1.28.2005
1.19.2005
1.13.2005
Soft Vinyl Weaves Through a Designer’s Vision to Redefine Flooring
There’s no denying the creative talents of nationally acclaimed designer Sandy Chilewich, but she’s also proving to be quite the entrepreneur. Her unique brand of vinyl flooring accentuates spaces from European auto shows to the showrooms of Herman Miller, Inc. And sales of her creation continue doubling each year.
She found an “aesthetic and interesting” choice in vinyl in 2001 when looking for a versatile textile to match her interest in fabric coloration and weaving. Chilewich’s passion for reinterpreting textile applications led her and husband architect Joe Sultan to design an alternative to conventional flooring. The result of their creative vision was Plynyl™ – a woven fabric made of extruded vinyl yarn with a polyester core, and bonded to a soft polyurethane cushion. “The underlying attraction of Plynyl is that it can be used everywhere in a variety of colors and thicknesses,” said Chilewich. “It also provides a more utilitarian, modern, cool surface in place of traditional carpeting.”
The founder of HUE Hosiery, a successful company she sold in 1992, earned recognition in 1999 with her Raybowl™ creations. The bowls come in a variety of colors and unique concave shapes, each featuring a fabric fit taut around a metal frame.
Plynyl’s visual qualities and durability earned Chilewich the 2001 International Contemporary Furniture Fair Award. She’s landed installations at the 9,000-square-foot New York showroom of Herman Miller, Inc., the renowned global designer and manufacturer of contemporary furnishings and interior products. Plynyl also covered 18,000 square feet of space at the Renault International Auto Show in Geneva.
Its modern, metallic look and durability under the foot traffic of an exhibit showroom also made it a material of choice for Renault shows in Paris, Frankfurt and Tokyo over the past two years.
“Plynyl is tough enough for commercial use and for cars to park on it – but it is also perfect for businesses and even homes with dogs and children,” Chilewich said.
It is available in a multitude of rich woven textures and colors ranging from high-tech “metallics” to the natural look of sisal. It comes in rolls and pre-cut mats, providing unlimited design possibilities. Pre-cut Plynyl mats are ideal for residential and commercial environments because the edges are not bound and provide a thin sleek profile.
The true richness, softness and subtle natural weave texture of the fabric is on full display when Plynyl is installed in sheets as a wall-to-wall application, where it can be simply glued down to the floor as in the case of resilient flooring or carpet, with the polyurethane backing providing a non-skid surface.
Because the fabric and backing are soft, installing Plynyl over concrete or wood panel products and cutting with conventional carpet installation knives is easy. Installers can use either multi-purpose or releasable adhesives, or seam sealers, depending on the expected traffic and application. Since Plynyl is similar to vinyl composition tile in thickness, similar transition strips can be used if required. The floor covering is guaranteed to maintain its texture and appearance for 10 years.
Taking vinyl out of its traditional context, Chilewich has built a successful brand from her innovative use of the material for many consumer products, including bags, placemats and area rugs. She is now working vinyl into yet another innovation.
“The durability of the yarn, its tremendous design versatility and the fact that it is washable has inspired me to create a modern interpretation of lace and crochet for window treatments,” she said.
In partnership with Silent Gliss, a European shade manufacturer, she makes vinyl windowLACE, a semitransparent, finely woven vinyl-fiberglass screen in a variety of open work patterns.
For more information on Plynyl and Chilewich’s work, visit http://www.chilewich.com/. For Silent Gliss, visit http://www.homecollection.info/.
Search in... ------------ News Innovative Uses
VInyl
Few materials can stand up to the excessive cleaning of sterile environments. Vinyl flooring is impervious to water and welded seams can prevent contaminants from being lodged in the seam area.
— Mo Stein, AIA, The Stein-Cox Group
She found an “aesthetic and interesting” choice in vinyl in 2001 when looking for a versatile textile to match her interest in fabric coloration and weaving. Chilewich’s passion for reinterpreting textile applications led her and husband architect Joe Sultan to design an alternative to conventional flooring. The result of their creative vision was Plynyl™ – a woven fabric made of extruded vinyl yarn with a polyester core, and bonded to a soft polyurethane cushion. “The underlying attraction of Plynyl is that it can be used everywhere in a variety of colors and thicknesses,” said Chilewich. “It also provides a more utilitarian, modern, cool surface in place of traditional carpeting.”
The founder of HUE Hosiery, a successful company she sold in 1992, earned recognition in 1999 with her Raybowl™ creations. The bowls come in a variety of colors and unique concave shapes, each featuring a fabric fit taut around a metal frame.
Plynyl’s visual qualities and durability earned Chilewich the 2001 International Contemporary Furniture Fair Award. She’s landed installations at the 9,000-square-foot New York showroom of Herman Miller, Inc., the renowned global designer and manufacturer of contemporary furnishings and interior products. Plynyl also covered 18,000 square feet of space at the Renault International Auto Show in Geneva.
Its modern, metallic look and durability under the foot traffic of an exhibit showroom also made it a material of choice for Renault shows in Paris, Frankfurt and Tokyo over the past two years.
“Plynyl is tough enough for commercial use and for cars to park on it – but it is also perfect for businesses and even homes with dogs and children,” Chilewich said.
It is available in a multitude of rich woven textures and colors ranging from high-tech “metallics” to the natural look of sisal. It comes in rolls and pre-cut mats, providing unlimited design possibilities. Pre-cut Plynyl mats are ideal for residential and commercial environments because the edges are not bound and provide a thin sleek profile.
The true richness, softness and subtle natural weave texture of the fabric is on full display when Plynyl is installed in sheets as a wall-to-wall application, where it can be simply glued down to the floor as in the case of resilient flooring or carpet, with the polyurethane backing providing a non-skid surface.
Because the fabric and backing are soft, installing Plynyl over concrete or wood panel products and cutting with conventional carpet installation knives is easy. Installers can use either multi-purpose or releasable adhesives, or seam sealers, depending on the expected traffic and application. Since Plynyl is similar to vinyl composition tile in thickness, similar transition strips can be used if required. The floor covering is guaranteed to maintain its texture and appearance for 10 years.
Taking vinyl out of its traditional context, Chilewich has built a successful brand from her innovative use of the material for many consumer products, including bags, placemats and area rugs. She is now working vinyl into yet another innovation.
“The durability of the yarn, its tremendous design versatility and the fact that it is washable has inspired me to create a modern interpretation of lace and crochet for window treatments,” she said.
In partnership with Silent Gliss, a European shade manufacturer, she makes vinyl windowLACE, a semitransparent, finely woven vinyl-fiberglass screen in a variety of open work patterns.
For more information on Plynyl and Chilewich’s work, visit http://www.chilewich.com/. For Silent Gliss, visit http://www.homecollection.info/.
Search in... ------------ News Innovative Uses
VInyl
Few materials can stand up to the excessive cleaning of sterile environments. Vinyl flooring is impervious to water and welded seams can prevent contaminants from being lodged in the seam area.
— Mo Stein, AIA, The Stein-Cox Group
Vinyl Tops Canada’s Busiest Airport
Architectural firms charged with creating a new terminal at Toronto’s Pearson International Airport found vinyl was the best roofing material to meet all the demands of this unique design. Read more about why vinyl was chosen in this part of a $4.4 billion redevelopment project at Canada’s busiest airport.
Is PVC Green?
Our interactive forum allows you to speak your mind on the pvc issue by voting. Classic American Democracy. You can also download the USGBC's draft report on the issue.
Click here to check out our forum vote and download the report
Click here to check out our forum vote and download the report
1.12.2005
USGBC Draft Report Shows Vinyl Building Products Have Comparable Impacts to Products Made of Competing Materials
Expert Group Recommends No Credit for Eliminating Vinyl Or 'Any Particular Material'
FOR IMMEDIATE RELEASE (Dec. 22, 2004)
Contact: Allen Blakey
(703) 741-5666
allen_blakey@plastics.org
ARLINGTON, Va., -- A new draft report from the U.S. Green Building Council's (USGBC) PVC Task Group finds that the environmental and health impacts of vinyl used in building products are comparable to those of competing materials, the Vinyl Institute said today.
