Changes®,
Twinlab® in the News:
In recognition of a long record of growth and achievement, Twinlab
was named Nutritional Outlook's 1998 Manufacturer of the Year. The concrete walls and roof decking are finished
in Natures Herbs new 160,000 square foot production, warehouse and corporate offices in
American Fork, UT, but the windows arent in place, leaving a magnificent view of the
mountains outside Salt Lake City.
Scott Jenkins, director of plant operations, is giving one of his many site tours. He
carefully steps around construction debris in what will be the new employee locker roomthe
labor force will shortly increase from 262 to over 300. Someone mentions that Natures
Herbs parent company, Twinlab, is working on a new five year plan. Jenkins stops by one
of the window openings. Really? he asks with a concerned glance at the open space
around the plant. Our five year plans tend to be completed in about three years.
Which means his free space may be gone sooner than later because Twinlab is on a mission to
become the top supplement manufacturer in the world. Step one was to expand or acquire its way
into all four distribution channelshealth stores, mass market, direct sale and mail
order. Step two is international exposure. Twinlab believes that to be a player it needs a
presence overseas. Step three is a massive push into the mass market. Right now, Twinlab has
about a one percent market share in stores such as Rite-Aid and Target. There is plenty of
room to grow share to 15 percent, a move that would put its products in up to 47,000 outlets.
Finally, step four is a $17 million capital expenditure program to boost production so that
there are enough Twinlab products in every channel.
Twinlab needs the extra capacity. The Ronkonkoma plant runs 24 hours a day, often seven days a
week. The American Fork facility is in the middle of its second expansion in four years,
including a $13.4 million expansion which will add much-needed encapsulation rooms, capsule
filling lines, a 50-foot high storage facility and the companys first blister
thermoforming line.
Demand will only increase. Twinlab has averaged 25 percent sales growth annually, adding 100
new products this year alone, including 51 new products from the introduction of TruHerbs®
and a new line of supplements under the brand name Ironman Triathlon Nutrition consistent with
the food bar sold under that name by PR Nutrition, also acquired by Twinlab. Without question,
manufacturing at Twinlab will be stressed for years to come.
The manufacturing group is accustomed to dealing with fast growth. The plants are flexible
enough to supply close to 1,000 products in more than 2,000 skus in distinct dosage formsliquids,
powders, capsules and tablets. And despite its size, the system is oriented around quality and
the use of cutting edge technology. All in all, manufacturing has the tools to keep Twinlab a
step ahead of sales projections.
The fast-paced supplement industry presents interesting challenges. When Warner-Lambert and
Bayer rolled out herbal lines, Twinlab responded with its first entry in the herbal market,
the 45-sku TruHerbs product line. Seven of the herbs are sustained release products in pharmaceutical
blister packages even though Twinlab did not have blister lines at the time. That will changethe
TruHerbs line is currently co-packed, but the new packaging area in American Fork has room for
a first-of-its-kind blister thermoforming line from Klöckner Medipak, Clearwater, FL, which
will be up and running in 1999.
It is this ability to adapt to changes in the market, along with impressive productivity and
the confidence to set high standards that make Twinlab Nutritional Outlooks 1998
Manufacturer of the Year. Twenty years ago, Twinlab was filling bottles in two rooms in Deer
Park, NY. Today, it makes 400 million capsules a month. Its a success story worth
telling

POWER BROKERS
(from left) Brian Blechman, Executive Vice President, Treasurer and Director; Ross Blechman,
Chairman of the Board, CEO and President; Dean Blechman, Executive Vice President and Director;
Neil Blechman, Executive Vice President, Secretary and Director; and Steve Blechman, Executive
Vice President and Director |
Hours A Day
Twinlabs workhorses are its plants in Ronkonkoma, NY and American Fork, UT. The plants
are as different as night and day. The Ronkonkoma plant is old by industry standards, crowded
and non-linear because capacity was added as needed over the years. American Fork is four
years old, spacious, with computerized energy and environmental systems and linear product
flow progressing from raw material to case packaging and palletizing. There were days in
Ronkonkoma when you would come in and a wall would be gone because we were adding on,
says Ross Blechman, president and CEO, Twinlab. Utah is a monument to what weve
learned.
Ultimately, both facilities will be capable of producing every
Twinlab product. In the past, we made tea and botanicals in Utah and everything else in
New York, says Blechman. But thats changing. We adapt to demand. When the
herb business went through the roof in the first quarter, we made herbs in New York and we did
it on a weeks notice.
