STRATEGIC INFORMATION FOR THE NUTRITION INDUSTRY

Volume XXI, No 5 | July 2016 newhope.com/nbj | $199

A race of results Sports nutrition science is getting better, but does marketing still fi nish fi rst?

By Rick Polito

n the race to the shelves in sports nu- gy of hard, and expensive, science. Texas A&M. He’s a critic of science in the trition, marketing is too often sprinting " at’s the bad news. " e better news is supplement industry, while also being a be- Iacross the ! nish line while science is still that the science is starting to catch up—at liever in where the more responsible com- warming up. Products make it to market, least it’s out of the locker room with its shoes panies are moving. He knows the race and unproven and unready. Studies are cited be- laced up when the starting gun goes o# . chase of science and product all too well. fore they are published. " e sprint to pro! t Conrad Earnest is a PhD working for “We’re working very hard toward science in the “what’s next?” relay is an event often Nutrabolt in College Station, Texas, when ! rst, sales second,” Earnest says of Nu- ill-suited to the slow and steady methodolo- he’s not working with graduate students at trabolt. “It’s a hard nut to crack, but we’re

SPORTS NUTRITION AND WEIGHT-LOSS SALES AND GROWTH, 2005-2018E

$45,000 18%

$40,000 16%

$35,000 14%

$30,000 12%

$25,000 10%

$20,000 8%

$15,000 6%

$10,000 4%

$5,000 2%

$0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e

Sales Growth

Ɵ Source: Nutrition Business Journal ($mil., consumers) sales)

CONTINUED ON PAGE 1 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

HEAR IT AS IT HAPPENS: @NUTRITIONBIZJRL Rick Polito, Editor in Chief Bill Giebler, Senior Editor 01 11 21 James Johnson, Research Analyst First-to-market and backed-by-sci- Weight loss supplements are Bars—snack and performance— ence are market objectives often among the most controversial are a growing category, with Katie Dove, Design Team Manager at odds. More studies are being in the SNWL category. Even so, double digits as far as we can see. Nancy McLaughlin, Designer published, but the quality of the there’s a prominent role for sup- But is there still room for anything Kim Merselis, Subscription Services science is still being questioned. plements to support mainstream new? diets based on healthy weight Carlotta Mast, Exec. Director of management. Content, New Hope Natural Media

03 23 NBJ Editorial Advisory Board Sports nutrition has long been Vitamin D may be the unsung Tom Aarts considered an edgy category, but 13 hero of sports nutrition, and new NBJ Co-founder & EAB Chairman what if consumers aren’t looking Tumultuous times in sports evidence supports an opportunity for edge? Maybe it’s time for nutrition has hit few legitimate in weight loss—but how will old Steve Allen companies to stop focusing on retailers harder than GNC—and news sell in new products? Retired Nestlé Executive performance and start thinking of it’s not getting any better for the Anthony Almada the wellness aspects of exercise. company as they report repeated CEO, Vitargo Global Sciences, LLC losses and a shakeup in the Mark Blumenthal executive ranks. 26 Author Mark Johnson’s latest Founder, American Botanical Council 08 book untangles the world of dop- Bob Burke Third party certifi cation for sports ing in professional sport, and how Founder, Natural Products Consulting nutrition is getting attention 16 supplements fi t into the scandals. beyond the elite athlete ranks. But Step aside, whey, plant protein Greg Horn what about better sales? is here to stay, and it’s not rice CEO, Specialty Nutrition Group and soy. Clinical studies and the Adam Ismail development of pea and algal Executive Director, GOED proteins propel the category into Loren Israelsen prominence. President, UNPA Larry Kolb President, TSI Health Sciences Bernie Landes President, Nutritional Products Consulting Janica Lane Managing Director, Piper Jaffray Michael McGuffi n President, AHPA Randi Neiner Director of Market Research, Shaklee NBJ’s monthly publication Ian Newton Managing Director, Ceres Consulting focusing exclusively on the Kantha Shelke nutrition industry can now Founder, Corvus Blue Scott Steinford be delivered straight to CEO, QX-Partners Peter Wennström your mobile device! President, Healthy Marketing Team Nutrition Business Journal® (ISSN 1548-6168) is published 12 times a year in 10 editions by New Hope Natural Media, a division of Penton Inc., To subscribe, please call 1401 Pearl Street, Suite 200, Boulder, Colorado, USA 80302. © 2016 Penton Inc. All rightsre- served. This publication may not be duplicated Subscriber Relations at or reproduced without written permission.

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JULY 2016 NEWHOPE.COM/NBJ | 2 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

COVER STORY CONTINUED

LETTER FROM NBJ: CLEARING THE SMOKE chipping away at it.” Nutrabolt isn’t there yet—ingredients It’s pretty easy to take shots at the sports nutrition and weight loss still go into products before the science is categories. That’s because too many companies make it too easy, some- entirely established—but Earnest is push- times blatantly ignoring laws that are the safeguards to support both the ing his company, and every company he health of the public and, in the end, the health of the industry. talks to, to get there as fast as possible. It’s not a matter of low-hanging fruit that has federal regulators eye- " e pressure to put sales ! rst—to start ing the products, ingredients and claims so closely. There are actual risks selling an ingredient before studies are com- involved. Where there’s smoke, there’s fi re, and there’s an awful lot of plete—is understandable. " e ! rst order of smoke wafting up from an awful lot of fi res. business in sports nutrition and weight loss But behind all that smoke are genuine needs and urgent issues. is to be ! rst on the market with something Obesity is costing the country billions. The Journal of Health Eco- new. " at worked for a long time, and it nomics put the share of all health care costs devoted to obesity-related disease at 21 percent. It’s both intuitive and accurate to say a lot of that still does. Shortcuts are even more enticing obesity and much of that 21 percent could be avoided or mitigated to consumers than companies. by exercise, and the benefi ts, of course, go far beyond waistlines and Max gain! Get lean! Six pack abs any- weigh-ins. body? In all of this, nobody is oblivious to the obvious. Some argue that It certainly works on a late-night info- people can be both fat and healthy, but nobody outside of the come- mercial or in the ads a few pages past the dy circuit speaks out against exercise. Americans by the many millions “Ripped Abs!” headline on the cover of ignore all advice on healthy weight and exercise, but where the nutrition virtually every ! tness magazine. It doesn’t industry could step in, and make it perhaps not easier but at least more work so well in the o% ces of the Federal effective, comfortable and sustainable, the smokiest of those fi res keeps Trade Commission and the Food and Drug the public wary. Most people who have channel-surfed past an infomer- Administration. cial for a weight loss product are going to be roll-their-eyes skeptical of fat-burning ingredients. Sensible people who read about spiked sports At least not for very long. supplements are going to be more than wary. For quick-in/quick-out companies, the And so genuine needs are not met and urgent issues are not ad- combination of low risk and a low barri- dressed. More responsible companies are trying to do it right with the er to entry means regulations don’t matter right ingredients backed by the right science, but getting seen through so much. If they get popped with a warn- that smoky haze isn’t easy. ing letter or worse, they can set up shop What people need are products that don’t promise to make exercise again under a di# erent name. USA Today or weight loss effortless or easy. Most people aren’t even looking to famously called it “the Supplement Shell “optimize” performance. Instead they need products that support them Game,” and won awards for their series on in optimum wellness while they pursue those goals. how sports nutrition entrepreneurs could In the end, that should be what sports nutrition is really about. Call it get caught, and then resurface with a new wellness or vitality. Call it thriving. Exercise and a healthy weight ring in key with all of those words. brand and a new questionable ingredient. Maybe that’s the pitch that gets more people, each of them potential For bigger companies with more at long-term customers, off the couch and onto their bikes or onto a walk- stake, it’s a marathon, not a game of hide- ing path—maybe even the gym. Make health the goal and maybe you and-seek (and hide again). put out more of the fi res, maybe the smoke clears a bit. " at’s why science matters, perhaps Maybe it’s not so easy to take shots at sports nu- more than it ever did, certainly more than it trition and weight loss supplements when the focus does in many other categories. Many would is on health. say that science is being done better than it ever has. Others are not so sure. Rick Polito Earnest sees the progress and the peril. NBJ Editor in Chief “It has gotten better and some com- panies do it quite well,” Earnest says, with the perspective of 18 years in the ! eld. “But some people do the minimum.” " e minimum could be a study with a dozen subjects, hastily crafted, hastily exe- cuted and conceived in what Earnest calls “a one-and-done mentality.” Con! rm the re- sults with a di# erent population, in a di# er- ent lab? " at’s exceedingly rare, Earnest says.

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$35 BILLION SNWL SALES BY CHANNEL, 2015 5

Prac oners/ Internet ƟƟ Natural and Fitness Clubs 5% MulƟ- Specialty 2% Level/Network 16% 8% Mail Order/DRTV/ DR Radio 2%

Mass Market 67%

Source: Nutrition Business Journal ($mil., consumer sales)

More? Better? More better? that science,” Horn says, explaining that Going deeper, 53 percent of the studies Whether the follow-up con! rmation product developers can begin with “at least were positive on one or more of the 113 in- comes or not, the number of studies pub- a hypothesis that the science is provable gredients examined; 38 percent were nega- lished, even if only the one-and-done vari- … " at’s way di# erent from a decade ago tive; and 9 percent were neutral.” ety, has grown impressively. when companies were trying to prove their " ose stats could sound discouraging, Specialty Nutrition Group CEO Greg products worked, but their products weren’t but other categories had smaller percent- Horn launched a project last year to com- necessarily formulated in advance based on ages in positive outcomes. Sports nutri- pile and comb through the science on sup- science that it would work.” tion gives formulators plenty to work with, plements across the major categories. In the In Horn’s project, a team of PhDs Horn says, and science-backed e# ective in- early years of the century, Horn says, sports pulled up 18,000 studies in sports nutrition gredients don’t need the testosterone-fueled nutrition might generate nine or 10 studies and winnowed that list down to 3,200 that mayhem marketing or beach body promises annually. In 2014, there were 90. He calls were “worth reviewing.” Of those 775 were common to the category. “" ey don’t have that both an “explosion” and an opportu- deemed “relevant.” “" at’s a big number,” to make the wild claims and have all the nity. “When we actually know the science Horn says. “Other categories had smaller drama,” Horn says. behind these things, we can formulate to numbers of relevant studies.” Still, while “science-backed” should be

