oily news spring 2008

8/9/2019 Oily News Spring 2008

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SPRING EDITION 2008

the real tale ofaustralian sandalwood

10 ways to strengthen your business

are you part ofthe $12 billion trend?


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spring SPRING EDITION 2008S O, we havebeen busy with many improvement projects.Several of which are now ready to share.

Firstly, we are excited by our new partnership with the business-coaching specialists at Aromatherapy Home Business (AHB).Our collaboration has resulted in content

that provides good sound business advice,plus the industry-specific elements that areessential to running a profitable business.In the space of a few short months, thetraining will give you all the tools you’ll needto enable you to introduce new strategiesinto your business.

Secondly, our cover story on Mount

Romance’s Certified Organic AustralianSandalwood provides an insight into thisethically motivated company. Come with usbehind the scenes as we explore this trulyfascinating Australian tale of success.

We invite you to find a comfortable chair whilst you sit back and enjoy the read.

Eliza McGivern, Editor

THIS ISSUE


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Spring cover:

Lemon

Citrus limonum

Lemon Essential Oil

is extracted by cold

pressing. It offers a

fresh, stimulating

aroma and its

vibrancy enhances

uplifting vaporiser

blends. Lemon oil

acts as an astringent,

so it can be useful

in skincare for

teenagers or oily

skin types and for

toning ageing skin.

Visit www.seoc.

com.au for more

information.

04 Harvest:Certified Organic Australian SandalwoodHow a company put the heart back into the Western Australian Sandalwood industry.

12 SME (Small to Medium Enterprises) Forum: Your Recipe for Success

10 ways to strengthen your business A look at how you can improve your business.

18 Lifestyle:Consumerism with a Conscienceake the LOHAS test to see if you live a life of health and sustainability.

20 Events: Australian & International Events Guide Must-attend expos for SEOC customers.

22 Product Specification:Certified Organic Australian Sandalwood

Specification for manufacturers.

23 Formulation:Organic Sandalwood BalmFeaturing Certified Organic AustralianSandalwood.


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D ’ S was a primary export earner for Western Australia. Wood was sold throughout Asia for decadesresulting in over 300,000 tonnes being exported by the early 20thCentury. In 1919 the first fully operational manufacturing plant

was established to produce oil for a variety of industries includingEuropean perfume, luxury soap and the pharmaceutical industry.

Initially only capable of producing crude oil with a low santalolcontent, it was believed that Australian Sandalwood was second-rate in comparison to Indian Sandalwood (Santalum album).

But in the 1920’s, improvements in production and scientificcontrol meant that higher quality oil, with higher santalol levels,became available. Tis advancement led to the inclusion of Australian

oil in pharmacopoeias of Britain, France, Belgium and Japan.Troughout this era, medicinal Australian Sandalwood was used

internally and externally and was recognised for being just aseffective as the imported Indian oil. In time though, theintroduction of antibiotics into the medical world, meant thatmedicinal Sandalwood became obsolete and after a gradualdecrease in demand, production ceased in the mid-1960’s.

It wasn’t until the end of the ‘90’s that Sandalwood was brought

back into the economic mix due to its popularity within the >

Te heart of the landCertified Organic Australian Sandalwood Oil

Over 150 years ago Sandalwood (Santalum spicatum)

was the heart of Western Australia’s export market. Today,again, Sandalwood is pumping life into the outbackeconomy and proving sustainability is also profitable.

HARVEST

Opposite: Elder, Dusty Stevens (right) and Kenny Farmer (left) of the Kutkabubba

community are harvesters from the semi-desert Shire of Wiluna.


