Sports Nutrition & Weight Loss Report - New Hope 360

Sports Nutrition & Weight Loss Report

2011 An analysis of markets, trends, competition and strategy in the U.S. sports nutrition and weight loss market

NBJ’s Sports Nutrition & Weight Loss Report 2011

2 www.nutritionbusinessjournal.com ©2011 Penton Media, Inc.

Table of Contents

©2011 Penton Media, Inc. www.nutritionbusinessjournal.com 3

2.1. ACKNOWLEDGEMENTS ................................................................................................................................................... 15 2.2. RESEARCH METHODOLOGY ............................................................................................................................................. 15

2.2.1. Disclaimer ........................................................................................................................................................ 16 2.2.2. Copyright ......................................................................................................................................................... 16

2.3. DEFINITIONS ................................................................................................................................................................. 16 2.3.1. SNWL Categories ............................................................................................................................................. 16 2.3.2. Product Categories .......................................................................................................................................... 19 2.3.3. Sales Channels ................................................................................................................................................. 20

3.1. U.S. NUTRITION & SUPPLEMENT INDUSTRY ....................................................................................................................... 23 3.2. U.S. SPORTS NUTRITION & WEIGHT LOSS MARKET ............................................................................................................. 24

3.2.1. Product Categories .......................................................................................................................................... 25 3.2.1. Channel Sales ................................................................................................................................................... 29

3.3. GROWTH & FORECAST ................................................................................................................................................... 30 3.1. RECENT MERGERS & ACQUISITIONS .................................................................................................................................. 32

3.1.1. Designer Protein Acquires Designer Whey Brand from NEXT Protein ............................................................. 32 3.1.2. GNC Goes Public (Again) .................................................................................................................................. 33 3.1.3. BSN Opens New Doors to Consumer Whey Market for Glanbia ...................................................................... 34 3.1.4. Private Equity Deals Aplenty ............................................................................................................................ 35 3.1.5. GSK Moves into Sports Nutrition with Acquisition of Maxinutrition ................................................................ 35 3.1.6. ConAgra Acquires Elan ..................................................................................................................................... 36

3.2. HISTORY OF SNWL ....................................................................................................................................................... 36 3.2.1. 1920s ............................................................................................................................................................... 36 3.2.2. 1930s ............................................................................................................................................................... 36 3.2.3. 1940s ............................................................................................................................................................... 37 3.2.4. 1950s ............................................................................................................................................................... 37 3.2.5. 1960s ............................................................................................................................................................... 37 3.2.6. 1970s ............................................................................................................................................................... 37 3.2.7. 1980s ............................................................................................................................................................... 38 3.2.8. 1990s ............................................................................................................................................................... 39 3.2.9. 2000s ............................................................................................................................................................... 39 3.2.10. 2010s ............................................................................................................................................................... 41

4.1. PRODUCT SALES ............................................................................................................................................................ 43 4.1.1. Top Companies ................................................................................................................................................ 48 4.1.2. Sports Drinks .................................................................................................................................................... 48 4.1.3. Energy Drinks ................................................................................................................................................... 50 4.1.4. Energy Shots .................................................................................................................................................... 51

4.2. CHANNEL SALES ............................................................................................................................................................ 53 4.3. GROWTH & FORECAST ................................................................................................................................................... 54 4.4. TRENDS ....................................................................................................................................................................... 56

4.4.1. Top Trends in Energy and Protein Beverages .................................................................................................. 56 4.4.2. Slower Growth Foreseen for Energy Drinks Category ...................................................................................... 57 4.4.3. Shot Products Offer a Burst of Growth and Innovation for Maturing Energy Drink Sector ............................. 58



4.4.4. Latin America: The World's Next Functional Beverage Hotspot? .................................................................... 62 4.4.5. Ingredients Backed with Good Science Help Formulators Hit the Energy Bull's Eye ........................................ 62

5.1. PRODUCT SALES ............................................................................................................................................................ 65 5.1.1. Top Companies ................................................................................................................................................ 69 5.1.2. Sports Powders & Formulas ............................................................................................................................. 72 5.1.3. Sports Pills ........................................................................................................................................................ 73 5.1.4. Sports Nutrition Hardcore Drinks ..................................................................................................................... 74


5.4.1. Six Ways to Have a Stand-Out Sports Nutrition Product ................................................................................. 80 5.4.2. A Response to Consumer Reports’ Scary Supplements .................................................................................... 81 5.4.3. Health Clubs and Gyms Driving Sports Supplement Sales ............................................................................... 82 5.4.4. Health Clubs Evolving into Wellness Centers ................................................................................................... 85 5.4.5. Physique and Endurance Athletes Create Distinct Market Opportunities ....................................................... 85 5.4.6. Elite Athletes Eschew Dietary Supplements Over Fears of Contamination ...................................................... 88 5.4.7. The Next Nightmare: Geranium Extracts ......................................................................................................... 89

6.1. PRODUCT SALES ............................................................................................................................................................ 91 6.1.1. Top Companies ................................................................................................................................................ 93


