Help Them Help Themselves

With consumers visiting the doctor less often and turning to vitamins and supplements to stay healthy, store brands have opportunity for growth.

Although the American economy has fallen on tough times in recent years, the vitamins and supplements category has been doing quite well. "Vitamins and Minerals - US" — a December 2011 report from global research firm Mintel — says the $12 billion market for vitamins and minerals grew 28 percent from 2006 through 2011, as an aging U.S. population looked to these products to maintain good health and prevent disease.

"The struggling economy has worked to drive sales within the market, as Americans seek out lower-cost alternatives to doctor visits amid an environment of higher co-pays and rising healthcare premiums," the report states.

In fact, data from Chicago-based SymphonyIRI Group show dollar and unit sales growth in every total vitamin and supplement subcategory (within U.S. supermarket, drugstore and mass merchandise channels, excluding Walmart) during the 52 weeks ending Feb. 19. (See the table, p. 38.)

However, the store brand side didn't fare as well during the same period. Retailers will need to step up product development and marketing efforts if they are to grow sales here.

Go with the classics

As far as where growth is occurring in vitamins and supplements, little has changed in recent times, says Jane Drinkwalter, vice president, sales with VitaCeutical Labs, a division of Irvine, Calif.-based Nexgen Pharma Inc. For example, vitamin D continues to do well, she says.

According to a 2009 study of more than 6,000 children by researchers at Albert Einstein College of Medicine of Yeshiva University, seven out of 10 U.S. children have too-low levels of vitamin D. A number of other reports attribute vitamin D deficiencies in both children and adults to less-than-adequate exposure to sunlight (the body is able to synthesize vitamin D when sun exposure is adequate.) And since many consumers do not get an adequate amount of vitamin D from their foods, vitamins can help.

"Other vitamins that are showing promising sales growth are vitamin K, which is being added to calcium supplements to increase absorption, and vitamin B, which is marketed as helping to increase energy," the report adds.

On the supplements side, Drinkwalter says whey protein powders and omega 3 products continue to see growth.

So do probiotics, notes Connie Falkenstein, RD, MS, MPH, director of marketing with Eden Prairie Minn.-based UAS Laboratories Inc. She says the probiotics segment is the fastest-growing segment of the U.S. supplement market, according to some studies.

"There is increased interest from large OTC drug companies as pharmacy chains add probiotics to their offerings," she explains. "The traditional natural product retailers continue to support the products, and [mass-merchandise] chains with natural and organic and/or supplement sections also show interest in probiotics."

A few new darlings also have entered the supplement scene — perhaps the most noteworthy of them being raspberry ketone. The product, which assists with weight management, has grabbed consumers' attention in recent months, says Kevin Harden, vice president of sales with Private Label Nutraceuticals, Atlanta.

This news should come as no surprise. In February, raspberry ketone received a huge endorsement when television personality Dr. Oz called it the "number-one miracle in a bottle to burn your fat" on an episode of The Dr. Oz Show. (Harden says product trends often follow endorsements from the medical community.)

The market also could see a surge of new national brand and private label bone health supplements during the next year. With new warnings and class actions pertaining to prescription treatments for osteoporosis and osteopenia, consumers are becoming eager to find alternative options for maintaining bone health, says Kenn Israel, vice president of marketing with Costa Mesa, Calif.-based Robinson Pharma Inc.

"This new need occurs simultaneous to ingredient firms introducing and commercializing some very compelling and effective new ingredients that go way beyond the tried and true calcium with vitamin D options," he points out. "Ingredients such as black yeast, near-nano particles of calcium, algae-derived minerals, carotenoids and botanical ingredients will prove interesting."

Do consider offering raspberry ketone — which has gained a tremendous following recently — under your own brands.

Don't forget to educate your staff so they will be able to answer customer questions regarding a particular own-brand vitamin or supplement.

Do consider adding quick-response codes to store brand vitamin and supplement labels to point smartphone users to additional information that might not fit on a label.

A proper package

But having the right product under your own brand isn't enough to win the sale — retailers also need to make sure the packaging stands out from the competition, Harden says.

"As the number of supplements on the market rises, it is increasingly important to have a focused, attractive brand image as part of an effective overall marketing strategy," he explains.

One way of doing this is by printing quick-response (QR) codes on labeling. Several brands recently have worked QR codes into their label design, Harden says. With the scan of a smartphone, these codes direct shoppers to web pages that contain additional information about a product that might not fit on the label.

Another way is to provide labels that tell a story, Drinkwalter says.

Don't miss the opportunity to cross-merchandise store brand protein powder with products such as yogurt and processed fruit — and tie them together in a smoothie recipe.

Educate to sell

Drinkwalter also believes education is key when merchandising store brand vitamins and supplements. She notes that an informed staff situated in the vitamins and supplements section could help differentiate the retailer from its competition.

"This is what separates the best from the rest," she explains. "[Many] manufacturers want to teach and train store personnel about [their] products and industry information. The consumer is hungry for good science to help them vet all the information they receive from the media, and we need to help the stores sell it!"

Retailers also could educate consumers outside of the store via social media platforms such as Facebook and Twitter, Harden notes.

"Marketing has become less commercial and more conversational," he says.

Falkenstein agrees, pointing out that consumers want to share their experiences with a particular vitamin or supplement.

Retailers also could get creative when it comes to merchandising specific products here. For example, Drinkwalter says, they could cross-merchandise store brand protein powder, yogurt and processed fruit — and place copies of a smoothie recipe using the items in front of the display.

Look what's new

Lakeland, Fla.-based Publix Super Markets' Publix 50 Plus Complete Senior Multivitamins are said to be specially formulated to provide more than 20 recommended daily nutrients. The multivitamin and multimineral tablets are free from yeast, wheat, gluten, milk, lactose, preservatives and artificial flavor. Each bottle contains 300 tablets.

Now available from The Fresh Market, Greensboro, N.C., is The Fresh Market B-Complex 100 dietary supplement. Said to be a high-potency balanced B-complex featuring a vegetarian formula, the product contains no sugar, salt, dairy, yeast, wheat, gluten, corn, soy, preservatives, artificial colors or flavors. Each bottle contains 50 tablets.

The Cincinnati-based Kroger Co.'s Kroger Natural 4X Probiotic Dietary Supplement contains four strains of natural and beneficial bacteria. The product is said to help support and maintain a healthy digestive system, to promote gastrointestinal health and digestive system balance, and to support a healthy immune system. It releases gradually over time to protect delicate probiotics from stomach acids. Each carton contains 42 tablets.

Source: Mintel's Global New Products Database