‘A lot more consumers have digestive issues than they wish to admit’: NutraClick CEO

23-Jun-2016 - Last updated on 24-Jun-2016 at 14:20 GMT

A combination of more prevalent digestive issues and effects consumers can feel are boosting the US probiotics sector, says the CEO of NutraClick.

The Boston-based company has experienced impressive growth over its relatively short history by leveraging the power of targeted online advertising to drive interest in the products. Point-of-Sale units sold across all NutraClick brands grew 88% in the past six months.

The most impressive growth has come in its SmartBiotics brand, with a 220% increase in the past six months. The company launched its first probiotic product in 2013 called ProbioSlim. The original formulation contained LactoSpore (Sabinsa Corp) and a green tea extract for weight management.

The SmartBiotics range, which includes ProbioSlim, was recently extended to include ProbioSlim Advanced, which combines LactoSpore with Meratrim (InterHealth Nutraceuticals).

“It’s an easy story for consumers,” CEO Daniel Wallace told us. “You don’t need several products anymore, you just need one.”

The company uses the LactoSpore ingredient primarily because of its shelf-stability. “Our products are available in enough different circumstances that the probiotic has to be stable,” he said. “It also means we don’t need overblown CFU counts in the products.”

Probiotics in general is a category with amazing growth, and Wallace thinks that a lot more consumers have digestive health-related issues than they wish to admit. “They also feel an effect from probiotics.” The majority of consumers of the ProbioSlim products are women (about 70%), said Wallace.

Growing the business

Daniel Wallace NutraClick_headshot — Daniel Wallace, NutraClick

The company has about 140 employees with the majority based in Boston. The first brand launched was ForceFactor, which is predominatly available in specialty retailers like GNC, Vitamin Shoppe, and BodyBuilding.com. The second brand launched was SomnaPure, a natural sleep aid product, which is now available in mass retailers like CVS, Kroger, Walgreens, Walmart, and soon Publix. The sleep range has expanded to include SomnaPure PM, and SomnaPure Clinical Strength (OTC strength).

The business model is built on targeted online advertising to drive interest in the products, which are available direct to consumer on its websites, and also via specialty retailers and (depending on the brand) food, drug and mass retailers. “We’re looking to grow the Amazon business across the brands,” said Wallace.

NutraClick recently appointed a director of specialty growth strategy to drive faster growth than could have been achieved previously, with the primary focus on its ForceFactor brands in GNC, Vitamin Shoppe, and BodyBuilding.com.

“We still have the same base model for the business but we’ve expanded direct to consumer acquisition. Mobile is now about as big as digital, and we’re spending on radio and TV advertising in parallel with the digital strategy,” said Wallace.

So, if the business is so successful are there copy cats out there? “We’re still unique,” said Wallace. “Every brand has specific competition, and we have competition in the channels, but our business model is unique.”

The company’s business model also buffers them from some of the industry the headwinds, but NutraClick is supportive of the industry (it is a member of the Natural Products Association).

“My take is that Americans want these products badly and they play a huge role in preventive healthcare,” said Wallace.