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UNPA Digest

Food and supplement industries battle sharply higher tariffs

7/11/2019

 
TOP STORY
Food and supplement industries battle sharply higher tariffs The dietary supplement and food industries face continued tariff challenges, including a recent increase to 25 percent for many dietary ingredients imported from China and new retaliatory tariffs from India on nuts and produce coming from the U.S. Industry leaders, including several trade associations, have fought the tariffs via Congress, submitting comments and participating in public hearings on the China tariffs, but exclusion from the tariffs is far from a guarantee. Read more→
UNPA NEWS
NEW! Expert Insights: "Botanical Safety Consortium Update," Thursday, July 18!
The UNPA Expert Insights webinar, "Botanical Safety Consortium Update," will be held July 18, from 11am-12 noon MDT. This webinar will provide a rare opportunity to learn about and gain an understanding of the work of the Botanical Safety Council, announced in February 2019, from an FDA insider and BSC co-chair. BSC is a public-private effort bringing together stakeholders in the botanical supplements space to advance the science of botanical safety. This Expert Insights webinar will not be recorded.

Expert Insights: "Raising the bar on claims substantiation" webinar now available for viewing
The UNPA Expert Insights webinar, "Raising the bar on claims substantiation," sponsored by TraceGains, is now available for post-session viewing. The session explains the current regulatory climate and reviews new software tools that can help simplify researching and substantiating claims.

Rocky Mountain Dietary Supplement Forum offers discount to UNPA members
The UNPA-sponsored Rocky Mountain Dietary Supplement Forum, Sept. 26-27, in Boulder Colo., is offering a 10 percent registration discount for UNPA members. The annual conference will focus on "What’s new in the dietary supplement industry for 2019." To receive the discount, enter "UNPA" in the field titled “Admin Only” on the registration page.

​M&A ACTIVITY
DDW acquires natural colors business from DuPont DDW, The Color House, has completed a transaction to acquire the DuPont Natural Colors business, which was part of DuPont’s Nutrition & Biosciences division. The acquisition expands DDW’s global reach and adds technical and manufacturing capabilities in several core natural colors, the company said.

Brandhive acquired by Decision Sciences Research Associates BrandHive, a global healthy lifestyle branding agency, has been acquired by the market research and data management company, Decision Sciences Research Associates. Finalized in May 2019, the acquisition allows BrandHive to add specialized market research and data-driven services to its portfolio.

Nutrition Capital Network deal download for June 2019 As green packaging and technology use becomes a bigger part of the natural industry, investors are looking to get involved. Healthy snacks continue to be popular, as well.

PRODUCT TESTING
ConsumerLab tests find 19 percent of B vitamin supplements failed quality standard People that take B vitamins may be getting much more than they need or than they expect from labels, according to recently published test results by ConsumerLab.com. The tests revealed that five of the 26 supplements selected for testing contained as little as 53 percent to as much as 223 percent of the listed amounts of certain B vitamins.

CBD/HEMP
Sen. Wyden urges FDA to issue discretion policy interim rule on CBD in dietary supplements Sen. Ron Wyden, D-Ore., characterized as “fully unacceptable” a suggestion by FDA that publishing a final rule authorizing the use of hemp-derived CBD in dietary supplements could take three to five years. He urged the agency to announce a “formal enforcement discretion policy” by Aug. 1.

Oregon State University launches largest, most comprehensive hemp research center in the nation Oregon State University officials recently announced plans to build the largest research center in the nation that is solely devoted to the study of hemp. Hemp could potentially become a major agricultural commodity in the United States and abroad because of its usability across several industries and sectors.

CBD producer buys Novartis plant in Colorado A manufacturing facility that Novartis discarded because of declining generic drug sales is getting a new life. The plant near Boulder, Colo., will be converted to produce CBD products from hemp by Mile High Labs.

PARTNERSHIPS
Kappa Biosciences vitamin K combines with OptiBiotix probiotic in vascular health deal OptiBiotix subsidiary ProBiotix signs a license agreement with Kappa Bioscience for the use of its Lactobacillus plantarumprobiotic strain to address cardiovascular health.

Robertet forms JV for broad-spectrum hemp extracts in U.S. market French natural products specialist Robertet is bringing its supply chain experience to broad-spectrum hemp extracts focused on the U.S. market.  The joint venture includes Oregon-based company Klersun.

GLOBAL REGULATORY
Supplement regulation puts consumers in jeopardy, insists Romanian industry group
The Romanian Association of Self Care Industry expressed frustration with the country’s delay in approving food supplement regulations, saying it jeopardizes the safety of its consumers.

