It's been a busy quarter here at SPINS! As you'll see, we've got a lot to be excited about: new and expanded services, new co-workers and more insight than ever on this always fascinating industry. We hope that you enjoy this edition of Inside SPINS - read on for Natural Products Industry trends, new product releases and company news.

Service Announcements

SPINS Now Reporting on Gluten-Free Products!
	Gluten-intolerance or Celiac Disease affects one in 133 Americans, and it is still believed to be under-diagnosed. Respond to consumer and retail demand for gluten-free products, as well as the growing media attention and general awareness of this dietary need. Do your homework on the products, the categories they play in, and their sales performance with SPINS' gluten-free product reporting.

Why Watch Gluten-Free?
> Over 2,500 products with gluten-free label claims are now on the market, totaling over $662MM in sales.
> Gluten-free product sales have increased by $76.2MM in the last 52-week period, growing at 13%.
> Share of total category sales for gluten-free products is increasing incrementally in nearly all key categories, as these items outpace growth of the categories as a whole.

Source: SPINSscan Natural, 52 weeks ending 8/6/05 and SPINSscan Conventional, 52 weeks ending 8/13/05

More key statistics on sales of gluten-free products >

SPINS' Comprehensive Coding
SPINS' team of Natural Product experts researched over 10,000 items to provide the most complete view of gluten-free products in the retail market. This coding spans 22 relevant categories, for comprehensive analysis of the sales performance of gluten-free products and potential areas for growth in the marketplace.

Reporting Options
Three years of information on gluten-free products and their sales growth is available across channels. Purchase topline or detailed reporting on gluten-free products or add the product attribute to your current database. Right now, a syndicated report on the segment, “Gluten Free Performance and Opportunity Analysis, 2005” is also available. Understand how this trend is affecting the sales of your brand and realize opportunities in this fast-growing segment.

Sell Sheet >

Contact your regional sales manager or Diana Dixon, SPINS' Client Services & Inside Sales Manager, at ddixon@spins.com or 815.609.0607 for more information.

Full Natural Product Category Reporting in SPINSscan Conventional
SPINS is now tracking the sales of Natural Product UPCs in all categories in the conventional Food, Drug, and Mass channels. The expanded coverage of the SPINSscan Conventional service now provides for a complete cross-channel understanding of Natural and Organic sales, all aligned with the SPINS Product Library industry-standard category definitions.

Find out what brands and items are driving the growth of categories such as organic coffee to 93%, or why specialty flavored organic cooking oil is up over 100% in the conventional channel. SPINS is now reporting on 19 additional categories, from food and beverage to personal care and household cleaners. These new categories add $737 Million in coverage to the SPINSscan Conventional service, for a total of $14 Billion in Natural Products sales in this channel.

SPINS Full Category List >

Contact your regional sales manager or Diana Dixon, SPINS' Client Services & Inside Sales Manager, at ddixon@spins.com or 815.609.0607 for more information.




Retailers and Manufacturers, our new Forecasting Model
Want to know what the coming year may bring for your brand, category or store? SPINS' forecasting model can predict your sales performance for the following year based on our retail measurement services. The model allows for the introduction of new items and distribution gains, providing a more complete assessment. Apply SPINS' forecasting model to validate your own internal forecasts for new items or existing product lines.

Contact your regional sales manager or Diana Dixon, SPINS' Client Services & Inside Sales Manager, at ddixon@spins.com or 815.609.0607 for more information.




Promotion Analysis Now Available
Make your promotions pay with the new Promotion Analysis service from our SPINSsight Consulting team. SPINS uses store-level and store-week data from our retail partners to evaluate your promotion lift at the segment and the unit level, and to quantify your return on investment for promotional activity. We can also track retailer, region or store participation. We can evaluate specific national promotions, or the impact of any price reductions to the store-level.

Contact your regional sales manager or Diana Dixon, SPINS' Client Services & Inside Sales Manager, at ddixon@spins.com or 815.609.0607 for more information.



Retailer Partner Training

	Online Training Opportunity for SPINS Retailer Partners! If you didn't make it to our training seminar at Expo East this year, now's your chance to tap into the powerful data applications we covered in DC. SPINS is offering a free, online training to our partners. The session is approximately 90 minutes long and covers:
	> Basic Measures > SPINS' Industry Reporting Suite > Net-Bench, SPINS' online data access tool
Don't miss this opportunity to work directly with a retail analysis expert to make the most of your SPINS information. Training dates run from 10/10/05 to 10/14/05. Schedule your session with our Senior Retail Sales Analyst, Shep Kroner at shepkroner@spins.com today!

