Cracking Down on Fraud: USDA Organic Enforcement Rules Take Full Effect in March 2024
This article first appeared in Presence Marketing’s September 2023 newsletter.
By Steven Hoffman
Organic food is big business in the U.S. – sales of organic products topped $61 billion in 2022 – and the certified organic label fetches a premium price for producers. So much so that fraud from both domestic and imported sources had become a major concern among organic industry business owners, investors and advocates.
That’s why such leading organizations as the Organic Trade Association (OTA) and others applauded the U.S. Department of Agriculture (USDA) when, earlier this year, the agency announced the Strengthening Organic Enforcement (SOE) final rule, which is set to be fully implemented and enforced in March 2024.
Representing the biggest change to organic regulations since the passage of the Organic Food Production Act in 1990, the SOE Rule was created to crack down on organic fraud. The new rule provides “a significant increase in oversight and enforcement authority to reinforce the trust of consumers, farmers, and those transitioning to organic production. This success is another demonstration that USDA fully stands behind the organic brand,” Jenny Lester Moffitt, USDA Under Secretary for Marketing and Regulatory Programs, said in a statement.
“The rule closes gaps in current organic regulations and builds consistent certification practices to prevent fraud and improve the transparency and traceability of organic products. Fraud in the organic system – wherever it occurs – harms the entire organic sector and shakes the trust of consumers in organic. This regulation will have significant and far-reaching impacts on the organic sector and will do much to deter and detect organic fraud and protect organic integrity throughout the supply chain,” OTA said in support of the new rule.
Liz Figueredo, quality and regulatory director at organic certifier Quality Assurance International (QAI), based in San Diego, California, told Nutritional Outlook in July 2023 that the new SOE Rule closes supply chain loopholes that existed in previous regulations. The new rule requires organic certification for all parts of the supply chain, including handlers and suppliers who were previously exempt, she said.
“This means that certifiers can no longer depend on documentation from uncertified handlers, which was often lacking, to verify the organic status of products. The rule also includes fraud-reduction techniques, such as requiring an Import Certificate for any organic ingredients or products imported into the U.S., which provides the total volume or weight of the imported products,” Figueredo said.
Who Is Affected by the New SOE Rule?
According to USDA, the SOE Rule may affect USDA-accredited certifying agencies; organic inspectors; certified organic operations; handlers of organic products; operations considering organic certification; businesses that import or trade organic products; retailers that sell organic products; and organic supply chain participants who are not currently certified organic.
Exemptions are limited to a few low-risk activities such as very small operations; certain retail establishments that do not process; storage and warehouse facilities that only handle products in sealed, tamper-proof containers or packages; distributors that only handle final retail-packaged products; and customs and logistics brokers that do not take ownership or physical possession of organic products.
However, exempt operations must still follow all other applicable portions of organic regulations, including co-mingling and contamination prevention, labeling requirements and record keeping. Transporters that only move organic products between certified operations, or transload between modes of transportation, do not need to be individually certified, but are the responsibility of the certified operation that loads or receives the product.
To see if your business is affected and for more information, visit the full text of USDA’s SOE Rule in the Federal Register. OTA, too, has a resource page with extensive information regarding preparing for full compliance with the SOE Rule, along with exclusive training materials for association members. OTA also offers a questionnaire for businesses that may not be sure if they need certification.
What Does the SOE Rule Do?
According to USDA, “SOE protects organic integrity and bolsters farmer and consumer confidence in the USDA organic seal by supporting strong organic control systems, improving farm to market traceability, increasing import oversight authority, and providing robust enforcement of the organic regulations.”
Key updates include:
Requiring certification of more of the businesses, like brokers and traders, at critical links in organic supply chains.
Requiring NOP Import Certificates for all organic imports.
Requiring organic identification on non-retail containers.
Increasing authority for more rigorous on-site inspections of certified operations.
Requiring uniform qualification and training standards for organic inspectors and certifying agent personnel.
Requires standardized certificates of organic operation.
Requires additional and more frequent reporting of data on certified operations.
Creates authority for more robust recordkeeping, traceability practices, and fraud prevention procedures.
Specify certification requirements for producer groups.
“SOE complements and supports the many actions that USDA takes to protect the organic label, including the registration of the USDA organic seal trademark with the USPTO. The registered trademark provides authority to deter uncertified entities from falsely using the seal, which together with this new rule provides additional layers of protection to the USDA organic seal,” USDA said.
For producers wanting to learn more about navigating and adhering to these new requirements, the Western Growers Association in partnership with the Organic Produce Network will host a session at its upcoming Organic Grower Summit, Nov. 29-30, 2023, in Monterey, California, entitled “The SOE Deadline Looms–Are You Ready?” The seminar is designed to help growers better understand the upcoming rule changes, which will affect producers, distributors, handlers and importers.
In addition, organic industry and policy veterans Gwendolyn Wyard and Kim Dietz recently founded Strengthening Organic Systems, an advisory firm focused on helping businesses with organic fraud prevention, supply chain investigations and compliance with USDA’s organic anti-fraud regulations.
Read More
How Will USDA’s Organic Regulation Changes Affect the Food and Nutraceutical Industries? – Nutritional Outlook
USDA Launches Organic Integrity Database Module – Organic Insider
Tighter Rules Now in Effect for USDA Organic Seal of Approval – Cosmetics and Toiletries News
Strengthening Organic Enforcement USDA Rule – California Certified Organic Farmers
USDA Bolsters Consumer Confidence in Certified Organic Products with New Enforcement Rule – New Hope Network
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We are for Better Alternatives. Contact steve@compassnaturalmarketing.com.
Oct. 19: Compass Natural’s Coffee Talk to Feature Annie Ryu, CEO and Founder of Jack & Annie’s and The Jackfruit Company
Compass Natural’s Coffee Talk, a popular live webinar series featuring conversations with top business leaders in the natural, organic and sustainable products industry, is also pleased to announce its new primary sponsor, Compass Coffee, an independently owned coffee roaster and cafe company based in Washington, D.C.
