Benchmarking Study on Hemp Use and Communication Strategies

A recently issued marketing and communication study on industrial hemp by Business for Social Responsibility (BSR) concludes that environmental attributes are the major reason hemp is gaining popularity in the US. Technical qualities were also cited as a reason. Companies working with hemp have taken pains to educate both staff and consumers on hemp's environmental advantages. The study indicates that in terms of marketing, controversy was created in making associations between hemp and other forms of cannabis sativa. The implication is that such tactics are unnecessary and may stymie further growth of the market.

The Benchmarking Study on Hemp Use and Communication Strategies, released this fall, surveyed four companies producing consumer goods containing hemp content in the US: adidas, The Body Shop, Patagonia, and Two Star Dog.

According to the report, adidas began using hemp in their athletic footwear three years ago, with a goal of making a cost-effective shoe made of environmentally sensitive materials. Though the company did not promote the hemp content of the shoe beyond product labelling, they were did receive some negative feedback on their use of hemp fibres, including the head of the PTA of an American school. Most of the response, mostly from younger generations, was supportive and often requested more information about hemp.

The Body Shop says they chose to use hemp oil in its products because of its environmental attributes and its potential to attract consumer attention. An "in-your-face" marketing campaign in 1998 that made connections between industrial hemp and marijuana drew criticism, was similarly concerned with the message being sent to younger people.

Patagonia uses hemp in selected items in its outdoor clothing line. Like the Body Shop, the company has a history of environmental activism in the marketplace, but similar to adidas, did not play up the hemp content its line. Patagonia has chosen to direct most of its marketing resources towards its continuing use of organic cotton. Customer feedback on the company's hemp usage has all been positive-on environmental grounds and for the style and durability of the clothing.

Two Star Dog says they chose to use hemp in its clothing line for its environmental attributes as well as its durability and versatility. Their chosen market: eco-stores and upscale boutiques, has generated little negative feedback. However, they have received some criticism from the naming of the skincare line "Body Dope".

All four companies indicated that they would continue using hemp due to its popularity. The clothing companies all source hemp from China or Europe at this point. According to the study, if hemp farming is legalised in the US, most of them would be likely to use more hemp in their products.

From the Report: Trends

"Apart from the regulatory issues, all of the companies interviewed foresee the following trends...:
* Increasing awareness of the differences between industrial hemp and marijuana;
* A growing appreciation of the environmental benefits of hemp cultivation; and
* Increasing pressure on state governments to allow hemp cultivation in the US by farmers (particularly wheat, corn and tobacco) and environmentalists"

Analysis of Communication and Marketing Strategies

"All of the companies we interviewed market their use of hemp and have received varying amounts of positive and negative feedback based on their marketing campaign. Generally, these companies have received a great deal more positive than negative feedback. Of that negative feedback, it is worth noting that almost all of it centred on associations between hemp and marijuana. Many parents and teachers believe these associations send the wrong message to young people. Additionally, many environmentalists and industrial hemp advocates feel that making these associations undermines the credibility of the crop as a sustainable alternative to other materials. However, companies who have made these associations have also experienced healthy sales of their hemp products - particularly among younger customers who are generally knowledgeable on the differences between hemp and marijuana. "

"A company that sells hemp products must decide whether to communicate its use of hemp, and the appropriate communication and marketing strategy. Of the companies we interviewed, most of them have developed programs (of varying scale) to educate consumers and employees on the issues surrounding industrial hemp cultivation. Hemp is an environmentally-sound material, adds quality to a number of products, and is not the same plant species as marijuana. If a company chooses to sell hemp without making efforts to frame these issues, consumers, employees, and other stakeholders may be influenced by their own perceptions (and possible misconceptions) about hemp. Additionally, customers will not be able to make purchasing decisions based on environmental attributes as easily. This could potentially cut off a significant market - the same market who responded so favourably to the efforts other companies have made to sell hemp. A corporate communication or marketing strategy involving hemp should factor in these issues to determine how and why it wants to communicate its efforts to sell hemp products (emphasis added.)"

