Natural Products Industry Matures; Independents See Sales Growth

As the natural and organic products industry reached $141 billion in sales on 7.4% growth in 2016, Natural Foods Merchandiser’s 2017 Market Overview reports independents are starting to thrive again as the market shifts.

By Steven Hoffman

Source: Natural Foods Merchandiser, July/August 2017, published by New Hope Network

As a new Managing Editor back in 1986 with the Natural Foods Merchandiser, I was charged with conducting, analyzing and reporting on the natural products industry’s annual retail market overview survey. I recall spending late evenings poring over data with New Hope Network founder Doug Greene to determine overall sales, growth categories and emerging trends. That was when the industry was just breaking $5 billion in sales – a fraction of what it is today.

Thirty years later, the natural and organic products industry is maturing, reaching $141 billion in sales on growth of 7.4% in 2016, according to the 2017 Market Overview, published in the July/August 2017 edition of Natural Foods Merchandiser (NFM) in partnership with Nutrition Business Journal, with additional data provided by SPINS and the Organic Trade Association’s annual organic industry survey.

Over this time, the natural, organic and better-for-you products sector has become widely recognized as a hotbed of innovation and growth in the overall food industry. Point in fact, the Amazon – Whole Foods Market deal announced in June promises to be a game changer not just for the natural products landscape, but also for the entire retail food market worldwide.

Independents Find Stronger Footing

Yet, as the market shifts, independents that have been able to weather the past few years may now find themselves in a stronger position, according to NFM’s 2017 Market Overview.

While sales growth was modest among independent natural products retailers – sales grew 4.3% to $54.4 billion, or 39% of overall natural products sales in 2016 – NFM also reported that 69% of natural products stores surveyed recorded a sales increase, and 72% noted they did not have a competitor open up in their neighborhood in the last year.

“It may go against conventional wisdom, but well-managed and strongly positioned independent grocers can coexist with big retail. While large, often publicly held chains may have scale and strong financial backing, independent grocers are often more agile, enabling them to move quickly to address emerging trends and shifting consumer preferences,” the editors of Food Dive observed in a July 19, 2017, report. 

“The difference between the corporate model, which you would now have to say includes Whole Foods, and the authentic, community-owned independent, is becoming clearer every day,” retail specialist Jay Jacobowitz of Retail Insights told NFM. “Those who embrace that authenticity and are passionate about serving their unique community will do well.”

Jacobowitz also noted that while the natural products industry may be maturing, there are areas of the country, including the East South Central region (Missouri, Alabama, Tennessee and Kentucky), that are far from saturated. “It’s a big country, and the big boys can’t be everywhere at once,” Jacobowitz said. “There are still opportunities out there.”

Independents also are more nimble in that they can feature local products, and are often the first to take advantage of such emerging product trends as cannabidiol, or CBD, a new category driving growth in dietary supplements and personal care.

Conventional Retailers Own 44% of Natural Products Market Share

During this time, razor-thin margins, increased competition and price wars impacted large mainstream grocery chains, as well as of some of the “supernaturals.” Kroger reported its first decrease in same store sales in 13 years in March 2017, NFM reported, and Whole Foods Market struggled with declining same store sales throughout 2016, prompting shareholder activism in April 2017 from Jana Partners, which held an 8.8% stake in Whole Foods, and ultimately, the announced sale to Amazon in June 2017.

Other publicly traded supernatural chains, including Natural Grocers and Sprouts, saw their stocks decline in 2016 as a result of increased competition from all sides. Natural Grocers’ stock price continues to be depressed in 2017, though Sprouts’ stock price has rebounded.

Yet, through all that jockeying for market share, the bottom line is that conventional retailers, including food, drug, mass, convenience and club stores, now command the majority of natural and organic products sales.

According to NFM’s survey, in 2016 conventional retailers captured 44% – or $61.5 billion – of all natural and organic products sales, while traditional independent natural products retailers and chains claimed 39% ($54.4 billion) of overall natural and organic products sales in 2016. Additionally, while sales among independents grew a modest 4.3%, sales of natural and organic products among conventional retailers grew at double digits, or 10.2%, in 2016.

Here Comes the Internet

As consumers become ever more comfortable shopping on the Internet from the comfort of their homes, offices and mobile devices, ecommerce sales of natural and organic products grew 11% to $5.7 billion in 2016, capturing 4% of overall natural products sales, reported NFM’s Market Overview survey. 

