Expo West a March Success
Posted - March 30, 2009
Expo West: Busier than Ever
By Adriana Michael, O.W.N.
A cheerful spring mood filled the air in Anaheim, California the first week of March. According to show organizers “more people sold, sampled and schmoozed at this year’s Natural Products Expo West / SupplyExpo than any time in the event’s 29-year history”. Over 1,900 exhibitors from 28 countries welcomed 53,000 industry members at the Anaheim Convention Center March 5 -8, up from approximately 52,000 attendees in 2008. There were 484 firms exhibiting for the first time this year, an indication that, in spite of economic uncertainty, the interest in organics and new natural products is still strong.
“Expo West has been awesome”, says Denise de Souza, founder of MateTherapy, Brazilian natural cosmetics company that has developed a complete line with organic certified yerba mate as its main ingredient. “I saw serious buyers, who knew what they were looking for”.
Ted Campdesuner of North American Herb & Spice agrees. “It has been a good event. Established client and newcomers have stopped by.” NAH&S is one of the leading names in North America for natural supplements .Based in a good location, the booth was packed with visitors interested not only in the company’s well known products such as those based on wild oregano oil, but also in new introductions, like the Raw Amazon line, which includes pure raw Peruvian Amazon yacon root concentrate and different extracts of raw purple corn, wild fruit and camu camu, sacha inchi oil and maca.
“After all the news about the US recession, we were surprised to see such traffic every day at the show and a festive atmosphere”, said Jonna Christensen of Danish import firm NaturImporten ApS at the stand of Canadian natural cosmetics firm Suncoat. “Our sector has not felt the recession yet, but we will be in a better position to judge the situation around the summer time”, added Suncoat founder and CEO Yingchun Liu.
Natural Products Expo West runs parallel with Nutracon and SupplyExpo, featuring the latest ingredients and manufacturing supplies. It is the largest show for natural products. Its sister event, Expo East, will take place in Boston Sep 23-26, with the parallel Biofach America, which
focuses on organic certified products.
More information at www.expowest.com.
Coming Up: Sial Montreal
Posted - March 30, 2009
Coming Up! International Food Trends at Sial Montreal, April 1-3
Organic Village New Feature This Year
By Dallas Terry, O.W.N.
Over 500 exhibitors from all corners of the world are ready to welcome 10,000 North American food industry professionals at Sial Montreal this coming April 1-3 at the Palais des Congrès. Along with Canadian and US firms, this year most exhibitors displaying their latest food innovations come from Italy, France, Taiwan, Brazil and Mexico.
Innovation will continue to be one of the main focus at the event, with over 65% of Sial Montreal visitors looking for new products, at the 2nd competition of “Trends & Innovations”. Last year’s winning selections included goji berry smoothies, frozen Chinese dumplings in a bamboo steamer basket, garlic flower flavored organic sea salt, individually quick frozen organic berries and fruit pieces, rabbit chorizo and sausage, cranberry and wild blueberry juice vinaigrette infused with green tea, and organic chocolate bars. African culinary sauces, value-added coffees supporting local farmers and environmental protection, and unique ready-to-eat entrees in microwaveable, steam cooked packaging, where other highlights.
Besides taste, creativity, product presentation and convenience, this years’ “Trends & Innovations” award will also take into consideration nutrition value. How a product reflects regional and local traits, while still playing with foreign or unusual flavors and “made-to-order” foods or customization are also among main international food trends considered.
Competing exhibitors offering unique and delicious products at Sial Montreal include: Le Petit Mas, producers and distributors of Canadian organic-certified garlic, creators of a new seasoning – garlic flowers fermented in oil. Theobroma Chocolat,100 percent natural, organic, and gluten-free bars and Maison Orphee, introducing the “Discovery Pack”, a fine selection of different oils tofamiliarize consumers with the different types available.
Reflecting the growing trend for healthy foods, the Agora Nutrition forum will once again explore and present evidence of the connection between nutrition and health. The forum program will focus on obesity and health trends and is designed to allow professionals to meet and share experiences within the framework of a series of conferences.
