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Vitamin Shoppe Industries, Inc. Business Information, Profile, and History
4700 Westside Avenue
North Bergen, New Jersey 07047
U.S.A.
Company Perspectives:
Since 1977, The Vitamin Shoppe has grown into one of America's leading discount retailers of quality vitamins and nutritional supplements. What began as a single store in New York City has evolved into over 160 stores in 18 states with new grand openings planned every month during 2003. And the addition of our popular monthly catalog plus comprehensive website and online learning center allows The Vitamin Shoppe to reach thousands of visitors daily who are interested in the best products for their healthy lifestyle.
History of Vitamin Shoppe Industries, Inc.
Vitamin Shoppe Industries, Inc. operates a chain of more than 160 stores that sell vitamins, nutritional supplements, herbal products, and related goods. The company also offers its wares through a monthly direct-mail catalog and via the Internet. Vitamin Shoppe stores, which are located in nearly 20 states and the District of Columbia, offer discount prices on more than 8,000 items from over 350 brand names, including the company's own private label, with a wider selection available through mail order. The stores also feature informational computer kiosks and a free lending library of books on vitamins and alternative medicines. In 2002 Vitamin Shoppe Industries was acquired by an equity capital unit of Bear Stearns Cos.
1970s Beginnings
The Vitamin Shoppe was founded in 1977 by Jeffrey Horowitz (then going by the name of Howard) as a retail shop on the corner of 57th Street and Lexington Avenue in Manhattan. The initial outlet's success led Horowitz to open several other locations in New York City, and in 1981 he began publishing a monthly catalog from which consumers could purchase vitamins by mail. By 1987 the chain had grown to nine New York locations, and over the next several years reached 15 stores in the area. Looking for new places to expand, Horowitz subsequently opened stores on Long Island and in Westchester County, New York, and then in Connecticut and New Jersey, where the company established its headquarters in the town of North Bergen.
Much of The Vitamin Shoppe's success was due to Horowitz's strategy of discounting prices by 20 percent or more on each item. The company had also developed its own line of private label goods, which were more profitable because they were not advertised. In addition to vitamins, the firm had by now added herbal products and nutritional bodybuilding supplements, which accounted for up to a quarter of sales. More than 400 different brand names were offered, with as many as 17,000 different products available through the mail. To help customers decide what to buy, the company's stores featured a free lending library of books on vitamins and other health topics. The Vitamin Shoppe also distributed 12 million copies of its direct mail catalog each year, and mail orders accounted for as much as a third of the company's estimated $65 million in annual revenues for 1997. By this time, the chain had grown to 18 stores.
Seeking to increase the rate of expansion, in 1997 Horowitz sought outside financing and sold 70 percent of the company to investment firms J.P. Morgan Partners and FdG Associates. With the new backing, the pace of store openings was ramped up, bringing the firm to a total of 39 locations in 1998.
In April of that year the company launched a Web site from which consumers could order vitamins and supplements by mail. To promote it, The Vitamin Shoppe purchased all of the online advertising space on Time, Inc. New Media's "Ask Dr. Weil" Web site for a year. The cost of blanketing the site, which featured the advice of Dr. Andrew Weil, a well-known alternative medicine exponent, was reportedly more than a million dollars. Viewers of the Dr. Weil "Vitamin Adviser" feature who got a personalized vitamin regime prepared for them would see an on-screen button that linked them directly to VitaminShoppe.com. Similar sponsorship deals were later cut with other Web sites. For 1998, The Vitamin Shoppe's annual sales leapt to $132 million.
1999 Spin Off
In the summer of 1999, as the Vitamin Shoppe chain neared a total of 60 stores, the company decided to spin off its VitaminShoppe.com operation as a separate entity. Former Hearst Corporation HomeArts Network founder Kathryn Creech was named the unit's president and CEO, and in October an initial public offering (IPO) was made on the NASDAQ exchange. Some 4.5 million shares were sold at $11 each, which brought the new company nearly $50 million in funding to advertise the Web site and make improvements to it. More than 80 percent of the shares were held by its parent company, which was officially known as Vitamin Shoppe Industries, Inc., or VSI. In December a second Web site called vitaminbuzz.com was also launched which offered information about vitamins and nutritional supplements. Its content was largely licensed from the firm Healthnotes Online.
