NIOA News Summer 2025 by NIOAQuarterlyMagazine

NIOA MESSAGE FROM THE PRESIDENT ERIC MILLER

Welcome to our summer issue of the NIOA quarterly magazine.

I am super proud to report that NIOA’s mission of “Building and protecting the franchise business through productive conversations with GNC leadership” is stronger than ever. We are having consistent conversations with Michael, Rodney and Cheri where there is give and take as we all try to grow together. There is an abundance of mutual respect, and through our seat at the table we have been able to secure benefits for the franchise system like the recent $15 off $75 funded coupon for National Franchise Day celebration. We hope you were able to use this promotion to drive sales and profits for your stores.

Other ongoing conversations relate to the need for balance between e-commerce and our retail stores. GNC leaders believe there is large growth potential for the brand through e-commerce. We stand firm that we need e-commerce to drive traffic into our stores where we are able to build baskets and serve as brand ambassadors. This will help the GNC brand thrive in the hyper competitive world of e-commerce.

The NIOA wants to not only grow our retail sales with more footsteps through our doors, but we want to grow our SFS as well. The NIOA has added 7+% to top line sales with SFS finally becoming a part of our business. We believe we can build both. We are firm that collecting loyalty is one of the most important assets our business has as long as we are protected from marketing that drives customers to e-commerce only and promotions that are not profitable for our business.

As we constantly share, the NIOA Board knows we need more margin to be profitable and exist into the future. We are firm that stores need a 55% margin to be super successful. The system is currently at an unhealthy average margin of 48%. Michael agrees the system needs 3-4 point more margin to be successful. We will keep pushing for

55%. For franchisees to be successful and participate in GNC brand “evergreen” BOGO we need a 62.5% margin on all GNC brands. This will keep us at a 50% margin for a BOGO same item sale. Ultimately, if we get there this will make 55% margins across all stores attainable.

The NIOA is proud to report that GNC agreed to make LIT V2 a 62.5% margin. The NIOA anticipates LIT V2 being a category killer for us. This will drive the GNC brand numbers higher, making our business more valuable in the long run.

We continue to be very proud of our vendor participation, which is at an all-time high. Vendors drive customers into our stores and have so much to offer to your stores. Let’s make sure we are all taking advantage of all they offer us:

• Don’t forget about the portal on the NIOA website that gives you access to marketing assets and training videos! Check it out at: https://www.thenioa.com/ sponsor-directory/

• My favorite vendor asset is the webinars which we open up to ALL team members. This is a great way for your team to be engaged with vendors that are driving the industry forward with innovation and marketing. We are reaching all-time highs with attendance on these webinars. In the last several months excited participants have been awarded significant giveaways including hundreds of dollars in products and swag. Your team works in your stores because they want to be a part of the industry—the sponsor webinars give them a front row seat to what’s new and exciting.

The NIOA board is working hard to make membership a “value proposition.” In addition to our current benefits, we are working on having a Real Estate attorney available that

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NIOA MESSAGE FROM THE PRESIDENT

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is familiar with our specific issues. We are always working on new vendors and vendor relationships that will make us more profitable.

Our plea to current members is to reach out to five franchisees and encourage them to join the NIOA. More members sends a strong unified message to GNC which will enable us to improve GNC brand margins across the board. This will help us push for more marketing that drives traffic into our stores. We want to drive our SFS percentage higher to be equal to corporate stores. A strong unified NIOA also makes us more desirable to vendors who can drive excitement and customers into our stores. We are stronger together.

Our Mission Statement

The Association will respect, aid and empower the franchisor while pursuing initiatives to improve profitability, operations and the financial health and welfare of franchisees.

BioHealth/Legacy - Inside Front cover

ProSupps - Page 2

FitLife - Page 3

Redefine - Page 3

Bullfit - Page 5

Cellucor- Page 5

CCi - Page 7

Project #1 Nutrition - Page 9

Health Plus - Page 10

Codeage - Page 11

1st Phorm - Page 12

Mutant - Page 14

VMI Sports - Page 15

Taylor-ed Formulations - Page 15

Bucked Up - Page 15

Core Culture - Page 17

Jocko Fuel - Page 17

Adaptive Health - Page 20

MuscleSport - Page 22

Huel - Page 23

Redcon1 - Page 30

Basic Research - Page 30

Celsius - Page 31

Myprotein - Page 32

CBUM/Raw - Page 36 NutraBio - Inside Back Cover

& Sledge - Back Cover

LETTER TO NIOA FROM GNC CEO

MICHAEL COSTELLO

Dear Franchise Partners,

We are more than halfway through the year, and while we have seen some improvements, particularly with the increased online orders for franchisees, we are still in the midst of the turnaround journey. I want to share a few perspectives on Franchisee Ship from Store, GNC’s digital future, as well as the exciting launch of Lit 2.0.

