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The Weighting Game

by Kate Quackenbush | February 1, 2010

Americans are overweight, enough said. Every time a consumer opens a newspaper or goes online they’re confronted with the statistics, but this influx of publicity has finally resulted in consumers making the connection between their weight and their health. Couple this with mounting health care costs, and these shoppers start seeing natural product retailers as their salvation.

“Increasing press focusing on the obesity epidemic has influenced consumers to be more health conscious,” said Kelly Coppel, sales and marketing with Maximum Living Quality Supplements (Soulsbyville, CA). “Obesity has shown to be a contributing factor in many health conditions—heart disease, diabetes, joint disorders—and consumers are also looking for safer ways to manage their weight.”

“The market for weight management supplements has always experienced steady growth, and we expect this to continue even in the challenging economic climate, since more consumers are focused on self-health care,” said Bob Green, president of Nutratech, Inc. (West Caldwell, NJ). “As for sales, there is no question that this has been a challenging year. However, the natural products industry as a whole—and the weight management category in particular—have weathered the storm brilliantly. Expanding waistlines don’t help shrinking pocket books. As Americans try to avoid expensive prescriptions and conventional medical care, they are turning to our industry for natural, alternative ways to stay healthy.”

Yet for retailers, the category has had some excess baggage of its own they’ve had to overcome. The well-publicized Hydroxycut recall and reports about tainted supplements have understandably put consumers, especially those new to dietary therapies, on guard. On the opposite side of the coin are outrageous claims about magic pills that have created unrealistic expectations.

For those retailers vetting their products—stocking responsible, quality-focused manufacturers who utilize science-backed ingredients—and working with the customers to keep them grounded and focused on lifestyle changes, the adult weight management category poses an opportunity for retailers to truly satisfy customers—many first-timers—and transform them into loyal shoppers.

Gateway Category

“Weight management products have long been an important category for natural product retailers, partially because it is such a problem for many people to control their weight but also since many people shop in our stores because they want to use natural products that are free of potentially risky pharmaceuticals,” said Neil E. Levin, CCN, DANLA, nutrition education manager with NOW Foods (Bloomingdale, IL). “As a gateway category for transitional shoppers that may be new to stores, weight management products become an important gauge of our commitment to meeting these people’s needs and thus keeping them as customers willing to try other products.

“Of course, nutritionists will suggest a comprehensive diet and supplement plan, rather than relying on ‘magic bullet’ single products,” he added, “so the contribution of this category to store profits could be far higher than just the profits on the category’s product sales alone.”

For Kent Chappelle, director of marketing for Super Supplements, a 21-store chain with its headquarters and distribution based in Seattle, WA, this “gateway category” has still been a strong seller, due in part to “gateway lines” such as NOW Foods.

“We get a strong level of support from our consumer base that likes NOW products—it’s almost a gateway line because you have a good blend of quality and price point,” he said. “In a tough economy, a good price point can make the difference.”

Beating Negative Press

Dating back to ephedra days was when the safety of weight loss products was really brought to the forefront, this issue continues with the recent recall of Hydroxycut.

As reports circulate through the general media, they tend to reinforce the myth that the natural product industry is “unregulated.”

But Hydroxycut’s loss has been other companies’ gains, according to Jason Provenzano, executive vice president of Nutricap Labs, a Farmingdale, NY-based contract manufacturer, whose catalog includes Lipo 6 and Xenadrine.

“People still need products to help them lose weight,” he said. “Since the Hydroxycut recall, many people have just been using other brands to help them reach their weight loss goals. While the Hydroxycut recall may have hurt that company, other companies have grown tremendously in a relatively short period of time.”

Mary Hogan, category manager with Fruitful Yield, a 10-store chain serving the northwest Chicago suburbs for over 40 years, with an 11th store opening in the late spring, expressed that the impact of the negative press circulating around weight loss supplements didn’t affect her stores.

“I think the natural market recovered quite quickly,” said Hogan. “Our industry came up with alternatives that seemed to give close to the same results. I don’t believe we lost much business.” She also shared that Garden of Life’s FucoThin, Irwin/Nature’s Secret products along with NOW diet aids have been big sellers for Fruitful Yield.

