Rexall Sundown to Be Sold

Rexall Sundown to Be Sold

AMSTERDAM--Royal Numico NV, parent company to General Nutrition Centers (GNC), announced it will purchase Rexall Sundown Inc. for approximately $1.8 billion. The purchase announcement on May 1 drove up the price of Rexall stock by 21 percent. The acquisition will increase Royal Numico's annual sales to more than $4.5 billion.

The deal will be financed by issuing new shares and bonds on Rexall stock and by refinancing existing Royal Numico loans. Numico is offering $24 per share in cash for Rexall's shares of its stock and will be assuming more than $114 million of Rexall debt. The purchase is expected to be completed in July. Rexall is online at www.rexallsundown.com. Royal Numico is online at www.numico.com.

Natrol Launches Ad Campaign, New Line

CHATSWORTH, Calif.--Natrol Inc., www.natrol.com, launched a radio advertising campaign for its new CetylPure product. The campaign features 30- and 60-second spots on nationally syndicated shows such as Dr. Atkins, Dr. Joy Brown, Dr. Ronald Hoffman and Michael Reagan. The product will also be highlighted in the form of 60-second spots and in-depth interviews on health-related shows including Your Personal Health, Natural Home and Health Talk.

The campaign will also feature marketing support from print advertising, placement on websites, satellite tours, speaking engagements, conferences, video news releases and other strategies. Target markets include Chicago, Los Angeles, New York and Tampa, Fla. According to Natrol, CetylPure, a proprietary blend of cetyl myristoleate, is effective for repairing and maintaining health joint tissue.

In related news, Natrol will be launching a new line of supplements with Dr. David Bresler, founder and executive director of the UCLA Pain Control Unit. The line will be sold exclusively through health care professionals.

Shuster Labs Launches Certification Program

BOSTON--Shuster Laboratories Inc. launched its "Seal of Quality" certification program in April. The program looks for purity, potency and overall quality. The "Seal of Quality" certifies that both the manufacturer and its individual products meet Shuster's testing requirements.

Shuster first ensures the manufacturer is meeting cGMP regulations by auditing where an individual product is manufactured, warehoused, packaged and tested. It then purchases those products at the retail level and conducts analytical, microbiological, physical and sensory tests. Potency, bioavailability, weight variability, microbial limits, product workmanship, package workmanship, labeling and net contents are all considered. Shuster is online at www.shusterlabs.com.

Texas Retail Chain Changes Name

HOUSTON--Himalaya Drug Co. has reported that its retail chain, formerly known as Ayurvedic Concepts stores, has been named Himalaya Herbal Healthcare stores. Partially prompted by customer and non-customer feedback, the move to the new moniker reflects the chain's support of the Himalaya Drug Co., which manufactures the 80-product line that comprises the chain's inventory. The inventory features multi-ingredient herbal formulas in tablet, capsule and liquid form, as well as single herb tablets, herbal teas, lotions, creams, shampoos and balms.

The company Web site is located at www.himalayacare.com.  

White Tea Better Than Green Tea?

COLUMBUS, Ohio--Researchers from Oregon State University reported at the American Chemical Society spring meeting that white tea may be a stronger anticarcinogen than green tea. Researchers theorize that processing tea may oxidize polyphenols, reducing its antioxidant benefits. White tea, which comes from the silver needle plant, is more lightly processed than green tea, which may make it a better cancer fighter. Preliminary results indicate that white tea may be particularly effective against colon cancer. For more information about the study, contact Roderick Dashwood at Roderick.5@osu.edu. To order white tea, try www.specialteas.com.

Nutrition 21 Defends Patent, Elicits Industry Response

PURCHASE, N.Y.--Nutrition 21, a division of AMBI Inc., has filed a $5 million lawsuit to protect its patent (number 33,988) for supplying chromium picolinate. According to Nutrition 21, nineteen companies have infringed on its patent. The suit seeks $5 million in damages. Among the companies named in the suit are America's Finest, Kingchem, Reliance Vitamins, Sabinsa, American Ingredients, Gallard-Schlessinger Industries, Jarrow Formulas, Triarco and VitaminShoppe.com.

