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    Features

    Building On Transparent & Sustainable Foundations

    Socially responsible products that are mindful of the environment appeal to a growing audience.

    Building On Transparent & Sustainable Foundations
    Companies need to bridge the 'trust gap.'
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    Sean Moloughney, Editor05.02.16
    As consumers become more discerning about the products they buy and where they come from, messages about sustainability and transparency have become critical points of differentiation in the nutraceuticals market. In fact, experts have suggested these elements are essential to the long-term interests of the health and wellness market, consumers and the planet.

    Sustainability has at least two meanings, according to Paul Altaffer, chief information officer, RFI LLC, Blauvelt, NY. “The first has to do with supply chain management—being able to develop a dependable, long-term, quality supply of products. The second has to do with ensuring the supply chain has little impact on environmental, social and economic conditions in the places affected by the trade.”

    It takes a great deal of time, considerable investment and even more patience to develop sustainable and traceable supply chains, he continued. “It also requires that all the players in a supply chain behave as trusted stakeholders. This is not easy; interests are different and change regularly.”

    Companies are often initially driven to adopt sustainable practices by regulatory requirements (e.g., Good Manufacturing Practices, new Food Safety & Modernization Act rules, etc.), as well as consumer demands, said Mr. Altaffer. Ultimately, however, companies will discover several advantages, including improvements in product quality and their bottom line.

    “Building sustainable and transparent supply chains is a very important part of what we do,” he said of RFI. “It goes beyond compliance with GMPs, it is part of our corporate fabric. Our slogan is ‘From Field to Formula’ and we take this very seriously.”

    Trust Issues
    Most Americans (65%) are interested in knowing where their food comes from, according to a 2015 report from Packaged Facts, Rockville, MD. “In general there is a level of distrust between consumers and agriculture/food companies,” noted Kristine Sanschagrin, marketing manager of specialty seeds and oils, Cargill, Minneapolis, MN. “Only 34% of Americans feel that agriculture is transparent and only 30% feel that food companies are transparent. That is a problem. In recent years, food companies have focused on driving cost out of their products, yet what consumers are telling us is that while cost is important they want to know more about the food they eat.” 

    By adopting sustainable and transparent practices, companies can help bridge the trust gap, she suggested. “We know from research that 79% of consumers are familiar with sustainability, but only 21% are able to recall a sustainable brand,” she said. “As an industry we need to do a better job of telling the story of the good work being done every day in farm fields and manufacturing facilities to ensure that consumers are eating safe, reliable food.”

    Last year Cargill launched a traceable high oleic canola oil supply chain through its “Knowing Your Roots: from farm to table” program. “The program walks customers and consumers through the whole supply chain—from seed development and the farmers who grow the canola, through oil processing and packaging, on to the foodservice operators and food ingredient manufacturers who use the product, and finally to consumers.”

    Cargill scientists are working to develop higher-yielding seeds, Ms. Sanschagrin added. “As compared to 2007, today’s farmers use 21% less land to produce the same amount of oil. Our growers believe the soil is more productive today than it was 20 years ago because of the crop rotation practices and the way they are tilling and preparing the soil. They see themselves as caretakers of the land until the next generation takes over. We all have to be a part of the sustainability story to ensure agriculture and food production continues to produce safe, nutritious food for all of us.”

    At the end of the day, the ability to create value and please customers is primarily responsible for any major change in a company’s business practices, said Barbara Davis, PhD, RD, vice president of medical and scientific affairs, PLT Health Solutions, Morristown, NJ. “This is also true for the adoption of sustainability and transparency in the natural products industry.”

    In late 2015, PLT launched PLT360, a formal transparency and trust-building initiative for its ingredient portfolio. “The initiative is designed to support emerging opportunities for food, beverage and supplement companies that can deliver assured ingredient quality, demonstrable efficacy, and clean labels in consumer products,” said Dr. Davis. “The process framework of PLT360 is designed to build value into PLT’s ingredients that can be transferred by consumer products companies through their own products into the market—building trust and also responding to important and emerging consumer preferences.”

    Dr. Davis said PLT360 is a recognition that “best-in-class” ingredient solutions go beyond the demands for traceability, ingredient identification and quality compliance. “They must also be efficacious and sustainable,” she added. ”PLT360 evaluates ingredients in an effort to provide transparency with our operations, build trust with the health and wellness community and, together with them, support healthier, happier lives for consumers.” 

    Ingredient integrity is an important first step in the PLT360 program that involves source traceability, an identification process that verifies chemical/physical makeup, and a baseline safety analysis that starts with raw materials and ends when the materials are used by consumers. It also includes verification of important qualifiers like non-GMO, organic and other certifications verified by third parties.

