CYTOSPORT For Sale
February 28, 2010
CytoSport is for sale! Yes, the maker of Muscle Milk is up for sale and an auction is going on right now! Benicia, California-based CytoSport hired Goldman Sachs to run an auction that began about a month ago, one of the sources said. CytoSport is in exclusive talks with PepsiCo, one of CytoSport’s distributors. If PepsiCo passes on it, other buyers like Nestle SA could be interested. PepsiCo signed in November 2008 a contract to distribute Muscle Milk in the US and Canada. But wait, there’s one more player that is very interested in buying CytoSport - GNC. The vitamin store chain may be more likely to buy CytoSport than Coca-Cola or PepsiCo, an industry banker said. GNC is a more likely buyer because CytoSport is targeting a different health and wellness channel than Coca-Cola and PepsiCo sources say. With CytoSport’s strong focus on the energy/protein and supplement market, it makes more sense for a company already involved in those channels (such as GNC) to acquire CytoSport as opposed to Coca-Cola and PepsiCo, which do not operate in similar channels. CytoSport’s revenue is $200 million per year and sources point out that the company could easily sell for a 2x to 3x multiple of sales.
Other Potential Buyers
I would think that other potential buyers would include protein giant Glanbia (who bought Optimum Nutrition and ABB not too long ago), ABOTT Laboratories, (who bought EAS several years ago) or retail giant NBTY/Vitamin World (who bought both MET-Rx and WorldWide Sports Nutrition a few year back). Whichever way it goes, when a $200 million dollar supplement company gets bought, major changes take place in the industry.
SOURCE: Financial Times
GAME TIME Clinical Study
February 28, 2010
A recent study was done to examine the effects of a pre-workout supplement combined with three weeks of high-intensity interval training on aerobic and anaerobic running performance, training volume, and body composition. Twenty-four moderately-trained athletes were assigned to either take GAME TIME or a placebo. GAME TIME is made by “Corr-Jensen Laboratories Inc.” an Aurora, Colorado company.) It contains 40 calories, consisting of a proprietary blend including whey protein, cordyceps sinensis (which is derived from a fungus that grows on caterpillars), creatine, citrulline, ginseng, and caffeine. The PL was also 18g of powder, 40 kcals, and consisted of only maltodextrin, natural and artificial flavors and colors. Thirty minutes prior to all testing and training sessions, participants consumed their respective supplements mixed with 8-10 oz of water. Both groups participated in a three-week program three days per week, and testing was conducted before and after the training.
Results
Athletes taking GAME TIME and the placebo demonstrated a significant increase in VO2max resulting in a 10.3% and 2.9% improvement. However, Anaerobic Running Capacity (ARC) increased for the PL group by 22.9% which was twice as high as those taking GAME TIME (22.9% vs. 10.6%.). Training volume was 11.6% higher for the athletes taking GAME TIME. Bodyfat decreased by 3.2% for those taking GAME TIME while the placebo decreased by by just 1.2%. The most shocking part of this study took place when they measured Lean Body Mass changes. Those drinking GAME TIME increased their lean mass by 1.2 kg whereas those taking maltodextrin decreased their lean mass by 0.5 kg. They should have just stayed home and not trained or drank the placebo! Does this mean that Maltodextrin + training causes muscle loss?
SOURCE: JISSN
Scott Welch Writes For DXL?
February 26, 2010
By: Scott Welch BASc (Nutrition)
I scrambled all day last Saturday just trying to get everything finished for my design team before we printed 100,000 copies of MUSCLE INSIDER last Friday. I had to make a pit stop in at my local POPEYE’S store here on Yonge st. in Toronto to get some supplements for a “Rating The Gainers” article photo shoot Martin PIllmajer was doing for us. Ya see, in Canada it’s very hard to find a great selection of supplements at the various health-food stores and POPEYE’S seems to beat most of them on terms of price and selection. So, I made one clerk very happy Saturday as I bought almost $500 worth of products! When I paid for the supps, I was given a FREE copy of British Columbia-based “DXL” magazine (on right) which if you don’t know is owned by the supplement company Nutrabolics. This magazine comes out now once per year now and seems to have a real MMA focus lately. It was a funny coincidence because just the day before Jayson Wyner (co-owner of DXL/Nutrabolics) sent me a message on facebook asking me if I was interested in having him write for my magazine MUSCLE INSIDER! Now why would Jayson want to write for MUSCLE INSIDER when he already owns his own magazine? I guess he knows a good thing when he sees it!
Who Writes For DXL?
When I looked through DXL, I didn’t recognize many of the writers as I read over the articles. So I went to the masthead and looked under the “CREDITS” section and under “Contributers” it lists their many writers.
- I recognized Bryan Haycock as he’s one of the top guys in the game and a good choice of writers (he also writes for my mag MUSCLE INSIDER).
