Harvard Researchers: ‘Planet-Friendly’ Diet Promotes Human Longevity, Cuts GHG Emissions
By Steven Hoffman
Was Frances Moore Lappé ahead of her time when she wrote the bestseller Diet for a Small Planet? The book, which has sold more than three million copies since it was first published in 1971, argued that industrial food production has a negative impact on the environment. Presenting a basic guide for a healthy diet along with recipes, Lappé’s groundbreaking book advocated for “environmental vegetarianism.”
Now, in time for the Northern Hemisphere’s extreme summer heat, researchers at Harvard University’s T.H. Chan School of Public Health suggest that a “Planetary Health Diet” (PHD) that emphasizes fruits, vegetables and whole grains, while allowing for modest consumption of meat and dairy products, reduces the risk of premature death in humans by nearly one third – while also reducing the release of greenhouse gases that are linked to global warming and climate change.
The study, published on June 10, 2024, in The American Journal of Clinical Nutrition, found that the risk of premature death was 30% lower in the top 10% of participants most closely adhering to the Planetary Health Diet compared to those in the lowest 10%. Every major cause of death, including cancer, heart disease and lung disease, was lower with greater adherence to this dietary pattern, said the study’s authors.
“For every major cause of death we looked at, there was a lower risk in people with better adherence to the Planetary Health Diet,” Walter Willett, M.D., professor of epidemiology and nutrition and co-author of the study, said in a statement.
In addition, the researchers found that those with the highest adherence to the PHD had a substantially lower environmental impact than those with the lowest adherence, including 29% lower greenhouse gas emissions, 21% lower fertilizer needs and 51% lower cropland use.
“Climate change has our planet on track for ecological disaster, and our food system plays a major role. Shifting how we eat can help slow the process of climate change. And what’s healthiest for the planet is also healthiest for humans,” Dr. Willet said.
The Harvard researchers noted that their work is the first large-scale study to directly evaluate the impacts of adherence to recommendations in the landmark EAT-Lancet report. Published in 2019, the report was the first full scientific review that brought together 37 world-leading scientists to ask the question, “Can we feed a future population of 10 billion people a healthy diet within planetary boundaries?”
While other studies have found that diets emphasizing plant-based foods over animal-sourced foods could have benefits for human and planetary health, most have used one-time dietary assessments, which produce weaker results than looking at diets over a long period of time, the authors noted.
As such, the researchers used health data from more than 200,000 women and men enrolled in Harvard’s Nurses’ Health Study I and II and the Health Professionals Follow-Up Study. Participants were free of major chronic diseases at the start of the study and completed dietary questionnaires every four years for up to 34 years. Participants’ diets were scored based on intake of 15 food groups — including whole grains, vegetables, poultry and nuts — to quantify adherence to the PHD.
“Eating more whole plant foods, less animal foods and less highly processed foods is better for people and planet alike,” David Katz, M.D., told CNN in a recent interview about the study. “In this paper, we see that same message amplified: Adhering to a dietary pattern conducive to the health of the planet and sustainability is associated with meaningful reductions in all-cause mortality.” Katz is the founder of the nonprofit True Health Initiative, a global coalition of experts dedicated to evidence-based lifestyle medicine.
“Our study is noteworthy given that the U.S. Department of Agriculture has refused to consider the environmental impacts of dietary choices, and any reference to the environmental effects of diet will not be allowed in the upcoming revision of the U.S. Dietary Guidelines,” said Dr. Willett. “The findings show just how linked human and planetary health are. Eating healthfully boosts environmental sustainability — which in turn is essential for the health and well-being of every person on Earth.”
In 2021, for the 50th anniversary of the publication of Diet for a Small Planet, Frances Moore Lappé wrote: “In 1970, I never imagined the impact of our diet on the looming life-and-death climate crisis. Nor that 40 years later my own daughter, Anna, would tackle this threat in Diet for a Hot Planet, enabling me to learn so much about the climate-food connection. If we achieve a societal shift toward plant-based diets, we can reduce greenhouse gas emissions from farming by as much as 70% by 2050.”
Lappé added: “Worldwide, if those eating meat-centered diets simply moved to popular low-meat or no-meat fare – such as traditional Mediterranean or vegetarian cuisine – emissions could be reduced by an amount equal to the current greenhouse gas emissions of all cars, trucks, planes, trains and ships. … More heartening news is that changes to farming and eating that benefit our Earth also enhance our health.”
Learn more:
Evaluating Population Diets and Planetary Health—Shining New Light
American Journal of Clinical Nutrition, June 10, 2024
Diet for a Hot Planet, by Anna Lappé, originally published in 2010
Diet for a Small Planet, by Francis Moore Lappé, originally published in 1971
JAMBAR Organic Artisan Energy Bars Now Available in Select California and Hawaii Whole Foods Market Stores
In keeping with Whole Foods Market’s mission of giving back to the community, JAMBAR donates 50% of after-tax profits to local music and active-living organizations
SAN RAFAEL, Calif. (June 19, 2024) – JAMBAR®, the artisan-made organic energy bar company launched in 2021 by PowerBar® co-founder Jennifer Maxwell, continues to expand its nationwide retail footprint. JAMBARs will now be carried in select Whole Foods Market stores in Northern California, Southern California and Hawaii.
“JAMBAR is excited to be a part of the Whole Foods Market family. These organic energy bars not only meet Whole Foods Market’s high-quality standards, but they’re also delicious,” said JAMBAR founder and CEO Jennifer Maxwell. “Our company’s dedication to organic food and farming, along with its commitment to giving back, makes JAMBAR a natural addition to Whole Foods Market shelves,” she added.
Maxwell and her late husband, Brian, essentially created the energy bar category when they launched the original PowerBar in 1985. More than three decades later, Maxwell had a new vision. She put the KitchenAid mixer she used for the first PowerBars back to work, blending the highest-quality, most innovative organic ingredients into a new type of whole food energy bar.
The result is JAMBAR. Whole Foods Market will offer four flavors of JAMBAR – Malt Nut Melody, Musical Mango, Chocolate Cha Cha and Jammin’ Jazzleberry. JAMBARs are made with organic, gluten-free ancient grains, berries, fruit, nuts, fair-trade chocolate, proteins from sunflowers and organic dairy, and pure syrup, juices and honey as sweeteners. The Musical Mango and Jammin’ Jazzleberry varieties are 100% vegan and suitable for plant-based diets. All JAMBARs contain 10g of premium quality protein.
JAMBARs are made in the U.S. and crafted in small batches in the company’s own state-of-the-art manufacturing facility in Northern California. A woman-owned business and a mission-based “conscious CPG brand,” JAMBAR donates 50% of after-tax profits to organizations that support music and active living. Runner’s World named JAMBAR the Best Protein Bar for runners in 2022 and also recognized JAMBAR with its 2023 Fitness Nutrition Award.