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a goal, knowing what backs up the science wouldn’t have been accepted before so the lackluster publications that certainly were isn’t always clear. Whether more is better level of science has gone down a little bit.” not reviewed by anybody with expertise,” can be questioned when touting the num- " e lesser-known journals carry less Earnest says, explaining that inconsistent ber of new studies. weight with skeptics, especially the import- standards encourage sloppy science at every Doug Kalman at Miami Research As- ant skeptics. step. Indeed, in 2014, Scienti! c American re- sociates talks about the growing volume of “Smart scientists, better law ! rms and ported on a pair of publishers that retracted new studies in a cautious tone. " ere is a regulatory agencies, they still look for jour- 120 papers that turned out to be randomly troubling explanation behind at least some nals that have been indexed in the National generated gibberish. SciGen, a program de- part of the uptick, he says. “Honestly I think Library of Medicine,” Kalman says. veloped by playful scientists at the Massa- there’s been a little bit of watering down of " e journal system is at the heart of chusetts Institute of Technology generates the science since there’s so many more jour- Earnest’s criticism. " e journals “run the random-word “papers” on computer science nals that one can publish in,” Kalman says. gamut from pretty thoroughly reviewed and such papers have been published mul- “" at means there are so many papers that based on a good scienti! c approach to tiple times in multiple publications. Com-

$35 BILLION SNWL SALES BY PRODUCT CATEGORY, 2015

Weight-Loss Pill-Form Supplements 6% Weight-Loss Meal Supplements 11%

Sports NutriƟon Supplements Sports & 15% Energy Drinks 55%

NutriƟon Bars 13%

Source: Nutrition Business Journal ($mil., consumer sales)

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puter science and nutrition are very di# er- tion. For starters, ! nding something new is anaerobic threshold testing that was once ent ! elds, but it gives a glimpse into the tough when the basics are so well covered, con! ned to Olympic training centers, but lack of rigor at the more careless end of the Niemen says. In endurance, for instance, what Horn sees coming next is that level publishing spectrum. carbohydrates and water are “at least 90 of quanti! cation getting portable, per- " ere is much that companies, and the percent of the whole issue.” " at leaves 10 sonal and always-on. “It’s only a matter public, may not understand about the pro- percent to tweak and the tweaking can be of time until that changes and it’s in your cess, Earnest observes. “Peer reviewed” of questionable e# ect. In strength, Nie- pocket like everything else,” Horn says. doesn’t always mean what people think it men says, protein is a major factor, but it’s Athletes, weekend warriors and reformed does, Earnest explains. " e peer could be an also, in his opinion, adequately supplied in couch potatoes will be able to see what undergraduate, or a friend of the research- the American diet. For Nieman, creatine is works and how it works in their own bod- er. " e study itself might have been hand- one of few legitimate ingredients, but the ies,” Horn observes. “Now you’ve really ed o# to a graduate student by the primary literature holds there is “just little bit of got something because there is no more researcher, a phenomenon that presents its additional e# ect.” wondering.” " at “N of 1” model, Horn own set of problems. “You have two semes- So what white space does that leave? believes, could open the “latent market” of ters to do your work, and that’s often not Niemen’s pick for the most promising consumers who are looking neither for an enough time to do a large study,” Earnest “what’s next?” in sports nutrition right now edge nor those ripped abs. Being able to says. is polyphenols for endurance. His research quantify the e% cacy of a product in their Some companies don’t even wait for the has already shown that “half a banana with own body is the kind of evidence they’d study to be published, or they bar the re- water equals what you would get from never ! nd in a study. And how many con- searcher from publishing the study, or even Gatorade,” but there appears to be addi- sumers read studies? It also means that talking about it, if the results are negative. tional bene! t carried in the polyphenols companies have to live up to the science " at skews the marketing and the numbers, in bananas, dates, raisins and other fruits. because every consumer will be a scientist. critics say. " e landscape of sports nutri- Athletes see protection against oxidative tion science is riddled with shallow graves stress and gains in exercise capacity, while Science lessons where negative results are buried. bene! tting from an anti-in+ ammatory ef- Until that self-quanti! cation makes it And those are just the problems that fect. " at’s a lot of white space, enough that past the early adopters’ edge of the bio- come after the study. " e pre-study process polyphenols are “the future of sports nutri- hacker wave, the science that should be presents its own set of complications. Not tion,” Niemen says, but he cautions that the questioned in product development/mar- every nutrition company can or even wants ! ne details of that future are not yet clear. keting spheres still spins into the weeds to pay for a properly sized study. Nutrabolt Tart cherry juice? Yes. It works. But when once it slips into the ether of internet ex- can spend upwards of $100,000 on a study, and how much and how? pertise. Earnest talks about the “Bro Expert Earnest says, but many companies are “We’ve already published a lot of this,” of the Moment” phenomenon and the ev- shopping for bargains. A company with a Niemen says. “We just need more time idence-poor chatter of online forums. “It’s $25,000 budget can’t expect much. “You’re to ! gure out the proper dosing, and once hard to distinguish who’s the real expert going to get $25,000 worth of data,” Ear- again we have companies jumping in before from who knows how to negotiate social nest says. “Which is probably $25,000 we have the science.” media very well,” Earnest says, pointing worth of some pretty weak data.” to the phenomenon of “fat-adapted keto” Out of the lab endurance regimen that has been proven Ahead of the science Answering questions of dosage, tim- wrong repeatedly, but gets endless atten- Perhaps more than quality of research, ing and sport-speci! c response has never tion and anecdotal testimonials because the bigger challenge in the race to what’s been con! ned to the lab. Athletes and their “once it’s on the internet, it’s there forever.” new is ! nding something that actually trainers dial in their regimens based in part The intense interest in science is new—and then waiting until the new on the science and, in large part, on the re- unique to sports nutrition may make science that backs up that new product is corded details of individual response. Such the online echo chamber louder and completely dialed in. acute focus on conditioning and awareness more perilous. Smart companies already " at’s the problem David Nieman sees. of response, however, has not been com- know that online testimonials can catch Niemen is the director of the Appa- mon outside the ranks of elite athletes. the attention of regulators, but making lachian State University Human Perfor- It’s already possible in many locations sure the science is understood and in- mance Lab and an expert on sports nutri- for amateur athletes to get VO2 max and terpreted correctly is both easier and

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more challenging than it’s ever been. white papers to interactive infographics ter too, not just for health, but to assist Horn says one of the things he has seen o# er advantages no label or in-store dis- with the increased demand and stress in his survey of the science is that the truly play can match. “You can take people on a exercise puts on the body. They know, or promising ingredients get ignored, while deeper dive than what you used to be able they are becoming aware, that a founda- the more questionable claims are blared to do,” Kalman says. tion of good health is important before in bold letters. Horn points to the “Dr. Oz athletic extremes can be attempted. Show” ! ascos and wonders why the doc- Back to basics " at’s not what’s new. It’s what’s known. tor’s sta# wasn’t looking at the quality sci- Scientists know there are no short- Sports nutrition should support con- ence. “If he’s talking raspberry ketones and cuts. Marketers know that shortcuts sumers in whatever they are attempting to the science is supporting protein and ! ber, are what consumers want to buy. That accomplish, and those products should be it’s a pretty big mismatch,” Horn says. doesn’t mean selling the basics is as supported by science. " e good science does Oz has stepped away from weight loss tough as it sounds. Protein products are that. " e functional outcome is proven but supplements, but the Dr. Bro bullhorn re- digging into the niches—plant-based, the evidence is matched to the e# ort. mains deafening. Still, though bad science grass-fed whey, turmeric-infused bone “" e ! rst thing you have to do is actu- travels fast, legitimate research can take broth—but it’s still protein. Long-chain ally do the exercise,” Horn says. “" e sports the same online expressways. Companies carbohydrates offer endurance athletes nutrition comes after the exercise.” can leapfrog traditional media and put sustained energy without sugar spikes " at’s not just good advice. " at’s all their cards on the lab table. Kalman and stomach distress, but they’re still good science. It may not be the kind of sees magazines and journals for lay peo- carbohydrates. At some level, consumers science that beats marketing to the ! nish ple doing a better job of explaining the know how macronutrients work. They line, but it should be guiding the market- science, and he believes everything from also know that the micronutrients mat- ing at every step.

SPORTS NUTRITION AND WEIGHT LOSS BY MARKET SHARE, 2005-2018E

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e

Weight-Loss Pill-Form Supplements Weight-Loss Meal Supplements Sports NutriƟon Supplements NutriƟon Bars Sports & Energy Drinks

Source: Nutrition Business Journal ( consumer sales)

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Keep it clean Third-party certifi cations begin to defi ne the market for a cleaner sports nutrition

By Marc Brush

t press time, the Internation- for clean ones. Gold medal count? Nyet. NBJ Takeaways al Olympic Committee was still Meanwhile, the market for sports di- tallying up how many Russian etary supplements continues to clean itself » Clean sports nutrition products A are not only for elite athletes. athletes would be barred from Summer up, from both sides of the aisle. High-pro- Amateur and youth athletes are Olympics in Rio de Janeiro next month. ! le regulatory actions against USPlabs and concerned about safety too. " is comes on the heels of a doping scan- a host of marketers of drug-like ingredi- dal in Russia’s track and ! eld program, ents puts external pressure on the category, » Supplement-related doping scan- a scandal that now stretches across 20 while a burgeoning market for clean prod- dals in the professional ranks and among Olympic squads have raised Olympic sports and implicates several ucts creates momentum from within. It’s awareness of spiked products. government agencies in an orchestrated like pulling your car out of the swamp— program of swapping dirty urine samples helps to clear out the muck, and to have a

