Beruflich Dokumente
Kultur Dokumente
FinalReport
October2011;v1.9
www.foodandbeverage.govt.nz
ThisinformationwaspreparedbyCoriolissolelyfortheuseofourclient;itisnottobereliedonbyanythirdpartywithout priorwrittenconsent.
Theobjectiveofthisreportisto provideafactual sourceofhigh qualityinformation onthecurrentsituationintheNewZealand nutraceuticals&foodforhealth/functionalfoodssectorfor fouraudiences: Investors (domesticorinternational) Industry participants(firms &individuals) Government (acrossallrolesandresponsibilities) Scientificresearchers(academic,government&firm)
Itcreatesacommonsetoffacts andfigures onthecurrent situationintheindustry. Itdrawsconclusionsonpotentialindustrystrategic directions andhighlightsopportunities forfurtherinvestment. ItformsapartofthewiderFood&BeverageInformationProject andwillbeupdatedannually. Theopinionsexpressedinthisreportrepresentthoseofthe industryparticipantsinterviewedandtheauthors.Thesedonot necessarilyrepresentthoseofCoriolisLimitedortheNew ZealandGovernment.
Note:Sectorsanalysedinmoredepthonarotatingschedule,in2011this includedSeafoodandNutraceuticals
TABLEOFCONTENTS
Section Contents Glossaryofterms Methodology&datasources F&BIPOverview Definitions Summary&conclusions Nutraceuticals a. Global Situation 20 27 38 Page 4 5 6 7 10 15
64 71 75
b.NewZealandSituation Appendices
TABLEOFCONTENTS
Appendices Appendix1 ProfilesofNaturalproductscompanies Appendix2 Product Profiles Appendix3 Nutraceuticalsfrommilk Appendix4 Sourcesoffirms Appendix5 Exclusions Page 76 96 103 111 121
GLOSSARYOFTERMS Thisreportusesthefollowingacronymsandabbreviations
A$/AUD ABS ANZSIC AU Australasia EAsia EBITDA C/S America CRI CY CAGR FY /GBP IP JV m n/a NA/ME/CA N.H
Australiandollar Absolutechange AU/NZStandard IndustryClassification Australia AustraliaandNewZealand EastAsia Earningsbeforeinterest, tax,depreciationand amortization Central&SouthAmerica(LatinAmerica) CrownResearchInstitute Calendaryear(ending Dec21) CompoundAnnualGrowthRate Financial year(offirminquestion) British pounds Intellectual Property Jointventure Million Notavailable/notapplicable NorthAfrica/MiddleEast/CentralAsia NorthernHemisphere
NewZealand NewZealanddollar Australia,NewZealand&PacificIslands ResearchandDevelopment Turnover SouthAsia(IndianSubcontinent) SouthEastAsia United StatesofAmerica United Statesdollar United Kingdom Yearending Yeartodate
PAGE6
TheAustralianandNewZealandStandardIndustryClassification system(ANZSIC)ortheGlobalHarmonisedCommodity DescriptionandCodingSystem(HScodes)trade/tariffcodesdo NOThaveanyclassificationsthatinanywaycatchfirmsinvolved innutraceuticalsorfunctionalfoods. StatisticsNewZealandcollectsverylimitedinformationon nutraceuticalsorfunctionalfoods(foodsforhealth) Foranexampleofwhatgovernmentcollecteddataonthe sectorlookslikesee: http://www.statcan.gc.ca/pub/88f0006x/88f0006x200900 1eng.pdf Inaddition,insomeplaces,wehavemadeourownclearlynoted estimates. Coriolishasnotbeenaskedtoindependentlyverifyorauditthe informationormaterialprovidedtoitbyoronbehalfofthe
AlltradedataanalysedinallsectionsoftheF&BInformation projectarecalculatedanddisplayedinUS$.Thisisdonefora rangeofreasons: 1. Itisthecurrencymostusedininternationaltrade 2. Itallowsforcrosscountrycomparisons(e.g.vs.Denmark) 3. ItremovestheimpactofNZDexchangeratevariability 4. ItismorecomprehensibletononNZaudiences(e.g.foreign investors) 5. ItisthecurrencyinwhichtheUnitedNationscollectsand tabulatesglobaltradedata Ifyouhaveanyquestionsaboutthemethodology,sourcesor accuracyofanypartofthisreport,pleasecontactTimMorris,the reportsleadauthoratCoriolis,on+6496231848
PAGE7
Investors
Firms
Government
Overview
InvestorsGuide
IndustrySnapshot
Sectors
Dairy Sector
Meat Sector
Seafood Sector
Produce Sector
Beverages Sector
Nutraceuticals Sector
Markets
GlobalMarkets
HighPotentialMarketProfiles
PAGE8
Note:Everyyeartwosubsectorsarecompletedinmoredetail.SeafoodandNutraceuticalsin2011
Investors
Firms
Government
Overview
InvestorsGuide
IndustrySnapshot
Sectors
Dairy Sector
Meat Sector
Seafood Sector
Produce Sector
Beverages Sector
Nutraceuticals Sector
Markets
GlobalMarkets
HighPotentialMarketProfiles
PAGE9
TABLEOFCONTENTS
Section Contents Glossaryofterms Methodology&datasources F&BIPOverview Definitions Summary&conclusions Nutraceuticals a. Global Situation 20 27 38 Page 4 5 6 7 10 15
64 71 75
b.NewZealandSituation Appendices
Allnaturalproductsareasaretrickytodefine,theyhavesuchahugescope,andlotsofsmallplayers.CEO,NZCompany
PAGE11
WHATARETHEY? Weareusingthefollowingdefinitionsasthebasisforoursectoranalysis
Definitionsusedinourresearch
(2010) Therearealotofproposeddefinitions,manyconflicting orvague;wehaveeffectivelyadoptedthedefinitionused byHealthCanadaasthisistheonlyofficialgovernment definitionavailable3
RFPTerm Nutraceuticals
Coriolisdefinition moredetailed Productthatispreparedfromfoodsandother natural products,butisisolatedandsoldintheform ofcapsules,tablets,orpowders,orinotherdosage formsnotnormallyassociatedwithfoods. Anutraceuticalisdemonstratedtohavea physiologicalbenefitorprovideprotectionagainstills orassistwithgeneralhealthandwellbeing. Foodsfortifiedwithaddedorconcentrated ingredientstofunctionallevels,whichimprovehealth orperformance. Foodsthat,byvirtueofthepresence of physiologicallyactivecomponents,provideahealth benefitbeyondbasicnutrition. Addednutraceuticalareoutsidestandardrecipeor formulation.
Comments/Notes Weincludewithinthis definitionallessential nutrients(vitamins,minerals, Linolenic acid1,etc.)and othernonessentialnutritional supplements Weexcludeindustrial proteins2 Weexcludenonhealthrelated functionalfoodswherever possible(forexampleRedBull andVenergydrinks)
Foodswithadded nutraceuticals
Functionalfoods
PAGE12
MODEL Nutraceuticalsexistattheintersectionoffoodandmedicine
Proposedmodelofnutraceuticalsandrelatedclassesofhealthrelatedproducts
(model;2010)
Modern medicine
PAGE13
Source:Coriolis
EXAMPLES Examplesofallthesetypesofproductcaneasilybeidentified
Definitionsandexamplesofterminologyusedinmodel
(2010) Category Nutritiousfoods Definition Conventional foodfromnaturalsources containingessentialnutritionalelements Conventionalfoodsstronglyassociatedwith specifichealthclaims Conventionalfoodstowhichhighconcentration nutraceuticalshavebeenaddedtogivehealth benefits Plantandanimalextractswithhistorical traditionofbeingusedforhealth Nutrientrequiredfornormalbodyfunctioning thatcannotbesynthesisedbythebody(atallor inadequatequantities) Isolatedcompoundspresentedinsemior pseudomedicalform Foodorfoodderivativesthathavebeenthrough somelevelofclinicaltrials Patentedchemicalsubstanceintendedforusein medicaltreatmentwhichhavebeenthrough stagesIIIIclinicaltrialsandaregovernment approvedforuse General examples Foodswithstronghealth related links Apples aspartofahealthydiet(An appleadaykeepsthedoctoraway) OrangesandvitaminC OceanSpraycranberryjuiceand urinarytract infections KelloggsAllBranandfibre Yakultprobiotic drinkingyoghurt ResVes WineTime chocolatebarwith Resveratrol WalMartSpringValleyorganic flaxseed oil GNCAlphaLipoic Acid(toaidwith weight loss) BayerOneADay complete womensmultivitamin SchiffGlocosamine Plus Natures BountyGingkoBoloba NovartisFibersource HNtodispense viaanIVdrip PfizerLipitortreatment forhigh cholesterol(US$12bsalesin2007) NewZealandexamples New Zealandgrassfedbeef
Calciuminmilk
Vitacos Biolane advancedjoint health(containingmusselextract) Comvita MediHoney forwound treatment Amsacrine (onlyidentifiedsuccessful pharmaceuticaldrugdevelopedinNZ)
PAGE14
Source:Coriolis
TABLEOFCONTENTS
Section Contents Glossaryofterms Methodology&datasources F&BIPOverview Definitions Summary&conclusions Nutraceuticals a. Global Situation 20 27 38 Page 4 5 6 7 10 15
64 71 75
b.NewZealandSituation Appendices
Thereisintensecompetitioninthemarket;newbrands, products,compounds,anditemsareconstantlyevolving
Highsectorinnovationwithnewproductsconstantlyemerging; manyproductsarefadsandmanyhaveanaturallifecycle;while Manukaisstillonrise,deervelvethasclearlypeaked TheNewZealandsectorhasproducedanumberofmidtolarge firms Vitaco ($168m;PrivateEquity[NextCapitalAU]) Comvita($85m;NZXlisted) NewImage(82m;NZXlisted) AlphaLaboratories($85m;private)
Consumers/Markets NutraceuticalsaretypicallyconsumedinWesterncountriesby wealthy/citydwellers&agingbabyboomerstryingtorepairthe damageofmodernliving Nutrcaceuticals consumedinAsiancountriesiscultural Consumeroftenlookingformoreproactivehealthsolutionsas medicalcostsrise Consumersoftenpurchasesporadicallyandhaveinconsistent consumption(e.g.acupboardfullofhalffinishedjarsofpills) Twokeychannels:(1)retailsupermarketswhichwanttwokey brandsandprivatelabeland(2)pharmacies/supplements specialistswhichwantawiderrangeofnonsupermarketbrands
ThesectorhasbeenafocusofGovernmentsciencefundingover thepastdecade,butresultsforthisresearch,limitedtodate
Source:Interviews;Coriolis
PAGE16
Opportunities Largewastestreamsfromexistingfoodandbeveragemanufacturing Expansionintohighdemandnutraceuticalsmarkets(e.g.EastAsia) Native,uniqueplants Researchintokeyhighpotentialproductswithproventrackrecord(e.g.manuka honey,blackcurrants) MarketingNewZealandsuniqueenvironmentandproducts MarketingtotouristsinNewZealand Onlineshopping CountryofOriginlabellingsupportingNewZealandproducts Specialdietaryrequirements(e.g.foruseinretirementhomes,hospitalsetc.)
