Growth in Large Companies
Gold: Martek Biosciences Corp. for sales growth of more than 150% from $45.5 million in fiscal year 2002 to $114.7 million in 2003 mostly as a result of sales of docosahexaenoic acid (DHA) and arachidonic acid (ARA) for fortification of infant formulas. Martek has licensing agreements with infant formula manufacturers (including Mead Johnson, Abbott Labs, Numico, Maabarot and Novartis) that together comprise over 85% of the U.S. and 60% of the worldwide infant formula markets. Martek stock also took off in 2003 by 167% from $25.04 at the close of 2002 to $66.76 on Dec 29, 2003.
Silver: NBTY for extending its industry leadership with sales growth of 24% and the acquisition of Rexall in 2003. "The Rexall acquisition
is indicative of our commitment to the wholesale segment, and we anticipate continued growth in revenue and market share," said NBTY Chairman and CEO Scott Rudolph in
announcing fourth quarter results. Wholesale sales grew 43% in 2003 (18% excluding Rexall)and accounted for $417 million of NBTY's total revenues of $1.2 billion. NBTY stock
jumped 51% in 2003 from $17.58 to $26.50.
Bronze: Dean Foods Co., for continued commitment to its nutrition industry holdings
in 2003. Sales have remained strong in the $9-billion dairy giant’s White Wave division (which it acquired in 2002) and in 2003 Dean acquired organic dairy leader Horizon Organic. Dean’s stock gained 34% from $24.73 to $33.20 in 2003.
Growth in Mid-Sized Companies
Gold:After four years in business, supplement manufacturer
Garden of Life has achieved national distribution and revenues in excess of $40 million. The company has maintained consistent year-on-year growth of over 150%, with 2003 revenues projected to increase more than 175%. Growth has been driven by a 38% increase in distribution and the introduction of several new products. In November 2003 the company sold its 1 millionth bottle of Primal Defense.
Silver: Europa Sports Products flexed its muscle, growing 30% for revenues of more than $78 million in 2003. Europa Sports has grown 40-50% annually since 1999, outpacing the 12% growth of the sports & weight loss segment. This fast-growing distributorship (sports supplements, beverages and weightlifting accessories) has locations in Charlotte, N.C.; Mesquite, Texas and Fresno, Calif.
Bronze: Since the company was formed by the merger of Amerifit and Medical Foods four years ago, Amerifit Nutrition sales have grown at a 32% compounded growth rate.
Estroven, the company’s leading brand, has grown five-fold since 1999, achieving the largest share in its category. In 2003, growth was fueled by the introduction of Estroven Extra Strength. The Estroven Menopause Monitor, an FDA-cleared device, was introduced in late 2003 and is expected to help drive Estroven brand sales to almost $50 million in 2004.
Growth in Small Companies
Gold: ChromaDex for growing revenues 125% in 2003 and expanding its number of employees from 7 in 2002 to 26 by the end of 2003. ChromaDex was established in 1999 to create reference standards and other quality assurance methods for the nutrition industry. The company has two laboratory facilities in the United States and more than $2 million in laboratory equipment.
Silver:Wisdom Natural Brands grew 65% in 2003 for sales of $6.6 million from SweetLeaf brand stevia products, Wisdom of the Ancients herbal teas, Wisdom Nutrition, Sweet & Slender natural sweetener and La Merced brand yerba mate. Wisdom Nutrition, a line of dissolving, taste-free and calorie-free supplements in packets, was launched in June 2003. Fiber Wisdom has been picked up by all GNCs in Singapore and Asia, as well as by the natural retail market in the United States.
Bronze: Beverly International, a marketer of nutritional bodybuilding products, has grown revenues 250% since October 2001, when the company introduced an educational program for its customer representatives. Throughout the year, reps take a series of 12 modules in order to provide clients with the best service and guidance on how to choose and use the right product to meet their health goals. Revenues were approximately $8 million in 2003.
