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UNPA Digest

Industry focus on small producers may limit pricing impacts of Amazon, Whole Foods deal

8/10/2017

 
​RETAIL
Industry focus on small producers may limit pricing impacts of Amazon, Whole Foods deal
Supermarket News
​
The structure of the natural products industry could limit how much Amazon is actually able to reduce prices at Whole Foods, as many observers believe it will try to do, once its pending $13.7 billion acquisition is finalized. Although price differentials have been narrowing, the lifeblood of the industry is still small producers with high standards and production costs. The pending acquisition is also predicted to expand online opportunities for natural and organic brands. Read more→
UNPA NEWS
UNPA Members' Meeting at SSW
NEW! The 2017 Members' Meeting at SSW will be held Wednesday, Sept. 27, from 8-8:50am, at the Mandalay Bay Convention Center, South Seas Ballroom H (Level 3). RSVP here.

UNPA office hours for August
All of UNPA's offices (Utah and Colorado) will be closed on the four Fridays during the month of August. We will respond to your communications and requests promptly.

New Prop 65 insurance policies available
Life Science Risk has unveiled new Proposition 65 liability insurance for dietary supplement/ingredient manufacturers, distributors and formulators, with up to $1 million in coverage caps. View information here or contact Dick Griffin, 916.434.8874.

UNPA member discounts
See "UNPA Member Discounts" in the right column for new discount offers from Rocky Mountain Dietary Supplement Forum, NBJ and The Journal of Alternative and Complementary Medicine.

Recently posted at unpa.com:

