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Purav Patel and Aarti Garehgrat recently ventured into the frozen-breakfast section of a local H-E-B. They waited for a bit, then watched as a woman picked up a package of Bagel Dots and put it in her cart.
"We wanted to run up to her and give her a hug," Patel said, savoring the memory of a customer buying their bite-size frozen bagel balls filled with cream cheese.
That moment might not have happened had the married couple not been selected to participate last year in H-E-B Primo Picks Quest for Texas Best, a competition aimed at helping fledgling businesses and emerging entrepreneurs get wider distribution for their food products by becoming H-E-B vendors. Last year Patel and Garehgrat were among 25 finalists; they wound up taking home first place and $20,000 in prize money. H-E-B brought Bagel Dots to market in more than 200 stores in April. Since its debut at H-E-B, Bagel Dots has generated more than $100,000 in sales.
"It was a game changer for us," Garehgrat said. "It took us from a small business into the biggest grocery chain in Texas."
The six Houston-area businesses selected for the 2017 H-E-B Primo Picks Quest for Texas Best competition include:
War Pig BBQ: A sweet, tangy barbecue sauce called F.U.B.A.R. (For Use on Butts and Ribs) was created by U.S. Army veterans. Presented by Dennis Butterworth of Houston.
Chilequiles Foods: A small-batch chipotle sauce for Mexican food preparation. Presented by Romina Cervantes and Octavio Orozco of Houston.
Just Made Foods: Healthy juices in a variety of flavors. Presented by Norka and Walter Nimocks of the Woodlands.
Lone Star Bee Co.: Small-batch infused Texas honey. Presented by Nicki Praiswater and Mark Crippen of Houston.
D'Gusto: Corn-based Colombian-style empanadas with a variety of fillings. Presented by Oscar Velasquez an Alicia Pineda of Brookshire.
Cheezinos: A ready-to-bake, Brazilian-style cheese roll that can be served for breakfast, as a snack, or as party bites. Presented by Anh Kajita of Sugar Land.
This week H-E-B will conduct its fourth annual Quest for Texas Best competition, with 25 new finalists convening in Austin for the two-day event to see if their culinary fortunes will change. Six Houston-area finalists are making presentations to judges who will decide on a grand-prize winner ($25,000), first place ($20,000), second place ($15,000) and third place ($10,000). Each winner will be labeled an H-E-B Primo Picks product on store shelves.
This year more than 600 business from more than 200 Texas towns and cities applied to compete with all manner of sauces, salsas, nuts, spices, desserts, spreads and mixes. The 25 selected each were paired with H-E-B mentors to help with bringing their product to market and sharpen their presentation for the judges.
There's a lot at stake for these newbie businesses. The competition is an opportunity to take a product from obscurity to the shelves of Texas' favorite supermarket. That happened to Western Grillers, a company that makes Armadillo Eggs (marinated chicken stuffed in a jalapeño pepper and wrapped in bacon). Even though the company did not get to the winners circle, it was still picked up by H-E-B and now is a best-seller.
"It's amazing to see how Texans have embraced that product," said Jody Hall, director of sourcing for H-E-B.
Hall added that the competition is a way for the company to honor its roots and pay back store loyalty. "What we're doing is continuing what Florence Butt started in 1905 buying local food products from Texans for Texans," he said. "When there are great products, innovations and it's local, we want to help bring those to the marketplace."
To date, the competition has resulted in more than 200 products on H-E-B shelves throughout Texas. Even established businesses such as Spanish desserts company Reina Meals, which has a factory in Houston, benefit from mentorship in the competition. "We worked together, and they helped us develop flavor. It was very valuable support," said Imanol Pagaza, COO of Reina, a finalist last year.
For Bagel Dots, the competition not only brought cash into the company - the owners bought new equipment with their winnings - but also a new focus on strategy and a path to business expansion, Patel and Garehgrat said. In addition to working with H-E-B, Bagel Dots is focusing on getting product into small cafes and coffee shops.


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The EU’s deadline for all packaging to incorporate at least 30% recycled material is fast approaching, while the industry finds itself in the middle of what some are describing as a “post-consumer recycled materials crisis”. Jack Bigio, Co-Founder and Co-CEO of UBQ Materials, tells us more about how the packaging value chain can overcome these challenges.
Global brands are aiming, over the next three years, to increase recycled content in their packaging. Beyond brand promises, regulation is also moving in this direction. The European Union has mandated that all packaging incorporate 30% recycled material by 2030, while several U.S. states have passed laws requiring certain plastic products to contain more recycled content.
Time is of the essence if manufacturers, retailers and other companies are to reach these goals, but shortages of post-consumer recycled material feedstock, coupled with a global supply chain crisis, have made it potentially unattainable by 2025.
In the midst of a post-consumer recycled (PCR) materials desert, brands will need to address this problem with ingenuity and creativity to find new solutions.
What’s causing supply chain issues?
The demand for recyclable materials has outstripped supply for years due to the recycling system only capturing a mere 18% of plastics and packaging, along with there being too few suppliers. Additionally, the slow and costly move towards recycling paper, plastics and other materials has bottlenecked supply.
All of this has worsened over the past two-plus years. With pandemic-induced lockdowns, a combination of manufacturers shutting their doors, and unprecedented labor shortages, the global supply chain has experienced massive disruption since H1 2020. As a result, output of recyclable resins, plastics, and other materials either slowed drastically or came to a screeching halt.
Additional variables have since exacerbated an already complicated situation. Cargo ships are floating aimlessly in the water amidst an ocean-wide traffic jam, waiting to dock at ports and unload goods that have been on backorder for months or even years. A lack of port employees, crane operators and truck drivers is crippling efforts to rectify the situation.
Moreover, the ongoing war in Ukraine has slowed down the recyclable materials market considerably and has also caused increases in the prices of oil and construction materials. This, coupled with rising inflation, is adding to the costs and reducing the availability of PCR materials.
Why the shift to PCR materials is necessary
Today, most packing is derived from fossil fuels, and according to researchers, “when exploited for short-term storage packaging, these materials represent a serious environmental concern.” A separate study pointed out that “economically developed countries… are responsible for the biggest share of plastic packaging waste and have implemented the most advanced and ambiguous legislation and regulation for plastic packaging waste prevention and recycling.”
With this significant environmental threat caused by packaging pollution, manufacturers and their customers are beginning to appreciate the value of environmentally friendly materials that incorporate greater volumes of recycled materials.
Creating a materials oasis
There are companies working to find creative solutions for the PCR materials shortage. For example, shipping companies are moving towards a minimalist packaging approach, using fewer packaging materials to house shipped products.
Brands are also using a minimalist approach, stripping back flashy or distracting designs in favor of simplicity to ensure that less material is required for the packaging of consumer goods.
Paper-based packaging has also become a more sustainable answer as it can be recycled and is highly recovered. Other ideas taking the consumer market by storm include shoes made from discarded plastic bottles and scooters made from old fishing nets.
A UK-based company recently started developing roofing material and tiles from used diapers, while in the fashion and furniture industries, companies are turning to Mycelium, a fungus, to manufacture clothing and furniture upholstery.
Household waste-based materials offer another PCR feedstock option. Household waste is abundant in supply, and by converting it into usable materials for manufacturing products and packaging materials, companies can both achieve their PCR requirements, and divert waste from landfills, effectively mitigating the methane emissions which would otherwise form as a result of decomposing organic materials typical of household waste.
There are endless possibilities, but we need to turn towards creative solutions and pivot away from the chase for increasingly costly PCR materials that are in scarce supply and turn to more abundantly available options.
Closing the PCR materials gap
There is no end in sight to the global supply chain crisis, but the solution to reach the 2025 packaging goal is at our fingertips.
To adequately address the PCR materials desert, brands and manufacturers can begin taking advantage of novel PCR feedstock that is readily available. Regulatory and governmental bodies can also embrace the value of new solutions and should push for raw material substitutes that fulfill two main criteria: raw materials must be both accessible and sustainable. Such options can play a key role in closing the ever-growing gap plaguing the global supply and demand chain.

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MDH Spices, a leading spice manufacturer, has announced its intention to establish a new manufacturing facility in Ujjain, with an investment of INR 150 crore. Additionally, the company aims to invest INR 2,000 crore in expanding its operations across India in the forthcoming years.
The company has acquired a 16-acre plot in Ujjain.
The company has already allocated INR 5 crore towards its Indore plant investment.
Continue Exploring: KPG Spices enlists Kareena Kapoor Khan as brand ambassador
Rajeev Gulati, CMD, MDH Spices, said, “We have taken 16 acre in Ujjain and intend to invest almost INR 150 crore in the coming 2 years. This will be our third largest unit after Faridabad and Nagaur in Rajastha. MP happens to be the center of India and this makes procurement and processing of spices easy. Here we will be producing more because logistically well placed and sending it across MP is easy.”
Gulati mentioned that the increasing demand for Indian spices is creating opportunities for export expansion. He further stated that he is considering the establishment of an export-oriented unit in the state.
“Within India also we are improving and innovating. We are bringing in new blends suitable for different markets,” said Gulati.


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Synthes Inc. (VTX:SYST) wants a Delaware judge to order Globus Medical Inc. to destroy any intervertebral implants found to infringe a trio of the Swiss medical device giant’s patents.
Synthes, which is the subject of a $21.3 billion takeover bid by Johnson & Johnson (NYSE:JNJ), filed the lawsuit in the U.S. District Court for Delaware, seeking judgments of willful infringement, injunctions against further infringement, triple damages, interest, legal costs and an order "directing Globus to recall from distribution and destroy its entire stock of infringing products within the United States," according to court documents.
It’s not the first time a major medical device player has gone after Globus on patent infringement grounds. Earlier this year, Medtronic Inc. (NYSE:MDT) won a partial victory in a federal appeals court in its pursuit of Globus over spinal stabilization technology. That case was returned to a lower court for reconsideration of a $2.7 million judgment against Globus.
Globus has landed several 510(k) clearances from the Food & Drug Administration for various spinal fixation devices since December 2010. The company bills itself as "the world’s largest privately held spinal company," according to its website.
Johnson & Johnson was ranked #2 on the MassDevice Big 100 list of the world’s largest medical device companies. Medtronic ranked fifth on the list.