During the fall and into early 2000, VitaminShoppe.com spent heavily on Internet advertising as it sought to bring in new customers. In January CEO Creech departed, leaving Horowitz in charge. Though he had predicted profitability for its first full year as a public company, VitaminShoppe.com's revenues lagged far behind expenditures, and by December 2000 it had incurred net losses of $61.3 million. With its stock now selling for less than fifty cents and close to delisting by the NASDAQ, VSI offered to buy back the outstanding shares for $1 each to reacquire the unit. Earlier, attempts had been made to sell the company alone or in combination with VSI, but there had been no serious offers. While the buy-back was being completed the Web unit's offices were moved from New York City to VSI headquarters in New Jersey, and its staff was cut by more than half, to 37.
In June of 2001 VSI named former Barnes & Noble retail division president Thomas Tolworthy to the posts of president and chief operating officer, with Horowitz retaining the jobs of CEO and chairman. In August the company opened its 95th and 96th stores near Atlanta, Georgia, reflecting its strategy of locating outlets in densely populated areas which had above-average income and education levels. The company was now firmly entrenched on the East Coast of the United States, where it had stores in eleven states plus the District of Columbia. The chain's reach extended all the way south to Florida, where 13 stores had been opened over the previous year. VSI's skills in site selection were exceptional, with no store having ever been closed. One key indicator the firm looked at when adding new locations was the high level of catalog sales found in a particular area. The large number of retirees in Florida, for example, generated significant mail order business, and the new stores that were opened there did well.
Related information about Vitamin
Vitamins are nutrients required for essential metabolic reactions in
the body catalysts and substrates in chemical reactions. In
essence, catalysts function like knitting needles, which are
capable of converting yarn into mittens, but do not undergo any
change themselves.
The body typically assembles a vitamin-dependent catalyst from a
variety of building blocks including amino acids, sugars,
phosphates, and other vitamins.
Vitamins are classified as either water soluble, meaning that they dissolve easily in
water, or fat soluble, and
are absorbed through the intestinal tract with the help of lipids.
As mentioned above, for the most part we rely on food sources to
meet our vitamin needs. However, there are a few vitamins that we
obtain by other means: for example, microorganisms in the intestine
- commonly known as "gut flora" - produce vitamin K and biotin,
while one form of vitamin D is synthesized in the skin with the help of natural
ultraviolet
sunlight.
Some vitamins can also be obtained from precursors which can be
obtained in the diet. Examples include vitamin A, which can be produced from beta carotene and niacin
from the amino acid
tryptophan.
The term vitamin does not encompass other essential nutrients
such as dietary
minerals, essential fatty acids, or essential amino
acids. The ancient Egyptians knew that feeding a patient liver would help cure night blindness, now
known to be caused by a vitamin A deficiency. In 1747, the Scottish surgeon James
Lind discovered that citrus foods helped prevent scurvy, a particularly deadly disease in which
collagen is not
properly formed, and is characterized by poor wound healing,
bleeding of the gums,
and severe pain. Lind's discovery, however, was not widely accepted
by individuals in the Royal Navy's Arctic expeditions in the 19th century, where it was widely believed that
scurvy could be prevented by practicing good hygiene, regular exercise, and
by maintaining the morale
of the crew while on board, rather than by a diet of fresh food, so
that Navy expeditions took all the amenities of 'sophisticated'
society, like silk sheets, spices, expensive food and drink, and
almost nothing of any use beyond the Arctic Circle. At the time
Robert Falcon
Scott made his two expeditions to the Antarctic in the early
20th century, the
prevailing medical theory was that scurvy was caused by "tainted"
canned food.
