HEALTH

Wellness surge, regulations create healthy growth

BY Michael Johnsen

Interest in vitamins, minerals and supplements as a viable consumer product with strong profit-bearing potential has got to be at an all-time high right now, judging from the number of merger and acquisition deals scrolling across the latest finance news feeds.

And that can only bode well for the future. Sales of total vitamins and supplements were relatively flat (-0.4%) at $5.8 billion across total U.S. multi-outlet for the 52 weeks ended Nov. 4, according to SymphonyIRI Group. But the stars are aligning for supplements overall as a stronger regulatory environment coupled with a gravitation toward better living gives consumers and investors faith that supplements are not only safe, but will help keep them healthy into their twilight years.

That corporate interest in supplements as a viable business going forward was most apparent when Reckitt Benckiser upped the ante and won its bid for Schiff Nutrition shortly after a Bayer Consumer Health play for that same business. Earlier in the year Schiff itself had picked up Digestive Advantage, Church & Dwight bought Avid Health and Procter & Gamble purchased New Chapter.

And most recently Meda Consumer, fresh off of its successful repositioning of its iron franchise Feosol, will be launching into the natural sleep aid category with its recent acquisition of MidNite.

Growth potential in the dietary supplement sector has captured Wall Street’s attention, suggested Steve Mister, president and CEO for the Council for Responsible Nutrition. The supplement industry actually grew through the recession, Mister said. “There is this growing interest by consumers for wellness,” he said. “[Wall Street] is looking for somewhere to put their money that’s going to get more than a 2% return.”

A stronger regulatory environment helps fortify the supplement sector as an attractive investment. “[Wall Street] wants a predictable regulatory environment,” such as good manufacturing practices and mandatory adverse event reporting, Mister said.

Nontraditional drivers of dietary supplements may include health insurers and employers. With insurance mandates driving more potential consumers into healthcare coverage next year, those insurers with larger bases of healthier patients will reap friendlier margins.

 

 

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

keyboard_arrow_downCOMMENTS

Leave a Reply

Desmond says:
Aug-16-2013 10:50 am

From what I've noticed the dietary supplement sector is by far one of the most promising in this field. Even if the demand for vitamins and supplements is increasing as Canada Drugs will continue to honor all their orders as before.

TRENDING STORIES

HEALTH

Revamped marketing campaign boosts sales of Alli

BY Michael Johnsen

GlaxoSmithKline’s Alli is back. And while the brand is still slightly down versus year-ago sales  — Alli posted a sales decline of 8.9% to $13.9 million across all channels for the 12 weeks ended Nov. 4, according to SymphonyIRI Group — overall, the category is trending up 15% in quarterly sales increases. The recent resumption of marketing efforts behind Alli coupled with recent New Year’s resolutions should maintain Alli’s position as the top-selling diet-aid tablet, and the only OTC option in the category.

GSK in the last quarter launched a new marketing campaign behind its Alli brand, the company noted. “Our [new] campaign is called ‘Let’s fight fat,’” said Deborah Larsen, GSK’s marketing director for Alli. The campaign focuses on partnering with dieters on their path to weight loss, she said. One of the first changes made to Alli following its “relaunch” was a revamped web site at MyAlli.com. A second marketing enhancement new to Alli is its foray into social media sites like Facebook and Twitter.

 

 

The article above is part of the DSN Category Review Series. For the complete Diet Sell-Through Report, including extensive charts, data and more analysis, click here.

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

HEALTH

New products meet demand for probiotics

BY Michael Johnsen

NEW YORK — A recent survey commissioned by Dannon found that 68% of consumers believe certain probiotics help regulate the digestive system, yet one-third of Americans agree that they don’t get enough probiotics in their average daily diets.

That suggests an upside for an already hot category — sales of probiotics were up 16.2% across all channels to $232 million for the 52 weeks ended Oct. 28, according to SymphonyIRI Group data.

“Last year, we introduced our Digestive Health probiotic,” said Doug Jones, Pharmavite spokesman. It’s the third probiotic brand for Pharmavite, Jones said, and it is entering a space that is projected to reach $400 million in sales in the not-too-distant future.

In addition to Pharmavite’s new launch, both Pfizer and Bayer recently launched probiotic offerings under their respective supplement brands — ProNutrients Probiotic, from the makers of Centrum, and TruBiotics from the makers of One-a-Day. And Upsher-Smith Labs in June launched a probiotic specifically designed for women called Provella.

 

 

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

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES