Food In Canada

WELLNESS REPORT: Acting Naturally

By Natalie Cajic   

Business Operations Exporting & Importing Food Trends Health & Wellness Ingredients & Additives health NHPs

If the natural and organics industry is seeing any erosion, it may be from new companies struggling to get a foothold as consumers shy away from the unknown. In an economic downturn, shoppers will support trusted brands but their interest in new brands, peripheral products and new categories quickly fades, writes Doug Muldoon in the April issue of Canadian Natural Health Retailer magazine. Muldoon is the founder of the Retail Marketing Group, a consultancy focused on assisting natural health retailers, and author of Effective Marketing for Natural Health Food Stores. “Consumers take more time searching for what they want and they are apt to negotiate harder at the point of sale,” Muldoon writes. “They are more willing to postpone purchases or buy less.”

But store shelves need to be stocked all the same and the natural and organics industry’s largest event in Western Canada, CHFA Expo West, showed little impact of retailers scaling back. Produced by the Canadian Health Food Association (CHFA), Expo West took place in Vancouver in early April and had an attendance that was in line with 2008 visitor figures. In fact, Judy Sharpe, the CHFA’s director of Trade Shows & Conferences, says the breakout numbers show an increase in the number of retailers and health practitioners attending the event and meeting with exhibitors. Some exhibitors even reported record sales. For instance, Charles Chang of Sequel Naturals says the company had its highest sales of any show to date at Expo West. The Port Coquitlam, B.C. company manufactures and distributes a number of award-winning whole-food brands, including Vega.

So why are health food and wellness product suppliers not taking an economic hit? According to NDMAC, an association representing the $4.3 billion consumer health products industry, Canadians are more likely than those of past generations to think of themselves as partners in a collaborative health care system than as recipients of care provided by “experts” in a hierarchical system.

It’s a message that the CHFA has been actively promoting to government and Canadians at large. In May, the national trade association staged its first-ever “Take Action – Act Natural” day at Queen’s Park as a way to increase awareness and knowledge around natural and organic products and to bring member concerns to the forefront such as the impact of the proposed Harmonized Sales Tax (HST). “It’s vital for our MPPs to understand how important our industry is to the health of the economy and the wellness of Ontarians,” says CHFA president and CEO Penelope Marrett.

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