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NutriSystem Enters Express Market with Slim and Tone

HORSHAM, PA — Another diet company is moving into the health club industry. While LA Weight Loss began opening clubs a few years ago, NutriSystem is now entering the market with its purchase of Slim and Tone, a franchise of 126 express fitness centers. NutriSystem provides weight management and fitness products and services.

“We just completed a six-month marketing test with Slim and Tone that indicated that the Slim and Tone network has the potential to grow rapidly and serve as an effective distribution channel for the NutriSystem Nourish weight loss program. We like the Slim and Tone business because it has similar financial characteristics to ours, including high growth, profitability and little need for capital expenditures,” said NutriSystem CEO Michael Hagan.

Betsy Ludlow, founder and president of Slim and Tone, will remain with NutriSystem as the president of the Slim and Tone division.

“Both companies serve the same consumers, weight-conscious women, and both emphasize value, convenience and success to the consumer,” said Ludlow. “With all of the fad diet and fitness programs out there, it is refreshing to find a partner who is also dedicated to overall health and wellness.”

America's Weight Loss Efforts in 2004

49% of American adults tried to lose at least 5 pounds

65% of health club members tried to lose weight

19% of nonclub members were “very” or “extremely” successful in reaching their weight-loss goals

25% of health club members were “very” or “extremely” successful in reaching their weight-loss goals

30% of health club members that visited their club 100 or more times a year (a frequent user) were “very” or “extremely” successful in reaching their weight-loss goals

Source: American Sports Data's annual
Superstudy of American Sports Participation

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