Question-and-Answer Session
Operator
(Operator Instructions). Your first question comes from the line of Nick Genova of B. Riley & Co. Please proceed.
Nick Genova - B. Riley & Co.
First question on the industry overall; it seems like the IRA data shows that branded sales remained strong even in this environment. It seems like you guys are seeing a little bit different impact within the joint care category. Can you talk to what makes the joint care category kind of unique in this case? And what the outlook is specific to joint for 2010?
Bruce Wood
This is Bruce, Nick, good morning. I think you have an accurate take on the overall category. It is showing a decent growth in the six plus percent rage as measured by IRA for all supplements. The joint care category, as I noted in my remarks is essentially flat in the last 12-weeks and is well below that growth rate of total BMS on an annual basis. We believe first off, it's one of the more mature supplement categories. It's been in place now for over a decade.
So, there is certainly a familiarity on the part of consumer with that category. The most, I think the significant factor for joint care is that it's a relative expensive product, whereas we can get vitamin C, vitamin E, fish oil products for well below $10 for more than a month supply often many more months than that. Glucosemine the growing product, because of the raw material costs are much higher priced in that $20 plus range and of course non-reimbursable in almost all insurance plans.
So, it's a major outlay for the consumer. They are by nature again our older consumers and therefore probably on more limited income. And that I think is a dynamic that continues to put the consumer in the bargain finding mode, and that's how the category is playing out right now. We have certainly unit volume and the number of tablets being sold continuously increase. So, there is increased acceptance by the consumer at the same time they are paying fewer dollars for it and most notably recently private label.
Nick Genova - B. Riley & Co.
So then when we are looking at the 2010 guidance, with understanding the dynamics within the joint care category. When you guys are talking about branded growth in 2010, how much of that is the joint care bouncing back or is it other products, such as new products or just existing branded products that are going to become a larger portion of the overall branded mix?
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