- I recognized Jayson Wyner, as I said he’s the co-owner of DXL/Nutrabolics.
- I recognized Rodney Dupont, he’s the other owner of DXL/Nutrabolics.
- I also recognized Aaron Hefter.
Scott Welch Listed In Masthead of DXL?
But the real shock took place when I got to the bottom of a list of writers names. At the end it lists “SCOTT WELCH”. What the fuck? My name is listed here? Hmm I write for DXL now? Could there be a second “Scott Welch” lurking about the fitness industry, testing supplements out, writing bodybuilding stories, being the watchdog of the supplement industry? Could this same Scott Welch also be living in Canada and writing for DXL magazine? If not, then I guess all I can do is say thanks to Rodney and Jayson at DXL for the free exposure! In an effort to make MUSCLE INSIDER the top bodybuilding magazine in the industry, I look forward to meeting the team at Nutrabolics at The Arnold Classic and thank them for helping me get the word out. Both of our booths are front row at the front entrance of the show, right beside each other! See ya there.
Supplement Sales In Canada
February 26, 2010
By: Johnny Justice
If you’re a supplement company selling products in Canada, then get ready for big changes! These changes will cause widespread layoffs and millions of dollars in losses. Ya see, Canada’s pharmacy regulators have begun urging pharmacists to stop selling unlicensed natural remedies! The order affects herbal treatments, multi-vitamins and other products. The National Association of Pharmacy Regulatory Authorities (NAPRA) says pharmacists cannot be assured the products are safe until they are granted a government licence, and should not sell them in those circumstances. “Pharmacists are obliged to hold the health and safety of the public or patient as their first and foremost consideration,” said the association’s recently issued position statement. Since a massive proportion of supplements are sold in either health-food stores, grocery stores or drug stores, this change will be devastating to some companies.
“We are talking about job loss, we are talking about a lot of income loss, we are talking about product stuck in warehouses that cannot be sold,” Jean-Yves Dionne, a spokesman for the Canadian Health Food Association, said in an interview. A statement issued by the association calls the directive self-serving and contrary to federal government policy. “It has taken a sledge hammer to a finishing nail,” the group said. “It will create confusion for consumers. It is the wrong thing to do.”
So What’s Next?
It’s now up to the individual provinces to implement the directive or hold off. The Ontario and Quebec colleges have already pressed pharmacists to not buy or order any more of the affected products and to remove unlicensed product from shelves. Since these are the two provinces that make up more than 50% of all supplement sales in Canada, this is devastating news! If this spreads nationwide, supplement distributors in Canada that have become very dependent on drug channel sales will be in serious trouble. They will need to take the overabundance of inventory and begin dumping it into the independent health-food channel at a deeply discounted price just to get rid of it. US companies that have chosen to not use distributors and sell direct to drug stores (in an effort to save money of course) will now be forced off these store shelves and owners will be stuck with a ton of inventory! Of course, they’ll scramble to partner up with distributors so that they can dump their products at a rock-bottom price into the independent health food store channel. What does this mean to supplement users? The price of supplements normally found in drug stores should be going way down!
Where Did This Mess All Start?
Health Canada’s launched a new “natural-health products” regime in 2004 in an effort to clean up the industry. To sell supplements under this regime, you simply had to fill out an application and provide substantiation for the claims you wished to make with the product. The “loophole” came when manufacturers realized that they could continue selling their products, as long as they had at “applied for” approval. If too many applications came in (which they did), the government employees would be backlogged in paperwork and not able to get to newer applications! The department has issued about 18,000 natural-health licenses, while at least 10,000 products are still waiting for certification!
SOURCE: National Post
Dietary Supplement Safety Act S. 3002
February 26, 2010
By: Johnny Justice
Yes, that IS a picture of Judge Judy! Nearly every supplement company in the industry is afraid of a new bill that might be passed. This bill is called the “Dietary Supplement Safety Act, S. 3002″ and if it’s approved, it will have severe consequences on suppliers and retailers of supplements. Now this bill would help The Supplement Genius Scott Welch finally clean up the industry (it’s quite dirty!) but it might also prevent you from being able to get the supplements you love! Here’s how this new legislation could affect you:
- All supplements (whether vitamins, minerals, herbal products and others) that were previously allowed to be sold, could be removed from the market. This legislation would mandate that every dietary supplement would have to go through a brand new process of government review (yet to be defined) in order to remain on store shelves.
- Retail establishments would need to register with the FDA. Failing to register could result in severe monetary penalties, up to two times your gross profit. Not complying could be considered a criminal offense.
- Retailers would be required to obtain “adequate written evidence” from suppliers that each dietary supplement product meets all regulatory requirements. Failure to do so could result in severe monetary penalties.
- Severe financial penalties for all involved in the supply chain including ingredient suppliers and manufacturers. In some cases, this may be up to two times their gross profit for failing to comply.
