>  LETTER FROM THE EDITOR 
   -- by Susan Westfall

Spring is my favorite season, as it symbolizes a time of renewal and rebirth. I also love the warm weather that precedes the intense heat of the summer, and I particularly delight in seeing the flowers bloom, hearing the birds chirp, and witnessing the overall boom of new life.


Aloecorp has also been experiencing a renewal and rebirth of sorts, and it is timely that during this season of spring, they have decided to resurrect ALOE TODAY after a few months’ reprieve. The publication has taken on a slightly new expanded format, which may vary with each quarterly publication.

For instance, in this edition, we’ve featured new columns highlighting an Aloecorp Star of the Quarter, Comments from a Customer, an Aloecorp Technology Update, the Aloecorp Sales Corner, and a featured Aloe Product of the Quarter.
So many exciting developments have taken place in Aloecorp recently, including its move last fall to its new corporate headquarters in Lacey, Washington. In addition, starting the New Year off with a bang, industry veteran Walt Jones joined the company on January 1st as Vice President of Sales and Marketing.

Aloecorp’s processing and manufacturing facilities continue to grow and prosper, with the addition of a new Manufacturing Director, Quality Assurance Manager and Operations Manager. And exciting things are happening in Texas, as you’ll read in the column written by Jerry Pilgrim, Aloecorp’s Vice President of Farm Operations.
I’m particularly excited about Aloecorp’s new Qmatrix™ manufacturing process.

Aloecorp has traditionally been the first to blaze new paths on the Aloe trail, and you can learn about their revolutionary paten-pending, proprietary processing method by reading Ken Jones’ Technology Update column.

Since I was a teenager many, many moons ago in Brooklyn, New York, I’ve been passionate about using natural health products, both in terms of what I ingest, as well as the skin care products that I use. And after a number of years living in Salt Lake City and now Colorado, I’ve been even more of a crusader, working in the natural health field and helping educate people about the healthy choices they can make. As we all know, for years now many raw material suppliers and finished goods manufacturers have been answering the call to action from consumers and retailers demanding novel, science-backed products. Gone are the days of hearsay. Here to stay are top quality products that meet these high expectations that Aloecorp always strives to meet—and exceed..

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> Letter from the President
   -- by John Rhees

SELLING TRUE VALUE

Do any of us really appreciate the “True Value” of the products
we all sell, and do we care enough, that we take the time to help
our customers understand the true value difference between
what we offer for sale versus that which our competition offers?


Businesses are too often myopic-minded, making price the prime consideration for the products they sell or buy, rather than selling or buying what is the best value for the company and its customers. We all too often become lackluster, letting price beat us down rather than selling the true value of product features, benefits, and other important and measurable attributes. Purchasing malpractice, or selling malpractice, is only buying and or selling for the cheapest price. Many businesses today have forgotten that rather than buying they are investing when making important purchasing decisions.

While it does not take much effort to sell cheap or meet a price, it is a far different thing to sell lasting product value, something that translates into business appreciation of lasting value.
When we sell value:

  • We increase market share
  • We increase sales volume
  • We add new customers
  • We reduce customer attrition
  • We sell new applications
  • We avoid price erosion
  • We introduce new products into new market segments
  • We stay focused on financial performance.

Understanding the impact of product quality, focusing on customer awareness of our quality, and reinforcing the benefits of the true value of quality all provide the seller and the buyer with a great opportunity to establish a serious point of ingredient or finished product differentiation. Not everyone can honestly say what we at Aloecorp proudly proclaim: “We may not always be the lowest in price, but we guarantee that we will always be the highest in quality and real value.”

To truly benefit from selling value we must know what our competition is offering, we must know our own product, and we must clearly make a case for the difference. We must state our benefits, and how our products will improve lives, help our customers and solve their problems, and we need to quantify and qualify our benefits with data and science—which we at Aloecorp have consistently done during our 17 years in business.

We must create and sell value, or we will fall prey to mediocrity. If we are honestly in the business to provide the best products that help others we must stay focused on quality, and providing products that are validated, supported by science, and proven to be the best. We all want to buy the best for ourselves and our families, so let’s provide the best product with “Real and meaningful Value.”

At Aloecorp we are constantly focused on the highest quality; during the past 18 months we have been re-engineering our manufacturing operation to provide the highest quality Aloe in the world. We are close to formally introducing Aloe materials processed from our proprietary patent-pending Qmatrix™ processing technology, and without question, the finest Aloe available anywhere in the world—Aloe with exceptional value—and Aloe that makes a difference.

It is up to all of us, our sales team and our customers’ sales teams, to educate and share this value with our customers worldwide. Let’s take advantage of this extraordinary opportunity to sell the best, and be the best at our trade.

John Rhees
President & CEO, Aloecorp USA

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> DESIDERATUM
   -- BY MICK ANDERSON

FAIR TRADE

If Aloecorp is about anything, it is about "Doing What is Best for Mankind." This is far more than a cute slogan. This fact has been proven over and over by deeds and actions - across this globe we


call Earth. It is manifested in the actions and policies under which we operate at Aloecorp. It has been handed down from generation to generation from Chairman Yun Ho Lee to his son and current Chairman Bill Lee. It is seeing that the needy are fed. It is about providing meaningful employment and income to our employees in countries around the world. It is about funding research and sharing the results of that research with the world community. It is about fully participating in the only policy-making body in the Aloe Industry - The International Aloe Science Council (IASC). It is shown in providing educational opportunities for those who would otherwise have none. It is about "Bringing the Best of Nature to Mankind."