Franchisee Ship from Store

We now have a majority of franchisees participating in Ship from Store - a key initiative that aligns franchise and GNC corporate objectives, especially in eCommerce. When a franchisee joins Ship from Store, they primarily receive orders from their local area, creating a powerful way to grow their omni-channel business. As we continue to invest in digital and eCommerce, the franchisee wins alongside GNC.

I’ve heard some franchisees ask, “Am I getting all of the orders in my area?”, and the answer depends on a few factors:

• The allocation algorithm treats corporate and franchise stores equally, always selecting the closest store that can fulfill the entire order at the lowest shipping cost.

• Each store maintains safety stock that is not available to ship on GNC.com. For example, if a store only has one bottle of a digestive enzyme reserved for in-store shoppers, the system will treat that as unavailable for shipping and move to the next eligible store, whether corporate or franchise.

Our best operators are turning this program into a customer traffic driver by:

• Including personal notes or cards in shipments encouraging customers to visit the store.

• Leveraging BOPIS best practices like checking loyalty accounts and suggesting additional products when customers visit.

We’re excited to have the franchise community engaged in Ship from Store because it is critical to GNC’s digital future. It allows us to engage with our customers digitally and allows them to shop where they want, when they want. Today’s customer is no longer just a brick-andmortar shopper, they are an omni customer, with 50% of the category expected to be sold online and an even higher percentage starting their journey digitally.

GNC’s Digital Future

“Digital” does not mean online-only. It means creating seamless digital journeys for our customers:

• From education and research to tracking and purchasing, we want GNC to be the preferred destination.

• Our initial focus is on improving the loyalty experience. Issues experienced in April continue to improve and the new loyalty platform will soon launch new features.

• A next-generation email platform rolls out next year, enabling personalized communications that increase relevance, retention, and engagement.

LIT 2.0 Relaunch

It is exciting to see franchisees now actively participating in Ship from Store and improving the digital journey, but what I am most excited about is the launch of LIT 2.0.

We all want to see GNC have premium products in the marketplace, and we have fallen behind. This relaunch of one of the top-performing pre-workouts in the marketplace is designed to give customers reason to come to GNC.

We know our best customers purchase both GNC-branded products along with third-party products (a mixed basket), but we have been selling less GNC brand which gives the customer a reason to shop elsewhere. We believe LIT 2.0 is the first step in turning this around.

Key Highlights:

1. Improved the product while keeping all the reasons that people like LIT.

2. Retail pricing aligns with other premium pre-workouts.

3. Cost decrease to the franchisee, creates a 62.5% all-in margin, one of the top margins in the category.

4. Reduced channel conflict by keeping the old formula in mass distribution (like C4 Sport and C4).

5. Strong marketing campaign supporting the relaunch including TikTok, digital and ads.

If this launch performs as expected, and we see significant increases in LIT, we plan on continuing to drive improved margins on other GNC-branded products. I encourage you to work with your DFO to take advantage of the improved margin and marketing to make this a win for you and for GNC.

Live Well, Michael

GET TO KNOW YOUR NIOA BOARD

Eric Miller, President

Eric has served on the NIOA Board for six years and is serving in the role of President in 2025. He has been a GNC franchisee since 1991 and currently operates 18 stores. He has sold or closed seven others over his career. Eric’s area of expertise is operating great stores focused on customer service and experience, with great team members who enjoy the mission, while helping customers with their fitness goals or healthy lifestyles. vitamanagement@yahoo.com • (215) 896-7575

Laura Dalton

Laura is a seasoned franchisee with nearly 22 years of experience. She currently manages 11 stores in North Carolina. Her strengths include local marketing, event planning, and building strong brand relationships. daltongnc@gmail.com • (919) 608-2639

Benny Farzad

Benny is a multi-unit, multi-franchise operator with 13 years of experience as a GNC franchisee. Currently, he manages seven stores. His expertise lies in operations, financials, and multi-store operations and efficiency, with a strong background in both retail and restaurant industries. gncbenny23@gmail.com • (817)718-0849

Kirk Irvin

Kirk has been involved with GNC since 2004 and a franchisee since 2012. He has five stores in Jacksonville, FL. Kirk’s passion is to deliver the highest quality customer service while improving the overall operation of GNCs across the country. kirk.irvin@gmail.com • (904) 424-7524

