Nutrisystem Explained

Nutrisystem, Inc.
Type:Subsidiary
Traded As:NASDAQ:
Foundation:1972
Founder:Harold Katz
Location City:Fort Washington, Pennsylvania
Location Country:US
Area Served:US and Canada
Key People:Stephen Mikulak, President
Products:Weight loss, weight management, nutrition
Services:Telephone, Internet and mobile counseling for weight control
Parent:Kainos Capital

Nutrisystem is a commercial provider of weight loss products and services headquartered in Fort Washington, Pennsylvania.

Company history

Nutrisystem's initial product in 1972 was a liquid protein diet, but the company changed its offering after Slim-Fast came to prominence in that market.[1]

The company originally offered weight loss counseling and products in brick and mortar centers, but in 1999, Nutrisystem moved to a direct-to-consumer business model, selling its products and programs on the Internet and by telephone.[2]

The company launched its mobile platform in 2010. WebDiet, Inc., a Silicon Valley startup, accused Nutrisystem of stealing their technology, but the case was dismissed in May, 2014.[3] [4] [5]

In 2015, the firm acquired the South Beach Diet brand.[6]

In December 2018, Tivity Health announced that it would acquire the Nutrisystem brand.[7]

On October 19, 2020, Kainos Capital acquired the brand from Tivity Health.[8]

In 2021, Stephen Mikulak was named President of Nutrisystem.[9]

The company is known for its celebrity marketing, which has included Marie Osmond in national advertising.[10] One of its primary competitors is Weight Watchers with the rivalry deemed "diet wars" by the media. [11]

Efficacy and criticism

A systematic review in 2015 concluded that Nutrisystem "shows promise" because, in the short term, studies have shown that Nutrisystem was more effective at weight-loss than a control group, but found no studies of long-term efficacy.[12]

, four weeks of a basic Nutrisystem plan costs the average American customer $274.99.[13] In light of this expense, the Mayo Clinic lists one of the disadvantages of the diet to be its potentially "prohibitive" cost.[14] Obesity specialist Fatima Cody Stanford writes that a potential disadvantage of the diet is that it complicates social eating because a person following the Nutrisystem plan has to follow a distinct dietary program.[13]

Notes and References

  1. Book: Gale Encyclopedia of Diets . Nutrisystem . 2 . 722–726 . Longe JL . 2008 . Gale Group.
  2. Web site: United States Securities and Exchange Commission Annual Report Form 10-K.
  3. News: Brandy . Shaul . Nutrisystem Launches Weight Loss Platform on IOS . AdWeek SocialTimes . 24 April 2015 . 18 May 2015 .
  4. News: Fair . Matt . Nutrisystem Accused of Stealing Rival's Diet Mobile App Technology . Law360 . 1 July 2014 . subscription . 18 May 2015 . live . https://web.archive.org/web/20150522013910/http://www.law360.com/articles/553644/nutrisystem-accused-of-stealing-rival-s-diet-mobile-app . 22 May 2015 .
  5. Web site: Webdiet Inc v. Nutrisystem Inc . 20 November 2020 .
  6. Web site: Hilario . Kenneth . 18 December 2015 . Nutrisystem acquires diet brand for $15M . 2019-11-27 . Business Journals.
  7. News: Hammond . Ed . 10 December 2018 . Tivity Health Plunges With $1.3 Billion Nutrisystem Deal . Bloomberg News . 2019-11-27.
  8. Web site: October 19, 2020. Tivity Health Announces Sale of Nutrition Business.
  9. Web site: PE-backed Nutrisystem names new President. 22 February 2021 . www.privateequitywire.co.uk/. 2021-08-16.
  10. Web site: Marie Osmond Shows off 50-lb Weight Loss and Tells Fans: 'Food is Not My Enemy Anymore' . 26 January 2023 .
  11. Web site: Weight Watchers (And Oprah) are winning the diet war . 28 February 2018 .
  12. Gudzune KA, Doshi RS, Mehta AK, Chaudhry ZW, Jacobs DK, Vakil RM, Lee CJ, Bleich SN, Clark JM . Efficacy of commercial weight-loss programs: an updated systematic review . Ann Intern Med . 162 . 7 . 501–12 . April 2015 . 25844997 . 4446719 . 10.7326/M14-2238 . Nutrisystem demonstrates better short-term weight loss than control/education and behavioral counseling; however, we identified no long-term trial results. We conclude that Nutrisystem shows promise, but the lack of long-term RCTs prohibits definitive conclusions..
  13. Book: Facing Overweight and Obesity: A Complete Guide for Children and Adults . Stanford FC . Stevens JR, Stern TA . Chapter 10: Weight-loss programs . 6 November 2018 . 127–128 . MGH Psychiatry Academy . 978-0-9991483-5-8.
  14. Web site: 6 June 2020 . Mayo Clinic . Weight loss: Choosing a diet that's right for you .