The Task Group, which for nearly two years studied vinyl and some of the principal competing building product materials, recommended against a credit for excluding vinyl in the LEED rating system, stating that "the available evidence does not support a conclusion that PVC is consistently worse than alternative materials on a life cycle environmental and health basis." The LEED (Leadership in Energy and Environmental Design) rating system is one of the most popular, fastest-growing rating systems for "green" building in use today.
Neither vinyl nor any competing material deserves to be eliminated based on the current body of knowledge, according to the Task Group.
Tim Burns, president of the Vinyl Institute said, "This report shows a great amount of detailed analysis. We will study the report in depth, but our preliminary sense is that the Task Group took a comprehensive scientific approach. The findings appear to be consistent with those from other studies such as the European Commission's recent Life Cycle Assessment of PVC and of Principal Competing Materials, which found vinyl's environmental impacts to be similar to those of competing materials."
The Task Group acknowledged that data gaps exist and pointed out that additional research needs to be done on the risks associated with competing materials. Burns said, "We appreciate the fact that data gaps exist, and our industry remains committed to developing scientific information to address questions that affect decisions about using vinyl. We are confident that additional research will help architects, designers, builders and homeowners further appreciate vinyl's benefits."
The PVC Task Group was formed in 2002 by USGBC to evaluate the environmental and health performance of vinyl as a building material in four product areas: drain/waste/vent pipe, windows, siding and flooring. The Task Group has reviewed thousands of studies on vinyl and competing materials. The report finds some uses of vinyl have greater impact while others have less impact.
The Task Group's findings combine life-cycle and risk-assessment analyses.
"Available evidence shows that vinyl products can contribute to the environmental performance of sustainable buildings," Burns said. "Whether it is the energy savings provided by vinyl windows or the resource conservation of durable products like pipe, siding and flooring, vinyl has a place in 'green' buildings."
USGBC invites comments on the report, which are due Feb. 15.
The report is available at USGBC's web site for the Task Group review, http://www.usgbc.org/Docs/LEED_tsac/USGBC_TSAC_PVC_Draft_Report_12-17-04.pdf
***
Founded in 1982, the Vinyl Institute is a national independent trade association representing the leading manufacturers of vinyl plastics, as well as makers of vinyl feedstocks, additives, and film and sheet products.
FOR IMMEDIATE RELEASE (Dec. 22, 2004)
Contact: Allen Blakey
(703) 741-5666
allen_blakey@plastics.org
ARLINGTON, Va., -- A new draft report from the U.S. Green Building Council's (USGBC) PVC Task Group finds that the environmental and health impacts of vinyl used in building products are comparable to those of competing materials, the Vinyl Institute said today.
The Task Group, which for nearly two years studied vinyl and some of the principal competing building product materials, recommended against a credit for excluding vinyl in the LEED rating system, stating that "the available evidence does not support a conclusion that PVC is consistently worse than alternative materials on a life cycle environmental and health basis." The LEED (Leadership in Energy and Environmental Design) rating system is one of the most popular, fastest-growing rating systems for "green" building in use today.
Neither vinyl nor any competing material deserves to be eliminated based on the current body of knowledge, according to the Task Group.
Tim Burns, president of the Vinyl Institute said, "This report shows a great amount of detailed analysis. We will study the report in depth, but our preliminary sense is that the Task Group took a comprehensive scientific approach. The findings appear to be consistent with those from other studies such as the European Commission's recent Life Cycle Assessment of PVC and of Principal Competing Materials, which found vinyl's environmental impacts to be similar to those of competing materials."
The Task Group acknowledged that data gaps exist and pointed out that additional research needs to be done on the risks associated with competing materials. Burns said, "We appreciate the fact that data gaps exist, and our industry remains committed to developing scientific information to address questions that affect decisions about using vinyl. We are confident that additional research will help architects, designers, builders and homeowners further appreciate vinyl's benefits."
The PVC Task Group was formed in 2002 by USGBC to evaluate the environmental and health performance of vinyl as a building material in four product areas: drain/waste/vent pipe, windows, siding and flooring. The Task Group has reviewed thousands of studies on vinyl and competing materials. The report finds some uses of vinyl have greater impact while others have less impact.
The Task Group's findings combine life-cycle and risk-assessment analyses.
"Available evidence shows that vinyl products can contribute to the environmental performance of sustainable buildings," Burns said. "Whether it is the energy savings provided by vinyl windows or the resource conservation of durable products like pipe, siding and flooring, vinyl has a place in 'green' buildings."
USGBC invites comments on the report, which are due Feb. 15.
The report is available at USGBC's web site for the Task Group review, http://www.usgbc.org/Docs/LEED_tsac/USGBC_TSAC_PVC_Draft_Report_12-17-04.pdf
***
Founded in 1982, the Vinyl Institute is a national independent trade association representing the leading manufacturers of vinyl plastics, as well as makers of vinyl feedstocks, additives, and film and sheet products.
TAKING A STEP IN THE WRONG DIRECTION, US GREEN BUILDING COUNCIL ALIGNS WITH INDUSTRY TRADE GROUPS ON PVC PLASTIC AND WOOD PROPOSALS
For Immediate Release:
January 10, 2005
Contact: Margie Kelly/Healthy Building Network
541-344-2282 margiek@efn.org
Based on "Cigarette Science," USGBC's Draft Policies Threaten Market Trends Toward Safer Materials and Undermine Emerging Consensus on Building Materials
Washington, DC - The Healthy Building Network (HBN), an environmental advocacy organization, today denounced proposals drafted by the US Green Building Council (USGBC) that advance the interests of chemical and timber industry trade groups at the expense of growing market trends favoring safer and healthier building materials.
In late December, a USGBC task force considering whether to offer a credit for PVC elimination under its LEED green building rating system issued a draft report concluding that PVC "does not emerge as a clear winner or loser" as a green building material. The task force adopted recommendations of industry trade groups, and rejected approaches recommended by environmental health experts.
"The USGBC's proposals utilize discredited 'cigarette science' to undermine leaders in the green building field, contradict established environmental policy goals, and threaten emerging market trends moving away from PVC, the worst plastic for the environment," said Bill Walsh, National Coordinator of HBN.
The USGBC's draft finding contradicts decisions industry leaders such as Kaiser Permanente, Shaw Carpet, and McDonough Braungart Design Chemistry, green building leaders that have taken steps to eliminate PVC, the world's largest material source of dioxin, the most toxic substance known to science.
PVC or vinyl plastic has become a major building material, used for pipes, flooring, wall coverings, and more. Because production, use, and disposal of PVC poses substantial environmental and human health hazards, national, state, and local governments, manufacturers, and green building professionals have eliminated certain uses of PVC for environmental reasons.
A separate USGBC task force proposed the recognition of timber industry wood certification standards condemned by forest conservation groups and leaders in the sustainable wood products business. This will undermine the widely accepted Forest Stewardship Council (FSC) certification of wood products.
"PVC and wood from clearcut forests are the antitheses of green building materials. By endorsing their use, the USGBC is risking its leadership in the field," said Walsh. Public comments on both draft proposals are due in February.
# # #
January 10, 2005
Contact: Margie Kelly/Healthy Building Network
541-344-2282 margiek@efn.org
Based on "Cigarette Science," USGBC's Draft Policies Threaten Market Trends Toward Safer Materials and Undermine Emerging Consensus on Building Materials
Washington, DC - The Healthy Building Network (HBN), an environmental advocacy organization, today denounced proposals drafted by the US Green Building Council (USGBC) that advance the interests of chemical and timber industry trade groups at the expense of growing market trends favoring safer and healthier building materials.
In late December, a USGBC task force considering whether to offer a credit for PVC elimination under its LEED green building rating system issued a draft report concluding that PVC "does not emerge as a clear winner or loser" as a green building material. The task force adopted recommendations of industry trade groups, and rejected approaches recommended by environmental health experts.