    “The sustainability pillar of PLT360 strives to improve the impact of an ingredient’s harvesting, manufacturing and delivery on the Earth’s environment and the lives of the people who are involved with its production,” said Dr. Davis. “Programs related to this pillar include an Ethical Sourcing Review and the examination of the environmental impact of manufacturing processes.”

    PLT360 is designed to create a new type of value for consumers and as a way to differentiate ingredients that build brands and win market share. “The changes that are currently ongoing in the marketplace represent an opportunity for companies that adopt best practices and communicate these clearly to consumers. PLT believes that trust builds solid brands, and that solid brands build good business.”

    The company is formalizing its efforts—and the various programs within PLT360—because customers and consumers alike are recognizing the value and importance of sustainability, traceability and transparency, Dr. Davis noted.

    Premium Positioning
    Reassurances about social responsibility have emerged alongside clean label claims because, ultimately, people want to feel good about their purchases, said Jackson Zapp, vice president of product innovation, Applied Food Sciences, Inc. (AFS), Austin, TX. 

    “A recent (2015) Nielsen survey supports this concept, stating that an astonishing 66% of consumers are willing to pay more for products using ingredients that are sustainable, natural or organic, and show a commitment to social value,” he noted. “Feeling good about purchasing sustainable products that preserve the eco-system and protect the environment are driving companies to react. For companies like Applied Food Sciences this has been something we’ve done for years. It has always been a driving force for us to keep our supply chains growing using sustainable and ethical practices.”

    With so many popular botanicals coming from foreign suppliers, it can be challenging for brands to maintain traceability and address inherent risks involved when working with foreign growers. “AFS uses a rigid system of checks and balances that can be very time consuming and cost a lot of money in travel expenses to ensure internal audits of supply partners are being taken. However, this can provide important safety measures against adulteration, cross contamination and bioterrorism.”

    Having these systems in place is not only an important step in sourcing sustainable/traceable ingredients, it is also a key element to the success of any effective Foreign Supplier Verification Program (FSVP), a developing requirement for importers of botanical food products as part of the Food Safety Modernization Act (FSMA).

    “We travel to the source of all our botanical ingredients, personally sending someone from our team to meet with suppliers and their farmers and evaluate their growing and processing procedures,” said Mr. Zapp. “It is a challenge to keep these suppliers accountable and incentivize renewable and environmentally sound methods, so we have to train and support them. For many of our ingredients we will even have an independent third-party come in to audit these locations. This is important for being accountable to our customers, to demonstrate that not only environmental requirements are being met, but also socially responsible measures like fair wages and medical benefits, are being adhered to.”

    Adopting sustainable and socially responsible practices is not just a marketing ploy, he added. “It’s about setting a precedent to do the right thing for the environment and the people that produce these foreign goods.” Overall the industry has been slow to change, he added. “When companies start caring more about the global impact they have and less about the bottom line, then and only then will we see a change in paradigm.”

    Food Safety Focus
    A primary factor driving the adoption of sustainable and transparent practices, food safety presents many challenges to companies, according to Hope Hanley, vice president of quality assurance and regulatory affairs, Deerland Enzymes, Kennesaw, GA. “In order to ensure food safety, a company must understand and evaluate the risks associated with each point in the supply chain. A company must know where the products are grown, produced, and/or manufactured and must evaluate the controls used to mitigate those risks.”

    Challenges to a sustainable/traceable supply chain begin with a lack of training and understanding regarding modern food safety techniques, she said. “It is compounded by a global food supply that may not be regulated by sophisticated systems. Communication barriers with intermediaries (i.e., brokers, distributors, importers) also add to the challenge.”

    Each ingredient poses its own set of challenges, and the complexity of today’s chain of custody compounds the issue, said Ms. Hanley. “Finding the desired ingredients and successfully navigating the complex pathway back to the source is difficult; finding pathways that include the necessary food safety controls is extremely challenging.”

    Deerland uses a risk-management based approach to identifying its raw material suppliers. The company considers the type of raw material, the regulatory framework under which it is manufactured, the food safety and compliance history of the supplier, and the transportation conditions required, according to Ms. Hanley. “Tremendous efforts are made in working with customers, suppliers and third party auditors to maintain transparency and ensure quality in manufacturing. From the beginning, all raw materials are quarantined for quality assurance sampling and testing as soon as they arrive at the facility, and then again before they leave as finished goods. Materials are tested for identity, potency, purity and microbiological contaminants. The testing also extends to all packaging materials received, such as bottles and lids.”

    Beyond self-monitoring and compliance, Deerland undergoes a third party certification from NSF, which validates that products manufactured have the identity, composition, potency, and purity that is declared on the product label. It also ensures that the processes, procedures, and documentation required for GMP compliance are in place and effective.