In 1881, Russian surgeon Nikolai Lunin
studied the effects of scurvey while at the University of Tartu (in
present day Estonia). He fed mice an artificial mixture of all the separate
constituents of milk known
at that time, namely the proteins, fats,
carbohydrates, and
salts. One difference was
that he had used table sugar (sucrose), while other researchers had used milk sugar
(lactose) which still
contained small amounts of vitamin B.
In 1905, William Fletcher
discovered that eating unpolished rice instead of the polished variety helped to prevent
the disease beriberi.
Casimir Funk was
the first to isolate the water-soluble complex of micronutrients,
whose bioactivity Fletcher had identified, and Funk proposed the
complex be named "Vitamine". The name soon became synonymous with
Hopkins' "accessory factors", and by the time it was shown that not
all vitamins were amines,
the word was already ubiquitous. In 1920, Jack Cecil Drummond proposed that the final "e" be
dropped, to deemphasize the "amine" reference, after the discovery
that vitamin C had no
amine component, and the name has been "vitamin" ever since.
Throughout the early 1900s,
the use of deprivation studies allowed scientists to isolate and
identify a number of vitamins. Initially, lipid from fish oil was used to cure
rickets in rats, and the fat-soluble nutrient
was called "antirachitic A". The irony here is that the first
"vitamin" bioactivity ever isolated, which cured rickets, was
initially called vitamine A, this bioactivity is now called
vitamin D, which is
itself subject to the semantic debate that it is not truly a
vitamin because it is a steroid derivative. What we now call "vitamin A" was
identified in fish oil because it was inactivated by ultraviolet light. Most of
what we now recognize as the water-soluble organic micronutrients
were initially referred to as just one entity, "vitamin B".
The reason the alphabet soup of vitamins seems to skip from E to
the rarely-mentioned K is that most of the "letters" were
reclassified, as with fatty acids, discarded as false leads, or
renamed because of their relationship to "vitamin B", which became
a "complex" of vitamins. four fat-soluble vitamins (A, D, E and K),
and nine water-soluble vitamins (eight B vitamins and vitamin
C).
Vitamin name
|
Chemical name
|
Solubility
|
Deficiency disease
|
Overdose
|
Estimated Average
Minimum Daily Requirement
(male, aged 19?30)" Dietary Reference
Intakes", Health Canada. (retrieved May 4, 2006)
|
Vitamin
A
|
Retinoids
(include: retinol,
retinal, retinoic acid,
3-dehydroretinol and its derivatives)
|
Fat
|
Night-blindness, Keratomalacia
|
7.5 mg
|
800-1100 ?g
|
Vitamin
B1
|
Thiamine
|
Water
|
Beriberi
|
n/a
|
1000 ?g
|
Vitamin
B2 (G)
|
Riboflavin
|
Water
|
Ariboflavinosis
|
n/a
|
1100 ?g
|
Vitamin
B3 (PP)
|
Niacin
|
Water
|
Pellagra
|
2500 mg
|
12000 ?g
|
Vitamin
B5
|
Pantothenic
acid
|
Water
|
Paresthesia
|
n/a
|
10000 ?g
|
Vitamin
B6
|
Pyridoxine
|
Water
|
n/a
|
400 mg
|
1100 ?g
|
Vitamin
B7 (H)
|
Biotin
|
Water
|
n/a
|
n/a
|
30 袖g
|
Vitamin
B9 (M)
|
Folic
acid
|
Water
|
Folic acid (vitamin B9) deficiency in pregnant women is
associated with birth defects, and may also be linked to some types
of cancer.
|
1 mg
|
320 ?g
|
Vitamin
B12
|
Cyanocobalamin
|
Water
|
Megaloblastic anaemia
|
n/a
|
2 袖g
|
Vitamin
CVitamin C is sometimes considered a macronutrient rather than a vitamin.