Marketplace Reports

Now available online at SPINS.com!
SPINS is pleased to announce our online store, where you can purchase SPINS' syndicated marketplace reports and view key report information and tables of contents. Shop now >

Soyfoods: The US Market 2005
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. View Table of Contents >

Tea is "Hot" Report, 5th edition
Global specialty tea information source, The Sage Group, has partnered with SPINS to create the 5th edition of their Tea is "Hot" Report. The comprehensive market overview covers category definitions, consumer profiles, trends, opportunity gaps, and forecasts. This is a must-have report for any tea industry professional. View Table of Contents >




Industry Trends

Specialty Tea Driving Booming US Tea Industry by Brian Keating of the Sage Group
	The United States specialty tea marketplace is growing by double digits across most product categories and distribution channels. A new generation of tea related products, technologies and services is being rolled out at a very brisk pace. The generally stellar media image for all things "tea" has carried over into every type of consumer product with a positive connotation that is boosting category sales.
Although the specialty tea market is still in an emerging phase of its growth cycle, the vibrancy of early stage entrepreneurial ventures (hundreds of new teas, tea accessories, wholesalers, and shops in 2004) and a handful of established specialty tea brands experiencing multi-year growth patterns are capturing the attention of previously uninterested capital sources. • Green, rooibos (herbal “tea”), organic and flavored longer leaf style (estate, "OP grade") teas are steaming past most other specialty categories with sustainable, double-digit growth. Conventional teas (unflavored, lower grade bagged and instant teas) remain sluggish in food, drug and mass market outlets. • The number of dedicated retail tea operations (cafes, salons, shops, etc.) is expected to grow from an estimated 1,300 to a forecast 2,600 in 2010. Most of these tea ventures will be single mon-n-pop single unit operations combining sales of tea, brewing accessories and limited on-site consumption of exotic beverages. Atlanta based specialty tea retailer Teavana received an injection of venture capital from a Dallas firm that is betting the company will be the first major national chain of retail tea shops in America. • Tea related technology, especially brewing related, are driving consumers into the specialty tea category as innovation is improving brewed tea quality and reducing time needed to prepare the perfect cup of tea. • Bottled ready-to-drink (RTD) tea based beverages slowed somewhat in 2004 – perhaps due in part to category saturation – although sales of organic and other specialty teas combined with juice, herbs and nutraceuticals remains strong. A number of specialty and natural foods retailers have launched their own house brand tea RTD's including Wild Oats and Trade Joe's. • Natural foods retailers remain one of the most dynamic specialty tea sales channel in terms of growth, and SKU offerings of more exotic tea products. • According to Sage Group estimates, US sales of all teas sold through every distribution channel, including retail, food service, and mail order, topped $5.4 Billion in 2004.  $1.1 Billion of these sales were specialty teas sold through both Natural Foods Supermarkets and Food, Drug & Mass Merchandisers (52 weeks ending 12/25/04, SPINSscan Natural and Conventional Channels). • Opportunities for launching tea-related products and retail outlets during the next five years look particularly auspicious. Sage Group forecasts indicate that total annual sales for the entire tea industry will exceed $10 Billion in 2010. Tea Is “Hot” Report Version 5.1 contains fully updated market, sales, channel and packaging type statistics, consumer information, tea product types, and more. Cost: $895.00 Table of Contents: http://www.spins.com/assets/toc/2004TeaIsHot.pdf

Will Echinacea Sales Take A Hit from New England Journal of Medicine Study? by David Browne, SPINS' Director of Content Development
	In a highly publicized study, the New England Journal of Medicine reported that echinacea was ineffective in both preventing colds and treating cold-related symptoms. SPINS' Director of Content Services, David Browne takes a closer look at the industry's response to the study, echinacea sales, and potential growth opportunities for alternative natural cold remedies and prevention. Read more >

Natural Product Consumer Insight

Aunt Candice Bars Get Real Aunt Candice has hopped onto the bar bandwagon with their extensive line of gluten free energy bars. These bars are the perfect snack for anyone interested in lowering their intake of refined sugar. Sugar alternatives such as xylitol and Fruit Trim are used to sweeten the bars. Xylitol is a natural low calorie sweetener that also prevents bacteria from adhering to mucous membranes. Fruit Trim is a blend of white grape juice and brown rice syrup. The bars are also packed with up to 20 grams of rice protein or egg protein, making them a great choice for the growing number of people who have sensitivities to soy. For more information visit http://shop.auntcandicefoods.com/. For more information about Xylitol visit http://www.buzzle.com/editorials/6-6-2005-71156.asp

Clif Bar Goes 100% Organic CLIF Nectar is the first bar introduced by Clif Bar that contains 100% certified organic ingredients. These bars do not contain isolated proteins like most other energy bars. Many people have sensitivities to isolated proteins such as soy and milk casein. Isolated protein is not a whole food and therefore, not an optimal source of dietary protein. The focus of CLIF Nectar is geared more towards whole fruits and nuts. In fact, the Nectar bars contain 2 full servings of fruit in each bar. For more information visit: http://www.clifbar.com/eat/eat.cfm?location=nectar&id=316.

