Issue #7 • Summer 2007 Editor's Note: A Double Standard? Features Company News Retail & Restaurant Community Sustainability Marketplace Around the State Events About Naturally Boulder News EDITOR'S NOTE A Double Standard? With competition in the natural and organic sector heating up from all sides, including many major conventional supermarket chains, Wal-Mart, Costco, Trader Joe's, independent natural foods stores and others, it is simply astounding in this editor's humble opinion that the Federal Trade Commission on June 5 announced that it plans to file a federal lawsuit opposing the proposed merger of Wild Oats Markets and Whole Foods Market. Both retailers have stated that they will "vigorously challenge the FTC in court." Of course, there are many who feel that the industry may be being consolidated into fewer and fewer hands. Yet this is also a sign of a maturing industry. The FTC lawsuit will argue that the marketplace is defined by natural and organic foods stores and not by the broader supermarket industry. Yet, according to New Hope Natural Media's latest market overview survey, slightly more than half of all natural and organic products sales occur outside traditional natural foods stores. Also, the industry is valued at nearly $57 billion; Wild Oats and Whole Foods combined sales would total approximately $8 billion. Compare that to overall U.S. grocery industry sales of more than $800 billion annually - that's the market in which Wild Oats and Whole Foods are really competing. As we are at ground zero in this debate, it affects many involved in the Naturally Boulder community. Both Wild Oats and Whole Foods, since their beginnings, have helped galvanize a movement into an industry that influences many people to eat healthier and become more aware of their impact on the environment. For these retailers to continue to be a strong force and a positive influence, this humble editor wishes them luck as they challenge a federal agency that has approved much larger mergers than the one being proposed in our industry. Please feel free to write me with your thoughts at news@naturallyboulderproducts.com. Yours in health, Steve Hoffman, Editor back to top FEATURES Wild Oats Markets and Whole Foods Market Will Challenge FTC's Opposition to Merger Wild Oats Markets, Inc. was informed on June 5th that the Federal Trade Commission (FTC) will file a lawsuit in Federal District Court to block Whole Foods Market, Inc.'s proposed acquisition of the Company, and seek a temporary restraining order pending the Court's ruling on the FTC's request for a preliminary injunction. "We continue to believe very strongly that this merger is in the best interest of all our constituents," said Greg Mays, Chairman and CEO of Wild Oats Markets. "...[W]e disagree with the FTC's position and believe it is without legal and factual merit, [w]e intend to cooperate with Whole Foods in all respects and to vigorously challenge the FTC in Court." Third Annual Naturally Boulder Day Set The third annual "Naturally Boulder Day" conference will be held on October 25-26 at the St. Julien Hotel & Spa in Boulder. Mo Siegel, founder of Celestial Seasonings, will be the keynote speaker. Sponsored by the City of Boulder and many local companies, the conference has doubled in size and is expected to attract over 400 entrepreneurs from the state and across the nation. To become a sponsor of Naturally Boulder Day, please contact seleyn@compassnatural.com for more information. Naturally Boulder Spring Fling Blossoms The Naturally Boulder Spring Fling, hosted on May 17 by Vermilion Inc. in Boulder, attracted over 200 merry-makers with organic food, drinks, and martinis. Naturally Boulder networking meetings are every 2nd Monday of the month, at different locations. The next networking night is June 11 from 5:00 - 7:00 p.m. at Trilogy Wine Bar. Organic Summit in Boulder The first Organic Summit conference will be held in Boulder on June 20-22, at the St Julien Hotel & Spa. Produced by Boulder-based New Hope Natural Media in partnership with Santa Cruz CA-based Organic Farming Research Foundation (OFRF), the conference is expected to draw 250 people. For more information visit www.theorganicsummit.com. Additionally, OFRF is hosting its fourth annual Midsummer's Eve Organic Benefit Reception & Dinner in conjunction with the conference at Pastures of Plenty Farm in Longmont on Thursday, June 21, 2007, from 6:00 to 9:00 p.m. to raise funds for OFRF's ongoing grant making, policy and public education programs. The event is co-hosted by lead sponsor Wild Oats Markets, and additional underwriters include Horizon Organic Dairy, Celestial Seasonings, New Hope Natural Media, Organic Vintners and the Fresh Ideas Group. For more information visit www.ofrf.org or call OFRF at (831)426-6606. Naturally Boulder Board of Directors Adds Three New Members Naturally Boulder's Board of Directors added three new board members - Arron Mansika, founder, Boulder's Best Organics; Aaron Kennedy, founder and CEO of Noodles & Company; and Mark