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Muscle Maker Grill?...interesting...same sort of agreement from 2 yrs ago but never happened. Wonder how this is different.
http://www.thestreet.com/story/11409986/1/inergetics-announces-the-launch-of-its-private-label-channel-and-executes-supply-agreement-with-muscle-maker-grill-restaurants.html
for sure worth a follow...will be an interesting study
sounds like a a possible exclusivity agreement period.
All makes sense and we are all looking forward to seeing the plan come to fruition.
Not skeptical, just been in the vitamin/sports nutrition game for a very long time and have seen many successes and failures (including those celebs who have tagged their name to these sort of products). Knowing what success looks like in this industry prompts my posts.
I've been long on Inergetics for some time now...still planning on being long...there is hope here like never before, thats for certain.
Didnt mean to imply they arent, just meant 'other larger chains'
Great points / questions and is absolutely 'essential' (sorry) that these are addressed as educational tools. Inergetics should supply Marthas team with these points, putting them out there to her following / collective audience ASAP.
These large chains will not give much rope on performance. In fact, many of the larger chains may actually wait to see how well she performs at WG before making a move.
Cant say I disagree. But, to your point... if Surgex Fix is such a great product why cant / why isnt this TEAM positioning it better and making it a success. Its faded into the background.
All in all...we all have every reason to be very hopeful of a successful LAUNCH and very much looking forward to encouraging reports post NACDS show.
Unfortunately, Rain, your point solidifies mine even that much more. Celebrity Martha - homemaker / cook advice giver - has about as much ability to advise on nutrition as does Celebrity Sly - silver screen star. If 'advice giver' were to make it were based on that criteria, it would have been Dr. Phil...which I will defer to my previous post.
Not saying its not possible for this to work with MS. Just saying, based on past history in this industry, regardless of her "millions of followers", there are a few major factors involved here that will come into play and needs to be addressed by Team Inergetics. Just be cautious in the overzealous play on MSE at this point and time.
Maybe because Inergetics was the only one that would actually take the bait?
Yep...you got it. And CONGRATS on your accomplishment!
History of celebs trying to take a piece of the healthy supp. industry proves otherwise, but I sure hope you are correct, DBS!
Another good one from the celeb crowd...yep, this is the one and only Dr. Phil...bomb...
http://graphics7.nytimes.com/images/2003/10/27/business/27PHIL.jpg
Point is, just because they have a following does not mean that following follows them down ALL paths...
Comparing egos as well...I might add. That does factor into the equation...
Only comparing as in Sly to sports nutrition as Martha to 'healthy living'. Look at Slys face...this product was not launched recently..it was launched during his VERY relevant and VERY current to the day period of his career!
Yep...were is the mainstream ads / marketing? Any vertical pubs? Any gossip pubs? Any pubs at all outside of the flaccid YouTube approach? Get aggressive! This category requires $!
BTW...whatever happened to SURGEX?
Well...not so much...
http://www.musclesprod.com/wp-content/uploads/2010/04/stallone-pudding.jpg
I knew everyone involved in this project...trust me - a rock solid team! Success? NO. Why? Ego. I'll leave it at that...
Curious...if Sylvester Stallone were to tie his name into a sports nutrition line (much same scenario as MS) do you feel his name alone would make it 'happen'?
All retail businesses have a POG schedule...they plan many, many, many mths out
what im saying...in total..is that each chain has its own re-set dates. what "major chain" has accepted the line is not all the chains, just one of many that need to be part of the puzzle. IF / When it is accepted and part of all other POGs, that does not ensure success. What ensures success is longevity due to the consumer consistently buying the product. Marthas name alone does not ensure longevity. Marketing, efficacious product, and product team (Inergetics)ensures longevity. Is there a better chance that Martha can lend a hand in its success than most others...absolutely. But do not count on it...I've seen and been involved in this too many times before to decide now is the time it sink it all in.
