Market Information
Europe

The Nutraceuticals Market in the
United Kingdom

March 2003

Prepared by the
Market Research Centre
and the
Canadian Trade Commissioner Service

© Department of Foreign Affairs and International Trade
(FaxLink no. 1100002)

Report prepared by the Market Research Centre
Market Support Division (TCM)
Department of Foreign Affairs and International Trade
125 Sussex Drive, Ottawa K1A 0G2
Fax: (613) 943-1103
E-mail: mrc@dfait-maeci.gc.ca

The Market Research Centre produces a wide range of market reports by region and sector for Canadian exporters. These reports are available from:

- DFAIT's InfoExport Internet site ( http://www.infoexport.gc.ca ).

The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information.

EXECUTIVE SUMMARY

With a population of 60 million, the United Kingdom is the third-largest economy in Western Europe and represents a growing market for health products. A general trend toward health-consciousness, combined with demographic factors such as stabilizing levels of income and an ageing population, have resulted in an increasingly healthconscious consumer base. Moreover, with the increased use of preventative medicines and self-treatments and constraints on health-care funding, the United Kingdom is a significant market for nutraceutical products. Demand for nutraceutical compounds is expected to reach $579.6 million1 by 2006-an annual increase of 5.5% over 2001 totals.

The best prospects for Canadian companies in the United Kingdom lie in the export of nutraceutical products that target particular ailments, life stages or lifestyles. Key product areas include ginkgo biloba, ginseng, echinacea, multivitamins, childrenspecific vitamins and sports supplements. There are also potential opportunities for products intended for rebranding. Private-label products are particularly strong in the United Kingdom, accounting for 37.8% of nutraceutical sales in 2001.

Domestic manufacturers dominate production of nutraceuticals in the United Kingdom. However, foreign manufacturers, especially from the United States, Switzerland and the Netherlands, are gaining an increased share of this growing market.

Canadian producers represent only a small portion of the total market. However, from January to August 2002, Canada's exports of vitamins to the United Kingdom reached $46 000, equaling total nutraceutical exports for 2001.

The main distribution channels for vitamins and dietary supplements include pharmacies, grocery stores and health-food stores. In 2001, supermarkets accounted for 30% of retail sales of nutraceuticals. With the growing trend of in-store pharmacies, supermarkets are expected to become the dominant retail channel for nutraceutical products.

MARKET OVERVIEW

The United Kingdom recorded a gross domestic product (GDP) of $2.1 trillion in 2001. Real GDP growth that year was a positive 2.2%, ahead of the rate in other European Union (EU) countries such as Italy and France and close to 1% higher than Canada's (1.5%). The United Kingdom's per-capita GDP was $35 500 in 2001, when 6.7% of GDP-$140.2 billion-was expended on health care.

The United Kingdom is Europe's fourth-largest pharmaceutical market (behind Germany, France and Italy) and the world's fourth-largest nutritional supplements market (behind Japan, the United States and Germany). Pharmaceutical expenditures in 2001 totalled $26.6 billion or $442 per capita. Due to the increase in the number of over-the-counter (OTC) medicines, Britain's National Health Service (NHS)2 is imposing tighter controls on prescription medicines while encouraging consumers to use more vitamins, minerals and herbal medicines. As a result, strong growth in the nutraceutical market over the past decade should continue. Demand is expected to reach $579.6 million by 2006, representing an annual increase of 5.5% over 2001 totals.

Herbal Supplements

Demand for bulk herbal and non-herbal extracts is projected to increase 8.5% annually to reach $117 million by 2006. Phytotherapeutic or plant-based herbal remedies have experienced rapid growth in recent years largely due to the consensus that they do not result in side effects, which are a common occurrence with standard medicines. Ginkgo biloba, currently the leading product in this category, is expected to experience significant growth over the next four years with an increase of 50.2% by 2006 over 2001 sales.

Source: Freedonia Group. World Nutraceuticals to 2006. June 2002

Although local production of herbal and non-herbal extracts in the United Kingdom is strong, several domestic companies, including Semundo and Scotia Holdings, are broadening their lines of natural medicine compounds, which may present partnering opportunities for Canadian companies. Canada's Ceapro is currently collaborating with Semundo on the development of new plant extracts for commercial products.

Herbal remedies can be sold at retail outlets. However, it is illegal to make claims about their health benefits.

Minerals and Nutrients

The U.K. market for nutrients and mineral supplements also continues to present opportunities, with demand for new preventative medicines expected to increase growth in this sector. Demand for bulk nutrients and minerals is forecast to increase 6.2% annually throughout the next decade (see Table 2).

Source: Freedonia Group. World Nutraceuticals to 2006. June 2002

Subsidiaries of Japanese and West European fine chemicals producers, including the Lonza Group and Chugai Pharmaceutical, are expected to continue as leading suppliers in this market.

Vitamins

Driving forces in the vitamins market include increasing awareness of health issues and the ageing population. Increased stress, at home and work, is also a contributing factor to this growing market. Vitamins are expected to account for 26.5% of the nutraceutical market by 2006.

Products targeted at the baby-boomer population are expected to see significant growth in coming years. The market for children-specific vitamins is also poised for strong future growth. Sales in this subsector totalled $51.7 million in 2001, a 10% increase from 2000 totals. Analysts attribute growth in this subsector to the introduction of new premium child-friendly products, such as vitamins shaped like popular cartoon characters.

In 2001, private-label brands accounted for 48.5% of sales in the single vitamin category. Leading name brands include Sanatogen (15.5% market share) and Redoxon (12.1%), both by Roche Products Ltd.; Seven Seas' Haliborange (3.4%) and Solgar (2.1%); and Healthcrafts (1.4%), produced by Peter Black Healthcare Ltd.