Washington Update by Patricia Knight and Peter Reinecke, UNPA Senior Political Advisors (Member log in required)
Updated PCQI FAQ
Issues Update conference call (log in)
UNPA announces onsite PCQI training
Synched PPT/audio file of Jim Thomas' Introduction to Synthetic Biology presentation at the 2017 UNPA Members' Retreat (log in; suggest streaming only; file is VERY large)
"Who's your PCQI? An introduction to PCQI."
2017 UNPA Members' Retreat coverage, including podcasts from UNPA member executives
Interview with Larisa Pavlick (Nutraceuticals World)
UNPA endorses the CRN OWL program (log in)
A new language converter has been installed on a number of pages of the UNPA website. Check it out in the upper left corner!
The presentations and videos from the 2017 UNPA Members' Retreat are now available for viewing/downloading.(log in)
Plus, updated industry events calendar,Member Memos (log in) and UNPA educational archives (log in).M&A ACTIVITY
Aker buys Neptune bulk krill business; Wellnext snaps up Neocell; Captek acquires J+D Labs; Analysts say Sprouts last grocery takeover candidateNutraingredients-usa.com, New Hope Network, Nutraceuticals World, CNBC.com
Aker BioMarine has bought the bulk krill oil supply business of Neptune Technologies & Bioressources for $34 million. The Norwegian-based supplier will receive all of Neptune’s existing krill oil, bulk krill raw material and some intellectual property regarding its extraction methods. Florida-based dietary supplement manufacturer Wellnext completed its fourth acquisition in two years with the addition of Neocell, a collagen supplement company in Irvine, Calif. California-based Captek Softgel International Inc., a contract manufacturer of custom dietary supplements and part of Swander Pace Capital (SPC), has acquired J+D Labs Pharma Manufacturing Inc.The acquisition is a continuation of SPC’s focus on investing in and growing industry-leading vitamin, mineral, and supplement companies. While several large grocers have seen their stocks take a beating since Amazon made a bid for Whole Foods Market,Sprouts has seen its shares rise 24 percent. JPMorgan analysts say it’s the most likely takeover candidate of all publicly traded grocers because of its unique business model. Read coverage:
Aker buys bulk krill oil business from Neptune→
Wellnext adds collagen supplement brand Neocell to portfolio→
Captek Softgel International acquires JD Labs→
Sprouts is the only likely takeout candidate left among grocers: JP Morgan→FINANCIALS
Nu Skin posts Q2 earnings; Initiatives to stem losses at Vitamin Shoppe; Nature’s Sunshine software switch slows sales; Natural Grocers plans for slow growthNASDAQ.com, New Hope Network, Nutraingredients-usa.com, Supermarket News
Nu Skin Enterprises Inc. posted 2Q17 fiscal results, in which both earnings and sales surpassed the Zacks Consensus Estimate. Moving ahead, the company remains focused on boosting its customers and sales. Store improvements, competitive pricing, cost reductions and a new supplement subscription program could stem losses expected at The Vitamin Shoppe, according to CEO Colin Watts in the 2Q earnings report. Vitamin Shoppe sales fell 8.4 percent in the quarter at $304.8 million compared to $332.7 during the same period in 2016. Network marketing company Nature’s Sunshine reported lowered earnings, driven mostly by a protracted and difficult software switchover, which has cost the company sales and made recruitment and retention of new sales associates difficult. 2Q17 sales were $81.3 million compared to $89.4 million for the same quarter last year.Natural Grocers by Vitamin Cottage plans to refocus on operations as its path to improved profitability. After experiencing a roller coaster year, the chain will slow its pace of growth and commit to operational efficiencies. Read coverage:
NuSkin tops Q2 earning and sales, currency a woe→
Vitamin Shoppe advances reinvention amid sales struggles→
Bungled software implementation hurts Nature’s Sunshine→
Natural Grocers plans to slow growth→NATURAL CLAIMS
District court dismisses allegation that 'natural' means no glyphosateFDALawBlog
Although FDA’s December 2015 request for comments certainly impacted the filing of lawsuits, new cases continue to be filed, and plaintiffs bring up new arguments against natural claims. One relatively recent trend sees plaintiffs challenging the presence of trace amounts of an agricultural pesticide in food. In these lawsuits, plaintiffs allege that natural (or "100% natural") claims are false or misleading because the products contain small amounts of glyphosate, a synthetic pesticide. A recent ruling called that assumption implausible. Read more→OBITUARY
Industry honors the life and passing of legendary retailer Stanley JacobsonWhole Foods Magazine
Stanley Jacobson, owner of Country Health Store in Florida for 21 years and a two-time president of the National Nutritional Foods Association [now NPA], passed on Aug. 7 at age 81. He is survived by his wife of 60 years, Debra, two children and two grandchildren. He is credited with advancing industry legislation and education. Jacobson’s efforts were instrumental in the passage of DSHEA in 1994. Read more→
RESEARCH/MEDIA
Experts baffled by review’s warnings about eye health supplementsNutraingredients-usa.com
A recent Cochrane Review article that looked at the effects of antioxidant supplements on age-related macular degeneration contained some warning statements about the safety of the products that dumbfounded experts in the field, including Jeffry Blumberg, Ph.D., of Tufts University. Blumberg called the warnings “gratuitous.” Read coverage:
Warnings about safety of supplements in eye health review called 'gratuitous' by experts→
Cochrane review that belittled carotenoids role in slowing AMD didn’t value AREDs II results highly enough, researchers say→BOTANICALS
Researchers point to botanicals with potential for type 2 diabetesNutraingredients-asia.com
Fenugreek, ivy gourd, Russian tarragon, psyllium and ginger all have been identified as some of the most promising botanicals meriting further investigation for treatment of type 2 diabetes, according to researchers from the University of Macau. They found that certain herbal supplements can alleviate nutritional deficiencies in these patients, although more safety and efficacy data is needed. Read more→GLOBAL REGULATORY
