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The future of organics

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The future of organics

Since organic foods have seen a steady growth that shows no signs of slowing down, is the supply enough to satisfy the demand?

By Kavita Sabharwal

 

Organics have grown in popularity over the past decade, with more consumers and producers joining the movement every year. According to the International Federation of Organic Agriculture Movements, the global market for organic products in 2011 reached nearly US$63 billion across all channels, including mainstream retailers, health food stores and drugstores. In 2012, the total Canadian organic market was valued at nearly $3.7 billion across all categories, including alcohol, supplements, clothing fibres, personal care products, pet food, household products, flowers and exports out of Canada.

Canada imports 62 per cent of its organic foods.

In 2008, about $187 million (approximately 74 per cent of the $252 million total) came from the U.S., while the remaining 26 per cent originate from Chile, Mexico, China, Italy and Germany.

 

Organic growth

 

The governing body Agriculture and Agri-Food Canada states that the organic sector has been expanding into new markets as its production and retail sales have grown by double digits over the past 10 years, with consumption outpacing production. Organic food is expected to continue its upward trajectory as the category in Canada experiences increased consumer confidence due to frequent certifications ensuring standards are being met.

“Responding to unprecedented consumer demand, the organic market in Canada is growing rapidly,” says Marie-Eve Levert, strategy and research manager for the Canada Organic Trade Association (COTA). “It tripled between 2006 and 2012, and is now valued at $3.7 billion per year.”

  • According to Nielsen’s grocery label scan in 2009 for Agriculture and Agri-Food Canada, the country’s top organic sales in 2008 include prepared foods (86 million units), refrigerated food and beverages (76 million units), dairy (70 million units), non-refrigerated beverages (45 million units) and condiments (29 million units).

Canadian Organic Growers states that by 2009, there were over 3,900 certified organic operators in Canada, accounting for about 1.7 per cent of the total number of farms in Canada, as well as approximately 1,200 certified organic processors and handlers to produce ingredients and consumer-ready products.

  • Canada’s organic dairy industry has 206 milk producers and a minimum of 18,000 dairy cattle, and the industry continues to grow. Between 2006 and 2008, the organic dairy industry grew by 25 per cent, while from 2008 to 2010 it grew by 8.5 per cent.

According to Stephanie Wells, senior regulatory affairs advisor at COTA, the number of Canadian organic markets has more than tripled over the past seven years. “Other agri-food sectors are not growing at this wonderful rate. That indicates a lot of consumer demand that is growing,” she says.

  • The COTA study National Organic Market: Growth, Trends and Opportunities, 2013 states that 58 per cent (20.3 million) of Canadians buy some organic products every week, though which products in particular are not mentioned.

Aaron Skelton, vice president of brands and business development at Greenspace Brands, says that supply is falling short. “We’re at a bit of a crossroads. We’ve had such growth and such an interest in it by the public that the greater market is opening its eyes and seeing the potential of natural and organic,” he says. “The supply that’s out there is not readily available. We’re at a stage where large companies are cornering the market on critical supply elements.”

In addition, Wells indicates that demand for organic is rising as consumers become more diverse. “Different age groups, income brackets, types of households, whether it’s student roommates or families, and also diverse ethnicities are now making that organic choice,” she says. “Now the challenge is to keep meeting that consumer demand.”

Wells says there are some issues with that task, including the rising cost of land. COTA is working with other organic organizations such as Canadian Organic Growers and local businesses to help farmers acquire land at reasonable rates. Wells believes that organic farms are good for communities and the economy since they use about twice as many labourers as a conventional farm.

“I think farming is still growing and I think that’s because of the premium for it,” says Skelton. “The price they can demand at market increases, but also the operating costs of that business can change.”

“It’s very labour-intensive. If you can’t spray poisons to handle weeds, you have to use machinery or do it by hand, which is one of the reasons why it is more costly,” she says. “On the plus side, organic farms use up to half the amount of energy consumption of conventional farming.”

Levert hopes producers will respond to the opportunity presented by increased demand. “From 2001 to 2011, the Census of Agriculture showed a 66 per cent growth in organic farms,” she says. “This said, demand continues to outstrip domestic supply, and 49 per cent of the Canadian organic market is served by imported goods (COTA study, 2013). The more organic growers we have in Canada, the more the supply gap will be fulfilled with Canadian products, especially for fresh vegetables, fruits, dairy products and bakery.”

However, a larger number of young farmers are cropping up. While eight per cent of farmers in Canada are under 35, that number grows to 12 per cent of organic farmers, according to the 2011 Agricultural Census from Statistics Canada. These young farmers are often educated in agricultural studies so they commit to organic farming for the environment or their own personal reasons.

COTA is currently encouraging the Canadian government to help farms make the transition to organic. This process takes three years in order to build up the nutrients in the soil to feed the crops without resorting to chemicals. In the U.S. and European Union, the governments help support their farmers in this transition.

“They help cover their costs. We would love to see the government help. In the U.S., the government allocated $57 million to organic transitions under the Farm Bill,” says Wells.

“A recent meta-analysis from UC Berkeley research shows that when organic farms employ agro-ecological practices, the organic-conventional yield gap disappears,” says Levert, implying that organic farms may be able to meet production rates of regular farms with the right practices in place, allowing for higher yields.

While the supply of organic foods is currently close to meeting the demand, it appears as though years down the road; a plan of action will be required to keep up. As organics continue to gain and hold popularity, it is clear that if more producers do not start joining the cause, many Canadian consumers will be left disappointed.

 

What do consumers buy organic?

  • “I usually buy my groceries every couple of weeks, and the only items I really buy that are organic are vegetables (carrots, mushrooms, etc.) I like my vegetables as natural as possible.”   – Sarmela Dharmarajah
  • “I normally purchase certain fruits, vegetables, eggs and meat organic. They are the most heavily sprayed and I am eating them directly, and I want to minimize the amount of chemicals I am exposed to. Some fruits come with a protective layer, though berries, apples and leafy greens do not. I also wash and soak them when I get home. You can’t eliminate all toxins on your food (unless you grow your own!), but you can reduce them.” – Shelby Stover

 

Other organics

 

According to the Canada Organic Trade Association, the total Canadian organic market was worth nearly $3.7 billion in annual sales in 2012. While food and beverages account for over 95 per cent of this amount, there are other categories that see regular sales.

