Dieters, baby boomers drive dietary supplement sales in drug

Drug Store News, June 21, 2004 by Michael Johnsen

For all intents and purposes, sales of nutritional supplements, including diet aids, seem to be on the upswing again, growing 3.8 percent to $233.6 million in drug stores for the 13-week period ended April 17, according to ACNielsen sales data.

And there appear to be two different customers driving that trend--dieters and baby boomers--though there clearly is a great deal of overlap between the two.

First, despite all of the hoopla surrounding the low-carb craze--or maybe even because of it--diet aid pills remain a booming business for the drug channel. Ephedra may be gone, but consumers are still clamoring for diet aids like TrimSpa and MuscleTech's Hydroxycut. To be sure, neither contains ephedra any longer. But there were concerns that dieters would abandon the diet pill category, particularly thermogenic herbals, in favor of structured diet plans, such as Atkins or the South Beach Diet--or even Slim-Fast or Weight Watchers.

Of course, it couldn't have hurt when TrimSpa hired ex-Playboy model and reality-TV laughingstock Anna Nicole Smith, who lost 69 pounds using the company's TrimSpa X32, as a company spokeswoman. Smith currently is conducting a world tour promoting TrimSpa, bringing added visibility to the hot-selling diet brand.

Driving a second segment within nutritional supplements is the aging baby boomer base that continues to drive new customers to the dietary supplement aisles in search of that perpetual fountain of youth. Based on sales, it appears they're looking for it in joint health products like glucosamines and chondroitins (and soon, possibly, a new ingredient called microLactin). They also are looking for it in heart health, noted Doug Jones, corporate communications manager at Pharmavite. There are some very specific segments that are driving the growth in the category right now. Fish oil is up [tremendously]; CoQ10 is another, ingredient that's up and that's a high-dollar item, he said.

On the other hand, one-time popular supplements like coral calcium--which experienced a starburst of growth last year--are beginning to fade. Sales of coral calcium are beginning to lag, Jones observed. It was the buzzword last year, but we re seeing in natural health channels significant declines. Tvoically, the natural health channel is a good indicator for supplement sales trends in mass.

Nature's Bounty, after acquiring the leading glucosamine/chondroitin product Osteo Bi-Flex with its purchase of Rexall Sundown, will launch VitalJoint at the National Association of Chain Drug Stores' Marketplace conference. VitalJoint contains microLactin, a trademarked concentrated milk protein. MicroLactin, which is 90 percent lactose-free, works by helping to prevent inflammation around joints and can be used in conjunction with glucosamine and chondroitin. According to microLactin manufacturer Humanetics Corp., users will begin feeling increased flexibility and quicker joint recovery within two weeks.

Shipping this month, VitalJoint will be offered at a suggested retail price of $19.99. The 60-caplet offering makes for a half-month supply. Nature's Bounty will promote VitalJoint through appropriate consumer print media venues initially, in an attempt to develop some brand equity, before considering an extensive television campaign similar to the Frankenstein commercials shot for Osteo Bi-Flex last year.