Katie McKay

Katie, with her husband Dan, is in her 11th year of franchising with GNC. Based in Kansas City, they operate 20 stores in seven Midwest states. Her background is in marketing with a concentration in copywriting, community events and networking. She uses these skills to build strong store teams and tightly knit communities in each of their markets. gncparkville@gmail.com • (816) 896-0179

Sarah Coxwell

Sarah has been a GNC franchisee for 25 years and currently operates 16 stores in five states. She specializes in building high performing teams and customer focused retail environments with a focus on operational and financial efficiency. Sarah also operates businesses in the insurance and real estate industries but is most passionate about her work as a GNC franchisee. sccoxwell@hotmail.com • (251) 463-7844

Armin Morshed

Armin has been a GNC franchisee for 14 years, following a year and a half of experience with GNC Corporation. Based in the Dallas–Fort Worth area, he currently operates three locations. Highly involved in the day-to-day operations, Armin oversees all aspects of the business, including staff training, inventory management, marketing and financial reporting. His primary goal is to deliver an exceptional customer experience at competitive prices while strengthening the brand’s presence within the local community. GNC.Bedford@yahoo.com • (817) 602-9288

From Formulator to Founder: The Project 1 Nutrition Story

By Katie McKay

“Innovation only works when it solves a real problem. Removing synthetic dyes, developing women’s lines— these are thoughtful changes. We’re careful not to over complicate things, but we’re always looking to fill gaps in the market. If it benefits our customers, we’ll explore it. If it’s just flashy, we skip it.”

Patrick Williams is a supplement expert, formulation aficionado and the Founder of Project 1 Nutrition - a brand committed to empowering individuals to achieve their health and wellness goals through personalized nutrition strategies. Known for natural ingredients, thoughtful formulations, and a deep understanding of customer needs, Project 1 has found a way to balance quality with transparency. In today’s interview, we discussed how Patrick’s hands-on approach and decades of experience in manufacturing have allowed Project 1 to grow from a small, family-run operation into a respected name in the industry.

Question: Would you consider yourself more of a formulator or more of a brand developer?

Patrick: “I am 99% formulator. I love formulation. I love products. My background is in finance. I love sports. So that’s how I got into sports nutrition. I was always in sales prior to that. I was with Sci-Fit for eight years. During that time, we were both manufacturing and brand. So I learned the manufacturing end of things with them. And then we owned a manufacturing facility with Reaction that was also a brand. But we did a lot of outsourcing, a lot of manufacturing during that time for bigger brands. One being Complete Nutrition. We did all their private labels and so forth. I developed a brand, Shreds. I helped Arvin Law back in that time when Instagram first started with his Shreds product with Paige Hathaway, Joey Swole and Ainsley Rodriguez. So

Decades Of Partnership

We’re

#1 at #2

Trusted by millions of people since 1981

this year will be year 25 for me in the industry.”

Question: I’m the worst person to name drop an athlete to. Does that person happen to be on the Disney channel? Because that’s 90% the source of my media consumption.

Patrick: I can tell you everybody that’s on - Bluey, Peppa Pig, and now Zombies 4. I’ve watched Zombies 4 four times already! My daughter’s all about it.

Question: After formulating for so many brands, when you started Project 1, what was your philosophy as a founder?

Patrick: It’s about relationships— with suppliers, manufacturers, and customers. You need to know your market and the people you’re serving. I’ve been hands-on since day one. My goal is to provide high-quality, trustworthy products, while also making a human connection. That personal touch separates Project 1 from the rest. We’re family-owned, family-focused, and that’s part of our

Question: Who do I sell Project 1 to? What’s the customer demographic?

We have so many SKUs - we have our sports nutrition line, which has three different pre-workouts. Embrax, which is a low-stim, weight loss product in a powder version. And then we have our AMP-NOX which is a stim-free pump product. And Quantum, which is the ‘through the roof’ pre-workout for that 20-year-old that really wants to go crazy in the gym.

And then we have our Aminos, BCAAs and proteins. So we have that everyday gym goer going on. We have our all-natural line with our vegan protein. We have our Martha Stewart brand collagen with the marine based collagen, greens and reds that she takes on a daily basis. And then our electrolytes. We have a huge triathlete and marathon group with our electrolytes, aminos, and so forth.

Our predominant brand person probably 60% is female walking into the stores for our organic and allnatural line. I’ll just use my wife for an example. When they find something that they’re passionate about and they know that works for them, they’re not changing.

