A Multivitamin a Day Keeps the Doctor’s Bill at Bay
FALLS CHURCH, Va.—A new report indicated daily multivitamin use by older adults could be an inexpensive way to safeguard health. In particular, adults over 65 taking a multivitamin might be able to avoid hospitalization associated with conditions such as pneumonia and urinary tract infections, in addition to fatal and non-fatal myocardial infarction.
The Lewin Group (www.lewin.com) based A Study of the Cost Effects of Daily Multivitamins for Older Adults on research already in the public eye, such as an article published in The Journal of the American Medical Association (287, 23:3127-9, 2002) (www.jama.com). The journal authors, Robert H. Fletcher, M.D., MSc, and Kathleen M. Fairfield, M.D., DrPH, wrote, “[S]uboptimal intake of some vitamins, above levels causing classic vitamin deficiency, is a risk factor for chronic diseases and common in the general population, especially the elderly.”
Fletcher and Fairfield also stated having low levels of folic acid and vitamins B6 and B12 is a risk factor for cardiovascular disease, neural tube defects, and colon and breast cancers. In addition, low levels of vitamin D contribute to osteopenia and fractures, while low levels of vitamins A, C and E may increase the risk of several chronic diseases.
The Lewin Group found, in particular, that a multivitamin might best help cardiovascular health and immune function. The study’s findings also indicated a significant number of older adults do not consume the appropriate amounts or types of food necessary to meet essential energy and nutrient needs.
The Lewin report, which was commissioned by Wyeth Consumer Healthcare (www.wyeth.com), stated, “From the perspective of a payer, the encouragement of the daily use of a multivitamin could be cost beneficial. ... Within a health insurance context, the fiveyear estimate of potential net savings resulting from daily multivitamin intake for adults over 65 is approximately $1.6 billion [in Medicare savings].”
Nature’s Sunshine Reports Layoffs
PROVO, Utah—Nature’s Sunshine Products Inc. (NASDAQ:NATR) reported Oct. 3 that for its third quarter (3Q03), ended Sept. 30, it expects to report a net loss as a result of cutting programs and employee positions. Over the course of the quarter, 50 employees holding both domestic and international positions were laid off, which represented 5 percent of the company’s work force.
The company also expects to report a net loss of approximately $.02 to $.04 per common share after taking these measures to streamline operations and improve efficiencies. Nature’s Sunshine predicts these actions will save the company between $7 million and $9 million per year.
This is not the first time the company has announced downsizing. For its fiscal 2002 (FY02), ended Dec. 31 and reported Feb. 18, the company reduced its work force by 7 percent during the course of the year. The company also reported a 6-percent decrease in yearly sales, going from $318.7 million in FY01 to $298.7 million in FY02. At the time, Daniel Howells, chief executive officer and president, stated, “While the earnings decline was clearly disappointing ... new marketing programs and products introduced at our convention in September [2002] are clearly benefiting domestic results, which currently represent almost 60 percent of our business.”
At press time, the company’s stock was up $.06, coming in at $8.30 per common share, with 13.9 million shares outstanding. The company planned to release its 3Q03 financial report in late October.
Consumers Picky About Calcium?
NEWARK, N.J.—A recent survey by Harris Interactive reported consumer awareness is up about the side effects associated with heavy metals, such as lead, in calcium supplements. In a survey of 2,000 participants, 78 percent said they wanted a calcium supplement free of heavy metals and 73 percent wanted one that absorbs better than other calcium supplements. Based on these attributes, 50 percent of those surveyed reported they would be more likely to buy a calcium supplement from eggshells than from any other source. The survey was commissioned by Ovogen, makers of Ornical™ Natural Calcium from Eggshells.
Numico Sells GNC
ZOETERMEER, The Netherlands— Numico is closing the doors on its U.S. operations, as it reached an agreement to sell its final U.S. company—General Nutrition Centers Inc. (GNC)—for $750 million. While the division has been “on probation,” Numico was expected to sell GNC following its divestures of Rexall Sundown and Unicity earlier this year.
Under terms of the agreement, Apollo Management LP, a New York-based investment firm, will pay $750 million for GNC, subject to Numico shareholder approval and an “OK” from regulatory authorities. Following the sale, Numico will liquidate its U.S. operations, and anticipates a fiscal loss of approximately $1.3 billion. In addition, Numico will retain liability related to ephedra products; GNC discontinued sales of ephedra-based supplements in June 2003.
“We are convinced that selling GNC now, and thereby returning Numico to its core competencies, will maximize shareholder value as we will create a high-growth, highmargin, specialized nutrition company based on two very strong and vibrant businesses,” said Jan Bennink, chief executive officer (CEO) of Numico (www.numico.com). Numico will still have operations in the baby food and clinical nutrition arenas.
Numico originally purchased GNC in August 1999 for $2.5 billion; the business was put on the block earlier this year. Numico has been reviewing offers since May, and winnowed the field to three final bids in mid- September. Reportedly, Apollo beat out NBTY, which purchased the European GNC operations in February, and the investment firm of J.W. Childs, which has two former GNC execs—including former CEO William Watts—among its partners.
GNC had been expected to sell at a depressed valuation, given its position as a turnaround business opportunity. GNC posted sales of 625 million euros ($727 million) in the first half of 2003, which Numico noted was an increase if ephedra product sales from that period were excluded from the equation.
Numico also announced its exit from the European nutritional supplements market. It will sell Vitamex AB, based in Norrkoping, Sweden, to the Swedish firm Wilh. Sonesson AB for 31 million euros ($36 million). “We view the sale of Vitamex as the last important withdrawal from the European nutritional supplements market,” Bennink said. Vitamex manufactures dietary supplements sold through retail and mail order operations.
