation might be appropriate, she writes.
Calling Companies Out for Making Health Claims
In issuing the warning letters, the FDA says it identified 15 companies that “are using product webpages, online stores and social media to market CBD products in interstate commerce in ways that violate the FD&C Act, including marketing CBD products to treat diseases or for other therapeutic uses for humans and/or animals. Other violations include marketing CBD products as dietary supplements and adding CBD to human and animal foods, the agency said in a release.
“As we work quickly to further clarify our regulatory approach for products containing cannabis and cannabis-derived compounds like CBD, we’ll continue to monitor the marketplace and take action as needed against companies that violate the law in ways that raise a variety of public health concerns. In line with our mission to protect the public, foster innovation, and promote consumer confidence, this overarching approach regarding CBD is the same as the FDA would take for any other substance that we regulate,” said FDA Principal Deputy Commissioner Amy Abernethy, M.D., Ph.D., in a statement.
Michael Harinen, Chief Brand Officer at Louisville, CO-based Bluebird Botanicals, which makes hemp-derived CBD products, told Forbes that the FDA brought up valid concerns about companies that are selling products with unverified medical claims or are unsafe for human consumption. Some of the products are tainted with pesticides or herbicides, while others have little to no CBD in them, he said. “It’s affected our business because whenever the FDA comes out with an announcement, including this one, customers call us up,” said Harinen. “They are very wary and scrutinizing us. And they are concerned about the legal status of CBD.”
Companies receiving warning letters from the FDA include the following:
Koi CBD LLC, Norwalk, California
Pink Collections Inc., Beverly Hills, California
Noli Oil, Southlake, Texas
Natural Native LLC, Norman, Oklahoma
Whole Leaf Organics LLC, Sherman Oaks, California
Infinite Product Company LLLP, dba Infinite CBD, Lakewood, Colorado
Apex Hemp Oil LLC, Redmond, Oregon
Bella Rose Labs, Brooklyn, New York
Sunflora Inc., Tampa, Florida / Your CBD Store, Bradenton, Florida
Healthy Hemp Strategies LLC, dba Curapure, Concord, California
Private I Salon LLC, Charlotte, North Carolina
Organix Industries Inc., dba Plant Organix, San Bernardino, California
Red Pill Medical Inc., Phoenix, Arizona
Sabai Ventures Ltd., Los Angeles, California
Daddy Burt LLC, dba Daddy Burt Hemp Co., Lexington, Kentucky
The FDA also stated it has previously sent warning letters to other companies it says were “illegally selling CBD products in interstate commerce that claimed to prevent, diagnose, mitigate, treat or cure serious diseases, such as cancer, or otherwise violated the FD&C Act. Some of these products were in further violation because CBD was added to food, and some of the products were also marketed as dietary supplements despite products which contain CBD not meeting the definition of a dietary supplement,” the FDA added in a release.
Colorado’s CHAMP Hemp Initiative Welcomes Public Comments in Responding to USDA’s Interim Final Rule on Hemp
Brian Koontz, Manager of the Colorado Department of Agriculture’s Industrial Hemp Program (right), shares the state’s concerns over USDA’s Interim Final Rule for U.S. hemp production at a public hearing in Broomfield, CO, on December 10. Photo: Compass Natural
Originally Appeared in Let’s Talk Hemp Newsletter, December 2019
By Steven Hoffman
As state and industry leaders sift through USDA’s Interim Final Rule set to govern U.S. hemp production in order to craft a response in advance of the December 30 comment deadline, a number of common concerns are emerging, not the least of which is the rule’s increased potential to place farmers at risk.
The Colorado Department of Agriculture’s Hemp Advancement & Management Plan (CHAMP) initiative welcomed on December 10 more than 100 hemp industry members, advocates, farmers, researchers, academics and others to the agency’s office in Broomfield, CO, for a public meeting to hear comments on the USDA Interim Final Rule (IFR) to establish a national hemp production program and how it affects the state’s own plan for hemp.
