Nutrition

In February 2007, the Group added Naturalac Nutrition Limited (“NNL”) to its portfolio of brands. NNL is a marketer of branded sports nutritional food and beverages including products under the Horleys™ brand name and other proprietary brands such as Sculpt™ (a weight management product tailored for women), Covet™ (a range of nut milks) and Replace™ (an isotonic sports drink in powdered format).

NNL became a “virtual” company in 2002, which enabled its management to focus efforts on key areas of marketing and product development while outsourcing many of its key functions including manufacturing, distribution and selling to third party providers. This lean business model has provided NNL with the needed flexibility and speed in delivering high quality products to its customers, while focusing and leveraging on its key competency in product development, advertising and promotion and customer service. This model has reduced the need for substantial resources required for setting up of processing and production centres. In addition, NNL has been able to significantly shorten the time required for product development, from concept to market, providing it an edge over competitors.

In New Zealand, NNL’s products are primarily distributed through retail channels (supermarkets, oil and convenience retail outlets) along with the traditional route channels (gyms, health food shops, specialty stores and specialty nutrition shops) whilst its Australian sales are made predominantly through the route channels.

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Horleys

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