Hemp Industry Call to Action: Vote Hemp Urges Community to Sign Petition Calling for Congress to Allow 1% THC Levels in Hemp
This article originally appeared in Let’s Talk Hemp’s July 9, 2020 newsletter edition.
By Steven Hoffman
Washington, DC-based advocacy group Vote Hemp is urging the hemp community to take advantage of a narrow window on Capitol Hill to sign and submit a petition telling Congress to change the legal definition of hemp to allow 1% THC. Arbitrarily set by Canadian cannabis researcher Dr. Ernest Small in the 1970s, the currently allowed 0.3% limit has proved to be problematic for growers, producers and manufacturers alike, and Vote Hemp and its supporters feel that action has to be taken now.
Even Dr. Small agrees, more than four decades later, that “a 0.3% level is very conservative,” he told Cannabis Now in December 2018. He stressed that the allowed 0.3% THC designation for hemp has had negative implications for biodiversity. “0.3% is proving a little problematical for those who wish to produce some cultivars,” he told Cannabis Now. “It’s an especially stringent criterion [for] those who want to produce CBD. Most of the varieties selected for that have in excess of 0.3%, which is kind of inconvenient.”
“We’ve been trying to think strategically; I don’t want to create false hope given that Congress is going on summer recess in a month, and may not get much done in the last few months of the general election year,” said Eric Steenstra, Executive Director of Vote Hemp. “However, farmers and producers are frustrated, and we need to start making some noise about this. We hope to submit as many signatures as we can in the next 30 days, and encourage all members of the hemp community to sign and share the petition with their friends, colleagues and co-workers.”
In changing the definition, “there would be very few cases of anybody getting their crop destroyed. While the industry continues to work on more stable varieties, people would still have to be careful, but if we moved to 1%, the number of samples that would test hot would be very limited,” Steenstra said.
“Vote Hemp had advocated for a higher level early on, but that did not make the cut in the final legislation,” Steenstra continued. “We had to work across the aisle and made a compromise to help make hemp legal back then, but now, it’s proven the standard doesn’t work for farmers. With both the Farm Bureau and the National Farmers Union having policies on the books supporting higher THC levels (1% for the Farm Bureau; 3% for the Farmers Union), that weighs in our favor.”
The petition, issued this week, beseeches Congress that “many farmers have had their crops destroyed due to the outdated definition of hemp. The hemp industry is creating good jobs in farming and manufacturing and we need to ensure the industry can continue to grow and compete with other countries that allow higher THC levels.”
“We are hoping there will be action; there’s a desperate need,” Steenstra said. “We need to get as many people involved and to recognize that this is critical to the future of the hemp industry. We need the community to step up in a big way…and quickly!”
Steenstra also emphasized that the most important thing is to get as many farmers as possible to sign the petition. “We are upset whenever we see a farmer lose their crop because of this. It’s not acceptable. We have to let Congress know that the industry is on the verge of taking off and this limit is hurting farmers and holding us back.”
Text of the Petition
Hemp is important to the future of farming in the U.S. and will create farming and manufacturing jobs for sustainable and healthy USA grown products. The 2018 Farm Bill authorized hemp production but used an outdated definition of hemp that does not work for farmers or the hemp industry. The current definition limiting hemp to 0.3% THC has proven unworkable forcing many farmers to destroy their crops because they were slightly over the limit. We need Congress to change the definition of hemp to allow up to 1% THC (tetrahydrocannabinol) so that farmers can grow hemp crops without fearing that they will later have to destroy them.
Please add your name to the petition urging Congress to redefine hemp as up to 1% THC and share this with your friends.
To Congress:
I support changing the definition of hemp to allow up to 1% THC in the plant. Many farmers have had their crops destroyed due to the outdated definition of hemp. The hemp industry is creating good jobs in farming and manufacturing and we need to ensure the industry can continue to grow and compete with other countries that allow higher THC levels. I urge Congress to change the definition of hemp now so that no more farmers will lose their crops.
Read and sign Vote Hemp’s 1% Petition here.
Let’s Talk Hemp Media Leads the Way with Virtual and In-Person Events; Announces New Partnership with RAD Expo, Las Vegas, NV, Las Vegas Convention Center, October 6-7, 2020
FOR IMMEDIATE RELEASE
Let’s Talk Hemp Media Leads the Way with Virtual and In-Person Events; Announces New Partnership with RAD Expo, Las Vegas, NV, Las Vegas Convention Center, October 6-7, 2020
National Media Platform Connects Hemp Community with Fall Trade Shows, Sets Sights on 2021, and Opens Doors to Retail and Dispensary Opportunities Nationwide.
Denver, CO (July 8, 2020) – Let’s Talk Hemp, a nationally renowned media platform, is excited to announce its latest endeavor to generate new opportunities for the hemp and CBD industries by co-producing the cannabis-themed RAD (Retail and Dispensary) Expo. Now in its fourth year, RAD Expo is a business-to-business cannabis event, taking place this fall at the Las Vegas Convention Center, October 6-7, 2020. Let’s Talk Hemp is partnering with RAD Expo for the first time and intends to bridge hemp, CBD, and cannabis together to market to retail and dispensaries.
A 100% B2B trade show, the expo will feature more than 300 retail-specific exhibitors and vendors in one setting. “Let’s Talk Hemp is proud to collaborate with RAD Expo. The in-person fall event sets the stage for the future of both industries and is a must-attend for hemp companies looking to expand their footprint in the cannabis market,” says Morris Beegle, Let’s Talk Hemp Media Co-founder and Producer of NoCo Hemp Expo and Southern Hemp Expo.
Safety First: RAD Social Distancing Measures
Let’s Talk Hemp, in conjunction with Marijuana Venture and Cannabis & Tech Today, will co-produce the in-person expo and they are working very closely with organizers and production and venue partners to enforce strict social distancing and safety measures for attendees, exhibitors, and vendors.
“We are taking extended measures to ensure our team, attendees, and community's safety and wellness during this time. We're fortunate to be working with some of the most experienced venue and event partners, such as the Las Vegas Convention Center; Freeman Event Management and our hotel partner, Sahara Cares,” said Greg James, founder of RAD Expo and Marijuana Venture.
The RAD Expo plans to implement the following COVID-19 precautions:
SOCIAL DISTANCING: Six-foot markers and spaces will be placed between exhibit booths, and time slots will be put in place at registration to control crowds.
PERSONAL PROTECTIVE EQUIPMENT: Attendees will be provided with sponsored cloth masks and hand sanitizer for their protection and the protection of those around them.
SANITATION: All registration devices and microphones will be wiped down after every use. Hygiene reminders will be placed with signage and notifications on the RAD Expo App. There will be additional designated sanitation sites stocked with hand sanitizer and disposable disinfectant wipes.
Beyond RAD + Save the Dates
Beegle and the Let’s Talk Hemp Media team are looking forward to producing more events such as this fall’s RAD Expo, a Virtual conference and trade show in November, NoCo Hemp Expo’s NoCo7 event that will take place March 25-27, 2021 in Denver, CO, and the Southern Hemp Expo, slated for Aug. 20-21 in Nashville, TN.
“We have already had a powerhouse schedule of virtual events this year, with successful turnouts at both our EARTH WEEK Virtual Conference and Trade Show and our most recent Experience Hemp SUMMER SOLSTICE event. We have our eyes set on charting a successful course to connect our community and industry with in-person events this fall and in 2021,” adds Beegle. "It will be exciting to see familiar and new faces, both in-person and online. We can unify and better serve the community with informative and appealing educational events.”
Mark your calendar for these upcoming educational events:
Third Virtual Event, November 10-12, 2020, hosted by We Are For Better Alternatives (WAFBA), in conjunction with NoCo Hemp Expo and Let's Talk Hemp Media. Details and registration will open soon.
NoCo Hemp Expo will now take place March 25-27, 2021. Due to the coronavirus pandemic, organizers had to shift plans from 2020 to 2021.
Southern Hemp Expo, Aug. 20-21, 2021, Nashville, TN.
