New Organic Bed & Bath Brand Seeks to Democratize Organic Via the QVC Network
Photo: Pexels
Originally Appeared in Presence Marketing News, October 2019
By Steven Hoffman
“ECOlifestyle” entrepreneur and author Marci Zaroff recently launched a new certified organic, luxury lifestyle brand, Farm to Home, on the popular QVC shopping television network. Consumers are demanding more transparency from the brands they buy and support—including food, beauty, clothing and home textiles, Zaroff said. With $8.8 billion in revenue in 2017, QVC is a powerhouse, reaching 370 million homes in the U.S., U.K., Germany, Austria, Japan, Italy, France, and through a joint venture in China. From fiber to finished product, Farm to Home adheres to the highest level of organic certification from the notable Global Organic Textile Standard (GOTS). According to the Organic Trade Association, the U.S. organic industry hit a record of $52.5 billion in sales overall in 2018, with organic non-food product sales up 10.6% to $4.6 billion in revenue. Industry data also shows that fiber accounted for 40% of the organic non-food market with sales of $1.8 billion in 2018, up from $1.6 billion in 2017. “We believe everyone should have the opportunity to #dwellorganically, which is why our mission is to democratize organic home goods, offering authenticity, accessibility and affordability," said Zaroff, Founder and CEO of Farm to Home. "I am overjoyed with the QVC partnership, as it provides an easy way for consumers to purchase a responsibly luxurious organic bed and bath collection at great prices. “Organic cotton textiles are not only key to promoting cleaner and healthier living, but are essential in protecting soil health, supporting climate change resilience and improving water retention—all while ensuring farmer and worker welfare," Zaroff added.
NPA Criticizes Senate for Excluding Funding for CBD Health Safety Evaluation
Photo: Pixabay
Originally Appeared in Presence Marketing News, October 2019
By Steven Hoffman
The Natural Products Association (NPA), based in Washington, DC, reported that the U.S. Senate Agriculture Appropriations Committee failed to include legislation passed earlier this summer in the House of Representatives that would have appropriated $100,000 for the FDA to perform a health hazard evaluation on CBD. The health hazard evaluation would have determined and set a safe use level for the consumption of CBD. This process has precedent, allowing FDA to exercise enforcement discretion on natural products that contain levels of an approved drug ingredient, most notably red yeast rice, reported Nutritional Outlook. The Senate agriculture committee only included language that instructed FDA to report back to them in 90 days, but otherwise, no meaningful progress was made in regulating CBD products, NPA said. “What we saw today was the U.S. Senate Agriculture Committee fail to include any meaningful legislative language that would force the FDA to do its job when it comes to CBD. Sadly, this approach will lead to nothing but problems. We are seeing that play out with the vaping crisis and we are desperately hoping to avoid that with CBD,” said Daniel Fabricant, PhD, president and CEO of NPA, in a statement. “This should have been an easy choice for the committee, they should have taken their lead from the U.S. House of Representatives where Congressman (Jerry) McNerney had already had an amendment pass that would actually protect American consumers. However, the fight is not over. We are continuing our work to ensure that the one in seven Americans that use a CBD product everyday have the ability to believe that the FDA is doing its job, and not taking the path of least resistance. We encourage everyone to tell their Congressman and Senators to set a safe level of daily consumption for CBD,” Fabricant said.
Protector to Provider: Colorado Hemp Honey Creates Buzz by Donating $10,000 to Boost Agriculture Programs for Veterans
In Addition to Helping Denver Non-Profit, Former U.S. Marine and Colorado Hemp Honey Founder/CEO Nick French also Appointed to Colorado Hemp Advancement and Management Plan Committee known as "CHAMP"
Parker, CO (October 15, 2019) – Frangiosa Farms, producer of popular Colorado Hemp Honey, is pleased to announce its commitment to help veterans nationwide transition from “Protector to Provider,” through the Denver-based non-profit Veterans to Farmers program. The mission of Veterans to Farmers trains vets and assists them in providing essential skills in agriculture, tech and business operations to help them lead a more fulfilling and sustainable lifestyle.
Nick French, a former U.S. Marine and Founder and CEO of award-winning Colorado Hemp Honey, has been involved with Veterans to Farmers since 2013. French relates to the non-profit’s mission in many ways both as a veteran and farmer. “I feel a solid connection to my brother and sister veterans, which is why I am donating 10 cents from every jar of Colorado Hemp Honey that we sell to the Veterans to Farmers program. We want to make a difference and help veterans earn college credits and valuable skills that lead to jobs,” says French.