What: Compass Natural’s Coffee Talk
When: Thursday, Oct. 19, 2023, 8 am PT; 9 am MT; 10 am CT; 11 am ET
Presented by: Compass Natural, Connecting Media and Markets in Natural and Organic Products
Sponsored by: Compass Coffee, Presence Marketing, Naturally Boulder, Naturally New York and Naturally San Diego
Register: Register for free here
BOULDER, Colo. (Sept. 14, 2023) – Annie Ryu, CEO and founder of Jack & Annie’s and The Jackfruit Company, producing delicious meat substitutes made from jackfruit, will appear Oct. 19, 2023, on Compass Natural’s popular Coffee Talk podcast, which features lively conversations with natural products industry leaders, innovators and experts designed to guide entrepreneurs and businesses to succeed in the market.
Annie Ryu discovered jackfruit in 2011 while working in India to implement a maternal and child health care program as part of her Harvard pre-med studies. Annie saw an opportunity to convert an underutilized crop to nutritious, delicious food and to create income and opportunity for Indian farming families. The company introduced jackfruit to retailers nationwide in 2015, and Annie left medical school later that year to focus on expanding the company.
Annie Ryu
While Annie’s passion for jackfruit was immediate, the path to creating Jack & Annie’s took a decade. Annie worked relentlessly to help popularize jackfruit, nature's meatiest plant, as an ideal innovation and to build a supply chain to transport jackfruit from India to the U.S. Today, Jack & Annie’s offers a wide selection of nutritious meat alternatives made primarily from jackfruit, the fruit of the jack tree, and the company operates the farm-to-fork supply chain, supporting over 1,500 farming families in India.
Hosted by natural and organic products industry veterans Bill Capsalis and Steven Hoffman, Compass Natural’s Coffee Talk is produced by Compass Natural Marketing, a leading public relations, branding and business development agency serving the natural, organic, eco-friendly and hemp products industries. Capsalis and Hoffman will interview Annie Ryu to learn more about her and her company.
From India to the U.S.
The jackfruit trees, native to India, require no fertilizers or inputs and are the highest-yielding tree crop in the world. Since Jack & Annie's harvests from existing trees, and uses the most carbon-efficient transport to bring its jackfruit from India to North America, a Life Cycle Assessment showed that the company's jackfruit has a 94% lower Global Warming Potential vs. beef. Further, partnering directly with farmers enables Jack & Annie's to ensure that their farmers earn 10-40% incremental income annually from jackfruit sales.
About Our New Sponsor, Compass Coffee
Compass Natural is proud to announce Washington, D.C.-based Compass Coffee as the primary sponsor for Compass Natural’s Coffee Talk podcast. The independently owned coffee roaster and cafe company was founded in 2014 by two former Marines, who were looking for the perfect cup after years of drinking terrible coffee on deployment. Working with a global network of farmers, Compass Coffee is committed to ethical sourcing, masterful blending and peak roasting in small batches.
Register for Compass Natural’s Coffee Talk With Annie Ryu
Register here for free to participate in Compass Natural's Coffee Talk podcast, Thursday, Oct. 19, 2023, 11-11:30 am ET.
About Compass Natural’s Coffee Talk
Take a 30-minute virtual coffee break with Compass Natural’s 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 entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.
Compass Natural’s Coffee Talk is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry.
Previous Episodes of Compass Natural’s Coffee Talk
View the entire library of Compass Natural’s Coffee Talk episodes on YouTube. Co-hosted by natural products industry veterans Steven Hoffman and Bill Capsalis, Compass Natural’s Coffee Talk has featured notable professionals such as Jared Polis, governor of Colorado; Steve Hughes, co-founder of Sunrise Strategic Partners; John Mackey, CEO and co-founder, Whole Foods Market; Miyoko Schinner, CEO and founder, Miyoko’s Kitchen; John Foraker, CEO of Once Upon a Farm; Emerald-Jane Hunter, founder of the MyWhy Agency; Heather Terry, CEO of GoodSAM; Milton Zimmerman, executive vice president, Presence Marketing; Jennifer Maxwell, founder and CEO of JAMBAR®, and more.
Contact
Steven Hoffman, Compass Natural, steve@compassnaturalmarketing.com
‘Where’s the Money?’ – Focus on the Farmer Educational Series to Cover Financial Assistance for Farmers Transitioning to Organic
BOULDER, Colo. (Sept. 15, 2023) – As part of USDA’s Transition to Organic Partnership Program (TOPP), Compass Natural’s Focus on the Farmer educational series will offer a free webinar on Sept. 28 to support farmers transitioning to organic.
The webinar, the second in a series of four events hosted by Compass Natural in 2023, will gather top experts in organic agriculture, investment and finance to discuss investment, loan and funding opportunities for transitional and organic farmers, including government and grant programs to help cover the costs of transition and obtaining organic certification.
Webinar: WHERE’S THE MONEY?
Date: Thursday, Sept. 28, 2023, 10:30 am-12 pm MDT
Register: Register for free here. All registrants will receive a copy of the speaker presentations and a link to the Zoom video recording.
Panelists include:
Jayce Hafner, Co-Founder and CEO, FarmRaise
Co-founder and CEO of FarmRaise, Jayce Hafner grew up on a small livestock farm. She created FarmRaise to provide “farmer-friendly financial tools” and to help find funding and grants to support the transition to organic agriculture and more. Tracking tax and carbon credits, USDA grants and other programs, FarmRaise keeps farmers apprised of funding opportunities and helps them manage their business and finances.
Brandon Welch, Co-Founder and CEO, Mad Capital
Brandon Welch is co-founder and CEO of Mad Capital, providing customized loans and financing created for transitioning, organic and regenerative farmers. Replacing traditional loans and farm debt with capital that enables the transition to organic, Brandon is working to regenerate land at scale by providing long-term and tailor-fit credit to help farmers navigate the challenges of transitioning. He has experience in underwriting, credit, raising private funds, portfolio management and business building.
Emma Fuller, Co-Founder, Fractal Ag
Dr. Emma Fuller helped co-found Fractal Ag, which invests alongside farmers by taking passive, minority stakes in land that farmers already own. Farmers receive needed capital to invest in their operations, while investors access high-quality farmland that remains in the hands of the farmer. Farmers decide how to use the capital to best grow their business. Fractal discounts the cost of capital for farmers who have introduced regenerative practices, regardless of when they adopted them. Emma received her Ph.D. in Ecology and Evolutionary Biology from Princeton.