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HARVEST

aromatherapy and perfume industries. In 1997, Mt Romance Australia Pty Ltd took great steps to re-introduce the oil to the world market. Tey negotiated a long term supply contract withthe Western Australian Government and exported Sandalwood tomost continents across the globe.

oday, we are witnessing the next phase in the lifecycle of this

native Australian oil. Western Australian global exporter, MtRomance Australia Pty Ltd (of which Australian Sandalwood OilCo Pty Ltd is a subsidiary), was granted Organic Certification in

August 2006. Te company achieved this certification inaccordance with the Australian Organic Standard 2006, throughthe Australian Certified Organic organisation (ACO). ACO is anaccredited organic certifier with the United States Department of

Agriculture (USDA) therefore Mt Romance has also been certified

in accordance with the National Organic Programme (NOP) in June 2008.

Before any oil can be produced, there is a comprehensiveinfrastructure in place that is followed by all associated industrypartners. Te environment is protected through conservation andregeneration programs overseen by the Forest ProductsCommission (FPC). Local Indigenous communities are supported

with commercial partnerships through the Songman Circle of

Wisdom. And finally the oil production is controlled to meet highquality specification and now also to meet organic standards.

Harvesting Te Forest Products Commission (FPC) is responsible for the >

Opposite clockwise from top left: Young Sandalwood trees are hemi-parasites,

needing a host tree to feed off whilst establishing their own root system.

Sandalwood flowers whilst striking have a putrid odour, similar to that of offal.Their role is simply to be germinated in order to produce seeds. Dr Richard Walley

OAM was the founding chairman of the Songman Circle of Wisdom and integral

in the development of the Indigenous Certification standards. Seeds fall to the

ground and so the cycle continues.


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Sandalwood harvest with their main objective being to conservethe Sandalwood species in Western Australia.

Any harvesting that occurs on Crown Land must be done so bya licensed harvester. Tis ensures full traceability of every woodchip produced from the heartwood of this native plant.

Te average tree can take up to 25 years to mature, certain

regions may vary depending on climate and conditions, someshorter, some longer.

Te natural regeneration of Sandalwood has been affected by thedeclining population of the woylie, a small marsupial that is thenatural distributor of the seeds. With increasing numbers of feralanimals the woylie has now become an endangered species andconsequently Sandalwood forests are being replanted andregenerated by the harvesters.

When the tree is harvested, the whole tree is removed, roots andall. After harvesting a mature plant, two small trenches are dug inthe ground and six seeds are planted in each trench next to a hosttree close to where the original tree was removed.

Community Alliance Tere are many Indigenous communities involved in theharvesting of Sandalwood. Tey are all licensed and they sell their

wood to the FPC. Mt Romance then purchases the wood from theFPC and extracts the oil as per an Indigenous Certification whichhas been issued under the Songman Circle of Wisdom IndigenousPlant Certification Protocol.

Te oil extracted from the wood chips is sold at a premium and100% of that premium is returned to the community to facilitatebuying new harvesting machinery or to assist the community in >

HARVEST

Opposite clockwise from top left: Local harvester Albert Phillips prepares a

truckload of wood to be de-barked. Tumblers remove the leaves and bark from the

wood and branches. De-barked wood ready to be chipped. Wood chips are made

from the heartwood and are steam distilled to produce the valuable Sandalwood oil.


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The precious Sandalwood oil is extracted from the dark centred

heartwood of the trunks and branches.


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other ways. Tis agreement between the Indigenous community,the FPC and Mt Romance ensures that true and fair trade isadhered to and that no one entity profits more than another.

Oil Production Australian Sandalwood oil is extracted through the steam

distillation method. Once a sandalwood tree is harvested, the barkand leaves are removed and the remaining parts of the tree aredivided into roots, butts and logs. When this has been completedthe wood is chipped, in order to create larger surface areas toenable the extraction process.