Source:Interviews;Coriolis
PAGE17
Buildstrongconsumerperception ofhealthbenefitsofproduct(e.g. cranberries)throughwider exposure Sellmorevolumetoconsumers Rollup strategybylargerfirms andemergingleaders Driveeconomiesofscalearound productionandmarketing Firmsworktogethertojointly marketNZassuppliers Similar towineindustry
Lowbarrierstoentry(currently)
PAGE18
Source:Interviews;Coriolis
Manukahoney Manukahoneyisachievingcutthroughandstrongconsumer acceptance;consumersgettheconcept ProductishighlydefensibleasitisonlyinNewZealand(&AU) Productionfragmentedacrossawiderangeofgeographically dispersebeekeepers;low/noopportunitieshere InproductionComvitaislargestfirm;another4firmsatanyscale Greenlippedmusselextract Wastestreamofproductionofgreenlippedmussels ProductisdefensibleasitisonlyinNewZealand;however,wide rangeofcompetingproductsinjointmobilityspace Dairyrelated Widerangeofdairyderivedorrelatednutraceuticalsbeing developedorpromotedinNewZealand Consumersuccesstodateprimarilycolostrum;leaderisNew ImagesellingviadirectmarketinginAsia Otherdairy(bioactivemilkcomponentsandprobiotics) controlledbyfarmerownedcooperatives Beyondthesethreeprovensuccessinthemarket,opportunities aremorespeculative
Wastestreams&byproducts Clearestopportunityisinaddingvaluetowastestreams emergingfromexistinglargefoodproductionindustries Seafood Meat Dairy Fruit(kiwifruit,apples) Largeamountofwastegiveeconomiesofscaleinrefiningand processing NZUnique NewZealandhasawiderangeofplantsandanimalsfound nowhereelseonearthduetoNewZealandsisolatedlocation Hugerangeofuniquenativeplants Widerangeofseaorganisms Extractionfromnativelandanimalslikelyrejectedfornon
PAGE19 Source:Interviews;Coriolis
TABLEOFCONTENTS
Section Contents Glossaryofterms Methodology&datasources F&BIPOverview Definitions Summary&conclusions Nutraceuticals a. Global Situation 20 27 38 Page 4 5 6 7 10 15
64 71 75
b.NewZealandSituation Appendices
NonHerbals 22%
PAGE21
Source:Nutraceuticals:TheCompleteEncyclopaedia(PenguinPutnam2001);Coriolisanalysis
USASupplementsindustrysalesgrowthbycategoryinspecialist supplementstores
(US$m;2009vs.2010) Highgrowthsegments Digestiveaidsandenzymes 16%
Prebioticsand probiotics
Minerals $2.25 8% Meal replacements $2.81 10% Vitamins $9.55 34% Sportsnutrition $3.09 11%
Mealreplacements
14%
RTDand powdered
Vitaminsandminerals
11%
VitaminsA,D&K
Foodsupplements
9%
AminoAcids
5%
Miscellsupplements
1%
DietFormulations
7%
Total=US$28.1b
Sportsnutrition 14%
PAGE22
PAGE23
Source:variouspublishedarticles;NutraceuticalsWorldmagazine;Coriolisanalysis
WhatshotaccordingtoNutraceuticalsWorld
(1998vs.2010) HotHerbs 1998 Echinacea St.John'sWort Kavakava Ginkgobiloba Ginseng Garlic Sawpalmetto HotHerbs 2010 Acerola Maca Maqui Americanginseng Camu camu Noni Pomegranate Kombucha New &trendy Superfruit
In decline StrugglingagainstViagra Mature Widespreaduseasingredient Mature;slowinggrowth;falling prices Allmajorglobaldairycoopsnow produce Growth slowing Mature
70s80s 1980(?)
Various Australia
1988 1992
NewZealand UnitedStates
Growthslowingbutstill strong Supplyconstrained Firstidentified 1937inNZ Stable Noclearconsumercutthrough Wide rangeofcompetingsources Mature todecline(?) Noclearconsumercutthrough
Kiwifruitextract
2001(?)
UnitedKingdom
PAGE24
Source:Nutraceuticals:TheCompleteEncyclopaedia(PenguinPutnam2001);Coriolisanalysis
Fadorfashion nutraceuticals Appears ontheradarthroughmarketing effortsofcommittedindividual(s) Addedtoindulgentfoodasnewhealth promotingorguiltremovingflavour Traditionalnutraceuticals Emergesfrommainstreamtraditional sources Producttakenas asupplement Product madefromsimpleextractwith vaguehealthbenefits Healthbenefitsunclear,unproven;no scientific evidence Product madefromsimpleextractwith vaguehealthbenefits Healthbenefitsunclear,unproven;no scientific evidence Forexample Nonijuice Kombucha tea
Sciencebasednutraceuticals Emergesfromscientific researchprogram Productadministeredinmosteffectiveform Single compoundisolatedwithspecific claims Compoundcompletes clinicaltrialsandis fullymedicallycertified,usedinhospitals
PAGE25
Source:Coriolis
FADORLONGTERM? Therearestrongindicatorsastowhetheranewnutraceuticalisalikelytobeafadoralongtermsuccess
Requirementsforsuccessinnutraceuticalstoday
(model) Indicator Details Example
Indicatorsforfadorfashionproduct(boom andbustcycle) Traditionalwisdom Scenicsource Unsubstantiated claims Productderived fromindigenoustraditionsinfarawayland Sourceofproductissourcedfromhighlyscenic,romanticor mysterioussource Unsubstantiated claimsproductiscureformajor heretoforeincurableconditions New productmakeswiderangeofhealthclaims Aa berriesconsumed bytraditionalpeoplesof Brazilforcenturies Hawaiian coffeecherry(aka.unroastedcoffee) Siberianpineapple(akaseabuckthorn) Promotionalmaterialclaiming thatTahitianNonijuicecouldtreat, cureorpreventnumerousdiseases,includingdiabetes,clinical depression,haemorrhoidsandarthritis Gac fruitpromoteenergy,enhancetheimmuneandliverfunctions andcanbeusedtotreatskindiseases
Multiple claims
Indicatorsoflongterm success(notafad) Immediateeffect Alignedwithpreexisting concepts Actual functionality Growingscientific support Productprovidesimmediately orrapidly noticeableeffect to consumer Newusagealignedwithhistoricconsumerbeliefsystemor productassociation Productdeliversonpromisedhealth benefits Growingbodyofscientificevidencereinforcingclaims Clinicaltrials Caffeineinenergydrinks Activa Fruitandhealth Yoghurtandhealth Cranberriesandurinarytracthealthinwomen Manukahoneyandwoundhealing
PAGE26
Source:Coriolis
TABLEOFCONTENTS
Section Contents Glossaryofterms Methodology&datasources F&BIPOverview Definitions Summary&conclusions Nutraceuticals a. Global Situation 20 27 38 Page 4 5 6 7 10 15
64 71 75
b.NewZealandSituation Appendices
Supplements wholesaler
Pharmacies& drugstores
Distributor wholesaler
Healthproducts retailers
Supermarkets/ otherretailers
Seafreight Airfreight
Pharmacies& drugstores
Food&beverage manufacturer
Healthproducts retailers
Supermarkets/ otherretailers
International markets
PAGE28 1.Theremaybeoneormorelayersofwholesaling,dependingonproductormarket;somewholesalefunctionsmaycaptiveinsideretailers;Source:Coriolis
Food&beverage manufacturer
NutraceuticalsderivedfromNZnativespecies
(2010) Species Leptospermum scoparium Pseudowintera colorata Perna canaliculus Podocarpus totara Product Manukahoney Horopito Green lipped musselextract Totarol Origin TreenativetoNZ andAU TreenativetoNZ ShellfishnativetoNZ Tree nativetoNZ Substancenowknowntooccurin rangeofplants(e.g.rosemary)
PAGE29
1.Definedasbeingexportedinanycommercialquantity
45
7,600 (USA) 6,000 (USA, other) 3,250 (UK,other) 1,600+ (UK) 1,149 (Canada) Onlineonly (Singapore)
75
1(seedoil)
1(as ingredient) 2
126
80
17
72
15
18
2(1seedoil)
6 (Healtheries; other)
1 (Ripple[NZ])
1(as ingredient)
5 (Comvita; Woodlands)
Manufacturing focus Contractpacker Firmprocessing/packing supplementsintoaconsumer readyform(capsule,pills,etc.) Large scaleproductionlines usingmodernequipment Efficientmanufacturing processes Largefactorythroughput Ingredientsmanufacturer Firmrefiningraworganic material intoisolated/ concentratedform
IPfocus
Firmspunoutofgovernment fundedresearchwithsome level ofIPprotection StrengthofIPprotection Capitaltofinanceclinical trials Abilitytoraisecapitalfrom governmentorVC Abilitytoselldiscovery Sizeofhealthsegment IP protection Difficultyofproductionor extractionprocess
Barriersto entry Limitedshelf spacealreadyfullofexistingbrands Retailerswantingfewernotmorebrands Achievingscaleto beabletovisitindividualaccounts/stores Governmentregulations Certificationrequirements Capital cost Existingcontractsand relationships Ifgeneric,global manufacturer withlargest scaleinproduct(e.g.vitaminc) Ifregionspecific, regional refiner/processorwithlargest scale
Percontract packerplus Locationnearraw material supply(ifperishable) Accesstorawmaterial(if wasteproductofexisting process) IPprotectionaroundprocess orproduct Limited marketsize controllingnumberofrefiners possibleatscale ProcessorproductIP Capitalrequirement Firmswithaccesstoraw materialsfromexisting activity Firms alreadyrefiningsimilar products FirmswithstrongIP
Winners
Strugglers
FirmswithoutstrongIP
PAGE31
Source:Coriolis
EVOLUTIONOFFIRMSANDBUSINESSMODELS Firmsinthenutraceuticalsspacegothroughcommonevolutionarypathways
Simplifiedmodelofhownutraceuticalfocusedfirmsevolveovertime
(model) StageI StageII StageIII StageIV
Marketingfocus