Claire Mesesan, Chief of Staff, Iroquois Valley Farmland REIT
Claire Mesesan is chief of staff at Iroquois Valley Farmland REIT, a public benefit corporation. Iroquois Valley provides land security to organic farmers through long-term leases, mortgages and operating lines of credit. Iroquois Valley supports the organic transition through its products, offering a discounted lease rate during the organic transition and interest-only mortgages for the first five years, and supports soil health and conservation projects through its in-house grant program.
Mark Retzloff, former president of the Organic Trade Association and co-founder of Horizon Organic Dairy, Greenmont Capital Partners and Alfalfa’s Market, and Steven Hoffman, founder of Compass Natural and a former Peace Corps volunteer and USDA agriculture extension agent, will serve as co-moderators.
“Our ultimate goal is to support and educate farmers during their journey to organic certification,” says Steven Hoffman, founder of Compass Natural. ”Financing is inevitably a top concern and we are thrilled to have such seasoned leaders sharing information with farmers and producers to help them navigate the process.”
About Compass Natural
Based in Boulder, Colo., Compass Natural is a communications agency serving the market for organic food and agriculture, as well as businesses and brands providing natural, socially responsible, eco-friendly and other healthy lifestyles products and services. Founded in 2001 and driven by a commitment to create a better world through business, Compass Natural is a leader in the Lifestyles of Health and Sustainability (LOHAS) market.
The “Focus on the Farmer” educational series is produced by Compass Natural in partnership with USDA’s Transition to Organic Partnership Program (TOPP) in the Plains States region. TOPP is designed to foster organic agriculture and make much-needed technical assistance available to transitioning and existing organic farmers.
About TOPP
The Transition to Organic Partnership Program (TOPP) is a program of the USDA Organic Transition Initiative and is administered by the USDA Agricultural Marketing Service (AMS) National Organic Program (NOP).
Media Contact
Steven Hoffman, Compass Natural, steve@compassnatural.com, 303.807.1042
With Launch of #1 Bestseller Courage in Cannabis, Vol. 2, Dr. Bridget Cole Williams Turns Focus to Community
COLUMBUS, Ohio (Aug. 17, 2023) — Now that Volume 2 of the award-winning Courage in Cannabis anthology has launched and won #1 Bestseller in seven Amazon categories, author Dr. Bridget Cole Williams, M.D., has turned her focus to building a community of individuals committed to destigmatizing cannabis and demonstrating its power to heal.
Dr. Williams, whose Courage in Cannabis, Volume 2: The Triumphant Stories debuted early this month, says she seeks to nurture a group of like-minded individuals who can share their cannabis experiences and answer the key question: “How can we help one another?”
Courage in Cannabis contributors were offered the opportunity to take part this summer in a seven-week workshop on public speaking, which was facilitated by nurse Heather Manus, creator of the Cannabis Nurses Network. Dr. Williams envisions they will ultimately form the backbone of Courage in Cannabis speaking events, podcasts and video series.
Dr. Bridget Cole Williams, M.D., is the author of Courage in Cannabis, Volume 2: The Triumphant Stories. Learn more here.
“It’s been a fantastic experience for people,” Dr. Williams says, explaining that workshop participants got to know each other while gaining confidence in public speaking.
Dr. Williams hails the support she’s received from her Courage in Cannabis sponsors, who include BLEV 614, SupHerbs Herbal Center, Dagga Digital Marketing, Endo Vibe Cannabis Centers, Hemp Box Etc, Columbus Botanical Depot, Ommpa (Ohio Medical Marijuana Physicians Association), The Canna Mom Show, CannabisBPO, Compass Natural Marketing and Spendr.
Dr. Williams is a renowned board-certified family physician, seasoned author, advocate and consultant in the cannabis industry who has worked tirelessly to elevate the voices of marginalized communities in the cannabis debate.
Following the success of the first volume, which won several awards, including Best New Release and International Bestseller on Amazon, Courage in Cannabis, Volume 2: The Triumphant Stories offers a keen focus on the many facets of cannabis use among people from all walks of life.
“We want to celebrate the everyday heroes who have found inspiration, strength and hope through this powerful plant,” Williams says. “Their stories are a testament to the power of the cannabis plant to bring people together and improve lives.”
The second volume features contributions from doctors, lawyers, patients, cultivars, educators, participants in the legacy market, entrepreneurs and advocates, all of whom share their personal experiences and the lessons learned from their journeys.
Adam Wilks, CEO of Tyson 2.0, wrote the foreword for Courage in Cannabis, Volume 2. Says Wilks: “These individuals have found their courage in cannabis and their stories are nothing short of inspiring. They showcase the many ways in which cannabis can positively impact people’s lives and help break down the unfounded stigma associated with its use.”
Courage in Cannabis, Volume 2: The Triumphant Stories by Dr. Bridget Cole Williams, M.D., is now available for purchase on Amazon.com.
To learn more about Courage in Cannabis, Volume 2: The Triumphant Stories, visit https://www.courageincannabis.com/.
Learn more here about Courage in Cannabis, Volume 2: The Triumphant Stories.
About Dr. Bridget Cole Williams
Dr. Bridget Cole Williams is an accomplished family physician and the owner of Dr. Bridget MD Integrative Cannabis Care. Having spent nearly two decades providing exceptional family medical care at The Cleveland Clinic, Dr. Williams now incorporates her medical experience, empowerment coaching and cannabis education certifications into providing her patients with the best possible care.
Media Contact
Steven Hoffman, Compass Natural, steve@compassnatural.com, tel 303.807.1042
Exclusive Invitation: 'Focus on the Farmer' Webinar Offers Tools for Transitioning to Organic
Compass Natural Presents
Focus on the Farmer
On behalf of USDA and the Great Plains TOPP, you're invited to join us for a free educational webinar:
'Navigating the Transition to Organic:
A Roadmap for Success'
Opportunities are there for transitioning and existing organic farmers. But what are the obstacles and where are the resources, technology and assistance to support hemp farmers and others who are transitioning to organic?