There is a relatively new organization located in Germany, the Fairtrade Labelling Organizations International (FLO). I commend them for their zeal to insure that economical success finds its way to those employees who are main contributors to the very success of the various companies - the farm workers. I have read on their website:

"Millions of landless laborers and small farmers don't have what is their right: enough to feed the whole family, send their children to school and that little extra to invest in sustainable development. Clearly, the advantages of international trade are not reaching all people in the world. For small farmers, access to market or price information is difficult and as a result, many small farmers become more and more dependent on middlemen. In bad times, many lose their only property: their land, and thus, their livelihoods. Similarly, many plantation workers do not see the benefits of increasing world trade. They endure low pay, an unsafe working environment and poor living conditions. Too often they lack the freedom to join a union to defend their rights and the opportunity to participate in decisions that affect their lives on the plantation.

FLO International exists to improve the position of the poor and disadvantaged producers in the developing world, by setting Fairtrade standards and by creating a framework that enables trade to take place at conditions respecting their interest. The National Initiatives, members of FLO International, encourage industries and consumers to support fairer trade and to purchase products made using these fair trade guidelines. Such products carry a Fairtrade Label, guaranteeing independent consumers in the developing world that they are getting a better deal."

I spoke with the top management of FLO International, as one concerned about fairness, as part of the management team at Aloecorp and as current President of the Board of Directors of the International Aloe Science Council (IASC). I commended FLO International for their efforts to bring fairness to the farm worker. Currently, Aloe vera is not included in the list of products covered under FLO International. As of this date, the products under consideration are: Coffee, tea, rice, fresh fruit, juices, cocoa, sugar, honey, sports balls, wine and others that are actively being pursued by FLO International.

I am proud of the working environment, at all levels, established by Aloecorp’s late Chairman Yun Ho Lee and continued by Chairman Bill Lee. Our working environments--whether in the offices, laboratories, production floors or the thousands upon thousands of acres of Aloe, ginseng, or other botanicals grown within the worldwide ECONET system developed by Chairman Bill Lee--are open for inspection and scrutiny. We are self-regulating and it works for our employees, many of whom have been with the company since its inception in April 1988.

I applaud the efforts of Fairtrade Labelling Organizations International and, at the same time, challenge my fellow members of the Aloe Industry to look at the working environments in our Industry and make improvements wherever needed to insure a fair compensation for those who, in a very critical way, ensure the very success of our Industry and individual companies.

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> ALOECORP AND INDUSTRY NEWS
-- BY BOB SMITH

New facility in Lyford – The Aloecorp staff in Lyford, TX recently moved into their new 18,400 sq. ft. facility. This new building includes 4,000 sq. ft. of office space and a state-of-the-art laboratory facility where Aloecorp carries out a complete QC analysis on every batch of aloe before it is shipped. It also includes warehouse space and shipping facilities to help us generate additional inventory and improved shipping. An Open House is being planned for this coming September.

NEW EMPLOYEES

Walt Jones has come to Aloecorp as our new Vice President of Sales and Marketing. Walt will be responsible for all of our sales and marketing efforts and will spearhead the development of new products and services. Walt is a seasoned veteran in our industry, having managed the marketing and sales efforts of Nature’s Way Products beginning in 1976. Most recently Walt served as the Vice President of business development for Carrington Laboratories and President of Caraloe, Inc., Carrington’s wholly owned subsidiary.

Other career highlights include Walt’s role as vice president of business development for Healthwell.com, a division of Penton Media, and president of PureGar (now Essentially Pure Ingredients), a raw materials contract packaging provider and subsidiary of Natrol, Inc. He was also vice president of field sales, distribution, and database management at Nutraceutical Corporation, where he later became president of the specialty category.

Walt has served on the Board of Trustees of the American Herbal Products Association and co-founded the Corporate Alliance of Integrative Medicine, now called the Dietary Supplement Education Alliance. He currently serves as vice president of the International Aloe Science Council.

Aloecorp is delighted to have Walt on board, where his skills and leadership abilities will help us continue to set Industry Gold Standards.

J-Anne Jacobsen joined Aloecorp on March 10th as the new Executive Assistant to John Rhees, CEO and President of Aloecorp. J-Anne comes to Aloecorp with a long history in public service, having worked at the University of Washington for 16 years and most recently working as a legal assistant for the Washington State Supreme Court. J-Anne has a BA in English Literature with a Shakespeare minor! We can certainly say that J-Anne brings a touch of class to Aloecorp.

Anna Ramsey is our new Sales Coordinator, coming on board at the beginning of the year. Anna is responsible for processing sales orders, making sure samples are sent to prospective clients and coordinating with the sales managers. She comes to Aloecorp with seventeen years’ experience in the hotel industry, where she served as a Front Desk Manager and most recently as the Assistant General Manager of a major hotel chain. Obviously, this training has made Anna highly aware of the need for great customer service.