NSF CERTIFICATION BY AISLE AT EXPO WEST 2013-2016

Other 15%

CosmeƟcs 10%

Diet and NutriƟon 75%

Soucrce: NEXT Trend Database

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Weight-loss waits in the wings strong tow line. » With all of its darlings well off their recent highs—here’s looking at you, green As NBJ tracks the advance of clean coffee and raspberry keytones—NBJ took the pulse of the weight-loss catego- sports as a viable, progressive, fruitful seg- ry to check for signs of life beyond the stimulant du jour. ment of the sports supplement market, » Several sources called the market “a real dog right now,” with a noticeable third-party certi! cations have emerged as lack of innovation. Some of the old standbys have a little action—CLA, bitter the proverbial + ag in the sand to help de- orange, garcinia—but they’re far down from a few years back. ! ne the trend. And it’s a growing trend at » Several sources told NBJ to keep our eyes on cactus extracts from Sabinsa, with that. Dr. Cheryl Luther, General Manager cactus alkaloids poised to kickstart the market. Others pointed to cross-ap- of Dietary Supplements and Functional plications of research from companies like Oragenics, which recently sold its Beverages at NSF International says this consumer probiotics business to ProBiora Health. of the demand: “To date over 585 products » “Everybody wrongly thinks that weight-loss has to be some stimulant or some- have earned NSF Certi! ed for Sport certi- thing you feel,” says Doug Kalman at QPS-MRA. “Look at an older ingredient ! cation. NSF International’s Certi! ed for like 7-keto-DHEA. You don’t feel it, but you see positive change in body com- Sport has doubled its growth of certi! ed position over time, especially if you exercise. I don’t believe the weight-loss products over the past year.” market is dead in the water at all.” Gauging value Is it worth it? Yes. “" e majority of big With sales of sports nutrition slowing Applied Research at QPS-MRA (Miami companies I talk to bring this up,” says down from their industry-leading dou- Research). “It’s worth it for any company Scott Steil of Nutra Bridge , who represents ble-digit growth rates of many years stand- selling into the sector to certify their prod- the ingredients Peak ATP and HMB in the ing, that separation toward quality also ucts free of banned substances.” sports sector. “Not all of them go down that points to pro! t. Steil’s ingredients are up NSF remains out in front, according pathway, but everybody brings this up. Is it triple digits in recent years. Twinlab’s Clean to most industry insiders. The compa- used in NSF certi! ed product? Is it banned Series remains a double-digit grower, even ny has struck strategic deals with Major anywhere? Can you get through the In- as the company prepares to hit it with a League Baseball and the National Foot- formed-Choice process? It’s often the ! rst “second wave,” according to Stover. ball League, while LGC has created two question we get.” testing protocols—Informed-Choice Steil calls the push toward clean sports The players and Informed-Sport—with varying lev- a “massive trend,” one that he misjudged Many point to Vega as a breakout suc- els of rigor. BSCG is the brainchild of a few years back. “" ese clean certi! ca- cess in vegan sports that parted the waters Don Catlin—widely considered the fa- tions aren’t taking the industry by storm, for clean sports writ large. But while Vega, ther of drug testing in sport—and his but I would say it’s 10 times more pop- now in the hands of WhiteWave, itself son, Oliver. ular than I forecasted.” Marc Stover, VP about to become part of Danone, went Insiders describe these certi! ers as of Marketing and Innovations at Twin- mass, Twinlab has stayed close to its health roughly equivalent as badges of honor in lab , makers of the popular Clean Series and natural retail roots. Other companies the category. “From a sales perspective, of sports nutrition products, would seem that came up in our reporting on this topic there are never enough certi! cations, but to agree. “" e market, everyone knows, would include Dymatize, AdvoCare, and there can be diminishing returns,” says is heading this way, but it’s still tiny. Douglas Labs. Stover. “Education behind what they real- " ere’re a growing number of signals that " e key ingredient to the clean recipe ly mean is not widespread, even at the re- companies in the supplement industry are is third-party veri! cation by the holy trin- tailer level. What’s the di# erence between seeking ways to separate themselves from ity of auditors and testers staking claim to Informed-Choice and Informed-Sport? the bad actors. Companies are providing the sports supplement market. “I would say It’s a huge di# erence, but does the retail- more transparency and a commitment to the big three certi! ers are clearly NSF for er value it, does the consumer understand quality assurance where they can demon- Sport, Informed-Choice, and the Banned it?” Twinlab puts all of its various certi! - strate that their products are certi! ed free Substances Control Group (BSCG),” says cations—NSF, Informed-Choice, Non- of banned substances.” Doug Kalman, Director of Nutrition and GMO, Certi! ed Vegan—front and center

JULY 2016 NEWHOPE.COM/NBJ | 9 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

on pack with detailed descriptions of the and Nutrilite continuing to cater to sports an edgy product than there are top athletes standards involved on its website. consumers. Tangential to the clean move- who get tested,” says Steil. “" at’s where ment, Nutrilite formalized its acquisition of the market got it wrong. It’s not about the What’s it cost? XS Energy, a line of youth-focused energy testing, it’s about concerns over what you NBJ asked Dr. Luther at NSF for some beverages, in early 2015. put in your body. It’s the logical extension speci! cs: “" e cost of product certi! cation of organic and non-GMO, but on steroids. begins as low as $2,500 per certi! ed prod- " e science around GMO safety is noth- uct and goes up from there, depending on Expanding the audience, ing compared to these banned hormones. if the product earns NSF Dietary Supple- growing new markets I think clean is more justi! ed. " ere are le- ment or NSF Certi! ed for Sport certi! - “" ere’s a larger trend toward eating gitimate safety parameters at play.” cation, which includes additional testing clean,” says Stover. “We saw the trend and Kalman thinks along similar lines. “In the on a lot-by-lot basis as well as testing for asked, why can’t people train clean as well, food world, there’s real transparency around more than 200 athletic banned substances. If the manufacturing facility that produces the product is not already one of over 500 NSF GMP registered facilities, the annual fee will increase by $11,000 to $14,000, de- “Candidly, more people want a banned pending on the size and complexity of the operation.” product than there are top athletes " e costs shows up on the shelf, but it could seem a pittance for a chance to win who need the testing … that gold medal, or safely impress your cy- cling group on the weekend. Insiders peg It’s not about the test, it’s about the costs at LGC and BSCG as compara- concerns over what you put in your body. ble, but lower overall. It’s the logical extension of New eyes on sports As further evidence of the traction in organic and non-GMO, but on steroids.” clean sports, look to growth across sales channels—particularly in the profession- al lines being developed by practitioner —Scott Steil, Nutra Bridge brands. Douglas Labs brought us Klean Athlete in 2012, only to strike a non-ex- clusive partnership with the Major League Baseball Players Association in 2015. " e without watering down the products?” Five hormones and antibiotics,” he says. “" ere’s Klean Athlete line is, of course, NSF Cer- years later, it was the right question to ask. depth and nuance to it. In the supplement ti! ed for Sport. Baseline clean—basically, nothing arti! - world, there’s transparency, but only about Not be outdone by a competitor, " orne cial—has blossomed into certi! ed product getting what’s on the label. I think the sports Research announced partnerships with sev- sets that extend well beyond protein and market should be at 7-8% percent growth, en National Governing Bodies (including branched-chain amino acids. “Now we have but as that depth and nuance come into USA Gymnastics, USA Rowing, and USA baseball players asking for our pre-workout clean sports, it can easily go up from there.” Triathlon) in June 2016 to provide athletes by name because it’s NSF tested.” And whether Russia gets to compete with NSF Certi! ed for Sport supplements, But it’s not just about Olympians and for gold or not, expect a post-Olympic as well as baseline blood testing through professionals. Perhaps the value of NSF bump for sales of sports nutrition, especial- its WellnessFX platform. “Even the prac- Certi! ed for Sport or BSCG is equivalent, ly where it runs certi! ed clean. “All of the titioner channel is getting into sports,” says in some way, to the quality seals gaining doping scandals are just wind in the sails Steil, “and the majority are going clean.” traction in food, seals like USDA Organic for clean, science-backed ingredients and " ere’s life in multi-level marketing, as or Non-GMO Project Veri! ed. “Candidly, products,” says Steil. “We see it as a good well, with AdvoCare, USANA, Herbalife, there was a belief that more people wanted opportunity coming out of Rio.”

JULY 2016 NEWHOPE.COM/NBJ | 10 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

Navigating fat fads Weight-loss supplements or supplementing weight-loss?

By Joyanna Laughlin

f it’s time to heal the black eye the loss clients, Nelson’s approach is to focus on NBJ Takeaways natural products industry got from food, combine it with exercise (a blend of recent lawsuits against manufacturers aerobic exercise and weight-training), and » The decision by the Dr. Oz show to I stop highlighting weight loss in- of weight-loss supplements, there’s a new add supplementation for support. Sowers, gredients could drop the number trend in dieting that could do it: Using who also trains athletes for bodybuilding, of fad-driven sales spikes. supplements as support for healthy dieting CrossFit and other sports in addition to instead of supplements as diets themselves. working for Clark’s, has seen what happens » Advising supplements in conjunc- It might even help restore consumer con! - when people want the promissory e# ect of tion with a a healthy weight-man- agement regimen can lead to dence in supplements. supplements without committing to diet long-term customer relationships At least Starkie Sowers, thinks so. and exercise programs. " ey lose weight, not possible with weight-loss-cen- As director of education for the Clark’s but, by the end of a year, most of them have tric products. Nutrition & Natural Food Market chain gained it back. in California, Sowers sees a growing num- ber of consumers going on diets from Make supplements safe again diet, exercise and take supplements for DASH, MIND and Paleo to Bulletproof™ Sowers talks about “Dr. Oz moments,” support keep the weight o# longer.” and even vintage Atkins, and using supple- describing days when Dr. Mehmet Oz In addition, there have been problems ments to augment the process. “" e com- touted the miraculous weight-loss bene- with some dietary supplements, resulting bination of diet, exercise and supplements ! ts of ingredients like green co# ee bean in civil and criminal lawsuits against man- makes extreme sense,” Sowers says. Todd extract, raspberry ketones, and African ufacturers. " ese problems, typically asso- Nelson, D.Sc., a Colorado-based naturo- mango on his show and the products ciated with thermogenic products, Sowers path, agrees. “It’s really about creating a would + y o# retailers’ shelves. " e sales says, have given the industry a black eye in new state of health rather than just drop- didn’t last. " e weight loss didn’t either. the last ! ve years, and consumers have paid ping pounds,” Nelson says. With weight- Sowers puts it this way: “Individuals who attention. " at puts a new kind of pressure

