Joshua Tree to buy AHDC

- Last updated on GMT

Related tags: Retailing, Nutrition

American Health and Diet Centers (AHDC) has announced that it is to
be acquired by the Joshua Tree company for an undisclosed sum.

American Health and Diet Centers (AHDC) has announced that it is to be acquired by the Joshua Tree company for an undisclosed sum.

AHDC said in a statement that it would change its name to reflect the new ownership, but that the key management would remain on board following the change of ownership.

AHDC currently operates 22 outlets throughout the US and had sales of $10.7 million in 2000. The company has specialises in the retail of nutraceuticals and natural health products through low-cost retail outlets and offers consumers a range of supplements based on specific health solutions: weight loss, energy, sports nutrition, anti-ageing, etc.

The company also offers a direct shipment programme that enables customers to order via telephone, Internet or mail.

"The US natural health product market was projected to exceed $35 billion in 2001 and to continue to grow at 10% per annum,"​ AHDC said in a statement.

"The industry is extremely fragmented and there is not a national multi-channel market share leader. The majority of the market is dominated by independent retailers and the off line market leader General Nutrition Center which has only an 11.1% share.

"Less than 1% of industry sales are currently web-based, and the pure play Internet retailers have not been successful due to high customer acquisition costs."

As a result of this projected growth, AHDC said it was planning an aggressive growth strategy for 2002 with some 150 new outlets set to open this year. The total number of outlets is expected to reach 1,500 by the end of 2005.

Related topics: Suppliers

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