July, 2005

Welcome to SPINS' new quarterly newsletter, Inside SPINS. We hope you enjoy our take on Natural Product Industry news and product introductions and stay up-to-date on what's happening at SPINS.

In this issue:
Featured Service - Announcing Whole Foods Market Data Tools!
SPINSscan Natural Promotion - Save on Snapshots from August 15 until Expo East
SPINS Company Updates - SPINS Celebrates 10 Years, Soyfoods Report '05, more!
Content Corner - Food Fusions: A New Niche for Natural
Spotlight on Nutrition - Burdock Root for Liver Health
Natural Food Stores Keep Healthy Edge By Janet Forgrieve of Rocky Mountain News
NOP Personal Care Policy Overview and commentary by SPINS' David Browne


Announcing Whole Foods Market Data Tools!

Whole Foods Market suppliers can now easily access and analyze their sales data through all of the retailer's stores with these new reporting tools. As with other reporting from SPINS, subscribers can view their data online anytime through the Net-Bench data access tool. We update this Chain, Region and Store level data weekly and deliver information in our industry-standard content and categorization hierarchy for up-to-date, easy and insightful analysis.

> Inform your strategy and understand your performance in the world's leading Natural Products retailer.
> Evaluate the effectiveness of your promotions at the Chain, Region and Store level.
> Avoid the need to contact Whole Foods Market each time you need updated sales information.
> Enjoy easy data access, analysis and reporting.
> Position yourself with Whole Foods Market as an informed partner.

Service Parameters
Markets: Chain, Region, and Store level
Products: Your brands and items (no competitive market share)
Facts: Dollars, Units, Share, Average Retail Price, Distribution, Velocity, % Change (share is not included) Periods: Weekly data and Quad weekly reporting from 2000

Contact your regional sales manager or Diana Dixon, SPINS' Manager of Inside and Retail Sales, at ddixon@spins.com or 815.609.0607 to sign up today!





SPINSscan Natural Promotion - Starting August 15th
From August 15th up to Natural Products Expo East, SPINS is running our bi-annual SPINSscan Natural snapshot promotion.

Purchase two 52-week syndicated snapshots for $6,000 or one snapshot for $3,500, and save up to 30%.
For a nominal charge, add regional markets, content tags such as NOP Organic, Soy, or Flavor, and 24-month trended data to your order.

Boost your sales story at this year's show with data from the industry's single, most trusted source of UPC-based sales information. SPINSscan Natural snapshots can help you to:

> Strengthen your retailer and distributor sales presentations
> Measure new store distribution
> Evaluate new product introductions
> Communicate increased market share
> Optimize your category management process

Make SPINSscan Natural snapshots part of your Expo East prep this summer. Look for our promotion announcement next month and save!






SPINS Company Updates

SPINS Celebrates 10-Year Anniversary!
SPINS was founded in 1995 to address a need for syndicated sales data on the Natural Products market. Since then, SPINS has provided comprehensive retail measurement as well as the industry standard for Natural Products content and categorization. Ten years later, SPINS remains the only source for UPC-based movement data and consumer information for the Natural Products Industry.

We couldn't have come this far without the insight and support of our many valuable industry partners. Here's to a bright future together!

Soyfoods: The US Market 2005 - Available late July
Soyatech has partnered with SPINS to produce their fifth annual study on the US Soyfoods market. Find detailed information on the US market by category, subcategory, brand and distribution channel. Soyfoods are now an over $4 billion retail foods category, seeing most of its growth in new, emerging subcategories. If your company produces or markets soyfoods or soy protein ingredients, this is the single most important report for you to order this year. More info >


SPINS Launches New Website

This May, SPINS re-launched spins.com and introduced a set of enhanced, re-branded services. Read about how we've expanded our coverage of the Natural Products Industry sales and how we understand the buying behavior of the Natural Products consumer.


Five New SPINNERS
From Client Services to Sales, SPINS is growing to meet the needs of this booming industry. Meet new SPINNERS Brent Coons, Carole Scott, Danelle Selinger, Dawn Mehrens, and Lily Rundle:

Brent Coons joined our team of Natural Product Experts in April. He began his work in the Natural Products Industry in 1998 at a San Francisco Real Food Co. store, where he was a store buyer and supervisor for five years. He then helped to open a Whole Foods Market in downtown San Francisco, where he worked for a year as a grocery buyer. In addition to his work in Natural retail, Brent has studied alternative healing, Chinese medicine, massage therapy and reflexology.

