IHR Magazine - Spring/Summer 2013 by Rive Gauche Media

YO U R H E A LT H C AT E G O R Y S O U R C E

Marketing a new ingredient? Is it an NDI? The Paleo Diet: How retailers can capture the trend

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Mill Creek’s drive for expansion & growth

PRODUCT PROFILES BUSINESS BUZZ RESEARCH NEWS

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Willie Pelzer’s legacy

Take it for Life!

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2013-06-05 1:47 PM

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Superior Omega-3s Reduce Joint Inflammation and Support Heart and Brain Health Doctors recommend omega-3 fatty acids to support the health of heart, brain, eyes, skin, and joints. Compared to fish oil, the omega-3s in krill oil are more concentrated and easier to absorb. Krill oil is unique because it contains naturally occurring antioxidant nutrients, vitamin A, vitamin E, and astaxanthin – a red-orange pigment found in aquatic animals that can quench free radicals and protect the cell membrane. Krill oil is also unique because its phospholipid-bound omega-3s can pass through the intestinal wall more easily, making the omega-3s more bioavailable and incorporating them into the cell membranes better. RoyalRedTM Omega-3 Krill Oil from webber naturals ® is guaranteed to contain consistently fresh, stable, high quality oil that is harvested in a sustainable manner under the guidelines of the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR). The softgels are small — ideal for those who find regular fish oil capsules difficult to swallow — and leave no fishy aftertaste.

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editor’s letter WILLIE PELZER has quietly shaped our industry since the late 60s. If you were fortunate enough to meet him in the flesh, you probably felt there was nothing “quiet” about Willie. Surely, he was not a shy man. However, he was guided by the belief the CHFA should benefit the majority of its members rather than the supremacy of a few. I couldn’t put out a new issue IHR without paying tribute to the “Granola King.” His life was intricately linked to the Canadian Health Food Association. He presided over the association from 1969 to 1971, and again from 1991 to 1997. Without Willie’s generosity, the CHFA might look very different today. He will be sorely missed.

Olivier Felicio Publisher/Editor-in-Chief

www.ihrmagazine.com Carol Crenna

Editor

IHRMAGAZINE.COM • SPRING / SUMMER 2013

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CONTENTS

Mid-year review for SMBs (p.51)

Volume 14 Issue 2 UP FRONT

Editor’s Letter.............................................................................................................8 Get The Goods......................................................................................................... 15 SKU Review.............................................................................................................. 16

NEWS

Industry News......................................................................................................... 26 Track the latest deals, industry trends and strategies Research News.........................................................................................................62 Get the latest on the cardioprotective effects of cocoa, fatty acids and more

The U.S. Food and Drug Administration’s stance on new dietary ingredients (p44)

Remembering Willie Pelzer’s contribution to the CHFA (p.38)

IHRMAGAZINE.COM • SPRING/SUMMER 2013

C fo

Caffeine: Performance enhancement for activites of prolonged duration (p.56)

Sobeys buys safeway Canada in game changing deal (p.26) F E AT U R E S

Concord National Grows Organically...............................................................24 IHR interviews Concord CEO Mike Donald Company Profile.....................................................................................................34 Mill Creek CEO Panch Prasad’s drive for innovation and growth Cover Story...............................................................................................................38 Sunny Crunch founder Willie Pelzer’s legacy The Future of New Ingredients............................................................................ 46 Marketing a novel ingredient? Is it an NDI? The Paleo Diet......................................................................................................... 50 Opportunity for retailers as category takes industry by storm

Mid-year review for SMBs......................................................................................53 Tips from the general manager at Sage 50 Accounting Canada Ken’s Column............................................................................................................59 How can smaller vendors play with bigger retailers?

END NOTES

Fax Back.....................................................................................................................72

SPRING / SUMMER 2013 • IHRMAGAZINE.COM

editorial board We believe that you, the retailer, dictate the tone and direction of the magazine, which in turn, allows us to provide you with the most accurate information that is relevant to your business. IHR works with a knowledgeable group of industry leaders whose mandate is to ensure the relevance of the publication. Our editorial committee is comprised of thought-provokers who have shaped the industry and whose experience is vital in providing you with tools to succeed. The IHR editorial committee is led by the following individuals:

GET YOUR INDUSTRY NEWS DELIVERED EVERY DAY VIA E-MAIL

Olivier Felicio President The RGM Group

Andrew Betts Category Manager, Natural Foods Thrifty Foods

Sanjiv Jagota President Nature’s Source

Gilles Houde President and COO GNC Canada

Aaron Skelton, BSc (NNS) Sr. Category Manager, Health Food, Natural Value, Soins Naturels, Loblaw Companies Ltd.

Dean Mosca President Proprietary Nutritionals Inc.

To subscribe, go to ihrmagazine.com or fill in the following: Email address:

First Name: Last Name: Company/Store name:

Fax To: 1-888-849-0155

YOUR HEALTH CATEGORY SOURCE

IHRMAGAZINE.COM • SPRING / SUMMER 2013

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contributors

YOUR HEALTH CATEGORY SOURCE

S T E V E H A N S O N is owner of GRIP IDEAS, a company focused on providing market development strategies to build global businesses in the nutrition industry. Steve is considered an expert in ingredient branding for the nutrition industry and has been involved with FloraGLO® Lutein, Ester-C® Vitamin C, MEG-3® Omega-3, Meriva® Bioavalable Curcumin and Regenasure® Glucosamine. Steve has shared his unique platform for building successful brands at industry conferences throughout the world.

ISSN 1197 - 1495 | V O L U M E 1 4

ISSUE 2

FOUNDER, PUBLISHER & EDITOR-IN-CHIEF

Olivier Felicio EDITOR

Lio Perron EDITORIAL INTERN

Marielle Torrefranca ART DIRECTOR

Malcolm Brown

PRODUCTION MANAGER

Erin Booth

DESIGN INTERN

Connie De Camilli CONTRIBUTORS

K E N V A N N U C C I is a Merchandise Manager for London Drugs, responsible for OTC, NHP, Vitamins, Baby and Grocery. Ken has a passion for retail, and has been with London Drugs since he graduated from UBC in 1989 with a Bachelor of Commerce specializing in marketing. He has a keen interest in product and package development and the marketing of products, with emphasis on consumer-packaged goods. Ken is from Trail, B.C. and is married with two sons.

Crystal Chanderbhan, Richard Levy, Steve Hanson, Ken Vannucci

TheRGMGroup. Toronto

Paris

PRESIDENT

Olivier Felicio CEO

Cory Boisselle CHIEF MARKETING OFFICER

Zinnia Crawford

CONTROLLER & O P E R AT I O N S M A N AG E R

Melanie Seth

C R E AT I V E B U S I N E S S C O O R D I N ATO R

Erin Poredos

D R . C R Y S TA L C H A N D E R B H A N ND practices at CBI Health Group in Scarborough, Ontario. With a firm belief that food can be your slowest form of poison, or greatest form of cure, her practice puts the emphasis on nutrition and nutratceutical support.

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A DV E R T I S I N G I N F O R M AT I O N

Olivier Felicio

telephone: (416) 203-7900 x 6107 email: olivier@rivegauchemedia.com

Deborah Taylor

telephone: (416) 203-7900 x 6136 email: deborah@thergmgroup.net

Paul Airut

RICHARD LEV Y has been in the retail field for 25 years. As former VP at GNC Canada, Richard played an integral part in the company’s growth to becoming the largest retailer of nutritional supplements in Canada with a presence in more than 170 locations. Richard currently manages development, marketing and sales support at VICTORY BRANDS.

telephone: (416) 203-7900 x 6103 email: paul@gorgmgo.com

Jeff Yamaguchi

telephone: (416) 203-7900 x 6122 email: jeff@gorgmgo.com

Erin Poredos

telephone: (416) 203-7900 x 6128 email: erin@gorgmgo.com

Published by Rive Gauche Media Inc. Canada Post Canadian Publications Mail 4067800 The publisher does not assume any responsibility for the contents of any advertisement and any and all representations or warranties made in such advertising are those of the advertiser and not of the publisher. The publisher is not liable to any advertiser for any misprints in advertising not the fault of the publisher and in such an event the limit of the publisher’s liability shall not exceed the amount of the publisher’s charge for such advertising. No portion of this publication may be reproduced, in all or part, without the express written permission of the publisher. All rights reserved. ©Copyright 2013 Rive Gauche Media Inc. ihr magazine is pleased to review unsolicited submissions for editorial consideration under the following conditions: all material submitted for editorial consideration (photographs, illustrations, written text in electronic or hard copy format) may be used by ihr Media Inc. and their affiliates for editorial purposes in any media (whether printed, electronic, internet, disc, etc.) without the consent of, or the payment of compensation to, the party providing such material. Please direct submissions to the Editor, ihr magazine.

IHRMAGAZINE.COM • SPRING / SUMMER 2013

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SPRING / SUMMER 2013 • IHRMAGAZINE.COM

CANADA’S

#1BRAND of OMEGA-3

According to the latest Nielsen data for all channels, Canada’s own webber naturals is our nation’s

top selling brand of omega-3 essential fatty acid supplements. WN Pharmaceuticals, makers of webber naturals, produces a wide range of top quality omega-3 supplements. This summer, our most popular omega-3 products, including our premium line, are offered in a variety of displays for our best-price-of-the-year promotion. Order yours now! * Nielsen MarketTrack, National All Channels, 52 Weeks Ending April 6, 2013

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Omega-3 Mini Omega-3 essential fatty acids are critical for the nervous system, improving cognitive function and mood, and reducing the risk of Alzheimer’s disease and other forms of dementia. EFAs also have beneficial effects on the cardiovascular system, and are commonly recommended for patients with heart disease. However, you can’t benefit from the wonderful health advantages of Omega-3, if you can’t swallow the pill ! Omega-3 Mini from webber naturals ® provides the Omega-3 your body needs in half the size of a standard fish oil softgel of the same potency — easy to swallow for individuals who struggle with larger pills.

• 50% smaller for easier swallowing • Enteric coated to prevent stomach upset • No artiﬁcial colours, preservatives, or sweeteners

Schaefer, E. et al. (2006). Plasma Phosphatidylcholine Docosahexaenoic Acid Content and Risk of Dementia and Alzheimer Disease. The Framingham Heart Study. Arch Neurol, 63:1545-1550. Saremi, A., Arora, R. (2008). The Utility of Omega-3 Fatty Acids in Cardiovascular Disease. Am J Ther, Dec 15. Marchioli, R., Schweiger, C., Tavazzi, L. et al. (2001). Effi cacy of n-3 polyunsaturated fatty acids after myocardial infarction: results of GISSI-Prevenzione trial. Lipids, 36 Suppl:S119-26.

SKU Review

GINKO BILOBA , E X TR A STRENGTH

120 mg | 90 capsules Ginkgo Biloba Extra Strength from webber naturals® is an extra-strength herbal extract that provides the same dosage used in successful clinical trials. Studies have shown that ginkgo increases blood flow and circulation in the brain, helping to improve memory and cognitive function, as well as improve circulation throughout the body.

HOLISTA® TE A TREE SPR AY

The Holista Tea Tree Spray is a natural antibacterial cleanser with a number of uses. Uniquely formulated with peppermint oil and menthol, Tea Tree Spray is ideal for; cleaning and preventing infection of skin ailments, refreshing and cooling hot, tired feet, calming sore muscles and battling odour–causing bacteria on feet and footwear.

PLENTIL S

Plentils come in four different flavors: light sea salt , margherita pizza, dill and sour cream and garlic and parmesan. Every flavor is dairy free, as well as free of other common food allergens (like all Enjoy Life Food products). They are made from lentils. They contain 40% less fat that typical chips, and without artificial ingredients.

PROTEIN PUDDING

Finally – a delicious high protein treat that you can enjoy without feeling guilty! MHP’s new Fit & Lean Power Pak Pudding is a creamy, ready-to-eat healthy snack packed with 15 grams of the highest quality protein and only 100 calories per satisfying cup. This convenient anytime snack is sugar free, lactose free and gluten free, low in carbs and low in fats. www.mhpstrong.com

IHRMAGAZINE.COM • SPRING / SUMMER 2013

SKU Review

MIGR AINE FOR MUL A

90 capsules Research shows the herb feverfew helps prevent migraines. Migraine Formula from webber naturals® contains standardized feverfew to ensure an effective, consistent dose. It also provides a gentle, easily-absorbed form of magnesium because low magnesium is linked with migraines. Take Migraine Formula every day to reduce the frequency and severity of migraines.

COME RE A DY

Come Ready Bars were engineered for health and performance with a great nutritional profile to help people achieve their goals. These bars are in the nutrition division of The Crons Brand and support the company’s Come Ready or Never Start mentality. This brand is for people who like to outwork the competition, overcome adversity and achieve their goals. The Crons Brand and Come Ready Bars hope to help all people achieve their goals. For best results, eat a Come Ready Bar 30 to 60 minutes before a workout, 15-20 minutes after a workout, or anytime as an energizing snack. www.comereadybars.com

PA LEO PROTEIN

It combines two of nature’s best protein sources for athletes – premium grade beef and egg white protein. This classic combination is naturally loaded with BCAAs and all of the essential amino acids you need to enhance muscle growth and recovery. PALEO PROTEIN is the all natural, sugar free, lactose free and gluten free smart protein choice for you!

SPRING / SUMMER 2013 • IHRMAGAZINE.COM

SKU Review

OSTEOPLEX

Osteoplex is Herbasanté’s newest homeopathic formula. It is formulated to help relieve pain in people suffering from metabolic calcium deregulation such as osteoporosis, osteopenia, occasional pain, delayed healing of fractures, calcification, scoliosis, osteoarthritis, bone spurs, frequent fractures in young subjects and bone senility (senile osteoporosis). It also helps reduce pain associated with growth spurts and stimulates callus formation.