Be RAD, Register Here
RAD Expo Registration is FREE for qualified industry professionals until July 31, 2020. After July 31st, there will be a 2-day general admission charge of $100.
Register Here: https://www.theradexpo.com/register.
Exhibitor Information:
Interested in exhibiting at RAD Expo? Select your booth at https://www.theradexpo.com/booth-registration. For information on NoCo7, Southern Hemp Expo and other events, visit www.nocohempexpo.com.
About Let’s Talk Hemp Media
Let's Talk Hemp is a leading media platform that focuses on “Changing the Cannabis Conversation.” We curate news, education, and information about hemp and cannabis to our podcast listeners, newsletter subscribers, and digital magazine readers so that they can learn more about the industry and get tips and tricks on the latest technologies. Subscribe to our YouTube channel and learn about everything from legal updates, farming, production, and new products entering the hemp and cannabis space. Let's Talk Hemp is a publication of the Colorado Hemp Company (a division of We Are For Better Alternatives WAFBA) focused specifically on the subject of industrial hemp and cannabis. Let’s Talk Hemp features news globally and shares the benefits of cannabis on health, energy, manufacturing, and the planet (HEMP). Subscribe to Let’s Talk Hemp’s weekly hemp and cannabis industry newsletter at www.letstalkhemp.com.
Contact
Steven Hoffman, Compass Natural, 303.807.1042, steve@compassnaturalmarketing.com
Morris Beegle, Colorado Hemp Company, 970.541.0448, info@nocohempexpo.com
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Register Today! Join ShiftCon Media CEO Ari Adams on Compass Coffee Talk, July 23, 11:30am EDT
The Face of New Media, Healthy Lifestyles, and Diversity: Meet Ari Adams, CEO of ShiftCon Media
Episode 5 - Thursday, July 23, 11:30 am – Noon EDT
Zoom, Admission is Free
Shift happens! Hear how your brand can and should be a part of it!
Join us for the 5th episode of Compass Coffee Talk featuring Ari Adams, CEO of ShiftCon Media, a national, eco-wellness online influencer community that focuses on food, wellness, health, sustainability, and diversity.
Hosts Bill Capsalis and Steve Hoffman will chat with special guest Ari Adams on July 23, 11:30 am EDT, for a power-packed 30 minutes. Learn how influencers are adapting to change in a continually evolving time of uncertainty and how well-established brands and those in start-up mode are pivoting quickly to reach target audiences.
Is your brand ‘shift-ready?’
Ari will share the latest update on the upcoming ShiftCon Media virtual conference taking place this Fall and will share the platform’s vision for the remaining half of the year.
Marketers are encouraged to join the conversation and explore new ways for brands to connect and engage with a diverse range of influencers who support healthy lifestyles. Compass Coffee Talk supports ShiftCon’s commitment to creating a profound and positive impact on the world around us; because now is the time to come together and leverage our collective voice.
Ari Adams is a parenting and lifestyle blogger, author and CEO of the annual ShiftCon Eco-Wellness Influencer Conference for eco-friendly and health-conscious bloggers and influencers. She holds a master’s degree in marketing and has more than 15 years of experience in the media industry. Ari is the lady behind the lifestyle and parenting blog Love, Peace & Tiny Feet; where she shares her adventures of balancing parenthood, holistic wellness, DIY crafts, recipes and other tips for parents.
THANKS TO OUR SPONSOR, ALLEGRO COFFEE! THEY WILL GIVE AWAY ONE FREE BAG OF COFFEE ON THIS WEEK’S EPISODE OF COMPASS COFFEE TALK.
About Compass Coffee Talk™Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.
Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry. Learn more.
COVID Crisis Update: Natural Products Retailers Respond to New Normal by Opening New Stores
This article originally appeared in Presence Marketing’s July 2020 newsletter edition and on New Hope Network’s IdeaXchange.
By Steven Hoffman
As the United States slowly re-opens for business with the coronavirus pandemic entering its fifth month, many Americans are still playing it safe as cases continue to surge in states and regions throughout the country. Restaurants and bars are re-opening, however, with crowd capacities limited by public health regulations, food service businesses are still nowhere near where they once were. And, as the pandemic has shuttered day camps, benched Little League games, cancelled concerts and limited other warm-weather activities, families and kids are staying much closer to home this summer.
As such, grocery stores – including the nation’s natural foods stores – continue to play an essential role in feeding Americans during the pandemic crisis. Several natural food retailers we talked to anticipate there will not be much of a traditional “summer slump” in sales this season.
In fact, a number of retailers are taking advantage of the moment to open new stores. Boulder-based Alfalfa’s Market announced in mid-June it was taking over a former Lucky’s Market location in nearby Longmont to open a third store to serve Colorado’s Front Range population. Los Angeles-based Erewhon is adding two new stores to its five-store chain in the next 12 months. PCC just opened its 14th natural foods store in the Seattle area; and while it postponed Grand Opening celebrations, Natural Grocers opened a new store in Cedar City, UT, on June 10. Publicly held natural products retailer Sprouts, which CEO Jack Sinclair describes as “more of a farmers market than a grocer,” is moving ahead with plans to open 20 stores in key markets across the country, and like many retailers, has expanded at-home delivery and curbside pickup, as well as significantly increased its e-commerce sales. In addition, pandemic notwithstanding, conventional grocer Schnuck’s unveiled its brand new “EatWell” natural food concept store in Colombia, MO, on June 24.
To help reassure customers and workers, many of these retailers have enacted strict COVID guidelines. For example, Maryland-based MOMs Organic Market published COVID-19 Action Steps on its website, and Natural Grocers also informs its customers about COVID safety on its website.
“Grocery Is the Business to Be In”
“Our comps are off the charts,” said Tony Antoci, CEO and owner of Erewhon, the legendary natural foods chain in Los Angeles. Antoci, a food service distribution veteran, purchased the original single Erewhon location in 2011, and self-financed the growth of the chain to five stores, with two additional locations planned to open between now and March 2021. “We’ve seen a 300-400% increase in grocery and produce sales since the coronavirus crisis began, he said. “Protein sales grew four-fold until the end of May; now we are starting to see a leveling off, but our deli and prepared food sales are increasing as our customer base starts to get back to a new normal. We also ramped up our web ordering and delivery capabilities – something we were trying to engage but never got around to – and we had a healthy online business in a week. Now, we are averaging 200-250 online orders across five stores per day. If this was a restaurant, I would not open a new location, but grocery is the business to be in,” Antoci said.
At Jimbo’s Naturally, a five-store independently owned chain in San Diego, customer counts have decreased since the coronavirus crisis began, but they’re more than made up for in the increased average purchase, noted founder and CEO Jimbo Somek. “People don’t want to make as many trips if they can avoid it, but the average ticket is twice as high as it was before the pandemic,” he said. Somek also admitted, “It’s one thing to plan for increased demand, however, it’s another thing when the stores are doing two to three times the sales they were doing the day before. There were a lot of long days,” he said. When asked about potentially opening a new store, Somek replied, “I don’t know if it’s a good time or not to open new stores. The challenge is to know where all this is going,” he reflected.
UNFI Stock Surges
In serving all this retail growth, leading natural foods distributor UNFI (NYSE: UNFI) saw its stock price surge 45.8% in the past three months. “Several food companies are benefiting from rising demand owing to increased at-home consumption and stockpiling trends amid coronavirus,” wrote analysts at Zacks Equity Research in late June. “The packaged food space is especially gaining on such trends as the lockdown has prompted shoppers to buy and hoard packaged food and beverages. This has boosted sales of several food players, including United Natural Foods Inc. (UNFI). United Natural’s ability to cater to the rising demand amid the pandemic reflects its robust market position and the important role it plays in North America’s food supply chain,” the analysts concluded.
In related news, Sprouts Farmers Market (Nasdaq: SFM) was ranked on June 18 by Zacks Equity Research as a top growth stock, acknowledging that it is a long-term beneficiary of the pandemic. Kroger (NYSE: KR), too, has been outperforming the stock market as a beneficiary of the “eat at home” trend driven by the pandemic, along with the company’s moves to cut $1 billion in costs and invest in digital growth. Bank of America Merrill Lynch analyst Robert Ohmes reiterated a Buy rating on June 19, noting that he believes Kroger will continue to see strong sales even as COVID-related restrictions are lifted in many areas. Natural Grocers (NYSE: NGVC), too, saw its stock price more than double to well over $12 per share at the end of June from a low of $5.80 on March 12 when the pandemic first struck the U.S.