"The USGBC's proposals utilize discredited 'cigarette science' to undermine leaders in the green building field, contradict established environmental policy goals, and threaten emerging market trends moving away from PVC, the worst plastic for the environment," said Bill Walsh, National Coordinator of HBN.
The USGBC's draft finding contradicts decisions industry leaders such as Kaiser Permanente, Shaw Carpet, and McDonough Braungart Design Chemistry, green building leaders that have taken steps to eliminate PVC, the world's largest material source of dioxin, the most toxic substance known to science.
PVC or vinyl plastic has become a major building material, used for pipes, flooring, wall coverings, and more. Because production, use, and disposal of PVC poses substantial environmental and human health hazards, national, state, and local governments, manufacturers, and green building professionals have eliminated certain uses of PVC for environmental reasons.
A separate USGBC task force proposed the recognition of timber industry wood certification standards condemned by forest conservation groups and leaders in the sustainable wood products business. This will undermine the widely accepted Forest Stewardship Council (FSC) certification of wood products.
"PVC and wood from clearcut forests are the antitheses of green building materials. By endorsing their use, the USGBC is risking its leadership in the field," said Walsh. Public comments on both draft proposals are due in February.
# # #
12.05.2004
Rocket Fuel Contaminates Lettuce and Milk
Environmental Working Group www.ewg.org
FOR IMMEDIATE RELEASE: Nov. 29, 2004
CONTACT: Bill Walker or Renee Sharp, EWG, (510) 444-0973
Federal Tests Confirm Nationwide Rocket Fuel Contamination of Milk, Lettuce
WASHINGTON — Federal investigators have found a toxic rocket fuel chemical in almost all of more than 200 samples of lettuce and milk collected nationwide, in concentrations well above the level considered safe in drinking water by the U.S. EPA and Massachusetts health officials.
The federal tests, completed in August and posted online this week, confirm previous findings by the Environmental Working Group, university researchers and California journalists, but are the first to document nationwide contamination of food. The results provide startling new evidence that perchlorate, the explosive component of solid rocket fuel, is moving from the hundreds of places where it is known to contaminate water supplies into the nation's food supply.
"With these results, it's time for health officials, perchlorate polluters and food producers to stop stalling by saying we need more studies," said Renee Sharp, an EWG senior analyst. "Rocket fuel is in our water, in vegetables, in milk. How much more evidence do we need to take action?"
According to the EPA's preliminary risk assessment, currently under review by the National Academy of Sciences, exposure to the chemical should not exceed 1 part per billion (ppb) in drinking water — the same level adopted by Massachusetts. Health officials in California have set a preliminary safety standard of 6 ppb.
Perchlorate can affect the thyroid gland's ability to make essential hormones. For fetuses, infants and children, disruptions in thyroid hormone levels can cause lowered IQ, mental retardation, loss of hearing and speech, and motor skill deficits.
All three jurisdictions concluded that perchlorate exposure should be limited to a few parts per billion, but based on growing evidence showing harm at very small doses, EWG argues that a drinking water standard should be no more than one-tenth EPA's recommended level.
Previous studies have shown that the rocket fuel chemical, leaking from hundreds of military bases and defense contractors' facilities, concentrates in lettuce grown with contaminated irrigation water. When contaminated water is used to grow alfalfa, cattle feeding on the hay take in the chemical and pass it on in their milk.
In the new studies, the Food and Drug Administration reported finding perchlorate in 217 of 232 samples of milk and lettuce in 15 states.
FDA tested 104 samples of low-fat and whole milk, mostly bought in retail supermarkets in Arizona, California, Georgia, Kansas, Louisiana, Maryland, Missouri, North Carolina, Pennsylvania, South Carolina, Texas, Virginia and Washington state. The average concentration of the rocket fuel chemical was 5.76 ppb. More than 38 percent of the samples exceeded 6 ppb.
The FDA also tested 128 samples of green and red leaf lettuce, iceberg and romaine from growers and packing sheds in California, Arizona, Florida, Texas and New Jersey. The average concentration of perchlorate was 10.49 ppb. Almost 60 percent of the samples exceeded 6 ppb.
The highest concentration, an average of 11.9 ppb, was found in 25 samples of romaine lettuce. Red leaf lettuce averaged 11.7 ppb, green leaf 10.7 ppb and iceberg 7.76 ppb.
The FDA initiated its sampling program after EWG reported in April 2003 results of tests on winter-grown lettuce from California's Imperial Valley, which is irrigated by the perchlorate-contaminated Colorado River. EWG estimated that, just by eating lettuce, 1.6 million American women of childbearing age are exposed daily during the winter months to more perchlorate than the EPA's recommended safe dose.
In July 2004, EWG reported that its tests by an independent laboratory and unreleased tests by California agriculture officials found the rocket fuel chemical in 45 out of 46 samples of milk from around the state. A computer-assisted analysis of federal dietary data showed that by drinking milk contaminated with the levels of perchlorate found in the two studies, half of all children 1 to 5 would exceed EPA's provisional daily safe dose just by drinking milk, and more than a third would get twice that dose.
Related Links:FDA's New Studieshttp://www.cfsan.fda.gov/~dms/clo4data.html#table1
EWG's "Suspect Salads" reporthttp://www.ewg.org/reports/suspectsalads/
EWG's "Rocket Fuel Contamination in California Milk" reporthttp://www.ewg.org/reports/rocketmilk/
FOR IMMEDIATE RELEASE: Nov. 29, 2004
CONTACT: Bill Walker or Renee Sharp, EWG, (510) 444-0973
Federal Tests Confirm Nationwide Rocket Fuel Contamination of Milk, Lettuce
WASHINGTON — Federal investigators have found a toxic rocket fuel chemical in almost all of more than 200 samples of lettuce and milk collected nationwide, in concentrations well above the level considered safe in drinking water by the U.S. EPA and Massachusetts health officials.
The federal tests, completed in August and posted online this week, confirm previous findings by the Environmental Working Group, university researchers and California journalists, but are the first to document nationwide contamination of food. The results provide startling new evidence that perchlorate, the explosive component of solid rocket fuel, is moving from the hundreds of places where it is known to contaminate water supplies into the nation's food supply.
"With these results, it's time for health officials, perchlorate polluters and food producers to stop stalling by saying we need more studies," said Renee Sharp, an EWG senior analyst. "Rocket fuel is in our water, in vegetables, in milk. How much more evidence do we need to take action?"
According to the EPA's preliminary risk assessment, currently under review by the National Academy of Sciences, exposure to the chemical should not exceed 1 part per billion (ppb) in drinking water — the same level adopted by Massachusetts. Health officials in California have set a preliminary safety standard of 6 ppb.
Perchlorate can affect the thyroid gland's ability to make essential hormones. For fetuses, infants and children, disruptions in thyroid hormone levels can cause lowered IQ, mental retardation, loss of hearing and speech, and motor skill deficits.
All three jurisdictions concluded that perchlorate exposure should be limited to a few parts per billion, but based on growing evidence showing harm at very small doses, EWG argues that a drinking water standard should be no more than one-tenth EPA's recommended level.
Previous studies have shown that the rocket fuel chemical, leaking from hundreds of military bases and defense contractors' facilities, concentrates in lettuce grown with contaminated irrigation water. When contaminated water is used to grow alfalfa, cattle feeding on the hay take in the chemical and pass it on in their milk.
In the new studies, the Food and Drug Administration reported finding perchlorate in 217 of 232 samples of milk and lettuce in 15 states.
FDA tested 104 samples of low-fat and whole milk, mostly bought in retail supermarkets in Arizona, California, Georgia, Kansas, Louisiana, Maryland, Missouri, North Carolina, Pennsylvania, South Carolina, Texas, Virginia and Washington state. The average concentration of the rocket fuel chemical was 5.76 ppb. More than 38 percent of the samples exceeded 6 ppb.
The FDA also tested 128 samples of green and red leaf lettuce, iceberg and romaine from growers and packing sheds in California, Arizona, Florida, Texas and New Jersey. The average concentration of perchlorate was 10.49 ppb. Almost 60 percent of the samples exceeded 6 ppb.