Newcategoryofnutraceuticalis discovered1 orcomestolightdueto researchornewwasteproduct becomesavailable2 Passionateindividualdevelopsstrong beliefinproductduetopersonal experience Startup isformedanddevelops prototypeproductionequipment Productiscontractpackedbyothers Firmachieves initialsuccessduetolack ofcompetitionandnoveltyfactor Categorybecomesmorecrowdedas newfirms enter Newfirmsusecontractpackersrather thaninvestinproductioncapacity Categorygrowthrateslows asnovelty wearsoff(nolongerthenewthing) Firmseitherinvestinownproduction capacityorremaincontractpacked Firms oftenmoveintoalternative marketinganddistributionsystems (e.g.online,multilevelmarketing) Largemarketersnoticecategoryand launchproducts Existing playerslaunchnewproducts innewcategoriestoleveragefixed costs Smallermetooplayersstruggle and oftengooutofbusiness Effectivenessofproductisquestioned orchallengedbyfurtherresearch Nosingleproductfirmsremain; survivingstartupsnowbroadrange marketers Nowjustaflavourforexistingbig players Producthas founditslevelinthe marketwithgrowthatorbelow generalsectorgrowth
Manufacturingfocus
Personwithengineeringor manufacturingexperienceidentifies specificnicheprocessopportunity Startupisformed,oftenusingmixture ofofftheshelfandselfdesigned equipment Firmhashighcapitalcostrelativeto sales Firmseeksvolumebyfullyleveraging capabilitiesofprocess/equipment Firmexpands intonewunderserved areas Handsonfounderensuresproduction processisinnovativeandefficient Fullserviceonestopshopproduct development/packagingdesign Industryconsolidation Firmsnow large,fullrangesuppliers IncreasingemphasisonR&D Attemptstodevelopproprietary ingredients
IPfocus
Governmentfundedresearchleadsto newproductorprocessIP IPisrelativelyweak(i.e.nota patentabledrug/NME3)
PAGE32
Honey $170
Dairy $200
TOTAL=$1,100m
PAGE33 Source:Coriolis
$85
$82
Other29 firms
$85
$85 $200
TOTAL=$1,100m
PAGE34 Source:Coriolis(byaddingupeverycompanywecouldfind seeelsewhereindocument)
DeerVelvet (HS0507.90)
$18 $16 $17 $15 $15 $19
$121 $75
$68
20002001200220032004200520062007200820092010
PAGE35
$57
20002001200220032004200520062007200820092010 $9 $9 CAGR
20002001200220032004200520062007200820092010 $6
Vitamins (HS2936)
FishOil (HS1504.10+HS1504.20)
CAGR $3 $4 $3 $3 $5 NaturalVitamin Concentrate 7% $2 $3 $3 $1 $2 $2 $3 $2 FishLiverOil 39% $4 Total 9% $6 Total 9%
$6 $5 $3 $3 $3 $3 $2 $2 $2 $2 $5 $4 $5 $1 $1
$5 $5 $5 $1 $1 $5
$4 $4 $4 $3 22% 8%
$2 $1 $1 $1 $2 $0 $1 $0 $2 $2 $1 $2 $2 $2 $2 $1
$3 $2 Fishoil $1 3%
20002001200220032004200520062007200820092010
1.Fromourresearchweunderstandthisisprimarilynutraceuticalshoweveralsocontainsfoodingredientsandothersignificantnonnutraceuticals.Source:UNComtradedatabase; Coriolisanalysis
Nutraceuticals1 exportsbyregion
(US$m;20002010;definedonpreviouspage) $369 $357 $106 $356 $354 TOTAL
$111
$139
EAsia
12%
+$95m
24%
+$27m
$84
$18
$136
$64 $44
$10 $10 $41 $32 $107
$148
$32
$5 $14
$50 $24 $4 2005 $29 $4 2006 $6 2007 $25 $7 2008 $27 $6 2009
$29 $8 2010
$5 $1 2002
$8 $1 2003
$15 $3 2004
1.Seechartpreviouspage;Includes:foodpreparationsnecin22106.90(substantialnonnutraceuticalcomponent);Source:UNComtradedatabase;Coriolisanalysis
Wereallyneedtofocusoureffortsto achievethisgrowth.
PAGE37
Source:Coriolisanalysis
TABLEOFCONTENTS
Section Contents Glossaryofterms Methodology&datasources F&BIPOverview Definitions Summary&conclusions Nutraceuticals a. Global Situation 20 27 38 Page 4 5 6 7 10 15
64 71 75
b.NewZealandSituation Appendices
1
TheIndustrymustbelegitimateand credible Present Outdatedlegislation Fragmentedproductlevelstandards Complexexportcountryrequirements
2
Industrycollaborationandconsolidationis required Highly fragmented Smallunderresourcedcompanies Unsophisticatedbusinesses
3
Industryandsciencemustalign Limitedcollaboration Limited commercialisationsuccessstories Lackofknowledgeofeachothersbusiness
Future
Clearanddirectionallegislation (e.g. proposedNaturalProducts ReformBill) Individualproductsaligningstandards(e.g. honeyindustry) Informationprovidedtoassistin interpretingandunderstandinginmarket rules NZseenasalegitimate,trustedandsafe industry
PAGE39
Source:Coriolisanalysis
OBSERVATIONS Observation1:theindustrymustbecomelegitimateandcredible
PAGE40
1 WHATARENATURALNEWZEALANDPRODUCTS?
Allindustryparticipantsspokenwithwantcustomerstoseethemasalegitimate industrywith acredible and uniqueproduct
Commonphrasesusedbyindustryparticipantsininterviews
(2011)
secure
unique
unadulterated
PAGE41
Source:Interviews
1 LEGITIMATE&CREDIBLE
TheNZindustrymustexistwithinalegitimateregulatoryenvironment
Itisimportantthatwearelegitimate.Theindustryhastobesustainable,traceable,transparent,beconsciousofanimalwelfareetc.Wegot intotroublewithourpossumskinsbeingsprayedredinstores,evenecofurisfur.Withdeervelvet,thereneedstobeanimalwelfare considerations.Withthesharkcartilage,itneedstobesustainablyharvested.Industryrepresentative,NZ,2011 Australiahasthebestregulatoryenvironmentintheworld.NewZealandisabouttoupgradeitsBill.Itsthewildwestin NewZealand,there aresofterregulationsthaninChina.Youcanmaketabletsinyourbackyardandgetawaywithit.Weneedtobereplicating Australia'sTGA [TherapeuticGoodsAdministration].Ourmanufacturingstandardsneedtobehigher.Weneedcredibility andtomaintainareputation internationallyasexporters.Yougetthatbyhavingagoodregulatoryenvironment.CEO,mediummanufacturing/marketingcompany,2011 Youhavetostepuptothemarkorgetleftbehind.Industryrepresentative,NZ,2011 SomepeopleopenacompanyinNewZealand;theyputthecompanyaddressonthelabel,soitslookslikeitismadeinNewZealand.Thisis misleadingthepublic.Thereneedstobegovernmentregulationonlabeling.Youshouldhavetohaveamanufacturingnumberandhave countryoforiginonthelabel.ItallhurtsNewZealand. CEO,Mediumsized,manufacturingcompany,2011 Thereisalotofsnakeoilunderthedietarysupplementregulations.Manager,largemanufacturingcompany,2011
PAGE42
1 LEGITIMATE&CREDIBLE
CompaniesfeelBrandNewZealandisatriskfromdodgyoperatorsandcounterfeiting
Thereisthedodgy colostrum. CompaniesbuyNZskimandwholemilkanduseimportedcolostrumandsellitasProductofNZ.Who knowswherethecolostrumisfromandwhatthedairycowshavebeeneatingwhiletheyareinthebarns?ConsumersknowNZdairyproducts areallfreerange,pasturefed.Thatishappeningwithbeepropolisaswell.ManagingDirector,NZCompany,2011 HowdowesellNZInc.iftheproductisnotgrown inNZ? LabelsshouldntbesayinggrowninNZifitsnot.ThatisarisktoNZInc.Industry
representative,NZ,2011
CompaniesarecuttingcostsbystartingtomanufactureinNewZealand,butthefactoryisntevenstainlesssteel.Whatsortofdodgy plantis that?MarketingManager.,mediumsizedmanufacturingcompany,2011 HoneycompaniesarebringingintheirRoyalJellyfromChina;colostrumfromtheUSischeaperthanNZColostrum,soitsbroughtintoNZ. NotsurehowthatismadeinNZ?GM,Mediumsized,NZCompany,2011 SomecompaniesarenotsourcingNZmadeproduct. Weneedtogetridofalltheshitplayers. Wehaveareallybigproblemof misrepresentationofNewZealandgloballyanditcouldreallydamageusinthenext510years. Wemightnothaveanindustry.Marketing
Manager.,mediumsizedmanufacturingcompany,2011
PAGE43
1 LEGITIMATE&CREDIBLE
TheNaturalHealthProductsBillwouldappeartoaddressmanyoftheconcernsofindustry
MinistryofHealthdevelopment oftheNewZealandNaturalHealthProductsBill PurposeandPrinciple Thepurposeofthebillistoprovideassurancetoconsumersthatnaturalhealth productsaresafe,truetoclaimandtruetolabel. productapproval,basedonnotificationofproductsonadatabase recognitionofthedecisionsoftrustedoverseasregulators,whereappropriate alistofprohibitedingredients alistofpermittedingredientsandaprocessforaddingnewingredients alistofpermittedlowlevelnaturalhealthproductsclaims labelingrequirements advertisingrules exportcertification,whereitwouldassistcompaniestoaccessoverseasmarkets atailormademanufacturingcodeofpractice PasseditsfirstreadinginSeptember 2011
Keyelementsoftheproposed schemeare:
NextSteps
PAGE44
1 LEGITIMATE&CREDIBLE
Exportersfindinternationalregulationsandstandardsareverydifficulttokeepupwith
Itsverydifficult,therearecountrytocountryregulations,theyaredifficulteverywhere.InplaceslikeChinatheregulationschangeallthe time.Itsnotclearwhattheregulationsmean,theyarenottransparent.Therecouldbegovernmentassistancetohelpwiththis. Iftheyhelped outitwouldbenefitmany.CEO,Mediumsizedmanufacturingcompany,2011 Somecountriesaresuchapaintogetinto.ItcantakeacoupleofmonthstogetoneproductintoChina,butdoitrightandyouareOK.The corruptionisdisgraceful.MarketingManager.,mediumsizedmanufacturingcompany,2011 Therearemassiveregulatorybarriersinthesector. Manager,largemanufacturingcompany,June2011 Noclaimsgetthroughonthelabeling.Animmunitymedicalclaimmakesaproductpharmaceutical,butimmunitycanbeatherapeutic goodItiseasyforaproducttooverstepthemarkwiththeirclaims.Sometimestheydontliveuptotheirevidence.Manager,large
manufacturingcompany,2011
PAGE45
1 LEGITIMATE&CREDIBLE
Thehoneyindustryhavebeenincourtoverratings,standardsandpaymentsforanumberofyears