Kristina Navarro joins Aloecorp as a Staff Accountant responsible for Accounts Payable and Payroll. Kristina has been working in the accounting field for 10 years, primarily in Accounts Payable in the poultry, hospitality and aviation Industries.

INDUSTRY NEWS

NATURAL PRODUCTS NUTRACON AND EXPO WEST CONFERENCE recently held in Anaheim, CA was the place to be for serious supplements and functional foods players.

With more than 2,500 exhibits and 38,000 attendees – 2,000 more than last year – the show was the biggest in the show’s 25-year history.

Pairing of the two events – with ExpoWest centered around consumer products and Nutracon on ingredients – was more relevant than ever before, since overriding consumer trends point to a hunger for new technology, product development, and healthy ingredients.

This show just continues to improve year after year and we thank all of you who stopped by to say hello. We look forward to seeing you again next year.

NUTRA Ingredients.com/Europe recently reported that new reports suggest that the Aloe vera plant, which has been used to heal skin for more than 2,000 years, can also address many oral health problems, including canker sores, cold sores, herpes simplex viruses, lichen planus and gingivitis.

An article in the January/February issue of General Dentistry suggests that Aloe vera accelerates healing and reduces pain associated with canker sores and blisters on the lips or mouth.

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> ASK KEN & ALOE SCIENCE
-- BY KEN JONES

Update on the Antidiabetic Activity of Aloe vera

In the June 2004 edition of ALOE TODAY we reviewed published studies on the success of Aloe vera supplementation in cases of Type II diabetes. In that article we pointed out that elevated blood

tsugar in diabetes is strongly associated with increased oxidative stress, which in turn is known to be involved in diabetic-related complications including cardiovascular, myocardial and gastrointestinal disease. Elevated blood glucose levels result in the generation of free radicals, causing lipid peroxidation of cells.

Lipid peroxidation is particularly toxic to cellular membranes causing decreased flexibility of the cells. The body is equipped with antioxidant defenses such as superoxide dismutase, glutathione peroxidase and catalase to minimize cellular damage due to free radicals, but in diabetics these defenses are impaired. As a consequence, antioxidant therapy has been a focus for reducing oxidative stress in addition to conventional treatments to control blood glucose levels, like glibenclamide, along with drugs to stimulate insulin production. Many plants contain antioxidants and it has been reported previously that aloe contains seven superoxide dismutases¹ as well as the ability to stimulate production of the body’s own antioxidants². This antioxidant action by Aloe vera has been associated with antidiabetic activity and continues to be the stimulus for additional research on its potential for the treatment of diabetes.

Recently published in the Journal of Pharmacy and Pharmacology³, S. Rajasekaran reports that an ethanolic extract from Aloe vera reduced blood glucose levels of diabetic-induced animals to near normal levels compared with control animals, while untreated diabetic animals in the study had blood glucose levels nearly four times that of normal animals. TBARS, an important measure of lipid peroxidation, were restored to near normal levels in aloe-treated animals, whereas levels in the diabetic control animals were elevated two and a half times. Preliminary analysis of the ethanolic extract revealed the presence of phenols, alkaloids, flavonoids, sterols, triterpenoids, saponins, carotenoids, glycosides and anthraquinones. All of these chemical families have known medicinal or functional applications as secondary metabolites.

Particularly interesting in this study was the report of increased plasma insulin levels of Aloe vera treated animals, indicating that the gel extract stimulates insulin secretion. Specifically, diabetic animals had over three-fold less plasma insulin than normal control animals, and animals treated with Aloe vera had insulin levels restored to within 10% of normal. Reduced glutathione, an important antioxidant responsible for the regeneration of ascorbic acid from its oxidized form and protection from the toxic effects of lipid peroxidation, was increased in both in blood plasma and in the pancreas.

Rajasekaran concludes from these data that “the increased oxidative stress in diabetic rats was successfully reduced by Aloe vera leaf gel extract.” Finally, Rajasekaran suggests that the antioxidant property of Aloe vera may be due to the presence of phenolic compounds, which may explain the antidiabetic activity of aloe.

The medicinal properties of Aloe vera have been known and applied for thousands of years. Its popularity has never diminished; in fact, it is still on the rise. This has attracted the attention of researchers worldwide who have, in almost every case, confirmed and extended the traditional uses of Aloe vera. In this study, Rajasekaran begins to unravel the deeper secrets of aloe--the mechanism of action--another important step in the evolution of aloe science. This understanding does not merely validate the medicinal use of aloe but gives us greater insight into the manufacturing requirements that must be considered in order to retain the biological activity of aloe.

Most of us remember that aloe pioneer Dr. Robert Davis gave us the “orchestra” concept to stress the complexity of aloe’s therapeutic action, and the underlying factor in this concept is that the orchestra must be brought to the concert hall, your body. That’s why Aloecorp has invested so much in the science, manufacturing and stabilization of its products. At Aloecorp we are committed to Bringing the Best of Nature to Mankind.

¹Sabeh, Wright and Norton. Isozymes of Sueroxide Dismutase from Aloe vera. Enzyme Protein. 1996

²Singh, Dhanalakshmi and Rao. Chemomodulatory action of Aloe vera on the profiles of enzymes associated with carcinogen metabolism and antioxidant status regulation in mice. Phytomedicine, 2000.

