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    Features

    A Deep Well for Targeted Health Products

    From multinationals to startups, a growing number of companies are diving deeper into wellness by building portfolios that address myriad health issues.

    A Deep Well for Targeted Health Products
    A Deep Well for Targeted Health Products
    Ami Wellness offers the Seasons Collection, a range of tinctures for common symptoms caused by PMS and menopause.
    A Deep Well for Targeted Health Products
    Anser! is a new line of women’s multivitamins, beauty supplements and prenatal care to meet the needs of multicultural women.
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    By Christine Esposito, Managing Editor, Happi 09.01.20
    Earlier this year, the Global Wellness Summit (GWS) released its top 10 wellness trends for 2020 that would impact the $4.5 trillion global wellness industry. Those trends emerged from the insights of 550 experts from 50 nations including top economists, doctors, academics, technologists, and the CEOs of international corporations across all fields of wellness. The list offers proof that there’s a growing interconnection between personal care and wellness.

    Leading CPG companies are banking on this shift to overall wellness among consumers; their portfolios include products sold in the beauty and personal care aisle as well as brands that treat and provide routine maintenance for a range of health issues. Under Procter & Gamble’s umbrella are Olay skin care and Pantene hair care, but also Align Probiotic and Metamucil. Clorox (maker of the eponymous bleach) owns Burt’s Bees but also RenewLife digestive health products as well as Rainbow Light, Natural Vitality and NeoCell dietary supplements. Johnson & Johnson owns high-profile mass market skin care leaders Neutrogena and Aveeno, plus digestive health brands Mylanta, Pepcid and Imodium. Unilever’s stable includes Dove, Axe and Vaseline as well as Olly Nutrition, a U.S.-based vitamin and supplements brand, and Equilibra, an Italian company that sells skin care, hair care and nutritional supplements. In addition, Unilever’s food and teas business offers SKUs that take cues from wellness, such as Soothe Your Tummy Herbal Supplement (botanicals are blended with ginger essential oil), and Culture Republick, an ice cream brand that is packed with probiotics.

    As more consumers look to take control of their health, smaller companies that have had success in wellness have become attractive to larger players.

    In June, for example Nestlé Health Science (NHSc), a wholly owned subsidiary of Nestlé, acquired a majority stake in Vital Proteins, a Chicago-based collagen brand and lifestyle and wellness platform offering supplements and beverages. Collagen supports the health of skin, hair, nails and bones/joints.

    Vital Proteins, which has 150 SKUs across 35,000 retail doors in North America, including Whole Foods, Costco, Target, Walgreens and Kroger, touts products like Vital Proteins Vitality Immune Booster, an all-in-one formula that contains collagen and boosts the immune system with electrolytes, vitamins C, D, B12 and zinc. It more recently rolled out a Beauty Capsule collection with three options—Beauty Boost, Skin Hydration and Hair Boost—that help to promote healthier hair growth, skin elasticity and nail support. Key ingredients include biotin, selenium, vitamin C, zinc, hyaluronic acid and organic ashwagandha.

    Vital Proteins, which will continue to operate as a standalone business, is said to complement NHSc’s other vitamin, mineral, supplement and wellness brands such as Atrium Innovations, Garden of Life, Pure Encapsulations and Persona, a personalized vitamins business.

    Nestlé said the deal marks its first acquisition of a collagen-based wellness company, proving that “consumer mindsets are shifting toward bettering one’s personal well-being.”

    That said, this isn’t Nestlé’s first foray into beverages that can help boost one’s appearance; In 2008, Nestlé launched a product called Glowelle, a beauty beverage line, which was later shuttered in 2011.

    Healthy Pursuits
    The wellness space continues to attract new players that offer products to be swallowed as well as applied topically—all in pursuit of a healthier lifestyle.

    One new entrant is Hello Bello, a Los Angeles-based family care brand with personal care and wellness products that recently expanded its shelf presence to 6,000 CVS stores and online, marking the brand’s newest retail expansion in the U.S. since launching in February 2019. Founded by celebrity parents Kristen Bell and Dax Shepard, Hello Bello’s range includes gummy vitamins (Sleep Well, Women’s Multi, Hair, Skin + Nails, Immunity) and plant-based family care products that range from bug spray, baby powder, shampoo to body wash and diaper rash cream. 

