Good For What Ails Them

Americans are visiting their doctors less frequently and turning to store brand vitamins and supplements to help stay healthy and active.

Do consider offering specialty vitamins and supplements to differentiate yourself from the competition.

In this uncertain economy, consumers are making plenty of sacrifices to save money — from fixing dinner at home instead of dining out to renting a DVD instead of going to the local cinema.

Consumers also are visiting their doctors less frequently and turning to vitamins and supplements to help stay healthy and active, says Jason Provenzano, president and founder of Nutricap Labs, Farmingdale, N.Y.

"Due to rising healthcare costs and high unemployment rates, people have less disposable income than ever before," he says.

This reality could explain why sales of vitamins and supplements were so strong during the 52 weeks ending Sept. 4. Data from Chicago-based SymphonyIRI Group show dollar and unit sales increases in every subcategory of vitamins and supplements — both overall and in private label.

Go beyond NBE

With consumers' increasing acceptance of store brands, retailers have an excellent chance to differentiate themselves with their own-brand vitamins and supplements, Provenzano says.

Gary Pigott, senior vice president, sales and marketing for Miami Lakes, Fla.-based Mason Vitamins, agrees, noting that retailers are looking beyond basic vitamins and supplements and rolling out more specialty products.

"They're offering less NBE — Centrum, One-A-Day, Osteo Bi-Flex — and trending more to unique formulations within the categories that make sense," he notes. "They're taking a page from GNC's SKUs."

Within vitamins, retailers are starting to introduce store brand multivitamins that contain dehydroascorbic acid, which helps promote healthy brain function and fetal development, and higher levels of vitamin D, Pigott says.

Kate Stueber, marketing manager for Sparta, Wis.-based Century Foods International,

also sees growing demand for vitamin B complex and E products, as well as vitamin combinations aimed at bone and joint health.

Don't neglect to educate your staff so they can answer any questions customers might have about a particular private label vitamin or supplement.

And on the supplement side, retailers are introducing products that support healthy brain function, Provenzano says.

"People are working longer hours than ever before," he explains. "In order to improve productivity, energy levels and focus throughout the day, people are turning to supplements that support brain health and energy to keep them going."

People also are gravitating toward supplements that promote a good night's rest, Pigott notes, adding that his company offers a number of natural sleep aids for retailers' private label programs, including 1-tryptophan, melatonin and valerian root extract.

And supplements that aid digestion are of high interest, too. Patrick Kuruc, strategic account manager with National Enzyme, sees the popularity of digestive aids such as probiotics and digestive enzymes increasing, especially in sports nutrition products.

"Companies are looking for a competitive edge that differentiates their protein product in the marketplace," he says. "If you can increase the bioavailability of amino acids without affecting taste or appearance of a product, at minimal cost, then you have a home run."

Design for delivery

It's not enough to offer a quality product, though — retailers also have to make sure the product comes in an easy-to-use delivery system. At the moment, demand for gummies remains strong for both adults and children, Provenzano says.

Do make sure your gummy vitamins and supplements have a desirable flavor profile.

But Demetrius Bledsoe, director of sales for National Enzyme, warns retailers that if they're going to develop a private label gummy vitamin or supplement, they should make sure it tastes good — otherwise, consumers won't make a second purchase.

"The flavor profile is very important when you do gummies," he says.

Effervescent powders also have been growing in demand, Stueber says.

"Effervescent powders have been popular in Europe for years," she explains. "We're starting to see more distribution in the U.S., but not all retailers are taking advantage of the success of these fizzy supplements. Century Foods offers a full product line of effervescent vitamin supplements, allowing retailers to capture sales from the large population of consumers [who] have issues swallowing tablets and capsules."

For example, Century Foods' Essence C is an effervescent powder that aids in immune system support. Its four flavors — Lemon-Lime, Orange, Raspberry and Tangerine — are available in boxes containing multiple 7.5-gram pouches.

Speaking of pouches, Bledsoe notes that they are particularly popular when it comes to powdered vitamins and supplements — consumers love their portability and ease of use.

Consumers also love the portability of smaller package sizes (2-inch by- 2-inch and 2-inch by-3-inch) for tablets and capsules, Bledsoe says. And he points to extended-text labels as another area of packaging innovation. These labels allow retailers to provide consumers with additional product information and quick-response codes that connect to a webpage with the scan of a smartphone.

Keep 'em informed

Bledsoe stresses how important it is for retailers to provide their customers with as much information about a product as possible — especially the benefits it provides.

"Whether it be on the label or [on] floor displays at the point of purchase, you really need to express how the customer's going to benefit by using your product," he says.

It's also critical for retailers to keep store personnel well-informed and educated, Kuruc says — employees should be able to answer any questions a customer might have about a particular store brand vitamin or supplement.

Don't forget to cross-merchandise probiotic/ digestive aid supplements with dairy products and your multivitamins with breakfast bars.

"A well-trained and educated staff with supporting educational material will increase the bottom line," he emphasizes.

And cross-merchandising always is an effective way for retailers to sell more private brand vitamins and supplements, Provenzano says. For example, retailers could merchandise a digestive enzyme and probiotic blend with yogurt, and multivitamins with breakfast bars.

The arrival of cold season also provides retailers with a number of cross-merchandising opportunities, Stueber says.

"A great way to please the ailing customer is to make their shopping trip efficient and cross-merchandise vitamins with bottled water," she points out.

Look What's New

Minneapolis-based Supervalu's Equaline Fiber Supplement Powder is a 100 percent natural product that is said to be an easy, convenient way for consumers to add fiber to their diet. Consumers may add the nonthickening powder — which is sugar-free, gluten-free, flavor-free and grit-free — to almost any soft food or beverage. It retails in an 8.6-oz. canister.

New from Minneapolis-based Target is up&up Fiber Gummy Supplement. With 5g of fiber per serving, the product is said to be great-tasting and an excellent source of fiber. It is available in peach, strawberry and blackberry flavors and retails in a 90-count recyclable PET bottle.

Source: Mintel's Global New Products Database

Supplements under Scrutiny

Daniel Fabricant, an expert on drugs made from natural substances who came to the FDA in February to head the agency's Division of Dietary Supplements, said he will be using his knowledge to improve supplement manufacturing practices — part of an overall effort to ensure dietary supplements are safe for U.S. consumers.

"My goal is to put a robust safety program into practice," Fabricant said in an online Q&A that appears on FDA's Consumer Updates page. "The Dietary Supplement Health and Education Act (DSHEA) was passed, but there are parts of the law that still need to be fully implemented — like creating a compliance plan for new dietary ingredients and furthering the relatively new 'good manufacturing practice' regulation."

He added that "a very big priority is to crack down on spiked 'lifestyle' products by examining those that are on the market and contain weight loss or sexual enhancement drugs." For example, he said, a number of spiked sexual enhancement products promise to work within 20 to 45 minutes.

"When we see a product that makes claims above and beyond what a dietary supplement might — do above supporting health — and within a time frame of a few minutes, it tips us off that we might have a spiked product," Fabricant noted.