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.
The Secret Sauce Behind a Successful Brand – Join Mike Schall, FocalPoint, on Compass Coffee Talk, August 18, 11:30am EDT
The Secret Sauce Behind a Successful Brand
Former Whole Foods Market Senior Leader of Global Growth and Business Development Mike Schall Will Share Key Components to Success on the Next Compass Coffee Talk™
Wednesday, August 18, 11:30 am – Noon EDT
Zoom, Admission is Free
Mike Schall
Schall is the Managing Director of FocalPoint, a middle-market international investment banking firm, where he also serves as a co-leader for the company’s Food & Beverage practice. Prior to joining FocalPoint, Mike was an integral part of the global senior executive team at Whole Foods Market, where he first served as an advisor to the E-Team and subsequently joined Whole Foods Market as Senior Coordinator, Global Growth and Business Development, providing leadership on a wide range of business initiatives including investments, acquisitions, new ventures, strategic partnerships as well as product development for Whole Foods Market Exclusive Brands.
Mike serves on a number of national boards and organizations and is an active Advisory Board member of Compass Natural Marketing. In addition, Mike has held various C-level positions in food companies for more than 30 years, including Fresh Food Concepts, Monterey Gourmet Foods, Guiltless Gourmet, Townsend’s, David Michael Flavors, Wise Foods, and The B. Manischewitz Company.
About Mike Schall
Mike Schall has successfully navigated significant growth periods, and food recalls; led sales, marketing, culinary, product development, and quality assurance teams; negotiated strategic joint ventures with Fortune 500 companies such as ConAgra and Proctor & Gamble; and served on audit and strategic mergers and acquisitions committees.
Mike Schall graduated from the University of Southern California’s Marshall School of Business with a Master of Business Administration in marketing. He also holds a Bachelor of Arts in marketing from California State University, Los Angeles. He is a frequent speaker at food and beverage industry events and has authored numerous food industry articles and blogs. Mike is an advocate for Atlanta-based OnBoard, a non-profit supporting women in leadership. He is plant-based, an avid runner, and enjoys cooking, reading, and studying history. He and Lisa, his wife of 40 years, have two daughters and three granddaughters.
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
Hemp-derived CBD Industry to Congress and FDA: “Regulate CBD as Dietary Supplements Now”
This article originally appeared in Presence Marketing’s July 2021 Industry Newsletter
By Steven Hoffman
The U.S. Hemp Roundtable (USHR) at a press conference on June 18th in Denver called on members of Congress in Colorado and in states across the country to support national legislation that would call on the FDA to regulate CBD like any other dietary supplement.
With approximately 100 people in attendance in person and online via Zoom at its spring 2021 membership meeting held at the Denver History Museum, USHR underscored its lobbying efforts by announcing the launch of Regulate CBD Now, an online campaign to encourage industry members and citizens to contact their representatives about important legislation impacting consumer access to hemp and CBD products in the U.S.
According to USHR General Counsel Jonathan Miller, the hemp industry is focused on two bills that Congress is currently considering – H.R. 841 in the U.S. House of Representatives, and S. 1698 in the U.S. Senate – that would call on the U.S. Food and Drug Administration (FDA) to regulate CBD as a dietary supplement or as a food additive.
“To have CBD regulated like dietary supplements would be a game changer for the hemp-derived CBD industry,” Miller told Let’s Talk Hemp. Miller noted that in addition to allowing CBD to be regulated like dietary supplements, the Senate bill also calls for CBD to be permitted as an ingredient in food and beverage products.
According to a statement by USHR, while the FDA has recognized the significant public interest in CBD, the agency has not yet established a legal pathway for its sale.
About the Bills:
H.R. 841 – Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2021
Introduced by Rep. Kurt Schrader (D-OR), H.R. 841 allows the use of hemp, cannabidiol (CBD) derived from hemp, or any other ingredient derived from hemp in a dietary supplement, provided that the supplement meets other applicable requirements. Currently, FDA's position is that CBD products may not be sold as dietary supplements. (Source: congress.gov.)
S. 1698 – Hemp Access and Consumer Safety Act
Introduced by Sen. Ron Wyden (D-OR), S. 1698 would allow hemp-derived cannabidiol and hemp-derived cannabidiol containing substances in dietary supplements and food and beverage products. (Source: congress.gov).
