Medieval Retail
Posted - February 1, 2006
Innovative Retail with Medieval Spirit:
Revival of Trust and Fair Trade also Applies to Cosmopolitan Urban Centers
By Sofia Garcia Cortes - as printed in O.W.N. Spring 2006
Who would have thought that an attractive new retail business in Berlin would base its identity on commerce during Medieval times? In a move that shows a distinct rejection of Disneyland and Wal-Mart values, Die Zunft, a guild-like market, will open in the German capital in late 2006.
In a 115 year old building, that is currently the site of a dormant slaughterhouse, Die Zunft is envisioned to become a buzzing market, full of different vendors. Here discerning consumers will be able to shop for quality handicrafts, sustainable products, and services under responsible, organic or fair trade standards.
The market takes for its theme “Zunfts”, the German word for guilds. In Medieval times, guilds were groups of artisans who gathered to sell their works. These organizations also sought to regulate the price and quality of products such as weaving and ironwork. “In the old days, consumers would visit guilds to order their goods, exchange views with the manufacturer and get a unique pair of shoes, a piece of crystal or a freshly baked bread”, says Christoph Hinderfeld, managing director of Die Zunft AG.
Die Zunft’s vision is inspired by a hope to free manufacturers and consumers from the noisy, sometimes mindless, over-promotion that makes the engine of the modern retail world roar. “This will not be a Disneyworld”, says Hinderfeld. “People will be carefully selected because the place has to be able to develop a real community feeling. We want to bring back the connection between manufacturers and direct end-users”, he explains. “Today, you do not know if the goods you buy were made by kids or hungry people working under terrible conditions. Consumers have lost the sense of value for quality and good craftsmanship. We are buying lots of cheap-quality things that we do not need - they soon end up in the garbage”.
As for Die Zunft’s list of vendors, the relevant criteria for admission are not what vendors produce, but rather how they produce it. In general, companies in sustainable business will be welcome to present their goods at the guild. Businesses will include an organic bakery, an organic supermarket, ateliers and boutiques with handcrafted goods like shoes, clothing, painted porcelain and glass-blown objects.
At the center of the 15,000 square meter venue will be a restaurant that is expected to be the heartbeat of Die Zunft. Customers will be able to visit a bar, a winery and a cafe, too.
At Die Zunft’s workshops, consumers will be able learn about the production of goods, like woven textiles, dresses and embroidery. Consumers will be able to take instruction in the skills they see on display, including cooking lessons. Die Zunft will also have a TV studio for its own programming. Perhaps the biggest reason that Die Zunft could succeed is that it will cut costs for consumers and manufacturers, Hinderfeld says. Some companies may operate like conventional contracts, but Die Zunft will be an opportunity for small entrepreneurs to offer goods - in a showroom or depot - to consumers.
“We want to offer a small high-end shirtmaker in Italy the possibility to sell his goods in Germany without meeting the demands of the conventional boutiques that would expect him to send all goods on consignment and wait 180 days for payment”, says Hinderfeld.
“This is today’s scenario. The poor tailor has to absorb the cost of the high rent in Kdamm and the expensive interior design of the place and marble floors and high cost in utilities. At the end he also gets all merchandise not sold during that period.” (Editor’s note: the Kdamm is the Fifth Avenue of Berlin.)
Now the great designer brands charge high, but they are also producing in China, perhaps next to a factory of the cheap goods”, says Hinderfeld, whose career in the textiles business fell casualty to globalisation and price-driven markets. “People are paying high prices, but not for the goods and craftsmanship. Instead they are paying for costs that are not related to the real value of the goods”.
While Die Zunft offers a novel retail concept that targets discerning consumers, its very location gives a glimpse into the spirit of the project, too. Many German landmarks require renovation, a cost that the government sometimes finds too expensive. In this case, business has taken on that cost. By reinvigorating an old slaughterhouse in a thriving district of Berlin, Die Zunft is sending a message about the importance of being resourceful, efficient and appreciative of the local environment.
Meanwhile, the historic character of the building itself is likely to intrigue consumers and appeal to a specialized population of artisans whose skills are ages-old.
Die Zunft is one of the largest urban development projects in Berlin. It will generate 5,000 new commuting jobs and 5,000 ‘live-and-work’ positions on site. Die Zunft is located in one of the trendiest areas in town, between Prenzlauer Berg and Friedrichshain, near Alexander Platz, the government district and East Berlin’s Main Train Station.
To attract funding, investors in Die Zunft will receive a tax benefit.