"Overthepastyear,theassociationhasspentsignificantsumsofmoneytoemployprofessionalinvestigatorsandtakeaction to removelicense holders'rightstousethemarkiftheirproductwasfoundnottobetruetolabel,"JohnRawcliffe,AMAHGM,Dec2008 Theindustryhadbeenstunnedbytheendingofa15yearrelationshipbetweenProfessorPeterMolanandtheActiveManukaHoney AssociationwhichrunstheUMFtestsystemhecreated.KerryPaul,CEOManukaHealthNZ,article,Dec2008 Theindustryleadersmustthinkofthecollectivegood.ThepresentsituationisnotgoodforanyoneanditputsNewZealand'sreputationat risk. NationalMPPaulHutchison,article,May2009 [Theindustry]hasgotallthepotentialofbeingaverylargeandsustainableindustryforNewZealand,reforestingNewZealandandbringing employmenttopoorercommunities.Ifwecouldjustalignourinterestsandstopthesquabbling,everyonecouldbenefit.BrettHewlett,Comvita
article,May2009
Thefeudingisafinancialdrainontheassociationandthecompaniesinvolved,thebiggestrisktothemanukahoneyindustrycomesfromthe amountofdubiousmanukahoneyontheshelves,andawarringindustrycannotdealwiththat. article,May2009 ProfessorMolansaid[byhavinganindependentsystem]hewasactinginthebestinterestsoftheindustry:"Ifpeoplearehavingdoubtsabout thecredibilityandreliabilityofwhattheyarebeingtold,theywillstarttowonderiftheycanbelieveanythingtheyhave beentoldabout manukahoney.Thatthreatisparticularlypointedasthehighestvalueuseformanukahoneyisinwounddressings,soanytaint ofscandal couldbehugelydamaging.article,May2009 Thebehaviourofthehoneyindustrycompaniesisappauling,itsadisaster.Theyneedacommonstandard,theyhaveUMFfactor,andMGO ratingsystemwhoknowswhatelse.Theyaresendingmixedmessages.Theyneedtoworktogetherandcoordinate.Comvitadidsuchadam goodjobbutfelloutwithWaikatoUniversity.Theytookthemtocourtandlost.Theindustryissuffering.ItsnotuntilyougetoutofNZthat yourealisehowtinyweareandrealisethatweneedtoworktogether.EveryoneisreallycompetitiveinNZbutourcompetitionshouldbethe worldnoteachother,wearetoosmall.CEO,NZCompany,June2011 ComvitaandWaikatoLinkinthehighcourtoverrepresentationsofresearchresultsinvolvedwithisolatingandclassifyingtheactivecompound behindUMFManukahoney(resolvedinJune2010). Honeyputsuchnegativemediaontothemselves,alltheinfightingandthepublicspats.Theyreallyneedtoworktogether.Theyarenotdoing themselvesanygood.IndustryRepresentative,June2011
PAGE46
1 LEGITIMATE&CREDIBLE
Thereiscallfortheexistinghoneyclassificationsandstandardstobealigned;itiscurrentlyconfusingconsumers
Thehoneysectorneedsto worktogether,itisadisgrace. CEO,NutraceuticalCompany, June2011 Company Trademark Example standards Measures methylglyoxalcontent Notes DevelopedinUniversityof Dresden 2007
28NZlicensedusers
PAGE47
1 LEGITIMATE&CREDIBLE
Manyplayersfeelthatsciencewilllegitimiseproductsandaidsales
Itisimportantthatwehaveabiastowardsclinicalbasedevidence.Wecantbecompetingfromthebottomend,weneedtobeupwiththe sciences.Pseudosciencegetsdiscredited,ifsomethinghasdodgyefficacy,andwillbefoundout.Clinicaltrialsandrealsciencehasvalidity.We havetodifferentiateourproductswithscience.Onceyouhavescienceitislikeabarriertoentryforothers.Industryrepresentative,NZ,June2011 Ourmainbasisisfindingscientificfoundations.Weadoptascientificapproach.Ourkeydevelopmentistocomefromanaturalproducts perspectiveusingstrongtechnologylikecombiningmanukahoneyforwoundcare.Thereisabigopportunitywithprofessional organisations; hospitals,theretirementsector,burnsfacilitiesetc.WeusethesciencecapabilityinNZandoffshore.TherearehugeopportunitiesinMedical Foods,cosmeceuticals,ingredients.Thereislowmarketawarenessofmanukahoney,theopportunityishuge.MD,HoneyCompany,June2011 Towinyouneedscience.Fiveyearsagoitdidntmatter,butnowyouneedsciencetobackyouup.Youcansourceyouringredientsfromabig companythathasdonethescienceandusethat.CEO,largemanufacturing/marketingcompany,2011 WellresearchedsupplementssuchasvitaminD,fishoilandomega3swillcontinuetopostrobustsalesinthefutureatestamenttothefact thatgoodsciencehelpsdrivebusiness.CouncilforResponsibleNutrition,USA Naturalmedicineshavetobeevidencebased.Thisistheonlyway.CEO,mediummanufacturingcompany,2011
PAGE48
1 LEGITIMATE&CREDIBLE
Honeycompaniesaremovingintowoundcareandhoneyimpregnateddressingsandbandages
Company
Brand
Example
OBSERVATIONS Observation2:industrycollaborationandconsolidationarerequired
PAGE50
2 CONSOLIDATION
Manycompaniesidentifiedscaleasoneofthebiggestissuesinthesector
ScaleisahugeissueinNZ.Iwouldlovetoseemoreverticalintegrationrightthroughfromtherawmaterialtothebrands.Industry
representative,NZ
ItisverydifficultforsmallNZnutraceuticalscompaniestoexportbythemselves,thereissomuchtoknowandlearn.CEO,Mediumsized,
manufacturingcompany
WearenotpioneersinR&Danymore.Wedonthavebigenoughcompanies.Theyareallpiddlyassplayers.MarketingManager.,mediumsized
manufacturingcompany
Youhavetohavescaleandvolumetobecosteffectiveinyourplant.ItismorecosteffectivetobeinNZthanAustraliawith plants.CEO,
Mediumsized,manufacturing/marketingcompany
Thesmallercompaniesareapain,theyareentrepreneurswhoplaythemarketanddevelopastorywiththeirnutraceuticalproductandtryto getthemessageout.Butthescienceisreallydifficult.Iftherewasrealsciencethebigcompanieswouldbeinthere.BusinessManager,medium
sizedmanufacturer,NZ,June2011
Inourbusiness,weneed4050productsthroughdifferentstagesoftheirlifecycle.Weneedtohavethatcriticalmasstomakemoney.
BusinessManager,mediumsizedmanufacturer,NZ,June2011
PAGE51
100
150
200
250
300
350
400
50
2 CONSOLIDATION
(actual#;mostrecentyearavailable)
Employeenumberofidentifiedindustryplayers
ThemajorityoftheidentifiedNewZealandcompaniesaresmall,therearefewcompanieswithanyscale
PAGE52
Vitamins,minerals &supplements
Vitaco RedSeal IntegriaHealthCare GoodHealth NewImageGroup NZNutritionals Lifestream ImmunoLaboratories Health&Herbs Douglas Xtendlife HealthWorld Phytomed Evergreen Horleys Nature'sSunshine DeepBlueHealth Artemis Naturies GOHealthy Abeeco TheYoghurtCapsule Iconherb NatureSource Nutressence Homecare NewZealandHealthFoodCo NZNewParadise SkybrightNaturalHealth Immunecare NZHealthNaturally
1.Estimateoftotalemployedinnutraceuticalsinthedairyindustry
Manufacturing
AlphaLaboratories GMPPharmaceuticals NewZealandPharmaceuticals UnitechIndustriesLtd TauraNaturalIngredients Alaron Nutrizeal PharmaZen(WaitakiBiosciences) GenesisBioLab RMFNutraceuticalsNZLtd ExtractsNZ ClaridgesOrganic UBBio MarketNZ
IP
BlisTechnologies Quantec SeperexNutritionalsLtd Somnaceutics SupremeBiotech Anagenix EnCoate MigcoPharmaceuticalsLtd PhotonzCorporation SpiersNutritionalsLtd
Honeyproducts
Comvita HoneyMark Watson&Son/Manukamed AratakiHoney ManukaHealth Airborne HoneyNewZealand Mossop's PackageBees NelsonHoney&Marketing(NZ)Ltf NewZealandHoneyCo PureNewZealandHoney HappyVallyHoney Honeylands BeeWild Haddrell'sofCambridge WaitemataHoney AlpineHoneySpecialities BeeHealthy WaitakiHoney Manu StrathdaleHoney TheHoneyCompany SummerGlowApiaries HappyFamilies Nature'sCountryGold OtagoHoneyProducts MilburnAviaries ApiHealth AutumnValleyHoney Honeyland TotalDairy
VitalFoods FunctionalWholeFoodsNewZealand Aroma JustTheBerries Seadragon Enzogenol Silberhorn Agrilab AoteaPacificLtd En'ZaqAquacultureLtd NZExtractsLtd(MudHouseWines) OilSeedExtractionLtd(MidlandsHoldingsLtd) Biovittoria PureVitality BioOils ForestHerbs MountainRedNewZealand Hubris GrowthFactorMatrix Nature'sGreenz GreensforLife EssentiallyNZ EvolutionaryHealth.OrgLtd
2 COLLABORATE
IntervieweesidentifiedtheneedformorecollaborationamongNewZealandfirms
ItsarealshamethatsomeofthebiggercompanieslikeFonterra,Talleys,Sealord,Sanford,alotofbigplayersdontnurturesmaller companiesandassistthisoffsideindustry.Theyshouldbebuildingcapabilitiesandknowledgenow,understandingthemarket,develop relationships,potentialcustomersetc.Thereislowtonosupport;theindustryisbarelytolerated.Theyare50yearsbehindtheworldleaders. Itissad,frustratingandirresponsible.CEO,mediumsizedmanufacturingcompany,2011 InNZwetendtothinkthatthecompanydowntheroadiscompetition,theydontwanttoshareanything,butiftheyunderstoodeach othersbusinessandstartedwithlowriskarrangementslikesupplychainthenmoveintomorehighriskventuresitcouldwork.Theyslageach otherbutifsmartenoughtheywouldworktogether.IntheUSacompanywilltake5%inNZtheywant50%ownership.Industryrepresentative,NZ Theeconomicargumentforthesectorisnotalwaysclear.Itisdifficulttogetshelfspace,thereisalotofcompetition,therearesomebig namesinthearea.WehavesomesmartcompanieslikeVitacoandComvita,theyraisethesector.Canothersleverageofftheirbrands? Maybeweneedtostopcreatingnewbrandsandstartleveragingtheoneswealreadyhave.Whynotworktogethermore.Industry
representative,NZ