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Further blurring the distinction between craft beer and mass-produced suds, Anheuser-Busch InBev (BUD -1.49%) announced the other day it was acquiring for an undisclosed amount Blue Point Brewing Co., a 15-year-old craft brewer mainly found on the East Coast that will join a growing portfolio of craft breweries the beer giant is amassing.
Among the craft labels the King of Beers already owns are Shock Top, Goose Island, Green Valley Brewing, and the output from its Project 12, the new craft beer-style recipes featuring the yeast strain Adolphus Busch first used in 1876. The first one to debut was last year's Budweiser Black Crown, which was unveiled at the Super Bowl.
Founded in 1999, Blue Point brewed up only 60,000 barrels last year, half of which were its Toasted Lager, but other labels include Hoptical Illusion and Toxic Sludge. A-B understands that it's the craft beer segment that continues to grow while the broad, mass-produced beers continue to decline.
According to the Brewers Association, craft beer sales grew to $12 billion in 2012, a 15% increase by volume and 17% by dollars over the year before, accounting for a 6.5% market share by volume but 10.2% by dollars. At the same time, total U.S. beer sales were up less than 1%. So if you're a smart brewer you're going to go where the action is, and that's craft beer -- and that's just where Anheuser-Busch is directing a lot of its attention these days.
Yet the presence in the craft beer market of mass brewers like A-B and Molson Coors, which brews the "crafty" Blue Moon beer, has watered down the meaning the trade group has assigned. The Brewers Association says to be considered a craft beer the brewer not only must produce no more than 6 million barrels of it annually (a nod to Samuel Adams maker Boston Beer, which eclipsed the organization's prior 2 million barrel limit) and be made with traditional ingredients such as malted barley, but also be "independent," meaning no more than 25% of the company can be controlled by a company that's not a craft brewer.
It's that last requirement that's caused Craft Brew Alliance, the brewer of beers like Kona, Red Hook, and Widmer Brothers, to no longer be considered an official craft brewer since Anheuser-Busch owns a third of the company.
The dilution has caused the Brewers Association in the past to take up pen and rail against the mass brewers' intrusion into their space, but it's a smart move on their part. When a definition fails to adequately delineate in the consumer's mind what it really means, then anything goes, and by and large, the drinking public isn't carrying around in its breast pocket the three-part test of craft beers when ordering a tall frosty mug at the bar. The trade group might feel it's not just a marketing term, but in the minds of those who matter -- the beer drinkers themselves -- a "craft" beer is likely more about taste.
Indeed, look what happened when Consumer Reports tried to wade into the matter and judge the "best" craft beer: It chose Bud's Shock Top. CR acknowledged the Brewers Association criteria, but then discarded them in favor of what the beers themselves said they were. Beer snobs were aghast at the calumny, but it probably represents how most drinkers see so-called craft beers.
Last quarter, A-B reported North American volumes declined 2.6% over the first nine months of 2013, while Boston Beer saw depletions, or sales made by distributors to retailers, soar 23% in the same time frame. Shares of A-B are up 10% over the past year; Boston's are 45% higher. We see why Bud wants in on the market.
The big brewer knows it needs to shore up a flagging business. It bought the Mexican Grupo Modelo business last year and just reacquired South Korea's Oriental Brewery last month. On a global basis, Budweiser sales were up more than 8% last quarter, so with yet another craft brewer to its name, an investor might want to pour a bit of Anheuser-Busch stock into his portfolio.


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China court orders Apple to pay in rights dispute
BEIJING (AP) — A Chinese court has ordered Apple Inc. to pay 1.03 million yuan ($165,000) to eight Chinese writers and two companies who say unlicensed copies of their work were distributed through Apple's online store.
The Beijing No. 2 Intermediate People's Court ruled Thursday that Apple violated the writers' copyrights by allowing applications containing their work to be distributed through its App Store, according to an official who answered the phone at the court and said he was the judge in the case. He refused to give his name, as is common among Chinese officials.
The award was less than the 12 million yuan ($1.9 million) sought by the authors. The case grouped together eight lawsuits filed by them and their publishers.
An Apple spokeswoman, Carolyn Wu, said the company's managers "take copyright infringement complaints very seriously." She declined to say whether the company would appeal.
Unlicensed copying of books, music, software and other products is widespread in China despite repeated government promises to stamp out violations.
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Combined sales of fixed and variable annuities sales fell 8.4% in the third quarter of 2019, to $55.7 billion from $60.8 billion in the second quarter of 2019, according to the Insured Retirement Institute (IRI), which used data reported by Beacon Annuity Solutions and Morningstar, Inc.
Sales were on par with year-ago levels, down 0.4% from total annuity sales of $55.9 billion in the third quarter of 2018. Annuity sales for the first three quarters of 2019 totaled $174.3 billion, up 7.5% from $162.2 billion for the same period in 2018.
Fixed annuity sales highlights
- $30.1 billion – 2019 third quarter fixed annuity sales
- 16% decrease from second quarter sales of $35.8 billion
- 5% lower than 2018 third quarter sales of $31.8 billion
- $101.8 billion – fixed annuity sales in the year-to-date period ending September 30, 2019
- 1% increase over sales of $89.2 billion in the year-to-date period ending September 30, 2019
Variable annuity sales
- $25.6 billion – 2019 third quarter variable annuity sales
- Up 2.4% versus 2019 second quarter sales of $25.0 billion
- 2% higher than 2018 third quarter VA sales of $24.1 billion
- $72.5 billion – variable annuity sales in the first three quarters of 2019
- Down 0.7% from 2018 sales of $73.0 billion in the first three quarters of 2018
According to Beacon Annuity Solutions, fixed annuity sales are off recent highs, but fixed indexed and market value-adjusted annuities are higher than in the same period last year. In other highlights:
- $18.2 billion – fixed indexed annuity sales fell 9% from second quarter 2019 sales of $20.0 billion but rose slightly from 2018 third quarter sales of $18.0 billion
- $4.1 billion – Book value annuity sales fell 43.3% from $7.2 billion in the second quarter of 2019 and were 41.0% lower than 2018 third quarter sales of $7.0 billion
- $5.0 billion – Market value adjusted (MVA) annuity sales were down 3.8% from 2019 second quarter sales of $5.2 billion but up 22% from third quarter 2018 sales of $4.1 billion
- $2.7 billion – Income annuity sales fell 18.1% from second quarter sales of $3.3 billion and were flat compared with third quarter 2018 sales of $2.7 billion
For the entire fixed annuity market, there were approximately $17.4 billion in qualified sales and $12.7 billion in non-qualified sales during the third quarter of 2019.
“The inverted yield curve, along with declining corporate bond yields, continued to apply downward pressure on overall third quarter fixed annuity sales,” said Beacon Annuity Solutions CEO Jeremy Alexander.
“In addition, fixed indexed annuities suffered from higher hedging costs due to market volatility. We anticipate next quarter sales to be flat with an upward bias given the steepening yield curve, as well as rising corporate bond rates and lower market volatility.”
According to Morningstar, variable annuity net assets fell in the third quarter on lower investment returns and negative net asset flows. Highlights included:
- $1.95 trillion – Variable annuity assets fell 0.5% from $1.96 trillion in the second quarter of 2019.
- Allocation funds held $796.8 billion in VA assets, or 40.9% of the total, falling below the $800 million mark.
- Equity funds held $597.0 billion, or 30.7% of total VA assets.
- Fixed accounts held $351.2 billion, or 18.0% of VA assets.
Net asset flows in variable annuities were a negative $21.4 billion in the third quarter, worse than negative $20.4 in the second quarter but better than outflows of $24.8 billion in the first quarter. Within the variable annuity market, there were $16.7 billion in qualified sales and $8.9 billion in non-qualified sales during the third quarter of 2019.
“Structured annuities continued to gain market share in the VA space,” said Michael Manetta, Senior Quantitative Analyst at Morningstar. “More than a decade after a significant stock market correction, this growth likely reflects investor interest in products that offer downside protection to the account value.”
© 2019 RIJ Publishing LLC. All rights reserved.