Source: Freedonia Group. World Nutraceuticals to 2006.
June 2002

Despite strong projections for single vitamins, multivitamins are currently more popular than single vitamins due to launches of specialized products. Growing consumer sophistication will, however, boost sales of single vitamins in the coming years.

Source: Euromonitor. The Market for OTC Healthcare in the United Kingdom. July 2002

In terms of distribution, pharmacies are the dominant channel for vitamins, accounting for over one third of total market sales.

Fish Oils

Sales of fish oils have grown steadily since 1997, reaching $213.8 million in 2001. With a 60% market share, Seven Seas dominates the category. Neutrataste, a cod liver oil with no fish taste, is the company's best-selling fish oil product. Sales of private-label brands are also strong. There is room in this category for further growth, particularly for other types of fish oil as shortages of cod continue to rise. Currently, cod liver oil accounts for 94.5% of the market share.

Sports Supplements

In recent years, sports nutrition has changed from a being niche sector of specialist sports products to a large consumer market. The European market is expected to increase by 8.4% by 2009, with the U.K. leading the way in terms of sales over other European countries. The key ingredients in demand over the review period include casein and caseinates, creatine, carnitine, soy and whey protein.

Convenience is a huge selling point in this market, with individual ready-to-eat or -drink products capturing the bulk of sales. Nutrition bars are gaining the largest share of the market, however new developments in gums and sweets are also becoming popular with consumers. Canada's Kitsune Foods' line of herbal lozenges, Extreme Sport, suitable for athletes seeking to boost endurance, stamina and energy are currently finding success in the U.K. market.

Key Factors Shaping Market Growth

The United Kingdom is facing many of the same challenges as other developed regions, namely an ageing population and associated pressures on the public healthcare system. The U.K. market for natural medicines and related extracts is expected to increase significantly as the NHS continues to impose tight controls on prescription benefits and actively promotes preventative care and self-medication. Cutbacks in health care have also led to increased demand for health products as more consumers are using health foods, vitamins and nutraceuticals on a daily basis as a preventative measure. In addition, more consumers are using vitamins and minerals to treat minor illnesses rather than consulting their medical physician.

The growing number of consumers aged 50 and over will be a contributing factor to the increased use of alternative medicines. This baby-boomer population (people aged 50- 64 currently) tend to be more frequent users of nutritional supplements because they are aware and proactive when it comes to issues of health management. Moreover, they do not qualify for free prescriptions under the NHS. The changing lifestyle practices of this group in the United Kingdom have already had an impact in the growth of nutraceutical purchases and provide an indication of future demand.

Growth is also being fuelled by continuing media interest and a wider availability of educational material. Publicity, good and bad, can affect sales of nutraceuticals. Favorable press about a nutraceutical can affect sales in a positive way; particularly for products such as dietary supplements, which can not, due to legal restrictions, make claims that they cure certain ailments. Health scares, such as those linking the intake of certain vitamins and minerals with specific diseases, have prompted dramatic decreases in sales.

Opportunities

Nearly all products and services within the health-care market can be provided by domestic businesses. However, improved versions of existing products and niche items that offer good value for money have a good chance of establishing themselves within this market.

The best prospects for Canadian companies lie in the export of products that cater to the needs of a specific gender or life stage (e.g. child-specific vitamins or preventative medicines for the baby-boom population); lifestyle products that address specific concerns like stress relief; sports health products to combat sports fatigue; and symptom-specific products that target particular ailments. The top new product categories for nutraceuticals include probiotics and products aimed at preventing heart disease, including cholesterol reduction. Products with positive press coverage, such ginseng, ginkgo biloba and echinacea, are expected to experience significant growth over the next five years as their sales have been boosted by consumer interest.

Export opportunities for bulk vitamins to the United Kingdom are expected to expand as domestic food processors, OTC drug makers and food manufacturers focus on developing value-added nutritional products. Demand for nutraceutical chemicals will reach$148 million by 2006 with a 4% annual increase forecast. The United Kingdom's major buyers of bulk vitamins include GlaxoSmithKline and manufacturing subsidiaries of Abbot Laboratories, Bristol-Myers Squibb, General Nutrition, Merck, Pfizer, Proctor & Gamble and Wyeth.

The increasing number of retail distribution channels introducing lines of natural remedies sold under private-label brands will also extend U.K. opportunities for natural medicines and related extracts nutraceuticals. Private-label products are strong in the United Kingdom and there may be opportunities to supply products intended for rebranding. Private-label brands accounted for 37.8% of nutraceutical sales in 2001, up from 37.4% in 2000.

Canadian companies need to ensure that they provide competitive pricing, adequate advertising and aggressive sales strategies when introducing new products to the U.K. market.

COMPETITIVE ENVIRONMENT

Local companies, including subsidiaries of foreign multinationals, have dominated production of nutraceuticals as many products are less expensive to produce domestically. Although the United Kingdom's demands for bulk nutraceuticals are met by the domestic manufacturers, the diversification of food and drug makers into high value-added natural medicines and nutritional preparations will force a continuing reliance on imports for numerous specialty ingredients.

Local Capabilities

Seven Seas (Ireland) controls approximately one quarter of the U.K. vitamin and dietary supplement market. Its fish oil brand Active 55 targets the growing baby-boomer population. Other popular brands include Seven Seas and Haliborange. Seven Seas also produces a range of OTC mineral products (calcium, copper, zine, iodine, iron, phosphorus, magnesium manganese, potassium, selenium and sodium and chlorine). Other leading domestic companies include Peter Black Healthcare Ltd. (3.4% market share), Whitehall Laboratories Ltd. (3.1%), Chemist Brokers Ltd. (1.0%), Vitabiotics Ltd. (0.5%), Ernest Jackson & Co Ltd. (0.4%), and GlaxoSmithKline Plc (0.3%).

