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GNC | 3 The story of GNC is not only the story of a highly successful and innovative retailer, it is the story of one of the fastest-growing specialty retailing segments in the world – health and wellness products, including vitamins, minerals and herbal supplements, sports nutrition and diet products. Founded nearly 80 years ago, GNC’s dedication to healthy living has expanded its reach in health and wellness retailing around theworld. Froma humble beginning in 1935, as a single store in downtown Pittsburgh, to today’s more than 7,900 retail locations throughout the U.S. and in 58 international markets, GNC is truly the leader when it comes to helping consumers Live Well. Unlike many other retailing segments, specialty nutritional supplements retailing has grown substantially, year after year, over the last ten years. There are several key factors behind that growth: first, an aging population, particularly with health-conscious Baby Boomers; second, consumer concerns about rising healthcare costs; third, broader consumer awareness of health and wellness issues in general as well as a desire among consumers to live longer, healthier lives; and fourth, an increasing focus on fitness among consumers of all ages– particularly those
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GNC | 7 interested in sports nutrition products, to increase energy, endurance, strength and speed of recovery from workouts. INDUSTRY LEADER Today, GNC’s U.S. store base is more than 12 times larger than that of its nearest specialty retailer competitor, making it the largest specialty retailer of health and wellness products in the world. The proof of GNC’s success can easily be seen in its financial results. For the third quarter of 2012, the most recent reported, retail segment revenue grew 15.5%. Franchise segment revenue for the same period grew 19.7%. In fact, third quarter 2012 brought the company its 29th consecutive quarter of same store sales growth. What sets GNC apart is more than just its longevity, number of stores or even superior financial results – it’s the power of a strong brand, notes Darryl Green, Senior Vice President of International and Domestic Franchising. “GNC has a brand recognition rate of more than 80 percent, which is exceptional,” he says. “That’s right up there Singapore Store
8 | GNC with some of the largest and most successful companies in the U.S., and it demonstrates the strength of our relationship with consumers.” GNC has developed a reputation for producing quality products, as well as providing superior customer service. From a product perspective, the introduction of innovative, high-quality, clinically proven and superior-performing products is a key driver for the business. GNC maintains excellent quality in all of its products by adhering to strict FDA and international standards. Every product undergoes numerous quality tests, and every lot of rawmaterials that enters a GNC manufacturing facility is tested. This process ensures that a GNCBrand product is synonymous with a trusted product. From a customer service perspective, GNC is equally driven toward perfection. At every store, TWN Tai Chung
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10 | GNC GNC franchisees and employees are dedicated to creating a positive shopping experience, assisting their customers in finding the right products to help them meet their goals and maximize their results. “When someone comes in looking for a diet product, for example, we don’t just offer them a weight loss product. We ask them about their lifestyle and their goals to help them build a program specific to their needs,” Green says. In addition to product assortment, the GNC store experience includes access to knowledgeable, trained associates, with 1/3 of shelf space dedicated to education and product information for customers, as well as targeted and effective promotions and instore programs that drive add-on sales.
GNC | 11 + RESULTS MATTER WHY SELL CELLUCOR? Results matter isn’t just our tag line or catch phrase, it’s the Cellucor way of life. Cellucor’s unwavering commitment to quality, consistency, and innovation goes into every product, every scoop, and every relationship we forge. Cellucor is the proud preferred partner of GNC, offering unmatched support programs to make sure your customers, and your store, see results. Highest Aggregate Profit Margins National Marketing Support Social Media Support In-Store Training with our Nationwide Franchise-Dedicated Sales Team Store Specific Geo-targeted Email Campaigns Exclusive Sales Contests SPORTS NUTRITION VENDOR OF THE YEAR Awardee BEST PRODUCT INNOVATION Awardee *These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease. 2011 & 2012
12 | GNC “The whole idea is to create a shopping experience that is very different than that of our competitors. We don’t just sell product, we tailor the shopping experience to the customer. If we’ve done our job right, each customer should leave feeling like they just hit the first step to achieving their goals,” he adds. A critical component of the unique shopping experience is product, however Darryl Green, Senior Vice President of International and Domestic Franchising
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14 | GNC – particularly first-to-market products. Because GNC understands the health and wellness industry and the consumer trends that drive it better than any other company in the segment, and because GNC has its own product development and manufacturing capabilities, it is always ahead of the product development curve. This is certainly true with GNC Brands like Pro Performance®, the largest sports nutrition brand in the U.S. but it’s equally true with major third party product launches as well because of GNC’s strong vendor relationships and ability to leverage its national footprint.