In addition to USHR, the Regulate CBD Now campaign is supported by organizations including the Alliance for Natural Health, American Herbal Products Association, Citizens for Health, Consumer Healthcare Products Association, Council for Responsible Nutrition, Friends of Hemp, Hemp Alliance of Tennessee, Hemp Industries Association, Midwest Hemp Council, National Grocers Association, Texas Hemp Coalition, United Natural Products Alliance, U.S. Hemp Authority, U.S. Hemp Building Association, Vote Hemp, We Are for Better Alternatives (WAFBA), and the Wisconsin Hemp Alliance.
The U.S. Hemp Roundtable is a national advocacy organization comprising a coalition of dozens of leading companies and organizations committed to safe hemp and CBD products. USHR works in partnership with national, regional, and state organizations, and helps lead the way forward for hemp and CBD products through education and action. For more information, visit www.regulateCBDnow.com and www.hempsupporter.com.
Drought in the West Brings Risk of Food Inflation Across the U.S.
This article originally appeared in Presence Marketing’s July 2021 Industry Newsletter
By Steven Hoffman
California produces 80% of the world’s almonds, but it is a thirsty crop. Almond production is California’s most valuable crop, and it accounts for 80% of the state’s water use.
However, after a warm spring that dried up nearly all of the Sierra Nevada’s snowpack, the drought in the state is now so extreme and water so scarce in California’s Central Valley that almond farmers are ripping out trees or being forced to let portions of their acreage go dry, reported Bloomberg. With water levels of more than 1,500 reservoirs in California at 50% below normal for this time of year, “It’s a stark reminder of the devastating toll that the drought gripping the West will take on U.S. agriculture, bringing with it the risk of food inflation,” wrote Bloomberg journalist Elizabeth Elkin.
It’s a concern for the whole nation, as the Golden State’s 69,000 farms and ranches provide more than a third of all vegetables and two-thirds of all fruit in the U.S.
California Gov. Gavin Newsom has put 41 counties under a state of emergency in an attempt to drastically limit water use. State authorities have been forced to cut water allocations for farmers, too, sometimes to zero, while water transfers have been delayed and farmers are being prevented from pulling water out of their neighboring rivers.
As a result, a growing number of farmers are abandoning crops that require too much water, such as almonds. One grower, Fowler Brothers Farm in Snelling, California, tore up 600 acres of almond orchard to make room for crops that require less water, reported The Weather Channel.
Farm workers, too, are at risk from extreme heat, adding stress, dehydration, heat stroke and other heat-associated health risks to already grueling work, reported Bloomberg. U.S. farmworkers face a 35-fold risk of heat-related deaths compared to that of the general work force, Bloomberg, reported, and temperatures this summer are hitting triple digits in swaths of California and the West. According to researchers at Emory University, laborers on farms are often chronically dehydrated, even if they drink enough water during their workday, and worker’s body temperatures often rise above 100.4 degrees Fahrenheit, meaning they run a fever all day. The additional weather-related dangers farm workers face could add to labor shortages in an industry already struggling to attract employees.
Climate change is not just affecting crops in the United States – according to Bloomberg Green, Brazil, the world’s largest exporter of coffee, sugar, and orange juice, saw little rain during its rainy season and water reserves are running so low that farmers are concerned they may run out of water before harvest. In recent years, Bloomberg reported, drought has impacted wheat growers in Europe and livestock producers in Australia.
According to research led by Cornell University and published in April 2021 in the journal Nature Climate Change, “Despite important agricultural advancements to feed the world in the last 60 years...global farming productivity is 21% lower than it could have been without climate change. This is the equivalent of losing about seven years of farm productivity increases since the 1960s.” The UN Food and Agriculture Organization also warns that traditional food gathering techniques of indigenous communities throughout the world are under threat from accelerating climate change and economic pressures, reported Global Banking and Finance Review.
The drought and extreme weather come at a time when the world is already experiencing the highest grocery costs in a decade, global hunger is on the rise, and countries are still reeling from the economic and health-related shocks of the COVID-19 pandemic. And, as drought begets drought, in an early warning sign of rising food costs, avocados cost about 10% more than last year, Bloomberg reported. “That could mean that prices for nuts and even products like almond milk could increase down the road if harvests continue to be constrained,” said writer Elizabeth Elkin.