JAMBAR is distributed by leading natural and specialty foods distributors, including UNFI and KEHE. For wholesale inquiries, contact jammin@jambar.com, 877-JAMBARZ.
About JAMBAR
In 2021, Jennifer Maxwell founded JAMBAR with the goal of helping people feel good not only about the ingredients they put in their bodies, but also about the positive impact they can have on their local communities. A mission-based brand, JAMBAR donates 50% of after-tax profits to organizations that support music and active living. Runner’s World named JAMBAR the Best Protein Bar for runners in 2022 and also recognized JAMBAR with its 2023 Fitness Nutrition Award.
Learn more at www.jambar.com and follow JAMBAR on Facebook and Instagram.
Media Contact
Steven Hoffman, Compass Natural, steve@compassnatural.com, tel: 303.807.1042
U.S. Organic Product Sales Near $70B; All-Organic Trade Show Set for 2025
By Steven Hoffman
Is it true that the growth rate in sales of certified organic bananas is now outpacing that of conventional bananas? According to the Organic Trade Association (OTA), the answer is yes.
In fact, among an ever-expanding sea of certification seals in the retail sector, and despite inflation, the “Certified Organic” label continues to stand out for consumers who prioritize health, sustainability and clean-label products. So much so that U.S. sales of certified organic products grew 3.4% in 2023 to $69.7 billion, marking a new record for sales in the organic products industry.
According to the OTA, which conducted the 2024 Organic Industry Survey in collaboration with Nutrition Business Journal, organic food sales in 2023 totaled $63.8 billion, and sales of organic non-food products reached $5.9 billion, with organic personal care products reporting the strongest increase in that category, with growth of 7% in 2023.
On the food side, fresh organic produce continues to dominate as the primary entry point for consumers, who are increasingly knowledgeable about the “Dirty Dozen” — those fruits and vegetables the Environmental Working Group has determined to contain the most synthetic pesticide residues. In 2023, sales of organic produce grew 2.6% to $20.5 billion. Top sellers included avocados, berries, apples, carrots and packaged salads. OTA also noted that, indeed, in 2023, organic bananas recorded greater sales growth than non-organic bananas.
Organic Baby Food Drives Growth in Grocery
The second biggest selling category in the organic sector in 2023 was grocery, comprising breads and grains, condiments, and packaged and prepared foods. Among a diverse group of sub-categories in grocery, three stood out as top performers: in-store bakery and fresh breads, with sales of $3.1 billion and growth of 3%; dry breakfast products, which were up 8% to $1.8 billion in sales; and organic baby food and formula, up an impressive 11% to record $1.5 billion in sales in 2023.
According to the OTA survey, 2023 also saw a surge in functional and non-alcoholic beverages, which helped drive beverages as the third largest category in organics, posting growth of 3.9% and sales of $9.4 billion. In addition to the emergence of organic “mocktails,” organic wine sales were up 2.5% to $377 million, and organic liquor and cocktails showed strength as an emerging category with growth of 13% and sales of $59 million in 2023.
Organic dairy and eggs, the fourth-largest category in the organic food market, based on OTA’s survey, is another entry point for consumers who want clean, ethical sources of protein with lower environmental impacts. In 2023, organic dairy and egg sales were up 5.5%, totaling $8.2 billion. According to OTA, organic dairy and eggs now account for more than 8% of all dairy and egg sales. Milk and cream sales were up nearly 5% to $4.2 billion. Also, the organic dairy alternative category grew almost 14% in 2023 to approximately $700 million.
Leading among organic non-food items were organic supplements, tracking 4% growth and sales of $2.1 billion in 2023. Organic fiber remains the largest segment of U.S. organic non-food product sales, representing 40%, or $2.4 billion, of non-food category sales. According to OTA, growth in organic fiber sales was essentially flat year over year, due to restricted supply chain issues more than lack of buyer interest.
Price Gap Is Narrowing Between Conventional and Organic
According to OTA Co-CEOs Matthew Dillon and Tom Chapman, the increase in overall dollar sales in the organic market in 2023 was driven more by price increases than unit sales as the organic industry recalibrated its supply chain and dealt with retail price increases as necessary. However, they pointed out, consumers increased their purchases of many organic products, and unit sales were up for nearly 40% of the products tracked in this year’s survey.
In addition, the survey indicated that prices for many non-organic products climbed at a faster rate than organic products, meaning that the price gap is narrowing between conventional and organic, which, says OTA, should fuel growth for organic products in the coming year.
“It is encouraging to see that organic is growing at basically the same rate as the total market. In the face of inflation and considering organic is already seen as a premium category, the current growth shows that consumers continue to choose organic amidst economic challenges and price increases. Although organic is now a maturing sector in the marketplace, we still have plenty of room to grow,” said Tom Chapman.
Matthew Dillon added that to achieve this growth, “It is essential to educate consumers that choosing organic is a straightforward way to tackle some of the greatest challenges we face. Whether it's accessing healthy foods, improving transparency in supply chains, mitigating climate change, supporting rural economic resilience, protecting natural resources, or realizing the multitude of other benefits, effectively communicating and delivering on these promises is the key to expanding organic’s share of our dinner plate.”
The future for organic is not without its challenges. However, Chapman and Dillon assert that more consumers are aware of the potential health benefits associated with organic foods. Many consumers, too, especially the Millennial and Gen Z generations, they point out, are increasingly conscious of the ethical implications of their food choices. They are looking for products that align with their values, such as animal welfare, fair trade, and support for organic farmers. That means seeking out products with the USDA certified organic seal on the label.
OTA Members can download the full report here. A summary is available here.
Dedicated All-Organic U.S. Trade Show Announced
Since 1991, people from all over the world have attended, BioFach, the world’s only dedicated, all-organic trade show, held each year in Nuremberg, Germany. Now, targeting the world’s largest market for organic products, the producer of BioFach has announced it will host its first standalone, all-organic trade show in the U.S.
Dubbed BioFach America, the event will take place on June 2-4, 2025, in Atlanta.
“With BioFach America, we will host a purely organic trade show in the US. The whole organic value chain will be covered: from organic farming to retail,” said NürnbergMesse, producer of the event. According to the producer, every product presented at BioFach America must be USDA certified organic or carry an organic certification from an IFOAM Organics International accredited organization. For cosmetics, certifications such as COSMOS or Ecocert, are accepted.
In an interview with Organic Insider, Bill Ingwersen, CEO of NürnbergMesse North America, said, “BioFach America always had a presence, or section, at Natural Products Expo East, and last year in Philadelphia, we brought in 47 companies from around the world. With that show being canceled, it forced us to really ask the question: are people getting what they need at other shows or is there a true need for an organic one? We concluded that there was, in fact, a real need for a dedicated, all-organic platform in the U.S.”
