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21st Century HealthCare Inc.    

21st Century HealthCare, Inc. has made five shipments of vitamin supplements since February 2004, totaling close to $200,000 to Iraq through a local distributor, who has obtained 21st Century Healthcare products in Jordan in the past. Craig Rochette, director of international sales states, “there is a cosmopolitan sector of Iraqi society which is educated and aware of the growing popularity of our natural products. We have considerable distribution in the Mid-East, and combined with my familiarity of the region and personal relationships forged over several trips, we have cemented our distributor relations.”

Headquartered in Tempe, Arizona, 21st Century HealthCare, Inc. is one of the largest manufacturers of dietary supplements in the United States today. The company manufactures a full line of nutritional supplements, vitamins, minerals, herbal extracts and specialty formulations, from their corporate facilities in Tempe, Arizona using US raw materials, and packaging/labeling components.

21st Century HealthCare Inc. began operations in the US in 1991 as a marketer and distributor of the 21st Century brand of vitamins to the food, drug and mass marketplace. In 1994, 21st Century invested in direct manufacturing of vitamins under the 21st Century vitamins’ label under cGMP conditions. 21st Century vitamins can be found in over 50 countries and has ownership ties to 21st Century HealthCare companies in Australia, Singapore, Hong Kong, Malaysia, Thailand and Taiwan. All financial information includes USA only. 21st Century’s goal is to offer a high quality broad-based vitamin line in distinctive patented packaging at a value price to the food, drug and mass markets throughout the world.

Currently, 21st Century products can be found in over 15,000 retailers in the USA. 21st Century is currently distributed in the top three drug wholesalers including McKesson, CardinalHealth and Amerisource Bergen with consolidated revenues of over $150 billion with distribution to over 40,000 independent pharmacies across the USA. This is quite an impressive accomplishment as these drug wholesalers are very difficult to penetrate. In fact, we were honoured with a service aware from CardinalHealth this year. This is one of our core business plans and provides tremendous leverage as 21st Century is in over 5,000 independent pharmacies and growing at over 15 per cent per year. Brand building with the independent pharmacies is much safer than extending full product selections to the massive chains as with one decision the brand can be discontinued. But with over 5000 independent decision making customers, the brand enjoys a very stable and consistent growth pattern with the simplicity of shipping and billing on several distributors.

21st Century also sells to many of the top drug and grocery chains including Kroger, Target, Kmart, Rite Aid, Eckerd and Walgreens to name a few. Our strategy is sku specific so as to minimise investment while gaining brand equity to 1,000–5,000 chains stores with one order.

Our distribution strategy is to continue to pursue the major chains in a cautious and product specific method. 21st Century has invested in supporting the largest trade organisations, NACDS (National Association of Chain Drug Stores), CDMA (Chain Drug Marketing Association) and HDMA (Healthcare Distributors Marketing Association) over the past 10 years. This investment of over $150,000 in trade show fees annually keeps the 21st Century’s brand and our sales representatives in front of retailers representing over 50,000 retailers and over US$ 300 billion dollars in purchasing power. This has been a steep investment but the US market requires patience and persistence. Our investment has just recently begun to pay off with our expansion into nearly 100,000 square feet manufacturing and distribution facilities.

21st Century market strategy also includes selling supplements to the pet industry and in fact our 21st Century pet nutrition division is the exclusive manufacturer of the PetSmart control label. PetSmart is the world’s largest pet retailer in the United States.

21st Century also manufacturers various herbal teas, which is one of the fastest growing segments of business. We include the billion dollar chains such as Big Lots, Dollar General and other dollar stores as part of our tea distribution business.

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