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Natrol sought to expand its product line with the acquisition of ProLab Nutrition, Inc. for $29 million cash and stock. ProLab specialized in sports nutritional products for body builders, athletes, and other physically active customers. ProLab produced powdered supplements for weight gain, weight loss, meal replacement, and performance enhancement. With $30 million in annual revenues, ProLab sold its products through gyms and health food stores nationwide as well as in Canada, Germany, and the United Kingdom. The acquisition benefited each company, as Natrol planned to facilitate improvements in manufacturing, product development, and marketing at ProLab, and ProLab planned to assist in the international distribution of Natrol products and in domestic distribution in the sports fitness market. ProLab operated a 32,000-square-foot distribution center in Bloomfield, Connecticut, which Natrol expanded to 52,000 square feet.
Natrol continued to launch new products and to seek new outlets for them in 2001. The company introduced GlucoChews for joint health, which replaced glucosamine and chondroitin in the body, as the body makes less of these substances as it ages. Natrol relaunched the Quintessence brand of garlic products. New multiple vitamins under the My Favorite Multiple line included a Complete Care supplement with antioxidants; 50-Plus, specially formulated for joint, vision, and heart health; and My Favorite Energizer. Other products included REMEDIEF for pain management; Dry Mouth Relief; Natrol Complete Balance AM/PM Menopause Formula; and Natrol My Defense, containing patented Immune Enhancer AG. A significant new product, FlexAnew for joint health, became available at more than 25,000 retail stores nationwide within three months of its introduction in June. GNC agreed to carry ProLab sports nutrition products at more than 4,500 stores. In September Natrol initiated a multimillion-dollar advertising campaign to support the sale of new products; the campaign included television and print advertising, as well as public relations activities and special promotions.
Natrol, Inc. manufactures and distributes a variety of nutritional and herbal supplements through supermarkets, drugstores, health food stores, and mass-market retailers nationwide. In addition to providing vitamin, mineral, and herbal supplements for general health, Natrol offers a variety of products for specific health needs, such as men's, women's, and children's health, joint health, weight loss, energy enhancement, sleep enhancement, and brain function. Natrol's subsidiary ProLab Nutrition, Inc. produces sports nutrition products and Laci Le Beau Tea offers a variety of herbal tea products. Essentially Pure Ingredients sells bulk ingredients to other supplement makers.
Founded in 1980 by Elliot Balbert, Natrol originated as a cosmetics company. In 1982 the company began to market nutritionally based weight loss products, hence the name Natrol, for \"natural control.\" Natrol expanded organically in the area of nutritional supplements, using manufacturing contractors to produce the company's vitamins, minerals, herbs, and specialty formulations, such as Natural High, an energy enhancer, and Oat Bran Fiber Caplets. In 1986 the company introduced its first major product, Ester-C, a form of vitamin C absorbed into the bloodstream rapidly. Although FDA rules did not allow Natrol to promote Ester-C as a cure for the cold or treatment for symptoms of a cold, common knowledge of the benefits of vitamin C supported sales of the product. Natrol advertised Ester-C in magazines directed to health-conscious consumers, such as Delicious, Better Nutrition, Great Life, Prevention, and Health, and in mainstream magazines, such as TV Guide, McCall's, Family Circle, and Women's Day. In 1990 Natrol began to advertise on the radio show \"Larry King Live.\" Another long-term success, Calms Kids, provided parents with a natural alternative to treating hyperactivity in children. Natrol reported sales of $2.5 million in 1989 and nearly doubled sales in 1990, with profits at approximately 8 percent of sales.
Natrol distributed its products to health food stores through wholesale distributors Tree of Life and United Natural Foods and direct to General Nutrition Centers. The company expanded distribution of its products through independent mail-order catalogues; through mass-market drugstores, such as Walgreen's, American Drug Stores' Osco, and Sav-On stores; through mass-market merchandisers Wal-Mart and Target; and through grocery store chains, including Von's and Ralph's. Other outlets included resort hotels, salons, airport shops, and on the Internet via such sites as MotherEarth.com. Natrol began to vertically integrate the company, first packaging supplements purchased in bulk, then acquiring encapsulating and tableting equipment to manufacture its nutritional supplements. By 1993 Natrol revenues increased to $9.5 million, garnering net income of $279,000.
