|Vitamins & supplements|
The School of Population Health at the University of Auckland is now conducting one of the largest global studies of the role of vitamin D that has ever been undertaken.
Named ViDA (Vitamin-D-Assessment), it is being carried out over four years and involves 5000 participants. It is aimed at assessing the vitamin’s role in affecting cardiovascular disease and other blood vessel diseases, respiratory disease and bone fractures.
Internationally, there is growing realisation that food and beverages alone might not be sufficient to supply all the body’s nutrition needs, particularly in countries where soils lack certain minerals, which includes New Zealand. Folic acid is now recognised as a crucial preventer of birth defects. With increased scientific knowledge and the internet-driven trend towards people taking more responsibility for their own health, the nutrition and supplements industry has become a multi-billion-dollar business.
In New Zealand, the Grocery Dietary Supplements market stands at $61 million and is growing strongly at +9.6%. Three key brands account for 73% of the market: Healtheries, Red Seal and Berocca Performance. (Aztec 03/06/12)
Healtheries is the strong number one brand in the sector with 42% share of the market and growth of +5.7%.
Vitaco last year launched Healtheries Probiotica P3, described by Angela Monk – senior brand manager Healtheries Supplements, as “a clinically proven, shelf stable and acid resistant blend of three scientifically proven strains that support digestive health, as well as the immune system. It has delivered strong incremental growth to the Digestion segment in Dietary Supplements in Grocery. Probiotics make up 20% of the Digestion market and at $456,000 are up $424,000 vs YA.
“Cold, Flu & Immunity is the second biggest segment within Dietary Supplements. Healtheries leads this with 77% share. In March, Healtheries launched value packs (100s) of Healtheries Vitamin C 1000mg and Healtheries Vitamin C 1000mg & Echinacea. 1000mg is one of the fastest growing dosage formats of Vitamin C and these new products will continue to drive usage and volume for the category,” Monk said.
“Stress is the seventh biggest segment in Dietary Supplements and is growing at 10.2%. In March, Healtheries launched Stress Day and Night – a unique formulation with a day formula to support endurance and mental stamina, and a night formula to assist sleep quality. Both tablets also help to soothe nervous tension.
“Magnesium products sit in the Muscular Pain/Cramps segment, which is one of the fastest growing segments in Dietary Supplements in Grocery, growing at 25% (the segment is $1.2m). Joints is the fifth biggest segment in Dietary Supplements in Grocery and Healtheries leads this segment with 56% share. In March 2012 Healtheries launched Healtheries Muscle Aid which ties into these two segments,” she said.
All data Aztec MAT to 03/06/12
INTERNET DRIVES GROWTH
Red Seal has the Red Seal and Floradix brands in supermarkets and has plans to launch others in the next few months. “We have some products that will build upon current growth areas and some to target new areas,” said sales and marketing manager Sue Millinchip.
The consistent category growth experienced over the past 12-18 months reflects the growing ownership people are taking of their own health, says Millinchip. “The Red Seal philosophy that the body can generally correct imbalances if given the right ‘tools’ and that chemical solutions may lead to harm, is becoming a widely held belief. As the baby boomers approach retirement with healthcare costs increasing, people realise an investment in vitamins and supplements can not only enhance their health today, but give some protection from common ailments in the future.
“Within the Total category, we are seeing an increased demand for minerals as awareness of our soil and food deficiencies increases. One of the largest segments, Fish Oil, enjoyed strong growth, undoubtedly helped by both the great offers on value packs, the range of high potency alternatives and continued medical reinforcement of the benefits of Omega 3,” said Millinchip.
“Though not a huge segment, insomnia products have grown consistently, perhaps indicating the effects of stress in difficult economic times.
“Consumers today also expect to be able to ask questions and get information on products with ease. The internet has become the first port of call when researching a condition, issue or product. The QR codes now on all Red Seal products allow this to happen as they shop by simply using a smartphone,” she said.
Vital Foods has supplied Phloe and Kiwi Crush to supermarkets, and in the last year has launched Phloe Chewable Tablets to the range. Kylie Jillings, marketing manager, Vital Foods, says the tablets are “a kiwi-tropical flavoured chewable tablet that is clinically shown to help keep you regular and avoid digestive discomfort.
“Chewable tablets have been shown, in our research, to cater to a different consumer need. They don’t need to be consumed with water so are convenient to take on-the-go. Additionally, consumers who don’t like taking capsules (or cannot do so) now have a solution. Chewable tablets are a great option for kids as well; they are yummy so there won’t be any arguments about their daily Phloe.”
Jillings says that Phloe Chewable Tablets were launched in June last year, adding to the existing capsules offer. “Chewable tablets have targeted a different consumer and this has been illustrated in the sales, with the tablets providing strong incremental growth for both the Phloe brand and the laxative category. The Phloe brand is growing at 19% YOY and now has 30% value share of the laxative category.*
“Digestive health globally, including New Zealand, is a growing concern. Consumers are confronted with very busy lifestyles, challenging their ability to eat the right foods and to get enough exercise. Unfortunately, a by-product of these challenges is a growth in digestive health-related disorders. Phloe is a great solution because it offers a natural, preventative product that is convenient for consumers to maintain their digestive health.”
*Nielsen data to 20/5/2012
LOW CARB RETURNS
Atkins Nutritionals manufactures and sells a variety of nutrition bars and shakes designed around the nutritional principles of the Atkins Diet.
Atkins’ four product lines: Advantage, Day Break, Endulge and Cuisine “appeal to a broad audience of both men and women who want to achieve their weight management goals and enjoy a healthier lifestyle”, according to Cam Bourke, sales and operations manager Australia New Zealand. Bourke says Atkins products are available in more than 30,000 locations throughout the US and internationally.
