Natural Products Asia Resource by Penton Media Asia Ltd.

Natural Products Asia Resource Your natural, organic, health and nutrition industry newsletter

Natural Products Asia Resource is an informative newsletter reaching over 50,000 professionals around the world in the nutraceutical, nutritional, dietary supplement, cosmetic, wellness and food industries, published by Natural Products Expo Asia.

Market Research

Mintel Predicts Global Beauty Trends

For 2010

Information provided by Mintel International “Austerity chic” ruled the beauty industry in 2009, but as we move on from this challenging year, Mintel Beauty Innovation forecasts the top beauty trends for 2010. Though manufacturer and consumer attitudes were changed by the recession, innovation and resilience have shaped a new landscape for beauty in 2010. Nica Lewis, director of Mintel Beauty Innovation says: “While 2009 brought its challenges for the industry, beauty brands and suppliers have continued to seek creative new ways to merge science, nature and sustainability for better results and more eco-friendly formulas and packaging. In 2010, we will see more consolidation in the beauty industry and the evolution of

old trends, as well as new ones, as consumer confidence returns.”

1. MOOD BEAUTY

Make-up has long been associated with making the wearer feel better, but recent product evolution has seen actual ingredients enabling this. In 2010, consumers will be able to enhance their mood through make-up and skincare, going beyond aromatherapy and simple use of scent. “Mood Beauty” creates a new beauty space, intersecting psychology and wellbeing with beauty products that offer psychological benefits and ingredients that act on people’s neurotransmitters. Expect manufacturers to make use of textures, temperatures or sounds

that affect the mood, as well as innovations like make-up that “switches on and off.” Meanwhile, the idea of beauty sleep will take on new meaning, as cosmetics claiming to induce positive moods or improve sleep quality inject new life into night care products.

2. PRO-TECH’T

Throughout 2009, there was a renewed emphasis on protection, one of the basic functions of skincare, hair care and color cosmetics. Beauty products offered increasingly powerful shields against not just UV rays, but also physiological and man-made factors.

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Market Research

In 2010, “Pro-Tech’t” will strengthen this shield. Marketing language is already growing more robust, borrowing from computer technology (e.g. “firewalls”). Packaging, too, will expand beyond traditional glass and plastic to materials like neoprene and concrete. In addition, Mintel Beauty Innovation expects growth in immune-boosting and skin-defending claims, as well as new products that contain ingredients from extreme environments such as the Arctic, Alpine or Desert. Expect more healthcare actives like rhodiola rosea, griffonia and superoxide dismutase to appear in 2010’s beauty products, forging a stronger link with nutricosmetics.

3. TURBO BEAUTY 4G

Developing 2009’s “Turbo Beauty”’ trend, “Turbo Beauty 4G” continues to capitalize on advances in biochemistry for higher-tech beauty products. Expect more quasi-medical results and “mix-it-yourself” solutions: at-home kits and cures that offer alternatives to cosmetic surgery and non-invasive procedures. In 2010, products will increasingly include medical- or pharmaceuticalgrade actives and next-generation nanotechnology. In addition, clinical testing to substantiate claims and results will move from prestige into “masstige” (affordable for general consumers but positioned as luxury). Following the explosion of social media, Mintel also expects beauty manufacturers to start marketing anti-aging products in particular to “digital natives.”

4. NU NATURAL

“Nu Natural” is a new vision of natural that is less focused on certification and more focused on results, efficiency and safety. In 2010, beauty products will evolve from today’s trend towards organic ingredients, revisiting attributes like authenticity, provenance and local production. Mintel Beauty Innovation expects claims like “free from” and “sustainable” to appear in products that simultaneously contain synthetic actives like peptides, hyaluronic acid, ceramides or collagen. Beauty manufacturers will further explore simple formulas, such as infusions and fluids, but they’ll formulate them with a new generation of phytochemicals, anthocyanins and fermented actives.

An in-depth look at NU NATURAL around the globe

The New Zealand-based Snowberry range is now available in France. The range is formulated by a doctor and biochemist without lauryl sulphates, petrochemicals, propylene or butylene glycols, volatile alcohols, artificial colours, silicones, DEA or MEA ingredients, or animal products (except for honey, silk and cultured pearl and coral). The Cellular Intensive Renewal Face Serum (€196) also contains human oligopeptide-20, acetyl pentapeptide-3 and dipeptide diaminobutyroyl benzylamide diacetate. The BioNatria delivery system is said to emulate ‘transdermal Botox’. This anti-ageing product is targeted to women 35+ and claims “visible results expected within 28 days.”

Italian naturaceutical brand Bakel introduced a new line made up exclusively of fluids - not emulsions – that contain no water. The brand interprets natural as “zero useless substances and 100% actives”; it claims to “eliminate the superfluous and increase potential of active ingredients.” The P-Lipic Serum Four Revitalizing Formula serum contains only four ingredients (aloe barbadensis gel, glycerin, panthenol, ubiquinone). In China, Nu Natural closely links safety and natural claims. Herborist Whitening Essence (CNY380 / €39) has repackaged its whitening ‘cure’ with Traditional Chinese Medicinal herbs. It features a “fresh-lock” package for safety and convenience. The individually wrapped powder and liquid forms are mixed prior to use. The kit is available from Herborist spas and selected department stores. US brand Själ embodies Nu Natural with its blending of traditional medicine, biotechnology, energy science and quantum physics. The new Kashmir Saphir Perfecting Mask ($150) contains Chinese herbs, silk proteins, blue lotus, copper peptide, tissue salts, nano-minerals (including gold, silver and platinum) and GABA amino acid. It is free of “temporary lifts or fillers, such as petroleum jelly, mineral oil, silicone or caffeine.”