International Competition

Canadian health-food and vitamin exporters will primarily face competition from the United States, Switzerland and European Union (EU) countries such as the Netherlands, Germany, France and Italy. Location and preferential tariffs give EU countries a considerable advantage over non-EU countries such as Canada. Companies with the highest shares of the market in terms of retail value include Roche Products Ltd., Switzerland, which controlled 14.3% of U.K. nutraceutical sales in 2001.

New Jersey-based Solgar Vitamins Ltd. controlled 0.4% of U.K. sales in 2001. Wyeth, also based in New Jersey, is a market leader in numerous categories with brands including Caltrate, a calcium supplement for menopausal women; Centrum multivitamins; and Flexagen, a daily dietary supplement for joint care. A number of U.S. companies have accessed this market by purchasing controlling interest of vitamin and health food manufacturers in the United Kingdom.

Lichtwer Pharma UK Ltd. and Nutricia Holdings UK, both U.K. subsidiaries of Dutchowned multinationals, hold 1.6% and 0.5% of market sales, respectively.

Canadian Position

Canada does not have a strong presence in the U.K. vitamin and nutritional supplements market. According to figures from the World Trade Atlas, Canada exported $46 000 worth of vitamins to the United Kingdom in 2001 (HS Code 3004.5), showing an increase of 53% over the previous year. Canadian exports from January to August 2002 have already matched 2001 export totals.

Competitive Advantage through Canadian Government Policies and Initiatives

Canadian Commercial Corporation

The Canadian Commercial Corporation (CCC) gives Canadian companies access to financing and better payment terms under the Progress Payment Program (PPP). The PPP concept was developed as a partnership between major Canadian financial institutions and the CCC. It enables the exporter's bank to open a project line of credit for the exporter's benefit, based on CCC approval of the project and the exporter's ability to perform. The CCC will also act as a prime contractor on behalf of Canadian small and medium-sized enterprises, giving those businesses increased credibility and competitive advantage.

Canada-EU Mutual Recognition Agreement

The 1998 Canada-EU Mutual Recognition Agreement (MRA) is designed to facilitate trade between the two regions through regulatory co-operation. Implementation of the MRA, which applies to conformity assessment in select sectors, is preceded by a confidence-building period, during which time the two sides become familiar with each other's systems. Upon completion of this phase, any testing conducted in Canada in accordance with EU requirements will be accepted in the European Union and vice versa. The confidence-building stage is complete in the telecommunications, electro-magnetic compatibility, recreational craft and pharmaceutical sectors. Work will continue on the two remaining sectors, medical devices and electrical safety.

In relation to the pharmaceuticals sector, the MRA establishes mutual recognition of each country's regulations on the manufacturing of pharmaceuticals, based on GMPs. The MRA makes certification for regulatory compliance faster and cheaper. Efficient certification procedures will, in turn, help to open doors for smaller firms that were formerly unable to enter European markets because of prohibitive regulatory costs. It is expected that Canada-EU co-operation will continue to reduce and eliminate tariff and non-tariff barriers, which will further ease Canada's penetration of EU markets. For further information, contact Health Canada.

Export Development Canada

Export Development Canada (EDC) offers export financing and insurance to Canadian exporters. Additionally, insurance can be provided for larger transactions that are subject to the terms and conditions established by the buyer. EDC prefers to work through letters of credit, bank credits or bank guarantees. Approval for financing is considered on a case-by-case basis.

New Exporters to Overseas

The New Exporters to Overseas (NEXOS) program helps Canadian companies that have not yet exported to Europe. NEXOS introduces the essentials of exporting and provides practical information and first-hand exposure to European markets. The program emphasizes information in areas such as customs procedures, market access, shipping, labelling, distribution channels and currency regulations. Flexibility and fast turnaround times are the hallmarks of this program. Each mission includes thorough briefings on how to find an agent, a distributor, an associate, in other words how to do business in the destination country.

NEXOS missions are arranged for groups of companies in the same general sector. Because of this, applications from individual firms cannot always be entertained. Individual companies are advised to work with a Canadian organization such as an industry association, chamber of commerce, international trade centre or provincial government to assemble a group of at least six companies on whose behalf a program can be arranged.

The mission is usually built around an event such as a national or international trade fair. Participants are responsible for their own transportation, accommodation and living expenses. NEXOS will cover associated program expenses such as meeting rooms, speakers and local transportation.

Canadian firms must be registered in the WIN Exports database to be eligible to participate.

Contact the Department of Foreign Affairs and International Trade (DFAIT), European Business Development Section (REB) for more information about NEXOS.

Virtual Trade Commissioner

The Virtual Trade Commissioner (vTC) is a new on-line service offered by Canada's Trade Commissioner Service of the Department of Foreign Affairs and International Trade. Through a personalized and password-protected Web page, vTC-registered Canadian exporters will receive timely and relevant information on contacts and business opportunities in targeted foreign markets. The vTC offers registered users direct on-line access to market information, including market reports, business news, events and business leads related to the companies' industry sectors and markets of interest. Users can request services on line from a trade commissioner responsible for their industry sector in their target markets. They will also automatically receive new information as it becomes available. Canadian exporters can register for a Virtual Trade Commissioner at http://www.infoexport.gc.ca.

Program for Export Market Development

The Program for Export Market Development (PEMD) helps Canadian companies enter new markets by sharing the costs of activities that companies normally could not or would not undertake alone, thereby reducing risks involved in entering a foreign market. Eligible costs and activities include market visits, trade fair participation abroad, incoming buyers, product testing for market certification, legal fees for international marketing agreements, air transportation costs of offshore company trainees, product demonstration costs and other costs necessary to execute a market development plan. Activity costs are shared on a pre-approved, 50/50 basis.

The PEMD refundable contribution ranges from $5000 to a maximum of $50 000. Preference is given to companies with fewer than 100 employees for a firm in the manufacturing sector and 50 in the service industry, or with annual sales between $250 000 and $10 million. Other components of the program include international bid preparation (Capital Projects Bidding) and, for trade associations, developing international marketing activities for their membership. For additional information visit http://www.infoexport.gc.ca/pemd/menu-e.asp  or call 1-888-811-1119.

