MELATONIN CRAZE By the start of 1994, a new supplement called Melatonin was widely sold as a replacement for banned L-Tryptophan. Melatonin is naturally produced in the pineal gland of mammals and has been researched extensively since 1959. For most people, Melatonin helps solve insomnia, and it also acts as an antioxidant without side effects or chemical dependence. Initially, NOW decided against selling Melatonin because of concerns that the product is a synthesized hormone. From March through December, Jim Roza, NOW’s Quality Manager, searched for answers about the toxicity and safety of melatonin. Meanwhile, our competitors were selling this “latest cure” in increasing quantities and customers were pressuring NOW to introduce this latest product. Finally, in December, 1994, we introduced a 3 mg capsule after receiving authoritative assurances from the research godfather of melatonin, Dr. Russell Reiter. This leading authority on melatonin research called NOW on his own to inform us about the numerous studies he had performed regarding the safety and efficacy of melatonin. The new capsule quickly became a best seller and helped fill the void lost when Tryptophan was banned from the market. Once again, it seems, our timing was providential. In 1995, Newsweek Magazine ran two articles on melatonin, including one full cover story highlighting the main benefits: insomnia, anti-aging and jet lag. The first article was published in August and immediately suppliers ran out of inventory and the price tripled. We were aware of four European manufacturers who made the product and tried everything possible to get more than our share of the scarce powder. While we battled suppliers for more inventory, customers clamored for instant relief from everything possible under the sun. The more we tried to squeeze product out of Europe, the more customers ordered, and the higher the price rose. It’s really amazing how much business can be affected by a positive nutrition article. In this case, we were selling tens of thousands of bottles of melatonin per month and actually had to allocate sales so that we didn’t sell out. In December, Newsweek ran a follow up article that also stirred up business substantially. Again, the same flurry of sales and the same flurry of buying scarce product followed. One result of every health fad is that other potential manufacturers make plans to join the supply chain and capitalize on the new growth market. Inevitably, too many suppliers start producing the same product about the same time and the shortage very soon turns into a supply glut. In the case of melatonin, Chinese pharmaceutical factories figured out how to make the product and today the powder costs about 90% less than it did when it was “priceless.” The irony is that the European producers who gouged the market in a bidding war can’t compete today with lower cost competitors and have lost the market that they once owned. The saying is true, “He who loves money will not be satisfied with money; nor he who loves wealth, with gain: this also is vanity.” (Ecclesiastes 5:10) NATURAL INFERTILITY When I married my wife, Beth, we were told that we would be unable to conceive children. In fact, Beth had been told that at an early age by her doctor. Typical with most young couples, we determined to try to have children after a few years and visited a couple of doctors to see what they could suggest. In the end, we went the medical route (along with prayer) and today have three wonderful, healthy children. 1993-1996 73