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Gas tariff obscurity has caused significant disparities in urea prices across Pakistan. The recent hike in gas tariffs has caused major fertiliser players to source gas from different networks, leading to an increase in the cost of production and ultimately causing a disparity in urea prices across the country.
The government of Pakistan recently raised gas tariffs for the Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL) network, in line with the International Monetary Fund (IMF) demand for electricity and gas tariff rationalisation, according to an Insight Securities research report. However, major fertiliser players source gas from the Mari network, for which an explicit notification of a price hike has not yet been issued.
Insight Securities, fertiliser sector analyst, Muhammad Kazim said, “Even Fauji Fertiliser Bin Qasim Limited (FFBL) and Engro Fertiliser (EFERT)’s Enven plants were hit by the cost escalation due to the hike in gas prices by 69% and 47% for feed and fuel, respectively, on the SNGPL and SSGCL networks.”
“The impact has been passed on to urea prices, and the increase is mainly attributable to the price hike for Enven and cost escalation on PP-12 billed gas due to rupee devaluation. In addition, rampant inflation in the country has also resulted in higher costs of production,” said Kazim.
Speaking to the Express Tribune, fertiliser sector analyst, Waqas Ghani Kukaswadia said, “Since mid-February 2023, there has been a lack of clarity among fertiliser manufacturers. As gas prices were not explicitly notified for Mari Petroleum Company Limited (MPCL) network fertiliser companies, the price increase for urea was put on hold by manufacturers on the Mari network.”
This leads to different prices for urea to prevail in the market, causing disorderly price increments. Due to the delays in clarification, middlemen were incentivised to pocket additional profit as urea prices have remained around Rs3,000 per bag in the market for farmers since February.
Despite these economic challenges, the demand for urea remains stable due to its price inelasticity as the nutrient offtake is necessary to ensure food security in the country.
Speaking to The Express Tribune, another fertiliser sector analyst Abdullah Umer Khan Lodhi said, “The fertiliser industry has strong pricing power, which enables it to easily transfer any cost increase to farmers.”
“In the current market scenario, there are three different quotes available for the bag of urea. However, it has been observed that urea is being sold at higher than retail prices by dealers i.e., Rs3,000-3,200 per bag. We anticipate that the industry will soon revert to the standard pricing model of identical urea prices,” said Kazim.
Published in The Express Tribune, April 7th, 2023.
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Whether seafood travels 10 miles from shore to store, or a thousand miles by air, retailers say freshness matters most
From large chains to small independents, retailers are finding new ways to emphasize and promote the freshness of their seafood offerings. With “buy local, buy fresh” signs becoming a more common sight in produce departments, and consumers now looking for other products sourced close to their homes, local seafood is getting its due. For example, Montvale, N.J.-based A&P's “Seafood Joe's Market Fresh Fish” program, launched last summer, is a chainwide effort to put localness and thus ...
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Eat out to help out
Diners will get a 50% discount off their restaurant bill during August under government plans to bolster the embattled hospitality sector.
Chancellor Rishi Sunak unveiled the “eat out to help out” discount as part of a series of measures to restart the economy amid the coronavirus pandemic.
The deal means people can get up to £10 off per head if they eat out from Monday to Wednesday.
Mr Sunak sought to reassure the public that it was safe to dine out. “I know people are cautious about going out. But we wouldn’t have lifted the restrictions if we didn’t think we could do so, safely,” he said.
The discount will not apply to alcohol, but to food and soft drinks up to £10 per person.
The Treasury said the 50% discount can be used unlimited times during August and applies to participating restaurants, cafés, and pubs across the UK.Mr Sunak said the plan was aimed at getting “customers back into restaurants, cafes and pubs” and protecting “the 1.8 million people who work in them”.
Businesses that want to take part in the scheme will have to register through a website that opens on Monday 13 July.
Mr Sunak said: “Each week in August, businesses can then claim the money back, with the funds in their bank account within five working days.”


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November 3, 2009
The Honorable Patrick Leahy
Senate Judiciary Committee
United States Senate
Washington, DC 20510
Dear Mr. Chairman:
Consumers Union , the non-profit publisher of Consumer Reports, is pleased to support S. 1490, the Personal Data Privacy and Security Act of 2009 to ensure that data of the type involved in the Heartland Payments System breach will require a notice of security breach. This measure is an important step in the ongoing fight to promote data privacy and reduce the incidence of identity theft against U.S. consumers and businesses.
According to a 2007 Federal Trade Commission (FTC) study, 8.3 million U.S. adults become victims of ID theft each year. Based on this number, we estimate that there are more than 22,000 victims per day and 15 victims per minute. Since January 2005, security breaches have been announced involving over 340 million records containing sensitive information about individuals. This bill addresses these stark and unpleasant facts of financial life in a balanced and effective manner.
S. 1490 is an important step to promote data privacy. It requires notice of security breaches, provides a new right for consumers to see and correct information held on them by data brokers, establishes a baseline obligation for business entities to safeguard sensitive personal information, and imposes additional protections when the federal government enters into large contracts with data brokers.
The bill’s basic thrust that business entities and federal agencies should notify individuals of a breach of the security of their personal information could help provide an incentive for companies to keep consumers’ information secure and allow consumers to know when their personal information has been compromised. This will allow consumers to take reasonable steps to prevent becoming victims of identity theft or other harm. For example, individuals who receive a notice of breach letter might monitor their credit closely, check their financial statements frequently, place a federal fraud alert on their credit files, and place a security freeze on their consumer credit files.
We also strongly favor the provisions of the measure that permit state Attorneys General to bring enforcement actions under Title III. Strong enforcement mechanisms promote compliance with the law, and state Attorneys General have been at the forefront of notice of data breach issues, responses and service to victims of identity theft, and state legislative responses to the issue of identity theft.
We do wish to point out our concern about the bill’s notice of security breach provision’s limited exception to the obligation to give notice of a security breach based on a determination of the absence of “significant risk.” Many U.S. consumers are now receiving notice without any risk exemption because large population state laws such as California, New York and Illinois tie the obligation to give notice to the type of information breached, without applying a risk standard. This lets consumers decide for themselves how to respond to a notice of breach after they receive it.
We believe that the strongest federal notice of breach standard would not include any reference to a risk exception. However, we do appreciate that, if an approach which considers risk is to be used, it should be structured similar this bill, so that notice will not be excused on the basis of insufficient information. This measure would be further strengthened by changing “significant” to “reasonable.”
Finally, telephone notice is not advisable and should not take the place of notice by mail or even electronic mail. Much effort has been spent educating consumers not to discuss their bank accounts or credit cards with anyone who calls them, and legitimate phone notice of a breach could open an avenue for scammers to purport to be providing such notices. Thus, we recommend that telephone notice be taken out of the bill. It may also be more difficult to share information about a breach within a family with the adult who manages family finances if the notice goes to a different family member in whose name in which the account is held.
Our organization is pleased to support this bill which will help to ensure that U.S. consumers enjoy more effective data privacy and security. We appreciate your continued leadership on this matter which resolves a significant concern we have had about the measure, and look forward to working with you as this bill moves through the legislative process.
Financial Services Manager
West Coast Office


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For those in the UK awaiting the stylish update to last year’s Xperia X10 mini lineup, Clove UK now has both the Sony Ericsson Xperia Mini and Sony Ericsson Xperia Mini Pro in stock. Sometimes referred to as “the world’s smallest Android Gingerbread phone,” the Xperia Mini features a 3-inch display and 1GHz Snapdragon CPU. As of today, the handset is available for £210.00 after VAT is calculated.
Also released just last week was the Xperia Mini Pro, which features the same specs as the Mini with the addition of a slide-out QWERTY keyboard. It can be yours for £246.00 after VAT. Head over to Clove’s announcement blog at the source link below for more details.


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Jacobs targets 1- to 2-day deliveries by decade's end, down from 5 to 6 days today.
XPO Logistics Inc. is working on a multi-year initiative to dramatically compress "last mile" delivery times for shipments of heavier goods ordered online, according to the company's founder, chairman, and CEO.
In an interview late yesterday, Bradley S. Jacobs said XPO plans to execute 1- to 2-day deliveries of heavier consignments by the end of the decade, which would be a significant reduction from the 5- to 6-day delivery time window that is today's benchmark for heavy consignments. As a large hauler, Greenwich, Conn.-based XPO possesses the scale that would be a critical factor in hitting those targets, Jacobs said.
The ambitious plan to improve heavy-goods deliveries is part of a broad emphasis on heavier shipments across XPO's network. The company's less-than-truckload (LTL) fleet, on average, runs about 65 percent full. XPO's objective is to raise that to 75 percent in the short to medium term, and to 85 percent over the long term, Scott Malat, XPO's chief strategy officer, said today on an analyst call to discuss first-quarter financial results. Each 1-percentage-point increase would add $9 million annually to XPO's bottom line by improving utilization of its trailers, even though it would result in lower revenues at each 100-pound weight break, Jacobs said. The yield per "hundredweight," is a key measure of an LTL carrier's performance.
XPO's typical weight per LTL shipment was 1,393 pounds as of the end of 2016, Malat said on the call today. The industry average is around 1,600 pounds. XPO is targeting single-digit annual percentage increases in its LTL "load factor" for this year and next, Malat said.
XPO's LTL unit, which consists of 8,500 tractors and 25,000 trailers, is the second-largest in North America, behind FedEx Freight, Memphis-based FedEx Corp.'s LTL unit. XPO entered the LTL space by buying transport and logistics provider Con-way Inc. in 2015 for $3 billion. Con-way's LTL unit, Con-way Freight, was the second-largest LTL carrier at the time of the acquisition.
The company's last-mile initiative is also a response to heightened expectations from e-commerce customers. As retailers expand their digital storefronts, they are making a wider range of shipments available for purchase. As a result, increasing volumes of transactions involve heavier products with irregular dimensions. This has created challenges for traditional parcel companies because their package sortation systems were not designed to efficiently process shipments of orders like skis and exercise equipment, to name just two.
However, customers ordering such products have the same delivery expectations as those receiving a small parcel. The delivery experience has become a key determinant in influencing a consumer's buying decision.
XPO's first-quarter revenue from last-mile operations grew 16 percent from the first quarter of 2016, according to the company's quarterly results disclosed late yesterday. E-commerce accounts for about 20 percent of XPO's last-mile traffic, a figure that is bound to increase.
In an effort to capitalize on the growth of last-mile demand for heavy goods, XPO is assembling a network to connect its contract logistics, less-than-truckload (LTL), and last-mile operations. The service is in the pilot phase, and is expected to be rolled out by year's end.
Virtually all LTL carriers have shied away from last-mile deliveries, which is the fastest-growing segment of surface transport, because their terminal networks are not designed to support that type of specialized operation. In addition, many heavy goods delivered to residences require some degree of installation, complicated skill sets that most LTL drivers don't possess. XPO provides this so-called "white glove" service largely through its 2013 acquisition of Marietta, Ga.-based last-mile delivery specialist 3PD Inc., whose drivers were also trained as installers.
In a related development, XPO reported strong first-quarter results, paced by its LTL operation, which reported a 49-percent increase in year-over-year operating income. Daily LTL tonnage in North America rose 4.8 percent quarter over quarter, the company said. However, John G. Larkin, transport analyst for investment firm Stifel Financial Corp., noted that XPO utilized 5.8 percent fewer tractors to carry the additional tonnage in the quarter. Larkin said in a research note today that the trend "underscores the extent of the operating leverage the company now has within their asset-based operations." This leverage will become a potent factor should industrial demand—which is LTL's bread and butter—begin to rebound, Larkin added.
The equity markets applauded the results, sending the value of XPO shares up 8 percent to $52.65 a share.
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Battle Creek food consulting company to expand to NYC; headquarters will remain in BC
JPG Resources, a Battle Creek food consulting company, is expanding to the East Coast.
The company has announced they are opening a second office in New York City.
"Food innovation for the last five years in New York City area has grown," said Rifle Hughes, business partner for strategy and innovation. "There's a lot of brands, which wasn't the case a decade ago."
The company's headquarters will remain in Battle Creek.
"The major bulk of our operation will remain in Battle Creek," Hughes said.
The New York office will focus on connecting with the company's clients who reside between Washington, D.C., and Boston.
Leading the charge in New York City will be Rick Williams, who has been hired as a business partner for operations.
Williams said he will be working with the supply chain and helping "build out the portfolio for smaller and emerging brands, as well as established ones."
"Rick’s experience and proven track record will be vital as we continue to expand and enter our next phase of growth,” said Jeff Grogg, who founded JPG Resources 10 years ago.
The company, which began on Battle Creek's north side, announced a move to downtown Battle Creek at 62 E Michigan Ave. in February 2019.
"We would never step out of Battle Creek," Hughes said. "With our move to downtown, we believe we can really contribute at the local level."
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Cannabis is legal in Washington and Michigan. Notably, Washington became the second state to legalize recreational marijuana in 2012. Michigan made adult-use marijuana legal in 2018. However, marijuana sales only started in December 2019. Both of the states are important markets for marijuana. The coronavirus pandemic made cannabis an essential item and increased its demand in many states. Overall, the COVID-19 crisis has caused some concerns in Washington’s cannabis laws. The Michigan marijuana market also faces some concerns.
Michigan marijuana market faces growth barriers
Since marijuana sales went live in Michigan in December 2019, the state’s cannabis market has seen huge growth. A new report suggests that the cannabis market in Michigan is growing rapidly. Soon, the market could be a major part of the state’s economy. Data by state cannabis regulators shows that marijuana sales in the state could be around $3 billion per year. Also, the industry could create 13,500 jobs along with tax revenue of $495.7 million on an annual basis.


