TrimSpa in trouble after Smith's death

Marketing experts say TrimSpa's close association with its spokeswoman could spell disaster for the business.

NEW YORK (CNNMoney.com) -- The death of sassy spokeswoman Anna Nicole Smith coupled with growing doubts about TrimSpa's controversial slimming products may prove too much for the closely held company, marketing experts said Thursday.

"Given the double whammy of who their spokesperson was and the other tangential difficulties, I don't think they're going to come back," said Robert Passikoff, a New York brand consultant.
Anna Nicole Smith had been a spokeswoman for TrimSpa since 2003.

Passikoff said news that Smith died in Florida Thursday could spell disaster for the small business.

In fact, TrimSpa had suffered from sinking sales figures for the past three years. Right after Smith came on board, TrimSpa sales ballooned 172 percent to $43 million in 2004 from close to $16 million in the year earlier.

But by 2006, sales had shrunk to $19.5 million, according to Information Resources, Inc., a data-tracking firm.

A spokeswoman for TrimSpa said the company did not know if Smith was taking the slimming pill, which does not require a prescription, at the time of her death.

Authorities said they retrieved a "large amount" of prescription medicine from Smith's hotel room, according to CNN.

"The company was in trouble with or without Anna Nicole," said a source familiar with the company.

"When you mention TrimSpa, the image that came to mind was Anna Nicole Smith and that's the difficulty with being so closely tied to a celebrity," Passikoff said.

"You've just pulled the rug out from under what the brand was standing on," he added.

The former Playboy Playmate and reality TV star became a spokeswoman for TrimSpa in October 2003, after losing a reported 60 to 70 pounds.

But Smith and TrimSpa have faced repeated legal difficulties over allegations that advertisements for the slimming pills were misleading.

"It's a matter of making reasonable and moderate claims that are backed by real substantiation," said Ralph Fucetola, former lawyer for the company.

Last month, the Federal Trade Commission said it fined the marketer of TrimSpa and other over-the-counter slimming drugmakers $25 million for false advertising.

The government agency said that the company's weight control claims were not supported by scientific evidence.

"While TrimSpa disagreed with the FTC it made a business decision by consenting to a $1.5 million payment in order to end the FTC's over two-year investigation," a spokeswoman for TrimSpa told CNNMoney Friday.

The company still contends that its slimming pill, along with diet and exercise, can yield successful results.

"TrimSpa has some major challenges given the loss of credibility about their product and [now] losing their spokesperson," said Britt Beemer, the chairman of strategic marketing firm America's Research Group.

"It's a one-two punch and it does damage their marketing position dramatically."
TrimSpa, which is owned by privately held Goen Technologies, is based in Cedar Knolls, N.J.
TrimSpa founder Alex Goen expressed regret at Smith's death.

"Today, Anna Nicole Smith's grief-stricken and tumultuous personal life came to an end. Anna came to our company as a customer, but she departs it as a friend," Goen said in a brief statement.

"While life for Anna Nicole was not easy these past few months, she held dear her husband, Howard K. Stern, her daughter, Dannielynn Hope, her most cherished friends, beloved dogs, and finally, her work with TrimSpa," he said.

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Fake slimming pills - Xenadrine EFX

Consumers who bought Xenadrine EFX slimming pills expecting to lose weight will get refunds of up to $30, the Federal Trade Commission said Monday.

The government isn't requiring you to prove that you bought the pills.

You do have to sign and mail a form swearing, under penalty of perjury, that you bought Xenadrine EFX between Feb. 1, 2002, and May 22, 2006, and were not satisfied with it.

Promoters of the slimming pill advertised heavily on TV and in People, TV Guide, Men's Fitness and other publications. The ads claimed the slimming pills caused rapid and substantial weight and fat loss, without dieting or exercise.

Some customers claimed to have lost more than 100 pounds. The FTC says they were paid up to $20,000 for their testimonials.

According to the FTC, promoter Robert Chinery Jr. commissioned several studies of the slimming pills, none of which showed substantial weight loss. One study showed an average loss of 1.5 pounds over 10 weeks, while those who took placebos lost an average of 2.5 pounds.

A 120-tablet bottle — a one-month supply — sold for about $40. Sales topped $160 million.

The amount of refund per consumer depends upon how many others apply. Depending upon the number, the promoters will pay between $8 million and $12.8 million to settle the FTC's complaint.

The settlement bars the promoters from making any health claims not substantiated by scientific evidence.

Download the claim form at http://www.xenadrineefxsettlement.com/ or call 1-800-560-6435. The deadline is Sept. 15.

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Many doctors are not loyal to Alli

The recent debut of Alli, the first over-the-counter slimming pill approved by federal regulators, no doubt has some dieters dashing to drugstores and supermarkets. But shortly thereafter, critics warn, they'll be dashing to the bathroom.

Alli is a lower-dose version of the prescription drug Xenical, which blocks about 25 percent of fat from being absorbed into the body by attaching itself to fat-dissolving enzymes. Problem is, the unabsorbed fat then may exit forcefully and frequently.

