Grifcon Enterprises, Inc. was established in 2000 by Mr. Dick Griffin. Mr. Griffin has been a commercial lines insurance broker for more than 45 years and has specialized in “Products Liability Insurance” for the natural products industry in the United States the past 13 years. In 1996 he formed a national “Products Liability Insurance Program” for the natural products industry in the U.S. and he and his company are exclusively endorsed by the American Herbal Products Association (AHPA), the Natural Products Association (NPA), the United Natural Products Alliance (UNPA), the American Botanical Council (ABC) and the International Aloe Science Council (IASC). He is also an associate member of the Council for Responsible Nutrition (CRN). The “Product Liability Program now has more than 700 U.S. corporations insured and has paid overrides back to the national associations in excess of $1.5 million (US) during the past 10 years which the associations have used to help their members and to contribute to the betterment of the natural products industry in the U.S.

Over the years Mr. Griffin has become well known internationally for his ability to council foreign natural products companies. The following are some basic considerations he believes all foreign natural products companies should consider before they enter the U.S. and start selling their products.

• First make certain that you have your product label/s reviewed by a law firm in the U.S. that specializes in the natural products industry. You should be careful not to make statements on your labels that might be just fine in your home country but probably will not go well with federal agencies in the U. S. The law firm can also be very helpful in a host of other areas such as choosing the business model you want like a corporation, partnership etc. A competent attorney will help you avoid what could be a costly mistake.

• Consider how you wish to market your products in the U.S. Are you going to sell your finished products under your own label through a U.S. distributor or are you going to set up a company office in the U.S. and distribute them through your own employees? In most cases Mr. Griffin recommends that the foreign company incorporate in the U.S. The process to do this is fairly simple and inexpensive but it gives a high level of protection to the natural products company because it limits their liability here in the U.S. Even if the company distributes through a U.S. company he recommends that you consider incorporation and of course products liability insurance. The U.S. is a very litigious society. Every company involved in the manufacturing and distribution of every product from beginning to end will be summoned in a serious litigation brought about as the result of injury or death your product might cause.

• Every foreign natural products company should join and become an active participant in one or more of the national associations that are mentioned at the beginning of this paper. It is important for many reasons but the two that are very important are (!) the association becomes the source for all information the company needs to comply with FDA, FTC regulations concerning labels, standardization, certification and “Adverse Event Reporting” (AER) and (2) the association becomes an excellent place to internet with other companies that can help in you distribution, manufacturing etc. The associations will keep you informed on all that is happening with the natural products industry in the U.S. and will help your company to avoid many problems.

• A Commercial General Liability Policy should be purchased by the new company in the U.S. The policy will cover Premises & Completed Operations, Employers Liability, Non Owned and Hired Auto and more. In addition there will be a separate coverage for “Products Liability Insurance” and it should include “Broad Form Vendors Legal Liability” which provides coverage for the distributors of your products in the U.S. in the event they are named in a lawsuit against your company. The products liability insurance will pay for the defense costs if one of your products injures or causes death to a person and it will pay for a judgment against your company by a U.S. court of law. You should calculate when you will actually begin selling the products in the U.S. and arrange for the insurance about two months in advance of that date. The limits of liability must be your choice. The limits you choose should be equal to, or greater than the sum of your assets in the U.S.

• Enlist the help of a brand marketing or advertising/public relations firm to assist with such items as packaging and label design, collateral materials, advertising, publicity and trade show development, as well as other marketing elements. Firms experienced with the natural products industry and mass market understand marketing trends and the nuances of product marketing in the U.S. Some distribution consulting firms can also recommend experienced marketing firms that are right for you.

Mr. Griffin has formed close relationships with the attorneys, insurance brokers, marketing agencies and associations that will do the best work for a new company entering the U.S. He will respond to your questions and help in any way possible to assist a company starting business in the U.S.