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WINTER EdITIoN 2008

our love affair with shea nut butterquality commitment on essential oilsbusiness insurance solutions

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winterWINTER EdITIoN 2008

this issue

Winter is known as the season for planning and development. Nature becomes still and begins hibernation, but in business we cannot afford to sleep. We must plan and get ready for the growth that will come with the Spring.

As we enter our eleventh year of trading, we are encouraged by the growth of the industry and of our customers. Our overriding business objective is to keep moving with the growing demands of the marketplace and to ensure our service and products meet your requirements. Over the coming month you will see some shifts in our products, our pricing and the professional support we can offer.

Customer feedback has lead us to embark on an overhaul of the Oily Edition newsletter. Today we present you with the first issue of the new Oily magazine. Oily will focus on useful product profiles and small to medium business resources. If there are topics of interest that you would like us to cover, please drop us a line.

The feature article in this issue is the behind the scenes story of our Certified Organic Shea Nut Butter, enjoy the read.

Winter cover:Almonds Prunus amygdalus dulcis (sweet Almond) OilSweet Almond oil is rich in essential fatty acids and as such is used for cosmetic moisturisers, hand creams, body lotions, night creams and massage oils. Sydney Essential Oil Co. offers refined and unrefined options of this popular ingredient. Visit www.seoc.com.aufor details.

winter04 Harvest:

Certified Organic Shea Nut Butter EveryphaseoftheSheanutbutterprocess

tellsastoryoftradition.

12 Essential Oils: Testing for Quality Assurance

SydneyEssentialOilCo.’stestingprocessandcommitmenttoensureproductauthenticityandquality.

18 SME (Small – Medium Enterprises) Forum: Public & Product Liability Insurance

Protectyourbusinessquicklyandeasily.

20 Events: Australian & International Events Guide

Keepabreastofindustrydevelopmentsaroundtheworld.

22 Product Specification: Certified Organic Shea Nut Butter

Specificationformanufactuers

23 Formulation: Deluxe Night Cream FeaturingCertifiedOrganicSheaNutButter

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This is the story of the Certified Organic Shea Nut Butter Sydney Essential Oil Co. sources from an inspiring community near the village of Wa in northern Ghana, Africa. Every phase of the Shea Nut Butter process tells the story of tradition, traditions of a hunter-gatherer and agricultural civilisation.

The women are at the centre of this tradition and those in northern Ghana continue today in the same way as generations before them. Gathering, drying, kneading and selling their wares to contribute to the family’s income and their community’s well being.

Ghana is located in west Africa and lies in a tropical equatorial belt crossing the Greenwich Meridian. This is the ideal geographical location for Shea trees.

Northern Ghana experiences two main seasons, the Rainy season (April-September) and the Dry season (October-March). Mature trees lose their leaves at the end of the Rainy season, then flower for the next two months. Flowers grow into fruits and when the fruits are around the size of a plum, they begin to fall. This is when the women step in and begin gathering the fruits on foot. >

Ghanaian Shea Nut ButterOurloveaffairwithnaturalandorganicingredientscontinuestodrivethefastestgrowingsectoroftheglobalcosmeticsindustry,andoneofthemostnoteworthyingredientstowatchisSheaNutButter(Butyrospermumparkii).

in ghana, some traditional medicinal uses for Shea nut butter include treating small skin wounds and also muscle fatigue. Opposite top: The children learn and will carry on the age-old traditions. Bottom: Freshly hand made Shea nut butter.

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In Ghana, Traditional cosmetic uses for Shea nut butter include moisturising and protecting the skin from the harsh dry winds, healing burns, stretch marks and scars and also for making soap. Opposite: Rich nourishing body butters.

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“Sydney Essential Oil Co. is a proud partner of S & D Aroma and their community project in Ghana. This sponsored community is supported with a Fair Trade agreement for the Shea nut butter they produce. This region is Certified Organic and all produce is purchased for redistribution into Western cosmetic and food industries.”

Uncultivated trees grow to heights of around 15 to 18 metres and it is typically 8 to 15 years before the first harvest of nuts and then 25 to 50 years before reaching its full production capacity. Each tree can produce 15 to 20 kilos of fresh fruit, resulting in 3 to 4 kilos of dry kernels, and the yield from each kernel is 42 to 48% of oil/butter.

Locally, the butter has traditionally provided an edible vegetable fat for cooking, used in much the same way as Westerners use butter or lard. Globally, the main consumption of Shea is in the manufacture of chocolate as a cocoa butter substitute. But the food industry is not it’s only use. Generations of Africans have also used Shea nut butter for cosmetic purposes, and now it is also globally desirable in the pharmaceutical and cosmetics industries for its moisturising benefits.