6.3.1. Weight-Loss Functional Products Focus on Promoting Fullness ...................................................................... 96 6.3.2. Shakes Trump Pills in 2010 .............................................................................................................................. 98 6.3.3. What Does FTC’s Final Order in Its Nestle BOOST Health Claims Case Mean for Industry? ............................ 98

7.1. PRODUCT SALES .......................................................................................................................................................... 101 7.1.1. Top Companies .............................................................................................................................................. 103 7.1.1. Top Brands ..................................................................................................................................................... 104

7.2. CHANNEL SALES .......................................................................................................................................................... 105 7.3. GROWTH & FORECAST ................................................................................................................................................. 106 7.4. TRENDS ..................................................................................................................................................................... 108

7.4.1. Way Beyond Bars & Shakes ........................................................................................................................... 108 7.4.2. Future of Nutrition Bars Shaped by Lifestyle Brands and Functional Ingredients .......................................... 109 7.4.3. Race for Sales Supremacy in Crowded U.S. Nutrition Bar Market Tightens .................................................. 112 7.4.4. Growth of Gels and Chews Underscores Importance of Innovation in Bar Category .................................... 114

8.1. PRODUCT SALES .......................................................................................................................................................... 117 8.1.1. Top Companies .............................................................................................................................................. 119

8.2. CHANNEL SALES .......................................................................................................................................................... 120 8.3. GROWTH & FORECAST ................................................................................................................................................. 121 8.4. TRENDS ..................................................................................................................................................................... 123

8.4.1. Weight-Loss Supplement Sales Plummet Following Iovate’s Hydroxycut Recall ........................................... 123 8.4.2. Weight-Loss Sales in 2010 Return to 2003 Levels in Wake of Hydroxycut Recall .......................................... 127 8.4.3. New Weight-Loss Ingredients Offer Hope ..................................................................................................... 128 8.4.4. Is Weight Loss Too Big to Fail? ...................................................................................................................... 129 8.4.5. Satiety Stands Out in Weight-Loss Sector ...................................................................................................... 130

Table of Contents


8.4.6. FTC Takes Action against Internet Marketers of Acai Weight-Loss Supplements ......................................... 130

9.1. NATURAL & SPECIALTY RETAIL ....................................................................................................................................... 133 9.2. MASS MARKET ........................................................................................................................................................... 136 9.3. MAIL ORDER/DRTV/DR RADIO .................................................................................................................................... 138 9.4. MULTI-LEVEL MARKETING ............................................................................................................................................ 139 9.5. PRACTITIONER ............................................................................................................................................................ 141 9.6. INTERNET ................................................................................................................................................................... 142 9.7. TRENDS ..................................................................................................................................................................... 144

9.7.1. Muscle Milk Goes Mass, Bringing Sports Nutrition into Mainstream Markets ............................................. 144 9.7.2. Medifast's Multi-Channel Sales Approach Generates Double-Digit Revenue Growth ................................... 147 9.7.3. FTC Regulations Change the Marketing Landscape for Nutrition Direct Sellers ............................................ 150 9.7.4. MyProtein.co.uk Poised to Tackle Germany's Online Sports Supplement Market ......................................... 153 9.7.5. E-marketing: A Recession Essential for Every Company ................................................................................ 156 9.7.6. NBTY Prioritizes Web Sales ............................................................................................................................ 157

10.1. SNWL VALUE CHAIN ................................................................................................................................................... 159 10.2. RAW MATERIAL TRENDS ............................................................................................................................................... 160

10.2.1. Sports Nutrition Drives Sales of Whey Proteins ............................................................................................. 160 10.2.2. Beta-alanine Emerges as Safe, Effective Performance-Enhancing Agent ...................................................... 161 10.2.3. FDA Cracks Down on Sildenafil Analogues .................................................................................................... 162

11.1. ALEX LEE: SPORTS NUTRITION IN CHINA .......................................................................................................................... 165 11.2. PROGRESSIVE METHODS PAY OFF IN DOWN ECONOMY FOR CORR-JENSEN LABS ..................................................................... 167 11.3. HONEY STINGER PARTNERS WITH LANCE ARMSTRONG, BRINGS HONEY TO SPORTS NUTRITION .................................................. 171 11.4. TEITELBAUM: WHAT'S HOT IN WEIGHT LOSS, ENERGY AND PERFORMANCE ........................................................................... 173 11.5. WISCONSIN SPECIALTY PROTEIN STAKES OUT UNIQUE POSITION IN WHEY MARKET ................................................................ 175

