Imperial Distributors

Commentary From Our President

Vitamin and Supplements – Riding the Wellness Trend

Michael D. Sleeper, President/CEO, Imperial Distributors, Inc.

With intense interest in wellness and natural products and an aging population, the vitamin category, which includes supplements, is on an upswing. This business is broad base because of demographics in a category which has been bolstered by science, innovation and "re-invention."

A simple example is fish oil. With the same ingredients as the cod liver oil we were forced to swallow as kids every morning, it turns out Mom was right. Fish oil is good for you. And today it's easier to take because gel caps are odorless and sweetened for taste. We now know that fish oil gel caps contain omega-3 fatty acids, which is important for cardiovascular health. As a result, sales are up 38.7% in the latest IRI research.

As population ages, condition-specific formulations will show even bigger sales increases. Pills for reducing cholesterol, osteoarthritis, joint pain and vitamin D, are all showing triple-digit year over year sales gains.

But category managers will need to stay focused on the ebbs and flows of major brands. Last month one vitamin showed a negative 7.6%, while another, new competitor showed a sales gain of 33%. These changes came about through better packaging, more competitive pricing, increased advertising and of course better product efficacy.

Extending "vitamins" to a broader context, show supplements with more impressive growth. Supplements for weight loss have shown sales up 8.1% and one new diet supplement climbed to the Number 1 spot after only 30 days in the marketplace.

The supplement category also includes sports nutrition for muscle and strength building. These SKU’s advanced 32.7%, according to IRI, driven by protein supplements. Meanwhile, nutrition bars, an adjunct to conventional nutritional supplements, continue to grow, finding shelf space in cereal aisles.

So how can supermarkets improve their share of this $1 billion plus business? Here are two recommendations:

(1) Advertise supplements in blocks of multiple items, vs. individual items, highlighted with a short banner theme. We’ve found that retailers can create better results, with more impact in their ads with banner themes like "Women's Health”, "Joint Health" and, "For Your Heart's Sake."

(2) Build a long term health and wellness image. The possibilities for outpost categories dedicated to health and wellness SKU’s like bathroom scales, massagers, specialty pillows, foot baths, heating pads and health publications, are good examples of a long term commitment.

Vitamins and supplements are clearly riding the wellness trend. We can do well by capturing more of today’s aging generation shoppers.

For comments or questions, contact us by phone at 508-756-5156, or e-mail: msleeper@imperialdistributors.com

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