ThereisamentalityinNZ,itisaprotectiveattitude.Theywanttodoitall,ornotatall.Theseafoodsectorwontworktogether.Theyshould worktogetherandshareprofits,itwouldmakesuchabigdifference.Seafoodresearchisdifferentfromtheircorebusiness. Theyare commodityplayers,topullouttonnesoffishandputafewasideforusistoohard,whybother.Scientist,NZ Wecanworkasateamwithinmarket sales.Wecangetreallygoodpeopleinmarketwhoareproductspecialistssupportingafew companies.Itsexpensivebuteffective. Scientist,NZ WegivecompaniesthepotentialtoexportintoChina.TheyuseoursystemtodistributeandaccessChinafromNZ.Itisachallengeforasmall companytogetintoChina,therearelotofbottlenecks.WehaveopenedstoresinChinatosellNZandAustraliaproducts. CEO,mediumsized
manufacturingCompany
PAGE53
2 CONSOLIDATION
Thereareawiderangeofpointsinthesupplychainthatwouldbenefitfromincreasedeconomiesofscale,either throughcollaborationorconsolidation
Keyareasofsupplychainfordrivingeconomiesofscaleinnutraceuticalssector
(model)
Production
Sales
Marketing
PAGE54
2 NUTRACEUTICALS TRANSACTIONS
TherehavebeenahandfulofidentifiedtransactionsinthenutraceuticalssectorinNewZealand
Recentmajornutraceuticalindustrytransactions
(20062011)
Date 2011 Apr2011 Feb 2011 Acquirer Comvita Tate&Lyle AmajorBritishlisted firm NewImage NewImage Target KiwiExtracts(ExtractsNZ) BioVittoria omega3fishoilintellectualproperty andprocessingtechnologyfromSpeirs NutritionalsPartners SomnaceuticsLtd 50.01%ofLivingNature N/A Price N/A Details Acquired remaining67%shareofbusinesstosecurepropolissupplychain Agreementforglobaldistributionandsales;marketunder T&LPurefruitbrand.12%stake Selling omega3fishoilintellectualpropertyandprocessingtechnology SpeirsNutritionalshasrightstocommercialisetechnologydeveloped bytheRiddetInstitute,basedatMassey University,thatallowsomega3oilstobeincludedinnormalfooditemswithnoimpactontasteorsmell IncludesSomnaceutics'patentsandintellectualpropertyonSleeptime, anaturalsleepenhancingmilkproduct developed inNewZealand byscientistProfessorBobElliott LivingNatureisbasedinKerikeriandisthemanufacturerofnaturalskincareproductsforovertwodecades ThefirmusesarangeofingredientsitcallsLivingNaturethatsimplyreferstorareNewZealandbioactiveingredients thatareattractivetointernationalclients. WestlandMilkProductsacquirestheremainingsharesofEasiYo, takingownershipto100% Danishbiobasedcompanyacquires17%shareinPlant&Food spinoffGraceLinc,setuptocommercialiseGlucagel a solubledietaryfibrethathaspotentialhealthbenefits,particularlyforcardiovascularhealth, digestivehealthand glucoseandweightmanagement Nolongerinbusiness NZs largestpharmaceuticalfirmacquiredsecondtiersupplementsmarketer/manufacturerwithCliniciansbrand AcquiredThompsonGroup vitaminsandsupplementsbusiness; ChangednametoIntegra Healthcare Branded sportsnutrition andweightmanagementproductsthattradesundertheHorleys brandname AcquirerisMalaysian/Singaporelisteddairy/F&BfirmwithorigininMalaysian condensedmilkbusiness Rollup oftwo smallerfirmsintolargerfirm;renamedVitaco ConsistsofNutraLifeHealth&Fitness,NutraLifeNZLtdandHealthinternational ManufacturessupplementsandhealthfoodswithstrongbrandssuchasNutraLife,Kordels,Balance,Wagnerand Trilogy NutraLifeshareholder MikeThompsonbecomes 20%shareholder innewcombinedentity EstablishedinNewZealandin1904 NowpartofVitaco Originallyaspecialityflourmillerthecompanyhasgrownintoamarketleaderinsupplements,functionalbeverages andhealthyfoods; Exportsitsproductstomorethan20countriesincludingAU,UKandSingapore
Dec2010 Oct2010
N/A N/A
Jan2010 Dec2008
N/A N/A
June2008 Apr2008 Sep 2006 Dec2006 Douglas Pharmaceuticals ToddCapital/Todd Corporation Etika International NextCapital Clinicians Thompsons fromSanderson family Naturalac Nutrition(Horleys)from Fonterra NZNutraLife N/A N/A NZ$7.8m N/A Oct2006 NextCapital HealtheriesfromGaryLane A$21m
PAGE55
OBSERVATIONS Observation3:thescienceagendaneedstobebetteralignedwiththeneedsofindustry
PAGE56
3 ALIGN
Scienceisimportantbutexpensive
IntheUSAandgettingtostage3clinicaltrialstakes4yearsandcostsunder$5mthisisalotlessthanthe12yearsand$1.2bittakesfora pharmaceuticalproduct.Ifyouhavetheevidenceyoucansellyourproductwithmedicalclaims.Obviouslythistakesinvestment.CEO,medium
sizedmanufacturingcompany,2011
PAGE57
3 ALIGN
Todevelop,theindustryneedsassistance,butthisneedstobedirectedeffectively
Everytimethereisagrant,peoplearescramblingtogetthemoney.Scramblingtogetmoremoneyflusheddownthetoilet.Manager,large
manufacturingcompany,June2011
PAGE58
3 ALIGN
Industryisinterestedinproductswithrealcommercialpotential
NewZealandsciencehastoseriouslylookattheroutetomarket.Ifthereisalreadyaproduct,itisOK. Thereisnoopportunitytodevelopa brandfromdiscovery. Itsaneedleinahaystack. Evenifyoudohaveaningredient,bythetimeitgetstotheendproductatretail,itisa minisculepartofthefinalvalue.Thereforetheproducthastogetintothemainstreamtomakeenoughmoney. Willthathappen?Manager,
largemanufacturingcompany,June2011
PAGE59
3 ALIGN
Therewasawidespreadperceptionthatindustryandsciencedonotcurrentlyunderstandeachothers businesseswell
WesometimespartnerwiththeCRIs,butitnevercomestoanything. Therehasneverbeenaproductthathascomeoutofit.Manager,Large,
manufacturing/marketingCompany
WeworkwithAgResearch abit,butitsdifficulttogetaproductthatturnsintosomethingcommercial.Itshardtogetalltheducksinarow: science,processing,IP,sales. Youneedbasicscienceandpeoplewhoarekeepinguptodatewithwhatishappeningintheindustry. Butwe dontexpecttogetanythingoutofit.Theyhavetohaveabusinesscontact.Theywereresearchinglactoferrin andpurifyingit,butsopurified itwastooexpensiveanditwasntlinkedtocommercialreality.Theyarereallyjustintriguedbythescienceanddocumentingit. Theynow havetogeneraterevenueandtheydontlikethat. Ithinkalotofscientiststhinkthatcommerceisdirty.Weneedmiddleground.Business
Manager,mediumsizedmanufacturer,NZ,June2011
PAGE60
3 ALIGN
Manyindustryplayersfeelthatscienceintheindustrycanworktogethermorecollectively
Weneedcollectivewisdom.Theindustryneedstogettogetherandagreeonadirection,asciencefocuseddirection.Getinvestmentfunds andfundslikeTechNZ,thenbringingroupslikeIRL,PlantandFood,Trinity,theUniversitiestodotheresearch.GroupslikeNZFSAalsoneedto beonboardsotheregulatoryenvironmentisintunewiththesector.Theycanhelpthecompaniesgetcertifiedandcredible.Likewiththe honeygetgreatevidencetoshowmanukas virtues.Weneedtoidentifythegenuinelypowerfulproducts.Thencollaborateinproduct developmentandmarketing.Governmentshouldencouragecollaboration...Industryrepresentative,NZ Wearenotinthemarket,thereisnolinkbetweenus,theotherscientists,andwhatishappeningintherealworld.IfyouwereinanEU businessparkyouwouldtrotdowntheroadandmeetthemanufacturersdealingwiththeproducts.InNZwearetooisolated.The missingbit ismarketingandstrongmarketinformationandsignals.Whattheywant,whowantsit.Thechainfallsapart.Thereneedstobeastronglink betweenrawmaterials,processing,science,productandthemarketenduser.Nutraceuticalscompaniesdonthavetimeorcanaffordtolook forthingsIhavemade.ThereneedstobeacoordinatingbodyliketheDairyBoardusedtobe;theycoordinatemarketing,business development,linkpeopleetc.Itcouldbefundedbyanindustrylevy.Thiswouldhelpeveryonemakegooddecisions.NZissosmalltheworldis sobig,weneedtoworkasateam.Scientist,NZ Wecanhaveagreatproduct,withgreatscience,butthereisnovehicletocommercialise anditturnsintoadisaster.Sciencesometimes doesntlisten.Needtocometoanagreementbasedontheconsumerneed,ifthereisnoneedtheproductwillgetpassedover. SetupaFoodInnovationinstituteatMassey,amongsttheUniversity,CRIsFonterraetc.R&DCentres alwayslosemoneyunlesstheyaretied toaUniversity.Theytendtobethemajoruser.Ittakes$5$10mtogetrunning.Businesswillthensupportit,ifitsgettingvalue.Thereshould beonlyone,notalotofthemspreadallaroundtheplace.Weneedtofocus.IndustryExecutive,2011
PAGE61
3 ALIGN
Thesectormustalignunderwhatthemarketisdemanding
Theailmentmustdrive decisionmaking
Alldecisionsmustbemarketled,oritsacompletewaste.InNewZealandwearetoofocusedonproductsandourrawmaterialsandnot enoughontheailments.WeshouldbelookingatCalciumdeficiencyandthenfindingtheproductthatsuits.CEO,mediumsizedmanufacturing
company,2011
PAGE62
3 ALIGN
Realisingthecommercialpotentialfromresearchisparamount
FRSTSelectprojectexamplesDiet,HealthandNutritionrelated
(NZ$m;2005/062010/11) Funding (NZ$m) $17.1 $17.1 $11.1 $10.5 $8.9 $8.2 $6.6 $5.6 $5.2 $4.0 $3.4 $3.3 $3.3 $2.9
Industry Crop&Food PlantandFood HortResearch AgResearch ViaLactia BioSciences AgResearch HortResearch HortResearch Crop&Food Massey University NIWA AgResearch Fonterra PlantandFood
PAGE63
Exampleprojects LifestyleFoodsforEnergyBalance:TheCarbohydrateStory LifestyleFoodsforAppetiteControl WellnessFoods Innatedefensemoleculesincows'milk Developingnewfoodsandingredientsforthehealthandwellnessmarket Premiumexportandhighermargindairybasedfoodsolutionsforimprovedintestinalbarrierfunctionin infantsandtheaged NewHealthyandFlavoursome BerriesandProducts FreshandProcessedBerryfruitProductstoEnhanceGutHealth Newhealthmarketopportunitiesfromunderstandingandexploitingfoodmicrobehostinteractions underpinningthehealthyhumanbowel Futurefoods anewcapabilityforNewZealand'sleadingindustry TeWhatukura aTakaroa:NutraceuticalsfromSeafood Premiumexportmilkbasedfoodsforpreventionofallergyininfantsandyoungchildren Probioticsfornoveldairybioactives Fruitderivedcompoundsandtechnologiestoalleviateinappropriateinflammation