³Rajasekaran, Sivagnanam and Subramanian. Modulatory effects of Aloe vera leaf gel extract on oxidative stress in rats treated with streptozotocin. Pharmacy and Pharmacology, 2005.

To submit an “Ask Ken” question or to provide comments, send an email to
e-newsletter@aloecorp.com.

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> TECHNOLOGY UPDATE -- BY KEN JONES

Qmatrix™

Aloecorp was the first aloe manufacturing company to have its aloe raw material products certified by the International Aloe Science Council for content and purity.

Aloecorp is also the only aloe manufacturing company to date that produces “true aloe”¹ by a patented², proprietary³ method. Philosophically, Aloecorp has a scientific approach to manufacturing Aloe vera, based on demonstration of biological activity, which is part of a broader philosophical concept to Bring the Best of Nature to Mankind. Aloecorp has never strayed from these principles and soon will introduce its new product line manufactured by the Qmatrix™ manufacturing process.

What is Qmatrix™ Processing?

Qmatrix™ is a quantum leap in quality Aloe vera manufacturing. The Qmatrix™ process is not a single step in the process or a single piece of manufacturing equipment, but is a synergy of scientifically developed processes designed to retain a higher degree of product freshness and biological activity than any other production method in use today. Freshness was a key goal in the development of the Qmatrix™ process, but it had to be combined with the retention of biological activity. Only Aloecorp has the knowledge and resources necessary to conceive of, evaluate and complete such an extensive reengineering of the aloe manufacturing process.

Now on the eve of release, aloe manufactured by the Qmatrix™ process will combine
a patented method of polysaccharide preservation, Process for the preparation of immunomodulatory polysaccharides from aloe (United States Patent 6,436,679), proprietary rapid high throughput processes (RHTP) and a patented Low temperature Short time (LTST) drying process that has been proven to retain heat-sensitive nutritional and functional aloe components. To protect its proprietary methods Aloecorp does not release details of the RHTP and LTST technology. However, the remarkable results of the new Qmatrix™ process can be found in the unparalleled quality of these new Aloecorp Aloe vera raw material products.

In-Process Validation at Every Step

The Qmatrix™ process was developed through extensive research focused on compositional analyses at each step in the manufacturing process. The acetylated aloe polysaccharide, a fundamental compound in Aloe vera bioactivity, was tracked in the product through each stage of processing for percent composition and molecular weight distribution. Aloecorp is well known for its ACTIValoe™ product line that guarantees a minimum of 10% polysaccharides by dry weight and its patented process4 for insuring maximum biological activity.

Final product manufacturers and consumers with a desire for effective products choose Aloecorp as their supplier and depend on the scientific research the company provides to produce and promote their products with confidence. By evaluating processing effects on aloe polysaccharides, Aloecorp has developed an understanding of Aloe vera manufacturing that is unparalleled in the industry. Hundreds of hours of research were required to evaluate and select manufacturing methods to retain heat sensitive compounds and small molecular weight bioactive compounds that have been identified by researchers over that last few years while developing this new manufacturing process.

Aloecorp has exclusive rights to the best technology available on the market today5 and likely for years to come for manufacturing aloe. This means that no other supplier can produce aloe that meets Aloecorp’s new standards. Full characterization of aloe produced by the Qmatrix™ process will be published soon. Preliminary results indicate that Qmatrix™-processed material will have significantly higher nutritional content and tighter specifications for color, taste and smell. Formulators will be pleased to find a broad spectrum of mill sizes and bulk densities that will add ease and flexibility to their current and new product designs, as well as improved solubility and flow characteristics in the powder products.

Most impressively, the powder products manufactured by the Qmatrix process will have superior freshness characteristics when reconstituted than fresh juice processed and shipped directly to customers’ finished product facilities. How is this possible? The Qmatrix™ manufacturing process stabilizes aloe rapidly and gently. In liquid form, even refrigerated aloe slowly oxidizes, losing flavor, nutrition, and bioactivity. Now, with the Qmatrix™ manufacturing process, aloe can be stabilized indefinitely as a dry powder without preservatives and still retain the nutritional and sensory characteristics of fresh juice.

Qmatrix™ is the Harvest of Science and Technology, only from Aloecorp.

¹In this case, the term “true aloe” refers to aloe raw materials that retain all of the components normally present in aloe raw materials, in contrast with aloe extracts such as partially purified polysaccharide products for example.

²Process for the preparation of immunomodulatory polysaccharides from aloe (United States Patent 6,436,679)
³Refers to the exclusive use of other patented technology granted to Aloecorp by the inventor

4 Process for the preparation of immunomodulatory polysaccharides from aloe (United States Patent 6,436,679)

5 Refers to the exclusive use of other patented technology granted to Aloecorp by the inventor

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> MYTH OR FACT -- by BY JEFF BARRIE

DSHEA is Alive and Kicking

In August and September of 2003 the Myth or Fact column was dedicated to DSHEA. During the second half of 2003 the facts were that DSHEA was under major attack and needed your help to remain intact. Members of the industry responded, and the industry has moved in a positive direction. The FDA has since announced its revised strategy for the continued implementation and enforcement of DSHEA.