“We are excited to exhibit at Sial Montreal”, said first time exhibitor Ming Liu, project manager of OrganicsBrasil, a government and private marketing initiative to promote organic products from Brasil in the international market. Brasil is one of the top suppliers of organic ingredients and a growing number of food processors are introducing a variety of foods such as organic cookies, jams, juices and energy bars with unique tropical fruits and ingredients. For the past four years, OrganicsBrasil has presented a large and attractive pavilion at organic oriented international fairs such as Biofach in Nuremberg, All Things Organic in Chicago and Expo West in Annaheim, California. At Sial Montreal, the project will be exhibiting along with other conventional Brazilian firms, some wine suppliers among them.
“It is great to see Sial promoting organics too”, said Chakib Azzizi of the Montreal based organic trading firm Bianca Organic International. “It shows the sector is still growing in spite of the recession”. Sial Montreal is introducing the Organic Village this year in response to a survey, where over 50 percent of visitors clearly indicated last year, interest in more organic products.
Sial Montreal is one of the sister fairs of Sial, headquartered in Paris and second largest food fair in the world. Co-located with Sial Montreal and the Agora Nutrition Forum will be Set Canada, a showcase of trends in services, equipment and technologies for the food service industries.
More information www.sialmontreal.com.
Green Perseveres Through Tough Times
Posted - March 30, 2009
Recession or Not, Green Still the Way to Go
By Adriana Michael, O.W.N.
Unemployment rates have been on the rise around the world, and the financial crisis at its peak in strong countries like the United States and the United Kingdom. This uncertainty anticipated a gloomy economy and a tough business environment for 2009. The good news is that by the end of the first trimester, the organic and natural sectors continue showing strong performance, although not at the same growth rate as in previous years.
Organic consumers are well informed, committed and have a firm idea of their purchasing priorities. In the US and Europe the industry reports steady sales of organic fruits, vegetables, dairy products, grains, bread and meat. In Germany market research firm Nielsen Co. conducted a survey of 9,000 households this past February, 54 percent of the respondents said that they may have to adjust and give up a few things due to the economic crisis, but their lifestyle will not change much. 29 percent stated that the crisis will not affect their lifestyle and purchasing decisions. “Over 75 percent of the respondents said that in spite of the recession they would not give up buying organic, natural or health related products”, says Brigitte Arndt-Rausch of Nielsen Co. GmbH.
Conventional supermarkets, pharmacy chains and discounters lead the growth of organic sales in Germany, which enjoys a 40 percent market share. And consumers will look to the large retailers’ own brands and other more affordable alternatives, in order to stay committed to the values and beliefs that trigger their purchasing of organic certified goods, adds Arndt –Rausch.” Higher prices for organics will be accepted only if the products show a strong difference from lower priced goods in terms of taste, quality, nutrition content and positive health, environmental and social claims.
According to the Organic Trade Association, in the last decade organic food sales in the USA have grown 15 to 21 percent each year. And even though in 2008 organic sales were lower than the 23 percent projected sales of $23.6 billion, (the report has not been released at the time of writing) new research from The Natural Marketing Institute (NMI), reveals that consumers are increasingly incorporating organic products into their lifestyles. “Total household penetration across six product categories increased from 57 percent in 2006 to 59 percent in 2007”, according to NMI.
In Australia 61% of grocery buyers buy organic products, while there is some evidence of a slowing in sales of some of the more expensive packaged organic products, reports the Organic Federation of Australia (OFA). “(Sales of organics) continue to increase because consumers are buying more organic products for home consumption, rather than spending on more expensive items such as cars and TVs,” said in a release Andre Leu, OFA’s chairman.
In the UK, where consumption of organic food have indeed experienced one of the largest declines during the financial crisis, non-foods such as energy-saving light bulbs showed extremely strong sales. “In the last three months of 2008, 12.3 million of them were sold in the UK, up from 8.9 million in the same quarter of 2007, an increase of 38.2%”, the BBC recently reported, adding that “a lot of the increase may be attributed to the falling price of the bulbs”.
While we may not be seeing the accelerated growth rates of previous years, it has been encouraging to observe the positive attitude and high traffic at the fairs this trimester, much to the relief of the socially and environmentally responsible entrepreneurs and consumers. There is no doubt that, in spite of the economic recession, green is and will continue to be the way to go!
Predictions for 2009
Posted - March 30, 2009
Organic Monitor Shares 2009 Predictions
Presented by Amarjit Sahota, Organic Monitor
With the slowdown in the global economy, uncertainty for ethical & sustainable industries built up during 2008. Organic Monitor, a UK based business research & consulting firm specialized on the global organic sector & related product industries, has offered its predictions for 2009.