Question: Are you predominantly retail sales or is most of your sales direct to consumer?

Patrick: 70% of our sales is distribution wholesale. We do a bunch of mom and pop stores across the country. We’re in about five different countries right now, soon to be seven.

Question: Are you guys in GNC International?

Patrick: Yeah, that’s how we started with GNC, that’s initially how we got in. And it was by chance even. We’re based out of Pittsburgh, so 15 minutes from corporate office. And a friend of mine was doing a demo at an Oxford club in Wexford, and Sherry walked up to the table, saw our protein, had her husband try it. He’s like, I like it, we like it, I like the look. And then all of a sudden, the conversation started. I got a phone call saying, Sherry wants to talk to you. I’m like, I don’t even know who Sherry is right now. So

that started that relationship with the international side of things. And now we’re able to work with franchisees.

Question: What are your Top 3 sellers?

Patrick: Our three biggest sellers right now within the GNC franchise community - one is the electrolytes. Second is our protein powders, especially the Kurt Angle protein. He’s a Pittsburgh guy, an Olympic wrestler. He’s older now, but a WWE wrestler. So, it’s a different type of community, but it’s just his face on the label. And then our P1 test is our #1 franchise seller.

Question: What’s new, what’s coming down the pike?

Patrick: Black Friday weekend, we have a female sector coming out. Four different female capsule products. It’ll be, again, all-natural products. One will be a hair, skin and nails product. One will be an estrogen control to build lean muscle. And then we have a water loss pill and a weight loss pill. And a pre-workout that will be amino and caffeine-based. Five different SKUs coming out for Black Friday.

Question: Did you guys do anything special for the branding on that, or is it just under the main Project #1 label?

Patrick: It’ll be under Project #1 for her. But it’ll have a similar look, but a softer look.

Question: As you know, the industry has gone through some roller coasters in recent years. We had COVID, then we had the post-COVID boom. Then we had GNC restructure. And then we had a GNC executive team changeover. And I was just curious, if you were a GNC franchisee right now, what would you be focused on?

Patrick: I mean, welcome to the industry. It’s been up and down. 25 years I’ve been in, there’s been things that we’ve had and they got taken away, then given back and then keep on moving and finding a new way to bring customers in. And the consistency that I’ve seen over 25 years, is information and communication. How do we inform these people, what they need in their life, and how do we communicate that to them? It’s face-to-face contact. And it’s one person at a time as they walk through your door.

And that’s what my focus has always been, how do I communicate to the people that I have a relationship with? How do I get them to bring in a friend. If we changed your life, how do we get to change their life as well? If you just sell them something, the chances of them coming back are pretty slim. If you build a relationship, and you have a conversation, they’re coming back to talk to you and find out what else they can do to make themselves healthier.

As a store owner, is my staff trained appropriately? And then that doesn’t just fall on the store owner, right? That falls on the brand. And that’s one thing I take ownership of. If someone doesn’t know about our product, that’s on me. We do Zoom calls all the time where a group of stores will get their managers together and we just provide information, answer questions. We send a lot of protein, electrolyte and Shred samples.

Question: So if franchisees are interested in samples, do we just reach out?

Patrick: Yeah, just have them reach out to us, and we’ll get them a sample care package in the mail with shakers. And we supply t-shirts for people on orders so people get the word out.

Conclusion

With a commitment to high-quality formulations and a strong emphasis on building relationships, Patrick’s journey reflects a deep understanding of both the market and the needs of our customers. As Project 1 continues to expand its reach and product offerings, including exciting new lines tailored for diverse demographics, it stands out not just as a brand, but as a community-focused entity.

Franchisee Spotlight

Frachisee Spotlight: Chris & Shelley DuBois

Franchisee Location: Minnesota

Number of Stores: 7

How many years have you been in the GNC system? What prompted you to become a GNC franchisee?

We have been in the system for 30 years as of this past April. We have bought and sold 29 stores over those years in four different states and have employed over 200 people. We currently own 7 franchises in Minnesota. Chris always wanted to have his own business, so he started researching and felt like GNC had a great “starters kit” to get into a promising business. We continue to access the market and still believe that this is a growing industry, which is why we stay committed.

What are you most proud of in your work as a GNC franchisee? I would probably say the consistency that we’ve brought to our business model. I have dedicated employees who embrace our mission of helping and educating our customers about Nutritional Supplements. It’s a changing market so you need to stay current while maintaining what has worked for you in the past. We are proud to be able to help our family, friends and community with their questions about our products to help them with various health issues and workout routines.

