Newly listed Element Nutritional Sciences products target “muscle health” nutrition with plant based products
Did you know that 76% of adults in the United States take a dietary supplement. Nutritional supplement companies have become big businesses in today’s busy and stressful world. Just take a look at the success of companies such as Nature Made. GrandViewReserach forecasts that the North American dietary supplements market size is expected to reach US$68.22 billion by 2025, from around US$50 billion today.
Yesterday a nutritional company listed on the Canadian Securities Exchange (CSE) under the ticker symbol “ELMT”. Their flagship products work to support muscle growth (prevent muscle loss) and boost energy especially in athletes or those over 50. The Company is Element Nutritional Sciences Inc. (CSE: ELMT) (“Element”). Element’s background includes the acquisition of Element Nutrition Inc. and Hammock Pharmaceuticals Inc.
Element Nutritional Sciences forecast US$1.3 billion market opportunity in muscle health Sarcopenia by 2025
Source: Company presentation
Element is a nutraceutical company specializing in the development of nutritional, dietary supplements that increase and maintain the health of men and women, in particular “muscle health”. Their main product brand names are Rejuvenate™ and JAKTRX™.
Rejuvenate™ is used to support muscle growth and boost energy. Apart from the regular market, there is a distinct market for those suffering from muscle loss due to aging (known as Sarcopenia). The market size for Sarcopenia is estimated to grow to up to US$3 billion by 2025 given the aging demographic in developed countries and a lack of remedies for muscle loss.
Regarding Rejuvenate™, Element state: “Product formulation backed by 25 peer reviewed clinical studies, and $20 million in investment over the last 17 years.”
Element’s Rejuvenate™ brand is currently sold direct to consumer e-commerce channels and in over 7,500 retail locations, with current vendor status agreements providing access to over 16,000 points of distribution across the United States and Canada. Longer term plans are to innovate and develop products suitable to oncology and orthopedic patients.
JAKTRX™ are high performance supplements for crossfitters, weekend warriors and athletes of all types. For example, JAKTRX PRO RECOVERY helps the muscles recover and build after workouts.
Element Nutritional Sciences products Rejuvenate™ and JAKTRX™
Element’s recent business highlights
- “Signed an agreement with Advantage Solutions, one of North America’s top food and drug brokerage firms, providing access to mass retailers in the United States encompassing 42,000 potential points of distribution;
- Launched Rejuvenate™ in Loblaws across Canada in October 2020;
- Completed the first commercial production run of Rejuvenate™ ready to drink organic plant protein beverage in November 2020 and launched on Amazon.com and Rejuvenatemuscle.com;
- Launched Rejuvenate™ ready to drink organic plant protein beverage in four U.S. states through CVS Health, the largest pharmacy chain in the United States;
- Completed an agreement with Food Lion in February 2021 for distribution of Rejuvenate™ ready to drink organic plant protein beverage in 1,000 stores in the South Eastern U.S. and made its first shipment under this agreement in March 2021, the first shipment sold out in three weeks and the Company expedited a full re-stocking order;
- Executed an agreement with Walgreens in February 2021, the second largest pharmacy chain in the U.S., for distribution of Rejuvenate™ ready to drink organic plant protein beverage across 8,468 locations, and received its first purchase order under this agreement in April 2021;
- Completed an agreement with Sam’s Club in March 2021 for sales of Rejuvenate™ ready to drink organic plant protein beverage on Samsclub.com slated to launch in May 2021.
- Closed a private placement of subscription receipts issuing 22,480,000 common shares for gross proceeds of $5.6 million, and a private placement of common shares for gross proceeds of $1,503,000, for aggregate gross proceeds of over $7.1 million in 2021.”
The nutritional supplements industry is large and growing in popularity each year. Element Nutritional Sciences is a newly listed Canadian company targeting “muscle health” nutrition with plant based products. Their two key brands are Rejuvenate and JAKTRX, nutritional supplements that support muscle growth, boost energy, and aid recovery. Element intends to expand over time and to target new markets, including oncology, orthopedics, and sports nutrition.
North American distribution and sales are being rapidly ramped up, with growing revenues expected to follow. Investors would be wise to take a look and get ahead of the pack, especially given the successful track record so far of Element Nutritional Sciences.