Die Zunft AG, which is behind the concept, plans to develop similar locations in other German cities and possibly in other countries.
For more information contact info@die-zunft.de or visit www.die-zunft.de
Shandiz
Posted - February 1, 2006
Shandiz Expands Reach with Labeling Agreements
By Kristina Loge - as printed in O.W.N. Spring 2006
Shandiz is leveraging private-label agreements to tap into the bulging worldwide demand for organic energy bars.
“Consumer demand for healthier and nutritional snacks is growing”, says Moe Fotovat co-founder of Shandiz headquartered in Canada. “Energy bars perfectly suit current lifestyles. They are convenient, portable, nutritious, and tasty.”
Shandiz has carved a niche as a leading supplier of organic energy bars in natural and GMO-, gluten-, and cholesterol-free under private label. Such agreements enable Shandiz to offer a range of options allowing food companies and entrepreneurs to produce natural and organic bars under their own brand names.
“This is the way to go especially for exports”, says Fotovat. “Under private label, the clients have more freedom to use our products as a way to increase their communications to their clients. They can offer any packaging they want. It is also possible to develop their own snack bar.”
The company exports bars to 22 countries and is testing new markets in Eastern Europe, and Asia. Most Shandiz products are certified Kosher.
Private labeling is a growing trend in the food industry, and it’s particularly popular with supermarket chains, stores, distributors, airlines, hotels and entrepreneurs. It allows a business to take advantage of Shandiz’s quality, expertise and state-of-the-art manufacturing equipment, without the outlay of capital expenditure.
Shandiz assists its private-label partners with packaging, research and development and other services. The Shandiz plant is organically certified by Organic Crop Producers and Processors, Ontario Inc. This certification complies with the standards and regulations for organic products established in both North America and the European Community. The company exhibits in North America’s fairs such as All Things Organic in Chicago.
Gut Reaction
Posted - February 1, 2006
Gut Reaction: Mind the Gap
By Johanna Olarte - as printed in O.W.N. Spring 2006
“The primary seat of insanity generally is in the region of the stomach and intestines”, said the father of modern psychiatry, Dr. Louis Pinel. Just a quaint statement? Not so, says Dr. Natasha Campbell McBride, who runs a clinic in Cambridge (U.K.). She found that many of those suffering from neurological disorders such as autism, attention deficit disorder, dyspraxia and dyslexia usually suffer several disorders at a time and eczema as well.
“I have yet to meet a child or an adult with autism, ADHD/ADD, asthma, eczema, allergies, dyspraxia or dyslexia, who has not got digestive abnormalities”, says Dr. Campbell McBride Matter over mind? Yes, she thought. So she has deeply studied what is described as the Gut and Psychology (GAP) Syndrome. In her book, Gut and Psychology Syndrome: Natural treatment for autism, ADHD/ADD, dyslexia, dyspraxia, depression and schizophrenia, Dr. Campbell McBride shows how the GAP Syndrome develops and how to treat it: eat better.
Only the right kinds and amounts of flora, she shows, let the body absorb the nutrients it needs. Without them, we can ‘starve.’ And attract disease. Dr. Campbell highlights that studies have shown that people often excrete pills and food supplements without them being absorbed by the body. Flora comes first!
Not only Dr. Campbell McBride is interested in gut reactions. Swedish workers at Tetra pack took flora supplements in a study. A control group didn’t. They became sick with stomach and respiratory ailments over twice as the experimental group.
What can we do about this lack of flora? One solution is flora supplements. But with more than 500 types of good bacteria in our gut we carry over two kilos of them in our intestines, floral supplements are only part of the answer. The other part? Natural real food. Pickles. Fermented foods, macrobiotic dishes, sauerkraut, natural and organic quality yoghurt and some cheeses, enrich our inner - and innards! - ecology.
A word of caution: these floral supplements, called probiotics, must be of great quality, fresh and tested. Beneficial bacteria must be alive when you take them. And retailers at natural health stores should get consumers to visit doctors and naturopaths to find out what particular probiotics and supplements they need. It seems that buying just by gut reaction brings but poor results.
Poland
Posted - February 1, 2006
Organic Food Growing Fast in Poland
By Kristina Loge - as printed in O.W.N. Spring 2006
Poland is poised to make itself an important player in the European organic market. The number of green farms has risen quickly over the last few years. In 2003, there were only 2.300 organic farms; a year later the figure exceeded 3.700. In 2005, there were over 7.000. Total area of organic farms reached 160.000 hectares, an increase of 52% during last year. These good news made Poland earn the honor to be Country of the Year at BioFach 2006.
