Rebecca Wright12.01.07
Two issues brought up repeatedly in this year's "State of the Industry Update" were good manufacturing practices (GMPs) and safety, and for good reason. After more than a decade, FDA finally published GMP regulations for dietary supplements, and while the jury is still out with regard to the details, overall it seems the industry got what it wished for. In terms of safety, the dietary supplement industry welcomed new adverse event reporting (AER) legislation toward the end of last year. Long term, many companies hope the new law will prove the inherent safety of this industry's products. On the food front, FDA unveiled new safety plans in November in response to recent instances of contamination and adulteration in the supply chain. In light of this development, companies in both the dietary supplement and functional food space should prepare themselves for a whole new set of challenges going forward.
Quality was another popular word threaded through many of this year's comments. Some executives believe quality will be THE differentiator when it comes to consumer purchase in the future. But buyers must continue to beware-not all "quality" products will be created equal.
On the bright side, a healthy consumer market may be just what the doctor ordered. It seems a more open-minded public continues to demand supplement and functional food products they can add to their personal healthcare regimens, and doctors and nurses seem eager to join the "prevention" crusade. Is mainstream medicine finally on our side?
2007 will be remembered as a year of significant change for supplements and food, but only time will tell if those events helped push these industries in the direction of true progress.
"Two things stand out for me as we enter the 4th quarter of 2007. The landscape for food and nutraceutical safety will be radically re-shaped over the next few years. The changes in the supply chain will impact all of us in the industry in some way. As usual where there is disruptive change, some entrepreneurs will have benefit from the opportunities and create new businesses, while for others the increased cost and complexity of global sourcing will present huge challenges.
"The impact of our business activities on the communities in which we operate will be scrutinized much more closely. Social responsibility will be the norm and not a 'nice to have' requirement. Every company will need to demonstrate what it is doing to mitigate the impact on our environment and consumers (as well as employees) will require action as part of the contract when they buy a product or service. This implies that the bar for differentiating a product or a company through the social or environmental impact is being raised. Going green will become essential for long-term corporate viability."-Steve Allen, VP New Ventures, Nestl
"A new lexicon is quickly entering our thinking and our business. Globalization now means country of origin labeling (COOL), import delays, worried consumers, exploding bubble bath, Congressional action and new motivation to 'know thy supplier.'
"In this new global market, the U.S. dollar, once a financial benchmark and gold standard, is weakening at an alarming pace, thus disrupting financial and economic modeling essential to trading of finished goods and commodities between the U.S., Europe and Asia.
"Certification, authenticity, fair trading and verification are only a few of the new buzzwords, but many lack substance and credibility. Will these critical concepts end up as marketing exercises? Let's hope not.
"China is today's piata, but look to them to answer the bell. They remain the powerhouse player in the global nutrient and natural products marketplace. We should see China's struggle to improve as a mirror image of our own challenges.
"And, as always, there is an X-factor. Could it be the specter of colony collapse disorder (CCD)-a mass disappearance of honeybees that leaves most of our key herbal products and organic foods and vegetables unpollinated and barren? This may be our wake-up call to urge the world to recognize the importance of sustainable practices and a bedrock reason to protect the environment that feeds us all.
"On the bright side, we can all celebrate Nutraceuticals World's 10th Anniversary next year. Drinks are on the house."-Loren Israelsen, Executive Director, United Natural Products Alliance (UNPA)
"I am sure food safety will be echoed by many as a critical issue this year, but I actually think that the dietary supplement and functional food industries are better off than many other industries, including the non-functional food industry. This industry has been battling the incorrect perception that it is unregulated for many years, and as a result there have been many efforts to raise quality and invest in science. I am fortunate in that I work in the long-chain omega 3 space where these efforts have been paramount for many years, but even in other areas of the industry there has been significant scrutiny over dietary ingredient sources. The new GMPs, while not prescriptive about how to prevent these issues, at least will get companies to scrutinize their suppliers more closely and that is really the answer. In nearly every case of FDA or USDA enforcement on tainted foods or supplements, the problem goes back to the beginning of the supply chain.
"I believe this is because everybody, starting with the retailers and working back through the value chain, wants to cut costs. So there will be a greater burden on any company that puts pricing pressure on their suppliers to demonstrate that the products they sell are safe. I also believe that another positive consequence of this will be greater differentiation on the retail shelf. If companies want to grow their profits, they can cut costs, raise prices or increase the number of units they sell. Product differentiation touches on the latter two points. Some companies will be willing to pay higher prices for ingredients they can trust, and will make up for it with a higher priced consumer product that is positioned far differently from its competitors."-Adam Ismail, Executive Director, Global Organization for EPA and DHA Omega 3's (GOED)
"Any discussion about the dietary supplement industry must acknowledge that it is in a state of flux, driven by increasing recognition of the impact that implementation of cGMPs will have. With regard to botanicals, standards continue to be set such as AHPA's Good Agricultural and Collections Practices (GACP) that will have long-term impact on the raw material supply chain and product quality. Also, AHPA continues to take steps to make available simple tools for the detection of adulteration in some common products such as Hoodia gordonii powder and bilberry extract."-Steven Dentali, PhD, VP Scientific & Technical Affairs, American Herbal Products Association (AHPA)
"As we reflect back on the past year and we look forward to the future, I believe it is important to realize that the emerging health and wellness trend of the 1980s and 1990s is now a core component of mainstream society. Heart disease, obesity, diabetes and other diet-related diseases are still growing as the first baby boomers begin to collect their first social security checks. The difference today is that our industry is now giving consumers more options and the educational material to provide them better choices. It has become an issue of personal responsibility rather than an issue of limited choices.
"Looking toward the future, I believe personal responsibility is going to be a major trend. I believe that more consumers are taking personal responsibility for their health and wellness. I also believe that these are the same consumers who are concerned about our environment and the sustainability of our natural resources.
"I predict a merging of personal and social responsibility. Health and wellness solution providers will also need to be on the cutting edge as it relates to sustainability. In the future, it will not be good enough to just make a 'better for you' offering. The solution will need to be essential to the body and the environment. It will relate to the packaging of the product, where it is made, how the products were processed and how manufacturers leave a proper green footprint.
"The core health and wellness consumer is taking responsibility for their health today. In order to truly connect with them in the future, manufactures need to understand and deliver solutions beyond just health and wellness."-Paul Paslaski, Market Development Director, Cargill Health & Nutrition
"Quality continues to be at center stage for the nutraceuticals industry in 2007, and this will likely be the case in 2008 as well. After many years in preparation, FDA finally published guidelines for GMPs for dietary supplements, and the requirements will begin to effect next year.
"2007 will also be remembered as the year of several new, highly publicized, food safety issues that raised national attention to quality control standards especially in relation to imported products. As the industry matures, focus on quality is at least equally important as focus on innovation. This represents a major opportunity for those that embrace it."-Paul Altaffer, Product & Business Development, RFI Ingredients
"The changes in EU health claim regulations for all food and supplement products came into force in 2007. It is, of course, too early to see any effect, but the general opinion in the industry so far seems to be that the more stringent regulation and the two-year transition period are both going to stifle innovation. A case in point is Article 18, which states that claims can only be submitted once the positive list of accepted claims (Article 13) has been drawn up at the beginning of 2010. As it stands, this means that any claim supported by new scientific research cannot be used before then, and the industry will have to wait two years before getting a return on innovation. On the upside, an accepted proprietary claim, based on a placebo-controlled human clinical trial, can then be used in all 27 EU member states in the future. We already see a strong increase in requests to perform such studies."-Dr. Joerg Gruenwald, President, analyze & realize ag
"I think the industry is poised for gains if manufacturers are ready to accept the constraints of new dietary supplement GMPs and control their claims without sufficient proof of efficacy and safety in the dose prescribed. After all, we don't want consumers looking at all these products wondering why anyone dies or gets disease."-Fergus Clydesdale, PhD, Distinguished Professor & Head of the Department of Food Science, University of Massachusetts, Amherst
"Newly formed Nutri+Food Business Consultants (NFBC), widely recognized contributors to various health and wellness market segments, sees a continuation in trends that emerged during 2007. Driven by consumer desire for efficacious, natural, good tasting products delivering health benefits, the dramatic proliferation of consumer products formulated with omega 3's and 'superfruit' beverages will continue. The financial state of the health and wellness industry is marked by high valuations and dramatic growth of merger and acquisition activity. This is bound to continue. Finally, as major consumer packaged goods companies have reduced their research staffs, we have seen increasing interest in 'inno-mediaries,' external sources of technical or market information supporting the movement to 'Open Innovation.' NFBC offers custom TechQuest services to meet this increasing demand."-Alex Merolli, Principal, Nutri+Food Business Consultants
"The macroeconomic climate in Japan continues to be positive, without the obvious excesses that characterized the overheated 'bubble' economy that existed in Japan in 1990. The primary demographic driving force has been the rapid aging of a population that is now actually in decline. The ever-increasing costs of healthcare guarantee a future market opportunity for less expensive functional foods and natural health products to help maintain health. Consumer expectations regarding the safety and efficacy of such products remain high in Japan, a clear challenge for quality-oriented, science-based food and beverage product and ingredient companies."-Ron Bailey, President, California Functional Foods
"In our sphere, product quality, the biggest news of the year (if not the decade or century) was the enactment of the dietary supplement GMPs. This profoundly changes the way everyone does business. Regardless of whether you have one or three years to comply, the time to plan is now. For some, bringing all or part of the quality testing function in-house will make perfect sense. For others, establishing a system for outside testing is in order. In either case, this takes resources and time.
