Retailers Whey In: Are Animal-free Dairy Products Natural?
This article originally appeared in Presence Marketing’s August 2022 industry newsletter and New Hope Network's IdeaXchange.
By Steven Hoffman
Which term do you like better – animal-free dairy, next-gen dairy, cultivated dairy, bio-identical dairy, or parallel dairy? If you preferred “animal-free dairy,” you’re not alone.
Knowing consumer acceptance is key to the success of precision fermentation – a rapidly growing biotechnology that genetically engineers microorganisms such as bacteria and yeast to produce complex molecules, including proteins that mimic those found in meat and dairy products – earlier this year German biotechnology company Formo, along with Fordham University and Mercy for Animals, surveyed consumers in the U.K., Germany, Singapore and the U.S. to ask that very question.
What they found out? While the clear favorite among survey respondents was animal-free dairy (the least favorite was bio-identical dairy and the strange term, parallel dairy), “Many wanted to know whether the product was natural or artificial, leading from here into questions of how safe the products would be and what bodily effects it might have, with some looking for data that could answer these questions for them,” the survey’s authors reported, according to Food Navigator.
While a significant majority of the survey participants responded positively to questions about animal welfare and conventional animal agriculture’s impact on the environment as they were framed in the poll around such “animal-free” dairy products, according to the survey’s findings, a “nearly universal” consumer concern was around precision fermentation’s “unbridled meddling with nature,” and many were worried about “eating the unknown.”
Organizations like the Good Food Institute tout the benefits of synthetic biology (syn-bio) and its use in creating animal-free dairy, meat and egg products, food flavorings such as vanilla, fragrances, and other substances meant for human and animal consumption. The past five years have seen an explosion in start-up biotech companies using synthetic biology and precision fermentation techniques to create ingredients and products. The Non-GMO Project tracked a 250% increase in biotech companies, now numbering more than 400. Many of these start-ups hope to sell to consumers who believe they are buying purely natural products, reported Prepared Foods. Yet, the National Bioengineered Food Disclosure Standard, passed by Congress in 2016 and launched in 2020, will not apply, meaning these products are not required to carry a GMO label.
As hi-tech and other venture capital (VC) investors commit billions of dollars to biotech companies seeking to develop and control IP over such food production technologies, the market for synthetic biology products in North America is expected to reach US$ 15.2 billion by 2028 from US$ 4.3 billion in 2021, representing an estimated CAGR of 19.7%, according to a July 2022 report by Business Market Insights.
Yet, it’s a technology that most consumers know nothing about, and one with very little regulatory oversight, say a growing number of retailers and other leaders in the natural products industry who are calling these products into question, especially when a handful of synthetic biology companies had exhibits at the recent Natural Products Expo West, the world’s largest natural channel trade exposition, held in Anaheim, CA, in March 2022.
The Definition of Unnatural?
"Syn-bio dairy products are GMOs because they are created by genetically engineering a microbe like yeast to excrete milk proteins," said Megan Westgate, Founder and Executive Director of the Non-GMO Project, North America's most relied-upon non-GMO authority, in May 2022. "That's the definition of unnatural."
According to Westgate, the syn-bio process forces cells to produce novel proteins that mimic natural ingredients like casein and whey. The possible risks they claim include significant biohazardous waste, the accidental release of new GMOs into the environment, and continued reliance on fossil fuels for GMO growth media and the incineration of waste. Syn-bio dairy could also put traditional dairy farmers and farmworkers out of business, Westgate cautioned.
Referring to the presence of syn-bio companies at Expo West, Editor and Publisher of the Organic Insider Max Goldberg wrote, “Despite the fact that this is a ‘natural’ products expo, there were numerous companies selling products made with synthetic biology, or ‘precision fermentation’ — a fancy marketing term to hide the fact that this is a very risky and unproven GMO 2.0 technology. “Precision fermentation typically requires the use of genetically-engineered microorganisms, which are cultivated in brewery-style fermentation tanks. Needless to say, there is nothing ‘natural’ about this,” he said, noting that the presence at Expo West of food bio-tech start-ups such as Motif FoodWorks, maker of syn-bio meat and dairy products, and Perfect Day’s Brave Robot, a line of “animal-free” dairy ice cream, had upset many natural and organic advocates.
Noting that a coveted slot at Natural Products Expo West can bestow a halo of “natural” upon a brand, Mark Squire, a respected retailer, GMO labeling advocate and co-owner of Good Earth Natural Foods in Fairfax and Mill Valley, CA, told Goldberg, “These companies are trying to use us all to give their ‘un-natural’ products the ‘natural’ glow. I hope our industry will reject them from future shows,” Squire said.
Patrick Sheridan, president and CEO of the Independent Natural Food Retailers Association (INFRA), representing nearly 300 natural products retailers, told Ken Roseboro, Editor and Publisher of The Organic & Non-GMO Report, that the consensus among his group’s members was that syn-bio companies don’t belong at a natural food show. “We’re trying to curb the expansion of GMOs in our food system but food start-ups are getting into Expo using smart marketing campaigns that aren’t transparent,” Sheridan said.
While Shelley Sapsin, Director of Market Integrity for New Hope Network (producer of Natural Products Expo West) responded saying that retailer concerns “matter very much to us” and that “asking hard questions about GMO-derived ingredients is appropriate,” she also said that New Hope provides a forum to discuss topics such as precision fermentation and GMO 2.0. However, she said, “Rather than banning businesses and closing down debate we’ve chosen to encourage robust dialogue. And most importantly, we provide a place for the natural products community to choose for themselves the products that make sense for their customers.” New Hope Network allows these companies to exhibit as long as they don’t make “natural” claims, Sapsin said.
Lack of Transparency
Yet, according to The Organic & Non-GMO Report, one of the biggest complaints from natural channel industry members is that these “GMO 2.0 companies” aren’t transparent. “They are hiding behind a lack of transparency,” Good Earth’s Mark Squire said. “…these GMO 2.0 products have a whole new set of problems attached to them and no regulations,” he remarked.
“It seems that even with all the smarts and savvy in the natural products community, we have failed to understand that we are being targeted by a coordinated global campaign to force the adoption of synthetics in natural channels,” Alan Lewis, VP of Advocacy at Natural Grocers, told The Organic Insider. “The campaign is spawn of the notorious GMO lobby, now emboldened and backed by technology moguls. New Hope’s decision to actively promote ‘syn-biotech’ is a direct threat to the thousands of small brands it claims to champion.”
Writing in Forbes in March 2022, Errol Schweizer, natural channel retail specialist and former VP of Grocery for Whole Foods Market, said, "This leads us to questions of how food technology feeds into racialized capitalism. White people own over 98% of agricultural land and make up over 84% of food executives and over 70% of VCs. Yet the food industry is extremely diverse among the rank and file, from farmgate to retail. How diverse are the leadership teams, boardrooms, capitalization tables and investor pools of precision fermentation enterprises? Are any of these companies worker cooperatives or employee owned? Will this new food technology slow down, reverse or accelerate racial capitalism in the food industry? When you consider that up to 75% of food retail workers are food insecure due to low wages and high costs of living, or that hundreds of food processing workers died from COVID-19, what substantive changes will this technology bring to a food workforce that has tremendous turnover, low morale and a growing sense of injustice with the way they are treated and compensated? We were promised that GMOs, which are now in more than 75% of processed foods, would feed the world, yet they can’t even feed grocery clerks," Schweizer commented.