Let’s take a few minutes to review the Dietary Supplement Health and Education Act (DSHEA), which was passed in 1994.

Under DSHEA, a dietary supplement:

  • is a product (other than tobacco) that is intended to supplement the diet, which contains one or more of the following dietary ingredients: a mineral, a vitamin, an herb or other botanical, an amino acid, a dietary substance to supplement the diet by increasing the total daily intake or a concentrate. Metabolite, constituent, extract or combination of these ingredients.
  • is ingested in pill, capsule, tablet or liquid form.
  • is not represented for use as a conventional food or as the sole item of a meal or diet.
  • is labeled as a “dietary supplement.”

DSHEA also addresses safety concerns and regulates third-party literature regarding dietary supplements. Perhaps most importantly, DSHEA regulates the labeling of dietary supplements. Like food products, DSHEA requires all dietary supplements to bear nutritional labeling and grants the FDA the authority to establish good manufacturing procedures (GMP’s) governing the production of dietary supplements.

A key to enforcing DSHEA is implementing the provision for new dietary supplements (NDI’s). All dietary supplements that have been lawfully marketed before October 15, 1994 do not need an NDI. Since Aloe vera has been around since the “dawn of time” and I personally marketed Aloe vera in1977, any concerns regarding NDI’s and Aloe vera can be put to rest. NDI’s that were introduced after October15, 1994 are required by law to submit a pre-market safety notification. Work continues by the FDA to determine the specifics needed for submission of an NDI. The FDA will also listen to the public before any new moves are made.

The key aspect of DSHEA is its power to regulate the labeling of dietary supplements and any third party literature. The saying “one bad apple can spoil the whole bunch” can certainly apply to the Natural Products Industry. Our industry supports good health and supplies high quality products that consumers can take with confidence. However, one “bad apple” can enter the marketplace and create a cloud over the entire industry. It is no wonder that some members of Congress feel the need to step forward in an effort to protect consumers from not only producing products that may cause harm, but also from products that will cause harm to their pocketbooks.

Another old saying, “if it sounds too good to be true, it probably is,” applies to the
Natural Products Industry as well. If it sounds too good to be true, ask questions. Ask for some substantiation, a clinical or lab report, or perhaps some anecdotal support of the claims that are being made. After all, remember what happened with Coral Calcium a few years ago?

For years the Aloe vera industry was supported by anecdotal evidence of its benefits. We have heard great stories about the legend and history of Aloe. Today we not only have impactful laboratory test results, but we also have significant human clinical trials that support so many of the claims made by any number of companies many years ago. The Aloe Industry is among the many that understandably fall under the watchful eye of the FDA that continues to produce sound science, and scientific backing for its structure function claims.

The FDA is also proving its commitment to DSHEA by asking the industry for comments regarding the evidence needed by manufacturers for a structure function claim. Consumers will have more confidence in new and existing products knowing that the FDA has a standard to substantiate the claims that are being made.

Companies that are considering producing new finished goods Aloe vera products, or those that currently produce an Aloe vera nutraceutical and are thinking: “What claims can we make?” can take advantage of the expertise Aloecorp offers. Aloecorp provides sophisticated scientific support to back your structure function claims.

Aloecorp is not only a supplier of Aloe vera. It is also a partner to all of the finished goods manufacturers and companies it supplies with its bioactive Aloe vera ingredients guaranteed 10% polysaccharides by weight. Aloecorp is able to work with its customers to ensure the success of new or improved cosmeceuticals, nutraceuticals, and personal care and household products. The facts are that the Natural Products Industry is growing in size and sophistication. Consequently, it is no myth that Aloecorp is the leader in the Aloe vera industry.

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> SALES CORNER
-- BY WALT JONES


Industry Perspective

It is exciting to be associated with this great company Aloecorp! I have seen many changes and cycles created and influenced by our natural products industry and our mission to supply good health to the inhabitants of this planet. Currently, we are finally seeing the end of very hard economic times for all of us in the Natural Foods Industry.

I just returned from the Natural Products ExpoWest/Supply Expo held in Anaheim, California. It was great not only to see an increase in attendance by both exhibitors and attendees, but people doing business with each other. Stores were needing to replenish their shelves, to add new products, and were once again yearning for the increase of knowledge and new concepts. We have sustained so much negative press and energy, that it was refreshing to finally see this turnaround within our industry.

The Aloe Industry is also part of this rebound as well. My role as Vice President of the International Aloe Science Council (IASC) enables me to help strengthen this segment. I share this organization with some of the greatest people in the Aloe Industry, including our own Mick Anderson who serves as President of the IASC, along with Bill Lee, Ken Jones and Qi Jia, who all serve on the board. The IASC is seeing a resurgence of science validity coming to our industry in a big way. We continually look at new ways to utilize this wonderful and miraculous herb, Aloe. Committees were formed to facilitate the Council’s abilities to promote and sponsor new clinical trials to help push the applications and services of Aloe.