Nick French, Founder & CEO, Colorado Hemp Honey
A farmer by trade, French grew up on a small farm in Northwestern Ohio where the primary crops were beans, corn, and wheat. After spending five years in the Marine Corps and many years overseas, French returned to the family farm nearly 12 years ago where he learned to become a beekeeper. Today, Nick manages upwards of 150 bee colonies on several rural farms south of Denver.
Earlier this fall, Frangiosa Farms donated $10,000 to Veterans to Farmers during the charity’s annual fundraiser held at the Denver Botanic Gardens at Chatfield Farms. “There are hundreds of veterans waiting to join our program. Thanks to Frangiosa Farms and Colorado Hemp Honey's support, their donation will go far and will train veterans in food and agriculture," said Rich Murphy, Executive Director of Veterans to Farmers. “We are grateful for Nick's dedication and commitment to our mission.”
“CHAMP” Appointee
Hemp is also something that Colorado Hemp Honey’s Founder and CEO Nick French is passionate about. Recently, he was selected to serve as a stakeholder with the Colorado Department of Agriculture’s initiative known as the Colorado Hemp Advancement and Management Plan or "CHAMP." With the passage in 2012 of marijuana legalization in Colorado, the hemp industry also got an early start in the state, and Colorado is now considered one of the country's epicenters of hemp agriculture, manufacturing, and production. To further that leadership position, CHAMP was created by Governor Polis for "Colorado to remain an innovative force in the promotion of this high-value agricultural commodity," according to the CHAMP website.
“It’s an honor to be appointed to CHAMP and serve as a resource on this committee. It is vital to expand hemp farming in our state and across the country," said Nick French. “CHAMP is a collaborative effort between farmers, commerce and the government. I am excited to lend my expertise as a hemp brand, entrepreneur – and veteran."
About Veterans to Farmers
Founded in 2009, Veterans to Farmers trains veterans to excel in agricultural systems, technologies, and business operations for a fulfilling and sustainable lifestyle. The Veterans to Farmers program provides a way for vets to recover, to learn, and to move forward by becoming providers, contributing to the solution of our food-insecure nation. Veterans to Farmers assist veterans in assimilating effectively, productively, and permanently into private citizenry through agricultural training and education. For more information or to donate, visit: www.veteranstofarmers.org
About Frangiosa Farms and Colorado Hemp Honey
Frangiosa Farms was founded in 2008 with the goal of creating local artisan neighborhood honey using organic practices. In 2015, Nick and Ali French created Colorado Hemp Honey using raw honey from the farm; full-spectrum, plant-based, non-isolate hemp extract; and organic essential oils. Frangiosa Farms helps save bees and veterans with its community outreach efforts, supports local farmers, and recently began growing industrial hemp. Colorado Hemp Honey has been featured in Food & Wine, Westword, and CNN, among others. Colorado Hemp Honey products are available in natural food pet and hemp/CBD retailers nationwide. Visit www.coloradohemphoney.com.
Media inquiries: Steve Hoffman, steve@compassnaturalmarketing.com, 303.807.1042
Wholesale inquiries: Dave Podesta, dave@frangiosafarms.com, 415.310.1659
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40% of Adults Have Tried CBD in States Where it Is Legal
Photo: Pixabay
Originally Appeared in Presence Marketing News, October 2019
By Steven Hoffman
Cannabidiol “isn’t just for a select few people,” claims market research firm The NPD Group. Nearly 20% of adults have tried CBD in states where it is legal, and almost half of them have used it recently, reported Darren Seifer, Executive Director, Industry Analyst for The NPD Group. This figure is expected to increase rapidly as CBD is appearing in snack foods and beverages, consumers are getting more comfortable with the idea and just as many people plan to try it as are currently using it, he says. “There is definitely interest on the part of consumers in CBD but its future in the mass market is dependent on legalization, which is now a patchwork of state legislation,” says Seifer. “Even with the complexities of legalization, consumer acceptance and adoption of CBD as a food and medicine is an important topic for food manufacturers to keep on their radar screens.” The Port Washington, NY-based market research firm said among those consumers using CBD, 40% of them are “seeking to better themselves with food and beverage choices…a stat that reflects the increasing use of food as medicine by consumers.”