Bluebonnet Nutrition Jazzes Up Site
SUGAR LAND, Texas—Bluebonnet Nutrition launched a new Web site (www.bluebonnetnutrition.com) that is easy to navigate and provides complete details on all Bluebonnet supplement categories.
The revised products section contains photos and supplement facts for all products, and a new store locator feature makes it a snap for consumers to find a store selling Bluebonnet products.
Nordic Natural Expands, Names Salesperson of the Year
WATSONVILLE, Calif.—Nordic Naturals Inc. located to a new corporate office that is 9,000 square feet, a 100-percent increase from the previous facility. The company credits its sales growth over the last two years as the reason behind the larger location, and is looking to secure another building adjacent to its new headquarters.
Nordic Naturals (www.nordicnaturals.com) also announced its 2002 Salesperson of the Year: Michael Hennessey of Blue Mood Consulting. He covers the company’s mid-Atlantic region.
Soy Demand To Increase Through 2007
NEW YORK—In its latest study, Freedonia reported U.S. soy product demand will reach $8.5 billion. Soyfood demand is expected to increase 4.2 percent annually through 2007, spurred by meal replacements, energy bars and other nutraceutical foods using soy proteins, isoflavones and other healthful soy extracts.
What Your Customers Are Reading About...
Multivitamins
“Since few of us choose our food wisely enough for optimum nutrition, a multi helps to fill in the gaps. Choose a brand that supplies 50 percent to 100 percent of the DV for each of the major vitamins and minerals, especially folic acid, calcium, iron, selenium, zinc and vitamins B6, B12 and E.”
—From “Vitamins: What You Really Need To Take” in the October edition of Harper’s Bazaar (www.harpersbazaar.com)
Mushrooms
“With so many unusual viruses floating around these days, keeping your immune system strong makes more sense than ever. One of the best ways I know to strengthen your immunity is to use a combination of three Asian mushrooms [Cordyceps, Zhu ling and Reishi].”
—From “Virus-Fighting Mushrooms” in the November edition of Prevention (www.prevention.com)
Brain-Boosting Supplements
“Phosphatidylserine, a naturally occurring phospholipid nutrient sold in health food stores, restores worn-out brain-cell membranes. ... Gingko biloba, an antioxidant derived from pulverized leaves of the Ginkgo biloba tree, stabilizes ageworn cell membranes, and enhances memory and alertness.”
—From “Feed Your Head” in the Oct. 6 edition of Fortune (www.fortune.com)
LOW-CARB FARE
Atkins Practice Shuts Down
NEW YORK—The Atkins Center for Complementary Medicine, the medical practice of the high-protein pundit, closed its doors Oct. 15. Besides the best-selling books and food products, the memory of Dr. Atkin’s dietetic leanings will continue to live on through the Dr. Robert C. Atkins Foundation and Atkins Nutritionals Inc.
Hain Celestial Launches Low-Carb Line
MELVILLE, N.Y.—The Hain Celestial Group launched Carb Fit, a lowcarb line that will initially feature Hain Pure Snax Twirls (5 net carbs) and Hain Pure Snax Soy Nuts (6 net carbs). “Recent research indicates that more than 60 percent of all consumers purchasing products lower in carbohydrates are doing so as part of a weight reduction program,” said Irwin Simon, president and chief executive officer. “Our objective is to provide great-tasting, all-natural products that meet this need and instill consumer confidence in the taste and quality of these products by cobranding our new Carb Fit name with our other well-known brands.”
New Survey Reflects Low-Carb Craze
WASHINGTON—According to a survey conducted for the Grocery Manufacturers of America, 40 percent of surveyed shoppers reported that in 2004 they will be shopping for more low-carb foods compared to 27 percent who would be buying more fat-free foods.
Also, 74 percent of those surveyed said they were following a low-carb diet, with low-carb bars, breads, ice cream, chocolate and beer being the most commonly purchased items. Interestingly, 82 percent of those surveyed thought the low-carb trend would be around for a while, with 51 percent reporting it would last “forever.”
NEWS BYTES
Pharmavite, makers of Nature Made®, is offering “Health Sense: A Consumer’s Guide to Smart Vitamin Use.” ... The Canadian Hemp Trade Alliance (CHTA) was born in September, and is partially funded by the Canadian government. ... Harry Bradford was named director of sales at Wisdom Natural Brands. ... Yasoo Health began a “Health Talk” radio ad campaign Sept. 1. The 60-second ads run during The Duke and The Doctor Show and Health Talk with Dr. Bob Martin. ... In partnership with Enzymatic Therapy, Jacob Teitelbaum, M.D., created the Vitality Pyramid, with tiers that include building a nutritional foundation, improving quality of sleep and managing stress. ... Weider Nutrition is using Demantra Spectrum to enhance its supply chain between national sales and supply chain divisions, allowing for fewer errors and out-of-stocks. ...Nutiva’s Organic Hemp Protein Powder was voted best new product in the supplements category at Natural Products Expo East. ... Kevan Lawlor was named president and chief executive officer of NSF International in September. ... Metagenics Inc. was awarded a new patent for the specific combination of nutrients—boswellia, ginger, turmeric and cayenne pepper— found in Inflavonoid Intensive Care, which promotes healthy joints and muscles. ... Health Sciences Group’s BioSelect Innovations division applied for a series of patents for six products in its new CoCare™line; they are for conditions such as acid reflux, allergy relief and nasal congestion. ... Unicity was given the 2003 Best Overall Product Award in Malaysia by Minister of Health Dato Chua Jui Meng on Oct. 3. ... The Aurora Group announced the grand-prize winner of its Expo East drawing was Rhonda Miller, owner of Ohio’s Health Foods Unlimited. She received $500 worth of product.