The BSR is a San Francisco based non profit organisation that provides information and services to all sizes of companies and business sectors. Their mission is to help businesses be commercially successful in ways that show respect for ethical values, people, communities and the environment. Check out BSR at their website at http://www.bsr.org

Study excerpts reprinted by permission by BSR

By the Numbers
The HCFR 's Year End List:

# of license applicants (by June 11th, 1999): 636
# of applicants granted licenses: 578
# of applicants refused licenses: 0

Hectares under license in Canada: 14, 261.26
Hectares contracted by Consolidated Growers and Processors in Western Canada: 8500
Hectares cultivated in Spain: 11, 032
In France: 11,000
Total hectares in Europe 30,800

Price paid for conventionally grown hemp seed: $0.60 lb.
Price paid for organically grown: $ 1.00 lb.
Price Canadian Wheat Board will pay for its highest-rated barley: $0.35 lb.
Retail price of hemp seed in a leading west coast natural foods store: $4.29 lb
Best grain yield 1999: 2012 lbs. per acre

Global hemp sales in 1993: $3 million
Estimated US hemp sales for 1999: $225 million
Projected size of US organics food market in 2000: $ 6.6 billion
Value of all Canadian Agri-food exports 1999 (to October): $ 17.6 billion
Most bullish estimated size of all eventual markets for hemp as a nutraceutical, cosmetic, fibre, technical oil, food: $50 billion

Value of Canadian hemp fibre exports, raw and retted, from 1997-1999: $130,908
Value of Canadian hemp fibre exports, processed but not spun (tow and waste), from 1997-1999: $74, 917
Value of Canadian hemp fibre exports (same categories), from 1997-1999 to other countries besides the US: $0
Value of Canadian hemp fibre imports from the EU in 1999: $311, 531
Hemp fibre imports from China, 1999: $1064
Average annual Flax fibre exports, 96-99: $ 27.25 million

1999 Research acreage in Canada: 95.5 hectares.
Size of Hawaii research project: 0.5 acres
Size of original request: 10 acres

Approx. length between Hawaii Research project was announced, and issuance of license by DEA: 5 months
How long to grow hemp to maturity (high end): 120 days
Length of the "Hemp Embargo": 87 days (August 9th-November 4th)
Optimal turnaround time for Heath Canada to issue a license: 10 working days

Global Body Shop sales: $ 968.91 million (US figures)
Estimated value of The Body Shop's hemp product sales in 99: $90-100 million
Alterna's donation to the Hawaii Research project: $200, 000 US

Number of cultivars approved for planting in Canada: 23
How many maintained exclusively in France: 7
How many approved cultivars that share the name of a Canadian entertainer: 1

Licenses granted for plant breeding Canada-wide 13
Licenses granted for plant breeding Ontario 11
Number of hemp strains maintained in the Vavilov Research Institute in St. Petersburg, Russia: 496
How many that have reproduced by the IHA over the last 5 years: 379

Allowable THC limits in field: 0.3%
Amount of THC allowed in oil, grain and oil-based products: 0.0010%
THC count in Kenex's "dirty seed": 0.0014 %
Amount of THC claimed to make a person test positive in a urine test:?

# of issues of the HCFR published online this year: 7
Estimated word count: 65,000
If the HCFR was a 32-page paper magazine with 45-50% advertising content, how many issues would this be: 4
Cost of a hemp license in Canada: $0
Cost of the HCFR to you, the reader: free

Happy New Year!

Historical Hemp Highlights
Compiled by John E. Dvorak
(All figures relate to the USA unless noted)

# of tons of hemp used on USS Constitution in 1797: 50.
# of tons of hemp used on USS Constitution in 1999: 0.
# of states that grew hemp in 1860: 33.
# of states that grew hemp in 1900: 7.
# of states that grew hemp in 1998: 0.

