Promoting Dietary supplements in Latin America – Eric Morato (SND Distributors) & Jack Sehgal

0:00 – Introductions: Assembly the Latin America Knowledgeable

Mike opens Episode #172 from the 2025 GNC International Convention, introducing Eric Morato from Sports activities Diet Distributors (SND) and welcoming again Jack Sehgal from Nutralabz. This dialog serves as a pure follow-up to Episode #160, the place we explored Chinese language markets with Chuck Zhang, now shifting focus to Latin America’s distinctive distribution challenges and alternatives.

Eric shares his spectacular background, having began within the complement trade at age 18 in 2010 and witnessing the evolution of worldwide markets over 15 years. His Miami-based firm, SND, has turn into a serious participant in Latin American distribution, representing established manufacturers like Glanbia Nutritionals, Iovate, Dymatize, and Premier Protein. The geographical positioning in South Florida offers strategic benefits for serving the 32 international locations that comprise the Latin American market.

Mike establishes the context by referencing our earlier conversations with Jack, noting how Fundamental Dietary supplements has quickly expanded internationally by way of partnerships just like the one with SND. This represents a major shift from the model’s home focus we mentioned in Episode #156 with Marc Curcio, demonstrating how strategic worldwide partnerships can speed up world progress.

2:15 – The Registration Problem: Why Elements Matter First

Eric explains that step one in Latin American growth isn’t advertising and marketing or pricing technique—it’s inspecting product labels and components. This regulatory-first method distinguishes profitable worldwide growth from home launches, the place manufacturers can focus totally on client attraction and aggressive positioning.

The complexity stems from every nation sustaining its personal regulatory framework, just like how the USA has the FDA. Many components generally utilized in American dietary supplements haven’t been accepted in Latin American international locations, creating fast obstacles to entry. Some compounds are utterly banned, whereas others face strict dosage limitations that will render formulations ineffective or require full reformulation.

This regulatory panorama explains why SND has constructed relationships with regulatory authorities throughout 32 international locations over 15 years. The corporate maintains direct communication channels with authorities businesses accountable for complement approval, understanding the precise necessities and timelines for every market. This infrastructure permits manufacturers to navigate the registration course of effectively moderately than making an attempt to construct these relationships independently.

Ben provides context concerning the variations between international locations, noting that what’s authorized in a single Latin American nation could also be prohibited in one other. This fragmented regulatory setting requires experience that almost all American manufacturers lack, making specialised distributors like SND important for profitable growth.

4:15 – The SND Benefit: Established Relationships and Authorized Compliance

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Eric emphasizes that SND completely operates by way of authorized channels, avoiding the temptation to bypass rules by way of unofficial importation strategies. This dedication to authorized compliance has constructed belief with each regulatory authorities and retail companions, creating sustainable distribution channels that assist long-term model progress moderately than short-term positive factors.

The corporate’s method entails working straight with every nation’s regulatory equal of the FDA, guaranteeing correct documentation and approval processes. This authorized basis allows manufacturers to construct authentic market presence moderately than working in regulatory grey areas that would end in product seizures or authorized problems.

Jack provides that this regulatory experience was essential in Fundamental Dietary supplements‘ determination to associate with SND. Fairly than making an attempt to navigate 32 totally different regulatory frameworks independently, the partnership permits Fundamental to leverage SND’s established relationships and confirmed processes. This strategic method allows quicker market entry whereas sustaining full authorized compliance.

The dialogue reveals how regulatory compliance impacts product improvement timelines. Registration processes can take as much as two years in some international locations, requiring manufacturers to decide to markets and formulations effectively upfront of launch. This prolonged timeline emphasizes the significance of working with skilled distributors who perceive the regulatory panorama and may information strategic choices.

6:15 – Manufacturing and High quality: The American Benefit

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The dialog shifts to manufacturing concerns, revealing that “Made within the USA” stays a major aggressive benefit in Latin American markets. Eric explains that buyers in these markets actively search American-manufactured merchandise, viewing them as greater high quality and extra reliable than native alternate options.

