“Because of the unique challenges presented by Brazil as a market, the MuscleTech portfolio had previously been fairly limited,” said Juliano Victorino, CEO of Trust Group. “What this royalty agreement does is open up the ability to produce Brazil-specific SKUs that meet our country’s regulations and the immense demand for MuscleTech in Brazil at an affordable price point.”
The exclusive agreement, established under a turnkey royalty model, will allow MuscleTech to grow its Brazilian portfolio from four to over a dozen products.
Moving manufacturing in-country
Trust Group has distributed MuscleTech in Brazil since 2015 with access to rights and trademarks, but products were manufactured in North America. Moving production in-country overcomes import regulations and laws that favor highly developed local competitors and eliminates 30% to 35% import taxes—a cost previously passed on to consumers.
MuscleTech—founded in 1995, marketed by Canadian parent company Iovate Health Sciences and acquired by Chinese Xiwang Group in 2016—has developed distributor and retail partners in over 160 countries, manufacturing at several North American and other international facilities.
“We have found, across the globe, that when you have the ability to produce locally, it puts you in a position to compete much closer to the local competitive environment,” Al Masson, global sales director at Iovate Health Sciences, told NutraIngredients-USA.
While formulas and claims are adapted to meet local regulatory requirements and match flavors to local pallets, MuscleTech is strict about maintaining product quality and efficacy standards and follows the North American formulas as closely as possible.
“We have a very rigid standard that meets or exceeds all North American good manufacturing standards and fully vet all potential new manufacturers, including on-site audit visits, written questionnaires,” Masson added. “They must have local and International GMP accreditations, and we have a full and ongoing audit process.”
Products to be manufactured at the Trust Group facility include NitroTech, NitroTech 100% Whey Gold, CellTech, VaporX5, Hydroxycut Hardcore Elite, Platinum 100% Creatine, Platinum Multi-Vitamin, IsoWhey, Platinum Omega Fish Oil, Platinum Beta Alanine, Platinum 100% Glutamine, Clear Muscle and EuphoriQ.
Penetrating the Brazilian market
According to Grand View Research, the Brazil sports nutrition market was valued at $942.3 million in 2021 and expected to expand at a compound annual growth rate (CAGR) of 5.8% from 2022 to 2030. Leading local sports supplement players include IntegralMedica, Athletica Nutrition, Supley, Performance Nutrition, GDS Grow Dietary Supplements Do Brazil, Probiótica Laboratórios, BodyAction and VitaFor.
“When it comes to fitness, Brazil is one of the largest markets in the world (with more than 8,000 retail outlets), and due to regulatory hurdles, we haven’t been able to fully penetrate this key market,” said Scott Welch, associate director at MuscleTech. “By partnering with Trust Group, we are finally in a position to be able to make MuscleTech products widely available and bring new sports nutrition innovations to our Brazilian fans.”
The partnership put the agreement into action over the weekend at the Arnold Sports Festival South America edition in Sao Paulo, highlighting innovations like EuphoriQ Pre-Workout, a blend of Enfinity paraxanthine, Alphasize choline, NooLVL arginine silicate and Neurofactor coffee fruit extract.
Two-time International Fitness and Bodybuilding Federation (IFBB) Pro Show Champion and Team MuscleTech spokesperson Blessing “The Boogieman” Awodibu made an appearance, along with new products like Creatine Chews and limited-edition NitroTech Whey Gold Churros and Dulce de Leche.
Products made and manufactured in the Brazilian market are expected to hit shelves starting Q2 2024.