For producers interested in learning more, join us for the first event in the Focus on the Farmer education series.
Aug. 29 from 10:30 am to 12 pm MDT
All registered webinar guests will receive a FREE PDF DOWNLOAD of the presentation with links to key resources.
ABOUT:
This series is a collaboration between Compass Natural and USDA’s Transition to Organic Partnership Program (TOPP). The mission of TOPP is to foster organic agriculture and make much-needed resources and technical assistance available to transitioning and existing organic farmers. Compass Natural is a Colorado-based communications agency specializing in natural and organic food and agriculture.
We encourage you to share this with friends, family and fellow farmers!
For questions about the webinar or to nominate a speaker for a future event, please email news@compassnatural.com
Compass Natural Marketing Partners With USDA in Major Organic Farming Initiative
Leading natural and organic marketing communications agency selected to manage a series of key events to support farmers transitioning to organic
BOULDER, Colo. (Aug. 11, 2023) — Compass Natural, a Boulder, Colo.-based PR and communications agency with a deep commitment to organic and regenerative food, agriculture and the environment, has entered into a cooperative agreement to support the USDA’s Transition to Organic Partnership Program (TOPP). This $100 million, five-year program is a critical part of the USDA’s Organic Transition Initiative — the largest single investment in organic agriculture ever made by the USDA.
TOPP is designed to foster organic agriculture and make much-needed technical assistance available to transitioning and existing organic farmers. TOPP is building partnership networks in six regions across the U.S., working with trusted organizations like Compass Natural to create and administer farmer mentorship, education and community-building programs.
“We are thrilled to partner with Compass Natural on the Transition to Organic Partnership Program,” says Brandon Hill, OCIA International’s program director for the Plains Region TOPP. “As the agency has a deep connection to organic markets, it is a great fit to help make the connections producers will need to successfully transition to organic.”
Compass Natural is one of 16 select organizations partnering with OCIA International in TOPP’s Plains Region, encompassing Colorado, North Dakota, South Dakota, Nebraska, Kansas and Oklahoma. Compass Natural will manage a series of key events for farmers throughout the Plains Region during the second half of 2023. Using a contact list of more than 25,000 industry leaders, decision-makers, producers and major media members involved in organic food and agriculture, Compass Natural will bring together key experts and farmers to support the mission of the TOPP program.
‘Focus on the Farmer’ Fall Series Kicks Off With Aug. 29 Webinar
Compass Natural will kick off a Fall “Focus on the Farmer” education program on Aug. 29, 2023, with the first of a series of monthly webinars. Registration is now open. Farmers can sign up here.
August panelists will include:
· Dr. Gene Kelly, professor of pedology, deputy director of the Colorado Agricultural Experiment Station and the associate director for research in the School of Global Environmental Sustainability at Colorado State University (CSU).
· Tina Owens, senior fellow of Regenerative Agriculture, leading the Nutrient Density Alliance, a program within the Soil & Climate Alliance at Green America. Tina has been working as a sustainability leader within the organic sector since 2008 for several of the largest organic brands in the world, including enabling on-farm transition to organic and regenerative practices.
· Mark Retzloff, a pioneer in the organic and natural foods industry with a 47-year career including co-founder of Alfalfa’s Markets, co-founder of Aurora Organic Dairy, co-founder of Horizon Organic Dairy and former chairman of the Organic Food Alliance.
Live Symposium Planned for November 2023
The Fall Series will conclude with a live, one-day networking and education event in November. It will bring together world-class experts and farmers to discuss subjects related to transitioning to organic. Topics will include key organic resources, the regeneration of soil and carbon sequestration, best practices in pest control, organic farming and ranching production, and handling, financing alternatives, value-added product development and more.
Upcoming events will also highlight community-building initiatives like TOPP for Indigenous Producers; Linking Organic Consumer Packaged Goods Brands With Organic Producers in Transition; and Financing, Grant and Funding Options for Organic Producers. Technical assistance and training initiatives include TOPP for Hemp/Grain Farmers in the Plains Region, TOPP for Specialty and Produce Growers, and TOPP for Western Slope Fruit and Specialty Crop Producers.
“Compass Natural is honored, grateful and excited to be partnering with TOPP on such an important program focusing on supporting farmers as they transition to organic,” says Steven Hoffman, founder of Compass Natural. A former agricultural extension agent and graduate of Penn State University, a land grant college, Hoffman adds, “We look forward to educating farmers about the true value of organic in building resiliency in their farm operations.”
About Compass Natural
Based in Boulder, Colo., the “Epicenter of the Natural Products Industry,” Compass Natural is a boutique communications agency serving the rapidly growing market for natural, organic, socially responsible, eco-friendly and other healthy lifestyles products. Founded in 2001 and driven by a commitment to create a better world through business, Compass Natural is a leader in the Lifestyles of Health and Sustainability (LOHAS) market.
About TOPP
Transition to Organic Partnership Program (TOPP) is a program of the USDA Organic Transition Initiative and is administered by the USDA Agricultural Marketing Service (AMS) National Organic Program (NOP).
Media Contact
Steven Hoffman, Compass Natural, steve@compassnatural.com, tel 303.807.1042
AI Leads Tech Transformation in Natural Foods
This article first appeared in Presence Marketing’s August 2023 newsletter.
By Steven Hoffman
While 2023 may not be the year the singularity took place, with the launch of the first user-friendly artificial intelligence (AI) chat bot, ChatGPT, it could well go down in history as the Year of AI.*
From regenerative organic agriculture and nutrition research to product development, marketing, distribution and retail operations, business leaders in the natural channel are already finding multiple uses for this nascent yet transformative technology. A growing number of natural and organic products companies are taking the lead in employing AI automation, and such uses across the supply chain are growing as exponentially as the technology upon which it is based.