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DOOH vs. Metaverse: Courting Consumers
Thanks to the pandemic, online shopping almost feels as if it has become a national pastime. However, traditional retailers are working hard to win back shoppers in the real world, and digital-out-of-home (DOOH) signage strategies are one way they are attracting attention.
Of course, the buying experiences are very different. Online offers the advantages of convenience and ease of research. However, the out-of-home purchase provides the instant gratification of leaving the store with purchase in hand, as well as the transaction being inherently more secure. Out-of-home also allows for better experiences for many consumer traditions, from trying on wedding gowns to buying your first baseball mitt.
Essentially, the Metaverse hosts and promotes interaction between real people online in a virtual domain. You can work from home, learn from home, buy items online, order food, and interact with others while minimizing in-person encounters. It’ll be many years before we can declare the Metaverse is a “real thing,” but it is continuing to grow.
“Web 1.0 was really about information flow, providing access to data you never had before, but it was hard to get and use. Web 2.0 added social media and interaction.” recalled Ted Korte, Vice President of Programs and Innovation Lab, USSI Global. “The Metaverse is a more immersive environment – which has the promise of doing everything humans do in real life but on the internet. Think about the online shopping experience as it is today – then imagine what it would be like to actually browse store isles like you do in real life, picking up products and placing them in your basket. I think it will evolve to be a pretty impressive online gaming experience, but it’s hard to say how far it will actually go.”
As you might expect, the evolution of the Metaverse accelerated during the pandemic. Technology is evolving to create and support the expanding Metaverse, which is built around cloud computing and high-speed, low-latency internet access. “It’s like CPU and memory on your computer – you can never have enough,” Korte said.
However, consumers are still hesitant to embrace the full Metaverse experience. According to Caddle, an app-based data insights platform that provides incentives to participants to answer surveys and provide feedback on consumer goods and services, Virtual Reality (VR) still has an uphill climb for commercial acceptance. A recent survey showed more than 72% of Millennials and 61% of Generation Zers are unlikely to purchase VR headsets.
In contrast, DOOH is firmly entrenched in the real world, and has been around for a while. In fact, USSI Global has been supporting digital signage efforts for decades. Historically, it’s focused on marketing and advertising – first with static signs and then with a digital loop of information. DOOH is there to serve the people who want to get out of the house for commerce, events, and travel. It has become a critical part of their “out-of-home” experience.
Now, DOOH is evolving to be something much more engaging, supported by display tools like transparent OLED screens that can transform any glass window or door into digital signage, sophisticated audience analysis tools and real-time edge computing. DOOH kiosks will interact with a personal phone to work in conjunction with the online experience. “The cost is going down – and the importance to any brick-and-mortar business is going up,” Korte explained.
These advances in technology can create unique experiences, not just provide information. For example, Korte recalled an ad in a subway system where a woman on the screen was talking about hair products. When a train passed through the station, her hair blew in the “breeze” generated from the train in the real world. “That type of ad really catches the eye,” he said. “It’s hard to do that online.”
USSI Global recently partnered with Sinclair Broadcast Group to offer the nation’s first commercial datacasting service using the NextGen Broadcast standard (also known as ATSC 3.0), which will deliver local content and advertising to USSI Global’s new network of EV charger stations. Equipped with DOOH signage technology, the EV charger stations will provide a multi-tenant platform for customized advertising and content. Korte said the first trials will begin later this year in the West Palm Beach-Ft. Pierce market (one of the top 40 markets in the country, according to Nielsen).
“Consumers want a unique experience,” Korte added. “They want the brand to tell a story they can connect with personally. They want to be understood – but not stalked – by advertisers.”
Creating content and keeping it fresh is the hardest part of the process, but Korte said working with local broadcasters will make it easier to update content several times a day, as well as geo-target content and advertising to anyone out-and-about. For example, early morning commuters may see promotions for coffee and donuts from a nearby convenience store with their weather report, while evening commuters may see offers for takeout dinner options from local restaurants between traffic alerts. “What we put on display will be truly unique with a mix of informational and educational content in addition to the promotional, with the intent to create an inviting experience for people,” Korte added.


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Silver lining from startups excesses
25 Nov 2022
The silver lining of the startup world’s excesses is that, for the first time in India, there are so many aspiring to be entrepreneurs. Almost like how people want IIT, IIM, Civil Services, etc. More people building for India, in India is the only way we can get to $5 trillion+.


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Amdocs, a leading provider of software and services to communications and media companies, today announced the launch of Experience360, its low-/no-code experience technology foundation, enabling a service provider’s marketers and other business users to create new customer experiences and journeys with little or no IT support.
Low-/no-code technology is a visual software development approach that requires little to no coding skill on the part of the user, allowing the rapid development of applications with minimal dependency on IT and code developers. Leveraging industry-leading low-/no-code-technologies, and utilizing open and standardized software to fit any system and avoid vendor lock-in, the open and modular Amdocs Experience360 platform offers cross-channel user interface (UI) design with journey mapping capabilities, embedded with analytics to facilitate a personalized customer experience across engagement channels and the customer lifecycle.
“Amdocs is ahead of the low-code trend in telecoms with Experience360 launch” wrote1 Omdia, the analyst firm. “With internet content providers threatening to overtake communications service providers (CSPs) as the majority player in the telecoms industry, the stakes are higher than ever for CSPs to get customer experience right…. Where Experience360 differs is in the delivery of a telecoms-grade solution in a single end-to-end suite for CSPs.”
“Dynamic markets call for innovative technology breakthroughs, so we are excited to enable business users to create and launch new digital experiences within days, without requiring coding knowledge,” said Anthony Goonetilleke, group president, Media, Network and Technology, Amdocs. “Experience360 takes customer journeys to the next level by seamlessly allowing business users to meet the changing demands of their customers, without the burden of complex IT services and infrastructure.”


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President Donald Trump said the United States and India were working on a major trade deal, but he was not sure if it would be completed before the U.S. presidential election in November, APA reports citing Reuters.
As Trump heads to India on his first official trip on Monday, negotiators have been trying for weeks to put together a limited accord giving the U.S. greater access to India’s dairy and poultry markets and lowering tariffs on other products.
But no breakthrough has yet been announced and a planned trip by United States Trade Representative Robert Lighthizer was canceled, underlining the difficulties the two sides face in narrowing differences ahead of Trump’s visit.
“We can have a trade deal with India, but I’m really saving the big deal for later on,” Trump told reporters on Tuesday, outside Air Force One at Joint Base Andrews in Maryland.
“We’re doing a very big trade deal with India. We’ll have it. I don’t know if it’ll be done before the election, but we’ll have a very big deal with India,” he said, in a transcript of remarks released by the White House.
The United States is India’s second largest trade partner after China, with their goods and services trade hitting a record $142.6 billion in 2018.


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Thoroughbred breeding business with a new foal on the ground in Kentucky and 4 more due in April. All to be sold at public auction for big $
Thoroughbred breeding is back with new racinos opening and expanding every year. The casino funded purse stuctures are fueling growth and opprtunity in this business. The current auction results are substantially up over the last year. With high Quality stock including a 1/2 sister to Flat Out, a 2.5 million dollar earner and breeders classic participant the last 2 years, his sisters new foal will bring excellent returns.