WEIGHT LOSS MEAL REPLACEMENT SALES AND GROWTH, 2005-2018E

$5,000 18% $4,500 16% $4,000 14% $3,500 12% $3,000 10% $2,500 8% $2,000 6% $1,500 4% $1,000 2% $500 0% $0 -2% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e

Sales Growth

Source: Nutrition Business Journal ($mil., consumer sales)

JULY 2016 NEWHOPE.COM/NBJ | 11 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

WEIGHT-LOSS PILLS SALES AND GROWTH, 2005-2018E

$2,500 14% 12% $2,000 10% 8% $1,500 6% 4% $1,000 2% 0% $500 -2% -4% $0 -6% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e

Sales Growth

Source: Nutrition Business Journal ($mil., consumer sales)

on the supplement industry. “I think we’re whey protein derived from cows fed GMO etary supplements sales, according to Sow- in a point of transparency in the industry corn sprayed with Monsanto’s Roundup®. ers. When he recommends supplements to that will last ! ve years or longer,” Sowers “" e trend I’m seeing in the industry is to support weight loss programs, he focuses says. “We’re seeing consumers wanting to have grass-fed whey, which is promising,” on digestive support: ! ber, lypotropics and use diet products safely because the media Nelson says. Pea and rice protein powders thermogenic aids. When it comes to the said we’re unregulated.” are another option, and Nelson has expe- meal replacement/! ber category, Nature’s Perhaps not surprisingly, age plays a role rienced some positive results with it in his Way Metabolic ReSet, Natural Factors’ here. " e customers that Sowers meets who practice, though he has not seen clinical re- SlimStyles PGX, and Renew Life Skinny cautious about stimulants, and say, ‘Prove to search on the products. Gut are all popular at Clark’s. For lypotrop- me that it’s safe,’ tend to be over 40. Where- Nelson also sees the focus on gut health ics, Action Labs products, Natural Factors’ as consumers in their 20s and 30s are likely and microbiome diversity as positive. “Gut PGX products, glucomannan, conjugated to focus more on stimulants for weight loss. health is huge in weight loss,” he says. “I linoleic acid (CLA) and carnitine all sell think there is going to be a big trend to- well. In thermogenics, Clark’s has seen ward probiotics targeting weight loss,” strong sales of Twinlab’s Ripped Fuel and Dieting, supplements though the science behind it is in its in- Diet Fuel, Natural Factors’ Apple Cider harmonize fant stages. Other popular diet trends that Vinegar and Irwin Naturals System-Six. Some of today’s top diets are DASH, can be bene! cial include: minerals (such Ominactive’s Capsimax, he says, is an up- MIND, TLC and anti-in+ ammatory diets. as calcium, magnesium and chromium); and-comer. Nelson recommends a modi! ed Mediter- bone broth; kelp; omega-3 ! sh oil supple- Sowers thinks the trend toward using ranean (MIND) diet for his clients, adding ments; matcha (for its anti-oxidants); and supplements as nutritional support for a that there are more than 3,000 citations for reducing sugar intake. When it comes to program of healthy dieting and exercise is it on PubMed.com. For clients with auto- recommending brands and products, Nel- the best thing for consumers and the nat- immune diseases, Nelson uses a version of son looks for three things: certi! cation that ural products industry. Long-term weight the anti-in+ ammatory diet. manufacturers follow good manufacturing loss and long-term bene! ts are what cre- Weight management starts with pro- practices, third-party lab assays on every ate long-term customers. Sowers talks to fessional-grade functional foods like Meta- batch to check for impurities and ingredi- shoppers about what plan they are fol- genics UltraMeal for meal replacement, ent integrity, and human clinical trials. lowing and helps them choose a supple- Nelson says, and there’s good research on ment regimen to compliment that plan. whey protein powder for keeping muscle Not business as usual “Now’s the time to change,” he says, “as up, burning fat, and helping people feel full. Weight-loss supplements represent ap- opposed to taking PGX and continuing However, Nelson sees some concern about proximately 10 percent of Clark’s total di- doing what you’re doing.”

JULY 2016 NEWHOPE.COM/NBJ | 12 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

! e GNC E" ect After a bleak year for the sports supplements giant, will other retailers change their ways?

By Lisa Marshall NBJ Takeaways y all accounts, these are tough times panied by another 22 percent stock drop for GNC. and dramatic leadership upset as the board » GNC’s heavy reliance on sports B In the past two years, the sports replaced two-year CEO Michael G. Arch- nutrition could be diffi cult to bal- nutrition leader has been: accused in a class bold with interim CEO Robert F. Moran. ance with stated reform measures. action lawsuit of carrying spiked protein To its credit, the $2.6-billion-per-year » Loss of CEO Mike Archbold raises products; investigated by the N.Y. Attorney retailer has fought back vigorously (and questions about continuity of General for allegedly selling house plants in some cases been vindicated) on what reform measures. disguised as store-brand herbs; and sued by it maintains are unfounded allegations, the Oregon Attorney General for “know- while still acknowledging something is » Other supplement retailers face similar problems, but changes and ingly” selling third-party stimulants spiked amiss within the industry, and leading an challenges at GNC are more closely with drugs. It has seen executives from one industry-wide charge for quality control watched. of its vendors, USP Labs, indicted on crim- improvements. But with 45 percent of its inal charges. It has watched its stock value revenue coming from sports nutrition—a plummet by double digits, leading to more category infamous for adulteration—GNC di% cult for GNC to do the right thing and lawsuits—this time from disgruntled inves- faces an uphill battle. still make a pro! t. But doing nothing is not tors. And it has seen year-over-year sales “Quality control costs money,” says an option. " ey’re stuck.” drops eight of the last ten quarters—in- Elan Sudberg, CEO of analytical testing GNC is not the only one. Many say its cluding this week’s announcement accom- company Alkemist Labs. “It’s going to be predicament is re+ ective of sports nutri-

GNC, VSI, DJIA AND S&P 500 SROCK PERFORMANCES FROM JULY 2014 TO JULY 2016, INDEXED TO JULY 2014

160

140

120

100

80

60

40

20

0

GNC VSI DJIA S&P 500

Soucrce: Yahoo! Finance

JULY 2016 NEWHOPE.COM/NBJ | 13 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

GROWTH RATE COMPARISON BETWEEN KEY SUPPLEMENT CATEGORIES, 2005-2018E

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e

Vitamins Herbs & Botanicals Sports Supplements Total Supplements

Source: Nutrition Business Journal (consumer sales)

tion/weight loss retailers who are—more The sports nutrition problem an unapproved ephedrine-like stimulant, than ever before—seeing the onus placed Survey the list of warning letters issued Oxilofrine, was found in 14 dietary supple- on them to assure the products on their by the Federal Drug Administration and ments. While most problems arise from + y- shelves are what they say they are. How you’ll ! nd a litany of workout and diet pill by night internet sellers, major retailers like can they boost quality control for their pri- makers accused of selling “new dietary in- GNC and Vitamin Shoppe are not immune. vate-label brands and better vet third-party gredients” or “illegal drugs.” In October, the Oregon attorney gen- suppliers while still earning the business of " e category is problematic for numer- eral ! led suit against GNC for selling bargain-shopping athletes or dieters who ous reasons. Products often have dozens third-party products containing picamilon want tangible results fast? How can they of complex ingredients, which can make (a synthetic stimulant used as a prescrip- regain the trust of consumers frightened identity testing costly and time-consum- tion drug in Russia) and BMPEA. GNC by headlines? And, in the case of public- ing. Consumers expect to feel something has vowed to vigorously defend itself. But ly-traded companies, how can they do all immediately, which tempts unscrupulous already retailers are tightening up. this while pleasing shareholders? ingredient suppliers to spike their o# er- “Historically, retailers would say ‘It is GNC did not respond to numerous ings with drugs. And the competition is not our problem. We just put products on NBJ requests for an interview about how cutthroat. “It’s a red-alert category,” says the shelf.’ But that has changed a lot in the they plan to address these challenges in Sudberg. “Retailers are competing with + y- last 12 ot 24 months,” says Frank Jaksch, their large sports nutrition category. But by-night companies dealing with unscru- CEO of analytical testing company Chro- analysts, testing companies, brand-hold- pulous suppliers who want to put together madex . “" ey are being scrutinized a lot ers, and other retailers had plenty to say products as cheaply as possible.” more in terms of their culpability, and they about what can be done: “What hap- Cheryl Luther, general manager of di- know it.” pened to GNC is a call to arms for ev- etary supplements for third-party tester eryone to be more vigilant,” says Chris NSF International , says their studies con- What retailers are doing Lockwood, PhD, a former category di- tinue to uncover stimulant drugs “masquer- Since the NYAG action (in which GNC rector for GNC who now provides reg- ading as botanicals,” including DMAA as was found to be in compliance), the retailer ulatory consulting for sports nutrition geranium oil, DEPEA as dendrobium ex- has vowed to add DNA barcode testing to brands. “However they react to this, there tract, DMBA as poochung tea extract, and its litany of analytical tests for botanicals, will be a chain reaction.” BMPEA as acacia rigidula. More recently, raised the auditing requirements for its in-