Consumers Are Leaning in to a Healthy Lifestyle
Driving sales is a growing number of consumers seeking out healthier, more nutritious products during the COVID-19 crisis to boost immunity and health. “Far from abandoning their natural lifestyle during COVID-19, natural products shoppers are widening their preferences, seeking and avoiding various ingredients, label claims and certifications,” states COVID-19 and Navigating the Path Ahead: Supporting The Natural Products Consumer, a report published on May 29, 2020, by leading market research firms SPINS and IRI. Leading the charge, said SPINS/IRI, are paleo products, plant-based meat alternatives, baking products and staple items, household cleaning items, soap and bath preparations, natural remedies to help support immunity and reduce stress and anxiety, and value-based products as many people struggle through unprecedented economic times brought on by the COVID-19 crisis.
In addition, according to Laura Batcha, CEO of the Organic Trade Association, consumers are purchasing more organic products than ever before. Organic products sales topped $55 billion in 2019, up 4.6% from the previous year, and as health comes into focus, many organic categories have seen demand increase even further. Organic produce sales jumped 50% in the early days of the pandemic, and by spring 2020, sales were still up by more than 20%, Batcha noted.
“It’s hard to know what’s ahead of us, but consumers will continue to trust in and depend on the organic label,” said Batcha. “Organic producers and processors – indeed the entire organic supply chain – have been working around the clock through this difficult time to keep our stores filled with healthy, toxic-free and sustainably produced organic food and products. Organic is going to be there for the consumer.”
Speaking at the United Fresh LIVE virtual conference on June 17, Tonya Antle, cofounder of the Organic Produce Network (OPN), corroborated that organic produce has outperformed the conventional produce category at retail during the pandemic. According to Antle, OPN’s latest retail scan data show that both volume and dollar sales of organic produce were up more than 16% during the month of May. In addition, according to OTA data, organic staple categories including dairy, eggs, bread, pasta, rice, grains and baking supplies are expected to see increased growth in 2020, along with organic vitamins and immunity-related products.
Controversy over Face Masks
The surge in grocery and natural products sales has certainly not come without its challenges. The wearing of face masks, required in many municipalities and public and commercial places, for instance, has become divisive and some conflicts in stores have happened. According to TribLive, more than 30 lawsuits have been filed against Giant Eagle over the grocery chain’s face mask policy, claiming it is discriminatory under the Americans with Disabilities Act. The Mirror UK reported on June 22 about a Walmart incident in which a defiant customer refusing to wear a mask got into a scuffle with a security guard.
“It’s a very difficult position for us to put our staff in, whether it’s an 18-, 19-year-old college student working, or a single mom, a dad,” Bryan Neiman, operator of Neiman’s Family Market, a small Michigan grocery chain, told Time Magazine in reference to face masks. Neiman’s has signs posted asking customers to wear facial coverings, and shoppers can get a mask at customer service, he said. But, according to Time, he’s telling his employees not to confront mask-less customers, for fear of triggering a confrontation. The magazine reported that similar incidents have happened all over the country.
Texas-based grocer H-E-B, which initially required customers to wear face masks in mid-April, announced in early June that it was relaxing its policy; now, shoppers are no longer required to wear face masks in its stores, reported Grocery Dive. The chain still encourages customers to wear face coverings. In addition, wearing masks will remain mandatory for employees and vendors, Grocery Dive reported.
Seasonal Promotions Affected in 2020
As retailers scrambled to respond to the tectonic shifts in consumer buying behavior brought on by the coronavirus crisis, any focus on seasonal sales and promotions was stalled, said Donnie Baldwin, Senior Director of Conventional Grocery for the Central and Western U.S. for leading natural products broker Presence Marketing / Dynamic Presence. “For 2020, we are staying busy serving our retail partners’ immediate needs,” he said, but the crisis impacted promotional sales and planning for such holidays as Easter, Mother’s Day, Memorial Day, Father’s Day and more. “However, while retailers may miss the seasonal sales this year, they’ve got their hands full keeping the store shelves stocked as full as they can,” he said.
“The good news is the average dollar ring per basket is up, but while the head count of customers shopping in stores is down – or they are shopping quickly through the store – it has impacted sales of seasonal items and impulse items,” Baldwin said. “As we talk with account executives around the country, buyers are still focused on staple items. They want to make sure they’ve got control of the supply chain on staples. That’s been a priority, and the good news is we are starting to see them get a handle on that.”
Baldwin’s counterpart, Jim Crotty, Senior Director of Conventional Grocery for the Eastern U.S. for Presence Marketing, added that retailers are looking at Fall and the holidays, but many are still not quite ready to focus on new items, or execution has been slowed. “Operations and taking care of their people are coming first right now,” said Crotty. “Come September, they might start bringing new products in; it is just happening at a slower pace. We are presenting holiday items such as eggnog and pumpkin flavors now and will continue to do so. Hopefully, we will be able to see things open up in November/December,” he added.
Meanwhile, Baldwin noted that some of his team members have been getting creative in leveraging technology and developing YouTube video presentations for retail partners, a sample of which can be viewed here.
“I really feel that by late in the Third Quarter and early in the Fourth Quarter, things are going to start opening up and retailers will start getting back to the basics,” Baldwin predicted. “This industry is very adaptive and resilient and we always look to find a way to carry on.”
Resources
The Pandemic Shows Us the Genius of Supermarkets: A Short History of the Stores that – Even Now – Keep Us Supplied with an Abundance of Choices
Atlantic Magazine, July/August 2020
https://www.theatlantic.com/magazine/archive/2020/07/supermarkets-are-a-miracle/612244/
Market Research Report: COVID-19 and Navigating the Path Ahead – Supporting the Natural Products Consumer
SPINS/IRI, May 29, 2020
https://www.iriworldwide.com/IRI/media/Library/SPINS-Joint-Thought-Leadership-5-28-20.pdf
Tracking Coronavirus Closures at Food and Beverage Factories
By Food Dive, Updated June 19, 2020
https://www.fooddive.com/news/tracking-coronavirus-closures-at-food-and-beverage-factories/576559/?mc_cid=5c0261a1e5&mc_eid=49fe8c77e3
What’s Next for the Hemp Industry? Experience Hemp SUMMER SOLSTICE Virtual Conference & Expo Highlights Innovation; Call for Unity
This article originally appeared in Let’s Talk Hemp’s June 25, 2020 newsletter edition.
By Heather Collins
2020 has been a pivotal year due to the coronavirus pandemic, which has made a tremendous impact nationwide and globally. These uncertain times have forced businesses, farmers, restaurants, and the hemp community to shift quickly and respond to safety concerns to protect industries.
The producers of the NoCo Hemp Expo and the Experience Hemp SUMMER SOLSTICE Virtual Conference & Trade Show made the hard decision to reschedule NoCo7 to the following year, which will now take place March 25-27, 2021.
“The decision to reschedule NoCo7 was not easy, but we felt the need to protect everyone’s health and safety. This community is so collaborative. That’s what’s going to make this industry stand out as we look towards the future,” said Morris Beegle, Let’s Talk Hemp Media Co-founder and Producer of NoCo Hemp Expo. “We’re excited about in-person events, but until we get the green light, we will continue to plan virtual conferences that further educates and unites our industry.”
Additionally, NoCo Hemp Expo producers are expanding multimedia platforms, including a year in review, fall virtual conference & trade show, a hemp-themed digital magazine, podcasts, weekly newsletter, and more. Stay tuned for additional details on NoCo7 at www.nocohempexpo.com.
SUMMER SOLSTICE Conference Highlights Innovation; Call for Unity
As NoCo7 organizers chart a new course for the second half of this year, the recently held Experience Hemp SUMMER SOLSTICE Virtual Conference & Trade Show, held June 16-19, 2020, was well received.