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With the holy month of Ramzan being observed all over the world Indian-Muslims are facing a crisis- RoohAfza crisis.
RoohAfza has over the years become a part of iftaar celebrations and believe it or not an Iftaari without RoohAfza is just not the same.
Because of an ongoing dispute in the family the production of RoohAfza, the sherbet made by Hamdard Laboratories was called off. It has not been in the market for nearly for to five months now with no stock available at the online stores as well.
As per one of the directors of Hamdard, Mufti Shaukat the production has restarted only recently and that RoohAfza will be back in the market soon.
While a receptionist at the Hamdard office gave an estimate of 15-20 days before the sherbet is back in the market, it clearly means that it would be us a ramadan without it.
The dispute is over the chair of Chief Mutawalli (equivalent to CEO) of Hamdard, which is currently held by Abdul Majeed, the great-grandson of Hakeem Hafiz Abdul Majeed, the Unani medicine practitioner who founded the company in old Delhi over a century ago. The company also owns traditional medicine brands such as Safi, Cinkara, Masturin and Joshina.
Abdul Majeed’s cousin Hammad Ahmed has been trying to take over the company, claiming rightful inheritance. He even went to court for it, and the legal battle put a stop to the production of RoohAfza, sources said.
Hamdard is registered as an irrevocable Islamic trust, known as a waqf, and under its rules, transfers 85 per cent of its profits to the Hamdard National Foundation, an educational charity. The foundation runs, among other institutions, the Jamia Hamdard in Delhi. The deemed university has the distinction of running the only private medical college in Delhi, and this valued institution, sources say, is a major reason for the family dispute.
The battle went straight up to the Supreme Court, which in its judgment on 3 April, refused to give interim directorship to Ahmed.
While the Director Shaukat refused to comment on as to why production of RoohAfza had stopped, Chief Mutawalli Abdul Majeed chose to avoid all means of communication.
Also, the company recently shared on RoohAfza’s social media accounts which were dormant since September 2018 of how overwhelmed they felt for all the love and that they will be back soon.
Sources also said the production of RoohAfza has restarted only under pressure from Muslims in view of Ramzan, and not because the legal dispute has reached any resolution. There have even been rumours of RoohAfza shutting down.
Founder Hakeem Hafiz’s younger son Hakeem Mohammed Said had migrated to Pakistan and established Hamdard Laboratories Waqf Pakistan soon after Partition which is also an indirect beneficiary of this legal dispute raging in India as Pakistani RoohAfza is selling Rs.375 a bottle against the Indian RoohAfza which is of Rs.145.
Hamdard’s plans to modernise its business and grow its revenues have been stalled due to the dispute. Meanwhile, Pakistani Hamdard is growing by leaps and bounds, having given a production licence in Bangladesh and dominating global exports of RoohAfza. It has even launched a carbonated version of RoohAfza in Pakistan, called RoohAfza Go.


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The CONTENTshift accelerator is looking for the best business models being used by startups in the book and media industry today. The international programme organised by the German Publishers and Booksellers Association Group gathers investors, founders and industry experts to discuss new ideas and work together to develop them even further. Founders are given the opportunity to have their business models validated while also gaining contacts to a network of high-ranking decision makers. In turn, established industry players benefit from direct exchange with innovative startups and curated access to fresh ideas. As of today, startups from all over the world have until 15 May 2019 to apply.
“Since its inception in 2016, CONTENTshift has demonstrated that our industry is at the forefront of cutting-edge tech developments and trends. The business models that have taken home first prize in the past several years have focused on artificial intelligence, chatbots, collaboration and the connection between the digital and analogue world. Now in its fourth year, the accelerator continues to function as a stage and springboard for promising startups in the content industries”, notes Detlef Büttner, board member at the German Publishers and Booksellers Association, managing director of Lehmanns Media GmbH and jury member for the CONTENTshift accelerator.
Industry players who participate financially in the accelerator receive in return a spot on the jury as well as direct contact to the startups. Among the high-ranking companies supporting the programme this year are the bookstores Hugendubel and Thalia, the Ravensburger Gruppe and Karger Publishers. Thanks to the assistance of professional advisors, the Börsenvereinsgruppe guarantees that participating companies will be able to draw from a pool of qualified startups. A number of other European media associations also support the accelerator.
This year’s programme for the five final startup-candidates will begin on 1 July 2019. In the course of the competition, each startup will receive comprehensive coaching and advice from industry experts. The CONTENTshift jury is made up of representatives of the sponsoring companies and the Börsenvereinsgruppe. The core of the competition is a two-day joint workshop for the jury and startups in early September. The final pitches will then be given at the 2019 Frankfurt Book Fair in October. The book fair will also act as the venue for the award ceremony held on 17 October 2019, at which the “Content Startup of the Year” will be named and receive €10,000 in funding.


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Ashley steps up attack on business rates
Mike Ashley has renewed his campaign to secure a meeting with Boris Johnson to discuss the reform of “crippling” business rates.
The retail tycoon has warned the prime minister of “disastrous consequences” for jobs if the government fails to act.
“We believe that the exchequer is putting the jobs of a significant percentage of the UK workforce at risk,” Mr Ashley, 55, wrote in a letter to the prime minister with Chris Wootton, 40, chief financial officer of Mr Ashley’s Frasers Group.
They cited the thousands of job cuts announced by retailers such as John Lewis and Marks & Spencer and warned of more problems for the high street.
“Other businesses are entering insolvency from which they cannot feasibly return due to the crippling impact


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Banks and credit unions that actively market their mobile banking services have experienced adoption rates twice as high as financial institutions that do not promote the service, according to a new statistical analysis by Brookfield-based Fiserv Inc.
The company analyzed data among users and non-users of Fiserv’s Mobiliti mobile banking and payment services Services, which are designed to establish mobile banking relationships and increase customer adoption of mobile financial services.
The analysis looked at data across hundreds of banks and credit unions.
Within 12 to 18 months of launching Mobiliti from Fiserv, financial institutions that did not market the service saw average adoption of around 10 percent among eligible users, whereas financial institutions that have marketed the service have seen adoption rates over 20 percent, and in many cases exceeding 30 percent.
Fiserv’s adoption services include consultation from mobile adoption experts who share best practices, access to an online database of customizable marketing materials such as e-mails, banner advertisements and counter cards and exclusive research and benchmarking data.
The growing popularity of mobile banking was the topic of a recent BizTimes Milwaukee cover story.
Fiserv chief executive officer Jeff Yabuki will discuss emerging trends in business technology when he serves as the keynote speaker at the Northern Trust Economic Trends Breakfast to be presented by BizTimes Media on Jan. 18. To register to attend, visit www.biztimes.com/trends.


