Entrepreneur Stuart Lowther ‘Rejuvenates’ the nutraceutical sector with Element Nutritional Sciences
Element Nutritional Sciences Inc. (CSE: ELMT | FRANKFURT: 93X) (“Element”) is a listed nutraceutical company based in Ontario, Canada, founded in 2015. Element specializes in the development of nutritional and dietary supplements that increase and maintain the health of men and women. A key differentiator for Element is their niche focus on building up and/or preventing muscle loss, especially for those over 50 years.
Element Nutritional Sciences focuses on products for muscle support and energy boosting ideally for athletes and those over 50 years
Source: Company presentation
Element has a strong team which has recently been boosted
Element was founded by Stuart Lowther, who previously founded Life Science Nutritionals (“LSN”) which sold for $40 million. Profit Magazine ranked LSN the number one fastest growing company in the pharmaceutical and nutraceutical industry. CEO Stuart Lowther has a strong track record from when he was an International Executive at Jamieson Laboratories, growing revenue by 14x, as well as at Iovate Health Sciences (Muscletech) where he helped grow the business from $40 million in revenue to over $200 million.
Element is rapidly building up their board and management team to facilitate the rapid scaling of their business. In July 2021 Element announced the appointment of two new key executives.
John Duffy was appointed as VP of Sales for the United States. He has 25 years of experience in beverage sales and marketing, including various positions with The Coca-Cola Company between 1996 and 2018 as well as experience with National Foodservice Sales managing client accounts generating revenue of over $1 billion.
Stephen Brown was appointed Chief Operating Officer. He has over 25 years of experience in operations in the nutrition industry. He worked previously as the Chief Operating Officer at Nuvocare, and before that he was VP Operations at Iovate Health Sciences, driving annual revenue over $750 million. He has operational experience with the global supply chain and logistics in over 80 countries.
Then announced in August 2021, Element appointed Tracie Crook and Greg Cochrane to the Company’s Board of Directors. Both bring extensive business knowledge and experience, covering a history at law firms and private equity respectively.
Element’s distribution and marketing is rolling out at an astonishing rate and has now expanded from North America to Asia
Element’s products are already being distributed via some of the biggest names in retail including CVS Pharmacy, Walgreens, Amazon, Sam’s Club (Walmart), Loblaws, Rexall, Metro, Shoppers Drugmart, Food Lion, and iHerb. Added to this was a recent brokerage agreement with Advantage Solutions and an agency agreement with Canopy Management.
On July 21 it was announced that Element’s Rejuvenate™ is now available in over 8,400 Walgreens locations in the United States. In the news release the extent of the astonishing distribution gains was highlighted by this statement:
“Rejuvenate™ products are now available at over 15,500 points of distribution in the United States (through Walgreens, CVS and Food Lion) and 750 locations in Canada (through Loblaws, Shoppers Drug Market, and Rexall). These retail partnerships complement the Company’s e-commerce network which includes amazon.com, amazon.ca, rejuvenatemuscle.com and rejuvenatemuscle.ca, and will soon include shipments to Sam’s Club and iHerb.”
For those who may not know, CVS is the largest pharmacy chain in the USA by number of locations. Walgreens is the second-largest pharmacy store chain in the USA behind CVS. Amazon is the world’s largest online marketplace.
Added to this Element uses brand ambassador Denise Austin, who is one of North America’s most influential people in health and nutrition with 464,000 followers and 30% engagement (industry average is 2%).
Element brand ambassador Denise Austin has a core following in the 45 to 65 yo market
Source: Company presentation
As if that wasn’t already enough marketing and distribution, on July 28, 2021, Element announced that they had signed a Letter of Intent (“LOI”) to establish an Asia Pacific Region distribution. The Asian JV distribution company will be a 50/50 JV between Element and NaturalMade Co., Ltd. Based in South Korea, NaturalMade is a distributor of health and wellness products across the Asia Pacific region.
CEO Stuart Lowther stated: “We have long-standing ties with the team at NaturalMade and we are confident they have the expertise to quickly accelerate the sale of Rejuvenate™ products across Asia, starting with South Korea. There are millions of potential Rejuvenate™ consumers across South Korea, Japan, China and the rest of Asia that fit into our core 50 years and older demographic, which makes this broad market a key part of Element’s long-term growth strategy.”
Element Nutritional Sciences has all the ‘elements’ investors are looking for – A strong board and management team with a relevant track record of success, good products with a strong need, a rapidly growing marketing and distribution network expanding from North America into Asia, and finally a low market cap of only C$65 million. Don’t miss this one.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>