Organic Foods
Global sales of organic food & drink have been increasing by over US $5 billion a year, reaching US $46 billion in 2007. Positive growth is expected to continue in 2009, however slower growth rates are envisaged in countries affected by the financial crisis.
The UK market has been the most adversely affected because of the harsh economic climate reducing consumer expenditure. Other countries have been less affected with double-digit growth still continuing in northern European countries. Although consumer demand for organic foods remains high, increased price sensitivity is leading consumers to ‘trade downwards’. 
Thus, organic food sales from discounters and other low-cost retailers are increasing at the expense of other retailers. Retailer private labels are also becoming more popular than manufacturer brands.
Natural Cosmetics
Global sales of natural and organic cosmetics are increasing by over US $1 billion a year. As for organic foods, most demand is concentrated in Europe and North America. Preliminary research shows that European sales exceeded US $2 billion for the first time in 2008.
Healthy market growth rates are continuing in 2009, with most growth observed in mainstream retailers like supermarkets, drugstores and pharmacies. Retailer private labels are a major driver of market growth; a growing number of retailers are launching certified natural & organic cosmetics under their private labels, offering consumer low-price quality products. However, some rationalization is expected in 2009 due to a large number of brands competing with private labels for retail shelf-space.
Fair Trade Products
Consumer demand for fair trade products continues to strengthen in spite of the economic slowdown. Preliminary research indicates that global fair trade product sales exceeded US $3.5 billion in 2008.
Growing interest in social & trade issues involving developing countries is driving market growth. Retailer investment is stimulating production of fair trade products; a number of European supermarkets have converted their entire supply chains of certain products to fair trade. The fresh produce category is tipped to show the highest growth in 2009.
Natural & Organic Ingredients
Slowing demand from food processors, beverage companies and other end-users is bringing supply in balance with demand. After experiencing several years of undersupply, ingredient prices are expected to decline in 2009. Increased globalization of supply chains is predicted to continue as large ingredient companies spread their production bases.
Soya & Functional Foods
Dairy alternatives are continuing to gain popularity across the globe. The success of soya milk is leading to high investment in related products, marketed as dairy alternatives and / or functional products. Oat-based dairy alternatives are expected to continue to gain ground in 2009. A major advantage soya and oat-based products have is that they can be marketed on health claims.
Many new functional foods are expected to be launched in 2009, however few are likely to have a long-term presence because of the high rate of product failures in this market.
Ethical Textiles
Rising ethical consumerism is fuelling demand for organic and fair trade textiles. New product launches are expected to continue in 2009 as investment comes in from new producers and retailers.
Sustainability
Organic Monitor also expects sustainability to become increasingly prominent in 2009. Natural & organic product companies are at the forefront of adopting sustainable and ethical business practices. This development is leading to some convergence between product sectors. Indeed, many new organic product launches contain fairtrade ingredients. The number of carbon neutral companies is also expected to increase in 2009.
Biofach’s 20th!
Posted - March 30, 2009
Fairs: Biofach Cheerfully Celebrated 20th Anniversary
By Lucia Lorente, O.W.N.
Despite a gloomy economic environment and a snow storm that closed airports and delayed flights to Nuernberg, Biofach 2009 was once again the most successful international event for organic trade. Over 46,700 registered visitors, 38% from outside Germany, and 2,744 exhibitors from 91 countries gathered at the modern and welcoming fairgrounds to celebrate Biofach’s 20th birthday.
In addition to Germany, most exhibitors came from Italy, France, Spain and Austria, with a growing number from Holland, China and Switzerland. Denmark staged an impressive pavilion and played host as country of the year. There were several first time exhibitors, from Eastern European nations such as Bosnia, Georgia and Croatia, and others from as far away as Hong Kong, Mali and Guinea.
This year Biofach organizer NuernbergMesse GmbH launched the Sustainability Forum two days before the fair, an event that offered guests and speakers a platform to discuss sustainability issues within the organic sector, and the current global economic situation.
Vivaness, a parallel event to Biofach focusing on the natural health and beauty sectors, also reported excellent traffic and growth this year. Over 200 exhibitors located in Hall 7 of the fairgrounds introduced 70 new products to buyers and visitors. “Amazingly, we have not felt any impact of the world financial crises yet”, said Filipe Sabara, business director of Beraca, leading Brazilian supplier of ethical cosmetics ingredients.