The issue is large enough that comedian Bill Maher, host of HBO’s Real Time, said on a recent episode, “The Bay Area was just placed under a water shortage emergency with mandatory restrictions. Except, here's the thing, there isn't – even with the drought – really a shortage problem. It's more a, 'where the water is going' problem. California agriculture accounts for 80% of our water use, even though California agriculture is less than 2% of our economy," said Maher.
"We actually have enough water, we give away too much of it to farmers who get their water subsidized by the government because we still act like it's 1890 and farmers are small and independent when they're really mostly part of Big Ag," he added.
Join Chris Kilham on Compass Coffee Talk, July 14, 2021, 11:30am EDT
The Medicine Hunter: In Search of Sacred Plants
Chris Kilham, A Modern Day ‘Indiana Jones’, Author, Yogi, and Educator to Discuss the Power of Healing Botanicals and How the Natural Products Industry can Bridge Cultures Together on the Next Compass Coffee Talk
WEDNESDAY, JULY 14, 11:30 AM - NOON EDT
ZOOM, ADMISSION IS FREE
Chris Kilham
Take an epic virtual adventure deep into the jungle on the next Compass Coffee Talk on Wednesday, July 14, 2021, and hear from internationally acclaimed author, speaker, and educator Chris Kilham, Founder of Medicine Hunter, Inc. Regarded by the New York Times as “part David Attenborough, part Indiana Jones,” Chris Kilham will share with Compass Coffee Talk listeners his stories about discovering the healing power of botanicals and their potential in benefitting products and supplements in the natural products industry.
In his work, Kilham has traveled nearly 4 million miles and has roamed the globe visiting unknown wild places in rainforests, mountains, and deserts. He has fire-walked in the South Pacific, been made a chief, enjoyed a diplomatic post for three years, made best friends with a prince, dined with prime ministers, and embarked on ceremonial journeys with shamans. Kilham’s mission as the Medicine Hunter is to promote and preserve natural, plant-based medicines, to protect the natural environment, and to support indigenous cultures.
About Chris Kilham
Chris Kilham is a medicine hunter, author, educator, and yogi. The founder of Medicine Hunter Inc., Chris, has conducted medicinal plant research and sustainable botanical sourcing in over 45 countries. Chris works with companies to develop and popularize traditional plant-based food and medicinal products into market successes. These include ashwagandha, kava, Maca, Rhodiola, Schisandra, tamanu oil, cat's claw, dragon's blood, ayahuasca, and hundreds of other plants. Chris also works to bridge worlds, regularly sharing information about other cultures through presentations and media.
Chris has appeared on over 1,500 radio programs and more than 500 TV programs worldwide. As a TV correspondent and guest, he speaks about medicine hunting, traditional botanical medicines, nutraceuticals, psychoactive plants, environmental and cultural preservation, and other related topics for a broad and diverse audience.
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
Hemp Industry to Congress and FDA: “Regulate CBD Now”
This article originally appeared on LetsTalkHemp.com
By Steven Hoffman
The U.S. Hemp Roundtable (USHR) at a press conference on June 18 in Denver called on members of Congress in Colorado and in states across the country to support national legislation that would call on the FDA to regulate CBD like any other dietary supplement.
With approximately 100 people in attendance in person and online via Zoom at its Spring 2021 membership meeting held at the Denver History Museum, USHR underscored its lobbying efforts by announcing the launch of Regulate CBD Now, an online campaign to encourage citizens to contact their representatives about important legislation impacting consumer access to hemp and CBD products in the U.S.
Members of the U.S. Hemp Roundtable announced on June 18 the launch of “Regulate CBD Now,” an online campaign to encourage passage of national legislation allowing access to CBD in dietary supplements and food and beverage products. Photo: Let’s Talk Hemp
According to USHR General Counsel Jonathan Miller, the hemp industry is focused on two bills that Congress is currently considering – H.R. 841 in the U.S. House of Representatives, and S. 1698 in the U.S. Senate – that would call on the U.S. Food and Drug Administration (FDA) to regulate CBD as a dietary supplement or as a food additive. “To have CBD regulated like dietary supplements would be a game changer for the hemp-derived CBD industry,” Miller told Let’s Talk Hemp.
According to a statement by USHR, while the FDA has recognized the significant public interest in CBD, the agency has not yet established a legal pathway for its sale.
