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Archive for October, 2007

Consumer survey finds Wal-Mart the top grocery for organic users

The editorial team of Nutrition Business Journal is working around the clock to finish up the October Consumer Research issue of NBJ. While scanning al the consumer study headlines coming out these days, this one caught my attention. Apparently, Wal-Mart is tops with organic consumers.


“Wal-Mart Supercenter is the top grocery store for organics users, according to a recent analysis by Scarborough Research. Twenty-nine percent of organics consumers shopped Wal-Mart Supercenter during the past week. However, organics consumers seem far more passionate about shopping at Whole Foods. The store has the nation’s highest concentration of organics consumers in its aisles. According to the study conducted from August 2006 through March 2007, organics consumers are 272 percent more likely than the average consumer to have shopped Whole Foods during the past week. They are 21 percent less likely than average consumers to have shopped in Wal-Mart Supercenter during this timeframe.”


For more on this consumer study, click here.

Japanese Nutrition Industry Overview by Paul Yamaguichi

Though I’ve never met the man in person (something I hope to do so soon), I’ve admired Paul Yamaguichi’s work in the pages of Nutrition Business Journal’s Global Nutrition Industry Overview issues for years. Paul is the founder of Paul Yamaguchi & Associates Inc., a publishing, research and consulting firm specializing the Japanese nutrition, functional food and nutraceutical market.


Paul’s most recent review of the Japanese nutrition market, can be read on NPICenter.com. Here’s a teaser.


“For the last 20 years the Japanese nutrition industry has averaged 12% annual growth. Between 2000 and 2001, it grew 22%, its biggest gain in a decade. Between 2002 and 2004, the growth rate was a modest 4% a year. Growth started to slow in 2005 to 2% a year—but it was still growing.


We can all experience a slow year in business, but whoever thought the market would contract? In 2006, the Japanese nutrition market fell by 2% to $25.9 billion from a year ago. Is this a growing pain or an indication of larger issues for the nutrition industry?”


Paul’s explanation of the decline of the Japanese market is excellent. To read more, click here.

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Accelerade early sales “significantly” below forecasts

Cadbury just announced Accelerade sales came in significantly below forecasts and the head of the American Beverage Unit of Cadbury is leaving. In a Bloomberg article, more details are discussed.


In our September Sports Nutrition & Weight Loss issue, we discussed Accelerade’s aggressive advertising campaign to go after “old man” Gatorade. At Expo East, I asked a few people familiar with the research behind Accelerades 4-to-1 carbohydrates to protein formula and received only positive reviews. I guess it will take more than just good science and an aggressive advertising campaign to dislodge Gatorade from its perch atop the sports drink category.

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Harris Poll of 2,392 finds organic foods perceived as safer, better & worth the extra cost by consumers

There is no denying that organic is the latest driver of growth for the greater “healthy foods” category, which Nutrition Business Journal defines as organic, natural, lesser-evil and functional foods. More definitions are available here.


What is interesting, is how many different consumer types (as defined by Harris Interactive) buy organic foods on a regular basis.


Harris finds, “Some segments of the population are more likely to buy organic foods regularly: college graduates (11%), Liberals (11%), Westerners (10%), Echo Boomers (those aged 18-30; 10%), and Gen Xers (those aged 31-42; 9%).”


For many years, organic was just a niche frequented by the very wealthy or the core, organic food “passionates”. That has changed, and now there is a piece of research to prove it.


NBJ also publishes annual research on the organic foods market in the form of an issue of the journal, a report and downloadable data charts.


Check them out! NBJ’s market figures on organics are broad and deep!

CRN’s annual symposium cites nutrition industry’s challenges & progress

I just returned from the annual symposium held by the Council for Responsible Nutrition (CRN) in Scottsdale, Arizona. Speakers included a wide variety of experts from the FDA, Vitamin Relief, The Council of Better Business Bureaus, CRN, the General European Commission, NBTY, The Vitamin Shoppe, Natural Alternatives International, Shaklee and ABC News.


CRN President & CEO, Steve Mister, called for for CRN members to increase self-regulation of misleading advertising and prepare for implementation on adverse event report systems and manufacturing GMPs.


However, the two sessions I found most interesting were from Jeremy Haft of BChinaB and David Katz of ABC News. Mr. Haft, author of All the Tea in China: How to Buy, Sell and Make Money on the Mainland, detailed the challenges of sourcing supply in China from a first had perspective. Mr. Katz mixed science with common sense, to make an argument for a fmore sustainable dietary supplement future.


Executives from all the largest industry players were in attendance. Sponsors included Shaklee, Pharmavite, DSM, Perrigo, Kyowa Hakko, Venable, Nutrilite, Bayer, Covington & Burling, NSF, EuroFins, Miami Research Associates, SafetyCall and Cognis. CRN is virtually on par with the NBJ/Newport Summit when it comes to networking with heavy hitters in the nutrition industry.


Though the daily sessions were dense with information, the evenings were full of fun. “Casino Royale” night and the “CRN Ranch Round Up” encouraged everyone to let their hair down, and it’s hard not to chuckle when you’re trying to talk business with someone in three piece suit, cowboy hat and bandana.


For more information on next year’s event, go to www.crnusa.org