What is your biggest challenge as a GNC franchisee?

Managing your system within the current GNC environment while GNC Corporate tries to figure out what works and what doesn’t. I can tell

you, a never-ending BOGO will not work!! That said, I will continue to work within the system to take care of my customer base.

What is your best tip to share with other NIOA members?

Marketing Tip: We have found that our customers appreciate the local marketing that we distribute via emails and mailed coupons.

Store Management Tip: Inventory is our biggest challenge, too little or too much, the right mix vs. new items. To this day, I still review every single store’s order each week.

Sampling and cash wrap management is another key factor where small changes can have a big impact on unit movement. Don’t be afraid to try different options.

Do you have an example of a local marketing event that’s worked well for you?

Back in the day we used to use a lot of Val Pak advertising. Recently we’ve gotten back to mail advertising with “Save On”. We are one month in and have gotten about 5-6 per store which about covers the cost. Results should get better as people become aware of our presence. In addition, for the

past 6 years we have sponsored and partnered with a Jr Hockey club in our area. This sponsorship includes our logo on their jerseys and presence at all games. As for the partnership, we employee between 4-6 of the 18–20-year-old players during their season so they can support themselves pursuing their dreams of making it to higher level programs.

What is your favorite brand/ product right now?

Personally, I would say the Codeage Line. Their products are high quality, meet current interests of consumers and currently are hard to find outside of our stores. Shelley likes Glucatrim and the products geared toward GLP1 support mainly because it is very prevalent within the late Boomers and GenXers.

GET TO KNOW... GNC COO Rodney Lastinger

What prompted your decision to accept the position as COO with GNC?

I joined GNC because I believe in this brand, our mission, and our people. GNC has a rich history and a powerful purpose: helping people live well. What excited me most was the opportunity to be part of a company with such strong brand recognition, an incredible product portfolio, and a loyal customer base. I saw a chance to work with talented teams across our corporate stores, franchise locations, and enterprise-wide functions to build on that foundation and take GNC to the next level. Together, we can strengthen our culture, grow sales, and continue to innovate because when GNC wins, every part of the business benefits.

What are your top priorities for the next 90 days?

My top priority is building strong relationships with our franchisees and teams. I want to listen, learn, collaborate, and understand what’s working and where we can better

support you. At the same time, I’m focused on driving sales growth by sharpening our in-store execution and making sure you have the tools, products, and promotions to succeed. We also want to simplify operations wherever possible, so you can focus on what matters most: your customers and your bottom line.

What do you see as the biggest opportunities within the current GNC system to drive franchise growth and profitability?

The biggest opportunity is tapping into the strength of our brand and product innovation while making sure we execute at the highest level in every store. We have powerful exclusive products and programs that differentiate GNC from the competition. If we pair that with consistent, exceptional customer experiences and operational efforts, we can grow sales and profits together. There’s also a huge opportunity in expanding our loyalty program, because when our customers commit to the brand, they shop more often and spend more, which benefits us all.

What has been the biggest challenge you have faced so far? Were you surprised?

The biggest challenge has been balancing the pace of change while making sure we bring everyone along

for the journey. We have so many great ideas to grow the business, but we need to execute them in a way that’s simple and sustainable for stores. I wouldn’t say I’ve been surprised, since every transformation comes with challenges, but I’ve been incredibly impressed with how resilient and passionate our teams and franchisees are. That gives me a ton of confidence in where we’re headed.

What excites you most about GNC as you look ahead to the next 12 months?

I’m most excited about the opportunity to win together. We have cutting-edge new products, innovative partnerships, and a renewed focus on growing customer loyalty. But more than that, I see so much untapped potential in this system. When our franchisees are profitable, GNC wins as a brand, and that’s the mindset I bring to every decision we make. We have a strong franchise system and a group of tenured franchisees who are committed to the brand and to helping customers live well. With that kind of passion behind the brand, there’s no limit to what we can achieve together. Over the next year, I’m excited to roll up my sleeves, listen to your feedback, and take action that helps every one of you grow your businesses.

From Startup Hustle to GNC Mainstay: A Conversation with Brandon Adcock

By Katie McKay

In 2009, Brandon Adcock was just 24 years old with a marketing degree, a small internet agency, and a vision. What started as a simple idea—to create a joint health supplement—quickly turned into a national brand. And before long, a company that would become one of GNC’s most trusted partners. Today, as co-founder and CEO of Adaptive Health, Adcock oversees household names in the supplement industry like Nugenix and Instaflex.