PRIVATE-SECTOR CUSTOMERS

The popularity of nutraceuticals varies among consumers. Generally, consumption tends to be highest among the elderly and lowest among teenagers, while women tend to be the largest consumers of health products within each age group. Baby boomers are the largest growing market for nutraceuticals since they are entering the high-risk age group for most ailments including diabetes and heart disease. Moreover, baby boomers have higher disposable incomes than younger people, enabling them to purchase these products. Sales of nutraceuticals also tend to be seasonal-highest during the winter months when consumers are attempting to avoid or fight viruses and colds.

PUBLIC-SECTOR CUSTOMERS

National Health Service purchasing tends to be highly centralized and currently the NHS is attempting to substantially reduce the number of suppliers it uses. As a result, it is unlikely that Canadian producers would be able to sell directly to the to the NHS but they may find success in the public-sector market through engaging a U.K. distributor.

Successful businesses must demonstrate their ability to complete contracts on a timely basis; meet required standards; establish a respectable financial and commercial reputation; and gain insight into government purchasing procedures. While it is not necessary to be a U.K.-based company, many U.K. government departments do like to see an overseas firm partnered with a U.K. or European firm.

Government Organizations

The Health Food Manufacturers' Association is the governing body for the nutraceuticals industry. In addition, the Medicines Control Agency (MCA) is responsible for the administration and enforcement of medicines legislation in the United Kingdom including borderline products. Products containing culinary herbs are not usually considered medicines unless claims to treat or prevent disease are made of them. However, some herbs with well-known pharmacological effects are usually only found in products for medicinal purpose. Such products require marketing authorizations, formerly known as product licences, from the MCA. The MCA and the Medicines Devices Agency will be merging in April 2003 to form the new Medicines and Healthcare Regulatory Agency.

MARKET LOGISTICS

Channels of Distribution

The main distribution channels for vitamins and dietary supplements include pharmacies, grocery stores and health-food stores. Supermarkets accounted for 30% of nutraceutical sales in 2001 and will continue to grow as the main distribution channel for years to come. Growth in the supermarket share is due largely to the increase of instore pharmacies, which allow consumers to do their shopping in one place. Moreover, nutraceuticals are often planned purchases so the convenience of having them available for purchase along with other dietary food items is a strategic move on the part of retailers. The introduction of private-brand nutraceuticals to grocery stores have also helped boost sales. The leading supermarket chains include Tesco, Sainsbury's and Asda.

There are approximately 11 000 community pharmacies in the United Kingdom, most of which are represented by the National Pharmaceutical Association. Approximately 45% of pharmacies are large chains with five or more stores. Boots is the largest chain in the U.K.

Direct Sales

As a result of increasing price competitiveness, which has led retailers to attempt to cut costs to consumers by importing products directly from the manufacturer, direct sales of vitamins, minerals and supplements have become more popular in recent years. However, exporters are encouraged to use the services of an agent even when selling directly to a retailer in order to ensure that all U.K. regulations are met.

Distributors and Wholesalers

To ensure efficient product distribution, exporters are encouraged to retain the services of a distributor/wholesaler. There are many knowledgeable distributors and wholesalers in the United Kingdom, many of which deal specifically with nutraceuticals. However, distributors and wholesalers have varying degrees of market coverage: many service regional and national markets while some service urban centres only. It may be necessary to engage more than one distributor or wholesaler to guarantee national distribution, although Canadian exporters may wish to establish themselves regionally before attempting U.K.-wide distribution. Brewhurst is currently the largest wholesaler in the U.K. health-food market.

When choosing a distributor or wholesaler, Canadian exporters are encouraged to consider the distributors' relationships with local governments, buyers and banks, the condition of their facilities, and their willingness and ability to keep inventory.

Agents and Sales Representatives

Agents are excellent channels through which exporters can introduce new products into the U.K. market. While agents solicit business and enter into agreements on behalf of the exporter they are representing, they do not take ownership over products they sell.

An exporter needs to weigh a number of factors when selecting an agent, including which region(s) the agent covers; the agent's reputation, product knowledge, experience in handling the exported product, track record, staff (its size and quality); the commission to be paid; and what (if any) after-sales service is provided.

Joint Ventures

Joint ventures can take the form of alliances with large pharmaceutical manufacturers active in the United Kingdom, contract manufacturing for U.K. firms and partnerships with other Canadian health-care companies that have a base in Europe. Partnerships can facilitate navigation of regulatory procedures and distribution channels and can enable sharing of the knowledge and resources essential to successful entry into the market.

Canadian exporters are advised to invest in developing strong business relationships in the United Kingdom and to provide assurance of a long-term commitment to potential customers or partners.

Market-entry Considerations

Although there are many opportunities for exporters of nutraceuticals, a number of retailers in the United Kingdom have developed private-label brands. Drug stores, supermarkets and other retail outlets have found that private-label brands are both increasingly popular and less expensive to produce. These private-label brands will create increased competition for Canadian exporters.

Suggested Business Practices

Consumer education is a essential element of marketing nutraceutical products. Consumers are more likely to buy a product if they are well informed of not only its benefits but also its potential risks. Consumers want to know exactly what they are taking and what the precise short-term and long-term effects will be. Advertisements can be an effective way of delivering the clear, concise information that consumers are seeking.

Participation in some of the United Kingdom's many specialized trade shows and exhibitions is an excellent method for potential exporters to both assess the market and make contacts.

Import Regulations

As a member of the European Union, the United Kingdom follows the Community Integrated Tariff (TARIC) system, which applies duties to all imports from non-EU countries. EU/British import regulations, duties and tariff-rate quotas protect domestic industries by limiting the range of foreign products entering the market. Combined with transportation costs, these factors usually result in Canadian products being, comparatively, higher priced.

