Steve Hoffman 6/18/18 Steve Hoffman 6/18/18

Organic Food Sales Top $49 Billion in 2017; Accounts for 5.5 Percent of Overall U.S. Food Sales

For Presence Marketing Newsletter, June 2018
By Steven Hoffman

When the Environmental Working Group reported in April 2018 that conventionally grown apples contain on average 4.4 toxic, synthetic pesticide residues, some at high concentrations that don’t wash off, more and more consumers are getting the clue that the old adage has changed: “It’s the organic apple a day that keeps the doctor away!”

So many consumers are buying into organic these days, in fact, that overall sales of organic foods will soon top $50 billion. According to the latest data released in May 2018 from the Organic Trade Association (OTA), sales of organic products totaled $49.4 billion in 2017, reflecting an increase of 6.4 percent and new sales of nearly $3.5 billion over the previous year.

Sales of organic foods grew the same – 6.4 percent – to $45.2 billion, and sales of organically produced non-food products increased 7.4 percent to $4.2 billion.

The growth rate for organic food sales was short of the 9 percent growth recorded in 2016, “impacted by markedly slowed growth in the big organic dairy and egg category,” said the OTA in a release. However, organic food sales were well above that of the overall food market, which barely grew at 1.1 percent. “Organic continued to increase its penetration into the total food market, and now accounts for 5.5 percent of the food sold in retail channels in the U.S.” OTA said.

This year’s annual survey marks the 20th year OTA has released data tracking the organic industry’s growth. Widely regarded as the most comprehensive look at the retail organic sector in America, the survey first measured organic sales in 1997. That year, organic food sales were pegged at $3.4 billion; 2017’s sales of over $45 billion reflect a growth of nearly 15 times. In the last decade alone, the U.S. organic market has more than doubled in size, reports OTA.

Fresh fruit and vegetables continued to be the largest organic food category, posting $16.5 billion in sales and 5.3 percent growth over 2016 sales. Another category standout was organic beverages, with fresh juices driving 10.5 percent growth to sales of $5.9 billion in 2017. Nonfood items grew significantly, including organic fashion and fiber, which grew 11 percent to $1.6 billion, and organic dietary supplements, the sales of which increased 9 percent in 2017.

“Organic has arrived. And everyone is paying attention,” said Laura Batcha, CEO and Executive Director of the Organic Trade Association. “Our survey shows there are now certified organic products in the marketplace representing all stages of the life cycle of a product or a company—from industry veterans to start-ups that are pioneering leading edge innovation and benefits and getting shelf space for the first time. Consumers love organic, and now we’re able to choose organic in practically every aisle in the store.”

Steven Hoffman is Managing Director of Compass Natural, providing brand marketing, PR, social media, and strategic business development services to natural, organic and sustainable products businesses. Contact steve@compassnaturalmarketing.com.

Steve Hoffman 6/11/18 Steve Hoffman 6/11/18

Whole Foods Market Delays GMO Labeling Deadline for Suppliers

For Presence Marketing Newsletter, June 2018
By Steven Hoffman

In an email sent to suppliers in May 2018 from Whole Foods Market President and COO A.C. Gallo, Global VP of Merchandising Don Clark and Global VP of Procurement for Perishables Karen Christensen, the world’s largest natural products retailer announced the company has decided to postpone the rollout of its GMO Labeling Policy.

The company’s leaders cited concerns from suppliers about complying with both Whole Foods Market’s upcoming policy deadline, originally set for Sept. 1, 2018, and the USDA’s proposed GMO labeling rules just introduced this past month, dubbed the federal Bioengineered Food Disclosure Standard, as the reason for the delay.

In 2013, Whole Foods announced it would require all food producers who wished to sell products in its stores to include labeling that discloses the presence of any GMO ingredients. Whole Foods had previously announced that it would require suppliers to label products that contain genetically modified (GMO) risk ingredients and were not third-party verified as non-GMO or organic.

“While the proposed [USDA] rule speaks to requirements for disclosing a bioengineered food, it is silent on requirements for making an on-label non-GMO claim,” the email said. “Given the uncertain details of the federal regulation, we do not expect the verification of non-GMO claims on existing branded products by the previously communicated September 1, 2018, deadline.” Whole Foods’ executives further stated, “Once there is a better understanding of the final federal regulation, we will be able to provide further updates and timelines.”

In a May 22, 2018, statement to Food & Wine Magazine clarifying its position, Whole Foods added, "As the USDA finalizes the Bioengineered Food Disclosure Standard and the food industry assesses the impact, we have decided to pause on our September 1, 2018, deadline for our GMO Labeling Policy. We remain committed to providing our customers with the level of transparency they want and expect from us and will continue to require suppliers to obtain third-party verification for non-GMO claims."

In a separate document, Whole Foods noted that it will continue to require suppliers in all categories to acquire third-party verification by a Whole Foods-approved program for “non-GMO” claims on their package labels. Approved vendors include The Non-GMO Project, NSF Non-GMO True North or the USDA Organic program, reported Project Nosh.

Steve Hoffman 6/1/18 Steve Hoffman 6/1/18

USDA’s Proposed “Bioengineered” Labels, featuring Nature and a Smiling Sun, Give Impression that GMOs are Healthy, Environmentally Friendly

For Presence Marketing Newsletter, June 2018
By Steven Hoffman

USDA in May issued a proposed rule to implement legislation requiring some form of GMO ingredient label disclosure on food packaging.

