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Vitacost.com, Inc. is an American e-commerce company based in Boca Raton, Florida, that sells vitamins, supplements and organic grocery products.[2] The company was bought by Kroger in 2014.[3] Vitacost was inducted into Inc Magazine's "Inc. 500 Lifetime Hall of Fame," in 2006 as one of the US's 500 fastest-growing privately held businesses for five consecutive years (2001–2005).[4]

Key Information

History

[edit]

Vitacost began operations in 1994 as a catalog retailer of third-party vitamins and supplements under the name Nature's Wealth Company by its founder Wayne Gorsek.[5]

In 1999, the company launched Vitacost.com and introduced proprietary vitamins and supplements, which has since expanded to include food, beauty products and sports nutrition.[2]

The company completed construction of a manufacturing facility located in Lexington, North Carolina, in 2008.[6] Effective September 1, 2012, Vitacost agreed to lease its manufacturing facilities to a third-party provider.

On September 23, 2009, Vitacost went public.[7][8]

Vitacost shares traded on the NASDAQ were suspended on December 7, 2010, for financials not adding up. By the time the stock was reinstated by NASDAQ, the stock had lost most of its value with investors losing almost all of their investment. ("Gebben").[9]

During 2010, the company expanded and upgraded its West Coast distribution facility located in Las Vegas, Nevada. The Company began a similar project for its east coast distribution center, located in Lexington, North Carolina in the spring of 2010, with the building construction completed in the first quarter of 2011.[citation needed]

Gorsek was found guilty of securities fraud on January 28, 2003. The SEC Commission announced on this day that the Honorable Jeanne E. Scott, U.S. District Judge for the Central District of Illinois, has found two former brokers and stock promoters, Wayne F. Gorsek ("Gorsek") and Lyndell F. Parks ("Parks"), liable for violating the antifraud provisions of the federal securities laws and has enjoined them from further violations of Sections 17(a) and (b) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Exchange Act Rule 10b-5. Judge Scott also imposed additional sanctions against defendants Gorsek, Parks and P. Brenden Gebben.[citation needed]

In October 2012, Vitacost.com launched a cruelty-free specialty store showcasing beauty and personal care products that are independently certified by the Leaping Bunny Program, which is operated by the Coalition for Consumer Information on Cosmetics.[5][10]

In 2013, Vitacost released several new product lines, including a new sports nutrition line, ARO: Black Series,[11] which includes pre- and post-workout formulas, protein powders, flavored glutamine, creatine and branched-chain amino acids.

Kroger announced in July 2014 that it would purchase Vitacost.com for $280 million.[3] The acquisition was completed in August 2014.[12]

Reception

[edit]

In 2017, the company received two awards from the ConsumerLab.com Survey for Top-rated Supplement Brands on Overall Consumer Satisfaction and Top-rated Supplement Merchants on Overall Consumer Satisfaction.[13]

References

[edit]
[edit]
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Vitacost

View on Grokipedia
from Grokipedia
Vitacost.com, Inc. is an American e-commerce company specializing in the online retail of vitamins, dietary supplements, organic groceries, natural personal care items, and other health and wellness products. Headquartered in Boca Raton, Florida, it operates as a subsidiary of The Kroger Co., focusing on providing high-quality, natural, and eco-friendly options at competitive prices with an emphasis on customer service. Founded in 1994 as a catalog-based retailer of third-party vitamins and supplements, Vitacost transitioned to an online model and went public in 2009 before being acquired by in August 2014 for approximately $280 million, or $8 per share. The acquisition allowed to expand its digital presence in the natural and organic product sector, with Vitacost continuing to manage its operations independently from its facilities. Vitacost offers products from over 400 national brands alongside its own private-label line, covering categories such as , gluten-free foods, herbs, and beauty essentials, with a commitment to and wellness for a broad customer base. The company has been recognized for excellence, including a award, and primarily serves the North American market through its website, vitacost.com.