Osteoplex Bone Pain Douleurs osseuses

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HOLISTA TE A TREE OIL 100 % PURE

Tea tree oil has many uses: fighting fungal infections on fingernails and toenails; treating acne; or treating and preventing head lice. Use Holista tea tree oil as a first aid remedy for infections, minor skin ailments and abrasions or you can even add it to household cleaning solutions to boost antibacterial activity. You might say it’s nature’s first aid kit in a bottle!

KRONOBAR APRICOT-CRANBERRY

The KRONOBAR Apricot-Cranberry bar is a pre-workout natural energy bar (Box of 12). Consume one bar approximately 30 minutes prior to exercise or between meals as a healthy addition to an active lifestyle. Taste delicious. 100% natural (made with primarily raw ingredients). Gluten-free. Non-GMO. No preservatives. No added sugar. Soft, moist texture. Vegan-friendly. Certified nut-free and peanut-free. Made with organic cocoa. Made in Canada.

IHRMAGAZINE.COM • SPRING / SUMMER 2013

SKU Review

R AW FUSION

RAWFUSION is the world’s first unmatched proprietary raw plant fusion matrix that sets a new industry standard for performance and taste. It contains a creamy, positively charged protein matrix that not only tastes incredibly awesome, but it’s good for you. Rawfusion is the brainchild of over 1 year of intense research & experimentation in the field of protein cold-extrusion technologies. You are getting 21 grams of a custom biofermented, allergen, GMO & animal free plant protein fusion which contains pea protein isolate, brown rice sprouted & artichoke protein concentrate swirled in a deliciously addicting omega fatty acid rich sunflower oil matrix. The amino acid profile mimics that of whey/milk thus is rich in Glutamine and contains over 4,500 mg of BCAAs (Leucine, Isoleucine, Valine) per 1 scoop. Our patent pending formulation is free of solvents, radiation, artificial colors, sweeteners or anything created synthetically. Further, each ingredient is extracted from organic raw ingredients that are GMO, herbicides and pesticide free.

OSTEOPLEX

Osteoplex Bone Pain Douleurs osseuses

100ml (1.7 fl oz)

R A SPBERRY K E TONE S WITH GREEN TE A

120 capsules When used with a program of reduced caloric intake and increased exercise (if possible), Raspberry Ketones with Green Tea from webber naturals® safely helps in managing body weight by activating energy metabolism and speeding up the breakdown of fat. It also provides potent antioxidant protection for your body’s cells.

SPRING / SUMMER 2013 • IHRMAGAZINE.COM

SKU Review

VEGGIE FRUIT PLUS NUTRITIONAL GREENS CONCENTRATE

120 vegcaps or 300 g powder. Here is a concentrated food formula LOADED with over 40 fruits, vegetables, enzymes, probiotics, citrus bioflavonoids and more! The enzymes aid in digestion and absorption of all these nutrients while its easy-to-blend formula makes it perfect to add to smoothies, water or another favourite drink (powder). Also available in a capsule version.

HERBACOAT CONDITIONER FOR DOGS

120 ml aerosol spray. New! From Omega Alpha, their first topical product for dogs. HerbaCoat rejuvenates your dog’s skin and adds a healthy, silky shine to its coat. Containing all natural herbal oils to moisturize and soothe dry, itchy skin, this chemical-free formula is great for hot spots too.

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KRONOBAR CHOCO-PEAR

The KRONOBAR Choco-Pear bar is a post-effort natural energy bar (Box of 12). Consume one bar following exercise or between meals as a healthy addition to an active lifestyle. Taste delicious. 100% natural (made with primarily raw ingredients). Gluten-free. Non-GMO. No preservatives. No added sugar. Soft, moist texture. Vegan-friendly. Certified nut-free and peanut-free. Made with organic cocoa. Made in Canada.

IHRMAGAZINE.COM • SPRING / SUMMER 2013

SKU Review

AB CUTS

Ab Cuts is a lifestyle weight management support supplement made of naturally occurring, healthy oils such as Omegas 3-6-9 and CLA. The ingredients in Ab Cuts are clinically proven to reduce fat around the belly, hips and thighs. Ab Cuts is stimulant-free and provides a wide-array of health benefits including cardiovascular health

SKINNYGIRL WEIGHT MANAGEMENT

Skinnygirl Weight Management and Energy combines a synergistic blend of CLA (Conjugated Linoleic Acid), a naturally occurring fatty acid found in meat and dairy products, and flaxseed oil, a healthy fat which is high in omega 3’s. Studies suggest these healthy fats increase the efficiency in which your body metabolizes fat., The added B12, known for increasing energy levels, offers a unique solution to weight management along with regular exercise and a healthy, balanced diet.

WHEY EASY

Whey Easy Problem solved – It’s Whey Easy. The ultimate versatility. Mix, dip or sprinkle on your favourite food for a boost of protein. Revolutionary delivery system to save your customers from processed shakes and bars. It adds 10g of protein without changing the flavour. No fat, carbs or sugar.

PROTEIN MULTI-PLEXTM FOR KIDS 500 g powder. Kids need their protein and their vitamins too! Complete milk protein and multivitamin complex. Comprised of fat-free whole milk protein and 17 vitamins and minerals, now you can be sure your children consume the right amount of protein AND vitamins and minerals daily for their active life. Convenient and easy-to-mix into milk, cereal, or pancake/waffle batter.

SPRING / SUMMER 2013 • IHRMAGAZINE.COM

“We looked at the volume and growth Indigo was driving in what we thought was a small channel and knew immediately that we had to jump on the opportunity.”

IHRMAGAZINE.COM • SPRING / SUMMER 2013

Concord National Grows Organically CONCORD SALES LTD., the Pacific division of Concord

National, announced in the fall that it had acquired interest in Indigo Marketing Inc. Based in Vancouver, Indigo Natural Products Management is a well-known natural product sales organization in Canada. Covering Western Canada for 20 years, Indigo represents such brands as: Clif Bar, Kettle Foods, Nature’s Path, Blue Diamond, Amy’s Kitchen, Seventh Generation, Annie’s Homegrown and many other natural category brands. Concord Sales, based in North Vancouver is the Pacific partner of Concord National, a national food brokerage partnership, and also the group’s provider of buy/sell distribution services nationally. Concord National represents such brands as: Tetley, Mazola, Fleischmann’s, Colgate, Sun-Rype, Rogers, BeeMaid and BlueWater, to name a few. Since 1969, Concord has managed food and non-food brands in the grocery, drug, mass merchandising, club store, food service and convenience channels across Canada. IHR spoke to Concord CEO, Mike Donald, about the addition of Indigo to the Concord group, and what it means for the future.

IHR: What was the vision behind the acquisition? Mike Donald: Indigo is regarded as a gold standard in the

natural product brokerage business. They are only in Western Canada so the vision is to offer the same great services in the east using the help and rapport of Concord National in mainstream and the same ethics, connections and methods of Indigo in the natural channel. We looked at the volume and growth Indigo was driving in what we thought was a small channel and knew immediately that we had to jump on the opportunity. The reason it came together so well is that our philosophy and ethics match very well. Natural is a very different community than traditional, but when two organizations hold integrity up as high as we both do, the marriage makes a lot of sense.

IHR: How will Indigo be integrated by Concord National? MD: Indigo will not be integrated by Concord. Most people

involved in the natural channel also lead a much more natural way of life, the culture is much different. The business is so much more than the traditional great product, at a great price, with great promotions behind it. From the consumers to retailers to manufacturers and brokers, this is a community of unique and authentic products, people and companies that visibly care about others and care about our planet. And those few words describe hundreds of things that most people never concern themselves with. Concord will help Indigo where it can, and Indigo will help Concord. There are some back end efficiencies that we can gleam that will make both companies stronger and build our clients brands quicker. IHR: Will there be a change in the product mix?

MD: No, except for the new business that we have attracted and continue to attract.

IHR: Will there be a change in the service mix? How will this

change the Canadian brokerage landscape?

MD: The service mix will improve in the traditional channel

and get a little more sophisticated in the natural channel. Based on who we saw at the CHFA show in Vancouver there is a lot of attention being paid to Natural now. You’ll start to see more traditional brokers in natural and more natural products in the traditional channel. The retailers and brokers that ignored natural up until now will start to jump on board and the ones that are ahead of the curve will start to get more aggressive to protect their lead. It’s going to be a lot of fun to watch. IHR

SPRING / SUMMER 2013 • IHRMAGAZINE.COM

industry news

Industry News some 1,500 stores in 10 provinces with retail banners that include Sobeys, IGA, Foodland, FreshCo, Price Chopper and Thrifty Foods.

Sobeys Buys Safeway Canada in Game-Changing Deal

Empire Co Ltd, the operator of Canadian grocery chain Sobeys, is acquiring Safeway Inc’s assets in Canada for $5.8 billion, in a move that will nearly double its reach in western provinces. Along with 213 Safeway grocery stores — more than 60 per cent of which are in Calgary, Vancouver, Edmonton and Winnipeg — cementing its position as Canada’s No. 2 grocer behind Loblaws at a time when competition from U.S. retailers WalMart Stores and Target is heating up. Sobeys will also acquire: • 199 in-store pharmacies • 62 gas stations • 10 liquor stores • 4 primary distribution centres and a related wholesale business • 12 manufacturing facilities • Sobeys will get $1.8 billion worth of real estate in the deal “We think it is a game changing deal for Empire,” said Barry Schwartz, a portfolio manager with Baskin Financial, which owns more than 100,000 shares in Empire. “This is a huge win for (Empire’s) shareholders, and we expect a significant uptick in the stock,” he said. Safeway’s Canadian arm generated sales of $6.7 billion and over $500 million in adjusted earnings before interest, taxes, depreciation and amortization in the 12 months ended March 23. The deal is expected to boost Empire’s earnings immediately following the close of the transaction late this year. The company expects roughly $200 million in annual savings within three years following the close of the deal by integrating distribution networks and reducing procurement, administration and marketing costs.

The takeover, subject to a review by the Competition Bureau, is expected to close later this year. Empire declined to comment on whether it expects the agency to compel it to divest certain assets to win approval.

Retail Council of Canada Seeks Clarity on PST Hike Implementation

The Retail Council of Canada (RCC) has requested clarification and formal direction from Manitoba’s Minister of Finance as to how retailers should proceed with the implementation of the scheduled increase of the provincial sales tax from seven to eight per cent on July 1, 2013. “The decision to raise the PST without public approval by referendum has put Manitoba retailers in a very difficult situation and has caused a great deal of confusion, both among businesses collecting the PST and with consumers,” says Lanny McInnes, RCC’s director, Prairies. “Retailers are concerned that they are being put in an untenable position in which they must either implement an increase that has not yet been authorized by law or, if they adhere to Manitoba’s current law, they will be retroactively penalized for not collecting the increased PST,” added McInnes. RCC requests that the Minister of Finance disclose to retailers and consumers any legal advice that he may have received indicating that the PST may be collected at a different rate than that authorized by law.

Empire, which has been in the food business for over a century, already owns

IHRMAGAZINE.COM • SPRING / SUMMER - 2013

Canadian Association of Chain Drug Stores honours Don Bird

The Canadian Association of Chain Drug Stores has awarded its distinguished associate of the year award to industry veteran Don Bird of Weber Naturals for his contribution to the industry. “Launching WN Pharmaceuticals from nothing and seeing our products sold in 40 different countries is my proudest achievement by far,” says Bird during an interview with IHR. This award honours a CACDS Associate in good standing who displays commitment to CACDS initiatives and/or committees and initiatives and contributes to the advancement of pharmacy. CACDS advocates with all levels of government to ensure a full understanding of the potential impact of issues and legislation on the business of community pharmacy and its ability to deliver effective, frontline health care.

Nestlé Eyes Fennel Flower Compound

Swiss food giant Nestlé has filed a patent application to tap a Nigella sativa compound. For a thousand years, peasants from across Asia and the Middle East have used the plant (also known as karayal, fennel flower, nutmeg flower or black cumin), as a cure-all remedy. Nestlé’s interest has sparked an online petition from activists who accused the company of trying to

For details, write #110 on Free Info Page, page 72.

industry news

prevent people from growing fennel flowers. In an interview with IHR, Nestlé spokesperson Hilary Green says “we have filed patent application for a specific use of a compound that can be extracted from Nigella sativa. This is very different from filing a patent on the fennel flower plant itself because we are not trying to, and do not want to, monopolize the use of the plant, and nor are we trying to prevent traditional uses of this plant.” The company goes on to say, “our patent application is for what we consider to be a novel, and non-obvious use of thymoquinone, including extracts of nigella sativa seeds that are rich in

thymoquinine. Our patent application concerns only food allergy, and not any other potential health benefits of fennel flower.” A 2008 study by the Centers for Disease Control and Prevention in the U.S. showed that there was an 18 percent increase in food allergy between 1997 and 2007. With a market capitalization over $230 billion, Nestlé is one of the world’s most successful food and beverage companies with a broad range of products. To date, 15 controlled human studies involving Nigella sativa were identified. Used as either an oil of the seed, or as a powder of the seed, the herb has shown promise in a very wide array of important and common medical conditions.

