PlainView (the “Company”), founded in 1997, is a New Jersey based pharmaceutical company developing and marketing innovative health care products for the treatment of chronic physical ailments. The Company’s first product, DairyCare addresses lactose intolerance, offering significant performance and price advantages over the leading national brands. The DairyCare Lactose Intolerant Digestive Supplement is the only daily single dose digestive supplement for lactose intolerance, a disorder of sugar digestion, which provides consumers with sufficient lactase enzyme replacement for 24 hours without any side effects. The company generated over $1.3 million in sales from DairyCare in a New York area trial in the year 2000, during which the product captured 29% of the regional market for lactose intolerance products. DairyCare is patent protected.
DairyCare’s Market Lactose Intolerance is a digestive disorder of sugar metabolism affecting up to 70% of the world’s population, including more than 50 million Americans. The U.S. market for medications and products which are lactose free, e.g. milk, cheese, ice cream, etc. generates over $100 million in sales per annum with an annual growth rate of 8%. This condition is exacerbated by the fact that more than 20% of medicinal prescriptions contain lactose. To date, the trend has been toward the development of short-acting and expensive enzyme replacement products (from fungal extracts) that need to be taken with each meal or snack. The clear opportunity for significant growth in this category is for increased efficacy, improved convenience and attractive pricing for the consumer.
The Company’s marketing, sales, and distribution milestones to date are summarized as follows:
Products accepted into 39 major retail chains throughout the United States.
In the New York Regional Test Market, DairyCare secured 29% of market share and has expanded the category by 16%.
Nationally shipped purchase orders ending the fourth quarter of 2000 totaling $1.3M.
Contracts signed for international distribution to the Pacific Rim.
Contracts presently being negotiated for distribution into Chile.
Internet web site in presently being completely redone, with consistent quarterly sales growth from this channel.
All manufacturing is done under one facility and warehousing nationwide has been secured.
The successful introduction of the Company’s products in the diverse Regional New York Metro Market provides an ideal platform for national and international rollout of these brands. As the Company expands, research indicates that the consumer will need to be informed about the superiority of the product lines. This will be accomplished through a three tiered model by:
Multiple lines of distribution for the Company to be overseen by Channel Managers to ensure product penetration in each of several distribution sectors within the United States.
Internet positioning/education with expansion of services and marketing tools.
International Distribution with consumer marketing and detailing. Management does not foresee any legal obstacles in the marketing/advertising of either product as a digestive aid / food supplement.