The goal of the hearing was to gather comments from the public and coordinate a unified response from the state of Colorado to the USDA in advance of USDA’s December 30 comment period deadline regarding the Interim Final Rule governing U.S. hemp production. In addition, state leaders gathered information at the hearing to help align Colorado’s comprehensive hemp plan with IFR requirements.
The comment letter to the USDA, to be prepared on behalf of the state in coordination with the Colorado Department of Agriculture (CDA), the state’s Attorney General and the office of the Governor, will be signed by Governor Jared Polis and Agriculture Commissioner Kate Greenberg. The response will express the state’s perspectives and concerns as a first mover and leader in industrial hemp regarding USDA’s IFR and its impact on Colorado hemp producers who have already been operating under a well-established, state-managed regulatory system in Colorado since 2014. At issue is where USDA rules differ from Colorado regulations and how the state’s farmers may be subject to increased violations and financial risk from seemingly inflexible federal rules that don’t allow for variation in a young, maturing industry.
To date, the USDA has received approximately 1,100 comments regarding the IFR. Hemp and industry leaders and advocates are urging all constituents to submit comments. “The USDA needs to hear from all of us and there should be 100,000 comments, not 1,100,” said one Colorado hemp farmer commenting at the Colorado CHAMP public hearing. The U.S. Hemp Roundtable prepared a letter outlining its issues with the IFR, and other states including Maine submitted comments to USDA sharing their concerns about USDA’s rule.
Percent of Violations Could Increase Under USDA’s IFR
“The way [the IFR] is written, the percentage of violations could increase. More farmers could be unnecessarily subject to violations,” observed Adam Orens, a consultant with Colorado State University and CHAMP who reported at the hearing on how the USDA’s IFR could impact the state’s hemp producers. “USDA’s set of rules was written for a state with half or less of the total acreage of Colorado. Given the expected scale of production in Colorado, we have concern that public and private investment could be affected as a result of USDA’s IFR on hemp,” he added.
Orens noted that USDA’s IFR will govern hemp for two years, after which a Final Rule will be issued. “The two year interim period allows for a full crop cycle; the 2020 season will be a test drive,” he added.
According to Orens, USDA’s interim rule defines acceptable levels of THC (“with a hard limit of 0.3%”), covers registration for hemp farmers, sampling, testing, disposal of “hot” plants, and enforcement and violations. “The showstopper is that USDA will require 100% of all lots to be sampled, while only random sampling had been required in Colorado,” Orens said. “Plus, the top one-third of the plant is to be tested; it’s not more specific than that. We see a challenge there with logistics,” he added.
Orens added that in terms of percentages of THC content, under USDA’s IFR, “the line is drawn at 0.5%.” “If the crop sample tests at greater than 0.3%, it must be destroyed. If it tests at less than 0.5%, it is not considered a negligent violation. If a crop comes in at greater than 0.5%, that is considered a violation. In Colorado, the limit is 1%, so that is different.” Orens noted that if a farmer receives three violations in one year, a suspension would be issued under the USDA interim final rule.
A concern raised by a number of hemp growers at the hearing was that crop sampling and testing for THC content must be conducted within a very narrow window of 15 days prior to anticipated harvest. Harvest is not allowed until samples are taken and the crop cannot enter the stream of commerce until THC content is verified. Farmers expressed concern that, with the current scarcity of approved testing laboratories, the overwhelming demand for sample testing during the harvest months of September and October would create an impossible backlog, impacting the allowed window for sampling and testing and in consequence, farmers’ harvests. A number of citizens also asked why “hot” crops have to be destroyed and not repurposed into fiber, animal feed, or other uses where the farmer doesn’t have to lose the entire income on his or her crop.