Tate & Lyle Acquires Oat Extract Producer

British sugar giant Tate & Lyle acquires Swedish oat extract producer Biovelop’s for an undisclosed sum. Operating from a facility in Kimstad, Sweden, Biovelop produces oat beta glucan under the name PromOat in the food, beverage and supplement markets. It also markets products for the cosmetics industry under the brand name Avenacare. The acquisition is expected to help Tate & Lyle broaden its product line beyond its core sugar business. “The addition of Biovelop’s soluble oat beta glucan, supported by strong scientific health claims, represents an excellent acquisition to Tate & Lyle existing fibres, health and wellness portfolios,” says Olivier Rigaud, president of Specialty Food Ingredients at Tate & Lyle. The deal is part of Tate & Lyle’s effort to diversify into the high-value growth areas in the health and wellness category. The special oat beta glucan is extracted using a patented technology to provide soothing and moisturizing properties for a variety of personal, hair and skin care products. The oats used in the ingredients are believed to be non-GMO in origin while

Demand for Natural Skin Care Products Expected to Grow

Transparency Market Research expects the market for organic and natural cosmetics to reach $19.2 billion in value by 2015. The firm believes the trend will continue to grow as consumers become increasingly worried about the presence of chemicals and animal products in most cosmetics. “Growing concerns regarding skin care is particularly fuelling the robust growth across all market segments and geographies. Increasing demand for organic and natural cosmetic and toiletries products is creating new growth opportunities in this field which is encouraging the emergence of new market players in this arena,” says TMR in a report. Moreover, technology and innovation are expected to continue to boost the natural cosmetics market. The report says the U.S. and Europe have the maximum potential in terms of value and volume, followed by Asia-Pacific.

IHRMAGAZINE.COM • SPRING / SUMMER - 2013

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Want more information about MetaSlim® Weight Management products? 1-800-430-7898 | www.webbernaturals.com 1. Morimoto, C., Satoh, Y., Hara, M., Inoue, S., Tsujita, T., Okuda, H. (2005). Anti-obese action of raspberry ketone. Life Sci, 77(2):194-204. Epub 2005 Feb 25. 2. Park, K.S. (2010). Raspberry ketone increases both lipolysis and fatty acid oxidation in 3T3-L1 adipocytes. Planta Med, 76(15):1654-8. doi: 10.1055/s-0030-1249860. Epub 2010 Apr 27. 3. Dulloo, A.G., Duret, C., Rohrer, D., Girardier, L., Mensi, N., Fathi, M., Chantre, P., Vandermander, J. (1999). Efficacy of a green tea extract rich in catechin polyphenols and caffeine in increasing 24-h energy expenditure and fat oxidation in humans. Am J Clin Nutr, 70(6):1040-5.

industry news

the extraction process is chemical-free and environmentally-friendly. Biovelop is a relatively new company. It was founded in 2005 and sold its first commercial product in 2010.

“After careful consideration, we are confident that this partnership will positively support our evolution within the changing natural grocery business in Canada.”

New Age Marketing Merges with International Marketing Inc.

The combined company has appointed Sterling Perley as national director of brand management and Nancy Anderson as director of sales and marketing for eastern Canada.

New Age Marketing & Brand Management Inc and International Marketing Inc are joining forces. Based in Vancouver, IMI has been representing the interests of U.S., Canadian and international growers and manufacturers within the natural and organic food industry in Canada since 1988. “The merger of New Age Marketing and International Marketing Inc. brings together our companies in a highly competitive market and strengthens our position as a truly 100 per cent Canadian-owned national brokerage company, servicing the natural, conventional, grocery, drug, club and convenience channels of distribution,” says Frank Gallucci, president of New Age Marketing. “The combination of the resources and expertise will further help expand and secure the service levels we have committed to our vendor partners,” says Phil Desnoyers, president of IMI.

U.S. Lawmakers Criticize Energy Drink Makers

U.S. Senate Majority Whip Dick Durbin (D-Ill.), along with U.S. Sen. Richard Blumenthal (D-CT), sent letters to energy drink makers last March, urging them to stop marketing to children. The Department of Health and Human Services says emergency room visits related to energy drink consumption have doubled to 20,000 between 2007 and 2011. The U.S. Food and Drug Administration has also released a number of adverse event reports (AERs) associated with energy drink products. “Consuming large quantities of caffeine can have serious health consequences, including caffeine toxicity, stroke, anxiety, arrhythmia, and in some cases death,” wrote Durbin. “Young people are especially susceptible to suffering

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adverse effects because energy drinks market to youth, their bodies are not accustomed to caffeine, and energy drinks contain high levels of caffeine and stimulating additives that may interact when used in combination.” In letters to the CEOs of Monster, Red Bull and Rockstar, Durbin and Blumenthal cited examples of marketing, such as energy drinks sponsoring high school sporting events and Little League games. A spokesman for Red Bull said the labels on its energy drink specifically state that the product is not intended for use by children and that they follow other guidelines set by the American Beverage Association, such as avoiding marketing energy drinks to kids. Other energy drink companies could not be reached for comment. The American Academy of Pediatrics has said that adolescents should consume no more than 100 milligrams of caffeine a day. Energy drinks can contain 160 milligrams of caffeine in a 16-ounce can, not including additives.

Simon & Luke Files Lawsuit Against Townsend Farms and Costco Houston-based food safety law firm Simon & Luke, with co-counsel Gomez & Iagmin, filed the first lawsuit stemming

industry news from a multi-state Hepatitis A outbreak linked to consumption of a frozen berry mix manufactured by Oregon-based Townsend Farms and sold at Costco stores. The lawsuit was filed against Townsend Farms and Costco Corporation in the Superior Court of Los Angeles County, California on behalf of Lynda Brackenridge, a 51-year old California resident. Brackenridge consumed Townsend Farms Organic Anti-Oxidant Blend berries she had purchased at a nearby Costco store. On June 1, Lynda Brackenbridge’s hepatologist informed her that she had contracted Hepatitis A, and that she would need to be isolated from other patients. Brackenridge is one of at least 30 victims from California, Colorado, Arizona, New Mexico and Nevada who have contracted Hepatitis A linked to frozen Townsend Farm berries. The outbreak has led the Centers for Disease Control and Prevention and the U.S. Food and Drug Administration to advise all potential consumers against consuming this product.

Westin Foods Acquires Dominex Natural Foods

Westin Foods expands its health and wellness division with the acquisition of a majority interest in Dominex to create Dominex Natural Foods. “We are excited about the opportunity to grow the health and wellness segment of our business and are confident about the many great opportunities ahead,” says Scott Carlson, CEO of Westin Foods. Dominex currently offers vegan and vegetarian eggplant appetizers and entrées. The transaction will allow Westin Foods to expand its presence in the retail and food service arena. “In the months ahead, we will be launching an innovative line extension that will join our brand’s legacy with the expertise of Westin Foods to deliver delicious products that will incorporate vegetables beyond eggplant. Our customers are going to love what we have in store,” says John G. McGarvey, president of Dominex and new president of Dominex Natural Foods. The terms of the deal have not been disclosed. The company will be headquartered in Omaha, Nebraska, but Dominex Natural Foods will maintain offices in St. Augustine, Florida.

Bumble Bee Foods Introduces New MSCCertified Products

Bumble Bee Foods introduces a branded line of products certified by the Marine Stewardship Council (MSC). A portion of the proceeds of the sale of Wild Selections will support the World Wildlife Fund’s (WWF) efforts to protect marine life and expand sustainable fishing practices globally. Bumble Bee President and CEO Chris Lischewski said that the company is committing thirteen cents per can, for a minimum of one million dollars, from the sale of Wild Selections products over the next five years. “As a founding member of the International Seafood Sustainability Foundation working alongside WWF and other leaders in marine resource management, we saw a great opportunity to introduce a line of MSC-certified

products that would help further our collective mission to promote sustainable fishing practices and to protect fisheries stocks for generations to come,” Lischewski said. The first products to be launched under Wild Selections in 2013 will include MSC-certified albacore and light meat tuna. Later phases will include MSCcertified salmon, shrimp, clams and sardines.

LAYN USA Launches Natural Monk Fruit Sweeteners

LAYN USA introduced its Go-Luo brand monk fruit sweeteners and its Lovia brand sweetener at SupplySide Marketplace in New York last May. “LAYN is a pioneer in the development of the natural sweetener category and is pleased to offer a broad range of natural

Puresource Hosts its Second Open House

Natural health product distributor Puresource hosted its second open house on May 25th in Guelph, Ontario. It was an opportunity for retailers to enjoy a tabletop show with brokers and vendors offering show floor deals. Seminars featured Jodi Koberinski, Executive Director of the Organic Council of Ontario and Marva Ward, CNP focusing on new strategies of selling weight loss in today’s NPN environment. SPRING / SUMMER 2013 • IHRMAGAZINE.COM

industry news Puresource supplies over 150 brands representing over 4400 products to the independent health channel and mass grocery and drug chains. Next year’s 25th anniversary celebration event!

sweeteners based on monk fruit and stevia to manufacturers,” said Chris Tower, President of LAYN USA, Inc. Monk fruit is increasingly popular as a superior tasting, natural, zerocalorie, high-intensity sweetener. LAYN’s Go-Luo brand is available is several concentrations up to 55% mogroside-v, approximately 250 times sweeter than sugar. LAYN also introduced Lovia, a unique combination of stevia leaf and monk fruit. Go-Luo and Lovia can be formulated into beverages, sodas, dairy, yogurt, protein powders, bakery items, cereals, tablets, bars, candies, tabletop sweeteners and a variety of other food applications. Both of LAYN’s stevia and monk fruit ingredients have secured GRAS published status on the Food & Drug Administration (FDA) GRAS Notice Inventory. LAYN manages the traceability for the entire value chain where it controls its proprietary seedlings, cultivates the monk fruit and stevia as well as produces the final sweetener.

Health Canada Approves Homeopathic Mosquito Repellent Pill

Health Canada has approved the country’s first oral bug repellent. Mozi-Q is made from staphysagria, a plant-derived substance that was discovered to be a natural insect repellent in 1960. While results vary from person to person 90 per cent of those who take the product have noticed that mozzies, black flies and other bugs stay away. “Mozi-Q allows people to enjoy the outdoors without being bugged, says Erin Bosch, CEO and founder of Xerion Homeopathie. Mozi-Q is designed to change a person’s susceptibility to bites so that insects are less likely to prey on them. After taking Mozi-Q, most notice a drastic reduction, if not a near thedisappearance, of mosquitoes nipping at their skin. Those usually considered lunch by mozzies may still incur a few bites, but the effects subside extremely quickly without the usual suffering and swelling left by the six-legged bloodsuckers.

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Nature’s Bounty Announces Winners of ‘Share the Bounty’ Contest

Nature’s Bounty Vitamins has announced the winners of its ‘Share the Bounty’ $50,000 charity giveaway. Canadians were asked to vote for their favourite charities from a list of nominees provided by the public. More than 350,000 votes were received during the contest. The Grand Prize winner, by popular vote, was the Alberta Animal Rescue Crew Society, an organization whose mission it is to improve the lives of animals by rescuing and providing sanctuary to any who have been abandoned, surrendered or abused. Second prize went to Reach for the Rainbow, a charity that is dedicated to providing integrated summer camp programs for children with disabilities as well as activities and opportunities for special needs children. The Third place winner by popular vote was Mountainaire Avian Rescue Society, who works to conserve and protect native wildlife and its natural habitat through education and rehabilitation. An additional three nominated charitable organizations were selected by random drawing to each receive a $5,000 donation from Nature’s Bounty. The organizations were Autism Dog Services Incorporated, Salthaven Wildlife Rehabilitation, Education Centre Inc and Oopsadazy Rescue and Sanctuary Society. “We would like to congratulate each of the winning organizations and wish them luck in their continued work on behalf of those who will benefit from these funds,” said Carlson Teakle, Vice President and General Manager of Nature’s Bounty Canada. IHR

Company Profile

Mill Creek Botanicals FOR ANY NEW VENTURE, 38 years in business is hard to fathom. Getting to that point with an all-star product line backed by extremely consistent quality and delivery makes the task seem even more difficult. For Mill Creek Botanicals CEO Panch Prasad, building the Mill Creek brand into one of the most recognized in the natural health field has been a journey of passion.

When Prasad purchased Mill Creek in early 2000, he had big plans. The trained chemist and natural product advocate had spent 10 years representing the brand as an independent broker. He personally used many of the products himself and thought there was still potential to grow the brand’s lineup and expand its market share. Today, Mill Creek is a global brand found in more than 45 countries that enjoys a high level of brand awareness in the natural products industry. While Mill Creek had a complete product line a decade ago, Prasad’s drive for innovation and growth has helped it grow to more than 100 SKU’s. The company also introduced Mill Creek Baby, a collection of proprietary tear-free formulations for moisturizing, cleansing and relieving sensitive skin without harmful additives. The idea for a baby line came to Prasad from personal experience. He has two grandchildren and a new baby of his own and found so many formulas weren’t as clean and natural as they claimed. Mill Creek could do better he thought. And it did.

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“Babies are so innocent, and it can be so frustrating when you see their skin become irritated because a formulation isn’t as natural as it says it is on the bottle,” Prasad says. Prasad’s drive to add more unique proprietary formulations also led to his creating another Mill Creek sub-category, Novacell, a new Plant Stem Cell rejuvenating solution. Using advanced natraceutical technology, this product is formulated with mung bean plant stem cells, peptides and antioxidants. The line’s daily cleanser, facial serum, eye balm, night cream and day lotion are created with the unique characteristic to self-regenerate as a complete & functional entity to fight aging while maintaining natural integrity and the environment. “I love growing a company, but it’s important to me that we do it right. We still continue to search for the best, purest ingredients that can be used in a way that is respectful of the environment from which they came,” Prasad says. With its many unique and proprietary formulations, Mill Creek also adheres to strict PETA (People for the Ethical Treatment of Animals) guidelines with all their products. Above all, Prasad says Mill Creek has been able to separate itself from the competition for two reasons – quality and price. “Great health and great natural products should not only be for the upper class.” Prasad adds, “our greatest challenge

in this industry is creating the best products at a price everyone can afford. I’m proud of the fact that Mill Creek has been doing that for quite some time.” Started in 1975, Mill Creek has gained its share of industry recognition. Most recently in 2013 it won Delicious Livings best beauty and body award; in 2009 and 2010 it won the Best of Beauty Award from Better Nutrition Magazine. In 2003, it won a Natural Products Showcase Award for best packaging and its environmentally sensitive practices at the Natural Product Expo. Once again, in 2011 & 2012, Mill Creek won Natural Choice Awards from Whole Foods Magazine.