Officially named the National Bioengineered Food Disclosure Standard (NBFDS), the 106-page proposed rule provides definitions on what is considered a bioengineered ingredient, suggestions on how to disclose those ingredients and the scope of exemptions available under the law. For example, food products produced from an animal that ate GMO – or what USDA now refers to as “bioengineered” – feed do not require label disclosure. Food service establishments and very small food manufacturers are also exempt, reports legal firm Keller and Heckman. Foods certified under USDA's National Organic Program (NOP) also are not subject to GMO or “BE” disclosure.

Comments on the proposed rule are being accepted through July 3, 2018, and should be submitted as directed in the Federal Register document, published on May 4, 2018.

In addition, USDA’s Agriculture Marketing Service announced an informational webinar to provide an overview of the background, provisions and potential impacts of the proposed bioengineered food standard, available on AMS’s website.

**USDA’s proposed GMO or “Bioengineered (BE) symbols include scenes of nature and a smiling sun, intimating that GMOs are healthy and environmentally friendly.**

USDA’s proposed rule addresses federal legislation passed in 2016 to create a national GMO labeling standard in an effort to prevent individual states from passing their own GMO labeling regulations. As a result of the federal legislation, Vermont’s law to require mandatory labeling of genetically engineered ingredients, which took effect in 2016 for a brief period of time, was overturned in favor of the national law.

USDA’s proposed standard defines “bioengineered” food as food “(A) that contains genetic material that has been modified through in vitro recombinant deoxyribonucleic acid (DNA) techniques; and (B) for which the modification could not otherwise be obtained through conventional breeding or found in nature.”

According to organic industry observer Max Goldberg, publisher of Organic Insider, “This does not give us any clarity about whether GMO 2.0 technologies, such as gene-editing, synthetic biology and RNAi, will be covered under this rule. Second, a GMO-disclosure rule should make it clear and easy for consumers to know whether a food is genetically modified or not. The truth is that most people have no idea what ‘bioengineered’ means, and using this seldom-used, scientific term is confusing to consumers. Even the USDA itself was content to use the term ‘GMO labeling’ on its own website up until a few months ago,” he said.

Foods that need to be labeled are broken down into two proposed lists:

Bioengineered foods commercially available in the U.S. "with a high adoption rate,” i.e., genetically modified varieties are planted or produced more than 85% of the time. This would include such foods as canola, corn, cotton, soybean and sugar beet, and can be labeled as "Bioengineered food” or “Contains a bioengineered food ingredient.”
Bioengineered foods commercially currently available in the U.S. "with a low adoption rate,” including such foods as apples (non browning), papayas, potatoes and squash (summer varieties). These can be labeled as “May be a bioengineered food,” “Contains a bioengineered food ingredient,” or “May contain a bioengineered food ingredient.”

According to Goldberg, companies will have three options to disclose the presence of bioengineered foods: text, symbol or QR codes. However, he says, QR codes are inherently discriminatory since nearly 100 million Americans do not own a smartphone. Plus, USDA’s proposed bioengineered symbols, “which are supposed to be neutral, give off the impression that bioengineered foods are healthy,” he says.

Additionally, Goldberg warns, under the proposed rule, “Organic foods can be labeled as ‘Non-GMO’ or ‘Not BE.’ This is very problematic and poses an enormous risk for organic. While genetic modification is prohibited in organic production, this does not mean that organic foods are free from GMO contamination.”

Comments Talking Points
Comments on the proposed GMO labeling rule are being accepted through July 3, 2018, and can be submitted via regulations.gov. Goldberg recommends including the following talking points among your comments:

The term "bioengineered" should not be used. It is both misleading and confusing to consumers. "GMO", "GE" or "Genetic Engineering" should be used instead. These are terms consumers are familiar with and understand.
All forms of genetic engineering should be disclosed, including gene-editing, synthetic biology and RNAi.
All highly processed foods, such as genetically engineered oils, syrups and sugars, should not be excluded from labeling.
Any symbol that represents "bioengineered" should be neutral and not contain a smiley face or a sun, or a nature scene.

Steve Hoffman 5/16/18 Steve Hoffman 5/16/18

Empowering Women, One Chocolate Bar at a Time

FOR IMMEDIATE RELEASE

BIJA Chocolates' Social Mission of Disrupting Cycles of Poverty Featured on NBC's The Today Show

Bellingham, WA (May 16, 2018) – When Paul Newman and Ari Lee-Newman spent their honeymoon volunteering to distribute Vitamin A in remote villages in India in 2014 with the nonprofit group Vitamin Angels, they were struck by the joy and contentment they encountered, even among the most impoverished communities.

Realizing they wanted to build a business that supports such communities around the world, the couple left their jobs to launch BIJA Chocolates, a social enterprise that works directly with cacao farmers and women-owned bean-processing cooperatives throughout the equatorial belt to make high-quality, hand-crafted organic chocolate bars, pass along a greater share of profit to the producers, and ensure greater economic opportunities for families and communities.

In May, BIJA’s social mission – and its delicious chocolate bars – was recognized on national television by Whole Foods Market and NBC’s The Today Show. Selected among hundreds of manufacturers by Whole Foods’ “Local Program," BIJA was featured as part of The Today Show’s Small Business Week, sponsored by Whole Foods Market, as one of the most innovative small businesses in America that is creating significant impact through ethical sourcing and social entrepreneurship to elevate communities around the world.

BIJA has partnered with eight carefully selected women’s associations in the Dominican Republic and Peru and intends to support one or two women’s groups in each of the top 10 cacao-producing countries by 2025. BIJA – which means “the seed and source of life” in Sanskrit – not only ensures that the people who pour their hearts and souls into cacao production are fairly compensated, but also supports the women’s cooperatives and nearby farms in obtaining organic certification.

“We work to equalize the cacao industry, empowering women globally, and making one of the most complex, distinctively flavored bean-to-bar chocolates possible,” said Newman.