Carole Scott started working with SPINS as a Natural Product Expert this June. Her work history includes retail business management in the Natural Foods, Coffee, and Vintage Furniture industries. Her Natural Product experience spans two decades and includes work at The Real Food Co. as a buyer, as well as working at Elmwood Natural Foods in Berkeley, and the Macrobiotic Community Center in Oakland.

Danelle Selinger joined our sales team in May, replacing Alison Tirone as Southwest Regional Sales Manager. She comes to SPINS with a solid and successful background in sales, with a focus on consumer products, technology, and communications. Her most recent role was as a Director for GoSMILE, a teeth whitening consumer product sold through high-end department stores. Danelle was responsible for working with buyers, and managing, developing and training retailers to sell GoSMILE.
Contact Danelle at: dselinger@spins.com or 415.699.6362.

Dawn Mehrens came aboard in June as our new West Region Client Service Analyst.  For the past three years, Dawn worked as a Market Research Sales Analyst for Kimberly-Clark where she developed sales forecasts and led client training sessions on the definition and application of both RMS and panel data.  Prior to Kimberly-Clark, Dawn worked for two years at IRI in analytics, sales, and training capacities. 
Contact Dawn at: dmehrens@spins.com or 415.957.4441.

Lily Rundle joined us this May as SPINS' new Sales Accountant. Lily has extensive experience managing customer service and order processing departments for foodservice and private label retail companies. She also has a strong background in sales analytics, forecasting, pricing and inventory management in the warehousing and distribution, food manufacturing, and food brokerage sectors.

We are thrilled to have such a talented group of new SPINNERS, please join us in giving them a warm welcome!

Charitable Contributions
The American Stroke Association is a division of the American Heart Association that focuses on reducing risk, disability and death from stroke through research, education, fund raising and advocacy.

Inner City Impact's summer program works with 700-800 kids per week in the inner city of Chicago.  It provides sporting events, camping trips, educational programs, job skill development and mentorship to kids to help them escape a life of drugs, gangs, and prostitution.  SPINS is sponsoring a volunteer throughout the summer - look for a report back on his work in our next issue.

The Muscular Dystrophy Association (MDA) combats neuromuscular diseases through programs of worldwide research, comprehensive medical and community services, and far-reaching professional and public health education. SPINS' Business Development Director, Amy Jacobsen is raising money to support the organization through the "MDA Lock Up" project. She needs $2,400 in bail money to "get out of jail", and promote research and services for kids with Muscular Dystrophy. Visit her bail page to make a donation and learn more about MDA's services.




Content Corner
by Kerrin Rourke, Certified Nutritional Consultant

Food Fusions - A New Niche For Natural
Natural Products companies are becoming increasingly resourceful and creative when it comes to the job of producing new products that appeal to consumers. "Me too" product lines have saturated every vein of the marketplace and companies are being forced to find innovations that drive the growth of their companies as well as the industry as a whole. In light of this, an interesting trend is beginning to emerge. Companies are coming to market with products that are a fusion of unlikely ingredients and many of these show promise for developing new niches in the marketplace. Some of these innovative products are featured in this issue's Content Corner.

Native Kjalii Foods Redefines "Chocolate Chips"
San Francisco based Native Kjalii Foods unveiled a unique dessert confection this July at the Summer NASFT Fancy Foods Show. "The Chocolate Chip" is the Native foods organic corn chip covered in dark chocolate, sesame seeds, almond pieces, pumpkin seeds and cinnamon. The company will also be introducing a new line of ready-to-eat roasted moles, all of which pair well with meats, fish and vegetables. Native lists a variety of original recipes featuring their entire line of products on their website, www.sfsalsa.com.

Java Soy: Coffee taste, Soy health
Adler Foods joins brands like Rocomojo and Well-Bean with the introduction of Java Soy, a blend of specialty roasted non-GMO soybeans and 100% Colombian coffee. Each cup of Java Soy contains 5 grams of soy protein with half the caffeine of a regular cup of coffee, yet all of the taste.

Adler attributes this to the particular variety of soybeans the company has carefully selected and also to a specialty roasting process that the company stumbled upon while creating the product. Java Soy is currently available as regular or decaf in four flavors, Breakfast Blend, Caramel Cream, French Vanilla and Vanilla Hazelnut. For more information go to: http://www.evansmarketinggroup.com/javasoy.html

Celestial Dreams Up New Frozen Dessert
One of the newest additions to the nondairy frozen dessert world is Celestial Seasonings Tea Dreams from The Hain Celestial Group, a combination of two already successful products lines, Celestial Seasonings' tea and Rice Dream's frozen desserts. The line includes Vanilla Ginger Spice Chai, Chocolate Caramel Chai and Cinnamon Apple Spice. All are lactose-free and contain no refined sugars.