Menagh, manager of the Boulder's Farmers Market. Doug Collier, formerly of the Boulder Innovation Center resigned from the board. The other board members are Linnea Simons, legal council, Caplan & Earnest; Steve Hoffman, president, Compass Natural LLC; Sylvia Tawse, president, Fresh Ideas Group; Dan Hedges, Director of Research and Development, Wild Oats Market; Frances Draper, Director, Boulder Economic Council; Joan Boykin, natural products industry veteran; Ellen Feeney, Director of Responsible Livelihood, WhiteWave Foods; and Mark Retzlof, president, Aurora Organic Dairy. Immigration Reform Hits Organic Farm Hit by immigration reform enforcement, Colorado organic farm Grant Family Farms has made an unlikely alliance with the anti-regulatory Mountain States Legal Foundation (MSLF). Like many organic farmers, Grant Family Farms uses labor agencies for farm workers. When five workers sued the labor agency used by Grant Family Farms in 2006, they also included the farm in their suit. Representing the farm is the Denver-based non-profit MSLF, who typically is hired to protect the rights of property owners, defend civil liberties, and promote limited government. Although MSLF is often on the anti-conservation side of an issue, Grant Family Farms has pioneered organic farming in Colorado for three decades, long championed environmental stewardship and supports many progressive causes. And farm owner Andy Grant has expressed that immigrants should be honored for their hard work and not criminalized. The case is still pending. Larabar Sales Near $20 million Larabar, the 7-year old organic raw food bar company based in Denver, saw sales approach $20 million last year, according to the Rocky Mountain News. Started with funding from family and friends, sales the first year were $400,000. The company says it is now profitable. The bars are co-packed in a certified organic facility in North Denver. Gluten-free Business Takes Off Colorado has six companies making gluten-free foods, and sales are on the rise thanks to increasing awareness of celiac disease, said the Rocky Mountain News. Celiac disease, which affects 1% of the population, causes digestive problems when gluten is eaten. Gluten is found in wheat, barley, rye, spelt, and oats, and is implicated in acne and cancer. Denver has the most producers: Deby's Gluten Free Gourmet, WaterCourse Bakery, and XDC Confections. Gluten-Free Pastry Chef is in Longmont, RAW is in Englewood, and Rheinlander Bakery is in Arvada. In related news, the second annual gluten-free culinary summit will be held August 17-19, 2007 in Denver. For more information, please visit www.theglutenfreelifestyle.com. WhiteWave Sells Tofu Business WhiteWave Foods Co, of Boulder, sold its original flagship product line to Melville, New York-based Hain-Celestial, whose Celestial Seasonings Group is based in Boulder. It will mark the first time since 1977 that the company does not make tofu, which saw sales of $8 million last year. Included in the sale are WhiteWave's non-meat protein products, such as TofuTown, baked and grilled tofu, seitan, and tempeh. Hain Celestial is not buying the WhiteWave name, but may use it for 1 year, according to the Rocky Mountain News. However, the TofuTown name is part of the sale. Hain-Celestial owns another meat alternative line, Yves Veggie Cuisine. WhiteWave Foods, owned by Dean Foods of Dallas, will concentrate on its Silk soy drink line. Demos Reveals Next Food Firm Steve Demos, founder of WhiteWave Foods, has revealed his next food venture: NextFoods. The announcement was made the same day his former company disclosed the sale of WhiteWave Foods' tofu line to Hain-Celestial, according to the Daily Camera. Demos waited until his non-compete expired to make the disclosure, leading to speculation that the new company would be competing with WhiteWave Foods or Hain-Celestial. Demos, who started making tofu at WhiteWave in 1977 on Pearl St., was mum on the details of his next food venture, but did say it would have the slogan "Nutrition, Efficacy, and Innovation." back to top COMPANY NEWS Whole Foods Market and Wild Oats Markets are fending off competition from Wal-Mart by reinvigorating their commitment to buying locally grown foods. This move is supported by growing consumer demand, fed by advocates such as author Michael Pollan, who claims that the energy invested in transporting food is part of the sustainability equation. A key feature of the new program is that local providers no longer have to send product to centralized distribution centers. Boulder-based Boulder Ice Cream has switched to exclusive use of eggs from cage-free chickens. Owner Scott Roy states that, in addition to the animal rights advantages of the policy, happier stress-free birds produce better tasting product. Freshies Food Corporation of Denver, the leading producer of all-natural drink mixers, broke its own record for first quarter profits with a 10.25% increase over Q1 2006. Denver-based Chipotle Mexican Grill reported quarterly profit growth of 56%, sending