Every manufacturing facility has a core philosophy. Twinlab adheres to many of the same good
manufacturing practices and SOPs as a pharmaceutical company. In this industry, the
barriers to success are becoming higher, says Blechman, which is why we run
manufacturing just like a drug company. We dont want to be regulated like
pharmaceuticals, at least as far as the products we sell, but our manufacturing is very close
to their standards.
The Ronkonkoma facility is Twinlabs main manufacturing plant. During production,
Ronkonkoma is a beehive of activity, with the packaging lines running all out in the front of
the plant and all other functionscompounding, blending, tableting, encapsulating, tablet
inspection, receiving, QC and the warehousespread out behind the packaging room.
The packaging floor is the heart of the plant. Ronkonkoma has 10 lines, eight for capsules,
two for liquids and one for powder filling. Most handle amber glass bottles although some
products such as Creatine for retail markets are packaged in plastic.
All four dosage forms are packaged although capsules and tablets make up the bulk of Twinlabs
products. The packaging lines were integrated by DT Lakso, a division of DT Industries,
Springfield, MO. The lines are equipped with as much automatic technology as possible
including automatic slat counters, cotton dispensersno synthetic rayon for Twinlabinduction
heat sealers, labelers, metal seal detectors, laser coders, full body shrink overwraps and
checkweighers and automatic cartoners.
The process begins in the warehouse when capsules are released from quality control. Twinlab
sells six capsule sizes, 000 to Number 4, and could change over a line up to four times a day.
Capsules are placed in the first of three hoppers feeding the four-lane slat counter. Capsules
feed into glass bottles at a rate of 100-125 bpm. Accuracy is assured with computer control.
Once filled with capsules, bottles progress down the line to a desiccant feeder. Two kinds of
desiccants are used, one for odor, one for moisture, depending on the product. After the
desiccant station, from one to seven inches of cotton are inserted into the bottles. Next
comes labeling and capping. Each cap has a liner with a layer of aluminum and each bottle has
a foil inner seal. The foil layer inside the cap adds an extra oxygen and moisture barrier. In
addition, a metal detector on the line acts as an extra quality check by insuring the inner
liner is present in the cap.
After capping and sealing, bottles receive a pressure-sensitive label on a labeler from New
Jersey Machine/CLI Systems International, Lebanon, NH, and a clear full body PVC shrink wrap
from PDC, Norwalk, CT. Were very particular about our labels, says Blechman.
The seal is precisely positioned so that it is in the same place every time. Our logo
appears at the top of every bottle. The shrink film protects the entire bottle and label and
adds security. It adds almost nickel to the price of the package, but its worth it for
the quality.
Coding takes place on a Videojet Excel laser coder. The laser prints up to two lines anywhere
on the bottle, an important consideration considering Twinlabs inventory. During
any given day we can run any of our products and we have 10-15 different size caps and 20
different bottle sizes, explains Blechman.
Once labeled and shrink wrapped, bottles move to a rotary accumulator and unscrambler from
Omega Design, Exton, PA. Bottles are placed in cartons which are double bar coded to identify
the product and lot number. Each product is placed in computer inventory. We know where
products are at all times, says Blechman. Sometimes we palletize 8,000 cases a day
and each case is scanned into inventory as it is palletized.
Label control is an important part of Twinlabs quality control procedures. The nerve
center is a large closed store room near the packaging floor. Every label for the 1,000
products and 2,000 skus are kept in neat rows in the room. Documentation is the key to
label control, explains Blechman. Everyone who comes in contact with a label signs
off on a document. Every label is signed for at least twice, once by a supervisor. Left over
labels are reconciled. Why? Because if regulators or inspectors came in, we could trace labels
throughout the process. As an added check, samples of each label are kept in a secure
area for three years. Also, samples of actual finished product from every lot and every raw
material used are kept up to four years, which ties into stability testing.
COMPANY PROFILE
Products:
A complete line of vitamins, herbs and nutraceuticals, antioxidants, fish and marine
oils and sports nutrition supplements through the Twinlab Division
A full line of herbs and phytonutrients through the Natures Herbs Division
Herbal teas through the Alvita Tea Division
Specially formulated nutritional supplements through the direct sales subsidiary,
Changes International
A line of vitamins, herbs, nutritional supplements, health and beauty aids through the
Bronson mail-order catalog subsidiary
Sports performance and nutritional products through the PR Nutrition Inc., subsidiary
All Natural Muscular Development, a sports and fitness magazine, and health
and fitness related books, audios, and newsletters through the publishing subsidiary, Advanced
Research Press, Inc.
