Manufacturers are working hard to introduce new delivery methods to answer the needs of both retailers and consumers.
When walking down an aisle of their local natural products store, consumers wouldn’t be thrilled if they were seeing the same products offered in the same delivery forms time after time.More likely, they want something innovative, efficient and convenient.
According to SPINSscan data tracking of the natural channel from June 2011, the largest single delivery dollar sellers are capsules and tablets, accounting for $148.5 million and $130.5 million, respectively. But their growth (3.9 percent and 4.4 percent) has been hampered by increasing sales of powders ($129 million), liquids ($102 million) and soft gels ($101.5 million).
This comes as no surprise to retailers around the country, such as Susan McLaughlin, director of corporate communications at the Vitamin Shoppe in North Bergen, NJ. “Innovation is very important in our industry. Having options gives customers more to choose from and can keep them engaged longer.Customers’ needs change over time and we want to make sure we have the options they are looking for.”
Breaking Tradition With Innovation
While the traditional delivery form for natural products has always been the pill, many consumers now prefer alternative methods. “The vast majority of supplements are still manufactured in pill form. In my mind this is unfortunate, since pills are simply not a very effective delivery form,” said Lisa Lent, founder and CEO of California-based Vitalah.“In addition to the fact that many people find the act of swallowing pills difficult or unpalatable, many of us simply do not break down pills efficiently, and thus do not fully absorb the nutrients contained in supplements.”
Tone Larsen, product development manager at Nordic Naturals based in California, argued that pills have in fact not fallen out of favor, but there has just been a strong, continuing demand for new and innovative products. This is especially true in the children’s market,” Larsen said, notinh that experts agree children need omega-3s, and that the safest, most reliable source of the omega-3 essential fatty acids EPA and DHA is a high-quality fish oil supplement.“However, getting kids to take fish oil can be challenging. That’s why innovative delivery systems like the emulsion technology used in our new Nordic Omega-3 Jellies is so important in meeting ongoing consumer demand for new ways to get kids to take their omega-3s.”
Nordic Naturals currently offers five different delivery forms for its omega-3 supplements: liquid, soft gel, effervescent, gummy and the new emulsionbased Jellies™. “Because of our commitment to innovation, we constantly investigate new techniques and formulations and monitor the latest research on consumer needs and preferences.As we find new opportunities to offer customers more options, we make every effort to bring them to market to meet their personalized nutritional needs,” said Larson.
Because many young children cannot swallow the traditional pill form of supplements, manufacturers had to find another way, added Lent. They found that by using sweeteners, colors and flavors, they could make chewable tablets—which became the traditional delivery system for children’s supplements. However, children are the least compliant with this delivery system, and parents are often leery of the flavorings, colorings and other additives. So more recently, gummies have grown as alternatives to traditional chewables, and powders that can be mixed into foods and beverages and be undetectable are also increasingly popular.“These can be good choices in some cases, but continue to present supplements as something that needs to be disguised in order for children to take them,” Lent said.
Rather than treating a multivitamin as something that has to be disguised as candy or hidden in foods, a steviasweetened effervescent multivitamin like Children’s Oxylent transforms their daily vitamin into a healthy beverage that satisfies their desire for a sweet drink, continued Lent. “Kids love the taste while parents love the absence of sugar, artificial sweeteners or colors. As any parent knows, even the most innovative delivery system is useless unless their child likes the taste, and kids love bubbly Berry Punch Children’s Oxylent.”
Liquids are another delivery form that continues to gain popularity among consumers. According to industry expert Julian Mellentin with New Nutrition Business, the liquid supplement market is already well established in Asia and South America, but the American market is increasingly following the trend. “The biggest growth opportunity is going to be in liquid forms,” she said, pointing out in the joint health market alone, sales of liquids have grown $100 million in the last three years.
Vitalah’s Prenatal Oxylent is popular among women, said Lent, as they do not have to swallow pills to get the nutrients they need for a healthy pregnancy.
An added benefit is that drinking an effervescent prenatal multivitamin every day also helps women stay hydrated during pregnancy and breastfeeding.“And, of course, the effervescent technology of Prenatal Oxylent is not only easier and more pleasant to take, but is also better absorbed than pills, as shown by published scientific studies—making it more effective at delivering the essential nutrients both mom and baby need for optimal health and wellness,” Lent said.
