Ediets.com Inc. Q4 2007 Earnings Call Transcripts

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2008-03-04 19:44:08.0

Tags: eDiets Com Inc.

Question-and-Answer Session

(Operator Instructions)

Operator

Your first question comes from the line of Greg Badishkanian with City Group.

Greg Badishkanian - City Group

Maybe you can provide some color on your marketing strategy, particularly for your meal delivery business in 2008, what type of media channels are you going to use, in terms of celebrities? Do you have anything in the pipeline, maybe you could use more color on that?

Kim Evenson

In terms of we are going to 2008, we will continue to focus on DRC(ph) dancers as it is the primary leg of the marketing plan and we talked about - we are trying to grow the lower cost EPA channels with partnerships playing a key role for us and evolve new e-mailed letters potentially can help the program in advancing. We are not going to say that we are eliminating the opportunity to do any celebrity testimonial, but right now we do not have identified on the horizon.

Greg Badishkanian - City Group

Has Glaxo provided some estimates in terms of what they are going to spend on marketing in 2008 for Alli. I believe that is part of the strategy, but have they talked about that publicly?

Kim Evenson

We cannot really share any details, in terms of their marketing fund related to it.

Greg Badishkanian - City Group

Right, okay, fair enough. And, also just looking at the overall diet industry, weight watchers, nutri-systems, is all over the softness in January and February. I am just wondering if you have seen that same trend or if you are in a different position than they are given what you sell and what they sell?

Steve Rattner

Yes, we are in a different position. One is based on what we sell and what they sell, but also, because we are starting at a lower point than they are and truthfully we are just coming out of the gates and we are gaining some momentum here. So, we are very enthusiastic about where we are staying in the first quarter.

Greg Badishkanian - City Group

Right, good, thank you very much.

Operator

Your next question comes from Scott Van Winkle of Canaccord Adams.

Scott Van Winkle - Canaccord Adams

Steve, I do not know if you can give us specifics, but I loved to know what you are thinking on the gross margin on the food side to get to that 49% blended.

 

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