In Episode 151 of the PricePlow Podcast, Mike and Ben sit down with Invoice Russell, CEO of Magnum Nutraceuticals, for an insightful dialogue on constructing a premium complement model in an more and more crowded market. Invoice, who acquired Magnum Nutraceuticals two years in the past, shares his distinctive journey from a buyer of the model to its chief. With a background in bodybuilding, well being, and personal fairness, Invoice was completely positioned to take Magnum to new heights, each in Canada and past. This episode delves into how Invoice has strategically reworked Magnum, positioning it as a world participant within the complement trade whereas sustaining its dedication to high-quality, science-backed merchandise.
Invoice begins by discussing the numerous modifications he made upon buying the corporate, together with some key logistics enhancements. Because the dialog progresses, Invoice dives into the science behind Magnum’s product improvement, particularly their flagship Quattro protein and its standout digestibility. Mike drinks a Vanilla Cherry Whip flavored Limitless X16 pre-workout all through, which makes for some enjoyable dialog as nicely.
From co-manufacturing processes to worldwide growth, Invoice discusses the complexities of scaling a premium model whereas guaranteeing constant product high quality. He shares his strategic imaginative and prescient for Magnum’s international attain, highlighting how the model has tapped into varied worldwide markets with custom-made product choices tailor-made to regional preferences.
Invoice ensures that Magnum is dedicated to long-term development pushed by science and premium formulations. Tune in to listen to Invoice’s actionable insights on model constructing, product improvement, and scaling success within the extremely aggressive complement trade.
0:00 – Introductions
Mike and Ben welcome Invoice Russell, CEO of Magnum Nutraceuticals, to the PricePlow Podcast to debate his acquisition of the corporate two years in the past. He explains that whereas he isn’t the founder, his background in bodybuilding, well being, and personal fairness made him an ideal match for Magnum, a premium Canadian model identified for its high-quality formulations.
After COVID, Russell reassessed his profession and, being a former Magnum buyer, noticed a possibility when the corporate sought new management and capital. By a gathering with the earlier proprietor, they agreed on a plan to develop Magnum past Canada, aiming to make it a world chief in delivering scientifically-backed, high-quality merchandise.
4:00 – Strategic modifications
Invoice discusses the strategic modifications he applied after buying the corporate. His preliminary focus within the first 90 days was assessing operations, product efficiency, and logistics. Recognizing the necessity for sooner distribution, Russell moved operations from a single warehouse in Surrey, BC, to partnerships with main logistics firms like Darwynn in Canada and PBD within the US. This improved supply pace and effectivity, very important in competing with e-commerce giants like Amazon.
He additionally strengthened inside groups in logistics and customer support, and expanded the gross sales crew by hiring trade veterans. Magnum is now targeted on each its wholesale companions and rising its direct-to-consumer (DTC) enterprise, recognizing the rising pattern of on-line buying within the complement trade.
9:00 – Co-manufacturing
Invoice discusses the challenges and techniques associated to increasing distribution throughout worldwide strains, notably to the U.S. He highlights the significance of getting a number of co-manufacturers (“comans”) in each Canada and the U.S. to make sure product availability and fast supply, particularly throughout instances of surprising development.
Invoice additionally talks in regards to the significance of taste profiles of their merchandise, noting that the corporate has developed distinctive and high-quality flavors, which they shield as commerce secrets and techniques moderately than proprietary components. Magnum works with a number of taste homes to create distinct tastes that set them aside out there, catering to varied client preferences.
12:00 – Acquisition due diligence
Invoice discusses the due diligence course of earlier than buying the corporate. He explains that Magnum supplied full transparency, and the acquisition took about six to seven months. The method concerned analyzing gross sales information, which was sophisticated by tendencies rising from COVID-19, comparable to elevated on-line purchases and residential exercises.
Mr. Russell famous the problem of figuring out which tendencies had been non permanent and which might final post-COVID. He emphasised that Magnum focuses on sustaining product relevance by refreshing taste profiles and formulations to satisfy client calls for. Whereas limited-time flavors are enjoyable, he believes long-term success comes from offering high-quality, science-backed merchandise that ship outcomes and guarantee repeat purchases.
16:30 – Quattro Protein
Invoice touches on the success of their Quattro Protein, which stands out within the extremely aggressive and low-margin protein market. Regardless of the crowded area, Quattro has turn out to be Magnum’s best-seller attributable to its superior digestibility, aided by added digestive enzymes. He emphasizes that many purchasers who wrestle with whey proteins attributable to bloating or fuel discover Quattro to be a novel answer that’s straightforward to digest and permits higher nutrient absorption.
This digestibility issue, together with its style, contributes to excessive buyer satisfaction and robust repeat purchases. Moreover, Magnum is targeted on incorporating novel components and maintaining with scientific analysis, led by a crew that evaluates the newest findings to make sure product innovation and efficacy.
19:45 – Optimizing merchandise
Invoice addresses how Magnum Nutraceuticals balances enterprise and science in a extremely commoditized complement trade. He emphasizes that whereas science is essential, the corporate focuses on optimizing merchandise moderately than merely maximizing outcomes. This method includes creating formulations that ship outcomes however stay accessible and fulfilling for shoppers, contemplating components like style, digestibility, and value.