For the grocery industry, AI is projected to generate $113 billion in operational efficiency and new revenue by 2025. In a June 2023 study by data analytics firm Grocery Doppio, conducted in partnership with FMI – The Food Industry Association, and based on interviews with 152 grocery executives, implementation of artificial intelligence in supermarkets is expected to grow by 400% by the end of 2024. In addition AI “could eliminate 18% of store associate positions, 73% of store tasks and 53% of shopper queries,” reported Winsight Grocery Business.
AI adoption will deliver $113 billion in operational efficiency and new revenue opportunities for the grocery industry by 2025. Source: The Times They Are A-Changing: Impact of AI in Grocery. Source: Grocery Doppio
According to Grocery Doppio’s findings, inventory management savings could account for more than half of the estimated $113 billion in value. AI also will help grocers save billions in merchandising costs through advancements in product assortment and pricing optimization. Other savings include marketing, store operation costs, and IT technology.
While AI is not necessarily a new area for the grocery industry, grocers are focusing more on the “responsible, ethical use” of artificial intelligence,” said Mark Baum of FMI in a July 13th, 2023, Grocery Dive report. One quarter of retailers and more than a third of suppliers are using artificial intelligence (AI) to track product preferences and spending to anticipate consumer wants and needs, according to FMI’s 74th annual survey, The Food Retailing Industry Speaks 2023. “Every CEO needs to at least think like a CIO, if not act like a CIO, going forward. We’d like to say these days if you’re not technology enabled, you’re competitively disadvantaged,” Baum said.
Yet, a major concern among grocery and other workers is that AI could automate or partially automate up to 300 million jobs over the next decade, according to a study by Goldman Sachs. The industries most impacted by AI-driven automation will be “office and administrative support” and “legal.” However, according to Goldman Sach’s findings, “Once AI is implemented, workers will be more productive leading to an overall increase in output. This could lead to a 7% increase in annual GDP, equivalent to an astounding $7 trillion.”
Read on to learn how some early adopters in the natural and organic products industry are making innovative use of AI technology.
Research and Product Development
Dietary supplement companies have been utilizing AI to speed up the research of nutritional compounds. Companies like Brightseed employ machine learning to develop bio-active phytonutrient compounds to support gut health. Supplement maker Nuritas, recipient of Nutrition Business Journal’s 2023 Science and Innovation Award, employs artificial intelligence to identify “novel health-benefitting ingredients” and “the best plant-sourced, cell-signaling peptides,” said Nuritas founder Nora Khaldi.
In a July 2023 podcast, The Natural List, Aadit Patel, VP of Product Engineering at NotCo, a plant-based food technology company, shared how it uses AI and “the right balance of technology and humanity” to bring novel plant-based meat and dairy alternatives to market.
In related news, researchers at Northeastern University have developed an AI algorithm, FoodProX, that can predict the level of processing in food products and if a food has been “ultra-processed.” Such information is important for researchers in examining the health impacts of processed foods, Neuroscience News reported in June 2023.
Marketing
In an in-depth interview in Strategy Magazine, Arjan Stephens, President of leading organic food manufacturer Nature’s Path, shared that AI helps the company deal with inflation and competition by creating more targeted messaging in a quicker timeframe.
“The aim is to educate consumers on our commitment to fueling healthy communities as well as the inherent value of supporting and investing in a triple bottom line business like ours. A.I. has been a huge part of driving efficiencies in getting more strategic content to market more quickly. It not only enables us to swiftly create and distribute content, but to also respond more efficiently to consumer feedback and shopping behavior changes. This will continue to be critical to competing in a market that is oversaturated in greenwashing and misinformation,” Stephens said.
Distribution
Distributors, in particular, are looking to AI – and even AI-powered robots – to optimize supply chain and transportation logistics. Leading natural foods distributor UNFI in June 2023 announced a partnership with Finnish firm RELEX Solutions. Driven by AI and machine learning, RELEX will work with UNFI to consolidate and replace multiple UNFI buying systems into “one enhanced process, combining a more robust analysis of demand with a more granular approach to procurement,” UNFI said in a statement.
UNFI’s new AI platform is expected to become operational over the next 12 to 18 months. “As part of UNFI’s multi-faceted transformation agenda, we’re continuing to implement cutting-edge technology to improve the customer and supplier experience, while increasing operating efficiency,” said Erin Horvath, Chief Operating Officer at UNFI. In March 2023, UNFI announced that it would utilize robots powered by artificial intelligence and software automation and new scanning technology at its distribution center in Centralia, Washington.
Grocery wholesale cooperative Associated Food Stores (AFS) also plans to deploy robotics and AI-powered automation technology at is distribution center in Farr West, Utah, according to a May 9th, 2023, report in Winsight Grocery Business. Working with technology company Symbotic, AFS’s end-to-end automation system will include robotic case-pick capabilities “to enhance a range of retail-facing experiences,” including supply, expanded assortment and product delivery to stores.
Seeking to disrupt the traditional natural products distribution sector, Pod Foods claims it offers the first truly “infinite” warehouse for food procurement in the industry while providing retailers with data-driven, relevant access. The engine is powered by the company’s “Pod Bytes” data platform, which synthesizes data from its B2B marketplace, economic indicators, and other grocery-adjacent and third-party sources, the company said. The built-for-grocery models provide retailers with personalized, AI-enabled insights across all areas of discovery, including product placement, procurement, inventory optimization and market opportunity. The result is access to an endless yet personalized assortment of products, targeted to each retailer based on consumer purchasing behavior, desired retail margins, local trends, and more, the company says. Pod Foods in April 2023 appointed former VP executive and CPG veteran Michael Schall as President.
Retail
At The Fresh Market, which operates 160 stores in 22 states, longtime marketing partner Firework is implementing a patent-pending artificial intelligence platform to enhance The Fresh Market’s video content for consumers. The technology will allow shoppers to ask questions and receive sophisticated, real-time answers in The Fresh Market’s in-video chat feature. Viewers will be able to ask such questions as, “What is the recipe for the salad being made in this video?” and the AI chatbot will list the ingredients.