Three Areas of Concern: Feed, Ferment and Waste
Alan Lewis of Natural Grocers, a longtime critic of precision fermentation, expressed three main areas of concern at the June 2022 Environmental Health Symposium, where he was a featured speaker: “Feed, ferment and waste. You never hear the companies and founders and the PR professional who are promoting synthetic biology actually talk about the source of their feed. And you never, ever, ever hear them talk about what happens to the waste that’s left over after their fermentation is done,” he said.
Though a few syn-bio companies such as Perfect Day and Israel-based Remilk have received FDA GRAS status for their synthetic biology dairy and protein products, and their own in-house life cycle assessments rate them more environmentally sustainable than conventional meat or dairy agriculture, Lewis and others have expressed concern that potential impacts of synthetic biology are not being fairly compared to the benefits of organic and regenerative agriculture, and that they could destroy the livelihoods of farmers and producers of natural products such as vanilla, which is the single most important export in a number of countries in the global South.
“Where does this feed [for fermentation] come from?” Lewis asked. “It's basically sugars and proteins. It comes from the cheapest possible industrial source of soy and corn for the most part, and some sugar beet as well. So we are back to the GMO problem: monoculture, proprietary GMO seeds, corn and soy sugars as the basis for these foods and a massive shift in ownership and concentration of wealth, land ownership and control over our food supply because of the GMO system. And we've got to talk about glyphosate herbicides, neonicotinoid pesticides, synthetic fertilizers from fossil fuels and other residues that end up in the soil, on the crops, in the resulting food...and in this case, the feed. And, of course, when you mess with the soil you're releasing carbon, you're collapsing soil health and reducing the nutrition of those foods to begin with,” he said.
"If you are a fan of plant-based foods like I am you should be furious with the synthetic biology precision fermentation people taking over the idea of foods made from plants and replacing it or hiding underneath plant-based foods all of these suspect highly processed foods that are grown in facilities that have nothing to do with agriculture," Lewis cautioned.
"Long term safe fermenting of foods that have long been accepted as safe, traditional methods of fermenting foods or herbs or other materials to get specific therapeutic or nutritional metabolites is not what we're concerned about. Our concern is that longstanding acceptance and necessity of natural fermentation has been used to hide the synthetic biology under a lot of different other terms including plant-based," Lewis clarified.
Lewis also expressed concern about what's in the waste generated from precision fermentation. "What's in that bio-waste? Well, if you're fermenting sourdough or beer or spirits or something like that, what's left over is distillers spent grain or a yeast residue, and these are typically natural organisms that are consumable by animals; they can be composted and they're not considered a biohazard because they have been part of the natural system and part of the food system for thousands of years. However, when you get into full synthetic biology precision fermentation, the waste is a whole different ball game. What you have is a whole set of gene edited (and potentially antibiotic-resistant) microorganisms. These are novel living organisms that have never been on Earth before so all of this takes place in a biohazard laboratory setting with secure access and registrations and personal protective equipment, and it all has to be incinerated after use. And there's a very high amount of mass in this waste...I've heard that upwards of 90% of what goes into the bioreactor actually becomes waste that has to be securely disposed of -- it can't go to the land fill; it has to be deactivated. And...there's zero significant regulation about this in terms of the food supply," Lewis continued.
In particular, he said, "We don't know about all the off-target or non-target metabolites. Just because you gene edit a pathogen to get a specific protein or color or flavor, doesn't mean that that novel edited gene, mutated living organism isn't spitting out a whole number, hundreds if not thousands, of materials and substances that are not known, don't have a reference table, and we don't know about their food safety or environmental safety profile."
Syn-bio Foods Are Often Highly Processed
“Companies call these things ‘synthetic biology’ and ‘fermentation technology,’ but these foods are all just GMOs,” Michael Hansen, Ph.D., Senior Staff Scientist at Consumer Reports, told Max Goldberg in a recent article in Westview News. “They are using terms people do not understand, so that people will not realize these are GMO ingredients. Moreover, the problems with synthetic biology are the same ones that we have had with traditional GMOs.”
Hansen added: “These are often highly processed foods, which are associated with increased calorie intake and weight gain, according to a study from the National Institute of Health. And while these companies may be perceived as tech start-ups, the products they produce are designed to fit into an industrial food system, and society is clearly moving against this trend and toward a more agroecological-based food system. Additionally, they are introducing novel, genetically-engineered proteins into the food supply that will have unknown potential impacts on the human microbiome and the environment, and these companies are self-affirming GRAS status with the FDA, a voluntary process that is incredibly problematic and falls very, very short of protecting the consumer.”
In an editorial as CEO & Executive Director of the Organic & Natural Health Association, Karen Howard commented, “Growing investment in grass-fed livestock and regenerative agriculture are the perfect examples of [the natural food industry’s] reinvigorated commitment to sustainability. However, the stress on our current system can leave us distracted. Synthetic protein is a prime example. GMO crops are their main ingredients, but they have re-entered the policy discussion disguised in the costume of ‘synthetic biology’ and ‘precision fermentation.’ We are essentially being told again that GMOs are the panacea for every problem. Yet, it is impossible for synthetic protein to be considered natural.
“So what is a natural retailer to do? Howard continued. “How can the dietary supplement industry stop a swell of synthetically derived ingredients from appearing on shelves? How will this affect the availability of bona fide natural and organic ingredients? Should these products and foods be eligible for display at the ‘natural’ shows where we all do business? Where is the venue for educating and engaging people on the topic of synthetic biology?
In closing, Howard said, “The Organic & Natural Health Association will continue to partner on education efforts to bring these issues to light. With COVID, those opportunities have diminished, while the syn-bio industry continues to flourish with massive investments behind the scenes. We’ve lost the legislative and regulatory battle at this point, so perhaps there remains one core question to be answered. Is the proliferation of genetically engineered synthetic protein destined to be an accepted cornerstone of the natural food industry?”
Elevating an Industry — Leaders of Naturally Network Join Compass Coffee Talk, August 17, 2022, 11:30am EST
Elevating an Industry — Leaders of Naturally Network Join Compass Coffee Talk, August 17, 2022, 11:30am EST
Leading Podcast Compass Coffee Talk Welcomes Naturally Network Leaders Eric Schnell, Katrina Tolentino, Jim Slama and Ari Raz for an Overview of the Nation’s Largest Community of Natural Products Industry Business Leaders, August 17, 2022, 11:30am EST.
Wednesday, August 17, 11:30am – 12:00pm EST
Zoom, Admission is Free
(L) Eric Schnell, Co-Chair, Naturally New York, (LC) Katrina Tolentino, Executive Director, Naturally Network, (RC) Jim Slama, Managing Director and Co-Founder, Naturally Chicago, (R) Ari Raz, President and Board Member, Naturally San Diego
Compass Coffee Talk™ continues its series with a panel of leaders from Naturally Network, a collaborative community that advances and champions the wide-ranging ecosystem that makes up the natural and organic products industry. Alongside Co-Host Steve Hoffman, Compass Coffee Talk Co-Host Bill Capsalis, Executive Director of Naturally Boulder, is joined by his Naturally Network colleagues Eric Schnell, Co-Chair, Naturally New York; Katrina Tolentino, Executive Director, Naturally Network; Jim Slama, Managing Director and Co-Founder, Naturally Chicago; and Ari Raz, President and Board Member, Naturally San Diego.