- Suppliers would be required to report all adverse events, not just those that are “serious.” Reporting of all adverse events, including even minor complaints.
- Introducing new or innovative dietary supplements or dietary ingredients will be subjected to a much more rigorous approval process.
Click HERE to view more information on the legislation.
SOURCE: Natural Products Association
Medycinex Gets Busted
February 16, 2010
By: Johnny Justice
A business owner has pleaded guilty for her role in a conspiracy to fraudulently market dietary supplements over the Internet with illegal claims that these supplements could prevent, treat or cure a number of diseases. The supplement bandit made off with nearly $12 million by selling supplements that did not deliver on their promise (what else is new). Mai Lor pleaded guilty before a judge for her role. Lor was co-owner (along with her husband) of a company called “Medycinex”. None of the dietary supplements sold by Lor and her co-conspirators are generally recognized, among experts qualified by scientific training and experience to evaluate the safety and effectiveness of drugs, as safe and effective for use under any of the conditions recommended in their labeling. Therefore, each of these dietary supplements is a new drug. Of course, none of these were approved by the FDA, and their labels do not bear adequate directions for use; therefore, they are also categorized as unapproved drugs and misbranded drugs. The dietary supplements under scrutiny included:
- Diabeticine (later renamed Diamaxol, and also known as Glucolex)
- Digestrol (also known as Digesticine)
- Uricinex (also known as Uricaid)
- Cholestasys Rx (later renamed Cholestasys),
- Hyperexol
- Prolipamy
Fake Testimonials
Company web sites contained false testimonials, product information, and identification of medical professionals. They fabricated fraudulent customer identities using photographs purchased from Istockphoto.com. Testimonials attributed to these fake identities touted the effectiveness of the unapproved new drugs and misbranded drugs.
Fake Doctors & Fake Nurses
Techmedica also posted one of the Istockphoto.com photographs on their Web sites to fabricate a non-existent physician, Dr. Judy Hamilton, for the purpose of endorsing product claims about Diabeticine for customers with diabetes. The person identified as Dr. Hamilton was in fact a model from California. This same model’s photograph was also used by Pham on another Web site to fabricate a non-existent nurse, Bethany Hunt, RN, to tout the effectiveness of the unapproved new drugs and misbranded drugs.
Multiple Websites Hidden From FDA
The clever company operated multiple Web sites using mirror image technology. When each of these Web sites was accessed from an FDA network computer, they displayed a “sanitized” version of the Web site containing medical claims that attempted to comply with the federal Food, Drug, and Cosmetic Act (FDCA). However, when each of these Web sites was accessed from a computer whose IP address could not be traced to the FDA, they displayed claims that the dietary supplements could cure, mitigate, treat, and prevent diseases.
So What Will Happen To This Supplement Bandit?
By pleading guilty, Lor also agreed to forfeit any property derived from the proceeds of the offenses, including $11,954,648, three real estate properties, three vehicles and various bank accounts. Under federal statutes, Lor is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 or twice the gross gain.
SOURCE: Medical News Today
SAN Releases LAUNCH
February 12, 2010
By: Scott Welch BASc (Nutrition) CAAP (Advertising)
I first saw LAUNCH at the LA FITEXPO several weeks back and it’s a very interesting product. SAN is owned by Matt Boldt who is a biochemistry and ergogenic expert from Germany. His products have always been known for their cutting-edge ingredients and cool packaging. SAN states that LAUNCH is “engineered to be the ultimate answer to the crowded category of pre-workout and endurance supplements.” Apart from a really cool brand name, LAUNCH takes a different slant on things by supplying the consumer with the pharmaceutical counterparts of cell volumizers. It comes in a capsule form (which is unlike most pre-workout products out there) and contains L-Citruline Malate, Creatine Nitrate, Beta Alanine, N-acetyl-tyrosine, sulbutiamine, caffeine anhydrous, nicotinoyl-GABA, Geranium Oil Extract and a few other goodies thrown in there! I’m now seeing Geranium Oil Extract creeping into many caffeine-containing products due to its amplification properties. Creatine Nitrate is also getting bigger and should be even more widespread by this summer. SAN states that:
“just 1 sample of their new LAUNCH product is all it takes to garner a loyal new customer.”