12.1. 24-Hour Fitness (Apex Fitness) ............................................................................................................................... 179 12.2. Abbott Laboratories (Ensure, ZonePerfect, EAS) .................................................................................................... 182 12.3. Ajinomoto (aminoVITAL) ........................................................................................................................................ 184 12.4. Applied Nutrition (Irwin Naturals) .......................................................................................................................... 186 12.5. AST Sports Science .................................................................................................................................................. 187 12.6. Athletic Xtreme....................................................................................................................................................... 189 12.7. Atkins Nutritionals .................................................................................................................................................. 190 12.8. Bally Total Fitness Corporation .............................................................................................................................. 192 12.9. Basic Research/ Zoller Labs (Zantrex, Relacore) ..................................................................................................... 193 12.10. Bio-Engineered Supplements and Nutrition, Inc. (BSN) ........................................................................................ 195 12.11. BioNutritional Research Group (Power Crunch) ................................................................................................... 197 12.12. Bioplex Nutrition .................................................................................................................................................. 199 12.13. Bricker Labs .......................................................................................................................................................... 200 12.14. Carlyle Group/NBTY (Sundown Naturals, WorldWide, METRx, Body Fortress) .................................................... 201 12.15. Chef Jay's (Tri-O-Plex) ........................................................................................................................................... 204 12.16. CLIF Bar & Company ............................................................................................................................................. 205 12.17. Coca-Cola (Powerade, Full Throttle, Odwalla) ..................................................................................................... 207 12.18. Controlled Labs ..................................................................................................................................................... 208 12.19. Cortislim International Inc. ................................................................................................................................... 209 12.20. CytoSport .............................................................................................................................................................. 210



12.21. Dr. Pepper Snapple Group (Venom Energy) ......................................................................................................... 212 12.22. EST Nutrition(Engineered Sports Technology) ...................................................................................................... 214 12.23. Extreme Labs ........................................................................................................................................................ 215 12.24. First Endurance..................................................................................................................................................... 217 12.25. Fizogen Precision Technologies ............................................................................................................................ 218 12.26. Forever Living ....................................................................................................................................................... 219 12.27. Forward Foods (Detour) ....................................................................................................................................... 220 12.28. Gaspari Nutrition .................................................................................................................................................. 222 12.29. General Mills/Small Planet Foods (Larabar)......................................................................................................... 224 12.30. General Nutrition Center, Inc. (GNC) .................................................................................................................... 226 12.31. Glanbia (Optimum Nutrition) ............................................................................................................................... 229 12.32. Hammer Nutrition ................................................................................................................................................ 231 12.33. Hansen Natural Corporation (Monster Energy) ................................................................................................... 233 12.34. Health Smart Foods, Inc. ...................................................................................................................................... 235 12.35. Herbalife International ......................................................................................................................................... 236 12.36. Hobarama (Bawls) ............................................................................................................................................... 238 12.37. Honey Stinger ....................................................................................................................................................... 239 12.38. iForce Nutrition .................................................................................................................................................... 241 12.39. Iovate Health Sciences (Hydroxycut, Xenadrine) .................................................................................................. 242 12.40. Iron Man Magazine (Muscle-Link) ....................................................................................................................... 244 12.41. iSatori Global Technologies .................................................................................................................................. 245 12.42. ISI Brands (Twinlab, Metabolife) .......................................................................................................................... 247 12.43. ISS Research (Oh Yeah) ......................................................................................................................................... 249 12.44. Jay Robb Enterprices Inc. ...................................................................................................................................... 250 12.45. Kaizen Nutrition.................................................................................................................................................... 251 12.46. Kellogg Company (Kashi, Special K)...................................................................................................................... 253 12.47. Kikkoman/Country Life (Biochem, Iron-Tek) ........................................................................................................ 254 12.48. Kraft Foods (SouthBeach, Crystal Light) ............................................................................................................... 255 12.49. Labrada Nutrition ................................................................................................................................................. 256 12.50. Liberty Media (Bodybuilding.com) ....................................................................................................................... 258 12.51. Living Essentials (5 Hour Energy) ......................................................................................................................... 260 12.52. Mars, Inc. (Snickers Marathon) ............................................................................................................................ 262 12.53. Max Muscle Sports Nutrition ................................................................................................................................ 263 12.54. Maximum Human Performance (MHP) ................................................................................................................ 265 12.55. Mega-Pro Inc. ....................................................................................................................................................... 267 12.56. Metabolic Response Modifiers (MRM) ................................................................................................................. 268 12.57. Molecular Nutrition .............................................................................................................................................. 269 12.58. Monarch/Big Red, Inc. (All Sport, Inc.) ................................................................................................................. 270 12.59. Muscle Marketing USA ......................................................................................................................................... 271 12.60. Naturade .............................................................................................................................................................. 272 12.61. Nature's Best (Isopure) ......................................................................................................................................... 274 12.62. Nature's Products (Champion Nutrition) .............................................................................................................. 275 12.63. Nestle (Powerbar, Boost) ..................................................................................................................................... 276 12.64. Next Proteins International (Designer Whey) ...................................................................................................... 278 12.65. NOW Foods .......................................................................................................................................................... 280 12.66. Nutrex Research ................................................................................................................................................... 282 12.67. Nutrition Research Group (Advanced Nutrient Science) ...................................................................................... 283 12.68. NVE Pharmaceuticals (Stacker, 6-Hour Power) .................................................................................................... 284 12.69. Olympian Labs ...................................................................................................................................................... 285 12.70. Organic Food Bar.................................................................................................................................................. 287 12.71. PepsiCo (Gatorade, SoBe, Amp, Propel) ............................................................................................................... 288 12.72. Plethico/Natrol (Medical Research Institute/Prolab) ........................................................................................... 290 12.73. Premier Nutrition ................................................................................................................................................. 292