JULY 2016 NEWHOPE.COM/NBJ | 14 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

gredient suppliers, and bolstered screening for allergens and contaminants. Meanwhile “It’s going to be diffi cult for GNC it’s heading up an industrywide coalition to tighten up supply chains working with the to do the right thing and still make trade associations to develop new standards a profi t. But doing nothing is not for GMPs and ingredient identi! cation— an e# ort the new leadership vows will con- an option. They’re stuck.” tinue—and helping drive the creation of the CRN product registry. But what can it, and smaller sports sup- plement retailers do to hold the brands they Elan Sudberg, Alkemist Labs carry accountable now? Jaksch says every retailer and franchise, small or big, should have a formalized, rig- substances. More than 638 products—in- they remain pro! table? orous process for qualifying vendors before cluding brands True Athlete by Vitamin Yes. But things could be tough for a while. putting them on the shelves. Many don’t. If Shoppe, EAS, TwinLab, Musclemax, and “I think immediately there will be some possible, they should personally visit man- " orne, are now certi! ed, a number that empty shelf space. Some products just won’t ufacturing and lab facilities. " en, test re- has doubled in the past year. pass the test,” predicts Sudberg. “" en they peatedly, either randomly sending out sam- “If the mom of a high-school athlete will be replaced by better products and the ples of ! nished products to multiple labs or comes in my store looking for a clean prices will go up.” (Already, according to insisting that brands do it for them. product they can feel good about their kid analyst surveys, 45 percent of consumers Both Chromadex and Genysis Labs taking, I’ll point them toward NSF Cer- think GNC is too expensive, and a bas- have developed new tests to more accurate- ti! ed for Sport,” says Starkie Sowers, di- ket of goods there costs around 12 percent ly measure amino acid content, and source, rector of education for Riverside-Califor- more than at Vitamin Shoppe and 24 per- in protein powder. And for a company with nia-based Clark’s Nutritional & Natural cent more than at Kroger.) the time and money, companies can devel- Foods Market, which has two stores that Such a “shrink to grow” strategy might op custom tests for even complex, multi- specialize in sports supplements. hurt in the short-term but could bene! t the ple-ingredient ! nished products. Sowers says he’s also boosting education entire industry in the long-term, says Jaksch, who points to the bold decision CVS made in 2014 to stop carrying tobacco products. While most problems arise from “" ey basically said, we are a health and wellness company and we need to take a fl y-by night internet sellers. Major stand and get these harmful products o# of our shelves.” In the short-term, their reve- retailers like GNC and Vitamin nue and stock took a hit. But it appears to be on the rebound. Shoppe are not immune. Going forward, some analysts say the best scenario for GNC speci! cally would be a takeout by a private equity ! rm with a long-view that could push through tough “We are already seeing an increase in (his employees undergo an intense three- short-term decisions without the watchful the amount of testing from suppliers who month nutrition training) and shifting his eye of investors. Others are + oating the say ‘We have to do this now or we are not product set away from problematic stimu- idea of GNC buying up Vitamin Shoppe, going to be able to get our products on the lant-based products, toward cleaner plant- or switching its product mix away from shelf.’ " eir feet are being held to the ! re by based pre-workout, energy, and diet o# er- the problematic sports nutrition category, retailers,” Jaksch says. ings—like apple cider vinegar, capsaicin more toward general wellness products like More sports nutrition retailers are from peppers, green tea, and cocoa extracts. women’s health and probiotics. also beginning to look for independent “" ere are a lot of new raw materials com- No matter what it does, every move will third-party certi! cations, like U.K.-based ing on the market that work well without be watched. Informed Sport, and NSF Certi! ed for the negative side-e# ects or stigma.” “GNC has de! nitely had some mis- Sport. " e specialized NSF certi! cation steps,” says Phil Terpolilli, an analyst with hinges on twice-annual GMP audits, la- Shrink to grow? Wedbush Securities. “But I think they have bel claim and toxicology reviews, and " e question now: If sports supple- a lot of interesting opportunities ahead for lot-by-lot testing for 200 athletic banned ment retailers raise their standards, can them. I’m optimistic.”

JULY 2016 NEWHOPE.COM/NBJ | 15 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

Sprouting up Plant-based proteins gain legitimacy, sales

By Lisa Polito

n sports nutrition, plant-based proteins three veggie protein powder o# erings—all are no longer a novelty or fringe o# er- based on pea-rice blends—have seen dou- NBJ Takeaways Iing. Once a curious oddity, the vegan ble-digit growth each year since initial pro athlete is now as common as tattoos launch of Veggie Protein in 2010. " at » Plant protein could offer supply in a biker bar. Even among bodybuilders, tracks with NBJ data showing plant-based chain advantages against volatile those fanatical worshipers of whey, the protein in sports grew to $977 million in whey market. tide is turning. Sites like veganbodybuild- 2015 on 10.7% growth. McPherson says » New science indicates plant-based ing.com and JackedontheBeanstalk.com MRM anticipates that growth to continue, proteins can be absorbed as well promote vegan, whole-food bodybuilding and so far that growth has not greatly af- as animal proteins. regimes while protein powders adopt to- fected sales of MRM’s whey products. » Purchase of WhiteWave by the-point brand names like IronVegan. Other signs also point to an industry Danone suggests plant-based Even Bodybuilding.com curates a “Top that is not only growing but maturing. protein is an established concept 10 Plant-based Proteins” list. As MRM’s Nothing says “coming of age” in an indus- in the mainstream. quality assurance manager Josh McPher- try like establishment of a trade association, son recalls, “I remember being in R&D and and this spring, formation of the Plant sourcing ingredients: we couldn’t’ ! nd pea Based Foods Association marked that rite by addressing federal policies and subsidies protein anywhere. And now everyone has of passage. " ough the group is not focused that favor the animal food industry. Exec- it. It’s a whole shift in paradigm.” solely on proteins, a central agenda item utive director Michele Simon explains it as McPherson reports that sales of MRM’s aims at leveling the economic playing ! eld a matter of the right idea at the right time:

WHEY INDEX PRICING JANUARY 2015 TO MAY 2016

300

250

200

150

100

50

0 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16

Source: Brian Gould, Agricultural and Applied Economics, UW Madison (Index to Dec 2014)

JULY 2016 NEWHOPE.COM/NBJ | 16 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

WHITEWAVE STOCK PERFORMANCE, JANUARY 2015 TO JULY 2016

$60

$50

$40

$30

$20

$10

$0

Source: Brian Gould, Agricultural and Applied Economics, UW Madison (Index to Dec 2014)

“We’re simply saying it’s unfair for the gov- clean-label consumer shunning the ingre- in muscle-building and recovery, a 2014 ernment to be subsidizing the production dient—and manufacturers scouring and study comparing amino acid absorption of animal foods at a time when we know revising ingredients lists. Even in its or- over a 4-hour period showed no signi! cant that people need to be shifting to a plant- ganic, non-GMO form, soy still sounds the di# erence between rice and whey in total based diet, for so many reasons. We’re just allergen alarm. MRM’s McPherson says amino acid absorption, though rice protein asking for consumers to have a fair shake. they’ve removed soy from their ingredients peaked 20 minutes later than the “fast” ab- lists, sourcing their lecithin from sun+ ow- sorbing whey. “" is was surprising, given the On the whey out er. Such attitudes contributed to soy’s weak notion that plant proteins have lower digest- Whey is still the king of protein sup- 1.6% growth in sports nutrition in 2015 to ibility and bioavailability—it was expected plements, reaching $2.5 billion on 7.9% $480 million. to be much lower in rice,” says Scarlett Full, growth in 2015, but whey’s crown has been Although anecdotal reports of athlet- director of nutrition and research for Axiom battered by marketplace blows—from vola- ic performance on a vegan diet convince Foods , whose patented Oryzatein rice pro- tile pricing to consumer concerns about lac- many, in the sports nutrition category, sci- tein was used in both studies. tose intolerance, bovine growth hormones, ence is what really sways. Whey lays claim Another surprise was the absorption and adulteration with nitrogen-spiking to a decades-long canon of sports nutrition rate of leucine—the only branched-chain chemicals, to say nothing of animal welfare research, often used to dismiss plant pro- amino acid (BCAA) that can trigger mus- issues. Soy, once the apparent protein sav- teins as less digestible and bioavailable with cle protein synthesis on its own. Rice con- ior of the plant-based set, has evolved into an incomplete (read: inferior) amino acid tains less leucine than whey; however, leu- a bad seed, at least in its GMO iteration. pro! le and thus no match for whey’s mus- cine absorption was 18 minutes faster from Ranking among the top three genetical- cle-building and recovery performance. But the rice protein group. “" e [study] authors ly modi! ed crops and top eight allergens, plant proteins are challenging whey’s claim believe this may be the reason they saw the soy is practically a dirty word in some as the gold standard of muscle-building pro- results they did in the ! rst rice versus whey circles. Add a fractioning process that in- tein. On the heels of a 2013 clinical trial, in study,” Full explained. volves hexane, and soy isolate has today’s which rice protein held its own against whey In addition to non-GMO and hypo-al-

JULY 2016 NEWHOPE.COM/NBJ | 17 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

$5.2 BILLION U.S. SPORTS NUTRITION POWDERS SALES BY PROTEIN SOURCE

Pea Other Rice 4% 1% 4% Soy 9%

Whey Casein 48% 15%

Egg 9% Milk 10%

Soucrce: Nutrition Business Journal (consumer sales)

lergenic claims, Oryzatein also ducks the characterizes as a “signi! cant increase” in native Ripple’s upcoming mass launch arsenic issues of whole-grain brown rice growth anticipated in 2018. at Target—the pea is poised to move up thanks to a fractioning process that ensures from farm-team to the majors. no arsenic issues, according to Kay Abadee, Feeling the pulse A robust amino acid pro! le that’s com- Axiom’s vice president of marketing. Axiom Despite the United Nations’ declara- parable to whey (with threefold whey’s ar- had well over 90% of the rice protein mar- tion of 2016 the International Year of the ginine), an 85% protein content, squeaky ket (and about one-third of the pea pro- Pulse, the term “pulse” likely remains for- clean-label credentials (non-GMO, hex- tein market) in 2015, and Abadee reports eign to the average US consumer, but pea ane-free, and free from common allergens) year over year growth for rice protein has protein is fast becoming a familiar ingre- and nutritional bene! ts (! ber, no cholester- averaged over 50% every year since 2011. dient. Axiom’s Abadee describes that con- ol) give pea protein a leg up. And now that NBJ estimates rice protein in sports at $206 sumer education about pea protein as “still functional issues of solubility, taste and tex- million on 11.2% in 2015. A suite of de- not in the ballpark” of soy and rice, though ture have been addressed on the ingredient velopments for Axiom—GRAS classi! ca- with high-pro! le, pea-protein product side, pea protein is taking o# . In 2015, NBJ tion, increased agricultural production, and launches this year—Beyond Meat’s fa- estimates pea protein saw 30.7% growth to factory expansion—will fuel what Abadee mously bleeding burger and dairy alter- $216 million in sports nutrition.