Online sales are sure to continue a strong growth curve, as ecommerce retailers such as Thrive Market, meal kit providers including GreenChef.com and independent brick and mortar retailers increase their online presence. Plus, a growing number of manufacturers are finding markets by creating their own online shopping pages and also by offering their products on Amazon, which continues its juggernaut as the dominant force in online retail. (With its acquisition of Whole Foods Market, it will be exciting to see how Amazon integrates and advances its brick and mortar and online retail strategies.)

The online channel is likely to capture significantly more market share in the next decade from brick and mortar stores, predicted a January 2017 report by Food Marketing Institute and Nielsen. Online sales could grow five-fold over the next 10 years, with U.S. consumers spending $100 billion on “food-at-home” items by 2025, FMI and Nielsen predicted. The report also found millennial shoppers surveyed were more willing to buy groceries online in the future than other consumer groups.

Health supplements, in particular, are benefitting from ecommerce, with $2.6 billion in online sales reported in 2016 by market research firm 1010Data. Brands that focus on “natural” products experienced the most online sales growth last year, 1010Data reported.

Herbal Blends, CBD Drive Supplement Sales Growth

Sales of herbal and homeopathic products increased 13.4% over the 52 weeks ending March 19, 2017, to reach a market value of nearly $2 billion, according to SPINS data shared in NFM’s Market Overview. Vitamin and supplement sales also grew 3.5% to approximately $12 billion in sales. Overall, SPINS reported 5% growth, valuing the total supplements market at approximately $14 billion.

SPINS also reported that sales of herbal blends grew 22% over the previous year, accounting for much of the herbal category’s success. According to research firm Mintel, consumers are responding to supplement formulas that call out benefits, rather than ingredients—and blends often meet that criteria, NFM reported.

Other top-performing supplements in 2016 include turmeric/curcumin and cannabidiol, or CBD, which is emerging as a leading supplement for anxiety and pain management. Despite the regulatory grey area surrounding CBD, sales of CBD supplements grew more than 1700% last year, primarily in the natural channel, reported Hemp Business Journal. Leading market research firm SPINS named CBD oil one of the “ingredients to watch” in its 2016 Trend Watch report.

Other supplement categories of note include organic supplements, which grew 7.4% in 2016. Retailers in NFM’s Market Overview survey also cited probiotics, bone broth and kombucha as top growth categories.

Other categories showing strong growth in 2016 include organic meat, fish and poultry (9.1% growth); organic beverages (6%); organic condiments (6.3%); and organic personal care and other products (8.1% growth in 2016).

The Indie Universe: Over 26,000 Independent Stores

Among NFM’s findings is that, among independent natural products retailers, on average, 60% of a store’s offerings are organic and 40% are described as “natural.” Also, roughly half of all sales in independent natural retail stores are from products that are “Non-GMO certified.”

Additionally, NFM estimates there are 26,042 independent stores in the U.S., including health food stores, natural foods stores and supermarkets, specialty food stores, personal care and herb shops and related boutiques and kiosks, and natural chains including Whole Foods Market, GNC, Vitamin Shoppe, Natural Grocers by Vitamin Cottage, Sprouts Farmers Market, PCC, Earth Fare, Fresh Thyme Farmers Market, MOMs Organic Market, and others.

Click here to download the complete 2017 Market Overview report, including all data charts, published in the July/August 2017 edition of Natural Foods Merchandiser.

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Steven Hoffman is Managing Director of Compass Natural, a full service agency dedicated to Public Relations, brand marketing, digital communications, social media, and strategic business development in the healthy lifestyles market for natural, organic, regenerative and eco-friendly products and services. Contact steve@compassnatural.com.

Organic Products Growth Outpaces Overall Conventional Food Market; Hits 5 Percent Market Share

Source: Wikimedia Commons

Market Research
Author- Steven Hoffman
Published In- June 2017 Presence Marketing / Dynamic Presence Newsletter

The news is just in from the Organic Trade Association (OTA) and it’s very good. Sales of organic products in the U.S. reached a record $47 billion in 2016, up from sales of $43.3 billion in 2015, reflecting overall growth of more than 8 percent. Compare that to a lackluster growth rate of less than 1 percent for the overall food industry, says OTA. Another significant first for the organic industry, reports OTA in its May 2017 Organic Industry Survey, is that organic food now accounts for more than 5 percent – 5.3 percent to be exact – of total U.S. food sales.

