The percentage of vitamins and organic foods in independents has definitely declined as consumers have found more availability of natural products in their traditional grocery store, chain drug store or Walmart. Independents have also faced fierce competition from natural food chains such as Whole Foods, Vitamin Shoppe, GNC, Sprouts, Natural Grocers, Earth Fare and Fresh Thyme. These massive chains have collectively opened about one new store per day in recent years, putting the squeeze on the local independent store. To be sure, the number of independents have declined in recent years, but the survivors are stronger, smarter, more flexible, and better suited for long-term survival. It helps that organic foods, natural supplements, sports and personal care products – the natural foods industry – has grown consistently for decades. Compared to other industries that squeak out 2% growth per year, the natural foods industry has been extremely blessed. Especially within the USA. NOW’s percentage of sales to small, independent health food stores has declined significantly over the years, but our dollars sold to independents continues to climb. That’s because the strong survivors have adapted and many of them are doing “brick & click” combo retailing. It’s not easy for independents, and they need your support now more than ever, but many stores are doing quite well by providing a great combination of excellent service, superior quality, healthy products and good prices. A REFUGE FOR REFUGEES In 2017, NOW is home to just over 1,400 employees. Most of these workers are long- term employees who come from areas near our facilities, or who are drawn to our type of business. Having decent jobs to support a large family is life-changing for refugees, or anyone else for that matter. It has been a wonderful privilege to see the successes of former refugees, who develop into upstanding citizens and lead safe, healthy and fulfilling lives. While Americans have struggled with the issue of refugees and security, Canadians have largely taken a different approach. Canadians have historically been more welcoming to immigrants and refugees, based upon the number of people Canada accepts relative to the total population. The country also has a private sponsorship program that allows private citizens to bring in refugees if they pay for their expenses. In 2016, NOW’s Chairman of the Board was Jim Estill, CEO of Darby Appliances in Guelph, Ontario. Jim became wealthy as CEO of EMJ Data Systems and SYNNEX, while serving on various boards. As a result of the humanitarian crisis in Syria, Jim determined to put up $1.5 million of his own money to rescue more than 200 Syrian refugees. He organized a support system in his area that provided job and language training, healthcare, housing and all personal expenses for their first year in Canada. This made the news across the globe and is a wonderful example of a practical way to help strangers. As the good book says, “Do not neglect to show hospitality to strangers, for by this some have entertained angels without knowing it.” PIRACY In 2017, NOW’s international team developed significant business selling essential oils to Saudi Arabia. This was a nice surprise as we had never sold to the oil kingdom and had always been limited by regulations, labeling and the high cost of doing business. One day our partners there discovered pirated products that NOW doesn’t even sell. They found 124 BEATING THE ODDS