Table of Contents


12.74. Promax Nutrition Corp. ........................................................................................................................................ 293 12.75. Red Bull ................................................................................................................................................................ 294 12.76. Rockstar, Inc. ........................................................................................................................................................ 296 12.77. S.A.N. Corporation (Bolt, V-12, Tight) .................................................................................................................. 298 12.78. Sanofi-Aventis/Chattem (Dexatrim) ..................................................................................................................... 299 12.79. Schiff Nutrition International (Tiger's Milk, Fi-Bar) .............................................................................................. 300 12.80. Swander Pace/Genisoy Food Company, Inc. (MLO Products) .............................................................................. 302 12.81. ThermoLife International ..................................................................................................................................... 304 12.82. Think Products ...................................................................................................................................................... 305 12.83. Ultimate Nutrition ................................................................................................................................................ 307 12.84. Universal Nutrition Corporation ........................................................................................................................... 308 12.85. Unilever (SlimFast) ............................................................................................................................................... 309 12.86. USPlabs................................................................................................................................................................. 311 12.87. Vitaquest International (Windmill Health Products) ............................................................................................ 313 12.88. VPX Sports Nutrition (Redline) ............................................................................................................................. 314 12.89. Wellements .......................................................................................................................................................... 316 12.90. Wellness International Network, Ltd .................................................................................................................... 317 12.91. Wellnx Life Sciences (NX Labs, Slimquick) ............................................................................................................ 318 12.92. Xyience Inc. ........................................................................................................................................................... 319



Index of Figures


Figure 1-1 U.S. Total SNWL Sales by Product in 2010 ............................................................................................. 13 Figure 3-1 U.S. Nutrition Industry by Product Sales, 2000-2010e ........................................................................... 23 Figure 3-2 U.S. Nutrition Industry by Product Growth, 2000-2010e ....................................................................... 24 Figure 3-3 U.S. Total SNWL Sales by Product in 2010 ............................................................................................. 25 Figure 3-4 Total U.S. SNWL Sales by Product Subcategory, 2000-2010 .................................................................. 26 Figure 3-5 Total U.S. SNWL Sales Growth by Product Subcategory, 2000-2010 ..................................................... 26 Figure 3-6 Total U.S. SNWL Sales by Product Subcategory as a % of SNWL Total, 2000-2010 ............................... 27 Figure 3-7 Top Sports Nutrition & Weight Loss Companies in 2010 ...................................................................... 28 Figure 3-8 Total U.S. SNWL Channel Sales in 2010 .................................................................................................. 29 Figure 3-9 U.S. SNWL Sales and Annual Growth by Channel, 2008-2010 ............................................................... 30 Figure 3-10 SNWL Sales by Channel, 2000-2010 ..................................................................................................... 30 Figure 3-11 U.S. SNWL Sales & Growth, 2000-2017e .............................................................................................. 31 Figure 3-12 Total U.S. SNWL Sales by Product Subcategory, 2011e-2017e ............................................................ 31 Figure 3-13 Total U.S. SNWL Sales Growth by Product Subcategory, 2011e-2017e ............................................... 32 Figure 3-14 Total U.S. SNWL Sales by Product Subcategory as a % of SNWL Total, 20011e-2017e ....................... 32 Figure 4-1 U.S. Sports & Energy Beverages as a Percentage of Total SNWL Sales in 2010 ..................................... 43 Figure 4-2 U.S. Sports & Energy Beverages vs. Total Supplement Sales, 2000-2010 .............................................. 43 Figure 4-3 U.S. Sports & Energy Beverages Sales by Product Category in 2010 ..................................................... 44 Figure 4-4 U.S. Sports & Energy Beverages Sales by Product, 2000-2010 .............................................................. 44 Figure 4-5 U.S. Sports & Energy Beverage Sales Growth by Product, 2000-2010 ................................................... 45 Figure 4-6 U.S. Sports & Energy Beverage Sales by Product as % of Total, 2000-2010 .......................................... 45 Figure 4-7 U.S. Sports & Energy Beverage Sales Growth by Product in 2010 ......................................................... 46 Figure 4-8 U.S. Sports & Energy Beverage Sales & Growth, 1997-2010 ................................................................. 46 Figure 4-9 U.S. Sports & Energy Beverage Product Category Sales Growth, 2000-2010 ........................................ 47 Figure 4-10 Top 15 Sports & Energy Beverage Companies in 2010 ........................................................................ 48 Figure 4-11 U.S. Sports Drinks as a Percentage of Total SNWL Sales in 2010 ......................................................... 49 Figure 4-12 U.S. Sports Drinks Sales & Growth, 2000-2017e .................................................................................. 49 Figure 4-13 U.S. Energy Drinks as a Percentage of Total SNWL Sales in 2010 ........................................................ 50 Figure 4-14 U.S. Energy Drinks Sales & Growth, 2000-2017e ................................................................................. 50 Figure 4-15 Top Energy Drink Brands in 2010 ......................................................................................................... 51 Figure 4-16 U.S. Energy Shots as a Percentage of Total SNWL Sales in 2010 ......................................................... 52 Figure 4-17 U.S. Energy Shots Sales & Growth, 2000-2017e .................................................................................. 52 Figure 4-18 U.S. Sports & Energy Beverage Sales by Channel in 2010 .................................................................... 53 Figure 4-19 U.S. Sports & Energy Beverage Sales and Annual Growth by Channel, 2008-2010 ............................. 53 Figure 4-20 U.S. Sports & Energy Beverage Sales by Channel, 2000-2010 ............................................................. 54 Figure 4-21 U.S. Sports & Energy Beverage Sales & Growth, 2000-2017e ............................................................. 54 Figure 4-22 U.S. Sports & Energy Beverages vs. Total SNWL Market, 2000-2017e ................................................ 55 Figure 4-23 U.S. Sports & Energy Beverages vs. Total SNWL Market, 2011e-2017e .............................................. 55 Figure 4-24 U.S. Sports & Energy Beverage Sales by Product, 2011e-2017e .......................................................... 55 Figure 4-25 U.S. Sports & Energy Beverage Sales Growth by Product, 2011e-2017e ............................................ 56 Figure 4-26 U.S. Sports & Energy Beverage Sales by Product as % of Total, 2011e-2017e ................................... 56 Figure 5-1 U.S. Sports Nutrition Supplements as a Percentage of Total SNWL Sales in 2010 ................................ 65 Figure 5-2 U.S. Sports Nutrition Supplements vs. Total Supplement Sales, 2000-2010 ......................................... 65 Figure 5-3 U.S. Sports Nutrition Supplement Sales by Product Category in 2010 .................................................. 66



