Industry Responds to Katrina Disaster

NEW ORLEANS--Hurricane Katrina has halted operations of some natural products industry companies across southern Louisiana, Mississippi and Alabama. With parts of the states largely submerged by flood waters and facing potential water-borne illnesses, armed looters and other dangers, industry companies without backup facilities have likely temporarily suspended their operations.

Phytoceutical Formulations is a manufacturer of dietary supplements based in Mandeville, La., which is situated opposite New Orleans on the edge of the overflowed Lake Pontchartrain. Calls and e-mails to the company asking about the status of its operations and personnel were unsuccessful.

Eurofins announced in an e-mail blast that its GeneScan laboratory located in New Orleans will be temporarily closed. Samples are being handled through MWG Biotech Inc. in High Point, N.C., and Eurofins' Des Moines, Iowa, locations.

Some companies have not closed their doors, in spite of the chaos. One manufacturer that remains fully operational is The Wright Group, based in Crowley, La. "Wright is over 100 miles northwest of New Orleans, where the most extensive damage occurred as a result of this storm. Our facility did not experience any manufacturing delays or shutdowns related to the storm," S.L. "Sam" Wright, president and chief executive officer (CEO), said in a company statement. "We want to reassure our customers that they can continue to expect superior quality and complete customer support. Our thoughts are with our friends and neighbors as they recover from Hurricane Katrina."

Whole Foods Markets Inc. reported its two South Florida locations had closed after the initial landfall of Katrina, but have since been reopened, having experienced some property loss but no significant damage. However, the retailer's locations in New Orleans and Metairie remain closed until further notice. Company management has not been able to access these stores to assess damage and loss. Based on reports to the company, both stores have probably suffered severe wind and water damage, leading to structural damage and complete loss of inventory. However, the Baton Rouge store re-opened on Aug. 30, with no damage and only minor inventory loss due to power outage. Whole Foods estimates Katrina's impact on quarter sales to be in the $5 million to $6 million range.

Industry organizations not directly affected by the disaster are mobilizing to help. Santa Barbara, Calif.-based Vitamin Angel Alliance will send multiple vitamins and children's chewable vitamins next week to combat malnutrition and opportunistic infections among refugees from Hurricane Katrina. The organization has consolidated shipments in Texas and expects to truck them in to the affected areas by early next week. "Within 12 hours after the news on Hurricane Katrina broke, companies were calling us offering to help," said Howard B. Schiffer, president of the Vitamin Angel Alliance. Anthony Alfonso, president of Nutri-Force Nutrition said, "Our neighbors need us and we will be there for them. Living in Miami we know first hand what they are going through." NOW Foods and Pharmachem Laboratories are organizing major donations for the relief effort. "We expect large donations in the coming weeks," Schiffer said. "Our intention is to keep this warehouse full so we can help the refugees stay healthy during the coming months."

The National Nutritional Foods Association (NNFA) also launched an aggressive campaign to help the victims of Hurricane Katrina through its creation of the NNFA Retailer Relief Fund. In order to ensure that donations to the fund will be tax deductible, all contributions will be channeled through the Natural Products Foundation. "We want to do everything we can to help the victims who have suffered from the devastation of Katrina, whether they are everyday citizens or fellow natural products businesses," said David Seckman, NNFA's executive director and chief executive officer (CEO). Those wishing to donate through NNFA can elect to have their donations sent to the NNFA Retailer Relief Fund or to either the American Red Cross or Salvation Army's hurricane relief funds. All checks should be made payable to the Natural Products Foundation and donations are tax deductible. Payments should be sent to: Natural Products Foundation, c/o NNFA, 2112 E. Fourth St., Suite 200, Santa Ana, CA 92705, Attn: Retailer Relief. For questions, please contact NNFA at (202) 223-0101.

Contributions to the NNFA Retailer Relief Fund will go directly toward helping NNFA member retailers who sustained damage due to Hurricane Katrina. NNFA's Southwest and Southeast Regions are working in close partnership with NNFA's national office to identify retailers in need of assistance. "We urge any store owners who suffered damage from Katrina to contact their NNFA regional offices for help," said David Taylor, NNFA's president and the owner of the Nature's Harvest Market retail chain in Florida. Those wishing to identify stores in need should contact Carylene Reed of NNFA Southeast at (800) 828-7250 (for Florida, Alabama, Mississippi and Georgia) or Dale Power-Wells of NNFA Southwest at (517) 575-0119 for Louisiana.

Editor's Note: If you have further information on companies affected by Katrina or response efforts underway, please get in touch with Heather Granato, Group Editor, at (480) 990-1101, ext. 1305, or [email protected].