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16 | GNC TM BCAA mTOR ACTIVATION U L T R A - C O N C E N T R A T E D A N A B O L I C A M I N O A C I D F O R M U L A TM BCAA mTOR ACTIVATION U L T R A - C O N C E N T R A T E D A N A B O L I C A M I N O A C I D F O R M U L A PePForm® is a Trademark oF Glanbia PlC. CyTosPorT™ ProduCTs ComPlemenT a smarT eaTinG and hydraTion Plan ThaT, when Combined wiTh a balanCed exerCise or resisTanCe TraininG ProGram, may ConTribuTe To weiGhT manaGemenT and reCovery From exerCise. ©2013 CyTosPorT, inC. beniCia, Ca 94510 usa cytosportmonster.com MANUFACTURED FREE OF BANNED SUBSTANCES IN A NSF GMP FOR SPORT™ REGISTERED FACILITY. GMP for Sport™ www.nsf.org These sTaTemenTs have noT been evaluaTed by The food and drug adminisTraTion. This producT is noT inTended To TreaT, cure, prevenT or diagnose any disease. cytosportmonster.com Ultra-concentrated amino acid formUla 8:1:1BCAA rAtio per serving 9g Amino Acid mAtrix per serving SugAr Free no ArtiFiciAl dyeS StimulAnt Free–Use anytime 3.5g added PePForm® leucine PePtideS Strong product development and branding go hand in hand. In sports nutrition, as in other product popular categories like Vitapaks and Diet, proprietary flagship brands support the development of a wide range of sub-brands that build and sustain GNC’s category growth. In sports nutrition, for example, the strength of the Pro Performance brand has driven GNC’s share of the fitness/ sports category to over 25%. FRANCHISING’S ROLE What draws perspective franchisees to GNC is not only its strong brand, but also a
GNC | 17 low-starting capital investment that runs between $165,000 and $200,000 for domestic locations. The investment includes a brand new, fully-stocked store, as well as complete training in all facets of the business. “One of the reasons we’re so successful is because it’s an affordable investment to get into a GNC franchise store and own your own business,” Green says. According to Entrepreneur Magazine, GNC is ranked the 33rd best franchise system in the world. When GNC went public as a traded company (GNC Holdings, Inc. (NYSE: “GNC”) in 2011, it was named the Best IPO of the Year by Forbes Magazine and earned CNBC’s IPO Star of 2011. When looking for a franchisee, GNC searches for people who have both an inter-
18 | GNC A PROUD SUPPLIER TO FOR OVER 20 YEARS! ® prolab.com natrol.com est in wellness and nutrition and a genuine desire to help people Live Well. “This is a customer service business, and outstanding customer service drives the franchisee’s success,” Green says. GNC supports new franchisees with an initial multi-phase training program. This program includes spending time at a GNC corporate store to learn all facets of the business, as well as attending a week of classroom training at GNC headquarters in Pittsburgh to learn about business operations. It also includes having a GNC representative spend time with them on-site at their location –
GNC | 19 "All Natural" LEANDA CAVE, Ironman World Champion 2012 ©2012All rights reserved. Accelerade, EnduroxR4, Accel Gel andEndurox Excel are registered trademarks ofMott’s LLP. Accel Recover and2ndSurgeare trademarks of PacificHealthLaboratories, Inc. All productsaremanufactured for PacificHealthLaboratories, Inc.,Matawan, NJ 07747 pacifichealthlabs.com “ For me, nutrition is the fourth leg of the triathlon. You can’t fool your body with improper or inadequate nutrition. That's why I have always trained and raced with PacificHealth nutrition and hydration products. It’s a formula for winning. I accept no substitutions….nor should you. Get fueling tips “ helping them to launch their new store. Support and training doesn’t stop once the store opens. There are additional training opportunities, including support for new product launches and education on new products and ingredients. “Our goal is to coach our franchisees on a consistent basis, so that they can maximize their return on investment,” Green says. LOOKING TO THE FUTURE GNC’s store base currently includes more than 930 franchises across the U.S. The company’s franchise segment is growing rapidly,
20 | GNC info@dynamichealth.com | (800) 396-2114 www.dynamichealth.com 8 Organic liquid superfruit juices & concentrates 8 Weight loss aides 8 Detox cleansers & supplements PROUD SUPPLIERS OF GNC WHAT ARE THE BENEFITS OF TAKING TRADITIONAL RED YEAST RICE? • Helps Maintain Healthy LDL Cholesterol Levels* • Clinical studies utilizing Traditional Red Yeast Rice have shown positive results in cholesterol management. Dr. Becker, a cardiologist at the University of Pennsylania, conducted clinical studies and published results in the Mayo Clinic Proceedings and the Annals of Internal Medicine showing the benefits of Traditional Red Yeast Rice. • Individuals take Red Yeast Rice because it produces fewer side effects, such as muscle and joint pain, caused by many prescribed cholesterol products. • Manufactured 100% in the United States and does not utilize raw materials from any other country. • Red Yeast Rice ingredients are certified USDA Organic. • Non-GMO • Each lot of Traditional Red Yeast Rice is tested to insure consumer safety and consistency. Citrinin is non-detectable at 1ppm (parts per million). Coliform and heavy metal ee. www.sylvanbio.com 1.866.352.7520 1.724.543.3900
GNC | 21 #1 Sports Nutrition Snack Lauren Sesselmann Canadian Women’s National Soccer Team OSTRIM Athlete i ’ i l I l For questions regarding any of these products, please contact Dan Zangaro. PROTOS FOODS, INC. 800.274.3263 www.protos-inc.com having opened more than 250 franchise locations in 2012. Green says that trending growth will continue into 2013 and beyond. “The growth machine of GNC store development is International Franchising,” he notes. “We are setting a record pace with sales and store openings, which proves that GNC is a great place to be a franchisee.” GNC plans to continue down the same path of consistent growth fuelled by innovative products and a strong brand. Green adds, “This is a company that is incredibly committed to the best products and the highest levels of customer satisfaction. Franchising is an important component in our ability to deliver on that commitment.”
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