Not that Aloe needs much help! In the year 2003, there were 1,557 new product introductions containing Aloe; the next closest herb had only 350 new products. I’ve no doubt we will continue to see these numbers grow—in leaps and bounds—and Aloecorp plans to remain on the forefront of providing our finished goods manufacturers, and ultimately consumers, with the best biologically active Aloe vera ingredients.

Aloecorp has a tremendous influence in this industry, and for good reason—we manufacture the finest product possible. The secret to our success is the need to never be satisfied with how we treat this wonderful botanical. We continue to improve all of our processes and look for new ways to improve and measure our end products to insure the highest quality in the industry. Stay tuned to see what new innovations Aloecorp brings to this industry in 2005! I am excited that I have been allowed to be part of it!!!

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> UPDATE FROM TEXAS
-- BY JERRY PILGRIM


Update from Lyford, Texas

On March 1st, the Aloecorp farming crew broke ground on an ambitious 1.2 million dollar renovation of its Historic Hilltop Gardens compound at the Lyford, Texas farm and Aloe processing facility. The design incorporates a visitor’s center and a unique 12-acre garden. Landscaping will begin at a newly designed entrance to the farm and it will cover all of the grounds surrounding the farmhouse, including the recently constructed production facility.

Hilltop Gardens is rather distinct, and has been designated an historical site by the state of Texas, and is believed to have housed the first ever Aloe plantation in the world. Aloecorp initially purchased Hilltop Gardens in 1988 from Mrs. Lee Ewald, whose original house has been refurbished and remains close to its original state. In addition, a corporate retreat and conference center is located on the Lyford facility, which totals 518 acres.

This beautiful project focuses on three distinct themes, each a unique blueprint of trees and plants, walkways, and fountains. One area is dedicated to a wide array of Aloe plant species, blending into another space featuring a rose garden that will add color and welcoming fragrances. Two hundred and fifty towering palm trees will create an impressive sight upon the hill and will serve as a reminder of what Hilltop Gardens may have looked like from a distance many years ago.

The plan’s completion is scheduled to coincide with the grand opening of Aloecorp’s new Lyford production facility in September 2005. Visitors from all over the world, as well as local dignitaries, will be in attendance. Furthermore, the timing of the grand opening has been carefully planned to allow those attending the International Aloe Science Council Conference, being held at South Padre Island, to attend while they are in the area.

Rick Labunski of Labunski Associates, the firm that designed the new state-of-the-art processing facility, is the architectural designer. Commercial Building Systems, the building contractor for the production project, will build the front entrance and the pathways winding through the gardens. Aloecorp employees will be responsible for the majority of the planting, as well as other portions of the project. We are excited to see this tropical paradise of healing plants become a reality in our Texan grand style!

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> ALOE PRODUCT OF THE
QUARTER
-- BY JUDY HANNAN


It’s great to study the science and research that support aloe because it gives me confidence that the large amounts of aloe juice we sell to our customers and distributors nationwide have the potential for breakthrough results.

I am the president and co-owner of Entrenet Nutritionals and have distributed aloe juice for approximately 10 years. We own and operate a network marketing company that has thousands of distributors throughout the United States. Our keystone product, in addition to various topical, shampoo and bathing cleanser products, is aloe juice in 5 flavors made from Aloecorp’s ACTIValoe™ raw material.

A majority of our business is within the Amish communities surrounding Pennsylvania, Ohio, Kentucky and Indiana. These folks use Aloe vera products for treating many ailments and injuries in the home. They also use Aloe vera products in a rather unique place: in the barn! Occasionally calves acquire a condition called scours, which can be fatal. Usually within 24 hours of aloe juice ingestion several times daily for a couple of days the baby calves are up and nursing and acting as a normal active calf should act. Another common malady in cows is mastitis, which usually requires antibiotic treatment, thus causing the farmer to have to discard the milk for a week or two. When faced with this malady, farmers simply drench the cows 3 times daily with any of the flavored aloe juices. In most cases, the mastitis disappears quickly without dumping off weeks of milk production.

We have a family in Northern Pennsylvania whose 16 year-old son had quite a severe case of crohns disease. This young man spent most of his time in the bathroom and would bleed rectally. He lost about 40 pounds and could no longer participate in sports or other normal daily activities. His mother is a distributor of ours and began to give him our strawberry kiwi flavored aloe juice several times daily. Within days he saw improvement in every area of his health, including less frequent trips to the bathroom, and then the bleeding eventually ceased. His appetite returned, his elimination became normal, his muscles became strong and he was actually stronger and healthier than before becoming ill.

David is a superintendent for a large public school system in the Pittsburgh area and one day leaned his leg onto the hot muffler of a lawn mower, which caused quite a severe burn. He was given medication at the hospital, but after a couple of weeks was not recovering and was bed-ridden at home. His son Jeff is a customer of Entrenet and asked his dad if he would be willing to give the juice a try, which he did by the cups full. David needed to get back to work since they were preparing the grounds for the upcoming football season. Within days there appeared in the hollow of the burn a white covering. David thought this might be an infection, so he went back to the hospital but this time the doctors gave him good news. They informed him that the white covering was simply new tissue growing over the burn and he was recovering quite well. The very next week David was back to work and feeling good. Another side health benefit occurred as a result of drinking the aloe: a skin cancer that had been on his face for some years disappeared. The only thing David was doing differently was drinking Entrenet’s aloe juice.