their stock price soaring. Dean Haskell of Morgan Joseph & Co. stated that he thinks that the results show that the company's 'Food with Integrity' (organic and natural ingredients) initiative is a good match to the chain's customers. Broomfield-based Horizon Organic Dairy has begun awarding $2,500 scholarships to students interested in pursuing organic milk production and alternative veterinary science. Pangea Organics of Boulder continues to grow significantly, with a 300% increase last year. Founder Joshua Onysko is not interested in selling the firm, however, preferring to nurture plans for a non-profit that will receive a percentage of sales and use the funds for research into sustainable living and business. Niwot-based Left Paw Pantry (formerly Pet Pantry, 303-652-6060) has doubled its customer base over the past year driven largely by a new interest in natural pet foods after the big national recall by Menu foods (and other companies, including Science Diet). The company does free door-to-door delivery of products from healthy alternative producers like Natural Balance and Evanger's. Boulder-based Mix1, a nutritional 'meal-in-a-drink' product, is going national after only two months on the shelves. The first big roll out is to Whole Foods, though the company is in talks with Ralphs and QFC. According to Jerard Whitehead, assistant grocery coordinator for Whole Foods, the sales have been spectacular and the decision to expand to all stores coast to coast was easy. Longmont-based Boulder Specialty Brands completed an acquisition of GFA Holdings Inc., the makers of Smart Balance and Earth Balance brands. The deal was worth $465 million and the combined company will be called Smart Balance (Nasdaq SMBL). Infinitea Kombucha is made in Boulder by founder Nicole Gervace's new company Meridian LLC. It is available at Whole Foods, Wild Oats, Ideal, Lucky's and Lolita's. According to Gervace, this fermented tea product is thought to improve digestion, detoxify the liver, support immune function, and balance body ph. Founder and farmer Michael Richter is planning on turning his 5-acre plot into Boulder County's (and Colorado's) first lavender farm. Richter is starting with 18,000 plants and hopes to eventually produce oils, soaps, and tea under the name Colorado Mountain Lavender. Bountea is a company that has just moved to Boulder that makes a 'compost tea' solution that re-energizes the ecology of soil so that plants grow more effectively. The main product is a brew kit which requires some user care and sophistication. But the company is also selling a less advanced version called Quantum Liquid Compost (QLC) at McGuckin's. back to top RETAIL & RESTAURANT Golden-based (and Boulder launched 20 years ago) Good Times burger chain is now exclusively using Coleman beef. Founder Boyd Hoback states that smaller chains need to compete with the McDonalds' of the market on something other than price, so switching to premium ingredients and the elimination of transfats is actually a growth strategy. Boulder-based Sunflower Farmers Markets is building a 28,000 square foot store in Greeley that will be that city's first major natural foods outlet. This is the chain's sixth store in Colorado, and it has plans for stores in Denver, Greenwood Village and Boulder. Piazano's is a small restaurant that operates out of the first floor of the Cheyenne Arapahoe Hall on the Boulder University of Colorado campus. Head chef William Kardys says that the food is all-natural and 80 percent organic. Although most of the customers are students buying with pre-paid meal cards, the public is welcome. Boulder's Best Organics, makers of organic gift collections exclusively from Boulder companies, now offers four varieties of Gift Collections through Art Mart on the Pearl Street Mall. The company announced it has added Eldorado Natural Spring Water and Zambeezi organic beeswax lip balm to its selection of Boulder brands. Boulder-based Big Bang Catering is the latest project of Lyle Davis, a co-founder of Alfalfa's Market. Davis says that the company's food preparations are unusually fresh because he uses produce and decorative flowers from his own 35-acre Boulder County organic farm called Pastures of Plenty. The Organic Dish at 4920 Old Pearl St., Unit C serves Boulder's 'too-busy-but-still-want-to-cook' market by creating recipes, buying ingredients and pre-chopping everything so all the customer has to do is take it home and follow the kitchen instructions. For more information please visit www.theorganicdish.com. Bradford Heap, former chief chef and partner for Full Moon Grill and Chautauqua Dining Hall, is founding a new French and Italian restaurant in Niwot called Colterra. Heap says his ingredients will emphasize sustainably grown sources, including his own garden. Boulder's Organica Café & Espresso Bar (Walnut and 17th) has top-quality organic coffee, chai, wraps, sandwiches and�free WiFi. The GreenSpot is located on Boulder's Pearl Street Mall in the basement spot formerly occupied by Subway. The