Further, according to Kellay Buckelew, director of sales for Georgia-based Cheiron Holdings, supplements appeal to customers based on three points: results, convenience and cost. “Striking a balance between these three points is the key.” As such, the company’s Heart Strong Gum™ contains resveratrol, which is absorbed directly into the bloodstream and straight to the heart.
This delivery method is common for cardiovascular drug delivery in medical practices and has huge implications for the supplement industry. “Chewing gum absorption (sublingual and buccal) can increase what we like to call ‘the supplement benefit ratio,’ or the amount of the supplement that is absorbed and provides benefit to the body,” said Buckelew.
California-based, Coromega also has been innovative in its delivery forms, offering its Coromega3 Big Squeeze, emulsified for superior absorption, containing 3,000 mg of fish oil per serving.The company’s first original formula was Coromega Omega3 Squeeze, an emulsified formula with 300 percent better absorption than traditional fish oil pills delivered in a single-serve, daily-dose packet. It has since expanded the line by developing four Squeeze flavors— one with added vitamin D—and has also created a Healthy Heart product that offers a daily-dose of omega-3s and CoQ10 in a similar squeeze packet, said Munyer.
Barlean’s Omega Swirl is another way consumers can get their omega-3 intake without having to swallow pills. “Gone are the days of plugging your nose or swallowing multiple large capsules.There will be on-going shelf growth with these revolutionary Omega Swirls because finally there’s a tasty alternative that is delicious enough for the whole family and even has mass population appeal for the first time ever,” said Andreas Koch, marketing director for the Washington-based manufacturer.According to Barlean’s, its proprietary Swirl technology creates a product resembling the taste and texture of a fruit smoothie—while significantly reducing the size of fish and flax oil molecules—allowing the oil to more efficiently pass through the intestinal wall and into the bloodstream.
A Need for Improvement
Retailers play an equally important role as manufacturers when it comes to educating people about the newer delivery systems that replace pills with a more effective way to take supplements, and providing sampling opportunities so that people can experience the difference for themselves. And in natural products stores around the U.S., alternate delivery forms are extremely important for a growing number of consumers, said Mark Stayton, sales manager/ supplement buyer for Martindale’s Natural Market, based in Springfield, PA. “If a category is congested with similar delivery, I will be more interested in a new delivery. For example, the fish oil category has many redundant products, and I may not need another fish oil capsule. If a strong distinction can be made with either a new manufacturing process or delivery, I will be likely to add it to our offering.”
In this industry, maintaining status quo in the innovation department is as good as going backwards. Manufacturers need to be constantly thinking of ways to improve products that will have greater appeal to retailers and consumers.
According to Mark Smith, vice president of sales, North America, for Coromega, the company saw a need for improving people’s health in a category that had not started its current growth trend. “The vast majority of Americans are deficient in omega-3, and the health ramifications of not having a sufficient level of this essential nutrient are innumerable.In bringing the formula to the market, we had to develop the squeeze packet as a way to keep the product stable and fresh, and 100 percent efficacious for its entire shelf life.”
The most successful advancements combine several aspects of existing ideas, noted Cheiron Holdings’ Buckelew. “Apple combined the familiarity and growing appeal of cell phones with the best aspects of their operating system (simplicity, style, convenience).We’re inspired by this and are bringing together the best aspects of many products (taste, effectiveness, convenience) and combing with the familiarity and broad appeal of chewing gum.”
Lent added research forecasts effervescence as the future delivery technology of choice. “Effervescence offers greater and faster absorption than pills, and absorption begins immediately— right in the mouth as users take their first sip. There is further published evidence that the CO2 bubbles produced when effervescent powder mixes with water also increase the absorption of nutrients across the intestinal wall,” said Lent.
Working With Retailers
Before they can get customers to keep coming back, retailers must understand What makes one delivery method more beneficial than another. In order to do this, open communication with manufacturers is necessary, be it in the form of educational literature, research summaries or retailer trainings, said retailer Stayton. “The support we recently received from Nordic Naturals, Country Life, Garden of Life and Himalaya was excellent. All were dinner trainings and went really well—our staff really loves to go to them.”
Retailers are a great barometer of customer demand and can spur companies’ innovation efforts, offered Cheiron’s Buckelew. “If we are developing a new product/delivery form, it is to solve a problem. We communicate the value simply by discussing the problem and how we solved it with the retailer.”