Originating in Boulder, CO, known to many as the epicenter of the natural products industry, the community grew naturally by the number of innovative companies operating in the area. From an initial seed grant from the city of Boulder, the organization has helped entrepreneurs pursue their dreams and business success thanks to their many networking events, mentorship programs and educational resources available to all in the community. Today, Naturally Network holds chapters in Austin, Bay Area, Boulder, Chicago, North Bay, New York, San Diego and Los Angeles, and continues to grow.
About Eric Schnell
From startup to exit, Eric is a Visionary Disruptor with 25-years experience creating mission-based and purpose-driven products. Eric is the recipient of New Hope Media's 2007 "Sustainable Business of the Year Award" and 6X winner of their Expo NEXTY Awards, 4X annual winner BevNET.com, 2X winner of the Beverage Digest "Best Product of the Year Awards" - and awarded Top 50 Beverage World Magazine "Disruptor".
Since 2012, Eric has served as a Nutrition Capital Network Selection Committee Member & Cornerstone Investor. In 2002, he Co-Founded Steaz, world's first USDA Organic RTD tea brand and positioned it to be a leader today in the beverage category, while establishing a Triple Bottom-Line business model founded on People, Planet & ethical Profitability. In 2015, Eric co-founded mood33, pioneering this new beverage category marketing cannabis infused products to consumers seeking the benefits of this healing plant as well as Good Catch, the first Plant-Based seafood brand to scale globally. ln early 2016, Eric launched the strategic consulting agency BeyondBrands, together with his wife, Eco-Fashion pioneer, Marci Zaroff. BeyondBrands is a "Conscious Products" incubator and accelerator which focuses its Super-Tribe of experts on advising entrepreneurs, CPG brands and VCs in need of developing better-for-you, products in Food, Beverage, Fashion, Beauty, Plant Medicine & Nutraceuticals.
About Katrina Tolentino
Katrina is an award winning executive director and has successfully led and scaled multiple innovative nonprofits. She recently became the Executive Director of the Naturally Network, the national industry hub for the better for you consumer goods community. The Naturally Network has 8 affiliate communities across the country - Austin, Bay Area, Boulder, Chicago, Los Angeles, New York, North Bay, and San Diego. Prior to the Naturally Network, Katrina was the Executive Director at Naturally Austin where she launched the M/O Fellowship, a 6-month program that accelerates diverse founders, and the Women in CPG Summit, which became a national Network program in 2022. She was nominated for Startup Leader of the year as part of DivInc's Champions of Change Awards this year and was recognized as a Community Builder honoree on Austin Inno's 50 on Fire in 2021. She is bringing 17 years of experience and expertise in community building and engagement, program development, events, fundraising, and partnerships.
About Jim Slama
Jim Slama is a Solutions-driven leader, early innovator, and connector in the natural products industry. Co-founded Naturally Chicago with CEO’s of industry leaders KeHE, SPINS, and Presence Marketing. Created the Good Food Accelerator, in partnership with Whole Foods Market and worked with numerous early-stage companies to help them grow. Is part of the management team of Fantastic Fungi, Go Grocer, and Tiny But Mighty Foods. Founded FamilyFarmed, a leading non-profit supporting the growth of sustainable food systems.
About Ari Raz
Ari grew up in a household that taught him the value of eating minimally processed food from a young age and decided to make it his life’s mission to make this style of eating more accessible to families across the country. He got his start in CPG in 2015 when he, along with his co-founder Cassandra Curtis, launched Once Upon a Farm, the first cold-pressed refrigerated kids nutrition pouch on the market. In late 2017, Ari and Cassandra joined forces with the powerhouse duo of former Annie's Organic CEO John Foraker and actress Jennifer Garner to launch Once Upon a Farm onto the national stage. From 2017-2021, Ari served as president through its growth from annual sales of +$1mm through +$50mm. In 2021, the cofounders of The Coconut Cult reached out to Ari for strategic advice, and over time asked him to join the team as CEO. Finding the mission, products, and promise of the brand to be aligned with his values, Ari jumped in with both feet and hasn’t looked back since.
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.
VIEW OUR PAST COMPASS COFFEE TALK EPISODES ON YOUTUBE.
Survey Says: Research Shows Natural, Organic Channel Saw Steady Growth in 2021
This article originally appeared in Presence Marketing’s July 2022 Industry Newsletter.
By Steven Hoffman
Starting out in the natural and organic products industry in the mid 1980s as an associate editor with media and trade show company New Hope Network, there were a few long after-hours sessions spent each summer pouring over completed paper surveys sent in by retailers, and compiling data with company founder Doug Greene to analyze and publish what has since become a milestone marker for the industry, the Natural Foods Merchandiser’s Annual Market Overview Survey.
Photo Credit: Organic Trade Association
Today, the survey has become much more sophisticated, and so has the market, which has grown 10X since that time to reach $204.6 billion, representing an overall growth rate of 5.5% in 2021, according to this year’s report, published in June 2022.
Once dominated by independent natural products retailers, according to this year’s survey, conventional retailers now command 46.1% of natural products sales, representing growth of 5% in 2021. Combined, independent and large-chain natural products retailers comprised a market share of 31.3% in 2021. However, while independent natural products retailers recorded growth of 4.1%, the large chain and specialty store format saw sales decline by 1.9% in 2021.
Overall, conventional grocers reported natural products sales of $94.4 billion in 2021. Sales were $64 billion among natural products retailers in 2021, comprising independents, small chains and large chain/specialty stores. New Hope estimates there were 21,613 independent and large chain natural channel retail stores in the U.S. in 2021.
Of note, e-commerce sales of natural products continues to grab market share, charting growth of 23.2% in 2021. That’s not surprising, say industry observers, considering consumers were still spending considerable time at home in 2021 during the pandemic. Now, as the world emerges, some of those online consumer shopping behaviors may stick, according to Nutrition Business Journal’s 2022 Supplement Business Report, particularly when it comes to dietary supplement sales. According to NBJ, the supplement industry recorded $59.9 billion in sales in 2021, up from just $43.2 billion five years ago. E-commerce claimed the biggest share of post-pandemic dietary supplements sales growth, reported Rick Polito in the Natural Products Industry Health Monitor.
Photo Credit: Natural Foods Merchandiser 2022 Market Overview Survey, New Hope Network
Across all sales channels, e-commerce “is leading a huge shift in channel dynamics,” according to NBJ Senior Industry Analyst Claire Martin Reynolds. Based on a growth trajectory that is expected to add another $10 billion in dietary supplement sales over the next four years, “2024 is expected to be the record year where e-commerce market share in supplement sales is larger than natural and specialty or mass market retail, coming sooner than previously forecasted given the pandemic-related acceleration,” NBJ reported.
New Hope’s overview also revealed some interesting data regarding the demographic makeup of natural products shoppers.
While a common assumption is that natural channel shoppers are mostly white, well-off moms, that perception is inaccurate, said New Hope’s editors. “In fact, shoppers are fairly evenly divided along gender lines; fewer than half are Caucasian; about 40% are affluent; and more than a third live in households with just two people. Additionally, more than a quarter of natural channel shoppers are Hispanic and more than a third of Asian consumers are significantly more likely to shop at natural grocery stores; 36% of consumers who represent communities of color agree that products at natural retailers were, ‘made with me in mind’ (compared to 32% of all retail customers combined); and Hispanic and Asian consumers specifically are more likely than all natural retail shoppers to agree that they are ‘willing to pay a premium for natural and organic foods and products’ (44% vs. 36%),” New Hope’s researchers reported.