As more organic farms sprout up around Poland, Polish suppliers can expect a growing demand for organic products. Polish consumers believe that organic food is safer than conventional and GMO foods, according to a study by Łuckzka-Bakuła and J. Smoulk among high educated mid to high income consumers. Of the 900 respondents in the study, 80% said they were willing to increase their organic food consumption. Although more than one-third of the respondents correctly defined organic food, 65% don’t know who certifies this kind of food. This implies that the organic sector here, as in other places, will benefit from investment in education-oriented marketing campaigns once the market is ripe for greater inflow of organic goods.
But that is down the road a bit.
Currently, the demand for organic products is low in Poland, an attitude that reflects consumer trust in traditional agriculture, not skepticism of organic. In European countries, the growth of organic sectors is closely connected with consumer’s distaste for sometimes-extensive use of chemicals in agriculture. Polish farmers, however, are believed to use fewer such chemicals, thus giving consumers a higher opinion of non-organic food.
While well informed consumers are open to purchase more organics, the crop of Polish organic suppliers will flourish in the coming years to meet any increased demand. In 2005, about 1% of the 16.2 million hectares that make up the total agricultural area in the nation was farmed organically. That percentage is sure to increase, says Wieslaw Podyma of the Ministry of Agriculture and Rural Development. Many farms are in the first two years of conversion to organic and cannot sell products with organic labels yet. The number of produce farms, in particular, will increase heavily in the coming years and stimulate local and export markets. Also, the supply of fresh fruit, vegetables, milk products and meat is growing constantly. Increased sales of these products are possible especially in wealthier EU countries, where there is demand for Polish agricultural products.
“Poland has suitable agro-environmental conditions for development of organic farming. The soil is not heavily contaminated and mineral fertilizers and chemicals are used infrequently”, says Wieslaw Podyma.
The Polish pavilion at BioFach offers an opportunity to learn and taste a unique display of the products that this hospitable country offers abroad and at a growing number of organic shops restaurants and hotels that begin to sprout in enchanted cities like Krakow, Gdansk and Warsaw.
Rapunzel
Posted - February 1, 2006
Rapunzel’s 30 Years More than a Fairytale
By Wolfgang Dannebaum - as printed in O.W.N. Spring 2006
Last fall, a company called Rapunzel celebrated its 30th anniversary in a three-day festival similar to those described in the fairytales. Like guests flocking to the Prince’s ball, more than 25,000 guests took over the picturesque town of Legau, located in the alpine foothills of Bavaria close to Lake Constance, where the company has its headquarters.
Today, Rapunzel is Europe’s leading brand-name manufacturer and distributor of organic goods, producing over 600 delicious organic products and cooperatively working with thousands of organic farmers in more than 30 countries worldwide.
The festival was actually a fair in which Rapunzel let down its hair. It featured the company and its partner programs. Suppliers and foreign customers attended. A group of 75 stands showcased information on a range of eco-conscious and sustainable topics, from smart energy-saving homes and appliances and natural and ergonomic furniture, to lessons about health, food, music, performances, food and lots of fun for children and grown ups. Guests were attracted by the spirit of fun and cooperation that the company managers have grown among the people they deal with, the company said.
All three of the founders have been working at Rapunzel since 1974. Joseph Wilhelm, Hans-Peter Erlinger and Jennifer Vermeulen are organic pioneers with vision of what a sustainable business should be.
In 30 years, a basic natural food store has developed into a company with 250 employees and annual turnover of 70 million Euro. The company boasts commercial operations in France and the United States. The wide selection of Rapunzel products is available at 2,000-plus natural and organic stores in Germany alone. The company sources for top quality organic and fair trade ingredients from over 30 countries and exports its processed goods to 31 countries in all five continents.
Rapunzel’s assortment of products includes bread spreads, nuts, dried fruits, cereals, grains, grain products, rice, seeds, legumes, pasta and tomato sauces, salad oils and cooking fats, various spices and natural soup flavourings, natural sweeteners, baking ingredients, tasty snacks, chocolate bars and powdered drinks.
The company’s own HAND IN HAND symbol stands for ecological and fair partnership. It identifies fair trade products which originate from ecological agriculture and are sourced directly from the HAND IN HAND partners. The symbol is awarded on the basis of the HAND IN HAND criteria.
Rapunzel believes in giving back to the cooperatives that adhere to sustainable farming practices. It contributes to education, health and environmental programs dedicated to improving the quality of life in local communities.