When asked why Atlanta was chosen as the location for the inaugural event, Ingwersen told Organic Insider, “Since this is a U.S. show and not a regional one, people will have to travel, regardless of which city we chose. After many conversations with industry executives, it became clear that we had to make it an affordable show for everyone, including farmers. Atlanta has the world’s largest airport, has an ample supply of low-cost hotel rooms and is a very energetic, accessible city that has great infrastructure. In addition, it can support our growth as we move forward. Also, being able to serve an organic lunch to our attendees was a real hot button topic. All the catering coming out of the Atlanta Convention Center will be organic for the show, and if a city could not guarantee this, that was an immediate disqualification.”
Learn more about BioFach America here.
Newtopia Now Unveils Programming Lineup for August
Featuring Dan Buettner, Carla Hall and Top Execs from Ulta, Sprouts, The Vitamin Shoppe & More
DENVER (May 21, 2024) – Newtopia Now, presented by New Hope Network, is proud to announce a sneak peek of its programming for the highly anticipated launch event, Aug. 25-28, 2024, at the Colorado Convention Center in Denver. Newtopia Now will revolutionize the landscape of conscious consumer packaged goods (CPG), offering attendees a curated experience focused on product discovery, insightful programming and intentional connections.
On-site programming will offer a wide range of sessions covering topics such as sustainability, diversity, retail practices and holistic wellness. Newtopia Now's content aims to educate and empower CPG professionals to navigate the evolving marketplace, drive positive change, and source the connections and resources needed to accelerate business needs.
This unique event introduces a "neighborhood" concept and distinctive marketplace, redefining the traditional trade show format and providing brands with innovative formats in which to showcase the latest initiatives and product offerings. Education will be organized across dedicated stages in each respective neighborhood.
Thrive, the ultimate destination for conscious health and vitality, will welcome keynote speaker Dan Buettner, American National Geographic Fellow and New York Times-bestselling author, to discuss Blue Zones insights and what it means for the CPG industry. Additional panels include nutrition and retail predictions with The Vitamin Shoppe CEO Lee Wright, a Buyerside Chat featuring leaders from across Whole Foods Market divisions and CPG Unwrapped with 10 innovative brands.
Represent, celebrating diversity and multiculturalism in CPG, will host Insights for Retailers Why Supporting Diverse-Owned brands Is Critical to Retail Success. Plus, during Your Roadmap to Success with Target, emerging and diverse-owned brands will learn what it takes to make it in the retail giant, which is increasingly focused on bringing direct-to-consumer brands into retail. From Legacy to Leadership: Black Culinary History and the Future of CPG will engage Adrian Miller, the James Beard winning cookbook author known as the "Soul Food Scholar," about how the CPG industry can preserve and advance the plant-based traditions rooted in Black food culture.
Regenerate, which will champion sustainability and environmental impact, hosts Cultivating Change: Retail Practices for Supporting Sustainable Brands and Agriculture, engaging the industry to learn best practices for partnering with environmentally friendly brands all the way down to the agriculture component, and How to Get Noticed by the Sprouts Forager Team, a conversation with one of the most innovation-forward accelerator groups in retail. Plus, the neighborhood will celebrate the culinary visionaries leveraging regenerative agriculture as a source of flavor and nutrition.
Glow, embracing the future of conscious beauty and holistic wellness, will invite chef and television personality Carla Hall to the stage to discuss the intersection of healthy aging, wellness and culinary excellence. One of the neighborhood's Buyerside Chats, Achieving Retail Success as a Conscious Beauty Brand: A Conversation With Ulta Beauty, brings Rick Burian, senior manager of supplier diversity from Ulta Beauty, to retailers. Additional sessions include Conscious Beauty's Glow Up: Merchandising for Values & Results-Driven Shoppers and the Glow Conscious Beauty Pitch Event, highlighting the top beauty and wellness innovators who will pitch their products and initiatives to a panel of CPG experts for a chance to win a brand-building prize package.
Additional leading retail establishments that will be featured in Newtopia Now programming include Fresh Thyme, Bristol Farms, PCC Community Markets, Thrive Market, Pop Up Grocer and more.
Registration for Newtopia Now, Aug. 25-28, is now open, but space is limited. To secure your spot and to learn more about the event, please visit www.newtopianow.com.
About New Hope Network
New Hope Network is a leading authority in the healthy lifestyle products industry, offering solutions for the complete supply chain from manufacturers, retailers/distributors, service providers and ingredient suppliers. Through its comprehensive portfolio of content, events, data, research and consultative services, New Hope Network is dedicated to fostering a prosperous, high-integrity CPG and retail ecosystem that promotes health, joy and justice for all people while regenerating the planet. For more information, visit www.newhope.com.
About Informa Markets
Informa Markets, a subsidiary of Informa plc (LON:INF), creates platforms for industries and specialist markets to trade, innovate and grow. With a global reach and a diverse portfolio of verticals, including Pharmaceuticals, Food, Medical Technology and Infrastructure, Informa Markets connects buyers and sellers worldwide through face-to-face exhibitions, targeted digital services and actionable data solutions. For more information, visit www.informamarkets.com.
Media Contact
pr@newhope.com
Retail Buyers and Brands to Chart the Future of Conscious CPG at Inaugural Newtopia Now Event
Featuring “Buyerside Chats,” thematic neighborhoods, cutting-edge content, relationship-building events and more, Newtopia Now complements Expo West and is designed to deepen relationships between buyers and brands in the $300B market for natural, nutritional, organic, regenerative and related healthy lifestyle products.
This promotion first appeared in New Hope Network
Consumers from Gen Z on up are becoming more and more aware of the concept of “health span” over “life span.” They are asking themselves not just “how long am I living,” but also “how long am I living well?”
As such, demand for healthful, conscious products continues to surge. From a market estimated at $97 billion in 2007, consumer sales of natural, organic and better-for-you products have tripled to more than $300 billion in 2023, according to market research data published in March 2024 by New Hope Network.
The challenge for retailers and brands is how to continually innovate to meet the growing demands of health-minded and environmentally conscious consumers.
For retail buyers, discovering innovative, commercially appealing products and building lasting relationships with their customers and brands are paramount for success. For conscious companies, finding meaningful, authentic ways to connect and foster relationships with buyers and consumers is key to the growth of their brands.
Enter Newtopia Now, set for Aug. 25-28, 2024, in Denver.
Presented by New Hope Network, producer of Natural Products Expo West, the world’s largest natural products industry trade show, Newtopia Now is a decidedly different experience designed to directly connect buyers and brands in a more intimate, interactive and future-forward setting.
After Boom and Bust, Could Hemp Market Be Stabilizing?