Products launched in the last 12 months include: Endulge Choc Mint, Endulge Choc Almond, Advantage Shake Mix Cappuccino and Endulge Caramel Nut Chew 5pk. Bourke says those products have been going “very well. With the brand up 23% ($ GTH % YA*) we are very excited about what our new NPD has brought to the brand and the category. With more NPD in the pipeline we are hoping to see this growth trend continue.”
Bourke sees the consumer trends as: “Low carb, low carb and low carb. All data points to the fact that low carb is back. After hitting the market by storm in the mid 2000s, consumers and companies are now realising the benefits of a low carb lifestyle. More and more companies are placing an emphasis on low carb, but Atkins has been around since 1972 and we are the original low carb experts.
“Since Atkins launched in New Zealand in late 2008 with low carb products, there are now more than 40 varieties of low carb bars and powders on-shelf from a cross section of manufacturers.”
*Data from Nielsen: Total Supermarkets – current MAT to 01 Jan 12 | share of total health supplements.
Horleys began in New Zealand in 1976 and “continues to deliver superior New Zealand formulated and made products that embody their ‘Intelligent Sports Nutrition’ positioning”, says marketing manager Karen Smillie. “With a category leading share position of 42.3% of the $21.5m Nutritional Supplements category* (excludes vitamin, minerals and effervescents), the Horleys range is familiar to consumers who have a passion for working out, health and fitness, organised sport and competitive events,” she said.
“Last spring, Horleys brought a packaging update to market with the Training Series powders that changed the face of the category. The ultra contemporary black labels, with stand-out graphics, certainly attracted attention and won praise from consumers.
“Summer ’12 saw the launch of Horleys Replace Energy Gels – gels may be niche but are a vital piece of equipment for endurance sport. Already a major presence in the field with Replace Sports drink, Horleys supported this launch with extensive product sampling at triathlon and multisport events,” Smillie said.
“Indulgence and low carb are still major trends and the desire for healthier choices brings new users into the protein bar category every day. Horleys range of carb-less bars (Deluxe, Original and Crunch) which delivers 47% of the total bar sales* in the weight management segment, is transitioning to use naturally sourced stevia extract as a sweetener over the next three months. As the first low carb bars to do so, this will certainly further enhance their appeal to lifestyle and nutrition conscious consumers.”
*Aztec value TKA MAT 15/4/12.
Heinz Wattie’s speciality for the market is Complan. “With 86% awareness, Complan is very well known, even if consumers haven’t tried it personally,” says Sondra Fraser – marketing manager, Nutritional Solutions Heinz Wattie’s.
“We relaunched Complan late last year, positioning it as ‘the nutritional boost for daily wellbeing’ rather than just a meal replacement, and introduced ‘lower fat Vanilla’ – ideal for those who need extra nutrition but want less fat. This was supported by advertising on Food in a Minute where consumers were shown easy recipes that included Complan, and sampling to health professionals and pregnant mums.
“Complan has experienced 7.2% growth since the relaunch (Nielsen NZ Total Supermarkets $ sales & change 6 months to 20/05/12).
“Although the Nutritional Supplements Category is fairly flat (+1.6%), the wellbeing segment, where Complan is the market leader, continues to grow (+6.7%). (Nielsen NZ Total Supermarkets $ sales MAT to 20/05/12).”
Fraser says in the Total Nutritional Supplements category, Complan Chocolate & Complan Vanilla are the number one and two ranking products (in dollars), (Nielsen NZ Total Supermarkets $ sales MAT, 6 months, qtr to 20/05/12).
Complan is available in four flavours including Chocolate, Strawberry, Vanilla (now lower fat) and Double Chocolate which is 98% lactose reduced and can be mixed with soy milk, or water for a low lactose drink.
Bayer NZ’s products are: Berocca – the performance multivitamin, and Elevit Women’s Multi a multivitamin for women with children.
Products launched in the last year are:
• Berocca Focus 50+, a specialty multivitamin tailored for consumers aged 50+.
• Elevit Women’s Multis, a multivitamin for women with children.
Senior brand manager – Berocca, Mike Campbell says Berocca Focus has performed better than expected and is driving growth of the 50+ multis segment. “Launched in July 2011, the range has now added over $500k sales to the 50+ segment in grocery and the segment is now growing +68% $ sales MAT (Aztec Grocery data MAT to 20/05/12). The Berocca range now has a strong shelf presence and is a real lighthouse brand in the cluttered multivitamins category,” Campbell said.
Elevit Women’s Multis launched in mid 2011 and the initial results look “very positive”, according to Daniela Westphal, senior brand manager – Elevit. “Elevit is the market-leading pregnancy supplement in pharmacy and this new launch leverages this strong brand in grocery with a new multi formula specifically for women with children,” she said.
Other points Campbell and Westphal make are:
• Vitamins category in 10.6% growth on MAT, ahead of the total packaged grocery +3.4% (source: Aztec data to 24/04/11).
• A large number of SKUs and the 80/20 rule applies in this category.
• We will continue to see more innovation aimed at specific segments eg, 50+, kids, sleep, etc.
• Pregnancy is often the first time women enter the vitamins category, however 80% of women will stop taking vitamins after pregnancy.
Pfizer Consumer Healthcare, a division of Pfizer New Zealand, offers Centrum (multi-vitamin) and Caltrate (calcium supplement) to the market. It re-launched Centrum as Centrum Advance in August 2011. According to Michelle Latta, national account manager Grocery, this has gone “very well”.
“We have had significant growth YTD +23.4% $ growth and +6.1% units growth vs YA (Aztec data to 27/05/12), and are outpacing the multivitamin segment which is growing YTD +10.4% $ growth and +2.6% units growth vs YA (Aztec data to 27/05/12),” she said.