Whole Foods Market Expands Topical CBD Products to 359 Locations in 30 States
Photo: Pexels
Originally Appeared in Presence Marketing News, October 2019
By Steven Hoffman
Concerned in the past that it might present itself as a “high profile target” to regulators, Whole Foods Market has moved slowly in carrying natural products made with full spectrum hemp extract and CBD. However, as market demand explodes for these products, Whole Foods is taking the plunge by increasing its offerings of topical CBD products. The leading natural and organic products retailer announced in September it is expanding distribution of topical CBD products, making them available in 359 Whole Foods Market locations in 30 states across the country. Whole Foods also announced it is adding exclusive CBD bath items from Pacha Soap Co. “Our shoppers have expressed a growing interest in CBD products,” said Jennifer Coleman, Global Senior Category Merchant for Whole Foods Market in a press release. “We’re thrilled to roll out topical CBD products in even more stores and to share new, exclusive items from our longstanding supplier partner Pacha Soap Co.” As of September 2019, Whole Foods Market now carries topical CBD products in 30 states including: Alabama, Arkansas*, Arizona*, California*, Colorado, District of Columbia, Georgia*, Illinois, Indiana, Kansas*, Kentucky, Maine, Maryland, Massachusetts, Michigan*, Mississippi, Missouri*, Nevada*, New Hampshire, New Jersey, New Mexico, Oklahoma*, Oregon, Pennsylvania*, South Carolina*, Tennessee, Texas*, Utah, Virginia* and Wisconsin.
As with all body care items sold at Whole Foods Market, the retailer says the new CBD products meet the grocer’s rigorous body care quality standards, which ban parabens, phthalates, triclosan and more than 100 other questionable ingredients used in conventional body care products. (* New distribution as of September 2019.)
Grocery Manufacturers Association Announces Name Change, Renewed Focus
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Originally Appeared in Presence Marketing News, October 2019
By Steven Hoffman
The Grocery Manufacturers Association (GMA), representing some of the world’s largest consumer packaged goods companies, on September 26 announced it will change its name to the Consumer Brands Association (CBA), effective January 2020. The new identity is part of a sweeping overhaul of the 110-year old trade organization, led by President and CEO Geoff Freeman and the GMA board of directors. “We represent an industry of iconic brands that are innovative, forward-looking and touch the lives of every American,” Freeman said. As the new Consumer Brands Association, we are making a game-changing shift to unite the totality of the consumer packaged goods (CPG) industry around a focused, proactive agenda that aligns with the values of the brands we represent and the consumers they serve.” In a statement GMA added, “This is about more than a new name or new logo. Our brand change reflects a sea change — we are a new organization, representing the totality of the consumer packaged goods industry and establishing a new presence in Washington and beyond. The transformation of our organization reflects today’s era of transparency and consumer-first thinking.” GMA says its new advocacy agenda represents the broader interests of a modern CPG company by focusing on four core pillars: enhancing packaging sustainability; championing smart regulation; creating frictionless supply chains; and building trust in CPG, while also advancing a narrative about the industry’s social and economic impact. GMA recently released the industry’s first-ever economic study, which found the CPG industry supports more than 20 million American jobs and contributes $2 trillion to the country’s GDP.
OSC2, former Rebbl CEO Sheryl O’Loughlin Partner to Promote Women and Diversity on Natural Products Boards
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Originally Appeared in Presence Marketing News, October 2019
By Steven Hoffman
According to natural products entrepreneur and investor Brad Barnhorn, of the nine different boards of directors on which he serves, there are a total of 50 board members and only one of them is a woman. He shared this as the only male panelist on the Women on Boards panel at Natural Products Expo East this past September in Baltimore. “Having more women sit on boards of organic and natural companies is not just the right thing to do, it is the smart thing to do, writes Max Goldberg in the Organic Insider. Based on a study conducted by financial research firm MSCI, U.S. companies with at least three women on the board experienced earnings growth of 37% over a five-year period, while companies that had no female board members experienced a -8% earnings drop in the same period, Goldberg reported. To address the issue, Northern California-based natural products leadership organization OSC2 has formed JEDI, the Justice, Equity, Diversity and Inclusion Collaborative. Co-founded by OSC2 Executive Director Lara Dickinson and Sheryl O’Loughlin, former CEO of natural beverage maker REBBL, JEDI released a 5-minute survey to collect benchmark data on the current diversity makeup of the natural and organic products industry. The goal, reports the Organic Insider, is to have 500 companies complete the survey by January 2020. JEDI hopes to report findings at Natural Products Expo West 2020, as well as establish and track goals.
