Produced by Co-located with

Vitamins & Supplements Going Non-GMO

Bethany Davis Director of Regulatory AffairsFoodState

Sara Newmark Director of SustainabilityNew Chapter

Sandra Kepler President Non-GMO Global, Inc.

Megan Westgate Executive DirectorNon-GMO Project

VITAMINS AND SUPPLEMENTS GOING NON-GMO MeganWestgate,BethanyDavis,SaraNewmark,&SandyKeplerNaturalProductsExpoEast,September2016

SESSION OVERVIEW •  BackgroundonNGPandCSS

•  Vitamins&SupplementsGoingNon-GMO:1.  Context&Challenges2.  ImplicaOons3.  Strategy&SoluOons4.  Outcomes

TheNon-GMOProjectisanonprofitorganizaOoncommiVedtopreservingandbuildingsourcesofnon-GMOproducts,educaOngconsumersandprovidingverifiednon-GMOchoices.

Non-GMO Project Mission

SchemeOwner&StandardSeVer

TechnicalAdministrators(TA’s)

ApprovedTAApprovedTAApprovedTA

ApprovedTA

TesOngLabs

TACandidate(new)

OnsiteInspectors

RetailersProducers Consumers

Thirdparty

integrity

Explosion of the Non-GMO Market

0

10000

20000

30000

40000

50000

2011 2012 2013 2014 2015 2016

NumberofNon-GMOProjectVerifiedProducts

Non-GMO At Retail

Non-GMOVerifiedProducts$Sales

$19.2BillionTotalConvenOonalChannels$16.1B NaturalSupermarkets$2.3BSpec/GourmetSupermkts $.9B

Services:SPINSscanNatural,SPINSscanSpecialty/Gourmet,SPINSMulOoutlet52WE06/12/16Geography:TotalUS;Quarter2:2016IncludesWal-Mart;ExcludesWholeFoods,TraderJoe’sSalesfiguresrepresentonlyNon-GMOProjectVerifieditems

CoaliEon for Supplement Sustainability

WhyDoWeExist:CSSisamember-driventradeassociaOonofthedietarysupplementindustry,establishedtomaintainsustainable,independentlyverifiableandtransparentstandardsacrosstheenOresupplementsupplychain.

What’sMostImportantRightNow:OurfirstpriorityistocollaboratewiththirdpartyverifierstocreateacredibleNon-GMOstandardspecificallyfordietarysupplements.

HowWillWeSucceed:Maintaininghighintegrityforourindustry,Seekingwaystokeepthingssimpleforoursupplychainandcustomers,ensuringthattransparencyandsustainabilityarecoreelementstoallsoluOons,seekingpointsofcommonalityacrossmemberissuesandopportuniOes,raisingthebar!

About CSS

Context & Challenges: External

• Rapidlygrowingconsumerdemandfornon-GMOproducts

• Non-GMOstandardsprimarilydevelopedforfood

• PressureonNGPfromrapidgrowth=•  LongOmelinestoverificaOon• MulOpletechnicaladministrators

Context & Challenges: Internal

•  UniqueProductComplexity•  Languagebarriers•  Supplychain(lackof)transparency•  ErodingsupplierrelaOonships•  CompeOOon•  Misunderstandings•  Gossip

ImplicaEons

•  TheNGPstandardhasn’treallyworkedforsupplements

•  TherewasnoroadmaptofollowincreaOngeffecOvenon-GMOstandardsforthissector—weneededtocreateone!

CollaboraOonBuildingTrustAlignmentEducaOonandConnecOon

Strategy & SoluEons

Outcomes: Learning & Growth

•  VitaminFlowCharts•  Indepthtrainingwithsuppliers•  Greatertransparencyinsupplychain

Vitamin Flow Charts

•  AnimalDerivaOves•  PlantDerivaOves•  Fungus/AlgaeDerivaOves•  DirectFermentaOon•  SubInputFermentaOon•  SyntheOcs/Inorganic

Outcomes: AdministraEve

•  StandardizedProgramDocuments•  CountryofOriginDowngrades•  ImplementaOonofchangesto

Standard–moreopportunityforformalinputfromsupplementsector

Outcomes: Standard & Guidance

•  SyntheOcbiology–decisiontree•  Substrates–outofscopeformicros•  ReciprocityforIPsystemsforMinor&

MicroIngredients–guidance•  Solvents&ProcessingAids–proposed

changestoStandard

NGP Proposed Changes to Standard

•  PubliccommentperiodnowunderwaythroughNovember20th

•  SubstratesforProbioOcs&Enzymes

•  ProcessingAids

CONTACT:CoaliOonforSupplementSustainabilityinfo@supplementsustainability.comNon-GMOProjectverificaOon@nongmoproject.org