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GNC Holdings Launches Energy Drink With Natural Extracts

Zacks Equity Research

GNC Holdings, Inc. GNC announced the launch of MAD PONY ENERGY, which is an energy drink prepared from nature-based ingredients like NeuroFactor and caffeine. The flavored sugar-free drink is exclusively available at the retailer and on the company website.

The company believes that it has harnessed its expertise in nutritional science and established a supply chain of quality ingredient sources. This has led to the successful creation of a quality energy drink.

With the recent launch, the company aims to strengthen the foothold in the global nutritional supplements market.

 


 

Significance of the Launch

The product contains essential vitamins for improving overall energy production, mental and heart health.

MAD PONY, available in three flavors, contains nature-based extract NeuroFactor, which is likely to impact Brain-Derived Neurotrophic Factor (BDNF). Notably, BDNF is a key neuroprotein involved in overall brain health.

The company expects the health drink, with a clear edge over other contemporary ones, to attract a significant customer base.

Industry Prospects

Per a report by Research And Markets, the global nutritional supplements market is expected to reach $240.9 billion by 2026, witnessing a CAGR of 8.3% between 2019 and 2026. Factors like rising awareness of preventative healthcare, growing population and higher disposable income are likely to drive the market.

Given the rising potential of the market, GNC Holdings’ product launch is well timed.

Recent Developments

In October, the company launched a personalized wellness program GNC4U. It is a monthly subscription service, where vitamins and supplements recommended, per individual’s health needs and lifestyle goals, are personally delivered to consumers.

GNC Holdings partnered with BFG Brasil Comercial de Vitaminas LTDA (a professional retail operator) in September to expand presence in Brazil. The collaboration is expected to expand GNC Holdings’ customer base outside the United States, with special focus on Latin America.

In July, the company launched Beyond Raw LIT AF (Advanced Formula), which is a premium extension of the popular LIT pre-workout supplement.

Price Performance

Shares of GNC Holdings have gained 15.9% in the past year compared with the industry’s 5.3% growth.

Zacks Rank & Key Picks

Currently, the company carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Haemonetics Corporation HAE, National Vision Holdings, Inc EYE and ResMed Inc RMD.

Haemonetics currently has a Zacks Rank #2 (Buy) and a projected long-term earnings growth rate of 13.5%.

National Vision’s long-term earnings growth rate is estimated at 17.8%. The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ResMed’s long-term earnings growth rate is estimated at 14%. It currently flaunts a Zacks Rank #1.

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