    “As a further measure to protect customers and their consumers, Deerland Enzymes utilizes inventory software that provides instant traceability of all products and raw materials,” she added. “All raw materials that are received into inventory are barcoded, allowing each ingredient to be tracked at any time—both during and after production of the finished good, as well as after shipping. Now more than ever, dietary supplement marketers and manufacturers must demand validation of the methods used during testing and production of the products they’re putting on the shelves.” Ultimately, the value of adopting these types of practices is trust, she added.

    Ocean Stability
    With so many people around the world reliant on healthy oceans and marine-derived omega-3 fatty acids EPA and DHA, managing the sustainability of fisheries is of critical importance.

    “Marine omega-3 companies simply cannot do business today without taking the appropriate environmental steps to ensure the oceans are well protected,” said Becky Wright, marketing director, Aker BioMarine Antarctic US, Issaquah, WA. Every part of the supply chain should take traceability and sustainability seriously, she added. “All marine omega-3 companies need to make it part of their DNA.”

    Aker BioMarine fishes for krill in “Area 48” of the Southern Ocean, which is almost 1.5 times the size of the U.S. This krill fishery is certified as sustainable and traceable by the Marine Stewardship Council (MSC), an independent non-profit organization that sets a standard for sustainable fishing. “MSC is an important certification because it takes into account not only the sustainability of the biomass but also the traceability. No other certification actually evaluates traceability like MSC does,” said Ms. Wright. Aker’s on-board GPS tracking system allows fishing vessels to record the exact location of each krill catch. “From fishing to processing to extraction to concentration, the whole process is accounted for—from catch to capsule.”

    Alongside MSC certification, Aker addresses sustainability on several fronts, such as third party research, partnerships with environmental organizations, and technological developments. “Most recently we partnered with WWF-Australia, an important environmental NGO, to bring us closer to WWF’s Antarctica & Southern Ocean initiative. Also, last year we took an important step toward research by co-founding the Antarctic Wildlife Research Fund (AWR). The AWR brings NGOs, scientists and businesses together to provide a means for getting important research funded.”

    Aker supported the Norwegian government’s approval for carrying out a new krill biomass survey in Area 48. The last survey was conducted in 2000.

    The company also uses a unique patented technology called Eco-Harvesting, which brings krill on-board the ship alive, reducing the waste incurred by traditional methods. “The design of this technology and netting system as well as fishing at significant depth are also crucial because it helps us prevent by-catch of birds, marine mammals and fish,” said Ms. Wright.

    Part of the issue with many fisheries that supply the omega-3 market is that they typically process smaller fish or smaller marine species that are crucial to the food chain. “This is why fisheries not only need to make sure they are following sustainability protocols, but they need to go a step further to make sure they are protecting the ecosystem that depends on that omega-3 source for survival. We continuously fund and support research that evaluates the health of krill predators, for example, to make sure our fishery isn’t negatively impacting their viability. Our last study concluded that there was no impact on predators from our fishery.”

    Many companies are responding to consumer demand for products derived from sustainable sources, according to Steve Dillingham, global director of AlaskOmega Ingredients, Organic Technologies, Coshocton, OH.

    Ultimately, marine-derived omega-3 sources need to be managed sustainably in order to be dependable supply options in the future. Additionally, new sources of omega-3s will need to be developed and scaled up commercially to satisfy global demand. “Traceability factors into this equation by providing a credible and transparent link back to the original source, offering assurance that sustainable practices are being employed throughout the supply chain.”

    “As it relates to our company,” he added, “sustainability and traceability are core principals and a critical component of our AlaskOmega omega-3 fish oils and concentrates, which are MSC Certified as sustainable. Organic Technologies views sustainability as an important part of its larger commitment to good environmental stewardship and conservation.”

    AlaskOmega sources its crude oil exclusively from wild Alaska pollock caught in the Bering Sea. “The Alaska fisheries are managed through a holistic approach that assesses impact on the entire Bering Sea ecosystem,” said Mr. Dillingham. “The Alaska pollock fishery has been responsibly managed by the U.S. government for well over 30 years, and continuously certified by MSC since April 2005. Due to the careful monitoring and responsible catch restrictions over the years, the Alaskan pollock fishery is very healthy and growing.”

    In the fall of 2014, the National Oceanic and Atmospheric Administration issued a survey report on the state of the Wild Alaskan Pollock fishery, showing a 60% increase in Pollock survey biomass from the prior year, and total allowable catch  quotas for 2015 and 2016 have basically stayed the same, ensuring the robustness of the fishery stock, he added.

    “Together with our fishing partners we are an integral part of a certified sustainable and traceable seafood processing value chain.” 
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