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Vitamin Retailer reflects on the impact, challenges and evolution of the dietary supplement and natural products industry since the magazine’s inception.
In 1994, “Forrest Gump” won the Academy Award for Best Picture, Ace of Base’s “The Sign” topped the billboard charts, and “Friends” and “ER” made their television debuts.
Also of note that year: health care costs were projected to approach $940 million, and a young editor named Dan McSweeney decided to branch out on his own and start a magazine called Vitamin Retailer.
In the inaugural issue of the new publication, Senator Orrin Hatch (R-UT), sponsor of the Dietary Supplement Health and Education Act (DSHEA) bills S. 784 and H.R. 1709, told McSweeney:
“Since there’s no higher item on the public health agenda right now than good health… it’s important that we made a case for the dietary supplement industry, which I think does a great deal of good in our society. Supplements keep people healthy.”
Sen. Hatch went on to note the solid science that was surfacing at the time about the efficacy of vitamin E and its ability to reduce cardiovascular disease and difficulties, Linus Pauling’s work with vitamin C, and folic acid being proven to help prevent neural tube defects such as spina bifida.
At the time of the interview, November 30, 1993, DSHEA had hit its Roadblocks getting passed—namely Congressman Henry Waxman (D-CA) and Sen. Ted Kennedy (D-MA). As negotiations were underway to see if an agreement could be reached, the industry waited on bated breath to see if 1994 would in fact be the year this landmark legislation would be passed.
Sen. Hatch stressed a number of items on which he would not waiver. First being the burden of proof, which he wanted to be on the U.S. Food and Drug Administration (FDA). There were three very difficult issues that had to be addressed: safety, claims and manufacturing practices. Ultimately, he explained, “what we want the end result to be is to allow people in the [natural Products] business to be able to continue to make the quality products they’re making and continue to be able to do the good that they’re doing for people.”
The efforts of Sen. Hatch and the various other sponsors and supporters, such as Rep. Bill Richardson (D-NM) and Sen. Tom Harkin (D-IA), who was key in bridging the gap between Hatch and Kennedy, were rewarded when President Bill Clinton signed S. 784, DSHEA, into law on October 25, 1994.
Legitimizing an Industry
It was the growth and success of the dietary supplement industry in the 1980s and early 1990s that led to the creation of DSHEA. Since its passage, there has been continued, steady growth due to the strong consumer demand for access to herbal products and supplements. But one of the biggest differences from the pre-DSHEA time period is that the law really helped legitimize the dietary supplement industry in the minds of many consumers, as it set down specific rules and regulations that manufacturers had to follow in order to be in compliance with DSHEA.
That legitimacy was only strengthened by the passage of the Serious Adverse Event Reporting (AER) law in 2006 and the release of final regulations for good manufacturing practices (GMPs) in June 2007 (fully into effect 2010) . Steve Mister, president and CEO of the Council for Responsible Nutrition (CRN), calls the AER law a “watershed event” because it was the one thing missing from DSHEA. “AER passage brought post-market surveillance to both supplements and OTC drugs,” he said. “Defending supplements requires reporting these things, and the FDA has used these reports in a number of cases—from the Hydroxycut recall to DMAA and caffeine.”
Meanwhile, it has been said that GMPs have and will continue to change the face of the industry, weeding out companies that can’t bring their operations up to code, or forcing them to be strictly marketers as they employ contract manufacturers to create their products.
“The overall stellar safety track record of the dietary supplement industry—far safer than our food and pharmaceutical counterparts—was clearly confirmed after AERs became a mandatory practice in our industry several years ago,” said Bob Barrows Jr., vice president of sales & marketing of Texas-based Bluebonnet Nutrition. “And the industry has become even safer after the release of the long-awaited cGMP guidelines a few years ago, evening the playing field so that now all manufacturers of dietary supplements must follow strict inprocess testing procedures throughout manufacturing and packaging.”
“After DSHEA was passed, the industry underwent a time of rapid growth, with FDA doing little to implement the law,” said Dan Richard, national sales manager with Illinois-based NOW Foods, supplement manufacturer founded by Elwood Richard in 1968. “With so many new players, it was inevitable that quality assurance procedures by some would be better than others. Many of those companies that could be described as the responsible core of the industry had already gotten third-party GMP certification.” Richard noted that NOW was one of the first to do so, having first received GMP certification by the National Nutritional Foods Association (NNFA), now the Natural Products Association (NPA), in 2000. “As the GMPs kicked in over a three-year period, many companies weren’t prepared, and had to spend enormous amounts of time and money to catch up.”
“This has been particularly beneficial to companies like Bluebonnet who have been manufacturing to these high standards since our inception in 1991, and no longer have to compete with other dietary supplement manufacturers or brands who have cut corners on quality in order to make a less expensive product,” Barrows added.
DSHEA sent the dietary supplement industry into a whirlwind evolution. What is now a $30 billion industry, with herbs at more than $5.5 billion, not only have products and manufacturing grown leaps and bounds since its passage, so have the consumer base for these products and the retail environment, due in great part to the emergence of the internet (as DSHEA was passed before the advent and general acceptance of the worldwide web).
20 Years of Growth
From a product perspective, one area that has shown tremendous growth and shows no signs of slowing is the category of personalized nutrition. This retreat From the one-size-fits-all approach to nutrition to embrace the unique needs of individuals is credited heavily to an increased attention on quality science supporting products, driven by DSHEA.
Tom Bohager, chairman and founder of Florida-based Enzymedica, which celebrated its 15th anniversary in September of 2013, offered the enzyme category as a clear illustration of the industry’s science-driven product evolution. ”Twenty years ago, there were only a small number of enzyme products that, by today’s standards, contained very low potencies. Now, the choices are almost overwhelming,” he said. “The consumers of nutritional products are much better educated about the benefits of enzymes, and with the recent surge in probiotic use, we expect this market will grow at even a greater rate than we have seen in the past.”
Other noticeable strides have been in taste and delivery, observed Lou Paradise, president and chief of research of New York-based Topical BioMedics, Inc., makers of Topricin. “Quality product manufacturers have made significant headway and impact on the general population, including addressing the issues of gluten and other food allergies,” he said.
“The true innovators in the industry have provided healthy choices that are good for you and taste great.” This, according to Andreas Koch, marketing director with Barlean’s in Washington, has led to a larger mass population opening up to natural products. “Omega-3 nutrition, for example, has always been one of the most important categories in the entire health and Wellness industry. But in the last five years, three major improvements have helped boost sales and reach a larger population: better absorption, taste experience (thanks to developments with and adoption of natural sweetener alternatives) and a wider variety of omega-3 sources,” he said.
The noticeable product improvements are credited to an emphasis on research, which has transformed the dietary supplement industry as a whole. But it is also the cost of doing business under DSHEA, according to NPA CEO and Executive Director John Shaw.
“Research is imperative to the industry, both in maintaining compliance with the NDI (new dietary ingredient) notification provision and providing appropriate background for structure/function claims,” he said. “Additionally, having a solid scientific basis for products is necessary when consumers—and mass media—are asking questions. The products that have the solid science backing them have the basis for safety and efficacy.”
Illinois-based Carlson Laboratories is one example of a company whose foundation was built on science—only producing and selling products backed by scientific research, according to President Carilyn Anderson. “It is interesting to see how so many consumers have educated themselves on the importance of this and come to expect it from [the industry],” she said. “Although it was something we were doing for years prior, it is now required to have research-backed studies in order to make structure/function claims.”
And the impact of this intensified research has been noticeable—and eagerly welcomed—by retailers. Starkie Sowers, director of education with three-store Clark’s Nutrition & Natural Foods Market based in Riverside, CA, who grew up in the natural products industry, expressed how absolutely floored he’s been by the work produced by the industry.
“Science had been a part of the industry for years, but DSHEA really invigorated people. They began producing larger amounts of studies— everything shifted from the testimonial to what the science actually says,” he said. “Just looking at the pioneering work of individuals like Dr. Jeffrey Bland, dosing, safety and usage became more understood.”
When the rest of the nation wrestled with the recent economic downturn, the dietary supplement and natural products industry shined through, said Carlson’s Anderson. As many people experienced loss of income and, in many cases, loss of or limited insurance coverage, it led them to seek out less expensive, natural alternatives as a way to get and stay healthy, she noted.
This change in perception is evident to retailers like Trent Hurley, second-generation owner of No Name Nutrition Market West, which has been serving Omaha, NE with two stores since 1976; and Ed Jones, president of Nutrition World in Chattanooga, TN, who has owned and operated the single store since 1979.
“I think the biggest impact has been the opening of the eyes of the average consumer. People realize that doctors are not gods and there are other alternatives to a lot of the surgeries and prescription medications,” said Hurley. “As long as consumers can continue to purchase supplements and good whole foods, I think there is hope for our continued health and wellness.”
Jones recalled that in the 1980s, many customers were less trusting of the information his store offered in regard to nutritional supplements and health. “One reason was the public’s absolute faith that their doctors were the only source of health information,” he said. “Today, the informed health care professional cannot ignore the wave of research, acceptance and use of nutrition in health.”
Enzymedica’s Bohager said he has seen first hand the difference natural products have made to the population through his company’s support of Autism Hope Alliance. “Currently one in 88 children are diagnosed with an autism spectrum disorder. Most suffer from digestive distress and are in need of healthy specialty foods because they have numerous food intolerances,” he said. “Besides enzymes and probiotics, nutritional supplements such as antioxidants, EFAs and vitamins can have a profound effect on these children and many like them.”
But Jarrow L. Rogovin, president and chairman of the board of Californiabased Jarrow Formulas, a supplement Company that began in 1977 and was incorporated almost a decade later, is quick to note that this industry’s mission is far from over. “We have impacted the nation, but only a fraction of it. [Supplement takers] are a rather elite, educated group. [It’s] a huge country and we have a long way to go if we are really going to educate ‘the public,’” he said. “Within our customer base, we have helped many people, but we have a lot of uncovered ground. If we actually do our homework—protect our political and economic rights and undertake clinical trials— we can become 10-times bigger than we are.”
And while supplements and natural products have had a tremendous impact on the population’s health with its affordable, preventative strategies, one cannot ignore the economic impact the industry has had on the nation.
“The industry has been at the forefront of the movement to improve the health and well-being of U.S. citizens. At the same time, the industry has significantly contributed to the U.S. economy by producing more jobs and creating taxable revenue,” said Michael McGuffin, president of the American Herbal Products Association (AHPA). “Moving forward, there is every indication that the industry will continue to grow and contribute to the health and success of U.S. citizens and the U.S. economy,” he added.
While the threat of over regulation is always on the horizon for the dietary supplement industry, one of the primary challenges that has plagued it is bad press. It’s a substantial concern for Nutrition World’s Jones as he eyes the future.
“Looking forward to 2014, this industry is certainly always focused on upcoming legislation of which we must be constantly vigilant in order to preserve our freedoms to offer our products. But my concerns continue to grow in regard to the apathy of so many nutrition companies that refuse to participate in countering so much negative press that is presented in the media,” he said. “The NRA has proved that being organized as a single unit to counter each and every attack is possible, but only if companies unite and quit running scared of participating in the battle.”
“The principal challenge facing this industry is the misconception perpetuated by the media that it is not regulated,” said Bluebonnet’s Barrows. “Unfortunately, this perception is often strengthened by unscrupulous players who intentionally adulterate or spike their products with prescription ingredients, or when companies don’t follow the cGMP guidelines. To counter this onslaught of negative stories, we need to be pushing a positive agenda and bombarding the media with success stories about the benefits of dietary supplements, how they help to reduce medical costs and the positive influence they have on maintaining health and preventing disease.”