The highest concentration, an average of 11.9 ppb, was found in 25 samples of romaine lettuce. Red leaf lettuce averaged 11.7 ppb, green leaf 10.7 ppb and iceberg 7.76 ppb.
The FDA initiated its sampling program after EWG reported in April 2003 results of tests on winter-grown lettuce from California's Imperial Valley, which is irrigated by the perchlorate-contaminated Colorado River. EWG estimated that, just by eating lettuce, 1.6 million American women of childbearing age are exposed daily during the winter months to more perchlorate than the EPA's recommended safe dose.
In July 2004, EWG reported that its tests by an independent laboratory and unreleased tests by California agriculture officials found the rocket fuel chemical in 45 out of 46 samples of milk from around the state. A computer-assisted analysis of federal dietary data showed that by drinking milk contaminated with the levels of perchlorate found in the two studies, half of all children 1 to 5 would exceed EPA's provisional daily safe dose just by drinking milk, and more than a third would get twice that dose.
Related Links:FDA's New Studieshttp://www.cfsan.fda.gov/~dms/clo4data.html#table1
EWG's "Suspect Salads" reporthttp://www.ewg.org/reports/suspectsalads/
EWG's "Rocket Fuel Contamination in California Milk" reporthttp://www.ewg.org/reports/rocketmilk/
11.15.2004
Cleveland to Canada Fairy?
The Port Authority's latest step towards the implementation of a Cleveland-to-Canada ferry includes discussions with Canadian port representatives to address Canadian requirements for ferry service. Our magical city and its Port Authority has selected Royal Wagenborg, a Dutch company, to operate the future ferry between Cleveland and Port Stanley, citing the firm's experience with both leisure and commercial traffic.
Chuga Chuga Woo Woo
The Ohio Rail Development Commission is gathering public input on its Ohio Hub Study. The high-speed passenger rail system concept calls for connecting Cleveland with other major cities in the region and for linking into a national network. A public meeting in Cleveland is tentatively scheduled for January or February.
North Coast Wind Update
In the second installment of their 7th Generation series, WCPN examines the potential for Ohio to become a national leader in wind power and looks at the model provided by Bowling Green, Ohio. For more information on the subject, see the NEOWind weblog.
7.15.2004
CALL FOR CHILDRENS ENVIRONMENTAL ART!
Call for children's environmental art Here's one for the kids. The Cleveland-based International Center for Environmental Arts is organizing Coastweeks 2004, a national celebration of the nation's waterways and shoreline, with special events coordinated by the Ohio Lake Erie Commission Office from 8/21 thru 9/19. One element is an art and essay contest for children portraying important issues about Lake Erie through art, focusing on the natural beauty, history and "future uses" of our fine Lake, with the theme, "I Can Help Lake Erie," encouraging young Ohioans to "be part of the solution, not the pollution that finds it way into the lake." Ohio students ages 6-12 can submit posters, collage, fabric or a variety of media up to 8" X 10" with a deadline of 8/15. For more information, call 440-891-8376. The posters and essays will be exhibited at the Great Lakes Historical Society's Inland Seas Maritime Museum in Vermillion. ICEA2000@aol.com
thanks thomas mulready.
thanks thomas mulready.
EU Update - Organic Milk Oversupplies Easing
PRESS RELEASE
For Immediate Release
July 15th 2004
London – New research predicts oversupplies in the UK organic dairy sector to ease in the next eighteen months. Healthy market growth rates and declining production levels of organic milk are to cause supply and demand to come into balance in 2006. Over a third of the organic milk produced since 2001 has gone into the non-organic market due to demand falling short of supplies.
Organic milk supplies are falling in the UK due to the decreasing number of organic dairy farmers. A significant decline is predicted in 2005 when five-year conversion grants to organic dairy farmers end and the EU derogation on organic feeds is lifted. Organic livestock farmers will have to use 100% organic rations after August 2005 and the rise in production costs is likely to cause some to quit organic farming.
A new study by Organic Monitor (www.organicmonitor.com) forecasts the decrease in organic milk production to not be matched by a slowdown in demand for organic dairy products. Sales of organic dairy products increased by 12.5% in 2003 and healthy growth rates are envisaged in the coming years. Consumer demand is expected to continue to remain robust in spite of higher production costs raising retail prices in 2005.
High growth in the organic dairy products market is being driven by product innovations and the marketing efforts of producers. A number of innovative organic dairy products have been launched in recent years, which include flavoured organic milk and Greek-style organic yoghurts. Scientific research into the health benefits of organic milk and growing demand from food service & catering companies are also expected to drive market growth.
The organic milk and organic yoghurt segments are reporting the highest growth. Organic yoghurt sales account for 7% of all yoghurt sales in the UK and the market share is projected to rise to 12% by 2010. Organic milk sales have shown rapid growth since they were introduced under supermarket private labels. Sales of organic butter and fresh cream are increasing at relatively lower rates.
The study found that consumer demand for organic dairy products is widening. The re-positioning of organic brands is driving this trend. Companies like Yeo Valley Organic are adopting a brand strategy in which they are targeting consumers who are seeking premium dairy products. New organic dairy products are introduced as part of the brand extension strategy and this is expanding the organic dairy category.
Research Publication: #1202-43 The UK Market for Organic Dairy Products
Publication Date: July 2004
For Immediate Release
July 15th 2004
London – New research predicts oversupplies in the UK organic dairy sector to ease in the next eighteen months. Healthy market growth rates and declining production levels of organic milk are to cause supply and demand to come into balance in 2006. Over a third of the organic milk produced since 2001 has gone into the non-organic market due to demand falling short of supplies.
Organic milk supplies are falling in the UK due to the decreasing number of organic dairy farmers. A significant decline is predicted in 2005 when five-year conversion grants to organic dairy farmers end and the EU derogation on organic feeds is lifted. Organic livestock farmers will have to use 100% organic rations after August 2005 and the rise in production costs is likely to cause some to quit organic farming.
A new study by Organic Monitor (www.organicmonitor.com) forecasts the decrease in organic milk production to not be matched by a slowdown in demand for organic dairy products. Sales of organic dairy products increased by 12.5% in 2003 and healthy growth rates are envisaged in the coming years. Consumer demand is expected to continue to remain robust in spite of higher production costs raising retail prices in 2005.
High growth in the organic dairy products market is being driven by product innovations and the marketing efforts of producers. A number of innovative organic dairy products have been launched in recent years, which include flavoured organic milk and Greek-style organic yoghurts. Scientific research into the health benefits of organic milk and growing demand from food service & catering companies are also expected to drive market growth.
The organic milk and organic yoghurt segments are reporting the highest growth. Organic yoghurt sales account for 7% of all yoghurt sales in the UK and the market share is projected to rise to 12% by 2010. Organic milk sales have shown rapid growth since they were introduced under supermarket private labels. Sales of organic butter and fresh cream are increasing at relatively lower rates.
The study found that consumer demand for organic dairy products is widening. The re-positioning of organic brands is driving this trend. Companies like Yeo Valley Organic are adopting a brand strategy in which they are targeting consumers who are seeking premium dairy products. New organic dairy products are introduced as part of the brand extension strategy and this is expanding the organic dairy category.
Research Publication: #1202-43 The UK Market for Organic Dairy Products
Publication Date: July 2004
6.30.2004
Consumers 'Would Switch To Back Green Products'
Press Association 7 June 2004
- Shoppers will vote with their feet and switch brands if companies fail to comply with "green" legislation, according to a new report today.
A survey of 1,000 people showed that 94% backed laws aimed at reducing CO2 emissions and one in three would be prepared to buy goods from another company if their usual supplier missed environmental targets.
Consultants LogicaCMG (correct) said the findings showed that firms failing to meet new regulations on emissions would face a consumer backlash,
One in six of those polled said they would be happy to accept price rises of up to 25% if it led to emissions being cut from factories and other buildings.
A separate poll of 250 senior executives showed a third did not believe consumers would care about firms complying with regulations.
"Our study shows that both consumers and industry are in favour of the reduction of carbon emissions and consumers are prepared to pay a premium for environmentally friendly goods and services," says Jim Yeats, managing director of LogicaCMG.