“The new AI engine makes use of a large language model (LLM), can understand and respond in a wide range of languages, and can be customized to reflect each brand’s unique voice,” The Fresh Market said in a statement. The new technology will be available on The Fresh Market’s website and its shoppable video live commerce retail media network. “Our customers are looking to engage with our brand in real time, both online and in store. With Firework’s generative AI technology, we can be certain that customers will receive prompt, friendly and personalized support whenever they choose to engage with our video commerce content,” said Kevin Miller, CMO at The Fresh Market.
Shoppers at Sprouts Farmers Market can now use an AI-based shopping assistant called Quin. The phone-based app from New York-based developer Verneek can answer spoken or typed questions about items sold in the stores and provide information about recipes, keto-friendly options, nutritional value and more. “As technology continues to evolve, Sprouts is always exploring new and innovative ways to improve our customer experience while providing joy in healthy living,” Sprouts said in a statement. Nasrin Mostafazadeh, Cofounder of Quin, said in ArcaMarx Magazine in April 2023 that the timing was right to launch Quin in grocery stores. However, he noted, Quin is not intended to replace grocery workers but to supplement them, giving them more time to focus on their job responsibilities, such as stocking shelves, doing inventory or checking out customers.
On THRIVE Market’s blog, the online retailer helps customers evaluate the best AI recipe generators. “There are now lots of websites that use AI machine learning to populate recipes based on ingredients, dietary restrictions, and even cooking skill level,” wrote THRIVE blogger Amy Roberts. “Some create a recipe based on ingredients you have on hand, while others churn out a recipe based on a query, like ‘Make a gluten-free chicken parmesan.’” Roberts reviewed ChatGPT for a vegan cheesecake recipe, Let’s Foodie for a red cabbage slaw, and PlantJammer for lasagna. “Did it work?” Roberts asked. “Surprisingly yes! The cheesecakes were a hit!” Though, Roberts admits she continues to refer to Pinterest for her own recipe ideas.
Using an organic food store as an example, AI platform Business Name Generator cites the following case study: “Consider the case of a budding entrepreneur, John, who planned to start an organic food store. He wanted a name that conveyed freshness, health, and sustainability. After struggling with brainstorming sessions, he turned to an online business name generator. He entered keywords such as ‘organic,’ ‘fresh,’ ‘healthy’ and ‘green.’ In seconds, the tool provided him with a list of potential names like ‘Freshly Organic,’ ‘Green Harvest,’ “Healthful Bounty’ and ‘SustainaBite.’ John was able to choose a unique and meaningful name for his store.”
Agriculture
For regenerative and organic farmers, AI technologies including machine learning and data analytics are being used to develop sophisticated monitoring systems that can provide farmers with real-time information about factors that affect soil health, including nutrient deficiencies and moisture levels. Combined with the use of sensors, drones and satellite imagery, AI algorithms are being used to analyze massive amounts of data to determine the optimal amount of water needed for each crop, reducing water waste, and ensuring that plants receive necessary nutrients for healthy growth. This not only conserves water resources but also helps to prevent soil degradation caused by overwatering, reported Marcin Frackiewicz in TS2 in May 2023.
At the University of California Davis, the AI Institute for Next Generation Food Systems (AIFS), funded in part by USDA, was launched in 2020 with a mission of meeting growing demand in the food supply by increasing efficiencies using AI and “bioinformatics” spanning the entire system from seed to shelf. Bringing more than 40 researchers together, AIFS says it aims to “bring artificial intelligence technology to the entire food system from crop breeding and farming to food production and nutrition. The institute will combine the development of the latest breakthroughs in artificial intelligence with preparing the food and agriculture industries to rapidly adopt them and ready the workforce.”
In addition, leading technology companies including IBM, Microsoft, Intel and others are focusing on developing artificial intelligence for use in agriculture and food production. Microsoft’s Project FarmVibes seeks to foster sustainable agriculture by collecting and analyzing data in from drones, sensors and other equipment to help farmers make real-time decisions about their crops. Intel and the National Science Foundation in 2022 invested $220 million in a number of AI ventures, including research in AI-Driven Innovation in Agriculture and Food Systems. Focusing on regenerative agriculture, IBM in 2022 launched IBM Regenerative Agriculture, which uses AI, data analytics, cloud technology and predictive insights to interpret agricultural and weather data and help farmers make decisions about crops.
“The food chain is a complex ecosystem that touches our everyday lives, and this is where AI has an advantage – by navigating the complex web of information, from farming to food distribution,” said Bryton Shang, CEO of Aquabyte in Forbes in July 2023. “It can help ensure higher-quality decision-making every step of the way.”
* Written and researched by a real human, with 40+ years’ experience in natural and organic foods and sustainable agriculture.
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We are for Better Alternatives. Contact steve@compassnaturalmarketing.com.
Whole Foods Market Co-Founder John Mackey Launches Health and Wellness Company Love.Life
Natural and organic pioneer aims to transform health care as Whole Foods transformed grocery; company announces expansion of virtual health offerings and first flagship location
AUSTIN, Texas (July 27, 2023) – Love.Life, an integrated health and wellness company, is proud to announce the launch of its groundbreaking virtual health optimization programs and plans for its first flagship location slated to open in the summer of 2024. Love.Life provides a one-stop immersive health experience by combining nourishing food, evolved medical care, and cutting-edge wellness therapies.
The company's new optimization programs provide patient-centric medical care that is outcome-driven, personalized, and dedicated to addressing all aspects of an individual's health. With licensed physicians practicing telehealth nationwide, Love.Life empowers individuals to proactively improve their health by focusing on the root causes of chronic diseases and offering comprehensive solutions.
"Love.Life aims to transform the lives of millions of people," stated CEO and co-creator John Mackey. "The conventional medical system is fundamentally flawed, focusing on managing diseases and treating symptoms rather than prevention and finding the root cause. Studies show that 80% of chronic diseases can be prevented and reversed through diet and lifestyle changes, which are the focus of Love.Life's philosophy and are rarely included in conventional treatment plans."
Love.Life's medically supervised virtual programs far exceed the limitations of standard bloodwork testing, acute care models and transactional doctor-patient relationships of the conventional health care system. Through comprehensive testing and health assessments, individuals work in partnership with doctors to establish their true baseline health. This detailed information forms the basis of a customized, actionable plan that addresses both health risks and opportunities. Love.Life's virtual optimization programs offer a supportive environment, educational resources, and access to health and wellness coaching to facilitate the implementation, measurement, and sustainability of healthy habits.