Overview

Founding and Early Operations

Vitacost was founded in by Wayne Gorsek as Nature's Wealth Company, initially operating as a catalog-based retailer specializing in third-party vitamins and dietary supplements. The company's early focus was on mail-order sales of health products sourced from external manufacturers, without developing any proprietary branding at the outset. This model allowed Nature's Wealth to tap into the growing demand for nutritional supplements through catalogs distributed nationwide. In 1999, the company underwent a significant transition by launching Vitacost.com, establishing itself as an platform and shifting from traditional catalog sales to online retail. This pivot marked a key evolution in its business strategy, enabling broader accessibility to customers seeking discounted health and wellness products via the . At the time, operations were centered in , where the headquarters served as the hub for managing the new digital infrastructure and processes.

Current Status and Ownership

Vitacost operates as a wholly-owned subsidiary of , following its acquisition in August 2014 for $280 million. The company maintains its independent branding and platform focused on health and wellness products, while benefiting from Kroger's broader resources. Headquartered in , Vitacost employs approximately 800 people as of 2025. Its operations remain distinct but integrated into Kroger's ecosystem, with Vitacost contributing significantly to the parent company's digital sales in the health and wellness category; for instance, Vitacost generated $852 million in revenue in 2024, supporting Kroger's overall growth of 16% in the second quarter of fiscal 2025. Vitacost plays a strategic role in Kroger's expansion of and wellness offerings.

History

Pre-Online Era and Launch

Vitacost was founded in May 1994 as Nature's Wealth Company, a catalog-based retailer specializing in third-party vitamins and dietary supplements. Operating initially through mail-order catalogs, the company built an early customer base by offering affordable products directly to consumers. In 1999, it rebranded to Vitacost.com and launched its platform, marking a pivotal shift to a online model. The introduced proprietary label products under the NSI brand alongside an expanded selection of third-party brands, enabling customers to access a broader catalog of and wellness items at competitive prices. This launch capitalized on the burgeoning retail sector, allowing Vitacost to diversify its offerings in vitamins, minerals, and supplements while building an initial customer base through targeted online marketing. Following the 1999 debut, Vitacost experienced rapid revenue expansion driven by catalog growth and increasing online adoption. Net sales rose from $29.6 million in 2004 to $41.5 million in 2005, reflecting a of approximately 48% over the subsequent years as the company scaled its product assortment to over 20,000 items by the mid-2000s. The active customer base also grew significantly, reaching approximately 270,000 by the end of 2005, supported by repeat purchase rates that underscored early loyalty in the health supplement niche. By the early 2000s, Vitacost had established itself as a key player in supplement retail, with revenues continuing to climb to $66.4 million in through enhanced website functionality and broader product diversification into related wellness categories. This period of initial growth laid the foundation for sustained expansion, as the company leveraged its proprietary and third-party inventory to meet rising demand for affordable, direct-sourced health products.

Expansion and Financial Milestones

In 2008, Vitacost expanded its operational capabilities by completing construction of a 112,000-square-foot manufacturing and distribution facility in , enabling in-house production of its proprietary products. This move supported growing demand for its nutritional supplements and wellness items, marking a significant step toward in the health sector. On September 23, 2009, Vitacost went public with an on , pricing 11 million shares at $12 each and generating approximately $132 million in gross proceeds, of which the company received about $47.7 million in net proceeds after discounts and expenses. The funds were primarily allocated to repayment, , and capital expenditures to fuel further growth. However, by December 7, 2010, suspended trading of Vitacost's shares due to identified material weaknesses in internal controls over financial reporting, which rendered prior unreliable and prompted an internal investigation. Facing ongoing financial scrutiny and delisting risks, Vitacost underwent a major in 2011, merging with a wholly owned on September 28 to address accounting irregularities from its pre-IPO period. This process eliminated all outstanding , reducing liabilities to approximately $37 million, while bolstering liquidity to around $40 million in cash and securities, positioning the company for recovery without resorting to formal proceedings. In , as part of cost-optimization efforts, Vitacost shifted its proprietary product manufacturing to third-party vendors and announced plans to lease out its Lexington facility, allowing focus on core operations amid competitive pressures in the supplement market. That , the company launched a dedicated cruelty-free storefront featuring independently certified beauty and from brands like Avalon Organics and , responding to consumer demand for ethical options in wellness retail. By 2013, Vitacost introduced the ARO: Black Series, a new proprietary line including protein powders, pre- and post-workout supplements, and fat burners, aimed at capturing the growing demand for performance-enhancing products. This expansion diversified its offerings and supported revenue growth in a challenging economic environment, setting the stage for strategic partnerships ahead of its 2014 acquisition.