In related news, in its annual Organic Industry Survey, published in June 2022, the Organic Trade Association reported that between 2020 and 2021, sales of organic products surpassed $63 billion, growing 2% during that time period. Food sales, which comprises over 90% of all organic sales, rose 2% to $57.5 billion, and sales of nonfood organic products grew 7% to reach $6 billion in sales.
“Like every other industry, organic has been through many twists and turns over the last few years, but the industry’s resilience and creativity has kept us going strong,” said OTA’s CEO and Executive Director Tom Chapman, “In 2020, organic significantly increased its market foothold as Americans took a closer look at the products in their home and gravitated toward healthier choices. When pandemic purchasing habits and supply shortages began to ease in 2021, we saw the strongest performance from categories that were able to remain flexible, despite the shifting landscape. That ability to adapt and stay responsive to consumer and producer needs is a key part of organic’s continued growth and success.”
Among the strong performers in organic: organic beverages experienced the highest growth (8%) of all major categories, with organic coffee topping 5% growth and $2 billion in annual sales. Organic produce accounted for 15% of the organic products market, bringing in $21 billion in revenue in 2021, a 4.5% increase over 2020. Fresh produce drove growth in that category, at 6%.
While a decline in packaged and prepared organic food sales in 2021 represents a shift away from the pantry loading of 2020, organic baby foods — traditionally a strong entry point for shoppers new to organic — was a bright spot in 2021 with 11% growth. Organic snack foods, which suffered a decline in 2020, saw healthy growth of 6% in 2021, reflecting a return to active lifestyles and demand for healthy, nutritious on-the-go foods.
Among non-food organic products, fiber, supplements and personal care products were the most dominant performers with growth rates of between 5.5% and 8.5% in 2021, said OTA. Textiles, the largest non-food sub-category, represented 40% of the category’s total sales and brought in $2.3 billion in annual sales. Overall, non-food products saw 6% growth in 2021 and represented nearly $6 billion in sales, OTA reported.
However, industry observers caution that the unprecedented inflation the country is experiencing this year could affect sales of typically higher priced organic products as price-sensitive consumers opt for purchasing conventional foods to save money, according to a recent report in the Organic Produce Network. According to an Economist/YouGov poll taken in June 2022, 69% of Americans say changes in the inflation rate have impacted them negatively. In a June 2022 survey conducted by market research firm The Feedback Group, 24% of consumers are substituting similar, less expensive foods and 12% said they are buying fewer organic items and products to cut costs.
“Organic’s ability to retain the market footholds gained during 2020 and continue to grow despite unprecedented challenges and uncertainty is a testament to the strength of our industry and our products. To keep organic strong, the industry will need to continue developing innovative solutions to supply chain weaknesses and prioritizing efforts to engage and educate organic shoppers and businesses,” said OTA’s Tom Chapman.
Compass Coffee Talk Episode 26 — Emerald-Jane Hunter: Finding Your WHY
Compass Coffee Talk Episode 26 — Emerald-Jane Hunter: Finding Your WHY
Leading Podcast Compass Coffee Talk Welcomes Emerald-Jane Hunter, Founder and Ringleader of myWHY Agency, a Black-owned, Women-led Integrated Marketing and Creative Agency, July 13, 2022, 11:30am EST.
Wednesday, July 13, 11:30am – 12:00pm EST
Zoom, Admission is Free
Emerald-Jane Hunter, Founder and Ringleader, myWHY Agency
Compass Coffee Talk™ continues its showcase of diverse business leaders throughout the natural, organic and sustainable products industry by welcoming Emerald-Jane Hunter, Founder and Ringleader of myWHY Agency. Beginning her life in Ghana, West Africa, she developed a fearless business mentality, leading her to become a four-time Emmy Award-winning TV Producer and a master of media, marketing and storytelling.
Emerald-Jane’s passions are carried out every day through her vision at myWHY Agency, including influencer/ social media/ content marketing, PR/ media relations, brand strategy and a commitment to diversity, equity and inclusion. The Chicago-based agency has become a national leader in empowering purpose-driven brands and minority-owned enterprises. From the start of her work at myWHY Agency, Hunter strived to expand the firm’s positive impact on the natural products industry by transforming the traditional food system and increasing the accessibility of healthy products to all people. To carry out this mission, myWHY Agency is a proud solutions partner with the J.E.D.I. Collaborative and currently serves on the J.E.D.I. (Justice Equity Diversity Inclusion) Content Advisory Council for Informa Markets.
About Emerald-Jane Hunter
Emerald-Jane Hunter has spent 20+ years of experience creating stories that seize the spotlight. She is a four-time Emmy award-winning producer and master of all things storytelling. Born in Ghana, West Africa, she relocated to the U.S. at the age of 19, where she discovered that her “WHY” was storytelling. This was the catalyst for a long career as a producer, production manager, and talent booker across a wide range of national and local broadcast media. As President of myWHY Agency, EJ is passionate about empowering purpose-driven brands and women-owned enterprises, and enabling authentic conversations that not only drive awareness and business growth, but also include commitments around DEI (diversity, equity, and inclusion) initiatives for her clients.
EJ serves on the board of Female Strong — an organization that offers hands-on programs, mentorship, and experiences targeted toward building confidence in middle and high-school age girls. She also serves on the J.E.D.I. Content Advisory Council for Informa Markets — ensuring that there's justice, equity, diversity, and inclusion in the organic and natural products space, and that this is being reflected in the stories being shared. Additionally, EJ is an alumna and cohort ambassador for the Goldman Sachs 10KSB program — an investment from Goldman Sachs to help 10,000 small businesses grow and create jobs by providing them with greater access to education, capital, and business support services.
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.
VIEW OUR PAST COMPASS COFFEE TALK EPISODES ON YOUTUBE.
AWÁ Nutrition CEO Felipe Guevara: Bringing the Superfoods and Exotic Fruits of Ecuador to the World
As an expert food technologist, accomplished entrepreneur, and extreme sports enthusiast, Felipe Guevara continues his journey to the forefront of food innovation in his home country of Ecuador and throughout the world. In his most recent and prominent business venture, Guevara is taking his company AWÁ Nutrition internationally, developing, manufacturing and commercializing nutritional supplements made with ancestral Andean superfoods for everyday health conscious individuals, as well as dedicated athletes.
Following significant success in his home country of Ecuador, Guevara wasted no time in taking the brand to the global marketplace. When some would consider celebrating their success in developing a major national brand, AWÁ Nutrition’s CEO continues to expand the company into new markets, and has most recently entered into the United States.
Felipe Guevara, Founder and CEO, AWÁ Nutrition
A Lifetime of Multinational Experience
Born and raised in Ecuador, Guevara developed a vast knowledge of the country’s unique crops, agriculture, fruits and flavors at a young age. Pairing this uncommon expertise with his passions for personal fitness and adventure, Felipe would embark on a 20-year, and ongoing, journey through the food/ beverage and nutritional supplement industries. This would ultimately set the foundation for his success in founding AWÁ Nutrition, quickly becoming a global player in the protein supplements category.