This article first appeared in the May 2024 issue of Presence Marketing’s newsletter.
By Steven Hoffman
Could the hemp industry be on the cusp of a turnaround? After several years of volatility for U.S. hemp growers, prices and acreage in many states are beginning to stabilize or are rising modestly, according to the National Hemp Report, published by the U.S. Department of Agriculture (USDA) in April 2024.
According to the USDA, the value of U.S. hemp crop production in 2023 totaled $291 million, up 18% from 2022. Based on a survey sent out in January 2024 to producers across the country as part of USDA’s national agriculture census, the report shows signs of renewed market growth and improved on-farm efficiencies. “There was the big boom, then the big falloff, and this year everything is sort of leveling out,” Joshua Bates, a USDA statistician who wrote the landmark National Hemp Report, told MJBiz Daily.
“The hemp industry is stabilizing into its various categories including: 1) cannabinoids, nutraceuticals and flower; 2) food, feed and nutrition; and 3) fiber and industrial materials and applications. At this time, a much clearer picture is emerging as to where these categories can end up over the next three, five and ten years,” said Morris Beegle, publisher of Let’s Talk Hemp and producer of NoCo Hemp Expo, the leading trade show and conference for the hemp industry.
“The past several years posed significant challenges, starting with the pandemic’s onset and exacerbated by the federal government’s regulatory ambiguity regarding CBD and hemp-derived cannabinoids. Add to that burdensome regulations imposed on farmers endeavoring to cultivate hemp fiber and grain – crops that deserve equitable treatment akin to any other commodity. Such circumstances deter participation in this budding industry. What we truly require are coherent federal regulations applicable universally, instead of disjointed state-level initiatives that render the industry vulnerable and unsupported,” Beegle said.
Recovery on the Horizon
Production of industrial hemp for food, fiber and flower took off after it was legalized in the 2018 federal Farm Bill. In the years before the Covid pandemic, hemp acreage was on the rise, entrepreneurs and investors flocked into the market, and there was an explosion in the number of CBD and other hemp-related brands.
However, since 2020, the market for products made from hemp (defined as containing less than 0.3% THC) experienced a significant downturn, sparked by the pandemic and made worse by a lack of regulatory consistency over CBD and other hemp-derived cannabinoid compounds from the U.S. Food and Drug Administration (FDA) and state regulators. Investors pulled back. Brands did everything they could to survive; some didn’t. Overproduction during this time, too, led to steep drops in the price of hemp. As a result, hemp acreage plummeted from an estimated peak of 37,000 acres harvested in 2020 to a little more than 19,000 acres harvested in 2022.
Now, according to USDA’s hemp report, overall hemp acreage harvested in 2023 increased 21% to a total of 23,475 acres, signaling a potential turnaround in the market.
Hemp flowers for CBD and other hemp-derived cannabinoids -- including the intoxicating compounds Delta 8 and Delta 9 – dominated the market in 2023. While flower acreage remained relatively flat at approximately 7,000 acres in 2023, flower producers experienced an income gain of 35%, according to USDA data. Of the $291 million in market value for hemp in 2023, $241 million of that income came from hemp flowers. However, based on regulatory and safety concerns around Delta 8 and other hemp-derived psychoactive compounds, a number of industry observers feel this growth may be unsustainable, as lawmakers could severely limit the sale of these products.
Speaking of the hemp flower sector, economist Beau Whitney of Whitney Economics said, “It is quite possible that the cannabinoid industry has peaked. The excess inventories are mostly depleted and there is not enough acreage, in our view, to backfill with enough supply to sustain the level of sales experienced currently. This is a mistake by legislatures and regulators and now opens the door up for cheaper, but potentially lesser quality imports,” he cautioned.
Hemp grown for fiber – used in textiles and industrial applications – accounted for 52% of all hemp acreage harvested in 2023. While acreage grew, USDA reported that prices dropped and farmers brought in less income. However, says Whitney, “Hemp fiber is where we are forecasting significant growth in the short term, while cannabinoids and grains get sorted out. Hemp for plastics and automotive are already established in the global marketplace and are expanding in the United States. Hemp as a construction material is also increasing, but that growth has been somewhat sluggish in its initial ramp-up.”
Regarding hemp grown for food and grain, Whitney remarked, “The food industry is pretty steady. One major game changer would be FDA approval for hemp grains as an animal feed. It appears that the FDA is setting up unrealistic requirements for cannabinoid content in feed, so much so that consumers/animals would have less strict requirements for heavy metals and poisons than CBD content. There is a huge market for hemp grain internationally, but other supply chain issues and geopolitical tensions are impacting expansion efforts by U.S. hemp operators.”
According to USDA’s National Hemp Report, hemp grown for grain accounted for 17% of all hemp acreage harvested. Canada and China remain the world’s leading countries for hemp grain production, yet, as plant-based foods become more popular, U.S. growers stand to benefit from opportunities in growing hemp for food, as it is one of the richest plant-based sources of protein, essential fatty acids and other key nutrients.
“The use of hemp in automotive, pulp and paper (packaging), and building material applications are all increasing in the pace of growth,” Whitney added. “The major headwind is the narrative that hemp is a drug. The lack of awareness and education by policymakers on the potential of hemp is its limiting factor. Policymakers are using a sledgehammer instead of a scalpel when making hemp policy, and it’s having a ripple effect throughout the industry from an operator, investor and infrastructure perspective,” he said.
Stuck Between FDA and the MJ Industry
“There are two big battles going on in Washington, DC, right now. One is the hemp industry against the FDA. The other is hemp vs. marijuana,” observed Jonathan Miller, General Counsel of the U.S. Hemp Roundtable, the hemp trade’s leading advocacy and lobbying group.
“We’ve been trying to get the FDA to regulate CBD and other extracts. First, they said they were working on it and now they say they need congressional authority. It’s a game of pointing fingers – Congress says it needs guidance from FDA, and FDA says it needs direction from Congress, so we’ve got a stalemate. However, there has been a lot of congressional and public pressure on FDA to act, so that may be a reason why the agency is talking to us now,” Miller said. “We would love to see something resolved this year; there is talk of an interim step where Congress could potentially pass a law to validate existing state programs in the absence of consistent federal regulations. The Farm Bill may not happen until next year; meanwhile our efforts to find a vehicle for this compromise will continue.”
And, Miller said, “As always, we advise companies to act like they are being regulated by the FDA as a dietary supplement or a functional food and beverage product, and to operate within those regulations.”
In referring to competition with operators in the marijuana space, Miller said, “Regarding the marijuana industry, it is not monolithic, but there are a growing number of organizations that have made it their objective to kill the hemp industry as a means to capture competitive gain. This includes ATACH, the American Association for Hemp and Cannabis – though there are no hemp members – and the US Cannabis Council. Both have introduced plans that they would like to see in the Farm Bill to federally criminalize any hemp product that has any level of THC in it. That would criminalize all but CBD isolates,” he said.