But behind the big brands and glossy marketing campaigns is the story of a young entrepreneur who bootstrapped his way into an industry dominated by giants. Sitting down with Brandon, we discussed how he got started, the lessons he learned, and what continues to drive him forward more than a decade later.

Question: How did you go from marketing agency to supplements? That’s quite the leap!

Brandon: In college, I sat in on a presentation and it was all about

internet marketing. And the speaker was talking about how if you’re in TV advertising, there’s people that have 20, 30, 40 years of experience in front of you. Whereas this world is exploding real time. So, someone could maybe only have one, two, or three years of a leg up on you. And I found that really intriguing, that maybe I could be an expert in something at a young age that was the equivalent of what other people in the working world were already doing. From there I built websites, got them ranking in search engines, read everything I could, and started

running advertisements for other people.

And then after college, I started an agency. And most of my clients happened to be in supplements. At the time, I was getting introduced to the world of bodybuilding and that got me really into supplements.

Then I realized I cared more about my clients’ products and their customers than they did. I’d had a lot of success growing their businesses, so I decided to shut it down and launch my own line of products with two friends. And we did that in the summer of 2009.

Our first brand was Instaflex that we launched in 2009. And within a few weeks, we knew we had a big hit, and a couple of months after launch, we were in GNC. They’ve been a big partner of ours basically since the inception of the business.

Question: And what was the process like to get into GNC all those years ago?

Brandon: Yeah, so I will say it was a relatively easy one for us. We got an introduction into GNC from a friend, and we met Dave Florian and Mark Butera. Dave was a merchant at the time, but everybody knows him now for franchising. Dave has been a really good friend to me, and I owe him a lot in my career for the early risk he took by bringing us into the store.

And as a 24-year-old kid with an idea and a new product, he saw something and believed in what we were doing in the joint category that could bring in a new buyer. We were really growing and took he a chance on us. And within a few weeks, we were doing

pretty big numbers. And ever since then, we’ve had a great relationship with GNC.

Question: I think so many times people think of vendors as being bigger businesses than us. But I find that most of our brands, even the larger ones, are still operated like small businesses. Is that how you would define your organization?

Brandon: There’s still a lot of similarities to how we’re run that you might think of as a small business. Because I think it’s important for us to continue to stay nimble, be open to change, be a disruptor. But for all intents and purposes, we’re not a small business anymore. We have a lot of employees. We own our own manufacturing. It’s a pretty big operation today from where it was in the beginning.

But I think we’ve always done very well in the franchise channel because I have individually always felt very connected to the operators. And it was because of this shared love of

entrepreneurship. And while I may own a brand that’s sold in GNC and you all may represent GNC, at the end of the day, we’re both entrepreneurs that own our own businesses and are trying to grow it. And so, I know what it’s like. I was our first employee. I answered phone calls from customers. I worked on ordering product. I did marketing. I know what it’s like to do every job.

Question: As franchisees, our focus is margin. But we also need brands that independently drive traffic. With your background in marketing, how do you think about balancing value and cost for customers and franchisees?

Brandon: That’s a good question. What I would say is in our business, we put the customer first and figure out how we can make that strategy profitable. That means everything starts with making a quality item. Sometimes that costs more. We do own our own manufacturing for which we’ve invested tens of millions of dollars to make a really high-quality product. And whether the customer

totally understands that or not when they buy it, we know that it’s extremely high quality and we’re proud of it. Sometimes those choices come with a margin concession.

We may choose a higher quality ingredient, but on the label, it looks the same as somebody else’s. But we know that when the crop came in, we took the best of the best and had the lowest lead, highest purity, all that type of stuff. But that doesn’t always show through in a label. And so, when we make our decisions, we try to do that with the customer in mind. And margin is important, but sometimes margin is second, because if you make a good item and people like it and they see benefit, they’re going to buy again.

And at the end of the day, we both have to run businesses that are made up of repeat customers. Because if every day we have to go find somebody new because we lost someone, it will be a losing business model. And I think where we have done well with customers, and also if you think of the franchisees as a customer of ours, we’ve brought proven products that work and bring people back. A couple of years ago, we looked at

some data with GNC around brand loyalty and repeat purchase rate. And within the chain, Nugenix had one of the highest brand loyalty rates. 95% of our customers that bought Nugenix, that bought in the category again, bought our brand. They didn’t switch to another brand.

Question: What do you do to protect brand pricing integrity across the multi-platforms?