"One important but overlooked GMP provision is that the client is responsible for the work of its outside analytical lab. No longer can anyone believe they are 'covered' because they used an outside lab and have a certificate of analysis (CofA) in the file; if the analysis is no good the client is at risk. Careful due diligence is now required. Price and turn-around time, while important, are not the only factors to consider. A CofA is merely a piece of paper; what is behind that piece of paper is what counts."-Robert Green, President, Integrated Biomolecule
"This past June marked an important event for the dietary supplement industry-FDA's issuance of a final rule regarding current good manufacturing practices (cGMP) for dietary supplements. The final rule establishes minimum cGMPs necessary for activities related to manufacturing, packaging, labeling or holding dietary supplements to ensure the quality of the product and to promote and protect public health. The law went into effect on August 24, 2007, and the compliance dates are phased in-depending upon the number of employees the business employs-at one, two and three-year increments from the June 25th final rule publication date.
"In the food realm, consumer confidence was shaken earlier this year by the events involving melamine contamination of pet food and the use of lead paint on many consumer products. Consequently, I feel the cGMP final ruling is a timely requirement of the dietary supplement industry, representing an opportunity for it to learn from the mistakes of others. It's easy to lose the trust of the public and hard work to earn it back."-Richard Barndt PhD, Director, Product Assurance & Regulatory Affairs, National Starch Food Innovation
"'The Phenol Phlood' captures my impressions of what's new on the exhibit floor at food and supplement conferences-an ever-expanding offering of foods with a phenol content, and hence antioxidant activity, and hence presumed health benefits. These phenolic compound sources-example: all the 'superfruits'-are rushing to fill the gap left by the disappointing results from large clinical trials with the old-school antioxidants: vitamin C, vitamin E, selenium, beta-carotene. Given the competition, those that can buttress their health statements with evidence from human studies are more likely to succeed."-David Mark, PhD, Founder, dmark consulting LLC
"Herbal products continue to be the greatest frontier for new discoveries in health applications, bioactive compounds like resveratrol, and innovative processing technology. Indigenous ethnobotanical traditions in places like Asia are an infinite source of new knowledge for the developed world to improve people's health and quality of life. The challenges we face are how to more quickly tap into these knowledge resources without compromising health and sustainability. Climate change, decreasing land and water resources will be the imperative for how to better grow and process botanical and food crops using the most renewable energy and conservationist methods available."-Brien Quirk, Director of R&D, Draco Natural Products
"The functional food and beverage segment continues to grow, with mega-brands like Coke, Pepsi and Kellogg's continuing to introduce new products. Health-conscious consumers are demanding that foods and beverages do more than just 'taste good.' Foods that can also address their health concerns including cardiovascular disease, diabetes, weight management and pain management have widespread appeal. Consumers have also become more information savvy and look for legitimate products that work. InterHealth's products target those conditions and are backed by scientific and clinical research consumers demand."-Paul Dijkstra, CEO, InterHealth Nutraceuticals, Inc.
"Ten years after the first big functional food launches in the west-of cholesterol-lowering and probiotic products-it's finally become clear that the future of functional foods lies in dairy and juice products, far more than any other category. Digestive health will become the single-biggest health benefit area in the U.S., as it already is in Europe and Japan. All other benefit areas will be niche, some bigger, some smaller. Some, such as heart health and cholesterol-lowering, will be very crowded with lots of products marketing health benefits that are natural and intrinsic to the products and able to charge less than those based on added heart healthy ingredients. Smart companies have already learned to focus on low volume, high value areas-more people will have to learn to do that since the market for health is fragmenting into many, many niches, each with their own drivers and characteristics."-Julian Mellentin, Editor & Director, New Nutrition Business, Centre for Food & Health Studies
"The newly established GMPs were a prominent issue for the nutraceutical industry this year, and they will continue to be so in the upcoming year as companies prepare for the transition. These new regulations require more from manufacturers, as well as increase the accountability of the raw materials suppliers that deliver ingredients to them. Manufacturers working to meet the new standards can make this task just a little easier by looking to suppliers who already have thorough quality controls in place. This is because a company who has implemented relevant testing and controls has already demonstrated an internal commitment to the quality of their products.
"Triarco, for instance, was one of the first companies to make TLC identity testing, along with a certified voucher system, part of routine quality control. Triarco scientists took it a step further when they created Fingerprint Herbal Extracts, by confirming marker compounds and desirable bioactives with HPLC. The HPLC test also helps to safeguard against the economic adulterants, which can cause havoc further along in the formulation and production process.
"Bottom line: a good supplier is a responsible partner that can help navigate new regulations and make a manufacture's job run a little more smoothly, and a supplier is in a better position to do so when they have already established their commitment to the integrity of their ingredients."-Rodger Rohde, President, Triarco Industries, Inc.
"Extensive food recalls shook consumer, supplier and manufacturer confidence, and turned attention to the FDA for new safety regulations. As a first step, the FDA revised current GMPs and initiated the Adverse Event Reporting (AER) bill. This is the beginning of an increasingly regulated industry for functional foods and supplements. At Gourmetceuticals, we believe all ingredients should be manufactured through cGMPs and be scientifically validated through human clinical trials. This is our commitment to partners and consumers, and we expect to see more companies move in this direction with functional foods in 2008 and beyond."-Garrett Lindemann, PhD, CEO/CSO, Gourmetceuticals
"Safety, quality and innovation are crucial to the success of the nutrition industry today. With increased consumer concern for product safety and continued negative media on vitamins and supplements, adherence to the quality standards and practices of GMP, HACCP, USP and ISO are ever critical. DSM's own quality standards meet and often exceed the regulatory requirements in the markets it serves worldwide. In addition, consumers today have broader access to information than ever before and expect their individual health needs to be supported by greater choice via expanded channels. DSM continues to utilize extensive resources in market research, science, regulatory and technology to keep our customers ahead of the curve as we develop solutions to meet the health needs and desires of today's consumers."-Lynda Doyle, Director, New Business Development, DSM Nutritional Products, Inc.
"Recent events have made consumers suddenly aware that their food chain may not be as safe as they had once believed. This awareness will grow over the next few years as more contaminated food products are exposed.
"This will drive the organic movement into the mainstream as the safest and most reliable food chain. With this growth will come tremendous strain on organic certifiers, growers and processors to maintain the standards that have made 'certified organic' a trusted household name.
"Long-established ingredient suppliers with their own organic farms and organic processing, like Synergy Production Laboratories, are well-positioned to take the lead in providing a dependable supply of organic raw materials."-Steven Lattey, Director of Raw Materials Sales and Business Development, Synergy Production Laboratories
"Expect growth in prebiotics and 'functional probiotics.' Functional categories of probiotics include osteoporosis, immune health, women's health, oral health and weight loss. But given the expense of probiotics and others such as functional lipids, expect closer scrutiny over quality standards in these categories.
"'Exotics' remain a source of future innovation. One might expect to see more product claims around ORAC as it relates to these exotic fruits and vegetables.
"The 'Beauty from Within' trend will continue to grow as antioxidants and anti-inflammatories are scientifically demonstrated to have a benefit on skin. Watch green coffee berry and kiwifruit seed extract as emerging ingredients."-Grant Washington-Smith, Managing Partner, CANZUS Partners International, A Business Development & Brand Management Consultancy
"As we conclude a successful year and the use of our recently expanded and updated facilities, All American Pharmaceutical looks forward to 2008 and the opportunity to grow Kre-Alkalyn, the world's only stable creatine, and Kre-Celazine, our innovative joint health product. We're also looking forward to introducing additional patented products and processes in the coming year. As the industry continues to improve with new cGMP standards, and with consumers becoming increasingly educated about valid brands and ingredients, All American and its partners will continue to both implement and communicate progressive practices to ensure safe, consumer-friendly products. We welcome the new year with anticipated sales growth and the ability to take part in an ever-improving industry that aims to improve human health and well-being."-Joe Archer, Vice President, Sales & Marketing, All American Pharmaceutical
"2007 has been a 'break out' year for the mainstreaming of the 'Health and Wellness' paradigm that has long been the mantra for a big part of the dietary supplement industry. Leading brands of cultured dairy products, fruit juices and other beverages, chocolates, and breakfast cereals are all increasingly having their nutrition mission complemented with the addition of appropriate ingredients from our industry. Hain's echinacea foray into chicken soup several years ago was revolutionary, but perhaps premature and also not sufficiently carefully positioned. The synergistic usage of pills and capsules with fortified food, beverage, and cosmetics is an important growth area. Through improved scientific support for our nutraceuticals, as well as by addressing the distinct functional and regulatory challenges of using them in foods, we enhance our relevance on a bigger stage addressing a much bigger segment of the population with a bigger 'megaphone.'"-Paul Flowerman, President, PL Thomas & Co., Inc.
"The realm of antioxidants will continue to thrive, both through research (epidemiological, animal and human clinical trials) and the launch of new antioxidants into the market. Because antioxidants are so universal and relevant to human health and well-being, we do not see any slowdown of this market.
"In addition, more than ever, accountability will increase as more product manufacturers/ marketers require that their raw material suppliers are GMP-certified. Cyvex received its GMP certification in the summer of 2007. Those suppliers that do not have GMPs will likely lose a lot of momentum in the marketplace, so 2008 may see a shakeout."-Gilbert Gluck, CEO and President, Cyvex Nutrition, Inc.
