Pioneer Community Foods is
now owned by 12,000 farmers
Community Foods, one of the most highly respected pioneer companies
in organic products and wholefoods, has been bought by a surprising
new owner in an unusual business deal.
It has been acquired by Milk Marque, the successor company to the
Milk Marketing Board of England and Wales and is now owned by12,000
dairy farmers and former dairy farmers in England and Wales. They
are shareholders in what Milk Marque describes as one of the most
exciting growth companies in the UK health food sector.
The deal was made possible by the conversion of Milk Marque from a
co-operative constituted under the Industrial and Provident Societies
Act to a conventional company – a move approved by Milk Marque’s
farmer members last year.
For Community Foods, founded 35 years ago, the purchase secures its
future, something which MD Bill Henry had realised had to be addressed
over the next few years as the current 13 shareholders grew older.
Henry has been with the company for 29 years and his fellow director
Tim Powell for 30 years. There was not an obvious succession as there
would be with a family business and having so many shareholders did
not lend itself to a management buyout.
“I have had many offers to buy before and they have all gone
in the bin,” said Bill Henry, “ but this appealed because
it was so unusual. It means that instead of being part of a plc we
are owned by British farmers.
Milk Marque Chairman, Roger Evans said that the unique background
and ethos of Community fitted well with Milk Marque’s own co-operative
origins. “Community Foods represents an excellent investment
for Milk Marque shareholders. It is growing rapidly, operating very
profitably in an attractive sector and has the scale Milk Marque is
seeking.”
“Its growth and profitability are truly impressive. For the
year ended 31 March 2006 the company generated a pre-tax profit of
£3.4m on turnover of £54.4m continuing a trend of increasing
turnover and profitability, stretching back over a number of years.”
Founded in 1971, Community Foods sources, wholesales and markets organic,
health, and fair-trade food products. It stocks over 2,800 product
lines including nuts, seeds, pulses, grains, dried fruit and branded
health products. The business is a key supplier to Tesco, Sainsbury,
and Holland & Barrett, as well as a range of independent health
food chains, food manufacturers, and wholesalers.
The business sells its own branded product range, including the “Crazy
Jack” Organic dried fruit, nuts and snack range, and the “Sanchi”
range of Japanese food products. The company is also the exclusive
UK distributor for the “Orgran” range of gluten-free products,
and the “Nature’s Path” range of organic cereals.
At Community, it is business as usual with all the staff and shareholders
staying with the company. The three directors of Community Foods will
also be appointed to the Board of Milk Marque.
Bumper grape harvest in East Sussex
An outstanding harvest at the largest English organic vineyard, Sedlescombe,
is one of the compensations of a warming climate.
Following the hottest July on record, organic vineyard owner and winemaker
Roy Cook is predicting his highest quality grape harvest ever, when
picking begins this month.
“I am confident that the 2006 harvest will be our best ever,
both for grape quality and volume,” said Cook.
Roy Cook’s workforce, swelled by recruits from his local area
of East Sussex, will be gathering grape varieties such as Bacchus,
Reichensteiner, Solaris, Pinot Noir and Regent, before too many cold
nights set in, so they retain adequate fruit acid levels, and produce
the fruity wine style for which English Wines are gaining an ever
improving reputation.
The prospect of increased wine production comes at time of significant
growth in sales for Sedlescombe Vineyard, which is benefiting from
the recent upturn of interest both in English and organic wines. Six
more acres of the vineyard are in conversion to organic production.
Sedlescombe has consistently produced wines that gain the top EU “Quality
“ appellation and has won a series of prestigious awards; most
recently a Bronze for its 2005 Dry White.
Low levels of selenium in English wheat
may be harming health
A scientist at the University of Surrey suspects that the increased
use of English and European wheat in the UK diet could be one of the
factors in the increased numbers of cancers.
Whereas we used to buy the majority of breadmaking wheat from Canada,
the UK now sources mainly from the UK and Europe
The researchers say that UK and European soils contain a considerably
lower level of the essential mineral, selenium, long known to have
vital cancer prevention properties, than those in North America.
Deaths from cancer in the UK now outnumber deaths from heart disease
and stroke and UK scientists have been prompted to investigate the
link between low selenium intakes and cancer mortality.
