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Brand specialization by channel. Consumer brands in the supplements category tend to be dedicated to a specific channel, with little or no crossover to other channels (e.g. Solgar in specialty retail, Centrum in FDM, Herbalife in MLM). This makes supplement brands difficult to grow beyond the confines of one channel and entrenches the current fragmentation of essentially similar brands. Functional foods do not have this problem, since they are sold almost exclusively in the massive FDM channel. |
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