A 75 year-old gentleman who had acid reflux disease for many years began drinking our aloe juice and the symptoms disappeared and the doctors said afterwards that his throat tissue had been restored to normal.

I really could share testimonial after testimonial about people who have soaked their diseased limbs in our natural aloe and have been saved from amputation, and young moms who have used our aloe crème to heal stubborn diaper rashes which, as we have seen recently, can be deadly.

Aloe is a healer. It is mentioned 5 times in the bible and the Latin rendering for aloe means “true healing.” It’s no secret that God gave us the aloe plant for healing and health and we at Entrenet Nutritionals consider it a privilege to sell the best there is – Aloecorp’s ACTIValoe™.

Please note that Entrenet Nutritionals wrote the above article. The testimonials in this article are from customers of Entrenet Nutritionals aloe products, and do not necessarily reflect the opinions of Aloecorp. Aloecorp does not make any disease claims for any of its products nor are any of its products intended to diagnose, treat, cure or prevent any disease.

Please note that the above article was written by Entrenet Nutritionals. The testimonials in this article are from customers of Entrenet Nutritionals aloe products, and do not necessarily reflect the opinions of Aloecorp. Aloecorp does not make any disease claims for any of its products nor are any of its products intended to diagnose, treat, cure or prevent any disease.

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> ALOE STAR OF THE QUARTER -- BY SUSAN WESTFALL


Almost any company you know has someone on its team who is considered by many to be the “backbone” of the company. That one special person who is “irreplaceable.” Conversely, we’ve all heard it said that anyone is replaceable. At Aloecorp, a lot of our employees would agree with the first statement, citing an extraordinary person on their team whom they say is, indeed, truly irreplaceable. That employee is Aloecorp’s first Star of the Quarter, the one and only Norma Garza, Office Manager, Jill of All Trades and Master of Everything. Okay, so maybe the last two titles don’t officially belong to her, but they pretty much sum up what Norma represents.

Those Aloecorp customers reading this have likely had numerous interactions with Norma over the years. In fact, as I sit here writing this article on March 17, it is Norma’s 15-year anniversary with the company. She began her career in 1990, two years after the company was formed, first working in accounts receivables, and then becoming Sales Coordinator. In this important role, Norma provided invaluable support to the sales team, coordinating raw material production needs and shipping, and acting as liaison between Aloecorp and its customers.

Since Aloecorp’s headquarter relocation to Lacey, Washington last September, Norma has worked as Office Manager, with a new Sales Coordinator and Executive Assistant (who provides support to the company’s top executives) reporting to her. After all these years, Norma still keeps her busy hands involved in customer care, accounting, production and shipping, while at the same time ensuring the smooth and efficient running of the Lacey office and, quite frankly, the entire Aloecorp operation.

However, the above words, or brief job descriptions, can barely attest to ALL that Norma contributes to the company on a daily basis. I polled a number of Aloecorp team members who have worked most closely with Norma, and they echoed the sentiment that Norma deserved to be voted ALOE TODAY’s first Star of the Quarter. The next paragraph and key points pretty much sum up the admiration Norma has garnered from her Aloecorp colleagues.

“Norma is extremely dedicated, and cares deeply about Aloecorp and its customers. She has an enormous workload, and has an amazing capacity to balance her work and family life. She keeps the “nuts and bolts” of the company going on a day-to-day basis. Norma takes great care of Aloecorp customers—always staying on top of their needs. She constantly juggles shipments to meet the needs of customers. No matter what the request, Norma does all that she can to get the job done.” In addition, her sales counterparts commend her for making improvements in the order tracking and reporting program—making their jobs easier, and providing an ever-deeper level of service to the customer.

Though the above synopsizes what her Aloecorp colleagues—and no doubt what many of her customers have to say—one Aloecorp employee in particular wanted to put in his two cents’ worth, and with good reason. Mick Anderson, Aloecorp’s Vice President of European Operations, has been like a family member to Norma. Along with employees like Jerry Pilgrim, Rosa Ontiveros and Lulu Munoz in the company’s Lyford, Texas facility, Mick has had a very long working relationship with Norma.

According to Mick, “Norma is great! She and I have worked closely together for 14 years. She is caring and dedicated. She bleeds Aloecorp “green and blue” [the colors in the company logo]. Norma is loyal to Aloecorp, and to company founder and Chairman of the Board Bill Lee, to a fault! She is a great mother to her sons. Any company would love to have a ‘Norma,’ and Aloecorp would stand to benefit with even a few more people of Norma’s caliber. With five more Norma’s, we could all shorten our workweek by 30 hours, and the job would be done faster and better. I am honored, truly, to be able to call Norma my friend.”

Norma is thankful for her rich experience working at Aloecorp. She said she has learned a lot over the years, and wants to expand her horizons further by working even more closely with her colleagues in the Texas and Mexico facilities, and learning more about the processing of aloe from the field…to the finished product.

Most importantly, Norma views coming to work like spending time with her family. She values everyone she works with, and looks forward to each day. Norma enjoys her new life in Washington State, and is excited about sharing many more years with her roots growing ever deeper in the wonderful world of aloe!