“We are fighting both in the public eye and behind the scenes right now, and there’s a big battle going on in California in this regard. This is a threat we have to watch from the left flank. We are hopeful that any effort like this will die in Congress, but we are not banking on it; in fact, we are working very hard to prevent it. Just last week, we met with 55 different members of Congress and staff to discuss these issues and to present the hemp industry's position,” Miller added.
“All sectors of the hemp industry are growing, with the cannabinoid sector growing rapidly, to the point where it is outpacing the marijuana industry,” observed cannabis industry attorney Rod Kight of Kight Law. “The opportunities exist for nimble companies that are willing to take the time to navigate the rapidly evolving regulatory landscape and who can pivot as needed when regulations and markets change. I have hope that hemp can lead the path to true and comprehensive cannabis reform.”
FDA’s Position
When asked if the FDA could envision a scenario in which it would allow the sale of CBD as a dietary supplement without congressional action, Patrick Cournoyer, Senior Science Advisor with the FDA replied with the following:
“The FDA has concluded that the existing regulatory framework for dietary supplements is not appropriate for CBD. Given the available evidence, it is not apparent how CBD products could meet the safety standard for dietary supplements. For example, we have not found adequate evidence to determine how much CBD can be consumed, and for how long, before causing harm. Therefore, we do not intend to pursue rulemaking allowing the use of CBD in dietary supplements.”
Cournoyer’s office referred to FDA’s statement from January 2023, where the agency concluded that “existing regulatory frameworks for foods and supplements are not appropriate for cannabidiol,” and that it will work with Congress on “a new way forward.”
Added Cournoyer, “The FDA supports sound, scientifically based research into the medicinal uses of drug products containing cannabis or cannabis-derived compounds and will continue to work with companies interested in bringing safe, effective, and quality products to market.” Cournoyer referred to guidelines published on FDA’s webpage, “FDA and Cannabis: Research and Drug Approval Process.”
In addition to food, supplements and drugs intended for human consumption, FDA has regulatory oversight of animal feeds. Regarding the use of hemp in animal feed, an FDA spokesperson said, “After comprehensive review of data submitted by a sponsor, in January 2024, the FDA recommended to the Association of American Feed Control Officials (AAFCO) that a proposed ingredient definition for hemp seed meal in the feed of laying hens be included in the AAFCO Official Publication. The FDA has not reviewed any other submissions for the use of hemp seed or hemp seed derived ingredients in animal food.”
Wendy Mosher, VP of the Hemp Feed Coalition, told AgWeb in January 2024 that allowing hemp seed meal into feed mixes for laying hens marks the first hemp feed ingredient to get federal recommendation and interest by AAFCO. “You can’t have a commodity crop without a feed opportunity for that crop,” Mosher said.
In the absence of federal approval of hemp in animal feed, Texas legalized hempseed oil and hempseed meal for chickens and horses in 2023. Kentucky in 2022 allowed a limited amount of hempseed meal and hempseed oil as ingredients in the diets of layer, broiler, and breeder chickens. Montana legalized hemp or hemp-derived products in 2021 for “non-consumption animals,” i.e., pets, specialty pets, and horses, reported Hemp Benchmarks. However, in December 2023, New York Governor Kathy Hochul vetoed bills to allow hemp seed in animal feed, citing the need for more information.
While federal lawmakers and regulators move slowly in allowing the use of hemp in animal feed, USDA is providing grants to universities and others to research the potential use of hempseed, meal and biomass in animal feed. For example, researchers at Prairie View A&M University in Texas in 2023 received a $300,000 grant from USDA to explore hemp as an alternative grain in animal feed.
Building with Hemp
Building with hemp in the United States is increasing year over year, said Jean Lotus, Editor and Publisher of HempBuild Magazine. “Prices on building-grade hemp hurd remain high and the supply chain is neither complete, nor consistent. But hemp building in the United States is capturing the imaginations of developers and motivated owner-builders. Notable projects this year include a multi-unit tip-up hempcrete panel project in Newburyport, MA, and successful attainable hempcrete housing built by the Lower Sioux of Morton, MN,” she said.
“People may say hemp is dying, but it also recently received approval from the IRC (International Residential Codes) for the use of hempcrete in the U.S. for commercial construction,” noted James Johnson, Principal of JJGro in San Antonio, TX. Johnson, who discovered hemp’s healing properties while dealing with PTSD after 21 years of service in the U.S. Air Force, consults with hemp producers throughout the country. “Hemp is starting to be considered as part of the mix in mainstream commercial construction. It’s not going to replace traditional materials, but it will capture between 2% and 5% of the building construction space, Johnson predicted.
Lotus added that research in hemp building materials received significant funding in the past year, including $1.9 million from the U.S. Army; $1.5 million from the Department of Energy; and $1.1 million from the New York State Energy Resource and Development Authority (NYSERTA).
“Meanwhile, the regulatory environment for hempcrete's superior insulation and carbon sequestering properties is improving,” she said. “In April 2024, the U.S. Department of Energy released a roadmap to decarbonize the U.S. building industry. The report, Decarbonizing the U.S. Economy by 2050: A National Blueprint for the Buildings Sector, emphasized building with biogenic, regenerative materials. Hemp-lime and hemp-batt insulation perfectly fit the bill! With new companies developing carbon credits for hempcrete projects, there is more excitement and investment opportunity to come.”
“We are seeing increased interest in hemp across the board from consumers, universities, and large corporations wanting to utilize hemp as an input or ingredient. I think there's opportunities in every sector for savvy, smart business operators. While cannabinoids provide the biggest boom/bust potential, there are long term opportunities in the fiber and grain markets as the regulatory framework within those categories will eventually get to a point of any other commodity crop, for the most part,” said Morris Beegle.
“As to headwinds, it's still all political and bureaucratic,” Beegle added. “The industry needs to be unified in its voice to combat correctly, and I think we have made real progress the last few years with the vast majority of the ‘real’ industry aligning on messaging and action. We’re also seeing progress and persistence of the industry in delivering on the promise of hemp as an alternative resource to many of the world's current and future problems. The future is bright regardless of what some in the media, and some on social media, would like people to believe.”
Save the Date: NoCo Hemp Expo, Aug. 10-12, 2025, Estes Park, CO
Newtopia Now, August Launch Event from New Hope Network, Unveils First Reveal of Neighborhood Concept
Focus on curated brand-to-buyer experience and enhanced matchmaking offers opportunities for deep relationship building, connecting brands to key retailers, press and investors.