 

Organic supplements accounted for $34.4 million, or 1.25 per cent of the total market share.

 

Organic personal care products accounted for $41.1 million, or 0.45 per cent of the total market share.

 

Can You See It?

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Can You See It?

A look at the vision health category

By Allison Tannis

 

Take a closer look. Vision/eye health ranks among consumers’ top five health concerns, according to the 2013 HealthFocus International Trend report. Plus, vision health concerns increase with age, making baby boomers – Canada’s largest spending consumer group – the key market. Can you see the potential in the vision health category?

 

A glance at sales performance

 

The vision health category is a steady performer, but grew only six per cent in 2012, according to Nutrition Business Journal. Why are these numbers are not as high as one might predict?

According to Virginia Dare’s 2012 Boomer Health Study, more than half of boomers surveyed said eye health was very important to them, but they are not well informed about how to care for their eyes. That and other studies concur that many consumers are unaware of the potential of vitamin C or lutein for eye health.

“Consumers are usually looking for other health issues first, like omega-3s, probiotics or weight loss products. Eye-related health products are always secondary in their conversations with us,” says Katrina Haché, a wellbeing counselor at Sobeys.

Increasing consumer awareness of products that offer eye health benefits could boost sales at retail. Many consumers would be surprised to learn that there is even such a thing as “eye vitamins.”

What sells?

 

Of the adults who take dietary supplements, seven per cent use a supplement for eye health, according to a 2011 Gallup Study. The report notes that the most marketable dietary supplements for eye health to mainstream consumers are antioxidants. Over the past decade, antioxidants have had a strong place in the health food channel and are gaining movement in the mass market.

Combination supplements are experiencing better sales in the U.S.: in mass market, eye health multivitamins such as Ocuvite are strong sellers, second only to top selling Centrum Silver and Flintstones vitamins. According to Haché, customers in the Sobeys wellbeing department are looking for formulas designed specifically for eye health, such as Vogel’s Sharp Vision.

Pycnogenol® – which acts in synergy with lipophilic antioxidants such as Lutein to provide antioxidant protection against oxidative-stress related degenerative processes like retinopathy (a diabetic complication) in the eyes.

According to Erik Klyve, Supplement Manager at Goodness Me, “[Consumers] are not going for a multi, they tend to go for a more specific item. Typically people lean towards lutein or a bilberry extract if they are a little bit more aware…the average consumer goes to the eye health section…they want something for their eyes but don’t really know what they are looking for.” In all Goodness Me stores, there is a clearly labeled eye health section, which includes lutein, a few combination products specifically for eye health and traditional herbals such as eyebright.

Traditional medicines that promote eye health include bilberry and eyebright. According to a 2013 report by Agriculture and Agri-Food Canada, bilberry has a well-deserved reputation as a useful herbal medicine and therefore promises a growing market. Bilberry was ranked as the fifteenth best-selling single herb supplement in United States mainstream retail, which includes grocery stores, drug stores and mass-market retail stores.

According to these retailers, a successful vision/eye health section is made up of mostly multi-ingredient supplements specifically targeting eye health. A smaller percentage of product SKUs is represented by key vision health antioxidants and traditional herbal medicines.

 

Looking outside of the box for areas of growth

 

The greatest potential in the vision/eye health category may lie in food products. Studies show a diet high in fats and low in nutrients may increase the risk of developing age-related macular degeneration (AMD). Meanwhile, a diet rich in omega-3 fatty acids, fresh fruit and dark green leafy vegetables provides nutrients and antioxidants that are healthy for the macula of the eye.

There is both scientific support and consumer willingness to eat foods that promote eye-health. According to Packaged Facts 2012, more than three quarters of grocery shoppers agreed that eye health had an influence on their food purchase decisions.

Improving consumer understanding of the relationship between food and health can build consumer confidence and sales. Retailers like Sobeys have been actively creating an in-store environment that fosters this.

“A large majority of the consumers who shop in our wellbeing departments are in the 50+ age group, and cooking has become a hobby,” says Haché. People are coming in and looking for reduction of symptoms through food.”

When consumer knowledge is low, marketers have found foods with labels highlighting the health potential are successful first-to-market products. In the U.S., Green Giant has enjoyed success with a vegetable blend labeled as being good for eye health.

Creative merchandizing including a wider diversity of vision/eye health related products can help retailers attract the eye of a larger consumer base, while educating consumers about the many ways they can promote eye health.

Millions of Canadians live with some form of AMD, diabetic retinopathy, glaucoma or cataracts. Since most major eye conditions in Canada are age related, the number of Canadians with vision loss is projected to double over the next 20 years. And many of these consumers suffer symptoms that are somehow related to the vision loss. People with vision loss are three times more likely to experience clinical depression and four times more likely to have serious hip fractures. Smoking cigarettes and exposure to sunlight can dramatically increase risk of age-related macular degeneration (AMD). So vision/eye health consumers are more likely to be interested in mental health, bone health and smoke cessation products, sunglasses, wide-brimmed hats.

 

Now, you see it

 

Three quarters of vision loss is avoidable, according to the Canadian National Institute for the Blind. Research studies have found many natural health products can help prevent vision loss and eye health problems. Increasing the focus on consumer awareness may boost sales in this already growing market. To achieve this, retailers can offer educational seminars and materials both in-store and online. To catch the eye of potential consumers, retailers can merchandize vision/eye health products in a clearly labeled section, and create displays that highlight the diversity of products available, both conventional (foods, antioxidants, multivitamins) and those outside the box (sunglasses, mood balancing supplements).

 

 

[Table] Natural Products for Eye Health: Claims, Dosages and Cautions

 

Alpha Lipoic Acid

Claim: Provides antioxidants for the maintenance of good health.

Dosage (adult): not to exceed 600 milligrams per day

Cautions: Consult a health care practitioner prior to use if you have diabetes, are pregnant or breastfeeding.

 

Bilberry Extract

Claim: Used in Herbal Medicine to help slow the progression of disorders of the eye, such as diabetic hypertensive retinopathy, and macular degeneration.

