Can ChromaDex Mass Market Its New Supplement?

ChromaDex (CDXC) has a history of successfully mass marketing supplements through major national retailers, and it recently purchased a patent for what could be one of the best-selling supplements of all time.

ChromaDex is already having success with a blueberry-based supplement called BluScience. The active ingredient in BluScience is pTeroPurepterostibene, a powerful antioxidant found in blueberries. Scientific studies have proven that the antioxidants found in blueberries can prevent the deterioration of the brain that leads to problems such as Alzheimer’s disease.

ChromaDex has a Record of Success

BluScience has proved to be a hit with an aging population, and since its launch earlier this year, ChromaDex has sold 125,000 units of the product. Sales of BluScience are reportedly beating projections by 50%. Consumer demand for the product is high, and revenue from BluScience sales has exceeded in $2.2 million.

BluScience responds to an aging population’s fears about Alzheimer’s disease and dementia. News stories about the increasing rate of Alzheimer’s stoke fears about the disease, which drive sales of products such as BluScience. Aging Americans are increasingly afraid of dementia. BluScience and other supplements allow individuals to do something about the problem.

ChromaDex’s BluScience line successfully targets individuals who are scared of this growing health problem.

Proven Ability to Reach Mass Market

Marketing sophistication is another reason why BluScience has been such a success. ChromaDex has created five varieties of the supplement in attractive packaging. This packaging looks more like that for medicine than a traditional supplement.

ChromaDex has also demonstrated the capacity to market BluScience to both the mass market and the traditional market for supplements. The supplement is for sale at America’s two largest drugstore chains, Walgreens (WAG) and CVS CareMark (CVS). Walgreens has over 7,600 stores nationwide, while CVS has around 7,000 stores. That puts BluScience onto the shelves of popular retailers in almost every neighborhood and town in America. Walgreens now owns the massive online retailer, where BluScience is also sold.

Strong sales at retailers like Walgreens could help ChromaDex get BluScience into other retail giants, including Wal-Mart (WMT), Kroger (KR), and Target (TGT).

ChromaDex has also able to successfully distribute BluScience through specialist retailers, such as GNC Holdings (GNC). GNC has 7,600 locations worldwide. ChromaDex has also successfully tapped into Vitamin World, which has 400 retail stores in the United States. Vitamin World also sells to over 15,000 households through its website.

The success of BluScience demonstrates that ChromaDex has the capacity to generate cash from its products. The BluScience line’s success also validates ChromaDex’s business model, which is turning scientific discoveries into marketable supplements made from natural ingredients.

ChromaDex has demonstrated its ability to create a successful supplement and sell that supplement through mass retailers and online channels. The success with BluScience proves that ChromaDex is capable of turning supplements into successful mass market products. More importantly, the company knows how to get such products in front of large numbers of consumers.

A New Product with Great Potential

Now the company is about to put this proven expertise to use creating and marketing a supplement that could be far more popular and profitable than BluScience. A recent press release revealed that ChromaDex has purchased the exclusive rights to a process to manufacture a supplement called NicotinamideRiboside, or NR, from the Weil Cornell Medical College.

NicotinamideRiboside is a potent form of vitamin B that is made from milk. Scientific studies indicate that it could prevent obesity and extend the human lifespan by speeding up the metabolism. When researchers in Switzerland fed mice NR and a high-fat diet, the mice gained 60% less weight. The mice that ate NR were stronger and had better endurance. In addition to that, the rodents that took NR did not develop diabetes. The results of this study were published in Cell Metabolism, a respected scientific journal.

The tests also revealed that NR can mimic the effects of a low-calorie diet in mice, even mice that were fed a high-fat diet. Such low calorie diets have been shown to extend the lifespans of a number of species, including human beings. NR could be used as a supplement to prevent obesity and a supplement to enhance athletic performance.

One of the scientists involved in the Swiss research, Dr. Anthony Sauve, has developed a simple and efficient method for the mass manufacture of NicotinamideRiboside. ChromaDex has bought the rights to this process, so it has taken the first step to creating a marketable NR supplement.

Give ChromaDex’s success with BluScience, it is in an excellent position to bring NR to market. If ChromaDex were able to use Dr. Sauve’s process to create an NR supplement, it could bring out a line of NR products similar to BluScience. ChromaDex has the connections and expertise to get those products into major retail outlets and find a mass market for them.

A Potentially Huge Market

Diets and weight loss products are already a $4 billion market in the United States alone. The number of potential customers is huge as well; around 34% of Americans are now obese, according to Reuters. There are around 500 million obese people worldwide, so there’s a vast market in almost every country.

ChromaDex will have to prove that it can create a supplement from NR and that the supplement can lead to weight loss in human beings. So far, NR has only been tested in mice, so there is no proof that it will work in people. Nor are its possible effects in human beings known. ChromaDex will have to do some sort of testing or clinical trial with NR in people.

If you’re looking for a small cap stock with growth potential, check out ChromaDex. It already has one successful product that is generating strong revenues, and it could have another product with high potential on its hands.

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