Investing in Women
“BIJA is more than chocolate, though it’s darn good chocolate,” added Lee-Newman. “BIJA grew out of a passion for people. We hold the belief that if you invest in women, they will reinvest in their families and communities. The intention to invest in women is very important for us, and in many of the countries where we work, women are under-represented.”

Chocolate is a $100 billion industry, but many cacao farmers earn less than $2 a day. Working directly with small-scale growers and women-owned cooperatives allows BIJA to pay farmers and processors 25% more than traditional fair-trade prices. Also, BIJA’s 24 x 25 Organic Certification Program helps women’s co-ops achieve organic certification so they can expand their domestic and export market opportunities and increase profitability. BIJA intends to fund organic certification for 24 women’s cooperatives across the globe by 2025.

“When we meet women we would like to work with, more often than not, they’re not certified organic,” Newman explained. “There’s a lot of entrapment in the industry because organic certification costs thousands, forcing growers and co-ops to join larger co-ops because they can’t afford that on their own. We help shepherd them through the conversion process and gift them the certification. It’s all about economic empowerment. There’s a human component to food that can get obscured in the supply chain. We are trying to help people make more conscious decisions.”

Both Paul and Ari believe raising awareness about the human cost of chocolate production and providing economic opportunities to women’s groups throughout the world will pave the way toward exploring the human story of chocolate and rewriting the way cacao is sourced to ensure the people who grow, harvest and process cacao are compensated fairly. Through its One Seed Foundation, BIJA will begin to work in 2019 to provide scholarships for women to learn the craft of bean-to-bar chocolate making in their own facilities.

Each BIJA Bar is the alchemy of hand-harvested beans transformed with European craftsmanship to create an incredibly complex bean-to-bar experience. BIJA’s handcrafted-quality chocolates contain only four ingredients or less and are 100 percent Certified Organic, soy-free, non-GMO and gluten-free. The dark chocolates are vegan. The bars come in nine flavors: Burnt Maple Crunch, Cherry Chia Crunch, Dark Chocolate Adventure, Espresso & Cacao Nibs, Himalayan Sea Salt, Pure Dark, Sea Salt Almond, Tart Citrus Incaberry, Toasted Coconut, and Wild Ginger & Cayenne.

About BIJA Chocolates
BIJA, named after the Sanskrit word meaning “the seed and source of life,” is a social enterprise founded by husband and wife Paul Newman and Ari Lee-Newman that seeks to empower women by working directly with producers and bringing higher wages to communities. By working directly with women-owned co-ops, we create real relationships with the women and pay them directly. This ensures greater economic opportunities to help their families and communities. Recently, BIJA was recognized by Whole Foods Market as one of the most innovative small businesses in America that creates impact through ethical sourcing and social entrepreneurship. Visit www.bijachocolates.com.

Contact
Paul Newman, BIJA Chocolates, paul@bijachocolates.com, tel 877.342.2452
Steven Hoffman, Compass Natural, 303.807.1042, steve@compassnaturalmarketing.com

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Steve Hoffman 4/27/18 Steve Hoffman 4/27/18

Worth the Retreat: One Week At Finca Luna Nueva

Perspective by Steven Hoffman, Compass Natural Marketing

Eco-resort and certified Biodynamic farm Finca Luna Nueva, situated at the base of 250,000 acres of pristine rainforest surrounding the Arenal Volcano in Costa Rica, provides visitors an ideal setting for corporate retreats, vacation, and reconnecting with the natural world.

San Isidro, Costa Rica (April 27, 2019) – Walking on a solo hike through the rainforest at Finca Luna Nueva, a magical, “rustic luxury” eco-resort and certified Biodynamic farm at the foot of the Children’s Eternal Rainforest near San Isidro, Costa Rica, listening to the primal scream of the Howler monkeys and the loud calls of the Oropendola birds in the tall trees above me, I am reminded of the innate intelligence of Mother Earth.

Of how everything is connected. The cycles of life, death, decay and rebirth and the abundance of nature – how it all works together to foster new life all around us. Nature is a community we are a part of, not just a commodity for us to selfishly exploit without any consideration for other life or the environment. All of this is clearly visible every which way you look in the lush rainforest surrounding the farm and resort.

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It can be seen in the tropical saplings growing quickly through the stumps of fallen trees that came before. In how the leaf cutter ants recycle organic matter and build soil fertility by harvesting bits of foliage throughout the jungle to feed a fungus they cultivate in their underground nests to farm their own food.

A delicate balance of natural resource and nutrient usage. Plants and animals taking advantage of a new niche when a giant tree falls, leaving a gap of light in the dense forest canopy that quickly fills in with eager new growth. The myriad, complex defense mechanisms the jungle’s living creatures create for survival. A mother three-toed sloth watching carefully as she begins to train her baby to fend for itself in a tree for a few moments before cradling it again in the comfort of her lap. How the tall Cecropia tree, with its dangling seed pods, draws different species of birds including colorful toucans at different times of day to eat and spread the tree’s seeds in the forest. How the tiny red poison dart frog has to eat certain species of ants that in turn have to eat certain species of plants in order for the frog to manufacture its particular brand of poison with which it defends itself.

You begin to see how it's all connected, and how life has evolved so that it's all dependent on each other and on the Earth itself. Mother Nature abhors a monoculture; that's evident in the cacophony of rich biodiversity represented at Finca Luna Nueva.

It’s all connected, and if you tug on one thread, like we humans are doing with the environment, there is a great risk that it all unravels.