Strict quality control is employed to ensure the chipped wood isneither too big nor too small as this can affect the final yield andquality of the oil. Te wood is then placed in a distiller vessel and

steam is passed through to extract the oil. Te volatile sandalwoodoil evaporates in the steam and when the vapour is cooled in acondenser the result is a condensate that has both oil and waterphases. Sandalwood oil is lighter than water therefore it floatsabove the water component of the condensate enabling it to beeasily collected. Te last step is the removal of trace amounts of

water from the oil and then finally filtration.Tese days the demand for Australian Sandalwood is becoming

stronger as the availability of Indian Sandalwood slowly dwindles.Research is proving that the Australian oil has highly beneficial

antimicrobial properties and anti-inflammatory effects due to itsunique chemical components, E E farnesol and epi--bisabolol.Tis plus the new organic certification, make it even moreappealing for the aromatherapy, natural and organic cosmeticindustries to embrace the benefits of this amazing oil.

HARVEST

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By Lucille Wilson.

Our thanks and appreciation goes to Mike Ray and Louise Burgler from

Mt Romance Australia, for their valuable input in compiling this article.

Photographs reprinted with kind permissions of Mt Romance Australia Pty Ltd.


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SME FORUM

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For the past few months, we have been working behind the

scenes on a joint-venture training program developing Business Coaching that has been specifically tailored for our industry. We believe the program is the first of its type in

Australia and we are excited that it’s now ready to offer toSydney Essential Oil Co. customers.

Our training partner, Will Cotterill from Aromatherapy Home Business (AHB), will be conducting the coaching inan on-line and email format. Te content is comprehensive and we believe it will be useful regardless of where you are starting from. If your business is still at idea or concept stage, the coaching will guide you through all facets of establishing and operating a profitable business. For those

who are already established, you’ll learn how you canimprove on what you are already doing, extend your

product range to grow your profits, or at the very least youcan give your business a thorough check-up.

And now, we will hand you over to Will Cotterill, as he has contributed the following “10 ways to strengthen your

business” article for this issue of Oily.

Your recipe for success


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Luscious body

scrubs improve the

texture of your skin

and give it a glowing

appearance. Try

Sandalwood oil inyour formulation for

an exotic aroma and

re-hydrating effect.

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10 SME FORUM

W , decline in

consumer spending, tighter credit conditions and generaleconomic doom and gloom, it is all too easy to start feeling a bitnervous about what is around the corner for your business.

Well, it is not the first time there has been a down turn in theeconomy and it won’t be the last. Business still goes on, and in facttough times can be used as a perfect opportunity to take a closelook at your business and how you can improve and strengthen it.

I believe that challenges can bring out the best in you, and I also

believe that when there is change, there is opportunity.Here are my top ten tips for using the tough times to strengthen

your business.

1. It all starts with attitude First things first, you need to believe in the statement I just madeabove. You need to believe that challenges will bring out the bestin you and that when there is change, there is opportunity. If you

don’t, then you are going to find it hard to rise above fears andlimiting beliefs. If you do, then you will already be one step aheadof 95% of the business community, and your business will notonly survive the tough times, it will thrive.

2. Time to get organised A good attitude is the first step, but it needs to be backed up withaction, and action is most beneficial when it is organised action.

You’ll need some dedicated quiet time to take stock of where yourbusiness is at now, where you want your business to be headingand finally what action you need to take to get it there. Tink of

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ways to strengthen


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your action plan as your road map through rough terrain; keep it

close to you at all times, keep checking it to make sure you arestaying on track and don’t let any bright shiny objects distract you.

3. Hone your cash flow Now’s the time to really keep a close eye on your cash flow and tomaximise not only the amount of money coming in, but also thespeed at which it comes in. Also, look at how you can slow downand minimise money going out. Increase transactions that bring

money into your business quickly and keep your stock turningover. If you have slow moving stock, now is the time to package itup for a sale. Finally, take extra care compiling your cash flowforecasts so that you can prepare well for the leaner months.

4. Work well with creditors and debtors When times are tough your customers will want to stretch outtheir payments, while your suppliers will want to be paid early.

Te best approach to take in both cases is an open line ofcommunication. Stick to trading terms and negotiate solutions ifthings become tight. rying to arrange extended credit can help tofree up money which you can invest in marketing your products.

