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UNPA Digest

Panic buying of immune products causes shortfalls, greater supply gaps loom in months ahead

3/19/2020

 
TOP STORY
Editor’s Note: Due to the major disruptions caused by the COVID-19 pandemic, UNPA has expanded its coverage of news related to the outbreak and the dietary supplement industry, including other items of professional and personal interest. Stay safe and healthy!

Panic buying of immune products causes shortfalls, greater supply gaps loom in months ahead A pulse of supply and production issues caused by the COVID-19 crisis is making its way through the dietary supplement industry. Inventories of botanical ingredients continue to hold up, but unprecedented demand for immunity boosting products is causing some strain. The picture of the global disease crisis is increasingly complicated, and it is difficult to predict what next few weeks will bring. Following is a list of articles detailing the many impacts and efforts in the dietary supplement industry to address issues and anticipate challenges. Read coverage:
Panic buying of immune products  causes shorfalls, greater supply gaps loom in months ahead→
Export Challenge: China’s botanical firms in supply chain battle as global orders rebound for immunity ingredients→
New coronavirus stable for hours on surfaces→
CDC: Checklists for individuals and families→
COVID-19 update: Industry works to keep stores well-stocked to meet consumer needs→
COVID-19: Opportunities for health supplement firms to communicate immune-boosting role of micronutrients→
Disease crisis turns up pressure on analytical labs: UNPA members comment→
Natural retailers bolster efforts to limit Covid-19 transmission→
Small firms also struggle as restaurants shut down due to coronavirus→
COVID-19 brings strong China online sales for ANZ’s Comvita and AuMake→
Analysis: New trends in wake of coronavirus→
Trade show COVID-19 disruptions highlight value of in-person connections→
Apps to provide calm→
UNPA NEWS
Dietary Supplement Regulatory Summit postponed; new date and registration details to be announced shortly
This fifth annual, one-day summit hosted by UNPA, AHPA, CHPA, CRN and NPA, scheduled for May 27 in Washington, D.C., has been postponed due to the ongoing coronavirus outbreak. The health and safety of participants is the top concern and focus.The host trade associations are in negotiation with the summit hotel to confirm a new date in Q3 or Q4. Details, including about the status of all registrants, will be forthcoming shortly.

UNPA HempExtract/Cannabinoids Committee update webinar available for viewing
The March 16 UNPA Hemp Extract/Cannabinoids Committee update webinar is now available for viewing at the link above. Short registration required, and there is no charge to view the webinar.

UNPA rescheduled Members' Meeting webinar now available for viewing
The UNPA Expo West Members' Meeting, postponed from its original March 4 date, was held via webinar Wednesday, March 11, and is now available for viewing at the link above--short registration required, and there is no charge to view the webinar.

UNPA IN THE NEWS
Trade show COVID-19  disruptions highlight the value of in-person connections

COVID-19 disrupting supply chains short-term, could spark long-term procurement shifts

Coronoavirus effect on supply chain: 'Make plans, be prepared.'


UNPA: WHERE IN THE WORLD?
UNPA's Israelsen participates in TraceGains' coronavirus webinar 
UNPA President Loren Israelsen was a featured speaker for the Feb. 27 webinar sponsored by UNPA member TraceGains, "Coronavirus: How to avoid supply-chain disruptions," to discuss the impact to the ingredient supply chain in China due to the the coronavirus outbreak there. You can view it and download the PPT slides for free here.

REGULATORY
FDA announces audit rollbacks in wake of COVID-19 FDA issued a statement communicating its intent to temporarily not enforce on-site audits and supplier verification under the Food Safety Modernization Act. This comes in response to the travel restrictions and hazards associated with the COVID-19 pandemic. The agency intends to use other supplier verification methods instead.
 Regulators crack down on health misinformation on Instagram FTC is revisiting its Endorsement Guides and seeking public comment on what changes might be needed as it initiates an enforcement action on health claims made by influencers.

HEMP/CANNABINOIDS
USDA secretary calls hemp rules a 'draft,' sparking industry optimism The hemp industry might have reason to cheer, according to industry insiders, because Agriculture Secretary Sonny Perdue told Congress last week that the interim final rules regulating federal hemp production may be considered a draft, which means their enforcement could be delayed.
 'Scandal' of high THC in CBD products slammed by industry The side effects of cannabidiol (CBD) products are ‘most probably’ due to native THC contamination rather than by direct action of CBD or its chemical transformation, according to a German-led study.
 Will synthetic CBD have a place in dietary supplements? It would appear that CBD sales are outpacing the establishment of regulations, testing, and safety data. To make matters more complicated, a market for synthetic CBD could be on the horizon. What is synthetic CBD? And how might it influence the market for natural, plant-derived CBD? Click on images to access text.
 Emerging hemp supply chain dynamics bring opportunities and challenges Hemp is a booming industry, but challenges exist all along the supply chain—from farmers’ inexperience to processing details and meeting consumer demand.