More than thirty guest speakers, including presenting sponsor PureHemp Technologies, kicked off conversations centered on the evolution of hemp and its potential during these ever-changing times. Participants accessed six live webcast Supersessions, which covered important topics relevant to the industrial hemp market today:
Innovation: Technology Advances Across the Hemp Supply Chain
Investor Outlook & the Financial Future of The Hemp Industry
Food Sovereignty, Nutrition & Hemp’s Role
Bast & Hurd: Industrial Hemp Opportunities in Building, Biocomposites, Biofuels & More
The 2020 Hemp Crop: Harvesting, Drying, Handling & Finding Markets
Among the highlights included an earnest discussion on the arbitrary .3% vs. the 1% solution in which hemp advocates declared the current ruling as a roadblock for farmers. “We need to change federal guidelines while working with the USDA. We can do that by telling the stories of the farmers. Their stories will hopefully get us there so we can stop decriminalizing the pioneers of our industry. Without the farmers, we have nothing,” says Doug Fine, bestselling author, hemp farmer, and renowned industry advocate.
Beegle agreed, “There is so much passion in our industry, and this .3% burden should not be on the farmer’s shoulders. Our only option in getting legislation passed is to stand together. We know there is a better solution out there, we need to unite on all fronts.”
Additionally, panelists discussed hemp’s potential in using the entire plant for fiber, textiles, building materials and more, and addressed hemp as a key ingredient for food sovereignty.
Participants also heard from investors regarding hemp’s economic outlook and viability as a commodity beyond the CBD market. “Fiber and hurd are the next big thing. Before, it was all about CBD and smokable flower. Let’s get the right suppliers with the right buyers and bring the best products to market,” said Julie Lerner, CEO, PanXchange, Inc. “We are in a nascent stage, and we still have some growing up to do, but need to be taken seriously.”
Geoff Whaling, a hemp industry leader, offered sound advice for hemp farmers and manufacturers during these uncertain times. “Buckle down. Believe in your business and do not let anyone test your conviction,” said Whaling, Collective Growth Corporation. “In the words of a famous quote, ‘The dreams never die, just the dreamers.”
Dreaming big might be the plan for many hemp farmers this year, but dreaming too big without the right strategy could be troublesome. “I encourage every farmer out there right now to talk about their end-use. Have a plan in place for the hemp you put in the field today,” said Andrew Bish, CMO, Bish Enterprises. “Decisions made later are not good – sort it out now, before it’s too late.”
Traceability and supply chain were also significant points of discussion during the conference. Panelist Joe Witte urged companies to integrate an authentic supply chain and one that is trustworthy. “Embrace traceability because the companies and manufacturers that realize that traceability is everything are the ones who will win.”
Sustainability and Food of the Future
Hemp plays a vital role in sustainability and has the potential to be a superfood. It is high in antioxidants and could appeal to people everywhere for its health benefits. However, there are still some challenges that food brands face in order for them to include hemp as an ingredient in food.
“We are putting a chokehold on this planet with the limitations. We need to be building the relationship with this plant,” said Winona LaDuke, hemp farmer, and nationally known environmental activist. “It’s all about cooperation these days. We need to learn together and form the next economy in equality and in our food system.”
Investors believe that there is still a learning curve when it comes to hemp, yet they remain hopeful. “The birth of an industry doesn’t happen overnight. Entrepreneurs and investors need to recalculate, especially right now,” explained Patrick Rea, CEO, and Founder, Canopy Boulder. “Hemp companies need to take a look and a lesson from the natural products industry and study its success, including dynamics, value propositions, and growth over time.”
If you are interested in learning more about the Experience Hemp SUMMER SOLSTICE Virtual Conference & Trade Show, visit the content Library and viewing pre-recorded archive footage from around the world.
What’s Next: Fall Event – WAFBA Virtual Conference and Trade Show
We Are For Better Alternatives (WAFBA), in conjunction with NoCo Hemp Expo and Let’s Talk Hemp media are also pleased to announce plans for a third virtual event coming this fall on November 11-13, 2020. Details and registration will open soon.
Making Waves in the Dairy Industry: Kalona SuperNatural™ Goes Above and Beyond During Unprecedented Times
FOR IMMEDIATE RELEASE
Certified Organic Dairy Honors June’s National Dairy Month by Supporting Regenerative Agriculture and Small Scale Family Farmers as a Sustainable Solution to Protect Livestock and Preserve the Land for Future Generations
Kalona, IA (June 22, 2020) – Kalona SuperNatural, an emerging, certified-organic, grass-fed dairy producer and brand is making waves during this year’s National Dairy Month by remaining resilient during these unprecedented times. According to the International Dairy Foods Association, National Dairy Month was created in 1937 to encourage Americans to consume more milk to fix the over surplus of product.
This past spring, many conventional dairies were forced to dispense milk because of a lack of demand. Since the pandemic began earlier this year, Kalona has been busy filling distributors’ large orders and working closely with its more than 40+ Amish and Mennonite dairy farmers in eastern Iowa.
Kalona’s CEO and Founder, Bill Evans, was recently quoted in a series of articles published by Presence Marketing, the nation’s largest independent natural and organic food brokerage firm and New Hope Network, an internationally recognized media leader in the natural products industry. Evans indicated that this is a crucial time for dairies, such as Kalona, to be recognized for the ripple they are making in helping the dairy industry regain strength.
"The conventional guys are having issues because they’ve got a large portion of their manufacturing set up for food service; there was no place for that to go a month ago, and it's still limited," Evans says. "We’ve been able to accommodate a 25-30% increase in sales volume, whereas larger producers are shorting people. Kalona SuperNatural has been more successful than others in balancing our organic milk supply."
With more than six months left on the books for the year, Kalona SuperNatural not only has its eye on the state of the industry, they are also paying close attention to the fields.
Going Beyond Organic
Kalona SuperNatural creates delicious, certified organic cream-topped dairy products that are non-homogenized and batch-pasteurized to preserve the fresh flavors. The Amish and Mennonite farmers that are part of the Kalona SuperNatural family of farms take a holistic approach to farming and have done so for the past 100 years.
The farmers believe in allowing their cows to engage in their natural behaviors and move freely in open pastures. This grazing practice mimics the natural movement of wild herds in times passed and follows regenerative agriculture methods, a sustainable approach to farming. When dairy cows are pasture-grazed, they become a boon for combating climate change.
Kalona also encourages its farmers to practice a technique called mob grazing, which means a farmer will put their herd out to graze on a small plot of land daily. They will continue to rotate the herd to various parcels of land, letting the grazed plots rest and rebuild naturally. This technique is done without the use of pesticides and fertilizers and provides cows with plants and grasses rich in nutrients. The result contains more nutritious milk for consumers.
In Support of Regenerative Agriculture
As awareness of climate change grows, Kalona SuperNatural is looking at innovative farming practices that are traditional, yet sustainable. “We are looking to utilize farms as a force for good,” says Phil Forbes, Kalona SuperNatural’s Director of Supply Chain.
“What’s beautiful about regenerative agriculture is that it’s not prescriptive,” Forbes says. “Regenerative agriculture provides us with a framework of modern techniques done sustainably. We want our farmers to manage their land in a sustainable manner that works within the context of their land. There's creative freedom in that model for farmers, and the outcome is net positive for the entire ecosystem."
Evans adds, “At Kalona, we’re ‘Dairy Proud’ all year long, beyond National Dairy Month. Every purchase of our products is a vote for a healthier planet.”
Where to Find Kalona SuperNatural
Kalona SuperNatural products are available at leading retailers in the western U.S., including Whole Foods Market, Natural Grocers, Sprouts Farmers Market, Fresh Thyme, Hy-Vee, and other independent natural food stores, co-ops, and grocers. Visit kalonasupernatural.com/store-locator.
For wholesale and sales inquiries, please contact Sharon Lake, Supply Chain Manager, sharon.lake@opengatesgroup.com.
