Natural Alternatives International Inc (NASDAQ: NAII)

Natural Alternatives International, Inc. is a formulator, manufacturer and marketer of nutritional supplements operating in the health and wellness industry.

The company primarily provides private label contract manufacturing services to firms that market vitamins minerals herbal products and other health care goods to consumers in the United States and abroad.

It also commercializes its proprietary beta alanine ingredient under the CarnoSyn® SR CarnoSyn® and TriBsyn™ brands through raw material sales and licensing agreements.

Revenue comes from two main sources: private label contract manufacturing and royalty licensing plus raw material sales.

In the private label business the company manufactures capsules tablets chewable wafers and powders for customers who sell nutritional supplements through direct sales ecommerce and retail channels.

The royalty and raw material business generates income from the sale of beta alanine powder and from licensing the CarnoSyn® SR CarnoSyn® and TriBsyn™ trademarks to third parties.

The company operates through the following segments: Private label contract manufacturing and Royalty licensing and raw material sales.

• Private label contract manufacturing provides formulation development clinical study support production marketing assistance regulatory compliance and packaging services to customers that market nutritional supplements and health care products.

• Royalty licensing and raw material sales focuses on the distribution of beta alanine under the CarnoSyn® SR CarnoSyn® and TriBsyn™ trademarks through direct product sales and licensing agreements that generate royalties.

The company holds a niche position as a provider of comprehensive private label solutions backed by multiple GMP certifications and a patented beta alanine portfolio.

Competitors include other contract manufacturers and ingredient suppliers but the firm differentiates itself through its FDA TGA NSF and Health Canada approvals its clinical research capabilities and its ability to offer turnkey services from formulation to delivery.

These strengths enable the company to maintain long term relationships with customers in the direct sales ecommerce and retail sectors.

The company serves a diverse customer base that includes firms selling nutritional supplements through direct sales networks ecommerce platforms and retail stores.

Its private label customers are typically brands that outsource manufacturing while retaining control over marketing and distribution.

The royalty and raw material business sells to supplement companies ingredient distributors and formulators that incorporate beta alanine into their own products.