NIU’s Retailer forum: ‘Innovation is much more innovative now’

Innovation and the NY AG’s probe were just two topics covered by Jon Fiume, Chief Operating Officer, Mustard Seed Market & Café; Alan Lewis, Director of Special Projects, Natural Grocers by Vitamin Cottage; and Daniel Fabricant, PhD, Executive Director and CEO, Natural Products Association during an hour long discussion.

The NutraIngredients-USA View from the Aisles Forum: The retailers' perspective​​ aired May 6, and is available for free on-demand by clicking HERE​​.

Innovation​

During a recent earnings call, Tony Truesdale, CEO of Vitamin Shoppe, said that he was seeing much less innovation in the supplement category compared to about 6 years ago, but did the panelists agree?

“For specialty retail there might be a lack of innovation,” ​said Dr Fabricant. “For Vitamin Shoppe and GNC and some internet retailers, their set is mostly athletic, workout population, and I would say there has probably been a decline there. But for other categories I would say it’s the opposite. We’re seeing incredible growth throughout the probiotic category and I think you’re seeing growth with multivitamins even. There’s also growth in organic. You’re seeing growth in food-based nutrition products. I think there is innovation there, and I think it’s just shifted. ​

“I also think you are seeing innovation in things like vegetable proteins. I think the innovation is there, but it’s shifted. There may not be the old, ‘hey, we’ve got a new compound that will give you a better workout’, but I think it’s more lifestyle based.” ​

Alan Lewis said: “What I see in innovation is revamping the supply chain, going all the way up to seeds, growers, the whole chain of custody, and making sure that the ingredient is the most potent, most efficacious, most clean and most safe versions. While you’re investing all you time and effort in that you may not come up with some razzle-dazzle new dietary supplement product, but you are building your foundations where you will come out of it a much stronger company with much better products. ​

“I don’t think innovation is being limited. I think that innovation is much more innovative now. We’re seeing products that are very targeted for specific conditions that may provide a full spectrum of support. A good example may be eye care. It used to be that you’d just put lutein and/or vitamin A in a bottle, but now you have blended formulations that include underlying support ingredients like fish oil that are helping your body address all aspects of eye health support. ​

NY AG​

Jon Fiume called the NY AG investigation a ‘wake-up for retailers’: “Being in Ohio, it didn’t have a huge impact on us,” ​ he said, “but I also believe that from a retailer perspective it definitely reminded us that if retailers out there are not asking the right questions then they need to begin doing so. They have to absolutely need to be involved in their industry and be taking advantage of the trade associations. It’s a wake-up call for the retailers to say, ‘are we doing our homework, and asking the right questions and using the resources around us’.”​

Alan Lewis added: “The NY AG investigation, however that turns out, is part of a 21 year-plus conversation that the industry is always having, and by that I mean making sure the ingredient suppliers and manufacturers are on the up and up, that organic is organic, that supply chain custody and QA certificates are in place. There are no surprises here. ​

“We have to be careful to properly call to account ingredient suppliers and differentiate our suppliers and our contract manufacturers from those whom we don’t do business with. We don’t want to denigrate the business or paint dietary supplements in a negative way. Internally, this is a very robust conversation, and always has been a robust conversation; how do you get these clean ingredients with the proper potency into the bottles on the shelf. ​

“These things come and go on a regular basis. They come in waves. Our end result is a stronger customer base who know that these ad hoc distractions aren’t really a part of our business because of who we use, and what we sell, and the science we depend on.”​

Dan Fabricant said: “There is some calm now but there is concern for the future. I think it’s reasonable to believe that there will be another wave on this. How do we refocus and re-double our efforts politically? Other industries get these kind of inquiries frequently so are we adapted to be able to fight back appropriately. ​

“This is a purely political issue, it’s not about science. Back in February, the AG called this a ‘public health catastrophe’ meanwhile he only tested one lot of products from four retailers, and when he had an agreement from one of the retailers he allowed those exact same products back on the shelf. If there really was any concern about public health would that have been allowed to happen? Probably not.”​

To listen to the full discussion, please click HERE​​.

The event was supported by the following leading nutritional ingredient suppliers (alphabetically):​

Soft Gel Technologies, Inc. (SGTI):​ A full-service contract manufacturer, specializing in providing marketers with premium quality dietary supplements in a soft gelatin capsule delivery system. SGTI is dedicated to the production and marketing of branded products and turnkey custom formulations exclusively to the nutraceutical industry including Sytrinol softgels, which contain a patented blend of polymethoxylated flavones and tocotrienols.

Sabinsa: ​A manufacturer, supplier and marketer of herbal extracts, cosmeceuticals, minerals, dietary supplements and specialty fine chemicals for the nutritional, cosmetic, pharmaceutical and food industries.

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