Nutrition Business Journal

The U.S. dietary supplement industry is bracing for another flood of negative media attention following today’s Senate Subcommittee hearing on the topic of sports supplements and steroids. Titled, “Body Building Products and Hidden Steroids: Enforcement Barriers,” the hearing by the Senate Judiciary Subcommittee on Crime and Drugs is expected to feature testimony that paints an extremely grim picture of a rogue sports supplement industry that is putting millions of people—including young and professional athletes—at risk.

Testifying before the Senate Subcommittee will be Michael Levy, director of the division of new drugs and labeling compliance at the U.S. Food and Drug Administration (FDA); Joseph Rannazzisi, deputy assistant administrator of the Office of Diversion Control at the Drug Enforcement Administration (DEA); Travis Tygart, CEO of the United States Anti-Doping Agency (USADA); Daniel Fabricant, interim executive director and CEO of the Natural Products Association (NPA); and Richard Kingman, a partner in the law firm Covington & Burling LLP.

Tygart, who is expected to call for new supplement legislation during today’s hearing, told the New York Daily News that greater consumer protection is needed in the area of sports supplements. “Consumers need to know that there are real people out there who are injured by steroids masquerading as legitimate supplements,” Tygart said. “People need to see what an unfortunate thing it is when someone takes a product that’s supposed to be helping them with their workouts and a few weeks after using the product they’re in the hospital.”

But, as Kingham told USA Today, the solution to the problem of steroid-tainted supplement does not lie in creating new legislation, the solution lies in the FDA fully enforcing the legislation that already exists. “This is a law enforcement issue,” said Kingham, who pointed to last week’s raid of supplement dealer Bodybuilding.com as an example of FDA’s enforcement power.

FDA has reportedly been investigating Bodybuilding.com since 2007. According to an FDA search warrant that was unsealed when the agency searched Bodybuilding.com’s Boise, Idaho-based headquarters on September 24, 23 of 31 supplements purchased over the last two years by FDA investigators from Bodybuilding.com contained anabolic steroids. Bodybuilding.com spokesperson Amanda Cheslock told USA Today that her company does not manufacture the products and is cooperating with the investigation.

Sen. Arlen Specter, a Pennsylvania Democrat, convened today’s hearing after becoming interested in the issue of steroid-spiked dietary supplements following the 50-game suspension of Philadelphia Phillies pitcher J.C. Romero for testing positive for the androstenedione. Romero blamed the supplement product 6-OXO Extreme for the traces of the banned substance found in his urine in August 2008. “We’re looking at whether there’s adequate protection for consumers from getting these supplements which have steroids or steroid-like substances,” Specter told the Associated Press. “These tainted products can cause life-threatening injuries, such as kidney failure and liver injury.”

The products being targeted by Congress represent a fraction of the sports supplement market, which itself is a small piece of the overall $25 billion dietary supplement market. Still, the entire dietary supplement industry is expected to be affected by today’s hearing. While many in the industry are rightly nervous about the fallout and ramifactions following the hearing, others see a potential silver lining to Congress’s actions. As NPA’s Fabricant told USA Today, the end result could ultimately benefit responsible industry. “We’re glad the Congress is looking into this, because anything we can do to separate the legal, safe and healthy dietary supplement industry from the seedy, fly-by-night and unsafe world of illegal steroids is worthwhile,” Fabricant said.

Nutrition Business Journal’s September issue is devoted to the $20.8 billion U.S. sports nutrition & weight-loss market and explores the sales impact recent negative news could have on this sector of the U.S. nutrition industry. To order a copy of the issue, subscribe to NBJ or download a free 32-page sample issue go to NBJ’s subscription page. NBJ will also host a Web seminar on the U.S. sports nutrition & weight-loss industry on October 27, 2009. Learn more or register for the Webinar via the NBJ Website.

Related NBJ articles:

SNWL Sales Suffer Blow from Recession and Flurry of Negative News Events

Elite Athletes Eschew Dietary Supplements Over Fears of Contamination

NSF, HFL and Others Help Firms Prove Their Sports Products Are Safe for Athletes

NBJ’s 2009 Sports Nutrition & Weight-Loss Web Seminar

The Internet was once again the fastest-growing sales channel within the U.S. nutrition industry in 2008, expanding 22% to $1.4 billion last year, according to Nutrition Business Journal estimates. But, unfortunately, throwing time, dollars and other resources at a company’s online marketing and sales initiatives won’t guarantee sales success. In fact, without the right strategies, tactics and mindset, companies can actually lose money in their efforts to harness the Web as a sales and marketing vehicle. This reality seemed well understood by the 50-some nutrition industry executives who gathered today for the NBJ Summit Extension: Internet Marketing & Sales seminar at the 2009 Natural Products Expo East in Boston.

