April 2001: Direct Marketing in the Nutrition Industry I

MLM, Internet and TV Sellers Preach New Gospel of Direct Selling

In this 24-page issue, NBJ examines the shift in distribution dollars as direct marketers struggle to obtain and retain new customers.

Excerpt from overview….

According to NBJ research, non-retail or direct sales channels accounted for only xx% or $x billion of the total $49.5-billion U.S. nutrition industry in 2000. Understandably a very high percentage of natural/organic foods and functional foods are sold at retail stores, but fully one-third of supplements and nearly half of natural personal care products are sold outside traditional retail channels.

Whereas growth of nutrition sales in retail channels has been around x% each of the past two years, direct channels have varied considerably. In 2000, nutrition industry sales over the internet leapt xx% from a still-small base to reach $xxx million and practitioner sales grew xx% to pass $x billion, but MLM sales growth was -x% in 2000. Mail order grew x%, with flat sales in the catalog segment balancing strong growth in the direct response TV channel....

Following chart is one of the many detailed data breakdowns presented in this issue... copyright 2001, Penton Media Inc.



TABLE OF CONTENTS:

Overview: The direct sales channel accounts for one-third of U.S. supplement sales, and the creativity of marketers continues to result in new business................................................................. 1-4

Weight-loss product Chitosol logs an estimated $200-$300 million using infomercials and direct response television...................5-6

Metabolife makes a unprecedented move from MLM into retail and maintains its       half-billion-dollar sales volume........6-7

Sierra Life Sciences chooses direct marketing as the ticket to pain product sales……………8

Multilevel marketing is a major contributor to nutrition industry revenues, but lagging sales and competition have forced changes in business models.......................................................... 9-11

NBJ profiles leading supplement MLM firms: Shaklee changes its compensation plan, Numico merges Enrich and Rexall Showcase, Herbalife resets after the death of its founder, and Nutrilite invests for the future.............12-15

Shopping channels offer strong sales as evidenced by QVC and Nutrition 21…….16-17

Internet sellers Drugstore.com and HLNT Networks, two survivors of the internet bubble, recraft their approach............17

NBJ Stock Reporter: NBJ Index rises in shaky start for 2001 on Wall Street.....21-23

Companies Featured Include:
Alladvantage.com , Alticor.com, Amazon.com, America’s MLM Consultants, Amway, Blue Sky Natural Beverages, Carrington Labs, Chai-Na-Ta, Climate Neutral Network, Cloward and Associates , Direct Selling Association, Drugstore.com, Enforma Natural Products, Enrich International, Gaiam, Galaxy Nutritional Foods, Garden State Nutrition, Gardenburger, GNC, Gum Tech International, Hansen Natural, Healthcentral.com, Herbalife International, HLNT Networks, Horizon Organic, ImagiNutrition, Johnson & Johnson, Life Plus, Lifetek, Mannatech, Melaleuca, Metabolife, Natrol, Natural Balance, Nature’s Sunshine, NBTY Inc, Now Foods, Nu Skin, Nutrilite, NutriPeak.com, Nutrition 21, Odwalla, Omni Nutrceuticals, Optimal Lifestyles, Pharmanex, Pulse Information Network, Quixtar.com, QVC, Rbid.com, Rehnborg Ctr Nutr & Wellness, Rexall Sundown, Royal Numico, Shaklee Corp, Sierra Life Sciences, Tucker Anthony Sutro, Unicity Network, USANA Health Sciences, Vanson, Vitacost.com, Vitaminshoppe, Weider Nutrition International, Whole Foods Markets, Wholehealth Network, Wm. Wrigley & Co., Yamanouchi Pharmaceutical 



BI 04.01$120.00

2000 Nutrition Industry Revenues by Direct Channels - chart 84
1997-2000 Product and Channel Sales Matrix - Chart 4

 



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