“We still continue to search for the best, purest ingredients that can be used in a way that is respectful of the environment from which they came,” Prasad says.

With its global reach to more than 45 countries, including Asia, Europe and South America, the Nevada-based company is a prominent U.S. exporter. In 2007, Prasad was recognized with the “Exporter of the Year” award from the U.S. Department of Commerce. Prasad believes the company has an obligation to give back to its community. Mill Creek supports the Mayo Clinic for its Cancer and Parkinson’s disease research and is involved with Vitamin Angels, a global initiative that helps undernourished children achieve better health with natural supplements. Mill Creek also donates to local Nevada charities. IHR

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File photos: Above, Willie Pelzer (fourth from the right in back row) poses with his employees at Sunny Crunch Foods Ltdâ&#x20AC;&#x2122;s plant in Markham, Ontario in 1975. Below, two employees bake granola trays in an industrial oven at Sunny Crunch Foods Ltdâ&#x20AC;&#x2122;s plant in Markham, Ontario in 1975. Courtesy of Richard Pelzer.

Remembering A Health Food Pioneer Willie Pelzer 1934-2013 By Lio Perron THE LIFE STORY OF THE MAN AFFECTIONATELY KNOWN AS THE

Born in a German family from Lemberg, Poland, Withold Pelzer sailed across the Atlantic to chart a new life in North America after the end of the Second World War. Unfazed by his lack of post-secondary education, his rudimentary English and the backlash against German immigrants at the time, the hard-working 17-year-old found work in the sugar beet fields of Lethbridge, Alberta. A few years later, he moved to Saskatchewan to work on a grain farm. In 1961, after a decade in Western Canada, Pelzer and his young bride moved to Ontario to find new opportunities.

“GRANOLA KING” IS A COMPELLING ONE.

Five decades later, through sheer willpower, Pelzer went on to invent granola in his kitchen. He built a sizable fortune and had an unprecedented impact on Canada’s natural food industry with a string of innovative food products. Today, Sunny Crunch Foods Ltd. has a staff of 100 employees producing an impressive range of products, including granola cereal, nutrition bars, meal replacement bars, sports nutrition bars, energy bars, snack bars, protein powders and herbal capsules. The company’s products are sold in Canada and around the world under different labels.

“It all goes back to grandma’s recipe. She would take oats, sweeten them with honey and served them warm for dessert. Kids just loved it. No artificial preservatives, just whole grain goodness and organic honey,” explains his son Richard Pelzer who has succeeded his father as company president. The self-made millionaire gambled his life on a simple family recipe in an industry that was struggling to gain acceptance and recognition in the late 1960s. On Sunny Crunch’s website, Pelzer is quoted as saying “Porridge was one of the only foods I knew of that used rolled oats and I wanted to come up with a new kind of food that would make use of rolled oats and other healthy grains in an attractive new way.” However, the road to riches was a rocky one. “Dominion was the dominant chain back then. He would visit the personal buyer of each store and try to convince them to sell his granola cereal, but the answer was always the same. This is bird seeds, this is not a product for consumers. They’ll never eat this. No thanks, please go away,” says Richard Pelzer.

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Canadian Health Food Association honours Willie Pelzer at the Hilton Bonaventure Hotel in Montreal. Courtesy of Richard Pelzer.

“Willie Pelzer assumed the presidency of the CHFA for a second time at a critical juncture in its history. His energy and personal generosity provided a stable financial platform that allowed the Association to grow into the dynamic organization it is today,” says William Gall, past CHFA Board Chair. THE BIRTH OF CANADA’S NATURAL HEALTH PRODUCT INDUSTRY

Despite repeated setbacks, Willie Pelzer took it all in stride. The dream within his heart was too intense for him to quit in the face of temporary defeat. In 1964, Pelzer, Bill Cooper, Walt Zimmerman, Al Smith, Lionel Pasen and other likeminded health food pioneers banded together to create the Canadian Health Food Association.

importers of natural and organic products. These can include foods, vitamin and mineral supplements, herbal products, homeopathics, sports nutrition products, and health and beauty aids.

“Willie’s talent was getting rid of all the clutter. He saw the basic problem. Very often we would all get lost in the minutiae that doesn’t count. He got rid of all that and got down to the bare facts. It was a pleasure working with him,” explains industry veteran Lionel Pasen, founder of the Toronto-based company, Natural Products Consulting Corp.

Since its creation, the CHFA has played a pivotal role in educating the public about its members’ products. It has also successfully lobbied governments to help grow and protect the industry. Today the natural health product industry is worth $3 billion annually to the Canadian economy. However, in the early days the CHFA remained wary of unsolicited government interference. For example, in the 1970s the Ontario government toyed with the idea of restricting the sale of vitamins to pharmacies alone. It’s a move both Pasen and Pelzer were determined to prevent.

The CHFA now represents over 1,000 businesses across Canada. It’s the country’s largest trade association dedicated to natural health and organic products. Members include manufacturers, retailers, wholesalers, distributors, and

“We met with Dr Allan Dyer who was a senior civil servant representing the Ontario government. Willie and I walked out of the meeting saying ‘Dr. Dyer, you’ll request the next meeting with us’. We went down to a restaurant and I said to

IHRMAGAZINE.COM • SPRING / SUMMER 2013

Sunny Crunch Foods Ltdâ&#x20AC;&#x2122;s first commercial granola cereal package. Circa 1969. Courtesy of Richard Pelzer.

Willie, what are we going to do?” says Pasen with a chuckle. “We started a letter campaign. Fortunately, there was a postal strike at the time. By the time the strike was over we had collected 40,000 signatures and the government backed off.” Willie Pelzer’s life was intricately linked to the Canadian Health Food Association. He presided over the CHFA from 1969 to 1971, and again from 1991 to 1997. “Willie Pelzer assumed the presidency of the CHFA for a second time at a critical juncture in its history. His energy and personal generosity provided a stable financial platform that allowed the Association to grow into the dynamic organization it is today,” says William Gall, past CHFA Board Chair. By the early 1990s, the industry wanted its own regulation. With the support of health food stores, they launched another letter campaign. The CHFA lobbied federal Health Minister Allan Rock, whose wife was a natural health aficionado. The government accepted all 53 recommendations put forward by the industry and created a new directorate at Health Canada to regulate the industry.

A RECIPE FOR SUCCESS

While Pelzer’s commitment to the CHFA was never in doubt, making granola a mainstream food item remained his overriding priority. In the late 1960s and early 1970s health

demonstration at my store for one weekend and we’ll take it from there.” It was a daunting task. If Pelzer had failed to capture people’s imagination, it likely would have been a fatal blow to his dream. Just like a “clutch” athlete, Pelzer had an uncanny ability to perform above expectations in high-pressure situations. When the time came, he loaded the front seat, the back seat and the trunk of his car and drove to the supermarket to set up a booth in the cereal aisle. By the end of the weekend he had sold out. In one weekend, Pelzer had won over customers. The growing popularity of granola wasn’t lost on Dominion buyers. One by one, they started ordering his granola cereal in much larger quantities. Despite their early success, he and Joy kept reinvesting every penny back into the business when they first launched Sunny Crunch Foods Ltd. “We worked day and night,” says Joy. “We would start at eight in the morning and go until two in the morning when we first opened our little factory. We were baking and packaging for delivery the next day. We took jobs cleaning offices to make extra money. We had to do this for about ten years.”

“We worked day and night,” says Joy. “We would start at eight in the morning and go until two in the morning when we first opened our little factory. We were baking and packaging for delivery the next day. We took jobs cleaning offices to make extra money. We had to do this for about ten years.” food stores were few and far between. In order to reach the largest number of customers, Pelzer and his wife set their sights on big retailers.

They eventually found success, but it didn’t change Pelzer, according to those closest to him. He remained generous towards the CHFA and gregarious toward his employees.

“We would make stands in grocery stores and shopping malls and handout granola for people to taste and tell them where they can buy it,” explains his wife, Joy Pelzer. These forays into large supermarkets fueled his desire to achieve success despite his inability to capture the imagination of big grocery chain buyers.

“When you make a mistake, bosses usually get upset and it might be cause for dismissal,” says Vasco Rego, who has been plant manager at Sunny Crunch Foods Ltd for the past 36 years. “He saw mistakes as a positive because he felt people usually learn from them.”

Not one to take no for an answer, Pelzer kept going back to meet the same buyers over and over again. “One day, he got to the last buyer and of course he said ‘no’ because that’s what they all said,” explains Richard. “As he was walking out of the office, for whatever reason, he got an inspiration and turned around. For the next 20 minutes, he preached a sermon to the buyer. He doesn’t know where it came from, he can’t recall what he said. For 20 minutes, he pointed his finger at the buyer telling him he’s making a mistake. The buyer said, Willie I want you to do a

IHRMAGAZINE.COM • SPRING / SUMMER 2013

Through his street-smarts, resourcefulness, stubbornness and hard work, Pelzer created a health food giant out of nothing. At the time of his death, he was at the top of the food chain as one of the richest and most successful entrepreneurs in Canada’s health food industry. Willie Pelzer passed away at the Mackenzie Health hospital in Richmond Hill on Friday, May 17 with his family at his side. He was 79 years old. IHR

Sunny Crunch Foods Ltdâ&#x20AC;&#x2122;s plant in Markham, Ontario in 1975. Courtesy of Richard Pelzer.

feature

The Future of New Ingredients Establishing Focus as the Industry Evolves By Steve Hanson If you are in the midst of marketing a new or novel ingredient, it is likely that you have been asked, “Is it an NDI?” The uncertainty of the Food and Drug Administration’s stance on the issue of New Dietary Ingredients (NDIs) has prompted many nutritional manufacturers to take a second look when considering new ingredients. It’s also brought about additional requirements for raw material suppliers

in providing greater safety, legal and clinical support when introducing a new ingredient.

An evolving industry – We’re growing up

As an industry we’re transitioning from the carefree stage of the adolescent to one of adult responsibility. The rules are being defined and companies have to abide or suffer the consequences. This means making adult decisions that involve phrases like “risk management”

or “reducing liabilities.” It means adhering to GMPs and providing a deeper level of scientific support for ingredients and for finished products.

A Brief Perspective

After the passage of DSHEA in the 1990s, the industry witnessed an immense proliferation of ingredients within an “herb of the year” mentality. These ingredients were introduced based on a broad interpretation of DSHEA, along with unclear requirements for substantiating safety and effectiveness. Throughout the 2000s, the ingredient

philosophy converted to a price savings one and supplement manufacturers seemed most interested in saving money, oftentimes with little regard for product quality. Now with GMP implementation and enforcement, as well as the “onhiatus” draft NDI guidance being issued in 2011, we’re experiencing an industry balancing where quality and scientific validation are emerging due to increased regulatory scrutiny and enforcement. It’s been a necessary adjustment but also generates hesitation when developing new ingredients or deciding to include one in a finished product formula. (Remember, “risk management.”) To further add to this dilemma is a

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dynamic and growing nutrition industry outperforming many other industries in spite of an overall weak U.S. economic climate. Within this context, completely new ingredients are becoming less common, and both ingredient suppliers and finished product companies are looking for new avenues of differentiation with existing ingredients. Although completely new ingredient types will be available, the number of completely new ingredients won’t equal the numbers that were introduced early in the industry’s history. Alternatively, many of the new opportunities will create better, more effective existing ingredients through more advanced processes, delivery systems or new scientific support. The question then becomes, “When organizing my company, what initiatives should serve as a strategic focal point for growth?”

feature “Alternatively, many of the new opportunities will create better, more effective existing ingredients through more advanced processes, delivery systems or new scientific support.”

The Long View for R&D

With a greater emphasis on safety, GMPs and clinical support, the nature of R&D has changed for many ingredient suppliers. Where once a company could have a few people responsible for developing studies or provide technical support for customers, now companies have entire research departments focused on ingredient development, application research and support documentation. Also, the interaction among marketing, sales and R&D has become greater. No longer can R&D conduct a study for the sake of research without consideration for the marketing and sales implications. These studies have to be well thought out to offer optimal outcomes with claims that can be supported and validated.

The Need for Long-term R&D Planning

With these increased regulatory and market demands, R&D has become a primary function for ingredient suppliers. R&D initiatives require significantly more foresight now then was applied 10 years ago. Today, ingredient lifecycles

are longer and plans need to account for this shift. Ingredients such as green tea and turmeric have been around a long time and have renewed interest based on increased media attention, new published studies or a new, unique ingredient form. One ingredient company that has invested significantly in R&D over the long term is the botanical supplier Indena. Its continued investment in clinical research and ingredient development has maintained relevance for multiple ingredient categories. One such category example is for turmeric/curcumin with its Meriva Bioavailable Curcumin. Turmeric/ curcumin ingredients and supplements have been on the market for decades. Even though curcumin had been studied in almost 3,000 pre-clinical trials, the results showed inconsistent clinical effectiveness. Indena scientists attributed this to poor curcumin absorption and developed Meriva as a curcumin/soy lecithin combination significantly improving oral absorption and bioavailability. Indena has confirmed the effectiveness of Meriva with three published clinical studies. These results have contributed to category growth for turmeric products overall as well as for supplements containing Meriva.