LEGAL
Influencer 'detox' tea company forced to pay $1 million for false health claims FTC imposed a $15.2 million judgment against Teami, a "detox" tea company with deceptive health claims for its products that include cancer- and migraine-fighting properties. FTC Commissioner Noah Phillips took the opportunity to remind influencers that paid brand advertisements need to be clearly stated on a given social media platform.

FINANCIALS
GNC tells SEC it can’t cover its debt GNC requested extra time to finalize its annual report and financial statements after alerting the Securities and Exchange Commission that it would not be able to cover its $700 million debt. Shares of the company once again fell below $1 this past week.
 CBD firm CV sciences reports 11 percent rise in sales One of the pioneers of the space topped $53 million in annual revenue, but also recorded a loss as the founders cashed out. The firm also said regulatory uncertainty has increased competition as numerous small brands crowd into the field.

GLOBAL REGULATORY
EC suggests controversial ban of botanicals in supplements The European Commission is looking to ban several botanical species containing hydroxyanthracene derivatives widely used in food supplements and herbal medicinal  products for their laxative effect.
 German government and Euro hemp trade group clash over CBD status The German Food and Agricultural Ministry has refuted an EU hemp group missive that the ministry had changed its position regarding the novel food requirement for some CBD extracts in the EU.

TESTING
USP’s updated K2 monograph now includes testing for stability-enhanced K2 The United States Pharmacopeia has updated the vitamin K2 MK-7 analysis monograph to include a method of testing microencapsulated MK-7 powder to reflect the growth of stability-enhanced K2, as well as reduce the risk of false-negative results and need for retesting. Vitamin K2 that is not stability-enhanced is not stable in high-alkaline formulations, such as calcium and magnesium.

SPORTS NUTRITION
Sports nutrition 2020: Plant proteins and beyond This evolving profile of the sports nutrition customer has turned the sports and active nutrition categories into growing markets with more possibilities for brand marketers than ever. So what’s really performing strongly in the sports nutrition market, and what trends will continue to influence products on the shelf?
 What’s driving sports nutrition consumer purchases? Sports nutrition consumers are harvesting information from a wide variety of sources, whether in-person or online, according to insights gleaned from FMCG Gurus’ “USA Sports Nutrition Survey.” In terms of the information that these consumers value the most, 78 percent of consumers surveyed report looking for probiotic content, and 74 percent want to confirm that the products they purchase contain no GMO ingredients.

UNPA MEMBER COMPANY NEWS
Bundesliga Club VfL Wolfsburg enters long-term partnership with USANA The Bundesliga's VfL Wolfsburg will bolster its energy and nutritional needs with nutritional supplements from U.S. manufacturer USANA. The Salt Lake City-based company is the German club's new official multivitamin partner and supplier. The partnership includes visibility in the Wolves Volkswagen Arena, along with creative activations, hospitality packages and joint initiatives in the United States.
 Trust Transparency Center launches Collagen Stewardship Alliance Once only associated with outer beauty, collagen is casting a wider net by entering into more functional categories and becoming a household name. The Trust Transparency Center announced the launch of the Collagen Stewardship Alliance to raise awareness of collagen, track data and insights and provide outreach on behalf of the segment's stakeholders.

MARKETING
The business of pandemics: Can marketers survive? In a recent study, 20 percent of industrial marketers are cancelling plans to attend or exhibit at events. Pete Hoelscher, CEO of IEEE GlobalSpec, the provider of the research, discusses whether that 20 percent is worth worrying about.   
 How brands should act in times of crisis Brands should think long and hard about whether extending a hand will come across as self-serving. If it’s a yes to being part of the solution, while staying true to who you are, get going. But if extending a hand will seem self-serving (mostly because it is), then stand down.

MARKET RESEARCH
So Chic: A fashion for fiber boosts chicory root sales The consumer buzz for boosting good bacteria will see Europe’s prebiotic market value exceed $3.5 billion by 2026, according to new market research from Graphical Research.

RESEARCH
SCFA could improve efficacy of MS treatment Supplementation with the short chain fatty acid proprionic acid could reduce excessive inflammatory processes in autoimmune diseases, such as multiple sclerosis and improve treatment outcomes, according to a study from Germany.
 Curcumin cuts brain inflammation in rat cell model The inflammation-quelling aspects of curcumin have been studied for years. New research suggests the ingredient can cut a specific form of inflammation associated with memory loss in neurodegenerative conditions.
 Mushroom blend shows range of immune boosting effects in vitro A mushroom blend showed a variety of immune boosting properties in recent in vitro research published in the Journal of Inflammation Research.
 Study suggests formula matters in CoQ10 supplements In a study recently published in the journal Nutrients, researchers found that CoQ10 was better absorbed by the body in some delivery formats over others. According to the study, the investigational water-soluble syrup caused 2.4-fold higher CoQ10 bioavailability than the standard ubiquinone product. The comparative ubiquinol product was not significantly different than the standard ubiquinone product.

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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