"Unfortunately it is apparent that most companies have not made much progress towards compliance, in fact two thirds of UK companies have yet to set a budget to be able to comply, and they will suffer the consequences - not just in terms of fines but in something less tangible, but ultimately more valuable - customer loyalty."
Copyright 2004 The Press Association Limited
Press Association
- Shoppers will vote with their feet and switch brands if companies fail to comply with "green" legislation, according to a new report today.
A survey of 1,000 people showed that 94% backed laws aimed at reducing CO2 emissions and one in three would be prepared to buy goods from another company if their usual supplier missed environmental targets.
Consultants LogicaCMG (correct) said the findings showed that firms failing to meet new regulations on emissions would face a consumer backlash,
One in six of those polled said they would be happy to accept price rises of up to 25% if it led to emissions being cut from factories and other buildings.
A separate poll of 250 senior executives showed a third did not believe consumers would care about firms complying with regulations.
"Our study shows that both consumers and industry are in favour of the reduction of carbon emissions and consumers are prepared to pay a premium for environmentally friendly goods and services," says Jim Yeats, managing director of LogicaCMG.
"Unfortunately it is apparent that most companies have not made much progress towards compliance, in fact two thirds of UK companies have yet to set a budget to be able to comply, and they will suffer the consequences - not just in terms of fines but in something less tangible, but ultimately more valuable - customer loyalty."
Copyright 2004 The Press Association Limited
Press Association
Paper Recovery Rate Tops 50 Percent
No. 124 Tuesday, June 29, 2004Page A-1 ISSN 1521-9402
Recycling Paper Recovery Rate Tops 50 Percent
In 2003, an All-Time High, Report Says
More than half of the paper consumed in the United States during 2003 was
recovered, a trade group said June 28, describing the rate as an all-time
high in the history of paper recycling.
The American Forest & Paper Association (AF&PA) said in the 2004 edition
of its annual Recovered Paper Statistical Highlights that 49.3 million
tons of paper, or 50.3 percent of the paper consumed in the nation in
2003, was recovered.
Fred von Zuben, chairman of the AF&PA Recovered Fiber CEO Committee, told
BNA the association had set a 50 percent recovery goal in 1995, as well as
a 55 percent recovery goal to be reached by 2012.
"At the moment, there is a great need for recovered fiber," he said.
Paper recovery has generally been on the upswing during the past 15 years,
according to the association. The 2003 rate reflects an increase of 69
percent from the 1990 level of 33.5 percent and is a 3.4 percent increase
from the 2002 rate of 48.2 percent or 47.6 million tons, the association
said.
Far more paper is recovered for recycling than is sent to landfills, the
report said. While 49.3 million tons was recovered in 2003, 37.7 million
tons wound up in landfills.
In addition, the association said, paper that is not recycled might go to
waste-to-energy facilities or wind up in permanent or semipermanent
applications, such as construction projects. AF&PA said every ton of paper
recovered for recycling saves 3.3 cubic yards of landfill space.
AF&PA described the recovery level as even more impressive, given that
approximately 10 percent of paper and paperboard cannot be recovered.
More than 80 percent of all paper mills in the United States use recovered
paper to make their products, the association continued. This recovered
paper represents 37 percent of the raw material used to make new paper and
paper products. The remaining 13 percent of the more than 50 percent of
paper recovered is targeted for other uses such as insulation and exports,
von Zuben said.
Industry Investment
During the past five years, von Zuben said, the paper industry has
invested billions of dollars on upgrading its ability to recycle paper,
and now all that is needed to increase the percentage of paper recycled is
the paper.
"As more paper products enter the home and office for work and pleasure,
there is additional potential for greater recovery of high-quality
products such as white computer paper, copier paper, office stationery and
paperboard packaging," von Zuben said in a statement. "Greater recovery of
these paper products will help ensure a steady, reliable supply of
recovered paper for our country's paper manufacturers."
To help achieve its 55 percent goal, the association said, AF&PA in 2002
entered into public-private partnerships with the Environmental Protection
Agency, Keep America Beautiful, CarrAmerica, an office management company,
and others to encourage localities, office buildings, schools, and
individuals to recover more high-quality paper in their communities and
workplaces.
For example, last year, the association began participating with EPA's
WasteWise program.
"This is a new relationship we've tried to establish within the past year,
working as partners, not as enemies for the first time," von Zuben told
EPA.
An EPA spokesman could not be reached for comment. According to the
agency, WasteWise partners submit annual reports and have access to agency
assistance in developing and implementing quantifiable waste reduction
programs. EPA launched the waste reduction program in 1994. Program
partners commit to initiating, expanding, or improving company programs to
collect recyclables.
WasteWise partners in the forest and paper products industry have set
goals to develop and market recyclable corrugated shipping pallets, and to
identify customers with significant waste associated with paper products
and integrate recycling services into business relationships, according to
EPA.
The American Forest and Paper Association's Recovered Paper Statistical
Highlights is available
By Linda Roeder
Recycling Paper Recovery Rate Tops 50 Percent
In 2003, an All-Time High, Report Says
More than half of the paper consumed in the United States during 2003 was
recovered, a trade group said June 28, describing the rate as an all-time
high in the history of paper recycling.
The American Forest & Paper Association (AF&PA) said in the 2004 edition
of its annual Recovered Paper Statistical Highlights that 49.3 million
tons of paper, or 50.3 percent of the paper consumed in the nation in
2003, was recovered.
Fred von Zuben, chairman of the AF&PA Recovered Fiber CEO Committee, told
BNA the association had set a 50 percent recovery goal in 1995, as well as
a 55 percent recovery goal to be reached by 2012.
"At the moment, there is a great need for recovered fiber," he said.
Paper recovery has generally been on the upswing during the past 15 years,
according to the association. The 2003 rate reflects an increase of 69
percent from the 1990 level of 33.5 percent and is a 3.4 percent increase
from the 2002 rate of 48.2 percent or 47.6 million tons, the association
said.
Far more paper is recovered for recycling than is sent to landfills, the
report said. While 49.3 million tons was recovered in 2003, 37.7 million
tons wound up in landfills.
In addition, the association said, paper that is not recycled might go to
waste-to-energy facilities or wind up in permanent or semipermanent
applications, such as construction projects. AF&PA said every ton of paper
recovered for recycling saves 3.3 cubic yards of landfill space.
AF&PA described the recovery level as even more impressive, given that
approximately 10 percent of paper and paperboard cannot be recovered.
More than 80 percent of all paper mills in the United States use recovered
paper to make their products, the association continued. This recovered
paper represents 37 percent of the raw material used to make new paper and
paper products. The remaining 13 percent of the more than 50 percent of
paper recovered is targeted for other uses such as insulation and exports,
von Zuben said.
Industry Investment
During the past five years, von Zuben said, the paper industry has
invested billions of dollars on upgrading its ability to recycle paper,
and now all that is needed to increase the percentage of paper recycled is
the paper.
"As more paper products enter the home and office for work and pleasure,
there is additional potential for greater recovery of high-quality
products such as white computer paper, copier paper, office stationery and
paperboard packaging," von Zuben said in a statement. "Greater recovery of
these paper products will help ensure a steady, reliable supply of
recovered paper for our country's paper manufacturers."
To help achieve its 55 percent goal, the association said, AF&PA in 2002
entered into public-private partnerships with the Environmental Protection
Agency, Keep America Beautiful, CarrAmerica, an office management company,
and others to encourage localities, office buildings, schools, and
individuals to recover more high-quality paper in their communities and
workplaces.
For example, last year, the association began participating with EPA's
WasteWise program.
"This is a new relationship we've tried to establish within the past year,
working as partners, not as enemies for the first time," von Zuben told
EPA.
An EPA spokesman could not be reached for comment. According to the
agency, WasteWise partners submit annual reports and have access to agency
assistance in developing and implementing quantifiable waste reduction
programs. EPA launched the waste reduction program in 1994. Program
partners commit to initiating, expanding, or improving company programs to
collect recyclables.
