WEIGHTING IN

LARRY LITTMAN

This month supermarkets around the country will again be promoting often controversial appetite suppressants as well as meal replacements to help their customers shed extra pounds put on from holiday bingeing.

Despite adverse publicity related to phenylpropanolamine (PPA) and ephedra-based weight loss products, food retailers said they generally anticipate brisk sales of diet-related tablets, bars, powders and liquids, especially during the January promotional push.

While the ban on PPA following research indicating that it can lead to a stroke prompted a strong recall of many popular over-the-counter diet products in which it is an ingredient, retailers noted that natural food replacements have already filled their shelf space. Many of these feature the herbal stimulant ephedra, which has been under the scrutiny of the Food and Drug Administration.

Chattem, Chattanooga, Tenn., for example, pulled its popular Dexatrim containing PPA, but introduced an herbal alternative that contains ephedra, Dexatrim Natural.

In fact, ephedra-based products such as Metab-O-Lite (Rexall Sundown) and Metabolife, as well as the many new "metabo"-like imitators that recently arrived on the scene are driving sales in the weight control candy/tablets group. These items, as well as items from long-established industry leader Slim Fast (Unilever), are being featured by many supermarkets this month.

"The number of herbal supplements is overwhelming and they continue to proliferate," said Kay Stanfill, a dietitian for Pratt Foods, Shawnee, Okla. Pratt carries between 50 to 100 products in the diet category. Stanfill noted that many brands offer several varieties.

Adverse publicity "does not appear to be affecting sales of weight loss products," she said. "They are all good sellers. People are desperate to purchase items that they hope will help make them trim and slim."

Some retailers noted, however, that the recall of products with PPA has caused confusion among shoppers seeking new diet aids, and in turn confusion in the marketplace.

"The recall included some of the most popular products in the category," said Al Jones, vice president and category manager, Imperial Distributors, Auburn, Mass. "And many consumers are uncertain about what to replace them with, making it difficult to tell what products will sell."

Jones noted that historically popular diet products follow trends and run in cycles. The herb trend has stimulated the sales of ephedra-based weight control products. And, according to close observers of the weight loss industry, companies marketing ephedra-based products are already working on reformulations of their products in the event the FDA introduces tough restrictions on the herbal ingredient.

Four dietary supplement associations -- the American Herbal Products Association, Silver Springs, Md.; Consumer Healthcare Products Association, Washington; National Nutritionals Foods Association, San Diego; and Utah Natural Products Alliance, Salt Lake City -- have called on the FDA to adapt a national standard for the formulation, labeling and marketing of ephedra products.

Another strong trend today is high-protein, low-carbohydrate diets. These have been touted in several best-selling books -- "Dr. Atkin's New Diet Revolution," "Sugar Busters!" and "The Zone."

"I would guess that those products designed for strong-protein, less-carbohydrate diets will lead the next cycle," Jones added.

While weight control nutritional liquids and powders continue to rack up the greatest volume as a group, unit sales are slipping and the candy/tablets group headed by ephedra-based Metab-O-Lite and Metabolife is showing significant growth, according to figures from Information Resources Inc., Chicago, which tracks retail sales.

IRI reports that sales of weight control candy/tablets rose 112.9% last year, to $330 million for the 52-week period ending Nov. 5, 2000. Total units were up 45%. Mass merchandisers led the segment with $143 million, up 121%. Units increased 50%. Drug stores came in second with $137 million, up 123.7%, while units rose 56%. Supermarkets trailed with sales of $50 million, a 71% increase. Units gained 15.6%.

Dollar sales of weight control nutritional liquids and powders rose 9% to $1.1 billion as unit sales dropped 3% to 236.9 million. Food stores are the major sellers here with dollar sales of $555 million, up 7%, and unit sales of 125 million, up 7%.

Mass merchandisers were close behind with $419 million, a 16% increase, and unit sales of 82 million, up 7%. Drug stores trailed at $173 million, up 0.3%, with 30 million units, falling 6.3% from the previous year.

However, Tampa, Fla.-based Marketdata Enterprises, a research organization which regularly tracks the U.S. weight loss industry, points out that huge sales of diet products and programs are generated by mail order, multilevel marketing companies and informationals. Many companies selling weight control products are marketing them through their Web sites, kiosks in shopping malls and independent distributors that sell directly to consumers.

Leading brands in the candy and tablets segment, according to IRI, are Metab-O-Lite, with sales of $110 million and Metabolife 356 with sales of $35 million. Metabolife's primary distribution is direct rather than through traditional retail channels. Dexatrim, which was pulled from the market last year, was fourth with $26.3 million in sales, down 23% from 1999.

Ultra SlimFast continued to dominate in the weight control nutritional category with $493 million in sales, up 13.2%. However, units for the brand declined 4.9%.

Retailers reported that the new ephedra-based "metabo" items are strong profit makers while the long-established SlimFast products and other items in the ready-to-drink weight loss segment offer slim margins.

"But increased competition is already bringing prices of the metabo products down," said Jones of Imperial.

While controversy related to whether the ephedra-based dietary products are safe will continue, most retailers choose to market them.

"As long as there are no restrictions on the product, we have to give shoppers the options of deciding for themselves whether they want to buy it or not," said Stanfill. But, she added, Pratt sponsors a local health radio show, called "Your Health Matters," which points out the dangers of ephedra-based weight control products if not used properly.

Stanfill also noted that the stores distribute information on the product for shoppers. Pratt also promotes their pharmacists as health consultants. But, Stanfill added, "The publicity and the warnings and the information do not affect a lot of consumers. People desperate to lose weight want to try the products despite everything. Even stories of disaster fail to curtail their interest. Many consumers don't police themselves well."

That is the concern at Ukrop's Super Markets, Richmond, Va., which does not carry ephedra-based products. "Our pharmacists are not proponents of diet products," said John Beckner, director of pharmacy. "I believe in counseling people on healthy foods, nutrition and exercise.

"Many consumers are interested in quick fixes," Beckner added. "What they fail to understand is that they will eventually regain the weight. They have to have a long-range plan. Moderation not deprivation."