MEDIA WATCH
Trade groups slam review that says most supplements, even dietary interventions, offer no cardiovascular protection A new paper argues that there is little evidence to support the use of most supplements and dietary interventions to benefit cardiovascular health. According to the paper in Annals of Internal Medicine, multivitamins, vitamin A, vitamin B6, vitamin C, vitamin D, calcium, folic acid and iron, did not seem to have a significant effect on mortality or cardiovascular health. Disagreements about the methodologies and interpretation of results focused on questions of interpersonal variation.

Facebook tweaks platform to relegate misleading nutrition claims Facebook is to address misleading nutrition, health and fitness claims that have blighted its platform after accusations that the company is a source of fake news and inaccurate articles.

ORGANICS
Organic farmers stalk fraudulent imports Sales of organic food have more than doubled over the past 10 years in the United States, but organic farmers are struggling to produce enough organic feed for the animals that provide organic eggs, milk and meat. Now, organic farmers are seeing a rise in counterfeit imported organic grain that is lowering prices for certified organic farmers in addition to defrauding customers—and they’re fighting back.

Rodale Institute launches new organic research and training center in Georgia This fall, the Rodale Institute will launch the Southeast Organic Center, a new regional resource center focused on the unique challenges of farmers in the southeast United States, at Many Fold Farm. The center aims to innovate in agriculture and increase healthy food access in the region.

GMOs
Trump administration wants to ease the way for more GMO crops The Department of Agriculture has issued a proposal that—if approved—would be the first “comprehensive revision” of the set of rules that have regulated genetically modified crops since 1987. The biggest revision would allow crops to be created using traditional methods, such as crossbreeding, without having to undergo USDA regulation.

E-COMMERCE
Inside the conflict at Walmart that’s threatening its high-stakes race with Amazon Walmart is projecting losses of more than $1 billion for its U.S. e-commerce division this year. Should Walmart fail to close the gap between itself and Amazon soon, the latter could easily become the de facto online marketplace with little to no legitimate competition; Walmart, however, could help fight this hegemonic fate by building out its warehouse infrastructure.

OMEGA-3s
Why don’t more consumers use omega-3s? A recent webinar discussion hosted by NutraIngredients-USA pointed out that the omega-3s market is robust, albeit slowly growing, but also that it could be so much more. Panelists included Ellen Schutt, executive director of the Global Organization for EPA and DHA,  Sam Wiley, CEO of finished goods brand Wiley’s Finest and William S. Harris, Ph.D., Sanford School of Medicine at the University of South Dakota.

PROBIOTICS
Data shows probiotics supplement sales entering slow growth phase Euromonitor has seen a definite softening of the market for probiotic supplements, according to data presented at the recent Probiota Americas 2019 meeting.

Study finds sweet spot for probiotics in online consumer engagement If a probiotic product is not averaging at least a 4.2 score in online consumer reviews, it could be headed for trouble from a sales standpoint, according to a recent study from Lumina Intelligence.

Harvard researchers creating probiotics pill to help boost endurance A recent study found that after marathon runners and endurance athletes exercise, they have higher levels of a bacteria named Veillonella in their digestive microbiomes than sedentary individuals do. Mice who were given an isolated strain of the bacteria lasted 13 percent longer on a treadmill, but more research needs to be done on how to safely and effectively manipulate bacteria in the human microbiome.

ENVIRONMENT
The great nutrient collapse is real, warns agronomist It is time to act on soil erosion to stay in business, warns Tobias Bandel from Soil & More. He notes a report from German insurance giant Allianz, which warned food and beverage businesses that a failure to manage natural resources would bring increasing interruption and liability risks.

SUSTAINABILITY
Rethink disposables for plastic-free July This July, Clean Water Action’s ReThink Disposable program is excited to be part of the solution to reduce plastic pollution by urging people to make a pledge to continue with and commit to new actions such as bringing a reusable shopping bag; using fewer plastic bags for produce and bulk items and utilizing reusable food containers and utensils, among other actions.

U.S. produces far more waste and recycles less of it than other developed countries A new analysis from global-risk consulting firm Verisk Maplecroft has found that the United States produces 12 percent of global municipal solid waste while representing a mere 4 percent of the population. The firm’s senior environmental analyst stated that, “There’s too much focus on recycling being the kind of silver bullet solution, which it is not,” and that there needs to be more a global shift to becoming zero-material-footprint.

INDUSTRY
40 unforgettable founders in the natural products industry As Natural Foods Merchandiser marks its 40th birthday, the editors highlight 40 natural leaders—brands, distributors, organizers, educators, and associations—that built this amazing natural products industry. Those singled out include UNPA’s Loren Israelsen, as well as several UNPA members.

APAC MARKET
Supplements and Chinese kids:  Parents need more education to make informed choices Chinese parents and caregivers, who buy dietary supplements for their children, often lack the necessary knowledge to make informed choices, according to a cross-sectional study conducted in Hunan Province. Researchers from China’s South Central University conducted the study to assess dietary supplement prevalence and related factors among school children.

