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This is an excerpt from a report published from Harmon Bay an observer of the Direct Sales Channel of the Nutraceutical Industry.


“At Harmon Bay, we believe that the advancement of the Nutraceutical Industry in America is critical for our financial security as a nation. In our opinion, the rising cost of health care poses more of a threat to our way of life than does the precarious state of Social Security. Now, enough preaching to the choir and on to the information you requested....]



In 1994, President Clinton signed into law the Dietary Supplement, Health and Education Act (DSHEA). In that year America spent 14 cents of every dollar on health care. Just three short years later, when the law went into effect, that cost had risen to 17 cents of every dollar! Some very progressive and courageous companies decided to take this new law by the horns and used it to actively grow not only their businesses, but also the industry as a whole.


"Nutraceuticals" (also referred to as functional foods, or more specifically dietary supplements containing specific molecules from functional foods which have been standardized) were no longer something to be kept in the closet or to be made fun of by serious health minded professionals or consumers. The stereotypical "snake oil" (dietary supplement) salesman associated with the last 40 years of nutritional Direct Sales was quickly finding himself out of a job as testimonial driven presentations were replaced with peer reviewed studies. The newfound freedom of being able to distribute educational materials in conjunction with the sales of dietary supplements has in effect raised the bar for all of us.


Nutraceutical reps who found themselves in companies without science to back their products claims found their sales dropping as consumers moved their attention to the big companies with efficacious products, and the studies to back their claims.


Those of us who have been fortunate enough to have either started out in, or to have moved to, companies that were really leading the charge in the new DSHEA AGE have enjoyed quite heady times with rising sales and a newfound credibility among consumers and now, even by many in the allopathic community. However, while we have been floating around on the ceiling huge, multi-billion dollar companies have been watching the changing climate here in the States. All of the trends that have made this profession so attractive to so many of us financially are just as valid for companies from across the pond.


So the stage is set, the American market is ripe, and..... Enter Royal Numico! Royal who? Royal Numico (and yes they actually are Royal, the distinction was bestowed on them by the monarchy in the Netherlands when they turned 100 years old). I was caught completely off guard by who these guys were, by how huge they were, and by what they are up to. Guess I was too busy feeling self important on my mission to change health care in America to look beyond what me and my fellow distributors were doing day to day.


Royal Numico is the largest producer of nutritional supplements and related products in the world. Last year their sales were over $4 billion dollars without any retail outlets. Royal Numico is the company that supplies roughly 3/4 of the Direct Sales companies with the nutritional products they market. Most stuff on the shelves of retail outlets also comes from Royal Numico, even people who claim to make their own stuff are often buying their materials from Numico and either repackaging it or combining it differently.

So, in effect, what has happened with the changing climate towards dietary supplements since the DSHEA law is that Numico saw an opportunity to expand their presence even further. They made a decision to also become the largest retailer of dietary supplements in the world, so they bought GNC last summer for $2.5 billion. This was not a merger or a loosely held alliance. Numico bought GNC outright and retired the stock! Numico had even more plans. They also wanted to become the largest Direct Sales company in the world (more about this in report #3) so they purchased an existing Direct Sales company that was doing about $180 million in annual sales when they made their bid. The associates, who were so focused on opening foreign markets, never new what was going on behind the scenes.


Again, Royal Numico just moved in, wrote a check for the company & retired the stock. What is so intriguing is why Numico did this, considering they were already the largest Nutraceutical company in the world, supplying the majority of products to the Direct Sales industry.


In the last fifty years or so, Numico has been funding major research into natural molecules and their effects on the body. You see Numico is the largest manufacturer of baby formula in the world. Forbes rated Numico as the number one food company in the world. It is my understanding that they also have the third best performing stock in the world. When I say they are funding research I mean they are FUNDING RESEARCH! They spend more each year in research than most Nutraceutical Direct Sales companies gross! In just one of their facilities they employ over 300 scientists alone, over 200 of which have at least one Ph.D. each! They employ over 27,000 people in over 100 locations around the planet. These folks are nuts for discovering exactly what works out of the natural resources on our spaceship earth and they have the private funding to do it.


In the course of their research Numico has made some phenomenal discoveries that can and will positively effect the quality of life for millions and millions of people worldwide (literally). What they lacked was a distribution channel for these discoveries. These products require educated consumers and they cost more than the run of the mill dietary supplements, which again means that consumers need to understand why they are being asked to pay more. You and I both know that the best way to get a new product to market, that has a story to tell, is through direct person-to-person sales.


It is also particularly advantageous for Numico to market these new products through a Direct Sales company because almost all of the over 150 compounds they have discovered are not only patented, but they have double blind clinical trials to support their efficacy. I am not talking about the pseudo science papers some companies try to pawn off as legitimate peer reviewed papers that all to often are only based on a handful of participants or are published in a "puppet journal" of the particular company selling a specific product. The Royal Numico papers are full blown, verifiable clinical trials. Numico can do this because they are worth billions (around $44 billion) and, they even own a few hospitals making it even easier to carry out that level of research. The European market supports these kinds of companies; with 100+ years of good will and the science to back their claims it is easy to see why.



- Numico is largest Manufacturer of nutritional supplements with sales in excess of $4 billion worldwide

- Numico is largest Retailer of nutritional supplements, owners of GNC

- Numico is largest Researcher of nutritional supplements, have a private research campus with over 300 scientists working full time

- Numico plans to be largest Direct Seller of nutritional supplements in the world, has billions of dollars to accomplish this goal ”



In Health & In Wealth

Harmon Bay

Additional Information about Royal Numico is available at their Corporate Website.



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