GNC 2011 Annual Report Download - page 12

Table of Contents
Based on data collected from our point of sales systems, below is a comparison of our company-owned domestic retail product sales by major product
category, and the percentages of our company-owned domestic retail product sales for the years shown:
Year ended December 31,
2010 2009 2008
(dollars in millions)
U.S Retail Product Categories:
VMHS Products $ 496.1 39.9% $ 496.4 42.7% $ 465.2 41.3%
Sports Nutrition Products 531.3 42.7% 443.4 38.2% 410.1 36.4%
Diet Products 122.3 9.8% 128.0 11.0% 148.2 13.2%
Other Wellness Products 93.5 7.6% 94.3 8.1% 102.0 9.1%
Total U.S. Retail revenues $ 1,243.2 100.0% $ 1,162.1 100.0% $ 1,125.5 100.0%
The data above represents the majority of the revenue reported for the domestic portion of our retail segment. The table above excludes additional
revenue, primarily wholesale sales revenue to our military commissary locations, and certain revenue adjustments that are recorded to ensure conformity with
U.S. GAAP, including deferral of our Gold Card revenue to match the twelve month discount period of the card, and a reserve for customer returns. These
amounts were $6.5 million for 2010, $5.7 million for 2009, and $4.7 million for 2008. These items are recurring in nature, and we expect to record similar
adjustments in the future.
VMHS
We sell vitamins and minerals in single vitamin and multi vitamin form and in different potency levels. Our vitamin and mineral products are available
in liquid, tablets, soft gelatin, hard-shell capsules and powder forms, and are available in traditional bottle packaging form or in customized daily packet form
("Vitapak®"). Many of our special vitamin and mineral formulations, such as Mega Men®, Ultra Mega® and GNC WELLbeING® are available only at GNC
locations and on GNC.com. In addition to our selection of VMHS products with unique formulations, we also offer the full range of standard "alphabet"
vitamins. We sell herbal supplements in various solid dosage and soft gelatin capsules, tea, and liquid forms. We have consolidated our traditional herbal
offerings under a single umbrella brand, Herbal Plus®. In addition to the Herbal Plus® line, we offer a full line of whole food-based supplements and top
selling herb and natural remedy products.
We also offer a variety of specialty products in our GNC and Preventive Nutrition® product lines. These products emphasize third-party research and
literature regarding the positive benefits from certain ingredients. These offerings include products designed to provide nutritional support to specific areas of
the body, such as joints, the heart and blood vessels, and the digestive system. Overall, GNC-branded proprietary products constituted 81% of our VMHS
sales in 2010.
Sports Nutrition Products
Sports nutrition products are designed to be taken in conjunction with an exercise and fitness regimen. We typically offer a broad selection of sports
nutrition products, such as protein and weight gain powders, sports drinks, sports bars and high potency vitamin formulations, including GNC brands such as
Pro Performance®, Pro Performance® AMP and popular third-party products. Our Pro Performance® branded products, which represented 36% of our sports
nutrition product sales in 2010, are available only at GNC locations and on GNC.com.
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