Sydney Essential Oil Co. is a proud partner of S & D Aroma and their community project in Ghana. This sponsored community is supported with a Fair Trade agreement for the Shea nut butter they produce. This region is Certified Organic and all produce is purchased for redistribution into Western cosmetic and food industries. 1

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shea nut trees grow wild and uncultivated and as a result, no applied chemicals, pesticides, fertilisers, toxic or hazardous substances come in contact with these trees. Once the fruits ripen, they fall to the ground, where the women proceed to collect them on foot.

ripe shea nuts, fresh off the tree.The Shea nut butterproduced in northernGhana is organic andhand-made usingage-old traditionalmethods. The nutsare first dried in thesun to bring out theirnatural oils.

InnorthernGhana,90%ofpeopleareengagedinagriculturalactivities.Familyincomeissupplementedbythewomens’sheanutpickingandprocessing.

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the people of ghana have a high respect for the environment and there is no place for environmental mistreatment. >

InnorthernGhana,90%ofpeopleareengagedinagriculturalactivities.Familyincomeissupplementedbythewomens’sheanutpickingandprocessing.

the dried nuts are then roasted, ground by hand and kneaded, producing the soft Shea nut butter. The fuel used for the fire to roast the nuts is collected by the women from dead wood and bracken. No trees are cut down to produce the fires used in its production.

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Sheanutbutterofferslong-lastingmoisturisingprotectionandreliefforirritatedskin,makingitanidealingredientforspecialtypreparations.

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Basket weaving creates jobs for many people in their community.

the butter is hand filled into sterile plastic bags in the hand woven baskets.

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Sheanutbutterofferslong-lastingmoisturisingprotectionandreliefforirritatedskin,makingitanidealingredientforspecialtypreparations.

the baskets arethen hand sealed,and used to transport the finished Shea nutbutter to be refinedand prepared forcommercial use.

Once sealed, they are loaded on to paper-lined trucksfor transportationfrom the village Wato the capital Accra’sport for shippingto the refinery inHolland. Oncethe goods reachHolland, the rawmaterial is refinedand deodorised tocertified organicstandards by steamprocessing. 1

essentiAl Oils

forqualityassurancetesting

EssentialOilsareourbusinessandourexpertiseinqualitymanagementisyourpeaceofmindwhenpurchasingessentialoils.

To understand the full meaning of ‘quality’ as it relates to essential oils, we must first look at the various ways quality is judged within the aromatherapy and cosmetics industries. Essential oils are complex and volatile plant materials that can be evaluated on their aroma and also on the balance of their chemical constituents. Therefore determining quality becomes relevant to the end-users requirements. At Sydney Essential Oil Co., we view and assess quality in three ways:

1. Subjective characteristics2. Objective characteristics3. A combination of both

Subjective characteristics are those that rely on an individual’s senses and their memory. The most common senses are sight, touch and smell. Without a capacity to measure characteristics, subjective assessment is the only resource available to an individual when discerning a measure of quality for a particular essential oil.

Objective characteristics are measures developed over time in an attempt to remove subjectivity from a quality assessment. >

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EssentialOilsareourbusinessandourexpertiseinqualitymanagementisyourpeaceofmindwhenpurchasingessentialoils.

We verify the quality and authenticity of our oils and provide Certificates of Analysis, Product Specifications and Material Safety Data Sheets for our complete range.

essentiAl Oils

These measures manifest as “standard characteristics” of a product. In an ideal world these standard characteristics are documented showing an expected range of what is perceived to be (and then agreed to be) important in relation to that product.

In reality, a combination of the above two methods of assessment are used in determining Essential Oil quality. While an oil may measure objectively as acceptable, there can be differences in colour or odour which can sway a buyer to or from differing product origins. Examples of these differences are where a Lavender angustifolia, grown in Australia, France or Bulgaria may all measure within a single standard objectively for that genotype, but will have a smell profile quite different to each other due to their growth environment.

Sydney Essential Oil Co. utilises published standards, or in their absence, the spirit of these standards, and accordingly accepts or rejects product (essential oils) from our supply sources using both measured and subjective parameters. To carry out these assessments, our laboratory tests incoming product by applying the test principles contained in these standards and comparing the results to those that appear in the published standard. The product is then compared to previously accepted supply in that growth region. Sydney Essential Oil Co. maintains what is called keeper samples for this purpose.

The major objective quality tests applied to essential oils include:

Gas ChromotographyThe apparatus consists of a long narrow tube, packed with an inert support material of uniform particle size that has been coated with a non-volatile liquid called the ‘stationary phase’. The whole tube

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and its contents are maintained in a thermostatically controlled oven. The test sample is carried through the tube by an inert gas so that the progress through the tube of various components of the test sample is selectively interfered with by the stationary phase. Components of the test sample pass through the tube more rapidly than others. A detector measures the electrical conductivity of the gas leaving the column. A print out of the concentration of each gas leaving the chamber over time is produced. The peaks along the graph represent the different components, while the area under the peak represents the concentration of that component.

