Inergetics displaced Cytosport's Muscle Milk Print E-mail
By Staff and Wire Reports   
Monday, 18 July 2011 14:22
Inergetics (OTCBB:NRTI) (NRTID.PK), a stock we have been following for some time, effected its 80-to-1 reverse stock split last Friday, following its’ July 5th announcement that it will become the exclusive provider of all nutritional products for NCAA athletes at the United States Military Academy in West Point New York as of Fall 2011. 
We believe this impressive contract is the beginning of the Inergetics penetration into various institutions and organizations associated with the United States Armed Forces. 

In previous conversations with CEO Mark Mirken, he explained that the Company would penetrate the Armed Forces with the initial adoption in the “military academies” and that once the Company penetrated one academy, the other academies would be soon to follow.  Based on the competition nature of these academies, it would be highly unlikely that these academies would allow West Point to gain a competitive nutritional advantage.  Further, we believe – but cannot confirm, that Inergetics role as a nutritional provider to the Armed Forces will greatly increase moving forward. 

Mirken’s marketing strategy is starting to unfold.  In previous discussions, he conveyed that Inergetic’s strategy would be centered on third party use and validation.  We believe there isn’t a better stage to validate a nutritional product than with the United States Military Academies.   With this marketing differentiation, we expect product demand to materialize and believe that the Company is on the verge of penetrating big box retailers.  

The BMR investment thesis has always been focused on the Company’s proprietary nutritional products.  We believe that they are best of breed products and will become competitive advantages for the Company in the nutritional supplement space.  Inergetics displaced CytoSport’s Muscle Milk from supplying West Point.  This transaction coincides with The Food and Drug Administration issuing a warning letter to Muscle Milk maker Cytosport saying the dominant protein drink brand’s labels could be misleading to consumers. 

The agency’s concerns strike at the brand’s very core: the chief labeling issue is that the company’s RTD beverage is called “Muscle Milk” when it does not contain milk. The FDA also cited other nutrient content claims in a variety of Muscle Milk products, including its shakes and energy bars.  The FDA, which sent the notice on June 29, gave Cytosport 15 days to reply and outline actions to correct the violations. But there may be no simple remedy.  This seems like an opportune time for Inergetics to gain market share from the industry’s 800 pound gorilla. 

Most of the share-holders who have NRTI shares are locked up as brokers make arrangements to reflect the stock split accurately into those accounts. If the stock is to make a move higher, now may be the time, since selling will be minimized.

Inergetics' Surgex® is a clinically studied performance-enhancing formula designed to improve athletic performance through optimized recovery. 

The National Collegiate Athletic Association (NCAA) has specific rules about the use of certain amino acids or anabolic agents.  In fact, colleges and universities are prohibited from purchasing any product that contains amino acids or anabolic agents for athletes. This led to the development of the Surgex™ nutritional support formula.

Surgex® was originally designed to improve recovery parameters of professional and collegiate athletes in an effort to enhance their performance.  It is NCAA compliant, and has been tested and certified by the Banned Substance Control Group (BSCG) to contain no banned substances. 

Disclosure: Long NRTI

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