To: bmart who wrote (2024 ) 8/27/1998 8:22:00 AM From: The Street Respond to of 26163
Pubdate: Wed, 26 Aug 1998 Source: Chicago Tribune (IL) Contact: tribletter@aol.com Website: chicago.tribune.com Author: Bruce Japsen Section: Front Page NATURAL SUPPLEMENT BOOM IS REAL, NOT SHOWING ANY SIGNS OF ABATING Whether they're called natural supplements, herbal vitamins or what some on Wall Street know as "neutraceuticals," they're part of an industry generating, by some estimates, $8 billion in annual sales. From products like Melatonin, which helps induce sleep and is known to prevent jet lag, to zinc tablets promoted to alleviate common cold symptoms, these dietary supplements are more than just a passing fad, industry analysts say. The sports nutrition segment of the supplement industry is estimated at more than $1 billion. "Gatorade was one of the more popular and first functional foods introduced into the sports world, and look at it now," said William Wong, an equity analyst with Salomon Smith Barney in New York. The Dietary Supplement Health and Education Act of 1994 largely is responsible for ushering in this new wave of products that include vitamins, minerals, herbs and amino acids. Androstenedione, the testosterone-producing pill taken by St. Louis Cardinals slugger Mark McGwire, is just a tiny fraction of the burgeoning market that falls under the act, which doesn't restrict the sale of dietary supplements or require a physician's prescription to purchase these products. Scottsdale, Ariz.-based Olympian Labs, one of about eight known manufacturers of Androstenedione, wouldn't comment when contacted Tuesday. The four-year-old law set up regulatory standards for the supplements separate from the Food and Drug Administration, according to the Congressional Research Service in Washington. The law leaves the industry largely unregulated when compared with pharmaceutical manufacturers. Although Congress has had opportunities to amend the law, the most recent landmark health legislation--the Health Insurance Portability and Accountability Act of 1996--didn't mention regulation of supplements or health food stores, the Congressional Research Service said. Those who sell the products say there's little need for regulation because "they are natural," said Peter Maldonado, Vitamin Department Manager at Sherwyn's Health Food Shops Inc. in Chicago. "Drugs are not naturally occurring in nature like (supplements) are." Most supplements simply carry the label acknowledging that they have not been evaluated by the FDA. The label goes on to say: "This product is not intended to diagnose, treat, cure or prevent any disease." The consumer demand for these products is the primary driver behind the decision by Sherwyn's to expand after operating just one store for the last 25 years. Maldonado said a "superstore" at an undisclosed Chicago location will open "very soon." "We're here to complement the body's natural ability to strengthen its immunity and longevity," Maldonado said. As consumers become more health-conscious, the dietary-supplement market is expected to grow even more. "People know they have the ability to correct disease and prevent illness," Maldonado said. "People don't always have to go to a doctor for an upset stomach when they can take some ginger. Every year, this business is becoming more monumental."