Politics & Government

Vitamin Powder CEO Shares Business Secrets

The keynote speaker at Lake Forest's annual business appreciation luncheon gives tips on how to achieve success in a bad economy.

Knowing your market and hiring the right people can make all the difference for a business—and mailing out free samples doesn't hurt, either.

Those are a few of the techniques Ron Fugate used to more than double sales of Emergen-C, a vitamin drink mix made by his Foothill Ranch company.

Alacer, which manufactures and markets the fizzy nutrition powder, now sells nearly 500 million packets annually, he said.

Find out what's happening in Lake Forestwith free, real-time updates from Patch.

How the company pushed its way to the top of its market during an economic downturn was the topic of Fugate's Nov. 4 keynote speech at the city's annual business appreciation luncheon.

Fugate charted major changes the company underwent from 1978 to the present for a packed room of attentive business representatives.

Find out what's happening in Lake Forestwith free, real-time updates from Patch.

After being marketed to mature, health-conscious women as the "champane of nutritional drinks," Emergen-C got a boost once the company discovered its customers were a much younger, more active group.

"The power of really coming to understand ... who your users are" proved invaluable to Alacer, he said.

A revamped marketing campaign targeting the younger demographic led to the company's sustained growth, Fugate said.

The company's current focus is raising awareness of its products, since its users are generally loyal and passionate about Emergen-C, he said. About 75 percent of the people who ask for free samples through the company's website end up purchasing some on their own, Fugate said.

Cause-based products—mixes that donate a portion of profits to breast cancer research, for example—have also been a popular addition to Alacer's lineup, both for customers and employees, who enjoy seeing their efforts benefit more than the company's bottom line, Fugate said.

At the luncheon, Mayor Peter Herzog expressed confidence that the city's stability plays a role in the success of companies that operate in town.

"We want to have an open-arms situation for businesses to come and thrive in Lake Forest," he said, detailing some of the city's efforts to attract companies like Alacer.

The city's "business-friendly" policies, such as not requiring business licenses and keeping a balanced budget, provide a "microcosm of stability" in Lake Forest amid a shaky state and national business climate, he said.

A successful business community in Lake Forest benefits the community as a whole, Herzog asserted.


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