DENVER (April 25, 2024) – Newtopia Now, an entirely reimagined event from New Hope Network, centered around conscious consumer packaged goods (CPG), is launching August 25-28, 2024, at the Colorado Convention Center in Denver. Colorado is widely recognized as the burgeoning hub for health and wellness and sets the stage for the latest leading influence in conscious CPG discovery and connection. Newtopia Now focuses on curated product discovery, insightful content and deepened connections that evolve the buying experience from transactional to relational. Its "neighborhood" concept creates a new format for exploration of products, brand activations and content, offering greater access to the emerging brands and ideas defining the future of CPG.
The dynamic event will highlight influential industry trends key to retail buying decisions, including innovations in food, nutrition, agriculture, sustainability, multicultural products, and conscious beauty. The programming will feature sessions such as Buyerside Chats — which provide an opportunity for exhibiting brands and leading retailers to discuss product innovations and trends for the year — Retail Insights Workshops, inspiring Newtopia Now Ambassador Talks and a keynote from The Blue Zones' Dan Buettner Plus. In addition, offsite events at top restaurants, Red Rocks, Meow Wolf and more, provide truly one-of-a-kind networking opportunities.
The Market at Newtopia Now is a next-generation trade show product showcase and will be merchandised as a consumer-style marketplace featuring future bestsellers and vital consumer insights where attendees can browse as if shopping in a retail store. Newtopia Now will also offer the most advanced matchmaking platform ever available at any New Hope Network event. Conscious Connections, the matchmaking experience at Newtopia Now, will ensure productive, fruitful and authentic connections through a data-driven process fueled by detailed metrics and product attributes from Beacon Discovery™, the only discovery and engagement platform for natural products brands and retailers.
“In launching Newtopia Now, we are building the exclusive platform where relationships will flourish, time is honored and the experience is designed with purpose,” shares Carlotta Mast, Senior Vice President of New Hope Network. “By leveraging rich technology in discovery platforms that is not accessible anywhere else, partnered with award-winning proprietary consumer insights driving the content, this brand-new event will offer unparalleled perspective and connection to the leaders and key voices in the industry that everyone is trying to reach to expand, grow, and create business. Newtopia Now champions conscious health and the future of CPG in a way that has never been done before, forging pathways that unite passion, purpose and progress.”
“Newtopia Now offers a unique experience for our team of buyers to become even more connected and interactive with leading brands. We are excited to go to an event that helps us maximize our productivity with our customers and allows us to get new and exciting first-to-market products for our stores,” says Darren Viscount, Senior Category Manager at Bristol Farms.
The brand-new "Neighborhood" format will host natural, organic and purpose-driven products in four unique mission-driven locations: Thrive, Represent, Regenerate and Glow.
Thrive serves as the ultimate destination for the latest in conscious CPG health and vitality in food, beverage and nutrition. From the next generation of supplements to a wide assortment of plant-based, organic and better-for-you foods, Thrive embodies the future of human health and nutrition.
Represent spotlights diversity through a vibrant array of multicultural products, founders and ideas worthy of celebration. Represent will feature vibrant multicultural offerings and CPG brands across all categories from underrepresented communities, supporting development of meaningful relationships with mission-driven brand leaders from women-, LGBTQ- and minority-owned companies.
Regenerate presents a plethora of sustainable and regenerative products and business models making a positive environmental impact, enabling exploration of the best new thinking in environmentally friendly CPG. Brands committed to regenerative agriculture, sustainability and social impact will be featured in Newtopia Now's Regenerate Neighborhood.
Glow captures the future of conscious beauty, women's health and holistic wellness, highlighting a range of companies that support the evolving generation of conscious shoppers. Brands in Glow will feature the latest cosmetics, skin care, hair care, nutricosmetics and wellness products.
Brands confirmed to participate include Trace Minerals Research, Food For Life Baking Company, Liquid I.V., Harmless Harvest, Dr. Bronner's, Lily of the Desert, Ancient Nutrition and Flax4Life among many others. Visit www.newtopianow.com to view additional exhibitors.
Registration is open for Newtopia Now, August 25-28 at the Denver Convention Center. Space is limited. For more information and to register, visit www.newtopianow.com.
About New Hope Network
New Hope Network is at the forefront of the healthy lifestyle products industry. With solutions for the complete supply chain from manufacturers, retailers/distributors, service providers and ingredient suppliers, the network offers a robust portfolio of content, events, data, research and consultative services. Through all its actions, New Hope Network aims to cultivate a prosperous high-integrity CPG and retail ecosystem that creates health, joy and justice for all people while regenerating the planet. For more information visit www.newhope.com.
About Informa Markets
Informa Markets creates platforms for industries and specialist markets to trade, innovate and grow. We provide marketplace participants around the globe with opportunities to engage, experience and do business through face-to-face exhibitions, targeted digital services and actionable data solutions. We connect buyers and sellers across more than a dozen global verticals, including Pharmaceuticals, Food, Medical Technology and Infrastructure. As the world's leading market-making company, we bring a diverse range of specialist markets to life, unlocking opportunities and helping them to thrive 365 days of the year. For more information, please visit www.informamarkets.com.
Media Contact
pr@newhope.com
FreshPure Waters Continues to Make a Splash in the High-Quality Water Refill Market by Acquiring Its Second Company in Five Months
SANTA FE, N.M. (April 16, 2024) – FreshPure Waters, which provides superior bulk water refill options for consumers across the United States, is enlarging its national footprint through the strategic acquisition of Aqua Solutions, a longtime vendor of high-end water-refill machines in grocery stores.
Aqua Solutions is the second bulk-water provider FreshPure has procured in the last five months. In October 2023, FreshPure completed a strategic acquisition of Salt Lake City-based Arctic Mountain, marking a significant step in FreshPure’s journey toward sustained growth. FreshPure products are now available in 43 states. The acquisition of Aqua Solutions significantly strengthens FreshPure’s service capabilities and network in the Western U.S.
“We are excited to welcome Aqua Solutions into the FreshPure Waters family. Aqua Solutions’ talented team and quality offerings align perfectly with our mission to provide pure, refreshing water solutions that customers can trust. By combining our companies, we can leverage complementary strengths to deliver an unmatched customer experience,” said FreshPure President Chris Donnelly.
Both FreshPure Waters and Aqua Solutions are at the forefront of providing the cleanest drinking water solutions while reducing environmental waste. FreshPure’s state-of-the-art, purified bulk water vending machines can be found in natural, specialty and conventional grocery retailers coast to coast.
About FreshPure Waters
FreshPure Waters was established in 1991 and is headquartered in New Mexico. It distinguishes itself by offering a comprehensive range of water types, including Reverse Osmosis, Deionized, and Alkaline options. Learn more at www.freshpure.com and follow FreshPure Waters on LinkedIn, Instagram, Facebook and YouTube.
