Natural Products Insider

NOV-DEC 2018

INSIDER is the leading information source for marketers, manufacturers and formulators of dietary supplements, healthy foods and cosmeceuticals. Since 1997, INSIDER has been serving the needs of the global nutrition industry.

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146 INSIDER November/December 2018 Let's face it: the world feels like it is changing faster and more aggressively than any other time in recent history. In the sports nutrition industry, iron-clad brands are now showing cracks in their armor. This is especially true for legacy sports nutrition brands. These brands are feeling the squeeze to stay relevant against an onslaught of emerging competitors that have entered the market due to today's lower barrier of entry. Over the past decade, the increasing popularity of e-commerce has made it easier for brands to sell their products directly to consumers. This direct connection has given rise to a plethora of sports nutrition startups, that are in turn fragmenting the market and fundamentally changing how consumers purchase products. Gone are the days of generating a reliable, perpetual growth trajectory through the previous sales and marketing models that fueled decades of industry success. These legacy sports nutrition brands now face pressure as consumer behaviors shift and the channel landscape changes. To win in the coming years, sports nutrition legacy brands need to reduce their reliance on and diversify their offl ine channels. Despite sports nutrition products being a relatively diffi cult category for consumers to shop for online without prior product knowledge, online sales continue to dramatically increase. SupplySide West Preview Sports Nutrition Retail Shift Offers Growth Opportunities to Brands Taking New Approaches by Joshua Schall STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION (Required by 39 U.S.C. 3685) 1. Title of publication: Natural Products Insider 2. Publication number: 1525-5301 3. Date of filing: October 1, 2018 4. Frequency of issue: Every other month 5. Number of Issues published annually: 6 6. Annual subscription price: $299.00 7. Complete mailing address of known office of publication: Informa Media, Sarah Hess, 2020 N. Central Ave., Suite 400, Maricopa County, Phoenix, AZ 85004-1544, 630-524-4554 8. Complete mailing address of the headquarters of general business offices of the publishers (Not Printer): Informa Media, 2020 N. Central Ave., Suite 400, Maricopa County, Phoenix, AZ 85004-1544 9. Full names and complete mailing address of publisher, editor, and managing editor: Publisher, Danica Cullins, Informa Exhibitions, Inc., 2020 N Central Ave., Suite 400, Phoenix, AZ 85004-1544; Editor: Sandy Almendarez, Informa Exhibitions, Inc., 2020 N Central Ave., Suite 400, Phoenix, AZ 85004-1544; Managing Editor: Rachel Adams, Informa Exhibitions, Inc., 2020 N Central Ave., Suite 400, Phoenix, AZ 85004-1544 10. Owner: (If owned by a corporation, its name and address must be stated and also immediately there under the names and addresses of stockholders owning or holding 1 percent or more of total amount of stock. If not owned by a corporation, the names and addresses of the individual owners must be given. If owned by a partnership or other unincorporated firm, its name and address as well as that of each individual must be given. If the publication is published by a nonprofit organization, its name and address must be stated.) Informa Media, Inc., 605 Third Ave., New York, NY 10158; Informa Operating Holdings, Inc. (owns 100% of the stock of Informa Media, Inc.), 605 Third Ave., New York, NY 10158 11. Known bondholders, mortgages, and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages, or other securities: None 12. Not applicable. 13. Publication Name: Natural Products Insider 14. Sept/Oct 2018 Sarah Hess, Director Shared Services 15. Extent and nature of circulation: Average no. Actual no. of copies of copies each of single issue issue during published preceding nearest to 12 months filing date A. Total number of copies (net press run) 9,468 9,346 B. Paid and/or requested circulation 1. Mail subscriptions (requested) 8,689 8,587 3. Sales/Paid Distribution Outside USPS 97 93 C. Total paid and/or requested circulation 8,786 8,680 D 1. Total nonrequested distribution by mail 153 144 3. Free or Nominal Rate Copies Mailed at Other Classes Through the USPS (e.g., First-Class Mail) 425 450 E. Total nonrequested distribution 578 594 F. Total distribution 9,364 9,274 G. Copies not distributed 1. Office use, left over, unaccounted, spoiled after printing 104 72 H. Total 9,468 9,346 I. Percent paid and/or requested circulation 93.83% 93.59% 16. Electronic Copy Circulation B Total requested and paid print electronic copies 8,786 8,680 C Total requested copy distribution + requested paid electronics copies 9,364 9,274 D Percent paid (both print & electronic) 93.83% 93.59% 17. This statement of ownership will be printed in the Nov/Dec 2018 issue of this publication. 18. I certify that the statements made by me above are correct and complete. This increase of the self-directed consumer has given online retailers like Amazon a further cognizance to invest in the category. Simply put, the main question pondered by most legacy sports nutrition brands is not whether they should have an e-commerce presence, but rather what level of presence they need to grow. Regardless, the sooner legacy sports nutrition brands start building an e-commerce strategy, the better they will be able to compete with more agile, digitally native challengers. With challenges come opportunities to grow, and the global sports nutrition market is surging at a 7 percent compound annual growth rate (CAGR). Moreover, lifestyle and mainstream consumers have been aggressively entering the market with an interest in "healthier for you" functional food and beverage sports nutrition products that are growing at 50 percent more than the industry CAGR. These popular functional food and beverage offerings have forced food, drug, mass and convenience (FDMC) channels to expand their active nutrition sections. This perfect storm of opportunity delivers an advantage for legacy sports nutrition brands that can invest in these brick and mortar channel relationships and product innovations that have higher barriers of entry relative to e-commerce and traditional offerings of capsules, powders and pills. Even with the dynamically changing business landscape, legacy sports nutrition brands should not lose hope, as they can take a page from the competition's playbook and pair it with industry expertise. While presenting brands with unique challenges, the sports nutrition industry is ultimately a space fi lled with innovation and opportunity. Legacy sports nutrition brands that are romantic about yesteryear's sales and marketing models or channel preferences will be left behind with the Millennial buyer. Joshua Schall, MBA, is a digital-fi rst consumer packaged goods (CPG) strategist and entrepreneur who focuses on the emerging and intersecting categories of value-add ed (or functional) food, beverage, beauty and nutritional supplements. He currently is the owner of J. Schall Consulting (jschal, an Austin, Texas-based boutique management consulting company. Scan Here Sports Nutrition Retail at SupplySide West Learn more about the changing retailing landscape and the younger generation of sports nutrition consumers from Joshua Schall during the "Sports Nutrition 2020: Sharpening the Vision" Workshop on Wednesday, Nov. 7 at 1:30 p.m. at SupplySide West in Las Vegas.

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