{"id":3020,"date":"2015-12-08T15:10:40","date_gmt":"2015-12-08T20:10:40","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/growing-organically-in-the-vitamins-industry\/"},"modified":"2015-12-08T16:50:41","modified_gmt":"2015-12-08T21:50:41","slug":"growing-organically-in-the-vitamins-industry","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/growing-organically-in-the-vitamins-industry\/","title":{"rendered":"Growing \u201cOrganically\u201d in the Vitamins Industry"},"content":{"rendered":"

\u201cAs the leader in Certified Organic and Non-GMO nutrition, Garden of Life’s mission to empower extraordinary health goes beyond offering some of the most effective nutritional supplements in the world. Garden of Life is also committed to transparency with one of the most traceable supply chains in the world, and is making significant investments in independent third-party testing and verification of its raw materials and innovative formulas.\u201d \u2013 Garden of Life<\/em><\/p>\n

Introduction:
\n<\/strong>The natural and organic movement has been the most significant game changer in the food and beverage industry over the past decade. In vitamins, minerals and supplements (\u201cVMS\u201d), the focus on ingredient traceability and \u201cwhole food\u201d products has shifted consumers away from some of the larger incumbent players (Herbalife, GNC, Amway, and Nature\u2019s Bounty) to differentiated brands that emphasize product certifications such as Non-GMO Project Verified and Certified USDA Organic.<\/p>\n

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Business Model:
\n<\/strong>Garden of Life, a leading brand sold in the health food channel in the U.S., has built a business model that effectively supports consumers\u2019 desire to supplement their diets with vitamins, meal replacements, and protein powders<\/strong> which are potent, high quality, and organic. The success of the model speaks for itself: Garden of Life is now the #1 VMS brand at Whole Foods, Sprouts, and Amazon.com with total company revenue of nearly $250 million growing at a 30% CAGR over the past 5 years<\/strong>.<\/p>\n

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Operating Model:<\/strong>
\nPlaying in an overall nutritional supplements category that grows 4-6% per annum, Garden of Life\u2019s consolidation of its position has been a product of its superior operating model and capabilities compared to its competition. Below are strategic imperatives that drove me to select Garden of Life for this post as I have been impressed by how these operating objectives have propelled the Company to grow ~5x faster than the market on a sustainable basis<\/strong>.<\/p>\n