Finished Supplement Companies Need a Plan, Too

Although we’ve primarily discussed the growing importance of R&D for ingredient suppliers, it’s also becoming vital for finished supplement manufacturers. Within the “on hiatus” draft NDI guidance, the proposed regulations increased requirements for finished product companies to conduct research supporting its products. Currently, numerous finished supplement products rely only on research provided by ingredient suppliers. This research provides support for a specific ingredient but does not take into account the results when an ingredient is combined with multiple other ingredients. There is too little supporting research being done on finished products. Through the NDI draft guidance, we’ve already been provided with an indication of this forthcoming shift so companies adopting a research strategy today will be ahead of those that don’t. In order to have continued and lasting success, a long-term R&D plan should

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feature “Where once a company could have a few people responsible for developing studies or provide technical support for customers, now companies have entire research departments focused on ingredient development, application research and support documentation.”

for health is in the pharmaceutical industry. It is anticipated that many of those technologies will have crossover applications in supplements and foods. Nanotechnology is utilized to increase the bioavailability of ingredients, remove potential allergens or to impart new physical, visual, or sensory properties. The potential for innovation through nanotechnology is vast, however the small scale of nanoparticles may react in unpredictable ways with other substances. Since nanotechnology is early on its development, there may be some consumer skepticism associated with it. All questions aside, nanotechnology holds the potential to inject a new burst of ingredients in the not-so-distant future.

be in place. The plan needs to account for new product discovery as well as fully understanding how your products work with supporting clinical information. This initiative needs to take a long view understanding that ingredient and product life cycles for the industry are longer than previous and can be more sustained with proper planning.

The Rise of Technology Platforms

As we witness the slowdown of the number of “new” ingredients introduced, the number of technology platforms will increase. A technology platform is a unique (often proprietary) development that can be applied across a number of ingredients, improving an ingredient’s effectiveness or allowing it to be utilized in a new delivery format. Advancements in bioavailability, delivery systems or novel, more sustainable manufacturing processes are representative of these technology platforms. The industry is witnessing new ingredients being introduced touting improved bioavailability or new delivery systems so ingredients can be incorporated in a wide variety of forms such as soft chews, gummies or beverages. This trend will continue and a couple of developing technologies are worth sharing.

Nanotechnology – more with less One technology receiving attention is nanotechnology. Recently, the USDA provided a grant to the University of Massachusetts Amherst to fund nanoparticle research in food. Although some initial research indicates that some nanoparticles may be harmful, other studies have shown significant benefits. Already the term “nanoceutical” has been created and is utilized in several supplement lines. Nanotechnology can be defined as engineering at a very small scale. Most of the existing work in nanotechnology

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Whole-Cell Plant Actives from Plant Cell Culture Technology Plant cell culture technology is the growth and reproduction of plants, plant tissues and/or plant cells in a controlled environment. Although ingredients produced from plant cell culture are being utilized in the U.S. cosmetic industry and in other country’s supplement markets, their entry into the U.S. supplement industry has only just begun. The process of producing ingredients from plant cell culture technology utilizes methods where

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“A broadened view of category marketing, asks the question, “how can we create an overall bigger pie and how can our brand be the one that benefits?” the whole plant cell remains intact throughout the process and plant cells are carefully selected to exhibit the best concentration and distribution of targeted actives naturally inherent to the plant. The advantage of producing plant actives through this technology is that it is sustainable, producing an unlimited amount of plant cells without destroying rare and endangered plant species or environments. The technology also allows you to produce targeted actives from plant cells without the unwanted compounds. The leading company for plant cell culture technology is DianaPlantSciences in Portland, Oregon. DianaPlantSciences is a company of the DIANA Group, a global company based in Europe focused on natural ingredients. Developed from plant cell culture technology, DianaPlantSciences introduced its first ingredient, Cocovanol Cocoa Powder, in November 2012 and is seeking development partners for other ingredient categories.

Technology Platforms Establish Differentiation

The prior examples demonstrate how a particular technology can be utilized across a number of ingredients offering a unique set of attributes along with improved effectiveness. As individual

ingredient categories evolve and grow, these technologies will allow an ingredient to become differentiated from its competitors and help sustain category growth.

A Broadened View of Category Marketing

The current perception of category marketing is viewed as the process of capturing a bigger share of an existing market. If you evaluate the fragmented nature of the nutrition industry, this means you have numerous competitors all fighting for their share of the same pie. This same strategy is applied across each ingredient category where each manufacturer has a vitamin C product, a healthy aging product, an eye health product, etc. This has resulted in vast product lines in order to achieve a small slice of each pie. A broadened view of category marketing, asks the question, “how can we create an overall bigger pie and how can our brand be the one that benefits?” As was witnessed with the lutein market in the late 1990s and the omega-3 market. However, there are very few category champion companies in the industry. A category champion company realizes the most efficient, most productive aspect of branding has nothing to do with a company’s market share but it has everything to do with building awareness for a category. If a company

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builds awareness for the category and is associated as the leader or pioneer within the category, then the company will reap the benefits. This was true for Kemin with “lutein” (FloraGLO Lutein) as well as Ocean Nutrition “omega-3” (MEG-3). Oftentimes, category building is associated with defining a new category but considering that most of the hundreds of ingredients within our industry have very little, if any, consumer awareness, the opportunity is available for a number of ingredients and finished products if a relevant message is developed and marketed. In order to build a category from nothing, a company needs to do three things: • The ingredient brand should establish the perception that the brand was the first, the leader, the pioneer, or the original. You should utilize these words to describe your ingredient. • Promote the new category through: - Developing and communicating a core category vocabulary. - Developing and communicating a core benefit that responds to a need inadequately served by existing products and services. - Providing a product that distinctively serves the language of the new category • Back up what you say with reasons, which include scientific studies, manufacturer support and third-party endorsements. By being perceived as the first or leader in the category and then aggressively promoting it, one creates both a

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powerful brand and a rapidly escalating market. Leading companies never lose sight that promoting the category is the most vital aspect in their marketing plan, increasing the size of the pie rather than their slice of the pie. Establishing a brand through category building doesnâ&#x20AC;&#x2122;t necessarily take millions of dollars, just good ideas and passionate people to implement them.

Building a Better Industry

With the global regulatory environment becoming more stringent and a consumer base expecting authenticity and transparency, itâ&#x20AC;&#x2122;s clear the industry is experiencing some growing pains, and the time for cutting corners is no longer. Understanding these challenges and adapting your organization accordingly is an important step in growing this dynamic and vital market. Never has there been such a time where consumers have felt so empowered to take over the their own health decisions. What an exciting time to prove how our products contribute to better health. IHR SPRING / SUMMER 2013 â&#x20AC;˘ IHRMAGAZINE.COM

IHRMAGAZINE.COM • SPRING / SUMMER 2013

HIGH protein

The paleo diet offers opportunity at retail By Richard Levy AS A FORMER RETAILER in an extremely competitive land-

scape, I understand the need to be constantly looking for the next big thing that will attract more customers to your store, thus allowing you the opportunity to enhance the shopping experience. Now you’re bringing something new and exciting to the assortment and hopefully allow for a higher ticket sale and higher margins. We are all aware of the current protein climate and the very competitive arena with all of the “me too” players in the game. Many consumers today are looking for alternatives to whey as more people are realizing their adversities to lactose intolerance and many other digestion and health issues. The disservice to these consumers is that there are not enough retailers catering to these issues and therefore losing market share in the process.

packaged foods today. Hence, the paleo protein supplements are gluten free, allowing all of the nutrients needed from a daily protein supplement. Adding to the category of protein may sound odd, but the opportunity of merchandising the paleo concept in your stores will open the doors to existing customers who do not use a protein supplement for personal reasons such as feeling too full or bloating. This alternative is an excellent addition to their basket which will give them a solution to these concerns and fulfill their daily protein needs. Another opportunity is to bring new consumers (especially those faced with health issues such as Celiac disease) who cannot find them at their local or favourite store to your store specifically for these alternatives. This will give them incentive to visit a retailer that can educate and fulfill their specific needs. The com-

Adding to the category of protein may sound odd, but the opportunity of merchandising the paleo concept in your stores will open the doors to existing customers who do not use a protein supplement for personal reasons such as feeling too full or bloating. The category currently making waves in the industry is the Paleolithic diet. The diet is not a new one by any means. The paleo diet, more commonly known as the “caveman diet”, refers to consuming a diet which mimics that of the hunter/gatherer cavemen of the prehistoric era and consists of lean meats, seafood, vegetables, fruits and nuts. However, we no longer live in a world that provides us the opportunity to indulge in such a diet due to our constant on-the-go state of being. Consumers that are looking for a clean, easily digested protein usually request lactose free versions. Fortunately, the paleo diet caters to these consumers, whether they suffer from Celiac disease, are lactose intolerant or simply choose to keep dairy out of their diet. We are seeing more and more consumers suffering from the above mentioned Celiac disease. Celiac is a condition in which the small intestine cannot absorb the nutrients (protein, fat, carbohydrates, vitamins and minerals) necessary for overall good health. This is due to a substance called gluten which is found in flour which helps bind and prevent crumbling in bread and other baked foods. This is the necessary feature that has made gluten widely used in processed and

mitment to the merchandising of this category is not huge. There are different options, be it powders (beef and/or egg proteins) or bars that are gluten free (be sure it is labelled as such and features the certified gluten free logo) and specific to the paleo diet’s intention. There are not many brands that carry these diet and/or condition specific products so it will be easier to find these niche companies to work with. Be sure to work with brands devoted to assisting these customers to your door which will ultimately benefit your overall sales, margins and profitability. Expanding into this category will allow you the opportunity to retain those customers who are looking for alternatives. It will also allow the opportunity to increase the consumers’ basket, and due to the premium this category carries, gives you the opportunity to increase the average ticket and your margins! Opportunity is knocking, are you going to answer? IHR

SPRING / SUMMER 2013 • IHRMAGAZINE.COM

Tips to help SMBs stay on track throughout 2013 By Nancy Harris

Vice President and General Manager at Sage 50 Accounting – Canadian Edition REVISE YOUR BUSINESS PLANS

At this time of the year, it’s essential you take some time to evaluate which strategies have worked well so far this year and which haven’t, as well as remove or modify the latter from your business plans. When reworking your tactics, don’t focus solely on the state of your business, but rather consider the bigger picture and what’s to come. What is the current and projected state of the economy? Do you have any particular concerns about it? How will the economic environment affect the outcome of your planning?

BE PREPARED

Although the Sage Business Index Survey findings from September 2012 revealed that Canadian businesses were feeling positive about the domestic economy, recently reported news indicates an economic deceleration. Whether it is the economy or an industry trend, situations can shift quickly, so it’s imperative to always strive to be ready for both foreseeable and unforeseeable change. Stay abreast of business and economic news and the creation of an emergency preparedness plan. Only through adequate preparation can you react and adapt as efficiently as possible to the ever-changing economic environment.

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TRACK SPENDING AND CHART YOUR BUDGET

According to the recent Sage Small Business Financial Literacy survey findings, nearly one-fifth (17 per cent) of small businesses struggle to identify the costs that affects their business the most. In order to increase financial control and account for fluctuations in the economy in the new year (like the U.S. fiscal cliff, which can also potentially affect Canadian businesses), finding a way to track spending and charting a budget that works for you is an absolute must. Accounting software is your best ally for this task, since it speeds and simplifies the process greatly, but as long as this task is on your priority list, any tool you are comfortable with should do.

ORGANIZE YOUR DIGITAL AND PHYSICAL WORKSPACE

Only keep the information and materials you absolutely need. It’s always a good idea to do maintenance and cleanup of on-site and cloud systems regularly. Purge old data and documents, and run diagnostics to ensure your systems are in working order. Also, call your solution provider if you encounter any outstanding issues. Performing such tasks will

Efficient client and vendor relations throughout the year will largely depend on having up-todate information about them and your mutual interactions. Go through your database, add any missing information and update or remove superfluous data.

increase your business’ efficiency significantly for the year. Additionally, a clean, top-performing work facility will help decrease the chances of setbacks and missing items, as well as provide a positive impression to transient customers. Clean thoroughly, organize and dispose of outdated and damaged products/items.

PERFORM COMPUTER AND SOFTWARE UPGRADES

After you have finalized all your transactions and processes, things will likely slow down for a few days. Use that time to perform needed computer and software upgrades. These activities can take a bit of time and you will be happy you took care of them once things ramp up again.

offerings and want to pay for them. Achieving customer satisfaction that keeps clients coming back entails much more than selling a good product or service, so be sure to spend some time analysing your strategy. Do you pay enough attention to your customers’ feedback? Is your team providing outstanding customer service and experience? Do you have a reasonable rewards program for loyal customers? Are you sufficiently connected to your clients through your marketing efforts?

DON’T HESITATE TO LOOK OR ASK FOR HELP

EVALUATE – RENEW OR CANCEL

The Sage Small Business Financial Literacy survey also revealed that Canadian small businesses still struggle with certain areas of their business. Although surveyed small businesses are becoming slightly more comfortable with the business activities they reported being a weakness last year, they still recognized the need to know more about financial planning (67 per cent), tax payments (65 per cent), and cash flow (58 per cent). Such issues are completely normal, but they should be addressed to prevent a negative impact on business. If you have struggled with certain aspects of your operations in the past, take some time to do research, consult with a professional or even sign up for a course.