JULY 2016 NEWHOPE.COM/NBJ | 18 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

" e 2016 pea protein market is valued second, o# season crop. “Everything that we signaling product and brand build-out on at $34.4 million, with dietary supplements can do to foster more organic acres grown the horizon for algae. accounting for 40.5% of the revenue and here in the US, we should do it,” Lorenzen Another aquatic, the humble water bakery & snacks claiming just under 30%, says. “How can we give our farmers more lentil (a.k.a lemna or the less glamorous according to a recent report from Future tools in their toolkit so that, ultimately, we “duckweed”), is also gaining attention. P ar- Market Insights. " e market is expect- can be more successful and have more or- abel, Ltd. , is cultivating lemna in Florida ed to exceed $104 million on a CAGR of ganic crop land?” and has developed two powdered protein 12% over 2016-2026. In the near term, a As with rice, research has begun to products. " e soluble 65% protein concen- Research and Markets report forecasts a prove pea protein’s mettle in the weight trate, Lentein Plus, garnered a 2015 IFT Innovation award, though it won’t be com- mercially available until 2017, with future “Rice and pea proteins are no plans for an isolate (speci! cally for sports nutrition). " e minimally processed Len- longer ‘alternatives.’ They are now tein Complete (45-50% protein)—a dis- persible, highly digestible (a PDCAAS of mainstream protein sources.” .92) powder rich in omega-3s that eclipses the micronutrient pro! les of chlorella and spirulina—will be commercially available later this summer. However, the powdered - Kay Abadee, Axiom product is decidedly green; though not a deal-breaker, particularly in the natural channel, the striking color certainly limits CAGR of 8.83% over 2016-2020. room. A 2015 study comparing pea and applications. And green extends beyond In the US, demand for pea protein has whey protein for muscle-building perfor- color to impart a “slight grassy taste,” ad- translated into “extreme growth” for fami- mance in resistance training men showed mits Cecilia Wittbjer, Parabel’s vice pres- ly-owned World Food Processing , accord- no signi! cant di# erence between the two. ident of marketing. A competing product ing to Tyler Lorenzen, president of pro- A subsequent study, published in May, in- under development by Israel-based Hino- tein and ingredient division. " is year, the dicated that amino acid absorption from a man uses a speci! c strain of the duckweed company’s non-GMO PURISPea line of pea-rice blend plus digestive enzymes (the family, mankai, and claims to have a milder products (also available as organic) received study used MRM’s Veggie Elite, a mix of + avor, closer to spinach. GRAS classi! cation, and the company Axiom’s pea and rice proteins with MRM’s undertook expansion of its pea protein fa- Digest All digestive enzyme product) ac- The future for plant proteins cility in Turtle Lake, WI. With roots in tually peaked faster than whey and with a While science and technology have organic, non-GMO plant protein produc- comparable total concentration. addressed taste and texture issues of some tion stretching back to 1985, the company plant proteins, sports nutrition research already had cultivated a closed-loop, fully Big gains for tiny plants? needs to catch up with the anecdotal re- vertically integrated system—from seed Conventional commodity crops aren’t ports of performance improvements from breeding to ingredient manufacturing— the only promising plant proteins on the plant-based diets. As Axiom’s Full points custom tailored to meet today’s clean-la- horizon. Micronutrient-rich seeds such out, “One of the reasons that whey is so es- bel demands. As Lorenzen, whose parents as hemp, pumpkin, + ax, chia, and sacha teemed is because it has years of research to founded the company, explains, “" e mar- inchi are also popping up in plant-based support its use. Plant protein is de! nitely ket has shifted to what we do best.” protein blends, though none deliver the just in its infancy; I think it just needs time " rough its genetics program, World protein punch of the concentrates or iso- to get built up.” Foods is also expanding the growing re- lates. Algal protein from microalgae in- Consumers aren’t waiting for the re- gions of the traditionally northern crop to novator TerraVia (formerly Solazyme), search: they want more protein and more areas as far south as Mississippi and Arkan- which boasts 63% protein from a non- options from plant sources. New Hope sas—an integral step in meeting increasing GMO, allergen-free whole food source, Network analysis found product claims for demand. " at’s good news for the compa- is among the mix of plant protein sources protein increased 48% at Natural Prod- ny’s network of organic and non-GMO in TwinLabs Clean Series Veggie Protein. ucts Expo West 2015 from the year be- farms because peas are a nitrogen ! xing In 2015, the algal protein product received fore. Even as general consumers seek more crop that improves soil health (which could GRAS classi! cation, and this year Terra- protein-rich on-the-go drinks, snacks, and get the pea nominated for environmental Via entered a joint-venture (Terra Brands) meal replacements, athletes are seeking sainthood) while also providing farmers a with private equity ! rm VMG Partners , more protein from whole foods and meals,

JULY 2016 NEWHOPE.COM/NBJ | 19 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

as well as alternatives to bars and shakes. “I think 10, 15 years ago, there " e origin story of Protings protein snack chips begins with post-gym “frustration” at was probably more of a distinguishing the lack of protein snack alternatives to bars and shakes. " is month, another brand of line between what’s food and protein snack chips, i won! protein chips (20g), launched at Vitamin Shoppe. what’s sports nutrition, and now VMG managing director Wayne Wu it’s really blending all together.” sees a blurring line between food, wellness and sports supplements. “I think 10, 15 years ago, there was probably more of a dis- tinguishing line between what’s food and -Wayne Wu, VMG what’s sports nutrition, and now it’s really blending all together.” He points to Vega—one of VMG’s in- " is week, that category blurring will the ! rst in a line of innovative products vestments—as an example of a food-based, spread to the dairy aisle, as pea-based from its Bolthouse Farms brand. “Rice and plant-based, clean-label wellness company dairy alternative Ripple, with a milk-rival- pea proteins are no longer ‘alternatives,’” with appeal to general consumers. Since ac- ing 8g protein claim, will jump straight to Abadee says, “" ey are now mainstream quisition by White Wave (also recently ac- a nationwide product roll out at Target, protein sources, bene! tting allergen-free quired by dairy giant Danone), Vega prod- after an initial release at Whole Foods. labels, which the largest global food and ucts are available everywhere from Whole Next year, Campbell’s Soup plans to beverage manufacturing companies are Foods to Walgreens. launch a pea protein dairy alternative as racing to incorporate.”

ANIMAL AND PLANT PROTEIN MARKET SHARE IN THE SPORTS NUTRITION POWDER SEGMENT, 2013-2018E

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2013 2014 2015e 2016e 2017e 2018e 2019e 2020e

Animal Protein Plant Protein

Soucrce: Nutrition Business Journal (consumer sales)

JULY 2016 NEWHOPE.COM/NBJ | 20 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

Bars hopping Innovation matches pace with strong growth

By Cindy Heller

he bar category reached $4.5 billion sweeteners, and refrigeration are in+ uenc- NBJ Takeaways in 2015 while posting 10.1 percent ing natural products bar innovation and Tgrowth over 2014. Similar momen- fostering growth. » Strong sales suggest wave of tum is also being observed at the front- Below are thirteen examples of innova- entrants has failed to saturate the end of innovation as well. Bars claimed an tive bar product concepts validated by the market 18 percent share of products displayed at NEXT Concept Lab. NEXT Concept Lab » Protein, clean ingredients and Natural Products Expo West 2016 for the uses consumer surveys to test product con- better-for-you indulgence garner Diet & Nutrition Category, and the overall cepts in their early stages and measure pur- strong appeal with consumers. growth over 2015 was 24 percent. Emerg- chase intent and the probability of success. ing trends including protein, probiotics, pa- " e NEXT Concept Database includes leo, vegan, superfoods, insect protein, meal more than 900 veri! ed natural products of mainstream success, purchase intent and replacement, sustainable energy, healthy concepts including descriptions, probability consumer feedback for each concept.

Market Prediction Purchase Intent Innovative Bar Product Concepts (%)* (%)* Blueberry Pecan Nut Bar: Blueberry pecan, all-natural nut bar with 94 9 added ! ber, containing real blueberry pieces. Dark-Chocolate Frozen Ke! r Bars: Chocolatey, creamy and nutritious dessert packed with 10 live and active probiotic cultures. 92 23 Made with all natural ingredients and packed with protein and calcium. Elderberry and Dark Chocolate Bar: Stevia-sweetened bar mixed with elderberries, dark chocolate and cocoa; high in antioxidants and 92 21 satisfying " avor. Slow Carb Energy Release Snack Bar: Low calorie, on-the-go snack providing sustained energy by including slowly digestible whole-food 90 11 carbohydrates designed to minimize blood sugar spikes. Apricot and Pistachio Yogurt and Oat Gourmet Snack Bar: Yogurt and oat gourmet snack bar with apricot and pistachio: 89 17 full of essential nutrients. Paleo Crunchy Fig Chocolate Bar: A paleo and vegan bar that is 72 percent chocolate and contains just a few ingredients: 89 13 cacao, organic coconut sugar, almonds and organic ! gs. Paleo Friendly Raw Snack Bar: Paleo friendly organic raw snack bar infused with simple ingredients, including nuts, honey, vanilla, sea salt 89 9 and savory herbs. Vegan Almond Coconut Nutrition Bar: A super-clean, organic and vegan nutrition bar containing 8 grams protein and 20-plus superfood powders like kale, " ax, papaya, tomato, spinach, etc. Because it’s free 86 13 from any preservatives, this is one of the few nutrition bars requiring refrigeration. Low-Sugar Superfood Protein Bar: A blend of meat, vegetables, fruit and grains packing high levels of protein but only 1/3 the sugar of 84 16 similar and competitive protein bars on the market.

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Market Prediction Purchase Intent Innovative Bar Product Concepts (%)* (%)* Artisan Whole Food Protein Bar: Whole foods protein bar made with 9 essential amino acids and no ! llers, providing high protein and 82 9 sustainable energy; lemon coconut " avor.