Adding potential insult to injury, just as hemp farmers have been cleared under the 2018 Farm Bill to qualify for crop insurance, USDA’s interim rule pulls the rug out on farmers if a crop tests “hot.” According to CannaLaw Blog, “Hemp with a THC level above the compliance level will not constitute an insurance cause of loss…The lack of crop insurance coverage for hemp that fails testing, when combined with the rules about crop destruction, creates enormous risk for hemp farmers. A farmer may try to do everything right only to end up with an uninsurable crop that must be destroyed and a complete loss of their investment into hemp farming.”
USDA’s rules further require that testing labs be registered with the U.S. Drug Enforcement Administration (DEA). But current DEA rules limit registration to jurisdictions in which medical or recreational marijuana is legal, reports CannaLaw Blog. “Although the number of such jurisdictions is growing, no one in the industry believes that the number of DEA registered laboratories can handle the quantities of hemp being produced by American farmers. This is an area where Congress may need to place pressure on the USDA and DEA to avoid causing a significant bottleneck in the hemp supply chain.”
States Will Need to Adopt Final USDA Rule by November 1, 2020
Brian Koontz, Manager of the Colorado Department of Agriculture’s Industrial Hemp Program, told the public meeting attendees, “We can operate under our existing state plan through October 31 of next year; after that all states including Colorado will need to adopt USDA’s final rule regarding hemp on November 1, 2020.
Koontz expressed the state’s concern that, given the 100% testing requirement, more testing staff will be required and testing labs will have to be certified by the DEA. “About 2,000 acres of hemp were ordered destroyed in Colorado last year, and that was at an average of 25% testing. Given the 100% testing requirement, our concern is that the percentage of crops required to be destroyed may significantly increase, which could adversely affect our state’s farmers,” Koontz said.
Koontz also noted that, whereas the USDA IFR stipulates that hemp growing licenses will not be issued to individuals with any felony convictions, “that rule should not apply to farm workers, drivers and others who are not key personnel,” he said.
“Also, USDA in its IFR did not address certified seed. However, we see this as important, as hemp growers want reliable genetics,” Koontz added, and he encouraged people to submit comments to USDA regarding their concerns and thoughts on certified seed and seed genetics.
Commenting at the hearing, Ed Lehrburger, founder of Pure Hemp Technology and Chair of Colorado’s Hemp Advisory Committee, offered: “When farmers’ crop tests hot, it can destroy hopes and dreams. As such, I recommend that USDA’s definition of hemp be changed. The 0.3% THC limit must be increased to 0.5%. Any hemp crop testing at greater than 1% THC could be considered as ‘noncompliant,’ he suggested.
Speaking on behalf of the Rocky Mountain Farmers Union, Nick Levendofsky, RMFU’s Director of External Affairs, told the CDA and CHAMP officials conducting the public hearing, “We support the issuance of the rule overall as it supports an emerging industry that can help rural farmers. However, dealing with acceptable levels of THC is not something we’ve seen before. Our real concern is that testing could be too costly and may reduce opportunities for rural farmers. Disposal is also a concern. Family farmers should have the same opportunities in hemp, not just venture capital backed operations, and a negligent violation should not be so punitive as to deter farmers,” he commented.
Hunter Buffington, Director of the Colorado Hemp Feed Coalition, wondered if DEA involvement in the hemp program “is another example of government overreach? No other crop has to deal with the DEA,” she observed. Buffington and others also advocated that by requiring testing of the top one-third of the plant “ignores the rest of the plant.” She advocated for testing homogenized samples of the whole plant instead, and also asked that the program make exceptions for research and development. “We want stable and compliant varieties. The rule is written for farmers but not for researchers. An exemption is absolutely necessary to allow institutions to conduct research,” she said.
Jared Stanley, co-founder of Charlotte’s Web, noted that industrial hemp is not just CBD. “The 2018 Farm Bill allows for all parts of the plant,” he reminded the CHAMP hearing panel. Stanley also advocated for exploring the allowance in the program for an export market for U.S. grown hemp. “American hemp was created via this program,” he said. “We need to promote an export market for our hemp so we don’t have to grow hemp in Uruguay just to sell to Europe.”