WasteWise partners in the forest and paper products industry have set
goals to develop and market recyclable corrugated shipping pallets, and to
identify customers with significant waste associated with paper products
and integrate recycling services into business relationships, according to
EPA.
The American Forest and Paper Association's Recovered Paper Statistical
Highlights is available
By Linda Roeder
6.10.2004
Hot new logo from A.D.
.
The draft logo is open for creative input. Please either email me any thoughts or input you have or post it using the comment feature below. Thank you much amanda for the great design!
The draft logo is open for creative input. Please either email me any thoughts or input you have or post it using the comment feature below. Thank you much amanda for the great design!
6.05.2004
As Shoppers Grow Finicky, Big Food Has Big Problems
Kraft Buys Back to Nature,Seeks Upscale Offerings;Atkins Diet Takes a Bite, At Giant Eagle: 375 Cheeses
By SARAH ELLISON
Staff Reporter of THE WALL STREET JOURNAL
May 21, 2004; Page A1
Tracey Daugherty grew up on Kraft Macaroni & Cheese, but she won't feed it to her 18-month-old son. That's a huge problem for Kraft Foods Inc.
With $31 billion in sales last year, Kraft says it still helps fill pantries in 99% of U.S. households. But it and the other giants of the processed-food industry have hit a wall in growth, barely managing to stay ahead of gains in the population.
Two big factors: price pressure from stores such as Wal-Mart, now the nation's largest food retailer, and continued competition from grocery-store brands.
That's why Kraft needs consumers such as Ms. Daugherty, who are setting the tastes for the next generation. The 33-year-old Pittsburgh mom, whose lawyer husband is trying to lose weight on the Atkins diet, says she started to worry about sodium and artificial foods when her son was born. These days she opts for fresh produce, chicken, fish and an occasional Amy's Organic frozen dinner when pressed for time.
"Kraft's products definitely have a childhood nostalgia, so it's hard to completely give up on them," she says. "But they're not on my shopping list."
Ms. Daugherty and millions of other consumers are shopping at Whole Foods and other such markets, demanding healthier, tastier, more sophisticated foods -- and they're willing to pay for it. Many are also growing wary of the very feature upon which Big Food built itself: mechanized food production and highly technical innovations to create "better than natural" processed food.
While natural foods and gourmet items still represent a small portion of overall food spending, they boast the best growth rates in the food industry. To capture a portion of that growth, the food behemoths are being forced to upend old business models, find new suppliers and rapidly improve the ingredients and quality of their products.
For Kraft, the nation's largest food company, keeping up with consumers' rapidly changing tastes has been especially tough. Four years ago, Kraft made a big bet on high-fat snacking when it purchased Nabisco, the nation's biggest maker of cookies and crackers. The timing was terrible: The deal was made just as consumers were becoming obsessed about obesity and other food-related health issues. Kraft's more recent efforts to buy its way into the organic world have had mixed results. Kraft's profit for the first quarter fell 34%, following a rise of just 2.4% last year. The company's shares were trading at $29.95 in 4 p.m. New York Stock Exchange composite trading yesterday, down 47% from their peak in June 2002.
Kraft last year held discussions to buy or license the brand name of Organic Valley, a LaFarge, Wis., organic-dairy cooperative where sales grew 25% last year to $156 million. The meetings were friendly, but the farmers that control Organic Valley were "aghast" when Kraft suggested using their organic milk in highly processed products such as Lunchables, said someone who was there.
"They were talking about making organic processed food, and that's not something that jibed with the farmers," said another person familiar with the discussions. No deal transpired, but Organic Valley is now supplying organic milk and dairy products to Kraft.
Both companies declined to comment on the details of the talks. But George Siemon, CEO of Organic Valley, said: "We've been approached by every major food company in the country, and we really believe in organics from the ground up, and we believe in our independence."
Old Playbook
Other big food companies also are struggling to redefine themselves. At first, the industry stuck to its old playbook: adding new features to mainstay brands. These iconic names stayed ahead of generic rivals through brand extensions (Kraft Thick 'N Creamy Macaroni & Cheese, Oreo Double Stuff). Kraft spent a fortune on advertising and commanded a higher price than store brands. The Oreo cream was thicker. The Chips Ahoy! cookie had more chips. But the underlying product was the same.
In the last several years, Campbell Soup Co. has spent hundreds of millions of dollars refitting its factories to improve its soups. Unilever, dragged down by low-growth products like margarine, is revamping its Slim-Fast diet products and other products to fit the new low-carbohydrate craze. Nestle SA, which has spent roughly $20 billion acquiring brands from Ralston Purina pet food to Hot Pockets frozen sandwiches, is looking for growth in the intersection of food and pharmaceuticals -- known in the business as "phood."
Back in 2000, Kraft looked as if it was putting itself on top of the food chain when it agreed to buy Nabisco. A year later, Philip Morris Cos. (now Altria Group Inc.) floated 16% of Kraft on the public market. The IPO, still one of the largest ever, carried big expectations. The company promised double-digit growth rates, and Kraft's portfolio of brands including Oscar Mayer meats, Jell-O gelatin and Ritz crackers was the envy of the food industry.
But last year, higher costs for retiree pensions and rising prices for commodities such as flour, milk and cocoa put a dent in Kraft's earnings. Growing worries about obesity and the mass appeal of the Atkins low-carbohydrate diet also took a toll.
After a series of earnings misses, Kraft late last year demoted its co-CEO, Betsy Holden, widely identified with Kraft's recent stumbles, and elevated her counterpart, Roger Deromedi, to the sole CEO post. Mr. Deromedi, who had run the company's international businesses, quickly moved to cut 6,000 jobs, or 6% of Kraft's work force. He lowered the company's long-term targets for profit growth, saying Kraft needed to invest more money in freshening brands that had fallen out of favor.
"You can't keep selling the same thing forever," Mr. Deromedi said in an interview earlier this year. "Consumers are changing. Unless you change your offering enough to keep it fresh for today, then you are going to have a more significant problem going forward."
Since he took his position, he has bought up tiny companies like Veryfine Products Inc., maker of the fast-growing Fruit20 flavored water, and expanded Kraft's deal with Starbucks Corp. to distribute its Tazo tea in addition to Starbucks coffee in grocery stores.
The company is also working to increase the healthiness of its offerings, such as removing artery-clogging trans-fats from Triscuits and Oreos, and launching smaller, 100-calorie "snack-packs" of some products.
Still, with the lion's share of the company's sales in products like traditional Oreos and Maxwell House coffee, Mr. Deromedi also defended Kraft's existing lineup: "It's not like we need to completely transform ourselves because what we're making today isn't being eaten," he said. "You have to offer a range of products to a range of consumers."
Kraft executives say they have been steadily pushing into the gourmet market. Company executives estimate that about $2 billion in sales now come from brands like Gevalia mail-order coffee, Boca soy burgers, Athenos cheese, Balance bars, Altoids mints, DiGiornio Pizza and its licensing deals with Starbucks and others.
While its talks with Organic Valley were stalling, Kraft concluded negotiations to acquire the tiny Back to Nature brand, which generated less than $10 million in sales in 2002. Kraft estimates that the natural and organic category of food is about $15 billion and grows at a rate of about 9% to 10% a year.
In January, Kraft said it would expand Back to Nature into 19 new products and 15 reformulated granolas and cereals. Next month it plans to start selling those products, which include macaroni and cheese with organic cheese sauce, sesame ginger rice thins and organic cheeses.
Seeking the 'Seekers'
Kevin Scott, a Kraft general manager in charge of Back to Nature, says he's not out to get the "loyalists," who eat only organic and who make up less than 2% of households in America. Instead, he says he is targeting "natural or organic seekers," the 15% to 20% of households that buy a natural or organic product three to four times a year.
