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Table of Contents May 2011 • Volume 14, No. 4
28 The Rising of the Green Sun Defying the economic downturn, greenfoods are stronger than ever.
Cover design by: Jessica Carlin
36 Sustainably Yours,Your Favorite Brand
36
Effectively communicating the ‘why’ and ‘how’ of sustainability will lead to a bright future for your brand.
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40 Through the Looking Glass Eye health ingredients come into focus.
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48 Minerals: The Next Generation The market continues to evolve in light of consumer demands, new applications and emerging technologies.
Columns 22 • Word From Wall Street by Adam Ismail
26 • From the Corners of the World by Paul Altaffer & Grant Washington-Smith
24 • Healthcare Practitioner Corner by Erik Goldman 4 • Nutraceuticals World
www.nutraceuticalsworld.com
May 2011
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Departments 8 • Top Of The News • Pfizer sells Capsugel for nearly $2.4 billion; boomer market gets better with age 10 • Editorial • a word from the editor 12 • Nutraceuticals World In Print & Online • line-up of expanded coverage @ nutraceuticalsworld.com 14 • Industry News • SymphonyIRI identifies CPG ‘pacesetters’; half of Americans taking supplements 54 • Nutraceuticals Research • a recap of the latest clinical trials 55 • Supply Source • profile on HealthCo. 56 • New Products • recent nutraceutical product introductions 60 • Suppliers Corner • new developments from industry suppliers 62 • People In The News • who’s who and who’s moving where 64 • Calendar • upcoming industry events 64 • Classified Section • classified advertising section 65 • Advertisers Index • cross reference of advertisers in this issue 66 • The Nutraceuticals Multiverse • a quirky look at nutraceuticals in a parallel universe NUTRACEUTICALS WORLD’S circulation is audited by BPA International. Authorization to photocopy items in NUTRACEUTICALS WORLD for internal or personal use, or internal or personal use of specific clients, is granted by Rodman Publishing, provided a base fee of U.S. $1 per page is paid directly to: Copyright Clearance Center, 27 Salem St., Salem, MA 01970 USA. NUTRACEUTICALS WORLD (ISSN 1531 0671) is published 10 times a year (Jan/Feb; March; April; May; June; July/August; September; October; November, December), in addition to a Company Capabilities supplement and Beauty I&O supplement, by Rodman Publishing Corporation, 70 Hilltop Road, Ramsey, NJ 07446 USA. Phone: 201-825-2552. Fax: 201-825-0553. Periodical postage paid at Ramsey, NJ 07446 and additional mailing offices. Publications Mail Agreement No: 40028970: Return Undeliverable Canadian Addresses to Circulation Dept. or PO Box 1051, Fort Erie, ON L2A 6C7;
[email protected]. POSTMASTER: Send address changes to NUTRACEUTICALS WORLD, 70 Hilltop Road, Ramsey, NJ 07446 USA. Printed in USA. Free subscriptions to NUTRACEUTICALS WORLD are available to qualified individuals. Others are as follows: U.S. one year subscription $95.00, Mexico/Canada one year subscription $120.00 (5% GST required on Canadian orders. GST #134451756). Foreign Airmail one year subscription $195.00. Back issues available: $12/issue. Payment must be made in U.S. dollars via U.S. bank or by Visa or Mastercard. The publisher reserves the right to determine qualification of free subscriptions. Missing Issues: Claims for missing issues must be made within three months of the date of the issue. Also publishers of HOUSEHOLD AND PERSONAL PRODUCTS INDUSTRY (HAPPI), BEAUTY PACKAGING, NONWOVENS INDUSTRY, INK WORLD, LABEL & NARROW WEB INDUSTRY, COATINGS WORLD, CONTRACT PHARMA, MEDICAL PRODUCT OUTSOURCING AND ORTHOPEDIC DESIGN & TECHNOLOGY. Printed in the U.S.A.
6 • Nutraceuticals World
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May 2011
Top Of The News
“Healthy 50+ Consumers are far more willing to pay a premium when purchasing ‘better-for-you’ grocery products compared to their peers.” —Packaged Facts
Pfizer Sells Capsugel for Nearly $2.4 Billion
Peapack, NJ-based Pfizer and Kohlberg Kravis Roberts & Co L.P. (KKR) entered into an agreement in early April in which an affiliate of KKR acquired Pfizer’s Capsugel business for $2.375 billion in cash. Capsugel, a world leader in hard capsules and an innovator in drug-delivery systems, generated approximately $750 million in revenue and manufactured more than 180 billion hard capsules in 2010. “The transaction is an endorsement of Capsugel’s consistent success to date and its potential for future growth with KKR, a firm with deep industry expertise and a long history of partnering with market-leading businesses to take them to the next level,” said Guido Driesen, president and general manager of Capsugel. “Capsugel’s employees and I are excited to work with KKR and eager to enhance the value of our business in partnership with our customers.” During the past 34 years, KKR has invested in more than 185 transactions with a total value of more than $435 billion. KKR’s current private equity portfolio includes more than 60 portfolio companies with more than $210 billion of annual revenues and more than 900,000 employees.
