As the cold and flu season comes around the corner, it’s expected that many Canadians will be taking supplements to beef up their immune systems to combat the nasty bugs that are ready to be unleashed. Nobody wants a cold or the flu, but we all know if a family member gets it, then we’re likely next.
Fortunately, there is a way to profit from one of the grossest times of the year!
Jamieson Wellness Inc. (TSX: JWEL) is a vitamin, mineral, and health supplement manufacturer that has been in business for nearly a century. It’s the go-to brand when it comes to supplements, as many Canadians gravitate towards Jamieson’s green-cap bottle when they’re at the health and wellness section of the grocery store. Jamieson is a trusted brand that’s loved not just by Canadians, but in various international markets as well.
The company recently had its IPO earlier this year. Although I’m not a fan of investing in stocks that haven’t been public for at least three years, I think Jamieson is a worthy exception because of the fairly predictable nature of the business in addition to many medium- to long-term catalysts that could send the stock flying to much higher levels.
Jamieson’s new cold and flu product could send sales flying
Back to the cold and flu season. It’s like the next market correction: everyone dreads it, but it’s coming whether you’re ready or not. Jamieson Wellness is releasing a new cold and flu product called “Cold Fighter” to help Canadians prepare for the upcoming sick season.
Do you feel like you’re starting to come down with something? The Cold Fighter chewable is marketed to fight early signs of cold and flu symptoms in addition to relieving cold symptoms if you’ve already got the full-blown cold. Taking the chewable once per day is also marketed to reduce the duration of colds.
I don’t know about you, but this product sounds like a must-have for every medicine cabinet out there. I think the product will be one of Jamieson’s top sellers for the fall season, and that could mean a nice bump to the company’s third-quarter numbers.
Baby boomers are getting older and need more supplements
Another gradual long-term tailwind lies in the baby boomer generation, which is expected to be a gigantic consumer of vitamins, minerals, and other supplements. The Canadian vitamin industry was worth ~$431 million last year and going forward, it’s expected that it’ll be worth even more as baby boomers continue to age. Jamieson has a dominant position in the Canadian vitamin market, but there’s still a lot of room to run, and as the company releases new products like Cold Fighter chewables, I believe the company is setting itself up to be a behemoth which could control more than half of the Canadian vitamin market in a few years (Jamieson controls about a quarter of this market today).
Bottom line
Jamieson is a wonderful business with a respected brand, a promising growth profile, and several tailwinds to be excited about. Although the stock is just a few months off its IPO, I think investors would be wise to accumulate a position gradually over time to get some skin in the game.
Stay smart. Stay hungry. Stay Foolish.