Figure 5-4 U.S. Sports Nutrition Supplement Sales by Product, 2000-2010 ........................................................... 66 Figure 5-5 U.S. Sports Nutrition Supplement Sales Growth by Product, 2000-2010 .............................................. 67 Figure 5-6 U.S. Sports Nutrition Supplement Sales by Product as % of Total, 2000-2010 ...................................... 67 Figure 5-7 U.S. Sports Nutrition Supplement Sales Growth by Product in 2010 .................................................... 68 Figure 5-8 U.S. Sports Nutrition Supplement Sales & Growth, 2000-2010 ............................................................. 68 Figure 5-9 U.S. Sports Nutrition Product Category Sales Growth, 2000-2010 ........................................................ 69 Figure 5-10 Top 30 Sports Nutrition Supplement Companies in 2010 .................................................................... 70 Figure 5-11 Top 20 Sports Powder & Pill Companies in 2010 ................................................................................. 71 Figure 5-12 U.S. Sports Powders & Formulas as a Percentage of Total SNWL Sales in 2010.................................. 72 Figure 5-13 U.S. Sports Nutrition Powders & Formulas Sales & Growth, 2000-2017e ........................................... 72 Figure 5-14 U.S. Sports Pills as a Percentage of Total SNWL Sales in 2010 ............................................................. 73 Figure 5-15 U.S. Sports Nutrition Pills Sales & Growth, 2000-2017e ...................................................................... 74 Figure 5-16 U.S. Sports Nutrition Hardcore Drinks as a Percentage of Total SNWL Sales in 2010 ......................... 74 Figure 5-17 U.S. Sports Nutrition Hardcore Drinks Sales & Growth, 2000-2017e .................................................. 75 Figure 5-18 Top Hardcore Drink Companies in 2010 .............................................................................................. 75 Figure 5-19 U.S. Sports Nutrition Supplement Sales by Channel in 2010 ............................................................... 76 Figure 5-20 U.S. Sports Nutrition Supplement Sales and Annual Growth by Channel, 2008-2010 ........................ 76 Figure 5-21 U.S. Sports Nutrition Supplement Sales by Channel, 2000-2010 ......................................................... 77 Figure 5-22 U.S. Sports Nutrition Supplement Sales & Growth, 2000-2017e ......................................................... 78 Figure 5-23 U.S. Sports Nutrition Supplements vs. Total SNWL Market, 2000-2017e............................................ 78 Figure 5-24 U.S. Sports Nutrition vs. Total SNWL Market, 2011e-2017e ................................................................ 79 Figure 5-25 U.S. Sports Nutrition Supplement Sales by Product, 2011e-2017e ..................................................... 79 Figure 5-26 U.S. Sports Nutrition Supplement Sales Growth by Product, 2011e-2017e ........................................ 79 Figure 5-27 U.S. Sports Nutrition Supplement Sales by Product as % of Total, 2011e-2017e ................................ 80 Figure 6-1 U.S. Weight Loss Meal Replacement Supplements as a Percentage of Total SNWL Sales in 2010 ....... 91 Figure 6-2 U.S. Weight Loss Meal Replacement Supplements vs. Total Supplement Sales, 2000-2010 ................ 91 Figure 6-3 U.S. Weight Loss Meal Replacement Supplement Sales & Growth, 1997-2010 .................................... 92 Figure 6-4 U.S. Weight Loss Meal Replacement Supplements as a Percentage of Total Meal Replacement Sales in 2010 ......................................................................................................................................................................... 92 Figure 6-5 Top 15 Weight Loss Meal Replacement Supplement Companies in 2010 ............................................. 93 Figure 6-6 U.S. Weight Loss Meal Replacement Supplement Sales by Channel in 2010 ........................................ 94 Figure 6-7 U.S. Weight Loss Meal Replacement Supplement Sales and Annual Growth by Channel, 2008-2010 . 94 Figure 6-8 U.S. Weight Loss Meal Replacement Supplement Sales by Channel, 2000-2010 .................................. 95 Figure 6-9 U.S. Weight Loss Meal Replacement Supplement Sales & Growth, 2000-2017e .................................. 95 Figure 6-10 U.S. Weight Loss Meal Replacement Supplements vs. Total SNWL Market, 2000-2017e .................. 96 Figure 6-11 U.S. Weight Loss Meal Replacement Supplements vs. Total SNWL Market, 2011e-2017e ................. 96 Figure 7-1 U.S. Nutrition Bars & Gels as a Percentage of Total SNWL Sales in 2010 ............................................ 101 Figure 7-2 U.S. Nutrition Bars & Gels vs. Total Supplement Sales, 2000-2010 ..................................................... 101 Figure 7-3 U.S. Nutrition Bars & Gels Sales & Growth, 1997-2010 ....................................................................... 102 Figure 7-4 Top 20 Nutrition Bar & Gel Companies in 2010 ................................................................................... 103 Figure 7-5 Top Nutrition Bar & Gel Brands by Bar Type in 2010 ........................................................................... 104 Figure 7-6 U.S. Nutrition Bars & Gels Sales by Channel in 2010 ........................................................................... 105 Figure 7-7 U.S. Nutrition Bars & Gels Sales and Annual Growth by Channel, 2008-2010 ..................................... 105 Figure 7-8 U.S. Nutrition Bar Sales by Channel, 2000-2010 .................................................................................. 106 Figure 7-9 U.S. Nutrition Bars & Gels Sales & Growth, 2000-2017e ..................................................................... 106 Figure 7-10 U.S. Nutrition Bars & Gels Sales Growth vs. Total SNWL Market, 2000-2017e ................................. 107 Figure 7-11 U.S. Nutrition Bars & Gels vs. Total SNWL Market, 2011e-2017e ..................................................... 107 Figure 8-1 U.S. Weight Loss Pill Form Supplements as a Percentage of Total SNWL Sales in 2010 ...................... 117