Financial Highlights
For the nine months ended September 30, 1998, net sales increased 60.5 percent to $253.4
million compared to $157.8 million for the same period in 1997.
Gross profit rose to $130.2 million from $70.6 million in the comparable period last year.
Gross margins increased to 51.4 percent compared to 44.8 percent for the nine months of 1997.
Encapsulating
The encapsulating rooms are an example of how carefully quality is protected on the
manufacturing floor. Some of the powders, like L-Carnitine, are sensitive and must be handled
carefully. Nothing is more hydroscopic than some of the ingredients we use in our
products, says Blechman. Any extra moisture could affect shelf life.
Twinlab takes great pride in quality. Operators in the encapsulator rooms check dosage weight
and accuracy and also weigh a group of pills every ten minutes. They also keep a composite
sample which is sent to the quality control lab for testing and analysis. And quality control
inspectors double-check each encapsulator at random throughout shifts.
The sheer volume of capsules produced by the encapsulators demands close attention to detail.
Twinlab has about 24 capsule fillers in Ronkonkoma and American Fork and will be adding more
when packaging lines are moved out of Ronkonkoma to a new facility in Bohemia.
High-speed encapsulators are the key to producing 400 million capsules per month. Twinlab uses
encapsulators from Bosch, TL Systems, Minneapolis, MN and Index Manufacturing, Northvale, NJ
in Ronkonkoma at speeds ranging from 1,200 to 2,000 capsules per minute. Newer machines are
capable of at least 2,000 cpm.
Capsules are a point of differentiation for us, explains Blechman. Companies often
sell one or two capsule sizes. Thats fine until you get to microgram ingredients like
CoQ10, B1, copper or manganese. Because of these limitations, most competitors are forced to
use fillers. We pick the right size capsule for the product. I think we make more 00 and 000
capsules than anyone.
Capsule Polishing
Every single capsule sold by Twinlab is inspected and polished. After encapsulation, capsules
are sent to an enclosed room where inspectors sit at seven stations 16 hours per day (two
shifts) and visually check capsules for cracks, empties, misfit ends or other imperfections.
Capsules that pass inspection are fed to polishers from Key Industries, Englishtown, NJ. The
polishers give capsules their characteristic sheen, then the capsules are stored until needed
to fill orders.
Blending And Granulating
Before becoming capsules or tablets, dry ingredients are blended in one of five blenders from
Patterson-Kelly, East Stroudsburg, PA. The three largest V-shaped blenders hold up to 1.5 tons
of material. The stainless steel-lined vessels spin in a circle, eliminating corners where
product can settle and avoid mixing. The mixers are expensive but necessary, says Blechman.
Heres another example of our concern for quality, he explains. Raw
materials come from all over the world. The particles are different sizes, so they separate
and stratify. To prevent this, we have five rooms with Fitzmills with 100 different screens.
First we standardize the particles so they are all the same size. Then we send the powders to
the compounding department for blending.
The granulating room holds over $1,000,000 worth of equipment for preparing natural
ingredients and micronutrients for tableting. A fluid bed dryer from Glatt, Ramsey, NJ, is on
one end of the room and a Roto Granulator Dryer from Zanchetta (represented by Romaco, Morris
Plains, NJ) on the other. The two units are necessary because of the nature of some powders,
according to Blechman. You just cant take any powder and tablet it. Some
ingredients like vitamin B12, calcium and some amino acids need to be granulated first. We
grind, sheer, and add solution to the ingredients in the Zanchetta processor to change the
nature of the material, then place it in the Glatt for drying. What comes out is a granular,
readily compressible powder that makes a high-quality, functional tablet.
A functional tablet is one that dissolves according to USP standards. Some tablets have
difficulty meeting the standards. Disparate particle sizes are pressed with fillers which
cement the tablet together.
Granulated powders are tableted on eight tablet presses from Stokes-Merrill, a division of DT
Industries located in Bristol, PA. The presses are capable of producing 3,500 tablets per
minute and Twinlab makes use of every second for its chewables and lozenges. As in the
encapsulating rooms, operators do quality checks every ten minutes, confirming tablet
hardness, thickness and other factors. Quality control supervisors also check tablets and take
their own samples for in-depth analysis.
After pressing, tablets are coated in state-of-the-art coaters from Thomas Engineering,
Hoffman Estates, IL. Coating is the process closest to an art form. Tablets are placed in a
large drum which tumbles them past a series of four sprayers. An aqueous coating is applied to
the surface of the tablets while at the same time a sophisticated air handling system dries
them. We are one of the few companies not to use solvents for coating in house.