Mr. Scott says Kraft has established strict "ingredient principles" for Back to Nature, which includes using no artificial preservatives, colors or flavors; no genetically-modified corn or soy ingredients; no hydrogenated or partially-hydrogenated oils, and to use natural sweeteners like cane juice and fruit sweeteners. The Back to Nature brand uses organic ingredients whenever it can, says Mr. Scott. "Sometimes we can't source an organic ingredient in the quantity we need, or we can't find an ingredient that meets our flavor profile," he says. Back to Nature cheese and its cheese sauces are all stamped with the USDA Organic seal, which means the products contain at least 95% organic material.
At a Pittsburgh Giant Eagle grocery store, shopper Rebekah Beil, 27, shows just how much things have changed. The store's gourmet-cheese counter holds 375 varieties and the tapas cart holds 20 kinds of olives. The Kraft cheeses are aisles away in the dairy section next to the butter.
Eyeing the olives in the tapas cart, Ms. Beil said she sticks to the "perimeter" of the store, avoiding prepackaged products in the center. A real-estate broker, she cooks for her boyfriend most nights and shops on the weekends on the "strip," a collection of wholesale markets with Italian products, fresh fish and the like. She left the store with an assortment of deli meats, olives and cheese.
Organic and gourmet products, areas dominated by dozens of smaller players, are enjoying much faster growth than the giant food companies. The market for gourmet beverages and sweets has grown 48.4% to $14.7 billion since 1998, according to a study by market-research firm Packaged Facts. Specialty condiments and cheese sales have grown 26.3% to $5.5 billion in that period.
Some grocers have latched on to the trend. Last fall, grocery chain Albertson's, which long had relied on its low-end private-label entries, introduced a high-end line of frozen products called Essensia, which include tiramisu and ravioli striped with sun-dried tomato and flavored with basil pesto. "Our goal is to design food that can be served to the most discriminating dinner guests," says Terry Lee, vice-president of corporate brands for the grocery chains.
To understand the challenge Kraft faces, consider cheese, its single biggest product. In 1916, J.L. Kraft's patent for processed cheese helped catapult Kraft from a commodity business to a unique cheese company with a product that came off assembly lines with more consistent quality than natural cheese and stayed on shelves longer without spoiling.
The company's next cheese breakthrough was Velveeta in the late 1920s. Then in the 1940s, Kraft scientists started working on a way to produce cheese in slices. Using a "chill roll" machine that caused hot cheese quickly to cool as it revolved over a cold drum, a sheet of cheese could be uniformly sliced into three-inch squares and stacked. Within one year of its national introduction in 1950, Kraft Deluxe processed slices became the most successful product introduction in the company's then nearly 50-year history. Cheez Whiz hit store shelves soon after.
The company has honed its skills, chopping and processing cheese into snackable forms, over several decades, as consumers demanded more convenience. Starting in the early 1990s, "shredding cheese drove the business for many, many years," says Mr. Deromedi, who once headed the unit and still avows an "incredibly strong" passion for the cheese business. "We've had great success just slicing our chunks of cheese, or adding reclosable packaging."
While he says those kinds of changes "seem very mundane," they can boost sales with a relatively small investment. Kraft's bagged cheese cubes come in five varieties. Even Cheez Whiz is being marketed as a dip: It now comes in a wide-mouthed jar with a picture of a tortilla chip on the label. In March, Kraft introduced a new DiGiornio blend of shredded cheese with parmesan, romano and Asiago.
Lately, Kraft's cheese business has been pressured by an onslaught of high-end products. Last year, U.S. sales of natural Asiago cheese, primarily distributed by a handful of importers and private-label brands, jumped 43% to $7.4 million, according to Information Resources Inc. Sales of Kraft aerosol cheese, which includes Cheez Whiz, fell 9.6%. Kraft's natural cheese sales grew 5.3%, while sales of its processed cheese fell 2%.
Paul Peterson, vice president of sales at Lactalis SA, a $5.5 billion French dairy company that is the largest purveyor of Brie cheese in the U.S., estimates that U.S. sales have risen about 10% a year for the past three years, with last year's growth slightly higher.
These cheeses often require different skills than those of Big Food. Unlike the automated production lines at Kraft's plants, which churn out more than two billion pounds of cheese a year, the Lactalis U.S. plant in Wisconsin has its workers turn individual Brie circles by hand every day during the eight- to 10-day curing process. Some are ready earlier than others, and only trained workers watching the white layer of mold on each Brie circle can evaluate when it's ready.
As Kraft tries to move upscale with its Athenos and Back to Nature cheese lines, it is also still playing the repackaging game. It's latest effort: new labels touting cheeses as low in carbohydrates. "The products have always been low in carbs," says Mr. Deromedi. "It's not like we've had to create a whole new something to get at that."
thank you wsj
By SARAH ELLISON
Staff Reporter of THE WALL STREET JOURNAL
May 21, 2004; Page A1
Tracey Daugherty grew up on Kraft Macaroni & Cheese, but she won't feed it to her 18-month-old son. That's a huge problem for Kraft Foods Inc.
With $31 billion in sales last year, Kraft says it still helps fill pantries in 99% of U.S. households. But it and the other giants of the processed-food industry have hit a wall in growth, barely managing to stay ahead of gains in the population.
Two big factors: price pressure from stores such as Wal-Mart, now the nation's largest food retailer, and continued competition from grocery-store brands.
That's why Kraft needs consumers such as Ms. Daugherty, who are setting the tastes for the next generation. The 33-year-old Pittsburgh mom, whose lawyer husband is trying to lose weight on the Atkins diet, says she started to worry about sodium and artificial foods when her son was born. These days she opts for fresh produce, chicken, fish and an occasional Amy's Organic frozen dinner when pressed for time.
"Kraft's products definitely have a childhood nostalgia, so it's hard to completely give up on them," she says. "But they're not on my shopping list."
Ms. Daugherty and millions of other consumers are shopping at Whole Foods and other such markets, demanding healthier, tastier, more sophisticated foods -- and they're willing to pay for it. Many are also growing wary of the very feature upon which Big Food built itself: mechanized food production and highly technical innovations to create "better than natural" processed food.
While natural foods and gourmet items still represent a small portion of overall food spending, they boast the best growth rates in the food industry. To capture a portion of that growth, the food behemoths are being forced to upend old business models, find new suppliers and rapidly improve the ingredients and quality of their products.
For Kraft, the nation's largest food company, keeping up with consumers' rapidly changing tastes has been especially tough. Four years ago, Kraft made a big bet on high-fat snacking when it purchased Nabisco, the nation's biggest maker of cookies and crackers. The timing was terrible: The deal was made just as consumers were becoming obsessed about obesity and other food-related health issues. Kraft's more recent efforts to buy its way into the organic world have had mixed results. Kraft's profit for the first quarter fell 34%, following a rise of just 2.4% last year. The company's shares were trading at $29.95 in 4 p.m. New York Stock Exchange composite trading yesterday, down 47% from their peak in June 2002.
Kraft last year held discussions to buy or license the brand name of Organic Valley, a LaFarge, Wis., organic-dairy cooperative where sales grew 25% last year to $156 million. The meetings were friendly, but the farmers that control Organic Valley were "aghast" when Kraft suggested using their organic milk in highly processed products such as Lunchables, said someone who was there.
"They were talking about making organic processed food, and that's not something that jibed with the farmers," said another person familiar with the discussions. No deal transpired, but Organic Valley is now supplying organic milk and dairy products to Kraft.
Both companies declined to comment on the details of the talks. But George Siemon, CEO of Organic Valley, said: "We've been approached by every major food company in the country, and we really believe in organics from the ground up, and we believe in our independence."
Old Playbook
Other big food companies also are struggling to redefine themselves. At first, the industry stuck to its old playbook: adding new features to mainstay brands. These iconic names stayed ahead of generic rivals through brand extensions (Kraft Thick 'N Creamy Macaroni & Cheese, Oreo Double Stuff). Kraft spent a fortune on advertising and commanded a higher price than store brands. The Oreo cream was thicker. The Chips Ahoy! cookie had more chips. But the underlying product was the same.