The natural textiles area in Hall 7A was also officially launched in this fair edition, with stylish green apparel and home fashions brands.
Biofach continues its success in many areas. These include the largest display of organic certified wines in the industry, and 304 exhibitors from 23 nations enjoying the sunlit, tastefully decorated Hall 4A , where a growing display of organic olive oil producers gathered to take part in the second competition for the best olive oil at the Olive Oil Bar. The perfect ambiance was made complete by a restaurant where top chefs offered culinary delights to tantalize the senses of exhibitors, judges and buyers.
“Biofach is with no doubt one of the best fairs”, says Carla Barboto co- founder of Pacari, an Ecuadorian based producer of high quality organic certified chocolates, which buys cacao beans and other ingredients from small organic certified farmers. “Our booth was busy at all times with interested visitors from all over,” noted co-founder Santiago Peralta. Pacari introduced an exquisite line of truffles this year, made of pure raw cacao and 
presented in attractive and eco-friendly packaging.
“Biofach was excellent. We could not ask for more”, said Klaus Bentzen, export manager of Organic Danemark, umbrella organization for the promotion of the sector in this European country, which is regarded as model for successful sustainable development. “We achieved all goals beyond our expectations: Make Danemark known in the German market, and abroad with a well-attended round of seminars and presentations, attract the media to help us spread the news about what we are doing, and increase the number of contacts and network opportunities”. Denmark offered a pavillion with 40 firms showing gourmet foods, including baked goods and cereals, meats, fish, juices, smoothies and fruit concentrates, and dietary supplements and natural cosmetics.
More on Biofach Germany and its upcoming sister fairs in India, China, the United States, Japan and Brazil at www.biofach.com
Brazil Third in Organic Farms
Posted - March 30, 2009
Brazil Ranks Third in Number of Organic Farms
OrganicsBrasil Reported Successful Participation at Biofach
By Sofia Garcia, O.W.N.
Brazil, a country known for the cultivation of both exotic and staple food ingredients, currently ranks third in terms of number of organic farms, according to a recent survey by the International Federation of Organic Agriculture Movements (IFOAM).
This vast Latin American country, which concentrates most of the Amazon rainforest, has been leading the world in production or export volume of coffee, soy beans, cane sugar, orange juice and beef. Now it also offers a wide range of organic certified products for export. Thirty one exhibitors with quality ingredients such as cashews, acai berries, cacao, coffee, and processed foods, supplements, essential oils, cosmetics and even apparel made of organic certified cotton were on display at the OrganicsBrasil Pavilion at Biofach in Nuremberg, Germany this past February 19-22. Exotic Umbu fruit jam and Baru nuts, where two new product introductions at the fair.
OrganicsBrasil also had a stand for the first time at Vivaness (Biofach’s sister and parallel fair for personal care products), with leading Brazilian natural cosmetics firms Ecove and Surya present. Beraca, Brazilian leading supplier of natural and ethical cosmetic ingredients was also showing its range for the third time, first under the umbrella of OrganicsBrasil. “Biofach ‘09 was impressive”, said Filipe Sabara, Beraca’s business director. “The organic market has been growing each year in different product categories, and in the personal care market, it was amazing to see an increase of exhibitors and visitors, compared to Biofach last year”. Sabara added that visitors seemed more focused and knowing the products they wanted to find.
The Beraca group is working hard to supply products that will help natural cosmetics manufacturers continue strong focus on “naturally and organically” claims, which may help them go through tough economic times. Surya export manager Vinicius Vasconcelos was also satisfied with the response to his line at Biofach. “Interest has been high and we have excellent medium term prospects for closing deals with retailers and importers.” Surya’s products use ingredients from the Amazon and are fair trade certified.
According to Ming Liu, OrganicsBrasil project manager, the thirty one Brazilian exhibitors at Biofach generated an estimated $21.8 million in sales opportunities.
“Despite fewer visitors, approximately 30% less than previous years, we noted that those who did appear were more objective, focused on closing deals and establishing long term partnerships”, said Ming Liu. “The results achieved by Brazilian participants were solid and positive.” This season OrganicsBrasil also had a pavilion at Expo West in Annaheim , March 5-8 and is joining the Brazilian pavilion at Sial Montreal, April 1-3 exploring the Canadian market.