What's a Goji Bar? One of the more interesting contributions to the energy bar movement is EatRaw’s Original Goji Bar. The bar is completely raw, vegan and organic. The featured ingredient is unsprayed chemical free lycium berries otherwise unknown as goji berries. Goji berries have been used as a medicinal food for centuries in Chinese Traditional Medicine. The berries contain properties that stimulate production human growth hormone, which helps to prevent premature aging. The berries are loaded with vitamins and anti-oxidants as well. For more information visit: http://www.eatraw.com/detail.asp?PRODUCT_ID=ER568.

Nature’s Path Expands Beyond Cereal The new Optimum Energy bars from Nature’s Path take all the benefits of Nature’s Path Optimum cereal and pack them into a filling and nutritious bar. The bars are certified organic and come in two familiar flavors; Blueberry, Flax & Soy and Cranberry, Ginger & Soy. Optimum bars are high in fiber and low in fat and contain 7 grams of protein. For information visit: http://www.naturespath.com/products/bars.

Ruth Raises the Bar Ruth's Maca Power bars provide 2000 mg of organic Maca and 4 grams of protein from essential fatty acid rich hemp seeds. Maca is a traditional Peruvian herb used to enhance the libido and energize the body. All the Ruth’s bars are made with SoftHemp™, certified organic shelled hemp seed, making the texture of the bars chewy rather than crunchy. Ruth's Maca bars come in three unique flavors, Lemon Hazelnut, chocolate ginger and Ginger Almond. For more information visit: http://www.ruthshempfoods.com/.

SPINS Company Updates

New SPINNERS
Join us in giving these bright new additions to our team a warm welcome!

Mary Banach is SPINS' new Production Manager, replacing Jaimie Locke. Mary comes to SPINS with over 10 years of database development and management experience. She began working on databases as a software trainer at the college level, then ran her own database consulting business for six years. Before joining SPINS, Mary was an Account/Systems Manager with R&O Aurora, where she was responsible for creating, maintaining and training staff on company database and accounting systems.

Stephen McClure is our Whole Foods Account Director. Stephen joins us from NPD Group, where he managed POS-data analysis and consumer research for the automotive industry. He brings ten years of experience with retailer and manufacturer data analysis and application to SPINS. This includes five years at Randalls managing category analysis, and two years with Georgia Pacific as Manager of Syndicated Marketing Research. Stephen earned his Bachelor's degree in Marketing from Texas A&M, and his MBA from Rice University.

Robert Murphy is SPINS' new DBA. His 14 years of IT experience includes database administration, data management, and e-commerce work. Robert was last with Sears Holdings where he served as a Database Systems Architect. His personal interests include computer technology, literature, aviation, long distance running, and his family. Robert graduated from the University of Illinois with a Bachelor's of Science in Aerospace Engineering.

Mitsie O'Brien, our new Dedicated Analyst, comes to us from Market6, where she was responsible for client services, project management, implementation, and support of systems and services that help major CPG marketers and retailers achieve supply chain and promotional efficiency. Prior to Market6, Mitsie worked at Planet U where she was directly responsible for the management of Client Services, Order Management, Category Management, Promotion Execution, Information Services, and Consumer Response functions. Previously, Mitsie worked with Nestle as a Financial Manager.


SPINNER Promotions
SPINS is proud to announce the promotion of three of our especially dedicated staff. We owe many of our successes to their insight, leadership and passion for the Natural Products Industry.

Amy Jacobsen, Director of Business Development
Chris Meyer, Director of Data and Reporting Services
Michael Movitz, Vice President of Professional Sales and Services

Our heartfelt thanks and congratulations go out to each of you.


Speaking Events
Prepared Foods New Products Conference, October 16-19, 2005
Naples, FL
Don't miss SPINS' President, Jeff Nibler present Natural Product Market Trends and Consumer Dynamics at the upcoming New Products Conference. He'll share exclusive retail sales data and consumer information from our Consumer Panel Reporting service for an up-to-the-minute look at Natural Products Industry trends. October 17th, 11:15-11:50am.



Charitable Contributions
The Breast Cancer Fund believes that most breast cancer can be prevented, and has adopted the bold mission to eliminate the environmental causes of the disease.  Through public education, policy initiatives, outdoor challenges and other innovative campaigns, the Breast Cancer Fund mobilizes the public to secure the changes needed to stop this devastating epidemic. SPINS was fortunate to have a representative come speak to our staff about key issues in consumer and industry education regarding the safety of personal care products.