5. Give your working assets a health check now Make sure that your equipment is serviced and in good workingcondition so that you don’t get any expensive surprises down the

track. As long as your equipment is working hang on to it, even ifit is fully depreciated, and only replace things when it is absolutelynecessary. >

your business


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SME FORUM

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6. Look closely at your expenses – it’s time to streamline It is very easy for businesses to pick up a lot of small, unnecessaryexpenses that stay under the radar during stronger economictimes. ake the time to have a good look at where your money isbeing spent, and cut away the debris. Now more than ever, youshould be shopping around to reduce general variable costs, as wellas considering ways of reducing the unavoidable fixed costs.

7. Maximise your marketing investments

During tough times it is important to invest marketing money wisely. o do this pick three or four marketing strategies that youknow yield the best return on investment and focus on them. Lowcost marketing tactics designed to keep existing customers buyingyour product are a good option. Also offer new customersexceptional value to start buying your products. Be generous to

win them over and then continue to offer great service to keepthem. It is not the time to be trialling untested strategies right now,

so stick to what you know works for you. Remember to make yourmarketing messages suitable for the current economic conditions.

8. Working together – who can you form a strategicalliance with?

wo of the most important questions you can ask are: Who elsehas my customers? Where would I find existing lists of potentialcustomers? Finding partners with whom you can form a strategic

alliance with is one of the most cost effective and powerful ways togrow your business. You can offer them a percentage of sales toendorse your product or, you can offer them promotional products

Imagine...If you kick off your coaching in August,


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to use as value ads and gifts. Create win-win situations that are

going to increase profits for both businesses.

9. Review and make necessary changes to your financingsooner rather than later Look at whether your business needs to restructure long termdebts to help cash flow. Lenders are generally happy to work withyou providing you are consistent with your repayments. Make sureyou have a short term finance plan in place too, just in case you

need a little help during a quiet period. It is better to get thesefacilities in place as a precaution, rather than waiting until you arein desperate need of them.

10. Analyse and focus on your core business When you analyse your product costs and compare them to therevenue they generate, you can begin to rationalise what your corebusiness is. You need to make tough decisions to let go of products

that are not giving you a good enough return so that you can focusyour efforts on the ones that are.

Be positive, be brave and relish the challenges ahead. Look athow you can implement the information above now, and start totransform your business into a leaner, fitter and healthier modelcapable of surviving any economic down turn.

By Will Cotterill – Aromatherapy Home Business

you could have your new product in the market before Christmas…

To find our more about the AHB Business Coaching program, please visit our

website for details www.seoc.com.au.


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LIFESTYLE

Take a moment to scan this list and

mentally tick the items that have a current

connection to your personal or business

lifestyle.

Alternative therapies (Aromatherapy,

Naturopathy, etc.)

Personal development books or programs

Organic or natural personal care

products

Spa visitations

Organic furnishings or clothing

Natural household products (paper

goods and cleaning products)

Organic or locally grown food or drinks

Fair trade products

Vitamin & mineral supplements Socially responsible investing

Renewable energy

Carbon offsets

Hybrid and electric cars

Green and sustainable building products

Water-wise habits

Ethical business relationships

If you have nodded yes to any of these,

then you are most certainly part of themarket segment known as LOHAS.

LOHAS, an acronym for Lifestyles of

Health and Sustainability, relates not only

to attitudes, but also to buying habits and

social behaviour of consumers and

businesses. Current research has reported

the LOHAS consumer market in Australia is

estimated at $12 billion and growing*.

LOHAS consumers want to integratehealthier and more sustainable products

into all aspects of their lives ranging from

their nutritional, physical and mental well-

being, to their finances, homes, holidays

and work lives. Choosing a LOHAS lifestyle

is not restricted by age or socio-economic

circumstance. And being a LOHAS consumer

doesn’t mean you stop shopping. Typically,

most LOHAS consumers introduce

meaningful and affordable products into

their lifestyles on an as-needed basis.