Merely the fact MS is tied to this product line DOES NOT ensure success. It does, on the other hand, promise a good strong launch; a few FDM / drug channels will MAYBE give it a shot because shes involved as a NAME - again, they have to find space for it in an already VERY crowded space...many brands of which are already successful and have a very healthy following. The Inergetics team CAN NOT let off the pedal only because Martha decided to attach her name to a list of ingredients that guarantees her a payout - do you really think that anyone in her organization is doing their due diligence to make sure that all raws used are actually efficacious? Not. They are guaranteed a payout, period. Its now up to the Inergetics team to make sure all other parts of the business ensures success. Theres games to be played from a business perspective, but even then...
Again, this is not an automatic lottery "we won". USE CAUTION! We have only just begun the climb to even reach the tip of the proverbial iceberg. It would be great to see the stock explode, but with 15 yrs experience I will not lend to the fluff that takes place to mislead others into thinking we are on the path to a lottery windfall. Promising? Yes, a-b-s-o-l-u-t-e-l-y!
Sorry, just keeping it real...
Thats just one chain...not all follow the same re-set schedules.
Bingo
Chain drug stores have 're-set' dates so it all depends on their avail. to include in any of their POG's for 2013.
Its not Inergetics that Im speaking off, the team does seem to have the make-up of industry experience. Twinlab not so much, but Nature Bounty is a larger player. What Im saying is the vitamin industry is extremely competitive, many celebrities have tried their hand at attaching their name as a brand...without success.
Theres no doubt the pipeline fill will be promising, but getting that product into the hands of the consumer on a consistent basis / having it pulled off shelf, is key. It will more than likely be Q1 before POs hit. And the margin for the retailer obviously needs to be there as well.
Again, just a word of caution...Martha obviously has a big name, but that does not automatically translate into an explosive vitamin product line.
If all planets align...
This is an incredibly competitive industry folks. As exciting as it is to have Martha on the label, this does not make it an automatic launch into stratosphere. This industry is very costly and will demand more than just her name to equate into success. Period. As much as I would love to see the 'home run' we all deserve...theres still plenty of discretion that needs to be exercised at this point.
No to mention delays for one reason or another are inevitable.
Lets hope. Theres a reason why this is...targeting women specific is a narrow market / window of opportunity.
My bet is they are counting on the large pipeline fill of MS to fund the other brands marketing...
Agreed...CVS Walgreen will have little patience for lack of velocity. Inergetics better have all guns blazing ASAP. This is not a 'slow growth' category - allowing for momentum to build.
I honestly think this will be very a intriguing line for the FDM corp. buyers and there will be support from a few chains. No doubt stock will move once the initial POs start coming in.
Are you saying $20m in NRTI Rev? Is that 2 products per mth for the year or 2 products total for the year?
The first year will be a lot of pipeline fills...many DCs and shelves to fill if the bigger players buy in to the concept of Martha pills. Margins will probably fall in the 20-25% range (post broker fees, scan downs, loyalty fees, other FDM fees, etc). Martha wants 1.8m. If NRTI sells $10.8m in the first year that makes Marthas take 10%...now NRTI looking at a margin in the 10-15% range. NRTI would need to sell (to stores) around 1.5m units to make that $10.8m. Thats a lot of doors (stores) and direct to consumer purchases they would need to achieve to hit that sort of revenue in the first year.
This is all assumptions of course, but lets hope everything aligns well and we're on the ground floor of a successful launch.
Tying her name to the product doesnt make it efficacious. The sort of marketing Im speaking of needs to include educating on what makes MS vits. different from the other mega SKUs out in market place.
This whole MS idea sounds sexy, but NRTI still has a lot of work to do to make this a success. Proof will be told by end of Q1 2014.
Cheers.
It can be, but MS line will be playing in a very, very crowded and competitive segment...expensive too. Margins are slim to begin with and adding royalties to that margin mix makes it rough...volume is essential, particularly in the first year. If they can get CVS, Walgreens and Rite Aid on board immediately that would help, but the challenge there too is do they have enough OTB$ (open to buy $) to bring in the line this late in the year? When their POG resets (planogram) are scheduled is key too. The next opportunity to get on shelf may not be until Q1 or 2 of next year. Ideal would be another reset in Sept or so. Even then, plans have been made by these companies and they may not have the time to revamp.