Mintel is an independent award-winning provider of world-leading market intelligence, delivering robust information, analysis and critical recommendations. Mintel’s trusted portfolio of proprietary industry solutions and products has been supporting high profile clients in key sectors such as FMCG, financial services, media, retail, leisure and education for over 38 years. With office locations in London, Chicago, New York, Shanghai, Tokyo and Sydney our global presence continues to grow. www.mintel.com

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Legislative Issues

Hong Kong Regulatory Overview for Health Supplements Written by Daniel Tsi and Wai-Mun Poon, EAS Strategic Advice Pte Ltd Source: NPIcenter Asia

and which carry claims that are stated in the recognized traditional Chinese medicine text, shall be regulated as proprietary Chinese medicines under the Chinese Medicine Ordinance. Health supplements that fall under these 2 categories must be registered with the Department of Health for premarket approval. Product that contains other bioactive ingredients such as fish oils, coenzyme Q10 and herbal ingredients may be classified as food. However, if the product carries claims that are linked to the diagnosis, treatment, mitigation or prevention of a specific disease or disease symptoms, a health supplement will be categorised as a pharmaceutical product. Such claims usually make reference to a certain disease or disease symptom, examples are: Hong Kong is one of the vibrant markets for health supplement products in Asia. There is an increasing trend among consumers to take various kinds of health supplements for good health and well-being. The most popular supplements are vitamin-based although products containing herbs and other ingredients are growing. When planning to import, or manufacture, and market health supplements in Hong Kong, a company should have basic clarity on the regulatory requirements. A health supplement, depending on the dosage form, product composition and usage claims, may be regulated as pharmaceutical products, proprietary Chinese medicines, or prepackaged foods. Health supplements in pharmaceutical dosage forms (tablets, capsules, syrup), containing vitamins, minerals, and other ingredients such as glucosamine, fish liver oils and digestive enzyme such as lipase, amylase and cellulase are classified as pharmaceutical products. Products containing herbal ingredients commonly used in Chinese medicine

• soothes sore throats • this product may lower blood sugar • can alleviate pimples • prevents osteoporosis • relieves constipation Under the Undesirable Medical Advertisement Ordinance (UMAO), high risk claims are prohibited. Examples of prohibited claims are those related to the prevention, elimination or treatment of breast lumps, and the regulation of the endocrine system. Certain claims related to maintaining normal or healthy blood sugar or blood pressure or cholesterol levels may be used subject to conditions stipulated in the Ordinance. It should be noted that Dr. Daniel Tsi is the Regional Director of EAS Strategic Advice. He served as a scientific expert on ASEAN Technical Scientific Committee of Traditional Medicine and Health Supplement (ASEAN TMHS), working on the harmonization of regulatory claim guidelines for health supplements and traditional medicine.

health supplements with such claims have to be registered as pharmaceutical products or proprietary Chinese medicines. In term of the maximum and minimum daily levels of vitamins and minerals permitted, there is no official limit but the levels incorporated into health supplement have to be supported by safety evidence. The usage of other bioactive ingredients such as fish oil, bee pollen and herbs/ botanicals are allowed in principle, provided there is a good safety record for the ingredients. Companies interested in the Hong Kong market should note that proper documentation is required when registering health supplement products. The safety, quality and efficacy aspects should be supported by main documents such as free sales certificate, certificate of analysis and test methods, manufacturer’s GMP certificate and stability study reports. EAS has released a unique and easy-tofollow guide to help companies build successful regulatory strategies to enter Asian region’s nutritional product market. The guide, titled ‘Marketing Health Supplements, Fortified & Functional Foods in Asia: Legislation & Practice’, covers national and regional rules for health supplements, including rules for ingredients (vitamins and minerals, herbs and other functional ingredients), claims and regulatory procedures for product marketing. Visit www.eas.asia for more information. Wai Mun Poon specializes in regulatory affairs for health supplements in a regional capacityShe manages the Secretariat of ASEAN Technical Scientific Committee for Traditional Medicine and Health Supplements.

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Business Insights

Achieving Market

Success in Asia

Written by Mrs. Valerie Bell, Bell Alliances International Inc Whatâ&#x20AC;&#x2122;s your Asian strategy? Today, every natural company needs one. Whether that means sourcing or manufacturing there; exporting from your home base into one of the many enormous potential markets in Asia; investing directly in Asian firms; selling an interest in your firm to an Asian partner; or simply learning how to compete with Asian companies and their goods as they enter your home market.

Valerie Bell is the President of Bell Alliances International Inc., (www.alliancesinternational.com) a company that specializes in building alliances, joint ventures and business partnerships between Asian and North American companies in the natural products industry. She brings a wealth of unique insights and experiences from living and working in both Asia and North America and has led many products to #1 market positions internationally

Many companies however make significant and costly mistakes in some instances be virtually impossible to recover from later. To achieve market success in Asia, keep the following tips from leading Asian marketing consultants in mind:

For many supplement firms, exporting is likely to the first international strategy that comes to mind. Meeting and beating innovative competitors abroad can assist companies to maintain the competitive edge you need to dominate your own domestic markets, assist you to test or innovate or market new products and new marketing techniques, identify new ingredients, and hone your competitive skills.

Start by developing a preliminary master international marketing plan and utilize qualified export counseling before you begin. The plan should clearly define goals, objectives, potential costs, problems and risks that you are likely to encounter. Be prepared to revise this plan many times while doing the due diligence necessary before putting your plan finally into action. Distribution, logistics and human resources can be much greater challenges in Asia than they are at home and sales, marketing and distribution costs are also higher than you likely anticipate.

There are however also real costs â&#x20AC;&#x201C; time, money, opportunity, etc. as well as considerable risks associated with exporting. It is up to each company to weigh their necessary commitment against the potential benefit for their firm before proceeding, keeping in mind that the rewards of succeeding in Asia can be substantial.

Be committed. Not only do you need to secure a commitment from top management to a long-term view of your export program but you also need a commitment to overcome the initial difficulties and financial requirements of exporting that you will encounter. Early delays and costs involved in implementing your export plan may seem

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Business Insights

your due diligence tells you otherwise. Local safety, security codes and import restrictions can also not be ignored by foreign distributors and must be addressed as early as possible in the exporting process. Research your concept and marketing claims thoroughly prior to registration as you may not be able to change them later. The rewards may also be unexpected. many firms find that in entering Asian markets, that they innovate exciting new products that can be enormously successful in their home markets.