Dosage (adult, standardized extract): 12-75 grams per day, fruit 36% anthocyanosides

Cautions: For progression of disorders of the eye, or relief of symptoms related to non-complicated VDI consult a health care practitioner if symptoms worsen.

 

Black Currant Extract (No Health Canada Monograph)

Claim: Unknown

Dosage: 50 mg per day has been used in clinical studies

Cautions: Do not use if you have a known allergy or hypersensitivity to blackcurrants. Consult a health care practitioner prior to use if taking antihypertensive agents, antiarrhythmics, diuretics, blood thinners, monoamine oxidase inhibitors, or have epilepsy.

 

Copper

Claim: A factor in the maintenance of good health.

Dosage (adult): 65-8000 micrograms per day

Cautions: None

 

Eyebright Extract (No Health Canada Monograph)

Uses: Used for general eye health enhancement, and to reduce the risk of developing age-related macular degeneration.

Dosage: 100 – 860 milligrams per day

Cautions: No interactions are known.

 

Lutein and Zeaxanthin (No Health Canada Monograph)

Claim: Provides antioxidants for the maintenance of good health.

Dosage: 6-20 milligrams per day to decrease risk of AMD, up to 40mg safe in studies

Cautions: No interactions known. Consult a health care practitioner if you are pregnant or breastfeeding, or smoke cigarettes.

 

Lycopene

Claim: Provides antioxidants for the maintenance of good health.

Dosage (adult): not to exceed 30 milligrams per day.

Cautions: None

 

Omega-3 Fatty Acids (from Fish Oil)

Claim: Source of omega-3 fatty acids for the maintenance of good health.

Dosage (adult): 100-5000 milligrams of EPA+DHA per day

Cautions: None.

 

Pycnogenol (French Maritime Pine Bark Extract)

Claim: Acts in synergy with lipophilic antioxidants such as Lutein to provide antioxidant protection against oxidative-stress related degenerative processes like retinopathy (a diabetic complication) in the eyes.

Dosage: For diseases of the retina: 50 mg three times daily.

Cautions: Consult a health care practitioner if you have an auto-immune disease, take medications that decrease the immune system, are a woman who is pregnant or breastfeeding, or if you have upcoming surgery.

 

Selenium

Claim: An antioxidant for the maintenance of good health.

Dosage (adult): 3.5 – 400 micrograms per day

Cautions: Consult a health care practitioner prior to use if you have a history of non-melanoma skin cancer.

 

Vitamins A

Claim: Helps to maintain eyesight.

Dosage (adult): 65-3000 micrograms retinol activity equivalents per day

Cautions: None

 

Vitamin C

Claim: An antioxidant for the maintenance of good health.

Dosage (adults): 6 – 2000 milligrams per day

Cautions: None

 

Vitamin E

Claim: An antioxidant for the maintenance of good health.

Dosage (adult): 1 – 500 milligrams alpha-tocopherol per day

Cautions: Consult a health care practitioner prior to use if using doses of or greater than 180 milligrams and have cancer; using doses of or greater than 268 milligrams and have cardiovascular disease or diabetes; using doses of or greater tan 360 milligrams and are taking blood thinners.

 

Zinc

Claim: Helps to prevent zinc deficiency.

Dosage (adult): 0.7 – 25 milligrams per day of zinc picolinate

Cautions: None

 

The power of in-store sales promotions

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The power of in-store sales promotions

What can in-store promotions do for you, and how do you avoid the pitfalls?

By Darrin Duber-Smith

Marketers just love to talk about value: creating it, delivering it, adding it to goods and services. In fact, the word appears in nearly all definitions of marketing one can find, and therefore it is a central consideration in the development, pricing, distribution and promotion of goods and services.

The world of promotion, which embodies just about every aspect of marketing communications, is replete with effective strategies and tactics designed to acquire and retain customers. One of the most effective elements of communication, especially at the in-store level, is the practice of using sales promotion.

Sales promotion is loosely defined as a value-adding activity, usually short-term in nature, whose purpose is to elicit a consumer response, usually measureable. Samples, coupons, contests, rebates, rewards programs and price reduction deals are all methods that have been successfully used by marketers for many decades. However, there is little doubt that the most effective sales promotions are executed in-store and involve a symbiotic relationship between brands, retailers, brokers, distributors and other intermediaries. These relationships can be rather complex and costly, especially if supply chain members fail to add value to the process themselves.

 

In-store strategies

 

Numerous studies over the years point to the same phenomenon—the importance of the in-store environment when it comes to consumer decision-making. Consumers digest all of the information they are exposed to regarding meeting a want or need and often enter the retail environment, whether in-store or online, with what is called an evoked set, which is an idea of what they would like to purchase ahead of time.

Temporary price reductions, coupons, in-store demos, packaging, shelf location, displays, visual merchandising, recommendations of store staff and many other techniques are good methods of helping consumers make a final decision or encouraging them to consider products outside of their evoked sets.

Research confirms that the majority of final decisions involving purchasing goods are made in the store itself, despite the best (or worst) intentions of the shopper. Many of these decisions rely on product packaging to interest consumers enough to change their buying decisions, if necessary. There is also an emphasis placed on the quality of the in-store environment, which is dependent on marketing support provided by product vendors. This is why successful cooperation between product marketers and retailers is of paramount importance.

Of the many in-store opportunities for marketers to engage customers, the most effective is probably the in-store demo. While it can be a very expensive endeavor, especially if done on a large scale, the opportunity to let a shopper try a product (which is the best way to elicit a purchase), get a coupon and speak with someone well-versed in the product and familiar with personal selling tactics is very hard to pass up for consumers. This is especially true for new product introductions and with customers who are not very familiar with natural health products.

In-store coupons, whether available at demo tables, on shelves as shelf-talkers or on product packaging have response rates that are much higher than any other couponing methods. Digital coupons offered on websites and through mobile devices are only beginning to catch on and currently represent a very small fraction of the total number. This will surely change as marketing activities switch to digital formats that are more efficient, measurable and truly one-to-one in nature.

In-store displays, including end caps, counter displays, prominent signage and anything involving a case stack discount have also been proven effective when planned and executed properly, all of which require the help and expertise of the vendor.

 

Collective collaboration

 

The benefits of such supply chain alliances are obvious. In-store promotions, generally paid for by the manufacturer, help move product. Manufacturers make products based on sales forecasts that attempt to adequately predict demand and match supply to fit. And with the help of brokers and distributors, manufacturers can effectively push products through the supply chain.