Acquisition and Post-Merger Developments

On July 2, 2014, announced a definitive merger agreement to acquire Vitacost.com, Inc., through a for all outstanding shares at $8.00 per share in cash, valuing the deal at approximately $280 million. This represented a 51% premium over Vitacost.com's closing share price on February 19, 2014, prior to the company's announcement of financial restatements. The acquisition was completed on August 18, 2014, following the successful in which 86.68% of shares were tendered, with the remaining shares acquired through a short-form merger under law. Vitacost.com's common stock ceased trading on the Global Market effective that day and was delisted. As a wholly owned of , Vitacost.com continued operations from its existing facilities, including fulfillment centers in , and , , with initial integration focused on leveraging Kroger's scale to enhance Vitacost.com's platform and supply chain efficiencies. Post-merger, Vitacost.com implemented upgrades to its distribution infrastructure, including enhanced automation systems at the , fulfillment center to improve order processing and throughput. These enhancements, featuring technologies like high-speed sorters, pick-to-light systems, and dynamic batch picking, supported increased operational capacity following the acquisition. Under Kroger's ownership, Vitacost.com expanded its product offerings, incorporating Kroger's Simple Truth organic brand into its inventory to bolster organic selections and certifications. By 2016-2017, this influence drove further growth in and wellness categories, including new additions to products such as supplements and natural foods tailored for dogs and cats. In 2024, Vitacost celebrated its 30th anniversary as part of the family, highlighting ongoing growth in and wellness e-commerce.

Products and Services

Core Product Categories

Vitacost offers a diverse array of and wellness products across several core categories, focusing on nutritional support, daily essentials, and lifestyle enhancements. The primary categories include vitamins and supplements, such as multivitamins, omega-3 fatty acids, , and CoQ10 formulations, which form the foundation of its inventory. and botanicals, featuring popular items like extracts, , and homeopathic remedies, provide natural alternatives for immune and stress support. and beverages encompass organic snacks, protein bars, teas, and functional drinks designed for on-the-go . Additional categories extend to active lifestyle items, including fitness gear, , and recovery aids to cater to exercise enthusiasts. Beauty and personal care products highlight skincare, , and natural , prioritizing gentle, effective options. Pet products round out the selection with supplements, treats, and grooming essentials tailored for animal health. This assortment comprises tens of thousands of stock-keeping units (SKUs) from over 400 third-party brands, with a particular emphasis on natural ingredients, non-GMO verification, and gluten-free certifications to meet consumer demands for clean-label goods. Vitacost's sourcing strategy relies on direct partnerships and exclusive agreements with suppliers, allowing the retailer to offer products at wholesale costs that translate to savings of up to 50% or more compared to traditional retail prices. This approach ensures a competitive edge while maintaining quality through rigorous third-party testing for purity and potency. By 2023, the product evolution incorporated seasonal flavors in food and beverage lines, such as pumpkin-spiced options for fall, alongside expanded clean beauty offerings featuring , paraben-free skincare and makeup.

Proprietary Brands and Manufacturing

Vitacost introduced its proprietary store-brand vitamins and supplements in 1999 under the NSI brand, which was later rebranded as the core Vitacost brand to encompass a wide range of nutritional products including multivitamins, herbs, and minerals. This private-label line was designed to provide affordable, high-quality alternatives to national brands, focusing on essential support. Over time, the Vitacost brand expanded to include specialized formulations, such as allergen-free options developed through in-house efforts aimed at addressing common dietary sensitivities like and soy. In 2013, Vitacost launched ARO, a sports nutrition line targeting fitness enthusiasts with products like protein powders, pre-workout supplements, and recovery aids, including the Black Series sub-line featuring high-potency blends of and extracts. For , Vitacost sells Abound products such as fatty acids and support formulas tailored for dogs and cats, emphasizing natural ingredients to promote overall wellness. The portfolio as of 2025 includes expanded lines such as and ROOT2 for additional nutritional support. Vitacost's manufacturing operations historically centered on a 112,000-square-foot facility in Lexington, North Carolina, completed in 2008 to produce its proprietary products in-house, enabling control over formulation and quality. In 2012, the company transitioned production to third-party manufacturers while leasing out the Lexington site, retaining oversight to ensure compliance with current Good Manufacturing Practices (cGMP) standards set by the FDA. All proprietary products undergo rigorous third-party testing for purity, potency, and contaminants, with formulations backed by internal R&D to meet consumer demands for transparency and safety. In 2012, Vitacost developed and vegan lines within its proprietary offerings, aligning with growing ethical consumer preferences by excluding animal-derived ingredients and ensuring no in production. By 2020, the proprietary portfolio had grown significantly, representing a substantial portion of sales—estimated around 20% based on historical trends—through diversification into over 500 stock-keeping units (SKUs) across categories like and pet care.