Media Contact
Steven Hoffman, Compass Natural, steve@compassnatural.com, tel: 303.807.1042
Macalat® Earns NEXTY Award for Revolutionizing the Chocolate Industry With Innovative Mushroom Mycelium Technology
The certified organic brand of chocolate has introduced a groundbreaking new category in chocolate bars: Organic Sweet Dark Chocolate
DURHAM, N.C. (April 10, 2024) – Macalat has won the 2024 NEXTY Award for the creation of a new category of chocolate: Organic Sweet Dark Chocolate. The NEXTY Awards, presented by New Hope Network’s Natural Products Expo, celebrate the most innovative, inspiring and trustworthy products in the natural products industry. Macalat was among 154 finalists – out of 1,500 companies nominated – for the Expo West 2024 edition of the awards.
Transforming the dark chocolate experience
Macalat, a visionary, certified organic brand of chocolate, has introduced a groundbreaking new category in chocolate bars: Organic Sweet Dark Chocolate. This first-ever cacao product addresses the long-standing issue of dark chocolate’s bitterness and astringency, making nutrient-dense, 70% dark chocolate more appealing to a wider range of consumers. By harnessing the magical power of a mushroom mycelium-derived flavor modulator, Macalat has transformed the dark chocolate experience, offering an authentic, sugar-free sweet dark chocolate that reveals the natural deep flavors of cacao while eliminating any bitter notes and unpleasant mouthfeel.
The Bitter Dilemma
Seventy percent dark chocolate has gained popularity due to its numerous health benefits, but many people don’t like its bitter taste and astringent mouthfeel. Currently, only a small percentage of chocolate is consumed as dark chocolate. This poses a challenge for organic chocolate producers seeking to create dark chocolate that is both nutritious and enjoyable. Traditional methods of masking bitterness with excessive sugar and/or by adding milk are not in keeping with a healthy lifestyle. Likewise, artificial sweeteners are falling out of favor with today’s health-conscious consumers. (There are no organic artificial sweeteners.)
The Role of Mushroom Mycelium
Macalat’s breakthrough lies in its integration of MycoTechnology’s ClearIQ™ mushroom mycelium-derived flavor modulator, an incredible natural solution for overcoming the bitterness and astringency commonly associated with dark chocolate. Produced using organic mushroom mycelial fermentation, this natural flavor modulator effectively blocks the perception of astringent and bitter flavors. This binding process allows the full flavor spectrum of cacao to emerge, unveiling the sweet, complex and nuanced tastes that until now lay hidden beneath the bitterness.
Unveiling the True Flavor of Cacao
Bitterness, astringency and other off-notes can mask the delicate and delicious flavors within high-quality chocolate. By using mushroom mycelium flavor modulation, Macalat reduces these overpowering sensations, resulting in a brighter, cleaner and clarified flavor. This technique not only enhances the taste experience but also preserves the integrity of other superfood functional ingredients frequently looked for in today’s chocolate. The use of mushroom mycelium-flavor modulator as a natural, bitter blocker and flavor clarifier sets Macalat apart as a pioneer in the cacao industry.
Health and Taste Harmony
Today’s consumers increasingly seek nutrient-dense foods that don’t compromise on taste. Macalat’s use of mushroom mycelium flavor modulator addresses this demand by neutralizing the bitterness associated with fermented cacao, eliminating bitter notes from the tongue and the mouth in general. This remarkable mycelium flavor modulator enables Macalat to create sugar-free dark chocolate that delivers a richer, smoother and more vibrant cacao flavor. By harmonizing healthfulness and taste, Macalat appeals to the modern chocolate connoisseur and the emerging health-conscious superfoodie.
The Consumer Perspective
According to the IFI Food and Health Study 2020, a staggering 88% of consumers prioritize taste when making purchasing decisions, surpassing factors such as price, healthfulness, convenience and environmental impact. Macalat recognizes this priority and has successfully developed a chocolate that caters to the discerning taste buds of consumers while offering a healthier alternative. With Macalat Organic Sweet Dark Chocolate, the need for excessive sugar and milk to counteract bitterness is eliminated, aligning with the evolving consumer trend of reducing sugar and dairy intake.
Embracing Culinary Science and Innovation
Macalat’s approach to creating a new category in the chocolate world is rooted in culinary science and bears a touch of mushroom magic. The brand’s commitment to culinary innovation, combined with a deep understanding of the science behind flavor, has paved the way for this groundbreaking cacao product. By leveraging transformative superfood ingredients, Macalat assures great taste and great nutrition, fulfilling its mission of providing food that is both delicious and beneficial.
Collaboration With MycoTechnology
To achieve this remarkable breakthrough, Macalat partnered with MycoTechnology, an industry leader specializing in mycelia-based solutions. The collaboration between Macalat and MycoTechnology has enabled a revolutionary dark chocolate experience. By incorporating the magic of mycelium, Macalat demonstrates the power of interdisciplinary cooperation and innovation in the pursuit of an exceptional new chocolate category.
Conclusion
Macalat Organic Sweet Dark Chocolate represents a significant innovation in the $140 billion global chocolate trade, of which dark chocolate accounts for $50 billion. Macalat is in the vanguard of a new chocolate category. By leveraging the unique properties of mushroom mycelium, Macalat has eliminated the bitterness and astringency that often deter consumers from enjoying wholesome dark chocolate. This breakthrough not only enhances the flavor experience but also aligns with the growing demand for healthier, tastier alternatives. Macalat’s dedication to culinary science and its collaboration with MycoTechnology exemplifies the brand’s commitment to delivering a sweet, innovative, great-tasting and nutrient-dense 70% dark chocolate that is sugar-free. With Macalat, the future of chocolate is not only sweeter but also brighter, cleaner and more satisfying without sugar or the bitterness and astringency that sugar seeks to hide.
About Macalat
Developed by organic taste guru John Troy, known as the Organic Taste Wizard in the organic food trade, Macalat represents years of meticulous research and development, with novel production protocols. Seeing how valuable this delicious innovation is for helping consumers solve the problem of eliminating sugar from their diet while also enjoying a healthy, sweet treat, Lisa Ellis assumed the role of president of The Macalat Company in 2022 to help make Macalat more accessible to ingredient-conscious consumers. Macalat is available online and on Amazon and in stores including Earth Fare, Weaver Street Market, Bulldega Urban Market and Green Sage Café. Learn more here or visit us on Facebook.
