SPECIAL REPORT

Executives from the supply, manufacturing and retail channels of the healthy food and dietary supplement industries met in Scottsdale, AZ, for four days of networking, educational sessions and industry discussion at the 5th annual Focus on the Future Executive Conference & Retreat, presented by Virgo Publishing. More than 200 participants attended, a 30% increase over 2006, including representatives from Kraft Foods, Nestlé S.A., The Coca-Cola Company, Jones Soda, Now Foods, Wyeth Consumer Healthcare, XanGo, The Vitamin Shoppe, Natrol, Herbalife International and many other organizations.

For the first time, the education program, co-sponsored by InterHealth Nutraceuticals and Lesaffre Group, featured a healthy-food track of interactive, high-level sessions. The track debuted with a discussion by Steve French, managing partner, the Natural Marketing Institute, on trends related to health, wellness and sustainability. His overview of existing and impending trends focused on functional foods, energy and vitality, nutritional challenges for children and ethical consumerism.

Jim Tonkin, principal, Tonkin Consulting, assembled a panel of beverage experts for a special presentation on functional beverages: Steve Allen, vice president of new product development, Nestlé; David Jenkins, president and CEO, Next Proteins; and Peter van Stolk, president and founder, Jones Soda. The panelists called for more accountability regarding ingredient selection and use levels in these beverages, including the need for clinical trials to test ingredient efficacy. Educating consumers will also play a part. As van Stolk noted: You cannot talk beverages without talking marketing.

Diabetes was also discussed in the healthy-food track. This is a disease that we in America are going to have to deal with for a long time, said Cynthia Thomson, associate professor, University of Arizona, Tucson. She emphasized that, when properly formulated, a variety of generally healthy food products can appeal to those with type 2 diabetes, as well as to the general population.

Opening the second day of food-focused topics, a panel discussion on the regulatory challenges of designing functional food offered three unique perspectives. Anthony L. Young, Esq., partner, Kleinfeld, Kaplan and Becker, LLP, detailed the legal and regulatory status of functional foods and ingredients. Brad Holmes, CEO, Aloe Splash, discussed the process of developing and launching a new aloe vera beverage that is technically a dietary supplement. And Todd Abraham, vice president, global research and technology strategy, Kraft Foods, emphasized the company is committed to acting with legal and ethical rigor, which includes staying abreast of regulatory requirements and ensuring there is sound science behind any claims it makes. We play by food laws, he said. Were a food company, not a supplement company.

Financial performance of the functional-food sector is also thriving, according to Morgan Ley, principal, Canaccord Adams Investment Banking Group. In discussing the financial performance of health, wellness and lifestyle companies, he reviewed trends driving growth, offered advice for action, and noted that larger food companies are looking to functional foods to broaden their healthy portfolios.

Finally, Laurie Demeritt, president and COO, The Hartman Group, offered a peek into the mind of the consumer during her presentation on food habits and behaviors. In addition to outlining trends, as well as the factors driving those trends, she noted: The concept of functional foods is interesting to consumers, but the way it is being presented is not. It has been presented in a scientific, technical way, which gives it an unnatural lab connotation. Functional foods need to move toward regular eating.

Tonkin noted he found the Q&A sessions in the food track both spirited and educational. As conferences go, it was very well attended, and by individuals who were there to both learn and contribute, he said. The breadth of the topics covered on both days was also excellent, and the food track inaugurated this year was both needed and was well received.

But there was more to Focus on the Future than PowerPoint presentations. To kick the conference into action, golfers took to the greens for the Annual Golf Outing, sponsored by Deerland Enzymes. Later that evening, all participants attended a Welcome Reception, sponsored by National Enzyme Company. Following the reception, the Welcome Presentation, sponsored by Embria Health Sciences, was given by author and business owner James Malinchak. Attendees later enjoyed a Southwestern-themed dinner, sponsored by KGK Synergize.

Continental breakfasts were sponsored by Unigen Pharmaceuticals and WILD Flavors, while Watson Foods and Beijing Gingko Group sponsored session breaks. Evening happy hours were sponsored by Blue California and Lonza. Wednesdays lunch was sponsored by Source- One Global Partners; Thursdays lunch was sponsored by Kyowa Hakko. That evening, AIDP, Inc. sponsored a dessert reception and karaoke.

On Friday, participants ventured to the FBR Open. A catered lunch, snacks and an open bar were served in a private tent on the 18th hole. The event was cosponsored by the E.T. Horn Co., HerbaKraft, Life Sciences Research Office and Santa Cruz Nutritionals.

Overall, attendees lauded the event for its breadth and ability to help forge business connections. Unigen is a longtime sponsor of Focus on the Future, as we believe it is an outstanding opportunity to meet with some of the most influential leaders in the supplement and functional-food industries, said Doug Lynch, vice president of sales and marketing, Western Hemisphere, Unigen. The open exchange of ideas between manufacturers, marketers and retailers proved to be once again very educational to all attendees.