Diet gains ground, despite ephedra issues

Drug Store News, May 19, 2003

What a difference a year makes. Last year in this space Drug Store News touted the incredible growth curve of ephedra-based products in 2001. And though the growth continued in 2002 for some of these brands, the volume-leader in the category Metabolife watched sales plummet last year, suggesting that all the bad press has finally caught up with this ingredient. Even if regulators stop short of pulling it from the shelves altogether, certainly, the bloom, as they say, is off the rose--or, ma huang-flower, that is.

Two of the three diet aid tablets that generated the most incremental growth contain ephedra, Cytodyne's Xenadrine RFA 1 and MuscleTech's HydroxyCut. But the biggest gainer in tablets came from an ephedra-free offering, Patentlean.

And with the number of suppliers and retailers getting out of the ephedra business following news that Major League Baseball's Stephen Bechler's death was linked to his use of the ingredient, ephedra-based products don't figure to drive the diet aid tablet business much longer.

This represents an incredible opportunity for retailers in the diet aid business-customers are going to be looking for alternatives; and drug chains, by virtue of the presence of the pharmacists and the counseling they provide, will have the edge over other retailers.

As much as Americans are prone to the quick-fix sell found in a diet aid tablet, Unilever's Slim Fast meal replacement options certainly have justified the larger realestate many drug stores afford those types of products. Indeed, Slim Fast's launch of its Meal Options line of products-which communicated more clearly to the consumer the Slim Fast dieting program and its reliance on nutrition versus starvation-brought in the most incremental dollars last year of any dieting product.

TOP 10 BRAND IN DRUG

                                            $       %
Brand/segment                            sales *  change

Metabolife 356 - candy/tablets            $51 .8  -22.6%
Ensure - liquid/powder                      31.6    7.7
Slim Fast Meal Optians - liquid/powder      25.2   NA
Ultra Slim Fast - liquid/powder             24.8  -49.0
Stacker 2 - candy/tablets                   20.4  120.0
Xenadrine RFA-1 - candy tablets             19.9  160.5
Ensure Plus - liquid/powder                 19.6   -3.4
Patentlean - candy/tablets                  18.4   NA
Hydroxycat - candy/tablets                  18.2  623.4
Hollywood Celebrity Diet- liquid/powder     14.3   10.0

Source: Information Resources Inc. for 52 weeks ended Dec. 29

* Sales in millions

TOP 10 GAINERS IN DRUG

                                           $       %        $
Brand/segment                           sales *  change  change *

Slim Fast Meal Options - liquid/powder    $25.2   NA        $25.2
Patetlean - candy/tablets                  18.4   NA         18.4
Hydroxycut - candy/tablets                 18.2  623.4%      15.7
Xenadrine RFA-1 cand tablets               19.9  160.5       12.3
Stocker 2 - candy/tablets                  20.4  120.0       11.1
Carbalite - snack bars                     10.8  828.0        9.6
Xenadrine EFX - candy/tablets               7.4   NA          7.4
Slim Fast Snack Options snack bars          5.9   NA          5.9
Ensure Glucema - liquid/powder              9.7  142.2        5.7
Natures Baunty Body Success                 4.3  425.6        3.5
- liquid/powder

Source: Information Resources Inc. for 52 weeks ended Dec. 29

* Sales in millions

DIET/WEIGHT LOSS SCORECARD

                                           Total F/D/M *           Drug
                                                                  stores

Category/                                $         % chg.        $
segment                               sales **   vs. yr. ago  sales *

Weight control - liquids and powders  $1,022.9       6.1%     $231.2
Weight control - candy and tablets       347.2       4.8       229.4
Snack bars (1)                         1,643.3      19.0       139.3

                                       Drug stores   Drug chains
                                                         only

Category/                               % chg.       $
segment                               VS. yr. ago  sales **

Weight control - liquids and powders     11.5%     $197.6
Weight control - candy and tablets       18.0       196.1
Snack bars (1)                           28.9       123.8

                                       Drug chains
                                          only

Category/                               % chg.
segment                               vs. yr. ago

Weight control - liquids and powders     11.9%
Weight control - candy and tablets       16.8
Snack bars (1)                           29.7

Source: Information Resources Inc. for 52 weeks ended Dec. 29

(1) IRI tracks sanck bars as part of consumables

* Total F/D/M excludes Wal-Mart

** Sales in millions