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> COMMENTS FROM A CUSTOMER
-- BY DOUG BROWN

ALOECORP AND THE DISTRIBUTION CHANNEL:

WHERE WE FIT IN

I was honored and pleased when Aloecorp’s publicist asked me to write an article for the latest ALOE TODAY newsletter. At the same time, I was unsure of what I had to say that would be of value to Aloecorp, its distributors and its customer base at large.

(I can just hear Jeff Barrie, Northeast Regional Sales Manager saying, “Since when has Doug Brown been at a loss for things to say?”). Well, I’m going to take a few minutes and talk about what we here at Brown Chemical know and do—and hopefully do well after 74 years in business—and our function as a raw material distributor. I will touch on the sort of benefits that distributors can bring to the table, and can bring to an already excellent company such as Aloecorp and its product line.

But before I get down to the particulars of how distribution brings value to this system, I want to thank Aloecorp, on behalf of our firm and the other Aloecorp distributors, to have the opportunity to work with a truly world-class organization selling superior products that bring value to so many applications. Aloecorp is an innovative company, well positioned by its leader, Bill Lee, to do good things for many companies and, ultimately, many people.

What is it, therefore, that we distribution companies can bring to users, both current and future, of Aloe vera? In my opinion, it comes down to one very simple concept: distributors are, by definition, in the middle between the product manufacturers and end-users, which gives us the unique opportunity to experience, simultaneously, very broad and, ultimately, very specific innovative thinking on product applications. Many companies that distributors work with are experts in their respective fields and often get very bullet-focused in that particular field. We distributors cross many technology disciplines and can bring, within the restraints of confidential business information agreements, the benefit of excellent thinking in other markets or fields of expertise.

Another basic component of the distribution industry is that many, if not all of us, sell more than one product line, many of which are complimentary. We all make attempts to get as broad and deep with various product lines as reasonably possible so that we can bring multiple benefits to our customers. In distribution, we call that marketbasketing.
Think of it like going to your local supermarket. You, the shopper, walk the isles and place a variety of products into your cart. The shopper could, as an alternative, go to the farm stand to buy vegetables, and perhaps fruits, to the butcher shop to buy meat products and to the hardware store to buy paper products or light bulbs.

The supermarket offers a one-stop shop opportunity. So do distributors. Customers are afforded the ability to buy complementary products, as well as those that cross dissimilar chemistries, therefore bringing multiple efficiencies to the procurement process. This, in turn, has an added benefit to the distributors’ suppliers, since having a broad product line tends to anchor customers to the distributors in their buying patterns and ultimately can lead to increased market share for the supplier’s product. Aloe vera gel can go into many end-use markets, some of which are yet to be discovered, and your distributor may very well be your best source of market information for innovative application design or planning.

A third component that a distributor brings to the table, both for customers and suppliers, is the relationship management component. Once again, because we cross so many different markets and are exposed to so many different technology applications, we have the ability to bring dissimilar and unknowing potential partners together. We have deep and meaningful contacts with firms that could be working on the “next big thing,” but are short of one or two raw material components or technologies, particularly in the consumer’s mind, that will really make the product pop. Aloe vera is an excellent example of a raw material that has been known for a long time, but is experiencing new life as it finds its way into new or rebranded products in the food, personal care, cosmetic and nutraceutical markets, among others. To Aloecorp and its customers: tell us where you want your product to go in the future and we can help you find new vehicles to take it there.

All of the previous discourse leads to the last concept, which is innovation. We distributors tend to be agile, flexible and adaptive, once again because we are “in the middle” and therefore, often the target of extreme pressures from the marketplace on cost reductions, increased efficiencies, or both. Most of us have multi-disciplinary skill sets, such as operations (blending and packaging), logistics, technical ability, marketing, finance, as well as many others. In today’s complex, demanding and cost-aversive marketplace, innovation—the process of bringing completely new thinking into old or older product lines—very often is the final differentiator between product success or product obsolescence. Distributors continually have to upgrade their skill sets as products and end-markets we sell fall out of favor, migrate away or sunset. Change and innovation are key skills that we use every day and we welcome the chance to help Aloecorp and its customers apply these skills to their own companies.

In closing, distributors can be looked at as merely a channel to multiple markets, a source of raw materials or an adder of extraneous cost in the supply chain. I prefer to think of us as the most cost effective consultants you will ever hire, a ready source of cross-market and cross-discipline knowledge, and a facilitator of innovative thinking. We simultaneously have the daunting and enviable job of working for both the vendor and the customer, and we welcome that position. We live in the middle, we live on the edge and we challenge you to allow us, along with our capable and professional friends at Aloecorp, to apply innovation and creative thinking with you.

About the author: Doug Brown is President and Chief Operating Officer of Brown Chemical Company, Inc., a distributor of raw material ingredients to the cosmeceutical, nutraceutical and pharmaceutical industries. Doug represents a third generation management of the Oakland, New Jersey-based Company, founded in 1936 by his grandfather, the late William Brown. For further information, feel free to contact Doug at 201-337-0900, or visit www.brownchemical.com.

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ACTIValoe™ is a registered trademark of Aloecorp, Inc.

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