US Market Update

State of the Industry

U.S. Nutrition Industry Sales & Growth: ‘94-’17e

Nutrition Business Journal, Volume XIV, June/July 2009. 2009 U.S. Nutrition Industry Overview

2008 Nutrition Industry Sales by Product & Channel

Nutrition Business Journal, Volume XIV, June/July 2009. 2009 U.S. Nutrition Industry Overview

Fastest Growing & Declining Supplements in 2009

Source: SPINSscan Natural; Natural Supermarkets >$2M ( Excluding Whole Foods)

SPINSscan Conventional; Nielsen ScanTrack X-Wal*Mart

Total US; 52 Weeks Ending 05/19/09

Natural Channel

1.Fish oil2.Vitamin D3.Probiotic supplements4.Vitamin C5.Multi-source protein

Food, Drug, Mass1.Acai2.Fish oil3.Vitamin D4.Multivitamins5.Calcium

Fastest Growing

Natural Channel1.Chinese herbs2.Psyllium3.Milk-based protein4.Guarana5.Adult multivitamins

Food, Drug, Mass1.Adult multivitamins2.Flaxseed3.Soy products4.Ester-C Vitamin C5.Vitamin E

Fastest Declining

2009 Mid-Year Supplement Update

• IRI – Mass

– Total Supplements up 11%

– Letter Vitamins up 20%

– Specialty up 14%

– Herbs up 13%

– Total Vitamins up 10%

– Multivitamins up 8%

– Minerals up 4%

• SPINS – NAT Retail

• Vitamins & Minerals up 1.5%

• Vitamins A&D&K up 62%

• Calcium up 2.4%

• Vitamin B up 5%

• Multivitamins down 4.6%

• Vitamin C down 6.6%

Source: IRI, year to date June 14, 2009 Source: SPINS/ACNielsen last 24 weeks ending 6/13/09

Industry Insights…

• Non-traditional channels will continue to grow

– Pharmaceutical Industries and traditional consumer healthcare companies are becoming bigger players and entering into the supplement space

• Changes in Supplement Regulations are being taken seriously

– A new government has been elected and there will be changes to DSHEA, greater enforcement of GMP regulations and further investment in future.

• Industry needs to leverage the fastest growing channel – THE INTERNET!

Natural Products New Zealand Digital Marketing Strategy

• Launching an integrated marketing campaign with NZTE

• Addresses barriers to growth

• Building company and industry capability

• Build networks and increase exposure in the US marketplace

• Creating a member community and an international community of brand ambassadors

The Member Community

• Industry news / blogging

• Market education and resources (podcast, webcast, interviews)

• Case studies

• Events and Newsletter

• Leads

• Account management and member profile

The International Community

• Media Centre

• Blog

• About NPNZ

• Searchable directory of members

• Events Calendar

• Resources (podcast, video etc)

• Contact us

• Post a lead

Attracting the Masses and Building our Ambassadors

• Targeted email mail outs (SSW mailing list, LinkedIn and NPEW mailing list)

• NPI Center (the leading global online information resource for professionals in the Nutraceutical, nutritional, dietary supplement, cosmetic, and food industries)

• Blogging

• Viral marketing

• Event Networking

• SE Optimisation

Next Steps

• Sign up for membership!!

• Marketing schedule sign up

– Case Studies

– Education requests (podcast and webcast)

– Company features (clinical updates, new product launches)

• Update your profile

• Have a play and get connected!