Media Contacts
Lisa Ellis, The Macalat Company, lisa@macalat.com, tel: 919.606.1754
Steven Hoffman, Compass Natural, steve@compassnatural.com, tel: 303.807.1042
Natural Industry Growth Accelerates
By Steven Hoffman
The state of the natural and organic products industry is strong, according to the latest market research presented in a keynote seminar at Natural Products Expo West in March and compiled by Nutrition Business Journal (NBJ), SPINS and others. Reporting on figures that show a tripling of consumer sales from $97 billion in 2007 to more than $300 billion in 2023, New Hope Network’s SVP Carlotta Mast had this to say:
“The big picture is that we are really becoming a force as an industry. We are no longer niche. We are very mainstream and we have a lot of power and influence ... so, our industry continues to grow. It grows through recessions, it grows through Covid, it grows through challenges and all headwinds.” And … “that growth is accelerating,” she noted.
“Between 2007 and 2012 … we added $40 billion in consumer sales. That growth doubled to $80 billion added between 2018 and 2023. And we're anticipating continued accelerated growth for our industry as consumers increasingly of all generations demand healthier, better for you, more sustainable, more regenerative, natural, organic and conscious products,” Mast commented.
Despite the roller coaster ride for many in the industry through the pandemic years of 2020 - 2023, Mast projected that sales growth will pick up again in 2024 to about 5.1%. From a category perspective, natural, organic and functional foods and beverages make up the largest share of the industry, followed by dietary supplements and then natural living, which includes beauty and pet care, personal care products and household products, according to NBJ data.
While e-commerce sales spiked during Covid, making it one of the industry’s fastest growing channels, Mast said, “It's important to note, despite all of this growth with e-commerce, that brick and mortar retail is still by far the dominant driver of sales for our industry. And e-commerce only makes up about 8% of total sales while the mass market channels are really where the vast majority are rung up. And this is why we're seeing many non-shelf brands now focus on migrating to the right retail shelf. So, they're moving from ‘D to C’ to retail.”
Natural & Organic Sales Are Outpacing All Other Products
"So, not only do we have this tailwind of natural products growth ... but natural products are also outpacing the sales of all other products," Kathryn Peters, Director of Industry Relations for SPINS, reported at the Expo West seminar. "Natural products have continued to accelerate, but let's think about what was happening around mid-2022. Difficult financial market prices were going up like crazy. We saw mainstream products sales boosted literally by the inflation, by the price increases. We also saw consumers having to make some tough trade-offs. Some were having to shift to conventional brands or private label. We even saw a lot of industry outsiders ... about a year ago that were saying, 'Did natural hit its peak?'. But guess what? We talked about the optimism even with what was going on at that time, and we said this is a resilient industry. We have the agency to continue to change and make the difference."
Peters also noted that sales of organic products have outpaced market growth. “Back during some of the tough inflationary times, the prices were going up, people were worried about what was going to happen to organics. I’m thrilled to say … organics are outpacing non-organic across the store … both in dollars and units.” In categories such as soda – “ones that traditionally might not be thought of as heavy organic,” Peters noted that sales of organic soda are outperforming their conventional counterparts.
“Organics are just growing everywhere and it's because shoppers trust organic. In fact, if you look at sentiment since 2019, organic and non-GMO have the strongest consumer mindset and comfort and trust. And we particularly see not only are all shoppers starting to trust and look for organics, the younger shoppers … really trust this seal,” said Peters, referring to the growing purchasing power of Gen Z consumers.
Regarding food prices, “While there's certainly some bright spots on the horizon, we know consumers are still really frustrated about high prices. It's all over, even TV now, we heard it in the state of union … it's become a political topic as well. Consumers are frustrated and that's putting a lot of pressure on brands and retailers,” Peters said.
“Prices aren't going up much more, but they're still higher. And then you see dollars on promotion going up because we're giving a shot in the arm with promotion rather than everyday price, and we see discounts are higher. That's a tough environment to operate in. And, so we see it's going to take some time for these pressures to really release … we're going to continue to see throughout 2024 a lot of focus on promotion and how do we get in a place that we can improve price perception and, honestly, a lot of stress between retailers and brands on how to make that work effectively,” Peters said.
Market Maturity Puts Focus on Profitability
According to Nick McCoy, Managing Partner of Whipstitch Capital, as the natural and organic products industry matures, brands and investors are looking more closely at profitability and not just growth.
"This industry has basically grown from ... a very nascent niche industry to something that is now actually a mainstream thing. We have a fully blown financial system. Brands are much bigger ... We started 10, 15 years ago, companies with $10 million in revenue were getting bought by big strategics (i.e., larger companies), and they were getting bought in competitive processes. Well, the number of companies has ballooned and as innovation has grown and become essentially part of the grocery store, now it's about $100 million in food and beverage,” he pointed out.
“As we mature, just like every other mature industry out there, profit is what drives value and it's more and more important for us. What are the key enablers? Increasing integration of supply chain, asset light or heavy, omnichannel to increase the brand headroom, marketing efficiency using data. Data has gotten so strong and it's really great for both internal marketing, for investors, everything,” McCoy said.
“Conscious products have become mainstream. They used to be a section in the grocery store and now they are the grocery store. We have three successful business models that you can do. You can get bought off of EBITDA with profitability. You can grow and still get bought off of a multiple of revenue for fast-growing revenue companies. And now there's also attractiveness of multi-brand companies getting bought off EBITDA. And we have some of the best rising tides that are essentially tailwinds. We have sustainability, we have wellness, social responsibility and appeal to a multicultural customer base. And we have the consumer voting dollars to drive these tailwinds to help grow our brands to make the world a better place.”
McCoy added that independent brands are driving growth. M&A is accelerating, he said, “especially as interest rates come down and confidence goes up and this unit volume decline stabilizes. And with restaurant volume up, we're going to win both ways. If we get a little bit of a recession, people go to leave restaurants and they cook more at home. If we have a buoying economy, we're going to return to normal just as a normal course when you look at the line historically. So, the fundamentals are very, very strong looking forward to 2030.”
Health Span vs. Life Span
Pointing to books about health and longevity and documentaries such as Netflix’s Secrets of the Blue Zones, both McCoy and Peters agree that a growing consumer awareness of “health span” over “life span” is one of the trends that will to continue to drive sales in natural and organic products.
“The definition between health span and life span is essentially health span is the number of years you live where you're not inhibited by some kind of chronic disease. And the gap is about nine years between that and actual lifespan,” McCoy explained. “And people are doing things, changing their diets and everything … it's food, it's wellness, it's community, it's exercise. People are more and more conscious about not just how long am I living, but how long am I living well?” he said.
Added Peters, “There's just this revolution of how we're learning about health and then making actionable changes in our lives to improve this long game idea. This impacts our industry because consumers say the food, the beverages, the supplements that we ingest play an outsized role into the incorporation of wellness in our lives.”
Watch the State of the Natural & Organic Industry full video presentation here
Learn More:
- NoCo Hemp Expo, April 11-13, 2024, Estes Park, CO
- Newtopia Now, Aug. 25-28, 2024, Denver, CO