|
Ascorbic
acid
|
Water
|
Scurvy
|
n/a
|
75000 ?g
|
Vitamin D2?D4
|
lumisterol,
Ergocalciferol, Cholecalciferol, Dihydrotachysterol, 7-Dehydrocholesterol
|
Fat
|
Rickets
|
1.25 mg
|
2 袖g (for all Vitamin D)
|
Vitamin
E
|
Tocopherol,
Tocotrienol
|
Fat
|
n/a
|
33000 mg
|
12000 ?g
|
Vitamin
K
|
Naphthoquinone (not to be confused with
Ketamine)
|
Fat
|
Bleeding
diathesis
|
n/a
|
75 袖g
|
The Vitamins Controversy
Use of vitamin supplements is controversial. Seventeen percent
of American children are overweight (triple the percentage in
1980), and increasing numbers of children are developing high blood
pressure, high cholesterol, and Type 2 diabetes.IDonline www.ldonline.org/ldbasics/whatisld and these numbers are
also trending upward." target=_blank rel=nofollow
class=elnk>psychservices.psychiatryonline.org/cgi/content/full/56/1/56#SEC3
It is a reasonable hypothesis that providing vitamin supplements to
pregnant women and children can help prevent the rising rates of
childhood diseases and disorders." target=_blank rel=nofollow
class=elnk>www.healthier-kids.com
A large enough number of people believe that supplements are
required for optimal health to support a small group of physicians
to provide them with guidance. A number of physicians in this group
are obstetricians or
pediatricians, and
have been prescribing vitamin supplements to prevent and/or treat
childhood physical and nervous disorders. ISBN 1-897025-10-6
Treating childhood obesity, neurological disorders, or any other child
health problems with vitamins is outside of mainstream practice
despite the positive clinical reports continuously published by
orthomolecular physicians.The Journal of Orthomolecular Medicine
provides a peer-reviewed format for orthomolecular physicians to
publish results that are rejected by more mainstream medical
journals
The credibility of orthomolecular physicians is buttressed by their
use of vitamin C
supplements to combat colds. 804 (1996) Reports from physicians
have provided ample clinical confirmation that vitamin C reduces
the duration and severity of colds (but not the frequency).Robert
Cathcart Interviewing 10 Americans with post graduate educations is
usually sufficient to find one who takes 5g per day or more of
vitamin C to ward off an incipient cold.
The credibility of orthomolecular physicians is harmed by their
tendency to underplay the side effects of vitamins. For these
reasons, vitamin levels that are tolerated in food often cause side
effects when consumed from supplements." target=_blank rel=nofollow
class=elnk>lpi.oregonstate.edu/infocenter/vitamins.html Because
the benefits of vitamins are imperceptible, and the side effects
feel bad immediately, this understandably leads many people who
have trouble with side effects to commit to never taking extra
vitamins again and to recommend that others follow their example.
If there is serious deficiency, a child develops a deficiency
disease and the genetic plan is completed so poorly that the
results are obvious - malformed limbs in the case of rickets, or the mental
retardation of iodine
deficiency. When a cold or other virus invades, a child's body often reacts
with an inflammatory response which can damage the child's body in
addition to eliminating the virus.www.sciencemag.org/cgi/content/abstract/sci;305/5691/1736
Once growth and development are completed, adults remain dependent
upon vitamins to maintain good health. Vitamins are also involved
in building cells, tissues, and organs - vitamin C, for example,
helps produce healthy skin.
Vitamins are classified as fat-soluble or water-soluble based on
how they are absorbed by the body. Vitamins A, D, E, and K are fat
soluble, while the water-soluble vitamins include vitamin C and the
B-complex vitamins (thiamine (B1), riboflavin (B2), niacin (B3), pantothenic acid (B5), vitamin B6, vitamin B12, biotin and folate.
Research has shown that foods rich in antioxidants are particularly beneficial for
health.
Vitamin deficiencies
An organism can survive for some time without vitamins, although
prolonged vitamin deficit results in a disease state, often painful and potentially
deadly. an adult may be deficient in vitamins A or B12
for a year or more before developing a deficiency condition, while
vitamin B1 stores may only last a couple of weeks.