Honorable Mention:
VitaminLab.com LLC, an e-commerce direct marketer of private label supplements, grew net sales 31% in the 12 months ended Aug. 31, 2003, the third straight 12-month period of growth over 30% for revenues approaching $1 million. Gross margins increased to 67% in fiscal 2003 from 61% in the year prior.
Honorable Mention:
After less than a year in business, Nature’s Thyme LLC closed 2003 at just under $1 million in sales. The company remained profitable while offering complete customer care to nutraceutical and botanical manufacturers without sacrificing price or quality. Nature’s Thyme is also moving into a new building and has added a representative in Virginia to handle Southern and West Coast regions.
Management Awards
Gold: Pharmavite LLC for category management initiatives that provide customers with business intelligence to increase sales of Pharmavite brands. Distinguishing Pharmavite’s category management process are customized data - including consumer-based information and personal consultation on how to apply it. For example, the Company’s Category Feature Impact Tool helps retailers grow category sales using historical sales and ad activity data. Proof is in the results: In 2002, category sales were flat, but Pharmavite brand sales increased by 10%.
Silver: Julie Smolyansky was thrust into the position of CEO of Lifeway Foods Inc. at age 28, when her father and company founder Michael Smolyansky died suddenly of a heart attack last year. She responded to the challenge with a series of bold managerial moves, including opening new distribution channels overseas and re-designing the company’s packaging (requiring new capital equipment). When Smolyansky took over as CEO, Lifeway had FY02 annual revenues of $12.2 million. In 2003, her first full business year at the helm, sales are expected to increase 25%, and stock price has tripled to $15 per share. Prior to her appointment Julie was the company’s marketing director.
Bronze:Integrated Marketing Group (IMG) became the first marketing agency in the United States to earn certification in the Federal Trade Commission (FTC) Advertising Compliance Course. The FTC has identified dietary supplement advertising as a key area of enforcement for false or unsubstantiated claims. Its Dietary Supplement Program launched a course to help professionals understand the laws and guidelines governing supplement advertising. IMG enrolled all of its employees in the program, which offered guidance in recognizing claims that can result in FTC action, and whether advertising complies with FTC guidelines in order to create marketing messages that sell effectively but still comply with the law.
Environment & Sustainability
Gold: Trout Lake Farm LLC for supplying organic botanical ingredients worldwide during its 30 years of operation. “The Farm” worked closely with the Washington State Department of Agriculture in the development of organic regulations. It has helped indigenous growers to apply sustainable farming practices, also providing them with a conduit to market. During the market downturn in the botanicals sector in the late ‘90s, The Farm remained committed to the production of high quality organic products at a time when other growers failed or moved out of the nutrition industry. Throughout its history the company has made charitable contributions, believing that stewardship of the community is as important as stewardship of the land.
Silver: Renaissance Herbs embarked on an organic farming project in Nepal, located on more than 250 acres in the Himalayas. This pristine environment is part of an ecosystem home to more than 1,000 native medicinal herbs. Renaissance will bring the latest good agricultural practices, soil sciences and IFOAM certified organic protocols to the country’s unique plant species and genotypes. The political situation in Nepal has left the country short on export opportunities, and by cultivating organically grown medicinal herbs Renaissance also helps to create economic benefits for the indigenous people.
Bronze: Thanksgiving Coffee Company for producing certified organic, certified fair trade shade grown coffees and supporting sustainable agriculture and fair labor practices. Its Carbon Neutral policy includes a biodiesel delivery fleet, reforestation by planting over 70,000 trees in Ethiopia to offset carbon emissions, composting (finished fertilizer is used on its organic heirloom apple orchard), environmentally friendly product purchasing , non-GMO food items, EnergyStar office equipment and recycled printer cartridges. The company donates a percentage of sales to 80 environmental and social justice non-profit organizations and is a member of 1% For the Planet.