The organic industry is creating jobs, too, according to the OTA report. More than 60 percent of all organic businesses with more than five employees reported an increase of full-time employment in 2016, and said they planned to continue adding to their full-time work staff in 2017.

Source: Organic Trade Association, May 24, 2017

“Organic farmers are not just staying in business, they’re often expanding. Organic handling, manufacturing and processing facilities are being opened, enlarged and retooled. Organic farms, suppliers and handlers are creating jobs across the country, and the organic sector is growing and creating the kinds of healthy, environmentally friendly products that consumers are increasingly demanding,” said Laura Batcha, CEO and Executive Director of OTA. Produce – organic fruits and vegetables – accounted for nearly 40 percent of overall organic food sales. Growing at 8.4 percent in 2016 – almost three times the 3.3 percent growth rate of total fruit and vegetable sales – organic fruits and vegetables now account for nearly 15 percent of the produce Americans eat, says OTA. Organic meat and poultry products, too, marked record growth of more than 17 percent in 2016 to $991 million. The category is expected to top $1 billion in sales in 2017 as consumers demand transparency and awareness continues to grow about the benefits of organic over conventionally produced meat, poultry and dairy products.

Other organic food categories showing explosive growth included organic dips, growing 41 percent to $57 million, and organic spices, posting a 35 percent increase to $193 million. Of the overall $47 billion in sales of organic products, non-food organic items claimed nearly $4 billion of that total. Organic fiber, supplements and personal care products accounted for the majority of those sales, reporting nearly 9 percent growth in 2016.“Increasing consumer awareness that what we put on our body is as important as what we put in our body is driving the growth in organic fiber sales, while a growing desire for transparency, clean ingredients and plant-based products is spurring sales of organic supplements and personal care products,” OTA noted. “Organic products of all sorts are now found in the majority of kitchens and households across our country,” said Batcha. “But the organic sector is facing challenges to continue its growth. We need more organic farmers in this country to meet our growing organic demand, and the organic sector needs to have the necessary tools to grow and compete on a level playing field. That means federal, state and local programs that help support organic research, and provide the organic farmer with a fully equipped tool kit to be successful.”

Appetite for Organic Tops $35 Billion

The organic products industry grew to be a $35-billion business in 2013, reported the Organic Trade Association (OTA) in May 2014. The reported 11.5% increase from 2012 is the fastest growth rate in the last five years. The OTA expects this growth will continue over the next two years. “Consumers are making the correlation between what we eat and our health, and that knowledge is spurring heightened consumer interest in organic products,” said Laura Batcha, executive director and CEO of OTA.

Organic products are comprised of foods, flowers, fiber, household products and pet food. Organic food sales, which accounts for about 92% of total organic sales, were $32.3 billion in 2013. Organic food sales broke the $30 billion mark in 2012 and, according to the OTA, now accounts for more than 4% of the $760 billion in annual food sales in the United States. While total foods sales have averaged an annual average growth of 3%, the growth rate of organic food sales has grown an average of 10% every year since 2010.

Although continued growth is expected in the sale of organic products, there is still confusion among consumers about what organic means. The message of organic can be lost next to the presence of “natural” products and the long debate around GMOs, cautioned the OTA.

“The entire organic industry needs to rally around helping consumers better understand and appreciate all the values that certified organic brings to the table,” said Batcha. “Consumer education is critical to grow the organic industry,” she added.

GMOs in the News: 2 Million Rally Against Monsanto

More than 2 Million People Rally in 52 Countries to Protest GMO Giant Monsanto
From a single Facebook page started in February, the March Against Monsanto held on May 25 drew more than 2 million people in 52 countries and 436 cities to protest chemical giant Monsanto and the genetically engineered seeds it produces. "If I had gotten 3,000 people to join me, I would have considered that a success," protest organizer Tami Canal told USA Today. "It was empowering and inspiring to see so many people, from different walks of life, put aside their differences and come together," she said. The group plans to harness the success of the event to continue its anti-GMO cause. "We will continue until Monsanto complies with consumer demand. They are poisoning our children, poisoning our planet," she said. "If we don't act, who's going to?" Protests were held in Los Angeles, Portland, OR, Buenos Aires, Argentina, Amsterdam in the Netherlands, and elsewhere around the globe. “As a single company, Monsanto is the tip of the iceberg representing the threat that unchecked corporate power has in corrupting our democratic institutions, driving family farmers off the land, threatening human health and contaminating our environment,” said Dave Murphy, executive director of Food Democracy Now, in a May 28 commentary in the Huffington Post.

