NBTY Buys Pharmaceutical Cast Off
Once upon a time not so long ago, something strange happened. A family business started in 1947 was purchased by a health care giant (translation: a company that says 100 million doesn’t add up to peanuts), and people wondered why.
While some suggest that the recent sale of Solgar Vitamins by Wyeth last week to Nature’s Bounty, signals another light post on the downhill path for the supplement industry, NBN disagrees.
NBTY’s new star attraction offers multiple opportunities beyond the obvious potential for growth within the existing natural channel.
Don’t be surprised if the self proclaimed ‘gold standard’ vitamins and supplements launches their brown bottled, high priced goodness onto shelves inundated by cheap store brands and other mainstream products lacking the quality that appeals to higher income, sophisticated supplement shoppers prefer.
While some might dismiss this possibility as fast as Krispy Kreme stock is plummeting, thinking this scenario is yet more hot air from a web guru, but consider this: ongoing introductions of higher priced organic products at numerous mass merchants chains such as Wal-Mart and Costco have been increasingly showing surprising strength.
NBN says look for 3 packs of VM-75 coming to a COSTCO near you.
While the growth potential in current and new channels of distribution is strong, clumsy handling by the new parent company could hurt the ever-resilient Solgar Brand
NBTY, like many new parents in the natural marketplace might forget to pay attention to the subtle market strategies necessary for success that Solgar has to this date, created so well.