Schiff Nutrition International is a company that develops, manufactures, markets, and distributes nutritional supplements, nutrition bars, and private and branded label vitamins, mostly in the US . The company's portfolio consists of capsules, tablets, and nutrition bars that it markets primarily through mass retailers . Its most popular brands include Move Free and Tiger's Milk.
Move Free, a joint care supplement, is the company's signature and best selling product , combining glucosamine, chondroitin, and Uniflex . The product has received high marks from physicians and surgeons . Move Free sales made up approximately 48%, 48%, and 40% of the company's net sales in in 2007, 2006, and 2005, respectively . The company also manufactures and markets Vitamin C, Vitamin E, Glucosamine, Green Tea Diet, Lubriflex, Niacin, Melatonin, Odorless garlic, Prime Years Multi, Prostate Health, Super Calcium, and Vegetarian Multi .
The company believes that the strong and long-lasting reputation of the Schiff brand name is one of its strongest assets . Consequently, it spent $19.4 million dollars on advertising in fiscal year 2007  and aims to maintain high quality in its products.
Over the coming years, Schiff Nutrition stands to benefit from the Aging of the American population and if it expands internationally, the aging of the world population. It faces risk from its customer and product concentrations, and the volatility of raw material prices.
Over the last five years, the company's net sales have risen every year except fiscal year 2007. The company said that the 3.2% decrease from fiscal year 2006 can be attributed to a 6.3% decrease in demand for branded products in the joint care segment. The decrease in branded net sales in turn can be attributed to the sales price reductions that the company has used to try to fend off competition and maintain and increase market share. Nevertheless, sales by volume decreased 1.8%. The fall in demand in the branded joint care segment was partly offset by a 10.4% increase in private label sales .
2007 advertising expenses were $19.4 million, while product research and development expenses were $3.7 million . The company employs 404 people, 234 in management, sales purchasing, logistics, and administration, and 170 in manufacturing .
The aging of much of the world's population is sure to have a significant impact on many companies in the health sector, including Schiff International. The United Nations estimates that by 2030, people over age 60 will account for 17% of the total world population as compared to 10% today. In the United States, estimates project that there will be 71.5 million seniors by 2030, as compared to nearly 40 million today .Move Free, Move Free Advanced, and Move Free Advanced plus MSM are all joint care products and combine to make up nearly half of the Schiff International's sales. All three are intended to help fight arthritis. Since arthritis is the leading cause of disability in those who are fifty-five and older, Schiff stands to benefit from the aging of the American population. The company's plans to expand to foreign markets mean that it could also benefit from the aging of the world population.
Costco and Wal-Mart accounted for 69% of total net sales in fiscal year 2007 . Each retailer accounted for 34%-35% of net sales . Schiff Nutrition does not have long-term contracts with either of these mass-retailers, as is typical in the industry. As a result, if either retailer does not renew its contract with Schiff Nutrition, the company would see a decrease of more than one-third in net sales.
Since 48% of Schiff's 2007 net sales were generated by its leading product, Move Free, a dramatic drop in demand for this product will result in a large decrease in Schiff's revenues.
Since the company is dependent on third-party suppliers, a dramatic increase in the prices of raw materials will adversely affect its costs. In 2005 and 2006, prices of raw materials for the company's Move Free product increased significantly. Prices have since decreased .
According to Nutrition Business Journal, the market for vitamins, minerals, and supplements was approximately 21.2 billion in 2005 . Because the market is fragmented, both in terms of products and geographic market range, and because many of Schiff Nutrition's competitors are privately held, it is difficult to determine Schiff Nutrition's market share.