Such push strategies are often supported by national and local consumer marketing campaigns, marketing communications materials, displays, discounts, cooperative advertising dollars, slotting fees, demo support and store personnel trainings, among many others to encourage shoppers to pull products off the shelves.

This constant push/pull effect is the magic that moves goods through the supply chain. Retailers, who tend to have the most power in the supply chain due to their proximity to consumers, must do their part to get customers into their stores as well. Despite the proliferation of digital options, television and radio advertisements as well as direct mail are still the most common techniques used in retailer-to-consumer pull marketing, though e-mail marketing campaigns continue to gain popularity among retailers since they help develop customer loyalty and generate return shoppers.

 

Issues and pitfalls

 

Supply chain relationships do have their problems. Below, we outline five common problems with supply chain relationships, which marketers must do their best to address.

 

  1. Lack of vendor support is a common issue. Failure to leverage the branded product-retailer relationship with at least some of the support methods discussed earlier will certainly result in poor sales promotion performance as well as animosity on the part of the retailer who needs support in order to move the goods off shelves.

 

  1. On the other side of the coin, retailers must do their best not to squeeze suppliers for every penny since such tactics tend to leave the manufacturer with very little money left for retailer support. This is especially true for smaller players.

 

  1. Poor communication is always a problem, leading to gaps in expectations and all sorts of other issues. Improperly executed in-store promotions can be a problem. All arrangements should be clearly spelled out in writing before execution, and store personnel adequately trained.

 

  1. Expectations are one thing; measurable objectives are quite another. It’s tough to evaluate whether or not a sales promotion has been successful without setting actual numbers that need to be reached. Counting samples given, coupons redeemed, products purchased and contacts made is necessary, and mutually agreed-upon objectives get everyone on the same page, while providing crucial metrics for program evaluation.

 

  1. Despite the best efforts of all parties involved, simple “market failure” can ruin the best-laid plans. Offering some combination of the wrong product, wrong place, wrong time, wrong price and wrong message will ensure failure. And even when marketers do get these things right, environmental conditions such as the economy, new laws, emerging social trends, changes in the natural environment and many other uncontrollable external factors can affect results. These factors tend to place stress on any relationship.

Simply put, marketers of branded products and the retailers that sell them need each other to be successful. A product that is sold directly to the consumer can only enjoy so much velocity, and a retailer can only get so far with its store brand offerings. For this relationship to be a sustainable one, both parties must exercise mutual respect for one another and set agreed upon expectations including measurable results. Branded product manufacturers must engage in both push and pull marketing, including a major emphasis on the in-store promotional environment. Retailers must also do their part to add value to the process by making sure that the promotion is executed as intended by the manufacturer. Like any relationship, the manufacturer-retailer arrangement can be a wonderful thing, or a little piece of Hades. One thing we do know for certain is that such relationships can either add or subtract value for consumers depending on how well they are managed, and bad relationships don’t last very long.

 

Darrin C. Duber-Smith, MS, MBA, is president of Green Marketing, Inc., and senior lecturer at the Metropolitan State University of Denver’s College of Business. He has almost 30 years of specialized expertise in the marketing and management profession including more than 20 years working with natural, organic, and green/sustainable goods and services. He was a co-founder of the Lifestyles of Health and Sustainability (LOHAS, c. 1999) market/industry model and was leader of the first U.S. industry task force that helped frame the Natural Products Association’s definition of natural (c. 2005). He has published over 80 articles in trade publications and has presented at over 50 executive-level events during the past 15 years. A frequent media contributor and recipient of The Wall Street Journal’s In-Education Distinguished Professor Award in 2009 and WSJ’s Top 125 Professor Award in 2014, Mr. Duber-Smith is author of Cengage Learning’s “KnowNow! Marketing” blog at http://community.cengage.com/GECResource/blogs/marketing. He can be reached at DuberSmith@GreenMarketing.net or ddubersm@msudenver.edu.

 

C’est La Vie Montreal: Organic Markets Built on Kitchen + Community

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Modern visionaries

Albertina Ramos and Salvatore Frino brought their great minds together over six years ago to open C’est La Vie.

Photography by Adriano Ciampoli

 

Albertina Ramos and Salvatore Frino really love fresh, healthy food, which is why the pair decided to open their own retail location in May 2008 after working together for 20 years on a recurring basis. Ramos started out as a sales associate at Optimum Natural Foods in downtown Montreal, working her way up to wellness department manager, while Frino joined Optimum years later to help manage the grocery department.

Together, they came up with the plan to venture out on their own using Ramos’ background and knowledge of the industry and Frino’s love of food. Everything came together when Frino found a location perfect for their vision, allowing them the space to offer people what they love.

“It’s our passion. We live the lifestyle. It’s something that we’ve practiced for a long, long time, and having experienced the industry myself, we just saw an opportunity,” says Ramos. “That’s how this venture got started.”

Six years later, Ramos and Frino have three locations across Montreal: their premiere 2,200 square-foot shop on avenue du Laurier Est, the 3,800 square-foot avenue du Parc location and the newly-renovated 1,600 square-foot store on avenue du Parc Lafontaine.

 

A community space

 

One of the reasons C’est La Vie is a success, according to Ramos, is its Grab and Go section and the extensive organic kitchen managed by Frino that supplies Grab and Go for each location.

“That’s Salvatore’s strength. I handle the buying right now for all the supplements and cosmetics,” says Ramos. “Salvatore handles our kitchen, which is very extensive, and he handles all the operations. He’s a visionary!”

“We also have an amazing team,” says Frino. “It’s certainly not just Albertina and myself. Though we may be the visionaries, if we didn’t have this great team we would not be able to do anything that we’re doing.”

The company employs 24 people across all three locations. The small-format stores focus on organics, fresh produce and bulk, for the most part, in addition to the prepared foods and juice bars that are a cornerstone of the business.

C’est La Vie re-opened it’s recently-renovated Parc Lafontaine location in early January, which also started an extensive rebranding of the entire company, including a new logo and a Facebook page for the location.