TABLEOFCONTENTS
Section Contents Glossaryofterms Methodology&datasources F&BIPOverview Definitions Summary&conclusions Nutraceuticals a. Global Situation 20 27 38 Page 4 5 6 7 10 15
64 71 75
b.NewZealandSituation Appendices
PAGE65
Source:Coriolisfromvariouspublishedsources
FINANCINGIMPORTANT Itisrecognisedthatinvestmentrequiredforproductdevelopmentandmarketingisenormous
WithDanones brandsActimel andActiva ittook1015yearstoreallytakeoff.Therewassomuchinvestmentandmarketing.Itwasntthe sciencethattookthetime,itwasthemarketing.Ittakes56yearstobreakeveninanewcountryThebrandissomuchmorethanthe science.Youneedtounderstandthemarketandtheconsumers.IndustryExecutive,2011 WhensellingdairyproductsintoAsiaitisallfunctional.Weneedsomuchinvestmentforsalesandmarketing.Weneedtosell thehealth benefit.Manager,Dairycompany,large,2011
Theamountofinvestmentrequiredtoreallyresearchsomethingnewismassive.Weightsatietyhaspotential.Buildingabrand andfindinga productthatwillappealtoconsumerswillbehuge.Manager,Dairycompany,large,2011
PAGE66
Nutritious foods
Foodswithstronghealth relatedlinks
Freefrom foods
Functional foods
PAGE67
1.Asdiscussedelsewhere,thiseliminatedenergydrinksandothercaffeinedeliveryproducts;Source:Sainsburys online(UK)[fairuse];Coriolis
Worldsfirst functionalfood LaunchedinresponsetoarrivalofYakultinEurope 1.4binsales(06) Reducecholesterol FollowingstudypublishedinNEJOM2 Birds feeditselfmodifiedtoberichinOmega3 Asmuchresveratrolinonebarasyouwouldfindin 50glassesofredwine
1998 2010
U.K. UnitedStates
Omega3fattyacids Resveratrol
PAGE68
1.FromCochineal insect;2.NewEnglandJournalofMedicine;Source:Coriolisfromvariouspublishedsources
$9.6 $20.6
Softdrinks
9.3%
$6.8 $5.2
5.4%
Thisisprimarily probioticyoghurtsanddrinkingyoghurtshots
Bakery,cereals&muesli 5.5% bars Confectionery Potatochips/ savoury snacks Allotherproducts 3.5% 2.5% 1.3%
Notethatthefunctionalconceptisnotmakinganytractionin aggregateacrossallotherproductssoldinasupermarket
Notalotofgrowthelsewhere
Source:PWCLeveragingGrowthintheemergingfunctionalfoodsindustry;USBureauofLabourStatistics(CPIF&Binflation);Coriolisanalysis
Existingplayersaddfunctionalflavourtorange
Softdrinks
Yoghurt/otherdairy
Confectionery
Nomajorsuccesses
Potatochips/savoury snacks
Nomajorsuccesses
PAGE70
Note:PepsiCoownsFritoLay(global#1potatochipcompany;ownerofBluebird)andQuaker(cerealandsnacks);KraftownsBalanceBarandarangeofotherbusinesses;General Millsowns50%ofYoplaitFranceandlicensesthebrandintheUS;Source:Coriolis
TABLEOFCONTENTS
Section Contents Glossaryofterms Methodology&datasources F&BIPOverview Definitions Summary&conclusions Nutraceuticals a. Global Situation 20 27 38 Page 4 5 6 7 10 15
64 71 75
b.NewZealandSituation Appendices
Single servedairydrink
Probioticbacteria(Bifido Defensis) Vitamins& Minerals Inulin Calcium,vitaminD,magnesium, zincandprotein Foclate,Vit BsGangliosides (GA),SA,DHA*,EFAandIron. Probioticbacteria Plantsterols Plant sterols Omega3 Superfruits
Milk
Antioxidant
Sanitarium
General health
Honey
Airbourne ManukaUMF
Antibacterial
PAGE72
Source:Coriolisfromvariouspublishedsources
PetFood
Omega3,Glucosamine&Multi vitamins Omega3,Antioxidantsand Glucosamine Omega3,Beet, Antioxidants, Prebiotics,Glucosamine FLUTD, Antioxidants,Optimum DentalDefense Various
Omega3: Heart Multivitamins&antioxidants: Generalhealth Glucosamine:Jointhealth Beetpulp&prebiotics: Digestivehealth FLUTD:Urinarytracthealth OptimumDentalDefense: Dentalhealth Immunesupport Moodimprovement GeneralHealth
Tea
Twinings Healtheries(NZ)
Twinings Echinacea& Raspberry Healtheries StJohnsWort & Berries HealtheriesGinsengTea& Blackcurrant&Vanilla HealtheriesChamomile& PeppermintwithSenna &Milk Thistle AppleCider drinkingvinegar
Beverages
GHO
Vinegar
Vitamins, minerals
PAGE73
Source:Coriolisfromvariouspublishedsources
Ingredients Calcium, vitaminD,magnesium,zincandprotein VitaminB1,B2,B3,B12,Folate,Calcium,Iron, GA, SA,&EFA Specialtyprobioticingredientsupplier Lactoferrin Colostrum Largerangeofingredients inthetestingphaseor soononoffer Lactoferrin Glycomacropeptide Lactoperoxidase Caseinpeptones Lactoferrin
Consumerfunctionalfoodproducts Anlene (bonehealth) Anmum forbaby/childs braindevelopment AnchorSymbio Yoghurt(probioticyoghurt) Stolle MilkPowder(antibodyrichmilk) reCharge IceCream(toreduceeffectsofchemotherapy,testingstages) Col+colostrumsingleservedrink(JVwithNewImageGroup)
None
PAGE74
Source:variouspublishedarticles;variouscompanywebsites;Coriolisanalysis
TABLEOFCONTENTS
Section Contents Glossaryofterms Methodology&datasources F&BIPOverview Definitions Summary&conclusions Nutraceuticals a. Global Situation 20 27 38 Page 4 5 6 7 10 15
64 71 75
b.NewZealandSituation Appendices
TABLEOFCONTENTS
Appendix Appendix1 ProfilesofNaturalproductscompanies Appendix2 Product Profiles Appendix3 Nutraceuticalsfrommilk Appendix4 Sourcesoffirms Appendix5 Exclusions Page 76 96 103 111 121
1984
$30m (2010) $28m (Ke) $11m(02) $18.5m (Ke) $9m (Ke) $9m (Ke) $23.3m (2010) $7m (Ke)
PAGE77
100 (K) 15% (C) 100 (K) 65 (K) 30 (K) 30 (K) 10 (K) 25 (K)
NewZealand;private (ToddCorporation) NewZealand;private (Hilke family) NewZealand;private (Blanchardfamily) NZ/AU;Private (WarrenStewart) New Zealand;private (Purchase andRossfamilies) Singapore; listed (SING:5FR) NewZealand; private (Edmondsfamily)
1951
1923
1987
www.goodhealth.co.nz Completerangeofsupplements www.nznutritionals.co.nz AlsoVitaFit,Prolife,Morlife;plant inCHC;contractpacks forothers www.lifestream.co.nz Widerangeofsupplements www.horleys.com;www.etikaintl.com Was Fonterra;nowEitka (Singapore) http://www.healthandherbs.co.nz/ Multiplebrands:Radiance,NaturesWay,etc.
1980
1994
1980 1989
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
1967 1997
$3m (Ke) $2m (Ke) $2m (Ce) $2m (Ke) N/A $0.4m (Ce)
20
NewZealand;private (Matthews family) NewZealand;private (Rasmussenfamily) NewZealand;private (Chu; Looi; others) NewZealand;private (Leefamily) NewZealand;private (Lawtonfamily; others) NewZealand;private (Huanf &Lufamilies)
2000
13 (K) N/A
1998 1996
Invita NZLtd.
$1.25m (Ce)
14 (K)
1989
PAGE78
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
N/A
2008
UltimateNaturalHealthLtd www.iconherb.com www.detoxontv.com Online andphonesalesonly www.naturesourcedirect.com Barleygrass, colostrum,manuka oilmarketers www.nutressence.co.nz Nutritional supplementforhorses,nowpeople www.gohealthynz.co.nz www.homecarenz.com Rangeofproducts(supplements,colostrum,baby food) www.nzhealthfood.com Retailshopwithcontractpacked brands www.nznewparadise.co.nz
N/A
N/A
2002
N/A $0.45m (Ce) N/A $2.5m (Ce) $0.5m (Ce) $1.5m (Ce)
PAGE79
2005
N/A
1996
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
Inliquidation NewZealand;private (Shepherd;others) NewZealand;private (Brewer) NewZealand;private (Chandler family) NewZealand;private (McConnachie;others)
1981 1999
N/A N/A
PAGE80
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
2002
$30m (K;03) $23m (Ke) $27m (10) $1015 (Ci) $9m (Ke)
NewZealand;Privateequity (Pohutukawa;Direct; Biopacific;others) NewZealand;private (Hanham family) Australia;privateequity (CHAMP) NewZealand;private (Miller; others) NewZealand;private (Smith; Geiger;others)
1971
1970
1978
1995
1993
$5.2m (2009)
22 (K)
NZ;listed (Unlisted)
1970/ 1984
PAGE81
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
6 (K) N/A
1995 1996
N/A
NewZealand Comvita100% NewZealand; private (Heathfamily;others) NewZealand;private (Leefamily) NewZealand;private (Green family) NewZealand;private (Symns, Johnson,Buckett)
1990
N/A
N/A
N/A
N/A
N/A
1992
N/A
N/A
2003
PAGE82
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
Seperex Nutritionals
$812m (Ce) $0.5m (Ce) $0.3m (Ce) $0.1m (2009) $0.35m (Ce) N/A
8+
2004
www.seperex.co.nz BasedinDunedin; officesandlabinHongKong Bioactivemarineextracts BioLexBioLexLPlus www.quantec.co.nz Technology basedonimmuneenhancingpropertiesofa novelmilkfraction www.somnaceutics.com patentednaturalsleepenhancingmilkproduct Asian distributiondealwithNewImage www.supremebiotech.com Astaxanthin productsfromouruniquestrainofalgae (Haematococcus pluvialis) www.anagenix.com OrigininOtago Universityresearch ResearchingJVwithTrinityBioactives researchgroup www.encoate.com Proprietary,costeffective,foodgradebiopolymer technologies
N/A
N/A
N/A
2007
N/A
2007
N/A
NewZealand;private (Johnson andWashington Smith) NewZealand;privateequity (Biopacific;others) NewZealand;mixed (Cavom, ENZO;NVIF;others) NewZealand;mixed (S. Tindall;Geiringer;NVIF; others)
2008
N/A
N/A
N/A
2005(?)