In summary, says CannaLaw Blog, “Everyone in the hemp industry ought to submit a comment. Submitting a comment is easy: just click here. Note that you can also upload documents, such as prepared statements or other relevant materials.”
Naturally Bay Area to Host 2nd Annual Pitch Slam Competition for Emerging Organic & Natural Brands During Winter Fancy Food Trade Show, January 19, 2020, San Francisco, CA
Entrepreneurs Compete to Pitch their Companies' Innovations to Business Leaders at Premier Industry Event for Prizes Worth Over $30,000, including $5,000 Cash, a Booth at 2020 Natural Products Expo East (Courtesy of New Hope Network), and a Suite of Professional Services
SAN FRANCISCO, CA (December 11, 2019) – Naturally Bay Area, a vibrant and thriving business community comprised of entrepreneurs, investors, innovators and leading brands in the natural and organic products industry, is gearing up for its premier event of the year. The 2nd Annual Naturally Bay Area Pitch Slam will take place on the first night of the Winter Fancy Food Show on Sunday, January 19, 2020, from 5:00 p.m. - 8:00 p.m., at the Mission Bay Conference Center, San Francisco, CA. Naturally Bay Area, now in its second year, is home to a robust membership of 500+ business entrepreneurs and leaders who work in various industries from food, beverage, health, wellness, beauty, pet, hemp/CBD, and more in Northern California.
“Our second annual Naturally Bay Area Pitch Slam will spotlight emerging local natural and organic brands that are creating unique better-for-you food, beverage and personal care products,” says Don Buder, Naturally Bay Area Board Chair and Founding Board Member. “It’s also a celebration of the flourishing hub we have built together in the last two years for the Northern California natural products innovation community. The Pitch Slam will be a special opportunity for everyone to meet elite entrepreneurs, breakthrough brands, and many leaders of the Northern California natural products ecosystem. We invite all of our members and industry leaders from across the country who will be visiting San Francisco for the Winter Fancy Food Show to join us for this community celebration.”
About the Pitch Slam
Natural product companies based in Northern California were invited to compete and pitch amongst a wide selection of brands in the Bay Area. The Naturally Bay Area team narrowed the selection down to six finalists who will compete for grand prize packages valued at over $30,000, including:
$5,000 cash
10'x10' booth at 2020 Natural Products Expo East (the world’s largest natural products trade show on the East Coast), courtesy of New Hope Network
A guaranteed spot to pitch at the 2020 Natural Products Expo East Pitch Slam, courtesy of New Hope Network
A suite of professional services (including financial/legal advice, marketing, strategy consulting, and more!)
Hundreds of natural products industry leaders will gather to cheer on the Pitch Slam finalists and hear about their companies' innovations and brand strategy. The Pitch Slam is the premier event of the year and provides unique networking opportunities to rub elbows with industry leaders, in addition to learning and listening to keynote speakers.
Pitch Slam Finalists
There are a total of six Naturally Bay Area Pitch Slam finalists in the 2020 Competition. Each Pitch Slam finalist will present a timed business pitch to a panel of select expert judges who will vote for the final top-three winners. Buder adds, “The Pitch Slam is a game changer for the brands competing. This is the ultimate night for our community to gather and connect seasoned natural products industry experts with passionate and innovative entrepreneurs.” The six Naturally Bay Area Pitch Slam finalist companies include:
A Dozen Cousins: A Dozen Cousins makes convenient products inspired by traditional Black and Latino recipes. They believe that health, convenience, and culture shouldn't be mutually exclusive, and they're on a mission to inspire families of all backgrounds to eat better food and live longer, more vibrant lives.