CHECK YOUR CUSTOMER APPRECIATION AND RETENTION STRATEGIES

Nancy Harris is vice president and general manager for Sage 50 Accounting—Canadian Edition. Nancy is responsible for driving the strategic and product direction for Sage 50 Accounting—Canadian Edition and oversees key functional areas including sales and marketing and research and development. A primary focus of her role is strengthening relationships with and cultivating an exceptional customer experience for Sage’s small business customers, partner channels, accountants and bookkeepers. IHR

UPDATE CLIENT AND VENDOR INFORMATION

Efficient client and vendor relations throughout the year will largely depend on having up-to-date information about them and your mutual interactions. Go through your database, add any missing information and update or remove superfluous data. While you probably didn’t subscribe to all your services at the start of a new year, you likely have one or two that may need to be renewed at this time. Before doing so, it would be worthwhile evaluating whether the subscription is something you need. Did you get a good return on investment from it? Is there a vendor that can provide the same service at a better cost?

Your business is nothing without its customers. Whether you provide products or services, you won’t survive unless individuals or other businesses maintain interest in your

IHRMAGAZINE.COM • SPRING / SUMMER 2013

Caffeine

Performance enhancement for activities of prolonged duration By Crystal Chanderbhan ND CAFFEINE IS A MILD STIMULANT that occurs naturally

in at least 63 plant species. It is found in the leaves, stems, seeds and roots of these various plants. Caffeine (1,3,7-trimethylxanthine) is part of the methylxanthine family and consists of a xanthine molecule with three methyl groups attached to it. Caffeine can be found in products like sodas, tea and coffee, however, it also occurs in several other products such as prescription medications, diuretics and pain relievers. Caffeine has a number of physiological effects. The pharmacological properties of caffeine have been long prized by shift workers, the military, athletes, students and others who need to prolong their mental and physical functions (Burke 2008). These people view caffeine as a helpful stimulant that increases concentration, awareness and many other physical traits. The important thing to remember is that caffeine’s effects vary based on the person, the amount ingested, the frequency of consumption and individual metabolism. The focus of the following article is to review evidence of caffeine as an ergogenic aid (a substance that enhances physical performance) among elite athletes.

MECHANISMS OF ACTION

Once ingested, caffeine is metabolized by the liver and measurable levels of it appear in the blood stream within 15-45 minutes; peak concentrations are evident within one

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hour of ingestion, and after three to six hours, up to 75 per cent has left the body via the kidneys (Goldstein 2010). Caffeine also has the ability to cross the blood brain barrier (Goldstein 2010). Caffeine alters substrate utilization by increasing free fatty acid mobilization while sparing muscle glycogen (Essig 1980, Spriet 1992). When glycogen stores are spared, fatigue and pain associated with prolonged exercise are delayed, allowing the athlete to sustain their performance for a greater duration. To further support this, Laurent et al (2000) found that caffeine increases the secretion of B-endorphins, which serve to decrease pain perception. While caffeine supplementation can improve sports performance, various factors, such as the condition of the athlete, type of activity (endurance, moderate intensity, team sport) and dose of caffeine, are all notable variables. It has also been suggested that caffeine antagonizes adenosine receptors expressed in the basal ganglia, the structure responsible for various aspects of motor control (Fisone 2004), thus promoting elevated neurotransmitter functionality.

EFFECT ON ATHLETIC PERFORMANCE

Evidence for endurance sports (performance required for longer than 60 minutes) and high intensity sports (less than 60 minutes of performance) comprise the majority of

Caffeine’s ability to stimulate fat oxidation while simultaneously sparing muscle glycogen allows the athlete to maintain maximal performance during episodes of prolonged physical activity. studies that exist, compared to strength or true sprint sports. Running, cycling, rowing and swimming are typical activities that are represented in the literature. Please refer to Table 1 for a summary.

was consumed after a cup of regular or decaffeinated coffee (McLellan 2004). Anhydrous caffeine supplementation (3, 5 and 7 mg/kg) provided an average increase in performance of 24 per cent over placebo (McLellan 2004).

All studies involved a range of highly trained to elite athletes, which is reflected in the small sample sizes of existing clinical trials. In addition, laboratory-based studies typically quantify the effect of caffeine with respect to performance by using a time-to-exhaustion model versus measured end-points of set distance or time with best effort, which is more applicable to real-life sport events (Ganio 2009, Burke 2008).

Demura et al (2007) examined the effect of coffee on athletic performance. Ten adults performed a cycling exercise at 60 per cent VO2max for one hour. Participants drank either coffee with a caffeine content of 6mg/kg or decaffeinated coffee one hour prior to beginning the task, participating in both conditions at a one-week interval. The only significant finding was a decreased rating of perceived exertion during submaximal endurance exercises with no significant differences in any physiological responses (oxygen uptake, respiratory exchange ration, heart rate, plasma lactate concentration).

Research typically shows that ingestion of between 3-9 mg/kg body weight caffeine prior to exercise increases performance, resulting in a urinary caffeine level below the acceptable limit of 12 micrograms/ml allowed by the International Olympic Committee (Spriet 1995).

COFFEE OR ANHYDROUS CAFFEINE?

The studies listed in Table 1 used anhydrous caffeine capsules; however, this is not to say that other forms of caffeine supplementation have not been explored. In a double-blinded study conducted at the University of Guelph (Graham 1998), nine aerobically conditioned runners performed five treadmill runs to exhaustion at 85 per cent VO2max after receiving either anhydrous caffeine plus water, regular coffee, decaffeinated coffee, decaffeinated coffee plus anhydrous caffeine, or placebo one hour prior to activity. In all trials, caffeine was dosed at 4.45mg/kg of body weight and participants were instructed to abstain from all caffeine containing foods and beverages 48 hours prior to each run. When compared to the four other treatments, anhydrous caffeine significantly increased endurance (p<0.05) resulting in participants running an additional 2-3 km (Graham 1998). McLellan and Bell (2004) sought to examine whether prior coffee consumption would impact the ergogenic effects of anhydrous caffeine. 13 subjects in a crossover design consisting of six separate testing days, cycled to exhaustion, performing at 80 per cent VO2max. Subjects consumed one cup of coffee (approximately 1mg/kg caffeine), and 30 minutes later ingested either of the following six conditions: decaffeinated coffee with placebo capsules; decaffeinated coffee with anhydrous caffeine at 5 mg/kg, coffee at 1.1 mg/kg with anhydrous caffeine (dosed at 3, 5, 7 mg/kg), and water with anhydrous caffeine at 5 mg/kg. The results indicated caffeine supplementation significantly increased exercise time to exhaustion, regardless of whether anhydrous caffeine

HABITUATION

The magnitude of efficacy that caffeine can have on athletic performance depends on the athlete’s daily caffeine habit. Bell and McLellan (2002) demonstrated that both users (greater than 300 mg/d) and non-users (less than 50 mg/d) of caffeine experienced an enhancement in performance when given 5 mg/kg caffeine prior to exercise, however, the effects lasted three hours longer for non-users. It is important to take into consideration how caffeine can affect those who habitually consume caffeine and those who do not. In a study of 22 participants, 6 mg/kg caffeine or placebo was given one hour prior to one-repetition maximum muscular strength, resulting in 13 participants describing feelings of greater energy, elevated heart rate, restlessness and tremor (Astorino 2008). These feelings were enhanced in those who reported minimal caffeine consumption on a daily basis. Thus, dose and timing of caffeine must be tailored to the individual to avoid habituation and undesirable effects.

CONCLUSION

Current research supports the use of caffeine as an ergogenic aid for endurance and moderate-to-high intensity activities. Therapeutic doses range from 3-9 mg/kg body weight of anhydrous caffeine prior to exercise, resulting in a urinary caffeine level below the acceptable limit of 12 micrograms/ml allowed by the International Olympic Committee. Caffeine’s ability to stimulate fat oxidation while simultaneously sparing muscle glycogen allows the athlete to maintain maximal performance during episodes of prolonged physical activity.

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Reference

Design

Enhanced Performance

Comments

Laurent 2000

Double-blind, placebo controlled: n=20. Subjects given 6mg/kg caffeine 90 mins before cycling for 2h at 65% of VO2max followed by high intensity sprint activity.

Yes

Plasma beta-endorphin levels almost doubled (from 30 +/- 5 to 53 +/- 13 pg/mL; P < 0.05) in the caffeine-treated group, whereas no change occurred in the placebo group. Epinephrine (+223 +/-82pg/ml vs. +56 +/-26 of placebo) and cortisol (+12 +/-3 vs. +2 +/-2 of placebo) also significantly increased. The secretion of betaendorphins and cortisol decreased pain perception, which may contribute to exercise endurance.

Cox 2002

Competitive athletes (n=12) completed two studies of 2h cycling at 70% VO2max followed by 7 kJ/kg time trial (TT) with carbohydrate (CHO) intake before (2 g/ kg) and during (6% CHO drink) exercise. In Study A, subjects received either 6 mg/kg caffeine 1h pre-exercise (Precaf), 6 x 1mg/kg caffeine every 20 min throughout (Durcaf), 2 x 5ml/kg Coca-Cola between 100 and 120 min and during TT (Coke), or placebo.

Yes

Improvements in TT were as follows: Precaf, 3.4% (0.2-6.5%, CI:95% ); Durcaf, 3.1% (-0.1-6.5%); and Coke, 3.1% (-0.2-6.2%) compared to placebo.

Hunter 2002

Repeated-measures, 100-km, laboratory cycling time trial that included bouts of 1and 4-km high intensity intervals with highly trained cyclists (n=8). Subjects given 6mg/kg caffeine 1h before exercise and 0.33mg/kg every 15min thereafter.

No difference between trials with respect to total 100km time or time to complete high-intensity efforts.

Jenkins 2008

1, 2, 3 mg/kg of caffeine or placebo given to 13 cyclists 1h prior to cycling for 15 min at 80% VO, then after 4 min of active recovery, completed a 15-min VO2max ride. Cycling performance, differentiated ratings of perceived exertion (D-RPE), quadriceps pain intensity, and metabolic responses to cycling exercise, were measured.

Yes for 2 & 3mg/kg

Compared with placebo, caffeine doses of 2 and 3 mg/ kg increased performance by 4% (95% CI: 1.0-6.8%, p = .02) and 3% (95% CI: -0.4% to 6.8%, p = .077), respectively. There were no effects of caffeine on D-RPE or pain throughout the cycling task.

Ping 2010

Double-blind, placebo controlled: n=9. Subjects were non-users of caffeine. 5mg/kg caffeine was given 1h prior to running at 70% VO2max on a treadmill in a heat-controlled lab (310C, 70% relative humidity). Heart rate, core body temperature and rate of perceived exertion (RPE) were recorded at intervals of 10 min, while oxygen consumption was measured at intervals of 20 min.

Yes

Running time to exhaustion was significantly higher in the caffeine trial compared to (p<0.05). Heart rate, core body temperature, oxygen uptake and RPE did not show any significant variation between the trials but it increased significantly during exercise from their respective resting values in both trials (P<0.001).

Bridge & Jones 2006

Randomized double-blind crossover: n=8. Participants ran an 8 km race 1h after ingesting a placebo capsule, a caffeine capsule (3mg/kg) or no supplement.

Yes

Caffeine resulted in a mean improvement of 23.8 seconds (95% CI = 13.1 to 34.5s) in 8 km performance time (1.2% improvement, 95% CI = 0.7 to 1.8%).

Wiles 2006

Eight trained cyclists performed a 1km time-trial on an electronically braked cycle ergometer under three conditions: after ingestion of 5mg/kg caffeine, after ingestion of a placebo, or a control condition. The three time-trials were performed in a randomized order and performance time. Mean speed, mean power and peak power were determined.

Yes

Caffeine ingestion resulted in improved performance time (3.1%, 95% CI: 0.7-5.6) compared to placebo. Mean speed was higher in the caffeine than placebo and control (caffeine vs. placebo vs. control: 50.7 +/- 1.4 vs. 49.1 +/- 1.5 vs. 49.2 +/- 1.7 km x h-1; P = 0.0005). Mean power increased after caffeine ingestion (caffeine vs. placebo vs. control: 523 +/- 43 vs. 505 +/- 46 vs. 504 +/- 38 W; P = 0.007).

58 IHRMAGAZINE.COM â&#x20AC;˘ SPRING / SUMMER 2013

In study B, consumption of coke enhanced TT overall by 3.3%, with 2.2% due to caffeine levels (at 1.5mg/kg). Overall, 6 mg/kg caffeine enhanced TT performance independent of timing of intake compared to placebo.

No for 1mg/ kg

Paton 2010

Nine cyclists completed four high-intensity experimental sessions, consisting of four sets of 30s sprints (5 sprints each set). Caffeine (240mg) or placebo administered via chewing gum following the second set of each experimental session. Salivary testosterone and cortisol levels were measured.

Yes

Mean power output in the first 10 sprints relative to the last 10 sprints declined by 5.8 +/- 4.0% in placebo and 0.4 +/- 7.7% in caffeine trials. Reduced fatigue in caffeine equated to a 5.4% (90% confidence limit +/-3.6%, effect size 0.25; +/-0.16) performance enhancement in favour of caffeine. Levels of testosterone were elevated (12 +/-14%) with no effect on cortisol, compared to placebo.

Vandenbogaerde 2010

Elite sprint and middle-distance swimmers (n=9) performed 6-13 timed trials in training and competition 9 weeks before and including Olympic-qualifying trials. Doubleblind, randomized, diet-controlled crossover intervention, in which the swimmers consumed caffeine (5mg/kg) or placebo. The swimmers also knowingly consumed varying doses of caffeine in some time trials.