Four companies, not named, have already settled. The settlements include damage payments and signed long-term supply and licensing agreements with Nutrition 21.

Many industry members called the action a marketing effort. "Nutrition 21 is taking advantage of the patent expiration by threatening manufacturers," said Art Salerno, president of American Ingredients. "We have audit statements from the past three years that show our chromium picolinate is theirs. In response, we may be requesting sanctions against them for filing a bad faith lawsuit."

Meanwhile, Sheldon Silbiger, president of Gallard-Schlessinger, noted, "We have never sold any chromium picolinate."

Healthnet Signs Web Deal with GNC UK

NEW YORK--Healthnet International Inc. (OTCBB:HLNT) has reported that its eHealthshops business, the United Kingdom (UK) branch of its eHealthstores business, has been licensed to provide Web site development service to 44 General Nutrition Center (GNC)/Health & Diet Centres (HDC)in the UK. According to Healthnet, eHealthshops services enable health food retailers to effectively and affordably expand their sales operations to the Internet. The GNC customized Web site is expected to fulfill more than 2,000 products and 81 brands to UK customers, with HDC as the distributor.

Healthnet recently launched eHealthstores in the United States and Canada and debuted eHealthshops in the UK. The services include Web site set-up and maintenance at a fraction of the time, effort and cost it would take a brick-and-mortar licensee to do it on their own. Also, the company hosts, maintains and upgrades the site as needed. Among other benefits, the sites have unique addresses, feature secure online credit card processing and offers warehouse-to-doorstep fulfillment.

Ephedra Makers Donate To Bush

NEW YORK--According to an article published in the May 22 issue of Time magazine, Texas governor and presidential candidate George W. Bush may not be as adamant about ephedrine regulation as he once was. It appears that Bush's board of health eased up on the supplements after 1998 campaign contributors linked to the ephedrine industry donated more than $130,000. In May 1998, health commissioner William Archer proposed to restrict sales of weight-loss products containing ephedrine. Soon afterwards, he allowed large manufacturers of the supplement negotiate how to market their product. Time found that Archer "had gone from taking the actions of a crusading regulator to those of an industry ally." Archer's change of mind may have been ignited by Metabolife lawyers who had ties to Bush. Coincidentally, $40,000 was contributed to Bush's campaign the same time Archer was meeting with industry leaders. Bush's healthcare adviser, Ron Lindsey, told Time that he supported Archer meeting with ephedrine manufacturers, although he does not feel he pressed Archer to forget his tougher regulation proposal. According to Bush's calendar, May 1998 was when he began meeting with manufacturers of the controversial supplement, including Ralph Oats, owner of Wellness International Work, who also contributed approximately $90,000 to the G.O.P.

According to a spokesperson in the Governor's office, Bush was not involved in Archer's deliberations and had not discussed ephedrine with Metabolife's lawyers. Instead of wading through this issue in court, regulations were discussed by physician and consumer representatives through 'regulated rule making,' a popular mediation technique in Texas. Mike Jones, a spokesman in the Governor's Communications office, stated that Texas still has some of the toughest rules in America in regards to ephedrine products, where consumers need a prescription to buy these supplements. "Texan consumers are better protected than most consumers in accordance with this product," Jones explained.

For further details, visit www.time.com or call the Governor's office at (512) 463-2000.

Online Happenings

Robinson & Associates Inc. has launched nutritionalmarketing.com, a website designed to educate retailers of nutritional products about how to build their businesses through marketing, customer service and more. President Marty Baird will also be speaking at this month's National Nutritional Foods Association (NNFA) trade show in Las Vegas. ... GreenAcres Natural Foods Market has launched a health and wellness website to its retail store and radio health show. The store is based in Wichita, Kan., while the website, GreenAcre.com offers consumers information on healthy living and natural remedies.

Covex is GMP Certified

PALM BEACH, Fla.--Madrid, Spain-based Covex, manufacturer of nutraceutical and pharmaceutical products, obtained GMP certification for the manufacturing of Vinpocetine and Vinca Minor products. The products are sold in the United States through the Covex USA office, based here. Its expanded warehouse facility now has fully automated extraction processes to fill U.S. orders. There is also a new, toll-free number, (888) 613-9920. Covex is online at www.covex.com.

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