*Three-toed sloth and baby, regular residents at Finca Luna Nueva in Costa Rica.*

A Vortex of Biodiversity

Finca Luna Nueva is located at the base of 250,000 acres of primary and secondary rainforest, with the still-active Arenal Volcano looming over all. One of its owners, and my host for the week, Tom Newmark, Co-founder of the Carbon Underground and former Co-owner of New Chapter Vitamins, explains it like this:

“Here we are in the very middle of Central America, at the nexus point of a narrow land bridge connecting the immense continents of North America and South America. In addition, we are at a central location with the Atlantic Ocean immediately to the east, and the Pacific Ocean

immediately to the west. It is a critical corridor of biodiversity. This ‘vortex’ has created one of the most biodiverse regions in one of the most biodiverse countries on the planet – and Finca Luna Nueva, with its 224 acres of rainforest and regenerative “food forest,” is smack dab in the middle of all that. We’ve been told this is one of the most biodiverse farms on the planet!”

"Rustic Luxury" Retreat Center

I came to Finca Luna Nueva as the guest of Tom and his wife Terry Newmark, and Co-founder and farm manager Steven Farrell, as Compass Natural has the great fortune of helping with marketing and PR for this incredible place. The resort’s mission is to raise awareness of environmental issues and regenerative and Biodynamic agriculture, and provide a memorable corporate retreat and conference center for mission-based companies and organizations in natural, organic, regenerative and related products and services.

With its open air meeting center, a soon to be completed poolside restaurant and bar constructed with bamboo and other natural building materials, spa, hot tub, rooms and individual cabins, organic food grown on the farm and served in its restaurant – and an amazingly kind, courteous and muy amable staff – I highly recommend Finca Luna Nueva to reconnect with your company’s mission, your people, Mother Nature ... and yourself.

Natural Building Highlighted

An unexpected highlight of my trip was arriving at Finca Luna Nueva right at the start of a natural building workshop that was being conducted on the farm by Dome Gaia, an organization founded by Hajjar Gibran, grand nephew of late author and poet Kahlil Gibran.

Screen Shot 2018-04-27 at 8.38.50 AM.png

Led by instructors Rafael “Rafa” Bravo and Gabriel De La Cruz, the workshop attracted nearly 30 people from all over the world to learn to build affordable, sustainable dome buildings made from “AirCrete.” Made with cement and the foam of dish detergent (the instructors specifically use Seventh Generation dish detergent, due to its particular formulation!), the lightweight AirCrete blocks are meant to help people the world over to build low-cost, eco-friendly dome buildings and homes. The group embraced me warmly into the fold and I witnessed and photographed the dome getting built in just 10 days. You never know when you’re going to learn something new ... and meet great people!

My journey to Finca Luna Nueva was a meaningful one for me, as it marked the 40th anniversary of my first entering the Peace Corps in 1978 at the age of 22 and a return to this rich Central American country. While I was eventually assigned to serve in Honduras, I lived for three months with a wonderful Costa Rican family while receiving immersive training in tropical agriculture and Spanish language and culture at the Peace Corps’ training center in La Guacima Alajuela, near the capital of San Jose.

Natural building, natural food, natural world. Thank you, Tom, Terry, Steven and everyone at Finca Luna Nueva. While I’ve returned to my home in beautiful Boulder, CO, a piece of mi corazón will always remain in Costa Rica, and, “si Dios quiere,” I look forward to a return visit to my beloved Finca Luna Nueva. As the Costa Ricans say, Pura Vida, everyone!

Corporate Retreats Available

If you’re interested in exploring corporate and organizational meetings, workshops and retreats at Finca Luna Nueva, contact us at Compass Natural and we’ll be pleased to share more information and connect you with the very professional team at Finca Luna Nueva. Our associate Evan Tompros will be pleased to be of assistance. Contact evan@compassnaturalmarketing.com.

Resources
Finca Luna Nueva
Brave Earth
Dome Gaia
Ecological Building Network
Tom Newmark’s vanilla blog

From left: Terry and Tom Newmark, co-owners of Finca Luna Nueva.

Photos by Steven Hoffman

Steve Hoffman 4/25/18 Steve Hoffman 4/25/18

Whole Foods Market Recognizes Lotus Foods for Environmental Stewardship through Innovative More Crop Per DropTM Rice Growing Practices

FOR IMMEDIATE RELEASE

Richmond, CA (April 25, 2018) – Lotus Foods, the leading heirloom rice and ramen company focusing on sustainable rice production, was recognized by Whole Foods Market at their sixth annual Supplier of the Year Awards dinner April 18, with an award for Environmental Stewardship. Each year Whole Foods Market spotlights producers that exemplify the company’s mission and core values through their commitment to quality, environmental stewardship, ethical sourcing, and culinary innovation. The national and local suppliers are selected from thousands of driven, passionate, mission-based brands at Whole Foods Market. This year a total of only 27 perishable and non-perishable suppliers were recognized with just two highlighted for their environmental stewardship.

According to Dan Epley, who leads WFM Global Grocery Team, Lotus Foods was recognized for implementing the ‘More Crop Per Drop™' system, allowing farmers to dramatically increase yields while decreasing water consumption, seed use and methane gas emissions. “Lotus Foods’ B Corp certification is a testament to their commitment to serve as a force for good, specifically through small-scale farmer partnerships and environmental responsibility,” he added.

More Crop Per Drop™ is how Lotus Foods refers to the System of Rice Intensification, an agroecological method that enables lowest-income farmers to produce higher yields of rice with 20-50% less water, 80-90% fewer seeds, no agrochemicals, 40% less methane emissions, and less work and health hazards for women. In a radical departure from conventional rice production, paddies are no longer kept continuously flooded saving enormous amounts of water and reducing methane emissions. Flooded rice paddies are a major source of global warming, producing up to 20% of manmade methane, which is 30X more warming than CO2 over a 100-year period. Paul Hawken’s recent book, Drawdown: The Most Comprehensive Plan Ever to Reverse Global Warming, counts SRI as one of 100 solutions that can reverse global warming if scaled.

