About the NBJ Awards: During October 2006-December 2006, NBJ solicited the industry via email, website and word of mouth for nominations for the NBJ Business Achievement Awards. Awards were screened, reviewed and finally determined by an internal committee of NBJ staff and editorial advisory board members. The 2006 NBJ awards will be presented in a special ceremony at the NBJ Newport Summit July 18-20, 2007 at the St. Regis Resort, Laguna Niguel, Calif. Awards disclaimer: Company audits were not conducted to verify information or claims submitted with nominations. NBJ does not endorse the products or services and makes no representations or warranties as to the accuracy, completeness or any other aspect of the information contained in submissions and nominations used in the NBJ awards.
Growth in Large Companies
Gold Medal: Glaceau, the maker of vitaminwater, for continued growth and closing a deal with The Tata Group in September 2006 that valued the company at $2.2 billion. Glaceau stated that compound annual growth has been 200% since inception in 1996, and the company now sells 5 million bottles a day. NBJ estimates overall growth in 2006 was about 60%, with wholesale sales reaching $350, according to published reports. Glaceau rapidly increased mass market sales in 2006 reporting 280% growth in drug stores, 100% in grocery and 130% in convenience, according to IRI data provided by Glaceau. The company attributed these figures to new distribution, the introduction of 12-oz. bottles into drug stores (CVS in particular) and grocery, and the repackaging of smartwater. Indian conglomerate Tata (whose $22 billion in revenues in 89 companies is equivalent to 3% of India's GDP) bought 30% of the company previously owned by equity investor TSG Consumer Partners. After the deal, Glaceau CEO Darius Bikoff said he aims for the company's valuation to reach $10 billion within five years.
Silver Medal: Kashi for continued growth, innovation and culture retention in the six years the company has been owned by Kellogg. According to SPINS data, Kashi sales grew 34% to $240 million in FDM channels and 29% to $33 million in natural supermarkets in 2006. Kashi attributes success in 2006 to consumer use and expanded retail presentation.
Bronze Medal: Kraft Foods for wading against the ebbing tide of low-carb with its South Beach Diet line of products, first introduced in October 2004 and almost doubling in sales in 2006 to more than $100 million. South Beach branded products include frozen entrees and pizzas, wraps, cereal, bars, snacks, dressings and sauces. Kraft also is using South Beach Diet recommended buttons on some of its other brands like Boca, fat-free Singles cheese slices, Oscar Meyer and Planters.
Growth in Mid-Size Companies
Gold Medal: CytoSport Inc., the maker of Muscle Milk, for growth of 78% in 2006 and breaking the $100-million wholesale sales barrier. The company cited an increase in market penetration in all areas, led significantly by its confirmed strength in specialty retail channels. CytoSport also expanded production capacity at its corporate facility to over 150,000 square feet. Growth is expected to continue in 2007 with the launch of Muscle Milk Light and Muscle Milk puddings and bars, in addition to line extensions of the Mighty Milk children's brand.
Silver Medal: Bodybuilding.com for surging 38% to $65 million in sales in 2006 compared to $48 million in 2005. Average growth rate over the last three years has topped 34% to the top line and 46% to EBITDA. The company attributed its performance to a full content website and excellent customer service, among other things. This year the etailer launched BodySpace.com, where health aficionados can compare notes with people of similar interests. In June 2006, Bodybuilding.com merged with Milestone Partners, a Philadelphia-based investment firm.
Bronze Medal: Europa Sports Products for 26.5% growth in 2006 compared to 2005, ending the year at $126 million—well ahead of its original goal of $100 million. Founded by CEO Eric Hillman and COO Jeff Compton in 1990, Europa is a leading distributor of sports supplements, beverages and weightlifting accessories. It has locations in Strongsville, Ohio, Charlotte, N.C.; Mesquite, Texas and Fresno, Calif. for a total of 214,000 square feet of warehousing. Europa, which has over 200 employees, is an authorized distributor of more than 150 product lines and 3,700 SKUs.
Growth in Ingredient Suppliers
Gold Medal: Stella Labs for an ambitious growth strategy leading to rapid expansion in the challenging herbal market. In 2006 Stella grew 600% in 2006 to gross sales of $12 million. In the last two years, Stella has opened satellite offices in California, Florida, Oregon and the U.K. Stella attributed its success to educating customers about quality versus price. Recent company highlights include a Natural Products Award from Nutritional Outlook for research and testing of South African Hoodia, and the introduction of a 10:1 pharmaceutical-grade extract of Cha'de bugre from Brazil. The company was acquired several years ago by Craig Payton and investors.