Education Awards
Gold: Pharmaca Integrative Pharmacy for creating a program to educate pharmacists
about drug nutrient depletion and how to complement prescription medications with nutritional supplements. The company also introduced Rx Balance products formulated
to supply vitamins and minerals that people may need during prescription drug therapy. The initiative spurred growth in Pharmaca’s supplement sales. Top sellers are vitamin formulas for people taking prescription medicines for birth control, anti-depressants and high cholesterol.
Silver: Pharmavite manufacturer of Nature’s Resource herbs, for teaching consumers their Herbal ABCs. The company partnered with the American Botanical Council(ABC) to launch the labeling initiative, which addresses concerns about dietary supplement safety and promotes safe and responsible use. Easy-to-peel labels contain an in-depth, multi-page booklet with information reviewed by ABC experts for scientific accuracy. Booklets cite The ABC Clinical Guide to Herbs, as well as guidelines for safe and responsible use, potential interactions, notable research and links and additional product information.
Bronze: Sunrise Health Foods of Fresno, Calif. for offering retail business and consumer information on nutrition, herbs and spices. Throughout its 19 years, the retailer has reached out through business and personal contacts, newspaper articles and radio and TV sponsorships.
Efforts on Behalf of the Industry
Gold:NOW Foods for consistently and generously supporting industry organizations, including NNFA, AHPA, AOAC, DSEA, ABC and CFH. Industry leadership positions include the AHPA board, NNFA Compli and International committees, AOAC Dietary Supplements committee, Citizens For Health board, the CODEX delegation, the Natural Products Foundation board, and The Campaign to Label Genetically Engineered Foods. Sponsorships in 2003 include: NNFA Marketplace, Coalition to Save DSHEA Washington D.C. Rally, EU initiatives-Toxicology Forum and EU Food Supplements Directive Coalition with CRN, and the Campaign for Better Health.
Silver:Weider Nutrition International for raising awareness about prostate cancer. Weider’s Schiff brand teamed up with the National Prostate Cancer Coalition (NPCC) and helped share the message that, in addition to regular doctor visits, a proper diet including supplementation with nutrients such as lycopene, selenium and calcium D-glucarate can help men to take control of their health. WNI’s partnership with the NPCC helped provide free screenings to nearly 10,000 men as part of the Drive Against Prostate Cancer (America’s only mobile prostate cancer screening clinic).
Bronze:Brunswick Laboratories LLC for scientific excellence in the measurement of
antioxidant capacity. Brunswick refined and enhanced the oxygen radical absorbance capacity (ORAC) assay for measuring antioxidant power, transferring it onto a high-throughput microplate reader platform and developing assays for water-soluble and lipid-soluble antioxidants. Brunswick has filed a patent for its lipid-soluble ORAC assay. Drs. Ronald Prior and Guohua Cao developed the original ORAC assay while at the Jean Mayer USDA Human Nutrition Research Center on Aging at Tufts University.
Personal Service Awards
Gold: Debra Boyle, founder and president of Pro Organics Marketing Inc. and a pioneer of the Canadian organic movement. A staunch supporter of organic agriculture since the late 70s, Boyle founded Pro Organics in Vancouver in 1990 and quickly grew her one-woman business into a leading organic distributor. Pro Organics recently became publicly traded after merging with SunOpta Inc. Boyle is involved with the Certified Organic Associations of B.C., the Pro Organics Foundation and the Organic Trade Assn. She is the Organic Trade Assn.’s first woman president.
Silver: The late George E. Bergstrom III for his commitment to bringing the health benefits of methylsulfonylmethane (MSM) to the public. Bergstrom, a chemical engineer, co-founded Cardinal Associates in 1988 to provide MSM to the animal and human health markets. Through his vision and dedication, he established the specifications for foodgrade MSM, designed the manufacturing process and brought the ingredient to market. His philanthropy also resulted in bringing a free vitamin distribution program to Vancouver-area school children. Bergstrom died August 9, 2003, of vascular lymphoma at age 63.
