Twinlab Ironman Triathlon, TruHerbs time-release brands launching in mass market.

TWINLAB IRONMAN TRIATHLON SUPPLEMENTS ROLLING OUT TO MASS MARKET in late September, initially as a line of six sports and fitness supplements, the Hauppauge, N.Y.-based nutritional supplement marketer announced Aug. 3. The line includes a daily multivitamin, an "energy booster" formula, a protein shake, creatine powder, joint powder and "fast burn" powder. Prices range from $7.99 to $12.99. Twinlab will support the brand with TV, radio and print ads and on the Internet. The campaign, breaking now, features professional football player Lee Woodall of the San Francisco 49ers.

The company described the agreement as "exclusive in the sports nutrition and dietary supplement industry," allowing Twinlab Ironman Triathlon brand products to be sold throughout North America, the European Union, China, Australia and other countries. There are other official Ironman items, such as an Ironman Huffy mountain bike and an Ironman-licensed Timex watch. The initial term of the Twinlab licensing agreement with Iron Properties, a division of World Triathlon, extends through 2002. The Ironman Triathlon is now in its twentieth year.

The Ironman launch is part of a larger effort to increase Twinlab's presence in mass market channels, the company noted. Twinlab said it hopes to eventually be in 47,000 mass doors and to generate $350 mil. in mass market revenues annually.

Twinlab sells products to mass market, chain drug and health food stores and exercise centers, as well as through catalog marketing and network marketing, with about 80% of corporate sales generated in health food stores. The mass market push will include some increased distribution of existing Twinlab products but will focus mainly on the creation of "unique lines" designed "specifically" for the channel so as to avoid cannibalization.

Toward the goal of added mass market presence, a 45-SKU TruHerbs line, including seven time-release herbs, will be introduced in mass doors in late September. The seven 12-hour microencapsulated products are the company's first time-release offerings in the mass market, although Twinlab's Natures Herbs division markets time- release herbs in health food stores.

Twinlab consolidated revenues jumped 76.3% to $78.6 mil. in the second quarter. Sales at health food stores rose 15% to $43.7 mil. Sales in the mass market were $12.4 mil., up more than 400%, and international sales more than doubled to $5.9 mil. in the quarter.

Network marketing sales (Changes International) were $13.5 mil. in its second full quarter under the company's ownership. The Bronson Nutritional business, acquired in late April, "positions Twinlab in the nutritional catalog business with an established base of 118,000 active customers," the company noted. Twinlab began mailing its first custom-designed catalog at the end of July and already has expanded the Bronson database to include 80,000 potential new customers, Twinlab noted.

Through the first half, consolidated sales increased 58.8% to $152 mil. The company attributed the sales gains to Twinlab's "successful strategy of targeting the growing nutritional supplements market through multiple channels of distribution."

Twinlab net income before extraordinary charges climbed 75.8% to $8.3 mil. in the second quarter and was up 56.8% to $16.3 mil. through the half. The $2.9 mil. extraordinary charge relates to the premium paid in connection with Twinlab's redemption of $35 mil. aggregate principle amount of 10.25% senior subordinated notes in May and the write-off of deferred finance costs relating to the issuance of the redeemed notes, the company explained.