Ramos and Frino have no plans for further expansion in 2015, however the year after holds promise. “Right now, we’ve just undertaken an extensive reorganization of the business because we needed to get ourselves up to speed on everything,” says Frino. “That will take us about 12 months. In 2016, we’ll look at doing more.”

The owners picked their avenue du Parc and Parc Lafontaine locations because of their neighbourhoods. “We felt there was a need to develop something in the area with the same feel. We focus on areas where we know people will just walk over,” says Frino. “I think that’s where we’re heading: small, local community markets that are organic-focused.”

“The neighbourhoods are very residential,” adds Ramos. “We’re in the heart of Montreal. There’s a really beautiful energy surrounding everything. Our customers range from the young and hip to families. There are some beautiful parks around our stores, lots of yoga going on. A fairly large percentage of our customer base is already geared toward the organic food lifestyle.”

The owners say their customers are a mix of young adults who come in for smoothies and prepared foods to older customers doing their grocery shopping for the week. These customers are all professionals, according to Frino.

“We actually happen to be in an area where there are a lot of university professors, lots of local artists and restaurant owners,” he says. “There is a lot going on in the area in terms of food culture, cafes and theatre, so those people that either own and operate or work within those segments happen to live within that area. They’re all fairly well educated.”

The partners say that the new store on avenue du Parc has some competition in the area, though Ramos believes there is space for everyone. “I think what sets us apart is our kitchen, our Grab and Go, our prepared foods and our juice counters,” she says.

“You have to decide what you’re going to be to whom and then build your business accordingly,” adds Frino. “We’ve found what works for C’est La Vie, and we have to focus on that and build on it.”

As for what C’est La Vie offers customers, Frino says, “We’re a place people can walk to, get what they need and it can be a point of reference for a small community. Our Parc Avenue location is in the Mile End area, so it’s very hip. It’s local. We have a beautiful terrace where people can hang out, have a smoothie, talk or get online. It’s that type of environment.”

 

A social experience

 

The retailer has hired an in-house marketing professional with an understanding and knowledge of the health food industry who will be assisted by an outside firm. They will be working in conjunction on a new marketing strategy to be carried out this year featuring promotions, in-store events, branding and a social media presence.

Ramos says she and Frino are both being trained on social media sites such as Instagram and Twitter, among others. In addition, all of C’est La Vie’s employees are permitted to post on the company’s Facebook page to help promote in-store events, such as a makeup application for female clients or a cooking demo on gluten free products.

“For 2015, we’re going to be more aggressive with in-store events because I think it’s a great way to interact at the community level with your customers,” says Frino. “It’s not about selling products. In the summertime, we have farmers’ markets that are set up outside stores. It creates a great sense of what we’re all about. We’re all about supporting local, organic farms.”

“It’s a great time to be C’est La Vie right now, because we had the opportunity to restructure so we’re getting everything we wanted for the business,” says Ramos. “It’s very exciting. Everyone is implicated on one level or another, so it’s really fun right now.”

The owners are also discussing an e-commerce site, though they are focusing on their brick-and-mortar stores first and foremost. For now, they have recently acquired their own web address, and are in the process of building a website.

 

The business aspect

 

The store’s merchandise is about the same at each location, stocking shelves with 40 per cent grocery items, 15 per cent fresh produce, 15 per cent prepared foods including the juice and smoothie bar, five per cent bulk items and the remaining 25 per cent is taken up by vitamins, supplements and health and beauty aids.

Frino says the grocery department has seen the largest growth since C’est La Vie opened. The prepared foods department has also seen growing sales, especially at the avenue du Parc location.

Product regulations can pose a problem for customers that do research prior to looking for products in person, as they may be looking for products that do not have an NPN number, or products that contain higher dosages than are permitted in Canadian products. For the most part, the problem that affects the store is bilingual labeling, which they are very careful about. Ramos has a method in place if this happens.

“We educate them. We tell them what is available, what they can take it for, and we take it from there,” she says. “We’re very fortunate because a lot of our companies were already geared up. This goes back a long time, and all the companies we’re on board with already have NPN numbers so it didn’t really affect us. We were ready for this.”

C’est La Vie uses a POS system to track when items come in and when they’re purchased. However, the chain is upgrading their systems at the moment to integrate all three stores. The new purchase order system from SMS Solutions that will give the owners an easy way to make and send out purchase orders. It also has an accounting feature, a loyalty program option and a time management feature where all employees clock in and out.

When hiring store associates, Frino says it is ideal if they have an understanding of the health industry or live the lifestyle. “Naturally, they’re going to be more in tune to what we’re talking about or doing. We’ve also been very lucky by hiring people that didn’t necessarily have an understanding of the industry, yet they turned out to be amazing at what they did and we’re thrilled to have them,” he says. “Hiring people that are passionate about what they do and in the business, we look for that first and foremost. If we can find that, whether they come from other stores or worked at an organic farm, that helps in our hiring decision.”

The owners have recently put the finishing touches on an operations manual for training purposes and are implementing those procedures with the staff. Everyone on staff is also invited to product training from beauty and supplement companies.

“It’s actually encouraged, even for the food department. All of our sales representatives have access to the store staff, and everyone that wants to learn is welcome,” says Ramos. “With products, the more they know about it, the better informed the clients are. It’s a win-win for everybody.”

Ramos says sales slow down during construction weekends, two weeks in July where Quebecers take vacations, as well as after the Christmas holidays, though that isn’t an issue with the store’s Grab and Go section.

“For people who aren’t necessarily buying a certain category, we’ve got quiches and fresh juices so there’s always activity in the store. When something slows down, we’re selling other things,” she says.

In order to create community, the owners ensure staff goes out of their way to help clients. “We know most of our clients in the neighbourhood by name; we know where they live,” says Ramos. “We take part in community events. Whether it’s a barbeque we do in the summer, or working with a gym next door, promoting healthy juices after a workout. Whatever we can promote locally, we do.”

The store also contributes to schools by providing gift bags and gift certificates for fundraising auctions. However, what the owners believe sets them apart from other stores in the community is the prepared foods they offer.

“It’s the kitchen that sets us apart from everyone else. A lot of clients you’ll see in the winter consuming a soup while doing their grocery shopping,” says Ramos. “It’s our prepared foods counter that really sets us apart.”