difficult to justify in the short term in comparison with established domestic sales, but exporting can offer your firm substantial benefits in the future. You also need to plan for and be willing to make the sacrifices necessary to do regular travel, take after hours telephone calls and be patient with the other disturbances that the time difference with Asia will create. Travel is essential to building trust, developing personal relationships and clearing up misunderstandings with your Asian partners. Ensure your due diligence is thorough. Everyday your firm likely receives emails from companies you don’t know in Asia. Are they big, small, good partners, bad? Don’t make the mistake of leaping at the first offer. Thousands of opportunities present themselves daily in Asia. You key challenge will be to pick the right opportunity at the right time for your business. Mitigate Risk. Risks are also much more plentiful, different and much more costly and harder to recify in Asia than in your home market. Learn how to mitigate risks before you begin. Register your trademarks before you make your first trip and investigate what is the best strategy to protect your patents in each country you are interested in entering. It is critical that you take as much time as you need at the beginning to ensure that your due diligence

is as thorough as possible rather than start out with what will end up being the wrong strategy, partner, products or marketing plan. Trying to recover from those later – if you can at all can be costly if not virtually impossible. For example, in many parts of Asia there are few distributors. Select the right distributor the first time as other distributors will not take on new partnerships with you later if your first relationship fails or you introduce the wrong products. Research is critical to literally every phase of your success. Don’t assume that because one strategy, product or marketing technique works at home or in one country in Asia that it is the right one to use in every country there. Ignore local regulations at your peril. Be willing to modify products to meet regulations or cultural preferences that you find in Asia. The penalties for non compliance can be extreme too and registration requirements are generally very stringent and much more costly than North America or Europe. Most western products will require extensive reformulation for literally every country because some countries will accept supplements as foods and others as drugs. Some allow marketing claims and others don’t. It is best to initially assume that you have to create a new product line for every country and be pleasantly surprised if

Study the competition. Identify your key product difference versus local competitors and then capitalize on it. Invest in marketing that is culturally relevant. State of the art manufacturing technology, cheap labour, and higher regulatory fees, branding, marketing and distribution costs may mean that your imported products simply can’t compete in Asia. You may, as a result, have to make significant changes to your export plans. Be prepared to invest more than you would at home to be as or more successful. Building brands at home and abroad takes time. Be patient. Adapt. Learn to understand key differences in local business culture, consumer attitudes and purchasing behaviors. Although a distributor’s top management may speak English, it is extremely doubtful that all of his staff or any of your consumers will have this same capability. Print all advertising, product descriptions, and marketing messages in locally understood languages and utilize marketing messages that are as locally and culturally relevant as possible. Understand how these differences can also greatly impact other areas of your business including overseas communications and transportation, forcing distributors, consumers and others to all act very differently than their domestic counterparts. You may also have to create special websites for your Asian business and add domestic staff that understands the languages of the countries you export into.

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Quality Control

Valueof

Written by Mr. Mike Swenson, BI Nutraceuticals

Quality

In the 15 years I have been working at BI Nutraceuticals, the leading provider of raw materials to the dietary supplement industry, I have been consistently involved with the value of quality to the organizations for who I have worked. As a machine operator, I learned the value of a HAACP program; as a supervisor I spent countless hours being grilled by internal and external auditors; as a manager I looked on in envy at the new testing equipment afforded the quality department. While I always had a deep respect for the level of diligence and perseverance my colleagues in the quality field displayed, as a GM of an entire operation, the true quality and the culture that drives it is a powerful tool for the health and growth of business.

Chinese milk products tainted with toxic levels of melamine (done illegally to create false levels of protein) resulted in several deaths (including two of the perpetrators), billions in financial losses, collapse of several companies and the worldwide tarnishing of an entire nation’s product quality.

There are many well known cases of just how damaging inadequate quality control in the ingredient value chain can be. In Australia from 1996 to 2003 Pan Laboratories, at the time the largest manufacturer of OTC medications and dietary supplements in AU/NZ had hundreds of product recalls for a variety of inadequate quality control measures (ingredient substitutions, falsified test results) that ultimately lead to hospitalizations for consumers of its products, hundreds of millions in losses for Pan’s customers and the eventual closure of Pan Labs altogether. More recently, the 2008 issues with

While these are extreme cases, they all started as single events that, due to inadequate control measures, turned into complete disasters. Granted, the above cases were started purposefully, but those corporate victims in the supply chain did not adequately protect themselves. What will continue to challenge the consumer goods industry is that due to these extreme cases, the regulation of our products will continue to be even more strict and the effects of a single quality control problem can spread worldwide very quickly, with a torrent of negative media soon to certainly follow.

financially disasterous for a company. Examining just the last 12 months of recalls on their site shows how challenging and costly inadequate quality control in the supply chain can be. But quality is a continuous process, and part of that continuum is learning from the past. Following then, is a summary of the major categories of recalls for 2009, what can be learned from them and questions you should be asking about your ingredient supply chain.

Category 1 – Adulterants

The summary: There were 12 specific recalls of various foods and supplements that were directly related to adulterants. There were two cases there were heavy metal issues, but the remainder were ingredients that were found to be illegal and potentially harmful. The lesson: These companies and their suppliers did not conduct adequate identification testing and toxin screening. The cost: Millions of dollars in recalls. The questions, for you and your ingredient suppliers: (1) Are your ingredients tested by one (or preferably more) identification tests? Are you screening your ingredients for heavy metals and pesticides?

Let’s take a look at some less extreme, but more recent lessons in the value of quality in the supply chain. In the U.S., the FDA (which regulates drugs, food, supplements, medical devices, animal products, tobacco and cosmetics) maintains and publishes a list of the worst case scenarios of product quality issues, recalls (http://www.fda.gov/Safety/Recalls/). Product recalls are often necessary to prevent harm to consumers, but are

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Quality Control

diation, with more than 80% of these recalls being related to nut products sold as is or as an ingredient for a final product. In all, from just this list along, more than 300 companies were forced to recall their products.

Category 2 – Allergens

The summary: There were at least 56 separate cases of product recalls due to undeclared allergens. These allergens are typical ingredients, wheat, milk, nuts, soy, sulfites, etc. These are not toxic in and of themselves, but there are many individuals who have severe allergic reactions to one or more of these items. While the use of these ingredients was neither deceptive nor illegal, it was usually a matter of declaring these on the documentation (C of A’s, specifications sheets, labels) that these ingredients were in the product. The lesson: Examine all product documents to insure that all ingredients are listed. The cost: Millions of dollars in losses for more than 25 different companies The questions, for you and your suppliers: Do you have documentation indicating that your products are allergen free? Do you have the test records and data to back this up? Do you know what ingredients your supplier is putting into your product?

