Herbalife Niteworks For Vascular Support Based On Nitric Oxide Research

Herbalife will unveil its Niteworks dietary supplement powder mix - which contains a proprietary blend of L-arginine and L-citrulline for supporting vascular and circulatory health - at a June 17 event in New York.

"We are really excited about [Niteworks]," which "is built on Nobel Prize winning science" and will be the only L-arginine product with a formulation intended to work at night, Herbalife CEO Michael Johnson said.

The product recently was presented to the direct-seller's North American distributors at their annual convention in Las Vegas.

Niteworks labeling reads: "Drink at night or before bedtime...This refreshing lemon powder mix...helps you create more life supporting nitric oxide during the night, when nitric oxide levels are lowest. Research indicates that L-arginine and L-citrulline help produce nitric oxide, which can protect your cardiovascular health and help your circulatory system stay flexible and youthful."

Herbalife adapted research on nitric oxide by 1998 Nobel Prize-winner Louis Ignarro, PhD, UCLA School of Medicine, to formulate Niteworks.

Ignarro's signature of approval appears on the lemon-flavored product's labeling along with a light blue pictogram showing the outline of a runner with the moon and stars in the background. Ignarro is a member of the company's Scientific Advisory Board, according to Herbalife.

Besides L-arginine and L-citrulline, Niteworks also contains alpha lipoic acid, lemon balm extract and vitamins C, D and E. The product will be packaged in 30-serving containers and will cost $89.95.

Other claims made on Niteworks label include: "To enhance the activities of the antioxidant system"; "To protect the vascular system"; and "Some scientific evidence suggests that consumption of antioxidant vitamins may reduce the risk of certain forms of cancer. However, FDA has determined that this evidence is limited and not conclusive."

Johnson said the company is looking at the Niteworks athletic endurance brand as a launch pad for future line extensions. "You can build a business off this thing," he maintained.

However, the exec added, "we are still going to be a weight-loss company. That is our foot in the door and then we sell you a whole line of healthy inward nutrition products."

Pharmavite co-founder and former CEO Henry Burdick has assumed the role of vice chairman at Herbalife to focus on expanding new product development efforts in the areas of weight loss and nutrition, the company announced June 3. Burdick is also a major shareholder in the company and a board member.

"Henry brings to us vast knowledge, experience and success from his extensive work in the field of nutrition that will accelerate advancement of our company mission," Johnson said.

Johnson, who became CEO of the Los Angeles, Calif.-based firm in April, stated "Herbalife has had issues with its past. [However,] they have never really been product issues, they have been personality issues" (¹ 'The Tan Sheet' April 7, 2003, In Brief).

"So what we have got to do is to lift this company into an incredible awareness level and that is a big challenge for us," Johnson continued.

On his arrival at Herbalife, Johnson hired communications specialists Rogers & Cowan (Los Angeles) to aid Herbalife's media and public relations divisions. Additionally, Johnson announced the firm will test a direct-response ad campaign July 9.

Los Angeles, Calif.-based ad agency InClover Marketing is working with Herbalife to develop 60- and 120-second TV ads which will present free product samples and offer an individual product with a $49 value for $39, according to Johnson. Ads will air in English and Spanish.

The ads will mark "the first time we have been on TV for quite a while [and] our distributors are really excited" about the campaign, Johnson said, adding "if it works, and I see no reason why it won't, then we will continue to get more aggressive with a...TV campaign as time goes on."

Johnson described Herbalife as "a $1.8 bil. at retail sales company right now." The firm's sales totaled $1.66 bil. in FY 2001, the last full fiscal year before it went private (² (Also see "Herbalife Product Rationalization, PR Campaign Planned For 2002" - Pink Sheet, 25 Feb, 2002.), p. 5).