Customer Services and Features

Vitacost offers a subscription service known as Autoship, which allows customers to schedule automatic recurring deliveries of selected and wellness products, such as vitamins, supplements, and organic foods, with flexible frequency options that can be adjusted, skipped, or canceled at any time. Participants in Autoship can save up to 20% on eligible items, including 5% off standard products and higher discounts on bonus brands, along with a $10 discount on the next order after enrollment. Additionally, the platform provides free standard shipping on orders exceeding $49, or $25 for Vitacost and select brand products, enhancing convenience for regular shoppers. Customer support at Vitacost is accessible through multiple channels, including live chat available through from 8 a.m. to 9 p.m. EST and through from 9:30 a.m. to 6 p.m. EST, as well as phone support at 1-800-381-0759 during weekday hours of 8 a.m. to 9 p.m. EST and from 9:30 a.m. to 6 p.m. EST. inquiries are handled with responses typically within 48 hours, supporting issues like order modifications and product concerns. The company's return policy permits refunds or replacements for missing, damaged, defective, or unsatisfactory items within 60 days of purchase for domestic orders, with requests processed via an online service center and refunds issued to the original payment method within 2-3 business days. Vitacost maintains educational resources through its , " by Vitacost," which features articles on topics, recipes like butternut squash chili and holiday meal ideas, and guides to supplements such as hair vitamins and . The blog covers wellness advice, , and condition-specific tips, with content updated to include seasonal themes as of late 2025. Complementary newsletters deliver tips, product recommendations, and exclusive deals to subscribers, fostering ongoing engagement with wellness content.

Operations

Supply Chain and Distribution

Vitacost's supply chain and distribution operations have been integrated with those of its parent company, The Co., since Kroger's acquisition in 2014, enabling shared logistics resources and expanded fulfillment capabilities across . The primary is located in , at 130-B Lexington Parkway, encompassing approximately 227,000 square feet and functioning as the main east coast hub for order processing and outbound shipping. This facility handles a significant portion of Vitacost's volume, supported by secondary fulfillment operations in , , at 840 Pilot Road, which spans 155,000 square feet and serves the west coast with advanced picking technology for efficient order assembly. Additionally, Vitacost leverages Kroger's broader network of distribution centers for overflow capacity and regional efficiency. The relies on direct sourcing from over 1,600 global brands and suppliers, encompassing vitamins, supplements, organic groceries, and wellness products to maintain a diverse of more than 30,000 items. This global procurement model ensures competitive pricing and product variety, with levels optimized through integrated systems to minimize stockouts and support . Post-acquisition, Kroger's tools have enhanced Vitacost's backend coordination, facilitating seamless data sharing for procurement and restocking. Fulfillment processes emphasize speed and reliability, with orders typically processed and shipped within 1-2 business days from receipt, through . Vitacost partners with major carriers including , USPS, and regional carriers to provide standard ground shipping, with delivery times estimated at checkout, typically within 2-8 business days across the continental and extended options for international destinations in over 150 countries. Free standard shipping is offered on qualifying orders over $49, further streamlining customer access to products. Sustainability initiatives in the align with Kroger's corporate goals, including the adoption of eco-friendly materials to reduce and plastic use with recyclable and reduced-material options across owned brands. By 2024, these efforts contributed to broader environmental targets, such as minimizing in through optimized routing and supplier partnerships focused on sustainable sourcing. Vitacost also promotes carbon-neutral shipping options for select products via partnered brands, supporting customer choices for lower-impact delivery.