    Plant-based is also the theme at Ora Organic, an Austin, TX-based vegan supplement company, which launched beauty supplements to address four common struggles: hormone control, sleep deprivation, sun-damaged skin and irritated skin. The new SKUs include Good Skin Day, which helps restore hydration and calm stressed skin with turmeric extract, amla, mangosteen, grape seed extract, elderberry and milk thistle; Sun-kissed, which helps protect against further sun damage and skin discoloration caused by sun damage via astaxanthin, olive extract, apple powder, beetroot and carotenoids; You’re a Knockout, which supports stress relief and restful sleep with tart cherry, Siberian ginseng, lemon balm, passionflower and valerian root; and Hormonious, which promotes a healthy hormone balance to encourage vibrant skin and hair and reduce hormonal acne through acerola extract, burdock root, maca, ashwagandha, cordyceps and holy basil. Ora Organics’ roster also includes Beyoutiful, a skin, hair and nail vitamin, and Aloe Gorgeous, a plant-based collagen-boosting powder.

    When it comes to high profile, natural ingredients, CBD continues to be a huge story across wellness. Leading player Charlotte’s Web Holdings, Inc. in June acquired Abacus Health Products, Inc., expanding its reach in the topical OTC market. Consumer brands sold by Abacus include CBD Media, which offers topical pain and skin care products, and Harmony Hemp, which touts a range of hemp-based personal care SKUs such as lotions, soap, bath products and more. The company also has CBD Clinic, a brand for professional use. 

    Together, the companies will distribute products to more than 21,000 unique retail locations with limited shelf overlap due to what Charlotte’s Web called “adjacent but complementary” positions across the ingestible and topical CBD product categories. “The addition of Abacus Health cements a market leading position in both topical and ingestible products in the CBD category, representing approximately 33% market share of the U.S. CBD food/drug/mass retail channel,” noted Deanie Elsner, CEO of Charlotte’s Web.

    San Diego-based Being Hemp—which touts products that address women’s health, wellness and beauty needs—launched several products including an anti-aging skin care system, apple cider vinegar (ACV) gummies featuring high-absorption Nano CBD, and five condition-specific tinctures.

    Designed to support overall health and well-being, Being Hemp’s Apple Cider Vinegar Nano CBD Gummies are watermelon-flavored and have 350 mg of ACV and 25 mg of Nano CBD per gummy—more than twice the CBD of most other gummies. ACV is commonly used as a natural appetite suppressant and is known for various healthful properties, including antimicrobial and antioxidant effects. Evidence suggests it may offer additional health benefits, such as aiding weight loss, reducing cholesterol, lowering blood sugar levels and improving the symptoms of diabetes, according to the company.

    The Being Hemp Anti-Aging Skin Care System has three products that are hypoallergenic, sulfate-free, and synthetic fragrance-free, and include superior-absorbing nano CBD to restore cellular balance and reduce puffiness, as well as hyaluronic acid to hydrate and reduce lines and wrinkles. The range includes Beautiful Age-Defying Serum, formulated with collagen, saw palmetto, and vitamins A and B; Beautiful Day Crème, a moisturizer that features vitamin E, rose hip oil and titanium dioxide (to protect against UVA and UVB); and Beautiful Night Crème, a formulation of vitamin A, rosehip oil and a lavender scent with a hint of vanilla.

    New Being Hemp Tinctures deliver 50 mg of Nano CBD per 1 ml serving, and include: Restful, a sleep formula with melatonin and lavender; Immune, an immune booster with turmeric and elderberry; Serene, a stress and anxiety formula with bacopa and limonene; Centered, a PMS/mood formula with ashwagandha and evening primrose; and Harmony, a hormone balance formula with St. John’s wort and black cohosh root.

    Mind, Body & Soul
    The focus on wellness also includes mental health—an issue that many contend will only become more important the longer the U.S. deals with COVID-19, and subsequent shutdowns that decrease social interaction and impact the economy. More brands are dabbling in this space, which had traditionally been one that not many consumers were willing to talk about.

    New brand CarryOn says it is on a mission to normalize the pursuit of “mental well-being.” The Denver-based company believes that the pursuit of mental well-being should be as prominent as physical fitness and nutrition, as all are important pieces of holistic health and self-care. Its product range includes a line of new sparkling CBD waters.

