If you are a subscriber to Nutrition Business Journal, you can now access all of the 2008 Nutrition Industry Overview online at nutritionbusinessjournal.com. No need to sort through your over flowing mailbox, search your desk and interrogate your co-workers for your copy of NBJ. Just go to nutritionbusinessjournal.com.

To see all the articles, go to the current issue page. Here you will see the entire overview issue laid out in an expanded table of contents view. From here you can link to every article if you are signed in as an NBJ subscriber.

If you do not know your NBJ subscriber username and password, call Rachel Dederich, NBJ’s Subscriber Services Coordinator, at 303.998.9263.

-Patrick

Last week, I attended The 2nd Annual Organic Summit at the St. Julien Hotel in Boulder, Colorado. It was quite and event and garnered a fair amount of media attention from public radio and Grist.org. But the event wasn’t about hype, it was about the issues facing the organic industry today.

Interestingly, this year’s organic summit seemed to be more about the groundbreaking newcomers in today’s organic industry as opposed to yesterdays enormously successful leaders. Daria Myers of Orgins Organics spoke about her company’s organic personal care line and a number of “organic groundbreakers” including Brahm Ahmadi of People’s Grocery and Patrice Gros of Foundation Farm & Farming School also spoke.

Breakout sessions on Thursday allowed attendees to hop in and out of discussions of social investing, nanotechnology, fair trade and organic research, to name a few.

The highlight for me, however, was the closing keynote: Maintaining the Integrity of an Organic Brand when Coa-Cola Calls. Seth Goldman, President and Co-Founder of Honest Tea and Michael Ohmstede, SVP of Business Development for Venturing & Emerging Brands of Coca-Cola together told the story of Honest Tea and the acquisition of 40% of its equity by Coca-Cola.

Though in my opinion, Seth and Michael are still on their “honeymoon”, the principles of the deal seem to make sense. Fortunately, Seth is mentored by Gary Hirshberg, the founder of Stonyfield Farm, who’s deal to sell part of Stonyfield Farm to Dannon - 40% ownership with control of the board staying in the hands of the founders for a period of time and a buyout tentatively planned for the future was the model for Honest Tea. Coke made a smart move and with their prior experience deep-sixing Mad River Traders beverages fresh in their minds, Ohmstede sounded like he’s approaching this deal with more respect of the Goldman’s wishes. Buying in when Honest Tea’s sales were only $27 million was a smart move too. Honest Tea is in dire need of distribution and Coke certainly gives them that. Honest Tea’s sales are projected to be $40 million by the end of 2008, so something is working already.

This is Jylle Lardaro, co-chair of The Organic Summit and New Hope Natural Media’s Director of Organic Industry Alliances. She reflects on what was presented and talked about at The Organic Summit.

This is Erica Stone, the conference director of The Organic Summit (and Natural Products Expo East). She talks about the attendees and the locations…as well as where The Organic Summit will be held in 2009.

For more information from NBJ on the Organic Markets, make sure you check out NBJ’s “Natural & Organic Foods” channel where all our natural & organic foods and beverages research is aggregated.

-Patrick

You may or may not know that New Hope (NBJ’s parent company) and Supermarket News launched a trade show June 18-19, 2008 called Healthy Foods International Expo.

As part of the education program, Nutrition Business Journal presented on the findings of a series of surveys of consumers, conventional retailers and conventional food manufacturers regarding their beliefs about healthy foods. The presentation was entitled New Insights into the Motivations, Attitudes and Behaviors of U.S. Grocery Consumers.

The presentation drew over 100 attendees and two breakouts on retailers and manufacturers were well attended as well. No matter how much credit we give them, conventional retailers and manufacturers of healthy foods still don’t completely get it. They have alot to learn, which made it all the more important that we were there to impart some of our industry knowledge to them over two days.

The show, though a launch, was perfectly produced and went off without a hitch (at least from my perspective). Attendance was a bit sparse, but understandably so in this economy, setting the stage for growth down the road. Approximately 100 exhibitors presented their latest healthy foods offerings to conventional retailer buyers and executives who pounded the floor.

While in the Dallas Convention Center, I took a few videos to show you what the show really looked like. Please excuse the fogginess of the video - my camera didn’t handle the humid climate so well.

