The Fitness and Health industry is valued at approximately 33 billion dollars and growing rapidly. More and more people everyday are jumping on board the health and fitness lifestyle. That translates to more money being spent on nutrition supplements. It is estimated that over 72 million Americans are diagnosed clinically obese. If that’s not bad enough, one billion people across the globe are considered “overweight”.
The Journal of the American Medical Association, has also noted that more than 50% of adults use supplements to improve their overall health and well-being. Due to aging demographics and increasing demand for products that are “revolutionary” and “one-of-a-kind”, Nutraceuticals World reports that the US is the biggest market for nutrition products that treat medical needs. Axxess Pharma (OTCMKTS: AXXE) through its wholly owned subsidiary, AllStar Health Brands, Inc., signed exclusive licensing agreements to sell TapouT branded health supplements including vitamins, protein powder, as well as muscle building & muscle recovery supplements.
In a March 25 PR, World Wrestling Entertainment (WWE) announced that it had initiated a joint venture with Authentic Brands Group, LLC, to make TapouT brand the official fitness and training partner of WWE. This venture will be integrated with many WWE events and shows. According to the press, these include TV programming, WWE Network, pay-per-view broadcasts, live events, digital, and social media. WWE Chairman & CEO Vince McMahon stated, “This joint venture aligns with our strategic approach, and we look forward to building the TapouT brand.”
WWE hosts some of the most watched entertainment events to date. The mass exposure TapouT products could see can only benefit companies like AXXE. As the TapouT brand continues to expand its reach in the health and neutriceutical industry companies such as AXXE will have the potential to grow and expand with the product line. Axxess also has an existing partnership with Jay-Z’s Roc Nation Sports adding to the brand exposure related to sporting events and more specifically, high contact sports. AXXE has made many key announcements in 2015 including global expansion to China as well as expanding in the United States with AVT Inc. a North American builder and provider of vending machines. AVT currently has vending machines in several major chain stores and fitness centers throughout the United States and Canada.
Then there are bigger supplement and nutrition companies such as MusclePharm Corporation (OTCQB: MSLP) and GNC Holding Inc. (NYSE: GNC). MSLP is a scientifically driven; performance-lifestyle sports Nutrition Company recently announced a partnership with NBA team the Cleveland Cavaliers. MusclePharm Combat Crunch, a performance-tested, high-protein bar, will be the premier partner of the Cavaliers and the exclusive presenting partner of the “Fourth Quarter Combat Crunch Time” in-game feature during select playoff home games at Quicken Loans Arena. Over the last 30 days MSLP price is up 43.9%. On May 11th MSLP released it earnings and on May 19th the company released its Q1 2015 financials.
With the TapouT brand growing larger in 2015, it would come to stand that additional options for distribution could become available. GNC, for instance, is a global specialty retailer of health and wellness products. The Company has three segments: Retail, Franchise and Manufacturing/Wholesale and thus becoming a viable candidate for TapouT branded products.