Bronze: Kevin Lawrence for co-founding The Smart Health Project, a pilot program integrating nutritional education, regular exercise and sound nutrition into school curriculae in California. Lawrence, a fitness advocate and father of three, created the project after statewide test results found an alarming 76% of the student population were unable to meet minimum standards of health.
Investment in a Tough Climate
Gold:Pharmachem Laboratories for two acquisitions that doubled the size of its manufacturing capacity in a less-than-robust economy. In May, it acquired the AVOCA Division of R.J. Reynolds Tobacco Co., adding a 172,000-sq.-ft. botanical extraction facility and R&D capability in Merry Hill, N.C. In the fall, Pharmachem acquired Materials Processing Technologies (Paterson, N.J.), a 30,000-sq.- ft. FDA-, DEA-registered, cGMP facility that formulates and processes value-added ingredients for the nutrition and pharmaceutical industries. Pharmachem is also endowing a food science laboratory at the UCLA Center for Human Nutrition. The lab will explore the development of food products containing Phase 2 Starch Neutralizer.
Silver: Jarrow Formulas opened a 45,000-sq.-ft. contract manufacturing facility in 2002
(Jarrow Industries Inc.) and expanded its corporate facility 50% (8,000 square feet) in 2003 in a challenging economic climate. Jarrow Industries (Santa Fe Springs, Calif.) provides contract manufacturing and packaging services, as well as private label production.
Bronze:Alpha Packaging , a manufacturer of plastic bottles and jars for the nutrition and pharmaceutical industries, has enjoyed double-digit growth in each of the past five years due in large part to investing an average of 15% of annual gross sales into capital expenses. In 2002, Alpha moved into a $10-million renovated facility and purchased a manufacturing facility and stocking location on the East Coast. In 2003, the company invested $700,000 to build a tool shop for custom plastic packaging; $500,000+ in leak detectors and vision systems to improve color; $2 million in three blow-molding machines to meet peak demand. As a result of Alpha’s investments, gross sales for 2003 are forecast at $36 million, up 24%.
Product Merit Awards
BioEssentials for Motion Potion, a beverage containing 1,500 mg of glucosamine sulfate, B-vitamins, vitamin C and taurine to relieve joint pain.
Botanical Laboratories Inc. for a NatraBio brand product called Nico-Rx, a homeopathic, nicotine-free smoking cessation program. In 2003, Botanical Labs funded a clinical trial and preliminary results indicate that after using Nico-Rx for one month, 10% of participants in the study quit smoking. Also for the NatraBio brand Flu Resist, an intranasal, homeopathic, OTC flu remedy.
DMV International Nutritionals for introducing cysteine peptide, a novel ingredient supporting liver health. Cysteine peptide is a milk protein that naturally boosts glutathione levels. Glutathione is used primarily in the liver for detoxification.
Bio Nutritional Research Group for developing and distributing Power Crunch High Protein Crčme Filled Wafer Cookies. The cookies deliver 14g of Proto Whey Protein formulated for easy digestion, absorbability and low carbohydrates. Sales were at $1.7 million in 2003, with projected sales of $5 million in 2004.
Neptune Technologies & Bioresources Inc. for Neptune Krill Oil. Commercialized under the trademark NKO, the product is rich in phospholipids, omega-3 and antioxidants.
InterHealth Nutraceuticals for OptiBerry, a patent-pending, standardized berry extract formulated for optimum antioxidant potency and anti-angiogenic properties. The proprietary blend contains extracts of wild blueberry, strawberry, cranberry, wild bilberry, elderberry and raspberry seed. Also for Aller-7, a blend of seven standardized herbal extracts clinically tested to promote respiratory health and normal breathing during allergy season.
Pharmavite LLC partnered with the Olay facial moisturizer and cleanser brand, to create OLAY Vitamins. OLAY Vitamins are divided into two sub-lines: Beauty Nutrients for skin health and appearance and Wellness Nutrients for inner health and wellness. Consumer testing of 1,600 women indicated that seven out of 10 observed skin improvement after four weeks of use.