Index of Figures


Figure 8-2 U.S. Weight Loss Pill Form Supplements vs. Total Supplement Sales, 2000-2010............................... 117 Figure 8-3 U.S. Weight Loss Pill Form Supplements Sales & Growth, 1997-2010 ................................................. 118 Figure 8-4 Top 20 Weight Loss Pill Form Supplement Companies in 2010 ........................................................... 119 Figure 8-5 U.S. Weight Loss Pill Form Supplements by Channel in 2010 .............................................................. 120 Figure 8-6 U.S. Weight Loss Pill Sales and Annual Growth by Channel, 2008-2010 ............................................. 120 Figure 8-7 U.S. Weight Loss Pill Sales by Channel, 2000-2010 .............................................................................. 121 Figure 8-8 Weight Loss Pill Form Supplements Sales & Growth, 2000-2017e ...................................................... 121 Figure 8-9 U.S. Weight Loss Pill Form Supplements vs. Total SNWL Market, 2000-2017e ................................... 122 Figure 8-10 U.S. Weight Loss Pill Form Supplements vs. Total SNWL Market, 2011e-2017e ............................... 122 Figure 9-1 U.S. SNWL Sales and Annual Growth by Channel, 2008-2010 ............................................................. 133 Figure 9-2 U.S. Natural & Specialty Retail Channel SNWL Sales by Product in 2010 ............................................ 134 Figure 9-3 U.S. Natural & Specialty Retail Channel SNWL Sales & Annual Growth by Product, 2008-2010 ......... 134 Figure 9-4 U.S. Natural & Specialty Retail SNWL Sales & Growth, 2000-2017e .................................................... 135 Figure 9-5 U.S. Natural & Specialty Retail SNWL Sales vs. Total SNWL Sales Growth, 2000-2017e ..................... 135 Figure 9-6 U.S. Mass Market Retail Channel SNWL Sales by Product in 2010 ...................................................... 136 Figure 9-7 U.S. Mass Market Retail Channel SNWL Sales & Annual Growth by Product, 2008-2010 ................... 136 Figure 9-8 U.S. Mass Market Retail SNWL Sales & Growth, 2000-2017e ............................................................. 137 Figure 9-9 U.S. Mail Order Channel SNWL Sales by Product in 2010 .................................................................... 138 Figure 9-10 U.S. Mail Order Channel SNWL Sales & Annual Growth by Product, 2008-2010 .............................. 138 Figure 9-11 U.S. Mail Order SNWL Sales & Growth, 2000-2017e ......................................................................... 139 Figure 9-12 U.S. Multi-Level Marketing/Network Channel SNWL Sales by Product in 2010 ................................ 140 Figure 9-13 U.S. Multi-Level Marketing/Network Channel SNWL Sales & Annual Growth by Product, 2008-2010 ............................................................................................................................................................................... 140 Figure 9-14 U.S. Multi-Level Marketing/Network Channel SNWL Sales & Growth, 2000-2017e ......................... 141 Figure 9-15 U.S. Practitioner Channel SNWL Sales by Product in 2010 ................................................................ 141 Figure 9-16 U.S. Practitioner Channel SNWL Sales & Annual Growth by Product, 2008-2010 ............................. 142 Figure 9-17 U.S. Practitioner Channel SNWL Sales & Growth, 2000-2017e.......................................................... 142 Figure 9-18 U.S. Internet Channel SNWL Sales by Product in 2010 ...................................................................... 143 Figure 9-19 U.S. Internet Channel SNWL Sales & Annual Growth by Product, 2008-2010 ................................... 143 Figure 9-20 U.S. Internet Channel SNWL Sales & Growth, 2000-2017e ............................................................... 144 Figure 10-1 U.S. SNWL Industry Value Chain 2010 ............................................................................................... 159 Figure 10-2 U.S. SNWL Industry Value Chain 2009 ............................................................................................... 159 Figure 10-3 U.S. Supplement Industry Value Chain in 2010 estimated ................................................................ 160 Figure 12-1 24 Hour Fitness (Apex Fitness) S.W.O.T. Analysis .............................................................................. 180 Figure 12-2 Abbott Laboratories (ZonePerfect, EAS) S.W.O.T. Analysis ............................................................... 182 Figure 12-3 Ajinomoto USA Inc. S.W.O.T. Analysis ................................................................................................ 184 Figure 12-4 AST Sports Science S.W.O.T. Analysis ................................................................................................. 187 Figure 12-5 Atkins Nutritionals S.W.O.T. Analysis ................................................................................................. 190 Figure 12-6 Basic Research/Zoller Labs S.W.O.T. Analysis .................................................................................... 193 Figure 12-7 BioNutritional Research Group S.W.O.T. Analysis ............................................................................. 197 Figure 12-8 Carlyle Group/NBTY S.W.O.T. Analysis ............................................................................................... 201 Figure 12-9 Clif Bar & Company S.W.O.T. Analysis ................................................................................................ 205 Figure 12-10 CytoSport S.W.O.T. Analysis ............................................................................................................. 210 Figure 12-11 Forward Foods (Detour) S.W.O.T. Analysis ...................................................................................... 220 Figure 12-12 Gaspari Nutrition S.W.O.T. Analysis ................................................................................................. 222 Figure 12-13 General Mills (Larabar) S.W.O.T. Analysis ........................................................................................ 224 Figure 12-14 GNC S.W.O.T. Analysis ...................................................................................................................... 226



