中文English

Home >> Facts&Visions >> Facts >> Sports nutrition is not about body-building anymore

Sports nutrition is not about body-building anymore

12.20.2018


GNC: Sports nutrition is not about body-building anymore

Post a comment By Elaine Watson, 18-Nov-2011

Sports nutrition products now account for 45% of sales at GNC compared with 27%

10 years ago. But it is no longer dominated by body-building, said chief

executive Joe Fortunato.

GNC boss Joe Fortunato: 'Everyone thinks we are skewed more towards males. We’re

not'Speaking at the Morgan Stanley Global Consumer Conference in New York this

week, Fortunato said GNC had a “dominant positioning in the fastest growing

segment of the dietary supplements business: sports nutrition”.

And it was “significantly outperforming” the market, he claimed.

“Sports nutrition is forecast to grow at around 7% and we have a 25% share of a

$3.2bn industry. If you look at our figures, each year we’ve doubled the

industry forecasts.”

Everyone thinks we are skewed more towards males. We’re not

But the focus had changed, he said.

“Body-building is a segment of the business and that connotation has lived with

GNC and will always be there. But this business has accelerated and expanded

broadly across all fitness categories.

“This is about anybody that participates in any sport, any activity, weekend

warriors… we have products for everybody… We are the place to come for fitness.

We keep being innovative, we keep bringing new products to market and consumers

[in this space] are willing to pay for the best products in the marketplace.”

And while some people still saw GNC as targeting men, this was not the case, he

said. “Gender is split evenly. Everyone thinks we are skewed more towards males.

We’re not.”

Margins at GNC.com are ‘almost unheard of for an internet business’

While GNC notched up double-digit growth in all of its divisions in the third

quarter, the potential to grow in the online space was enormous, said Fortunato.

“GNC.com is a high-margin business, a very branded business, where we saw growth

of 38% in the third quarter, roughly 35% for the year, and more importantly, 27%

EBITDA [earnings before interest, tax, depreciation and amortization] margin.

That’s almost unheard of for an internet business.”

“We didn’t launch GNC.com until 2006, so we were very late to the game. But

we’ll do $80m on GNC.com this year.”

WHITE PAPER

Immunel™ - New Immunity Ingredient from WILD

Immunel™ is a proprietary blend of milk peptides that support and balance total

immunity. Clinical studies have shown Immunel™ to rapidly increase phagocytosis,

the number and vigor of immune cells that respond to microbial and bacterial

invaders. Immunel™ is offered in a water-soluble dry powder for use in a variety

of food and beverage applications... Click here

The recent acquisition of online supplement retailer LuckyVitamin.com also gave

it a foothold in the discount supplement market without compromising the GNC

brand, he said.

“We want to play in this space. And we don’t have the ability to play in this

space in our stores. It has no infringement on the GNC brand, so we feel it is

the perfect play for us to expand and continue to take market share.”

Herbalife: We’re growing in mature as well as emerging markets

Herbalife chief financial officer John DeSimone, who was also speaking at the

conference, was equally upbeat about his firm’s prospects, adding: “We’ve had

37% growth since we were here two years ago and we still think there’s a lot of

runway [Herbalife presented at this event in 2009].”

He added: “If you look at the worldwide meal replacement market. Five years ago

we had a 22.6% market share; last year we had a 33% market share.”

And unlike many rivals, Herbalife was still generating strong growth in

developed markets such as North America (its sales there were up 12.2% last

year) as well as emerging markets owing to its unusual business model, he said.

“That distinguishes us from a lot of other direct sellers.”

Distributor engagement

Crucially, Herbalife’s daily consumption model was driving increased distributor

discipline and consumer engagement as the former had much more frequent contact

with the latter than was traditional for direct sellers, said DeSimone.

While the traditional direct sales model was characterized by large, infrequent

purchases, Herbalife had completely redefined this model through its daily

consumption approach, which was all about small, frequent purchases, he said.

Founded by entrepreneur Mark Hughes in California in 1980, Herbalife markets and

sells its nutrition and weight management products through a network of

independent distributors in 75 countries. This content is copyright protected

However, if you would like to share the information in this article, you may use

the headline, summary and link below:

GNC: Sports nutrition is not about body-building anymore

Sports nutrition products now account for 45% of sales at GNC compared with 27%

10 years ago. But it is no longer dominated by body-building, said chief

executive Joe Fortunato.

http://www.nutraingredients-usa.com/Industry/GNC-Sports-nutrition-is-not-about-body-building-anymoreKeywords:

GNC, Herbalife


|   About Us   |   Products   |   Service   |   Info&Events   |   Facts&Visions   |   Contact   |   

2005-2017 www.kangcare.com. All right reserved.    Jiangsu ICP NO.07503365-1