Refrigerated Chocolate Protein Bar: A fresh, high-protein, whole-food bar packed with superfood powders, including organic kale, " ax, rose hip, orange, lemon, alfalfa, celery, kelp and more. These bars 82 15 are meant to be kept in the refrigerator, so they contain absolutely no preservatives and deliver 8 grams of protein per bar. Matcha Green Tea Infused Chocolate Bar: A chocolate bar made with Mat- 81 13 cha Green Tea, which helps boost immunity, health and wellness. Probiotic Greek Yogurt Chia Bar: Probiotic Greek Yogurt Chia Bar 79 13 packed with antioxidants, protein and probiotics in a Greek yogurt coating.

Source: NEXT Concept Lab Database *Market Prediction Score represents the probability that a concept will sell well over the next 12 months, as predicted by a given segment. Market Prediction Benchmark Average=69, Min=8, Max=99. *Purchase Intent Score reports percentage of respondents replying “yes” to the question “Will you purchase this product concept in the next 12 months?” Purchase Intent Benchmark Average=9%, Min=1%, Max=31%. So, this bar walks into a retailer... Finding a niche within a saturated bar category

hile the bar category continues to People want portable nutrition. In an oversaturated perfor- see double digit growth—and is Anything in a small format and trav- mance snack category, what bar Wexpected to do so at least through elable works well—we see the same would catch your attention? 2020—it’s a crowded shelf. NBJ bellied up to thing with the functional beverages: High protein or paleo bars are on an up- the category with a few questions for buyers. if it’s something you can grab-and-go, swing for us. Jerky and jerky type bars are Here’s what they had to say:w we’re seeing good traction right now. moving well and the combinations of + a- – Scott Owen, PCC Natural Markets vors seem endless. Even meal replacements Why do you think bars are with clean ingredients are still in demand. seeing such popularity/growth? What type of bar are you – Cheryl Hughes, Whole Wheatery As customers become more aware of inundated with / have no their personal health and wellness—and interest in seeing more of? Bars moving into refrigerated sets with begin to understand how food can enable Bars that are copying Kind bars. Hemp Core and Perfect Bar, the strati! cation of or disable—the bar category is in the per- and Chia based bars. I feel that both hemp protein sources into animal like Epic, and fect place to provide many solutions to and chia were trends that are losing steam. new form ideas such as a ! lled bar from many people. Whether protein, portion – John Park, Yes! Organic Clif. All of these show potential to bring control, heart health, digestive or ... fair more customers into the category and cre- trade and organic, the category can cover Non organic bars with high sugar con- ate new usage occasions. – Martines many of the important trends in wellness tent; “diet” bars with low nutritional bene- today. Along with that ... ease of trial, low ! t. – Mark Cronin, Jimbo’s Naturally Organic and Non GMO Project ver- retail, portability, [gives you] a product that i! ed bars with few ingredients. Phive Bar is making it easier for consumers of all Bars that pretend to be healthy but are is an example that has performed very well demographics to participate in healthier ! lled with hidden sugars and empty calo- for us. Protein based bars that ! t the paleo lifestyles (not that all bars are healthier). ries. " is is what we call candy. – Martines lifestyle. – Cronin – Mathis Martines, Kroger Extruded gluten-free paste type bars. I like brands that have popped up like Most consumers are ! nding that We’ve seen maybe 100 di# erent brands over " at’s It (fruit bar), Nature’s Bakery (Fig brands are really pushing clean ingre- the the last year that have the same pro! le. Bars) and Bobo’s Oat Bars (Oatmeal Bars) dients and low sugars, and for a quick Not that gluten-free isn’t important, but … bringing innovation to the category. snack, it ! ts perfect for most people. everyone’s leading with that. " e extruded – Zimmer – Adam Zimmer, Lucky’s Market bar is our nemesis right now. – Owen

JULY 2016 NEWHOPE.COM/NBJ | 22 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

D-activated Is vitamin D an overlooked opportunity in sports and weight loss?

By Barry Bortnick

thletes seeking an edge or couch plements. NBJ Takeaways potatoes looking to lose love han- " e Italian study found a connection Adles should ponder the bene! ts of between low vitamin D levels and obesi- » A blockbuster in the general vitamin D. ty-related health issues. Researchers exam- nutrient category, vitamin D could And supplement companies might want ined 400 overweight subjects who lacked present an underappreciated to take a fresh look, too. su% cient vitamin D in their diets. After a opportunity in sports Fitness experts, researchers and nu- six-month review, they determined that the » Recent research ties higher vita- tritionists contend vitamin D is an essen- subjects who received vitamin D supple- min D levels to weight loss, tial but often overlooked ingredient for ments lost more weight than those who did but few weight-loss products strengthening the body, boosting endur- not receive supplements. made the connection in claims. ance and losing weight. “" e present data indicate that in While D’s role in sports has been ex- obese and overweight people with vitamin amined for decades, new research suggests D de! ciency, vitamin D supplementation higher levels of D and athletic success date the vitamin also plays an important role in aids weight loss and enhances the bene! - to the 1930s when Eastern European na- weight loss. A 2015 study out of the Uni- cial e# ects of a reduced-calorie diet,” the tions dosed athletes with ultraviolet rays versity of Milan determined that obese researchers determined. to boost vitamin D levels, according to Dr. Americans who lacked proper levels of the Vitamin D is also well-known in the John J. Cannell, who runs " e Vitamin D vitamin lost weight through the use of sup- world of sports and ! tness. Links between Council, a nonpro! t that works to educate

VITAMIN D SALES AND GROWTH, 2005-2018E

$1,200 140%

$1,000 120%

100% $800 80% $600 60% $400 40%

$200 20%

$0 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017e 2018e

Sales Growth

Source: Nutrition Business Journal ($mil., consumer sales)

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patients, families and health professionals about the need for vitamin D. “There is barely an organ in the body " e UV radiation practice contin- that is not affected by vitamin D.” ued for decades and, though other ques- tionable measures have since come to light, may have helped Eastern Europe- an nations succeed at Olympic sports. -Trevor Connor, cycling coach “" e Germans and the Russians were radi- ating their elite athletes,” Cannell says. “" at was when they dominated the Olympics.” such, many experienced higher levels of set in Mexico City, including Bob Bea- Cannell says the tables turned in 1968 sunlight than they’d seen in training, likely man’s famed long jump of 29 feet, 2 and ½ when " e Olympic Games occurred at boosting their vitamin D levels. inches, which shattered the old record and high altitude near the equator in Mexico " ough speculative, Cannell connects stood until 1991. City. He points out that many athletes ar- the boost to American athletes’ successes Many other coaches and nutritionists rived early to acclimate to the altitude. As that year. A number of world records were say that low levels of vitamin D hurt ath-

$831 MILLION VITAMIN D SALES BY CHANNEL, 2015

Direct to Consumer 22%

Natural & Specialty 42%

Mass Market 36%

Source: Nutrition Business Journal (consumer sales)

JULY 2016 NEWHOPE.COM/NBJ | 24 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

letic performance. " ese experts say that tended to get cut from the roster when com- " at’s not a lot of product for an ingre- anyone seeking to prepare for the grueling pared to those with proper vitamin D levels. dient with so much science, but in the new- world of high-level sports must look to vi- Ryan Kohler, sports performance manager and-next world of weight loss and sports tamin D for help. at the University of Colorado, Boulder’s nutrition, vitamin D might sound to some “Vitamin D is really a hormone that Sports Medicine and Performance Cen- like the oldest of old news. It could be dif- is produced in the skin from direct UV ter, agrees. “" e study from " e Pittsburgh ! cult to use a letter vitamin to di# erentiate exposure,” says Trevor Connor, a Toron- Steelers makes sense and is supported by a product, but with sports nutrition compa- to-based cycling coach and an expert in other research that says that athletes or nies attempting to expand the market past exercise science and nutrition. “It plays a those with insu% cient vitamin D may be the weight room crowd, touting vitamin D whole variety of roles in the body. … " ere more prone to fractures and immune issues as primary component in a sports or weight is barely an organ in the body that is not and longer term health issues,” he says. “It loss support product could be a bigger op- a# ected by vitamin D.” seems that there are those issues that are portunity than many realize. According to Connor, low amounts of D slow recovery time from injuries and hinder an athlete’s ability to train and im- prove. Connor said he became sick after his 2004 move to British Columbia, where The issue of vitamin D levels the northern location lacked UV exposure. “I would not be surprised if vitamin D de- and high-end sports got new ! ciency played a role in that,” he says. While maintaining proper vitamin D attention last year after a study involving levels—the current recommended amount is 4,000 International Units (IUs) a day— the Pittsburgh Steelers football will improve health, the matter is key for team linked low vitamin D levels with athletes, who seek to improve their per- formance. “Maintaining vitamin D levels poor performance on the fi eld. is very import to athletes,” Connor says. “Because if you train perfectly but get sick A 2015 study out of the all winter that will be an issue.” Connor says that high-level athletes University of Milan determined that can’t operate at their peak with low vita- obese Americans who lacked min D levels. Yet, three-quarters of all the athletes he has tested have less than ideal proper levels of the vitamin lost weight levels in their bodies. “When you are dealing with a high level through the use of supplements. sport and athlete, they have to be at peak to win,” Connor says. “Any de! ciency will af- fect performance. “With elite athletes, 50 percent of the time we talk about how to train week in and related to low vitamin D. With football, the Vitamin D became an unlikely block- week out, and if they don’t take care of their players practice inside and have less expo- buster in the last decade—moving it into health, they will get injured or burn out, and sure to the sun with their uniforms.” sports and weight loss may be an easy nudge. if they are insu% cient in vitamin D, they " at science, however, does not seem While Connor cautions that taking the won’t be able to do the training.” to be making a splash on the label. Few right amount of vitamin D won’t guarantee " e issue of vitamin D levels and high- companies are touting vitamin D as part a world record long jump, he adds that the end sports got new attention last year after a of a sports conditioning or weight loss. At proper levels will bene! t those seeking to study involving the Pittsburgh Steelers foot- BodyBuilding.com, an e-commerce epicen- improve athletic performance. ball team linked low vitamin D levels with ter for both categories, only three products “I doubt you will suddenly beat every- poor performance on the ! eld. According to connected vitamin D with sports or weight one else in a race,” Connor says. “But the a 2015 study and an account in " e Wall Street loss. Two were from Nordic Naturals (Ulti- bene! ts (from correct levels of vitamin D) Journal , Pittsburgh players who su# ered at mate Omega Vitamin D-3 Sport and D3 can be found in overall health, which will least one bone fracture had signi! cantly low- Sport) while Live Long Nutrition promises allow you to train at your best and that er vitamin D levels. " ose with low levels also its Omega D3 “supports lean body mass.” should not be underestimated.”

