Ann: Investor Presentation, page-65

Nothing has been mentioned about NutSys real competition and that is

Bulk Nutrients - 50% or more cheaper to direct to consumer on like for like supplements. Exceptional reputation for quality and trust.
Amazon - growing in Aus, with massive expansion plans with cheap no name brands at half the price of NutSys imports
Ebay - always an issue and we see more new direct to market brands popping up at 50% the cost of a NutSys US import
MyProtein - grown over the past few years in Aus, direct to consumer at 50% of the price
iHerb - major issue due to being US based and stocking the same brands as NutSys. Some of NutSys imports on iHerb are priced high to protect. However, I can save myself 20-40% buying from iHerb and shipped to my door as quick as if it were from an Aus provider.

Reasons for stunted growth evolve around claims of parallel imports, companies not following TGA regulation and rouge suppliers. They've always been there, always been an issue but less than usual and it's not the reason for a 30-40% decline. Using this TGA crackdown as an assistive tool to imply these companies will disappear and it will benefit NutSys seems too convenient and it doesn't address the above problem.

I'm a bit out of the loop. I do see the online market of manufacturing then direct to consumer as being the main issue for NutSys and this isn't mentioned anywhere that I can see. I could be wrong but these guys are selling the same stuff for a fraction of the price.

On a positive note the brand portfolio for NutSys looks like it's the strongest they've ever had which may offset the slide and maintain the profits.