"Orafti, recognized as a world leader in prebiotic ingredients, is ensuring the future of its business and its clients' interests with significant capital investments worldwide. Like any agricultural product, the chicory root from which we derive our prebiotic fibers is subject to seasonal variations in crop yields. With demand for inulin and oligofructose growing rapidly around the globe, Orafti now has a second large-scale production facility in Chile to provide our customers the confidence of crops produced in opposite hemispheres for increased production and year-round harvests and a guaranteed continuity of product supply and quality."-Joseph O' Neill, Executive Vice President of Sales & Marketing, Beneo-Orafti, North America
"After a robust 2006, 2007 is improving after quiet summer. Looking forward, I'm encouraged by the further expansion of nutraceuticals into food and beverages, as well as the continued growth of the professional channel. The professional channel provides education and appropriate application, while the food and beverage channel offers great mass market exposure and consumer access to ingredients and new product opportunities."-Dan Murray, Vice President, Business Development, Xsto Solutions
"The economy has created a challenging environment for the nutraceuticals industry, as well as many other industries. That said, there are still categories of growth, namely specialty supplements that have contributed to the health of the nutraceuticals industry as a whole. While the industry trend is headed toward 'organic' supplements, there are still quality standards that need to be observed, including proper testing for microbials as well as conscious concern about low lead levels. California manufacturers are more conscious of this than other states due to Proposition 65 enforcement."-Dr. Michael Yatcilla, Vice President of Research & Development, Natrol
"Time will undoubtedly demonstrate 2007 as a watershed year for the dietary supplement industry with the long-anticipated release of GMP rules. 2007 has also been a year of scrutiny on Chinese manufacturing with numerous well-publicized product recalls. We welcome the significant increase in FTC sanctions against unsubstantiated product claims and the development of new test methods and product standards, all of which will help our industry rebuild public trust. Our company is meeting the challenges of quality and safety through our vendor qualification program and by manufacturing products to the highest standards in our new facility, Ningbo Green-Health Pharmaceutical Co., Ltd., a highly-respected certified manufacturer, particularly of bilberry extracts and chondroitin."-Bob King, President & CEO, A.M. Todd Botanical Therapeutics
"In the aftermath of the recent ingredient scandals involving sub-standard suppliers, activists, members of Congress and the FDA are demanding action to prevent poor quality ingredients from reaching the consumer. This presents an opportunity for a branded, trusted and quality ingredient supplier like Lipid Nutrition. The quality of ingredients and peace of mind knowing your supplier stands behind you should outweigh a perception of saving costs. That latter scenario can lead to a very short-term gain."-Bob Rasmus, Sales Director in North America, Lipid Nutrition
"If you are looking for insights into functional food, healthy food, and developing products that appeal to the entire family, it may be time to be speaking with the U.S. Hispanic population. From the results of the 2007 HealthFocus International study into the "Health and Wellness Attitudes and Behaviors of Hispanic Shoppers in the U.S.," Hispanics are much more food involved, and more in touch with the emotional and physical impact of food and its relationship to health and family.
"Further, Hispanic shoppers show significantly higher interest in functional foods, digestive health and food safety and purity.
"The U.S. Hispanic population represents fertile emotional grounds, with less need to convince targets of the nutritional and functional benefits of healthy foods."-Steven Walton, General Manager, HealthFocus International
"2007 certainly has been a year which has continued to follow the changes occurring throughout the nutritional industry-for both manufacturers and marketers. There has been a continuing trend of consolidations and significant forward movement toward improving overall product quality (i.e. through the new FDA GMPs), and this we applaud. But this is still an interesting industry that is full of marketing-some of whose accuracy and work is outstandingly good (credible) and some that still use deliberately misleading statements or simply fake or poor science. Currently, we are now being challenged about using raw materials made in China. Raw material quality and accurate testing will certainly need to be expanded and improved upon. It is our challenge to continue to look forward for solutions to these and other problems. We at Best Formulations are pleased to contribute by now offering the most absorbable CoQ10 soft gel (Q-Best) product and also finally a realistic vegetarian soft gel. It's a great time to be in this industry; it's about wellness and it's still growing."-Robin Koon, Senior Vice President, Best Formulations
"The market continues to see steady growth. Consumers are taking a proactive approach to healthier lifestyles with a sustained awareness shift from disease treatment to wellness management. Areas of concern are whether the downturn in the economy will have an impact on discretionary income normally spent on supplements or higher priced functional foods. As key ingredient feedstocks and energy costs continue to rise, the costs of foods and vitamins will continue to increase. This may ultimately force consumers to choose to address only specific key personal health conditions and slow our growth rates. Clinical evidence and dedication to quality will help consumers make and trust their choices which will continue to benefit our company."-Mike DeGennaro, Global Head of Human Nutrition, Lonza Inc.
"With cGMPs finalized for dietary supplements, the burden of ensuring ingredient quality now falls to the manufacturers of finished products; raw material suppliers are largely exempt from these requirements. Ingredient suppliers, like EMD, that voluntarily demonstrate and ensure the quality of their products are fulfilling a critical need for their clients, not simply 'adding value.' Larger manufacturers, who must comply with cGMPs sooner, have been quick to appreciate this. It may be a harbinger of the end of our industry's love affair with the cheapest possible ingredients. The extra dollars per kilo for high quality ingredients should be money well spent."-Jeremy Appleton, ND, EMD Chemicals Inc.
"As a 3rd party contract analytical and research laboratory, 2007 has had many pleasant surprises for us at Alkemists Pharmaceuticals, the most obvious being the publication of the GMPs. Our goal is to have products enter the marketplace ensured of their safety and secondarily ensured of their efficacy.
"For the coming year, we are confident that we will see a shift in the consciousness of both the consumer and the manufacturer. The consumer will begin to experience trust and the manufacturer will see better returns on their investment in the quality of their products."-Dr. Sidney Sudberg, Lab Director, Alkemists Pharmaceuticals
"Frutarom is a raw ingredients manufacturer with a 'Passion for Taste and Health,' and we see an increasing demand for real health benefits in beverages and foods, not just marketing claims.
"Manufacturers want to clean up the nutrition labels of their best selling products (lower calories, healthier fats and carbs), but keep the taste consumers love. We also partner with them to respond to major health trends such as obesity and diabetes by re-designing popular foods specifically targeted toward these consumers.
"In the field of dietary supplements, Frutarom develops bioactive, clinically proven ingredients to address fast-growing segments such as mood balancing, cognitive function, and bone and bladder health."-William Ludlum, President, Frutarom, & Michael Faber, Business Manager Health & Cosmetics Ingredients, Frutarom
"The more things change Taking the time to review some previous responses to this same inquiry, I find that the same status remains quo. We still need to figure out ways to incorporate and use science effectively, and we still continue to generate misguided initiatives from individual companies and even our STILL fractionated trade associations. We are all still awaiting the arrival of FDA to the party since we cannot effectively self-regulate and overall we are still missing the boat regarding possible positive efforts we could achieve if we set aside egos (both personal and corporate), worked with the people out there who aren't in this game for profit and make this a visionary industry rather than a near-parasitic one. On the other hand, as always, business remains good, so why rock the boat."-Jim Lassiter, Principal, The Lassiter Group
"Golden Hope Bioganic now belongs to the biggest palm plantation group in the world, Synergy Drive. The former owner, Golden Hope Group has officially joined with the other two major diversified plantation groups, Sime DaDarby and Guthrie Corporation, to form Synergy Drive. With more than 160 years of experience in plantations, Golden Hope Bioganic has the most integrated operations of tocotrienols vitamin E production.
"Tocotrienol has always been under the shadow of tocopherol vitamin E even though recent research has shown that this group is far more superior than tocopherol. The research on this 'new generation potent antioxidant' suggests that tocotrienols could also be highly beneficial in the treatment and prevention of cardiovascular conditions, cancer, neuronal conditions, premature aging and skin-related diseases.
"We are using a special patented process licensed by the Malaysian Palm Oil Board (MPOB) to produce superior purity tocotrienol and we believe that future use in the functional food area will spur the growth of tocotrienol usage. It is expected that with the pending GRAS approval and more well-controlled clinical trials, the image of tocotrienols could be improved.
"At Golden Hope, we ensure that the chain of quality activities-from growing the fruit, to the extraction and concentration of tocotrienol-is fully traceable. Our products are Kosher and Halal certified, and with the recent plant upgrading we are definitely the most competitive producer for palm tocotrienols in the market."-Zalina Hamid, Manager-Sales, Golden Hope Bioganic Sdn. Bhd.
"These days, everyone is talking about product safety. How do we ensure in a global economy that consumers have access to safe products? Our new dietary supplement GMPs go a long way toward helping ensure that supplements are safe. As an industry, we share the same goals with our government: to ensure our consumers are protected. So obviously we're in favor of systems that protect consumers. But we want to be careful that we're not creating legislation that could create bottlenecks for imports or added costs that would negatively affect the consumers that the legislators are trying to protect."-Marjorie Fine, Chairperson, Board of Directors, Council for Responsible Nutrition (CRN) and Executive Vice President & General Counsel, Shaklee Corporation
"2008 will be the year that sustainability becomes an imperative for organizations. Simply making a natural or organic product will no longer be enough for most consumers. Companies must look at all processes and policies to identify areas that need attention, such as energy usage/recapture, supply chain waste, pollution prevention, resource recovery, and design for environment. It will also no longer be appropriate to compensate for a company's lack of sustainability by purchasing renewable energy. This is not enough for most consumers, as truly sustainable companies must manage their inputs as well as their outputs. They must embrace sustainability and corporate social responsibility as a commitment that permeates all aspects of the business, and step away from the 'green buffet.' It can be expensive on the cost end, but the effects are usually negated by gains on the market side-competitive advantage, differentiation, addressing an expanding target market, premium pricing, etc."-Darrin Duber-Smith, President, Green Marketing
"Tumultuous is probably the best adjective to describe the past 12 months in the nutraceuticals industry. From the perspective of a consultant working with clients across different segments of the business, the resounding message is one of concern, although tinged with hope. With Chinese supply issues and the whole quality of our raw materials once again called into question, a lukewarm GMP regulation years past its due date and the lack of innovation all at the forefront, the industry seems to be in a state of flux as we move into a new year. The question remains, will this be a turning point that leads us to a brave new world or more of the same?
