According to Mintel, the world’s leading market intelligence agency, 24 per cent of consumers between the ages of 16 and 24 are now looking for “waterless” products. This is a result of an increased global awareness of dwindling water supplies, with consumers looking for products that are made with—and used with—smaller quantities of water.

Currently, several products on the market are being advertised in this way, including dry shampoos and beauty bars, which eliminate the need for excess water usage both in the shower and in the actual formulation of the products. Beauty bars, which consist of lipids and emulsifiers, moisturize the skin without the water content of a traditional moisturizer: today, standard creams and lotions contain 70-80 per cent water content by weight.

Additionally, metamorphosing product forms—like oil-to-powder, glycerine-in-oil and powder-to-foam—can be helpful in eliminating water during the formulation process, but may still require water during use.

Unfortunately, some products claiming to be “waterless” may be misleading—the manufacture of these personal care products requires significant cleansing of equipment, which uses massive amounts of water. And, some of these products—like those using vast volumes of glycerine, lipids or other solvents—can come with large carbon footprints.

As such, take this market trend into consideration when deciding what to stock your shelves with, but be wary of the environmental ramifications these “eco-friendly” products may actually have.

According to research from Verdict Retail, the U.S. will remain the largest duty free market in the Americas by 2020. This growth will be driven by rising international footfall, especially from China, as well as new laws which will allow U.S citizens to be exempt from duty up to USD $800.

Verdict Retail’s report, Duty Free Retailing in the Americas 2015-2020, notes that the US market was worth $3.9 billion in last year and is set to expand by $1.1 billion at a Compound Annual Growth Rate (CAGR) of 5% to reach $5 billion by 2020.

“Duty free retailing has been under-exploited by US airports until recently, but having seen the success of duty free retailing in other regions, US airports operators have realised the revenue benefits of having attractive retail facilities for travellers,” says Maureen Hinton, Global Research director at Verdict Retail. “Major airports such as La Guardia, Pittsburgh International, Dallas, Denver and Los Angeles are investing heavily in expanding and redeveloping their sites, including retail, while major duty free operators such as Dufry, Lagardère Travel Retail, and Gebr. Heinemann expand in the region.”

The report also says that out of the nine major duty-free markets—the US, Brazil, Canada, Mexico, Chile, Peru, Argentina, Colombia, and Venezuela—Canada will grow fastest at a CAGR of 7.6% during the forecast period, reaching USD $554 million by 2020.

“A weak Canadian dollar and government tourism campaigns will attract American visitors, driving duty free sales in the country,” adds Hinton. “Spending will receive a boost from a new law that has extended the duty free allowance for US travellers, which stands first in terms of foreign visitor arrivals.”

Stephen Peers, as part of his retirement transition, will be stepping down as vice president of sales to assume the role of director of West & National retail at Pinnacle Foods Canada Corp. Peers and his wife have relocated to the Gulf Islands, B.C. Peers and his wife, Jennifer, have relocated to the Gulf Islands, B.C. Peers’ 34-year CPG career includes senior roles at leading companies such as Parmalat Canada, Preisco/Perco Sales and Procter & Gamble.

According to the Canada Organic Trade Association (COTA), the Canadian Food Inspection Agency (CFIA) has released new information on the Safe Food For Canadians act.

COTA’s Tia Loftsgard recently attended a two-day meeting held by the CFIA to gain feedback on their services. At the event, it discussed the mandatory changes that will come into force within the next year and a half.

CFIA notes that licensing and export certification will now be required for all companies in Canada—including the country’s 70,000 unregistered businesses. Additionally, CFIA will create a digital platform called “ASK CFIA” to help the organization to act as both a regulator and a service provider.

The aforementioned meeting also covered the topics of Import, Export and Domestic, and gathered roundtable feedback from members of the industry. COTA notes that it made requests for more information on how the CFIA staff is trained on organic goods, and learned that it may have more opportunities to do joint industry/CFIA trainings through the International Food Protection Training Institute.

For more information on the Safe Food for Canadians Act, click here.

General Mills has announced its partnership with Organic Valley. This relationship will help about 20 dairy farms to add around 3,000 acres to organic dairy production over the next three years.

This unique program will support General Mills’ commitment to double the organic acreage from which it sources its ingredients by 2019. It will also build General Mills’ relationships with the organic farmers who support its yogurt operating unit in the U.S., which manufactures brands like Yoplait, Annie’s, Liberté and Mountain High.

“To ensure we are able to deliver great tasting organic yogurt offerings to our consumers, we are committed to supporting a framework in partnership with Organic Valley that will not only ensure a consistent supply chain, but also make it easier for dairy farmers to successfully manage through the transition to organic,” says David Clark, president of the General Mills Yogurt Operating Unit.

Since 2009, General Mills has increased the organic acreage it supports by 120 per cent and is now among the top five organic ingredient purchasers in the North American packaged food sector.

Along with this announcement, General Mills will launch the Organic & Regenerative Agriculture Transition Council. This project will bring together sustainable agricultural leaders, farmers and industry stakeholders with the mission of advancing organic and regenerative agriculture practices.