Category 3 – Bacteria

The summary: 2009 was a year plagued with bacterial outbreaks in the food supply, with cases of injury and death resulting from fast spreading cases of salmonella, lysteria, bacillus cereus and other such pathogens, and a total of more than 400 recalls due to these issues. The nut industry (peanuts, pistachios and hazelnuts) particularly suffered the consequences of inadequate micro testing or reme-

The lesson: Micro organisms and pathogens are everywhere, but adequate and diligent testing, along with the use of remediation methods are the best defense against these toxins that can multiply and spread very quickly. The cost: To just the peanut industry alone, more than US $ 1 billion. In a single separate case (Unilever’s self recall of diet drink SlimFast due to bacillus cereus), the product loss alone was US $ 13.4 million.

Next time your purchasing staff begins the process to purchase an ingredient, don’t just ask the price; calculate the quality value of the ingredient in your supply chain. Does your ingredient supplier have a qualified laboratory? Are they conducting the right tests? Have you audited their facility? Then when you begin to calculate the savings on the lower priced product, remember those 500 companies in 2009 that lost as much as US $ 2 billion in recalls alone. If you are rating your procurement team strictly on purchase price varience then you are missing the far more critical metric, cost of quality. The impact of a rejection, recall, shipping delay etc has far more of a negative impact on the business than a favorable ppv metric.

The questions, for you and your suppliers: Are your ingredients adequately tested for micro organisms and pathogens? Are your suppliers conducting environmental testing of their production facilities? Are they conducting stability tests on their ingredients? Are they using any remediation methods (sterilization) to prevent bacterial growth in their ingredients? The nutritional and dietary, supplement and food industry has continued its growth pattern as both a sustainable industry – we provide healthy products and are able to make a living at doing so. But as the industry expands into new areas and products, the need for better quality control measures is growing as well. We cannot move forward as an industry if we move backwards in quality control. And not just internal quality control – the external quality control, the auditing and supervision of our suppliers from the packaging to the ingredients, is of equal importance. Low quality companies are risking not just their business, but yours, the industry and the health of our consumers. Supporting suppliers with inadequate quality control can ruin a product, a company, an industry and ultimately, harm people – the exact opposite of what we are trying to do.

Mike Swenson started in the dietary ingredient industry in 1991. In 1997 Mike returned to California and joined BI Nutraceuticals in the sourcing department. In his 13 years with BI, Mike has lead several departments, including his last position as VP of Operations. Mike supervised the construction and opened the facility and is currently VP of Asian Operations for the BI group of companies. BI Nutraceuticals is the leading provider of quality, specification compliant raw materials to the Nutraceuticals, Food, Beverage and Pet Markets. We source from over 35 countries, and have wholly owned production facilities in the US and China and sell to a worldwide market of 1000+ customers throughout Asia, Europe and the Americas.

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Sourcing and Merchandising

Are Antioxidant

Health Claims

Misleading?

Written by Dilip Ghosh, PhD, FACN, nutriConnect

Why antioxidants?

An antioxidant is a synthetic or natural compound capable of slowing or preventing the oxidation of other molecules. Most commercial food antioxidants work by scavenging free radicals or chelating metals. It is well-known that oxidation damages various biological substances and subsequently causes many diseases such as cancer, liver disease, Alzheimer’s disease, aging, arthritis, inflammation, diabetes, Parkinson’s disease, atherosclerosis, and AIDS. As a result, many diseases have been treated with antioxidants to prevent oxidative damage. The traditional “trio” of antioxidants, such as ascorbate, β-carotene and α-tocopherol has had bad press recently. Several recent human intervention trials giving mostly-negative results, and some meta-analysis and other studies suggesting that these agents not only fail to protect against disease, but also that some of them accelerate development of cancer or cardiovascular diseases. This obviously raised the concern about the century-long antioxidant’s health benefits in human.

Current market

Mintel’s Global New Products Database (GNPD) indicated that more and more products are entering into the market with antioxidant contents on the label. In 2008 Europe had over 135 products launches with ‘antioxidants’ labelled, compared to 111 in 2007, and only 37 in 2006. A similar growth of the use of the term was observed across the At-

lantic (North American market), with 106 launches in 2006, 131 in 2007, and a two-fold increase in 2008 with 262. These figures exclude the products that label specific antioxidants like vitamins A, C, and E, and are therefore the total numbers would be several hundred times higher. According to Nutrition Business Journal, antioxidant sales continued to grow by about 6% overall, reaching more than $3 billion in 2007. The biggest standouts in this segment have been antioxidants from fruits and vegetables, which witnessed an impressive 21% upswing. The next most significant growth has been in the non-vitamin antioxidant category, which saw an 11% sales increase. Goji berry and acai exemplify one of the most sweeping trends to impact the antioxidant market in recent years: the public’s romance with exotic superfruits. Following the highly successful marketing campaign of Pom Wonderful, which brought in $165 million in sales in 2007, pomegranate products have popped up everywhere, and the door has flown open for novel, antioxidant-packed fruits.

Consumer perception and marketing strategy of antioxidants

Product differentiation is the centerpiece of a successful campaign to win over better-educated, cost-conscious consumers (from the Baby Boomer

to Generation X) in today’s crowded market. According to some estimates around half of the US adults take antioxidant pills daily. To attract consumers the use of antioxidant on the label of food products is increasing, and numerous assay methods such as ORAC (oxygen radical absorbance capacity) and DPPH (2, 2’-diphenyl-l-picrylhydrazyl) have been developed to measure this antioxidant potentiality. However, according to new research from the Department of Food Science at the University of Massachusetts, basing antioxidant activity claims on results of basic antioxidant assays such as ORAC and DPPH could be misleading. The results from the free radical scavenging assays are not consistent, even sometimes confusing. According these data from these assays should not be used to imply that compounds with high free radical scavenging capacities are good antioxidants in food systems.

Science behind “antioxidant” theory

Finding efficient antioxidants as therapeutic agents has been one of the hottest areas in biomedicine. According to the MDL Drug Data Report (MDDR) database, only two antioxidant drugs have been launched (i.e. idebenone and edaravone) in the past 30 years. Thus, it seems that it is urgent to improve the translational efficiency of antioxidant research. Some dietary compounds have beneficial activities,

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Sourcing and Merchandising

which are not direct antioxidant effects (e.g. glucosinolates) whilst others (e.g. vitamins C and E, and the carotenoids), previously recognised only for their classical antioxidant characteristics, are also being shown to induce other biological responses, such as signalling molecules in cell function, proliferation and differentiation, and cell death, and that has altered this over simplistic “antioxidant theory”. Unfortunately the majority of data available to support this theory have been obtained from cell culture and animal experiments and the relevance of these data, obtained under nonphysiological conditions, needs to be re-assessed.