At just 18 years old, Guevara dedicated himself to learning everything he could about Ecuador's agroindustrial environment. Throughout 2003 and 2006, during his studies and R&D work in Europe, he started developing the first quinoa protein concentrates, a significant and disruptive breakthrough concept at the time. After achieving a Masters Degree in Food Technology in Wageningen University in the Netherlands and having worked for major European multinational players in the protein and human nutrition industry like Friesland Campina and Arla Foods Ingredients, he then founded his first company in 2011, Alimlogia Food Consulting, where he developed the first ready to drink horchata beverage, leading a successful launch to bring the unique herbal elixir drink to consumers in Ecuador.
This food and beverage innovation experience would guide him to seamlessly incorporate AWÁ Nutrition’s unique, plant-based superfood ingredient Andean lupin into their products. The use of Andean lupin fulfills a significant and continuously growing consumer trend in plant-based proteins and exotic fruits. Like acai, which is now widely popular in Western countries, was once just a staple of indigenous populations in Brazil.
The Pursuit of a High Performance Active Lifestyle
Matching his high level of entrepreneurial spirit and business acumen, Guevara incorporates an equally important passion into his daily routine — fitness and exercise. He regularly pursues his love for extreme outdoor sports throughout the landscapes of Ecuador, Isla de la Plata, the Galapagos Islands, as well as in other countries in South America and Europe. When at home managing day-to-day operations for AWÁ Nutrition, Guevara balances his work with his personal fitness routine, combining functional exercise, high intensity cardio and weight training.
“My passion for sports and fitness taught me the need to consume protein supplements and reach higher performance levels. I was always trying new supplements to improve muscle growth and recovery and had tried hundreds of brands and protein supplements. However, I just never found one that had a great amino acid profile, was easy to digest, and would cause little to no inflammation,” Guevara said. “I knew there was a point of intersection between my passion for fitness and my career. Ultimately, this led me to transforming Ecuador’s unique crops into amazing added value protein nutritional supplements that could be aimed at health and wellness-oriented consumers.”
Assisted by his food innovation background, Guevara developed AWÁ Nutrition’s products to be all natural, non-inflammatory, nutrient dense and infused with high nutritional quality vegetable protein. In pursuit of a clean label, the products are naturally flavored with fruit concentrates high in vitamins, minerals and antioxidants that provide important micronutrients for metabolic health and functional benefits. Each of AWÁ Nutrition’s product creations are developed with the consumer in mind — free of allergens, GMO’s and added sugars.
When Guevara is out of office from expanding AWÁ Nutrition’s global presence, he is a fitness and extreme sports enthusiast, including scuba diving, snowboarding, dirt biking and more.
Devotion to Ecuador and the Andes
Guevara’s lifelong vision and business success comes with a deep appreciation and commitment to his Andean heritage. Ecuador’s food, culture, music, family, and exotic environment of the Andes Mountains, coastal region and Amazonian influence has all contributed to the founding of AWÁ Nutrition and his passion for leading the business to global markets.
This background would culminate in the founding of AWÁ Nutrition, with their products frequently referred to as Ancestral Wellness of the Andes. As the success of his company continues far and wide throughout the United States and beyond, Guevara maintains commitment to his roots and true passion to share the beauty of Ecuador with healthy lifestyle consumers and athletes around the world.
AWÁ Nutrition’s plant-based smoothie-mixes come in two lines for personalized nutrition. The Lifestyle Active series is formulated for the everyday, healthy lifestyle consumer and is available in six Andean flavor mixes. The High Performance series of mixes are ideal for more serious athletes and are available in four Andean flavor mixes.
About AWÁ Nutrition
Based in Ecuador and with offices in Santa Monica, CA, the mission of AWÁ Nutrition is to promote an active lifestyle and encourage mindfulness of nutrition through unique and natural Andean plant-based nutritional products. We source from local, small-scale producers and cater to consumers who consciously seek out quality products with greater purpose. A direct percentage of sales of AWÁ Nutrition products go toward supporting social responsibility and nutrition and sports programs for disadvantaged communities in Ecuador.
Contact
For Retail, Wholesale and Distribution Inquiries:
Felipe Guevara, CEO, AWÁ Nutrition, fguevara@awanutrition.com
For Media Inquiries:
Evan Tompros, Compass Natural, evan@compassnaturalmarketing.com
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Compass Coffee Talk Episode 25 — Mark Retzloff: A Lifetime of Service to the Planet and Its People
Compass Coffee Talk Episode 25 — Mark Retzloff: A Lifetime of Service to the Planet and Its People
Leading Podcast Compass Coffee Talk Welcomes Mark Retzloff, an Original Founder and Pioneer of the Modern Day Organic Food Industry, June 15, 2022, 11:30am EST.
Wednesday, June 15, 11:30am – 12:00pm EST
Zoom, Admission is Free
Mark Retzloff, CEO, Climate Foods
Compass Coffee Talk™, now in its 25th episode, continues exploring the industry landscape of natural, organic and sustainable products with guest Mark Retzloff. With a wide ranging impact throughout the natural products industry in his five decades of service, Mark continues to push the envelope in the role that food, agriculture and climate change play in our society and environment.
As Co-Founder of Alfalfa’s Market, Mark Retzloff was influential in the inception of natural foods retail in the United States, and helped set the standard for the modern day full service retail environment we know today. From there, Retzloff became Co-Founder of Horizon Organic Dairy, and was instrumental in leading one of the first organic milk brands to nationwide success and becoming a household name. Mark is also a Co-Founder of Greenmont Capital Partners and former Chairman of Organic Food Alliance where he was instrumental in Washington D.C., leading passage of the Organic Food Production Act in 1990. Today, Mark is CEO of Climate Foods, furthering his mission to promote soil health, make delicious regenerative organic food products and absorb tons of carbon out of the atmosphere to minimize the impacts of climate change.
About Mark Retzloff
Mr. Retzloff is a pioneer in the natural organic and sustainable food and agriculture industry with a 51-year career starting and managing a number of successful companies. He is co-founder and former chairman and CEO of Alfalfa’s Markets and also co-founded Aurora Organic Dairy in 2003. He was the University of Michigan’s School for the Environment and Sustainability, (SEAS), Practitioner in Residence for 2014/2015 and 2015/2016, and serves on the Colorado State University School of Agriculture Dean’s Advisory Board. He is past Chairman of the Board of Natural Habitats Group, a Rotterdam, NL and Boulder-based, fully integrated leader in worldwide organic sustainable palm oil production, processing, and distribution. Mark currently mentors, counsels, consults and advises numerous leaders and companies in the Natural, Organic, Local and Sustainable food and agriculture sector. In 2019, Mark co-founded Flock LLC which is a dynamic movement aimed at fast-tracking regenerative agriculture for the preservation of the planet and people.
In 1990, Mr. Retzloff was chairman of the Organic Food Alliance which was instrumental in passing the federal 1990 Organic Food Production Act in Washington D.C, and went on to become the co-founder of Broomfield, CO.-based, Horizon Organic Dairy. He then became Chairman of Rudi’s Organic Bakery, a leading Colorado-based national organic brand, where he helped execute a successful turn-around. He lends his knowledge as a board member and advisor to emerging companies, which have included Blue Horizon Organic Seafood, BlueSun BioDiesel, Boulder Ice Cream, Crocs Footwear, Evol Burritos, Goddess Garden, Haystack Mtn. Goat Cheese, Sambazon Acai, Traditional Medicinals, Tempt Hemp Milk, and Uncle Matt’s Organic Juice. Mr. Retzloff is a founding partner at Greenmont Capital Partners, and founder and former Chairman of The Organic Center and he is a past 11-year board member of RSF Social Finance.