“We couldn’t be more thrilled and pleased,” Lotus Foods Co-Founder/Co-CEO Caryl Levine said in response to the award. “SRI is truly transformative. It’s not just about mitigating global warming but helping farm families adapt right now to increasing uncertainties in weather and diminishing availability of water. Whole Foods has been a very important partner in our journey to create market channels for these pioneering farmers and helping us share our message with US consumers and we are so grateful.”

Since 1995, Lotus Foods has partnered in direct and fair trade with small family farmers around the world who are growing rice more sustainably while preserving rice biodiversity. Lotus Foods’ product line includes pigmented heirloom and organic rice varieties such as Forbidden® Rice, Jade Pearl RiceTM, Red Rice, Madagascar Pink RiceTM & Volcano RiceTMas well as Rice Ramen, Arare Rice Crackers and now Basmati and Jasmine Rice along with Pad Thai Rice Noodles and Rice Delights. Products are available at major retailers throughout the US and Canada including Whole Foods, Costco, Wegmans, Target and Amazon.com. As a B-Corporation, Lotus Foods is committed to Changing How Rice is Grown Around the World by focusing on rice grown through the System of Rice Intensification (SRI), what we call More Crop Per DropTM, that minimizes water usage, empowers women, financially rewards farmers and reduces climate impact. Visit www.lotusfoods.com to learn more.

Contact
Liz Kaplan, Lotus Foods, tel 510.725.2913, liz@lotusfoods.com

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Steve Hoffman 3/23/18 Steve Hoffman 3/23/18

CBD Products Next Big Thing at Expo West

For Presence Marketing Newsletter, April 2018
By Steven Hoffman

Despite an uncertain regulatory environment, products containing agricultural hemp extract rich in CBD, or cannabinoid compounds, were featured throughout the exhibit halls at Natural Products Expo West, appearing in botanical supplements, body care products, in foods – and in new product offerings from leading national brands.

In addition, if you came late to Expo West’s first-ever CBD Summit, a half-day workshop held the day before the exhibit halls opened, you were out of luck. Attendance was standing room only and people were listening from outside the door.

“This is the hottest product in the history of natural products, and there’s an opportunity for retailers to really sink their teeth into this whole hemp category,” Josh Hendrix, director of business development for Las Vegas-based extract company CV Sciences Inc., told the approximately 500 people attending the CBD summit.

Josh’s statement may be an exaggeration, however, industrial hemp sales totaled $688 million in 2016, according to Hemp Business Journal, and are projected to grow to nearly $2 billion in sales by 2020, led by hemp food, textiles, body care, and CBD products. Independent natural products retailers are leading that growth, with sales of CBD consumer products up over 1,700%, according to 2017 SPINS data. Sales of CBD products in the U.S. are projected to reach $646 million by 2022, according to Hemp Business Journal, with 28 percent of those sales occurring in the natural and specialty channel.

In addition, nearly three-dozen states have passed legislation in recent years allowing research or commercial production of agricultural or industrial hemp, the non-psychoactive cousin to marijuana.

Bodycare brand leaders ShiKai and Andalou Naturals were among exhibitors introducing CBD products at Natural Products Expo West.

“It’s like anything that’s innovative and on-trend and disruptive — it tends to start in health foods stores, whether it’s pomegranate or plant protein or almond milk or CBD,” Todd Runestad, Ingredients and Supplements Editor for New Hope Network, told Alicia Wallace of the Cannabist in response to the sold-out CBD Summit at Expo West.

Complicating sales of hemp-derived CBD products is the fact that the U.S. Drug Enforcement Administration (DEA) has taken the position that CBD is illegal. The DEA created confusion in December 2016 when it filed a rule notice for the creation of a Controlled Substances Code Number for “marihuana extracts.” As the rule was finalized a month later, it met opposition by the industrial hemp industry, which filed a petition in the 9th U.S. Circuit Court of Appeals. The hemp industry’s lawyers, citing a 2004 circuit court ruling on agricultural hemp and the 2014 Farm Bill, have asserted that the DEA made a scheduling action against hemp and hemp-derived extracts and created a rule that has resulted in illegal seizures of hemp products. The court is not expected to rule on that case until later this year, the Cannabist reported.

The DEA rule temporarily shook the confidence of retailers, manufacturers and Expo West organizers in CBD products, said Runestad. However, after the Hemp Industries Association’s case against the DEA in 2017 and last year’s decision by natural and specialty retailer Lucky’s Market to carry lines of hemp extracts nationwide, Expo West trade show officials allowed hemp-derived extracts to be exhibited at the show, he told the Cannabist.

“That opened the floodgates,” Runestad said.

Among two dozen hemp extract companies exhibiting at Expo West, including CV Sciences and Ananda Hemp, other hemp/CBD product highlights included the introduction of Weller Snacks, a Boulder-based startup launching the first snack food line infused with CBD-rich hemp extract; Colorado Hemp Honey, a CBD rich honey; ShiKai CBD creams and lotions; and a new line of Hemp Stem Cell personal care products from Andalou Naturals.

When the smoke clears in the regulatory arena, given the rapidly growing popularity of CBD products, we should soon see the introduction of CBD product offerings from other major dietary supplement and wellness brands, as well.