Yes

A 100mg dose of caffeine enhanced performance in training and competition by approximately 1.3%. There were substantial but unclear individual responses to training and caffeine (SD of 0.3% and 0.8%, respectively).

REFERENCES: Astorino TA, Rohmann RL, Firth K, Kelly S. Effect of caffeine ingestion on onerepetition maximum muscular strength. Eur J Appl Physiol 2008; 102:127-32. Bell DG, McLellan TM. Exercise endurance 1, 3, and 6 h after caffeine ingestion in caffeine users and nonusers. J Appl Physiol 2002; 93:1227-34. Bridge CA, Jones MA. The effect of caffeine ingestion on 8 km run performance in a field setting. J Sports Sci. 2006; 24(4):433-9. Burke LM. Caffeine and sports performance. Appl. Physiol. Nutr. Metab. 2008; 33:1319-1334.

Jenkins NT, Trilk JL, Singhal A, Oâ&#x20AC;&#x2122;Connor PJ, Cureton KJ. Ergoenic effects of low doses of caffeine on cycling performance. Int J Sport Nutr Exerc Metab. 2008; 18(3):328-42. Laurent D, Schneider KE, Prusaczyk WK, Franklin C, Vogel SM, Krssak M, Petersen KF, Goforth HW, Shulman GT. Effects of caffeine on muscle glycogen utilization and the neuroendocrine axis during exercise. J Clin Endocrinol Metab. 2000; 85:2170-75. McLellan TM, Bell DG: The impact of prior coffee consumption on the subsequent ergogenic effect of anhydrous caffeine. Int J of Sport Nutr Exerc Meta. 2004; 14:698-708.

Cox GR, Desbrow B, Montgomery PG, Anderson ME, Bruce CR, Macrides TA, Martin DT, Moquin A, Roberts A, Hawley JA, Burke LM. Effect of different protocols of caffeine intake on metabolism and endurance performance. J Appl Physiol. 2002; 93(3):990-9.

Paton CD, Lowe T, Irvine A. Caffeinated chewing gum increases repeated sprint performance and augments increases in competitive cyclists. Eur J Appl Physiol. 2010; Aug 25. [Epub ahead of print].

Demura S, Yamada T, Terasaw N. Effect of coffee ingestion on physiological responses and ratings of perceived exertion during submaximal endurance exercise. Percept Mot Skills. 2007 Dec;105(3 Pt 2):1109-16.

Ping WC, Keong CC, Bandyopadhyay A. Effects of acute supplementation of caffeine on cardiorespiratory responses during endurance running in a hot & humid climate. Indian J Med Res. 2010; 132:36-41.

Essig D, Costill DL, Van Handel PJ: Effects of caffeine ingestion on utilisation of muscle glycogen and lipid during leg ergometer exercise. Int J of Sports Med. 1980; 1:86-90.

Spriet LL. Caffeine and performance. Int J of Sport Nutr. 1995; 5:S84-99.

Fisone G, Borgkvist A, Usiello A. Caffeine as a psychomotor stimulant: mechanism of action. Cell Mol Life Sci. 2004; 61(7-8):857-72. Ganio MS, Klau JF, Casa DJ, Armstrong LE, Maresh CM. Effect of caffeine on sport-specific endurance performance: a systematic review. J Strength Cond Res. 2009; 23(1):315-24. Goldstein ER, Ziegenfus T, Kalman D, Kreider R, Campell B, Wilborn C, Taylor L, Willoughby D, Stout J, Graves SB, Wildman R, Ivy JL, Spano M, Smith AE, Antonio J. International society of sports nutrition position stand: caffeine and performance. J Int Soc Sports Nutr. 2010; Jan 27;7(1):5.

Spriet LL, MacLean DA, Dyck DJ, Hultman E, Cederblad G, Graham TE. Caffeine ingestion and muscle metabolism during prolonged exercise in humans. Am J Physiol. 1992; 262:E891-8. Vandenbogaerde TJ, Hopkins WG. Monitoring acute effects on athletic performance with mixed linear modeling. Med Sci Sports Exerc. 2010; 42(7):1339-44. Wiles JD, Coleman D, Tegerdine M, Swaine IL. The effects of caffeine ingestion on performance time, speed and power during a laboratory-based 1km cycling time-trial. J Sports Sci. 2006; 24(11):1165-71. IHR

Graham TE, Hibbert E, Sathasivam P. Metabolic and exercise endurance effects of coffee and caffeine ingestion. J Appl Physiol. 1998; 85(3):883-9. Hunter AM, St Clair Gibson A, Collins M, Lambert M, Noakes TD. Caffeine ingestion does not alter performance during a 100km cycling time-trial performance. Int J Sport Nutr Exerc Metab. 2002; 12(4):438-52.

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SPECIAL REPORT

Pycnogenol® for Eye Health

THE NATURAL AGING PROCESS AFFECTS THE SHARPNESS OF VISION, EVERYONE EXPERIENCES DECREASED ACCOMMODATION OF THE LENS TO SEE CLEARLY AT CLOSE RANGE AS WE AGE. APART FROM THE STIFFENING THE LENS WILL DEVELOP OPACITIES AND, FURTHERMORE, LIGHT SENSING CONES AND RODS MAY LOSE FUNCTION AS WE GET OLDER. THE PROGRESSION MAY OCCUR MORE RAPIDLY IN SOME INDIVIDUALS THAN OTHERS AND FURTHER TO HEREDITARY FACTORS, PREDOMINANTLY LIFESTYLE AND DIETARY FACTORS DEFINE THE SPEED WITH WHICH OXIDATIVE STRESS AND METABOLIC FACTORS CAUSE CUMULATIVE DAMAGE TO OCULAR TISSUES. THE RETINA IS THE TISSUE WITH THE HIGHEST METABOLIC TURN-OVER IN THE BODY, WITH THE CONSEQUENCE OF GENERATING THE HIGHEST OXIDATIVE STRESS. FURTHERMORE, OCULAR TISSUES ARE EXPOSED TO ENERGETIC UV RAYS WHICH GENERATE REACTIVE OXYGEN SPECIES. METABOLIC CONDITIONS SUCH AS DIABETES INVOLVE A PATHOLOGIC OXIDATIVE STRESS KNOWN TO DEPRIVE ANTIOXIDANT VITAMINS.

PYCNOGENOL® PROVIDES POTENT ANTIOXIDANT PROTECTION TO THE EYES

The eye is characterised by a unique aqueous-lipid phase barrier which requires water-soluble antioxidants for the aqueous phase such as the humour and lipophilic antioxidants, predominantly carotenoids, for the polyunsaturated fatty acid-rich retina. Pycnogenol® was found to protect retinal lipids more potently than vitamin C, vitamin E, CoQ10, lipoic acid and grape seed extract [Chida et al., 1999]. Especially the carotenoid Lutein has been found to protect the retinal macula from oxidative damage. Under laboratory conditions Lutein and Pycnogenol® were investigated for their antioxidant protective effect of the retina. Further to their

potent individual antioxidant contributions the combination of Lutein and Pycnogenol® showed additional synergistic protection of retinal lipids from oxidation by 60 per cent [NakanishiUeda et al., 2006]. Further to the pronounced antioxidant potency in aqueous environments Pycnogenol® appears to exhibit synergistic effects with lipophilic antioxidants along the water-lipid interface of tissues.

PYCNOGENOL® PROTECTS RETINAL CAPILLARIES

Further to the integrity and functioning of light sensing cells the condition of the vascular system supporting the retina plays a pivotal role for healthy vision. Cardiovascular risk factors, predominantly hyperglycaemia, involve serious harm to retinal capillaries. In diabetes the retinopathy involves leakage of plasma into the retina causing macular oedema and spot-like bleedings. Lipid constituents of plasma may remain in the retina as insoluble “hard” exudates. Retinopathy is considered a “stealth disease” as SPRING / SUMMER 2013 • IHRMAGAZINE.COM

it progresses unnoticed and symptom-free while it leads to gradual, largely irreversible loss of vision. Left untreated retinopathy may progress to the proliferative stage which is characterised by growth of new capillaries to compensate for the lack of oxygen in the retina. These vessels grow uncontrolled and interfere with normal eye vision and, furthermore, tend to cause severe bleedings. The proliferative stage of retinopathy may lead to complete blindness. Pycnogenol® strengthens retinal capillaries to helps control leakage of fluids and blood into the retina. Furthermore, Pycnogenol® improves the endothelial function of retinal capillaries which supports better blood micro-circulation in the retina.

CLINICAL STUDIES WITH PYCNOGENOL®

Six clinical studies with more than 1200 diabetic patients have shown that Pycnogenol® is effective to stop further progression of retinopathy and save the eyesight of diabetics. Pycnogenol® stabilizes and seals leaky capillaries of the retina, stopping further outflow of blood. In some cases even an improvement of visual acuity was evident.

EARLY EXPLORATORY STUDIES FOR TREATMENT OF RETINOPATHIES WITH PYCNOGENOL®

Two open case studies were carried out in France to explore the possibility to use Pycnogenol® for treatment of eye diseases resulting from capillary bleeding, mostly diabetic retinopathy. These studies were reported and published in French, the results have recently been reviewed in English [Schönlau & Rohdewald,2002].

DOUBLE BLIND COMPARATIVE STUDY

The efficacy of Pycnogenol® was compared in a double blind study design with another compound commonly utilised for slowing the progression of diabetic retinopathy: calcium dobesilate (Dexium). Two groups with 16 diabetic retinopathy patients each were treated with either Pycnogenol® (120 mg/ day for six days, then 80 mg/day) or Dexium (two or three tablets equivalent to 1000-1500 mg calcium dobesilate per day) over a period of 6 months at the Ophthalmology Department of the University Clinic of Würzburg, Germany [Leydhecker, 1986]. Particular emphasis was given in this study to obtain an objective judgement of the treatment efficacy. Panoramic photos of the whole retina were taken of all patients before and after treatment. Further to bleedings a primary focus in this study was the investigation of exudates, lipid depositions remaining in the retina from fluid leakages from capillaries. Seven ophthalmologists independently from one another judged the improvement of both bleedings and exudates, without knowing which medication the patient received. Both the retinal bleedings as well as the exudates improved in the majority of patients taking Pycnogenol®. The study outcome suggests a higher efficacy with Pycnogenol as compared to Dexium.

STUDY DEMONSTRATING DECREASED BLEEDINGS BY FLUORANGIOGRAPHY

In another clinical trial 40 retinopathy patients received intravenous injection of fluorescein which allows for identification and quantification of momentary retinal bleedings by fluorescence intensity. A rapid sequence of fluorangiographs allows for recording the retinal blood flow dynamics as well as the integrity of the blood-retina barrier. The micro-angiopathy was scored using a semi-quantitative 4-score scale ranging from healthy (=0) to severe bleedings (=3). After three months treatment with Pycnogenol retinal bleedings decreased significantly [Spadea et al., 2001].

PYCNOGENOL® IMPROVES VISUAL ACUITY IN EARLY STAGE RETINOPATHY

A clinical study with 46 subjects suffering from early stage retinopathy characterised by mild to moderate retinal oedema showed significantly improved visual acuity after three months treatment with Pycnogenol®, whereas no effect was found in a control group. With Pycnogenol® the visual acuity improved on a Snellen chart from baseline 14/20 to 17/20. Moreover, this study demonstrated a significantly relieved retinal oedema, a consequence of the increased capillary wall strength resulting from administering Pycnogenol® for three months. The blood velocity was increased significantly by about 30 per cent after taking Pycnogenol®, suggesting a better perfusion of retinal tissue which is understood to be the reason for increased visual acuity [Steigerwalt et al., 2009].

IHRMAGAZINE.COM • SPRING / SUMMER 2013

Treatment: . • Daily dosage 20mg Pycnogenol one to eight times a day • Treatment duration 6 months Outcome

• Pycnogenolsuccessful forstopping the progression of retinopathy • In average a moderate improvement of visual acuity STUDY CONCLUSION

Pycnogenol has considerable therapeutic benefits for patients with diabetic retinopathy Pycnogenol® provides potent antioxidant protection against oxidative-stress related degenerative processes in the eyes. The antioxidant properties of Pycnogenol® act in synergy with lipophilic antioxidants in the eye, such as with Lutein. Pycnogenol’s vascular benefits translate to considerable benefits for people suffering from retinopathy. This diabetic complication is improved with Pycnogenol® by supporting impaired capillary integrity and function. The capillary filtration and bleeding is significantly improved with Pycnogenol®. The better perfusion of retinal tissue owing to improved endothelial function with Pycnogenol® helps restore some of the vision lost in retinopathy.

MULTI-CENTRE STUDY WITH 1169 RETINOPATHY PATIENTS

The most impressive evidence for the efficacy of Pycnogenol® for saving the eye sight of retinopathy patients stems from a multi-centre study in Germany. In total 1169 subjects with diabetes I and II participated who took Pycnogenol® in dosages ranging from 20 to 160 mg, depending on the severity of retinal bleedings, for a period of six months. The outcome of the study showed that after six months in average no further vision loss occurred suggesting that Pycnogenol®effectively stops the progression of retinopathy[Schönlau & Rohdewald, 2001].

Nakanishi-Ueda T et al. Inhibitory effect of Lutein and Pycnogenol on lipid peroxidation in porcine retinal homogenate. J Clin Biochem Nutr 38: 204-210, 2006. Schönlau F & Rohdewald P. Pycnogenol® for diabetic retinopathy. A review. Int Ophthalmol 24: 161-171, 2001. Spadea L & Balestrazzi E. Treatment of vascular retinopathies with Pycnogenol®. Phytother Res 15: 219-223, 2001.