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.
VIEW OUR PAST COMPASS COFFEE TALK EPISODES ON YOUTUBE.
Nutrition Industry Up in Arms Over Proposed Dietary Supplements Listing Bill; Could it Be a Slippery Slope to FDA “Preapproval?”
This article originally appeared in Presence Marketing’s June 2022 Industry Newsletter.
“We fully trust FDA will make mischief. We don’t know how, but we do have 60 years of history of FDA authority trying to limit access to supplements.” – Michael McGuffin, President, American Herbal Products Association, in response to S. 4090, the Dietary Supplement Listing Act of 2022
By Steven Hoffman
On April 26, 2022, U.S. Senate Majority Whip Dick Durbin (D-IL), introduced a bipartisan bill co-sponsored by Sen. Mike Braun (R-IN), S. 4090, the Dietary Supplement Listing Act of 2022.
The proposed legislation, according to a statement from Durbin’s office, would require dietary supplement manufacturers to list their products with the U.S. Food and Drug Administration (FDA), known as a mandatory product listing (MPL). In addition, companies would be required to “provide FDA with vital information about their products, including product names, a list of all ingredients, an electronic copy of the label, allergen statements, health and structure/function claims, and more. This information would then be made available to the public,” Durbin’s office said.
Introducing the bill, Durbin said, “70% of people in America take a dietary supplement, including me. I also believe that Americans who take vitamins, minerals, and herbs for their health and wellbeing have a right to know what’s in those supplements. Many people assume that if a product is sold in the United States of America, somebody has inspected it and it must be safe. Unfortunately, that’s not always true.”
Reaction to the bill among industry leaders and associations has been mixed, yet many in the nutrition industry are up in arms in that the bill proposes that all dietary supplements sold in the U.S. be listed in a federal database or registry. Opponents are concerned that it may infer that the FDA would end up gaining “pre-market approval” authority over dietary supplements, in that the bill states that upon receiving a company’s listing submission, FDA will “confirm” a “complete listing” and issue an identification number.
According to Nutritional Outlook, the questions dietary supplements companies are asking include: “What could cause FDA not to confirm a listing? Can products automatically go to market after submitting a listing, regardless of FDA’s response? Could FDA, in fact, use mandatory product listing as a premarket-approval lever to keep certain ingredients off the market?”
“This is purely premarket approval and anyone who tells you different is lying,” Daniel Fabricant , Ph.D., President and CEO of the Natural Products Association (NPA), told Nutritional Outlook. Based in Washington, D.C., NPA opposes the bill and has been galvanizing the dietary supplements industry to act quickly to send letters to voice their concerns to their legislators via a web page here.
“Senators Durbin and Braun are one step closer to creating pre-market approval for dietary supplements a reality. Their bill was recently tied to the FDA Safety and Landmark Advancement Act (FDASLA), creating new regulatory barriers and giving the FDA new authority to prevent health and wellness products from reaching millions of consumers. Sadly, Senators Braun and Durbin are using their dislike of the dietary supplement industry to misrepresent its excellent safety record. The FDASLA is intended for drugs, not supplements, and we cannot afford to allow critics to stifle the industry,” Fabricant said in an appeal to members.
NPA asserts that responsible natural products retailers and manufacturers already go to great lengths to ensure consumers have access to safe products. Operating under the framework of DSHEA, the Dietary Supplements Health and Education Act of 1994, “FDA has a robust regulatory framework to understand what dietary supplements are being sold and who is selling them,” NPA said.
“The FDA has several tools at its disposal, with associated penalties for failure to comply. Retailers and manufacturers also have strong market incentives to make safe products. The proposed language in the Dietary Supplement Listing Act of 2022 requires pre-market approval for dietary supplements, thus is more stringent than the NDI (New Dietary Ingredients) provision, which is a notification. The FDA already has access to information regarding who is making dietary supplements, where they are making them, what products are made at which facilities, when new ingredients are introduced into commerce, and whether any products are associated with serious adverse events,” the association added.
In a recent meeting of the U.S. Hemp Roundtable (USHR), representing CBD supplement companies, Michael McGuffin, President of the American Herbal Products Association (AHPA), said, “We oppose the bill because it is redundant, and we don’t think it is so perfectly written that it doesn’t drift into preapproval. I don’t see this as certain pre-market approval, but it says that FDA will confirm a submission that is complete, so what does ‘complete’ mean? FDA will interpret this as it sees fit. For example, you’re required to list all your claims, but they could say you didn’t list all your claims.”
One thing is certain, McGuffin said. “We fully trust FDA will make mischief. We don’t know how, but we do have 60 years of history of FDA authority trying to limit access to supplements,” he cautioned.
McGuffin added, “We like the word ‘listing’ vs. ‘registry,’ which sounds stronger, but Sen. Durbin said specifically ‘registration.’ Even though we all say listing because we agree not to whip people up over this, but the guy who wrote the bill, Sen. Durbin, said registration, Also, there is no exemption for retailers, so every white label brand also will have to register,” he noted.
“We understand there may be an inevitability here, and then we would switch our focus to how to make it least impactful,” McGuffin said, referring to the proposed legislation. “The details are going to be important, and there is a lot we don’t know in this bill.”
Megan Olsen, Senior VP and General Counsel for the Council for Responsible Nutrition (CRN), told USHR attendees that CRN supports the proposed Dietary Supplement Listing Act. Referring to a product registry, she said, “This could give consumers and retailers a place to look to see if products are legitimate, continuing to ensure that there is transparency over the industry and enhancing consumer trust. However,” she added,” our position is that it cannot be pre-approval. If it looks like it’s going that way, that’s when we would push back very strongly.”
In speaking of the proposed dietary supplements legislation, Karen Farrell, Senior Director of Brand Management, Nutrition and Body Care for Presence Marketing, said, “I feel like the industry should keep its antennas high on this one. We already have existing policy in DSHEA; if something needs to be changed, it should be done under the existing structure of DSHEA rather than write separate legislation outside of what already exists. We still have some people who say the supplement industry is unregulated, and that’s just not true,” she said, adding that the proposed bill could also slow product innovation and launch times.
“Dietary supplement manufacturers are already playing by the rules; they are jumping through all the regulatory hoops and have made a commitment to quality. I’ve been reviewing new products and brands for 10 years at Presence, and I think I only ever saw one brand that I had questions about, and we addressed it right away. FDA already has authority to regulate and send warning letters, etc. I don’t think we need this bill; DSHEA works, Farrell added.
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Rediscovered Ingredients that Built an Empire
Rediscovered Ingredients that Built an Empire
By AWA Nutrition
Scientists are still baffled by how Incan builders hoisted 100-ton stones to create massive, earthquake-proof structures that fit together so precisely a piece of paper can’t be inserted between the monumental building blocks. They do know, however, what fueled those builders: superfoods.