Currently, nutraceuticals, included under both vitamins and pharmaceuticals categories, are tariff-free. Tariffs on dietary supplements vary considerably, depending on the specific products. Canadian producers should consult with U.K. agents/distributors to determine applicable tariff rates.

Documentation

All products exported to the United Kingdom must be accompanied by a set of shipping documents. The minimum requirements include a commercial invoice, bill of lading (or airway bill), packing list and insurance documents. Documentation should be checked thoroughly to ensure that it is correctly prepared and arrives with the shipment. All documents must be completed in English.

Packaging and Labelling

It is recommended that Canadian exporters examine both U.K. and EU regulations regarding packaging and labelling standards in order to ensure that products adhere to all regulations. All imported nutraceutical labels are required to be in English and must include the following general information:

• name of the product;
• statement of what the product is;
• list of ingredients and weights in metric units;
• list of additives, preservatives, or colouring used;
• expiry date and any other storage requirement;
• product's country of origin;
• all nutritional information; and
• manufacturer's lot or batch number.

If products cannot be labelled, the appropriate information must be included on any packaging, accompanying printed material or product literature.

Local Standards, Certificates or Registrations

The United Kingdom adheres to the World Trade Organization (WTO)'s Standard Code.

On July 12, 2002, a dietary supplements directive (2202/46/EC) was published and will be implemented in the United Kingdom by July 31, 2003. The Directive provides a list of mineral and vitamin sources, including their maximum and minimum levels, that may be used in the manufacture of food supplements. The Directive also sets out labelling requirements.

Exporters should become familiar with the following standards guides:

• "Traditional Herbal Medicinal Products Directive"
  (http://europa.eu.int/eur-lex/en/com/pdf/2002/en_502PC0001.pdf);
• "Restricted or Prohibited Herbal Ingredients"
  (http://www.mca.gov.uk/ourwork/licensingmeds/
  herbalmeds/prohibit.pdf); and
• "Guide to What is a Medicinal Product"
  (http://www.mca.gov.uk/inforesources/publications/gn8.pdf).

Export Credit Risks, Restrictions on Letters of Credit, Currency Controls

There are no credit risks or restrictions precluding trade of Canadian nutraceuticals in the United Kingdom.

PROMOTIONAL EVENTS

Event:
Natural Trade Show South
March 16-17, 2003 (Annual)
Brighton Metropole
Brighton, England

Organizer:
Target Publishing Limited
The Old Dairy
Hudsons Farm, Fieldgate Lande, Ugley Green
Essex CM22 6HJ
Tel.: (44-012) 7981-6300
Fax: (44-012) 7981-6496
E-mail: info@naturaltradeshow.com
Internet: http://www.naturaltradeshow.com

Organizer:
Brand Events Ltd.
First Floor
Earls Court Exhibition Centre
Warwick Rd.
London, SW5 9TA
Tel.: (44-20) 7471-1080
Fax: (44-20) 7471-1090

Event:
Natural Products Europe 2003
April 6-7, 2003 (Annual)
Grand Hall Olympia
London, England
In addition to organic and natural food products,
this show covers vitamins, supplements, herbal
remedies, alternative therapies and sports
products.

Organizer:
Full Moon Communications
58 High St.
Steyning, West Sussex, UK BN44 3RD
Contact: Chris Down, Show Director
Tel.: (44-190) 381-7305
Fax: (44-190) 381-7314
E-mail: info@naturalproducts.co.uk
Internet: http://www.naturalproducts.co.uk

Event:
Spring Complementary Medicine Festival
April 26-27, 2003 (Annual)
King's Hall, Winter Garden
Ilkley, West Yorkshire

Organizer:
Beryl Fox, Festival Oragniser
1/24 Alexandra Cresent
Ilkley, West Yorkshire LS29 9ER
Tel.: (019) 4360-9454
E-mail: ilkleyfestival@hotmail.com
Internet: http://www.ilkleyfestival.co.uk

Event:
Health & Beauty Show
May 11-12, 2003
NEC Birmingham
Birmingham, England

Organizer:
Reed Business Information
Oriel House
26 The Quadrant
TW9 1DL
Richmond, Surrey, England
Tel.: (208) 910-7910
Fax: (208) 940-2171
E-mail: inquiry@reedexpo.co.uk

Event:
Natural Trade Show North
September 14-15, 2003 (Annual)
Harrogate International Centre
Harrogate, England

Organizer:
Target Publishing Limited
The Old Dairy
Hudsons Farm, Fieldgate Lande, Ugley Green
Essex CM22 6HJ
Tel.: (44-012) 7981-6300
Fax: (44-012) 7981-6496
E-mail: info@naturaltradeshow.com
Internet: http://www.naturaltradeshow.com

Event:
Interphex 2004
May 2004 (Biennial)
National Exhibition Centre
Birmingham, England

Organizer:
Reed Exhibitions
Oriel House, 26 The Quadrant, Richmond
Surrey TW9 1DL, UK
Tel.: (44-020) 8910-7910
Fax: (44-020) 8940-2171
E-mail: inquiry@reedexpo.co.uk
Internet: http://www.reedexpo.com/app

KEY CONTACTS AND SUPPORT SERVICES

Canadian Government Contacts

Canadian High Commission in the United
Kingdom
Macdonald House
1 Grosvenor Square
London, UK W1K 4AB
Contact: Michelle Gartland, Business
Development Officer
Tel.: (44-20) 7258-6600
Fax: (44-20) 7258-6384
E-mail: michelle.gartland@dfait-maeci.gc.ca
Internet: http://www.dfait-maeci.gc.ca/london