UNPA MEMBER COMPANY NEWS
Omniactive gains non-GMO project verification for CurcuWIN Omniactive Health Technologies’ enhanced-absorption curcumin extract, CurcuWIN, is now Non-GMO Project Verified. In a published human clinical trial, CurcuWIN was shown to have 46 times greater relative absorption than standard curcumin.

Pharmavite review supports choline, DHA roles in infant brain and eye health Insufficient intakes of choline and the omega-3 docosahexaenoic acid (DHA) may have lifelong deleterious impacts on maternal and infant health, according to a paper by researchers from Pharmavite LLC, the company behind Nature’s Made supplements.

NBJ announces annual award winners Every year, Nutrition Business Journal awards companies and individuals in such categories as growth, innovation, education and efforts on behalf of industry. This year’s awards are for management achievement, growth, and mission and philanthropy and include UNPA members MegaFood (Pharmavite) and MOU partner Roy Upton of the American Herbal Pharmacopeia (see article, below).

COMMENTARY
Can CPG brands withstand the escalating online private-label onslaught? Competition from private label has been a sticky reality for CPG brands in brick-and-mortar stores for decades now, and it’s definitely not going away. While CPG online dollars remains relatively low, jumping from 1.3 percent to 3 percent in the past two years, for national brands in many household and personal care staples categories, private label’s online share growth is nothing short of alarming.

MOU PARTNER NEWS
Roy Upton receives NBJ 'efforts on behalf of industry' award Roy Upton's passion for herbal medicine drove him to create the American Herbal Pharmacopeia. Anybody else might have been intimidated by the depth of need that an American Herbal Pharmacopeia would address, but Upton just did it and that is one of many reasons he is being honored with the NBJAward for his efforts on behalf of industry.

INNOVATION
Groundbreaking: Nespresso-style supplement to reach consumers in 2020 Hermes Pharma says its NutriCaps creation, which provides users with nutritional dosage forms via Nespresso compatible coffee pods, will be available to consumers next year.

Cloud science: Smartphones helping to identify anti-cancer compounds in foods while we sleep Thousands of smartphones are being connected to a powerful 'cloud computing' network while their users sleep, to help scientists uncover the potential anti-cancer properties of everyday foods and medicines.

MARKETING
Purpose-driven? Brands need to live it
According to research firm Accenture, "consumers in the United States are assessing what a brand says, what it does and what it stands for, supporting companies whose brand purpose aligns with their beliefs. And they reject those that don’t, with one in five walking away forever."

Keys to communicating scientific messages: A conversational tone and soundbites In an age of information overload, how can scientists and researchers in the nutrition space make sure they are communicating scientific findings and messages effectively to the public? At the IPA World Congress, Brenda McArthur of Stoneybrook University’s Alan Alda Center for Communicating Science talked about using conversational language to communicate complex ideas.

MARKET RESEARCH
Convenience is a leading motivator for dietary supplement use in North America, says Euromonitor A survey of more than 20,000 respondents conducted by market research firm Euromonitor International suggests that Americans are heavily reliant on vitamins and supplements and seem to be willing to forego getting their vitamins and nutrients from foods.

RESEARCH
Akkermansia supplementation finds novel way to tackle metabolic-related disorders Supplementation with Akkermansia muciniphila may improve insulin sensitivity and cholesterol levels in a study that points to the gut bacterium’s effect on weight and metabolic syndrome-related traits.

Spinach extract effect potent enough to feature on WADA banned list Supplementation using a spinach extract appears to promote a muscle-building effect in a study that has piqued the interest and cooperation of the World Anti-Doping Agency (WADA).

‘Elegant’ study deepens our understanding of how we respond to EPA, DHA omega-3s Humans consuming omega-3 supplements can convert EPA to DHA, but this is only a one-way street, and no retroconversion occurs, according to a new study from the University of Toronto that extends our knowledge of how we respond to supplementation.

Micronutrient deficiencies: Researchers discover change in celiac disease symptoms Micronutrient deficiencies, including vitamin B12 and D, as well as folate, iron, zinc, and copper, are common in adults with celiac disease and must be addressed at the time of diagnosis, according to a study from the Mayo Clinic.

B vitamin supplementation eases metabolic symptoms in adults: Japan RCT Supplementation with B vitamins (among others) can lower plasma homocysteine levels in those with some form of metabolic syndrome, according to an RCT conducted in an adult Japanese population.

FDA WARNING LETTERS & GUIDANCES
Current FDA enforcement actions and guidances Keep up to date on FDA’s current enforcement actions, including general warning letters, recall information and GMP compliance issues, with this link to FDA's website. 

Search and sign up for a variety of FDA Guidances.

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