Price per ton paid for Russian hemp in 1824: $170
Price per ton paid for American hemp in 1824: $115
Average # of tons of Russian hemp used each year between 1839 and 1843 to make cordage at the Charlestown Navy Yard ropewalk: 500.
Average # of tons of American hemp used: 7.

Number of tons of hemp used by the US Navy in 1849: 800.
Average yield per acre of hemp fibre in 1849: 800 pounds.
Cost to cultivate 1 pound of hemp fibre in 1849: 2.5 cents.
Average received by farmers for 1 pound of hemp fibre in 1849: 5 cents.
# of tons of hemp fibre produced in 1860: 74,493.

Average # of tons of hemp imported each year between 1887 & 1891: 36,919.
Average # of tons of hemp imported each year between 1892 & 1913: 5,500.
Average # of tons of hemp fiber produced in Kentucky between 1876 and 1900: 4,350.

John E. Dvorak, Hempologist, is a Founder of the Boston Hemp Co-op, Museum and Library: boston.hemp@pobox.com & http://hempology.org/

Northern Hemp Gathering in Hazelton, BC
By Catherine Kendall

On November 8, 1999 a northern hemp gathering was held in the small village of Hazelton, BC. Tero Laakkonen from Finland and Sasha Prytyk from Saskatchewan were the special guests. Laakokkonen, an organic farmer and hemp seed breeder is the co-founder of the FIN314 hemp seed. Prytyk, an organic farmer, a natural fibre specialist and partner with Gen-X (hemp seed importers and hemp seed growers) based in Regina, Saskatchewan, is responsible for bringing the FIN 314 seed into Canada.

The meeting in Hazelton was an awesome hemp networking opportunity for the Gitsegukla Hemp Project participants, local community members, local hemp growers and guests. Polish and Ukraine hemp growing and harvesting, organic hemp growing, hemp seed nutrition, the basics of hemp growing, hemp research and local hemp growing experiences from across central BC were the highlights of discussion.

Co-ordinated by Dave Ryan, the Gitsegukla band has been growing hemp under licence for the past two years.

Besides this invaluable formal exchange of hemp information, a separate room was transformed into a creative hemp display for everyone to see, feel, smell, taste and craft the many forms of hemp. Throughout the day, approximately 150 local elementary and high school students were guided through this hemp exhibit. Lots of young smiling faces experienced braiding hemp fibre crafts, tasting roasted hemp seeds and invigorating new insight into the world of hemp.

Catherine Kendall (horsehemp@hotmail.com) is a board member of the BC Industrial Hemp Grower's Association.

Guelph, Ontario January 27-30, 2000. 19th Annual Organic Conference and Eco-Products Trade Show

The 19th Guelph Organic Conference (Jan. 27-30/2000) is a leading organic educational and marketing event, held at the U. of Guelph, Ontario.

The Eco-Products Trade Show, an important trade gathering for the organic/alternative sector, is now sold out (85-90 tables in the Guelph University Centre) to a wide range of traders, certifiers, associations and agencies.

The Conference's educational program includes over 30 workshops, seminars and keynote talks, featuring U.S. guest speakers Eliot Coleman and Barbara Damrosch.

One workshop of interest fore readers of the HCFR is Ruth Shamai's 'Certified Organic Hemp Production & Marketing' taking place Sat. Jan. 29th at 11.00 am. Paid admission is required for this and all other workshop presentations.

Though the January 7, 2000 early registration discount postmark deadline is imminent, guests can register on an as-available basis at the door, starting Jan. 28 at 12.00 noon and continuing 8.00 am Jan. 29 or 8.00 am Jan. 30.

A full brochure can be express-mailed to Hemp readers by phoning (705) 444-0923 or by E-Mailing organix@georgian.net Full Conference data is at http://www.gks.com.