"There are bright spots-the GMPs and the industry's attempt at self-regulation at least pay lip service to counter the 'unregulated' media cry, while in terms of markets, the ongoing progression of omega 3 products into more mainstream acceptance is encouraging. Likewise, the organic category and probiotics continue to show strong potential. It remains to be seen whether the positives can continue to outweigh the negatives as we move into 2008."-Ellen Schutt, President, Schutt Solutions
"The pace of serious self-regulation, a core initiative essential to the healthy growth and forward movement of our industry, finally began to pick up in 2007. Industry groups like the Council for Responsible Nutrition and the Natural Products Association, in conjunction with new GMPs and efforts of industry leaders, are ramping up a watchdog effort that will reinforce the credibility of the natural products industry, and level the playing field for manufacturers and marketers within it.
"Over the next 12 months, enforcement, alongside cooperation and compliance from all sectors, will allow us to continue maximizing the incredible health-promoting developments and accomplishments that natural product providers have worked so hard to deliver over the years-especially during the last five years-while hopefully dispelling the oftentimes misinformed notion that this is an unregulated industry."-Gary Bushkin, PhD, Founder, Nutraceutical Services
"The nutraceuticals industry is a dynamic industry providing opportunity to those who strive for excellence in raw materials and finished products. Improve USA, Inc. has become one of the leaders in the aloe raw materials segment by consistently striving to bring the highest quality to the manufacturer of products for the consumer. Of the hot topics consumers are concerned with, immunity and nutritional supplements are at the top of the list. A new study by Dr. Sridevi Devaraj, UC Davis Medical Center, Sacramento, CA, shows the enhanced benefits of consuming vitamins and minerals with aloe over water. In fact, the study showed that consuming daily supplements with aloe increased the bioavailability by almost 300% for vitamin C and was successful in delivering oral vitamin B12 to blood system. The most effective aloe in these tests was the inner fillet or what the industry refers to as gel.
"Enhanced immunity is a concern of nearly everyone. The very large complex carbohydrates or polysaccharides in aloe have been found to modulate the body's immune system to a healthy level. There are studies showing the large polysaccharide (average MW 1M Dalton) activate the macrophage which directs the activity of the immune system. Improve USA produces a product, DaltonMax, which is the dehydrated inner fillet of the aloe leaf ground into a powder. DaltonMax contains all the natural components of the aloe plant and retains all the high molecular weight polysaccharides. The future is bright for companies dedicated to providing safe and high quality raw materials to the industry."-Bill Pine, VP Sales & Marketing, Improve
"In light of the current media storm surrounding various product safety recalls, it is more important than ever for suppliers to be conscientious about the quality and safety of their ingredients. With the establishment of this year's cGMPs, the dietary supplement industry as a whole has been given the chance to prove itself to be the upstanding entity that we all know it is. In the coming year, suppliers should lead this charge by taking the self-regulatory steps that will ensure their ingredients meet the FDA's standards."-Paul Faganel, President, Embria Health Sciences
"The need for education in our industry has never been greater given current events affecting the economy, global trade, regulatory affairs, and perhaps most important, safety and quality. Cognis' heritage of founding companies has always been based on education, and as we look to the future, we are at an important crossroads with the worlds of functional foods and dietary supplements converging. Credible science must dictate what products ultimately reach the consumer. We must invest in clinical studies to support products, so we have the scientific basis to educate our customers as to what claims they can make. Taste will always be critical to consumers. That's why as a global supplier, Cognis continues to find new ways for our customers to formulate nutritional ingredients into their products without altering the sensory characteristics of the food or beverage. Cognis and WILD, a leading flavor and systems supplier to the food industry, understand the challenges and have partnered together to offer health enhancing ingredients that meet consumers' high standards for quality and taste." - Dave Eckert, Vice President, Cognis Nutrition & Health
"As baby boomers begin to approach their golden years, there is a heightened awareness in health maintenance and quality of life. This is driving the growth within the nutraceutical markets, with increasingly more ingredient introductions that can be used in dietary supplements, functional foods and beverages. These ingredients often enable the manufacturer to add structure function claims, which broadens the appeal of their products to aging consumers.
"Vision loss is one of the primary concerns for these consumers. Age-related macular degeneration is the cause of vision loss in more than 25 million people worldwide. Zeaxanthin, a natural carotenoid pigment, has been shown to promote ocular health, and recent data suggest zeaxanthin may be the most powerful antioxidant found in the eye. As consumer awareness grows, the industry will have to respond with innovative ingredients such as zeaxanthin to address their needs."- Carol Locey, Product Management Director for Colors and Zeaxanthin, Kalsec
"I think 2008 will be a year of opportunities and challenges. The opportunities will arise through greater recognition of the value of dietary supplements in warding off some of the debilitating diseases affecting our aging population. The challenges will arise from some potential problems in the supply chain, as well as the prosecution of unsavory businesspeople who elect to use the dietary supplement industry in the short-term pursuit of illegal profits.
"Consumer perceptions of 'China Inc.' are going to cause some concerns for the industry. One thing I am going to focus on with several colleagues is to make certain the primary producers of raw material components as well as the government of China-federal and provincial-understand the requirements of responsible industry under the new GMPs.
"I predict that pricing increases from some suppliers will also present some challenges for the supplement industry, given the inevitable need to re-price commodity items to reflect higher costs of raw material components and energy utilized to produce finished goods, not to mention the continued erosion of the value of the U.S. dollar.
"I believe that the FDA and in particular CFSAN will form a viable partnership to police the industry more effectively. The targets of this scrutiny will be those who seek to profit by placing unlabeled drug payload into dietary supplements.
"Finally, I believe that with robust enforcement of the new GMPs by FDA we will begin to see the fruits of the collective labor of responsible industry that for the past decade has been seeking full implementation of DSHEA. This is essential in restoring consumer confidence in the viability of the products that a majority of people utilize daily.
"I believe the dietary supplement industry will experience a 7% increase in revenues for 2008 given pricing pressures, higher demand and consumer awareness and acceptance of well-engineered dietary supplements. Growth will also begin to accelerate in Europe and Asia."-Mark LeDoux, Chairman & CEO, Natural Alternatives International, Inc.
"Every client we have worldwide is telling us that the studies we have been conducting on their behalf as independent third parties have translated to increased sales and media attention. Some companies have reported remarkable increases following publication of our results in top ranked peer review journals. This is exactly what we predicted would happen as the industry matures and realizes the benefits of scientific substantiation of their products, not just relying on borrowed science or unsubstantiated marketing claims. Our staff growth, the range of technical services and the use of novel and innovative methods for determining efficacy and safety will continue to help those companies committed to science in 2008."-Alex Schauss, PhD, FACN, President & CEO, AIBMR Life Sciences, Inc.
"Over the past year, there has been a major shift from foods being enriched with ALA (flax) to foods being fortified with EPA/DHA from fish oil. Companies are beginning to see the differences between ALA, EPA and DHA and the health benefits they provide. A major factor is that ALA must be converted to EPA and DHA in order to be absorbed by the body and the conversation rate is very low (approximately 0.3%). Increasing media focus on omega 3 is contributing to consumers becoming aware that fish oil is the most efficacious source of omega 3 EPA/DHA. This shift in consumer awareness has resulted in phenomenal growth for Ocean Nutrition Canada and the omega 3 EPA/DHA category."-Lori Selig, Marketing Communications Manager, Ocean Nutrition Canada
"We participate in a growing global nutrition business that knows few borders in providing novel nutrition solutions. Today's consumers are focusing on preventative healthcare and looking to proactively maintain their health through a nutritious diet. Yet, given the breadth of the global ingredients market and better-for-you product offerings, consumers do not always have the resources or time to make the best diet choices. GTC Nutrition has long been committed to improving quality of life for all consumers-and this commitment spans well beyond providing natural, sustainable ingredient solutions. We assist our partners by providing scientific, technical and marketing expertise to help them differentiate their product offerings. This coupled with our consumer education program ultimately empowers health-conscious consumers to make more informed food, beverage and supplement choices."-Patrick Smith, President, GTC Nutrition
"I believe that 2008 will be a pivotal year in the evolution of the natural products industry. Many important issues are coming to the forefront, including GMP regulations, intellectual property (IP) protection, and the quality crisis with foods and raw materials coming out of China. These issues will begin to separate the legitimate companies from the profiteers. I also think the rapid growth in the cosmeceutical and functional food and beverage categories will usher in a new wave of industry expansion and opportunity."-Jeff Hilton, President and Co-Founder, Integrated Marketing Group
"The herb market will steadily increase as a legitimate and highly valued aspect of personal healthcare. The issue of fair trade will increasingly garner attention. Herbal categories for inflammation, heart troubles, weight loss and diabetes will grow steadily. The sheer number of people turning to herbs will push the category very far. At the same time, this will increase demand for better manufacturing guidelines, for accurate labeling, and for higher levels of safety.
"New and sophisticated product development will remain more than ever a key way to gain a significant share of the pie. We're hoping the category evolves into a more mature state with more science-based products to support claims. In light of these facts, it makes sense to make R&D, QC (quality control) and fair trade priorities."-Antoine Dauby, Marketing Manager, Naturex
"BI experienced tremendous growth in 2007, particularly in our botanicals business. Our east coast facility, which offers custom blending and other value-added manufacturing services, saw a marked increase in market share in the nutraceutical, food and beverage industries. Additionally, we opened a 75,000 square foot manufacturing facility in Suzhou, China, which provides us with additional manufacturing capacity, as well as a full-service quality assurance lab to ensure all extracts and ingredients from the region are free of contaminants prior to being shipped to the U.S. Quality control continues to be a huge challenge for the industry, and our proprietary steam sterilization process, Protexx HP, offers manufacturers the most safe and natural sterilization method for both organic and non-organic raw materials."-George Pontiakos, President & CEO, BI Nutraceuticals
"In the past year, CRN has begun and will continue to question why we keep trying to fit the round peg of nutrition and wellness research into the square hole of the drug-like, treatment-based randomized controlled trial, also known as the RCT. That's not to say that RCTs are never appropriate for supplements, but other forms of research can be equally rigorous and every bit as valid for answers to the question of how to keep people healthy. The dietary supplement industry should continue promoting the appropriate research methods, tools and approaches for studying prevention and wellness."-Steve Mister, President & CEO, Council for Responsible Nutrition (CRN)
Quality was another popular word threaded through many of this year's comments. Some executives believe quality will be THE differentiator when it comes to consumer purchase in the future. But buyers must continue to beware-not all "quality" products will be created equal.
