Nutraceutical International Corporation operates as an integrated manufacturer, marketer, distributor, and retailer of branded nutritional supplements and other natural products sold primarily to and through domestic health and natural food stores. Internationally, the company markets and distributes branded nutritional supplements and other natural products to and through health and natural product distributors and retailers. The company manufactures and sells nutritional supplements and other natural products under various brands, including Solaray, KAL, Nature's Life, LifeTime, Natural Balance, NaturalCare, Health from the Sun, Pioneer, Nutra BioGenesis, Life-flo, Organix South, Heritage Store, and Monarch Nutraceuticals. The company owns neighborhood natural food markets, which operate under the trade names The Real Food Company, Thom's Natural Foods, Cornucopia Community Market and Granola's. It also owns health food stores, which operate under various trade names, including Fresh Vitamins and Peachtree Natural Foods. The company manufactures and/or distributes the broadest branded product lines in the industry, with approximately 7,500 individual stock keeping units (SKUs), including approximately 750 SKUs sold internationally. The company’s products include vitamins and minerals; herbs; specialty formulas; personal care products; homeopathics; functional foods; and other products. To accommodate consumer preferences, the company’s products come in various formulations and delivery forms, including capsules, tablets, softgels, chewables, liquids, creams, sprays, powders and whole herbs. The company acts as a distributor to the Healthy Foods Channel and to certain international markets for certain third-party brands. Strategy The company’s core business strategy is to acquire, integrate and operate businesses in the natural products industry that manufacture, market and distribute branded nutritional supplements. Research and Development For the year ended September 30, 2015, the company incurred $3.6 million in research and development expenditures. Marketing and Sales The company’s branded products are sold in the United States primarily in the Healthy Foods Channel. It also sells products directly to certain retailers through its telephone customer service organization and certain products to both retailers and distributors and others directly to consumers. The company has organized the majority of its marketing and sales efforts under a subsidiary company, NutraBrands, Inc. Au Naturel, Inc. (Au Naturel), a subsidiary of the company, markets and/or sells the company’s branded products internationally. During the year ended September 30, 2015, Au Naturel marketed products to distributors and other customers in approximately 70 countries. Au Naturel markets domestic branded products, as well as custom-labeled versions of its domestic branded products internationally. In various foreign markets, Au Naturel sells to local distributors. In certain foreign markets (including the United Kingdom, the Netherlands, Norway, Sweden, and Canada), Au Naturel markets and sells its products directly to retailers. Monarch Nutraceuticals, Inc. (Monarch), a subsidiary of the company, markets branded bulk products and custom blends. Monarch conducts marketing and sales for bulk materials domestically through a separate sales force and internationally directly to manufacturers and through distributors. Intellectual Property The company owns approximately 340 trademarks that have been registered with the United States Patent and Trademark Office and has filed applications to register additional trademarks. The company owns various trademark registrations in countries outside the United States. The company owns eight U.S. patents and has filed four additional patent applications but generally do not seek patent protection for its products. The company’s patents expire between July 2017 and December 2026. The company sells various products that include patented ingredients. Competition The company competes with United Natural Foods, Select Nutrition, and KeHE Distributors. Government Regulation The formulation, manufacturing, packaging, labeling, advertising, distribution, and sale of the company’s products are subject to regulation by various federal agencies, primarily the Food and Drug Administration and the Federal Trade Commission, and to a lesser extent the Consumer Product Safety Commission, the United States Department of Agriculture, and the Environmental Protection Agency. Some of the company’s products are regulated as conventional foods under the Nutrition Labeling and Education Act of 1990. The company is also subject to state consumer health and safety regulations, such as California Safe Drinking Water and Toxic Enforcement Act of 1986. History Nutraceutical International Corporation was founded in 1993. The company was incorporated in Delaware in 1993.
nutraceutical intl corp (NUTR:NASDAQ GS)
1400 Kearns Boulevard
Park City, UT 84060
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