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With
rising costs due to energy prices as well as demand in the
European market. We've watched raw material prices increase each
month since the middle of 2007. Most amino acids rose little by
little each month, while all forms of Vitamin C and Vitamin B5
had severe price spikes. Fortunately the Vitamin prices have
dropped, but still have not dropped to the levels they were
prior to 2007. Amino Acids remain higher than they were 18
months ago, but have seem to level off and fortunately as we
write this in Dec. 2008 do not seem to be continuing their rise.
In
order to offset these price increases without giving up on
quality of the raw material, we began having 90% of our powders
manufactured in F.D.A. approved foil pouches. Many of you have
received these and have been since early 2008. Feedback has been
great since we implemented these pouches. However there has been
a few individuals that are used to the hard plastic containers
and have made comment that they simply didn't expect a pouch. So
therefore we make this page available.
By
implementing these pouches we are able to maintain our prices to
you by cutting costs on packaging. It also benefits us as well
as you as a consumer with shipping costs. As we are able to fit
more product in a box and continue to offer flat rate shipping.
Shipping costs is another aspect that has seen sharp increases
as The Post Office (as they always do) increase their prices.
UPS and FEDEX have increased their fuel surcharges which
translate into 10-20% higher costs on our end.
We
are proud to be able to say we have been able to keep our prices
stable with only minor increases on a couple products that have
very little margin for us to begin with. Vitamin C we have
almost completely eliminated due to the severity of the pricing.
Vitamin B5 we continued to carry due to the volume we move on
that product. |
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US pouch demand
to reach $6.5 billion in 2010.
Demand for pouches in the US is
forecast to rise 6.3 percent annually through 2010 to $6.5
billion, spurred by continued expansion of the stand-up
pouch segment and healthy gains for flat pouches in certain
markets. Pouches, particularly stand-up types, will benefit from
increasing incorporation of such value-added features and
properties as spouts, zippers, retortability and
microwaveability. The fastest-growing markets for stand-up
pouches will be cheese, processed foods, and consumer and
industrial products, while strong growth for flat pouches will
be registered in such markets as fresh produce, medical and
pharmaceutical products, and consumer items.
Stand-up pouch demand will be driven by aesthetic appeal,
reclosability, freshness protection and ability to differentiate
products on store shelves. Innovations such as retortable
zippers and sleeve-in-pouch designs will also stimulate demand
and expand the number of applications for stand-ups.
Additionally, the relatively novel position of stand-up pouches
as a packaging format will bolster gains as product
manufacturers look to update the packaging of mature lines in
order to boost sales and consumer interest.
Flat pouches will maintain their position as the dominant pouch
type through 2010. Side seal pouches will post above-average
gains due to healthy growth in such markets as cheese, yogurt,
pudding and pharmaceuticals. Demand for side seal pouches will
also be buoyed by technical innovations that make the
incorporation of reclosable zippers using existing
form/fill/seal machinery more cost-effective than in the past.
Pillow pouches will remain the largest flat pouch category based
on their extensive use in large markets like snack foods.
In food and beverage markets, pouch demand is projected to
increase 6.1 percent annually through 2010 to $5.2 billion, with
above-average opportunities present in beverages, processed
foods, pet food, fresh and frozen meats and seafood, and fresh
produce. Nonfood pouch demand will climb 6.9 percent per year to
$1.3 billion, supported by increasing use of pouches in the
packaging of pharmaceuticals and consumer products like lawn and
garden consumables.
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