Nordic Naturals Inc. for fish oils. The company was awarded the gold medal for the Best Tasting cod liver oil in America from the American Tasting Institute and only uses non-endangered fish species from Norwegian waters.
Healthy Beverage Company for creating healthier alternatives to mass-market carbonated beverages. HBC’s first beverage, Steaz Green Tea Soda (with the USDA Certified Organic seal), was launched in January 2003. By late 2003 the company had $1 million in sales. Diet Steaz Sparkling Green Tea was launched in December 2003 and is the first certified organic diet drink sweetened with Hawaiian stevia.
PowerBar Inc. for Energy Bites, a hexagonal, bite-size energy product formulated to supply casual athletes with great-tasting, sustained nutritional energy. Energy Bites achieved 50% ACV within six months, faster than any other PowerBar product launch.
Farlong Pharmaceutical Inc. for LifeFlower, an herbal extract from Erigeron breviscapinus. LifeFlower increases cerebral blood circulation and brain-blood permeability and relieves symptoms caused by obstruction of blood vessels by lowering blood viscosity and expanding the arterioles.
Coral Inc. for coral mineral products under the brand names Coral Complex, the first powdered coral capsule product in the U.S., and Eco Pure Coral Powder. Coral Inc. harvests coral only from above-the-sea quarries in Okinawa, using ecologically sound practices.
Cargill Acidulants for Regenasure glucosamine HCl, the first commercially available glucosamine that is non-shellfish, non-animal, Kosher and produced in an ISO 9002/HACCP certified facility. Regenasure allows supplement firms to offer a vegetarian glucosamine product free of shellfish allergens.
Garden of Life for Living Multi, a vitamin and mineral supplement designed to enhance energy and performance, facilitate cellular detoxification and reduce oxidative stress. The company is investing over $500,000 to support clinical studies. Preliminary pilot results revealed an 18.5% reduction in total cholesterol in patients taking Living Multi for 60 days. The level of oxidative stress in their blood was decreased by an average of 26.3%. Living Multi is created using the proprietary Poten-Zyme process.
Rocamojo Inc. for Rocamojo, a 100% organic roasted soy coffee alternative, and Rocamojo Blend, a 50% organic roasted soy and 50% certified organic gourmet coffee. The company buys its beans through Growers First, a socially and environmentally aware coffee bean growers’ association.
Pita Products LLC for Pita-Snax and Pita Chips. Pita-Snax brand pita puffs come in five flavors and contain no saturated fat, trans fats, added sugar, cholesterol or calories. Pita Chips come in White Cheddar, Jalape.o & Cheddar, Honey & Wheat, Sun Dried Tomato & Basil and Sea Salt. Pita Products LLC was awarded the Best in Show Award for the quality and variety of their Pita Chips by the American Vegetarian Assn. at the 2003 Natural Product Expo East.
CreAgri Inc. for Hidrox, a patented form of the polyphenol hydroxytyrosol, made using an environmentally friendly process called Integrale. The patented process removes the pits from the olives before processing, thus, what was once waste matter can now be fully utilized for its health benefits. CreAgri uses 100% organic olives, and the process is natural and solvent-free.
Pliva Fine Chemicals, a division of Pliva Pharmaceuticals Industry Inc., for a stable, granulated SAMe for direct compression or encapsulation. All stability data has been according to ICH guidelines. The product has been manufactured at Pliva’s FDA inspected facility in Croatia under cGMP and drug manufacturing standards.
Congratulations to the 2003 winners. NBJ encourages all interested companies to
participate next year.
NBJ solicited the industry via email, website and word of mouth for nominations for the NBJ awards. Awards were determined by an internal committee of NBJ staff and NBJ editorial advisory board members. The 2003 NBJ awards will be presented to attending companies in a special ceremony at the NBJ Newport Summit in San Diego in July 2004. Awards disclaimer: Company audits were not conducted to verify information or claims submitted with nominations.
