COVID-19: US$5m fund for brands impacted by Expo West cancellation

16 Mar 2020 --- A US$5 million fund has been established to support emerging brands significantly affected by Natural Products Expo West 2020, which has now been canceled entirely. The organizers are shifting focus toward Natural Products Expo East 2020, to be held in Philadelphia, US, in September. Originally, Expo West – due to take place earlier this month – was set to be pushed back to this summer in light of the spread of COVID-19. It is not yet clear how the fund will be dispersed. This development comes as a multitude of companies in the nutritional space grapple to mitigate both the human and financial fallout from the coronavirus outbreak.

“2020 will be the first time in 40 years that we will not host an annual natural and organic products show in Anaheim, California. We’re disappointed, and we know many of you will be as well. So, what are we doing about it? We are directing our attention to Philadelphia and are excited about the opportunities we can provide the industry via our increased exhibition and gathering spaces within the Pennsylvania Convention Center. We are also excited about the plans we have for showcasing the industry’s emerging brands, new product innovations and sustainability efforts in unique ways,” the show’s organizers say.

The move follows consultation with key partners in the natural products community. The goal is now “to create the energy, experience and excitement delivered every year at Expo West,” the organizers add. Additionally, the US$5 million fund will help many of the trade show’s “most vulnerable and impacted community members.” 

An independent advisory council has been formed to establish criteria for how to best manage and disperse the fund. It will meet for the first time today and aims to deliver guidance by the week of April 6. It is led by John Grubb, former Managing Partner of Sterling-Rice Group and the current Board President of Naturally Boulder, and includes other leaders from businesses in the natural and organic products community, including Once Upon a Farm, Lifeway Foods, Simple Mills and Gaia Herbs. 

COVID-19 has been taking a toll on trade shows as bans on large gatherings are being rolled out around the world. Last week, it was announced that Vitafoods Europe would be postponed to September 1-3, 2020, with NutritionInsight covering industry’s mixed feelings. Other affected events include Tokyo’s CPhI Japan and CFIA, held in Rennes, France. 

Businesses across the nutrition industry are taking actions to soften the blow of the pandemic. Companies across the industry respond to COVID-19
These trade show developments come as businesses across the nutrition industry are taking actions to soften the blow of the pandemic. Following the postponement of Vitafoods Europe, Lallemand has decided to postpone its health ingredients seminar, which was set to take place in Estonia.

“At the moment, several countries are under travel advisories or have prohibited their citizens from traveling. Based on this information, and to alleviate further stress to our customers and business partners, we feel it is best to also postpone our health ingredients seminar until spring 2021, the week prior to the expected Vitafoods Europe show dates. Once we learn the actual dates of Vitafoods Europe 2021, we will be able to communicate the new timeline for our Health Ingredients seminar,” states the company.

In animal nutrition, Evonik declared a force majeure event for the supply of ThreAmino. The company’s contract manufacturers have shut down production facilities, with the shipping of the amino acid also affected. “Regrettably, we are facing a supply shortage for ThreAmino. We have, therefore, decided to send a force majeure notification to our customers with immediate effect, in accordance with our contracts. Meanwhile, we try the utmost to mitigate this situation and re-establish supply to our customers as fast as possible,” says Dr. Emmanuel Auer, Head of Animal Nutrition Business Line. 

Meanwhile, Catalent has implemented several actions to help prevent the spread of the virus and ensure the safety of its employees and partners, and to protect its supply chain. These measures are in line with the guidelines issued by the US Centers for Disease Control and Prevention (CDC), the World Health Organization (WHO), and local authorities where the company operates. 

The guidelines include re-emphasizing good hygiene practices, restrictions on employee travel, and, where possible, employing remote-working strategies. Currently, all of its sites are fully operational and Catalent has established a senior leadership team and specific procedures to assure that it minimizes and manages any future disruption to its ongoing operations.

Sweden-based BioGaia has also closed its office premises in Stockholm, Lund and Eslöv and encourages all employees that can to work from home. By taking these preventive measurements, BioGaia hopes to minimize further spread of the virus while avoiding its employees and their families being exposed to unnecessary risks. The precautions hopefully also contribute to the society’s capacity to handle the situation, it says. However, production currently remains open. 

Biocatalysts is postponing the official opening of its new enzyme manufacturing facility until later in the year. The company believes this is the best course of action for the safety and well-being of its staff and visitors alike. However, the new facility will continue with its implementation program and the plant will be available for full production on schedule. The extension can run E. coli, Pichia, Bacillus and Yarrowia fermentations and has subsequent down-stream-processing. The new fermentation capacity increases Biocatalysts’ existing portfolio, extending its fermentation volumetric scales.

Henry Lamotte Oils notes that Germany – where it is based – is increasingly affected. Meanwhile, on a global level, there are occasional failures and delays in economic and logistical processes, which often cannot be compensated for at short notice. The company states that cargo spaces, especially from Asia, will be extremely scarce until further notice, with freight rates rising significantly in some cases.

“Based on the information given, we currently assume that the fundamental stability of our supply chains is not endangered. However, it is clear that the next few months will be marked by high fluctuations in the availability of products and cargo space, as well as in market prices and freight rates. We work every day to ensure that you do not experience these fluctuations and volatilities,” Henry Lamotte Oils states. 

PharmaLinea Chairman and Founder, Blaž Gorjup has previously told NutritionInsight that the pandemic could lead to a growth in global consumer demand for supplements. Despite new product launches being on hold due to the severity of the COVID-19 situation, the market is still seeing a boost in sales.

By Katherine Durrell