U.S. Retail Sales of Herbal Supplements Grew 9.4% in 2018
Photo: Pexels
Originally Appeared in Presence Marketing News, October 2019
By Steven Hoffman
Driven by the growth of CBD, mushrooms and immune-enhancing products, sales of herbal supplements in the U.S. increased 9.4% in 2018, according to a new report published by the American Botanical Council (ABC) in collaboration with market research firm SPINS and Nutrition Business Journal. Consumers spent a total of $8.842 billion on herbal supplements across all market channels in 2018, an increase of approximately $757 million in sales over the previous year, marking the strongest year of U.S. sales growth of herbal supplements since 1998, according to the report, available for download here. In mainstream retail outlets, herbal supplements with horehound (Marrubium vulgare) listed as the primary ingredient, including natural cough drops and lozenges, grossed the highest sales in 2018. Goji berry (Lycium spp.) supplements, many of which are marketed for weight loss, experienced the strongest sales growth in this channel, with a 637% increase from 2017. Booming sales of products containing cannabidiol (CBD), a psychoactive but non-intoxicating constituent of Cannabis sativa, made it the top-selling ingredient with the highest percent sales growth (332.8%) in the 2018 natural channel, says ABC. “CBD and mushroom products dominated the 2018 herbal supplement scene, and sales growth remained strong for Ayurvedic herbs and adaptogens,” said Tyler Smith, Managing Editor of HerbalGram, who has co-authored the report since 2014. “There were also a few surprises in the data — sales of goji berry, for example, which had declined sharply in recent years, experienced a significant rebound in 2018,” he said. “This report strongly supports the continually rising consumer preference for natural, plant-based dietary supplements that can have a positive impact on their health,” said Mark Blumenthal, ABC founder and executive director, and editor-in-chief of HerbalGram. “For over 20 years we have been publishing information on the steady growth of the market for herbal dietary supplements in the United States; the market sales results demonstrate the confidence that consumers appear to have in herbal dietary supplements.”
SAFE Banking Act Clears House
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Originally Appeared in Let’s Talk Hemp Newsletter, October 2019
By Steven Hoffman
While the SAFE Banking Act has yet to pass in the U.S. Senate, last week’s convincing, bi-partisan 321 – 103 vote in favor of the bill by the U.S. House of Representatives has the hemp and cannabis industry feeling bullish that it may soon have access to full banking services.
Due to confusion over the legality of hemp, banks and credit card processors have been reluctant to provide services to “cannabusinesses,” and in some cases have cancelled banking and financial services for legitimate hemp businesses and related service companies, creating significant challenges for entrepreneurs, online retailers and established business alike. (See Let’s Talk Hemp article dated June 26, 2019: Hemp Harassment).
The Secure and Fair Enforcement (SAFE) Banking Act of 2019 (HR 1595), sponsored by Representatives Ed Perlmutter (D-CO) and Denny Heck (D-WA), and co-sponsored by Representatives Steve Stivers (R-OH) and Warren Davidson (R-OH), would allow marijuana-related businesses in states with some form of legalized marijuana and strict regulatory structures, as well as businesses selling hemp-derived products, to access the banking system. Today, according to Congressman Perlmutter, 47 states, four U.S. territories and the District of Colombia – representing 97.7% of the U.S. population – have legalized some form of recreational or medical cannabis, including CBD oil.
“Thousands of employees, businesses and communities across this country have been forced to deal in piles of cash because of the conflict between state and federal law. After six years of working on this bill, the SAFE Banking Act will go a long way in getting cash off our streets and providing certainty so financial institutions can work with cannabis businesses and employees,” Perlmutter said in a statement.
Under current law, financial institutions providing banking services to legitimate and licensed cannabis businesses under state laws are subject to criminal prosecution under several federal statutes such as “aiding and abetting” a federal crime and money laundering, Perlmutter explained. “Therefore, businesses which legally grow, market or sell cannabis in states that have legalized its sale are generally locked out of the banking system, making it difficult for them to maintain a checking account; access credit; accept credit and debit cards; meet payroll; or pay tax revenue. This has created a significant public safety risk, as these businesses are forced to operate as cash-only businesses in an industry with billions of dollars in transactions. These high-volume cash businesses are being targeted by violent criminals and putting our communities at risk,” the statement said.