The paid session—which featured Paul Hannam, founder of Bright Green Leadership; Roy Bingham, head of e-commerce at RenewLife Formulas; Devin Ryerson, founder and CEO of PurePrescriptions.com; NBJ Publisher and Editorial Director Patrick Rea; and NBJ Co-founder Tom Aarts—was designed to help CEOs and other top executives learn from the best Internet marketing and sales practices that are currently emerging inside and outside of the nutrition industry.

A long list of actionable advice materialized from the two-hour session, including these highlights:

Be willing to fail: In today’s lightening fast online world, successful Internet marketing and sales requires an action-oriented mindset and willingness to experiment, Hannam said. If a company wants to get it right, it must be willing to get it wrong, he added. “You have to be constantly learning from your mistakes.”

Content remains royalty: Yes, content is still king, in part, because great content is the fastest, most-consistent way to obtain top listings placement within Google and other search engines. Content can build brands, but the goal is to become a trusted thought leader around a problem or issue—such as joint pain or healthy aging—rather than only a product or brand, Hannam noted. Blogs and social networks, including Facebook and Twitter, can help establish a company’s position and credibility around a chosen problem or issue.

Design Websites with users in mind: Consumers have very short attention spans, and they expect certain things when they arrive at a Website, such as a company or Website logo in the upper left corner and an internal search engine in the upper right corner, Ryerson said. They also first use Website navigation to browse for what they are looking for before turning to search and get frustrated when the checkout button isn’t immediately findable. Spend time evaluating well-designed e-commerce and information sites to better understand what works and why, he added.

Videos communicate authenticity: Rather than adorning a Website landing page with a pretty but irrelevant photo or other graphic, consider adding a short video from the company’s CEO or another trust-worthy individual to welcome users to your site and explain what you hope they will accomplish there, Hannam suggested. Videos, he said, build credibility and trust and are proving more powerful than static images. “Be informal in your video messages, as this helps boost authenticity,” Hannam added.

Be persistent: Most people don’t buy until after their sixth contact with a company, so don’t despair or give up if a new e-mail marketing list proves less than fruitful at first, Hannam noted. Use each communication to build relationships, offer people something of value—such as useful information or a purchasing offer—and make someone in your organization accountable for protecting your e-mail marketing lists from being over-used or abused.

Don’t break the rules just to make a buck: Dietary supplement companies that market and sell their products online with no regard to the Dietary Supplement Health and Education Act (DSHEA) might, in some cases, be able to make boatloads of money by duping consumers with illegal cancer cures or fraudulent offers, but they do so at the risk of the entire supplement market, Bingham said. “These companies are trashing our industry,” he said. Remaining DSHEA-compliant with all online marketing content—including meta search tags and online consumer reviews—is increasingly important to staying out of trouble with the FDA and FTC, Bingham and Ryerson noted.

A video replay of The NBJ Summit Extension: Internet Marketing & Sales session will be available for purchase via the NBJ Website for those wanting more advice and insights from this panel of experts.

Related NBJ links:

E-commerce Is Now a Must for Nutrition Firms

E-marketing: A Recession Essential for Every Company

Good Search Engine Marketing Key to Selling Supplements Online

Tips for Evaluating an E-marketing Campaign in the Nutrition Industry

The 2009 Natural Products Expo East starts tomorrow, September 23, in Boston, and Nutrition Business Journal is hosting two educational events at this year’s show.

The NBJ Summit Extension: Internet Sales & Marketing

8 a.m.-10 a.m., Thursday, September 24, in room 254A

Every nutrition industry company knows it must harness the Internet to position, promote and, in many cases, sell its products, but not many companies know how to turn this idea into reality and effectively use the Web to maximize revenues and profits. In fact, best practices in Web marketing and e-commerce for dietary supplement, natural & organic and other nutrition-related companies are only now just emerging. NBJ will explore these best practices during the 2009 NBJ Summit Extension: Internet Marketing & Sales seminar, which will be held from 8 a.m. to 10 a.m. Eastern time on Thursday, September 24, in room 254A of the Boston Convention & Exhibition Center.

As the name implies, this seminar will serve as an extension of the content presented during the 2009 NBJ Summit, which featured a panel titled Successfully Navigating the New Online Media World. Feedback on this session from the more than 300 CEOs and other nutrition industry executives in attendance at the 2009 NBJ Summit was so positive that NBJ decided to offer a similar session for those who could not attend the Summit.