Deficiencies of vitamins are either primary or secondary. Vitamin
deficiencies may also be due to an underlying problem, such as an
intestinal disorder, that prevents or limits the absorption or use
of the vitamin.
Well-known vitamin deficiencies are thiamine Beriberi niacin Pellagra, vitamin C Scurvy and Vitamin D Rickets. In North America today,
however, such deficiencies are rare due to an adequate food supply
for most people, and food fortification programs that add vitamins
and minerals to common foods.
Scientists now have shifted their focus to discovering ways in
which vitamins can promote health, prevent disease, boost the
body's protection against infection and even slow down the aging
process. Water-soluble vitamins are not stored in the body, with
the exception of vitamin B12, which is stored in the
liver.
The likelihood of consuming too much of any vitamin from food is
remote, but overdosing from vitamin supplementation often occurs.
and against Stephen Lawson What About
Vitamin C and Kidney Stones?
Vitamin side effects
All vitamins have well documented side effects.lpi.oregonstate.edu/infocenter/ Common
awareness of vitamin side effects is small because side effects are
largely confined to the minority of people taking vitamin
supplements. This dosage is known as the tolerable upper intake
level (UL).
Vitamin advocates tend to confuse vitamin side effects and vitamin
safety. www.healthier-kids.com Vitamin
tolerance has also been claimed to increase during periods of
intensive physical activity, and to slowly increase with
age.www.healthier-kids.com Confirmation of
these observations from clinicians is needed. These names are
written after the vitamins in brackets.
Vitamin B2
is also referred to as vitamin G.
Vitamin
B7, or biotin is also referred to as "vitamin H."
Vitamin
B9, or folic acid and other folates such as "vitamin M" (monkey
antianemia factor, pteryl-tri-glutamic acid) are referred to as
folicin.
Vitamin B3
is also referred to as "vitamin PP", a name derived from the
obsolete term "pellagra-preventing factor". These include:
- carnitine
(meat, fish, dairy)
- DMAE (fish, eggs, soy, brains)
- lipoic acid
(liver)
- folinic acid
(liver)
- bioptrin (fish,
liver)
- PPQ (below)
- coenzyme Q
(meat, yogurt,
soy)
Still others are on the borderline, either candidates for
classification as vitamins, or recently classified but widely
accepted.
Pseudo-vitamins
-
Vitamin F was the designation originally given to
essential
fatty acids that the body cannot manufacture. Fatty acids are
a major component of fats
which, like water, are needed by the body in large quantities and
thus do not fit the definition of vitamins which are needed only
in relatively small amounts.
- Herbalists and naturopaths have named various therapedic chemicals
"vitamins", even though they are not, including vitamin T,
S-Methylmethionine (vitamin U) and vitamin
X.
- Some authorities say that ubiquinone, also called coenzyme Q10, is a
vitamin. Ubiquinone is manufactured in small amounts by the body,
like vitamin D.
- Pangamic
acid, vitamin B15; the related substance dimethylglycine is
quite wrongly referred to as vitamin B15 but
also labeled B16.
- The toxins laetrile and amygdaline are sometimes referred to as
vitamin B17. Both pangamic acid and laetrile
were first proposed as vitamins by Ernst T. neither are
recognized by the medical community as vitamins and their claimed
anticancer activities have been disproven by many
experiments.
- Flavonoids are
sometimes called vitamin P.
- Animal, bird, and bacterial growth factors have been
designated vitamins such as para-aminobenzoic
acid (PABA) which is the chicken feathering factor vitamin
B10, the folacin (see folic acid) pteryl-heptaglutamic acid is the
chicken growth factor vitamin B11 or vitamin
Bc-conjugate and orotic acid as vitamin B13 for
rats.
- A few substances were once thought to be B-complex vitamins
and are referred to as B-vitamins in older literature, including
B4 (adenine) and B8 (adenylic acid), but are
no longer recognized as such.
