Natural Alternatives International
This article was originally published in The Tan Sheet
Executive Summary
New products from a joint venture with FitnessAge Inc. are expected to roll out in the second half of 2000, NAI says. The San Marcos, Calif.-based contract manufacturer must make an initial capital contribution of $100,000 toward Custom Nutrition, a new entity that will develop and distribute customized supplements and related products through health and fitness clubs, certified personal trainers and over the Internet. Income, losses and any additional capital contribution requirements for Custom Nutrition will be allocated 60% to FitnessAge, 40% to NAI. The FitnessAge deal is one of several diversification initiatives NAI has undertaken to partially counteract the loss of NuSkin Enterprises as a major customer in the fiscal 2000 second quarter ended Dec. 31. The loss of NuSkin, which comprised about 37% of net sales for the same period the year before, primarily accounted for a 30.3% decrease in sales to $12.1 mil. for the recent quarter