LOHAS companies apply what is

described as ‘responsible capitalism’ by

providing goods and services using

environmentally friendly and economically

sustainable business practices. Authenticity

is their core value. Consideration for

people, planet and profits integrate withethics of sustainability, growth and

positive improvements.

At SEOC, we are committed to regularly

reviewing and updating our LOHAS

business practices. For example, you may

be reading this article on-line rather than

a print copy. But if not, you’ll notice that it

has been printed by a printer who uses

waterless presses and vegetable inks onenvironmentally responsible paper from

sustainable sources. On the product front,

Organics continue to be a major focus for

us. In 2003, organics represented 8% of

our key product groups. This grew to 28%

in 2006, and we are actively developing

new products that will come to market this

year, that will help us reach our target of

40% in 2008. So stay tuned… * Report published August 2007 by Mobium Group,

Australia.


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Consumerism

with a conscience.Is it possible?On a daily basis, millions of Australiansactively strive for healthier and moresustainable lives. When choosing products,

thought is given not only to their personal needs, but also to the impact onthe planet and environment.


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EVENTS

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VISIT SEOC AT THE FOLLOWING INDUSTRY EVENTS

August 21-22, 2008 Sydney, Australia

Natural Therapies & Natural Health Expo

AJC Convention Centre, Royal Randwick (new venue)

Australia’s largest annual trade event for the natural healthcare industry is a

must-attend event for complementary healthcare practitioners, therapists,

medical practitioners, naturopaths, pharmacists and retailers of natural

health products.

Source the best products and services for your clients at this two-day

product exhibition, combined with an informative and educational three

day workshop and seminar program. CPD points from ATMS, ANTA, NHAA

and IFA.

Register to attend by visiting www.naturaltherapyexpo.com.au, and enter

promotional code NTSSEO when prompted to receive a $10 discount on any

of the seminar workshops or packages.

The Natural Therapies & Natural Health Expo is a trade event for natural

health professionals only and is not open to the general public.

Visit SEOC at Stand 16

www.naturaltherapyexpo.com.au

November 12-14, 2008, Hong Kong

Cosmoprof Asia

Hong Kong Convention & Exhibition Centre

Recognised as the premier beauty event in Asia for suppliers and buyers

for global networking in the beauty and health industry. Cosmoprof is a

trade-only event.

To enjoy FREE & quick admission, please pre-register on-line by

30 September.Visit SEOC in Hall 5, Booth 5M1A

www.cosmoprof-asia.com

Sydney Essential Oil Co. will be exhibiting at some must-attend industry


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OTHER INDUSTRY EVENTS (AUG-NOV)

August 30-31, 2008 Sydney, Australia

Sydney International Spa & Beauty Expo

Sydney Convention & Exhibition Centre

Experience the world of spa & beauty

at Australia’s largest industry event.

www.internationalbeautyexpo.com.au/

sydney2008

September 24-26, 2008 Tokyo, Japan

BioFach Japan International Organic

Trade Fair & concurrent eventNatural Products Expo

Tokyo Big Sight (Ariake), West Hall

All natural and organic: Functional

Foods; Supplements & Vitamins; Personal

Care & Spa Products; Raw Ingredients

& Materials; OEM/Contract

Manufacturing/Supply-related Goods

& Services; Herbal Products & Alternative

Remedies.www.biofach-japan.com

www.naturalproductsjapan.com

October 15-18, 2008 Boston, USA

BioFach America Organic Products Expo

& concurrent event

Natural Products Expo East

Boston Convention & Exhibition Centre

Together these two expos form the largestsupplier platform for natural & organic

products in North America.

www.biofach-america.com

www.expoeast.com

October 30-31, 2008 Melbourne, Australia

Natural Therapies & Natural Health Expo

Camberwell Centre, Camberwell

Trade event featuring natural medicines,

homeopathic remedies, supplements,

essential oils, flower essences, bodywork

supplies, business and clinic services,

courses and training providers, natural

health magazines, books, CDs and more.www.naturaltherapyexpo.com.au

SEOC SEMINARS

The April 2008 seminars dates were the

last for the time being. The classes are

temporarily suspended, as we redevelop

the content and presentation.