Everything is aqueous, and the operator has to be careful not to allow the coating to interact
with the tablet, he explains. But when the tablets are finished, theyre
beautiful.
The new blister line can form up to 600 blister packs per minute.
The TruHerbs line will soon be produced on a high-tech blister thermoforming line due for
installation in 1999 in Natures Herbs new packaging area.
The line is typical of Twinlabs policy to use state-of-the-art technology wherever it
can. The line is capable of running 600 blister packs per minute and has an integrated
intermittent-motion cartoner capable of filling 300 cartons per minute by feeding blisters in
pairs. This technique give the cartoner twice the output of conventional machines. The
intermittent-motion cartoner also permits the use of complex multi-packs should Natures
Herbs of Twinlab introduce different configurations in the future.
The line also has details such as fiber-optic interface servos for reliable control of every
form/fill/seal and cartoning function. The servos increase the accuracy of material index and
dwell time and need less maintenance than other movement control systems.
The blister line, a Compacker 1200/Pacliner-3000, was supplied by Klöckner Medipak,
Clearwater, FL. Other features include tool-less changeover in less than 30 minutes, movable
carts for blister and lidding materials so that materials can be changed without stopping the
machine, a sealed dosing area to protect product from contamination and a high-precision,
laser-guided drawoff mechanism.
Batching and Storage
Twinlab stores valuable raw materials in a motorized fenced-in vertical carousel. Each row
holds 1,000 pounds of material. To access materials, an operator enters three letters and
pushes a button and the carousel rotates to the appropriate storage location.
Batching is performed in a self-contained room in a central location. Batches are made up one
day before ingredients are needed in blending and tableting. Ten people weigh ingredients. A
quality control person stays in the room during the process which begins when formula sheets
are punched into the computer. Labels are generated. Raw materialsvitamins, minerals,
amino acids and herbsare weighed, bagged, checked, labeled and checked again. The
bags will be checked once more in compounding, comments Blechman. Everything is
triple checked. As long as you have people, the possibility exists for mistakes. But the key
is to have checks and balances in place so we find and fix any mistakes that occur.
Quality Control
Quality control is of paramount importance to Twinlab. Its impossible to walk through
the Ronkonkoma plant without seeing people in blue coats checking products, packages and
ingredients. Every shift has a minimum of 16 quality control people, says
Blechman. In addition, every department has a supervisor, an assistant supervisor and
lead people responsible for quality. And the people in blue coats do random checks on
everything from labels to documents.
Twinlab reinforces its quality program with employee training. Each month, a segment of the
work force spends a week learning GMP procedures. It keeps employees up to date and
reminds them how important quality is to the company, comments Blechman.
Analytical quality control takes place in a modern, on-site laboratory equipped with all the
toys, including moisture analyzers, Fourier transform analyzers (FTR), high-pressure liquid
chromatography (HPLC), dissolution testers, environmental cabinets for accelerated shelf life
testing, and mass spectrometers. Samples of incoming raw materials are tested before
ingredients are placed in inventory. Nothing moves out of storage until QC releases it.
Finished packages also are tested to ensure quality standards are met. Nothing leaves the
warehouse without a release from QC.
Shelf life testing is an important point of differentiation for Twinlab. Three years is the
standard, although products are packaged to last longer. The company spends a tremendous
amount of money on both short- and long-term stability tests for its products. We do
more stability than anyone.
New Packaging Facility And Warehouse
The Ronkonkoma facility just received another facelift. In the summer of this year, Twinlab
leased a 106,000 square foot building in Bohemia, NY. The tablet and capsule packaging lines
are in the process of moving to make room for more encapsulators and tablet presses.
The new facility features a packaging area with room to stretch out the DT Industries capsule
and tablet lines. Two new lines were installed in October for plastic bottles. Like the lines
coming from Ronkonkoma, the packaging lines are loaded with automated machines including high
speed labelers from NJM/CLI, Lakso Slat counters, Omega cartoners and others. Cases from the
lines are stored in 35-foot tall storage bays with wire-guided lift trucks.
Twinlab does not believe in building facilities and then going out to find orders to support
capacity. Our schedule depends on our needs, says Blechman. Some products
run for days, some for hours. Vitamin A may run four batches per year. Our goal isnt to
fill the warehouse. Its to fill the orders we have. This way, we assure our customers of
the freshest product possible.