Contact: Tomas Nimmo, Conference Co-ordinator, Box 116, Collingwood, Ontario, Canada, L9Y 3Z4, Voice: (705) 444-0923 fax: (705) 444-0380, email: organix@georgian.net

Montreal: January 31st-February 4^th: Paperweek 2000

Palais des Congrès de Montreal. Annual meeting convention with exhibition co-hosted by the Canadian Pulp and Paper Association (CPPA) and the Pulp and Paper Technical Association of Canada (PAPTEC). Thousands of attendees from some forty countries will gather to discuss business conditions and learn about new technologies. The event will include CPPA Open Forums, the PAPTAC technical sessions with over 200 presentations, and the EXFOR products exposition.

Contacts: PAPTAC Annual Meeting Technical Program, Contact: Glen Black, voice: 514-392-6967, fax: 514-392-0369, email: gblack@paptac.ca
PAPTAC Annual Meeting Registration, Contact: Pascale Frappier, voice: 514-392-6954, fax: 514-392-0369, email: pfrappier@paptac.ca
EXFOR registration, Contact: Michèle Vézina, voice: 514-392-6965, fax: 514-392-0369, email: mvezina@paptac.ca

Winnipeg, Manitoba, February 29^th and March 1st: HEMP 2000 Speaker Series & Trade Show The Manitoba Industrial Hemp Association will be hosting Hemp 2000 at the Ramada Marlborough Hotel, February 29^th and March 1^st in Winnipeg, Manitoba. The Hemp 2000 Speaker Series and Trade Show will deliver factual information about producing, harvesting, processing & marketing industrial hemp in order to strengthen industry potential and growth. All private and public sectors with an interest in the hemp industry are encouraged to attend

Hemp 2000 will feature expert guest speakers, panel discussions, a networking luncheon, an exhibit area with hemp related products & services, and hemp food & beverages. The event will open on the February 29^th with an evening reception featuring a live auction

The speaker series will feature an exceptional group of hemp experts who will present their knowledge and experience through a series of presentations and panel sessions to educate and inform participants about the changes and advancements in the hemp industry as we enter the new millennium (speakers & topics t.b.a.). The conference is a must see for those interested in: the state of the hemp industry in North America, Government regulations & updates, hemp business opportunities & market trends, hemp food marketing, quality & THC research, hemp fibre in the marketplace, advances in hemp production and hemp research & development.

HEMP 2000 is organised by the Manitoba Industrial Hemp Association and sponsored by Manitoba Agriculture & Food and Agriculture & Agrifood Canada. Event Co-ordination provided by Blue Sky Business Services.

The Manitoba Industrial Hemp Association is a non-marketing agency whose mandate is to promote the development and sustained growth of the Manitoba hemp industry. The MIHA acts as a united voice to facilitate and support hemp production, processing, research, public awareness and education. The MIHA mission is to promote the use of industrial hemp as a commercial crop.

Please Note: HEMP 2000 deals exclusively with industrial hemp and does not promote or support recreational cannabis. All sponsors & exhibitors must agree to only display literature and/or products promoting the use of industrial hemp and not recreational cannabis. The MIHA reserves the right to remove any materials deemed unsuitable from the show.

Early bird tickets must be purchased by February 4^th, 2000.

Contacts:
To receive an application to exhibit at the show or for more information please contact: Heather Daymond at 204-983-2994, or email daymondh@em.agr.ca
For speakers & topics, call Bruce Brolley, Crop Diversification Section, Manitoba Agriculture & Food at 204-745-5667 for up to date information.
For interviews & media information contact: Shaun Crew at 204-275-7616

Or goto www.pembinavalley.com/miha or http://www.pangea.ca/~hemp2000/

May 13^th-14^th, 2000… Santa Cruz Industrial Hemp Expo

The third annual Santa Cruz Industrial Hemp Expo is scheduled for May 13 and 14 at the Civic Auditorium in Santa Cruz, California. The event will be MC'd by Mari Kane, publisher of Hemp Pages — The Hemp Industry Source Book.

Over 75 booths are available for vendors at the 2000 show, which includes a major expansion into tented and out of doors space.