“In response, the SAFE Banking Act seeks to harmonize federal and state law by prohibiting federal regulators from taking punitive measures against depository institutions that provide banking services to legitimate cannabis-related businesses and ancillary businesses (e.g. electricians, plumbers, landlords, etc.) that serve them. The bill establishes a safe harbor for any depository institution that chooses to provide banking services to a cannabis-related legitimate business which holds and maintains a license from a state or local government to engage in manufacturing, growing, or producing, as well as any business who handles, sells, transports, displays or distributes cannabis or cannabis products,” the statement added.
According to Perlmutter’s team, a U.S. Senate companion bill (S 1200) was introduced in April 2019 by Senators Cory Gardner (R-CO) and Jeff Merkley (D-OR). The Senate Banking Committee held a hearing on the issue in July, and Senate Banking Committee Chair Mike Crapo (R-ID) recently announced plans to take up cannabis banking legislation this fall.
“Given the strong bipartisanship of the House vote, coupled with Senate Banking Chairman Mike Crapo’s recent pledge to hold a markup on this issue, we believe that Congress’ appetite to resolve this important issue has never been greater,” NORML’s Political Director Justin Strekal was quoted as saying in the Hemp Gazette.
While cannabis includes both hemp and marijuana, the 2018 Farm Bill defined hemp as separate from marijuana, removing hemp from the Controlled Substances Act. While the National Credit Union Administration last month stated that federally insured credit unions can provide some financial services to hemp-related businesses, in general, hemp entrepreneurs have faced difficulties in accessing financial products and services such as credit card processing. The SAFE Banking Act has a specific section (Section 11) that reaffirms the legal status of hemp for bank regulators that should remove any remaining barriers, according to Hemp Gazette.
Speaking to Marijuana Moment about the House’s passage of the SAFE Banking Act, Michael Liszewski, Senior Regulatory Affairs Counsel with 4Front Ventures, said, “The fact that (the House vote) got nearly 100% of Dems and pretty close to 50% of Republican demonstrates how mainstream cannabis reform has come. The fact that so many Republicans supported it shows that it can be successful in the Senate.”
“Despite the Farm Bill legalizing hemp, many hemp businesses continue to struggle gaining access to financial services — an issue we know Majority Leader McConnell is working to address,” Perlmutter told Westword. “By clarifying protections for the hemp industry in the SAFE Banking Act, we hope to help these businesses and look forward to working with the Senate as they address this issue by taking up the SAFE Banking Act or as they work to develop and pass similar legislation.”
According to Westword, the bill would allow banks and financial institutions to serve hemp businesses and marijuana businesses in states where they are legal without risking federal prosecution, “marking a landmark step toward marijuana reform.”
Natural Products Sales Outpace Conventional
Photo: SPINS
Originally Appeared in Presence Marketing News, October 2019
By Steven Hoffman
If you look at the state of the natural and organic products industry, says market research leader SPINS, one of the primary takeaways is this: “The 5% sales growth rate for natural food and beverages over the year ending May 19, 2019, was nearly three times greater than for the overall food and beverage industry—continuing a now-longstanding trend,” reported New Hope Network. “Natural products have been outpacing their conventional counterparts for some time in terms of dollar growth,” said Jessica Hochman, SPINS senior manager of natural insights and innovation research and the lead author of the State of the Natural Industry report in a webinar presenting results from the study. According to SPINS, natural and organic products sales totaled $47.2 billion over the 12-month period and accounted for 10.5% of the overall $448.2 billion food and beverage market. In addition, natural products sales accounted for 29.3% of all food and beverage industry sales growth, says SPINS. In the convenience store channel, while natural products accounted for only 4.6% of total C-store sales, growth of these products over the one-year period was 12.6%, due to rising consumer demand for convenience and natural snacking. The data, presented as part of the Good Food insights series in collaboration with FamilyFarmed’s Good Food Accelerator and Naturally Chicago, Esca Bona and SPINS, will be highlighted on October 7 at Naturally Chicago’s Quarterly Keynote Event in Chicago. Presence Marketing / Dynamic Presence is a Sponsoring supporter of Naturally Chicago.