GERMAN MULTI-CENTRE STUDY WITH 1160 PATIENTS Patients:

REFERENCES Chida M et al. In vitro testing of antioxidants and biochemical end-points in bovine retinal tissue. Ophthalmic Res 31: 407-415, 1999.

• Diabetes type I and type II

Steigerwalt R et al. Pycnogenol® improves microcirculation, retinal edema and visual acuity in early diabetic retinopathy. J Ocul Pharmacol Ther, submitted 2009. IHR

• Diabetes since trial start to maximum 60 years Average 149 months • Retinopathy since trail start to maximum 26 years Average 1130 days • No previous treatment 51 per cent • With previous treatment 49 per cent SPRING / SUMMER 2013 • IHRMAGAZINE.COM

research news

TYPE 2 DIABETES

SKIN TEST

C A F F E I N AT E D A N D

UNIVERSITY DEVELOPS

CAFFEINE-FREE DRINKS

T E S T T H AT P R E D I C T S

AND RISK OF TYPE 2

REACTION TO

DIABETES

This study prospectively examined the association of caffeinated compared with caffeine-free beverages, including coffee, tea, sugarsweetened beverages (SSBs), and carbonated artificially sweetened beverages (ASBs), with Type 2 Diabetes (T2D) risk. 74,749 women from the Nurses’ Health Study (NHS, 1984-2008) and 39,059 men from the Health Professionals Follow-Up Study (HPFS, 1986-2008) were followed. After major lifestyle and dietary risk factors were controlled for, caffeinated and caffeine-free SSB intake was significantly associated with a higher risk of T2D in the NHS (RR per serving: 13% for caffeinated SSB, 11% for caffeine-free SSB; P < 0.05) and in the HPFS (RR per serving: 16% for caffeinated SSB, 23% for caffeine-free SSB; P < 0.01). Only caffeine-free ASB intake in NHS participants was associated with a higher risk of T2D. Conversely, the consumption of caffeinated and decaffeinated coffee was associated with a lower risk of T2D. Only caffeinated tea was associated with a lower T2D risk among NHS participants (RR per serving: 5%; P < 0.0001).

COSMETICS

Scientists at Newcastle University have developed what they call a “simple lab-based skin test’; which eliminates the risk of adverse reactions to cosmetics, new drugs and household chemicals. “This skin assay offers an accurate and rapid alternative to animal testing and provides the bridge between the laboratory tests for novel drugs and the first stage of clinical trials in humans. It identifies drugs or products which are likely to cause a reaction or just not work effectively in humans,” says professor Anne Dickinson. Dickinson and her colleagues at the Institute of Cellular Medicine believe ‘Skimune’ is accurate and faster than anything currently on the market, ultimately saving companies time and resources. Researchers believe their test would have predicted the negative outcome during clinical trials. In 2006, six men taking part in a clinical trial at Northwick Park had severe reactions to a monoclonal antibody resulting in organ failure. “Previous laboratory and animal research gave no indication that this was likely to occur. Our test would have picked up the risk because it is a skin-based model of the human immune response,” Dickinson explains.

AGING S T U D Y S AY S U S I N G S U N S C R E E N D A I LY M AY P R E V E N T A G I N G

Using sunscreen every day may help protect against aging skin, according to a new Australian study. Although the benefits of sunscreen are well know when it comes to preventing sunburns and lowering skin cancer risks, researchers said rigorous studies were lacking on how sunscreen use affects the signs of skin aging, or photo-aging. For their new study, Dr. Adele Green from the Queensland Institute of Medical Research and her colleagues analyzed data from 903 adults younger than 55 who were followed between 1992 and 1996. Half of them were told to put sunscreen of SPF 15 or greater on their head, neck, arms and hands every morning, and to reapply when necessary. The others used sunscreen according to their own discretion. At the start and end of the study, the researchers measured photoaging using the skin on the back of each person’s left hand. They found that over four years, there were no detectable changes in the skin condition of people who were told to use sunscreen daily, once other sun-related factors were taken into account. Australians in that group were 24 per cent less likely to show any increased aging-clinical changes that might not be visible to the naked eye than those who decided on their own when to wear sunscreen, Green and her colleagues reported in the Annals of Internal Medicine. Beta carotene, which was also given to some of the participants, did not seem to have any protective effect on skin aging, however. Photoaging happens after long-term exposure to ultraviolet radiation, which penetrates the skin and can cause collagen to break down and DNA to mutate, said Dr. Brundha Balaraman, a dermatology researcher from the Washington University School of Medicine in St. Louis. Balaraman, who also wasn’t part of the research team adds, “this study effectively shows that daily sunscreen can reduce the signs of photoaging and photodamage.”

IHRMAGAZINE.COM • SPRING / SUMMER 2013

research news

AROMATHERAPY

VITAMIN K2 B I OAVA I L A B I L I T Y

EFFECT OF ESSENTIAL

COMPARISON OF T WO

O I L A R O M AT H E R A P Y O N

F O R M S O F V I TA M I N K 2

H E A R T R AT E

This study examined two vitamin K2 homologues, menaquinone-4 (MK-4) and menaquinone-7 (MK-7). Vitamin K2 plays a role in bone health and cardiovascular health and both forms have been used as nutrients in food and as nutritional supplements. This study investigated the bioavailability of nutritional doses when administered to healthy Japanese women. A single dose of MK-4 (420 ug or 945 nmol) or MK-7 (420 ug or 647 nmol) was administered in the morning to participants together with a standardized breakfast. MK-7 was well absorbed and reached maximum serum level after 6 hours of intake and was detected up to 48 hours after intake. MK-4 was not detectable in the serum of all subjects at any time point. Consecutive administration of MK-4 (60 ug or 135 nmol) or MK-7 (60 ug or 92 nmol) for one week demonstrated that MK-4 supplementation still failed to increase serum MK-4 levels. Consecutive administration of MK-7 successfully increased MK-7 levels. The authors conclude that MK-4 present in food does not contribute to the vitamin K status as measured by serum vitamin K levels. MK-7 was significantly associated with increases in vitamin K levels and may be important for extrahepatic tissues.

This study examined the use of aromatherapy to measure its impact on heart rate and blood pressure. 100 healthy spa workers in Taiwan were recruited from various spa centres. Three repeated measurements of resting heart rate, systolic blood pressure and diastolic blood pressure were taken of each spa worker in a study room. Participants were exposed to essential oil vapour that was generated from an ultrasonic atomizer for two consecutive hours. The total volatile organic compound level in the study room was measured. The results showed that for times from 15 to 60 minutes after the start of exposure, the volatile organic compound level was significantly associated with reduced 15 minute mean blood pressure and heart rate. After exposures of more than one hour, the volatile organic compound levels were associated with increased 15 minute mean blood pressure and heart rate. The authors conclude that exposure to essential oil aromatherapy for one hour can be an effective method of relaxation as indicated by decreases in heart rate and blood pressure. However, prolonged exposure for longer than one hour to essential oils may be harmful to cardiovascular health

ANTIOXIDANT A N T I O X I D A N T I N TA K E S L O W E R I N O L D E R A D U LT S WITH DEPRESSION

This study examined the cross-sectional associations between clinically diagnosed depression and intakes of antioxidants, fruits, and vegetables in older adults. Antioxidant, fruit, and vegetable intakes were assessed in 278 elderly participants (144 with depression, 134 without depression) using a food frequency questionnaire that was administered between the years 1999 and 2007. All participants were aged 60 years or older. Vitamin C lutein, and beta cryptoxanthin intakes were significantly lower among individuals with depression than in comparison participants (P<0.05). In addition, fruit and vegetable consumption, a primary determinant of antioxidant intake, was lower in individuals with clinical depression. In multivariable models controlling for age, sex, education, vascular comorbidity score, body mass index, total dietary fat, and alcohol; vitamin C, beta cryptoxanthin, fruits, and vegetables remained significant. Antioxidants from dietary supplements were not associated with depression. Antioxidant, fruit and vegetable intakes were lower in individuals with late-life depression than in comparison participants. The authors conclude that these associations may partially explain the elevated risk of cardiovascular disease among older individuals with depression and point to the importance of antioxidant food sources rather than dietary supplements.

SPRING / SUMMER 2013 â&#x20AC;˘ IHRMAGAZINE.COM

Columnist Ken Vannucci Merchandise manager for London Drugs and a social media advocate.

How Can Smaller Vendors Play With Bigger Retailers? Tips to help save you, and your ideas from retail hell By Ken Vannucci

This column was written as a result of requests from numerous smaller companies that said advice like this would have saved them money and time if they had this information prior to appointments and presentations with buyers. I REALLY WANT TO make sure that our smaller, family-run, local businesses can prosper and thrive in a retail world of large brands. We need lots of little guys to keep the big guys honest and innovative since most of the cool stuff comes from the small time entrepreneurs.

A point I want to make is: a great product or product idea does not mean you, or your product will be successful in retail. How could a great idea or product not be successful? Success in retail is dependent on so many moving parts. The challenge for most start-ups is they need to spend the time, money and quite frankly the effort to really learn the market and understand how they were going to fit in.

A GOOD IDEA AND A GOOD PRODUCT DOES NOT NECESSARILY EQUATE TO SUCCESS.

I consistently tell folks, “this is not rocket science, this is retail.” There are some very basic and elementary steps that

66 IHRMAGAZINE.COM • SPRING / SUMMER 2013

you need to take to give your product a fighting chance of making the extremely fickle, and competitive world of today’s North American retail. First year marketing talked about the 4 P’s – Product, Price, Placement and Promotion. A good understanding of this basic concept is essential in ensuring even a fighting chance in today’s hyper competitive retail market. Spend a great deal of your time in all of the 4 P’s and you have chance. Maybe… Know your product and who it is that you are hoping to sell to. What are the competitive products in the market, and to what degree do they really compete with you? Figure out a value of the product and where it needs to be sold and what communication tools you will use to sell your product. You really need to think about this before you begin. The idea or product may sound cool and useful, however upon further investigation you may notice the reason your

ken’s kool

idea or product does not exist is that it is passé, or there are other things in the marketplace already that do what you think we all need done. Maybe there is just no need for another player. Maybe the market is too small. Maybe the consumer that would have used this has moved on. Maybe you are battling a giant and the costs to enter are just too far above and beyond you. Maybe walking away before you get too involved and invested is best. Do some research. Is this an idea that can really work? Get detached. Ask friends and family. If you can get to a person in retail, ask them. Many good-looking ideas are just that, however they may have no practical application or market. If you still think there is play in your idea or product, then you keep going down the list provided. Know your costs – your true costs. What is the true COGS (cost of goods sold) of your product? Understand what margins you need to make things work. Did you include freight, a distributor, a broker, or are you just going direct? Did you allow for marketing – your marketing and the marketing with each retailer? What about terms and what if the retailer wants a free fill or will pay only on consignment? What other hidden costs are going to be buried in this? Honestly, this is probably the most significant area where new guys fail miserably (right after making something that no one wants – remember step one above). Next, where are you trying to get this product listed or placed? Know the retailer you are talking to and how this may impact your go to market strategy and how it may impact other retailer’s attitudes towards your product. Walmart has a very different approach to getting products to consumers than Costco and they are both different than Safeway, etc. Know all of the retailers that you are in, or trying to get into, and know how that impacts your strategy to sell within the retail community you are trying to get into. All are different, and you being in any one may exclude you from being in another or all. If you are online how does that impact the retailer you are sitting with? Each retailer and each channel poses different issues and concerns for all involved. Each will impact not only your pricing strategy; it could impact your marketing strategy. You have to understand the marketplace and you have to understand all of the quirks of picking one retailer over another. Again, you may have to have a different product, pricing, and promotion strategy based on your placement strategy.

KNOW YOUR BUYER

You better know whom you are talking to, what will work and what won’t. Most of us [buyers] have been around a long time. Ask around. Figure out your game plan and your strategies and tactics. You play me very differently that you might a SDM or OFG buyer. I have different issues and concerns than a Costco and/or a Walmart or Loblaws buyer. We all have different personalities and very different internal and external challenges. We go to market different and we think different. We are all different. There is still a lot of personality in buying and selling. You need to understand this. You have to manage the personalities and nuances of your buyers. One of the key ways that you will market and promote your product and/or ideal is in the packaging of it. Spend a lot of time on your packaging and your go to market strategy. Consumers purchase with their eyes first. Bad packaging and poor marketing will kill a great product. I can’t try what I don’t want to buy. What I find the Natural Health guys miss on most of the time is the packaging. Most get the ingredients, and have a passion for what they are trying to achieve, and then they lose sight of the real goal, which is to sell their awesome product. Selling takes more than just a good product inside. The product inside is critical for long-term play, and the packaging is the only messaging you have at store level to give the consumer a reason to consume for the first time. Too often I see great products with awful packaging – and because of that – I am not going to list it in our stores because the packaging component was a miss. My suggestion to the folks in natural food: no matter what you think, I won’t buy something that looks unappealing, and nor will the general public. Finally, when you start to consider the promoting of your product. Don’t come to me with the idea that you will start a marketing strategy or marketing plan after you get orders and distribution because you don’t have money right now. Not my problem. My job is to “lease or rent” space to the most favourable tenant for me so that I can sell and make money for my shareholders and the 7500 employees that we have. As you can see from the list, it’s all about being ready and being informed. Know your game! Practice your pitch on people you know, don’t practice on me. An idea is not enough; you need to think things through. You get one chance to make that first impression – make it count! thanks. IHR SPRING / SUMMER 2013 • IHRMAGAZINE.COM

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