Figure 12-15 Glanbia S.W.O.T. Analysis ................................................................................................................. 229 Figure 12-16 Hammer Nutrition S.W.O.T. Analysis ............................................................................................... 231 Figure 12-17 Hansen Natural Corporation S.W.O.T. Analysis ............................................................................... 233 Figure 12-18 Herbalife International S.W.O.T. Analysis ........................................................................................ 236 Figure 12-19 Honey Stinger S.W.O.T. Analysis ...................................................................................................... 239 Figure 12-20 Iovate Health Sciences S.W.O.T. Analysis......................................................................................... 242 Figure 12-21 iSatori Technologies S.W.O.T. Analysis ............................................................................................ 245 Figure 12-22 ISI Brands S.W.O.T. Analysis ............................................................................................................. 247 Figure 12-23 Kaizen S.W.O.T. Analysis .................................................................................................................. 251 Figure 12-24 Labrada Nutrition S.W.O.T. Analysis ................................................................................................ 256 Figure 12-25 Liberty Media (Bodybuilding.com) S.W.O.T. Analysis ...................................................................... 258 Figure 12-26 Living Essentials S.W.O.T. Analysis ................................................................................................... 260 Figure 12-27 Max Muscle Sports Nutrition S.W.O.T. Analysis .............................................................................. 263 Figure 12-28 Maximum Human Performance S.W.O.T. Analysis .......................................................................... 265 Figure 12-29 Nestlé S.W.O.T. Analysis ................................................................................................................... 276 Figure 12-30 NOW Foods S.W.O.T. Analysis .......................................................................................................... 280 Figure 12-31 Pepsi S.W.O.T. Analysis .................................................................................................................... 289 Figure 12-32 Red Bull S.W.O.T. Analysis ................................................................................................................ 294 Figure 12-33 Rockstar S.W.O.T. Analysis ............................................................................................................... 296 Figure 12-34 Schiff S.W.O.T. Analysis .................................................................................................................... 300 Figure 12-35 Think Products S.W.O.T. Analysis ..................................................................................................... 305 Figure 12-36 Unilever (SlimFast) S.W.O.T. Analysis .............................................................................................. 309 Figure 12-37 USPlabs S.W.O.T. Analysis ................................................................................................................ 311 Figure 12-38 VPX Sport Nutrition S.W.O.T. Analysis ............................................................................................. 314

1 Executive Summary


Sales of sports nutrition & weight loss (SNWL) products rebounded in a big way in 2010. After a lackluster

2009, during which SNWL reported flat overall growth—its worst performance on record, dating back to 1997 when NBJ first began to track the category—the year 2010 marked 9% annual growth, $2 billion in new sales, and $22.7 billion in total sales.