BUSINESS COACHINGThe all-new industry-specific Business

Coaching program is now available

in convenient on-line and email format.

Customers wishing to find out more

can visit our website www.seoc.com.au

for details.

events over the coming months. We’d love to see you there!

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PRODUCT SPECIFICATION

Product Sandalwood Oil 100% pure

Botanical Name: Santalum spicatum

Type: Certified OrganicOrigin: Australia

Appearance: Fluid liquid

Colour: Pale yellow to deep yellow

Odour: Floral, woody

Plant part used: Heart wood

Extraction method: Steam distilled

Physio-chemical propertiesSpecific Gravity at 20ºC/20ºC: 0.945 – 0.980

Optical Rotation at 20º C: -16.0 – +4.0º

Refractive index at 20ºC: 1.500 – 1.517

Solubility in 70% ethanol: max 5 vols. v/v

Oil Components

-santalol 10% – 25%

epi--bisabolol 2% – 12.5%-santalol 10% – 30%

epi--santalol 0.5% – 3.5%

z--trans-bergamotol 2% – 10%

E E farnesol 2.5% – 15%

z--curcumen-12-ol 2% – 15%

z-lanceol 2% – 10%

Other InformationPackaging: As required

Supplier Certification: NOP Licence no. 10109P

For more information, contact Sydney Essential Oil Co. 02 9565 2828.


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FORMULATION

Phase Raw Material % w/w

A Sunflower Oil – certified organic 75.0

Beeswax – certified organic 12.0Palm Oil – certified organic 4.5

Cocoa Butter – certified organic 2.0

Jojoba oil – certified organic 2.0

B Shea Nut Butter – certified organic 3.0

Rose Hip Oil – certified organic 0.4

C Sandalwood Australian oil – certified organic 0.7Vitamin E – natural 0.4

Organic Sandalwood BalmPerformance: Rich, nourishing and immediately soothing

Appearance: Creamy, smooth, pale lemon coloured balm

Stability: Expected shelf life 18-24 months subject to manufacturing practice

Recommended uses: Relaxing massage balm, moisturising body balm, sleep-time

balm, sportsman’s foot balm, meditation balm, rough elbow balm.

Method of Manufacture

1. Combine ingredients in Phase A and heat to 70°C maximum.

2. Slowly cool to 50°C and add ingredients from Phase B, mix through.

3. When the balm reaches 45°C add ingredients from Phase C, mix through.

4. Pour the balm at 40°C and allow to cool slowly to room temperature.

For ingredients, contact Sydney Essential Oil Co. 02 9565 2828.

Disclaimer Product formulations are included as illustrative examples only. Whilst all care has been taken

in presenting example formulations, Sydney Essential Oil Co. accepts no responsibility concerning any

product manufactured using such formulations. The responsibility for the performance for marketing

claim and adequate testing for stability of any product prior to sale lies with the manufacturer thereof.

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SLUG

Sydney Essential Oil Co Pty Ltd ABN 95 096 439 299

Unit 4, 2-10 Fountain Street Alexandria NSW 2015 Australia

PO Box 171 Alexandria NSW 1435

T: + 61 2 9565 2828 F: + 61 2 9519 8009 E: [email protected]

Order on-line www.seoc.com.au

Office hours: 9am-5pm Monday to Friday

Oily is printed on environmentally responsible paper manufactured using

Elemental Chlorine Free (ECF) pulp sourced from sustainable, well managed

forests. Our printers use waterless printing presses and vegetable based inks.

Oily is also available to view on-line. If you’d prefer to opt-out of receiving

a print copy, please let us know.

© Copyright 2008 Sydney Essential Oil Co. Pty Ltd. All rights reserved.No part of this publication may be reproduced, stored in a retrieval system, or

transmitted in any form or by any means, electronic, mechanical, photocopy,

di th is ith t i itt issi f th blish

oily news spring 2008

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