“We wanted to raise awareness of this important legislation by hosting our Spring meeting in Colorado, an epicenter of the hemp industry,” said Miller. “We’re grateful to Colorado Representative Ed Perlmutter for co-sponsoring H.R. 841, and we hope that Congresswoman Diana DeGette (D-CO) will co-sponsor H.R. 841, as she serves on the committee of jurisdiction, Energy and Commerce. Also, we hope Senators Hickenlooper and Bennett will support the Senate bill, S. 1698.” Miller noted that in addition to allowing CBD to be regulated like dietary supplements, the Senate bill also calls for CBD to be permitted as an ingredient in food and beverage products.
“Colorado is a hemp state. We need Colorado’s elected officials to stand up and support legislation that gives consumers confidence in our products, protects small businesses and farmers, and allows this new industry to thrive,” said Steve Smith, co-founder of Pet Releaf, a family-owned company based in Littleton, CO. Smith noted that Colorado is home to many hemp and CBD companies. However, regulatory uncertainty has started to dismantle this up-and coming market, he said.
“The only way we’re going to see a regulated CBD market is if everyday citizens make their voices heard,” Miller emphasized. “Taken together, these two bills are a huge step forward in creating more certainty for farmers, greater protections for consumers, and more economic opportunity for…hemp companies,” he said.
About the Bills
H.R. 841 – Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2021
Introduced by Rep. Kurt Schrader (D-OR), H.R. 841 allows the use of hemp, cannabidiol (CBD) derived from hemp, or any other ingredient derived from hemp in a dietary supplement, provided that the supplement meets other applicable requirements. Currently, FDA's position is that CBD products may not be sold as dietary supplements. (Source: congress.gov.)
S. 1698 – Hemp Access and Consumer Safety Act
Introduced by Sen. Ron Wyden (D-OR), S. 1698 would allow hemp-derived cannabidiol and hemp-derived cannabidiol containing substances in dietary supplements and food and beverage products. (Source: congress.gov).
“Regulate CBD Now” Endorsed by Leading Consumer Products Associations
The U.S. Hemp Roundtable is a national advocacy organization comprising a coalition of dozens of leading companies and organizations committed to safe hemp and CBD products. USHR works in partnership with national, regional and state organizations, and helps lead the way forward for hemp and CBD products through education and action.
In addition to USHR, the Regulate CBD Now campaign is supported by organizations including the Alliance for Natural Health, American Herbal Products Association, Citizens for Health, Consumer Healthcare Products Association, Council for Responsible Nutrition, Friends of Hemp, Hemp Alliance of Tennessee, Hemp Industries Association, Midwest Hemp Council, National Grocers Association, Texas Hemp Coalition, United Natural Products Alliance, U.S. Hemp Authority, U.S. Hemp Building Association, Vote Hemp, We Are for Better Alternatives (WAFBA), and the Wisconsin Hemp Alliance.
For more information, visit www.regulateCBDnow.com and www.hempsupporter.com.
Supporting the Juneteenth Holiday, and Diversity and Inclusion in Hemp
In addition to covering a lengthy agenda, members of the U.S. Hemp Roundtable also wrapped up their Spring meeting by honoring Juneteenth – the new national holiday celebrating emancipation from slavery in the United States – with a number of USHR members volunteering to work at the Juneteenth Music Festival on June 19 in downtown Denver. The volunteer opportunity was organized by USHR’s Minority Empowerment Committee (MEC) to advance the association’s efforts to achieve equity, including, diversity and inclusion in the industry hemp and CBD industries.
U.S. Hemp Roundtable members volunteered to work at the Juneteenth Music Festival on June 19 in Denver, CO – Photo: U.S. Hemp Roundtable Facebook Page
One Step Closer™ Fosters Justice, Equity, Diversity, and Inclusion in the Natural Products Industry, Announces New Leaders to Guide its J.E.D.I. Collaborative
Mission-driven Non-profit Adds New Board Members, Rebrands Itself, and Inspires Companies to Drive Positive Change through Compostable Packaging, Climate Reform, and Social Justice
Oakland, CA (June 3, 2021) – One Step Closer™ (OSC), a mission-driven natural products industry organization, is pleased to announce that visionary leaders José Corona and Konda Mason have joined the nonprofit's board of directors. In addition, Cynthia Billops has been hired as OSC’s Vice President of Operations, Membership & Belonging, and will guide the organization’s Justice, Equity, Diversity, and Inclusion project known as the J.E.D.I. Collaborative.