The owners have faced some challenges over the years, namely staffing. “Making sure you have the right staffing is always important,” says Frino. “Financial, definitely, is always a challenge. It’s a matter of finding balance with everything.”

“We’re smaller format. How do you offer your client one stop if you don’t have the shelf space to offer everything they could want? We’ve adjusted to that over the years,” adds Ramos.

It’s not all bittersweet, however. Ramos says her favourite part of the business is her relationship with her clients and team. “The love of people and this industry. The fact that we all share this passion makes it worthwhile to me and it’s always been that way,” she says.

“There’s not just one thing,” adds Frino. “I love the business; I love what I do. I love what we’re building.”

It’s that positive attitude and love of the business that makes C’est La Vie a modern community-oriented store for the ages, thanks to the visionaries behind its success.

 

 

At a Glance:

 

Name: C’est La Vie

Owners: Albertina Ramos and Salvatore Frino

Location: Montreal, Que.

Store Size: From 1,600 to 3,800 sq. ft.

Employees: 24

 

Top Selling Products:

 

Food: Fresh produce, Pain des Fleurs Gluten Free Crisp Bread, Rise Kombucha
Vitamins/Supplements: New Roots Spirulina, New Chapter Whole Mega, New Chapter Men’s and Women’s Multi, Garden of Life Protein

 

Personal Care: myChelle Facial Care, Oneka Hair Care

 

Miscellaneous: Centiva cleaning products, OH bulk cleaning products

 

Deer Horn Capital Confirms Location for Flagship Bohdi Natural Market

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Shopping trends reflect a shift to bargain shopping

The new brand, Bodhi Natural Market, is moving quickly toward opening its first store, which will be located in Maple Ridge, British Columbia.  Bodhi Natural Market will carry products in a full range of grocery categories, including produce, dairy, meat, supplements and deli.  All products will be certified natural or organic.

The store will also feature a coffee bar and take-out corners so that shoppers can drop in for light meals or spend time relaxing before or after shopping.

Bodhi Natural Market’s flagship Maple Ridge location will be the anchor tenant in a mall with abundant parking and complementary businesses both inside the complex and nearby.  A lease agreement covering the space was signed in February and interior construction is under way.  The store’s grand opening is expected to take place in late May or early June.

Bodhi Natural Market is headed by Lance Sutherland, whose 25 year career includes senior roles with several conventional and natural/organic grocery chains.  The Bodhi Natural Market team as a whole has over 100 years of collective experience in all aspects of grocery development and management, including marketing, financial oversight, supply chain management and customer service.

“We want Bodhi Natural Market to be second to none in the eyes of local shoppers interested in healthy food choices,” said Deer Horn President and CEO Tyrone Docherty.  “Our team knows this commitment begins well before our first store even opens and is already working closely with suppliers and the local community to ensure we set the right tone from day one.”

Mike & Mike’s Organics Named One of Canada’s Best Managed Companies

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Mike & Mike's Organics Named One of Canada's Best Managed Companies

Mike & Mike’s Organics joined the ranks of top businesses in the country when it was named one of Canada’s Best Managed Companies of 2014. Sponsored by Deloitte, CIBC, National Post, Queen’s School of Business and MacKay CEO Forums, the Best Managed Award recognizes Canadian-owned and -managed companies with revenues of over $10 million in sustained growth, financial performance, management practices and the efforts of the entire organization.

“This is an incredible accomplishment for us. It’s uncommon that a company our size wins this award,” says Mike Fronte, president of Mike & Mike’s. “We are very passionate about what we do. We make sure our growers are looked after, which enables us to have the best product for our customers. It’s the all-around commitment to the industry that helps us grow our business.”

Mike & Mike’s is Ontario’s only exclusively certified-organic distributor of fresh fruits and vegetables. Founded in 2004, Mike & Mike’s has positioned itself as leader in the organic food market by focusing on quality, selection, reliability and personalized service. Its direct-to-store delivery of more than 300 kinds of fresh, certified-organic fruits and vegetables, including its own snack line of dried fruits, nuts and seeds, is available in chains, including Loblaws, Longos, Metro and Whole Foods, as well as most health and natural food stores in Ontario. The result has been a growth in business of 20 per cent in each of the last five years, leading to the expansion of its Woodbridge, Ont. facility, which doubled in size to 43,000 square feet in 2014.

Eastgate Biotech Launches North of the Border with Canadian Distributor Preferred Nutrition

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Eastgate Biotech Launches North of the Border with Canadian Distributor Preferred Nutrition

Preferred Nutrition will be the Canadian distributor of E-drops – EastGate Biotech’s natural and herbal alternative that helps the body to rid of urinary tract infections painlessly and effectively without side effects of antibiotics or synthetic drugs.

Eastgate Biotech is an emerging pharmaceutical company from Salt Lake City, aimed at utilizing drug delivery innovations in the development of improved novel formulations and alternative dosage forms of existing biologically active molecules. More information on EastGate’s natural product line can be found at www.nano-essentials.com

It recently engaged Preferred Nutrition Inc. (www.pno.ca) – a Canadian premier distribution company founded in 2002 that primarily distributes to approximately 1,200 health food stores across Canada and represents 5 top product lines for a total of 78 products in the vitamin and supplement category.

“We look forward to having our products on the shelves of health food stores across Canada, ” states EastGate’s CEO, Anna Gluskin.

 

 

Establishing Global Partnerships to Expand Distribution Channels

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Establishing Global Partnerships to Expand Distribution Channels

 Herborium®Group, Inc., a Botanical Therapeutics® Company and provider of unique, all botanical medicines (Botanical Therapeutics®), will deploy new partnerships to develop a product line extension and tap into new profitable markets for its unique, all herbal acne treatment, AcnEase®.

The new topical, all natural product is to be introduced in 2015 and is a highly desirable addition to AcnEase Skin Management System® In addition to meeting customers demand this new, complementary acne product will support a further exponential growth of the brand and add to the company’s bottom line as it benefits from AcnEase® brand recognition, customer base and existing sales infrastructure.

AcnEase ®, claims a clinically validated efficacy and unprecedented safety profile, with up to 96% success rate in treating acne. The product  targets over 750 million acne sufferers in the United States and Canada, over 80 million people with acne  in Europe, and now 200 million acne sufferers in Asia.

