American retail giant Walmart has increased its commitment to the global nutrition company Nutritional Growth Solutions Ltd (ASX: NGS) by awarding NGS an additional 55 stores for the placement of its new Healthy Heights product, Happy Tummies. This brings the total number of stores stocking Happy Tummies to 850, an increase of 55 stores from the initial 795 stores.
NGS CEO, Stephen Turner, said, “We are thrilled to see Walmart’s strong commitment to NGS by expanding the distribution of our new product, Happy Tummies, to a total of 850 stores. This is a significant milestone for NGS and a testament to the increasing demand for our products, as we continue to see Healthy Heights® grow along with Walmart’s help.”
NGS creates clinically tested products to support growth and development in children. Happy Tummies is a probiotic and fibre supplement for kids. The supplement comprises limited ingredients, with all-natural sweeteners and no sugar. It is a simple combination of whey protein, Sunfiber (its patented fibre supplement), and probiotics, without any artificial flavours, colours or preservatives.
Happy Tummies was made available on Walmart shelves in early September. An initial order of 5,760 units, totalling $111.5k, was received, exceeding initial expectations and indicating strong market interest in the product.
Turner added, “Additionally, NGS recently successfully completed the onboarding process with both iHerb and CVS, representing strong steps towards a broader market reach. Products will be delivered to iHerb’s distribution centre and become available on iHerb’s marketplaces from Q4 CY2023. We are expecting sales with iHerb to be significant and will utilize tactics and strategies to push for a goal of $1 million over 12 months.”
iHerb, a global health and wellness eCommerce platform, serves over 9.5 million customers across 185+ countries. An initial order of approximately $15.8k, including Healthy Heights® items, will be shipped to iHerb’s fulfilment centres. Sales performance will be closely monitored, with replenishment orders to follow as needed.
Besides NGS’s partnership with iHerb, the Company also successfully completed the onboarding process with CVS Pharmacy and has been assigned a vendor number. NGS is currently working closely with the CVS merchant team to see stock on CVS shelves in Q1 2024 as part of a multi-brand display focusing on children’s nutrition. The store will feature two items from the Healthy Heights portfolio. The final store count, banners, and locations are yet to be determined.
Finally, the Company has onboarded Rob Valerio as its fractional CFO, replacing Yossi Nizhar, further strengthening its team on the ground in the US. As per NGS, these shifts in leadership will boost the ongoing organisational adjustments and contribute to a continued reduction in operational costs.
In H1 2023, the Company’s revenue was $2.3 million, up 10% on H1 2022, against a loss of $2.2 million. Its focus this year has been on expanding its sales channels in the US, specifically through retailers like Amazon, Kroger, Ralphs and Walmart. In the same period, its US sales grew by 23%, and the current nod of approval from Walmart by placing additional orders for Happy Tummies appears to further validate NGS’s strategy.
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.