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.
Lichi Super Fruit introduces meal replacement shake
NEW YORK — Lichi Super Fruit is adding a meal replacement product to its lineup.
New Lichi Super Fruit Chocolate Delight Meal Replacement is a nutritious blend of natural cocoa, whey and soy proteins, vitamins and omega fatty acids that promotes weight loss and lean muscles, according to the company. The weight-management chocolate shake, which comes in a one-month supply, is set to hit select retail shelves in July.
Lichi Super Fruit Chocolate Delight Meal Replacement will be available for a suggested retail price of $24.99.
Osteo Bi-Flex passes advertising scrutiny
NEW YORK — The National Advertising Division of the Council of Better Business Bureaus earlier this month determined that Rexall Sundown has supported claims regarding the company’s Osteo Bi-Flex glucosamine HCL and vitamin D3 dietary supplement.
As a part of its ongoing monitoring program and in conjunction with the NAD’s initiative with the Council for Responsible Nutrition, designed to expand the NAD’s review of advertising claims for dietary supplements, the NAD — the advertising industry’s self-regulatory forum — reviewed claims that included:
“Joint support formula designed to show improvement in joint comfort within seven days”;
“5-LOXIN Advanced, a patent-pending special natural extract of Boswellia serrata that shows improvement in joint comfort within seven days”;
“Promotes neuromuscular function”;
“Supports overall immune system health”; and
“No. 1 doctor- and pharmacist-recommended brand.”
In support of its advertising claims, the advertiser identified the proven joint health benefits of glucosamine and vitamin D3, as well as research on the Boswellia serrata extract in this product.
Rexall Sundown acknowledged that the current research on glucosamine alone could not support a “seven-day efficacy" claim, but maintained that its seven-day claim was supported by the highly absorbable Boswellia extract ingredient aflapin, which is marketed as 5-Loxin Advanced.
Following its review of the evidence in the record, including research on aflapin, the NAD determined that the advertiser could support claims that referenced an improvement in joint comfort in or within seven days. The NAD further determined that the body of evidence on vitamin D provides a reasonable basis for the claims that it “promotes neuromuscular function” and “supports overall immune system health.”
Finally, the NAD found that, based on data contained in the current National Disease and Therapeutic Index, the advertiser could support the claim that Osteo Bi-Flex is the “No. 1 doctor- and pharmacist-recommended brand.”