Average age of acne sufferers in the US has increased from 21.5 to 26.5 in the last decade.

AcnEase® is an all-natural and highly effective and safe treatment for adult and teen acne that is gaining enthusiastic reviews from users.  The total global market for acne treatment is over $4 billion, with the spending on skin conditions growing at a rate of over 11 percent per year.  Due to environmental conditions and social demand, more and more individuals seek specialty treatment of acne and related skin conditions.

“We are very excited about the prospect of our product line extension and, new global and domestic partners joining us in building the AcnEase® brand throughout the world.  This is a large step forwards  to continue the exponential growth of Herborium as a global company, to provide valuable Botanical Therapeutics®to an increasing number of consumers and distributors, and to increase shareholders value” commented Dr. Agnes P. Olszewski, CEO and Chairwoman of Herborium.

 

 

HealthSource

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Leaders in the Community – providing results for patients

In this Clinic Profile, IHP is pleased to present the HealthSource Integrative Medical Centre. HealthSource is run by Dr. Michael Reid, ND and Dr. Som Thammasouk, ND. This husband and wife couple met in Naturopathic College. They started practicing together in a rehabilitation clinic, but their practices outgrew the space. They eventually purchased and moved their practices into a custom-built house that was designed and originally built specifically to be a medical office. They formed HealthSource Integrative Medical Centre at the end of 2011. Dr. Reid also works part-time with Dr. Anello, MD, who is also featured in this issue of IHP. HealthSource now runs the second largest IV practice (Dr. Anello having the largest) in the Waterloo region and service approximately 100 patient visits a week. This clinic positions itself in the market as an integrative medical centre, where they bridge the gap between conventional and naturopathic medicine. The end result is that the community recognizes them as a location where both integrative care and naturopathic care can be obtained. They receive many referrals from other practitioners in the Kitchener- Waterloo area, including complex and difficult cases.

Screen Shot 2014-06-28 at 4.59.55 PMThe full clinic team consists of the two Naturopathic Doctors, a Registered Practical Nurse, a Registered Massage Therapist, a Registered Holistic Nutritionist, and an Office Manager. The 2000 square foot clinic consists of six treatment rooms, one IV room, a preparatory IV/ lab room. The clinic provides on-site parking for patients. As a highly advanced centre, HealthSource utilizes numerous assessment tools. They do all blood draws directly in the clinic and local labs pick-up the samples. They developed their own panel of bloodwork with a laboratory and were able to offer it at a reduced rate that consists of nutrients, hormones, inflammatory markers and chemistry. Other common tests run at the centre include tumour markers, food intolerances, candida yeast testing, plasma amino acids, saliva hormones, and heavy metal testing. They utilize GDL, Doctor’s Data, Great Plains Lab, Rocky Mountain Analytical, Spectracell, Igenex, and Lifelabs. Their more advanced in-office testing includes arterial stiffness assessment to gage the risk of heart disease, live blood cell analysis/dark field microscopy, and bio-impedence analysis to assess body composition. Dr. Reid believes many patients see great results because of the clinical application of the functional markers. Their patients don’t simply focus on a reference range. For this reason, almost every patient will get some degree of lab work immediately at the start of their care.

Screen Shot 2014-06-28 at 5.00.11 PMThe clinic carries multiple reputable brands including NFH, Restorative Formulations, Douglas Labs, Pure Encapsulations, Thorne, MediHerb, AOR, Researched Nutritionals. The clinic also carries a tincture dispensary where the doctors perform custom-compounding for patients and a small homeopathic dispensary. Dr. Reid and Dr. Thammasouk’s practices cover a broad range of health concerns and is open to all people. They are committed to continuing education and pride themselves on being at the forefront of medicine. Dr. Reid has an oncology-focused practice and he receives referrals from other practitioners including Naturopathic Doctors, Pharmacists, Family Doctors and most recently a local Oncologist. He spends a good deal of his time focusing on difficult cases. As a result, the clinic has become known for its cancer program, but also its focus on treating auto-immune conditions, MS, ALS, cardiac conditions, chronic fatigue, and pain management. Highly advanced IV therapy is successfully used for numerous patient cases and is especially useful in helping many patients at once.When asked about his approach to treatment, Dr. Reid says “Using my knowledge-base, I always prescribe what is best for the individual patient. Patients are sometimes surprised that I will sometimes suggest the pharmaceutical approach, simply because I believe that might be the best approach.”

Screen Shot 2014-06-28 at 5.00.30 PM

Dr. Thammasouk’s practice focuses on weight loss, pediatrics, female hormonal concerns, endocrinology, and dermatology. She has extensive experience with corporate wellness for companies including Canada Post and General Mills, usually by developing 12-month programs. She also creates customized health assessments and speaks at lunch and learns. She plans on bringing her corporate experiences to the Waterloo Region with local companies. She had a baby about a year ago and has been working hard maintaining a busy practice and home life.

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Dr. Reid and Dr. Thammasouk give their time to providing education to organizations within their community, including the public libraries, and special groups for Fibromyalgia, CFS/ME, arthritis, stroke recovery, Early Years Children’s Centres, YMCA, osteoporosis, and Alzheimer’s. They are passionate about educating people about different ways to approach healthcare, in particular about sharing the message of Naturopathic Medicine. This attitude has fueled and motivated the doctors. Since they started working, they’ve worked extremely hard to achieve what they’ve built. They were initially working 80-100 hours a week and now the majority of their practice is based on referrals. They believe that hard work and perseverance pays off and they want to be shining examples for other aspiring practitioners.

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One of the largest challenges faced by HealthSource is that in the Waterloo region, since it is outside the urban centre of Toronto, there is still a lack of understanding from other professionals and the public about everything Naturopathic Doctors can actually do and offer their patients. In an effort to bridge this gap, the clinic works closely with medical doctors in a collaborative manner. This allows the clinic to expand its scope of practice because it can provide more for its patients.When they initially began practicing, the doctors were practicing out of another clinic. They found that when they took the steps to go out on their own, their practices immediately grew substantially. In particular, they found the expanded space and more tailored support staff helped. They found that being able to customize the space also allowed them to create an environment that was accurately representing Naturopathic Medicine. The doctor’s next steps are to continue growing their clinic and to add practitioners to the team that will only enhance the health experience of the patients.