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QA The negatives of testing positive

Q&A with author Mark Johnson

» Sports journalist Mark Johnson has covered cycling since the 1980s, including a year traveling with Jonathan Vaughters’ Garmin cycling team—a project determined to eliminate the doping that has plagued pro cycling since the 1800s. His latest book, Spitting in the Soup: Inside the Dirty Game of Doping in Sports, exposes what he calls a societal double standard: “We’ve said publicly that performance enhancing drugs are fi ne, and we’re going to advertise them to you and your nine-year-old on television,” he told NBJ, referring to drugs like Viagra and Adderall. “Yet at the same time we hold athletes up to a set of completely different set of standards.” NBJ talked to Johnson about doping in the Olympics, and the role of supplements for elite athletes.

NBJ: Say more about that double standard. ancillary damage that comes when they take an iron supplement Johnson: Typically the media starts from the premise that that’s contaminated with something else. " e risks aren’t in the drugs are inherently evil, and that sport is inherently virtuous supplement. " e risks are in the lack of good policing in the face of and uncorrupted. " at’s really a false premise because the nature the supplement industry. " ere’re a lot of supplement makers that of sport isn’t fair play. " e nature of elite sport is to push the are going to say, “How dare you paint us all with the same brush.” boundaries of human endurance, and the nature of professional It’s unfair, but the fact is these elite Olympic athletes are responsi- sports is to entertain and sell products. Today anti-doping is re- ble for what goes into their body, and if they can’t trust what’s on ally a modern manifestation of that e# ort to impose purity in a the label then they’re under a lot of risk by taking supplements. corrupted world. " e problem is incredibly di% cult, particularly in America, where we didn’t even have an anti-doping agency NBJ: Do you think that’s especially true in performance categories until 2000. France banned doping in sports and made it a federal like sports and weight loss? o# ense in 1965. We didn’t care until the year 2000, and the only Johnson: What WADA told me they found in their research is reason that we created the U.S. Anti-Doping Agency is because that, for instance, for a bodybuilder who’s trying to see their muscle the World Anti-Doping Agency (WADA) was created in 1999 size increase, sometimes supplements aren’t doing anything. So, for so we had to go through the motions. a supplement maker to get their customers to come back they will lace their supplements with anabolic steroids or anabolic steroids NBJ: What do you see as the ultimate resolution of that double precursors. " at’s not on the label but it’s in the product, and so standard? consumers are coming back for that. " at’s what WADA’s testing Johnson: It’s much more comforting if we can say that there are of global supplement labeling accuracy indicates is happening. I good guys and there are bad guys, and if we could only get rid of the think for the average consumer it’s not a big deal that you might bad guys—like Lance Armstrong, Floyd Landis, Ben Johnson, the take a supplement that’s contaminated or might harm you health- people who’ve been caught doping—sport would fall back into a wise. Maybe, I don’t know. But for an athlete who’s going to be state of purity. " at’s false because the powers that overlook, or con- tested, there are real economic repercussions there. done, or actively promote doping are much larger than the powers that want to clean up sport. It’s really going to take a cultural change. NBJ: For the general consumer taking a muscle gain supplement, Doping is a collective endeavor. It’s not just an issue of morally de- maybe the desired results aren’t possible with legitimate and bene- generate individual athlete. It’s much bigger than that. ! cial supplements. Is there a drive to just look the other way? Johnson: In bodybuilding yes, but also in society in general. NBJ: Do you think there’s legitimate role for supplements in pro- We advertise on television treatments for low T. You can go to a fessional sports? lifestyle enhancement clinic and get testosterone treatments or Johnson: I think for elite athletes, because they are pushing their human growth hormone to make you perform better in the dat- bodies to the limits in terms of exercise, and their nutritional needs ing game, the game of life. As Americans we don’t have a prob- are pretty unique, yeah, certainly. " ere are cases where athletes lem with that. I think it gets back to that double standard where are truly iron de! cient because of what they’re putting themselves we say these athletes shouldn’t be taking these performance en- through. I think for those athletes there certainly are. But again, I hancing drugs, but for someone to get ahead in life that’s ! ne. don’t think the issue is so much in the role of supplements, it’s the Look at the use of stimulants to treat attention de! cit. In 1990

JULY 2016 NEWHOPE.COM/NBJ | 26 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry

there were 10 million prescriptions written for ADHD drugs like have been taking drugs. The supplement industry gets thrown Adderall, which is an amphetamine. In 2010 there were 46 mil- under the bus. lion prescriptions written for stimulants for ADHD and in 2014 there were 58 million. Half of those went to children between NBJ: What do you see cleaning up the situation? the age of four and 17, so here we’ve got industrial-scale doping Johnson: I think it has to come from a cultural change in of American kids. " ere’s no outrage over that. We seem just ! ne expectation, but I don’t see how that can happen, particularly in with it. And of the adults, 64% don’t even have ADHD. Why are Olympic sports, because Olympic sports are really an extension they taking them? Performance enhancement—so you can focus of geopolitical battles for national status. You look at Russia better in school, you can focus better on your job. When I was today, they have a state-run doping program. Why? To assert with the Garmin team they would use supplements for the same the success of the Russian project. Just as in the past the Unit- reason I talked about, that these guys are pushing their bodies to ed States, during the Cold War, overlooked doping. We were the limits of human endurance, and they simply struggled to get tired of being embarrassed on the Olympic playing ! eld by the enough of the proper nutrients through diet. " ey would take Soviets, and by the East Germans, so we overlooked it. You’re supplements, but what the Garmin team would do is when they not going to change that. Countries are still going to ! ght for would get a batch of supplements they would have them tested to power and position, and the Olympics are an extension of that ensure that the supplements were actually pure. battle, and doping is part of that battle. " at’s a very, very di% - cult force to stop, if not impossible. " en there are the athletes NBJ: How do athletes protect themselves from spiked supple- themselves. " ey don’t want to dope, but to succeed in certain ments? sports the perception is that they have to. Johnson: I think given the nutritional supplement industry’s track record, the only way for an athlete to protect themselves is NBJ: What would you say to supplement makers? not to take supplements. I know this interview is for the supple- Johnson: I think, particularly for your publication, some- ment industry and that’s when I go, “Come on guys. Clean up your body might read my book and say, “Well this guy has a funda- act. It can’t be that hard.” But because it’s a completely unregulated mental bias and he’s just out to get the supplement industry.” industry anybody can hang out a shingle and say, “All right, I’m That’s not the case at all. I’m really more puzzled about why a supplement manufacturer.” " at creates a lot of opportunity for the supplement industry hasn’t done a better job of tackling fraud and bad actors to enter the industry. this obvious problem that seems to continue with contamina- tion and bad labeling. But then, if you do really start to do a NBJ: Do you think supplements are ever used as a scapegoat for better job inspecting your suppliers’ factories, you’re going to the doping? have to pass on those costs to the consumers. They might not Johnson: Totally. That’s one of their first lines of defense be willing to pay for it, especially a consumer who isn’t making is to say, “Oh, I took a bad supplement. It’s not my fault, the a living out of pro sports, and could care less if the supplement supplement industry is at fault,” even though they may well is contaminated.

1928 1967 1988 2008 2010 Jamaican Olympic First Rule Against IOC Establishes Ben Johnson, Jessica Hardy is Commonwealth Medalist Sherone Doping in Sports Medical a Canadian banned for 2 Games Federation, Simpson is given is instated by the Commission to sprinter, is years due to an when asked about an 18 month ban International Fight Doping stripped of his anabolic agent, the numerous sus- for testing Association gold medal at clenbuterol, pensions surround- positive for a of Athletics the 1988 Olympic being found in ing the stimulant banned Federation (IAAF) Games in Seoul, her urine sample. Methylhexameam- substance. Korea and blames In 2009 she ine, President Mike She blamed the the positive test appeals stating Fennell stated, “At positive on a sup- for stanozolol, an that the sub- this stage I cannot plement, Epiphany anabolic steroid, stance was in a speak very de! ni- D1, but acknowl- on a spiked nutritional sup- tively as to where edged that she did herbal drink. plement made by it’s coming from, not disclose the one of her spon- but it appears to us new supplement sors, AdvoCare. that it may be com- on doping control The arbitration ing from the use of forms. panel accepts this supplements.” claim and lowers 2014 her ban to 1 year.

JULY 2016 NEWHOPE.COM/NBJ | 27 NBJ 2016 Sports Nutrition & Weight Loss Strategic Information for the Nutrition Industry 2016 EDITORIAL CALENDAR (10 issues per year including 2 double issues)

January/February Double Issue A look back at 2015 March The Awards Issues April The State of Supplements May/June Trust and Science July Sports Nutrition and Weight Loss August Condition Specific September Ingredient Innovation October New Supply Chain/Food Tech Issue November Functional Food/Personalized Medicine December The Retail Issue MARKET RESEARCH REPORTS

High-level Analysis and Business Intelligence for Industry Decision-makers Nutrition Business Journal’s market research reports provide business intelligence and thought leadership to all levels of the nutrition industry. Each report is exhaustively researched by our staff of industry experts and presents an analysis of markets, trends, competition and strategy in the U.S. and Global nutrition industry.

2016 Reports will include: • 2016 NBJ Global Supplement Report • 2016 NBJ Direct to Consumer Report • 2016 NBJ Supplement Report • 2016 NBJ Sports Nutrition and Weight Loss Report • 2016 NBJ Raw Material and Ingredient Supply Report NBJ is offering a Digital Subscription package for $1395.

This package includes: • Daily NBJ Subscriber content on newhope360.com • Access to 5 years of NBJ Back Issues • PDF of Monthly Issue • 10% discount in the Online Store including data charts, market research reports, and company profiles.

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