This desire for American manufacturing creates alternatives for manufacturers like Fundamental Dietary supplements, which may compete successfully with locally-manufactured merchandise on worth whereas sustaining high quality benefits. Colombian distributors particularly cited Fundamental’s American manufacturing as a key issue of their determination to hold the model, enabling competitors with native merchandise whereas commanding premium positioning.

Jack notes that this high quality notion isn’t simply advertising and marketing—American manufacturing requirements genuinely differ from these in lots of Latin American international locations. The mix of regulatory oversight, manufacturing processes, and high quality management methods creates merchandise that usually exceed what’s out there by way of native manufacturing. This high quality differential justifies premium pricing and builds client loyalty.

Nonetheless, the manufacturing location additionally provides complexity to distribution. Delivery prices, import duties, and logistics challenges should be factored into pricing methods. The hot button is discovering the stability between American high quality benefits and worth sensitivity in markets the place common month-to-month wages could also be as little as $500.

8:00 – Worth Sensitivity and Market Dynamics

Eric offers essential context about Latin American client economics, noting that minimal wages in lots of international locations common round $500 per 30 days. This financial actuality makes a $100 protein tub symbolize a good portion of a household’s month-to-month revenue, requiring artistic approaches to product positioning and packaging.

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The answer entails creating merchandise that serve totally different market segments inside every nation. SND works with manufacturers to create particular person stick packs and smaller serving sizes that make premium merchandise accessible to broader client bases. This method, impressed by profitable client items corporations like Unilever that promote single-use sachets in creating markets, permits manufacturers to serve each premium and mass-market segments.

Jack explains how this pricing sensitivity influenced Fundamental Dietary supplements‘ worldwide technique. The model’s “day by day driver” philosophy—offering high-quality, important dietary supplements at reasonably priced costs—interprets effectively to Latin American markets the place worth and accessibility are paramount. The simplified formulations and clear pricing align with client wants for efficient merchandise that don’t pressure family budgets.

This financial actuality additionally impacts product combine methods. Whereas protein powders and pre-workouts stay standard, hydration merchandise and single-serving codecs typically carry out higher because of lower cost factors and fast consumption advantages. Understanding these financial dynamics is crucial for manufacturers creating Latin American market methods.

10:00 – Model Status and Client Psychology

Eric reveals an fascinating dynamic in Latin American complement consumption: shoppers actively search prestigious American manufacturers, just like how luxurious items function in developed markets. This phenomenon creates alternatives for established American manufacturers whereas requiring newer manufacturers to spend money on training and market improvement.

The status issue implies that manufacturers like Glanbia and Dymatize, which can have misplaced some prominence in American markets, preserve robust positions in Latin America. This model recognition offers fast market credibility and reduces the training required for client acceptance. Nonetheless, it additionally implies that newer manufacturers should work more durable to determine credibility and market presence.

Jack notes that this status dynamic influenced Fundamental Dietary supplements‘ worldwide branding technique. Fairly than creating separate worldwide manufacturers, the corporate maintained American branding and packaging whereas adapting to native regulatory necessities. This method leverages the “Made in USA” benefit whereas sustaining model consistency throughout markets.

The dialogue reveals how model constructing in Latin America requires persistence and long-term funding. Not like home markets the place social media can quickly construct model consciousness, Latin American success requires sustained presence, relationship constructing, and constant market funding. This timeline reinforces the significance of working with skilled distributors who can present market continuity.

12:00 – The Loyalty Issue and Lengthy-Time period Partnerships

Eric emphasizes a vital distinction between Latin American and North American enterprise cultures: the loyalty issue. In Latin America, enterprise relationships are seen as long-term partnerships requiring mutual funding and dedication. This cultural distinction impacts how manufacturers ought to method worldwide growth methods.

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The loyalty expectation implies that manufacturers can not merely enter markets opportunistically, in search of fast returns with out sustained dedication. Latin American companions count on manufacturers to spend money on market improvement, training, and relationship constructing over a number of years. This funding contains not simply monetary commitments but additionally time, consideration, and real engagement with native market dynamics.

Jack provides that this partnership mentality has influenced Nutralabz‘ worldwide technique. Fairly than treating distributors as transactional relationships, the corporate invests in partnership improvement, together with journey to markets, face-to-face conferences, and collaborative product improvement. This method builds stronger relationships and extra sustainable market positions.