The Dietary Supplements Health and Education Act of 1994 had a profound impact on Natrol and the nutritional supplements industry. The law allowed supplement marketers to state claims as to the health benefits of nutritional products on merchandise labels, without claiming that they treated or cured disease. In addition, several new studies helped to promote the benefits of certain herbs and substances, attracting the attention of aging baby boomers. High-profile products that drew strong consumer response included Melatonin, a hormone that acts as an antioxidant and sleep aid; DHEA, an anti-aging substance; kava kava, an herbal relaxant; and St. John's Wort, shown to relieve depression.
Increased public interest in health supplements benefited Natrol, but the company's ability to maintain sales growth relied on the introduction of new products. In 1997 Natrol experienced a 57 percent decline in sales of DHEA and Melatonin, or $13.1 million. Sales from new products offset the decline, accounting for $8.9 million in sales. Natrol introduced 30 new supplements in 1997, a total of 58 stock keeping units, including different quantities and tablet and capsule forms. Two popular supplements, Kavatrol, made with kava kava root, and Mood Support, made with St. John's Wort, sold well due to publicity surrounding clinical studies about the herbs.
Sustaining a line of 145 products and continually adding new products required Natrol to seek additional shelf space with existing customers. During 1998 several major retailers added new products to their existing lines of Natrol products. American Drug Stores added 16 products to its offerings at more than 1,500 locations, including Lucky grocery stores. Fedco, a high-volume mass-market merchandiser in California, added 49 products and Rite-Aid drugstores added 20 products to its current line of five products at nearly 4,000 stores nationwide. Other retailers that accommodated new Natrol products included Schnuck's, with 170 grocery and superstores in the Midwest, BJ's Wholesale Club in the Northeast, and The Caldor Corporation, a mass merchandiser with 130 stores in the Northeast. Sales reached $68.2 million in 1998, garnering $7.5 million in net earnings.
New products in 1999 included several herbal products, such as hawthorne berry, licorice root, damiana leaf, gotu kola, and ginger root supplements. In June Laci Le Beau repackaged and relaunched its line of herb teas and extended the line of Super Dieter's and Green Tea, adding decaffeinated and flavored products, such as cherry, peppermint, and tropical fruit. Natrol introduced specialty herbal tea products under the Laci Le Beau name, including Throat Care, Heavenly Nights, and Tummy Care. New products for women involved Cran Support for urinary tract health, Woman's Multiple, and a calcium supplement with magnesium and vitamin D.
A new media campaign in 1999 featured television advertisements with Balbert talking about Natrol's mission to provide high quality products and services. Outlets included \"CNN Headline News\" and \"Larry King Live,\" TBS, TNT, and network TV game shows. A print campaign supported the television spots. Natrol redesigned its logo as well, to attract consumer attention.
Natrol continued to attain additional shelf space with its customers. Eckerd Drug Stores, with 2,900 stores in 20 states, added 60 stock keeping units to its line of eight Natrol products. Target stores added 29 new Natrol products. With 4,000 stores in 24 states, CVS drugstores added 32 products to its line of Natrol products and Pharmor added 43 products for distribution at its 130 drugstores. Albertson's and other grocery stores expanded their lines as well.
In 2000 ProLab introduced the Solutions line of nutritional supplements for women, primarily nutritional powders and power bars under the Awesome brand. Cory Everson, six-time Ms. Olympia winner and renowned fitness expert, represented the brand. To promote the product line, Natrol sponsored a sweepstakes offering a four-day stay at Everson's Fitness Adventure Camp, held twice a year in Malibu; second prize was $250 worth of Solutions products. Other women's products introduced by Natrol, under the Natrol for Women line, included soy protein bars and nutritional powders with ingredients beneficial to women, particularly for hormone balance during menopause.
Natrol redesigned and expanded its line of children's products, the Kids Companion line. The new trade dress involved two cartoon characters, Nate and Kate, dragons designed specifically for Natrol. New nutritional products included multiple vitamins, a supplement to enhance memory in chewable or liquid form, and nutritional bars in peanut butter, blueberry, and other kid-friendly flavors. Natrol targeted the Kids Companion line to upscale, health-conscious parents. Promotional products included tattoos, lunch boxes, and a growth chart, all featuring Nate and Kate.
The boom in popularity of nutritional supplements duri