Agriculture and Agri-Food Canada
Market and Industry Services Branch
Sir John Carling Building
930 Carling Ave.
Ottawa, ON K1A 0C5
Tel.: (613) 759-7744
Fax: (613) 759-7499
Internet: http://www.agr.gc.ca

Canadian Food Inspection Agency
Office of Biotechnology
59 Camelot Dr.
Nepean, ON K1A 0Y9
Tel.: (613) 225-2342
Fax: (613) 228-6653
E-mail: cfiamaster@agr.gc.ca
Internet: http://www.inspection.gc.ca

Department of Foreign Affairs and International Trade (DFAIT)
125 Sussex Dr.
Ottawa, ON K1A 0G2
Internet: http://www.dfait-maeci.gc.ca

Market Research Centre (TCM)
Contact: Michelle Morris, International Market
Analyst
Tel.: (613) 996-2462
Fax: (613) 943-1103
E-mail: michelle.morris@dfait-maeci.gc.ca
Internet: http://www.infoexport.gc.ca

Market Support Division (TCM)
Contact: Christopher Duggan, Trade
Commissioner
Tel.: (613) 996-1431
Fax: (613) 944-0050
E-mail: christopher.duggan@dfait-maeci.gc.ca
Internet: http://www.infoexport.gc.ca

Northern Europe Division (REN)
Contact: Graham Gleddie, Desk Officer
Tel.: (613) 995-9766
Fax: (613) 995-6319
E-mail: graham.gleddie@dfait-maeci.gc.ca

Export Development Canada (EDC)
151 O'Connor St.
Ottawa, ON K1A 1K3
Tel.: 1-888-332-3320 or (613) 598-2500
Fax: (613) 237-2690
E-mail: export@edc-see.ca
Internet: http://www.edc-see.ca

Health Canada
International Affairs Directorate
Brooke Claxton Building, Room 814A
Postal Locator 0908A
Tunney's Pasture
Ottawa, ON K1A 0K9
Tel.: (613) 941-3136
Fax: (613) 952-7417
Internet: http://www.hc-sc.gc.ca

Industry Canada
Life Sciences Branch
PO Box 940, Station M
1505 Barrington St.
Halifax, NS B3J 2V9
Contact: Mark Craig, Sector Officer
Tel.: (902) 426-9958
Fax: (902) 426-2624
E-mail: craig.mark@ic.gc.ca
Internet: http://strategis.ic.gc.ca

Canadian Industry Associations

British Columbia Functional Food and Nutraceutical Network (BCFN)
c/o Faculty of Agricultural Sciences
University of British Columbia
Food, Nutrition and Health Bldg., Room 218
2205 East Mall
Vancouver, BC V6T 1Z4
Tel.: (604) 822-6920
Fax: (604) 822-5143
E-mail: info@bcfn2.com
Internet: http://www.bcfn2.com

BC Herb Growers Association (BCHGA)
4607 23rd St.
Vernon, BC V1T 4K7
E-mail: membership@bcherbgrowers.com
Internet: http://www.bcherbgrowers.com

Canada's Research-Based Pharmaceutical Companies
1111 Prince of Wales Dr., Suite 302
Ottawa, ON K2C 3T2
Tel.: (613) 727-1380
Fax: (613) 727-1407
Internet: http://www.canadapharma.org

Canadian Association of Importers and Exporters
438 University Ave., Suite 1618
Toronto, ON M5G 2K8
Tel.: (416) 595-5333
Fax: (416) 595-8226
E-mail: info@caie.ca
Internet: http://www.importers.ca

Canadian Food Exporters Association
885 Don Mills Rd., Suite 301
Don Mills, ON M3C 1V9
Tel.: 1-888-227-8848 or (416) 445-3747
Fax: (416) 510-8044
E-mail: info@cfea.com
Internet: http://www.cfea.com

Canadian Health Food Association
550 Alden Rd., Suite 205
Markham, ON L3R 6A8
Tel.: (905) 479-6939
Fax: (905) 479-1516
E-mail: mdawood@chfa.ca
Internet: http://www.chfa.ca

Food Institute of Canada (FIC)
1600 Scott St., Suite 415
Ottawa, ON K1Y 4N7
Tel.: (613) 722-1000
Fax: (613) 722-1404

Quebec Agri-Food Export Club
668 Montée Montarville
PO Box 10
Saint Bruno, QC J3V 6B1
Tel.: (450) 461-6266
Fax: (450) 461-6255
E-mail: clubexport@clubexport.ca
Internet: http://www.clubexport.ca/public/index.htm

Saskatchewan Nutraceutical Network
105 North Rd.
Saskatoon, SK S7N 4L5
Tel.: (306) 652-2783
Fax: (306) 933-7208
E-mail: info@nutranet.org
Internet: http://www.nutranet.org

U.K. Government Contacts in Canada

British High Commission
80 Elgin St.
Ottawa, ON K1P 5K7
Contact: Julia Hinde, First Secretary (Science
and Technology)
Tel.: (613) 237-1542 ext. 2360
Fax: (613) 237-5211
E-mail: julia.hinde@britainincanada.org
Internet: http://www.britainincanada.org

British Consulate General in Montreal
1000 de la Gauchetiere W, Suite 4200
Montreal, QC H3B 4W5
Contact: Stephanie Murphy
Tel.: (514) 866-5863 ext. 2228
Fax: (514) 866-0202
E-mail: Stephanie.Murphy@fco.gov.uk
Internet: http://www.uk-canada-trade.org

British Consulate General in Toronto
777 Bay St., Suite 2800
Toronto, ON M5G 2G2
Contact: Carla Taverniti
Tel.: (416) 593-1290 ext. 2228
Fax: (416) 593-1229
E-mail: Carla.Taverniti@fco.gov.uk
Internet: http://www.uk-canada-trade.org

