Business Trends

The main driving factors at the moment seem to be;

Exchange Rates: The market is just coming to terms with the weaker £ which is making UK Manufacturing increasingly attractive – especially against the $.  However, it also means that Whey Proteins are still incredibly high against a year ago and the decrease in euro cost is not being passed on in the UK.  I believe that Whey is rapidly losing its status as the leading protein in Sports Nutrition.

The Credit Crunch:  Concerns about the credit crunch are driving prices down.  Visits to the Gyms are reported to be down but sales of quality and value products seem to be holding.

Internet Stores – the increase in popularity in internet stores is having an impact on the market.  As the stores hit larger volumes, the larger stores are discounting the brands and are looking at their own in-house brands.  Their perception is that Brands make more margin than they really do and they overlook the cost of R&D and athlete support that many brands have got themselves into.

The result is that products are being driven away from quality towards manufacturing to a price – usually massively compromising quality.  While this has always happened to some extent, this is becoming a widespread problem.  Too much product is also being judged on taste and it is easy to make a product taste good – this issue is making it fit a nutritional need and still taste good.  In simple terms, taste issues are supporting the cheap products.

We are responding by improving production efficiencies (we have an excellent Team who work hard to get more production out every day), offering products engineered for quality or cost, buying well and continuing to offer excellent customer service with prompt delivery.  New Product Development is still the slowest part of the process.

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