Optical Rotation Substances containing an asymmetric carbon atom have the property of rotating the plane of a ray of polarised light. Different substances can be distinguished by the angle and direction of rotation (direction to the right is reported as a plus result).

Refractive Index The refractive index of a substance is the ratio of the velocity of light in a substance compared to the velocity of light in air. When a ray of light passes from air to a denser medium it is refracted towards the normal, the refractive index being the sine of the angle of incidence to the sine of the angle of refraction. The constant is measured by a refractometer.

Solubility Most essential oils are only slightly soluble in water. It is possible to determine the number of volumes of dilute alcohol required for the complete solubility of one volume of oil. >

essentiAl Oils

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Quality AssuranceBy comparing test outcomes in our laboratory with published standards, we can quantitatively verify the trueness to type for every essential oil. Sydney Essential Oil Co. is also very careful to ensure a consistency in subjective measures. While these cannot be measured in a quantitative way, our system of comparison tests against keeper samples remove the need to rely on memory.

To validate our quality assurance system, Sydney Essential Oil Co. can provide both the Specification and the Certificate of Analysis for each essential oil batch that is tested. All parameters should fall within the expected range of the Specification.

A key process in ensuring product traceability through the variations in pack size of a product is the utilisation of Primary and Sub batch numbers, which are linked via the electronic inventory system. An incoming bulk batch of an essential oil is issued a 4 digit batch number. When that product is packed down to smaller pack sizes, each production run receives a six digit batch number which is unique to that product and pack size. When a client receives their product, the batch number represented on the label is tracked to the original 4 digit batch number. A Certificate of Analysis can be generated for each of these sub batch numbers, but draws its information from the original 4 digit batch results.

To ensure another level of transparency and product authenticity, Sydney Essential Oil Co. some time ago gained Certified Organic Processor status which in part examines this process annually. Looking ahead, the company has also undertaken to certify its laboratory process for Quality Assurance. For every test conducted, a Certificate of Analysis is stored in perpetuity and a retained sample is kept for a minimum of three years. 1

By David Johnson – Operations, Business Development

& Quality Control Manager

For bulk order enquiriesPlease contact our ‘Bulk Sales’ division for essential oil orders of 5kg, 10kg, 25kg or more. David Johnson or Iris Chau will be pleased to prepare a quotation for you. Please don’t hesitate to enquire on items that may not be listed in our catalogue. Contact david.johnson@seoc.com.au

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Manufacturing cosmetics? Need insurance?EBMInsuranceBrokershavedevelopedaninsuranceprogramtailoredspecificallyforcosmeticmanufacturers.So,whetheryou’reinthestart-upphaseofyourbusiness,orneedingacomparativequotebeforerenewingyourpremium,anobligation-freequotationcanputyourmindateaseinknowingyou’regettingthebestpossiblevalueonyourinsurancecoverage.

Public & Product liability insurance

Sydney Essential Oil Co. has recently been

working with EBM Insurance Brokers to

develop a Public & Product Liability

Insurance Program to meet the needs of

Cosmetic Manufacturers. This has resulted

in the release, by EBM, of an Insurance

program tailored to the industry’s needs.

Sydney Essential Oil Co. chose to work

with EBM Insurance Brokers, as they have a

wealth of experience in the Cosmetic

Industry through their partnership with

Aspa (Australasian Spa Association), the

leading association for the Spa, Health and

Wellness industry.

EBM Insurance Brokers was established

in 1975 and has since grown to become

one of Australia’s premier insurance

broking firms, with a network of offices in

New South Wales, Victoria, Queensland

and Western Australia. Their team is drawn

from a group of widely experienced and

highly qualified professionals, and all of

the senior brokers are Qualified Practicing

Insurance Brokers with decades of

experience in Australia and internationally.

We know your time is precious, so EBM

has kept the paperwork to an absolute

minimum. With the completion of a very

simple Application Form, a quotation can

be provided to you, in most cases within 24

hours. Their competitive Premiums start

from $600.00 inclusive of GST for a

$10million limit.

Please follow the links from our website

homepage to download the Application

Form. www.seoc.com.au

Return your completed Application Form

to EBM to obtain an obligation free quote.

Fax to EBM on 1300 365 822; or Email to

melissa@ebminsurance.com.au; or Phone

Melissa Shaw at EBM on (03) 9425 1891 to

discuss.

Once you have received your quotation,

if you choose to proceed, simply notify

EBM…no more paperwork is required! 1

sMe FOruM

www.ebminsurance.com.au

P.s. In case you may be wondering, Sydney Essential Oil Co. is offering the link to this service, as we value your custom. We have not and will not receive any financial commissions or kick backs from this arrangement.