British Consulate General in Vancouver
1111 Melville St.
Vancouver, BC V6E 3V6
Contact: Dianne Coleman
Tel.: (604) 683-4421 ext. 2207
Fax: (604) 681-0693
E-mail: Diane.Colman@fco.gov.uk
Internet: http://www.uk-canada-trade.org

British Trade Office in Calgary
1500 Bow Valley Square IV
6th Ave. SW, Suite 250
Calgary, AB T2P 3H7
Tel.: (403) 705-1755
Fax: (403) 538-0121
Internet: http://www.uk-canada-trade.org

U.K. Government Contacts

Agriculture and Environmental Biotechnology Commission
Bay 479
1 Victoria St.
London, UK SW1H 0ET
Tel.: (44-20) 7215-6508
Fax: (44-20) 7215-0313
E-mail: aebc@dti.gsi.gov.uk
Internet: http://www.aebc.gov.uk

Department for Environment, Food and Rural Affairs
Nobel House
17 Smith Square
London, UK SW1P 3JR
Tel.: (44-20) 7238-6000
Fax: (44-20) 7238-6591
Internet: http://www.defra.gov.uk

Department of Health
Richmond House
79 Whitehall
London, UK SW1A 2NS
Tel.: (44-20) 7210-4850
Fax: (44-20) 7210-5433
E-mail: dhmail@doh.gsi.gov.uk
Internet: http://www.doh.gov.uk

National Health Services
Internet: http://www.nhs.uk

Department of Trade and Industry
1 Victoria St.
London, UK SW1H 0ET
Tel.: (44-20) 7215 5000
Internet: http://www.dti.gov.uk

Biotechnology Directorate
151 Buckingham Palace Road
London, UK SW1W 9SS
Tel.: (44-20) 7215-5000
Fax: (44-20) 7215-1379

Food Standards Agency
Aviation House
125 Kingsway
London, UK WC2B 6NH
Tel.: (44-20) 7276-8000
Internet: http://www.foodstandards.gov.uk

Medicines Control Agency
Market Towers
1 Nine Elms Lane
London, UK SW8 5NQ
Tel.: (44-20) 7273-0000
Fax: (44-20) 7273-0353
E-mail: info@mca.gov.uk
Internet: http://www.mca.gov.uk

Borderline Section
Tel.: (44-20) 7273-0759
Fax: (44-20) 7273-0439

U.K. Industry Associations

Association of the British Pharmaceutical Industry (ABPI)
12 Whitehall
London, UK SW1A 2DY
Tel.: (44-20) 7930-3477
Fax: (44-20) 7747-1414
Internet: http://www.abpi.org.uk

BioIndustry Association (BIA)
14/15 Belgrave Square
London, UK SW1X 8PS
Tel.: (44-20) 7565-7190
Fax: (44-20) 7565-7191
Internet: http://www.bioindustry.org

BIA Scotland
Festival Business Centre
Unit 17, Brand St.
Glasgow, Scotland GS1 1DH
Tel.: (44-141) 427-9977
Fax: (44-141) 427-0744

British Generic Manufacturers Association
26 Grosvenor Gardens
London, UK SW1W 0GT
Tel.: (44-20) 7838-4800
Fax: (44-20) 7838-4801
E-mail: info@britishgenerics.co.uk
Internet: http://www.britishgenerics.co.uk

British Herbal Medicine Association
Sun House, Church St. Stroud
Gloucestershire, UK GL5 1JL
Tel.: (44-14) 5375-1389
Fax: (44-14) 5375-1402
E-mail: Ray.Hill@bhma.info
Internet: http://www.bhma.info

British Medical Association
BMA House
Tavistock Square
London, UK WC1H 9JP
Tel.: (44-20) 7387-4499
Fax: (44-20) 7383-6400
Internet: http://www.bma.org.uk

Consumers for Health Choice (CHC)
9 Old Queen St.
London, UK SW1H 9JA
Tel.: (44-20) 7222-4182
Fax: (44-20) 7222-4192
E-mail: enquiries@healthchoice.org.uk
Internet: http://www.healthchoice.org.uk

CHC Ireland
Tig Fili, Mac Curtain St.
Cork, Ireland
Tel.: (44-21) 455-3294
E-mail: chc_cork@hotmail.com
Internet: http://basic2.host.ie/chc1/index1.html

European Herbal Practitioners Association
45A Corsica St.
London, UK N5 1JT
Tel.: (44-20) 7354-5067
Fax: (44-20) 7354-3605
Internet: http://www.users.globalnet.co.uk/~ehpa/index.htm

European Medicines Evaluation Agency (EMEA)
7 Westferry Circus
Canary Wharf
London, UK E14 4HB
Tel.: (44-20) 7418-8400
Fax: (44-20) 7418-8416
E-mail: mail@emea.eu.int
Internet: http://www.emea.eu.int

Health Food Manufacturers' Association
63 Hampton Court Way
Thames Ditton
Surrey, UK KT7 0LT
Tel.: (44-208) 398-4066
Fax: (44-208) 398-5402
E-mail: hfma@hfma.co.uk
Internet: http://www.hfma.co.uk

Irish Association of Health Food Stores
Unit 2d, Kylemore Industrial Estate
Dublin 10, Ireland
Tel.: (44-01) 623-6828

National Pharmaceutical Association
Mallinson House
38-42 St. Peter's St.
St. Albans, Hertfordshire, UK AL1 3NP
Tel.: (44-017) 2783-2161
Fax: (44-017) 2781-0252
E-mail: npa@npa.co.uk
Internet: http://www.npa.co.uk

Natural Medicines Society
PO Box 205
Hampton
Middlesex, UK TW12 3WP
Tel.: (44-870) 240-4784
E-mail: enquiries@the-nms.org.uk
Internet: http://www.the-nms.org.uk

