Slump and snow see vitamin sales rise

Mar 17 2010 by Iain Laing, The Journal

SALES of energy-boosting vitamins soared last year as Britons battled against wintry weather and the fear of losing their jobs, according to supplement group NeutraHealth.

The firm said sales of its CoQ10 supplement – taken to help increase energy levels – had almost doubled to £4m in 2009 from £2.4m.

NeutraHealth, which makes own-brand vitamins for retailers such as Tesco and Boots, said demand for supplements remained robust throughout the recession.

Vitamin D sales also raced higher as workers looked to offset the lack of sun during the cold winter months, with vitamin C in strong demand in 2009 as swine flu fears swept the country.

NeutraHealth reported a rise in like-for-like revenues in 2009 of 4.2% and underlying earnings ahead by 21% at £2.3m.

It said consumer demand across the vitamin market remained flat in 2008, but picked up from mid-2009 onwards and was growing steadily again.

The group said consumers tended to put health before finances, while the older age of the typical customer helped maintain demand.

“The majority of consumers are aged over 45 and in socio-economic group ABC1 . The incomes of these groups have not been as badly affected in the recession as other demographic groups,” added NeutraHealth.

Own-brand vitamin manufacturer Brunel is the biggest division within the firm, accounting for around 76% of revenues last year.

It saw a 6.6% rise in comparable sales, but NeutraHealth said it needed to focus on profitability in the division and would reduce costs to help improve margins.

The other business within the group is the BioCare brand, aimed at healthcare practitioners and those who are very knowledgeable about nutritional supplements.

BioCare reported a 6% gain in underlying earnings last year, although sales were held flat.

Ray Myers, chief executive of NeutraHealth, said the strong second half seen in 2009 had continued into 2010 so far, helping shares lift 5% yesterday.

The Birmingham-headquartered firm has already launched new products this year, including a new version of its energy vitamin, called CoQH.