From a bankruptcy filing to a first-of-its-kind CBD deal with Major League Baseball, it’s been an interesting week for news. Below are five topics that caught our attention.
CHAPTER 11 BANKRUPTCY
Vital Pharmaceuticals Inc. (also known as VPX Sports), the parent company of Bang Energy— along with certain of its domestic subsidiaries and affiliates— filed voluntary petitions for Chapter 11 bankruptcy protection. In an Oct. 10 news release, the company said the move was intended to help it recover from recent challenges, including several lawsuits that have affected its short-term outlook.
A jury recently awarded Monster Energy Co. $293 million in damages against Bang in a lawsuit alleging Bang falsely advertised its drinks’ ingredients and health benefits, Reuters reported. The news agency also reported in July that a federal court affirmed an arbitrator’s $175 million award for Monster and Orange Bang Inc. against Vital Pharmaceuticals for trademark infringement.
“This company was founded on determination and a relentless passion for giving our customers and consumers what they want—and we will continue do so,” VPX Sports founder and CEO Jack Owoc said in the news release. “I know we will successfully emerge from this process as a stronger company.”
DIETARY SUPPLEMENTS SURVEY
The Council for Responsible Nutrition (CRN) disclosed initial findings from its 2022 Consumer Survey on Dietary Supplements. The survey found three-quarters of Americans report using nutritional or dietary supplements, with the vast majority regular users of these products. Among other findings, CRN revealed 77% of Americans—and 84% of supplement users—find the industry trustworthy. Consumers also reported their top reasons for taking supplements were “maintaining my health” and “live healthier/adopt healthier habits.”
“This year’s data shows a remarkable picture of continuity and paints the landscape of a vibrant, mainstream industry,” Brian Wommack, CRN’s senior vice president of communications, said in an Oct. 13 news release. “While overall usage is down slightly from its pandemic peak, reported usage of immunity-boosting supplements—including vitamin D, vitamin C, and zinc—is steady from last year.”
CBD IN PROFESSIONAL SPORTS
Major League Baseball has inked a sponsorship agreement with CBD company Charlotte’s Web Holdings Inc. A joint press release on Oct. 12 announced Charlotte’s Web has become the first "Official CBD of Major League Baseball." MLB in June officially opened the CBD category for the league and its clubs, allowing sponsorships with CBD companies that are NSF Certified for Sport, according to the release.
The MLB-Charlotte’s Web partnership celebrates the introduction of the first broad-spectrum, hemp-derived tincture to be Certified for Sport by NSF, according to the news release. NSF is a global product testing, inspection and certification organization. Charlotte’s Web said the tincture, Daily Edge, was subject to rigorous independent testing to meet MLB's no-banned substances policy and scientific benchmarks.
“As a leader in the CBD category, with products that provide health and wellness benefits, Charlotte's Web is a welcome addition to the MLB family, representing a landmark partnership in baseball and sports," MLB Chief Revenue Officer Noah Garden said in the release. "Charlotte's Web products which receive the NSF Certified for Sport designation have met the highest safety standards and can be promoted across MLB events and media platforms.”
CHROMADEX- NESTLE ACCORD
Healthy aging company ChromaDex Corp. announced a new long-term commercial license and supply agreement with Nestlé Health Science relating to its flagship ingredient Niagen, which contains NAD+ precursor nicotinamide riboside (NR). According to an Oct. 11 press release, the fresh accord expands the previous supply agreement entered in 2018 to include dietary supplements. Nestlé Health Science will have non-exclusive rights to produce, market and sell ChromaDex’s Niagen in multi-ingredient dietary supplements under its brands around the world—except where ChromaDex has current exclusive distribution agreements.
The deal includes an initial Niagen purchase commitment of nearly $2 million in 2022, ChromaDex said, adding it will be eligible to receive commercial milestone payments and tiered royalties regarding the sale of Nestlé’s Niagen-containing products. Nestlé Health Science also has agreed to purchase about 3.8 million shares of ChromaDex’s common stock for gross proceeds of $5 million, according to the news release.
A national poll conducted by the Marist Poll revealed 70% of Americans are more likely to support a congressional candidate who will protect the public’s access to dietary supplements and other natural and homeopathic remedies, according to a news release from five organizations who commissioned the poll: Americans for Homeopathy Choice, Alliance for Natural Health USA (ANH), Citizens for Health, Natural Products Association (NPA) and American Institute of Homeopathy. The survey of 1,690 adults was conducted between Sept. 27 and Sept. 29, and adults were contacted by phone using live interviewers, text or online.
According to the news release, the poll revealed the use of supplements and other natural or homeopathic remedies is consistent across all demographic and partisan categories, as is backing for congressional candidates who will protect consumer access to these products.
“As the poll indicates, 61% of households use our products daily, and 75% use them at least monthly,” NPA President and CEO Dan Fabricant said in the news release. “The poll also shows overwhelming support for candidates for office who support access to these products. At a time when our industry is under attack at the state and federal level, data points like these demonstrate proposals to require pre-market approval or age restrict products are not mainstream.”