More information available at www.organicsbrasil.org.
Italian Firm Reaches Latin America
Posted - March 30, 2009
La Finestra’s Next Frontier: Latin America
By Adriana Michael, O.W.N.
It’s easy to think of Latin America as a source for wholesale organic ingredients, but few think of it as a market for high-end European organic foods. Yet improving economies are changing that perspective. As the standard of living rises, so do the occurrences of diabetes, allergies and obesity. Enter La Finestra sul Cielo, an Italian organic pioneer and leading food producer with a heavenly antidote: carefully processed foods that appeal to those who know that prosperity means little without good health.
Spearheading the overseas project to bring La Finestra sul Cielo (in English the name means “window to the sky”) to Latin America is Miguel Angel Montesinos, managing director of the sister company in Spain. Montesinos and his wife, Anna Flo started la Finestra sul Cielo España five years ago, after noticing that Spain did not carry any products such as those of La Finestra’s unique line. 
The couple took on the challenge of introducing the Italian line first to Valencia. Sales exceeded soon everyone’s expectations. This prompted Marco Merla, managing director at La Finestra’s head office in Italy and the Montesinos to expand operations across Spain. Currently, over 1,200 Finestra products can be found in 1,500 Spanish retail outlets, including organic supermarkets Eco Veritas and Natura Si, with annual sales reported at over 4 million Euro.
The contagious enthusiasm of Montesinos and his passion promoting organics has also opened doors for La Finestra’s line of macrobiotic foods in Portugal. With this market ably covered by Anna , Miguel sees Latin America as the next obvious region for expansion. A target many European organic companies have not considered in the near future.
For Spain, it’s a natural market,” Montesinos says. “If several companies from different sectors such as cars, computers, heavy machinery and consumer goods are doing well in Latin America, why not organic certified foods?”
First stop: Brazil.
In cooperation with distributor Jeffrey E. Sidi La Finestra sul Cielo Espana is now bringing their products to Brazil, first because it has a growing organic market. Second, the government is particularly supportive of the organic sector. La Finestra tested the market with their line of cereal beverages through Pao de Açucar, a local supermarket chain that has identified organic foods as a category of importance. It serves it with a more personal approach than other large conventional supermarket chains. Response to la Finestra’s products at Pao de Açucar has been positive. Careful not to compete with existing businesses in Brazil, however, Finestra will introduce only unique products such as their vegetable and cereal based drinks, spelt pasta and crackers, all milk, egg and sugar-free foods.
“Most of the local businesses concentrate on fresh produce, tropical and exotic fruits, soy and soy-based foods, rice and coffee,” says Sidi. “We will only import foods that don’t compete with local suppliers.” However, although soy-based drinks are already popular there, they are often full of sugar, coloring, preservatives and other undesirable substances that health-conscious consumers avoid. La Finestra’s soy drink line, on the other hand, stands out because of its highly nutritious and natural makeup.
So far, La Finestra sul Cielo Espana has introduced 80 products into Brazil, in spite of the relatively high retail price. Besides the cereal drinks, goods made with quinoa and amaranth have been well accepted “We work with very low margins” says Sidi. “But with over a thousand different products to choose from, we are able to remain profitable in spite of a strong Euro and currency fluctuations”. Montesinos and Sidi are optimistic. They believe one way to the Latin stomach is by introducing health practitioners to their product line.
“Consumers need coaching in the purchasing of organics,” says Sidi. Health practitioners can explain to their patients how gluten, sugar, egg and salt-free foods are important to a balanced diet, while also explaining the health benefits of cereals like kamut and quinoa.
Though a venture still in its infancy, La Finestra products can now be found in 150 Brazilian retail outlets after only one year. In 2009, the young and enthusiastic team targets 300 outlets in Sao Paulo and other main Brasilian cities.
Montesinos already put an eye in other markets to conquer: Colombia, Mexico and Chile. Both men agree that the key to opening up Latin markets is a combination of finding serious entrepreneurs passionate about organics who have a strong financial foundation and a commitment to see a project through, despite economic ups and downs. Looking through heaven’s window on what Montesinos has already accomplished for La Finestra in Spain, Portugal and now South America, success seems deliciously close.