Trade Publications

The Alternative (quarterly)
Park View Publishing Ltd
Park View House
19 The Avenue
Eastbourne, East Sussex BN21 3YD
Tel.: (44-013) 2341-1601
Fax: (44-013) 2341-1654
E-mail sales@alternativemagazine.co.uk
Internet: http://alternativemagazine.co.uk

Chemist & Druggist (weekly)
Miller Freeman UK Ltd.
Sovereign Way
Tonbridge
Kent TN9 1RW
Tel.: (44-17) 3236-4422
Fax: (44-17) 3236-1534
Internet: http://www.dotpharmacy.com

Health Food Business
Bestway Designs Ltd.
Claremont House
12-18 Claremont Road
West Byfleet, Surrey, KT14 6DY
Tel.: (44-019) 3233-6325
Fax: (44-019) 3235-3670
E-mail: healthfdmg@aol.com

Natural Products News
Mouse Lane
Steyning
West Sussex BN44 3DG
Fax: (44-190) 387-9966
E-mail: dmillis@naturalproducts.co.uk

SCRIP World Pharmaceutical News (biweekly)
PJB Publications Ltd.
18-20 Hill Rise
Richmond
Surrey TW10 6UA
Tel.: 44-20-8948 3262
Fax: 44-20-8332 8993
Internet: http://www.pjbpubs.com/scrip

BIBLIOGRAPHY

Print

The Daily Telegraph. "Safe Levels of Vitamins Suggested for First Time," August 30, 2002.

Datamonitor. United Kingdom-Vitamins and Dietary Supplements. July 2002.

Dun & Bradstreet. Exporters' Encyclopaedia. "The United Kingdom," 2002.

Espicom Business Intelligence. World Pharmaceutical Markets-United Kingdom. July 2002.

Euromonitor. The Market for OTC Healthcare in the United Kingdom. July 2002.

Freedonia Group. World Nutraceuticals to 2006. June 2002.

The Guardian. "Health Supplements-R.I.P.," September 14, 2002.

International Business Strategies. "The Nutraceutical and Health Food Industry Market in the UK," December 2001.

Natural Food Merchandiser. "Boomers Buying Nutraceuticals," February 2002.

Pharmaceutical Executive. "Alternative Medicine Goes Mainstream in UK," February 2002.

Stat-USA. United Kingdom Country Commercial Guide FY 2003. "Trade Regulations: Customs and Standards," August 12, 2002.

Electronic

Canada. Agriculture and Agri-Food Canada. "Functional Foods and Nutraceuticals", December 14, 2001. Downloaded from http://www.agr.gc.ca/food/nff/enutrace.html on October 18, 2002.

-. "Trends - Food in the U.K.," July 2002. Downloaded from
http://atn-riae.agr.ca/info/europe/e3350.htm on October 23, 2002.

-. "Export From Canada - United Kingdom," August 2002. Downloaded from http://ats.agr.ca/stats/trade_data/UnitedKingdom_x08.pdf on October 31, 2002.

NutraIngredients.com. "Major Opportunities in UK Eye Health Market ," May 10, 2002. Downloaded from http://www.nutraingredients.com/
news/printnews.asp?id=4467 on October 23, 2002.

-. "Britain Issues Report on Vitamin Upper Levels," August 30, 2002. Downloaded from http://www.nutraingredients.com/news/
printnews.asp?id=5254 on October 23, 2002.

-. "Kitsune Boosts Sports Nutrition Range," October 7, 2002. Downloaded from http://www.nutraingredients.com/news/news.asp?id=5583 on October 23, 2002.

-. "Victory for Supplements Industry in European Parliament," October 25, 2002. Downloaded from http://www.nutraingredients.com/
news/news.asp?id=5754 on October 25, 2002.

-. "Tesco Makes Move in Healthcare Market," November 12, 2002. Downloaded from http://www.nutraingredients.com/news/
news.asp?id=5851# on November 12, 2002.

-. "European Sports Nutrition Enters Mainstream Market," November 13, 2002. Downloaded from http://www.nutraingredients.com/ news/news.asp?id=5858# November 13, 2002.

United Kingdom. Food Standards Agency. "Food Supplements Directive," August 1, 2002. Downloaded from http://www.foodstandards.gov.uk/news/
newsarchive/84228 on October 23, 2002.

United Kingdom. Medicines Control Agency. "Licensing of Medicines: What is a Medicine/Borderline product?," March 5, 2002. Downloaded from http://www.mca.gov.uk/ourwork/licensingmeds/whatis/whatis.htm on October 29, 2002.

-. "Merger of Health Regulatory Agencies to Strengthen Public Protection," June 19, 2002. Downloaded from http://www.mca.gov.uk/whatsnew/pressreleases/dhmerger.pdf on October 29, 2002.

United States. International Trade Administration. "Supplements Go International," 2002. Downloaded from
http://www.ita.doc.gov/exportamerica/Volume%202/
April%202001/nfc_DietarySupp.htm on October 31, 2002.

OTHER REFERENCE MATERIAL

Useful Internet Sites

Agriculture and Agri-Food Canada - Functional Foods and Nutraceuticals:

http://www.agr.gc.ca/food/nff/enutrace.html

BioGuide: http://www.dti.gov.uk/bioguide

Biopartner UK: http://www.biopartneruk.com

Brewhurst Health Food Supplies Ltd.: http://www.brewhurst.com

British Chambers of Commerce: http://www.britishchambers.org.uk

dotpharmacy: http://www.dotpharmacy.com/index2.html

Europa - The European Union On-Line: http://europa.eu.int/index_en.htm

ExportSource: http://exportsource.gc.ca

InfoExport: http://www.infoexport.gc.ca

Natural Healing UK: http://www.natural-healing.co.uk

1 All monetary amounts are expressed in Canadian dollars, unless otherwise indicated. The conversion rate to Canadian dollars is based on IDD Information Services, Tradeline, October 2002.

2 For contact information regarding key organizations mentioned in this report, see Key Contacts.