VMS segment gets a boost from Wall Street


The latest vindicator to the almost $3.5 billion vitamin and supplement business across all outlets isn’t positive press. It’s not even the continued consumer gravitation toward self-care. It’s Wall Street. 


“What’s been hot in the sector has been corporate activity,” said Scott Van Winkle, managing director of the investment firm Canaccord Genuity. Whether it’s initial public offerings like GNC or Vitamin Shoppe, or such mergers and acquisitions as the Schiff Nutrition purchase of the Ganeden Biotech probiotic line, “there’s been a lot of activity in the nutrition space over the last 12 to 18 months,” he said. 


“The fact that we’re seeing more and more outside investors is a sign that [Wall Street] sees us as a good [investment],” added Steve Mister, president and CEO for the Council for Responsible Nutrition. “If there were another ephedra ready to happen, we wouldn’t be seeing this influx of capital.”


“There’s 1% growth just from demographics,” Van Winkle said, and the sector is projected to continue to grow in the mid-single digits. There are a growing number of blockbuster nutrition subcategories, such as glucosamine/chondroitin and fish oil. Also, probiotics and vitamin D are on their way to achieving blockbuster status.

 

The article above is part of the DSN Category Review Series. For the complete Vitamins, Minerals and Supplements Buy-In Report, including extensive charts, data and more analysis, click here.

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