When it comes to bad press and increased regulation, NPA’s Shaw expressed that it’s hard to decipher Which comes first, but they both play heavily into one another.
“From a legislative/regulatory perspective, the dietary supplement industry is quite young, but its continued growth in light of the recession and new regulations is a testament to its prosperity. However, the industry continues to struggle with mainstream media pressures stemming from negative articles and challenges of Congress,” he said. “Most legislation that deals with this industry is based on media articles that aren’t always accurate. We continually educate new members of Congress and their staff as to the regulatory role and oversight of FDA that DSHEA provides.”
As NOW Foods’ Richards explained that the industry must meet the recurring challenge of more stringent regulation by utilizing advocacy, quality, integrity and communication, Barlean’s Koch offered one thing that can stonewall naysayers and those trying to push a prohibitive regulatory agenda:
“Stacking up more research building blocks creates a higher wall for regulatory bodies to try and leap over and challenge,” he said. “As more research is published, this further supports natural product supplementation to a wider population. In turn, sales momentum will continue to shift from pharmaceuticals to nutraceuticals.”
When science is the primary weapon in the industry’s arsenal, it only increases the importance of education and the role of retailers, particularly when conflicting studies emerge and spread through the media.
It’s a role that Linda Burger, owner of The Well in Bedford, VA, who opened her first physical store in 2002 but has been serving the industry since 1995; and Keri Blanchard, owner of Healthy Ways, a single store serving Lodi, CA residents for more than 21 years, view as a privileged responsibility.
“New research has had a tremendous impact on understanding not only wellness issues, but the whole body system,” said Burger. “As we learn new information Through monitoring legitimate studies, we are able to serve our customers better.”
“Our biggest goal should be to continue to educate the consumer,” added Blanchard. “A lot of them just don’t know about how supplements can help, how eating healthily can change how they feel. What we can offer consumers is the ability to take control of their own health with the education they receive at their local health food store.”
But education is one area where Blanchard hopes her supplier partners make a priority to offer more assistance.
“It is so important that we have the education and training so we can help consumers make the best decisions for their health needs,” she said. “I feel our companies need to educate and train the staff in stores that are selling their products. The more educated we are, the more we can sell.”
Today’s retail environment is almost unrecognizable to the specialty stores that built the foundation of this industry more than two decades ago. Jarrow’s Rogovin made the observation that large, corporate chains, as well as competition from the mass market and the internet are eliminating smaller shops as the mainstreaming of the industry has picked up speed. And consumers are paying the price as these channels are more centered on sales than service.
It’s a legitimate worry for single-store operators like Jane Thomas, AAS, MH, CR, CWC, owner of JB’s Health Mart in West Plains, MO, which she purchased in 2009, but has been in continuous operation since 1994. “I am concerned about independent stores being swallowed up by corporate models. Products once exclusive to my kind of store are now being mass marketed. Initially the consumer appears to be winning the price war, but as stores fold, prices will go back up,” she said. “My best preparation is to continue offering superior customer service and meeting the everchanging demands of our customers.”
Indeed price is an issue for specialty retailers, but so is channel loyalty in this increasingly competitive market, as Warren Barbieri, co-owner of The Health Food Store, a two-store operation based in Pontotoc, MS that opened in 1991, described: “Many quality natural products manufacturers do not have MAP (minimum advertised price) pricing in place or do and do not enforce it. That has allowed many online retailers to offer ridiculously low pricing slightly above a natural brick-and-mortar store product cost.
The same goes for those manufactures who are now choosing to partner with the big box stores who lead with low prices only (and service/product support is not important),” he said. “We believe manufacturer/supplier partners can help our industry and the natural store retailer by putting in place MAP pricing to control the integrity of a product’s price point and, most of all, enforcing it.
“No one wins in the long run when the online retailers destroy a product’s price point in relationship to the manufacture’s suggested retail,” he added. “Further, we are sick and tired of being a store front and sales staff for internet companies.”
Which brings to light the most evident change in retail: the advent of the internet, and how we are connected to Everything with the touch of a button or a click of a mouse. While it has made for a more competitive market, is has also helped to cultivate a more aware consumer.
“Awareness is being raised due to the many ways we receive Information— Dr. Oz, the former Oprah show, the internet, television, social and print media. It is causing many people to inquire about ways to improve their health,” said Thomas. “When people begin to experience the spectrum of benefits from a holistic lifestyle, they Share their success stories with others, and begin to explore natural health even more. This stimulates the industry.”
It also makes for more informed retailers, according to Suellen Duga, vice president of single-store Choice Health in Westfield, MA, who established her first store, New Age Whole Food and Grain, in April 1988. “One of the most significant changes that has taken place is the way information is disseminated. There was a joke among us retailers here in the East in the 90s that it would take 10 years for any new product that originated in California to reach us,” she said. “What used to take days to travel from California to the East now takes a nano-second.”
The Retailer’s Role
The importance of a well-informed specialty retailer is only emphasized as consumer interest grows in natural products, said CRN’s Mister. “People have questions about what to take and why, what strength, etc. An online catalog or wandering the aisles of a super store is not going to give the types of answers those customers desperately need,” he said. “There is a lot of conflicting information out there. Retailers play a valueadded role by helping customers decipher between good and bad information, and having trained staff that can help explain the science.”
In addition, as product offerings have exploded, retailers recognize the prime real estate their shelf space affords, and have become more particular of the marketing support that manufacturers provide to promote sell-through to consumers. With the increased regulatory environment, NPA and CRN both strongly recommend that retailers continue carefully vetting suppliers, such as confirming they’re complying with GMPs.
Further, Mark Blumenthal, president of the American Botanical Council (ABC), added that retailers must keep abreast of the current literature on quality control problems in the industry—becoming more informed buyers and pushing back on their vendors in cases where there are publications about known adulterants. “All retailers should be asking their suppliers (especially contract manufacturers who supply a retailer with a private- label brand) for evidence and guarantees that the supplier has performed appropriate analytical tests for ‘known adulterants’ in the herbs that are known to be adulterated, such as skullcap, bilberry extract, black cohosh and socalled grapefruit seed extract,” he said, noting that the Botanical Adulterants Program is one place where retailers can freely access information on the adulteration of the herbs.
It’s a point supported by frequent industry speaker Debra Stark, president of Debra’s Natural Gourmet, which has been serving Concord, MA residents for 24 years. “As lab testing becomes more sophisticated and our customers become more informed, we’re all going to have to keep raising the bar, making sure there are no contaminants, that our raw materials are squeaky clean,” she said.
“Retailers are going to have to keep asking questions and thinking about the answers, not just accepting sales-speak.” Beyond assuring products are safe, in order to survive in an increasingly competitive market, Ben Henderson, vice president and general manager of Bare Essentials Natural Market, a single store in Boone, NC that celebrated its 25th anniversary in June 2013, implored his retailer brethren to shift their passions.
“We have succeeded in that more of the public has adopted our message, but the mass market has noticed. Now we need to become business people to survive,” he said. “Hopefully we’ll lead the charge against GMOs (genetically modified organisms). We’ll strengthen independent natural products retailers who are the backbone of our industry through organizations like the Independent Natural Food Retailers Association, which is rapidly becoming a force to be reckoned with in our industry.
“We cannot sit still or rest on our laurels,” he added. “We have to become better business people—to apply the passion we have for the products and concepts that drew us to this industry to the business side.”
In conclusion, Clark Nutrition’s Sowers offered this piece of advice as the nation continues to embrace better habits and lifestyles, and awareness grows that we are all, in fact, responsible for our own health: “If we strategize ourselves properly and we stick to science as solid as we can and let the science speak for product development, as an industry, we can satisfy what I believe is a large demand for health care support.”
Vitamin Retailer reflects on the impact, challenges and evolution of the dietary supplement and natural products industry since the magazine’s inception.
An Industry Mobilized: Blackout Day Remembered
In April 1993, Dietary Supplement Health & Education Acts of 1993 (S. 784 and H.R. 1709) were introduced by Senator Orrin Hatch (R-UT) and Representative Bill Richardson (D-NM), and faced considerable opposition. In an effort to mobilize the industry in support, the National Nutritional Foods Association (NNFA) distributed Blackout Day “kits” to supplement retailers in July 1993, explaining that on August 13, 1993, retailers nationwide should refuse to sell some dietary supplements entirely or by marketing them with “black dots, crepe-paper, black ribbons or any other means.”
“The only realistic hope for preserving not only our businesses, but also our way of life … is to use creative and decisive action to ensure the passage of the Dietary Supplement Health & Education Acts (S. 784 and H.R. 1709) by October,” materials in the Blackout Day kit stated.
The “blackout” mobilized consumer support for the Hatch/Richardson bills by widely disseminating the industry’s message that many products that consumers regularly purchase— such as certain amino acids, herbals, enzymes and single- ingredient oils (including evening primrose extract)— would no longer be available if FDA’s dietary supplement proposal was effected. The Blackout Day also served as a means To publicize letter-writing and media campaigns through retailers. Included in the blackout kit were suggestions to retailers for setting up store displays and “legislative action tables,” as well as “general themes” and “talking points” to respond to local media coverage of the event.
Starkie Sowers, director of education with three-store Clark’s Nutrition & Natural Foods Market based in Riverside, CA, recalled how the event highlighted the staggering commitment of the industry and its customers. “You have to remember, this was a pre-e-mail moment, so mobilizing stores was imperative. The passion for these products was evident, as we sought to gather a million signatures,” he said. “We explained to our customers, ‘Here’s the deal: we’ve got important legislation on hand. If it’s passed, these products won’t be available any longer.’”
Clark’s Nutrition, like many other retailers across the country, didn’t sell any of the designated products on August 13, but told customers they could come back the next day when the demonstration was over. “Some people weren’t happy about it, but most stepped up ready to sign up in support,” added Sowers, noting that the DSHEA article had more signatures presented than during the whole era of the Vietnam War.
Retailers’ Views on Vitamin Retailer
“I think the personalized articles of other family-owned, brick-andmortar stores sets Vitamin Retailer apart from other magazines. About a year ago, Vitamin Retailer ran an article covering a family-owned business in another state. It was an excellent article and we ended up using some of the advice from that owner and incorporated it into our own business. It has helped tremendously! I also love the in-depth articles and education I get from every issue—keep them coming!” — No Name Nutrition’s Trent Hurley
“I am drawn to Vitamin Retailer in particular for its focus, as its name suggests, on the people behind the retail operation. I like the ‘personal’ feel—it provides the sense that it’s addressed to me and my business. I’ve picked up some great ideas from other store owners around the country about how they handle certain decisions, and have added many new products after finding them in the magazine.” — The Well’s Linda Burger
“When I go to a trade show, I may pick up 10 new small ideas and go back and implement four of them. But those four ideas improve my business. I read Vitamin Retailer with that same philosophy. I learn about new products, how other retailers are dealing with similar challenges, and how to more effectively market what we have here. Keep doing what you’ve been doing for the past 20 years: keeping a geographically dispersed and diverse collection of businesses informed on important issues.” — Bare Essentials Natural Market’s Ben Henderson
“We find it useful reading articles about other businesses similar to ours and about product manufacturing issues, as well as spotlighting new products. I like to read the scientific information to expand my knowledge— any education we can pass onto our staff and customers is a win-win situation.” — JB’s Health Mart’s Jane Thomas


