Nutraceutical International is all over the natural foods industry. It manufactures, markets, and even retails a world of nutritional supplements, vitamins, minerals, body care products, and diet and energy products in the US and abroad. Its branded products include such names as KAL, Herbs for Kids, Nature's Life, Solaray, Sunny Green, and VegLife. Its company-owned US retail stores include Cornucopia Community Market, Granola's, and The Real Food Company, while its Au Naturel unit markets the company's brands in about 55 other countries. Nutraceutical International also publishes natural health books under the Woodland name. The acquisitive company is actively buying up and integrating smaller firms.
Nutraceutical International rings up nearly 90% of its sales in the US. Foreign markets include the UK, the Netherlands, Norway, Sweden, and Japan.
The vertically integrated company is engaged in the manufacture, distribution, and sale (through its own stores and those operated by others) of its branded nutritional supplements. Its NutraPure and Seychelles Organics subsidiaries manufacture about 75% of its branded products at its facilities in Arizona, Florida, and Utah. Third party manufacturers supply the balance, including supplements, herbs, and body care products. The company also distributes some products for other manufacturers. Its Monarch Nutraceuticals subsidiary manufactures bulk ingredients used in its own products and sold to other manufacturers. Its NutraBrands subsidiary supports the sales of its products through field sales representatives, telephone customer service, and online ordering.
Retailing is only one corner of its sales -- more comes from selling its products in other retail stores including independent health and natural food stores, health and natural food stores affiliated with local, regional, and national chains (such as Whole Foods Markets), and vitamin store chains such as the Vitamin Shoppe and GNC stores.
Nutraceutical International's fiscal 2012 (ends September) sales increased 7% vs. the prior year, while net income growth was flat for the second year in a row. The company attributed the sales gain to increased sales of branded nutritional supplements and other natural products, as well as contributions from recent acquisitions.
Formed with the goal of consolidating a fragmented industry, Nutraceutical International has steadily bulked up its product lines and manufacturing and distribution capacity through more than 35 acquisitions since 1993. In fiscal 2012 (ends September) the firm made six acquisitions, including Mia Rose Products, Inc., Collective Wellbeing, LLC, and Nature's Discount, Inc., among others, for an aggregate price of $12.2 million. In the previous fiscal year it acquired five firms, including SunFeather Natural Soap Co., for $14.8 million.
Investment firm FMR LLC owns about 15% of Nutraceutical's shares. Royce & Associates and Burgundy Asset Management own about 14% and 10%, respectively. – less