Natural vs. supplements

A significant number of studies have shown that fruits and vegetables promote health, while antioxidant supplements do not. Recent evidences for health benefit strongly support the food synergy pattern than for individual foods or food constituents. Several reviews of dietary supplementation suggest that although supplements may be beneficial in states of insufficiency, the safe middle ground for consumption likely is food. The American Heart Association doesn’t approve of taking antioxidant vitamin supplements to improve your heart health. On the other hand, intense marketing propagandas argue that antioxidant supplements are beneficial for your health. A supplement can help you have a proper antioxidant intake even if you don’t get it with food. But the levels of incidence of adverse effects and substandard products are increasing.

Regulation

In June 2008 the US Food and Drug Administration (FDA) has published guidance that describing the level of antioxidant nutrients present in a food is a nutrient content claim, and may be used on food labels in conjunction with food regulations (21 CFR 101.54(g)). However, antioxidant nutrient content claims can only be made if the nutri-

ents have an established Reference Daily Intakes (RDI), as well as scientifically recognized antioxidant activity. In order to use a ‘high in antioxidants’ claim, the food would have to contain 20 percent or more of the Daily Reference Value (DRV) or RDI per serving. For a ‘good source’ claim, the food would have to contain between 10-19 percent of the DRV or RDI per serving. In other countries such as Australia, Canada and European Union, there is no antioxidant-specific regulation. Most of the claims in relation to antioxidant are centered on nutrient content or nutrient profiling.

will be in the hands of the innovators who can grow the category, in spite of the obstacles that exist today.”

Commentary

Today’s consumers are not satisfied with a generic antioxidant benefit unless their activity offers proven health benefits through clinical trials. A recent good example is Danone removing Essensis, an ‘inside/out’ beauty product that contained borage oil, vitamin E, green tea-derived antioxidants from the market. But most of the marketers have simply touted that antioxidants help protect the body against oxidative damage caused by free radicals. However, in recent years intense debate continues to surround what constitutes a valid measurement of antioxidant activity. In the past, ORAC value has been the most frequently cited scientific backing for an antioxidant product. ORAC is physiologically meaningless; it is strictly a test tube phenomenon.” Since biochemical systems, in relation to oxidative status, work at a variety of levels or strata, ORAC won’t pick up all those levels. Moreover, water-soluble and lipidsoluble antioxidants are adding more complexity in this puzzle. Overall, experts predicted that it could take more than a decade before human clinical trials confirm antioxidants as physiological nutrients with specific effects on organ tissue, which will substantiate health claims. Meanwhile, “consumers will continue to crave these compounds, in a variety of forms and applications. Supplying such demand

Dilip has received his PhD in biomedical science. He has been involved for a long time in drug-development and functional food research & development and its commercialisation both in academic and industry domains. He is a fellow of American College of Nutrition and also a member of several editorial boards. Currently Dr. Ghosh is a director at nutriConnect (www.nutriconnect. com.au). His research interest includes oxidative stress, bioactive, functional foods and their relationship with human health, personalisation of food and nutrition, regulatory and scientific aspects of functional foods and nutraceuticals. Dr. Ghosh can be reached at: dilipghosh@nutriconnect.com.au

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Industry Insider

Palm Based Bioactives for the Global Nutraceuticals Market Information provided by Malaysian Palm Oil Council

Bioactives in nutraceuticals and cosmeceuticals play an important role in enhancing health as well as disease prevention properties and they are currently purported as major contributing factors to a healthy lifestyle. There is an increasing trends towards plant bioactives as alternatives to medications. Hence, bioactives with promising nutraceutical and economic potentials have raised interest in the market place. Did you know that such valuable antioxidants are available abundantly in oil palm fruits (refer to Table 1)? Oil palm fruits are packed with various phytonutrients ranging from vitamin E, carotenes to phenolic antioxidants. These bioactives extracted from oil palm fruits have been researched intensively and supported by scientific evidence for their health benefits which include prevention of cardiovascular diseases, cancer, and other degeneration diseas-

es. Encapsulated vitamin E extracted from palm oil, palm carotenoids complex and supplements enhanced with palm antioxidants is presently available in the global nutraceuticals market. Malaysia exported some USD20 million worth of palm oil health supplements, mainly to Europe, the US, Canada and Japan. Currently, Malaysia is the biggest Vitamin E tocotrienol producer and exporter in the world. Palm Phytonutrients

Amount (ppm)

Palm oil is natureâ&#x20AC;&#x2122;s richest source of vitamin E-tocotrienols. These are surprisingly not found in most vegetable oils commonly consumed such as soybean, corn, canola and sunflower oils (refer to Table 2). Tocotrienols constitutes 66-79% of the vitamin E (total 600-1000mg/kg of palm vitamin E) in crude palm oil. The remaining are tocopherols. Commercially, tocotrienols are mostly extracted from palm oil, with rice bran oil a far second. In the past, vitamin E- tocopherol was the attention of research and it is the most common form of vitamin E used in supplements and in the European and American diet. However, nowadays much interest has been focused on tocotrienols as these vitamin E species possess powerful antioxidant properties and portray other important biological activities which are not shared with tocopherals. Tocotrienols have 40â&#x20AC;&#x201C;60 times the antioxidant effects of alpha-tocopherol and this is believed to be the key attribute of tocotrienols contributing to its positive health attributes, particularly in the area of cardiovascular, cancer and skin health. Oils

Tocopherols

Tocotrienols

Carotenoids

500-700

Palm

133

1015

Vitamin E

600-1000

Rice bran

311

308

Soyabean

1162

Olive

100

Corn

603

Rape (Canola)

271

Sunflower

636

(Predominantly Tocotrienols)

Sterols

60-620

Squalene

200-500

Co-enzyme Q10 Glycolipids Triterpene alcohol

10-80 1000-3000 40-80

Table 1: Phytonutrients found naturally in Palm Fruits

Table 2: Tocotrienols in Edible Oils

Ref: Ong, A.S.H (1993), Natural sources of Tocotrienols. In Lester Packer & Jurgen Fuchs (eds), Vitamin E in health and disease. Mercel Dekker, Inc: New York.