Five nutrition industry and Internet marketing and sales leaders will present during the NBJ Summit Extension: Paul Hanamm, founder of Bright Green Marketing; Roy Bingham, head of e-commerce at RenewLife Formulas; Devin Ryerson, founder and CEO of PurePrescriptions.com; Patrick Rea, NBJ publisher and editorial director; and Tom Aarts, NBJ co-founder and editorial advisory board chairman. Among the questions they will answer are:

• How can the Web be used to complement and strengthen your existing sales and marketing programs?

• What resources are required to grow your online sales?

• Should you outsource online sales and marketing or build these capabilities in-house?

• How do you protect and grow your brand equity online?

• Where should you direct your investment in the social media space?

• What are the rules of engagement with online consumers?

• When is the best time to invest in online sales and marketing?

• What resources exist that can help you get up to speed?

• How can you best track your online sales and marketing investments, and what ROI should you expect?

Session attendees will also receive a review of their company’s online marketing and sales strategies and tactics. Cost of the session is $295 per attendee. Space is filling up, so register today.

If your nutrition industry company is not already, now is the time to get serious about Internet marketing and sales. According to NBJ estimates, the Internet was once again the fastest-growing sales channel within the U.S. nutrition industry in 2008. Total U.S. nutrition industry sales via the Web grew 22% to $1.4 billion last year, adding approximately $250 million in new sales.

Gluten and Other Allergies 101: Everything You Need to Know

10:45 a.m. – 12:15 p.m., Friday, September 25, in room 252A

NBJ Editor Carlotta Mast will moderate an education panel focused on one of the fastest-growing product categories in the U.S. nutrition industry: gluten- and allergy-free foods and beverages. The session—which will be held from 10:45 a.m. to 12:15 p.m. on Friday, September 25, in room 252A of the Boston Convention & Exhibition Center—will cover every aspect of the gluten- and allergy-free foods spectrum: from finished product manufacturer to distributor to retailer to consumer.

Experts presenting during the session and available to answer questions are:

MaryJo Marks, UNFI’S natural and organic category specialist: MaryJo Marks brings 28 years of retail experience to her seminars. Before joining UNFI, MaryJo’s career included a variety of positions in both natural & specialty product stores. She has worked in both large and small stores and has been involved in store management, new store openings, purchasing, merchandising, staff education and training and many other aspects of retailing.

Ronnie Alicea, RD: Ronni Alicea is a Registered Dietitian specializing in food allergies, food intolerances and celiac disease. She has a private practice, consults for gluten-free/allergen free food companies and provides clinical services to health care facilities. She writes and speaks nationally on managing specialty diets and how to prepare foods properly. Most recent articles in professional and consumer media address residential care facilities and gluten-free diets.

Scott Mandell, president and founder of Enjoy Life Foods: As the founder of Enjoy Life, Scott Mandell has become one of the most experienced entrepreneurs in the allergy-friendly / gluten-free food industry. By creating innovative and functional ways to serve food-sensitive consumers, Mr. Mandell has become a thought-leader in the allergy-friendly and gluten-free markets. He is a fixture on allergy-friendly and gluten-free expert panels, and as a keynote speaker has been able to take an informational / educational perspective, while introducing the Enjoy Life™ brand to consumers and the industry. Mr. Mandell serves on the following outside boards: the Gluten Free Certification Organization, the American Celiac Disease Alliance, and Tula Foods Inc.

Susan Welsh, grocery buyer and category manager for Sprouts Farmers Market: Susan Welsh has been in the food industry for most of her life. She graduated Summa Cum Laude from Arizona State University with a degree in Agribusiness and a minor in Organic Food Manufacturing. Her experiences after college included owning a small natural foods market in Cave Creek, Arizona, working at Whole Foods Market in Tempe, Arizona as a Grocery Team Leader and then working as a sales rep for The Hain Celestial Group, covering the Arizona and Utah markets. Currently, Susan is the Grocery Buyer and Category Manager for Sprouts Farmers Market. She has been in her position for four years and sincerely enjoys the fast pace and growth that Sprouts has been experiencing for the last two years. Susan is married and has a 20 year old son who goes to school at UCDavis in Northern California.

What else can you expect to find at the 2009 Natural Products Expo East? More than 1,000 exhibiting companies occupying 1,500 booths and a plethora of educational and networking events. NBJ hopes to see you at the 2009 Natural Products Expo East.