Washington State Yes on 522 Launches GMO Labeling Campaign into Full Gear
With a new website, www.yeson522.com, the recent hiring of professional campaign management staff, and $1.1 million in contributions received, the Yes on 522 campaign to label GMO foods in Washington State is swinging into full gear and is appealing to natural and organic products business leaders to help fund what many experts say is the best opportunity to achieve mandatory GMO labeling in 2013. At a recent press conference, Rep. Jared Polis (D-CO), co-sponsor of the Boxer-DeFazio federal GMO labeling bill, said it is critically important to support the Washington State initiative to give greater weight to the Washington, DC, federal GMO labeling efforts, given biotech’s strong lobbying presence in the nation’s capitol. In a letter to donors, Yes on 522 finance chair David Bronner of Dr. Bronner’s reported that the campaign has launched an ambitious grassroots outreach program called “Kitchen Conversations,” in which advocates can receive a kit containing information to host informal gatherings among voters, and is rolling out a “Dining Out for 522” chef’s fundraising campaign. The campaign scheduled its first stakeholder meeting for May 31 in Seattle. Presence Marketing/Dynamic Presence is among the leading supporters of the Yes on 522 GMO labeling bill. Steven Hoffman of Compass Natural Marketing is helping lead fundraising efforts and outreach to natural and organic products industry leaders. For information and to contribute, visit www.yeson522.com.

Whole Foods Market Endorses Washington State’s Yes on 522 GMO Labeling Bill Joining a coalition of leading Washington State-based retailers including PCC Natural Markets and Marlene’s Natural Foods Market and Delis, among others, Whole Foods Market on April 25 announced its support for the Yes on 522 (www.yeson522.com) campaign to label genetically engineered, or GMO, foods. In support of Yes on 522, Whole Foods Market launched a grassroots effort, Will Vote for Food (www.willvoteforfood.com) to engage consumers and build support for the ballot initiative. “This issue is about transparency and the consumer’s right to make informed decisions,” said Joe Rogoff, president of Whole Foods Market’s Pacific Northwest region. “We believe that growers using genetically modified seed, and producers using the products grown from those seeds, have an obligation to share that information with their public. And the price paid by the food industry for relabeling is a pittance compared to the distrust that increasingly results from their concealment. We support Yes on 522. At Whole Foods Market, we will vote for food.”

New Leaf Markets Require GMO Labeling; Terra Organica Labeling GMO Products Following in the footsteps of Whole Foods Market, Santa Cruz, CA-based natural retailer New Leaf Community Markets announced it would require labeling of foods containing GMO ingredients in its seven stores by 2018. New Leaf was an early retail member of the Non-GMO Project and a strong supporter of California’s Prop 37 2012 GMO labeling measure, which was defeated by a narrow margin. New Leaf co-owner Scott Roseman commended Whole Foods for taking the lead on the labeling issue and said the five-year deadline gives manufacturers time to update packaging or research alternative ingredients. In related news, Stephen Trinkaus, owner of Terra Organica in Bellingham, WA, asked his customers what they wanted in terms of GMO labeling. The choices were: do nothing, label products that contain GMO ingredients, or get rid of the items altogether. Customers overwhelmingly chose labels, so Trinkaus began labeling products in the store that are likely to contain GMO ingredients. “I thought it would be simpler than it is,” Trinkaus told the Seattle Times. He wants customers to know if a manufacturer is working to replace GMO ingredients with non-GMO alternatives – many are after Whole Foods Market’s announcement to require GMO labeling in 2018, he said – and is revamping labels in his store to display more complex information.