On the bright side, a healthy consumer market may be just what the doctor ordered. It seems a more open-minded public continues to demand supplement and functional food products they can add to their personal healthcare regimens, and doctors and nurses seem eager to join the "prevention" crusade. Is mainstream medicine finally on our side?
2007 will be remembered as a year of significant change for supplements and food, but only time will tell if those events helped push these industries in the direction of true progress.
"Two things stand out for me as we enter the 4th quarter of 2007. The landscape for food and nutraceutical safety will be radically re-shaped over the next few years. The changes in the supply chain will impact all of us in the industry in some way. As usual where there is disruptive change, some entrepreneurs will have benefit from the opportunities and create new businesses, while for others the increased cost and complexity of global sourcing will present huge challenges.
"The impact of our business activities on the communities in which we operate will be scrutinized much more closely. Social responsibility will be the norm and not a 'nice to have' requirement. Every company will need to demonstrate what it is doing to mitigate the impact on our environment and consumers (as well as employees) will require action as part of the contract when they buy a product or service. This implies that the bar for differentiating a product or a company through the social or environmental impact is being raised. Going green will become essential for long-term corporate viability."-Steve Allen, VP New Ventures, Nestl
"A new lexicon is quickly entering our thinking and our business. Globalization now means country of origin labeling (COOL), import delays, worried consumers, exploding bubble bath, Congressional action and new motivation to 'know thy supplier.'
"In this new global market, the U.S. dollar, once a financial benchmark and gold standard, is weakening at an alarming pace, thus disrupting financial and economic modeling essential to trading of finished goods and commodities between the U.S., Europe and Asia.
"Certification, authenticity, fair trading and verification are only a few of the new buzzwords, but many lack substance and credibility. Will these critical concepts end up as marketing exercises? Let's hope not.
"China is today's piata, but look to them to answer the bell. They remain the powerhouse player in the global nutrient and natural products marketplace. We should see China's struggle to improve as a mirror image of our own challenges.
"And, as always, there is an X-factor. Could it be the specter of colony collapse disorder (CCD)-a mass disappearance of honeybees that leaves most of our key herbal products and organic foods and vegetables unpollinated and barren? This may be our wake-up call to urge the world to recognize the importance of sustainable practices and a bedrock reason to protect the environment that feeds us all.
"On the bright side, we can all celebrate Nutraceuticals World's 10th Anniversary next year. Drinks are on the house."-Loren Israelsen, Executive Director, United Natural Products Alliance (UNPA)
"I am sure food safety will be echoed by many as a critical issue this year, but I actually think that the dietary supplement and functional food industries are better off than many other industries, including the non-functional food industry. This industry has been battling the incorrect perception that it is unregulated for many years, and as a result there have been many efforts to raise quality and invest in science. I am fortunate in that I work in the long-chain omega 3 space where these efforts have been paramount for many years, but even in other areas of the industry there has been significant scrutiny over dietary ingredient sources. The new GMPs, while not prescriptive about how to prevent these issues, at least will get companies to scrutinize their suppliers more closely and that is really the answer. In nearly every case of FDA or USDA enforcement on tainted foods or supplements, the problem goes back to the beginning of the supply chain.
"I believe this is because everybody, starting with the retailers and working back through the value chain, wants to cut costs. So there will be a greater burden on any company that puts pricing pressure on their suppliers to demonstrate that the products they sell are safe. I also believe that another positive consequence of this will be greater differentiation on the retail shelf. If companies want to grow their profits, they can cut costs, raise prices or increase the number of units they sell. Product differentiation touches on the latter two points. Some companies will be willing to pay higher prices for ingredients they can trust, and will make up for it with a higher priced consumer product that is positioned far differently from its competitors."-Adam Ismail, Executive Director, Global Organization for EPA and DHA Omega 3's (GOED)
"Any discussion about the dietary supplement industry must acknowledge that it is in a state of flux, driven by increasing recognition of the impact that implementation of cGMPs will have. With regard to botanicals, standards continue to be set such as AHPA's Good Agricultural and Collections Practices (GACP) that will have long-term impact on the raw material supply chain and product quality. Also, AHPA continues to take steps to make available simple tools for the detection of adulteration in some common products such as Hoodia gordonii powder and bilberry extract."-Steven Dentali, PhD, VP Scientific & Technical Affairs, American Herbal Products Association (AHPA)
"As we reflect back on the past year and we look forward to the future, I believe it is important to realize that the emerging health and wellness trend of the 1980s and 1990s is now a core component of mainstream society. Heart disease, obesity, diabetes and other diet-related diseases are still growing as the first baby boomers begin to collect their first social security checks. The difference today is that our industry is now giving consumers more options and the educational material to provide them better choices. It has become an issue of personal responsibility rather than an issue of limited choices.
"Looking toward the future, I believe personal responsibility is going to be a major trend. I believe that more consumers are taking personal responsibility for their health and wellness. I also believe that these are the same consumers who are concerned about our environment and the sustainability of our natural resources.
"I predict a merging of personal and social responsibility. Health and wellness solution providers will also need to be on the cutting edge as it relates to sustainability. In the future, it will not be good enough to just make a 'better for you' offering. The solution will need to be essential to the body and the environment. It will relate to the packaging of the product, where it is made, how the products were processed and how manufacturers leave a proper green footprint.
"The core health and wellness consumer is taking responsibility for their health today. In order to truly connect with them in the future, manufactures need to understand and deliver solutions beyond just health and wellness."-Paul Paslaski, Market Development Director, Cargill Health & Nutrition
"Quality continues to be at center stage for the nutraceuticals industry in 2007, and this will likely be the case in 2008 as well. After many years in preparation, FDA finally published guidelines for GMPs for dietary supplements, and the requirements will begin to effect next year.
"2007 will also be remembered as the year of several new, highly publicized, food safety issues that raised national attention to quality control standards especially in relation to imported products. As the industry matures, focus on quality is at least equally important as focus on innovation. This represents a major opportunity for those that embrace it."-Paul Altaffer, Product & Business Development, RFI Ingredients
"The changes in EU health claim regulations for all food and supplement products came into force in 2007. It is, of course, too early to see any effect, but the general opinion in the industry so far seems to be that the more stringent regulation and the two-year transition period are both going to stifle innovation. A case in point is Article 18, which states that claims can only be submitted once the positive list of accepted claims (Article 13) has been drawn up at the beginning of 2010. As it stands, this means that any claim supported by new scientific research cannot be used before then, and the industry will have to wait two years before getting a return on innovation. On the upside, an accepted proprietary claim, based on a placebo-controlled human clinical trial, can then be used in all 27 EU member states in the future. We already see a strong increase in requests to perform such studies."-Dr. Joerg Gruenwald, President, analyze & realize ag
"I think the industry is poised for gains if manufacturers are ready to accept the constraints of new dietary supplement GMPs and control their claims without sufficient proof of efficacy and safety in the dose prescribed. After all, we don't want consumers looking at all these products wondering why anyone dies or gets disease."-Fergus Clydesdale, PhD, Distinguished Professor & Head of the Department of Food Science, University of Massachusetts, Amherst
"Newly formed Nutri+Food Business Consultants (NFBC), widely recognized contributors to various health and wellness market segments, sees a continuation in trends that emerged during 2007. Driven by consumer desire for efficacious, natural, good tasting products delivering health benefits, the dramatic proliferation of consumer products formulated with omega 3's and 'superfruit' beverages will continue. The financial state of the health and wellness industry is marked by high valuations and dramatic growth of merger and acquisition activity. This is bound to continue. Finally, as major consumer packaged goods companies have reduced their research staffs, we have seen increasing interest in 'inno-mediaries,' external sources of technical or market information supporting the movement to 'Open Innovation.' NFBC offers custom TechQuest services to meet this increasing demand."-Alex Merolli, Principal, Nutri+Food Business Consultants
"The macroeconomic climate in Japan continues to be positive, without the obvious excesses that characterized the overheated 'bubble' economy that existed in Japan in 1990. The primary demographic driving force has been the rapid aging of a population that is now actually in decline. The ever-increasing costs of healthcare guarantee a future market opportunity for less expensive functional foods and natural health products to help maintain health. Consumer expectations regarding the safety and efficacy of such products remain high in Japan, a clear challenge for quality-oriented, science-based food and beverage product and ingredient companies."-Ron Bailey, President, California Functional Foods
"In our sphere, product quality, the biggest news of the year (if not the decade or century) was the enactment of the dietary supplement GMPs. This profoundly changes the way everyone does business. Regardless of whether you have one or three years to comply, the time to plan is now. For some, bringing all or part of the quality testing function in-house will make perfect sense. For others, establishing a system for outside testing is in order. In either case, this takes resources and time.
"One important but overlooked GMP provision is that the client is responsible for the work of its outside analytical lab. No longer can anyone believe they are 'covered' because they used an outside lab and have a certificate of analysis (CofA) in the file; if the analysis is no good the client is at risk. Careful due diligence is now required. Price and turn-around time, while important, are not the only factors to consider. A CofA is merely a piece of paper; what is behind that piece of paper is what counts."-Robert Green, President, Integrated Biomolecule
"This past June marked an important event for the dietary supplement industry-FDA's issuance of a final rule regarding current good manufacturing practices (cGMP) for dietary supplements. The final rule establishes minimum cGMPs necessary for activities related to manufacturing, packaging, labeling or holding dietary supplements to ensure the quality of the product and to promote and protect public health. The law went into effect on August 24, 2007, and the compliance dates are phased in-depending upon the number of employees the business employs-at one, two and three-year increments from the June 25th final rule publication date.