In the last several years, Campbell Soup Co. has spent hundreds of millions of dollars refitting its factories to improve its soups. Unilever, dragged down by low-growth products like margarine, is revamping its Slim-Fast diet products and other products to fit the new low-carbohydrate craze. Nestle SA, which has spent roughly $20 billion acquiring brands from Ralston Purina pet food to Hot Pockets frozen sandwiches, is looking for growth in the intersection of food and pharmaceuticals -- known in the business as "phood."
Back in 2000, Kraft looked as if it was putting itself on top of the food chain when it agreed to buy Nabisco. A year later, Philip Morris Cos. (now Altria Group Inc.) floated 16% of Kraft on the public market. The IPO, still one of the largest ever, carried big expectations. The company promised double-digit growth rates, and Kraft's portfolio of brands including Oscar Mayer meats, Jell-O gelatin and Ritz crackers was the envy of the food industry.
But last year, higher costs for retiree pensions and rising prices for commodities such as flour, milk and cocoa put a dent in Kraft's earnings. Growing worries about obesity and the mass appeal of the Atkins low-carbohydrate diet also took a toll.
After a series of earnings misses, Kraft late last year demoted its co-CEO, Betsy Holden, widely identified with Kraft's recent stumbles, and elevated her counterpart, Roger Deromedi, to the sole CEO post. Mr. Deromedi, who had run the company's international businesses, quickly moved to cut 6,000 jobs, or 6% of Kraft's work force. He lowered the company's long-term targets for profit growth, saying Kraft needed to invest more money in freshening brands that had fallen out of favor.
"You can't keep selling the same thing forever," Mr. Deromedi said in an interview earlier this year. "Consumers are changing. Unless you change your offering enough to keep it fresh for today, then you are going to have a more significant problem going forward."
Since he took his position, he has bought up tiny companies like Veryfine Products Inc., maker of the fast-growing Fruit20 flavored water, and expanded Kraft's deal with Starbucks Corp. to distribute its Tazo tea in addition to Starbucks coffee in grocery stores.
The company is also working to increase the healthiness of its offerings, such as removing artery-clogging trans-fats from Triscuits and Oreos, and launching smaller, 100-calorie "snack-packs" of some products.
Still, with the lion's share of the company's sales in products like traditional Oreos and Maxwell House coffee, Mr. Deromedi also defended Kraft's existing lineup: "It's not like we need to completely transform ourselves because what we're making today isn't being eaten," he said. "You have to offer a range of products to a range of consumers."
Kraft executives say they have been steadily pushing into the gourmet market. Company executives estimate that about $2 billion in sales now come from brands like Gevalia mail-order coffee, Boca soy burgers, Athenos cheese, Balance bars, Altoids mints, DiGiornio Pizza and its licensing deals with Starbucks and others.
While its talks with Organic Valley were stalling, Kraft concluded negotiations to acquire the tiny Back to Nature brand, which generated less than $10 million in sales in 2002. Kraft estimates that the natural and organic category of food is about $15 billion and grows at a rate of about 9% to 10% a year.
In January, Kraft said it would expand Back to Nature into 19 new products and 15 reformulated granolas and cereals. Next month it plans to start selling those products, which include macaroni and cheese with organic cheese sauce, sesame ginger rice thins and organic cheeses.
Seeking the 'Seekers'
Kevin Scott, a Kraft general manager in charge of Back to Nature, says he's not out to get the "loyalists," who eat only organic and who make up less than 2% of households in America. Instead, he says he is targeting "natural or organic seekers," the 15% to 20% of households that buy a natural or organic product three to four times a year.
Mr. Scott says Kraft has established strict "ingredient principles" for Back to Nature, which includes using no artificial preservatives, colors or flavors; no genetically-modified corn or soy ingredients; no hydrogenated or partially-hydrogenated oils, and to use natural sweeteners like cane juice and fruit sweeteners. The Back to Nature brand uses organic ingredients whenever it can, says Mr. Scott. "Sometimes we can't source an organic ingredient in the quantity we need, or we can't find an ingredient that meets our flavor profile," he says. Back to Nature cheese and its cheese sauces are all stamped with the USDA Organic seal, which means the products contain at least 95% organic material.
At a Pittsburgh Giant Eagle grocery store, shopper Rebekah Beil, 27, shows just how much things have changed. The store's gourmet-cheese counter holds 375 varieties and the tapas cart holds 20 kinds of olives. The Kraft cheeses are aisles away in the dairy section next to the butter.
Eyeing the olives in the tapas cart, Ms. Beil said she sticks to the "perimeter" of the store, avoiding prepackaged products in the center. A real-estate broker, she cooks for her boyfriend most nights and shops on the weekends on the "strip," a collection of wholesale markets with Italian products, fresh fish and the like. She left the store with an assortment of deli meats, olives and cheese.
Organic and gourmet products, areas dominated by dozens of smaller players, are enjoying much faster growth than the giant food companies. The market for gourmet beverages and sweets has grown 48.4% to $14.7 billion since 1998, according to a study by market-research firm Packaged Facts. Specialty condiments and cheese sales have grown 26.3% to $5.5 billion in that period.
Some grocers have latched on to the trend. Last fall, grocery chain Albertson's, which long had relied on its low-end private-label entries, introduced a high-end line of frozen products called Essensia, which include tiramisu and ravioli striped with sun-dried tomato and flavored with basil pesto. "Our goal is to design food that can be served to the most discriminating dinner guests," says Terry Lee, vice-president of corporate brands for the grocery chains.
To understand the challenge Kraft faces, consider cheese, its single biggest product. In 1916, J.L. Kraft's patent for processed cheese helped catapult Kraft from a commodity business to a unique cheese company with a product that came off assembly lines with more consistent quality than natural cheese and stayed on shelves longer without spoiling.
The company's next cheese breakthrough was Velveeta in the late 1920s. Then in the 1940s, Kraft scientists started working on a way to produce cheese in slices. Using a "chill roll" machine that caused hot cheese quickly to cool as it revolved over a cold drum, a sheet of cheese could be uniformly sliced into three-inch squares and stacked. Within one year of its national introduction in 1950, Kraft Deluxe processed slices became the most successful product introduction in the company's then nearly 50-year history. Cheez Whiz hit store shelves soon after.
The company has honed its skills, chopping and processing cheese into snackable forms, over several decades, as consumers demanded more convenience. Starting in the early 1990s, "shredding cheese drove the business for many, many years," says Mr. Deromedi, who once headed the unit and still avows an "incredibly strong" passion for the cheese business. "We've had great success just slicing our chunks of cheese, or adding reclosable packaging."
While he says those kinds of changes "seem very mundane," they can boost sales with a relatively small investment. Kraft's bagged cheese cubes come in five varieties. Even Cheez Whiz is being marketed as a dip: It now comes in a wide-mouthed jar with a picture of a tortilla chip on the label. In March, Kraft introduced a new DiGiornio blend of shredded cheese with parmesan, romano and Asiago.
Lately, Kraft's cheese business has been pressured by an onslaught of high-end products. Last year, U.S. sales of natural Asiago cheese, primarily distributed by a handful of importers and private-label brands, jumped 43% to $7.4 million, according to Information Resources Inc. Sales of Kraft aerosol cheese, which includes Cheez Whiz, fell 9.6%. Kraft's natural cheese sales grew 5.3%, while sales of its processed cheese fell 2%.
Paul Peterson, vice president of sales at Lactalis SA, a $5.5 billion French dairy company that is the largest purveyor of Brie cheese in the U.S., estimates that U.S. sales have risen about 10% a year for the past three years, with last year's growth slightly higher.
These cheeses often require different skills than those of Big Food. Unlike the automated production lines at Kraft's plants, which churn out more than two billion pounds of cheese a year, the Lactalis U.S. plant in Wisconsin has its workers turn individual Brie circles by hand every day during the eight- to 10-day curing process. Some are ready earlier than others, and only trained workers watching the white layer of mold on each Brie circle can evaluate when it's ready.
As Kraft tries to move upscale with its Athenos and Back to Nature cheese lines, it is also still playing the repackaging game. It's latest effort: new labels touting cheeses as low in carbohydrates. "The products have always been low in carbs," says Mr. Deromedi. "It's not like we've had to create a whole new something to get at that."
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