Similarly, Super Supplements’ Chappelle expressed that the negative publicity hasn’t hurt his stores’ bottom lines.

“As with everything, when negative press comes out about a supplement or product, there are reactionary people,” said Chappelle, adding that some Super Supplements stores experienced Hydroxycut returns, but most walked away with something else. “Many customers asked for or wanted to be directed to replacement products. We’re an education-based company, so we’re always seeking to find the best product for each customer’s goals.”

Quality Counts

Chappelle said quality is one reason his customers are fond of NOW’s products. He explained that the company has upped its quality measures, and his patrons have taken notice.

“NOW has really increased its quality over the last few years,” he said. “Not only do they have a new facility, but they’ve upped their manufacturing practices and quality controls. You might wonder how much a label affects sales, but I see that some customers are certainly paying attention.”

“Consumers today are more concerned about the quality and safety of diet support products, so they are looking for assurances of adequate quality controls and testing,” said Levin, stressing that his company has always bought ingredients from reputable sources, but it’s going even further and taking a very proactive stance in ingredient sourcing—going beyond the basic testing requirements by devising advanced materials testing.

“NOW is proud of our contributions to the industry in the area of method development; in particular, freely sharing our published methods so that all can better assure the quality of raw materials,” he added. “Since we thoroughly test our materials and use collections of proven ingredients to achieve competent formulations, users are assured of getting products that do what is promised on our labels and in our advertising.”

And delivering on those promises are of the utmost importance, not only for the manufacturer, but most importantly for the retailer selling that product.

Marshall Chernoff, assistant general manager of Tunies, a 15,000 sq. ft. superstore that’s been serving its Coral Springs, FL community for 17 years, has seen customers with unrealistic expectations of what supplements can do. This is greatly due to the claims and promises delivered via internet marketers.

“Even though internet marketers compete with price by matching or in most cases beating retail prices, they can’t give the service and satisfaction customers get shopping in a store,” said Chernoff. “Customers can enjoy the honesty of speaking directly to someone about exactly what they’re getting.”

One of Tunies top weight management products, WEIGHLEVEL from Sprunk-Jansen (Petaluma, CA), was just introduced about eight months ago in the store, but Chernoff said he believes its success stems from its science backing as well as his staff’s honest approach to selling it.

“Weighlevel is an herbal mixture and the science behind it works. I tell people it’s not a quick cure where you’ll notice results in the first week—that’s how I sell it,” said Chernoff. “We judge a product’s success by repeat purchases and customer satisfaction—in particular with the weight loss category, a lot of products are bought once and the customer never comes back. I believe they come back for the Sprunk product because I’m up front and tell them it takes about a month to work its way into their systems. It’s pretty popular and those that stick with it keep coming back.”

Ulrik Breval-Carlsson, Sprunk-Jansen president, explained that WEIGHLEVEL contains four plants,Alchemilla vulgaris, Cuminum cyminum, Mentha longifolia and Olea europaea, which are well known in the traditional Greek-Arabic medicinal systems. These herbs have been used for treating obesity, gastrointestinal pain and inflammation and are reported to possess hypoglycemic, hypotensive, diuretic and antioxidant properties. Extracts from two of these plants have been shown to increase the basal metabolic rate, and based on earlier laboratory animal studies, the herbal combination was demonstrated to increase metabolism (calorie “burning”) in fat tissue, without side effects.

“At Sprunk-Jansen, our focus is on sustainable health. Rather than sell ‘magic pills,’ we sell supplements based on herbal wisdom that’s been known for generations. Our products work in concert with a healthy lifestyle to achieve weight loss goals in a timelier and still healthy fashion,” said Breval-Carlsson. “The online retailer communities succeed because they’re convenient, but there are many websites that break the law by taking gross liberties of language to promote a ‘magic pill.’ Further, brick-and-mortar retailers are superior product vetters—they’ve done the homework, selecting weight loss products from manufacturers they trust. They know they can stand by what is in the supplement, the label claims, the quality and the integrity.”

Empower Purchasers

Advertising plays a huge role in consumers’ choices when it comes to supplement shopping, in particular when it comes to weight loss. This has led to exorbitant claims promising results that are never delivered.