Brandon: In general, we’re not a big discounter. I think it was years that we were in GNC before we ever participated in our first sale. We’ve always believed in a pricing structure that when a customer bought something, they never end up in a world where they felt like they didn’t get a good deal had they gone and looked elsewhere.

And then we work really hard to police resellers and others and to make sure any vendor we work with is selling at the appropriate price. And if they’re not, they get cut off. And so we’ve taken that stuff very seriously. Also, policing counterfeits in the marketplace to make sure people are getting what they think they are.

Question: How much is direct-toconsumer versus retail/online?

Brandon: It’s a little less than half of the overall business today. And the way we think about it is we use, in many cases, direct-to-consumer as an avenue to brand build and get awareness out so that our retail is successful, not necessarily as an independently different channel. We view ourselves as an omni-channel business. I think my job is to get a high-quality item in front of you, and you get to make the choice around where’s the best place for you to buy. And while we’re not going to be in every channel, every retailer, you’ll know that we’re in the right places and we’ll let you choose where you like to shop.

Question: Are your formulations the same in Walmart and other retailers?

Brandon: They’re different. Our core test boosters, Total-T, Total-T Ultimate, Total-T Maxx, all of those are GNC retail exclusives. And some of our other items are as well, but our major items have been GNC exclusive for a long time.

Question: When will Total-T 2 be available in-store and how have the sales on that been so far?

Brandon: It’s been very successful. We’ve been very happy with it. It should be in stores soon. What we’re trying to do is build up some pent-up demand so as soon as stores get it, people already know about it. There’s a desire for it.

Question: I was curious about how you guys determine which promotions you participate in with GNC. What is your support, at a vendor level, of those promotions?

Brandon: First, I’ll say that we are broadly supportive of the corporate promotions and strategies that are in place. Discounting can be a drug that you can get addicted to, and it can be hard to wean off of it. We’ve always been careful, and we don’t

want to be an overly promotional brand. However, it’s a useful tool to drive consumption and awareness and get people into the brand or win versus another channel. So, we look long and hard when we do different promos, which promo type is driving

incremental margin dollars versus just revenue. Is it driving more revenue but less margin dollars?

So, we look at margin dollars, and units, whether some of that is new people or whether it’s repeat purchase rate. And we’re looking for promotions that are truly incremental and not just bringing a dollar forward or selling the same dollar we would have for less money. But we try not to be on promo all the time, because I think it changes the perception of the brand.

Question: Any new plans, launches, what’s next?

Brandon: Sure. Obviously, one of our really exciting things that you and I have already talked about is our T2 for Nugenix. So, we are really excited about that, and we’ll be excited to

bring it to GNC here pretty soon. We’re doing a lot of innovation right now in our Doctor’s Preferred brand. It’s a different segment of the store, and that’s a brand where we’re seeing a lot of success. And as we’ve talked about, a lot of times we like to incubate an item in direct-to-consumer and then bring it to stores or continue to brand build it. So, we’re doing a lot of interesting things in vision and memory and a number of other categories like that.

Another thing we’re really excited about is at the very end of last year, we acquired another business called Ancient Nutrition. It is a big player in a number of categories, particularly though in collagen. It is an exciting brand that is growing fast and we’re exploring opportunities with GNC, but we’re very excited about the innovation

within that brand and what we can bring potentially to GNC. So we do have a lot going on.

Conclusion:

Brandon’s journey from young entrepreneur to leader of a powerhouse in the supplement industry highlights the value of vision, persistence, and customer-first thinking. As Adaptive Health continues to expand with new products, partnerships, and acquisitions, an entrepreneurial spirit remains at the core of its growth. For GNC franchisees, customers, and the supplement industry at large, his path forward promises to keep pushing boundaries while staying true to the principles that fueled his success from the start.

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by science.

Supplements Trends in the US

Reprinted from Innova Market Insights

https://www.innovamarketinsights.com/trends/supplements-trends-in-the-us/

In the US, consumers are making changes in their lifestyles to stay healthy. They take supplements to address nutritional needs to support their health and well-being. Innova’s 360 research highlights that US supplements market trends are evolving alongside consumer preferences. It also reveals how brands can leverage these trends to ensure growth in the industry.

Supplements Market Size and Trends

The sales of the US supplements market have been steadily rising since 2018. The US supplements retail dollar sales are projected to continue growing at 6% CAGR through 2027.

Illustrative of the wide fragmentation in the US supplements industry, the top 10 UHCs combined accounted for only 12% of new product launches in the past five years. Nutraceutical (now Better Being Co.) and Nestlé account for 2% of launches each.