EFSA updates PRIs for riboflavinNutraingredients.com
The European Food Safety Authority has published an update to population reference intakes (PRIs) for adults, children and pregnant and lactating women relating to riboflavin (vitamin B2). The revisions are prompted by new scientific findings on intakes since the previous values were published 24 years ago. Read more→ORGANIC
Bill to help growers transition and bridge gap between organic supply, demandEnvironmental Working Group
Rep. Ann Kuster, D-N.H., has introduced a bill (HR 3637) that would better assist producers in switching to organic by providing them with valuable technical and financial assistance and making more farmland available. Read more→UNPA MEMBER NEWS
Sabinsa joins Global Curcumin Association as founding board member; study finds OmniActives Capsimax increases metabolic rate; Waters offers personal care analytical solutions workshopsNew Hope Network
Trust Transparency Consulting announced that Sabinsa Corporation has become a founding board member of the Global Curcumin Association (GCA), established through the consultant’s incubator program of single-ingredient trade associations. Sabinsa is a global ingredients supplier with a broad scientific and intellectual property platform to support its products, including Curcumin C3 Complex®,C3Reduct, and Uc3 Clear. Read more→
Nutraceuticals World
A recent paper published in the journal Obesity: Open Access discussed the findings of a Metabolic Rate (MR) Study, which demonstrated that an extract from red hot peppers boosted metabolic rate. The placebo-controlled, crossover open label study of 40 healthy adults examined the effects of either 2 mg capsaicinoids from 100 mg of Capsimax, produced by OmniActive Health Technologies, or placebo, on resting energy expenditure, heart rate and blood pressure. Read more→
Waters
Waters is conducting two one-day workshops to help companies understand analytical challenges and technologies available for counterfeit detection, raw materials testing, formulation testing, safety and regulatory testing, quality control or active ingredient testing for the cosmetics and personal care industry. The workshops will be held in Sherman Oaks, Calif., Sept. 12, and Salt Lake City, Sept. 14. Read more→
INNOVATION
Potatoes provide potential for polyphenol deliveryNutraingredients.com
The ability of polyphenols to bind with different types of potato cells may provide a new means of delivering them to the gut, say researchers from Queensland University and the Institute of Agrochemistry and Food technology in Valencia. The technique provides a novel method for delivering polyphenols and dietary fiber to the large intestine. Read more→NUTRICOSMETICS
Fungi-based formulations show potential in nutricosmeticsNutraingredients.com
The potential of a mushroom extract goes beyond its nutraceutical properties, as a Portuguese study now identifies its nutricosmetic potential as a topical formulation ingredient for the skin. Read more→MARKET RESEARCH
IRI study: Consumer preferences drive changes in store format, programs; it's time to look at Gen ZProjectNosh, MediaPost
Consumers are buying into new kinds of store programs and formats that better fit their needs—and it’s evolving the food industry, according to market research firm IRI’s recent Channel Performance Report. The report, which evaluates consumer shopping patterns across retail channels from conventional to convenience, lays out a picture of the largest growth opportunities in retail for CPG brands. Meanwhile, millennials have been the focus of public obsession for years now, but it’s time to start shifting attention from millennials to their younger counterparts:Generation Z. Gen Z currently makes up a quarter of the U.S. population, and they are projected to account for 40 percent of all consumers by 2020. Read coverage:
IRI Report: Navigating consumer differences and desires→
What Generation Z wants→
RESEARCH
Vitamin D for healthy pregnancy; Korean herbs aid prostatitis; probiotics with tryptophan sooth gut; B vitamins help depression; BCAA better for recovery; niacin prevents melanomaNutraingredients.com, Nutraingredients-usa.com
Maintaining good blood levels of vitamin D during pregnancy may help reduce the risk of preterm birth by 60 percent, says a new study of 1,000 women and babies from the University Medical Center of South Carolina. Ojayeonjonghwan (OJ), a traditional Korean combination of herbs and botanicals, has a positive effect on prostatitis due to its anti-inflammatory properties, according to a recent South Korean study. Combining the probiotics lactobacillus reuteri with the protein tryptophan could help promote greater tolerance in immune cells in the gut, according to new animal data from Washington University School of Medicine in St. Louis. Supplementation of B vitamins may improve symptoms of depression, according to researchers from the College of Health and Biomedicine at Victoria University, Australia.Branched chain amino acid supplementation is better than rest to reduce muscle soreness after exercise, according to a meta-analysis of eight studies conducted on athletes from the School of Nutritional Sciences and Dietetics at Tehran University of Medical Science. Researchers from the University of Sydney have found that nicotinamide, a form of niacin, may have the potential to prevent melanoma in high-risk individuals. Read coverage:
‘Powerful’: Raising vitamin D levels may slash preterm birth risk→
Traditional Korean herb combination can counter prostate inflammation→
Tryptophan coupled with probiotics could help sooth gut inflammation: Mouse data→
Review explores mounting evidence linking B vitamins and depression→
BCAA supplementation may beat simple rest for muscle recovery among athletes, meta-anlysis suggests→
Niacin may have a role in melanoma prevention, suggests review→FDA WARNING LETTERS & GUIDANCES
Current FDA enforcement actions and guidancesKeep 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.Read more→

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