"In the food realm, consumer confidence was shaken earlier this year by the events involving melamine contamination of pet food and the use of lead paint on many consumer products. Consequently, I feel the cGMP final ruling is a timely requirement of the dietary supplement industry, representing an opportunity for it to learn from the mistakes of others. It's easy to lose the trust of the public and hard work to earn it back."-Richard Barndt PhD, Director, Product Assurance & Regulatory Affairs, National Starch Food Innovation
"'The Phenol Phlood' captures my impressions of what's new on the exhibit floor at food and supplement conferences-an ever-expanding offering of foods with a phenol content, and hence antioxidant activity, and hence presumed health benefits. These phenolic compound sources-example: all the 'superfruits'-are rushing to fill the gap left by the disappointing results from large clinical trials with the old-school antioxidants: vitamin C, vitamin E, selenium, beta-carotene. Given the competition, those that can buttress their health statements with evidence from human studies are more likely to succeed."-David Mark, PhD, Founder, dmark consulting LLC
"Herbal products continue to be the greatest frontier for new discoveries in health applications, bioactive compounds like resveratrol, and innovative processing technology. Indigenous ethnobotanical traditions in places like Asia are an infinite source of new knowledge for the developed world to improve people's health and quality of life. The challenges we face are how to more quickly tap into these knowledge resources without compromising health and sustainability. Climate change, decreasing land and water resources will be the imperative for how to better grow and process botanical and food crops using the most renewable energy and conservationist methods available."-Brien Quirk, Director of R&D, Draco Natural Products
"The functional food and beverage segment continues to grow, with mega-brands like Coke, Pepsi and Kellogg's continuing to introduce new products. Health-conscious consumers are demanding that foods and beverages do more than just 'taste good.' Foods that can also address their health concerns including cardiovascular disease, diabetes, weight management and pain management have widespread appeal. Consumers have also become more information savvy and look for legitimate products that work. InterHealth's products target those conditions and are backed by scientific and clinical research consumers demand."-Paul Dijkstra, CEO, InterHealth Nutraceuticals, Inc.
"Ten years after the first big functional food launches in the west-of cholesterol-lowering and probiotic products-it's finally become clear that the future of functional foods lies in dairy and juice products, far more than any other category. Digestive health will become the single-biggest health benefit area in the U.S., as it already is in Europe and Japan. All other benefit areas will be niche, some bigger, some smaller. Some, such as heart health and cholesterol-lowering, will be very crowded with lots of products marketing health benefits that are natural and intrinsic to the products and able to charge less than those based on added heart healthy ingredients. Smart companies have already learned to focus on low volume, high value areas-more people will have to learn to do that since the market for health is fragmenting into many, many niches, each with their own drivers and characteristics."-Julian Mellentin, Editor & Director, New Nutrition Business, Centre for Food & Health Studies
"The newly established GMPs were a prominent issue for the nutraceutical industry this year, and they will continue to be so in the upcoming year as companies prepare for the transition. These new regulations require more from manufacturers, as well as increase the accountability of the raw materials suppliers that deliver ingredients to them. Manufacturers working to meet the new standards can make this task just a little easier by looking to suppliers who already have thorough quality controls in place. This is because a company who has implemented relevant testing and controls has already demonstrated an internal commitment to the quality of their products.
"Triarco, for instance, was one of the first companies to make TLC identity testing, along with a certified voucher system, part of routine quality control. Triarco scientists took it a step further when they created Fingerprint Herbal Extracts, by confirming marker compounds and desirable bioactives with HPLC. The HPLC test also helps to safeguard against the economic adulterants, which can cause havoc further along in the formulation and production process.
"Bottom line: a good supplier is a responsible partner that can help navigate new regulations and make a manufacture's job run a little more smoothly, and a supplier is in a better position to do so when they have already established their commitment to the integrity of their ingredients."-Rodger Rohde, President, Triarco Industries, Inc.
"Extensive food recalls shook consumer, supplier and manufacturer confidence, and turned attention to the FDA for new safety regulations. As a first step, the FDA revised current GMPs and initiated the Adverse Event Reporting (AER) bill. This is the beginning of an increasingly regulated industry for functional foods and supplements. At Gourmetceuticals, we believe all ingredients should be manufactured through cGMPs and be scientifically validated through human clinical trials. This is our commitment to partners and consumers, and we expect to see more companies move in this direction with functional foods in 2008 and beyond."-Garrett Lindemann, PhD, CEO/CSO, Gourmetceuticals
"Safety, quality and innovation are crucial to the success of the nutrition industry today. With increased consumer concern for product safety and continued negative media on vitamins and supplements, adherence to the quality standards and practices of GMP, HACCP, USP and ISO are ever critical. DSM's own quality standards meet and often exceed the regulatory requirements in the markets it serves worldwide. In addition, consumers today have broader access to information than ever before and expect their individual health needs to be supported by greater choice via expanded channels. DSM continues to utilize extensive resources in market research, science, regulatory and technology to keep our customers ahead of the curve as we develop solutions to meet the health needs and desires of today's consumers."-Lynda Doyle, Director, New Business Development, DSM Nutritional Products, Inc.
"Recent events have made consumers suddenly aware that their food chain may not be as safe as they had once believed. This awareness will grow over the next few years as more contaminated food products are exposed.
"This will drive the organic movement into the mainstream as the safest and most reliable food chain. With this growth will come tremendous strain on organic certifiers, growers and processors to maintain the standards that have made 'certified organic' a trusted household name.
"Long-established ingredient suppliers with their own organic farms and organic processing, like Synergy Production Laboratories, are well-positioned to take the lead in providing a dependable supply of organic raw materials."-Steven Lattey, Director of Raw Materials Sales and Business Development, Synergy Production Laboratories
"Expect growth in prebiotics and 'functional probiotics.' Functional categories of probiotics include osteoporosis, immune health, women's health, oral health and weight loss. But given the expense of probiotics and others such as functional lipids, expect closer scrutiny over quality standards in these categories.
"'Exotics' remain a source of future innovation. One might expect to see more product claims around ORAC as it relates to these exotic fruits and vegetables.
"The 'Beauty from Within' trend will continue to grow as antioxidants and anti-inflammatories are scientifically demonstrated to have a benefit on skin. Watch green coffee berry and kiwifruit seed extract as emerging ingredients."-Grant Washington-Smith, Managing Partner, CANZUS Partners International, A Business Development & Brand Management Consultancy
"As we conclude a successful year and the use of our recently expanded and updated facilities, All American Pharmaceutical looks forward to 2008 and the opportunity to grow Kre-Alkalyn, the world's only stable creatine, and Kre-Celazine, our innovative joint health product. We're also looking forward to introducing additional patented products and processes in the coming year. As the industry continues to improve with new cGMP standards, and with consumers becoming increasingly educated about valid brands and ingredients, All American and its partners will continue to both implement and communicate progressive practices to ensure safe, consumer-friendly products. We welcome the new year with anticipated sales growth and the ability to take part in an ever-improving industry that aims to improve human health and well-being."-Joe Archer, Vice President, Sales & Marketing, All American Pharmaceutical
"2007 has been a 'break out' year for the mainstreaming of the 'Health and Wellness' paradigm that has long been the mantra for a big part of the dietary supplement industry. Leading brands of cultured dairy products, fruit juices and other beverages, chocolates, and breakfast cereals are all increasingly having their nutrition mission complemented with the addition of appropriate ingredients from our industry. Hain's echinacea foray into chicken soup several years ago was revolutionary, but perhaps premature and also not sufficiently carefully positioned. The synergistic usage of pills and capsules with fortified food, beverage, and cosmetics is an important growth area. Through improved scientific support for our nutraceuticals, as well as by addressing the distinct functional and regulatory challenges of using them in foods, we enhance our relevance on a bigger stage addressing a much bigger segment of the population with a bigger 'megaphone.'"-Paul Flowerman, President, PL Thomas & Co., Inc.
"The realm of antioxidants will continue to thrive, both through research (epidemiological, animal and human clinical trials) and the launch of new antioxidants into the market. Because antioxidants are so universal and relevant to human health and well-being, we do not see any slowdown of this market.
"In addition, more than ever, accountability will increase as more product manufacturers/ marketers require that their raw material suppliers are GMP-certified. Cyvex received its GMP certification in the summer of 2007. Those suppliers that do not have GMPs will likely lose a lot of momentum in the marketplace, so 2008 may see a shakeout."-Gilbert Gluck, CEO and President, Cyvex Nutrition, Inc.