Formerly known as ‘One Step Closer to an Organic Sustainability Community (OSC2)’, the organization rebranded to its current name as ‘One Step Closer.' OSC envisions a society that collectively brings people One Step Closer to manifesting a shared vision for a just and prosperous world. Together members and partners meet to drive change focusing on OSC’s three core competencies: zero-waste packaging, reversing climate change, and embracing justice, equity, diversity and inclusion. .
Lara Dickinson, Co-founder and Executive Director states, “At One Step Closer, we aim to model what we seek to inspire in natural Products. An important step for us is embracing the leadership of those who have been historically excluded. We are fortunate that Konda and José have joined the OSC Board and Cynthia is now a part of our executive team. Through their extensive experience, authentic approach to leadership, and advocacy, we will increase our capacity in our core competencies.”
New Board Members
Joining the OSC Board is José Corona, Vice President of Programs & Partnerships, Eat. Learn. Play. Foundation. José is a social entrepreneur who has built a reputation as an innovator and relationship-builder.
“I am humbled and honored to join the OSC Board, whose members and efforts align with my values and allows me to continue walking my path in life,” said Corona. “My path and mission in life has been dedicated to ensuring all people have the opportunity they need to fulfill their life mission and goals.”
Konda Mason is also new to the OSC Board of Directors. She is the Co-founder and President of Jubilee Justice, Inc, a non-profit working to bring climate-resilient farming and economic equity to Black farmers in the rural South to restore and accelerate Black land ownership and stewardship and create thriving Black farming communities.
“Leveraging the incredible companies in its network, OSC is wisely guiding them to an even better version of themselves with the J.E.D.I. initiative. The work of OSC and their commitment to racial justice in the natural food sector made my joining this Board a no-brainer,” said Mason. “Plus, I get to hang out and learn from some really cool and experienced entrepreneurs.”
Membership Details
The OSC member community is comprised of leaders in the natural products industry who maintain the highest sustainability standards in business and personal lives. For more information about our Core Chapter, Rising Star Chapter, and Cannabis Chapter memberships visit, osc2.org/join-osc/. To make JEDI commitments, go to jedicollaborative.com/make-commitment/.
About José Corona, Vice President, Programs and Partnership, Eat. Learn. Play. Foundation
As Vice President of Programs & Partnerships, José leads all grantmaking, partnership, and programmatic efforts for Stephen and Ayesha Curry's Eat. Learn. Play. Foundation – a new foundation the Curry’s launched in 2019 that is becoming one of the country’s most innovative and impactful philanthropic organizations through its commitment to creating equal opportunities and bright futures for every child.
In 2020, José served as the Co-chair of the City of Oakland Economic Recovery Advisory Council, charged to safely open businesses in Oakland during the COVID-19 pandemic. In addition, José is an Aspen Fellow and serves on the Boards of Northern California Grantmakers, The Unity Council, and the Oakland Museum of California.
About Konda Mason, Co-founder and President of Jubilee Justice, Inc
Konda is a social entrepreneur, financial activist, earth and social justice activist, and mindfulness teacher. She is also the Co-founder and VP of Potlikker Capital, a charitable loan fund specifically designed to deploy integrated capital to Black American farmers.
Konda is Co-Founder and founding CEO of Impact Hub Oakland (newly renamed Emerge Oakland), an award-winning co-working space that supports socially engaged entrepreneurs and changemakers. In addition, she is the Strategic Director of RUNWAY, a micro-lending fund for African American entrepreneurs, and the co-founder of the annual COCAP (Community Capital) conference in Oakland, focusing on closing the racial wealth gap restorative economics, and the next economy just transition.
Konda is on the Board of Directors of The Historic Clayborn Temple in Memphis, TN, On Being with Krista Tippett, One Generation with Paul Hawken, and Lion’s Roar Magazine.
About Cynthia Billops, OSC & J.E.D.I VP Operations, Membership & Belonging
Cynthia is a business strategy and operations expert who has spent the last few decades planning, designing and launching complex IT, Web, and SaaS services. She earned her Doctorate in Educational Leadership from Mills college – focusing on small group interactions and the importance of each individual’s contribution to optimal success.