Related NBJ articles:

E-marketing: A Recession Essential for Every Company

E-commerce Is Now a Must for Nutrition Firms

Gluten-Free Foods Continue Reign as Fastest-Growing U.S. Grocery Category

After attending the 20th annual SANA healthy living conference in Bologna, Italy, it is clear that my insatiable desire to eat world-famous Italian foods is matched by the country’s desire to bring them to me. The show featured exhibitors from across Italy who were eager to strengthen the Italian export market with their natural, organic and healthy food offerings. More than 100 international buyers were brought in by the Italian Trade Commission, along with FederBio—the country’s organic unitary body—to get a taste of the dynamic and emerging healthy foods market in Italy. I was able to meet with more than 15 companies and came away feeling that the market is largely untapped by U.S. importers and distributors, which means plenty of opportunities exist for successful partnerships. As one well-known U.S. natural retailer told me of her meetings with Italian producers, the companies she spoke with largely have great products that can compete in the U.S. food market but lack the appropriate partners in the United States to manage distribution and marketing effectively.

Many parallels exist between the U.S. healthy foods market and the comparable Italian market—it, too, is growing at a healthy rate, though it has also been slowed by the global economic recession. Double-digit organic food sales growth in 2008 has been replaced by expansion of 7% to 9% through the first six months of 2009, according to Robert Pinton of Green Planet, a non-profit organization that promotes sustainable business globally. Still, organic food sales in Italy are outpacing conventional food sales and make up about 3% of the overall Italian food market. In the U.S. market, organic foods and beverages also constitute about 3% of the overall food market, according to NBJ estimates.

I plan on detailing my visit more extensively in the coming weeks and talking more specifically about some of the trends I encountered, such as an emerging yeast-free category that seemed to come up often. Nutrition Business Journal will also publish a Global Nutrition Industry market analysis issue in December that will quantify the healthy foods markets in Europe so that subscribers can more easily identify specific areas of opportunity. In the meantime, please feel free to leave a comment or drop me an e-mail with questions you may have about the European markets so that we can tailor our issue to suit your company’s needs.

Related NBJ Links:

2008 Healthy Foods European Summit heralds Davos-style debates

Tapping into the $170 Billion Muslim-American Market with Halal Certification

New Opportunities & Insights into the U.S. Healthy Foods Market PowerPoint Presentation

NBJ’s Healthy Foods Report 2007

Related Natural Foods Merchandiser Magazine Links:

Italy: the new face of Old World organics

The September 13, 2009, issue of The New York Times Magazine featured a story about Naked Pizza, the New Orleans-based “better for you” pizza chain Nutrition Business Journal wrote about last year. Along with using whole grains for its crusts and eschewing all additives, preservatives, colorants and “weird chemicals or molecules of any kind,” Naked Pizza adds probiotics and prebiotics to its pizza crust flour—which is why we included the company in our 2008 article about functional foods and beverages fortified with “healthy bugs.”

The company’s founder, Jeff Leach, is an evolutionary anthropologist who has studied the way ancestral diets have changed over time. Because our ancestors used to consume many more prebiotics and probiotics through their diets than we do today, Leach told NBJ that he doesn’t think of them as some revolutionary new concept. “All we are doing is introducing something that we basically took away,” he said. Naked Pizza uses Ganeden Biotech’s patented GanedenBC30 (Bacillus coagulans) probiotic strain, whose heartiness endears it to manufacturers of products processed with high temperatures, such as pizza.

As the New York Times noted, consumers are buying into the Naked Pizza model, and the company has big expansion plans as a result. Earlier this year, the serial entrepreneur Mark Cuban landed the territorial rights for Naked Pizza franchises in Texas. Now the company is considering another deal with a privately owned holding company to launch up to 1,000 Naked Pizza franchises throughout the United States, Leach told the New York Times. My hope is that these probiotic-packed, healthier pizza pies make their way to Boulder, Colorado, where NBJ and my pizza-loving children are based.

NBJ will provide an update on the probiotic/prebiotic functional food and beverage market in our 2010 Functional Food and Beverage issue, which publishes in February 2010. If your company offers or is planning to roll out a new functional food or beverage you want NBJ to know about, e-mail cmast@nutritionbusiness.com.

As always, to subscribe to NBJ or download a free 32-page sample issue, go to the subscriber page on the NBJ Website.

Related NBJ links:

Probiotic and Prebiotic Foods and Beverages Take Root in the U.S. Once and For All

Probi Introduces Its Proprietary Probiotics to the U.S. Market

As Digestive Problems Bloom, So Do Sales of Probiotics And Other Gut Supplements

23 U.S. Functional Food Subcategories: 1997-2017e - Chart 59

Related Functional Ingredients Magazine links:

Probiotics technology opens up FRO-YO markets for Ganeden and Danisco