N/A
N/A
2002
PAGE83
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
PAGE84
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
80%(C)
350(K) EY:40
NZ;cooperative
1937
www.westland.co.nz Lactoferrins andcolostrum www.easiyo.com www.tatua.com Lactoferrins Proteinhydrolysates www.synlaitmilk.com HavecolostrumandLipidex (betaserumpowder) www.a2corporation.com Milkusingselectedstrainofcowthatproducesmilkprotein variant www.zestlife.com Liquidcolostrum www.purenzcolostrum.com Colostrumpowder www.immunecare.co.nz ParentisWinning TeamLimited www.theyoghurtcapsule.co.nz Encapsulatedyoghurt;primarilydirectsales (?)
95%+
180(K)
NZ;cooperative
1914
90%+
China/Japan/NZ (51%BrightDairy;Mitsui7%; others) NZ; listed (NZAX:ATM N/A NewZealand;private (Nixon;Parry) NewZealand;private (Lockfamily) NewZealand;private (Wootten family) NewZealand;private
2000
2000
2005
2001
2001 1988
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
N/A
PAGE86
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
2002
PAGE87
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
1973 1996
HubrisInternational
3 (K) N/A
1999
2003
EnZaq Aquaculture
N/A
N/A
1985
N/A N/A
2003
PAGE88
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
10 (K)
2003
$15m
90%
40
2006
$510m(K)
40
1944
NZHoney Company
$10.8m (2010)
N/A
1950s /1981
www.nzhoney.co.nz NewZealandHoneyProducersCooperative tookovertheassetsoftheHoneyMarketingAuthority Hollands; 3Bees;SweetMeadow;Hororata www.newzealandhoneyco.co.nz Honeyproducts;parentisAlpineHoney www.airborne.co.nz Regular,manuka,active manuka,andhoneylozenges www.honeynz.co.nz www.beesonline.co.nz Honey www.mossopshoney.co.nz Widerange ofhoneyproducts
$5m (npa;09) HoneyNewZealand (International) $3m (Ke) $3m (Ke) $3m (Ke)
PAGE89
90%
1952
1.Includesinternationalemployees;Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
%Export
Employees
Ownership
Year founded
Notes
15 (K) 14 (K) 10 (K) 10 (K) 10 (K) 8 (K) 7 (K) 7 (K) 6 (K) 5(K) 3,500hives 4(K) NewZealand;private (Davidsonfamily) NewZealand;private (Lipscombe family) NewZealand;private (Cropp family)
www.packagebees.co.nz www.nectarease.co.nz Honey;beeproducts www.purenewzealandhoney.com Manuka honey,activemanuka;otherhoneys www.happyvalley.co.nz;www.happyvalleyhoney.com.hk Honeyandbee products www.honeylands.co.nz www.beewild.co.nz www.haddrells.co.nz;CambridgeBeeProducts Beeproducts;UMFhoney(GoldenHillsbrand) www.waitematahoney.co.nz Honey,UMFHoney www.beehealthy.co.nz;www.ecroyd.com/ Honey;manuka honey;beeproducts www.waitakihoney.co.nz www.manukahoney.co.nz/ Manukahoney;UMFhoney
1991
1940 1976
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
N/A
N/A
PAGE91
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
PAGE92
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
Biovittoria
n/a
New Zealand/other (Variousincl.Tate&LyleUK) NewZealand;listed (subsidiaryofMudHouseWine Group) NewZealand;private equity (NZP69%;others) NewZealand;private (Green family;others)
NA
2004
N/A N/A
2003 1997
$15m (K)
20 (K)
1992
4 (K) N/A
1989
2003
PAGE93
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
Natures Greenz
N/A
N/A
2002
N/A
N/A
2001
PAGE94
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
NZuniqueflora Mende Biotech $0.8m (Ke) N/A 3 (K) N/A NewZealand;private (Hueber family;Mende family) NewZealand;private (Hueber family) NewZealand;private (Butler family) NewZealand;private (Kerr;Te AtaRaTapumahi Trust;others) 1999 www.totarol.com Totara tree extract www.essentiallynz.com Totarol marketer;partownedbyMende www.forestherbs.co.nz Horopito http://www.manukaoil.com Manuka treeoil
2001
N/A
N/A
Tairawhiti Pharmaceuticals
N/A
N/A
PAGE95
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
TABLEOFCONTENTS
Appendix Appendix1 ProfilesofNaturalproductscompanies Appendix2 Product Profiles Appendix3 Nutraceuticalsfrommilk Appendix4 Sourcesoffirms Appendix5 Exclusions Page 76 96 103 111 121
Keyfunction
Overall
Industryhealth
DefensibletoNZ
ManukaHoney
Antibacterial
* * 5
? ? 5
5 ? 5
? 5
?
See Appendix2
Antiinflammatory
Colostrum
Kiwifruitextract
Digestive health
Deervelvet
Sexualhealth
PAGE97
Note:Excludesfishoil
CompetingProducts Natural: Totarol,oreganooil Otherhoneys Probiotics Tea treeoil,eucalyptus ConventionalMedicine: Antibiotics Topical creams Revamil Honey ResearchState
37 Antibacterial: 25 Wounddressing:23 Toothdecay:2 Gutinflammation:2 Asthma:2 Immunity:1 Angiogenesis:1 Antifungal:1 UK:16 NZ:14 Ireland:6 Canada:4 USA:3 India:3 France:1 Poland:1 Slovakia:1 Portugal:1 Italy:1 Germany:1 Australia:1
History Honeyhasbeenusedtotreatwoundsformillennia.In 1988,DrPeterMolans labat theUniversityofWaikato discoveredmanuka honeyhadantibacterialproperties. Manukahoneywaslatershowntohaveadistinct bactericidalactivityfromotherhoneyandwaseffective inwoundtreatment.ItisnowcollectedwidelyinNZand certified foruseinhospitalwoundcare.
CountryofPrimary Author:
Antibacterial/Wound Dressing: Verywellresearched,convincingevidence,proven Soontobeusedaspartofhospital woundcareinseveral countries FDAapprovedproduct Other: Otherusesarespinofffromantibacterialcare(i.e. toothcare)orareonlyattheinitialphaseofresearch Difficulttojudgepromiseofresearchintotheseareas NZResearchCentres
PAGE98
BasedonsearchusingPubMed,excludeschemical/processing/foodjournals
38
Arthritis/antiinflammatory:35 Inflammatory boweldisease:1 Cancer:1 Australia: 9 USA:7 UK:6 NZ:3 China:1 Finland:1 Canada:1 SouthKorea:1 Russia:1 Japan:1
ActiveIngredients Liprinolisanextractcontaining multiple compounds Omega3Oils Mucopolysaccharides ChondroitinSulphate Betain History Research inthe1970sonanimalextractsshowedgreen lippedmusselshavehighlevelsofomega3oiland mucopolysaccharides.Duringthe1980sextraction methodsweredevelopedtoretainbioactivity.Several studieshavebeenconductedonhealthbenefitsof greenlippedmusselextract,primarilyinAustralia.Cold extractionofBioLanepreservesactivecompounds Patents/IP/NZspecificadvantages Extractionprocessispatented(Liprinol) Greenlipped musselprimarilygrowninNZ?,couldbe growninaquacultureelsewhere
NZResearchCentres None
PAGE99
BasedonsearchusingPubMed,excludeschemical/processing/foodjournals
CompetingProducts Natural: SportsPerformance:Amino acids,kombucha tea,devils claw,ginger,brownricesyrup,palmnectar,alfalfajuice, creatine Immune:Prebiotics, probiotics ConventionalMedicine: ??
ActiveIngredients Antibodies
History CountryofPrimary Author: Australia: 11 NZ:4(8 moreonanalytics/processingof colostrumforhumanuse) USA:3 Finland:3 Netherlands:2 UK:1 Germany:1 Iran:1 Iraq:1 Colostrumhasbeenknown tobeimportantininfant healthandanimalproductionsinceancienttimes. Researchintobovinecolostrumforhumanhealthbegan inthelate1990s.
PAGE100
BasedonsearchusingPubMed,excludeschemical/processing/foodjournals
23 Digestion:5 Cancer:4 Asthma: 2 LiverFibrosis:2 Diabetes:2 Antiinflammatory:2 BoneMarrowProduction:1 Cardiovascular:1 Dermatitis:1 Antioxidant: Korea:8 China:6 Japan:4 NZ:4 UK:1 Taiwan:1
ActiveIngredients Actinidin, an enzymewithsimilaractivitytohuman digestiveenzymes Otherdigestiveenzymes Antioxidants History Limitedusesofkiwifruitrelativesintraditional Chinese medicine.KoreanandChinese researchhaslookedat effectsofkiwifruitextractonvarietyofdiseases includingcancerandheartdisease.
ResearchState Effectsondigestionarerelativelyeasytotest Actinidin enhancesbreakdownofprotein Moderateto goodeffectsonproteindigestion Linkbetweenproteindigestionandgastrointestinal diseaseismoredifficulttoestablish Otherusesforextractareclearlyunprovenandsolely initialtrials
CountryofPrimary Author:
PAGE101
BasedonsearchusingPubMed,excludeschemical/processing/foodjournals
15
CountryofPrimary Author:
NZResearchCentres AgResearch
PAGE102
BasedonsearchusingPubMed,excludeschemical/processing/foodjournals
TABLEOFCONTENTS
Appendix Appendix1 ProfilesofNaturalproductscompanies Appendix2 Product Profiles Appendix3 Nutraceuticalsfrommilk Appendix4 Sourcesoffirms Appendix5 Exclusions Page 76 96 103 111 121
Conclusion Probiotics Thesuccessstoryof nutraceuticals Limiteddefensibilityof probiotics Low/nosuccessoutside dairy Probioticsseekingnewuses Bioactivemilkcomponents Notanewconcept
Details
Globalsuccessofprobioticsinyoghurtdrinks Drivenbymajorglobalyoghurt players(e.g.Danone) Noweffectivelymainstream Easytoderiveandpatentnewstrains Crowdedcategorywithlargenumberofpatentedstrains(toomanytolist) Consumerproposition:bacteriainyour foodresonatesinyoghurt;moredifficultelsewhere Numerousnondairyattemptshaveshown limited/nosuccess(e.g.probioticmuseli bar) Probioticsinitially100%guthealth;nownewareas ofclaim(e.g.respiratoryinfections) Recentpatentsshowexplosionofputativenoveluses
Japan(and Korea)havehistoricallyledresearchanddevelopmentofmilkbioactives Nowbeingresearchedaroundtheworld NewZealandstronginareabutNZstrengthshouldnotbeoverplayed Globally:lotsofpapers,lotsofresearch;lotsofpatents Movingfromvaguegeneralhealthclaimstospecifictreatmentsusingdefinedcompounds Primarymarketisinfantformula;minoruseinsportsnutrition,etc. Industrygrowthhasslowed(Chinaonlybrightspot) FonterracreatesLactopharma (w/U ofAuckland)andViaLactia (Fonterrabioactives company)partly tocreatenewproductsandproductuses Chr.Hansen developmentofnumerousnewprobioticuses
PAGE104
Activia yoghurt
PAGE105
Source:Coriolis
Loweringriskofcatchingacold
BravoFriscus/ProbiFrisk
Probi
Danisco Nestle
PAGE106
Source:Coriolis
Bifidobacterium
Bifidobacterium strain AH1205 Bacilluscoagulans Sporolactobacillus vineae SL153strain Cranberry,Dmannoseand severalbacterialstrains Bifidobacterium lactis Bi07 andLactobacillusacidophilus NCFM 5 Lactobacilus strainsanda prebiotic Lactobacillusrhamnosus, inulinandsoy polysaccharides
Bacillus Sporolactobacillus
? ?