AWÁ Nutrition uses some of the same Andean superfoods to power their protein blends. Though protein product connoisseurs may be unfamiliar with some of the ingredients that make AWÁ Nutrition’s blends so powerful and delicious—they are certainly not new. These potent botanicals have been around for millennia. Mostly vegan, Incans needed power to energize their extraordinary accomplishments, from a 25,000-mile road system to brain surgery. The plants they cultivated held honored positions in Incan society for thousands of years—until they were deliberately replaced by European species—and faded into relative obscurity. Recently, manufacturers like AWÁ Nutrition have been tapping into these deep agricultural—and cultural—roots to bring the nutritional bounty of the “lost crops of the Incas” to today’s consumers.
“The superfood ingredients AWÁ Nutrition sources from small-scale producers in the Andes have been powering people for over 5,000 years,” said AWÁ Nutrition Founder and CEO Felipe Guevara. “Foods such as Andean Lupine which has the highest amount of protein of any legume and quinoa have long provided highly digestible, plant-based protein sources for humans. Combined with the benefits of super fruits grown in Ecuador and the Andes region, our products match ancestral tradition with today’s consumer desire for authentic, plant-based nutrition, fitness and a balanced diet,” he said.
Sourcing ingredients from local Ecuadorian farmers makes a positive impact on fair trade communities. AWÁ Nutrition processes and manufactures their fruits and proteins in-house through a proprietary process at its NSF-certified Good Manufacturer Practice (GMP) facility.
All AWÁ Nutrition products feature the flavors and antioxidant and micronutrient power of Andean superfoods. Most may be familiar, like passion fruit and cacao. But have you ever experienced the Andean flavor explosion of a juicy mouthful of golden berry? Think of them as nature’s Sour Patch Kids—with health benefits. They’re star players in the Andean Berries flavor of AWÁ Nutrition’s High Performance Series.
Tart, tangy golden berries have a sweet start and end with a delicate sour note, a unique berry citric flavor that tastes like a mix of pineapple, strawberry and sour cherries.
Golden Berry Powder
When dried, they have a texture similar to dried figs with a complex sweet-tart. Members of the nightshade family, they are closely related to the tomatillo and look like miniature yellow tomatoes—housed in paper-thin “lantern” wrappers. Golden berries have many names: uvilla (“tiny grape” in Spanish), ground cherry, Cape gooseberry and uchuva. In French, they’re called amour en cage, “love in a cage,” because of their nifty wrapper.
Though small in size, golden berries deliver extraordinary health benefits. Incans prized them as healing foods. In traditional Andean healing, they’ve been used for lung, urinary and digestive health. Recent research suggests they have potent anti-inflammatory properties. Packed with immunity-boosting vitamins A and C, golden berries deliver a potent dose of antioxidants, including polyphenols and carotenoids, which help fight the free radicals that damage cells and may lead to diseases like cancer.
One of this superfruit’s most unique qualities is its withanolide content. Withanolide is a naturally-occurring adaptogen (and the active ingredient in ashwagandha).
These compounds help your body adapt to stress by improving the health of your adrenal system. This, in turn, can reduce feelings of anxiety and irritability. A whopping 25% of each golden berry seed is pure protein— extremely high compared to other seeds and nuts. Almonds are 13% protein and walnuts are only 8%. The whole fruit contains 16% protein—compared with 0% in other berries like cranberries and blueberries—helping ward off hunger. Plus, golden berries contain five grams of dietary fiber per serving, supporting digestive health.
Unique superfood ingredients like golden berry set AWÁ Nutrition protein products apart from the crowd in terms of both flavor and health benefits. There are no other products made from Andean superfoods supplemented with Andean and Amazonian fruit concentrates, which deliver the micronutrients required for a balanced diet. The plant-based smoothie-mixes come in two lines for personalized nutrition. The Lifestyle Active series is formulated for the everyday, healthy lifestyle consumer and is available in six Andean flavor mixes. The High Performance series of mixes are ideal for more serious athletes and are available in four Andean flavor mixes. All AWÁ Nutrition products are dairy free, soy free, gluten free and GMO free.
About AWÁ Nutrition
Based in Ecuador and with offices in Santa Monica, CA, the mission of AWÁ Nutrition is to promote an active lifestyle and encourage mindfulness of nutrition through unique and natural Andean plant-based nutritional products. We source from local, small-scale producers and cater to consumers who consciously seek out quality products with greater purpose. A direct percentage of sales of AWÁ Nutrition products go toward supporting social responsibility and nutrition and sports programs for disadvantaged communities in Ecuador.
For more information, visit our home page at www.awanutrition.com, visit AWÁ Nutrition on Walmart.com, or visit the AWÁ Nutrition store on Amazon.com. Also, visit AWÁ Nutrition on Facebook, Instagram and YouTube.
Contact
For retail, wholesale and distribution inquiries:
Felipe Guevara, CEO, AWÁ Nutrition, fguevara@awanutrition.com
For media inquiries:
Evan Tompros, Compass Natural, evan@compassnaturalmarketing.com
Ukraine Invasion Leads to Spike in World Food Prices, Disruption of Conventional and Organic Farming
Ukraine Invasion Leads to Spike in World Food Prices, Disruption of Conventional and Organic Farming
This article originally appeared in Presence Marketing’s May 2022 Industry Newsletter
By Steven Hoffman
Russia’s invasion of Ukraine in February has become a costly war not only in terms of the devastating loss of lives, but, also, as Ukraine – known as the “world’s breadbasket” – is a major producer of conventional and organic crops such as wheat, barley, sunflower oil and more, it also has resulted in major disruptions to agriculture and trade, and now, the highest food prices the world has ever seen.
Photo: Wikimedia Commons
The United Nations Food and Agriculture Organization (FAO) in April warned that food prices could rise by up to 20% as a result of the conflict in Ukraine, raising the risk of increased malnutrition around the world, as well as social unrest. Tracking the world’s most-traded food commodities, FAO reported that food prices are at their highest since record-keeping began 60 years ago, jumping 13% in March, following February’s record rise.
According to the U.N.’s Food Prices Index, the prices for vegetable oils have risen 23%, while cereals were up 17%. Sugar rose 7%, meat was up 5%, while dairy, which has been less affected by the war, climbed 3%. Food commodity prices were already at a 10-year high before the war in Ukraine because of global harvest issues, the U.N reported.
Russia and Ukraine alone account for 30% of the world’s trade in wheat, 32% of barley, 17% of corn, and over 50% of the world’s market for sunflower oil and seeds. In fact, Ukraine’s flag in part represents blue skies over fields of wheat. And, as the war has choked off supplies from Ukraine, the world’s biggest exporter of sunflower oil, that also means the costs of alternatives have climbed.
Ukraine Planting Season Disrupted
As the war drags into Spring, and with Russia’s ongoing campaign targeting agricultural zones to the east, there’s a concern about whether Ukrainian farmers can plant much of anything this year. And if they do get their crops in the ground, production could be limited due to scarcity of seed, fertilizer, fuel and other inputs, much of which comes in from port cities including Mariupol, which are under siege. Ukraine alone exported more than $27 billion in agricultural products to the world in 2021, NPR reported.
According to Jörg-Simon Immerz, head of the grain trading at BayWA, Germany’s largest agricultural trading group, “Zero grain is currently being exported from the ports of Ukraine—nothing is leaving the country at all.” In addition, Deutsche Welle TV reported that since the invasion began, up to 300 ships have been stopped by Russian forces from departing the Black Sea, “leaving one of the key global trade routes for grain virtually blocked.”