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Industry Insider

It has been widely known that carotenoids play an important role as a precursor of vitamin A and amongst the convertible carotenoids, β-carotene is the most efficient. Many may not know that crude palm oil has the highest β-carotene content as compared to the available plant sources. The content of carotenes per kilogram in crude palm oil is so high as it is reported to be 15 times more than in carrot! Crude palm oil contains 500-700mg/kg of mixed carotenes (refer to Table 3). 90% of these carotenes are β-carotene and α-carotene, while remaining is made up mostly of lutein, lycopene and zeaxantin. Palm β-carotene has higher bioavailability than that obtained from other rich vegetative sources and demonstrates no toxicity unlike hypervitaminosis A due to preformed vitamin A intake. Such concerns do not arise from the intake of β-carotene from natural sources such as red palm oil. Among the proven and reported health benefits of long term intake of Carotene

Crude Refined Red Palm Oil (%) Palm Oil (%)

β-carotene

47.4

56.0

ά-carotene

37.0

35.1

Cis-ά-carotene

6.9

2.5

Phytoene

2.0

1.3

Lycopene

1.5

1.3

Phytofluene

1.2

0.1

γ-carotene

1.3

0.7

Cis-β-carotene

0.8

0.7

δ-carotene

0.6

0.8

ζ-carotene

0.5

0.3

Neurosporene

trace

0.3

β-Zeacarotene

0.5

0.7

α-Zeacarotene

0.3

0.2

Total

545

673

Table 3: Carotene Composition of Refined Red Palm Oil and Crude Palm Oil Ref: Ooi et al. (1994), Recovery of carotenoids from palm oil. JAOCS. 71(4):423-6.

red palm oil are increases in the vitamin A status of pregnant and lactating mothers and breast-fed infants. For example, one popular brand of red palm oil, called Carotino has obtained various endorsements for its health attributes.

Palm oil has a history of food use of over 5000 years and has emerged as a preferred oil of this millennium by billions all over the world. More than 150 countries worldwide favour it for its natural, versatile and excellent properties. To those who wish to reap the benefits of this oil and its products, the Malaysian Palm Oil Council (MPOC) will be your trusted information provider. Please visit MPOC website at www.mpoc.org.my for more information. Text written by Pon Lai Wan (pon@mpoc.org.my)

Besides the oil, by-products of palm oil milling and refining also contain bioactives. These are water-soluble vitamins that have been successfully extracted from aqueous by-products generated from the palm oil mill. As these palm phenolics are potent antioxidants, they have been associated with a number of health benefits. Anti-oxidative effects of palm phenolics were reported to be comparable to that in green tea. Recent scientific findings demonstrated that these valuable active compounds play a promising role in lowering cholesterol and prevention of arthrosclerosis, cancer, and skin related photo-oxidative damage. Presently, phenolic-rich compounds are expensive due to inadequate worldwide supply. Palm phenolics which could be recovered abundantly from palm ‘waste’, could become an abundant source of these phenolics. In conclusion, due to its wide range of bioactives with superior antioxidant properties, palm oil is the currently earmarked for various applications ranging from functional foods, nutraceuticals, pharmaceuticals and to cosmeticeuticals.

Malaysian Palm Oil Council (MPOC) is responsible to promote the market expansion of Malaysian palm oil and its products by enhancing their image and creating better acceptance through awareness of various techno-economic advantages and environmental sustainability of palm oil.

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Marketing

Differentiating:

The Keyword of Branding Natural / Organic Ingredients in Asia

Ingredient branding emerges as a hot topic within the natural / organic sector. It is simply because more and more ingredient manufacturers are aware of the enchantment of branding behind sales. Think deeply: what are the points for consumers to buy something that does not mean anything to them and that does not have a differentiating identity? Customers making purchases, in fact, spell the recognition of a differentiating idea or message that a brand delivers. To achieve branding success, it is not a hard task but just stick to several rules. Natural Products Expo Asia talks to Jacky Tai, Principal Consultant of StrategiCom to explore the essentials of branding natural / organic ingredients.

What drives ingredient manufacturers to build a brand? How can they transform their business into a brand, especially when it comes to “natural and organic” products?

J: What drives any company to brand

itself is the need to differentiate its products or services from its competitors. There are two ways to get business, either differentiate your products or sell cheap. If you are not distinctive, you will have to sell cheap to secure the business. In doing so, the profit margin is driven down. If you can’t sell cheap, find a way to differentiate your brand. And the principles of branding are the same whether you are selling food ingredients, microchips or cars. A strong brand must own one powerful idea in the minds of its customers. For example, Caterpillar is a strong brand, as it owns the idea of construction machines; Coca-Cola owns the idea of the real thing; Mercedes-Benz owns the idea of prestige. The easiest way to cultivate an idea in people’s minds is to be the first one to get there. If you are not the first, then create a new category to secure the “first”. Many powerful brands opt for this approach, such as Xerox as the first plain paper photocopier; FedEx as the first over-

What marketing channels can ingredient manufacturers utilize when building brands?

J: There are many various channels that

R: Reporter J: Jacky Tai Principal Consultant StrategiCom

night letters, and Red Bull as the first energy drink. This holds the same to ingredient manufacturers. For example, if there are strong brands already dominating all the different categories of FLOUR, such as organic flour, white flour, corn flour, vitamin-fortified flour and so on, they might want to create a new category of flour. An example could be Oxygenated Flour – flour that is dosed with oxygen.

R: Do the branding strategies in

Asia and Western countries show any differences?

As the principles of branding are the same regardless of industry or geography, there should be no difference in how branding is done. Of course, there are exceptions to the rule. I wrote a book called Great Asian Brands: Tiger Beer in which I examined the Tiger Beer strategy in the East and West. SInce Tiger Beer is a Singaporean brand and Singapore is not known for beer, it strived to win as many awards as possible and brands itself as the award-winning beer in Asia. For the West, it brands itself as an exotic Asian beer. This can work but you have to be very careful that you don’t create a schizophrenic brand as a result of two different strategies.

can be used by ingredient manufacturers. The choice depends on various factors, such as target markets, competitive landscape, size of war chest (ie, money), etc. We spend a great deal of time to work with clients on finding the right mix during every branding project. There are a few things that companies should take note of:

a) If you don’t communicate your brand, then somebody else will communicate it for you and that some body will be your rival. So, don’t be outdone by competitors in terms of the volume, and more importantly, the quality of the brand messages. b) There are 2 types of communica tions channels – STATIC and DYNAMIC. Static communications refer to things, like website, logo, tagline, brochures, corporate video, name cards, delivery vehicles, etc. that are quite easy to control. Dynamic communications refer to people, covering management, employees, ex-employees, media, distributors, customers, suppliers, etc. Both are very important but the dynamic channels are harder to get right.