Because the production schedule is so closely tied to inventory, the engineering group works
very closely with machine suppliers. Over the years, we found a lot of little things
that help us run better. We share these things with our suppliers because we like innovation
and we dont want them to spend time reinventing the wheel.
American Fork
Compared to the Ronkonkoma facility, Twinlabs Natures Herbs facility in American
Fork, UT is virtually new. Like Ronkonkoma, the surge in demand for herbal products has
transformed the plant. But unlike Ronkonkoma, the original plant is only four years old and
has ample space for the equipment it needs.
The plant has the accoutrement of modern technology. Were lucky here, says
Grace Lyn Rich, director of marketing for Natures Herbs. Every workspace has
natural light and even interior office cubicles are located under sunlights. The air is
filtered and we have carbon dioxide sensors that keep fresh oxygen in the air. Its a
pleasant place to work.
The plant will be more idyllic after construction is completed in 1999. Building is underway
on a 52,000 sq. ft. production and packaging area, a 19,830 sq. ft. order picking space and a
36,000 sq. ft. high bay storage facility.
Natures Herbs needs the additional capacity. We handle everything but tablets,
says Scott Jenkins. We do herbal products for Twinlabs brandsBronson, Alvita
Teas as well as some private label lines.
The plant operates under the same near-pharmaceutical manufacturing principals as
Ronkonkoma. Incoming raw materials are weighed, sampled and assigned a bar code and that
follows the material throughout production. Nothing is used until released by QC. All
materials are tracked by computers-supervisors can access computer terminals on the floor to
check the progress of materials or finished products.
QC/QA is similar to Ronkonkoma although emphasis is more on herbals. The office checks raw
materials for identity, purity and potency. Tests include HPLC, gas chromatography, moisture,
dissolution, shelf life and others.
After QC/QA releases the raw materials, the herbs go to the pharmacy for blending. The plant
has three blending rooms for different materials and microingredients. One room has a P-K
blender for bulk ingredients, another a ribbon blender for batches up to 2,000 pounds and the
third a paddle blender for small batches of 600-700 pounds. Each room has a computer for QC.
Operators enter test samples and QC supervisors verify that the samples are accurate and
within control limits.
The encapsulation rooms house 11 Bohanan encapsulators that can fill 13.8 million capsules in
a 16 hour shift. One twist is a semi-automatic encapsulator for sticky or fluffy ingredients
and short runs. The machine makes 144,000 capsules in an eight-hour shift. It comes in handy
for production runs that would tie up the Bohanan units for an hour or two, an impractical
option because encapsulators must be cleaned before and after every changeover, and cleaning
would take longer than the production run. From the encapsulation rooms, capsules are taken to
the inspection and polishing room and placed into storage to await bottling.
American Fork has four bottling lines from DT Industries. The lines are slightly more recent
models of the lines in Ronkonkoma and feature the same automatic counters, cappers,
foil/polymer inner seals, induction sealer, seal presence detector, labeler, full body shrink
sleeves and cartoners.
The lines will change the labeler in the near future. New NJM/CLI Model 234s have been
purchased which are capable of applying pressure-sensitive labels at speeds up to 250 bottles
per minute. The labelers also feature sophisticated CTC touch screen interfaces that show
actual photos of the labeler for easy maintenance and troubleshooting.
Besides bottling, the plant packages tea for the Alvita brand. Two C45 Teabag Machines from
IMA, Fairfield, CT, produce 1,200 boxes per hour. Loose tea feeds to cavities in a cylinder.
The cylinder delivers tea to a web of teabag material. The web is heat sealed, cut by knives
into individual bags and conveyed to an oversealing station which places bags in paper/foil
laminate pouches. A dual-head ink jet coder adds lot information. Pouches are cartoned, and
the cartons sealed in cases. Date and lot codes are added by a unit from Videojet.
Natures Herbs bottles with its FreshCare Packaging System featuring an Ageless
oxygen absorber packet. FreshCare protects against product degradation from light and oxygen.
Amber glass bottles made from 20 percent recycled glass block light. An oxygen absorber packet
in each bottle removes unwanted oxygen while a foil laminate inner seal keeps oxygen and
moisture from penetrating the cap seal. Finally, products, including capsules are formulated
with natural antioxidants such as rosemary and mixed tocopherols.
Pallets of finished products are taken to one of the showcases of the American Fork plant, a
50-foot high rise warehouse with 2,000 bays and 30,000 square feet of storage space. The
height allows the warehouse to occupy only 8,900 square feet of floor space.