There's a New Burger in Town

The Hawaii Taro Company is pioneering the way for a whole new meat alternative. Taro is an ancient Polynesian plant used for centuries in Hawaiian cuisine. The Maui Taro burger is a delicious vegan burger made from the entire taro plant. Taro is naturally high in OPCs - Oligomeric Proanthocyanidins, which are potent antioxidants that give the plant its rich purple color.

This mouth-watering burger is high in complex carbohydrates and fiber and low in fat. It is a low glycemic food, which means that it supports healthy blood sugar levels. The taro burger does not contain any wheat or soy, which are two very common allergens. For more information visit http://www.hawaiitaro.com/htc_mtb.html.


Snacks That Roam Free

Free Range Snacks are made up of nuts and dried fruits that are free of unnatural ingredients such as trans fats and preservatives. The Free Range Snack Company roasts their nuts in non-hydrogenated canola oil, which is naturally trans-fat free and unsaturated. Many of the Free Range Snacks are seasoned with Bragg's Liquid Aminos, which provide 16 essential and non-essential liquid amino acids from soy protein. To find out more about these fun new snacks visit http://www.freerangesnackco.com/Index.htm.




Image: Steve Brill


Spotlight on Nutrition: Burdock Root
Overlooked Vegetable Packs Nutritional Punch

Burdock Root (Arcticum lappa) is a highly nutritious and medicinal plant that has often been overlooked. Unfortunately, Burdock has not received the same attention and scientific research as other herbs with similar medicinal qualities. Burdock contains powerful antioxidant compounds, which help to remove toxins from the liver. Many people are not aware of Burdock's liver supportive qualities and end up using Milk Thistle, which is a better-known herb for liver health. The standardized extract of Milk Thistle seed has been extensively researched and therefore has received much more attention and acclaim than Burdock has.

For centuries, Burdock has remained a somewhat obscure folk remedy that has been used to treat a wide range of different ailments. It is a powerful blood cleanser and purifier. A tea made from the root or seeds and taken as a tonic can clear up inflammatory skin conditions such as acne, dermatitis and even poison oak and ivy. Burdock also has potent anti-fungal properties and can been used as a tea or extract to combat stubborn fungal infections such as athlete's foot and nail fungus. Burdock root has a toning effect on the health of the kidneys and enhances their ability to remove wastes from the body's tissues.

The wonders of Burdock do not stop here. Many herbalists call Burdock "The Great Alterative Herb". Alteratives nourish the body on the deepest levels and move the body back into a state of health and well-being. This sounds very vague, and the scientific actions of alterative plants are not yet fully understood. The benefits are thought to be due to the powerful cleansing and purifying actions that these plants possess. Although Burdock is a potent medicine when used alone, its beneficial effects are amplified when it is combined with other alterative herbs such as Yellow Dock Root, Cleavers or Red Clover.

Burdock root is called Gobo in Japan and has been enjoyed there for centuries as a food. The young tender roots have a sweet earthy flavor with just a touch of bitterness. Burdock has more protein, calcium and phosphorus than carrots and is an excellent source of potassium.

Burdock root should never be peeled. Precious nutrients will be lost if this is done. Simply rinse the root in water and scrub it gently to remove any loose dirt. Burdock root makes an excellent addition to almost any vegetable dish. It is particularly favored in soups, stews and stir-fries.

Whether it's taken as a tea, extract or food, Burdock root is a remarkable plant. As Americans discover it's countless benefits, this amazing root may finally end up receiving the praise and recognition it truly deserves.

Burdock with Herbs and Marsala
Serves 4
Prep Time: 25 minutes

With its earthy, yet delicate flavor, Burdock tastes like artichoke hearts. Look for Burdock in health-food stores, local farmers' markets, or Asian produce markets. The roots come in a variety of shapes and sizes, but are generally long like a carrot or parsnip.

1 large burdock root, scrubbed and trimmed, but not peeled
2 TB red wine vinegar
1 TB extra-virgin olive oil
2 cloves garlic, minced
3 TB dry marsala wine
1/2 tsp dried herbs de provence
1/2 tsp salt
1/4 tsp pepper

•  Cut burdock crosswise into 1/4"- thick slices; as you work, drop burdock into bowl of water with a little vinegar to prevent discoloration.

•  In a medium saucepan, bring 4 cups water and 1 TB of red wine vinegar to a boil over high heat. Add burdock; return to a boil. Reduce to a simmer and cook 20 minutes or until burdock is tender. Drain.