This video is of the rush to get on the show floor when it opened Wednesday at 12 noon so you can get an idea of what the show looked like.

This video is of the crowd gathered to hear Samuel Fromartz, author of Organic, Inc.: Natural Foods and How They Grew, give the keynote address Wednesday evening after the show floor closed

This video is from celebrity& author Devin Alexander

To learn more about NBJ’s research on the healthy foods market, go to NBJ’s Healthy, Lesser-Evil and Functional Foods channel, where all of NBJ’s information on these categories is aggregated.

Enjoy.

-Patrick

Another one bites the dust! Yes, another independent (and successful) natural foods brand is acquired by a multinational food conglomerate. General Mills announced it would acquire Humm Foods, maker of Larabar and Larabar Jocalat. The Larabar brands will become part of the Small Planet Foods division of General Mills, which also manages the Cascadian Farm and Muir Glen brands.

Terms of the deal were not disclosed, but NBJ estimates Larabar’s 2006 wholesale sales at $20 million. Click here for more NBJ figures on top nutrition brand sales.

It was reported that Lara Merriken, the founder of Larabar will continue on with General Mills as the brand champion, and no timeline was set for this arrangement. Recent history will show that founders of natural food companies who sell their brands to multinational food companies have a very difficult time staying on as brand champions post acquisition.

Steve Demos, founder of White Wave, threw up his hands under the thumb of Dean Foods.

Mark Retzloff, co-founder of Horizon Organic, moved on to launch a competitor - Aurora Organic Dairy.

Gary Hirschberg, founder of Stonyfield Farm, continues the struggle at Dannon.

Gary Erikson, founder of Clif Bar, left the table when negotiating the sale of his company to a multinational food company at the 11th hour because he worried about what would happen to ‘his’ company post-sale.

Lara virtually created the “raw bar” market with the launch of Larabar. She capitalized early on the growing trend of food simplicity. This simplicity trend is directly related to the rise of organic foods and it’s a trend we’re also seeing in the natural & organic personal care space. From within General Mills, Lara will have many opportunities to launch new “raw” products as extensions to Larabar…Larajuice…Larababy…but must tread wisely on the reputation of her brand.

Certainly the distribution power of General Mills will do much to help Larabar’s expansion into the food, drug, mass merchandiser, convenience and club store channels, but it would be in her best interest to pay close attention to how the natural retail community reacts to this deal. Their displeasure with Larabar for “selling out” could result in a divorce from the brand, and undermine its growth prospects in the natural channel.

Only time will tell, but if the passions of the natural retailer channel can be successfully managed and Larabar can capitalize on the distribution reach of General Mills while launching smart brand extensions, this Larabar-General Mills deal might be a great acquisition by General Mills.

About Small Planet Foods:

Small Planet Foods is the natural and organic products group within General Mills. With its Cascadian Farm and Muir Glen brands, Small Planet Foods holds the No. 1 or No. 2 position in 14 major organic categories in the United States.

About General Mills:

General Mills is a leading global manufacturer and marketer of consumer food products based in Minneapolis, Minnesota. General Mills’ mission is Nourishing Lives - innovating to make lives healthier, easier and richer. Its global brand portfolio includes Cheerios, Betty Crocker, Pillsbury, Green Giant, Häagen-Dazs, Nature Valley, Old El Paso, Cascadian Farm, Muir Glen, and more. General Mills is also a leading supplier of baking and other products to the foodservice and commercial baking industries. With more than 100 consumer brands and operations in more than 100 countries, General Mills had annual net sales of $12.4 billion in fiscal 2007.

I would like to introduce you to the new website for Nutrition Business Journal - www.nutritionbusinessjournal.com.

Alot has changed in the world of web design since we first launched NBJ’s website in 1998, so you will notice MANY changes in the look, feel and efficiency of the new nutritionbusinessjournal.com.

NBJ’s mission has always been to deliver strategic business information, analysis and market data to those in or interested in the nutrition industry to fuel better business decisions and promote healthier lifestyles. The new nutritionbusinessjournal.com is our new way of delivering on this mission.

I welcome your feedback and suggestions, via this blog or via my email prea@nutritionbusiness.com

Enjoy!

-Patrick