Nestlé Health Science is the supplements innovation leader in the US, shaping the evolving supplements market. It is driven by active lifestyle supplement brands like Garden of Life, Osteo Bi-Flex, and Nature’s Bounty. In the past year, Nature’s Bounty brand expanded its women’s wellness portfolio with the addition of three new products for hair growth, sexual health, and vaginal pH balance, aligning with the emerging supplements trends. The brand also unveiled a new brand campaign titled ‘It’s In Your Nature’ to refresh the brand’s positioning in the nutritional supplement category and ground its message in positivity and an emotional connection.

In the past year, Vital Nutrients, Nature’s Way, Bestvite, Prohealth, and Natrol are the top 5 brands for supplement launches in the US market.

Consumer Supplements Preferences

In the US, 76% of adults take some type of nutritional supplements regularly, with 24% increasing their intake in the past year. Staying healthy is the main driver, followed by boosting immunity, addressing health issues, and improving sleep.

70% of consumers in the US purchase these products once a month or more often. They are most concerned about heart health, weight management, and healthy aging. Digestive/gut health, bone/joint health, brain health, energy and stamina, and immune health are growing concerns for them.

Supplements trends reveal that 38% of US consumers use supplements to ensure their targeted nutrition intake, followed by natural food and beverage sources. Vegetables and fruits are the top categories sought for gut health improvement or maintenance. Additionally, 29% seek supplements

for hair, skin and nail health, while 27% focus on mental health.

Supplements Innovation Trends

There has been a 1% rise in supplement launches in the past five years, highlighting steady growth in the supplements market. Health claims like brain and mood health, mental acuity, insomnia, and energy and stamina have experienced a strong growth over the past five years.

Gummies, powders, and capsules display growth over the past five years. Meanwhile, other formats like V-caps, soft gels, tablets, and liquid formats are slowing down.

Brain Health Positionings Trends

Supplements trends show growth in brain/mood health and mental acuity claims, with 12% and 22% CAGR, respectively, over the past five years. Together, they appeared in 53% of supplement launches in the past year, with brain/mood claims (34%) outpacing mental acuity claims (19%).

Lion’s mane mushroom is gaining attention in mental acuity supplements, increasing by 8% and appearing in 15% of launches over the past two years. The general ingredient mushroom use in supplements displays a growth of 9%, with reishi and chaga mushrooms each rising by 6%. Lion’s mane mushroom occurred in 8% of launches with brain mood claims in the past year.

Choline and choline bitartrate are also rising in use within the supplements market, supporting memory, mood, muscle control, and brain function. Meanwhile, vitamin and

mineral ingredients remain stable in supplement launches targeting mental acuity and brain/mood health.

Insomnia Positioning Trends

There has been a 16% rise in the US supplements launches with insomnia claims over the past five years. Botanical/herbal supplements with insomnia positioning is the top subcategory, followed by melatonin and vitamins/minerals.

Melatonin remains the top ingredient in supplement launches featuring nutraceutical and botanical ingredients, while ashwagandha, black pepper, chamomile extract, and reishi mushroom are growing, reflecting the evolving supplements trends. Over the past two years, vitamin B6 appeared in 17% of supplements with insomnia claims, while vitamin D3 displayed the highest growth among vitamins. Zinc and sodium led growth in mineral ingredients with insomnia claim launches, reflecting a rising focus on sleep support solutions within the supplements market.

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Energy and Stamina Positioning Trends

Energy and stamina claims experienced a CAGR of 20% over the past five years. Mushroom varieties and ginkgo biloba display noticeable gains among supplement launches with energy/stamina claims. Mushrooms display the highest growth of 6% launches in nutraceutical and botanical ingredients over the past two years.

Minerals and vitamins proliferate in supplements with energy and stamina claims, but their launches are slowing down. Zinc featured in 19% of new launches, while vitamin B12 appeared in 24% of launches with energy/ stamina claims over the same period.

What’s Next in the US Supplements Trends? Supplements trends show that around 70% of consumers display moderate interest in supplements for mental health, physical appearance like hair, skin and nails, and weight management and/or gut health. Brands can align new and existing products with these high-interest areas, bundling offerings to address multiple wellness needs.

The companies in the supplements market are expanding beyond products, integrating interactive platforms with educational, professional, and pharmaceutical resources. Companies can offer intake counseling, coaching, and pharmacological services that add value through the convenience of one-stop shopping and execution of wellness goals. It can be delivered through online platforms. As demand for holistic wellness rises, digital platforms are likely to play a key role in delivering personalized supplement solutions.