Russell highlights Magnum’s dedication to increasing globally, with new merchandise like Whey 100 tailor-made to extra price-sensitive markets, comparable to Latin America. He explains that Magnum conducts in depth market analysis to cater to regional preferences, acknowledging that taste profiles can differ considerably throughout geographies. For instance, shoppers in Latin America are inclined to want sweeter merchandise. Magnum’s technique additionally contains providing staple flavors like chocolate and vanilla, which proceed to carry out nicely attributable to their versatility, whereas experimenting with distinctive spins to enchantment to various markets.
28:30 – Logistics and distribution
Invoice explains how Magnum manages its logistics and distribution, particularly when working with third-party logistics (3PL) suppliers. He emphasizes the significance of sustaining sufficient stock throughout varied areas to make sure well timed supply to international markets. With using superior know-how, together with new demand planning software program and robotics in warehouses like Darwin, Magnum can optimize stock administration and cut back product stagnation. Whereas 3PLs provide technological developments that streamline the method, guide intervention is typically required from Magnum’s inside logistics crew to regulate and direct shipments, particularly for worldwide markets. Russell additionally highlights that completely different distribution companions, like S&D, Europa Sports activities, and Sport Life, function underneath varied fashions. As an illustration, S&D holds vital stock at their Miami warehouse to serve their shoppers rapidly, guaranteeing product availability and quick achievement to small communities throughout Latin America.
32:45 – Worldwide growth
Invoice explains the method of increasing internationally whereas managing threat and expectations. He emphasizes the significance of endurance in increasing to new markets, guaranteeing that every step is completed correctly to keep away from unhealthy buyer experiences. Moderately than speeding development, Russell prefers a structured method, slowly bringing on new companions and increasing distribution over a number of years. He additionally touches on the significance of leveraging ambassadors and influencers to construct model presence globally, particularly as youthful generations interact extra with health via platforms like TikTok.
As a CEO, Russell enjoys studying about new applied sciences and tendencies, however entrusts youthful crew members to handle the model’s presence on social media and digital platforms. He acknowledges the altering panorama of promoting, noting that conventional strategies have been changed by extra dynamic and digital methods.
38:00 – Not all about tendencies
Ben and Invoice proceed their dialogue of the evolving health panorama, noting the shift towards a youthful demographic pushed by social media tendencies. Russell acknowledges this pattern however emphasizes that Magnum Nutraceuticals focuses on long-term worth and high quality moderately than short-term tendencies. He explains that Magnum’s premium merchandise, backed by science, enchantment to clients prepared to put money into their well being. Whereas they don’t seem to be concentrating on the youngest viewers or the trendiest social fads, they purpose to develop each upwards and downwards from their core bodybuilder demographic, together with youthful health fanatics and older people targeted on longevity and wellness.
Russell additionally highlights how health is now extra accessible to all ages, from teenagers within the health club to child boomers partaking in actions like pickleball. He sees the present health neighborhood as inclusive and supportive, with influencers starting from 16-year-olds to older adults all contributing to a rising wellness tradition.
44:00 – Magnum merchandise
The group returns to Magnum’s common Quattro protein, which contains a mix of various protein isolates, together with whey, casein, and egg protein. The feel and digestibility of Quattro make it a favourite amongst shoppers, with ladies barely outnumbering males in purchases attributable to its ease on the digestive system. Russell additionally explains the acquisition of the espresso protein product ÄRA, which was built-in into Magnum. ÄRA is designed to combine seamlessly with scorching drinks with out degrading the protein, offering shoppers with a dependable 10 grams of protein per serving.
He notes that whereas the espresso protein market is area of interest, it presents vital potential for growth into grocery and comfort retailer channels. He additionally discusses ideas for utilizing ÄRA in scorching drinks and the varied SKUs, together with flavored and unflavored choices. ÄRA’s versatility permits it for use with espresso, tea, scorching chocolate, and even milk, catering to a broad viewers of espresso fanatics and people trying so as to add protein to their drinks with out altering the flavour.
51:30 – Mass-market
Invoice discusses Magnum Nutraceuticals’ potential entry into mass-market retailers like Walmart. Whereas the model acknowledges the chance in such channels, Russell emphasizes that they won’t compromise on product high quality or premium positioning to enter these markets. He highlights the significance of sustaining the model’s worth and concentrating on the appropriate shoppers. Russell additionally displays on Magnum’s previous presence at main occasions just like the Olympia and shares plans to develop the model’s attain throughout completely different communities and health phases, focusing not simply on bodybuilding however on a broader well being and wellness market.
He mentions his family’s use of Magnum’s merchandise, showcasing their enchantment to a large viewers. Lastly, Russell confirms that Marcus, Magnum’s former proprietor, has been absolutely purchased out and has moved on to different ventures, whereas Russell and his crew proceed to develop the model.
55:00 – Goodbyes
Invoice expresses gratitude for collaborations with varied distributors and retailers like SportLife, which have been instrumental within the model’s success. Mike compliments the “Limitless X16” pre-workout, highlighting its nice tingly results from beta alanine and niacin, whereas Invoice shares a humorous buyer assessment that described the expertise as feeling like a “honey badger at a rave.”
In addition they talk about future product launches, together with a sport model of X16, a brand new Whey 100 protein, a global gainer, and a long life complement coming within the subsequent yr. Russell emphasizes Magnum’s ongoing growth, with a deal with rising their digital presence and additional penetrating worldwide markets.
Thanks very a lot to Invoice for getting us in control on Magnum and instructing us a factor or two in regards to the worldwide sport. We look ahead to attempting the brand new merchandise popping out!