Presentation by Peter Zambetti IADSA Global Market Analyst The World Market Data 2008

Agenda Global Overview US Market Today US Declining/Rising Products Western European Market Eastern European Market Asia Pacific Markets Latin America Markets Conclusions

What does the Vitamins and Dietary Supplement market include? Vitamins  Multivitamins  Single vitamins (A, B, C, etc) Dietary supplements  Calcium supplements, mineral supplements, fish oils, garlic, ginseng, ginkgo biloba, evening primrose oil, echinacea, St John's wort and other dietary supplements Others  Tonics and bottled nutritive drinks  Child-specific vitamins and dietary supplements Sources: Euromonitor, Datamonitor, Mintel and NBJ

Billions of Dollar (US) rsp The Global Market Euromonitor 2009 copyright

Other = Africa, Middle East and Australasia Euromonitor 2009 copyright Global Market 2008

Top Global Markets in USD $

Vitamins & Dietary Supplement Market United States

United States DS Preferences Data 2006 Fish Oils, CoQ10 and Probiotics post double digit gains. Euromonitor 2009 copyright

United States Vitamin Preferences Data 2006 Dollars (US) m rsp Euromonitor 2009 copyright Multi-vitamins accounted for 45% of total vitamin sales in 2008

United States… What’s Old News Vitamin Edown $15.3M Calciumdown $9.8M Garlicdown $6.3M Saw Palmettodown $2.9M Evening Primrose Oildown $1.4M Euromonitor 2006 copyright

Fish Oilsup $126.6M Vitamin Bup $103.6M Vitamin Dup $ 58.8M Probiotic Supplements up $ 55.8M Vitamin C up $ 48.0M Co-Q10 up $ 42.0M Multi-vitamins up $ 40.9M Vitamin A up $ 26.5M Eye Health Supplementsup $ 21.7M Glucosamine up $ 18.7M Noni up $ 15.7M Euromonitor 2006 copyright United States… What’s Growing

Specific Supplements – which claim to support bodily functions as consumers age – like eye, joint and heart health will drive growth Sports Nutrition – expect to top $12.7B by 2011 Blends of Vitamins and DS – are expected to perform strongly over the next 3 years as consumers increasingly turn to them to treat specific health conditions as they continue to question traditional drug therapy Weight and Glucose Management – Innovative products coming into popularity, diabetic formulas and glycogen impact Multivitamins – are predicted to grow by 7.5% in constant value between 2005 – 2009 GMP Implementation and AER filing– costs could run between $60- 90K/year per mfg and eliminate 20% of very small mfg. United States Conclusions

Vitamins & Dietary Supplement Market Western Europe

Euromonitor 2009 copyright Other Countries Austria2% Belgium3% Denmark2% Finland2% Greece2% Ireland1% Netherlands3% Norway5% Portugal1% Spain4% Sweden3% Switzerland2% Turkey2% Four Markets Dominate Europe Sales

National Preferences – Germany Echinacea continues to be top selling supplement, with Garlic and Calcium close behind Euromonitor 2009 copyright

National Preferences – Italy Probiotic market second only to US Vitamin B accounts for 38% of all vitamin sales Probiotic market second only to US Vitamin B accounts for 38% of all vitamin sales Euromonitor 2009 copyright

National Preferences – UK Fish Oils are greater than all Multi-vitamins combined Euromonitor 2009 copyright

National Preferences – France Multi-vitamins and Vitamin C account for 23% of total sales in 2008 Euromonitor 2009 copyright

Price competition in major markets to continue Multivitamins represent a trusted choice  innovation through reformulation  and further therapeutic category specialties Niche products will perform well Beauty from within benefits promoted through major effort by Inneov and Oenebiol Big changes coming by 2010! Will the EU Harmonize? Western Europe Conclusions

Vitamins & Dietary Supplement Market Eastern Europe

National Preferences – Russia Russia continues to grow with a 24% yearly sales gain Euromonitor 2009 copyright

National Preferences – Poland Vitamin C accounts for 31% of all vitamin sales Euromonitor 2009 copyright

National Preferences – Czech Republic Mineral Supplements market is 40% greater than multi-vitamins Euromonitor 2009 copyright

Trends for DS Ingredients:  Minerals  Multi-vitamins  Fish oils  CoQ10  Glucosamine Distribution:  Grocery gaining share: + 50% in 3 years  Chemists/pharmacies dominate Major growing countries: Russia, Poland, Hungary, Ukraine, Czech Republic & Romania Per capita expenditure increases by 50% over the last 4 years in Russia alone Eastern Europe Conclusions

Vitamins & Dietary Supplement Market Asia Pacific

National Preferences – China Calcium and Multi-vitamins grew 8% in 2008 Protein Powder acts as gift and meal replacer Euromonitor 2009 copyright

National Preferences – Japan Mature market with sales figures remaining relatively unchanged due to tough regulations which continue to stifle market growth Euromonitor 2009 copyright

National Preferences – India Mineral supplements are twice the size of the multi-vitamin segment Euromonitor 2009 copyright

Vitamins & Dietary Supplement Market Latin America

National Preferences – Brazil Vitamin C accounts for 50% of vitamin sales Euromonitor 2009 copyright

National Preferences – Mexico Multi-vitamins continue to far outpace all supplements & minerals Euromonitor 2009 copyright

Most developed markets had 4-6% growth over prior year Japan DS the only negative of Major Markets for 3 rd straight year Western Europe market hits $15.5B at 20% global share China growth slows on SFDA issues India market continues growth to over $600MM Latin America jumps 13% to $2.7B Eastern Europe continues to grow at double digits Concern over DS products becoming drugs or OTC by Pharma companies looking to leverage their clinical abilities US 110 th Congress passes both GMP regs and AER bill increasing cost of compliance-will force consolidation Global Headlines-Conclusions 2007/2008