Ethnic Foods
Posted - February 1, 2006
Ethnic Foods are Rising
By John Coghlan - as printed in O.W.N. Spring 2006
Want to get into a business that’s sure to grow? Try ethnic foods. Ethnic food sales are rising at 14% a year in Europe, according to Datamonitor. In the United States, over the past five years, sales in this food segment have risen 4.9% a year. Of all retail food sales in the US,11.8% correspond to ethnic foods. “We have passed beyond Tex Mex, Chinese and Mexican cuisine”, says Frantz Di Mateo of the Ethnic Food Show in Paris. “Mediterranean, Caribbean and African, kosher and halal food products are selling better than ever”.
Why are consumers turning so much to ethnic foods? In a word, it is demographics. Western Europe, the US and Canada are receiving large numbers of immigrants. Many newcomers open shops and buy their national foods. Some set up restaurants. Non-immigrant consumers usually first savour ethnic cuisines in restaurants. Then these foods come to supermarkets. Indeed, there is where more and more non-immigrant consumers can buy today prepared and ready-to-eat foods. Now you can even find ethnic foods at hospital, government, corporate and university cafeterias.
If immigrants import cuisine, youth is often the first to introduce it to non-immigrants. Certainly, more and more baby boomers want healthy foods, and buy ethnic foods, such as Asian and Mediterranean. They think it is healthy. But the younger generation is the biggest consumer. The 2005 Foodservice Market Measure, published by the Washington, D.C.-based National Restaurant Association (NRA), says that the X (26 to 35 years) and Y (6 to 25 years) generations are the most adventurous diners. For example, they are more likely than older consumers to enjoy hot and spicy foods. And if Mom and Dad eat at ethnic restaurants, the children will too.
Specialty ethnic foods grow among retail multinational supermarket chains, department stores and independent specialist and online shops. So, show organizers now display them at their established fairs or develop new industry events
Take a look at Canada. Donna Wood, director of the new Ethnic & Specialty Food Expo in Toronto, says that Ontario hosts almost three million ethnic consumers eager to purchase familiar foods. Toronto, one of the world’s most vibrant and ethnically diverse cities, is home to 41% of Canada’s three million immigrants. There are more than 170 ethnic groups in Toronto and almost 100,000 immigrants move to Toronto each year. This means a huge ethnic food market and opportunity to test new product lines. Retailers will follow the demographics. Not a bad move.
Mundo Verde
Posted - February 1, 2006
Mundo Verde Opens Its 115th Store
By Lucia Lorente - as printed in O.W.N. Spring 2006
Mundo Verde, the leading Brasilian and Latin American natural products retailer and a well-established brand, will be opening its 115th retail store in May. Instead of making a low-risk investment to strengthen its presence in the region where it is already well known, the company has set its sights on tapping a new market: the war-torn African nation of Angola.
Although the country’s infrastructure is hobbled by a 22-year civil war, Mundo Verde sees promise there.
The first store will open in the nation’s capital, Luanda. “We will be the first to offer organic, healthy food and wellness in Angola, giving them opportunities to enter the world of conscious consumption and social responsibility”, says managing director Jorge Eduardo Antunes.
The new store will carry only Brasilian products at first. Gradually it will include fresh organic fruits and vegetables from other African countries.”We are also interested in supporting buying African products to sell in Brasil”, Antunes says. “We want to become a global, sustainable company that helps people from different countries and shares the ideal of seeking a better world”.
Antunes believes similarities between Brasil and Angola will help Mundo Verde root in Angola. “We share part of their culture, the language and we enjoy strong trade relations. They import most of their consumer goods and its people visit Brasil often on holidays”.
Whether organic products and Mundo Verde’s brand of idealism can catch on in Angola remain to be seen. However, Antunes has accomplished more with less. What is now a 100-plus-store chain started in 1987 with an investment of less than EUR4.000. That bought Antunes a 25-square-metre shop in Rio de Janeiro.
“I started Mundo Verde with a few good products”, he says. “I could see the world was changing. I noticed more people were getting interested in health-related issues, alternative medicine, and fitness. They were questioning where our food comes from”.
Rio de Janeiro’s reputation as a tourist destination soon helped make Mundo Verde a point of reference, especially for Europeans looking for natural and unique products, cosmetics and organic textiles. In 1993 Mundo Verde opened the first franchise. Soon others were added. Today the company has more than 70 stores in the state of Rio alone. It sells mostly Brasilian products from brands such as Jasmine Alimentos, Ecobras, Bonafrux Fazenda e Casa Betamix.