Boomer Market Gets Better With Age
Financial and physical wellness have become mainstays of Baby Boomers, as they and other influential older American adults continually discover that some things in life truly do get better with age—including themselves. According to “Healthy 50+ Americans: Trends and Opportunities in the Emerging Wellness Market,” from Packaged Facts, changes in thinking about what it means to get old have occurred alongside a rising concern by consumers of all ages about doing what it takes to improve their health and wellness. The report defines “Healthy 50+ Consumers” as the 26 million Americans 50 years and older who are pursuing a wellness regimen that includes healthy eating and regular exercise activities such as fitness walking or swimming. Healthy 50+ Consumers have an aggregate household income of $1 trillion, and comprise 25% of adults in their age group and 12% of all adult consumers. Packaged Facts projects that the aggregate household income of Healthy 50+ Consumers will total $1.3 trillion in 2015, representing cumulative growth of 29% between 2010 and 2015. The financial strength of Healthy 50+ Consumers makes them a formidable force regarding the nation’s big picture economic stability and recovery. Nearly one in four (24%) Healthy 50+ Consumers has a household income of $100,000 or more, compared to 17% of other consumers in this age group. They are also more confident about the overall economy and their own financial futures. In addition, Healthy 50+ Consumers shop more often, dine out more regularly and travel more frequently. Marketers of consumer goods and services have made Healthy 50+ Consumers prime targets. And because healthy eating is a key aspect of a wellness program for those in the 50+ age group, food companies have begun to aggressively target the cohort, especially since Healthy 50+ Consumers are a critical segment for supermarkets and specialty food stores focusing on organic and natural foods. Further, exclusive data from Packaged Facts’ consumer survey indicate that Healthy 50+ Consumers are far more willing to pay a premium when purchasing “better-for-you” grocery products compared to their peers.
8 • Nutraceuticals World
www.nutraceuticalsworld.com
May 2011
From The Editor
It’s Not That Easy Being Green Kermit the Frog (arguably the most famous Muppet) sings a popular song about how hard it is to be green. Turns out he’s not alone. Many companies are finding it hard to go green in this day and age of environmental and social responsibility. And consumers are having a tough time with it too. The problem, according to some experts, is that organizing a company’s priorities around a “green” mission is a tall order. Similarly, consumers are finding it challenging to work green into their lives. A report released April 17, five days before Earth Day, said,“Many of the environmental messages are not just failing to close the ‘Green Gap,’ but are actually cementing it by making green behavior too difficult and costly from a practical, financial and social standpoint. Many of the world’s leading corporations are staking their futures on the bet that sustainability will become a major driver of mainstream consumer purchase behavior. Unless they can figure out how to close the gap, there will never be a business case for green.” Published by OgilvyEarth, “Mainstream Green: Moving Sustainability from Niche to Normal” found that most consumers feel green marketing is irrelevant and alienating. Moreover, it said half of Americans think green and environmentally friendly products are marketed to “Crunchy Granola Hippies” or “Rich Elitist Snobs,” rather than everyday Americans. The report also identified a segment of consumers referred to as “Middle Greens”—those consumers who offer the biggest opportunity to create the change the world so needs. But, the report said, “Until green products and services feel normal and adhere to normative pricing, the Middle Greens are unlikely to embrace them.” This segment represents a whopping 66% of consumers, who “are pretty much ignored by marketers,” according to OgilvyEarth. Also problematic, there is a growing sense of skepticism among consumers who just don’t believe companies are being true to their word when it comes to their social and environmental commitments. To counter this, guest author Darrin Duber-Smith lays out a plan for effectively communicating green initiatives to consumers (page 36). At the very least, a green marketing campaign should include truth and transparency. “The key in avoiding ‘green washing’—and the backlash that inevitably comes with overstating your social and environmental commitment—is authenticity,” he said. “Simply changing your logo and brand name for the purposes of exploiting the sustainability trend without a credible commitment and plan can result in major scrutiny and irreparable harm to your brand’s reputation.” I think the other key to success for all involved in the green movement is simplicity. Because whether you’re talking “Green”or “Socially Responsible”or “EnvironmentallyFriendly”or “Sustainable,” the goal is the same: to make the world a better place. And if that’s not enough for companies and consumers, perhaps some advice from Kermit would help.“When green is all there is to be, it could make you wonder why, but why wonder…I’m green and it’ll do fine. It’s beautiful and it’s what I want to be.” And Kermit should know. His swamp is being ruined by pollution.
Editor: Rebecca Wright (
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Columnists Anthony Almada MSc GENr8, Inc.
Paul Altaffer RFI Ingredients, Inc.
Paula Brown British Columbia Institute of Technology
Jeff Crowther The Natural Products Association (NPA), China
Erik Goldman Holistic Primary Care
Joerg Gruenwald analyze & realize AG
Todd Harrison Venable LLP
Adam Ismail Global Organization for EPA & DHA (GOED)
Doug Kalman Miami Research Associates
Dr. A. Elizabeth Sloan Sloan Trends, Inc.
Grant Washington-Smith Alticor, Inc.
Editorial Advisory Board Steve Allen Nutrition Capital Network
Nancy Childs, PhD Saint Joseph’s University
Steven Dentali, PhD American Herbal Products Association (AHPA)
Loren Israelsen United Natural Products Alliance (UNPA)
Alex Merolli Nutri+Food Business Consultants
Paul Paslaski BioVittoria Limited
Ellen Schutt LaunchNatural
Scott Steinford ZMC USA
Gregory Stephens, RD (Business Insights Columnist) Windrose Partners
Rhonda Witwer National Starch Food Innovation
10 • Nutraceuticals World
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May 2011
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