"Orafti, recognized as a world leader in prebiotic ingredients, is ensuring the future of its business and its clients' interests with significant capital investments worldwide. Like any agricultural product, the chicory root from which we derive our prebiotic fibers is subject to seasonal variations in crop yields. With demand for inulin and oligofructose growing rapidly around the globe, Orafti now has a second large-scale production facility in Chile to provide our customers the confidence of crops produced in opposite hemispheres for increased production and year-round harvests and a guaranteed continuity of product supply and quality."-Joseph O' Neill, Executive Vice President of Sales & Marketing, Beneo-Orafti, North America
"After a robust 2006, 2007 is improving after quiet summer. Looking forward, I'm encouraged by the further expansion of nutraceuticals into food and beverages, as well as the continued growth of the professional channel. The professional channel provides education and appropriate application, while the food and beverage channel offers great mass market exposure and consumer access to ingredients and new product opportunities."-Dan Murray, Vice President, Business Development, Xsto Solutions
"The economy has created a challenging environment for the nutraceuticals industry, as well as many other industries. That said, there are still categories of growth, namely specialty supplements that have contributed to the health of the nutraceuticals industry as a whole. While the industry trend is headed toward 'organic' supplements, there are still quality standards that need to be observed, including proper testing for microbials as well as conscious concern about low lead levels. California manufacturers are more conscious of this than other states due to Proposition 65 enforcement."-Dr. Michael Yatcilla, Vice President of Research & Development, Natrol
"Time will undoubtedly demonstrate 2007 as a watershed year for the dietary supplement industry with the long-anticipated release of GMP rules. 2007 has also been a year of scrutiny on Chinese manufacturing with numerous well-publicized product recalls. We welcome the significant increase in FTC sanctions against unsubstantiated product claims and the development of new test methods and product standards, all of which will help our industry rebuild public trust. Our company is meeting the challenges of quality and safety through our vendor qualification program and by manufacturing products to the highest standards in our new facility, Ningbo Green-Health Pharmaceutical Co., Ltd., a highly-respected certified manufacturer, particularly of bilberry extracts and chondroitin."-Bob King, President & CEO, A.M. Todd Botanical Therapeutics
"In the aftermath of the recent ingredient scandals involving sub-standard suppliers, activists, members of Congress and the FDA are demanding action to prevent poor quality ingredients from reaching the consumer. This presents an opportunity for a branded, trusted and quality ingredient supplier like Lipid Nutrition. The quality of ingredients and peace of mind knowing your supplier stands behind you should outweigh a perception of saving costs. That latter scenario can lead to a very short-term gain."-Bob Rasmus, Sales Director in North America, Lipid Nutrition
"If you are looking for insights into functional food, healthy food, and developing products that appeal to the entire family, it may be time to be speaking with the U.S. Hispanic population. From the results of the 2007 HealthFocus International study into the "Health and Wellness Attitudes and Behaviors of Hispanic Shoppers in the U.S.," Hispanics are much more food involved, and more in touch with the emotional and physical impact of food and its relationship to health and family.
"Further, Hispanic shoppers show significantly higher interest in functional foods, digestive health and food safety and purity.
"The U.S. Hispanic population represents fertile emotional grounds, with less need to convince targets of the nutritional and functional benefits of healthy foods."-Steven Walton, General Manager, HealthFocus International
"2007 certainly has been a year which has continued to follow the changes occurring throughout the nutritional industry-for both manufacturers and marketers. There has been a continuing trend of consolidations and significant forward movement toward improving overall product quality (i.e. through the new FDA GMPs), and this we applaud. But this is still an interesting industry that is full of marketing-some of whose accuracy and work is outstandingly good (credible) and some that still use deliberately misleading statements or simply fake or poor science. Currently, we are now being challenged about using raw materials made in China. Raw material quality and accurate testing will certainly need to be expanded and improved upon. It is our challenge to continue to look forward for solutions to these and other problems. We at Best Formulations are pleased to contribute by now offering the most absorbable CoQ10 soft gel (Q-Best) product and also finally a realistic vegetarian soft gel. It's a great time to be in this industry; it's about wellness and it's still growing."-Robin Koon, Senior Vice President, Best Formulations
"The market continues to see steady growth. Consumers are taking a proactive approach to healthier lifestyles with a sustained awareness shift from disease treatment to wellness management. Areas of concern are whether the downturn in the economy will have an impact on discretionary income normally spent on supplements or higher priced functional foods. As key ingredient feedstocks and energy costs continue to rise, the costs of foods and vitamins will continue to increase. This may ultimately force consumers to choose to address only specific key personal health conditions and slow our growth rates. Clinical evidence and dedication to quality will help consumers make and trust their choices which will continue to benefit our company."-Mike DeGennaro, Global Head of Human Nutrition, Lonza Inc.
"With cGMPs finalized for dietary supplements, the burden of ensuring ingredient quality now falls to the manufacturers of finished products; raw material suppliers are largely exempt from these requirements. Ingredient suppliers, like EMD, that voluntarily demonstrate and ensure the quality of their products are fulfilling a critical need for their clients, not simply 'adding value.' Larger manufacturers, who must comply with cGMPs sooner, have been quick to appreciate this. It may be a harbinger of the end of our industry's love affair with the cheapest possible ingredients. The extra dollars per kilo for high quality ingredients should be money well spent."-Jeremy Appleton, ND, EMD Chemicals Inc.
"As a 3rd party contract analytical and research laboratory, 2007 has had many pleasant surprises for us at Alkemists Pharmaceuticals, the most obvious being the publication of the GMPs. Our goal is to have products enter the marketplace ensured of their safety and secondarily ensured of their efficacy.
"For the coming year, we are confident that we will see a shift in the consciousness of both the consumer and the manufacturer. The consumer will begin to experience trust and the manufacturer will see better returns on their investment in the quality of their products."-Dr. Sidney Sudberg, Lab Director, Alkemists Pharmaceuticals
"Frutarom is a raw ingredients manufacturer with a 'Passion for Taste and Health,' and we see an increasing demand for real health benefits in beverages and foods, not just marketing claims.
"Manufacturers want to clean up the nutrition labels of their best selling products (lower calories, healthier fats and carbs), but keep the taste consumers love. We also partner with them to respond to major health trends such as obesity and diabetes by re-designing popular foods specifically targeted toward these consumers.
"In the field of dietary supplements, Frutarom develops bioactive, clinically proven ingredients to address fast-growing segments such as mood balancing, cognitive function, and bone and bladder health."-William Ludlum, President, Frutarom, & Michael Faber, Business Manager Health & Cosmetics Ingredients, Frutarom
"The more things change Taking the time to review some previous responses to this same inquiry, I find that the same status remains quo. We still need to figure out ways to incorporate and use science effectively, and we still continue to generate misguided initiatives from individual companies and even our STILL fractionated trade associations. We are all still awaiting the arrival of FDA to the party since we cannot effectively self-regulate and overall we are still missing the boat regarding possible positive efforts we could achieve if we set aside egos (both personal and corporate), worked with the people out there who aren't in this game for profit and make this a visionary industry rather than a near-parasitic one. On the other hand, as always, business remains good, so why rock the boat."-Jim Lassiter, Principal, The Lassiter Group
"Golden Hope Bioganic now belongs to the biggest palm plantation group in the world, Synergy Drive. The former owner, Golden Hope Group has officially joined with the other two major diversified plantation groups, Sime DaDarby and Guthrie Corporation, to form Synergy Drive. With more than 160 years of experience in plantations, Golden Hope Bioganic has the most integrated operations of tocotrienols vitamin E production.
"Tocotrienol has always been under the shadow of tocopherol vitamin E even though recent research has shown that this group is far more superior than tocopherol. The research on this 'new generation potent antioxidant' suggests that tocotrienols could also be highly beneficial in the treatment and prevention of cardiovascular conditions, cancer, neuronal conditions, premature aging and skin-related diseases.
"We are using a special patented process licensed by the Malaysian Palm Oil Board (MPOB) to produce superior purity tocotrienol and we believe that future use in the functional food area will spur the growth of tocotrienol usage. It is expected that with the pending GRAS approval and more well-controlled clinical trials, the image of tocotrienols could be improved.
"At Golden Hope, we ensure that the chain of quality activities-from growing the fruit, to the extraction and concentration of tocotrienol-is fully traceable. Our products are Kosher and Halal certified, and with the recent plant upgrading we are definitely the most competitive producer for palm tocotrienols in the market."-Zalina Hamid, Manager-Sales, Golden Hope Bioganic Sdn. Bhd.
"These days, everyone is talking about product safety. How do we ensure in a global economy that consumers have access to safe products? Our new dietary supplement GMPs go a long way toward helping ensure that supplements are safe. As an industry, we share the same goals with our government: to ensure our consumers are protected. So obviously we're in favor of systems that protect consumers. But we want to be careful that we're not creating legislation that could create bottlenecks for imports or added costs that would negatively affect the consumers that the legislators are trying to protect."-Marjorie Fine, Chairperson, Board of Directors, Council for Responsible Nutrition (CRN) and Executive Vice President & General Counsel, Shaklee Corporation
"2008 will be the year that sustainability becomes an imperative for organizations. Simply making a natural or organic product will no longer be enough for most consumers. Companies must look at all processes and policies to identify areas that need attention, such as energy usage/recapture, supply chain waste, pollution prevention, resource recovery, and design for environment. It will also no longer be appropriate to compensate for a company's lack of sustainability by purchasing renewable energy. This is not enough for most consumers, as truly sustainable companies must manage their inputs as well as their outputs. They must embrace sustainability and corporate social responsibility as a commitment that permeates all aspects of the business, and step away from the 'green buffet.' It can be expensive on the cost end, but the effects are usually negated by gains on the market side-competitive advantage, differentiation, addressing an expanding target market, premium pricing, etc."-Darrin Duber-Smith, President, Green Marketing
"Tumultuous is probably the best adjective to describe the past 12 months in the nutraceuticals industry. From the perspective of a consultant working with clients across different segments of the business, the resounding message is one of concern, although tinged with hope. With Chinese supply issues and the whole quality of our raw materials once again called into question, a lukewarm GMP regulation years past its due date and the lack of innovation all at the forefront, the industry seems to be in a state of flux as we move into a new year. The question remains, will this be a turning point that leads us to a brave new world or more of the same?
"There are bright spots-the GMPs and the industry's attempt at self-regulation at least pay lip service to counter the 'unregulated' media cry, while in terms of markets, the ongoing progression of omega 3 products into more mainstream acceptance is encouraging. Likewise, the organic category and probiotics continue to show strong potential. It remains to be seen whether the positives can continue to outweigh the negatives as we move into 2008."-Ellen Schutt, President, Schutt Solutions
"The pace of serious self-regulation, a core initiative essential to the healthy growth and forward movement of our industry, finally began to pick up in 2007. Industry groups like the Council for Responsible Nutrition and the Natural Products Association, in conjunction with new GMPs and efforts of industry leaders, are ramping up a watchdog effort that will reinforce the credibility of the natural products industry, and level the playing field for manufacturers and marketers within it.