Vermont, Maine Advance GMO Labeling Legislation
On May 14, despite concerns over lawsuit threats from the biotech industry, Maine's House Agriculture Committee passed a GMO labeling measure on an 8-3 vote. The bill, LD 718, offered by Rep. Lance Harvell (R-Farmington) wouldn’t go into full effect until 2018, and only after four of the nine northeastern states approve similar laws. However, they may be one step closer to realizing that goal: on May 10, the Vermont House passed a mandatory GMO labeling bill by an overwhelming 107-37 vote, again, despite massive lobbying efforts by the GMO biotech industry and threats to sue the state. If approved by the state Senate and signed by the governor, the bill, H 112, could make Vermont the first state in the nation to require labeling of genetically modified foods. But the measure likely wouldn’t go into effect for two years, and it would not affect meat, milk or eggs from animals that were fed or treated with genetically engineered substances, including GMO corn and the rBGH cattle hormone. While GMO labeling is not required in the U.S., according to the Center for Food Safety, 64 countries, including China, Russia and all EU nations currently have GMO labeling laws in place.

Monsanto CEO Blames Social Media for “Elitist” Anti-GMO Sentiments
Citizens who are against genetically modified foods or are calling for mandatory labeling of GMO foods are guilty of “elitism” that is fanned by social media, and they fail to consider the needs of the rest of the world, said Monsanto CEO Hugh Grant in a May 15 interview with Bloomberg Press. “This place is getting busier and more crowded,” Grant said. “As long as you’ve got money in your back pocket and you drive your station wagon to the supermarket on weekends, then it’s out of sight, out of mind, so far.” The advent of social media helps explain why many people in the U.S. have come to oppose genetically engineered crops in recent years, Grant told Bloomberg. Grant feels that GMOs are the answer to feeding the world’s growing population, while opponents point to increased use of toxic synthetic pesticides associated with GMO agriculture, the fact the farmers can no longer save seed if they are practicing GMO farming, the potential contribution of GMO farming to global climate change, and peer-reviewed studies that warn of risks to human, animal and environmental health. In related news, executives from Monsanto, DuPont and Dow Chemical – among the world’s largest producers of GMO crops and pesticides, and owners of a significant majority of the world’s seed companies – told Reuters that they are developing a national promotional campaign aimed at turning the tide on growing public sentiment against GMO crops. With GMO labeling measures before the federal government and more than 20 states, the biotech firms seek to limit the spread of such initiatives, which the companies say would only confuse consumers and upset the food manufacturing industry, according to Reuters. The biotech industry is still working out details of their marketing campaign, but it will likely have a large social media component, the company executives said.

Supreme Court Rules for Monsanto in Seed Case Rejecting an Indiana farmer’s argument that his planting of seeds he had bought second-hand did not violate Monsanto’s GMO seed patent, the U.S. Supreme Court on May 12 ruled unanimously that farmers must pay Monsanto each time they plant the company’s genetically engineered soybeans. Farmer Vernon Hugh Bowman asserted that because the company’s herbicide-resistant, Roundup Ready soybeans replicate themselves, he was not violating the company’s patent by planting progeny seeds he had purchased elsewhere. However, the justices unanimously rejected that claim, with Justice Elena Kagan writing there is no such “seeds-are-special” exception to the law. But Kagan warned that the Monsanto decision was a limited one and did not address every issue involving a self-replicating product. The court ordered Bowman, a conventional farmer, to pay nearly $85,000 in damages to Monsanto. The Supreme Court's decision implies that Monsanto has the legal right to stop farmers from saving seeds from patented genetically modified crops one season, and plant them the next season.

UNPA Hosts GMO Symposium for Supplement Manufacturers Despite what happens on a legislative and regulatory front, what is certain is that consumers want GMO labeling, and Whole Foods Market is requiring GMO transparency from all of its vendors by 2018, said Loren Israelsen, Executive Director of the United Natural Products Association (UNPA), a Salt Lake-based trade association serving the natural and nutritional products industry. To help companies understand the challenges and implications of GMOs in nutritional supplements and food products and to prepare for GMO labeling, UNPA hosted on May 23 a day-long symposium, “The Non-GMO Future: How to Source, Test, Label and Market Food and Supplement Ingredients.” “If you sell into Whole Foods [Market] or aspire to sell to them, you need to understand the GMO supply chain,” said Israelsen in a recent interview with Nutra-Ingredients. “We sense that the issue is substantially more significant than dietary supplements companies think,” he said. Speakers at the symposium included Courtney Pineau, assistant director of Non-GMO Project; Robert Craven, CEO, FoodState/Megafood; John Fagan, Ph.D., founder of Global ID; Sandy Kepler, CEO of Foodchain Global Advisors; Adam Ismail, executive director of GOED; Steven Hoffman, managing director of Compass Natural Marketing; and Ken Roseboro, editor and publisher of The Organic & Non-GMO Report. For info visit www.unpa.com.