Marketing will absolutely be essential to a quick success...it would be great to hear marketing strategies. Simply having her name on a bottle and advertising on website wont be enough...again, very tough segment with many loyal consumers dedicated to their current brand. Schiff, Natures Made, Natures Bounty, etc. all have a very large portion of that segment share. Walk in to a drugstore and you'll see those three taking up most of the space.
MS line has a great deal of potential...the team at Inergetics has experience in this segment and hopefully solid relationships within the industry, lets see what they do with it.
FINGERS CROSSED!
Supermarket chains do buy products from brokers, place said product on shelf and once sold to a consumer its considered as 'SOLD THROUGH' / 'sell through' / 'pulled through'. Its retail language...I thought everyone knew that, my bad.
Again - selling product TO an FDM (Food/Drug/Mass) account; filling the pipeline (filling all DC's - distribution centers- and stocking shelves) is one thing...selling the product THROUGH is the real story. Just because its on shelf does not mean it will picked up by a consumer and bought (sold through).
Question posed by many is...from a marketing perspective what is Inergetics doing to ensure the product lines we now own will be 'sold through'/ picked up and bought by a consumer?
You offered...I didnt request
Not to mention...sold 'to' is not the same as sold 'through'...
along with all that good info you were going to share with me last weekend? ANY good news is welcomed...
Thanks for sharing.
There are certain challenges with being a 'licensee'. Not to say that it cant be done, but the company Everlast (boxing equipment) did the same thing with a sports nutrition company - dismal results.
The royalties are certainly a margin buster and FDM space is not cheap. Lets hope Martha and team do their part and are true partners - allowing the team at Inergetics to do their thing and not be more of an interference. Celebrity personalities tied into brands are also a challenge...one wrong move on their part and it impacts sales.
All in all...this should be very interesting to see how it plays out.
Thank you, that's all I was asking for to begin with.
Now lets hope the sell-through is as strong as the pipeline fill. The Inergetics executive team does have solid NBTY / Rexall Sundown background - which includes vitamins, so there is finally industry experience behind those four walls.
Thanks for trying to be the professor, but in this industry DISTRI-BUTE can mean DISTRI-BUTOR; lending to a few different meanings. The word PARTNERSHIP can have a very loose meaning in and of itself.
And out of your 5 posts, professor, you still failed to show where it states that Inergetics is - as you put it - "in charge of MANUFACTURING" the product. Where is that quote in any of Inergetics statements?
The simple question is...does INERGETICS have a financial interest / ownership in the Martha Stewart line of products or are they merely a WHOLESALER. HUGE difference. Nobody else call sell Martha Stewart products? That can easily mean that Inergetics is a EXCLUSIVE WHOLESALER not a PARTNER IN OWNERSHIP...they buy it from Marthas group; mark it up by a small % and resell it. THAT makes them a DISTRI-BUTOR and THAT makes a big difference in their level of revenue stream.
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dis·trib·u·tor
[dih-strib-yuh-ter] Show IPA
noun
a wholesaler who has exclusive rights to market, within a given territory, the goods of a manufacturer or company.
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distributor
An entity that buys noncompeting products or product lines, warehouses them, and resells them to retailers or direct to the end users or customers. Most distributors provide strong manpower and cash support to the supplier or manufacturer's promotional efforts. They usually also provide a range of services (such as product information, estimates, technical support, after-sales services, credit) to their customers.
So is Inergetics now merely a distributor (small marginal % of products sold) or are do they have any ownership / manufacture any of the brands they are now associated with? Including Martha Stewart?
Newark, NJ, July 10, 2013 – (eTeligis via Accesswire) -- Inergetics, Inc. (NRTI) announces an agreement to distribute Martha Stewart Essentials[TM] at a major chain drug retailer this fall.