"With grocery, we made natural and organic products mainstream, and Love.Life is going to play a similar role in the health and wellness industry. We're ready to support and empower millions in optimizing their health potential, proving that genes are not destiny," said Mackey.
"Health is highly personal, so it can be frustrating when you don't feel heard by your doctor or you leave the appointment feeling confused about test results and treatment options," said Dr. Brian Asbill, chief health officer, Love.Life. "The physicians at Love.Life evaluate all aspects of health to create highly personalized plans with — not for — patients. Whether you are seeking preventative care for overall wellness, struggle with an existing condition, or have not been able to pinpoint the root cause of a health issue, we want to offer a single source of clear, trusted, evidence-based care for patients."
Love.Life's board-certified physicians practice "lifestyle medicine" as the foundation of care and are guided by the philosophies of integrative and functional medicine. An emerging evidence-based field, lifestyle medicine evaluates various aspects of an individual's lifestyle, such as nutrition, movement, sleep, stress, and social connection, to provide a holistic view of health. The goal is to help people lead long, healthy, and vibrant lives by improving both lifespan and health span.
Love.Life's virtual health optimization programs are available to individuals across all 50 states and internationally, with three membership programs designed to support a range of health goals. The Healthy Lifestyle Program offers an entry-level option for individuals seeking to jump-start their well-being and proactively maintain their health. It includes an assessment phase of two 30-minute appointments with a physician with a recommended set of labs to assess the individual's baseline cardiovascular and metabolic health as well as key nutrient and vitamin levels. Group health and wellness coaching, educational content, and quarterly follow-up doctor appointments are also included.
The Longevity Program provides intensive, specialized care for specific health goals, including chronic disease reversal and proactive preventative care for optimization and wellness. Under this program, patients receive:
A more intensive assessment phase of 60-minute introductory doctor appointments, a detailed set of included labs, and tests to establish an individual's baseline of health.
Monthly 1:1 health and wellness coaching with unlimited messaging and at least one physician appointment quarterly.
Access to practical tools and exclusive educational content and advanced specialized assessments such as biological age, microbiome, continuous glucose monitoring, and body composition.
For the most comprehensive health and wellness care and more testing with assessments ranging from epigenetics and microbiome to cardiovascular and cancer screenings, the company also offers the Concierge Program.
As part of its commitment to revolutionizing health care, Love.Life has also acquired Mastering Diabetes, an established online coaching and education platform known for permanently reversing insulin resistance using food as medicine. This strategic acquisition complements the company's medically supervised care and enhances Love.Life's ability to provide evidence-based guidance and coaching services to combat various health conditions. The company recently launched Mastering Weight Loss and will continue to add specialized private and group coaching programs under its Mastering Programs service in the future. Cyrus Khambatta, Ph.D. in Nutritional Biochemistry, and Robby Barbaro, MPH, co-founders of Mastering Diabetes, are now members of Love.Life's executive team and lead the development of the company's coaching services.
In addition to its virtual offerings, Love.Life's commitment to providing comprehensive care includes physical locations offering medical care, fitness and wellness therapies, and healthy food under one roof. Its first flagship location, a 45,000-square-foot space in El Segundo, California, will launch in 2024, offering a fully integrated health experience. Love.Life's health-forward restaurant in Culver City is already open and will launch evidence-based meal prescription plans for specific health conditions once the adjacent medical and wellness components of the brand open. The company also operates Love Life Cafe in Miami love.life/restaurant/miami, which opened its new location in February 2023 with expanded seating, a bar, and new menu items.
To learn more about Love.Life's innovative medical programs or to book an appointment with a licensed physician, visit love.life/telehealth/healthprograms. For more information about Love.Life's Mastering Programs, including Mastering Diabetes and Mastering Weight Loss, visit love.life/masteringprograms.
About Love.Life
Love.Life is an integrated health and wellness company that makes lasting health and vitality attainable. The company unites the power of nourishing food, holistic medical care, and precision wellness therapies to promote healing, optimization, longevity, and community. The company was co-founded in 2020 by Whole Foods Market co-founder and former CEO John Mackey; Walter Robb, former co-CEO of Whole Foods; and Betsy Foster, a former executive of the grocer. For more information, visit www.love.life.
Media Contact
Robin Kelly press@love.life
Naturally Network Mid-Year Update: Natural Products Outpacing Growth of the Overall Marketplace
This article first appeared in Presence Marketing’s July 2023 newsletter.
By Steven Hoffman
There are “some key areas where natural continues to be really important and shoppers are continuing to engage despite inflation where they're saying, ‘Natural's important to me and I will continue to spend a little bit of extra money despite price.’” – Jessica Maniscalco, SPINS
Addressing the ongoing theme of inflation, Jessica Maniscalco, Senior Retail Insights Manager of market intelligence firm SPINS, said, “While the impact is still present in natural and specialty accounts, it’s being felt at a lesser rate than in conventional channels.”
Speaking at a recently held mid-year industry trends update webinar hosted by Naturally Network, Maniscalco shared that the drug, convenience and natural channels have seen lower price increases, “which lowers the growth rate compared to the conventional channel,” where price increases have been higher.
Source: SPINS
According to multi-year data tracking by SPINS, Maniscalco said that over time, “overall dollars have continued to grow across all positioning groups while units have been negatively impacted, especially with conventional products, which holds the lion’s share of sales.” Thus, while inflation is impacting overall unit growth everywhere, conventional products are being the most impacted.
“We all know what was going on with eggs most recently and how high the prices have gotten in terms of base price over the past year. So things like eggs, cereal, and bars were among the highest to increase their price. But what you'll notice that during this same time period is that natural and organic products within these same categories have held their prices at a much lower rate than the overall total category during the same time,” Maniscalco said.
Top Natural Categories Show Resilience
Maniscalco noted the top fastest growing categories for natural products, including infant formulas, creamers, salsa and dips, jerky and meat snacks, refrigerated entrees and a few others, are experiencing “exponential growth” versus overall category performance. She also pointed out that there are “…some key areas where natural continues to be really important and shoppers are continuing to engage despite inflation where they're saying, ‘Natural's important to me and I will continue to spend a little bit of extra money despite price.’”