Okay, I will take you up on it Matt – send me a sample! Email me at genius@supplementgenius.com
Jillian Michaels Gets Sued
February 11, 2010
By: Johnny Justice
Jillian Michaels, star of NBC’s popular reality show, “The Biggest Loser,” is being sued by a fat girl named Christie Christensen, who claims she didn’t lose weight with the supplements endorsed by the celebrity trainer, according to the Associated Press. Saying she was duped into buying the “Jillian Michaels Maximum Strength Calorie Control” product. The lawsuit specifies that the pills did not lessen Christensen’s appetite and that she didn’t shed any pounds as the product promised, the Associated Press says. A photo of the buff Michaels and her endorsement of the supplement is on product’s package, billing her as “America’s Toughest Trainer.” It also includes the claim “Two Capsules Before Main Meals and You Lose Weight…That’s It!” The lawsuit states: “Ms. Michaels knows better - taking two pills before eating does not miraculously cause weight loss.” Christensen, whose suit notes that she has “struggled” with her weight for her entire life and bought “Calorie Control” because of Michaels’ endorsement, also is suing Basic Research, the Utah-based firm that makes and markets diet and weight loss products that the celebrity trainer endorses.
Basic Research In Hot Water Again
This isn’t the first time Basic Research has been in legal hot water. Click HERE to read of another case involving the diet pill giant. The suit seeks unspecified damages not expected to add up to more than $5 million. The supplement’s packaging notes that the statements claiming that the user will lose weight have not been approved by the FDA.
SOURCE: NY DAILY NEWS
BSN Donates 132,000 Bottles of SYNTHA-6
February 11, 2010
The earthquake that struck Haiti was a catastrophic event that’s taken a disastrous toll on the people of Haiti and whose long-term consequences will be felt for years. The heartfelt response this tragic event has elicited has been overwhelming, and everyone who has contributed on any level deserves to be commended for their efforts. For its part, BSN® has announced that they are deeply saddened by the suffering of the Haitian people, and they’re donating its own unique and creative contribution to the country’s relief efforts. BSN® will be sending 132,000 bottles of its ready-to-drink high-protein beverage SYNTHA-6™ RTD to the people of Haiti, as well as the doctors and nurses working around the clock to save lives who barely have a chance to eat! BSN®’s hope is that the RTDs will be a small blessing to those in need, from the victims themselves to the relief workers sacrificing to ensure Haiti’s survival. Great job BSN!
Will Other Supplement Companies Join BSN?
It will be interesting to see if CYTOSPORT, EAS, VPX, ABB, WORLDWIDE, MET-Rx, LABRADA, ISS RESEARCH or ALL MAX step up and send some of their RTDs to this cause? And while you’re at it guys, send a palate of chocolate to my doorstep as I’m catabolic as I write this! In all seriousness, congratulations to BSN for selflessly giving to a cause that may not improve their bottom line but that will enrich other peoples lives.
SOURCE: BSN
MUSCLE INSIDER Available In 41 Countries?
February 10, 2010
By: Scott Welch, BASc (Nutrition) CAAP (Advertising)“They’ll be bankrupt in 1 issue! Mark my words.”“What’re they nuts? Only 25% ads and 75% editorial - that formula will never work. Ya need to sell more ads to pay for everything!”“Scott Welch is out of his mind starting this thing! He may be a marketing expert and know bodybuilding but the magazine biz is a different kinda animal.”“We’re struggling to sell ads ourselves and you’ve got one magazine giving ads away for $1,000 bucks a page! This is the wrong time to start a new bodybuilding mag.”
- Ad To Edit Ratio: Well for one, we will will have 164 pages but only 25% ads and 75% editorial content! In nearly every other bodybuilding magazines, they’re 50% ads and 50% editorial. Some are as high as 60% advertising! So in an average 400 page phone book/bodybuilding magazine, you’re exposed to roughly 200 pages of ads! Don’t believe me, stop reading this, go grab an issue and count em up!
- No Censorship: Shit, cock, piss, dick, ass - ya I swore! You’re not gonna see the usual “coverups” and censoring of the truth when you read MUSCLE INSIDER! We aren’t gonna cover shit up to protect advertisers or “the powers that be”. No way. If shit goes down, we’ll cover it. If products taste good, we’ll be the first to tell ya because we try everything on the market. If you read an interview in our magazine, you’ll get a real interview not one “ghost written” to sound like the pro being interviewed (ya that shits happens all the time). If you see a training program in our magazine, you can bet your subscription to PLANET MUSCLE that we’ve tried it out ourselves before we recommended it to you.
- Worldwide Distribution: Now this is the REAL deal closer that “the big boys” are shaking in fear over. The following 41 countries will be carrying MUSCLE INSIDER:
- USA
- Canada
- Brazil
- Ecuador
- Argentina
- Venezuela
- Bolivia
- Chile
- Portugal
- France
- Italy
- Switzerland
- Germany
- Austria
- Holland
- Poland
- Ireland
- Ukraine
- Russia
- Turkey
- Greece
- Iraq
- UAE
- Jordan
- Kuwait
- Malta
- Libya
- India
- Pakistan
- Sweden
- Norway
- Serbia
- Macedonia
- Indonesia
- Singapore
- Malaysia
- Australia
- New Zealand
- Phillipines
- Japan
- China
5. Global Online Community