As Mundo Verde expands, it tries to hire employees who have something other than impressive curriculum vitaes. “It is important that each store’s management believes in the organic movement and is motivated to transfer this passion to all co-workers”, Antunes says. “Our employees need to be flexible, open-minded people. We believe that the company must share its ideals and values with the employees, the suppliers and the customers.” With annual sales of EUR45 million and a total retail space of 10.260 square metres (and growing), Mundo Verde challenges the notion that Latin American companies are suited solely to supply raw ingredients and some processed foods to European and American organic markets.
Along with its day-to-day business, Mundo Verde is busy with side social projects, one of which includes a joint-venture with American cosmetics firm Surya Nature. The two companies have set up the Tres Rios Cultural and Environmental Association, which pays low-income families in Rio de Janeiro to collect PET bottles that will be transformed into brooms. “We are exporting 2.000 eco-brooms to the U.S. every month,” says Antunes. “It is important to create sustainable development and offer people an opportunity to feel part of an important project.” Last year, Mundo Verde won an award recognizing it as one of Brasil’s most successful franchises.
Energy Bars
Posted - February 1, 2006
In Robust Energy Bar Market, Hope for Organics
By O.W.N. News Network - as printed in O.W.N. Spring 2006
The number of health-conscious consumers is growing, and many of them are in a hurry. As more people rush to lift weights after work and run on the treadmill during their lunch-breaks, there is growing opportunity for producers of organic energy bars.
In the United States multi-tasking fitness fanatics helped drive the market for nutrition and energy bars to USD $838 million in 2004, according to a study by Mintel International Group. Canada, too, is expected to show dramatic demand for energy bars. The natural snacks and bars market there was $59 million in 2001. That figure is projected to reach $485 million by 2011.
But people going to the gym aren’t the only ones eating energy bars. This ready-to-eat food is among the top three categories in all food segments showing most growth. Bars provide a viable meal alternative or supplement any time of the day, especially at breakfast, when people’s schedules force them to rush or skip the most important meal of the day.
Eager to win a stake of this robust market worldwide, conventional food processors have flooded supermarket shelves with hundreds of energy and granola bars, many of which claim to be healthful.
As usual, where conventional processors rush in, confusion follows. Energy bars, which consumers think are healthy, often use artificial sweeteners like Splenda and have trans-fats. They frequently have few truly natural ingredients.
In 2001, the Canadian Food Inspection Agency (CFIA) tested 191 sports supplements and found that just 5.8 per cent met federal requirements for ingredients, agency documents show. The CFIA also tested 226 samples that year for label verification and found that only 4.4 percent complied with government regulations.
The situation presents a challenge for conventional producers and retailers and an opportunity for their natural and organic counterparts.
In the United States, in particular, organic energy bar companies will be able to make their mark, thanks to a law. Beginning in 2006, food labels will require complete ingredient information in an easy-to-understand format. This change will give consumers more power to make wise food choices, including with energy bars.
Spring 2006 Editorial
Posted - February 1, 2006
Ask…and You Shall Receive Organics!
By Adriana Michael - as printed in O.W.N. Spring 2006
During a survey which included hotels, Organic & Wellness News asked Nuernberg properties listed as partners of BioFach 2006, “Would you offer organic fruits at the breakfast buffet during the upcoming fair?” All sixteen hotels were surprised by the question. “Why offer organic fruit?”, asked some. “Our property is too large for organics”, said others. “As part of a large chain we couldn’t just up and order something new from their central purchasing department”, said another. We’ve heard it all in similar surveys in Europe and North America, but were surprised to get the following answer in Nuernberg: “Why should we make a change in our menu? No one asks us for organic food!”
We pointed out to them that over 30,000 entrepreneurs, all organic consumers, would be going to Nuernberg. They would be delighted if hotels were offering organic fruit at breakfast time. After all, organic foods have become mainstream. They appear on the shelves of conventional supermarkets, and even large discounters now carry them. These responses made us ponder the future - perhaps it is time that the organic sector, as consumers, started requesting organic foods when booking flights, hotel rooms or reserving tables at a restaurant.
Going back to our survey, while putting together Organic Route Berlin (see a summary on pages 13-15 in this edition) we selected fine wellness, boutique and design hotels in Berlin. The Berlin Hilton Hotel offered organic food. Surprised to hear that such a conventional property would be so forward-looking, I asked a major supplier of organic foods in the city if this was indeed possible. The supplier immediately replied, “Of course! If you ask for it, you will get it”.