"We have the makings of some very embarrassing moments," says Jeffrey Novick, nutrition director for the Pritikin Longevity Center & Spa in Aventura. "This is not new news. Just old news repackaged."

Dr. Andrew Larson, bariatric surgeon at JFK Medical Center in Atlantis, isn't an Alli fan, either.

"I think it's going to be a total flop," he says. "Some people might expect a little buzz, like you'd get with Dexatrim or other diet pills. But with this, you're not going to feel anything — except the side effects."

Alli literature states: "While no one likes experiencing treatment effects, they might help you think twice about eating questionable fat content. If you think of it like that, Alli can act like a security guard for your late-night cravings."

An article in last week's Wall Street Journal, meanwhile, gives potential buyers some math to chew on:

A half-cup serving of Häagen-Dazs ice cream has about 320 calories and 19 grams of fat. Alli, which is taken with meals, would stop the body from absorbing about 4.75 fat grams or about 43 calories.

If you consume 2,000 calories a day and eat 30 percent fat, the fat-blocking benefits of Alli would translate to approximately 150 calories a day. A pound of weight loss equals 3,500 calories.

Critics insist that if you're committed to healthier eating and exercise, like Alli recommends, you don't need the drug.

"Why bother?" says Dr. Kenneth Woliner, a family practitioner in Boca Raton. "The only advantage of this pill is if you can't stop yourself from eating regular cheese or the skin off a chicken. You'll quickly regret it. But if you cut out the fat, you're doing what you need to do anyway."

Xenical (generically known as orlistat) has been available in 120-milligram pills since 1999, with prescriptions falling from 1.5 million in 2002 to 623,000 four years later. GlaxoSmith Kline acquired the over-the-counter rights from Roche in February and spent $150 million aggressively marketing Alli, which hit stores June 14.

There's an Alli book, Are You Losing It?, with diet tips and low-calorie recipes. And www.myalli.com offers a message board and personalized action plan.

GlaxoSmithKline says dieters can lose 50 percent more weight with Alli (pronounced AL-eye) than with dieting alone. The 60-milligram pill, taken three times a day, doesn't suppress appetite or affect the brain.

But doctors are concerned that Alli, approved by the U.S. Food and Drug Administration for adults 18 and older, also may block absorption of fat-soluble vitamins, such as A, D, E and K.

"Low vitamin D can push you toward dry skin, psoriasis, depression and cancer," Woliner says, adding that the drug doesn't distinguish between "bad" fats and "good" ones, such as the essential fatty acids found in fish oil.

Insufficient vitamin D also may raise the risk of brittle bones, gum disease and diabetes.

Woliner predicts that consumers will buy Alli only once or twice, which still means a hefty payday for GlaxoSmithKline.

Walgreens and CVS, for example, charge $49.99 for a 60-pill starter pack and $59.99 for 90 pills. Publix charges $46.99 for the starter pack and $69.95 for 120 pills.

"I don't think it's going to be a success," Larson says, advising people to eat more fiber and choose healthier foods instead. "I personally don't like it at all. It's a weak pill."

Via www.palmbeachpost.com

FDA sets new rules on dietary supplements

The U.S. Food and Drug Administration announced Friday that manufacturers of vitamins, herbal pills and other dietary supplements would have to test the ingredients of all their products for safety and purity.

The new standards follow concerns that existing regulations are too weak in that they allow supplements on the market that were contaminated or whose ingredients didn't match claims made on the label.

But while the rules may strengthen enforcement in these areas, some experts say that the real question is the effectiveness of these products.

"This final rule establishes industrywide standards," said Robert Brackett, director of the center for food safety and applied nutrition at the FDA, in a press conference this morning. "Consumers should have increased confidence that the dietary products that they purchase are safe."

Published in an 800-plus page report, the regulations set so-called good manufacturing processes for the 29,000 dietary supplement products currently on the market -- including vitamins, minerals, botanicals, sports nutrition supplements, weight loss supplements and specialty supplements.

The supplement makers will have to test the ingredients of all their products for purity, and accurately report ingredients on their labels.

Before his, supplements fell under the same regulatory guidelines used for food. But according to the FDA, regulating supplements in this way missed some critical problems.

"[The final rule] tries to be more specific about regulating the processes used to make diet supplements, which are quite different from the way you process food," said Vasilios Frankos, division director of the office of dietary supplements at the FDA.

The requirements also apply to imported supplements manufactured outside the U.S. Enforcement of the new guidelines begins Aug. 24.

"The aim is to prevent the wrong ingredients getting into supplements," said Frankos. The regulations also try to prevent contamination of supplements as well as the accidental inclusion of pesticides, glass or heavy metals like lead.

Fable-Free Labels

"These new regulations will at least take the quality issue off the table," says Dr. Brent Bauer, director of the complementary and integrative medicine program at the Mayo Clinic. "If a patient wants to try ginseng, they can be assured that when they purchase a ginseng brand that claims to have 5 percent ginsenosides, they will know that is what they are getting."

Via abcnews.go.com