Learn about the world of agricultural and industrial hemp at the 5th Annual NoCo Hemp Expo, April 6-7, 2018, in Loveland, CO. Colorado has become an epicenter of the hemp industry, and NoCo5 will draw 5,000 – 7,000 visitors and feature nearly 150 exhibits, making it the world’s largest trade show dedicated to industrial hemp. Learn more: www.nocohempexpo.com.

Local Economies Benefit in Organic Agriculture “Hotspots”

While supporting local and organically grown has been on the rise, researchers at Penn State University set out to assess whether or not organic agriculture has a positive impact on local economies across the U.S.

Their findings, “Economic Impact of Organic Agriculture Hotspots in the U.S.,” published in the February 2018 issue of Renewable Agriculture and Food Systems by Cambridge University Press, concluded that organic agricultural hotspots, e.g., clusters of counties with positively correlated high numbers of organic operations, lead to lower county-level poverty rates and a higher median household income. The effect, say the study’s authors, appears to be specifically due to clusters of organic operations (whether farming/producing, processing, wholesaling, etc.), since the same effect is not seen with general agricultural hotspots. In other words, the researchers found that the countywide economic benefits are due to organic agriculture in particular, and not agriculture in general.

Organic Operations Hotspots: Red: Hotspot; Blue: Coldspot; Grey: Not Significant. Source: Economic Impact of Organic Agriculture Hotspots in the U.S., February 2018.

Using spatial statistics to identify hotspots across the U.S. of organic operations, the researchers compared economic indicators to general agricultural hotspots “to confirm that the benefits associated with organic production hotspots were, in fact, due to the organic component,” said the study’s authors, Julia Marasteanu and Edward Jaenicke of Pennsylvania State University’s Department of Agricultural Economics, Sociology and Education.

“Our results show that organic hotspot membership leads to a lower county-level poverty rate and a higher median household income. A similar result is not found when investigating the impact of general agriculture hotspots,” said the researchers.

“These results provide strong motivation for considering hotspots of organic handling operations, which refers to middlemen such as processors, wholesalers and brokers, and hotspots of organic production to be local economic development tools, and may be of interest to policymakers whose objective is to promote rural development,” the authors concluded.

“Our results may incentivize policymakers to specifically focus on organic development, rather than the more general development of agriculture, as a means to promote economic growth in rural areas, and may further point them in the direction of not only encouraging the presence of organic operations, but of fostering the development of clusters or hotspots of these operations,” they added.

Download a .pdf of the report here: https://www.researchgate.net/publication/323151836_Economic_impact_of_organic_agriculture_hotspots_in_the_United_States

General Mills is Transitioning 53 Square Miles of South Dakota Farmland to Organic

General Mills announced in early March it is converting 34,000 acres – more than 53 square miles – in central South Dakota to certified organic to supply the organic wheat it needs for its popular Annie’s Macaroni & Cheese line. The multinational food company is creating South Dakota’s largest organic crop farm to help ensure enough organic ingredients to meet the growing consumer demand for organic worldwide.

With only 1 percent of all U.S. farmland dedicated to certified organic production, this is a big deal, and part of a trend where food companies are taking a more direct interest in farming to help secure organic ingredient supplies as demand continues to exceed production. General Mills is partnering with Midwestern BioAg, a firm that helps conventional farmers transition to organic, to convert Gunsmoke Farms, a 34,000-acre wheat farm in Pierre, SD, in fertile lands near the Missouri River.

“The Gunsmoke project is an opportunity to use our scale to help convert large areas of acreage to organic as one of our tools to create a more stable supply chain. We also see it as a way to support our growing portfolio of organic businesses,” Beth Robertson-Martin, organic sourcing lead at General Mills, told The New Food Economy.

General Mills, the third largest producer of organic and natural foods, reported on March 21 that its natural and organic products portfolio was a bright spot amid otherwise disappointing third quarter results. General Mills reported net sales of $15.6 billion in FY2017. The company’s natural and organic brands include Annie’s, Cascadian Farm, Muir Glen, Food Should Taste Good, Immaculate Baking, Liberté, Mountain High, Good Natured Soup and EPIC Provisions. General Mills hopes to reach $1.5 billion in sales in 2020 for its natural and organic brands. Since 2005, General Mills’ natural and organic category has grown an average of 10 percent per year, reports Sustainable Food News.

Companies including Nature’s Path Foods, one of North America’s largest family held organic brands, and Pacific Foods also have invested in or purchased organic farmland in order to ensure supplies. Nature’s Path sources much of its organic grains including oats, wheat, heritage grains, hemp, legumes and flax from the Canadian Prairie and the U.S. Midwest, where in the past few years it has purchased thousands of acres of pristine organic farmland.

“We started growing [organic] butternut squash because of availability, Chuck Eggert, founder of Pacific Foods, told FoodNavigator-USA in 2016. “We’ve been doing this for almost 30 years, and back then, even if you wanted to do an organic product there [weren’t] enough supplies around. So we started growing our own and then we started encouraging others to do it.” Campbell Soup purchased Pacific Foods in 2017 for $700 million in cash.

“As an independent, family-run company, we have the freedom to put our money where our heart is, in support of sustainable agriculture – beyond just making organic products, Arran Stephens, co-founder and co-CEO of Nature’s Path, told FoodNavigator-USA. “We live by the mantra of ‘always leave the earth better than you found it.’”

Steve Hoffman 3/2/18 Steve Hoffman 3/2/18

Home Baking Gets an Upgrade

FOR IMMEDIATE RELEASE

Foodstirs™ Modern Baking to Debut Organic, One-Minute Mug Cakes and Organic Chewy Granola Oat Bar Baking Mixes at Expo West

Foodstirs, co-founded by actor turned entrepreneur Sarah Michelle Gellar, makes it ultra-convenient and affordable for the entire family to experience the warmth and taste of fresh home baking with the most sustainable ingredients; Visit Foodstirs at Natural Products Expo West, March 8-10, 2018, Anaheim, CA, Booth #N1118.

