Store Brands

FEB 2017

Store Brands delivers unprecedented strategic and tactical information needed by retail executives to develop and support compelling, differentiated store brand programs to build customer loyalty.

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Category Intelligence: Vitamins and Minerals 6 4 Store Brands / February 2017 / www.storebrands.info taking a proactive interest in their health and are increasingly driving sales in the health and wellness industry, boosting sales in the category," Jones says. Although millennials trail baby boomers in overall supplement use, an estimated 73 percent of adults aged 25 to 34 years regularly take vitamin and mineral supplements compared with 88 percent of adults aged 65 and older, Jones notes. Agropur is developing products for people in all age groups who maintain active lifestyles, such as the baby boomer who downs a protein shake after playing tennis. "It's not just your hardcore athletes or weekend warriors who are taking these products," Reget says. "It's your every-day person who wants help with weight management and overall health in general." The trust factor While the category is growing, it is not without its challenges. According to Jones, one such challenge is ensuring trust and communicating the benefits of products for what they are. "This may require more money being spent to ensure the product has the certifications needed and the active ingredients at true levels," she adds. Corrie Drellack, Agropur's marketing and commu- nications manager, notes that it's no longer acceptable to only offer a "dusting" of clinical ingredients in some of the category's products. "Consumers are beginning to demand clinical dosages to prove that products actually work and are safe," she adds. Another challenge is that healthcare professionals do not tend to recommend vitamins and supplements to their patients, Jones says. Also legislators have made it almost impossible to make claims about the products, she adds. For instance, a label can say a product "helps maintain a healthy circulatory system" but it can't say it "prevents cardiovascular disease." "As a result, consumers are often left to fend for themselves regarding the interpretation of the right supplement for them," she adds. Consumer education is a big challenge for larger retailers, but not as much for specialty retailers that have been selling such products for years, Kilpatrick points out. "There is a lot of information out there," he adds. "You have everybody and their brother writing about wellness-related products, but people still don't have a strategy or know what to buy." Another challenge is that some developers might have great ideas for new products, but they don't have the money to get them off the ground, Evans notes. A "viable" industry Manufacturers expect the vitamins and supplements category to continue to grow. "I think [products in the category] will continue to become more mainstream in people's lives," Kilpatrick says. "More retailers are becoming open- minded that this is a viable industry for them. This is a great opportunity for private label." Hollnagel says the category is in constant evolution. "There are a lot of ingredient manufacturers that come across some rather intriguing new technologies in terms of identifying new ingredients that can add value to existing or new products," he adds. "There was a time in this business where everybody who launched a product was trying to copy another product in the market. Now there is more of a focus or drive to be the first to market or best to market." Jones points out that it's important for retailers to exhibit the category as a vitamin and supplement resource for consumers by offering an up-to-date and trending assortment of products along with a knowledgeable staff and in-store materials to educate consumers. Evans hopes that retailers begin to mer- chandise supplements and vitamins more prominently. "I'm hoping that [retailers] will get on the bandwagon and start treating these products like they do cereal or paper towels," he adds. Do retailers realize the opportunity they have with private label vitamins and supplements? "Our job is to show them ... if they haven't already realized it," Reget says. SB Aylward, editor-in-chief of Store Brands, can be reached at [email protected] Source: InfoScan Reviews, IRI, a Chicago-based market research firm. Total U.S. supermarkets, drugstores, mass market retailers, military commissaries and select club and dollar retail chains for the 52 weeks ending Oct. 30, 2016. Note: Does not include all vitamin and supplement subcategories. Vitamin and mineral category performance Dollar Sales (in millions) Change vs. Year Ago Dollar Share Unit Sales (in millions) Change vs. Year Ago Avg. Price Per Unit Total vitamins Mineral supplements Private Label All Brands Private Label All Brands $1,891.9 +1.4% 27.5% 243.8 -0.9% $7.66 $6,874.0 +3.8% 100% 701.4 +0.2% $9.80 $1,142.9 +3.5% 32.5% 127.3 +0.5% $8.98 $3,513.2 +6.4% 100% 305.8 +2.0% $11.49 Do offer myriad products to appease different age groups. Don't just copy another product. Strive to be the best or first to market.

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