In analyzing the composition of conventional, specialty wellness and natural products sales in brick & mortar retail over the past year, Maniscalco reported that specialty wellness products comprised about 15% of overall product sales. “But when it comes to dollar sales growth, it's lagging while contributing to only 10% of that overall bump. So, this is saying that specialty wellness sales are going up or the dollars are going up, but the price is holding at a lower rate than the conventional and natural products in these channels, so contributing less to the overall growth.”
Maniscalco also reported that, outside of grocery, pet care products and alcoholic beverages also continue to experience significant growth in the natural channel, and advised retailers to be aware of such attributes as “organic,” whose prices have held steadier over time compared to their conventional counterparts.
Source: SPINS
The Rise of the Values Oriented Shopper
In addition, Maniscalco shared data regarding the impact of the values-oriented shopper. “Value oriented has to do with people that are associating certain values or keeping those top of mind when they they're shopping at a store and engaging with products. And almost 50% of shoppers are considered value oriented and they shop differently. Almost 90% of them shop at least once a week, which is 1.2 times a more than the average shopper. So, they're a very valuable customer. When asked what was most important to them when they are going about their everyday shopping or look for new products, is they were really prioritizing ‘good for the planet’ attributes very highly” Maniscalco said.
With such a focus on sustainability, “shoppers are looking more and more now at not only what's good for you health-wise, but how the impact can really go further and whether it's good for the planet, good for animals, etc.,” she noted.
“The other thing that value oriented shoppers are looking for more and more now is functionality, and functional ingredients have been on the rise for several years now. But, it's great to see that it's no longer limited to just the vitamin section or beverages or bars, but really across all aisles we're seeing some type of integration with availability, and shoppers are really looking to get more bang for their buck now,” Maniscalco added. “We know that adaptogens in the form of mushrooms have been seeing huge gains in acceptance, especially since COVID, and they are being integrated in many ways across the store.”
The values oriented shopper “is a very valuable customer. When asked what was most important to them when they are going about their everyday shopping or to look for new products is they were really prioritizing good-for-the-planet attributes very highly. The key takeaway here is how important this shopper is,” Maniscalco emphasized.
SPINS will be releasing a full report later this summer.
Source: SPINS
Steven Hoffman is Managing Director of Compass Natural, providing public relations, brand marketing, social media and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We Are for Better Alternatives. Contact steve@compassnaturalmarketing.com.
Courage in Cannabis, Vol. 2: Dr. Bridget Williams' New Anthology Celebrates Cannabis in Communities, Business and Medicine
COLUMBUS, Ohio (July 24, 2023) — The highly anticipated follow-up to the best-selling Courage in Cannabis anthology is finally here. The new volume by Dr. Bridget Cole Williams, M.D., celebrates everyday heroes who have found purpose through their relationship with cannabis.
Courage in Cannabis, Volume 2: The Triumphant Stories is a new compilation of stories that offers unique perspectives on the cannabis plant’s power in business and medicine and in building more resilient communities.
Following the success of the first edition, which won several awards, including Best New Release and International Bestseller on Amazon, Courage in Cannabis, Volume 2: The Triumphant Stories promises to be another compelling read that will challenge the stigma associated with cannabis and showcase the incredible potential of this plant.
Dr. Bridget Cole Williams, M.D., is the author of Courage in Cannabis, Volume 2: The Triumphant Stories. Learn more here.
Dr. Bridget Cole Williams, M.D., is a renowned board-certified family physician, seasoned author, advocate and consultant in the cannabis industry. She has worked tirelessly to elevate the voices of marginalized communities in the cannabis debate.
She has compiled the stories in Courage in Cannabis, Volume 2: The Triumphant Stories with a keen focus on the diverse facets of cannabis use among people of all walks of life.
“I’m thrilled to share these stories with readers — stories that illuminate the courage and strength of so many who have found strength in cannabis,” says Williams. “The diverse experiences and stories in this volume serve as a reminder of the power of the human spirit, and I’m grateful for the opportunity to share them.”
The book features contributions from doctors, lawyers, patients, caregivers, participants in the legacy market, entrepreneurs and advocates. These stories of perseverance and determination are proof that, even in challenging times, courage and resilience can shine through. The authors candidly share their personal experiences and the lessons learned from their journey.
Adam Wilks, CEO of Tyson 2.0, wrote the foreword for Courage in Cannabis, Volume 2. Wilks believes in the importance of sharing stories of courage and inspiration in the cannabis industry, saying: “These individuals have found their courage in cannabis, and their stories are nothing short of inspiring. They showcase the many different ways in which cannabis can positively impact people’s lives and help break down the unfounded stigma associated with its use.”
Dr. Bridget Cole Williams, M.D., asserts that the book’s goal is to share inspiring stories in the changing times of cannabis acceptance.
“The Courage in Cannabis book series is an inspiring and educational time capsule of the progression out of prohibition and an evolution in health care,” she says. “I wanted to be on the right side of history and document the people and stories that made change happen.”
Courage in Cannabis, Volume 2: The Triumphant Stories by Dr. Bridget Cole Williams, M.D., is available for purchase online and in bookstores. The e-book will be released on July 29. The paperback will be available on Aug. 1 and can be pre-ordered here.
To learn more about Courage in Cannabis, Volume 2: The Triumphant Stories by Dr. Bridget Cole Williams, M.D., visit: https://www.courageincannabis.com/.
Learn more here about Courage in Cannabis, Volume 2: The Triumphant Stories.
About Dr. Bridget Cole Williams, M.D.
Dr. Bridget Williams is an accomplished family physician. She is board-certified and renowned for her expertise in the field of integrative medicine. Having spent nearly two decades offering exceptional family medical care at The Cleveland Clinic, Dr. Williams now incorporates this experience into her life and cannabis coaching certifications to provide her patients with the best possible care.
Media Contact
Steven Hoffman, Compass Natural, steve@compassnatural.com, tel 303.807.1042