Nutraceutical.com / Our Strategy



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Nutraceutical's strategy is to enhance its position as a leader in supplying quality branded products to the Healthy Foods Channel while continuing to generate rapid growth in sales and profitability. Unlike many of our competitors, we have chosen to focus on the Healthy Foods Channel. Specifically, we seek to:

INCREASE MARKET SHARE IN THE RAPIDLY GROWING HEALTHY FOODS CHANNEL.
Our strategy is to increase our share in the rapidly growing Healthy Foods Channel by:
1. Commitment to the Healthy Foods Channel
2. utilizing multiple brands and
3. utilizing our extensive sales force
The Healthy Foods Channel.
We believe that retailers in the Healthy Foods Channel favor brands that are sold exclusively to the Healthy Foods Channel and that, as a result, they will continue to allocate additional shelf space to our products.

Largest Sales Force Targeting the Healthy Foods Channel.
We market our products through a substantially larger direct sales force dedicated to the Healthy Foods Channel than that of any competitor.
CONTINUE TO MAKE STRATEGIC ACQUISITIONS.
Nutraceutical was founded in 1993 to effect a consolidation strategy in the fragmented nutritional supplement industry. To date, we have successfully completed ten acquisitions and will seek additional acquisitions that serve to expand The Nutraceutical Family of Brands^TM, broaden our product offerings and facilitate entry into complementary distribution channels.
CONTINUE TO DEVELOP NEW PRODUCTS AND PRODUCT EXTENSIONS.
We are a market leader in the development of new and innovative products. During fiscal 2006, we introduced over 165 new stock keeping units ("SKUs") of branded products. The development and introduction of new and innovative products provides us with greater product diversification than most of our larger competitors.
CAPITALIZE ON STRONG INTERNATIONAL GROWTH.
We believe that international sales represent a significant growth opportunity. Currently, we market our products in approximately 55 countries, through international distributors and other customers.