    Well known vitamins and supplement brand New Chapter offers products such as One Daily Multiherbal Stress Relief, which combats stress with several organic herbs including a clinical dose of ashwagandha and black cumin; One Daily Multiherbal Sleep Well, which contains a clinical dose of organic tart cherry, ashwagandha, chamomile and passionflower; and One Daily Multiherbal Holistic, which contains turmeric, ginger and black seed to improve cognitive function and memory while relieving stress, supporting cardiovascular function, and supporting a healthy inflammation response. 

    Also tackling this issue is Healist, a company co-founded by Michael Bryce, a marketing professional with more than 15 years of experience working with Unilever, Reckitt Benckiser and Coty. On its website, Healist says it sees “well-being as a daily practice to cultivate and create solutions to work with these incredible processes and restore balance when life— ultimately—interrupts.”

    The company’s products include Calm Chews, vegan gummies that contain organic ashwagandha, “custom calming terpene blend” and broad spectrum hemp extract; Sleep Drops, a blend of lavender, chamomile, lemon balm, a custom “sleep terpene blend” and broad spectrum hemp extract; and Trilogía – Terpenes+ Daily Immunity Vitamin C Supplement, which supports immune function and recovery and is formulated with terpenes, ginger and antioxidants. Healist has also formulated a hand hygiene product, Trilogía – Terpenes+ Hand Cleanse, a 70% alcohol solution infused with skin-calming terpenes and aloe to soften and smooth hands.

    An Elkhart, IN direct-to-consumer brand called Ami Wellness also operates across topicals and ingestible products with a range that includes tinctures, herbal rollers, and body and face oils that blend cannabinoids, adaptogens and traditional herbal remedies. The firm’s new Seasons Collection is a range of tinctures for common symptoms caused by PMS and menopause. The range includes PMS Relief (cyperus rhizome, Chinese peony root and bupleurum root), PMS & Cramp Rescue (cramp bark, sichuan lovage rhizome and black cohosh root); Menopause Relief (chaste tree fruit, melia fruit and ophiopogon root), and Hot Flash Rescue (linden, blue vervain and motherwort, which supports uterine health).

    “We’re excited to build on our mission by taking a holistic approach to filling the gap in wellness for women,” said Ami Wellness Founder Triniti Gawthrop.

    Also gender specific is Anser!, a new line of women’s multivitamins, beauty supplements and prenatal care designed to meet multicultural women developed with actress Tia Mowry and  supplements company BioSchwartz. The range includes a multivitamin and prenatal care supplements as well as Beauty Formula, which is designed to deliver healthy and hydrated hair, and skin and nail support, too.

    As the connection between inner and outer wellness strengthens on Main Street, and niche brands grow their presence with products that resonate with everyday consumers, there’s rising interest on Wall Street, too. 

    In April, North Castle Partners and True Beauty Capital announced a strategic partnership to provide private equity capital and operating support to companies in the beauty and personal care sectors. In the new partnership, Richard Gersten, founder of True Beauty and a North Castle partner from 1999 to 2007, will work exclusively with North Castle on investments in the beauty and personal care sectors that require capital in excess of $10 million. Also in the announcement, True Beauty said it will pursue investments in smaller, earlier stage beauty, wellness and personal care brands requiring investments of less than $10 million.

    According to white paper titled “Wellness for All” from HatchBeauty Brands, as an industry with revenue projected to double in size by 2025, the supplement space is a standalone behemoth. However, the beauty space has created a path for a more expanded, consumer-friendly take on ingestibles—one that spans generations and engages customers from all walks of life.

    Further, HatchBeauty contends aging is no longer a key driver in the wellness industry, citing a 2019 Pew report that stated 70% of consumers age 18-24 use supplements daily. By focusing on an expanded set of needs, consumers of all ages have realized they can address things like focus, energy, and immunity via a combination of supplements that contain a super dose of nutrients hard to absorb in regular diets.

    HatchBeauty’s experts predict consumers will begin to associate ingestibles as a non-negotiable part of their beauty routines, seeking first and foremost holistic solutions to all of their concerns. Additionally, having been groomed by the beauty industry, those same consumers will likely demand accessible, easy-to understand supplement solutions. Wellness will no longer be a status symbol; instead it will be a right among the everyday consumers.

    That bodes well for the global wellness economy, which grew 6.4% from 2015-2017, nearly twice as fast as global economic growth, according to GWS. However, as America continues to grapple with COVID-19, those on Wall Street and inside C-suites and corporate board rooms alike will be fixated on the wellness market’s ability to stay healthy even in an anemic economy. 
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