After Being Rejected by Consumers, Will GMO Spuds Make a Comeback? While the FDA weighs approval of GMO salmon, a dozen years after Monsanto ditched its GMO potato after disappointing sales, an Idaho company, J.R. Simplot, asked FDA in mid-May to approve five varieties of GMO potatoes. The varieties have been genetically engineered to avoid black spots and designed to have less acrylamide, a naturally occurring but potentially toxic chemical. Simplot, according to MSN News, sells potatoes to McDonald’s for its French fries, and McDonald’s rejects potatoes with black spots. The FDA is also reviewing the “Arctic” apple, genetically engineered by Canada-based Okanagan Specialty Fruits to resist turning brown when cut. While Simplot said 20 field trials demonstrate that GMO potatoes are virtually identical to their unmodified cousins, Bill Freese, senior policy analyst with Washington, DC-based Center for Food Safety, said that genetic engineering is a “noisy, unpredictable process,” where the best-intentioned genome tinkering could be accompanied by unforeseen effects on human health and the environment. "The biotech approach is to change the food on a genetic level in quite frankly risky ways with inadequate regulation to adapt a crop to an industrial food system that's really unhealthy in so many ways," he said.

Who's Driving Growth in Organics?

Source: Wikimedia Commons

As sustainable food producers position for the future, they can count on the consumer to drive double-digit sales growth in organic and non-GMO products. In fact, says Wall Street analyst Scott Van Winkle of Boston-based investment bank Cannacord Genuity, the only real growth happening in the food industry today is in the natural, organic and specialty foods markets. Additionally, while California’s Prop 37 GMO labeling initiative was narrowly defeated in November, Van Winkle counters that consumer awareness of genetically engineered foods has increased dramatically as a result of media attention to Prop 37, which will only drive further growth in the natural and organic sector, he says.

However, consumers also became aware during the Prop 37 debate that the parent companies of certain leading organic brands contributed millions to defeat Prop 37, a move that created consumer backlash, exemplified by numerous negative postings on these organic brands' Facebook pages by angry consumers. Companies and brands that support GMO labeling have been lauded as heroes by core consumers.

Shoppers Seek Out Local, Non-GMO Indeed, the Non-GMO Verified Project reports 21% growth in the number of non-GMO verified products in the past year, making it the fastest growing “eco-label” in the U.S., says SPINS.

Buying organic food and products with environmentally friendly packaging makes shoppers feel more positive about their choices, and nearly half (46%) of U.S. shoppers seek out organic and local food, says PricewaterhouseCoopers in its annual report Experience Radar 2013: Lessons from the U.S. Grocery Industry, published in December.

Additionally, shoppers are willing to pay on average a 4% premium for local and organic products, with certain demographics willing to pay premiums of up to 27% for local and organic, and up to 30% on recyclable packaging, says the report.

Financial Markets Respond Seeing the growth in consumer demand for healthy and eco-friendly products, in 2012 the public financial markets opened again after several years to natural and organic products companies, and Cannacord's Healthy Living Index continues to outperform the S&P 500.

In July, Natural Grocers by Vitamin Cottage (NYSE: NGVC), a retail chain founded in the Denver area in the 1950s by health food pioneer Margaret Isely, raised more than $100 million in an initial public offering. Earlier, in March, natural and organic foods brand leader Annie’s Inc. (NASDAQ: BNNY) impressed analysts and industry alike with the biggest opening day gain in stock price in nearly a year. WhiteWave Foods (NASDAQ: WWAV), maker of Horizon and Silk natural and organic products, raised nearly $400 million in a late October IPO. Additionally, popular East Coast gourmet food chain Fairway Market filed in September to raise $150 million.

Organic is creating jobs, too – more than 572,000 U.S. jobs were created in the organic sector in 2010, at a rate 21% higher than the conventional food industry, according to a 2012 Organic Trade Association study. With 9.5% growth in 2011, U.S. sales of organic products totaled $31.5 billion, says OTA, representing 4.2% of overall U.S. food sales.