Santa Monica, CA (March 2, 2018) – Foodstirs™ Modern Baking, creator of USDA Certified Organic baking mixes that help families create meaningful experiences through modernized home baking, will offer show specials and product samples of two new product lines – Organic Minute Mug Cakes and Organic Chewy Granola Oat Bar Baking Mixes – at the 37thannual Natural Products Expo West, the world’s largest natural and organic products trade show in Anaheim, CA, on March 8-10, 2018.

“These two innovative Foodstirs lines represent a new paradigm in food, reflected in our ‘Clean Comfort Food’ platform – every Foodstirs product helps heal the planet and promote worker wellbeing while also delivering on convenience, affordability, and taste for a memorably indulgent experience,” said Galit Laibow, CEO and Co-founder of Foodstirs. “Consumers can feel deeply satisfied and fulfilled knowing that these products are checking all the boxes, with no tradeoffs.”

Foodstirs Organic Minute Mug Cakes, which will be featured in 8,000 Starbucks stores nationwide, are portable snacks that consumers can make at home – or anywhere – by simply adding water and microwaving for one minute. The cakes, made from heirloom, identity-preserved organic flour, Biodynamic® sugar and fair trade chocolate, are available in Molten Chocolate Chip, Celebration Confetti and Cinnamon Swirl Coffee Cake flavors in single pouches and a 4-pack that retails for $4.99 - $5.99.

A #Foodstirs, #Muglife, #Mugology social media campaign is engaging consumers and encouraging them to post and share “mug shots” of themselves customizing their cakes.

Bake Your Own Organic Chewy Granola Bars
With Foodstirs’ new Organic Chewy Granola Oat Bar Baking Mix line, which will be exclusive to Whole Foods Market nationally beginning April 2018, simply add water and oil to the mix and you are ready to bake 16 bars in 25 minutes that deliver 10g of Whole Grains per serving and amazing “from scratch taste.” The 14.7-oz. packages of dry mix come in Very Berry Chocolate Chip, Cinnamon Raisin and Chocolate Coconut flavors and retail for $4.99-$5.99 per bag.

“This is the first product to truly address the pain points that consumers have with ready-to-eat granola bars,” said Foodstirs COO and Co-founder Greg Fleishman. “Our solution provides superior value, clean regenerative ingredients, organic whole grain nutrition, and incredible homemade taste in just 25 minutes. Baking your own bars is an elevated experience the whole family will love.”

Purity with Purpose
All Foodstirs products are made following the company’s “Purity with Purpose” philosophy of providing delicious, easy-to-make comfort foods that are regenerative for the planet at an accessible price point. The company uses Biodynamic® and Fair Trade-certified ingredients sourced directly from growers and producers, including cocoa from small family farms in South America where workers are paid fair wages and safe working conditions.

“Foodstirs was created because we wanted an enduring way to connect with our children, and the best place for families to do that is in the kitchen – the heart of the home,” said Chief Creative Officer and Co-founder Sarah Michelle Gellar. "We love innovating and developing new recipes that everyone can enjoy. While our baking mixes are quick to make, the memories (and smells!) last a lifetime.”

Foodstirs Modern Organic Baking Mixes, including the new Organic Minute Mug Cakes, are available wherever natural and organic products are sold, including Whole Foods Market, King Soopers, Ralph’s, Sprouts, Kroger, Target, Starbucks, Amazon and others. Products also are available online at Foodstirs.com and Amazon.com. Foodstirs is available through leading distributors including UNFI and KeHE. For wholesale inquiries, contact sales@foodstirs.com. For more information and delicious recipe inspiration, please visit www.Foodstirs.com.

Visit Foodstirs at the 37th annual Natural Products Expo West. We'll be offering show specials and sampling our products Thursday - Saturday, March 8-10, 2018, in the Hot Products Pavilion in the new North Hall of the Anaheim Convention Center, Booth #N1118.

About Foodstirs™
Based in Santa Monica, CA, Foodstirs was co-founded by successful entrepreneurs Galit Laibow, Greg Fleishman and actress and author Sarah Michelle Gellar. Foodstirs is remaking the baking mix category with USDA Organic and Non-GMO Project Verified baking mixes that are superior on every level. The brand meticulously creates its recipes based on four core principles: ultra-sustainability, easy-to-make, affordably priced and incredibly delicious from-scratch taste. In addition to regenerative and direct-sourced ingredients, the brand uses organic identity-preserved unbleached heirloom flour, chemical-free dyes and no artificial preservatives and flavors. Our products are sold nationwide at retailers including Whole Foods Market, Sprouts, Target, Kroger, Safeway, Amazon and many more. For more information, please visit www.Foodstirs.com, like us on Facebook, or follow us on Instagram, Twitter or Pinterest.

Contact
Jami Kandel, Vision Public Relations, tel 212.631.5027, jami@visionpr.net

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Steve Hoffman 3/1/18 Steve Hoffman 3/1/18

Food Waste Goes Bananas

Worldwide, a staggering 50% of all food that is produced goes uneaten and wasted, and the world’s most popular fruit, the banana, is also the world’s most wasted fruit, says a new study conducted by Karlstad University in Sweden. In all, seven fruits and vegetables – bananas, apples, tomatoes, lettuce, sweet peppers, pears and grapes – represented nearly half of the total fresh produce waste measured.

While consumers are behind most of the waste, as it occurs after food is brought home, grocery stores, too, throw away huge amounts, especially bread, fresh fruit and vegetables. As such, the researchers directly measured the amount of waste in the produce sections of three major supermarkets in Sweden. They also extrapolated the climate impact and financial cost of the wastage.