store offers organic snacks and deli food, but also alcohol and tobacco in order to meet a wide variety of customer needs. Founder James Monk states that he is trying to fill a niche among local health-spots, particularly serving a younger late-night crowd that will appreciate the store being open until 2:00 a.m. Boulder's Rebecca's Herbal Apothecary and Supply is hosting a June 18th class devoted to the herbalist philosophy and practices of 12th century mystic Hildegard of Bingen. For more information please visit www.rebeccasherbs.com. Organic Orbit Energy Food Café (near Broadway & Yarmouth) is a recent addition to the Boulder restaurant scene. Head chef Michael Farrell's previous kitchens have won awards from Zagat and Wine Spectator. Founder Phil Thyen says he is dedicated to combining a sense of a deep connection with nature and a commitment to world class cuisine. The café has a full day's offerings from morning smoothies to lunchtime sandwiches and elegant dinners. back to top COMMUNITY Boulder-based ConserveED (www.conservED.org) is a non-profit that educates individuals in schools, companies, and churches about their planetary eco-impact and the effect that sustainability can have on personal well being. One of their important projects and income streams is the biannual Green Heart Guide which, according to executive director Diane Dandeneau, is a good directory for natural food companies to list in. Boulder County Business Report will be holding its 8th annual IQ (Innovation Quotient) Awards honoring the most innovative products and services from companies in Boulder, Broomfield, and the Denver/Boulder corridor. A new Sustainable Business Category has been added this year. Companies can be nominated online at www.IQawards.com. A book, Hanna Kroeger Natural Healer: A Dissertation on Her Work by Ginger Bowler is on long-time Boulder area healer Hanna Kroeger's methods for working with anxiety and depression has been written by Ginger Bowler. Call (303)442-0816 or order online at www.EnergyMedicineMinistries.com. back to top SUSTAINABILITY Boulder residents can now participate in a free pilot City program that will attempt to show the feasibility of collecting and recycling Nylon carpets. The old rugs will be processed by an Englewood company called All Recycling who will sort for Nylon and chew up the fibers to provide material to Georgia-based carpet maker, Shaw industries. To drop off your contributions go to the Center for ReSource Conservation at 2665 N. 63rd Street. Denver-based legal firm Holland & Hart is starting a Climate Change Practice Group that will specialize in services to companies facing large scale sustainability issues. The client work will include employee and traffic management for ski areas, intellectual property in alternative energy firms, and U.S. Green Council construction standards compliance. Denver-based organic fertilizer manufacturer Biosol USA has a new website www.BiolsolUSA.com. Boulder-based FeelingBold, www.feelingbold.com, which specializes in products that have positive messages for women, has a line of organic cotton shirts. Founder Claudine O'Leary emphasizes that cotton farming accounts for 3% of the world's farmland and 25% of world's insecticides. Also, an organic line of yoga-inspired tee-shirts with phrases for inspiring women can be found at Boulder-based Tees For Change, www.teesforchange.com. Ann Livingston has been selected to fill a new Boulder County government position called Sustainability Coordinator. Her role will focus on policies and programs that are both green and socially equitable. Colorado has a growing, yet controversial, corn-based ethanol industry. The price of gas has made if very attractive for farmers in places like Yuma to plant more acres and to invest in conversion facilities. But all of this activity is very water intensive and there are claims in court, which may give large quantities of the water to neighboring states such as Kansas. Also, there is the recurring debate regarding whether ethanol is a net energy gain or drain. According to Ric Kethcart, chairman of Western Biofuels Development, the per bushel yield of ethanol has gone up 25% and fertilizer use is down 20% in the last decade. Boulder diving shop Scuba Joe (now renamed Ocean First Divers) has been purchased by Graham Casden, who says that he plans to add solar panels to the roof, do a green rebuild with recycled materials, and buy enough carbon credits to off-set the energy used in travel for arranged tours. Casden says that divers are naturally sympathetic to this approach because they can see the drastic affects of global climate change on the world's oceans. Boulder isn't the only city going green in Colorado. Denver recently planted 7000 trees in 7 days to kick off its 'Greenprint Denver' program. Durango is expanding its renewable energy percentage from 10 to 100. Carbondale is developing a green building code that will make energy efficiency stricter when houses are larger. Perhaps the most unusual program is at the Denver