•  In a medium nonstick skillet, heat oil over medium heat. Add garlic and sauté for about 30 seconds until garlic is fragrant. Add drained burdock and cook one minute or until lightly coated.

•  Add wine, herbs de provence, salt, pepper, and remaining 1 TB vinegar and cook two to three minutes to blend flavors.

Nutrition Info
Per Serving: 81 calories, 3.5g total fat, 0.5g saturated fat, 2.5g monounsaturated fat, 0.3g polyunsaturated fat, 1.9g dietary fiber, 1g protein, 10g carbohydrate, 0mg cholesterol, 295mg sodium  

Sources:
Brinker, Francis, Herb Contraindications and Drug Interactions , Eclectic Medical Publications, Sandy, OR, 1998
Green, James, The Herbal Medicine Maker's Handbook , The Crossing Press, Freedom, CA, 2000
Hoffman, David, The New Holistic Herbal , Element Books, Rockport, MA, 1990 Wood, Rebecca, The New Whole Foods Encyclopedia , Penguin Books, New York, NY, 1999




Natural Food Stores Keep Healthy Edge By Janet Forgrieve of Rocky Mountain News
Natural food grocers - including Whole Foods and Wild Oats - held their own last year, despite increased competition from mainstream supermarkets and mass merchandisers, a new survey shows. The survey was a joint effort by natural foods merchandiser and Nutrition Business Journal, two trade publications put out by Boulder-based New Hope Media. Story>



NOP Personal Care Policy
by David Browne, SPINS' Director of Content Development
On April 22nd, 2005, the USDA National Organic Program (NOP) announced that as of October 21st, 2005, personal care products and cosmetics can no longer use the 'USDA Organic' seal at all, even if companies have met national organic standards requirements for food. However, certification from 3rd-party sources such as QAI, CCOF, and Oregon Tilth can be indicated on labeling where organic agriculture ingredients are used.

This announcement comes one year after the policy change was initially proposed but it was rescinded after intense public reaction. The new policy also contradicts the 2002 USDA directive that invited body care companies to invest in certifying NOP qualified products. At that time, the department opened the door to making a wide range of other products eligible for the label, including pet food, dietary supplements, textiles like cotton T-shirts and fish. Fish and pet food were not in the new announcement and at this time, the department is creating task forces to make rules for certifying them. Also still being decided is whether dietary supplements can use the seal.

Since 2002, many key natural personal care manufacturers in the Natural Products Industry such as Dr. Bronner's, Aubrey Organics, Aura Cacia, and Nature's Gate, spent years and a huge investment of capital sourcing organic ingredients and in the case of Aubrey even certified their manufacturing plant as organic. With this news, Dr. Bronner's appears to be the first to fight back. On June 2nd, the manufacturer announced its intentions through a press release on the Organic Consumers Association website to continue to label its products "certified organic" in accordance with the NOP rules and to display the USDA seal. President David Bronner was quoted as saying "the USDA NOP has been contradicting itself in ways that prejudice the rights of producers and consumers and will not stand up in court." Perhaps other organic personal care companies will also stand up to the proposed changes.

With the NOP announcement, the Organic Trade Association has commented also. On the OTA website, an April 22nd press release quotes Katherine DiMatteo, OTA's executive director, as saying "Fortunately, OTA's efforts to develop standards for organic personal care products are nearing completion. OTA will encourage companies to use these industry standards once they are finalized and will look at legislative measures that bring assurance to consumers and create a level playing field for these companies."

Ultimately, it's clear at all points in the industry from consumer to distributor, retailer, and manufacturer, that the lack of NOP standards that are clear and consistent with personal care products (and for that matter pet foods, etc) is entirely frustrating and quite honestly unacceptable. The regulation that would treat organic agricultural ingredients such as olive oil or flax seeds as acceptable to bear the USDA Organic Seal in foods but not when used in soap or skin lotions is illogical and exposes a clear deficiency in the NOP standards. The regulation appears quite arbitrary and certainly unfair, and will further confuse consumers and anger manufacturers, particularly those that dedicated the last few years and literally millions of dollars to offer organic personal care products to consumers wanting an environmentally friendly product that promotes sustainability. It is an ironic and backward leap for the NOP, a program who's advisory members are striving to improve and standardize organic regulations so that among other things, manufacturers have a level playing field as it relates to the marketing of their products. This move will in all likelihood yield exactly the opposite results.

More Information:
> Organic Trade Association
> Organic Consumers Association
> National Organic Program



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