The dialog reveals how a number of American manufacturers have broken their fame by getting into Latin American markets with out correct dedication, then withdrawing when fast outcomes didn’t materialize. This sample has created alternatives for manufacturers like Fundamental that perceive the significance of long-term partnership improvement and sustained market funding.

14:15 – WhatsApp Commerce and Digital Distribution

An fascinating facet of Latin American commerce emerges as Eric explains how “on-line gross sales” within the area typically means WhatsApp moderately than conventional e-commerce web sites. This represents a basically totally different method to digital commerce, requiring manufacturers to grasp communication-based promoting moderately than automated on-line transactions.

WhatsApp Enterprise has turn into the first platform for B2B communication and gross sales in Latin America, with distributors sustaining contact lists of a whole lot of outlets and speaking promotions, stock updates, and product data by way of the platform. This direct communication mannequin allows fast response occasions and private relationships that conventional e-commerce can not replicate.

The WhatsApp commerce mannequin additionally extends to client gross sales, with many retailers utilizing the platform to speak with finish prospects. This creates a extra private purchasing expertise however requires totally different advertising and marketing approaches and customer support methods. Manufacturers should perceive that success in Latin America typically depends upon relationship-building moderately than automated gross sales processes.

Jack notes that this communication desire has influenced Fundamental Dietary supplements‘ worldwide advertising and marketing technique. Fairly than relying solely on conventional digital advertising and marketing, the model invests in content material and supplies that may be simply shared by way of WhatsApp and different communication platforms. This method leverages the non-public communication preferences that drive Latin American commerce.

16:00 – Academic Funding and Market Improvement

Eric describes SND’s academic method, together with the event of “Fundamental College” and “GR8 College” applications that present complete coaching for distributors and retailers. These academic initiatives display the extent of funding required for profitable Latin American market improvement.

The tutorial applications serve a number of functions: they supply product information for retail workers, construct model credibility by way of scientific backing, and create deeper relationships with distribution companions. When a distributor operates over 100 shops throughout a rustic, coaching their workers successfully requires systematic academic applications moderately than ad-hoc communication.

These academic initiatives additionally deal with the information hole that exists between American complement innovation and Latin American market consciousness. Many components and formulation approaches which might be well-known in American markets require clarification and training in Latin American contexts. This academic funding builds market basis for long-term success.

Jack emphasizes that this academic dedication differentiates profitable worldwide partnerships from transactional relationships. Manufacturers that spend money on distributor training and client consciousness constructing obtain higher market penetration and extra sustainable progress than these targeted solely on fast gross sales outcomes.

17:30 – Taste Adaptation and Cultural Preferences

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The dialog explores how taste preferences fluctuate considerably throughout Latin American international locations, requiring localized product improvement methods. Eric explains that chocolate, whereas standard globally, truly ranks behind vanilla in Colombia, and that Colombian shoppers choose much less candy vanilla flavors than American markets.

This localization extends to region-specific flavors like churros and tres leches, which resonate strongly in Mexican markets however could not translate to different Latin American international locations. The problem entails creating flavors that serve giant sufficient markets to justify manufacturing prices whereas sustaining native attraction and cultural relevance.

Fundamental Dietary supplements has embraced this localization problem by working straight with distributors to develop and check region-specific flavors. This collaborative method ensures that new flavors meet native style preferences whereas sustaining the model’s high quality requirements. The method entails sending samples to distributors for client testing earlier than committing to full manufacturing runs.

Jack notes that this taste improvement course of demonstrates the manufacturing flexibility that permits profitable worldwide growth. The flexibility to develop customized flavors for particular markets whereas sustaining core formulation integrity offers aggressive benefits that purely home manufacturers can not match.

19:00 – Partnership Execution and Market Help

Eric emphasizes that SND features as an extension of the manufacturers they symbolize, taking duty for market execution moderately than merely facilitating transactions. This method contains creating advertising and marketing supplies, organizing academic seminars, creating promotional merchandise, and managing all facets of market improvement.