The key is a wire-guided lift truck from Crown that lifts 3,000 pounds up to 40 feet high. The
16-ton truck requires a stable floor, so the warehouse was built with a floor leveled to
1/8-inches over a 10 ft. by 10 ft. area. The wire-guided truck follows a wire in floor and has
features such as magnetic brakes that engage if the truck moves beyond certain fail-safe
points in the aisles. The warehouse also has energy conservation systems including natural
light from sunlights in the roof.
The $13.3 million expansion project underway at American Fork will raise the bar on
innovation. When completed in 1999, American Fork will have another 50 foot high rise
warehouse, 14 more encapsulators, and space for 12 packaging lines running at 200 bottles per
minute compared to 120 bpm on existing lines.
All will be under the same GMPs as the existing facility. We are an OTC plant,
says Jenkins. The GMPs are demanding, but thats good because when the FDA issues
rules for dietary supplements, well be ready. Fact is, were ahead of the game.
Future Plans
As a company, Twinlab has an enviable growth rate of 25 percent per year. In the second
quarter, sales to the mass market channel increased 432.4 percent and sales in the health food
channel were up over 15 percent as compared to last years second quarter. In the first
six months of 1998, after re-statement for addition of PR Nutrition, sales improved 55.8
percent, earnings per share improved 41 percent and gross margins improved to 51.2 percent as
compared to 45.6 percent during the same period last year.
Im proud of our balance sheet, says Blechman. But were not about
to rest on our laurels. What Im most excited about is how the company has changed. We
are very different from the company that first went public in November 1996. We will always
keep the family ideals that brought us here, but we now have a more formal corporate
environment.
Down the road, Twinlab plans to strengthen its core business while building its international
division and its mass retail sales. We are a premium brand. Anyone taking a nutritional
supplement, whether its in a mass market outlet or through the mail or in a health food
store, one way or another you should be exposed to our high quality products. We want you to
be exposed to Twinlab products wherever you go, says Blechman.
Core is the foundation of the company, says Blechman. Were working to
implement a whole team concept to help people merchandise our products better to the core so
that we are competitive with anyone.
Were in about 90 percent of all health foods stores, or about 10,000 outlets. But
only 12 percent have our comprehensive product line, so there are growth opportunities for us,
explains Blechman.
Some industry experts see heavy competition from mass retail stores ahead for health food
stores. Blechman feels health food stores will remain an important outlet. Health food
stores will always have an important role in dietary supplements despite the rise of mass
retail, he explains. They will always have excellent service and expertise. Plus,
the Walgreens, K-Marts and Targets of the world will only offer a limited selection of the
products we have.
Blechman also expects strong performance from overseas markets. We have to go after the
international market. Right now its 5.7 percent of the business. I think it should be 25
percent. Its virtually untapped for us, he says.
Health foods stores and the international markets are, the mass retail channel offers huge
potential. In mass retail, there are 47,000 outlets, and right now our market share is
less than one percent. I think it should be 15 percent or $350 million when you consider total
sales of $4 billion in the mass market, although I consider this to be a little on the low
side. With our new mass market president, and our mass market sales team, we are going after
them in a dedicated way, says Blechman.
Im most excited about how we have positioned the company, he says. With
the addition of Bronson, we are now in every major channel of distribution. Between our loyal
distributor base in our core channels, with increased presence in chains like GNC and Whole
Foods and Wild Oats, to our opportunities in the mass market Changes International, our direct
selling and now Bronson mail order, we are in every channel of distribution, says
Blechman.
We wanted to enter the mass with a home run, so we came out with two products, TruHerbs,
and 38 standardized herbs. Twinlab is the first company to offer herbs in this form. One pill
offers gradual sustained release over a 12 hour period. People are very comfortable with the
benefits of pharmaceutical time release. Categories that are hot right now are sports
nutrition and herbs.
In terms of new products, Twinlab introduced over 100 items in 1998 including the TruHerbs
line and Twinlab Ironman Triathlon® Nutrition. These two new herb and sports nutrition
product lines include 51 new products that will now be available to the mass market consumer.
Initial retailer response has been favorable and we continue to view this channel as offering
attractive economics for our business, says Blechman.
Twinlab believes in differentiating products for specific market channels. For example,
products for health food stores have different formulas and packaging than products for mass
retail. I dont believe you can take exactly the same product in health food stores
and retail and be successful in the mass, says Blechman. Its important to
tailor products for the needs of each channel.
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