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In good times and in bad, supplements put best face forward - OTC/Natural Health - dietary supplements - Brief Article

Michael Johnsen

Dietary supplements may be on the verge of resurgence, given all the restructuring, revamping and resetting that's happened in the past year among both suppliers and retailers. And despite the media knocks on a number of herbal supplements, there are a number of recently released studies touting the benefits of vitamin and mineral supplementation.

In June, the Journal of the American Medical Association published a report strongly encouraging all adults to supplement with a multivitamin.

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News & Top Stories

NBTY Reports Third Quarter Results
NBTY, Inc. , a leading global manufacturer and marketer of nutritional supplements , today announced results for the fiscal third quarter ended June 30, 2005.


And that information was quickly relayed to customers by Walgreens, which has placed an information placard on the pharmacy counter and a shelf talker in the dietary supplement section conveying the JAMA recommendation.

Vitamin supplementation was further supported by a study from the Rush Institute for Health Aging published in August that found a supplement version of vitamin E afforded the same protection and benefits as vitamin E ingested through foods. Yet another study published that month confirmed the heart health benefits in consuming folic acid and vitamins B12 and B6.

Herbal concerns

On the herbal side of the business, the efficacy of ingredients continues to be questioned and safety concerns raised. The National Institutes of Health has commissioned a report from the Rand Corp. to review the safety of ephedra. And leading ephedra supplier Metabolife is under investigation by the Justice Department for allegedly misleading the Food and Drug Administration regarding ephedra adverse event reports.

On a separate front, the FDA issued a warning in March on the use of kava kava based on reports linking the supplement to liver damage. Canada and Germany have p laced restrictions on the sale of kava kava. And a study published Aug. 21 in JAMA questioned the efficacy of ginkgo biloba, finding that ginkgo extracts did not increase mental function in normal, healthy older patients.

"There have been more than 125 clinical studies conducted on ginkgo biloba," countered Steven Yannicelli, director of continuing education for Pharmavite. "Many of these studies indicate this herb helps improve circulation and mental function." Instead, Yannicelli contended, the single JAMA study should be evaluated in context with other studies published in peer-review journals such as the Human Psychopharmacology Clinical Experience, the Journal of Alternative and Complementary Medicine and the International Journal of Clinical Pharmacology Research.

Pharmavite is not one to keep quiet regarding the products falling under either its Nature's Resource or Nature Made banners. In fact, the supplement company has dedicated its resources to debunking dietary supplement safety concerns and educating the general public on supplement products. The company has partnered with the American Botanical Council in developing a new packaging initiative for its 26 herbals. Products featuring the wrap around extended text labels--which contain information on the history of herb usage, common contra-indications an dad verse effects--will begin shipping this month. The new label program also provides an opportunity to drive trial through clip-free couponing, the supplier suggested.

Pharmavite joined the . Pharmacopeia's Dietary Supplement Verification Program this summer--a program that has been endorsed by dietary-supplement supporters Seas. Tom Harkin, D-Iowa, and Orrin Hatch, R-Utah. Pharmavite also has signed on with to verify the quality of its supplement ingredients. And its Soy Balance, Triple Flex and Remdex products all carry the Good Housekeeping Seal of Approval.

Pharmavite is not the only supplier investing in its supplement business. NBTY two months ago acquired a line of nutritional supplement products sold under the Synergy us banner for an undisclosed amount. Synergy Plus has been sold exclusively in the specialty channel for the past 30 years. "NBTY continues to focus its energies on expanding its wholesale division. The acquisition of Synergy Plus is another step in growing that aspect of our business," stated Scott Rudolph, chairman and chief executive officer.

Leiner Health emerged from a pre-structured Chapter 11 in the spring of this year, having shed some $85 million in debt in the process. The company hopes to generate some excitement of its own in the area of new product development, which as been overlooked in the past, acknowledged chief executive officer Bob Kaminski. "We've rededicated our company to make a difference in terms of levering distribution and adding value to our partnerships through new products for both Your Life and Nature's Origin [as well as] private label brands," he said.

Also unfolding ...

Earlier this summer, Weider Nutrition unloaded its American Body Building assets in a move to concentrate efforts in its Schiff and Weider brands.

"Within the Schiff specialty business unit, our priority remains the support of our Move Free branded business against continuing high levels of both branded and private label competition," Bruce Wood, Weider president and chief executive officer, told analysts during an August conference call.

Meanwhile, the Weider branded products will be undergoing a "through renewal program" that will included new product introductions, new packaging and a dedicated marketing push.

And venerable herbal supplement supplier Pharmaton has changed its marketing tactic over the summer. Pharmaton has begun highlighting its family of products, as opposed to promoting each SKU individually. For instance, the company repackaged its entire line to create a uniform package design. In addition, the supplement boxes now stand vertically to maximize shelf space.

Supplement sales

 Food/drug/mass + Food Drug
 $ % $ % $
 Sales * Change Sales * Change Sales *

Herbs $ % $ % $
Non-herbs 
Letter Vitamins 
Multivitamins 
Minerals 

 Drug
 %
 Change

Herbs %
Non-herbs 
Letter Vitamins 
Multivitamins 
Minerals 

Source: Information Resources Inc. for the 52 weeks ended Aug. 18

+ excluding Wal-Mart

* all sales in millions

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