Dr Margaret Rayman from the University of Surrey’s School of
Biomedical and Molecular Sciences is one of several European scientists
trying to raise money to fund studies in the depth that are needed
to prove that selenium really does have a beneficial effect in reducing
cancer risk.
“It is in the public interest to finance more research on the
apparent relationship between selenium and cancer risk,” said
Rayman.
Since as early as the 1960s, geographical studies have shown a consistent
trend for populations with low selenium intakes to have higher cancer
mortality rates, says Rayman, who has been involved in the development
of functional foods with a higher selenium content that can be readily
absorbed by the body. She recommends that consumers boost their selenium
intake by eating a daily portion of brazil nuts.
Aspall helps save East Anglian orchards
Vinegar and apple juice maker Aspall has been at the forefront of
a campaign to save East Anglian apple orchards from destruction and
has secured its own future supplies in the process.
It has helped a dozen local farmers to convert to organic fruit production,
rather than grubbing up their trees with the support of an £80,000
investment programme and a price guarantee,
"Ensuring supplies of high quality fruit is fundamental to our
business, both for our organic and non-organic products," said
Aspall Director, Henry Chevallier Guild. "The five year conversion
initiative was started in response to the needs of our growing business.”
Brothers Henry and Barry, the eighth generation of the Chevallier
family to run Aspall, realised that fruit from their own 90-acre organic
orchards would be insufficient to meet the increasing demand for their
award winning cyder and cyder vinegar, and have now secured a sustainable
supply for the future without resorting to sourcing fruit from abroad.
Aspall is in talks with other local farmers to plant organic apple
orchards and also considering extending its own.
Health claims regulation hold-up
Adoption of the Nutrition and Health Claims Regulation has been unexpectedly
delayed after details of the legislation hit a stumbling block.
The 25-member state EC Council of Ministers was expected to rubberstamp
the legislation at a recent meeting, meaning it would come into force
in about November and apply from around May 2007.
But at the meeting, a legal technicality was discovered, meaning the
council was unable to move forward.
The problem stemmed from the legislation containing the wrong comitology,
which is the process in which the Commission, when implementing EU
law, has to consult special advisory committees made up of experts
from EU countries. This committee system oversees acts implemented
by the European Commission.
A new comitology procedure now needs to be included in the regulation,
which could end up taking some time and according to nutraingredients.com,
the issue could reopen the debate about the regulation between the
council and European Parliament.
Speaking at the Political Policy debate at the Natural Trade Show
Harrogate, Health Food Manufacturers Association director David Adams
said: “There is a legal technicality and it seems like a cock-up
in some of the phrasing of the legislation. It is likely to enter
into force in November but it is just conceivable that it might be
a few months, we don’t know at this stage.”
He went on to say: “There are a whole raft of outstanding issues
in terms of the phrasing of the legislation. This is a potential nightmare
for national enforcement; will some countries adopt a different approach
to enforcement than others.”
Harrogate Trade Show goes from strength to strength
The positive and uplifting atmosphere generated by the Natural Trade
Show Harrogate 2006 instilled a feeling of confidence that for those
that attended a better winter for sales growth is to come.
Visitor numbers were up by over 7% due to a show packed full of opportunities
and big industry names including Natures Aid, Solgar, This Mornings
resident doctor Dr Chris Steele and Dr Gillian McKeith plus many others.
The show ensured everyone was a winner thanks to a remarkable array
of exhibitors, new products and amazing prizes, which boosted the
appeal of exploring every inch of the show. A holiday to New Zealand,
£3,500 of retail stock, organic champagne, a full Healthnotes
kiosk worth £2,500 and much more up for grabs.
The Health Store Pavilion achieved a new record with 37 suppliers
joining together to make up an impressive stand. Their new THS Passport
competition, launched at the show, rewarded five lucky retailers with
thousands of pounds of retail stock!
Suppliers and stores alike were held in high esteem at the glittering
Gala Dinner Awards ceremony where the industry’s most prestigious
retail accolades were presented. Winners from the north and Ireland
received cash prizes totalling £1,500 and will appear in the
industry’s leading trade magazines.
Harrogate is by no means just a northern event, it is a national opportunity.
Whatever your reason for attending: be it to seek out new products,
new suppliers or network, learn from the best and meet industry celebrities
in our thought provoking education programme, have fun, relax or have
a well earned break Harrogate 2006 provided enough to fulfil your
individual needs. If you were hoping to see it all it was a challenge
to know where to start!
Don’t miss reading the show review which is packed full of news
from the show and will be landing on your doormat next week.
With Harrogate in September and Brighton in March buyers and suppliers
are able to attend events at the beginning of both the key trading
periods of the year; just before Christmas and at the start of spring.
It adds up to two distinct opportunities a year to keep up-to-date
on products, deals and education that will boost trade.
We hope you will be able to join us at the Natural Trade Show Brighton
2006 and if you would like to register your interest in attending
please click here
Retailers under attack for depression advice
A leading association has criticised the Royal College of Psychiatrists
for suggesting only one in 12 treatments for depression recommended
by a health food store work.
National Association of Health Stores chairman John McKee hit back
at a study that is critical of popular remedies such as St John’s
Wort, multivitamins, ginseng and gingko biloba.
The survey in the October issue of the Psychiatric Bulletin, which
is published by the college, aimed to assess the “appropriateness
of treatments” recommended by health food shop staff for symptoms
of mild-to-moderate depression.
Employees from 10 health food shops offering herbal remedies within
a three-mile radius of Leeds city centre took part, although were
not aware they were participants.
After a series of questions were asked, the researcher reported the
majority of staff didn’t ask additional questions before making
recommendations and only two asked if a GP had been consulted. One
explained she was not medically trained, and that it would be wise
to see the GP first.
Twelve different remedies were recommended, with multivitamins the
most popular.
In response to the report, McKee warned: “This type of research
is easy to do and can often make health food stores look foolish,
disjointed, and ill-informed. As well as this ‘ring-around’
on depression we understand that another organisation may be doing
a similar thing for cancer claims. This line of attack is easy to
do and always seems to yield the desired affect for those who want
to damage us. Health stores need to be on their guard.
“It was also flagged up by the 'researchers' that the one store
that actually did recommend St John's Wort did not mention the possible
effects on the pill even after the researcher said she was taking
it. We know that the links between the pill and SJW are poorly understood
and come from a small handful of case studies and hypothesis rather
than proven research. Failure to mention it does rather show that
we don't have all the facts at our fingertips.”
He also pointed out that staff having difficulty answering a query
should refer to a more knowledgeable member of staff.
“We should also exercise caution, particularly when dealing
with people we are not familiar with, and we should grasp every training
opportunity by the horns,” he added.
THMPD in spotlight at conference
The Health Food Manufacturers Association is offering an invaluable
opportunity for companies to stay on top of the with key legislation
updates affecting their business.
The one-day conference, called The THMPD and Herbals – Planning
the Future, is to be held on November 29.
Visitors to the conference will hear an update on regulatory developments
surrounding the Traditional Herbal Medicinal Products Directive from
a number of experts. This includes MHRA managers Dr Linda Anderson,
a pharmaceutical assessor, and head of borderline section David Carter.
In addition, experts in legislative, technical and advertising issues
will address the conference.
For more information on the conference, call 020 8398 4066 or email
office@hfma.co.uk
Fish oils study in children appalling, blasts charity
Education chiefs in Durham have been accused of causing potential
harm to children by conducting a study on fish oils.
The Vegetarian and Vegan Foundation is furious that Durham County
Council has announced plans to give 5,000 Year 11 pupils a daily supplement
of Omega 3 oils to assess whether they can boost attainment.
In response to the announcement by Durham County Council, the foundation’s
health campaigner Dr Justine Butler said: “The fish oil supplement
companies insist that these pollutants are removed during processing,”
says Dr Butler “but do you want your children to take the risk?
She highlighted incidences of fish oils being recalled due to dioxins
being present and added: “This experiment could lead to an environmental
and health catastrophe! Instead of looking for a magic bullet to improve
our kids brain power, we should be encouraging them to eat better
foods – less junk and more whole grains and fresh fruit and
vegetables.”
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