The longer the war goes on, the more the impact on food exports will affect the world’s poorest countries. Many nations in Africa and the Middle East are largely dependent upon wheat imports from Russia and Ukraine; Lebanon gets 80% of its wheat from Ukraine, while Egypt gets 80% of its wheat from Ukraine and Russia. Somalia and Benin are 100% reliant upon wheat from these two nations currently at war. Deutsche Welle TV reported that the wheat shortages from Ukraine are being especially felt in eastern Africa where the price of bread and sunflower oil have more than doubled since the war began.
War Drives Food Inflation; Low Income Households Disproportionately Affected
Lower income households throughout the world, including the U.S., are being disproportionately affected by the drastic rise in food prices, triggered by two years of economic and supply chain disruptions resulting from the COVID-19 pandemic and exacerbated today by the Russia-Ukraine conflict.
According to Consumer Price Index data released in April by the U.S. Bureau of Labor Statistics, food-at-home prices rose 10% over the past year – the fastest pace since March 1981. Food and energy costs drove inflation to 8.5% in March compared to the same month a year ago, marking the highest rate in more than 40 years as consumers continue to feel the pinch of higher prices.
Meanwhile, grocers have tried to keep price increases from reaching consumers on such staple items as bread, meat and eggs, however, that strategy is becoming increasingly difficult, reports Food Dive. As a result, many consumers are opting for cheaper products over brand loyalty.
Analysts at Bank of America on April 21 predicted the impact of the Russia-Ukrainian conflict has yet to be fully felt in grocery stores. “Looking ahead, we think that consumers will continue to feel the pinch of elevated food inflation,” the analysts wrote. “While there has been a lot of attention on the shock from the Russia-Ukraine conflict, we believe that it is too early to see the impact at the grocery store…rather, it should lead to sustained price increases later this year.”
The Bank of America analysts reported that they expect U.S. food inflation to reach 9% by the end of 2022.
Fortune Magazine reported that Bank of America’s analysts noted that farmers, too, are dealing with spikes in the cost of inputs including fertilizers and pesticides, which have increased 50% in the past year alone, based on U.S. Bureau of Labor Statistics Producer Price Indexes. Russia was one of the world’s leading exporters of fertilizers in 2020, including urea and potash, according to the Observatory of Economic Complexity, and fertilizer prices have also been fueled by higher costs of natural gas, used in the production of nitrogen-based fertilizers.
“There are signs that companies are passing through higher costs,” the Bank of America team said, according to Fortune. “Margins look to be growing on both the wholesale and retail level, suggesting that companies have regained pricing power and are comfortable letting the consumer eat higher costs instead of them.”
Ukraine’s Organic Farming Regions Are Under Occupation
Ukraine is one of the world’s leading producers of organic crops. According to the European Commission, the country was the largest exporter of organic products to the EU in 2019, and the second leading exporter of organic products in the world, out of 123 countries.
In 2020, there were 462,225 hectares (1.1 million acres) of organic land in Ukraine, reported Organic Info Ukraine. However, much of the land under organic production is in areas where there are currently hostilities or occupation. “Since 24 February 2022 (the beginning of Russia’s full-scale invasion of Ukraine) the organic sector as well as the entire agrarian industry have been suffering from aggression. The biggest problem in many regions is access to land.” The Kherson region, for example, which is Ukraine’s largest organic region, is almost completely occupied by Russian troops, the organization noted.
Exports notwithstanding, humanitarian concerns also revolve around Ukraine’s farmers and the country’s ability to feed itself during the war. “Ukraine is a leading global supplier of agricultural products and exports a large amount of organic produce to different countries in Europe,” the Research Institute of Organic Agriculture (fiBL), based in Switzerland, said in a statement issued in mid-April.
“At the moment, FiBL and its partners (Organics International, Helvetas, and IFOAM Organics International) are looking into how they can adjust their project activities in Ukraine to meet the current needs of the Ukrainian organic sector. This is important to ensure that people of Ukraine have access to healthy nutritious food grown sustainably and that (organic) farmers do not lose their livelihoods. We are currently working with Ukrainian organic stakeholders and partners to ensure they can continue to grow and supply food and feed – now and in the future,” fiBL said.
The international organic food and agriculture community, including fiBL, IFOAM Organics International and others, is calling on its constituents to support the organic farming sector in Ukraine. Organic Info Ukraine published a “Statement on the Situation in the Ukrainian Organic Sector,” along with information on how to support organic producers and organic stakeholders in Ukraine during these critical times. Learn more and take action here.
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Steven Hoffman is Managing Director of Compass Natural, providing brand marketing, PR, social media, and strategic business development services to natural, organic, sustainable and hemp/CBD products businesses. Compass Natural serves in PR and programming for NoCo Hemp Expo and Southern Hemp Expo, and Hoffman serves as Editor of the weekly Let’s Talk Hemp Newsletter, published by We are for Better Alternatives. Contact steve@compassnaturalmarketing.com.
Compass Coffee Talk Episode 24 - David Bronner Leads Conversation on Sustainable Supply Chains, Psychedelics, and Hemp
David Bronner Leads Conversation on Sustainable Supply Chains, Psychedelics, and Hemp
Popular podcast Compass Coffee Talk focuses on Dr. Bronner’s “All-One” legacy, the company’s commitment to regenerative organic agriculture, and the potential of psychedelics.
Wednesday, May 18, 12:00pm – 12:30pm EST
Zoom, Admission is Free
David Bronner, Cosmic Engagement Officer (CEO), Dr. Bronner's
David Bronner, the Cosmic Engagement Officer (CEO) of Dr. Bronner's, North America’s top-selling natural brand of soaps and creators of organic body care and food products, joins Compass Coffee Talk on May 18 for a conversation about legacy, sustainability, and successfully pushing the boundaries in business.
Under David’s guidance, the company is driven by six cosmic principles inspired by founder Emanuel’s “All-One” philosophy: “Work hard and grow; do right by customers; treat employees like family; be fair to suppliers; treat the earth like home; and fund & fight for what’s right!”
David led sustainability in the natural products industry by making Dr. Bronner’s one of the first body-care brands to formulate with hemp seed oil in 1999. Dr. Bronner’s continues to push the hemp industry forward as a purchaser of hemp seed oil grown in North America.
Today, David is a champion of the Regenerative Organic Certified™ standard that addresses soil health, animal welfare and fair labor practices to advance sustainable and ecological alternatives to industrial agriculture. Dr. Bronner’s donates at least ⅓ of profits annually in support of charitable and activist projects around the world with a focus on their core causes: Regenerative Organic Agriculture, Animal Advocacy, Community Betterment, Criminal Justice Reform, Drug Policy Reform, and Fair Pay & Fair Trade.
About David Bronner
David Bronner is Cosmic Engagement Officer (CEO) of Dr. Bronner’s, the top-selling natural brand of soap in North America and producer of a range of organic body care and food products. Under David’s leadership, Dr. Bronner’s holds the status of second highest scoring B Corp in the world among companies dedicated to positive social and environmental impact over the profit motive. David was born in Los Angeles, California in 1973 and earned an undergraduate degree in biology from Harvard University. He is a dedicated vegan and enjoys surfing and dancing late into the night. He currently lives in Encinitas, California.
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.