Consumers throughout the world prefer to eat bananas fresh and raw, and customers generally prefer a firmer banana—either completely yellow or with a tinge of green, reports Modern Farmer, meaning that perfectly edible bananas that don’t meet these standards are continuously thrown away by supermarkets that can’t sell them. According to the Swedish study, the banana provides the most food waste in terms of weight and environmental impact.

The researchers also looked specifically at the economic value of supermarket waste—not just what’s thrown out in terms of sheer weight. In terms of money lost by the business due to food waste, the leading culprits are cut greens, which go bad quickly – specifically, lettuces and fresh herbs. Lettuce alone amounted to 17 percent of the costs of wasted fruit and vegetables, the researchers found.

The researchers suggest that a focus on these seven products can help reduce economic losses in supermarkets.

“Fruit, vegetables and bread are the biggest problem items regarding food waste in stores. These products are not so easy to redistribute because they have to get out to people while they are fresh,” Anne Marie Schrøder, chief spokeswoman for Matvett, a Norwegian nonprofit organization dedicated to reducing food waste, told ScienceNordic’s Norwegian partner forskning.no in response to the report. “Fortunately, efforts to reduce waste are in the interests of the environment and the stores. I am absolutely convinced it’s feasible to turn things around,” she added.

“There are three reasons for why we need to reduce food waste. It is not profitable for the grocery sector or for society. Nor is it environmentally or climate friendly. And we could feed the starving people of the world with the food wasted globally. All food has a value and a sensible utilization of the resources is essential,” Schrøder said.

Steve Hoffman 2/23/18 Steve Hoffman 2/23/18

Survey Says: 80 Percent of Shoppers Prefer Independent Stores to Online

Source: For Presence Marketing Newsletter, March 2018
Author: Steven Hoffman

Independent grocers remain well positioned to compete with larger chains and online grocery alternatives in today’s price sensitive retail environment, according to the 2018 National Grocery Shoppers Survey conducted by the National Grocers Association (NGA).

According to the survey published in February 2018, 64 percent of independent shoppers are very or extremely satisfied with their local supermarket, and 80 percent of shoppers prefer their local store to an online alternative. Additionally, independent grocers are strongly associated with friendly employees, quality meats and produce, and easy-to-navigate layout, NGA reported.

“There’s no doubt that the supermarket industry is rapidly changing, either because of the growth of e-commerce or the explosion of new formats, along with shifting consumer trends. However, independent grocers are nimble enough to quickly overcome obstacles and with strong ties to their communities, they know what consumers want and need,” said Peter Larkin, president and CEO of NGA in a release.

The National Survey of Grocery Shoppers was conducted online within the U.S. by The Harris Poll on behalf of NGA among 3,008 adults, 18 and over between November 13 and December 8, 2017, using a sample from The Harris Poll Panel who self identified themselves as independent shoppers. Additional analytics were derived from Nielsen’s panel-based Independent Grocer shopper database of 44,000 consumers. Loyal independent shoppers are those that spend 50% or more of their reported shopping at an independent grocery store.

“In today’s omni-channel retail environment, independent grocers maintain a unique and strong connection with their shoppers,” said Jeanne Danubio, EVP of Retail Lead Markets at Nielsen. “Complementing the findings of this year’s survey, Nielsen’s new independent buyer group panel data shows that a loyal independent grocery shopper spends more than 40% more in grocery than the average shopper. It will be critical for independent grocers to maintain the quality and personal connections that keep these valuable consumers coming back to the independent store,” Danubio added.

“While there has always been an element of whistling-past-the-graveyard reverence to industry pronouncements about independents, it will always be true that a strong, well-run, well-merchandised and technically savvy local operator can effectively compete with big chains and online giants. Supermarket chains and online merchants may seek to replicate personalization using their loyalty program data and algorithms, but independent grocers offer the real thing,” note the editors of Food Dive.

Among the survey’s key findings:

E-Commerce: Of those who shop for groceries online, 68 percent do it in addition to shopping in stores, with 75 percent of their purchases made at the store. NGA said convenience is the main impetus for shopping for groceries online, while the biggest obstacles to online grocery shopping are the consumers' need to see the actual physical items and their concerns about freshness. In addition, only 11 percent of those surveyed shop online, and they prefer home delivery to store pickup by a wide margin, 76 percent to 39 percent. Of products bought online, packaged food products are the most commonly purchased. General merchandise and health and beauty care items rank second, followed by cleaning products. Also, 27 percent of shoppers surveyed said they would increase their online grocery shopping over the next five years.

Health and Wellness: According to the NGA survey, 63 percent of independent grocery shoppers expect grocery stores to support their healthier lifestyles, and provide more help with cooking instructions, reading nutritional labels, and guidance on foods with good nutritional value. When considering where to shop, these shoppers value low prices, quality meats and produce, friendly staff, cleanliness, and locally grown produce. Shoppers were almost split on where healthy foods should be displayed, with 58 percent saying that healthy food alternatives should be shelved alongside other food items, compared to 42 percent who think healthy food should be in its own section, separate from main aisles.

Areas Shoppers Value Most: When considering where to shop for groceries, independent shoppers value low prices, quality meats and produce, friendly staff, cleanliness, and offering locally grown produce and other packaged goods. Almost 7 in 10 shoppers (67%) have no plans to switch from their independent store.

Areas of Needed Improvement: The survey noted that independent supermarket operators need to upgrade their technology offerings, including improving their website usability, with consistent pricing online and offline, the same products online and in-store, and providing an easy-to-use smart phone app.

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