R: What determines a successful

branding for ingredient manufacturers?

J: The battlefield of branding is not

in the real world but in the minds of customers. The success of branding depends on how well you manage to associate your brand with a powerful idea in the minds of customers. But idea ownership is mutually exclusive.

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Once a competitor has successfully owned an idea, you will have to find a new idea to own. Coca-Cola owns the idea “The Real Thing”. So, Pepsi found a new idea, “The Young Thing”. You need to find out what ideas are already owned by competitors through a process known as the Perception Audit.

R : What advice on branding will

you offer to a company if it intends to establish a foothold in Asia?

a) Determine the list of your rivals. b) Ascertain the ideas that rival brands are most strongly associated with. c) Find a way to differentiate your brand clearly (or be prepared to of fer lower price range). d) Dramatize your differentiating idea (make it more exciting, more exag gerated and larger-than-life). e) Communicate that differentiating idea consistently at all customer touch points.

R : Many of your writings and

speeches highlight “differentiation”. Can you provide some tips for natural / functional ingredient companies to set themselves apart from the industry players even in a downturn economy?

J: I think the first step is to understand

the 13 strategies of differentiation stated in the book Killer Differentiators. Here are some of the key points: 1. Sales Leadership – 95% of buyers are imitators, they follow what other people buy. 2. Technology Leadership – You don’t need to be a technology company to use technology. 3. Performance Leadership – It can be used in industries where perfor mance is important. 4. Next Generation – Buyers are afraid of being seen as outdated, so they would want to buy the latest thing.

5. How A Product Is Made – Most products within the same category deliver exactly the same thing, and very often, the difference is in the way they are made. 6. Where A Product Is Made – Country of origin can be as important as a differentiator, provided that your country of origin is known for the product you sell. 7. Attribute Ownership – There are usually 5 to 7 important attributes within any category. 8. Personality – Hard to use for an in gredient brand. 9. Opposite Position – Find out what the No. 1 brand stands for and do the opposite. 10. Specialization – Specialist brands are seen as having more knowledge than generalist brands. 11. Preference – Your customers can give you a differentiating idea. 12. Heritage – If you have been around a long time, you must have done something right. 13. Design – Not a useful strategy for ingredient brands.

R: As a branding consultant, what are on your not-to-do-list when it comes to branding natural ingredients?

J: The most important thing is DO NOT

OVER-EXTEND THE BRAND. That means, don’t try to be everything to everyone. One brand can only stand for one idea. Many consultants tell their clients to line-extend the brand to increase their business. Such move will cause serious damage to your brand.

Jacky Tai is the author of 3 criticallyacclaimed branding books which include Transforming Your Business Into A Brand (2007); Killer Differentiators (2008) and Get A Name! (2009). He has more than 13 years of experience in the field of branding and marketing - having worked with start-ups in USA and Singapore. Jacky joined StrategiCom in 2007 where he helps clients to create effective differentiation and naming strategies. Jacky believes that the difference between a successful brand and an alsoran is the correct strategy.

Brand Building With Trademarks: A Study Of Singapore Food Manufacturers

Once companies have found an idea they can capitalize on to differentiate the brand, they will need to protect their trademark (an important Intellectual Property). A research study on Singapore food manufacturing companies, undertaken by StrategiCom in partnership with the Singapore Food Manufacturers Association (SFMA) 2008, discovered that the majority of food manufacturers actually looked to famous brands for inspiration when designing their logos/trademarks. • 54 per cent of Singapore food manufacturers would select colours and designs that looked like their competitors’ before creating a brand. • 57 per cent selected colours and designs akin to famous brands.

This is not advisable as the aim of any company should be to differentiate from its competitors. So this is something the food ingredients industry can take note of.

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Trends & Insights

Raw Living Food Lifestyle

QA &

with Moises Mehl and Mankei lectures on a yoga conference and was being inspired to formally initiate my journey into raw foods.

How can raw food better our lives?

M: In many ways it does, from con-

Chef Moises Mehl, also known as Chef Moy, is a long-time practitioner of raw food living style. Chef Moy specializes in the design of recipes that are organic, wheat free, gluten free and dairy free. He can help you prepare delicious and nutritious REAL food in a quick, fun and easy manner. To know more, visit: www.raw.hk M: Moises Meh

Q:How foods?

did you first discover live

M: I was lucky enough to be raised by

a family involved in raw food. Back to the early 80’s, my maternal grandma, a great yogini, artist-cum-vegetarian writer, studied raw foods with my aunt (my mother’s twin sister) and Ann Wigmore (among pioneers of raw foods). I was about 6 years old when having my first contact with this type of food in the kitchen, helping my grandma soaking and sprouting seeds without being aware of its importance. For a while, I practiced a lifestyle of consuming typical food, and at the age of 26 (now I’m 38), I turned to be a vegetarian for protection of animal rights. Since then, I started doing self-study on nutrition and it took me about a year and half to get interested on the work of MD Gabriel Cousens. I came to assist his

necting us with natural food and enjoying the flavors of nature, to experiencing an amazing way of life restoration and enhancement. I feet more energetic and sensitive and care myself and other living beings, and have a stronger sense of connection with our planet.

Q: Is it hard to buy raw foods at lo-

cal outlets? Where can you buy raw nuts and chocolate, for instance?

M: At the beginning, it was challenging but I went on to search them on my own and was able to identify lots of people and places. I also became more creative on making food and selecting seasonal ingredients. Since certain ingredients are pricey in Hong Kong, I recently start to import my own products like raw cacao and nuts from online; but get veggies and fruits from local organic markets and wet market. I also go to some local organic shops for organic grains and seeds. I made a page at www. raw.hk to share my resources.

read books on raw vegan food. We have to build a good foundation by learning and gradually practise steps in our diet. For me, I like Gabriel Cousens’ books, such as Conscious Eating and Spiritual Nutrition, underlining some examples on transition and a deeper understanding of this lifestyle. We can try step by step, starting with a raw vegan breakfast, then raw lunch on alternate day to see how you feel and gradually build your own menu! Also, start with some basic kitchenware at home. A highspeed blender is always recommended. Either a Vitamix or Blendtech blender is a good investment for life!

