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Online News Briefs
September 18, 2006
5 Min Read
In the News
Wild Oats Raises Funds for Vitamin Angels
BOULDER, Colo.--Wild Oats Markets Inc. announced it will donate $0.25 to the Vitamin Angel Alliance for every bottle of Wild Oats brand vitamins purchased between Aug. 1 and Sept. 30. According to the Vitamin Angels (www.vitaminangels.org), it expects the fundraising efforts will cover the cost of administering a year's supply of vitamin A capsules to nutrition programs in poverty-stricken communities. Wild Oats recently donated $250,000 of its store brand vitamins and supplements through Vitamin Angels to various charitable health care facilities and programs throughout Liberia and Zambia.
AHPA Reviews Hoodia CITES Requirements
SILVER SPRING, Md.--The American Herbal Products Association (AHPA) released a list of information that should accompany Hoodia gordonii CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) certificates. According to AHPA (www.ahpa.org), the minimum information that should be found on any CITES certificate that accompanies materials identified as Hoodia gordonii includes:
A unique permit number.
A date until which the permit is valid.
Name and address of the importer.
Name and address of the exporter (which information may be redacted if the importer wishes to protect the identity of their African exporter).
A unique security stamp number.
Name, address, national seal/stamp and country of the CITES Management Authority that issued the permit. (For Hoodia subspecies. exported from South Africa, the CITES Management Authority is the Department of Environmental Affairs and Tourism.)
The scientific name (genus and species) and common name of the plant.
A description of the form of the material ("powder;" "dried and milled;" etc.).
The quantity, which quantity must not be less than the purchased amount.
The name of the agent who issued the permit.
The date of the permit's issuance.
The official seal of the issuing party.
Financial News
International Sales, Distributor Program Balance Slow U.S. Sales at Reliv
CHESTERFIELD, Mo.--Relive International Inc. (NASDAQ:RELV) reported top and bottom line declines for its second quarter, compared to a year ago, as net sales slipped 2.4 percent to $27.8 million, while earnings slid 18 percent to $1.62 million or $0.09 per share. The company looked toward growing international sales for salvation, and expects its latest distributor bonus program will lead to expanded business.
For the quarter, sales outside the United States rose 13 percent to $2.8 million, with sales increases recorded in most of the company's seven international markets. The strongest increases were reported in Australia/New Zealand (14 percent) and the United Kingdom (36 percent). Management noted that these increases reversed a downward slide in sales in non-U.S. markets that began last year.
"About two years ago we made a conscious decision to invest more resources, both senior management time and new personnel, in our international operations," said Robert Montgomery, president, chairman and chief executive officer (CEO). "We said we would straighten out those operations, and the second quarter international sales increase is evidence that we are beginning to move in the right direction." He added the company was disappointed with its U.S. results as compared to last year, but with extra international resources in place, senior management can now return its full focus to overall operations. "We believe we can achieve positive sales and earnings growth," he said. "My confidence is based on two key factors: One, we offer distributors an outstanding business opportunity supported by a well defined, disciplined system proven to help our distributors expand their businesses. Two, we make nutrition simple with products that are effective, easy to use and affordable."
To boost sales, Reliv (www.reliv.com) announced a special "Mega Bonus" program at its 2006 international conference in St. Louis in early August. Montgomery stated Reliv will hand out more than $700,000 in new bonuses at its international conference in St. Louis in August 2007, dividing the money among its top 50 distributors in group sales volume between Aug. 1, 2006, and July 31, 2007--the first place winner will get $100,000. Combining the Mega Bonus funds with Reliv's existing monthly bonuses will bring total distributor bonuses for the next 12 months to more than $1 million.
Acquired Titles, Internal Growth Spark Gaiam Gains
BROOMFIELD, Colo.--Growth from within, including sales from recently acquired media titles, helped spark doubled second quarter revenues at Gaiam Inc. (NASDAQ:GAIA), which also moved from the red to the black compared to a year ago. Net sales rose 98.8 percent to $43.2 million, due to a combination of its business and direct-to-consumer segments, as well as to contributions from its recent acquisitions, including GoodTimes Entertainment--which was one day into bankruptcy when Gaiam (www.gaiam.com) snatched it up in late 2005 for $40 million. On the strength of the revenue spurt and a jump in gross margin to 69 percent from 55 percent a year ago, Gaiam posted net income of $1.2 million or $0.05 per share, a marked improvement over a net loss of $0.77 million or $0.05 per share logged in the same quarter last year.
In linking the top and bottom line performance to Gaiam's overall strategy, Jirka Rysavy, chairman and chief executive officer (CEO), noted, "Our recent acquisition of a majority ownership of Spiritual Cinema Circle, a subscription-based DVD club, and the planned launch of our new community site in the fourth quarter are part of our efforts to leverage our seven million customers to subscription based offerings."
"I am pleased to report that we have successfully integrated the acquisition of GoodTimes' media assets and are now focused on expanding all of our growth channels including our increasing subscription base and our store-within-store concept," said Lynn Powers, president. "We expect to surpass a $200 million revenue milestone in 2006 and keep our gross margin above 60 percent while we leverage our infrastructure and continue to reduce the costs associated with the GoodTimes transaction."
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