About Kalona SuperNatural
Kalona SuperNatural is based in a thriving organic farming community in the heartland of America - Kalona, Iowa. They work with small, sustainable Amish and Mennonite family farms to produce delicious, minimally-processed organic dairy products from pasture-grazed cows. Kalona SuperNatural offers a full line of certified organic dairy products. Learn more at kalonasupernatural.com.
Media Contact
Steven Hoffman, Compass Natural, tel 303.807.1042, steven@compassnaturalmarketing.com
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Register Today! Join Fred Linder, President, Health and Nutrition, Informa and New Hope Network, on the Next Compass Coffee Talk, June 23, 11:30am EDT
Adapting to the Speed of Change: A Conversation with
New Hope Network's Fred Linder
Episode 4 - Tuesday, June 23, 11:30 am – Noon EDT
Zoom, Admission is Free
We are pleased to welcome Fred Linder to the next episode of Compass Coffee Talk. As President, Health and Nutrition, for Informa and New Hope Network, Fred will share insights from his vantage point at the helm of New Hope, one of the industry’s leading B2B information services companies and producer of the Natural Products Expos, the world’s largest natural and organic products trade gatherings.
Join hosts Bill Capsalis and Steve Hoffman and special guest Fred Linder on June 23, 11:30am EDT for a power packed 30 minutes, as Fred discusses how adapting to change is the name of the game for a company that continues to help lead, inform and stay at the forefront of a dynamic and constantly evolving industry.
Fred Linder is the President of Health and Nutrition, Informa Markets, responsible for overseeing and leading the success and advancement of the Global Health & Nutrition Group. He joined New Hope Network in 1997, which was acquired by Penton in 1999 and grew with the company, being named New Hope Network’s president in 2002 and SVP of Penton / Lifestyle in 2009 before it was acquired by Informa in 2016.
Fred has served on several boards including The Society of Independent Show Organisers, the Tuberous Sclerosis Alliance, The Coalition to Preserve DSHEA, Bastyr University, and The Dietary Supplement Education Alliance, and is on the Company Council of the International Alliance of Dietary Supplement Associations. He received a bachelor's degree in English from the University of Colorado.
Thanks to our Sponsor, Dazbog Coffee! They will give away one free bag of coffee on This Week’s episode of Compass Coffee Talk.
About Compass Coffee Talk™
Take a 30-minute virtual coffee break with Compass Coffee Talk™. Hosted by natural industry veterans Bill Capsalis and Steve Hoffman, Coffee Talk features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of any size succeed in the market for natural, organic, regenerative, hemp-derived and other eco-friendly products.
Compass Coffee Talk™ is produced by Compass Natural Marketing, a leading PR, branding and business development agency serving the natural and organic products industry. Learn more.
Chain, Chain, Chain: Natural Products Companies Take Necessary Steps to Assure Supply Chain Consistency Amid Covid-19 Crisis
Photo: Pexels
By Steven Hoffman, Compass Natural Marketing, Managing Director
This article originally appeared in Presence Marketing’s June 2020 newsletter edition and on New Hope Network’s IdeaXchange.
As the coronavirus crisis entered its third month in May, the U.S. saw concerns about its food system’s supply chain come to the fore. The media’s dramatic coverage of workers falling ill in the nation’s conventional meatpacking plants, crops wasting in the fields, and dairy farmers dumping milk continues to alarm Americans, and justifiably so, even as the country begins to open up in fits and starts.
Despite – or perhaps as a result of – President Trump’s invocation of the Defense Production Act to keep the nation’s meat packing plants open, the nonprofit Food & Environment Reporting Network (FERN) reported on May 22 that in the U.S., “at least 220 meatpacking and food processing plants and 20 farms and production facilities have confirmed cases of Covid-19, and at least four food processing plants are currently closed.” In addition, FERN estimated that “at least 19,160 workers (17,360 meatpacking workers, 1,134 food processing workers, and 666 farm workers) have tested positive for Covid-19 and at least 72 workers (66 meatpacking workers and 6 food processing workers) have died.”
The outbreaks may be even more extensive, but large-scale meat processors and state and local officials are hesitant to provide data due to a “stigma associated with the virus,” the New York Times reported on May 25.
The problem is so severe for farmers that have been producing for the institutional food service market that in mid-May, USDA Secretary Sonny Perdue appeared on National Public Radio (NPR) to promote a $3 billion plan to establish a national “CSA” style Farmers to Family Food Box Program in an attempt to distribute food direct from farmers to low income families.
"When you have the shutdown very suddenly of institutional food settings such as restaurants, schools, colleges and others, then that causes a misalignment in supply," Perdue told NPR’s Morning Edition. "And we've had to scramble in order to try to readjust that, and this food box program is one of those things which we've tried to do."
Helping Both Sides of the Equation
When asked by NPR why not give people more money through the SNAP program to help people pay for food, Perdue responded, “That may help one side of the equation…it does not help those farmers and producers who have grown this food. They cannot make it to market because the supply chain they’ve been used to dealing with – the institutional food market – is no longer there.”
In seeking to reassure Americans that their food supply is safe, Perdue told NPR, “One of the challenges we had in protein – meat, poultry, beef, pork – had been the closure of some of our processing plants there. And we've had infections in those plants that caused some temporary closures. Essentially all those plants are back open. We've turned the corner, and while some retailers are suggesting they may not have the degree of variety that they once had, we expect that to be cured very quickly. I do expect us to be back up to 85-90% production in probably a very few days or weeks,” he said.
While USDA attempts to fast-track a direct distribution program, traditional CSA (Community Supported Agriculture) programs, where consumer members buy a “share” of the farm’s “often organic” harvest, are surging everywhere across the country, including record membership signups and waiting lists, reported NPR on May 10.
Food Prices on the Rise
Of greater concern, as nearly 40 million Americans have lost their jobs since the pandemic took hold in the U.S. in mid-March, the U.S. Bureau of Labor Statistics Consumer Price Index (CPI) announced that food prices in April recorded their highest monthly increase in nearly 50 years, reported USA Today on May 21. “Though overall, the April CPI declined 0.8%, consumers on average paid 2.6% more for groceries. It's the largest one-month increase since February 1974. During the past 12 months, grocery prices rose 4.1%. Price increases in the meat, poultry, fish and egg category were the steepest,” USA Today reported.
In addition, the Department of Justice and the USDA are reported to be investigating the four largest U.S. meat packers – Tyson Foods, JBS, National Beef and Cargill, who collectively control about 85% of the U.S. beef market – for price fixing. According to Politico, supermarket consumers are paying more for beef than they have in decades, but at the same time, the processing companies are paying farmers and ranchers “staggeringly low prices for cattle.”
Is the Supply Chain Broken or Stressed?
After Tyson Foods’ Chairman John Tyson warned in late April that “the food supply chain is breaking,” Abe Eshkenazi, CEO of the Association for Supply Chain Management, in mid-May told Supermarket News, “From our perspective we don’t think the food supply chain is broken as much as it is stressed. We’re entering a different frontier, relative to food right now, and that’s food scarcity. We started to see it in the beginning of the pandemic with consumer packaged goods, specifically toilet paper and paper towels. We saw a significant run on those particular products, but what we've also seen is that the supply chain has responded, so those gaps in the supply for those particular items are being filled,” he said.
“It's taken a while for the supply chains to respond to the spike in demand, but it's also critical that we recognize that this is a spike, Eshkenazi told Supermarket News. “This is not a new demand signal at that level. When we take a look at utilization, we're not looking at an increase in terms of food or consumer packaged goods…It's just that we're seeing a shift in terms of where the demand is being sensed right now, and that is in a home-based environment.”
When asked about shortages where retailers placed limits on consumer purchases, Eshkenazi shared with Supermarket News, “As the system catches up, I think we'll see an easing of that but it also does present a problem because the quotas are not relative to family size. They're relative to the buyer. So, a family of five or six has the same quota as a family of two. We have to be aware of the current circumstances that these individuals are facing. It's not a one size fits all.”