Vibha's vision is to ensure that every underprivileged child attains his or her right to education, health and opportunity. Its vision is to educate, empower and enable every individual who wishes to make a positive difference in the life of an underprivileged child. SPINS sponsored Satya Ramanathan, a member of our retailer services team, to participate in Vibha Austin's Support a Child 5K Walk/Run last Sunday.

American Red Cross Katrina Relief Fund SPINS contributed to the Red Cross relief efforts in the devastated areas of Hurricane Katrina's wake, and matched our staff's donations to the cause. Our sympathies go out to all of the families and businesses affected by this catastrophic natural disaster.

Inner City Impact provides services to 700-800 kids per week in the inner city of Chicago during its summer program.  It offers sporting events, camping trips, educational programs, job skill development and mentorship to kids to help them escape a life of drugs, gangs, and prostitution.  This summer, SPINS sponsored a volunteer program leader. Here is his report back to our CEO, Tony Olson:

Dear Tony, Sorry this has taken so long. So much has taken place both with Inner City Impact and my own spiritual growth. First off, I'd like to thank you for your financial support. None of this would have been possible without your generosity. An average day here looks pretty crazy. Starting at 8:00am setting up games, lessons and tutor rooms to being involved with every activity. I'd visit the homes in the community to connect with the families and for camp sign-up. Once a week we'd have outings. This is where we'd take the kids to laser tag, the zoo, or swimming. I was being stretched to say the least. But with all the shouting and bouncing off the walls, relationships were being formed. And just when I thought I wasn't cut out for this, my eyes were opened to the bigger picture. I wish you could have seen the look on their faces when on the last day of day camp I used 5 gallon buckets, chairs, and trash cans for a drum/team-building lesson. The actual lesson time was a disaster. Nobody would listen. Yet during their own free time, one by one, they came into the room to join me. And so it got louder and louder – and yes, hotter – the room was packed with all the kids working together to create a song, a sense of unity. Out of this, I earned more trust and currency with the kids which has allowed me to move deeper into some of their lives. As the summer rolls to an end, I've decided to continue on with Inner City Impact. Music will be one of the main ways that I'll be working with these kids. Thanks again for your gift for it not only allowed God to do an amazing work in the kids' lives, but also in mine. From the heart, Mike

Partner News

NPCI Sales Seminar
Becoming a More Effective Sales Manager in the Natural and Specialty Channel, October 18, 2005
San Mateo, CA
This one-day seminar will be led by Bob Burke and John Maggiore, and will include SPINS' expertise on syndicated data applications. Bob Burke is co-author of The Natural Products Field Manual, Staking Out Space on the Supermarket Shelf, and The Sales Manager's Handbook. Bob is a consultant in the natural and specialty products industry and former VP of Sales and Corporate Development at Stonyfield Farm. John Maggiore is the former Category Manager of Natural Foods at Stop & Shop and will be speaking on selling to supermarkets and succeeding in the mainstream grocery channel.
Take advantage of a $100 discount for all SPINS' clients! Order form >

SPINS Partners with LoyalTec
LoyalTec helps its retail clients use their own transactional data to transform anonymous customers into loyal ones. It does this by capturing and mining point of sale data and leveraging these analyses to devise and execute direct-to-consumer marketing campaigns. These campaigns draw on transactional histories of each individual customer so that the marketing messages are relevant, timely, personal and anticipated. All programs are opt-in.

For many clients, LoyalTec delivers a full range of services from devising a method for identifying customers and motivating them to opt in to marketing programs (e.g., rewards programs), to capturing and storing its client's transactional data on LoyalTec's secure data warehouse, to mining the data and developing customized marketing campaigns, to executing those campaigns through LoyalTec's own direct-mail house.

In contrast to typical media-based (interruption-based) marketing approaches, LoyalTec's data-based campaigns are all measurable, and as part of its standard delivery, LoyalTec provides return on investment analysis for its marketing campaigns.

LoyalTec's platform is POS system agnostic meaning that LoyalTec can draw transactional data from a wide variety of retail POS systems. In response to the demand from smaller retailers that have no POS system, LoyalTec has even devised an entry-level service called Boomerang.

Based on significant demand from the natural products industry, LoyalTec has developed relationships with several other natural products industry service providers and is proud to partner with SPINS to deliver data-based solutions to natural retailers.

You will find more information, including four short (and even entertaining) white papers (e.g., "If Beatrice Blue is Such a Great Customer, How Come You Couldn't Pick Her Out of a Police Lineup? The Causes and Costs of Customer Defection Download), at LoyalTec's web site: www.LoyalTec.net.



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