A mature bull market is driven by “themes”.
Investors flock to stocks attached to themes as they become hot and catch increasing attention online and in the financial media. Some are hot for a week; some, for a month; and some, for season or more.
However, occasionally, themes gain traction that appear set to transcend the cyclicality of bull and bear markets because they are tied to deeply rooted trends in culture. Waves and ripples rise and fall, but tidal forces shape the context on a deeper level and hold the potential for far more sustained investment returns.
One such transcendent theme that appears to be emerging right now is the Healthy Living theme. This is a natural offshoot of mounting advances in biomedical research and rising healthcare costs, both of which lead to increased attention on prevention of poor health. Maximizing that axis leads naturally to lifestyle trends centered on optimal health and well-being.
And this isn’t going to fade out. It’s only going to grow. Hence, investors may benefit from allocation to stocks like USANA Health Sciences Inc (NYSE:USNA), Herbalife Nutrition Ltd (NYSE:HLF), Torque Lifestyle Brands Inc (OTCMKTS:TQLB), Celsius Holdings Inc (NASDAQ:CELH), and The Simply Good Foods Company (NASDAQ:SMPL).
Spotlight: Torque Lifestyle Brands Inc (OTCMKTS:TQLB)
Given the thesis laid out above, TQLB is particularly interesting because it is flying almost completely under the radar at this point due to the fact that it just ramped up over the past 4 months, and really only began commercial-stage activity in March.
However, don’t let the new-ness of the name confuse you: the company’s main brand is well-established and could emerge as a leader in the space.
And it is already rapidly expanding.
In February, Torque Lifestyle Brands Inc (OTCMKTS:TQLB) acquired American Metabolix (AmericanMetabolix.com), one of the world’s fastest growing supplement companies, with sports nutrition and Keto products available at GNC, Bodybuilding.com, and top sports nutrition retailers worldwide, with product sales across 550 brick and mortar locations in multiple countries, including the United States, New Zealand, Australia, and Russia, among others.
The company has also already signed social media superstar Mariam Olivera as a key influencer helping to promote American Metabolix products.
Olivera has more than 2.3 million social media followers and fans across multiple platforms, including more than 1.9 million followers on Instagram, where she has cultivated a stunning 7.11% engagement rate – according to Digitalmarketingcommunity.com, the average Instagram engagement rate by audience is 1.22%.
Leveraging that distribution footprint, expanding awareness, and operational experience, TQLB has already launched two additional brands.
Core Natural Sciences (www.corenaturalsciences.com), a brand of nutrition and health supplements designed to execute into high growth Affiliate Marketing platforms as well as utilizing Social Media Influencers, launched in early March.
“Core is differentiated in our branding by its focus on the 45-and-up demographic and we feel this is prime for an Affiliate Marketing Roll-out. Growth via these sales channels is incredibly impressive and the Company will immediately begin to execute on this strategy,” commented Leonard K. Armenta Jr, President of Torque Lifestyle Brands Inc (OTCMKTS:TQLB).
NFL Network superstar Brian Baldinger has already signed on as a key brand ambassador for Core Natural Sciences
Torque Lifestyle Brands Inc (OTCMKTS:TQLB) followed that by launching its Storm Lifestyles brand (www.Stormlifestyles.com) last week.
Storm is a line of sports nutrition and fitness lifestyle products targeting the under-35 demographic that features apparel, sports nutrition beverages, pre-workout supplements, post-workout recovery aids, vegan muscle recovery supplements, and fat burning supplements, among other products.
According to the company, Storm products will be sold both through direct-to-consumer e-commerce channels and physical store distribution.
Armenta Jr noted, “Storm attacks a thriving and very exciting facet of the larger sports nutrition, supplement, and fitness lifestyle marketplace. Younger people are increasingly attached to the healthy lifestyle brand profile, to treating their bodies well, and to optimizing through products that help them reach their nutrition and fitness goals. Storm also allows us to diversify in terms of target market while leveraging our built-in distribution, marketing, and product sourcing edge.”
The Bottom of the Hockey Stick?
Torque Lifestyle Brands Inc (OTCMKTS:TQLB) is laser focused on the sports nutrition supplements market with a range of segments that create a diversified end-market focus in terms of demographics while embracing synergies across manufacturing and distribution strategies. That effectively widens margins above standard assumptions for the space.
And it is a very good space to be in these days, with even brighter times ahead.
According to Grand View Research, the global dietary supplements market size was estimated at over $123 billion in 2019 and is projected to expand at a CAGR of 8.2% over the next 7 years, driven by factors such as rising health concerns and changing lifestyles and dietary habits.
Research also points to a positive outlook for the sports nutrition market driven by a rise in the number of sports complexes and gymnasiums and an increase in the number of global sports events, both of which encourage athletes and consumers to focus on peak health and physical strength.
As noted at the outset, the healthy living theme is a long-term, robust cultural trend that is only going to get stronger over coming quarters and years, and TQLB, with its tiny $3.6 million market cap despite its highly developed strategy and growing commercial scale, is firmly tethered to that trend.