Q: What is your daily diet? M: Breakfast lery + Cucumbe r + Green Appl Ginger + Pinch e+ of Turmeric Almond/Macad amia milk with a raw muesli m chia seeds, fresh ade of coconut noodles , and seasonal fruit Lunch Hemp seed tabo uleh Nut paste with Live crackers or Raw Vegan supe r food shake + Salad Green Juicing Ce

Desserts Spirulina / Pom egranate/ Stra wberry/ Raw Pi e Snacks Raw vegan appl e cookies Jicama with lem on juice, cayenn e pepper and se a salt Mix of cacao & goji berries

Dinner Green salad wi th seeds and nu Sprouted (soke ts d) wild rice wi th pecans, olive coriander, cold s, pressed olive oi l or Sprouted Quino a salad Raw Zuchinni soup

Supplements Liquid B12, MSM , green powder s

Where can we learn more about raw food lifestyle? And if we want to have a closer look, where should we start?

Frankly, I suggest understanding veganism as a foundation diet first, and

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Trends & Insights

cially when I go out to work. For hot food, I take warm soups, a blend of veggies and nuts in hot water below boiling point. This kind of soups is still considered raw. I make such warm food as pizzas and burgers on the dehydrator. I’ve long been in such lifestyle that I don’t feel being “deprived”. My mind keeps on thinking about enjoying other food options.

Q: How often do you eat out? Do

Q: Do you find raw food movement

you miss hot food? How do you avoid feelings of deprivation?

getting wider and more influential? And why?

I’m not a 100% raw diner but a 100% vegan and take up 70 to 80% of raw food in each diet. If I’m eating out I might go for one vegan hot meal and try to compensate at home breakfast, lunch or dinner. I can go for veggie sushi that made with all raw ingredients. I usually carry a meal with me, espe-

Q: How did you first discover live foods?

What current projects are you working on?

I started my career in personal coaching, food catering and working with other health institutions to spread the word. I also started a Master’s degree in the HKU on education and IT, through which I can learn how to use technology to impart knowledge and educate people on this healthy and amazing lifestyle.

Yes, I’ve seen more and more friends get interested on this topic day by day and asked me about it. Meanwhile, training institutions on raw food have grown popular, not to mention a greater amount of documentaries and movies related to this topic, like Food Matters and Simply Raw.

Man: Mankei

Man Kei is a graduate of Living Light Culinary Arts Institute in California, USA where she received her certification as a Raw Culinary Arts Associate Chef and Instructor. She teaches raw culinary arts classes in Hong Kong and in Asia and is launching her organic, gluten and dairy free decadent desserts series.

promotes better digestion, faster absorption and more efficient elimination of waste materials. 4) Raw food diet makes you feel better, look better, more vibrant and energetic. You become more alive! 5) Greener living with less energy consumption is better for the environment.

Man: In Jun 2006 when I was looking for a naturapathic school in the US, I found that raw food sector is huge and where my passion lies, I came to a decision that wellness was the path I wanted to take.

Q: Is it hard to buy raw foods at lo-

cal outlets? Where can you buy raw nuts and chocolate, for instance?

How can raw food better our lives?

Man: In the following ways: 1) Eating raw food is not new but it is the original way of food consumption for both humans and animals. 2) Food cooked or prepared below 108 degree F tend to retain most of its nutritional benefits and enzymes that our body needs. 3) Raw food with less processing

Man:

There are many juice and salad bars, cafes and delis available in Hong Kong. You can easily order fresh or marinated salads. It would be challenging if you are looking for something fancy, yummy and nutritious all in one. There are a couple of places that offer raw food for dine-in and by reservations only. So far as I know, they are not 100% raw food outlets.

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Trends & Insights

There are many organic and health food shops that stock raw nuts and seeds. I usually make my own chocolate candies, sweets or desserts. Chocolate or cocoa powder is not raw. You can buy raw cacao chips and grind them into powder.

Q: Where can we learn more about raw food lifestyle? And if we want to have a closer look, where should we start?

Man: I offer raw food workshops where people can come and listen to an introductory talk about raw food. The 90-minute session features a talk, demonstration and ends with a sampling of mini raw buffet. Interested participants, kindly contact me at 2108 4800 for further details on class schedule and fee.

Q: How often do you eat out? Do you miss hot food? How do you avoid feelings of deprivation?

you peaceful, calm and non-violent and helps you to be more compassionate, pure, and kind at heart.

Man: Since I have wheat and gluten

intolerance, I minimize eating-out to once a week. There are a lot of ways to warm your tummy up in cold winter day with hot herbal tea or vegetable broth before meal. I listen to my body and rarely deprive myself of eating well.

Q: Do you find raw food movement getting wider and more influential? And why?

Q: What is your daily diet? Man: I usually have a smoothie, fruit or shake in the morning; salad and/or blended soup for lunch and dinner, depending on how hungry I am. Sometimes I do add some cooked grains like quinoa or brown rice to make a warm salad.

What current projects are you working on?

Man: I am authoring a recipe book to introduce raw food and spa cuisine for Asian readers. I am also working on a website www.rawfood123.com with my IT consultant. Besides, I am available for coaching, consultation, workshops, retreats, catering and private chefing events.

Man: More people become aware of and understand the importance and health benefits of a high raw diet. At the beginning of organic movement in Hong Kong, raw is just the next level. Right now, people are more educated, more health conscious and more spiritually aware of eating raw and adopting a plant-based diet for health in body, mind and spirit. Raw diet keeps

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Advertorial

Health Management

Trickle

Information provided by Great Eastern Healthcare Ltd. As more and more people become aware of, health is as important as our wealth. When we are accumulating our wealth, don't forget to build up our health. In fact, getting a prosperous life needs unremitting eﬀorts and a long period of accumulation of health, which we call it as "life wealth". How to get and maintain this precious life wealth? Starting from a healthy way of living could be a shortcut. Numerous studies have shown that lifestyle plays an important and decisive role in wellness. We need to pay attention to every detail in order to develop a healthy lifestyle. After all, to spend some time on health management and get good returns is also a living wisdom.

Systemize family medicine chest

All the medicines and health care products should be checked carefully about their expiry dates. They also need to be separated according to their nature and medicine eﬀect.

Blood Pressure: refers to the pressure exerted by circulating blood on the walls of blood vessels, which is one of the principal vital signs.

For medicines to be preserved, we need to keep them in cool and dry place and any direct sunlight should be prevented. We also need to pay particular attention to keep the medicines out of the reach of children.