"Organic lifestyles are not a passing trend. Expect this trend to grow exponentially in the coming years," PricewaterhouseCoopers advised grocers.

Adapted from Compass Natural News, Winter 2013.

At the Epicenter: Arran & Ratana Stephens of Nature’s Path Foods

For Immediate Release:

At the Epicenter Presents Arran & Ratana Stephens of Nature’s Path Foods

Arran and Ratana Stephens, passionate entrepreneurs, organic food pioneers, and founders of Nature's Path Foods, North America’s largest organic, independent, non-GMO breakfast foods company, will be featured at “An Evening at the Epicenter” in Boulder on Thursday, October 18, 2012.

An Evening at the Epicenter is produced by Best Organics Inc. and Compass Natural LLC and hosted by the Sterling Rice Group.

Boulder, CO (October 8, 2012) – Nature’s Path Foods founders and Co-CEOs Arran and Ratana Stephens took an uncompromising path to create a triple-bottom line, family owned business spanning three generations – one of social responsibility, sustainability and financial viability. The company began with small roots and is now North America’s largest organic, independent, non-GMO breakfast foods company, employing hundreds of people at state-of-the-art facilities in Washington and Wisconsin. The company’s headquarters are based near Vancouver and additionally owns and operates a 3,000 acre cooperative farm.

The Stephens’ will share insights, perspectives and lessons on how to build and preserve an enduring family business. Both are natural entrepreneurs who balanced taking riskswhile conserving resources and will share their wisdom with established and aspiring entrepreneurs.

In addition to providing high quality certified organic breakfast foods, the company is committed to the larger cause of sustainable agriculture, and is a charter supporter of Proposition 37, the California Right to Know ballot initiative to label genetically engineered foods. The company sources organic grains including kamut, corn, oats, whole grain wheat and brown rice from North American farmers and imports fair trade ingredients such as cocoa, sugar cane, molasses, and spices.

“We are pleased and honored to host such organic food pioneers as Arran and Ratana Stephens to interact with the Boulder natural, organic and sustainable products community. Having spent 40 years building their company and serving as founding leaders in the organic market, their message will be of great value to not only seasoned leaders but emerging entrepreneurs as well. Their message is important because it is an ideal model of how to support a family legacy in your business,” comments Steven Hoffman, Managing Director of Compass Natural Marketing and Co-Producer of At the Epicenter, the speaker series bringing thoughtful leaders in sustainability to the Boulder community.

Nature’s Path Foods’ triple bottom line mission inspires corporate support of initiatives including Bite4Bite, a one-for-one donation to a local food bank; Gardens for Good, granting money to local non-profits to create community garden projects; 1% for the Planet Members, to which 1% of EnviroKidz product sales are donated; and the California Right to Know campaign for mandatory GMO labeling.

Ratana, often described as the ‘heart’ of the company, is an award-winning entrepreneur and received the YWCA Woman of Distinction Award and Bright Lights Award from the Pacific Immigrant Resource Society. She has a M.A. in English Literature and a B.A. in Psychology and began her career in India as a college lecturer.

Arran grew up on his family's organic farm in Vancouver - the inspiration behind Nature's Path - and is author of The Compassionate Diet, founding member of the Non-GMO Project, and board member of the Rodale Institute. He is passionately involved in the Prop. 37 consumer right to know initiative to label genetically engineered foods.

Together, Arran and Ratana have four children, two of whom are directly involved in leadership operations of the business.

The evening will include a welcoming reception beginning at 5:30pm followed by an engaging conversation by Arran and Ratana Stephens, and will be hosted in the downtown Boulder offices of the Sterling Rice Group. For press passes or more information, please contact Shoshana Romer, shoshana@compassnaturalmarketing.com. Tickets are available atwww.naturespathfoodsattheepicenter.eventbrite.com.

About An Evening at the Epicenter An Evening at the Epicenter is a series of interactive talks for entrepreneurs and business and community leaders in the $300-billion market for natural, organic, sustainable and socially responsible products and services. An Evening at the Epicenter is produced by Best Organics Inc., a leading organic gift and brand promotions company; and Compass Natural LLC, a leader in LOHAS communications, public relations, strategic marketing and business development.

