WeightWatchers 2015 Annual Report Download - page 5

our “Other” reportable segment consists of our Australia, New Zealand, Mexico and Brazil Company-owned
operations, as well as revenues and costs from our franchises in the United States and certain other countries.
Revenues from our North America, United Kingdom, Continental Europe, and Other reportable segments
contributed 64.9%, 10.7%, 19.7% and 4.7%, respectively, of our total revenues in fiscal 2015. Revenues from our
North America, United Kingdom, Continental Europe, and Other reportable segments contributed 64.0%, 10.6%,
20.2% and 5.2%, respectively, of our total revenues in fiscal 2014. Finally, revenues from our North America,
United Kingdom, Continental Europe, and Other reportable segments contributed 67.4%, 10.0%, 17.4% and
5.2%, respectively, of our total revenues in fiscal 2013.
The Global Weight Management Market
We participate in the global weight management market. According to Marketdata Enterprises, the weight
management market had revenue of approximately $59.8 billion in 2014 in the United States alone. The number
of overweight and obese adults around the world rose 27.5% between 1980 and 2013, and is estimated to reach
over 3 billion by 2030. Between 2011 and 2012, 69% of Americans at or over the age of 20 were considered
overweight and over a third of these were obese. Numerous diseases, including heart disease, high blood pressure
and Type II diabetes, are associated with being overweight or obese.
Our Services and Products
Our Weight Management Program and Plan
In each of our markets, we offer services and products that are built upon our new weight management
program, known as Beyond the Scale in North America. The program goes beyond a singular focus on weight
loss, encompassing a holistic approach to a healthier, more active, happier life. It is comprised of a range of
nutritional, activity, behavioral and lifestyle tools and approaches that can be personalized. Our new food plan,
known as SmartPoints, was developed from a combination of advancements in scientific research and consumer
insights, including from customers who experienced prior Weight Watchers plans. With the SmartPoints system,
each food has a SmartPoints value determined by the food’s calories, saturated fat, sugar and protein content.
Customers following the SmartPoints system can eat any food as long as the SmartPoints value of their total food
consumption stays within their personalized SmartPoints “budget”. Since nutritious foods generally have lower
SmartPoints values, this approach guides customers toward healthier eating patterns. Based on a personalized
assessment included in the Beyond the Scale program, members and subscribers get daily and weekly
SmartPoints targets, personalized activity goals and relevant content tailored to their needs. Prior to the launch of
SmartPoints in December 2015, we offered a weight management plan known as PointsPlus in North America,
or ProPoints in certain of our other geographies.
Our customers can participate in our program in two main ways: in-person group meetings and digitally.
Within these two channels, we offer a variety of products to meet each customer’s preferences. Our leaders,
when leading meetings and providing personal coaching, educate members and subscribers on our program and
range of tools. In addition to providing support, our leaders also inspire members and subscribers, as each leader
was successful in her or his weight loss journey using our methods.
Our Meetings Business
In our meetings business, we present our program in regular weekly meetings of 30 to 45 minutes in
duration, conveniently scheduled throughout the day. Our group support system remains the cornerstone of our
meetings. Members provide each other support by sharing their experiences with, and by providing
encouragement and empathy to, other people experiencing similar weight management challenges. Leaders
facilitate this support through interactive meetings that encourage learning through member-driven discussions
and individual goal-setting.
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