Bread SRSLY: Bread SRSLY is serious about reuniting people with sourdough when they thought good bread was off the table. Bread SRSLY uses organic, gluten-free grains, and the magic of wild fermentation to bake traditional sourdough bread that is delicious, nourishing, and comforting.
Down to Cook: Down to Cook helps home cooks prepare delicious plant-based meals that are nutritious, convenient, and accessible. Their mission is to provide greater access to the health benefits of plant-based food while reducing animal product use and household food waste.
Dr Hops Kombucha: Founded in 2015 to produce the world's most delightful and health-conscious alcoholic beverages, Dr Hops Kombucha Beer is making radically authentic high-alcohol kombucha with hops, completely unfiltered and unpasteurized, gluten-free, probiotic, and explosively tasty.
Outlaw Soaps: Outlaw offers a collection of Western adventure soap, lotion, lip balm, and solid cologne that smells like the Wild West and nature. Come for the Bacon soap, stay for the Whiskey soap.
Renewal Mill: Renewal Mill helps reduce global food waste by upcycling okara into a nutritious, versatile flour that's better for you and better for the planet! Okara is a delicious superfood harvested from the pulp of organic soybeans that is created during soymilk production.
Pitch Slam Celebration & Registration:
Join the fun: mingle, cheer, learn, and eat & drink. Reserve your seat now to make sure you have a spot for the premier event of the year – we will sell out! Tickets: Members, $49. Non-members, $69. Click here for tickets today!
Event Details: January 19, 2020, 5:00 p.m. - 8:00 p.m., Mission Bay Conference Center (Robertson Auditorium), 1675 Owens Street #251, San Francisco, CA. Lisa Curtis, Co-Founder and CEO of Kuli Kuli, will MC the event. Hear from our 2020 Keynote Speaker, Miyoko Schinner, CEO/Founder of Miyoko's Creamery and learn more about the insightful story leading up to the successful evolution of Miyoko’s dairy-free, plant-based cheese brand. In addition, Wayne Wu, Partner at VMG Partners will interview Elizabeth Giannuzzi, CEO/Co-Founder of Siren Snacks and the First Place Naturally Bay Area 2018 Pitch Slam Winner, and Hector Saldivar, Founder of Tia Lupita Foods and Second Place Naturally Bay Area 2018 Pitch Slam Winner, during a Fireside Chat.
2020 Pitch Slam Competition Sponsors
Aspect Consumer Partners, New Hope Network, Whole Foods, and Compass Natural Marketing.
Naturally Bay Area Sponsors
Naturally Bay Area is proud to have Premier, Platinum, Gold, Silver, and Bronze-level Sponsors. Premier Sponsors include Aspect Consumer Partners, BPM LLP, Clif Bar & Company, Davis Wright Tremaine LLP, GABY, Mista/Givaudan, Navitas Organics, New Hope Network, Propeller Industries, and The Burbank Hafeli Schiller Group. For a complete list of Sponsors, visit here.
About Naturally Bay Area
Naturally Bay Area is dedicated to building and fostering a community that nurtures conscious growth, leadership and innovation in the Bay Area natural products industry. Founded in 2018 as a 501c6 non-profit organization, it now has over 500 members compromised of entrepreneurs, investors, innovators, and emerging and leading brands. Naturally Bay Area provides access to cutting-edge business education events and programs, opportunities for meaningful connections and networking, and special celebrations.
Naturally Bay Area is a part of Naturally Network, which supports a national ecosystem to galvanize and grow the natural and organic products industry. Naturally Network serves those who wish to create a more conscious and regenerative economy and culture through the power of business. Our collective goal is to manifest meaningful change for our industry, our society, and our planet.
Visit us online at naturallybayarea.org or find us on LinkedIn or Facebook. For member or sponsor information, please contact us at info@naturallybayarea.org.
Contact
Vanessa Toy, Naturally Bay Area, vanessa@cultivatecreations.com
Steven Hoffman, Compass Natural Marketing, steve@compassnaturalmarketing.com
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