"Over the next 12 months, enforcement, alongside cooperation and compliance from all sectors, will allow us to continue maximizing the incredible health-promoting developments and accomplishments that natural product providers have worked so hard to deliver over the years-especially during the last five years-while hopefully dispelling the oftentimes misinformed notion that this is an unregulated industry."-Gary Bushkin, PhD, Founder, Nutraceutical Services
"The nutraceuticals industry is a dynamic industry providing opportunity to those who strive for excellence in raw materials and finished products. Improve USA, Inc. has become one of the leaders in the aloe raw materials segment by consistently striving to bring the highest quality to the manufacturer of products for the consumer. Of the hot topics consumers are concerned with, immunity and nutritional supplements are at the top of the list. A new study by Dr. Sridevi Devaraj, UC Davis Medical Center, Sacramento, CA, shows the enhanced benefits of consuming vitamins and minerals with aloe over water. In fact, the study showed that consuming daily supplements with aloe increased the bioavailability by almost 300% for vitamin C and was successful in delivering oral vitamin B12 to blood system. The most effective aloe in these tests was the inner fillet or what the industry refers to as gel.
"Enhanced immunity is a concern of nearly everyone. The very large complex carbohydrates or polysaccharides in aloe have been found to modulate the body's immune system to a healthy level. There are studies showing the large polysaccharide (average MW 1M Dalton) activate the macrophage which directs the activity of the immune system. Improve USA produces a product, DaltonMax, which is the dehydrated inner fillet of the aloe leaf ground into a powder. DaltonMax contains all the natural components of the aloe plant and retains all the high molecular weight polysaccharides. The future is bright for companies dedicated to providing safe and high quality raw materials to the industry."-Bill Pine, VP Sales & Marketing, Improve
"In light of the current media storm surrounding various product safety recalls, it is more important than ever for suppliers to be conscientious about the quality and safety of their ingredients. With the establishment of this year's cGMPs, the dietary supplement industry as a whole has been given the chance to prove itself to be the upstanding entity that we all know it is. In the coming year, suppliers should lead this charge by taking the self-regulatory steps that will ensure their ingredients meet the FDA's standards."-Paul Faganel, President, Embria Health Sciences
"The need for education in our industry has never been greater given current events affecting the economy, global trade, regulatory affairs, and perhaps most important, safety and quality. Cognis' heritage of founding companies has always been based on education, and as we look to the future, we are at an important crossroads with the worlds of functional foods and dietary supplements converging. Credible science must dictate what products ultimately reach the consumer. We must invest in clinical studies to support products, so we have the scientific basis to educate our customers as to what claims they can make. Taste will always be critical to consumers. That's why as a global supplier, Cognis continues to find new ways for our customers to formulate nutritional ingredients into their products without altering the sensory characteristics of the food or beverage. Cognis and WILD, a leading flavor and systems supplier to the food industry, understand the challenges and have partnered together to offer health enhancing ingredients that meet consumers' high standards for quality and taste." - Dave Eckert, Vice President, Cognis Nutrition & Health
"As baby boomers begin to approach their golden years, there is a heightened awareness in health maintenance and quality of life. This is driving the growth within the nutraceutical markets, with increasingly more ingredient introductions that can be used in dietary supplements, functional foods and beverages. These ingredients often enable the manufacturer to add structure function claims, which broadens the appeal of their products to aging consumers.
"Vision loss is one of the primary concerns for these consumers. Age-related macular degeneration is the cause of vision loss in more than 25 million people worldwide. Zeaxanthin, a natural carotenoid pigment, has been shown to promote ocular health, and recent data suggest zeaxanthin may be the most powerful antioxidant found in the eye. As consumer awareness grows, the industry will have to respond with innovative ingredients such as zeaxanthin to address their needs."- Carol Locey, Product Management Director for Colors and Zeaxanthin, Kalsec
"I think 2008 will be a year of opportunities and challenges. The opportunities will arise through greater recognition of the value of dietary supplements in warding off some of the debilitating diseases affecting our aging population. The challenges will arise from some potential problems in the supply chain, as well as the prosecution of unsavory businesspeople who elect to use the dietary supplement industry in the short-term pursuit of illegal profits.
"Consumer perceptions of 'China Inc.' are going to cause some concerns for the industry. One thing I am going to focus on with several colleagues is to make certain the primary producers of raw material components as well as the government of China-federal and provincial-understand the requirements of responsible industry under the new GMPs.
"I predict that pricing increases from some suppliers will also present some challenges for the supplement industry, given the inevitable need to re-price commodity items to reflect higher costs of raw material components and energy utilized to produce finished goods, not to mention the continued erosion of the value of the U.S. dollar.
"I believe that the FDA and in particular CFSAN will form a viable partnership to police the industry more effectively. The targets of this scrutiny will be those who seek to profit by placing unlabeled drug payload into dietary supplements.
"Finally, I believe that with robust enforcement of the new GMPs by FDA we will begin to see the fruits of the collective labor of responsible industry that for the past decade has been seeking full implementation of DSHEA. This is essential in restoring consumer confidence in the viability of the products that a majority of people utilize daily.
"I believe the dietary supplement industry will experience a 7% increase in revenues for 2008 given pricing pressures, higher demand and consumer awareness and acceptance of well-engineered dietary supplements. Growth will also begin to accelerate in Europe and Asia."-Mark LeDoux, Chairman & CEO, Natural Alternatives International, Inc.
"Every client we have worldwide is telling us that the studies we have been conducting on their behalf as independent third parties have translated to increased sales and media attention. Some companies have reported remarkable increases following publication of our results in top ranked peer review journals. This is exactly what we predicted would happen as the industry matures and realizes the benefits of scientific substantiation of their products, not just relying on borrowed science or unsubstantiated marketing claims. Our staff growth, the range of technical services and the use of novel and innovative methods for determining efficacy and safety will continue to help those companies committed to science in 2008."-Alex Schauss, PhD, FACN, President & CEO, AIBMR Life Sciences, Inc.
"Over the past year, there has been a major shift from foods being enriched with ALA (flax) to foods being fortified with EPA/DHA from fish oil. Companies are beginning to see the differences between ALA, EPA and DHA and the health benefits they provide. A major factor is that ALA must be converted to EPA and DHA in order to be absorbed by the body and the conversation rate is very low (approximately 0.3%). Increasing media focus on omega 3 is contributing to consumers becoming aware that fish oil is the most efficacious source of omega 3 EPA/DHA. This shift in consumer awareness has resulted in phenomenal growth for Ocean Nutrition Canada and the omega 3 EPA/DHA category."-Lori Selig, Marketing Communications Manager, Ocean Nutrition Canada
"We participate in a growing global nutrition business that knows few borders in providing novel nutrition solutions. Today's consumers are focusing on preventative healthcare and looking to proactively maintain their health through a nutritious diet. Yet, given the breadth of the global ingredients market and better-for-you product offerings, consumers do not always have the resources or time to make the best diet choices. GTC Nutrition has long been committed to improving quality of life for all consumers-and this commitment spans well beyond providing natural, sustainable ingredient solutions. We assist our partners by providing scientific, technical and marketing expertise to help them differentiate their product offerings. This coupled with our consumer education program ultimately empowers health-conscious consumers to make more informed food, beverage and supplement choices."-Patrick Smith, President, GTC Nutrition
"I believe that 2008 will be a pivotal year in the evolution of the natural products industry. Many important issues are coming to the forefront, including GMP regulations, intellectual property (IP) protection, and the quality crisis with foods and raw materials coming out of China. These issues will begin to separate the legitimate companies from the profiteers. I also think the rapid growth in the cosmeceutical and functional food and beverage categories will usher in a new wave of industry expansion and opportunity."-Jeff Hilton, President and Co-Founder, Integrated Marketing Group
"The herb market will steadily increase as a legitimate and highly valued aspect of personal healthcare. The issue of fair trade will increasingly garner attention. Herbal categories for inflammation, heart troubles, weight loss and diabetes will grow steadily. The sheer number of people turning to herbs will push the category very far. At the same time, this will increase demand for better manufacturing guidelines, for accurate labeling, and for higher levels of safety.
"New and sophisticated product development will remain more than ever a key way to gain a significant share of the pie. We're hoping the category evolves into a more mature state with more science-based products to support claims. In light of these facts, it makes sense to make R&D, QC (quality control) and fair trade priorities."-Antoine Dauby, Marketing Manager, Naturex
"BI experienced tremendous growth in 2007, particularly in our botanicals business. Our east coast facility, which offers custom blending and other value-added manufacturing services, saw a marked increase in market share in the nutraceutical, food and beverage industries. Additionally, we opened a 75,000 square foot manufacturing facility in Suzhou, China, which provides us with additional manufacturing capacity, as well as a full-service quality assurance lab to ensure all extracts and ingredients from the region are free of contaminants prior to being shipped to the U.S. Quality control continues to be a huge challenge for the industry, and our proprietary steam sterilization process, Protexx HP, offers manufacturers the most safe and natural sterilization method for both organic and non-organic raw materials."-George Pontiakos, President & CEO, BI Nutraceuticals
"In the past year, CRN has begun and will continue to question why we keep trying to fit the round peg of nutrition and wellness research into the square hole of the drug-like, treatment-based randomized controlled trial, also known as the RCT. That's not to say that RCTs are never appropriate for supplements, but other forms of research can be equally rigorous and every bit as valid for answers to the question of how to keep people healthy. The dietary supplement industry should continue promoting the appropriate research methods, tools and approaches for studying prevention and wellness."-Steve Mister, President & CEO, Council for Responsible Nutrition (CRN)