The Santa Cruz Industrial Hemp Expo provides a positive basis for public support of hemp reintroduction, with an open-to-the-public, trade-show based setting that is well organised and effectively promoted. Live music, a hemp fashion show, a hemp house, a hemp camp display, hemp foods and beverages, educational and historical exhibits, workshops, videos, speakers and panel discussions are featured.

For more information call the Hemp Expo's publicity voicemail at (831) 425-3003, or visit on the web at http://www.cruzexpo.com. Vendor inquiries call (831) 457-2670.

HAVING AN INDUSTRIAL HEMP EVENT?
Contact Arthur Hanks, HCFR Editor, at arthurhanks@hotmail.com with details.

MARKETPLACE

Looking for bulk hemp seed products?? Hemp Oil Canada Inc. - http://members.home.net/lyfordg
Contact Geoffrey Lyford, Project Co-ordinator at lyfordg@home.com ______________________________________________________________________

Feral Hemp wanted.... Any reader with knowledge of wild hemp habitat is urged to contact Dr. Sumach for more information about collecting viable wild hemp seed and forwarding it correctly. Please Contact: Dr. Sumach, Hemp Futures Study Group, PO Box 1680, Niagara on the Lake Ontario, Canada, LOS IJO, 905 468 3928, rheading@becon.org
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Feed the world with a click of the mouse. Visit the Hunger Site at http://www.thehungersite.com _______________________________________________________________________

REACH A WIDE QUALIFIED AUDIENCE THROUGH ADVERTISING IN THE HCFR. Sponsorship and Supporting positions also available. Marketplace special! Have your link here for as low as $20 per issue. For more information, please email: jfreeman@ssm.net _________________________________________________________________________________

Get your website up and going already…
Online but not on the web? Need to give your non-profit group an Internet presence? Too busy to get around to setting up … still? ? Terry Lefebvre of Hemptrade is offering FREE web page hosting for industrial hemp-related sites, as well as layout, set up and administration for all sites at fairly reasonable rates. Contact Terry at hempmaster@hemptrade.com for more info.

READER'S FEEDBACK: Keep us honest and write us. Let us know what you think about our formats, articles, coverage, tone, delivery, coverage and everything we are doing. We appreciate all letters and emails, though we can't reply to them all. Make the HCFR the reader's choice!

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DISTRIBUTION:

The HCFR is available for free to interested parties only on the Internet. Direct subscription for this issue is 1,300+. We encourage associations working in the industry to circulate the HCFR to their members (*.txt versions are available to all interested parties, please contact us, if this is what you want). Other non-profit use is encouraged.

THE HCFR ON THE WWW:

Back issues of the HCFR are posted on the following industrial hemp websites: Natural Hemphasis, Hemptrade, Hemppages, Global Hemp and Hemp Cyberfarm. Check us out at:

http://www.hemphasis.com/hcfr
http://www.hemptrade.com/hcfr
http://www.hemppages.com
http://www.globalhemp.com/Media/Magazines/HCFR/
http://www.hempcyberfarm.com

Thanks to David Marcus, Terry Lefebvre, Mari Kane, Eric Pollit and Matthew Huijgen for their continuing good work on making needed information available.

SUBSCRIPTION INFO:

To subscribe directly to the HCFR, please email jfreeman@ssm.net with SUBSCRIBE in your message line. We will keep you posted about the latest news, alerts and special offers. If you no longer want to receive email about Canada’s hemp industry, please email us at the same address, message line UNSUBSCRIBE.
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NEXT ISSUE: Issue will be out January 20th: Ads will close Janaury 14th.

© 1999 AHEM, ARTHUR HANKS. INDIVIDUAL ARTICLES REMAIN PROPERTY OF THE AUTHOR (S). NOT TO BE DUPLICATED FOR FINANCIAL OR PERSONAL GAIN. CONTACT US ABOUT REPRODUCTION RIGHTS.

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