US supplement manufacturer Natrol is expanding its distribution with a new unit set up to run direct-to-consumer network marketing.
Elliott Balbert, founder, chairman and CEO, said the new business unit was a key element in Natrol's overall growth strategy. He said: " We will be manufacturing entirely new and different items that will be sold exclusively through authorised distributors who in turn will sell direct to consumers as well as sponsor and train others to do the same. This is a new beginning and so we are going to call the start-up Annasa, meaning `breath' or `new beginnings' in Greek."
According to Balbert Annasa has been in development for nearly a year and that a new management team has been created for the project.
Balbert said that the network marketing sector has a long respected history of success in the US, with such well known brands as Avon, Amway, Shaklee and Mary Kay Cosmetics. "During the past few years when the nutritional sector as a whole experienced severe market pressures, the network marketing segment (US only) delivered a 14.6 per cent increase between 2001 over 2000."
Annasa will launch with four nutritional products for cellular renewal and physical well-being. The company will begin shipping to select distributors in the fourth quarter with a full national roll out in January. The company did not project when the new entity would be profitable.