The partnership mannequin permits American manufacturers to concentrate on home progress whereas guaranteeing skilled worldwide market improvement. SND handles all the things from regulatory compliance to retail relationships to client training, offering complete market assist that will be troublesome for manufacturers to develop independently.

This execution functionality extends to sensible advertising and marketing assist, together with creating locally-relevant advertising and marketing supplies, organizing commerce reveals, and managing social media presence in Spanish. The aim is to keep up model consistency whereas guaranteeing native market relevance and cultural appropriateness.

Jack provides that this complete assist mannequin has been essential for Fundamental Dietary supplements‘ fast worldwide growth. Fairly than making an attempt to construct worldwide capabilities internally, the partnership permits the model to leverage SND’s established infrastructure and experience whereas sustaining concentrate on core enterprise improvement.

21:00 – Labeling and Model Presentation

The dialogue reveals fascinating dynamics round product labeling and model presentation in Latin American markets. Whereas regulatory necessities could mandate native language data, shoppers truly choose to keep up English branding components that emphasize the product’s American origin.

Merchandise like “Fundamental Whey Protein Isolate” preserve their English names as a result of shoppers affiliate these phrases with high quality and authenticity. The problem entails balancing regulatory compliance with client preferences for American branding, typically leading to bilingual labeling that satisfies each necessities.

This labeling desire displays the broader client psychology that values American complement manufacturers. Fairly than localizing manufacturers utterly, profitable merchandise preserve clear American id whereas offering mandatory native language data for regulatory compliance and client understanding.

The dialog additionally touches on the significance of sustaining visible model consistency throughout markets. Customers in Latin America typically analysis merchandise on-line earlier than buying, and constant branding throughout American and worldwide markets builds confidence and belief in product authenticity.

23:00 – Worldwide Market Visits and Relationship Constructing

Eric describes the significance of face-to-face relationship constructing in Latin American markets, noting that SND travels to associate international locations a few times per 30 days. This journey dedication demonstrates the non-public relationship necessities that distinguish Latin American enterprise tradition from extra transactional American approaches.

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When American model representatives go to Latin American markets, it creates important affect past what will be achieved by way of distant communication. These visits display dedication to the market and construct private relationships that translate into stronger enterprise partnerships and market assist.

Jack shares his expertise visiting Colombian markets, noting how these journeys present insights into native client conduct, retail environments, and market dynamics that can’t be understood by way of distant communication. These insights inform product improvement, advertising and marketing methods, and distribution approaches.

The journey funding additionally offers alternatives for direct suggestions from shoppers and retailers, enabling manufacturers to adapt methods based mostly on actual market circumstances moderately than assumptions. This direct market engagement builds stronger partnerships and more practical market methods.

24:00 – Digital Commerce and Know-how Adoption

The dialog explores how digital commerce operates otherwise in Latin American markets, the place WhatsApp Enterprise serves as the first platform for B2B transactions. This represents a less complicated however extra relationship-focused method to digital commerce than conventional e-commerce platforms.

Distributors preserve WhatsApp contact lists of a whole lot of outlets, sending product promotions, stock updates, and pricing data by way of the platform. This direct communication mannequin allows fast response occasions and private service that automated e-commerce can not present.

The know-how adoption patterns replicate broader market traits, the place private relationships and direct communication are valued over automated transactions. This desire impacts how manufacturers ought to method digital advertising and marketing and customer support in Latin American markets.

Whereas conventional e-commerce channels exist, they typically serve totally different market segments than WhatsApp commerce. Understanding these totally different channels and their acceptable functions is essential for creating efficient Latin American market methods.

25:00 – Wellness Traits and Market Evolution

Eric offers insights into present Latin American complement traits, noting a shift from pure bodybuilding focus towards normal wellness and well being consciousness. This development aligns with world complement trade evolution however displays particular Latin American cultural values round well being and vitamin.

The wellness development creates alternatives for merchandise past conventional bodybuilding dietary supplements, together with hydration merchandise, normal well being dietary supplements, and lifestyle-focused formulations. This market evolution opens alternatives for manufacturers like GR8 Life-style that target complete wellness moderately than particular efficiency targets.