Natural Products Manufacturers: Necessity is the Mother of Invention
Meanwhile, in the natural and organic products industry, producers and manufacturers are being driven by the rule, “necessity is the mother of invention.” By being nimble, companies are working hard to ensure a consistent supply chain for their retail and distribution customers. We talked with a few leading manufacturers and industry experts on how they are handling supply chain challenges during the coronavirus crisis. Here’s what they shared with us:
Carla Bartolucci, CEO, Bionaturae and Jovial
U.S.-born Carla Bartolucci and her husband Rodolfo are the founders of the certified organic brands Jovial and Bionaturae. The company is based in Connecticut but the main ingredients – wheat, the ancient grain Einkorn, tomatoes and other raw materials – are sourced in Italy, where the finished products are manufactured. As a provider of pastas, tomato sauces, juices, fruit spreads, cookies and other products, the brands have been in high demand during the pantry loading and subsequent shelter in place phases the U.S. has experienced during the pandemic.
“We were coming off of big months in January and February, and suddenly, here comes March. We were definitely caught off guard with the increase in sales we saw in flour, pasta and shelf-stable products. I can tell you for the first time in 25 years there was a day when our warehouse in Connecticut was completely empty,” said Carla Bartolucci.
The company could have sold more, but was limited by availability of a special compostable window used in the product packaging, and by having to queue up with contract manufacturers in Europe who were experiencing increased demand from all their customers. “Also, we blew through the contracts with our farmers already in June (contracts normally last until October), so we will be sourcing from outside of our network come July and August,” Bartolucci said.
During the peak, the company was shipping out so many container loads each week that there was no time to fill them completely. “The volume of demand made us ship out containers that weren’t completely full, so there were some losses with that, but we had to get the product out. We are still producing and loading twice as much product as we normally would have, but not three times as much, so we can fill the containers more efficiently again,” she said.
Seeing a longer term impact to consumers’ purchasing patterns, Bartolucci observed, “Suddenly, the new facility we built four years ago in Connecticut now may not be big enough. I can see the future right here in front of me – people will be home more and cooking more. We are responding and preparing for the future much more quickly than we normally would have.”
Scott Jensen, CEO, Rhythm Superfoods
Rhythm Superfoods, an innovator in plant-based fruit and vegetable snacks, did a lot of groundwork to secure its supply chain well before the Covid-19 crisis hit, and it’s paying off, says founder and CEO Scott Jensen. The company, which requires the freshest product delivered consistently for its dried kale, beet, carrot, dried fruit and other certified organic snacks, made a strategic decision to shift its sourcing from the U.S., where weather and crops proved to be uncertain for the company, to working with four farming families in the north central region of Mexico. It is there, a good day’s drive from the Texas border, where the Austin-based company grows and manufactures all its products.
“We own two facilities in Guadalajara. Our farmers are all within a two- to three-hour drive to our production plant, and they are situated at different elevations, so we are able to produce all we need,” Jensen said. “Overall, the U.S. gets so much of its produce from South of the Border; it could be 30-50% of all produce sold in the U.S., depending on the season, and there are no tariffs on food. For Rhythm Superfoods, we need fresh, consistent, organic deliveries, and in that particular region of Mexico, they grow year round and our farmers are really good at growing a mix of crops,” he said.
“Our vertical integration also gives us the ability to sell beyond the U.S. market and to deal directly in pesos, which is a strong currency. We can ship to Asia and the EU and be competitive price-wise,” Jensen said. He also noted that the company has seen no slowdown in shipping at the border. “The crisis has prevented us from traveling to our farms for a few months, but we are getting everything we need from our producers.”
For its workers, the company has expanded cleaning protocols, implemented temperature checks, provided face masks, emphasized multiple hand-washing and continues to pay workers if they have to be sent home, among other heightened safety measures.
Jensen shared that his farmers have been impacted by the pandemic, as they grow for the food service market, too. “If we lost 50% of consumption of vegetables in food service, that hasn’t all shifted to retail; consumers don’t cook as many fresh vegetables at home as the chefs and restaurants who use a lot of fresh produce. As a result, all our farmers are recalibrating their plans for the growing season. I don’t think anyone can oracle out what’s happening in the next weeks and months, however, we are attentive to things going on daily and a slew of data, and we are communicating constantly with our leadership team,” he said.
Pete Speranza, Cofounder, 301INC / General Mills
A former professional hockey player, Pete Speranza brings a competitive, team spirit as Cofounder of 301INC, the “brand elevator” arm of General Mills. As Director of New Business Development, Pete helped create a national scouting network for emerging natural and organic products brands, where he works closely with the entrepreneurs behind them.
“What we’ve been telling our brands is that while external forces have changed, food values aren’t changing,” Speranza said. “Coming out of this, people will still eat more at home, and they may be looking for more nutrient-dense foods to support healthy immune systems. From a supply chain perspective, from the meat to the grain industry, we are moving beyond a commodity approach, where the farmer got paid the same price per bushel no matter the quality. Today, businesses are having to create supply chains that are nimbler to handle smaller producers. This will accelerate. People want transparency, higher quality and nutritious foods,” he added.
Speranza noted that a challenge smaller brands face today is that consumers are spending less time in grocery stores. “People are not browsing right now. They’re creating a list, getting their essentials, and there’s less impulse buying and discovery, which is what these new brands need.” Speranza is advising the brands he works with to be open to all sales channels and social media to reach and educate consumers about their products.
“Before Covid, everyone had their own zone and the supply chain was much more transactional,” he observed. “Yet, every part of that supply chain became nimble overnight. As a result, our brands will come out with stronger relationships with ingredient suppliers, co-packers and customers. This will bring some advantages in the future, as people may see they were more rigid than they needed to be, and that it may be more resilient to be nimble. It has reminded me how important a secure, transparent food supply chain system we will need in the future for people at any income level.”
Speranza also noted that “while forecasting tools were never dead on, in the old model, you weren’t off by more than 10%. In the next 10 months, efficiencies may be less because forecasts won’t be as accurate. We will need to build new data sets,” he said.
Cole Daily, EVP, Operations, Frontier Co-op
For more than 40 years, Frontier Co-op has been a leader in natural and organic herbs and spices, sourcing over 800 raw materials from more than 50 countries. “Needless to say, it made for a fluid, dynamic situation when Covid-19 hit; it was almost like watching dominoes fall when it hit China, then Southeast Asia, then Europe and then the U.S.,” said Cole Daily, Frontier’s EVP of Operations.
“Because the spice industry is uniquely vulnerable to outside forces, we have built a resilient supply chain by having alternative sources,” Daily said. “We’ve built some redundancy into our supply chain because, as they say, when Russia Sneezes, Poland gets a cold, which is very poignant right now. When you are sourcing from over 50 countries, something is bound to go wrong. As such, we are always planning for contingencies, but this is at a scale that is absolutely unprecedented.”
Daily noted that it hasn’t been so much a raw materials issue as it has been skyrocketing demand – company sales were up 100% for the latest four weeks in April, based on SPINS data, “and we are still tracking strongly, up over 36%, based on anecdotal IRI tracking data,” he said.
“The squeeze has been on the packaging side of things. After everyone emptied the shelves during the pantry loading period, refilling them has been a bit of a challenge. There’ve been short delays but we are beginning to normalize now. We’ve added new manufacturing lines and we are pretty much working nonstop to meet the overwhelming demand,” Daily said.
Frontier Co-op deals directly with farmers because, said Daily, who has been with the company 28 years, “We don’t want the inventory sitting overseas. We want it in our warehouse. In general, we go a little heavier on our inventories, which has helped in the current situation. Our suppliers are increasing their capacity right along with us and making sure they do it in a safe manner, but the $64,000 question is how do we forecast right now? We’re doing our best to plan now for all types of products and to make sure we are out ahead of the demand. The resiliency we’ve built into our supply chain helps us, as we can go to these sources to increase buying, if needed.
For Daily, he has learned a few things during the coronavirus crisis. “The resiliency of people throughout the world, not just outside your front door, but the farmers throughout the world, the processors, and here in Iowa, the work ethic is incredible. Everyone is trying to do their best; we’re continuing to work through it, sometimes alone, but everyone together.”