Silver Medal: Unigen Pharmaceuticals, a developer and supplier of proprietary, plant-derived ingredients, for 84% growth in 2006 leading to year-end sales of $22.3 million. This followed 72% growth in 2005; and sales are projected to exceed $30 million in 2007. Unigen said it has a unique licensing model which protects partners in multiple channels of distribution, including nutrition, functional foods, beverages, cosmetics, direct sales and partnerships with pharmaceutical companies in drug lead discovery. Unigen is part of the vertically integrated ECONET group of companies. Together with sister company Unigen Korea, Unigen owns over 100,000 square feet of research labs, employs more than 65 scientists and holds 155 international patents.
Bronze Medal:
Ingredient supplier DNP International for a 2006 sales increase of 82%, highlighted by a December increase of 104% to end the year with revenues exceeding $30 million. In 12 years, DNP has grown from a company that sourced only citric acid into a supplier powerhouse distributing more than 3,000 products. Strategic partnerships and exclusive distribution rights forged with customers and vendors contributed to 2006 growth, as did restructuring and reorganizing—from prices to products to personnel. Initiatives included upgrading payment options and catering to companies both small and large; segmenting customers based on history and relationships; and improving customer services with more value-added options.
Growth in Small Companies: Food
Gold Medal: Bear Naked Inc. for growth of more than 160% in 2006. The maker of packaged, all-natural granolas benefited from expanded distribution, new product offerings and expanded product lines, in addition to broadened sampling and marketing efforts to surpass $20 million in wholesale sales. Growth was particularly strong in the mass market, with added distribution in Sam's Club, Target, Publix and Kroger. Distribution also expanded in Whole Foods and Costco, and the brand is in the test stage with BJ's and Walgreens.
Silver Medal: Endangered Species Chocolate (ESC) for tracking $20 million in sales in 2006, up 150% from $8 million the year prior, having gained entry into several large retailers including The Vitamin Shoppe, Kings Supermarket, Safeway, Albertson's, Ahold, Kroger and Target. In September ESC was ranked the leading natural chocolate in all seven U.S. regions, where its growth ranged from 25-65%, and has nine of the top 10 selling natural chocolate bars, according to SPINS. ESC produces all-natural and certified organic chocolate products using ethically traded, shade-grown cacao.
Bronze Medal: Izze Beverages for strong growth in 2006 and completing a transaction with PepsiCo in a deal reported to be worth $75 million for the fizzy natural juice company. SPINS reported 180% growth to $12 million in mainstream FDM channels in 2006 for the distinctly packaged beverages, and 50% growth to $5 million in natural supermarkets. Izze attributed some of its 2006 growth to the recent penetration of large supermarket chain Publix.
Growth in Small Companies: Supplements
Gold Medal: iSatori Technologies, a maker of sports nutrition and weight management supplements, for 170% growth in 2006 for sales approaching $20 million. iSatori products are now distributed in over 31,000 retail outlets throughout North America. Brands include LeanSystem 7, MX-LS7, Curvelle, H+Blocker and Energize. The company was also nominated as a finalist for the Better Business Bureau's Golden Torch Award for Business Ethics, and owner Stephen Adele was a finalist for Ernst & Young's 2006 Entrepreneur of the Year.
Silver Medal: Genesis Today for tremendous growth in retail sales in 2006. Data from SPINS shows 700% growth to more than $4 million in natural supermarkets. Genesis Today products focus on internal cleansing, liquid botanicals (goji, noni, mangosteen) and a line of condition-specific formulas in pill and liquid form. Genesis Today was founded in 2001 by Dr. Lindsey Duncan, who previously built up the Home Nutrition Clinic in Santa Monica, Calif. and founded the supplement company 4Health, which went public in 1993 and changed its name to Omni Nutraceuticals before being acquired by Irwin Naturals in 1998.
Bronze Medal: Trace Minerals Research for growing sales by 42% to $10 million in 2006 and expanding its number of employees by 30%. Founded in 1969, Trace Minerals markets and distributes liquid dietary minerals harvested from Utah's Great Salt Lake. The company reported a 50% increase in the number of its products carried at major national health food stores such as Wild Oats and Whole Foods. In 2006, Trace Minerals added seven new items, including four fruit-based supplements: Ultra Mangosteen, Acai, Goji with ConcenTrace and Ultra Goji.
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