Nutraceutical.com / Our Strategy



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Nutraceutical's strategy is to enhance its position as a leader in supplying quality branded products to the Healthy Foods Channel while continuing to generate rapid growth in sales and profitability. Unlike many of our competitors, we have chosen to remain focused on the Healthy Foods Channel. Specifically, we seek to:

INCREASE MARKET SHARE IN THE HEALTHY FOODS CHANNEL.
Our strategy is to increase our share in the rapidly growing Healthy Foods Channel by:
1. Commitment to the Healthy Foods Channel
2. Utilizing multiple brands and
3. Utilizing our extensive sales force
The Healthy Foods Channel.
We target consumers searching for high quality nutritional and other natural products. We believe many of these consumers shop in sales channels that offer meaningful education, service and support to their customers. The primary channel that offers this type of support to consumers has been the Healthy Foods Channel. Our primary focus has been and remains on this channel. This strategy has enabled us to benefit from the growth of the Healthy Foods Channel. We believe that retailers in this channel favor brands that are sold exclusively to this channel and that, as a result, they will continue to allocate additional shelf space to our products.

Largest Sales Force Targeting the Healthy Foods Channel.
We market our products through a substantially larger direct sales force dedicated to the Healthy Foods Channel than that of any competitor.
CONTINUE TO MAKE STRATEGIC ACQUISITIONS.
Nutraceutical was founded in 1993 to effect a consolidation strategy in the fragmented nutritional supplement industry. To date, we have successfully completed over thirty-five acquisitions and will seek additional acquisitions that serve to expand The Nutraceutical Family of Brands^TM, broaden our product offerings and facilitate entry into complementary distribution channels. We believe that consumers seeking high quality products are also purchasing them through other channels, such as products available through health care practitioners and direct to consumer channels and we continue to seek opportunities through acquisitions to explore reaching our target consumers through these and additional channels.
CONTINUE TO DEVELOP NEW PRODUCTS AND PRODUCT EXTENSIONS.
We are a market leader in the development of new and innovative products. During fiscal 2011, we introduced over 180 new stock keeping units ("SKUs") of branded products. The development and introduction of new and innovative products provides us with greater product diversification than most of our larger competitors.
CAPITALIZE ON STRONG INTERNATIONAL GROWTH.
We believe that international sales represent a significant growth opportunity. Currently, we market our products in approximately 55 countries, through international distributors and other customers.