Nikki Nolbertowicz, Midwest Regional VP, Presence Marketing
“Before the Covid crisis, products including soup and cereal were slow. Now, there’s a joke that there’s no ramen available in the distribution centers,” said Nikki Nolbertowicz. As Midwest Regional VP for Presence Marketing, she manages distributor relations nationwide for the leading independent sales brokerage firm, which celebrates its 30th anniversary in business this year.
When distributors have to solve out of stock situations, it can create opportunities for other brands, Nolbertowicz noted. “For example, a distributor might try to bring other rice brands in, or find alternative products to fulfill current demand,” she said. “Consumers, too, are either trying other brands or new products, or looking online.” Over the past few months, distributors Nikki works with in ecommerce sales have seen an uptick three times their standard volume, and could have sold more if it were not for being out of stock on certain items, she said.
For brick and mortar stores, shopping habits have changed – consumers want to make less stops, so the average basket amount has gone up, Nikki observed. “There’ll be limited travel this summer and the kids will be home more with many activities being cancelled or delayed, so there will be more meals at home. For people whose jobs have not been impacted, they are beginning to splurge in grocery stores again, with an emphasis on self-care. For consumers that have been negatively impacted financially from the pandemic, they are looking at value products. Later in the year, many people will look to do more with less for the upcoming holidays with their families. Distributors are starting to think about that now,” she said.
Acknowledging that the concern is real for manufacturers in making sure they can meet the needs of retailers and distributors, Nolbertowicz noted that the industry overall has done an impressive job in responding to the pandemic. “I give everyone we work with – distributors, retailers, manufacturers – a lot of credit. Under the circumstances, they’ve done an amazing job and have been flexible, nimble and have upped their communications game. Getting the message out is more important than ever; with none, there is chaos.”
For Nikki, she believes that this has been an optimistic time for the natural products industry. “It has given new life to manufacturers and independent retailers, and has changed some consumer behaviors where people will be focused on cooking meals in the home and more time with family. Life will go back to some sort of normalcy, but the experience of family meals and quality time – people will want that to continue, which just helps our industry. This experience has given us all a chance to pause, refocus, and reprioritize in our work and personal lives what is most important. That will resonate for more than just the short term,” she said.
Bill Evans, CEO, Kalona SuperNatural
As a small scale, certified organic, grass fed dairy producer, Kalona SuperNatural has built resiliency into its supply chain by working not only with its own community of Amish and Mennonite dairy farmers in Eastern Iowa, but also by becoming expert in sourcing and brokering organic milk from throughout the nation, said Bill Evans, CEO and founder of the company.
Also, the brand, which is growing, found itself at an advantage when the Covid-19 crisis struck because its sales are primarily in natural products grocery stores. “The conventional guys are having issues because they’ve got a large portion of their manufacturing set up for food service; there’s no place for that to go right now,” Evans said.
Since the pandemic began, Kalona has been filling distributors’ large orders. “We’ve been able to accommodate a 25-30% increase in sales volume, whereas larger producers are shorting people. Kalona SuperNatural has been more successful than others in balancing our organic milk supply,” he said.
In addition, to its own production facilities, where workers have ample space for social distancing, Kalona owns its own trucking company, which has been a big advantage in getting deliveries out during the crisis. “We have the capacity to secure additional trucking when we need it. We provide dated, perishable product, and it needs to turn quickly; that means distributors will get us unloaded, even when their docks are crowded,” Evans noted.
“We have workers that have to be here to bottle milk and load and drive trucks. We’ve been taking all precautions and those folks have felt safe coming to work. What I’m most proud about is that our team has stuck together and gotten the job done,” he said.
Brad Barnhorn, Board Member and Business Advisor
After successfully building Fantasia, a leading natural juice brand that merged with Naked Juice and was subsequently acquired by PepsiCo, Brad Barnhorn has been advising CEOs and serving on numerous boards in the natural products industry, giving him a unique perspective on what’s happening with emerging and established brands during the pandemic.
“During this period, though there may be different dimensions, the questions are the same – how do you treat your customers, employees, supply chain and other partners?” Barnhorn asked. And how do you respond to the pressure to focus on performing items, Barnhorn also asked, referring to the compulsion for companies to do “SKU rationalization” as manufacturers, as well as retailers, focus their resources on the products most in demand.
“If you’re a company with sales north of $50 million or $100 million that has great brand equity, that allows for flexibility to temporarily stop some SKUs. The tough space is when you are a mid-sized company, say in the $15 million to $20 million range, odds are if you take some SKUs out, you might not get them back in the stores. That might not be the right decision, strategically. If you’re a small brand, you might not have the market power to bring the SKUs back,” Barnhorn said.
Instead, he offers, “I might make the decision as a small company to change my production schedules. Maybe I produce the item less frequently but with higher inventory levels, try to find ways to reduce complexity, have more efficient runs, and take a risk on higher inventory. Many distributors have been more flexible with brands on their standard requirements for the amount of shelf life that needs to be remaining on the product when they receive it into their warehouses. For example, UNFI typically requires 75% of shelf life remaining, but it has been making exceptions to that. It is essential to be in close contact with your distributors on an ongoing basis to understand this dynamic, as well as other elements of working with them that may have been altered in this unique period to provide companies a measure of operating flexibility ... but also, are more than likely to change back to the previous rules of engagement in the future,” he said.
Barnhorn advises, “If you have not audited your supply chain in the past two to three years because things have been going on as normal, it’s time to analyze, talk to other manufacturers and co-packers, get up to date on the flexibility and options you have in your supply chain. Take this moment of urgency to have these conversations.”
Daniel Fabricant, CEO, Natural Products Association
As CEO of the largest trade association representing the natural products industry, Daniel Fabricant, Ph.D., is concerned about fraudulent products as consumer flock to dietary supplements to strengthen immunity and health. “Elderberry is very popular right now. There is such consumer demand and the margins are so big that we are starting to see adulterated product come out. We may see many more fakes in the market because that’s where the demand is,” Fabricant warned. “If it sounds too good to be true, it probably is. It may be best to stick with the brands you’ve always seen in your natural products retail store – they’re well established and trusted,” he advised.
On the plus side, Fabricant noted that 70% of Americans use supplements, though many of those have been casual users. “But now many of those consumers will take extra supplements, such as zinc and Vitamins C and D. These products will stay part of people’s regimen,” he said. However, Fabricant noted that the sports nutrition category has taken a big hit as gyms have closed down.
“The biggest thing for us as an organization was when the Department of Homeland Security issued their first guidance, there was no mention of supplement manufacturers. However, in the second guidance, we were successful in getting the language in to protect the supplements supply chain. We wanted to keep as many channels of distribution open as possible, said Fabricant.
“The supply chain in the next five to 10 years is going to be a very fast moving target. We can do manufacturing smarter and cleaner now, and there is strong interest in vertically integrating in the U.S. Also, while people say that everything is going to the Internet, there is still strong interest in going to stores; people want to go to independent retailers. Most importantly, “Fabricant advised, “as an industry, we always have to stay engaged. We are an essential business, and that messaging should never stop.”
Compass Coffee Talk, Episode 3 – The Power of Partnerships: A Conversation with Milton Zimmerman, Executive Vice President, Presence Marketing
FOR IMMEDIATE RELEASE
Compass Coffee Talk, Episode 3 – The Power of Partnerships: A Conversation with Milton Zimmerman, Executive Vice President, Presence Marketing
Need Brand Inspiration and Insight? Grab a Mug and Join the Compass Coffee Talk™ Webinar, Hosted by Natural Products Industry Leaders Bill Capsalis and Steven Hoffman
What: Compass Coffee Talk™
The Power of Partnerships: A Conversation with Milton Zimmerman
Details: Episode 3, Wednesday, June 3, 2020, 9:30am – 10:00am MDT
To Register: Click HERE, Admission is FREE
Boulder, CO (May 26, 2020) – Consumer behaviors have shifted dramatically, and the natural products and organic industry have had to shift in response to the current coronavirus crisis. Now more than ever is a critical time for brands that have had to act quickly to find new ways to work with retailers to reach consumers, all while collaborating with other key partners.