Cultural elements additionally affect wellness traits, with many Latin American international locations sustaining more healthy conventional diets and extra energetic life than American averages. This well being consciousness creates receptive markets for high quality dietary supplements that assist present wholesome way of life practices.

The dialogue reveals how understanding these cultural well being views can inform product improvement and advertising and marketing methods. Fairly than attempting to vary client behaviors, profitable manufacturers align with present well being values and way of life practices.

27:00 – Regulatory Challenges and Caffeine Restrictions

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The dialog delves into particular regulatory challenges, notably round caffeine content material in pre-workout dietary supplements. Chile, for instance, restricts caffeine to 125mg per serving, considerably decrease than typical American pre-workout formulations that usually include 300-400mg.

These regulatory restrictions require manufacturers to develop region-specific formulations or settle for that sure merchandise can’t be offered in particular markets. The choice entails balancing market measurement towards improvement prices and formulation complexity.

Eric notes that some international locations have much more restrictive caffeine limits, creating challenges for manufacturers that constructed their fame on high-stimulant formulations. This regulatory setting favors manufacturers like Fundamental Dietary supplements that target average, efficient dosing moderately than excessive stimulation.

The regulatory panorama additionally impacts product improvement timelines, as modifications to formulations can require new registration processes that will take as much as two years. This timeline requires manufacturers to plan product methods effectively upfront and decide to particular formulations for prolonged durations.

29:00 – Market Improvement Persistence and Lengthy-Time period Technique

Eric emphasizes the significance of persistence in Latin American market improvement, noting that registration processes alone can take as much as two years, adopted by further time for market improvement and client training. This timeline requires manufacturers to keep up long-term dedication and funding views.

The prolonged improvement timeline additionally impacts money circulation and useful resource allocation, requiring manufacturers to spend money on markets earlier than seeing returns. This monetary dedication distinguishes profitable worldwide growth from opportunistic market entry makes an attempt.

Jack provides that this persistence requirement has influenced Nutralabz‘ worldwide technique, specializing in fewer markets with deeper funding moderately than making an attempt broad geographic growth. This method builds stronger market positions and extra sustainable progress trajectories.

The dialog reveals how understanding these improvement timelines helps manufacturers make knowledgeable choices about worldwide growth priorities and useful resource allocation. Profitable worldwide progress requires strategic persistence and sustained funding dedication.

30:45 – Innovation and Product Improvement Cycles

The dialogue explores how product innovation cycles differ between American and Latin American markets, with traits typically taking years emigrate from American innovation to Latin American regulatory approval and market acceptance.

This innovation lag creates each challenges and alternatives for American manufacturers. Whereas it could take years for brand new components to achieve regulatory approval in Latin American markets, it additionally offers time for manufacturers to refine formulations and construct market training earlier than launch.

The regulatory approval timeline impacts how manufacturers ought to method product improvement for worldwide markets, typically requiring separate product strains or modified formulations that adjust to totally different regulatory frameworks whereas sustaining model consistency.

Eric notes that this innovation cycle additionally impacts aggressive dynamics, as manufacturers that spend money on regulatory approval early can acquire important market benefits when new components lastly obtain approval. This primary-mover benefit can justify the funding in prolonged approval processes.

32:00 – Development Trajectory and Market Enlargement

Eric displays on the numerous progress SND has skilled, notably with manufacturers like Fundamental Dietary supplements which have quickly expanded into 17 Latin American international locations since January. This progress demonstrates the market potential when manufacturers align with skilled distributors and decide to correct market improvement.

The expansion trajectory displays each the standard of the partnership and the market demand for American complement manufacturers that present worth and accessibility. Fundamental Dietary supplements‘ success demonstrates how the “day by day driver” philosophy interprets successfully to price-sensitive worldwide markets.

Jack provides that this worldwide success has influenced Nutralabz‘ general technique, demonstrating how worldwide partnerships can speed up progress past what home markets alone can present. The success creates alternatives for extra model improvement and market growth.

The dialog concludes with each events expressing enthusiasm for continued partnership improvement and market growth. The success of Fundamental Dietary supplements in Latin America offers a mannequin for a way American manufacturers can obtain worldwide progress by way of strategic partnerships and long-term market dedication.