- An antitumor pterin phosphate named Vitamin B-14 by Norris
but latter abandoned by him as further evidence did not comfirm
this. Most mammals
need, with few exceptions, the same vitamins as humans. One
notable exception is Vitamin C, which can be synthesized by all
other mammals except other higher primates and guinea pigs. For example, some bacteria need adenine. Pyrroloquinoline quinone (PQQ) found in yogurt was
reported as a vitamin for mice in 2003.
See also
-
Nutrients
- Dietary minerals
- Essential amino acids
- Nootropics
(cognitive enhancers)
- Dietary
supplement
- Illnesses related to poor
nutrition
- Pharmacology
- Vitamin
poisoning (overdose)
- Health
freedom
References
-
Stedman's Medical Dictionary.
Chronology
- Key Dates:
-
1977: Jeffrey Horowitz founds first Vitamin Shoppe store in New York City.
-
1981: Company begins publishing catalog for mail order sales.
-
1987: The Vitamin Shoppe has nine stores in New York City.
-
1997: Horowitz sells 70 percent of firm to J.P. Morgan Partners, FdG Associates.
-
1998: Web site launched; chain grows to 38 stores.
-
1999: VitaminShoppe.com spun off on NASDAQ exchange.
-
2001: Vitamin Shoppe Industries absorbs failing Internet unit.
-
2002: 100th store opened; Bear Stearns Capital Partners II L.P. buys firm.Another part of the firm's strategy was saturation of the metropolitan markets it entered, which it had done in New York and had repeated in such cities as Washington, D.C., where there were now 15 locations. VSI stores were typically opened in freestanding locations, rather than the malls favored by industry leader GNC, whose stores were about one-third the size of a typical Vitamin Shoppe. The firm's stores now averaged between 3,000 and 4,000 square feet, more than triple the space of its original locations in Manhattan. VSI's goal was to be "the Home Depot of the vitamin industry," according to a company spokesperson, and each store continued to offer an extensive selection of goods at discount prices. Products were displayed in wide aisles, and employees were deployed on the floor to offer customers suggestions or refer them to the in-house lending library for additional information. The company's stores cost an estimated $405,000 to open and became profitable within a year.
- In January 2002 the 100th Vitamin Shoppe was opened, in Princeton, New Jersey, and the same year saw VSI moving westward, with new stores opened in major Midwestern markets like Chicago. The company had by now outgrown its administrative and distribution facilities in North Bergen and Secaucus, New Jersey, which occupied a total of 100,000 square feet of space in four buildings. In May a lease was signed on a vacant 230,000 square foot building in North Bergen where these operations would be combined in early 2003. The company was also considering adding a second regional distribution center to serve the growing number of stores it was opening in the Midwest and West.
- In August 2002 VSI announced it was expanding its use of the Healthnotes informational database, which would be made available both online and in stores via new touch-screen kiosks. November saw the debut of The Vitamin Shoppe Radio Health Series, hosted by natural health and alternative medicine guru Gary Null. The weekly show, which would cover health and nutrition topics, was initially aired on KLSX in Los Angeles, where the firm was preparing to open several stores. By now VSI's revenues had reached $263 million, as estimated by Moody's Investor Service. One-third of this figure continued to be generated by mail-order and Internet sales.
- In the late fall of 2002 a deal was reached to sell VSI to Bear Stearns Capital Partners II, L.P., a unit of Bear Stearns Cos., for approximately $300 million. FdG Associates, CEO Horowitz, and President Tolworthy would retain small stakes in the firm. FdG had triggered the sale, seeking to get its investment back in the near term rather than waiting for the company to go public, which was under consideration as a way to fund VSI's ongoing national expansion. The company was now growing more rapidly than ever, with a total of 160 stores open by fall, including 17 in California and eight in Texas. A total of 500 stores were planned by 2007.
- VSI had grown over the past 25 years from a single location in New York to a national presence with more than 160 "category killer" stores and a thriving mail-order business. As the American population aged and increasing media attention was given to the benefits of vitamins and nutritional supplements, the firm's growth looked assured for some time to come.
Additional topics
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