“Claims support, which really translates to having good, published science proving that your product works, is a major issue for weight loss companies,” said Scott Steil, president of Nutra Bridge (Shoreview, MN), supplier of 7-Keto and InSea2 weight loss ingredients. “Marketing companies need strong claims to help sell product and set consumer expectations. However, in today’s market, weight loss claims are being heavily scrutinized by many different organizations. In my opinion, this is a good thing that will help eliminate products and companies that create unhappy consumers and a negative perception of our industry.

“The key to future success of the weight loss segment for dietary supplements will be in building a partnership between ingredient suppliers, manufacturers, marketing companies and retailers,” Steil continued. “Suppliers need to invest significant resources in science and well-designed clinical studies. Manufacturers need to use ingredients that have a proven track record. Marketers need to set realistic consumer expectations and then deliver a product that meets or exceeds them. Retailers should be focused on selling products that can back up claims and help the consumers use the supplement as part of a healthy weight management program as well as set objectives that can be obtained.”

One suggestion offered by participants is for retailers, as they’re becoming versed in products and their ingredients, to educate their customers in navigating labels and identifying ingredients, which will help them move beyond wild claims and find products that should work for them.

“The more a person is exposed to a product or is educated on the health benefits of a particular ingredient, the chances that the person will buy the product increase,” said Nutricap’s Provenzano.

“Retailers should encourage consumers to research key ingredients on their own, and to discuss them with their health care providers so they make the right decisions for their own well being,” concurred Nutratech’s Green. The company maintains a website, www.nutratechinc.com, where the public can access virtually all of the scientific studies conducted on its patented, bitter orange, thermogenic ingredient, Advantra Z, and review the research for themselves.

Similarly, Nutra Bridge offers full training support and materials to any retailer for both 7-Keto and InSea2. This includes one-page product summaries, complete product overviews, published clinical trial data, frequently asked questions, product websites as well as in-person training sessions with sales and customer service teams.

And Pharmachem Laboratories, Inc. (Kearny, NJ), maker of patented and proprietary ingredients like Phase 2 Carb Controller™ ingredient (as found in Natrol’s Carb Intercept), has launched a consumer website, www.livesowell.com, which is also a suitable tool for retailers. The company conducts a national publicity campaign to educate consumers about weight management and its ingredients. In addition, the company has a complete, 600-plus page science dossier on its latest ingredient development, the Three Phases of Weight Control.

Retail Tips

Along with making customers more conscious of the ingredients that go into products, participants had a few other suggestions that could, in concert with the support materials offered, help increase weight management sales.

NOW Foods: “Retailers should segment this category and understand the differences between various types of products so they can adequately explain them to their customers,” said NOW Foods’ Levin. “Does the consumer need to cut appetitive in general or reduce stress-related eating in particular? Do they need to burn more fat or digest foods better? Do they need products to block absorption of carbs? Or are they looking for an all-in-one formula?”

NOW offers retailers an array of marketing pieces that can be used by both store employees and consumers. NOW Health Professors are complete write-ups on multiple products that can help with maintaining weight. The company’s website, www.nowfoods.com, is also a great place for information: “If you visit the site and search ‘weight,’ more than 230 articles come up intended to help the consumer learn more about healthy ways to reach their ideal weight,” said Levin.

Maximum Living: “Retailers can provide product samples and weight management promotions,” suggested Coppel, adding that her company offers retailers a free Nutrition Bites® floor display along with plenty of product samples and literature outlining an easy-to-follow weight management program. “Nutrition Bites are a nutritionally complete meal replacement product and natural appetite suppressant also known as the ‘Feel Full Energy Snack,’” she said. “Eight Nutrition Bites deliver 15g of GMO free soy protein along with other essential nutrients.”

Sprunk-Jansen: “Healthy weight loss is achieved with diet and exercise, so we suggest that retailers partner with a gym for a referral process,” said Breval-Carlsson. “You may want to create a club or rewards program in tandem with the gym or on your own to facilitate more than just buying weight loss supplements—make your store the lifestyle turnaround center.

“If the store is large enough, hold healthy cooking classes,” he added. “Invite health care practitioners who work with weight management to speak to your customers and bring in demos—just be sure to publicize it to the hilt.”

Sprunk offers presentations and demos to retailers, and provides weight management tips on its website, www.sprunk-jansen.com.

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