E-Commerce Platform and Technology

Vitacost operates a custom-built platform tailored for the retail of vitamins, supplements, and wellness products, which underwent a comprehensive rebrand and redesign in 2015–2016 to incorporate responsive design for improved cross-device . The platform supports a dedicated mobile application, initially released in 2014 with subsequent enhancements, including scanning for price comparison and order management features added in 2016. Key technologies powering the platform include search engine optimization (SEO) strategies focused on health and wellness queries to boost organic visibility, as well as Adobe Analytics for tracking user behavior and enabling data-driven personalization. Following its 2014 acquisition by Kroger, the platform has been integrated with the parent company's broader digital ecosystem, including Kroger's online grocery services for expanded product availability and hybrid shopping options. Security is prioritized through SSL encryption to protect user data during transactions, with the site utilizing protocols across all pages. The platform also leverages tools like Selligent Marketing Cloud for personalized email campaigns and product recommendations based on , supporting features such as the "Just For You" section. Vitacost.com attracts millions of global visitors annually, reflecting its scale in the online health retail sector.

Reception

Awards and Industry Recognition

Vitacost has received several notable awards recognizing its growth and customer service in the health and wellness retail sector. In 2006, the company was inducted into Inc. magazine's Inc. 500 Lifetime Hall of Fame for being one of the fastest-growing privately held businesses in the United States over five consecutive years. Following its expansion as an online retailer, Vitacost earned top honors in surveys. In 2017, it was named the #1 Online Supplement Merchant and #1 Internet/Catalog Brand for vitamins and supplements based on a survey of nearly 10,000 ConsumerLab.com subscribers. After its acquisition by The Kroger Co. in 2014, Vitacost continued to garner industry recognition for its operations and service quality. In 2014, it received a Stevie for Innovation in Customer Service, marking it as the only healthy living retailer honored in that category. In 2018, ranked Vitacost #1 in among online retailers in the sports and fitness category. In 2022, a executive overseeing operations including Vitacost received the Global Retailer and Manufacturer Alliance (GRMA) Leadership for contributions to and . In 2024, named Vitacost a 5-Star Customer Service Champion, highlighting its commitment to . In 2025, ranked Vitacost #1 in in the vegan and vegetarian products subcategory within online retailers for , , and , with a score of 93.56.

Consumer Feedback and Market Impact

Vitacost has received generally positive consumer feedback, with average customer ratings across major review platforms hovering around 4.0 out of 5 as of November 2025. On ResellerRatings, it holds a 4.1 rating from 115,942 reviews, while reports 4.3 from 510 reviews, and gives 3.5 from 2,000 reviews, highlighting affordability and product selection as key strengths. Customers frequently praise the competitive pricing on vitamins, supplements, and products, as well as the extensive inventory of over 40,000 items, including organic and specialty options. However, common complaints include shipping delays, particularly during peak periods, and occasional issues with damaged or missing items due to packaging problems. In terms of , Vitacost contributes an estimated 2% to U.S. supplement sales, based on its reported of approximately $551 million in 2024 against a total and supplement market size of $25.6 billion in 2025. This share has been amplified by its 2014 acquisition by , which integrates Vitacost's offerings with Kroger's serving over 60 million members, enabling cross-promotions and expanded reach to offline shoppers. Vitacost pioneered a discount-driven model for natural health products in the early , offering up to 50% off retail prices on a wide range of supplements and wellness items, which pressured competitors like iHerb to adopt similar aggressive pricing and promotional strategies. Following the acquisition in 2014, Vitacost experienced accelerated growth in health shopping, blending online sales with in-store pickup options and loyalty integrations, contributing to a broader shift toward hybrid retail in the sector. The company faced challenges from a corporate involving a merger that streamlined operations but initially raised concerns among some stakeholders about potential service disruptions. Customer satisfaction recovered notably by 2017, when Vitacost ranked as the top online supplement merchant in ConsumerLab's survey of nearly 10,000 users, reflecting improved reliability and value perception.

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