Sports drinks boost profit

Related tags Sports nutrition Obesity Nutrition

PacificHealth Laboratories (PHLI), a nutrition technology company,
has announced a 64 per cent increase in net sales for its 2004
first quarter. The success has been attributed to the company's
Accelerade and Endurox R4 sports drink sales alongside the launch
of Countdown, a new post-workout beverage.

Net sales for the first quarter ammounted to $2.3 million, a 64 per cent increase over the same period in 2003 when revenues were $1.4 million.

"Our revenues for the first quarter represent the largest quarterly sales of our sports nutrition products in the company's history. The increased sales reflect a continuation of the growth we saw in the fourth quarter of 2003. Traditionally, our first quarter is one of our weaker quarters because of the seasonality of sports drink sales,"​ said president of PHLI Robert Portman.

The company also announced revenues of $5.5 million for the year ended December 31 2003, up $0.4 million in comparrison to the same period in 2002. The company's net loss was also reduced to $1.5 million in 2003 compared to a net loss of $2.6 million the previous year.

"We are pleased with our performance. Although we did not make a profit this year, we saw a 30 per cent growth in our Accelerade sales and laid the groundwork for strong growth in 2004. Studies published last year, as well as those soon to be published, confirm the superiority of Accelerade and Endurox R4 over other sports drinks. These studies, combined with the improvements we made in taste as well as the introduction of new flavors, will be the driving force for growth this year,"​ said Portman.

Accelerade contains protein as well as carbohydrate, said to both increase the amount of carbohydrate that gets into the muscle during exercise and speed up muscle recovery. The company worked with Cargill on manufacturing the new ready-to-drink version, launched in 2003.

A study, published in the International Journal of Sports Nutrition and Exercise Metabolism​ indicated that adding protein to a sports drink extends exercise endurance by up to 36 per cent more than a conventional carbohydrate/electrolyte drink containing the same number of calories.

PHLI also announced the clinical results of a new improved form of the patented appetite control technology, Satieterol, in both beverage and tablet form. The double blind, placebo-controlled studies showed statistically significant reduction in caloric intake in overweight individuals.

"This past year was marked by the launch of Accelerade Ready-To-Drink in Colorado. With the improvement in the Satieterol technology, we anticipate development and commercial introduction of a chewable tablet within this year. Although it is quite early in the year, the groundwork that we laid in 2003 appears to be paying dividends in terms of increased sales and distribution,"​ said Portman. PHLI also acquired all the outstanding shares of Strong Research, a research-based educational sports nutrition company, in exchange for shares of PHLI common stock in 2003.

"Strong Research is actively involved in the scientific education of athletes on proper nutrition utilizing leading PhD-level scientists in sports nutrition. Our acquisition of Strong has paid immediate dividends with the introduction of our first product, Countdown, specifically directed to strength athletes,"​ said Portman.

Countdown, a post-workout drink built on the carbohydrate/protein technology, was launched in March 2004 at the Arnold, the largest strength and bodybuilding show in the United States.

PHIL​ is thought to expand its product offerings - targeting the strength athlete - with two new product launches in June 2004.

Related topics Markets Energy & Sports