Online health and beauty products retailer Well.ca is the latest e-commerce company to expand into bricks-and-mortar retail. The company’s first physical store, which will consist of a 900-square-foot outlet, is set to open in late June.

The store will be located at the shops of Don Mills mall in Toronto. This move comes as part of the company’s effort to broaden the business beyond just online buyers.

“We’re going back to our entrepreneurial roots and creating what we believe is going to be a unique retail experience,” says chief executive Rebecca McKillican. “It’s a great opportunity to attract different customers to our brand.”

Begun in 2008, Well.ca has become Canada’s largest online retailer of health and beauty products, with a focus on eco-friendly and natural goods. The privately held company, based in Guelph, Ontario, has 150 employees and hundreds of thousands of active customers, with its revenue growing 40 per cent year over year.

The Toronto shop is scheduled to be open for four months, with the possibility of extension and the opening of additional outlets around Canada. It will offer about 1,000 products in-store. Well.ca plans to review its sales data to predict which of the 40,000 products available online should be stocked at the retail location.

“We’re going to put what we feel is the right assortment of products in, but we’re also going to learn from our customers,” says McKillican. “We have the product portfolio to draw on and we have the data, so we can tailor it to what people are looking for across the country.”
The store will also offer staff-run workshops to educate customers about the products on sale. Employees will also carry tablets that they can use to showcase their online products, technology that will be supplied by Tulip Retail, a New York-based company started by Well.ca’s original founder, Ali Asaria.

“If you think about some of the other retailers in the health and wellness space, it can be an intimidating experience,” says Erin Young, chief marketing officer. “We want to have a welcoming environment.”

Well.ca’s new approach follows in the footsteps of other omni-channel retailers. According to Deloitte, this method sees up to 20 per cent higher conversions.

“The reality is, e-commerce doesn’t make money,” says Jennifer Lee, national retail leader at Deloitte. “By definition, an omni-channel customer is more profitable than a customer who comes through one channel.”

As such, an omni-channel approach is becoming necessary in today’s retail market. By considering the ways in which consumers shop both online and in stores, retailers may make the most of their business and even boost sales.

Walmart Canada has announced that it will no longer accept Visa cards at its stores due to “unacceptably high” transaction fees. Visa, however, notes that they offered “one of the lowest rates available to any merchant in the country.”

Information on Visa Canada’s website shows that for standard retail purchases made in-store, fees range from 1.42 to 2.08 per cent, while MasterCard charges 1.44 to 2 per cent for standard purchases at independent retailers. However, MasterCard offers lower rates to large retailers, going as low as 1.26 per cent for those that have a minimum “net purchase volume” of $3 billion.

In a statement, Walmart said that it pays “over $100 million in fees to accept credit cards each and every year.”

The first stores to stop accepting Visa, located in Thunder Bay, Ontario, will begin on July 18. The new system will then be adopted in phased across the country. Walmart has more than 400 locations in Canada.

Walmart isn’t the mass retailer to make this move—No Frills doesn’t accept Visa or American Express, noting that the fees are too expensive for their business. Additionally, Costco only accepts MasterCard when it comes to credit card payments. Walmart will continue to accept MasterCard, American Express and Discover cards.

A representative from Visa Canada adds that the company “regrets” Walmart’s decision, and that it will have a “negative impact” on Walmart’s shoppers.

Walmart Canada said the company is holding out hope that it will be able to “reach an agreement” with Visa for lower fees.

Seabuckthorn International Inc. (SBT Seabuckthorn) has announced that iLevel Management Inc. will now be representing its line of skincare and nutritional products in the Canadian marketplace.

“Seabuckthorn International Inc. is delighted to announce that we have engaged iLevel Management to broker our unique product line into the Canadian marketplace,” says Susan McLoughlin, the company’s president. “Jimmy [Vaid]’s solid experience in the brokerage industry, his innovative approach and the extensive experience of his team are a powerful trifecta, and we look forward to a productive and enduring partnership.”

About Seabuckthorn International Inc.

Established in 2003, SBT Seabuckthorn is committed to conserving the earth, improving your health, and healing your skin with products based on the exceptional nutrition found in Seabuckthorn. Its mission is to contribute to human health and wellness with pure, plant-based, sustainable products. At the core of all of its products is the healing power of the leaf, fruit and seed of the Seabuckthorn plant. Its nutritional and skincare line supports mucous membranes and digestive health, as well as cardiovascular, skin and mobility health.

About iLevel Management Inc.

iLevel Management was founded by Jimmy Vaid in 2013. Jimmy’s solid experience in the brokerage industry, his innovative approach and the extensive experience of his team provide solid and progressive support for iLevel vendors. The iLevel team works closely with vendors to execute long-term plans for success.

Ethical concerns are rising and influencing how consumers spend, especially among millennials. With information at our fingertips, it is no wonder why many consumers have started asking “where, how, why, who, and what?”
Leading companies have started to put social and environmental issues at the heart of their business strategy. The goal is to meet the demand of transparency and accountability for consumers, which adds value to their corporate brand.
Euromonitor has addressed this trend by developing a database, Passport Ethical Labels, with extensive research on Ethical Labels across packaged food and drink categories. You can request a demo of their database here.
Stay tuned as we find out more about their research.