Industry expert, Milton Zimmerman, EVP, Presence Marketing, is quite familiar with the changes brands have had to make during these unknown times. That’s why Compass Coffee Talk™ is pleased to have Presence Marketing's Milton Zimmerman as their next guest on its live webcast, Wednesday, June 3, 2020, 9:30am – 10:00 am MDT.
Milton will share valuable perspectives and insights from his vital role as a broker at Presence Marketing, the nation’s leading independent natural products sales brokerage. Natural Products Industry veterans Bill Capsalis and Steven Hoffman, hosts of Compass Coffee Talk, will chat with Milton on the importance of building and sustaining strong partnerships across the supply chain from manufacturing to the distributor’s warehouse to the retail shelf — and how that has become more important than ever for new brands and established brands alike.
“We’re all trying to figure out how to best navigate through this difficult time, and that's why this month’s Compass Coffee Talk will appeal to everyone. Milton is not only a close friend, but a trusted resource who provides unmatched expert advice for natural and organic brands when they need it most,” said Steven Hoffman, Managing Partner and Founder, Compass Natural Marketing. “It’s not just what you know that counts these days, but knowing how to build, cultivate, and nurture strong partnerships that will ultimately help further your business."
Compass Coffee Talk™ features lively interactive conversations with industry leaders and experts designed to help guide entrepreneurs and businesses of all sizes succeed in the marketplace. To register for the FREE Webcast, click HERE.
About Milton Zimmerman
Milton Zimmerman is a 30+ year veteran of the natural products industry and has been a partner at Presence Marketing/Dynamic Presence since 1995. Milton got his start in food marketing when he joined a Chicago-based beverage company in 1986 and was soon appointed their National Sales Manager, serving in that capacity for eight years. After a stint working for a leading natural snack food manufacturer "seasoned" Milton and prepared him for his true calling – being a broker.
Milton joined Presence Marketing/Dynamic Presence partners, Bill Weiland and Christine Tzumas, five years into the company’s maturation and has loved the ride. Milton has built great friendships throughout the industry and is proud of his relationships with retailers and manufacturers from coast to coast. Milton is a 1980 graduate of the University of Illinois and a lifelong native and active member of the Chicagoland community.
Win Coffee!
Compass Coffee Talk™ will be giving away one free bag of Colorado’s favorite Dazbog Coffee to one special attendee. Special thanks to Compass Coffee Talk™ sponsor, Dazbog Coffee!
About Compass Coffee Talk™
Compass Coffee Talk™ is hosted by natural and organic products industry veterans Bill Capsalis and Steve Hoffman and is produced by Compass Natural Marketing, a leading PR, branding, and business development agency serving the natural and organic products industry. Learn more.
Contact
Bill Capsalis, Host, 303.808.3441, bill@billcapsalis.com
Steven Hoffman, Host, 303.807.1042, steve@compassnaturalmarketing.com
The 1 Percent Solution: Controversial Debate Regarding Legal THC Levels In Hemp Sets Stage for Larger Discussion at Experience Hemp SUMMER SOLSTICE, June 16-19, 2020
FOR IMMEDIATE RELEASE
The 1 Percent Solution: Controversial Debate Regarding Legal THC Levels In Hemp Sets Stage for Larger Discussion at Experience Hemp SUMMER SOLSTICE, June 16-19, 2020
Hemp Advocates Lobby to Change Rigid Government Policies. Panelists to Discuss Why the 1 Percent Ranking is the Solution for the Hemp Industry and Why The USDA’s 0.3 Percent is Arbitrary and Wrong. Join the Conversation and Have Your Voice Heard on Hemp Regulations.
What: Experience Hemp SUMMER SOLSTICE Virtual Conference and Trade Show
When: June 16-19, 2020
To Register: Click Here for FREE Registration
Denver, CO (May 21, 2020) – As the U.S. hemp market continues to evolve, so does the controversial debate between farmers and government officials regarding THC levels found in hemp plants. The discussion has drawn mixed criticism industry-wide and has gained national media attention for the government’s complex policy. That’s why organizers of NoCo Hemp Expo’s Experience Hemp SUMMER SOLSTICE Virtual Conference and Trade Show have dedicated a live webcast on the topic: The 1.0 Percent Solution - Why 0.3 Percent THC is Arbitrary and Wrong, June 18, 2:00 pm MDT.
According to the United States Department of Agriculture (USDA), all domestic hemp plants must be tested for THC levels that cannot exceed 0.3 percent in THC, which differentiates legal hemp from illegal marijuana. For example, the USDA deems that if a tested hemp plant exceeds the mandated 0.3 percent at harvest, then that farmer must destroy that crop.
That mandate has not been favorable in the eyes of farmers, which has left many empty-handed in a field of green hope. Last year, according to Pew Trust's Stateline, 4,309 acres of hemp in 16 states were destroyed because those plants tested over the 0.3 percent limit. Additionally, Cannabis Business Times reports that the U.S. trails other countries, such as Thailand and Switzerland, where they have enacted the one percent rule for hemp plants.
“The hemp industry is fired up regarding this numbers game farmers are having to play with the government, which sets them up for undeserved risk. This is a crucial time for our community to unite and effectively lobby for Congress to change the ruling to one percent,” said Morris Beegle, Let’s Talk Hemp Media Co-founder and Producer of NoCo Hemp Expo. “We’re looking forward to this lively discussion at next month’s conference and hope that people take advantage of the open forum to be heard on this matter.”
Experience Hemp SUMMER SOLSTICE
The ‘One Percent’ discussion is one of six, 90-minute live webcasts that will be featured during the Experience Hemp SUMMER SOLSTICE Virtual Conference and Trade Show. Each webcast Supersession will be offered twice a day, on Tuesday, Wednesday, and Thursday, June 16-18. Let’s Talk Hemp webcast hosts Morris Beegle and Rick Trojan will lead the live interactive chats with panelists and guest speakers.
Virtual Expo Halls
Attendees will also have access to the virtual Expo Halls featuring a variety of hemp businesses, brands, products, and professional services. The interactive rooms offer an opportunity to connect with hemp-based companies and keep the conversations moving forward to strengthen our industry.
Explore innovative hemp brands from around the globe
Engage, discuss and make valuable connections in the virtual Networking Lounges
Search for career opportunities and post resumes in the Job Fair Lounge
Catch footage from past hemp events in the Library
The Expo halls will remain open through Friday, June 19, with pre-recorded content, trade show, and more networking opportunities, including dozens of videos and pre-recorded content in the exclusive Let's Talk Hemp Library & Archives.
REGISTRATION INFORMATION
Register today for the FREE Experience Hemp SUMMER SOLSTICE Virtual Conference and Trade Show. If you participated and registered for the NoCo Hemp Expo EARTH WEEK virtual event this past May, attendees can log in on June 16, 2020, with the same email address. For Exhibitor and Sponsor interest, please click here for more information.
About Let’s Talk Hemp Media
Let's Talk Hemp is a leading media platform that focuses on “Changing the Cannabis Conversation.” We curate news, education, and information about hemp and cannabis to our podcast listeners, newsletter subscribers, and digital magazine readers so that they can learn more about the industry and get tips and tricks on the latest technologies. Subscribe to our YouTube channel and learn about everything from legal updates, farming, production, and new products entering the hemp and cannabis space. Let's Talk Hemp is a publication of the Colorado Hemp Company (a division of We Are For Better Alternatives WAFBA) focused specifically on the subject of industrial hemp and cannabis. Let’s Talk Hemp features news globally and shares the benefits of cannabis on health, energy, manufacturing, and the planet (HEMP).
About Colorado Hemp Company
The Colorado Hemp Company, the producer of the 7th Annual NoCo Hemp Expo (NoCo7), is a leading organization for the advancement and advocacy of hemp farming, processing, production, innovation, education, and legalization in the USA. The entire team is committed to researching and developing alternatives so that hemp can once again thrive and help individuals and communities throughout America and around the globe.
Contact
Steven Hoffman, Compass Natural, 303.807.1042, steve@compassnaturalmarketing.com
Morris Beegle, Colorado Hemp Company, 970.541.0448, info@nocohempexpo.com
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