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seOC seMinArs

The April 2008 seminars dates were sadly

the last for the time being. We will be

suspending our classes until further notice,

as we redevelop their content and

presentation.

inDustry exPOs

May �–�0, �00� Auckland, new Zealand

natural therapies & natural health expo

Trade event for Complementary Healthcare

Professionals, Medical Practitioners, Holistic

Nurses, Therapists, Health Food Retailers

and Students. First time in NZ.

www.naturaltherapyexpo.com.au

May �3-��, �00� edison, nJ usA

nysCC suppliers’ Day

Venue for Personal Care Suppliers and

Cosmetic Chemists

www.nyscc.org

May ��-�0, �00� Dubai, uAe

Beautyworld Middle east

International Trade Fair for the Perfumery,

Drug Store and Cosmetics Trade Wellness

and spas Middle east

International Trade Fair for the

Professional Spa and Wellness Industry

www.messefrankfurtme.com

May ��-��, �00� tokyo, japan

Beautyworld Japan

Japan’s largest Trade Fair for the Beauty,

Spa, Perfumery, and Cosmetics Industries

www.beautyworldjapan.com/en/

May �0-��, �00� shanghai, China

China Beauty expo

International Trade Beauty Show for

Beauty Manufacturers and Suppliers

www.ttcbevents.com

June ��-��, �00� hong Kong

natural Products expo Asia

Asia’s Leading Natural and Organic

Tradeshow

www.naturalproductsasia.com

July �3-��, �00� las vegas, usA

Cosmoprof north America

The premier beauty and cosmetics

tradeshow in the USA

www.cosmoprofnorthamerica.com

July ��-��, �00� sydney, Australia

Organic expo

Oceania’s Premier Trade and

Consumer Show highlighting Certified

Organic and Environmental Expo.

www.organicexpo.com.au

We are exhibiting at the Organic expo,

visit us at stand ��.

2008

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Other informationPackaging: 1kg, 5kg, 25kgSupplier Certification: NOP Licence no. DD08345

For more information, contact sydney essential Oil Co. 0� ���� ����.

PrODuCt sPeCiFiCAtiOn

Product shea nut Butter

INCI: Butyrospermum parkii (Shea butter)

Type: Certified Organic

Consistency @ 20°C: Solid

Colour: Pale Yellow

Odour: Slight

Specific Gravity @ 40°C 0.900 – 0.930

Refractive Index @ 40°C 1.460 – 1.470

Free Fatty Acids %: Max. 2.0

Iodine Value: 53 – 73

Melting Point: 34 – 42°C

Fatty Acid Composition

C14:0 Myristic acid max. 0.5%

C16:0 Palmitic acid 3.0 – 8.0%

C18:0 Stearic acid 36.0 – 50.0%

C18:1 Oleic acid 41.0 – 49.0%

C18:2 Linoleic acid 3.0 – 7.0%

C18:3 Linolenic acid max. 0.3%

C20:0 Arachidic acid max. 2.5%

FOrMulAtiOn

Phase raw Material % w/w

A Purified Water 76.9

B Emulsifying Wax 6.8

Avocado Oil – certified organic 2.4

Mango Butter 2.0

Shea Nut Butter – certified organic 1.6

Evening Primrose Oil – certified organic 1.6

Stearic Acid 0.3

C Mandarin red essential oil – certified organic 0.6

Lavender essential oil – certified organic 0.4

Vitamin E-natural 0.5

Vitamin A palmitate 0.1

Patchouli essential oil – certified organic 0.1

D Glycerine – certified organic 2.7

Aloe Vera gel 2.0

Calendula extract 1.0

Unigerm g-2 1.0

E Citric Acid q.s.

100% w/w

Deluxe Night CreamPerformance: Long lasting deep moisture Appearance: Glossy, thick pale lemon coloured emulsion stability: Expected shelf life 18-24 months subject to manufacturing practice

Method of Manufacture1. Heat phase A to 70°C maximum.2. Combine ingredients in Phase B and heat to 70°C maximum.3. Add Phase A to Phase B and emulsify for 5 minutes.4. When emulsion has cooled to 35°C, add all ingredients from Phase C

while stirring constantly. Emulsify for 1-3 minutes.5. Add all ingredients from Phase D while stirring constantly.

Emulsify for a further 3 minutes.6. Adjust pH using Phase E to 5.5 – 5.8.7. When cool, pour off.

For ingredients, contact sydney essential Oil Co. 0� ���� ����.

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.�3

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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: sales@seoc.com.au

Order on-line www.seoc.com.au

Office hours: 9am-5pm Monday to Friday

© 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,

recording or otherwise, without prior written permission of the publisher.

Contact marketing@seoc.com.au with any requests.