Mixture
Mixture
Mixture
Mixture
PAGE107
Source:Coriolis
NUTRACEUTICALMILKPROTEINS Manyproteinsinmilkhavenutraceuticaluses
Milkproteinsandderivativesusedinnutraceuticals
(2010) Category Lactoferrin What Wholelactoferrin Subcategories Researched effect Antimicrobial Lipidmetabolism Patent None Formulation patented,2005(in Japan) 2006(inJapan) Date discovered ? Various,patentedand producedbyNRL Pharma (Japan) Various,patentedand producedbyNRL Pharma (Japan) ? 2000 2005 N/A N/A Products byNuGEN Various,patentedand producedbyNRL Pharma (Japan), seekingFDAapproval ? CommercialProduct
Analgesicandantianxiety
Bone growth(Osteoporosis prevention) Peptides cleavedfrom lactoferrin aa1640 aa1741 Lactoferricin Enterically coatedlactoferrin Antimicrobial activity Anticancer Anticancer Improvedbioavailabilty,to bemarketedasantioxidant
Fonterra andUniversityof Auckland,2002(NZ),2010(US) ?? ?? 2000sfromKorea Coatingcomponentsand methodspatented,2007(in Japan) Patent application2008(US patentapplication 20080161234) Attachmentpatented,2009(in Japan);2011USapplication
PAGE108
Source:Coriolis
NUTRACEUTICALMILKPROTEINS Manyproteinsinmilkhavenutraceuticaluses
Milkproteinsandderivativesusedinnutraceuticals
(2010) Category Peptides cleavedfrom casein Subcategories aa8486andaa7476 Glycomacropeptide aa106116 Casomorphins Casoxins Caseinophosphopeptides Glycylated peptides( casomorphin7) Mineralabsorption,tooth decay Sleepaid Patent application2010 (USPatentapplication 20100130406)by Somnaceutics Ltd (NZ) Patent approved1993 (Europe),1998(US) NewZealand Sleep Timeandothers madebySomnaceutics (nowownedbyNew ImageGroup) Lactiummadeby Ingredia (France),usedin avarietyofproducts A2Milk Researched effect Antihypertensive Antimicrobial Anticancer Patent ?? ?? ?? Country/Date discovered 2003 2006 2006 CommercialProduct Fermentedmilk(Calpis, Evolus) BioPUREGMP Oralcareproducts
Caseinhydrolysate
Sleepaid
France
Caseinisoform
A2casein containingmilk
Heart disease
NewZealand
PAGE109
Source:Coriolis
NUTRACEUTICALMILKPROTEINS Manyproteinsinmilkhavenutraceuticaluses
Milkproteinsandderivativesusedinnutraceuticals
(2010) Category lactoglobulin Whey Subcategories aa7880 Wholewhey Peptidescleavedfromwhey Lactorphins Whey hydrolysate fraction Satiety Patenton isolationand use,2007byUnilever (USpatent7618648) Researched effect Antihypertensive Anticancer Patent ?? Country/Date discovered Japan,1998 2000 CommercialProduct Biozate
Calciumabsorption Antiinflammatory(alsoheart diseaseandsports performance) Phosphatidylserine enriched fraction Patentonpurification anduse,1997(USpatent 5650175 Patentapplicationon isolation,2009(US Patentapplication 20090123630) Reductionofallergiesin children Mouthulcers Patentapplicationin AustraliabyBiolink/TGR (Adelaide) Patentapplicationin AustraliabyBiolink/TGR (Adelaide) Microlactin (Stolle Milk Biologics) ?
Proteinextractfrombuttermilk
Protein extract
PAGE110
Source:Coriolis
TABLEOFCONTENTS
Appendix Appendix1 ProfilesofNaturalproductscompanies Appendix2 Product Profiles Appendix3 Nutraceuticalsfrommilk Appendix4 Sourcesoffirms Appendix5 Exclusions Page 76 96 103 111 121
PAGE112
Source:Membershiplistathttp://www.nutraceuticals.org.nz/;Coriolisanalysis
PAGE113
Source:Membershiplistathttp://www.nutraceuticals.org.nz/;Coriolisanalysis
Source:Membershiplistathttp://www.nutraceuticals.org.nz/;Coriolisanalysis
Source:Membershiplistathttp://www.nzbio.org.nz;Coriolisanalysis
PAGE116
Source:Membershiplistathttp://www.nzbio.org.nz;Coriolisanalysis
PAGE117
Source:Membershiplistathttp://www.nutraceuticals.org.nz/;Coriolisanalysis
PAGE118
Source:Membershiplistathttp://www.nutraceuticals.org.nz/;Coriolisanalysis
PAGE119
Source:Membershiplistathttp://www.nutraceuticals.org.nz/;Coriolisanalysis
PAGE120
Source:Membershiplistathttp://www.nutraceuticals.org.nz/;Coriolisanalysis
TABLEOFCONTENTS
Appendix Appendix1 ProfilesofNaturalproductscompanies Appendix2 Product Profiles Appendix3 Nutraceuticalsfrommilk Appendix4 Sourcesoffirms Appendix5 Exclusions Page 76 96 103 111 121
PAGE122
COSMETICS Weidentifiedarangeofnaturalproductsderivedcosmeticsfirmswhichwereoutofscope
IdentifiednaturalproductsderivedcosmeticsfirmsinNewZealand
(2010orasavailable)
Turnover Cosmetics www.absoluteessential.com/ Aromatherapy;essentialoils www.livingnature.com/ Cosmetics &skincare;partiallyownedbyNewImage www.doctorwendy.net/ Skincare %Export Employees Ownership Year founded Notes
www.carolpriest.co.nz/
Lanocreme
1987
4 (ws)
PAGE123
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
COSMETICS Weidentifiedarangeofnaturalproductsderivedcosmeticsfirmswhichwereoutofscope
IdentifiednaturalproductsderivedcosmeticsfirmsinNewZealand
(2010orasavailable)
Turnover Cosmetics NZ/Swiss;private (52% Melville;48%Weleda AG) www.weleda.com.au;http://www.weleda.co.nz www.weleda.com www.honeycreme.co.nz %Export Employees Ownership Year founded Notes
www.trilogyproducts.com/
www.tuibalmes.co.nz
PAGE124
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
WHOLESALERS Weidentifiedarangeoffirmsthatwerewholesalersofimportedproductandfirmsthatonlyservedhorses
Identifiedimporter/wholesalersofnutraceuticalingredientsinNewZealand
(2010orasavailable) Turnover Importer/Wholesaler $150m (K;05) IngredientTechniques Animalnothuman GoodHealth Organisation RedwoodAnimalHealth Equine Essentials 3 2005 www.rah.co.nz/ $1m (Ke) 70 (K) 5 (K) 1987 www.chemiplas.co.nz Wholesalernotmanufacturer;somefoodingredients www.ingredients.co.nz Wholesaler notmanufacturer %Export Employees Ownership Year founded Notes
n/a
www.equineessentials.co.nz/ Horsecosmeticproducts
PAGE125
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
PRIMARILYRETAILER Weidentifiedawiderangeofnutraceuticalsretailers,primarilydirect/internetsellers
NewZealandnutraceuticalsfirms primarilyretailer
(2010orasavailable)
Turnover PrimarilyRetailer www.healthy.co.nz http://theherbaldispensaryraglan.co.nz Retailstore http://livingfoodslifestyle.co.nz http://childlife.co.nz ImportsanddistributesChildLifeEssentialssupplements 1993 www.proherb.co.nz Import anddistributionofglobalproducts www.tasmanhealth.co.nz/ www.greenhealth.co.nz 1020 www.healthpost.co.nz Retailotherbrandsandhaveownbrand www.healthia.co.nz ShamansGarden 2003 2000s www.shaman.co.nz Herbalremedies www.hhacupuncture.co.nz Solelysellkombucha tea www.naturesremedies.com/ %Export Employees Ownership Year founded Notes
PAGE126
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
PRIMARILYRETAILER continued
NewZealandnutraceuticalsfirms primarilyretailer
(2010orasavailable)
Turnover PrimarilyRetailer T.J.Clark $1m (Ke) $3m (K) 5 (K) 3 (K) NewZealand;private (Sowden family) 2001 1992 www.tjclark.co.nz/ Nonijuice, colloidalminerals,other www.abeeco.co.nz/ Parent isPerformanceHealth Directmail;originallybeepollen;nowarangeof supplementspacked byothers www.nonihealth.co.nz Primarilysellnoniproducts:supplements,juice,soap www.nonienterprise.com/ Sell onlynonijuiceandcapsules(madeinNiue) www.purepacifika.com Sell onlynonijuiceandcapsules(madeinNiue) www.probiotics.co.nz Importersanddistributors 2000 www.lovelyhealth.com SouthernDeep(marine),SouthernCountry(dairy), Southern Synergy(barleygrass)rangeofsupplements http://www.healthy.co.nz/ FirmisIdealHealth
www.workboot.co.nz/profile/Natural_Health_Zone/2540.html
%Export
Employees
Ownership
Year founded
Notes
N/A
1985
Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
PRIMARILYRETAILER continued
NewZealandnutraceuticalsfirms primarilyretailer
(2010orasavailable)
Turnover PrimarilyRetailer www.tastenature.co.nz Healthshop www.realnutrients.co.nz Haveownbrand, ~50%ofproducts www.biotrace.co.nz Onsellproduct fromUS 1984 www.pachealth.co.nz Salestonaturalhealthindustry;effectivelyawholesaler www.vitalityplus.co.nz www.in2herbs.co.nz Importanddistribution www.vitallife.co.nz Justonlinesales NaturesNutrition www.naturesnutrition.co.nz www.waimarinonaturalhealth.co.nz www.oneearth.co.nz Rangeofsupplementsand herbalproducts
PAGE128 Source:variouscompanyannualreports;variouscompanywebsites;Kompass;interviews;Coriolisanalysisandestimates
%Export
Employees
Ownership
Year founded
Notes
2 24
2009