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NEW YORK (AP) -- Amazon wants to make shopping online as easy as a tweet.
The online retailer is introducing a service that lets Twitter users add Amazon.com products to their carts without leaving the social media site.
The service comes as Amazon seeks to make social media a bigger source for sales. Twitter also has been seeking new revenue streams beyond advertising services like promoted tweets.
Under the program, users must link their Amazon.com account with their Twitter account. Then they need to add hashtag #AmazonCart when replying to a tweet that has an Amazon product link and the product will be automatically added to their shopping cart.
Twitter users will get a reply tweet from @MyAmazon as well as an email from Amazon when the item is successfully added to their cart.
(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.


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Stumped on what to wear to GW’s Inaugural Ball? Check out tips from the University’s new Pinterest page.
The University Events page has four boards – wardrobe, hair and make-up, accessories and shoe ideas – with a total of 61 pins.
The “Inaugural Ball apparel” board features celebrities and stylish politicos, like alumna and former first lady Jackie Kennedy Onassis in her 1961 inaugural getup.
The page also advises students to select outfits, accents and makeup with a buff-and-blue theme to show “Colonial spirit.”
Tickets for the Jan. 21 ball, which will cost $100, go on sale Election Day.
Auntie Anne’s pretzel shop opens Friday after about a month of preparation to its J Street space.
Auntie Anne’s Pretzels is handing out free samples on its opening day Friday.
Samplers can stop by the new J Street venue between 11 a.m. and 3 p.m. to taste the original and cinnamon pretzels.
The University announced this fall that Auntie Anne’s would replace Freshens, which sold frozen yogurt and smoothies.
It is the first chain restaurant added to J Street since Campus Dining scrapped the Wendy’s and Chik-Fil-A in August 2011.
Director of Campus Support Services Nancy Haaga said she hoped Auntie Anne’s will excite more students about J Street, which has swapped out several vendors and overhauled its marketing in the last few years to attract diners.
The Fojol Brothers of Merilindia food truck employees serve Indian food while donning turbans and playing Punjabi music. Photo courtesy of Dave Kleinschmidt under Creative Commons License
The Fojol Brothers food truck that brings turbaned employees and Punjabi music to H Street to serve up Thai, Ethiopian and Indian specialties is being called out for “brazenly insulting of others’ cultures.”
Change.org posted a petition Tuesday that garnered more than 400 signatures as of 3:42 p.m. to tell the food truck’s owner to “stop the brownface minstrel act,” citing employees’ stage names like “Dingo” and “Ababa Du.”
The petition follows “An Open Letter to the ‘Fojol’ Bro-dawgs” posted Friday on Facebook, blasting the truck for “brazenly insulting of others’ cultures.”
Drew Franklin, the author of the post, called the owners “a bunch of callous opportunists banking off the ever profitable enterprise that is Western Orientalism.”
One of the truck’s owners, Justin Vitarello, told The Huffington Post that Fojol Brothers will not change anything about their costumes or “Merlindian” personas.
“We’re not going to stop doing that, is what it comes down to,” Vitarello said. “The people and the market will tell whether they like this or not.”


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WiFi networks, especially free ones, are always the hardest to find when you actually need them. Now Google has made tracking one down a little easier thanks to a new feature in its data-saving app Datally.
Tagged With mobile phones
Do you have a few unused mobile phones gathering dust in your house somewhere? You're not alone: it is estimated that Australians are holding onto more than 23 million unused phones. All of these products contain valuable materials that could be returned to the supply chain via recycling. Here are seven expert tips for getting rid of unwanted e-waste in ways that will help the planet.
Telstra and Optus announced this week that both would launch 5G services next year, and the general response was "sure, but it's not like they're going to give us a lot of data, so who cares?"
Will this be the case? I'm not so sure. One of the key benefits of 5G technology is a big increase in network capacity, so I'm quietly optimistic about how this will play out.
It is a truth universally acknowledged that as gadgets get older they slow down -- your 3-year-old laptop or phone isn't going to have the same spring in its step as it did when you first unboxed it. But what are the factors that cause this inevitable sluggishness? Is your precious device quite simply wearing out?
One of the more interesting technology trends for 2017 was the wave of nostalgia that passed over the industry. HMD Global's Nokia 3310 stole the limelight at Mobile World Congress this year, despite a raft of cutting-edge phones on display. The always-nostalgic Nintendo released an adorable re-imagining of the 1990s Super Nintendo, called the SNES mini.
I've been using the new Nokia 3310 3G as my primary phone for a full work week, and it's been like living in a localised time distortion field where I was in 2000 and everybody else was 17 years ahead. As someone with an appreciation for retro technology I thought this might be an interesting — or even refreshing — experience, but it was borderline intolerable.
Last month, we challenged you to save money on your mobile phone bill by switching to a cheaper plan. This doesn't necessarily mean you have to switch carriers, though. You might be able to negotiate a better price with your current one.
Ever since Nokia introduced the new iteration of its classic 3310 there's been an intense debate going on in my head.
"It's really cheap!" shouts Nostalgia.
"Why the hell would you want a phone that doesn't have apps?" replies Logic.
Maybe that same debate has been going on in your head too. Don't worry, I went hands-on with the device and now have enough facts to settle things.
Nokia has announced it will be resurrecting the iconic 3310 mobile phone that thousands of Aussies dropped without breaking. It promises a whopping four weeks of battery life and represents a refreshing antidote to feature-packed, gimmicky smartphones - but will it ever make it to Australia? Here's what you need to know.
If you're on a cheap mobile phone plan, there's a good chance your monthly data allowance is woefully inadequate. This can lead to huge bills at the end of the month if you don't keep close tabs on your usage.
Instead of switching off your mobile data completely (or downgrading to a basic phone), try following these simple data-stretching tips. With plenty of discipline and a bit of know-how you can make even the flimsiest of data plans go the distance.


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Seoul/Singapore | The World Bank has cut its forecast for China’s growth next year and warned East Asia’s developing economies are set to expand at one of the lowest rates in five decades, as US protectionism and rising levels of debt pose an economic drag.
The gloomier 2024 forecasts from the bank underline the mounting concern over China’s slowdown and how it will spill into Asia. China’s policymakers have already set one of the lowest growth targets in decades for 2023, of about 5 per cent.
Citing a string of weak indicators for the world’s second-biggest economy, the World Bank said it now expected China’s economic output would grow 4.4 per cent in 2024, down from the 4.8 per cent it expected in April.
It also downgraded its 2024 forecast for gross domestic product growth for developing economies in East Asia and the Pacific, which includes China, to 4.5 per cent, from a prediction in April of 4.8 per cent and trailing the 5 per cent rate expected this year.
The projections show that the region, one of the world’s main growth engines, is set for its slowest pace of growth since the late 1960s, excluding extraordinary events such as the coronavirus pandemic, the Asian financial crisis and the global oil shock in the 1970s.
Economists expected China’s rebound from strict pandemic controls would be “more sustained and more significant than it turned out to be”, said Aaditya Mattoo, World Bank chief economist for East Asia and the Pacific.
The bank pointed to Chinese retail sales tumbling to below pre-pandemic levels, stagnant house prices, increased household debt and lagging private sector investment.
Mr Mattoo warned that slower growth would persist unless governments, including China’s, embarked on “deeper” service sector reforms. But a transition from property- and investment-led growth has been challenging for many developing Asian economies.
“In a region which has really thrived through trade and investment in manufacturing ... the next big key to growth will come from reforming the services sectors to harness the digital revolution,” he said.
Softer global demand is taking its toll. Goods exports are down more than 20 per cent in Indonesia and Malaysia, and more than 10 per cent in China and Vietnam compared with the second quarter of 2022. Rising household, corporate and government debt has further dented growth prospects.
The worsening forecasts also reflect that much of the region – not just China – is starting to be hit by new US industrial and trade policies under the Inflation Reduction Act and the Chips and Science Act.
For years, US-China trade tensions and tariffs imposed on Beijing by Washington benefited south-east Asia, driving demand for imports towards other countries in the region, especially Vietnam.
But the introduction of the IRA and Chips laws in 2022 – policies designed to boost US manufacturing and cut American dependence on China – has hit South-East Asian countries. Their exports of affected products to the US have fallen.
“This whole region which had perversely benefited from US-China trade tensions in terms of [trade] diversion now is suffering trade diversion away from it,” said Mr Mattoo.
Electronics and machinery exports from China and South-East Asian countries, including Indonesia, Vietnam, the Philippines, Malaysia and Thailand declined after President Joe Biden’s protectionist policies came into force, according to the World Bank.
By comparison, US trade with countries including Canada and Mexico, which unlike China and South-East Asia are exempt from the local content requirements attached to US subsidies, has not declined.
“The treatment under these provisions is discriminating against countries which are not exempt from the local content requirements,” Mr Mattoo said.
The World Bank data factors in a reduction in demand due to the overall slowdown in global growth that is affecting all countries.
Concerned South-East Asian countries are rushing to fight back. Indonesian business has criticised the “unfair” exclusion of the country’s critical minerals from a huge package of US subsidies for green technology.
Indonesia holds the world’s largest reserves of nickel, which is crucial for producing electric vehicle batteries. Jakarta is trying to negotiate a provision that would make its mineral exports eligible for similar treatment to Canada or Mexico.
Business lobby groups in Vietnam have similarly argued that the US should extend electric vehicle tax credit benefits to Hanoi, especially after the two countries formally upgraded ties this month.
The US is Vietnam’s largest market, but shipments fell 19.1 per cent from January to August this year, compared with a 13.6 per cent rise in 2022.
Additional reporting by Andy Lin in Hong Kong
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