GNC 2012 Annual Report Download - page 15

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Table of Contents
Based on data collected from our point of sales systems in our GNC stores and from GNC.com, 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:
December 31,
U.S Retail Product Categories: 2011 2010 2009
($ in millions)
VMHS $ 542.6 38.7% $ 496.1 39.9% $ 496.4 42.7%
Sports Nutrition Products 621.8 44.3% 531.3 42.7% 443.4 38.2%
Diet Products 139.6 9.9% 122.3 9.8% 128.0 11.0%
Other Wellness Products 99.7 7.1% 93.5 7.6% 94.3 8.1%
Total U.S. Retail revenues $ 1,403.7 100.0% $ 1,243.2 100.0% $ 1,162.1 100.0%
The data above represents the revenue reported for the domestic portion of our retail segment, and excludes additional revenue, primarily wholesale sales
revenue to our military commissary locations, revenue from LuckyVitamin.com, which is not on our point of sales system, and certain revenue adjustments
that are recorded to ensure conformity with generally accepted accounting principles in the United States, including deferral of our Gold Card revenue to
match the twelve month discount period of the card, and a reserve for customer returns. These excluded amounts were $16.7 million for 2011 (including
$14.5 million related to LuckyVitamin.com), $6.5 million for 2010 and $5.7 million for 2009. 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 Triple Strength Fish Oil are available 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 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 approximately 82% of
our VMHS sales in 2011.
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 Beyond Raw®, and popular third-party products. Our GNC-branded proprietary products, including Pro
Performance® branded products, represented approximately 37% of our sports nutrition product sales in 2011, and are available only at our locations, select
wholesale partner locations and on GNC.com. With a broad array of products and our vast retail footprint, we believe we are recognized as one of the leading
retailers of sports nutrition products.
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