Launched in 2010, An Evening at the Epicenter has featured Horst Rechelbacher, Founder of Aveda and Intelligent Nutrients; Bill McKibben, Founder of 350.org; John Elstrott, Chair of Whole Foods Market; local economies expert and author Michael Shuman; Fox Health News correspondent Chris Kilham, and others. An Evening at the Epicenter is well attended by business, community, academic and student leader from the Boulder/Denver region.

At the Epicenter Sponsors Sponsors include Whole Foods Market, Sterling Rice Group, New Hope Natural Media, Mychelle Dermaceuticals, Earth Balance, Glutino Foods, Udi’s Gluten Free, Transition Colorado, Pax World Investments, Bay State Milling, St. Claire's Organics, Organic Vintners, Eco-Products Inc., Boulder Valley Media Alliance, Boulder Ice Cream.

About Best Organics Inc. Best Organics Inc., a majority woman-owned company, is a leading provider of premium, hand-packed, organic and eco-friendly gift basket collections featuring gourmet products from local, regional and U.S.-based producers and leading brands. Its gift collections are presented in beautifully illustrated, reusable gift boxes, and are available online atwww.AmericasBestOrganics.com, and for corporate gifting. Best Organics Inc. is a member of the Organic Trade Association, Colorado Proud, and Naturally Boulder, and is a Green America-approved business. Contact gifts@bestorganics.com or call 303.499.ORGANIC (6742).

About Compass Natural Marketing Compass Natural Marketing, established by organic and LOHAS industry veteran Steven Hoffman and based in Boulder, CO, brings more than 25 years of experience in natural and organic products sales, marketing, public relations, communications, research, event planning, special project assignments and strategic industry guidance to businesses involved in the $290 billion market for natural, organic, sustainable, and socially responsible products. Visit www.compassnatural.com, contactinfo@compassnaturalmarketing.com or call 303.807.1042.

Natural, Organic Foods Tracking 10% Growth

Source: Wikimedia Commons

We are pleased that Compass Natural Marketing was included as a source in New Hope 360's 2012 annual Market Overview of the natural and organic products industry. Here's an excerpt, below. For the full story, click here.When it comes to natural products hotbeds, Louisville, Ky., doesn’t make the top 10—or maybe even the top 40. But last year, the five Rainbow Blossom Natural Food Markets in the Louisville area posted 9 percent sales growth. Even more impressively, the stores—which range from 3,500 to 7,500 square feet—did this while competing with a Whole Foods Market, a new Trader Joe’s and a Vitamin Shoppe for the city’s natural products audience.

The fact that eight naturals stores—soon to be joined by two more: Earth Fare and another Vitamin Shoppe—could thrive in an area that Rainbow Blossom Chief Operating Officer Summer Auerbach diplomatically calls “not the most progressive” illustrates the post-recession strength of the natural and organic industry. Indeed, Natural Foods Merchandiser’s 2012 Market Overview Natural Retailers Survey shows that nationwide, sales of all natural and organic products (including dietary supplements) within all channels jumped 10 percent to nearly $91 billion last year.

The natural channel (which includes independent and chain natural products retailers) continued to generate the lion’s share of sales in 2011, growing 9 percent to $37 billion. Although growth in the natural channel was better last year than in 2010 (when sales expanded just 7 percent), mass market retailers—particularly club stores—remain hot on the heels of the naturals stores and, in fact, grew their sales of natural and organic products by 11.2 percent, to $36 billion, in 2011, according to NFM’s Market Overview survey.

Conducted in collaboration with Nutrition Business Journal, a sister publication, NFM’s research shows that growth of natural and organic products sales in all channels is being fueled by a variety of factors: consumers who are becoming more educated about health and environmental issues; foods that taste as good or better than their conventional counterparts; consistent, favorable media attention about the merits of natural and organic products; the growing foodie and farm-to-table movements; and even the rising popularity of yoga.

“The number of natural products shoppers has increased so much that stores like Whole Foods are now opening in secondary markets like Basalt, Colo. [located near Aspen],” says Steven Hoffman, managing partner of Boulder, Colo.-based consulting firm Compass Naturals. Hungry and well capitalized for expansion, Whole Foods is on track to open between 24 and 27 new stores during its fiscal year 2012 and another 28 to 32 in fiscal year 2013, the company’s co-CEO Walter Robb told analysts in February.   (Read more...)

Source: Natural Foods Merchandiser, June 2012, published by New Hope Natural Media.