Zoo where methane from elephant dung is being used for power and heat. The new Peetz Table Wind Energy Center in Logan County will comprise 267 GE wind turbines and will generate 400 megawatts (power for 120,000 homes), making it the second largest facility in the nation. Completion is expected in just six months after ground breaking ceremonies. The power line from Peetz will be 78 miles long and will thus break the world record. Colorado governor Bill Ritter noted at the dedication that our state is the 11th windiest and 6th sunniest in the United States. back to top MARKETPLACE Denver-based Bamboo Zoo, an educational firm that encourages children to make healthy choices using multimedia products, is looking for independent sales reps. For information please visit www.bamboo-zoo.com. The Guide to Health and Healing Magazine is seeking volunteers and interns. Skills needed are web design, pod castings, search engine maximization, computer programming in InDesign, and Illustrator. Also, non-profit support is needed with regard to grant writing and magazine ad sales. For more information, please visit www.theguidetohealthandhealing.com. back to top AROUND THE STATE Students at the University of Colorado in Fort Collins are developing a student club (est. 1998) that grows and sells its own organic foods. The crops involved include garlic, Brussels sprouts, raspberries and rhubarb. Basalt will be the first Colorado mountain town to get a Whole Foods Market outlet. The 44,000 square foot store will be completed in 2010. According to Cathy Cochran-Lewis, Rocky Mountain regional marketing director for Whole Foods, the locale is justified by the fact that people from all over the Roaring Fork Valley have been driving to Denver to shop. Dave Carter, executive director of the Westminster-based National Bison Association says that the alternative red meat is going through strong market growth ($145 million in 2006) because it is sustainable an a good health food because it is low in fat and high in Omega 3 fatty acids. Clean Air Lawn Care of Fort Collins (www.cleanairlawncare.com) uses high-tech battery powered low-noise lawn mowers and bio-diesel trucks. The company is carbon-neutral because it also uses wind energy credits to offset office consumption. Additionally, all lawn clippings are composted. MouCo Cheese Company of Fort Collins has received a low-interest loan of $40,000 from Whole Foods Market as part of the Austin retailer's producer loan program. This program is expected to total $10 million in the Rocky Mountain region this year. MouCo recaptures 80% of its waste heat and encourages customers to send back packing materials to them for reshipment. According to co-founder Robert Poland, the resending policy allows MouCo to invest in a nicer box and also prevents 1,000 pounds of waste from entering landfill each month. back to top EVENTS Bob Kenny will be giving a talk in Boulder on Friday, June 8th 7:00pm - "Making Sense of Money: Aligning Money and Values". This is the opening presentation of workshop - June 8-10 at Naropa's Paramita Campus 3285 30th Street, Boulder, 80301. Peter Goldmark will be giving a lecture on Thursday evening June 14th 7:00 p.m. "Non-Profits, on Your Mark: Running the Most Important Race Humans Have Ever Run". Peter is the Director of the Climate and Air Program at Environmental Defense, and was the eleventh President of The Rockefeller Foundation. The talk will be at Naropa's Nalanda Campus Event Center 6287 Arapahoe Avenue, Boulder. This is the opening lecture for Authentic Leadership for Social Entrepreneurs: Creating Successful Nonprofits and Social Enterprises with Susan Skjei and Mark Wilding. To register for Marpa Center events call (303) 245-4800. See more program details at: www.naropa.edu/extend/marpa/programs.cfm. back to top ABOUT NATURALLY BOULDER NEWS Naturally Boulder News is distributed to Boulder and Colorado-area natural, organic and healthy lifestyles businesses, and other interested individuals. For a free subscription, visit www.naturallyboulderproducts.com. Please share your news with us at news@naturallyboulderproducts.com, and feel free to share this newsletter with your friends and colleagues. For more information on Naturally Boulder's business-promoting activities, visit www.naturallyboulderproducts.com. © 2007, Naturally Boulder Task Force, published by the Naturally Boulder Task Force, an economic development initiative supported by the City of Boulder, CO, with a mission to promote the growth of natural and organic business in the Boulder area. All rights reserved. Editor: Steve Hoffman, Compass Natural LLC, news@naturallyboulderproducts.com Associate Editor: Seleyn DeYarus, Compass Natural LLC, seleyn.deyarus@naturallyboulderproducts.com Contributor: Matthue DeYarus, matthuedeyarus@yahoo.com Design, Web: Heather Morgan, Canvas Interactive, heather@canvasinteract.com Chair: Linnea Simons, Caplan and Earnest, lsimons@celaw.com City: Frances Draper, Boulder Economic Council, frances.draper@boulderchamber.com back to top