- Strong sales through Walmart continued with 66% of stores stocking NGS Products selling at an average sales velocity (units sold per store per week) of 1.15.
- Number of Walmart stores now increased to 465, with the Company aiming to deliver further store increases and higher sales.
- NGS has begun the onboarding process with two new retailers iHerb and CVS Pharmacy owned Alternative Formats, with these retailers expected to significantly contribute to NGS revenue and retail expansion efforts.
- iHerb has selected the full Healthy Heights® product range for their eCommerce platform with initial sales anticipated to commence June 2023. Annual sales expectations for this new e-commerce retailer are expected to be significant.
- iHerb currently services over 10 million customers, across 180 countries, focused specifically on health and wellness products.
- Onboarding commenced with CVS Pharmacy tailored offerings stores on 2 items in the Healthy Heights® portfolio, with placement on shelves in Q1 2024. Final store count, banners and locations to be determined.
- The Company expects further US retailers to start ranging NGS products, leveraging off Walmart’s sales success as NGS continues to execute on its North American expansion strategy.
Nutritional Growth Solutions Ltd (ASX:NGS) (“NGS”, or the “Company”) a global nutrition company creating clinically proven products to support growth and development in children, is pleased to provide an update as the Company continues to execute on its North American expansion strategy.
NGS’ CEO, Stephen Turner, commented: “We are very excited to see the entire Healthy Heights product range stocked on iHerb’s e-commerce platform and we look forward to working closely with iHerb to deliver our premium quality products to an even broader customer base around the world. Although the initial order is expected to be approximately US$10,000, the agreement with iHerb incorporates performance bonuses designed to drive growth and increase annual sales targets, and we expect this sales channel to significantly contribute to NGS revenue. In addition, having NGS products stocked on iHerb will further build brand awareness, which is expected to result in a positive flow on effect to the Company’s Amazon business and the NGS webstore."
“We are also very pleased to have commenced the onboarding process with CVS Pharmacy Alternative Format stores. We are looking forward to having two Healthy Heights products to be displayed in a multi-brand modular set up aimed at promoting children’s health and nutrition. We expect these stores to be both a catalyst for further expansion and a strong revenue driver for the Company as we pick up more physical distribution with our brand Healthy Heights. We continue to work with CVS during the onboarding process and look forward to confirming store numbers.”
“NGS continues discussions with leading retailers across the United States, and we expect to see further expansion of the Healthy Heights brand as additional stores seek to leverage off Walmart’s sales success.”
It should be noted that although the Company considers the opportunity with iHerb and CVS Pharmacy owned Alternative Formats of a high potential to increase revenues, the agreements with iHerb and CVS, and the increase in the number of Walmart stores and are not currently material as there are no minimum order sizes nor guarantees of future revenue.
Nutritional Growth Solutions is a global nutritional health company focused on the well-being of children. NGS develops, produces and sells clinically tested nutritional supplement formulae for children following 20 years of medical research into pediatric nutrition at Schneider Children’s Medical Centre, Israel’s largest pediatric hospital. The nutritional supplements market has experienced tremendous growth in recent years, but most attention has been focused on adult users and children under three years of age. The three to twelve-year-old consumers represent a larger market opportunity and NGS is highly differentiated from its competitors with clinically tested products and an expanding product portfolio to capture this market opportunity.