Her unique understanding of the challenges (and opportunities) faced by developing organizations combined with her determination to ensure open doors and “on-ramps to opportunity” for persons living in and coming from systemically marginalized communities; helps collaboratively create systems and processes that lead to sustainable growth, better staff retention and higher profits due to optimization and efficiency gains.
About One Step Closer (OSC)
One Step Closer (OSC) is a non-profit community-based organization centered in the natural products industry. OSC was founded in 2012 to build regenerative businesses and tackle some of the toughest challenges facing our industry and planet. With a carefully cultivated membership of 50 mission-driven companies, OSC has three leadership chapters: Core Chapter, Rising Star Chapter, and Cannabis Chapter. In addition to regular chapter meetings, OSC hosts industry-wide programming and member-focused continued education programming through OSC University. OSC has launched three industry-wide projects with a network of partners: Compostable Packaging Collaborative, the Climate Collaborative, and J.E.D.I Collaborative. For more information, please visit osc2.org and www.J.E.D.I Collaborative.com.
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Pepsico Announces Goal to Expand Regenerative Farming Practices on 7 Million Acres by 2030
This article originally appeared in Presence Marketing’s June 2021 Newsletter
Pepsico announced in late April that the company is launching an ambitious, impact-driven “Positive Agriculture” strategy with the goal of spreading regenerative agriculture practices across 7 million acres of farmland by 2030, which the company says is approximately equal to its entire agricultural footprint.
“Any plan to tackle the urgent challenges facing the global food system must address agriculture, the source of nourishment for billions and a key lever to address climate change and inequality,” said PepsiCo Chairman and CEO Ramon Laguarta.
Pepsico estimates the initiative will eliminate at least 3 million tons of greenhouse gas emissions (GHG) by the end of the decade. Additional 2030 goals within its Positive Agriculture agenda include improving the livelihoods of more than 250,000 people in its agricultural supply chain, and sustainably sourcing 100% of its key ingredients, the company said.
“One big part of Positive Agriculture is extending regenerative farming practices — a set of techniques that improve and restore ecosystems with a focus on building soil health and fertility, reducing carbon emissions, enhancing watershed management, increasing biodiversity and improving farmer livelihoods. Partnering with farmers, PepsiCo will spread the adoption of these practices across 7 million acres, approximately equal to the company’s entire agricultural footprint. The growers behind products like Lay’s potato chips, Quaker oats and Tropicana orange juice will be driving forces,” the company said.
“Today, we're accelerating our Positive Agriculture agenda, because we know we have to do even more to create truly systemic change,” said Jim Andrew, PepsiCo’s Chief Sustainability Officer. “By focusing on regenerative agriculture practices at the local level to build soil health, we can build a stronger foundation for our products and help make the entire food system more sustainable.”
ePallet Offers Innovative Online Platform for Wholesale Buyers
This article originally appeared in Presence Marketing’s June 2021 Newsletter
Utilizing a proprietary, artificial intelligence (AI)-driven, web-based platform, ePallet is disrupting the traditional wholesale business model by providing customers with user friendly, direct access to what it claims is a more efficient and cost-effective way to buy and sell food and consumables in full-pallet increments.
Think of it perhaps as the “Amazon for wholesale buyers,” serving foodservice operators in hospitality, restaurants, healthcare, corporate and institutional kitchens, K-12 schools, colleges and universities, retailers and grocers, manufacturers, and others — and helping businesses and organizations in North America secure their supply chain from a wider range of sources, said ePallet cofounder and CEO James Kwon.
Working under the slogan “True Wholesale,” ePallet’s business model provides a single-source platform for buyers to purchase affordable, quality food, grocery and foodservice products from a diverse range of trusted global and local brands, including a wide array of natural and organic products, with no hidden costs, said Kwon.
“ePallet offers an innovative approach that disrupts the traditional supply chain where layers of middlemen typically add markups of 10% to 40%,” Kwon noted. “With ePallet's machine-learning platform, customers benefit from real-time, net-net delivered pricing in full-pallet increments.” ePallet also offers wholesale customers the option to build mixed-pallet orders from vendors. The company is open to working with vendors, retailers and foodservice operators in the natural products channel. Visit www.ePallet.com.
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.