When asked about the challenges of working with your spouse, Dr. Reid and Dr. Thammasouk both humourously suggest that it is especially difficult when the other partner is “strongly opinionated”. Their advice to others is to separate which role they are in, such as “spouse” versus “business” versus “doctor”. They also try to shut off work when they get home and focus on family. IHP wishes this incredible team much success in their future.

Dr. Michael Reid, ND Dr. Som Thammasouk, ND Joyce Stanic, RPN, RNCP Ruth Thompson, RNCP, RHN, MSW Michael Stock, RMT Karen Keelan, Office Manager 

HealthSource Integrative Medical Centre 

227 Dumfries Ave

Kitchener, Ontario N2H 2E6

tel: 519.954.7950

fax: 519.954.7951

email: info@HealthSourceIMC.com

web: www.HealthSourceIMC.com

Strengthening Bridges – InsideOut Health Solutions Update

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Naturopathic doctor and owner of InsideOut Health Solutions, Holly Fennell continues to ensure that her clinic provides outstanding patient care by maintaining solid relationships with other health care professionals.
By Irina Lytchak

IHP had the pleasure of meeting Dr. Fennell back when we featured InsideOut Health Solutions in our September 2012 Clinic Profile.
At the time, Dr. Fennell’s facility followed a model of sharing individually tailored treatment plans of action with both patients and their health care teams. It was the model that set InsideOut Health Solutions apart from other similar clinics and that continues to do so to this day.
“I think, very thankfully, that many of our clinic operations are the same. I maintain the same mandates I had in 2012 but I am always searching for ways to improve and provide the best possible patient care,” says Dr. Fennell. “We have always made it our job to know each member of our patients’ medical team. This makes receiving naturopathic care much easier for our patients. I think that’s what sets us apart.”

InsideOut team developments
When we first spoke with Dr. Fennell, her clinic had managed to expand from 500 to 1,600 square feet to occupy the entire fourth floor of the Toronto building InsideOut Health Solutions first opened its doors in.
“We already occupied the entire floor of the building so there hasn’t been the possibility to expand,” says Dr. Fennell. Nonetheless, the clinic still underwent some interior changes after the retirement of Douglas Aboud, RMT, and the departure of Heather Atkinson, RMT.
The extra space allowed for the clinic’s naturopathic department to expand as well as to welcome a new associate responsible for running the intravenous division.

“Hiring an associate has allowed the practice to grow and we can service more patients while providing a better standard of care,” says Dr. Fennell. “We’re able to better accommodate people’s schedules and it’s fantastic to collaborate on cases with another naturopathic doctor.”

The InsideOut Health Solutions team has largely remained the same except for Andrea Purdy, RMT, moving into a full-time role. The clinic has also gained a new office manager, Helen Nina, who had previously worked for 15 years as a registered nurse as well as operated her own business.

“We’ve been very fortunate in that my practice has continued growing,” says Dr. Fennell. “With this growth, I wanted an experienced office manager and her medical background was an additional bonus. She has really been the perfect match and just brought such a new level of organization, patient service and customer care to our clinic.”

A winning partnership
Over the past few years, Dr. Fennell says that the most exciting and noteworthy development in her practice has been her collaboration with Dr. Mansoor Mohammed, BSc (Hons Mol Gen), PhD, to introduce world class genetic testing to InsideOut Health Solutions.
“Dr. Mohammed is one of the most accomplished clinical genomicists in the industry,” she says. “He is credited with inventing and developing genomic technologies that revolutionized the diagnostic stratification of cancers.”
Working directly with Dr. Mohammed has allowed Dr. Fennell to understand how every patient’s innate genomic profile, not just their cancer genome profile, can be used to understand functionally relevant aspects of cellular functions. With that in mind, these two health professionals have been able to use this information to ensure patients’ optimal health and wellness.

“Having this relationship with Dr. Mohammed has been a huge advancement in the practice and in patient care,” says Dr. Fennell. “He’s a world-renowned geneticist and I feel very lucky that we can offer that to our patients. It’s just really allowed the oncology side of our practice to flourish and we’re able to be very specific with our patients’ programs.”

Embarking on a business venture
Back in 2012, Dr. Fennell also talked to us about her work with renowned plastic surgeon Dr. Trevor Born. Since then, the two have teamed up with Belinda Stronach to develop a pre- and post-operative surgical line of vitamins called Reborn Supplements. Dr. Born’s knowledge when it comes to the latest surgical and non-surgical breakthroughs in cosmetic and reconstructive plastic surgery have helped Dr. Fennell create a product that’s organic in nature and aims to help people before, during and after surgeries and dental procedures.

“I think a lot of people are hesitant to take nutraceuticals pre-operatively because they don’t know what’s safe to take,” explains Dr. Fennell. “We’ve formed a really great medical advisory panel that allowed me to formulate this line and all of the products have been granted NHP numbers.”

Finding harmony in clinic operations

To help maintain her flourishing clinic and strengthen relationships with other industry professionals, Dr. Fennell has also developed an information package that is sent out to all new patients’ oncologists, informing them of the proposed treatment plan for each patient.

“As mainstream as naturopathic medicine is becoming, it’s still not as widely accepted by the oncologists and that can create a lot of anxiety for our patients,” she explains. “In working with oncology patients, I wanted to ease this process. The information package was designed with the intent of answering questions and sharing proposed protocols with patients.”

Dr. Fennell continues to take pride in how her team goes out of its way to develop relationships with the oncologists working at various hospitals across the city.

“Rather than waiting for them to ask, we’re offering that information in advance,” she says. “Whether we get an answer or not, it doesn’t matter. We just want to take that extra step of informing them and take that stress away from the patient.”

And it’s that extra step that continues to set Dr. Fennell and her fantastic team at InsideOut Health Solutions apart from the rest.

InsideOut Health Solutions Team:
Holly Fennell, BA (Hon), ND: Naturopathic Doctor and Clinic Owner
Erin Truscott, B.Sc (Hon), ND: Naturopathic Doctor
Lori Dennis, MA: Psychotherapist
Nelson Parker, MSW, RSW: Social Worker
Andrea Purdy, RMT: Registered Massage Therapist
Helen Nina: Office Manager

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