Much of this success can be attributed to strong growth, 10% annually, in the mass channel. “Sports nutrition products are not just for bodybuilders and serious athletes anymore,” said Bob Green, president of Nutratech, in a recent interview with NBJ. “The appeal has broadened to a more general audience—soccer moms, fathers-on-the-go, weekend warriors—who wants to increase energy, improve physical and mental performance, and simply stay in shape.”

Within the mass channels, energy drinks & shots remain king, generating $12 billion in sales, a figure that dwarfs any other product category through any channel. Consumer demand for sports beverages remains fervid, despite mounting evidence of adulterated formulations and questionable ingredients in some smaller brands. In January 2011, O.J. Mayo of the Memphis Grizzlies became the latest professional athlete to blame supplements for his failing a drug test and facing league suspension. According to Mayo, an energy drink containing DHEA and purchased at his local gas station triggered the positive test result.

Nutrition bars began to make some noise in 2010, posting 12% growth after six years of underperformance. Reasons for this renaissance include a wave of new product launches, sophistication in marketing bars to different consumer sets, and continued innovation in delivery formats. NBJ profiled Honey Stinger in its February 2011 issue for its launch of a waffle developed by Lance Armstrong, and companies on the verge of breaking into the top echelon of bar manufacturers—companies like thinkProducts and KIND—have clear, targeted branding strategies evident in their labeling. ThinkThin in particular speaks to savvy messaging with its clean packaging aimed at harried female shoppers.

Despite the solid sales performance and a rosier outlook, ominous storm clouds continue to hang over the entire category as regulators reiterated their distaste for the pervasiveness of bad actors, particularly through the internet sales channel. In a December announcement from the Food & Drug Administration, regulators joined forces with major trade organizations—Council for Responsible Nutrition, Natural Products Association and United Natural Products Alliance, among others—to increase levels of self-policing by industry and draw

Figure 1-1 U.S. Total SNWL Sales by Product in 2010

Source: Nutrition Business Journal estimates.($mil., consumer sales).

Weight-Loss Pill-Form Supplements

7%

Weight-Loss Meal Replacement Supplements

11%

Sports Nutrition Supplements

14%

Nutrition Bars & Gels11%

Sports & Energy Drinks & Shots

57%



clearer bull’s eyes on three supplement categories—bodybuilding, weight loss and sexual performance—for the rampant product adulerations in the market. Silenafil, sibutramine and anabolic steroids remain top tainting agents, as dangerous pharmaceuticals continue to crop up in product formulations almost every week.

Furthermore, within the popular pre-workout category of sports supplements, one particular ingredient is drawing outsized attention from industry for its potential to result in a tragic re-telling of the ephedra story. Supposedly derived from geranium extracts, methylhexaneamine (MHA), otherwise known as 1,3 DMAA, carries with it a questionable pedigree, questionable science, and growing evidence that the compound, as now present in popular products such as USP Labs’ Jack3D, is in fact a drug and not a dietary ingredient at all. Many industry experts predict a bad outcome for MHA and, perhaps, the overall pre-workout category, as adverse event reports and subsequent product recalls seem little more than a matter of time.

The news in weight loss is less ominous, but there’s little reason to sing the category’s praises. Innovation has ground to a near halt in weight loss, as formulators resort to proprietary, science-backed ingredients and evidence little interest in the cutting edge. “No clear ingredient is leading the recovery process in weight loss,” said Scott Steil of Nutra Bridge. “The driving force right now is companies going back to proven ingredients with a history of strong market presence. Weight loss is almost going back in time, to a time of proven ingredients that let you make claims and deliver efficacy to consumers.” Sales results speak directly to this time traveling, as the category finally returned to pre-ephedra levels not seen since 2003. Small cause for celebration, but 2010 did stem the negative sales growth in weight-loss over the past three years, as the category delivered 1% growth on $4.0 billion across pill-form and meal-replacement supplements. Fringe ingredients like bitter orange, hoodia, fucoxanthin and Irvingia still register in the category, while green tea, CLA and 7-Keto remain the strongest performers. Speaking to the stagnation in weight-loss, Frank Jaksch of Chromadex put things quite succinctly in a recent interview with NBJ: “Weight loss equals caffeine now.” The category does, however, appear too big to fail or stagnate for long, as the Centers for Disease Control now reports that 1 in 3 U.S. adults could have diabetes by the year 2050.

NBJ’s 2011 Sports Nutrition & Weight Loss report features in-depth analysis of the major product categories and sales channels shaping two of nutrition’s most controversial and successful categories. This report focuses on two weight-loss categories—pill form and meal replacement supplements—and three sports-nutrition categories—supplements, nutrition bars & gels, and sports & energy drinks & shots—with discussion of the key trends affecting each of these markets and the industry as a whole. It also capitalizes on 14 continuous years of data, including market size, growth, and revenue estimates for top companies in the industry. In addition, the report includes 100 company profiles, SWOT analyses of market leaders, analysis of the recent uptick in M&A activity in the space, analysis of the SNWL value chain as it pertains to raw material & ingredient suppliers, and a newly created historical timeline for perspective on the category and insights about its future.

Documents

Sports Nutrition & Weight Loss Report - New Hope 360