And according to Coromega’s Smith, the company communicates its innovation message to retailers and the importance of healthy omega-3 levels of at least 7.2 (meaning that 7.2 percent of the fatty acids in the blood are omega- 3s) through newsletters, e-mail updates and face-to-face discussions. “In addition, we use industry events like Natural Products Expo to further those discussions.Coromega was an early adapter of omega-3 testing, showing not only the change in omega-3 levels by taking Coromega daily, but also what healthy omega-3 levels mean in terms of health benefits for consumers.”
While new delivery systems are necessary to meet consumers’ growing needs, manufacturers have to be able to assure retailers that the new method will not cannibalize sales of an old delivery form still on the market. There is a fine line to walk, and manufacturers know it.
“New delivery systems are introduced to ensure that everyone gets the essential nutrients they need in ways that fit their lifestyle,” said Larsen. “Some current customers will find a new delivery system preferable, but our commitment to innovation stems from our desire to provide everyone with a product that meets their personalized nutritional needs. When we introduce new delivery systems, we reach people still in need of these essential nutrients. In an effort to fulfill our mission of correcting the global omega-3 deficiency, we must increase access to omega-3s by providing new delivery systems.”
“Pills aren’t going anywhere; it takes time to adopt new delivery methods and products,” added Buckelew.“Customers will still receive some benefit, so they’ll continue to purchase existing products. We focus on reenergizing a customer base and reaching tangential markets, not cannibalizing existing sales. Alternatively, retailers might want some cannibalization to happen if it results in a net gain of profits.”
Most retailers, however, welcome delivery innovation. “There really aren’t any drawbacks when it comes to new availability of products,” said retailer McLaughlin. “The Vitamin Shoppe health enthusiasts who work at our store are the most knowledgeable in the business and continually update their [information] so they can assist customers.Customers like to see new items because they are doing their own research all the time as well.”
Of course, educating on the many benefits and superior absorption of delivery technology is what ultimately drives demand and increases sales. A well-trained and well-educated staff is crucial to providing the best assistance and ultimately experiencing success.This should include the latest research, as well as the current regulations governing what claims can and cannot be made about supplements, said Lent.“Nothing is more fundamental to consumer confidence and demand than a well-informed staff. As the supplement industry continues to see strong growth across the board, and with such a wide variety of individual consumer needs, sales in one area need not detract from sales in another area.”
Delivery System for Probiotics Awarded U.S. Patent
Nearly three decades ago, Washington-based Nutraceutix started its business by producing bulk probiotic powders. Shortly thereafter, the company added finished product manufacturing including capsules, tablets/caplets and full turnkey production of bottle and labeled products, subsequently adding the production of advanced, patented delivery forms. The company has expanded rapidly, particularly in the last few years, and recently patented a delivery technology known as BIO-tract®. Now patented in 30 countries around the world, BIO-tract tablets/caplets offer vastly superior delivery of live probiotic organisms and other suitable ingredients to the human body than other delivery forms, according to Tim Gamble, the company’s president and CEO.
Unprotected, the vast majority of live probiotics entering the stomach won’t survive to reach optimal sites in the gastrointestinal tract. Powders, liquids, capsules, even cultured dairy products offer no real protection, losing most, if not all, of these sensitive organisms during passage through the stomach’s harsh environment.To overcome this obstacle, Nutraceutix has researched, developed and patented delivery technologies designed to protect the majority of a supplement’s probiotics from gastric acid, while providing optimal release of live organisms throughout the digestive tract.Designed to be easy to handle, package, store and consume, these technologies eliminate many of the costs and complications typically endured by brands, retailers and consumers seeking advanced probiotic dietary supplements.
Nutraceutix’s BIO-tract offers a variety of advantages, particularly when used with sensitive ingredients like probiotics, over other delivery forms including those without any functionality like plain capsule, or those with limited functionality like enteric coated products. BIO-tract caplets offer modifiable release profiles, ranging from basic acid resistance and post gastric release, to all day controlled release.
“BIO-tract caplets do not require post-processing like sprayed or coated products, they do not require the special packaging or careful handling these other types require,” said Gamble. “BIO-tract offers products a wealth of distinctive competitive advantages, and offers brands a consistent patented solution for a wide variety of products in their offering, simplifying the marketing message needed to draw in and retain consumers.”
