Nutrisystem 2015 Annual Report Download - page 11

Daily 3®” physical activity program and expert guides with tips to help customers succeed on the program.
Additionally, NuMi, our digital product that integrates with wearable fitness devices and health platforms, is
offered to our customers free of charge.
Our Nutrisystem®program consists of more than 150 portion-controlled items that serve as the foundation of a
low Glycemic Index diet. Our program is portioned for weight loss and offers a balance of carbohydrate, protein
and fat that meets national dietary guidelines. We have also worked to reduce the sodium content of our meal
program. Including grocery additions to supplement our meals, our plans contain 1800-2200 milligrams of
sodium per day, consistent with national guidelines, and tailored versions of the plans are available that deliver as
low as 1500 mg/day. In contrast, the average American consumes 2800-4000 milligrams of sodium per day. We
constantly strive to meet or exceed nutritional guidelines as they are updated.
We offer a customizable program. In December 2015, we announced the launch of our Turbo10 program, a
clinically tested program that could deliver up to a 10-pound weight loss and a reduction of five inches overall in
the first month of dieting. Previously, we had offered the Fast 5+ kit, a one-week starter kit that could help
customers lose five pounds plus one inch off their waist in their first week of dieting. A large and growing body
of scientific evidence suggests a key predictor of long-term weight loss success is quick, early results, which
these programs were designed to deliver. Our program includes seven days of breakfasts, lunches, and dinners,
plus shakes with formulations for men and women to meet their unique nutritional needs. As part of our program,
customers are given a meal plan, access to trackers and tools via NuMi, educational digital content and exercise
suggestions and are also encouraged to check in periodically with a Nutrisystem counselor as their needs change
in response to weight loss. Our program delivers a combination of portion-controlled foods and an eating plan
based on slow digesting carbohydrates like fiber, designed to help keep blood sugar levels stable throughout the
day, minimizing hunger spikes and the feelings of deprivation that cause cravings.
Additionally, our multi-day kits are available at select retailers and represent a significant departure from our
traditional four-week program. We offer several varieties of our 5-day kit, a “D” kit targeted to individuals with
or at risk of Type 2 diabetes, as well as SmartCarb and PowerFuel products including blueberry muffins,
cinnamon buns, vanilla shakes, chocolate shakes and chocolate chip cookie packs, designed to complement our
multi-day kits. The retail channel provides us with great brand exposure, offering consumers who may not be
aware of our program an opportunity to sample Nutrisystem at an attractive price point. We are seeing repeat
business as well as multiple kit purchases, indicating that customers are seeing results or enlisting other family
members to diet with them. Also, we continue to offer our program at Costco through the use of prepaid program
cards and gift cards. We are actively developing our retail product pipeline and have multiple kits and single
items available for purchase.
For Type 2 diabetics or for those at risk for Type 2 diabetes, we have the Nutrisystem®D®Program, a weight
loss program specifically designed to produce gradual weight loss. It provides nutrition consistent with the
guidelines of the American Diabetes Association. Two randomized controlled trials published in peer-reviewed
medical journals found the Nutrisystem D program, in combination with counseling sessions, produced
statistically and clinically meaningful improvements in weight, HbA1c (a key measure of blood glucose control),
and several other risk factors. Notably, improvements in diabetes control were observed despite a reduction in
diabetes medications among participants who received the Nutrisystem D intervention. A third study, utilizing
continuous glucose monitoring technology, found improvements in blood glucose control when subjects used the
Nutrisystem D program, even before the achievement of significant weight loss.
By offering a variety of frozen and ready-to-go foods, we help our customers sustain their weight loss efforts. On
our website, customers can order food 24 hours a day, seven days a week. The transition and maintenance plans
allow customers the means to gradually increase their responsibility for grocery shopping and food preparation
while adhering to the principles of the Nutrisystem approach. These lower cost programs help extend the
supportive relationship and allow time to reinforce the dietary changes that produced the initial weight loss.
These plans include recipes and portion-control tools in addition to a reduced number of Nutrisystem®entrees
delivered each month.
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