A special note on our 100% Egg Protein availability and pricing

Healthy ‘N Fit was the first company to introduce a 100% Egg Protein product to the market over 25 years ago. Since that time the popularity of our product has been steadily increasing thanks to its very high quality protein & amino acid profile, and thanks to its all natural formulation.

Users of Egg Protein products may be noticing that many retailers have recently been out of stock of many of the most popular flavors and sizes for our 100% Egg Protein. You may have also noticed some price changes. Please read on for a brief explanation of why this has happened.

Eggs are a commodity, as many foods and food ingredients are. Like all commodities, the price and supply can fluctuate with changing market conditions, sometimes dramatically. Over the past two years the market for egg whites, particularly the market for egg white products (meaning liquid or dried egg whites – like those our 100% Egg Protein is made from), has experienced record breaking demand and prices. While this is a rather complicated situation with many factors involved, following is a very brief summary of three major issues which have caused this.

Major nationwide and global fast food chains have been introducing and heavily promoting new egg white breakfast sandwiches and similar egg and egg white based products. Other major chains which have never offered breakfast before are now starting to offer a full breakfast menu, including egg and egg white based products. Major Supermarket brands have also been introducing frozen pre-made breakfast sandwiches and similar products using only egg whites. Most of these are new products which utilize egg whites in places where they were not previously used. Such a surge in demand for liquid egg whites has drastically tightened supplies on the entire national egg white market. Egg laying operations do not yet have the infrastructure in place to produce as many eggs as this new demand is requiring.

Beyond this surge in demand, in the winter of 2015 the Avian Influenza (Bird Flu) struck dozens of egg laying operations throughout the United States, particularly in the Midwest which is where the majority of eggs come from that are used to make dried or liquid egg products. While this Bird Flu does not pose a threat to humans, it has led to the loss of over 30 million egg laying hens in the US. It is estimated that as much as 40% of the supply of eggs used to make liquid and dried egg products has been lost and must be replaced. The loss of such a large portion of the national supply has had a tremendous impact on the availability and pricing of all egg products, particularly egg white products.

Further information on all these facts can be found at the bottom of this letter for reference.

Beyond all of this, the demand for our own Healthy ‘N Fit® 100% Egg Protein is also higher than ever in our nearly 30 years of selling the product.

The concurrence of all these factors has led to major shortages in the egg white market. Many companies, including Healthy ‘N Fit, who use egg white products on a regular basis are experiencing major delays in receiving shipments of egg products. In some cases egg suppliers are simply saying they have no product available and cannot accept any orders. There is simply not enough material to meet the needs of everyone in the market. In recent months, orders of raw materials (dried egg whites) which would have usually taken about a week for us to get have taken over a month because there simply was no product available.

This lack of raw materials and constant delays on shipments to us has caused us to sometimes be out of our 100% Egg Protein products. Please know that we are producing the product and we will continue to make it, however over the next few months there may be a short supply of the product until the market comes to equilibrium and the birds which were lost to the bird flu are replaced. If anyone tells you that the product has been discontinued please note that this is not correct. The product is in production and will remain so.

As one might imagine, these short supplies are sending egg product prices soaring to record shattering prices that we have never seen before, and quite frankly we never imagined that we would ever see. Pricing of dried egg whites in August of 2015 had more than doubled what it was just four months prior in April of the same year and was triple the price it was three years prior. As such, we have had to increase the pricing of our 100% Egg Protein items. We always try to keep pricing as low as we can and avoid increases whenever possible, but the prices that we must pay to obtain the dried egg whites which we make our products with have increased so much that we have had no choice. We are working on smaller profit margins than ever on this item, and in some cases just breaking even due to the very high prices we are paying for raw materials.

Please also note that Healthy ‘N Fit’s 100% Egg Protein is made exclusively with eggs from the USA. It is manufactured in the USA and does not contain any fillers such as those seen in some other protein products. We will not compromise the quality or purity of our products to cut costs.

We think it is important for us to share with you a little background on what is going on regarding the inventory and pricing of our 100% Egg Protein products. We point these things out only to show that our short supply on this product has not been due to poor planning, production, or inventory control measures. The bird flu situation came about fairly quickly and with no warning, though it has been a lingering problem for several months now that we are trying to work our way around. It has been a little out of our hands, but we are working every day to ensure that we have a steady supply of the material.

We truly appreciate the support we have had over the years from the users of this product, and we want to maintain that loyalty and support. We know how important it is for us to supply you with this item and that many of you use it as part of your daily nutrition regimen. We are confident within the coming months that we will have as much product as needed, and we are working hard to ensure this. We are establishing relationships with additional suppliers to ensure a steady supply of the materials we need to make the product. We are producing product regularly, but we are often not able to obtain as much material as needed, or waiting much longer to receive the material.

The short term outlook is that demand for egg white based items is not decreasing, prices are continuing to soar, and there is little indication of increased egg production coming online any time in the very near future. Shortages may continue on and off for the near future.

The long term outlook is fortunately better. The record high demand for egg whites will probably drop off a little bit, though will still remain much higher than it used to be. Supplies will increase as egg producers slowly recover from the effects of the bird flu and increase production to catch up with demand. Please note that these “outlooks” are based on reliable sources such as information from the USDA and major egg producers, but should not be considered certainties.

We would again like to assure you that we are working hard to deal with this issue and to get to a point where we are fully back in stock. If you need any further information regarding this or would like to discuss further, please do not hesitate to contact us.

Best Regards,

The Healthy ‘N Fit Management Team

References:

http://www.usatoday.com/story/news/nation/2015/07/19/farmers-struggle-rebuild-flocks-after-bird-flu/30398579/

http://phenomena.nationalgeographic.com/2015/07/15/bird-flu-2/

http://www.reuters.com/article/2015/07/28/us-health-birdflu-iowa-idUSKCN0Q22J520150728

http://www.foxnews.com/leisure/2014/05/29/egg-white-shortage-predicted-as-health-conscious-americans-give-up-yolk/

http://www.entrepreneur.com/article/234277

http://www.cnbc.com/id/101685306

http://www.bustle.com/articles/26109-the-great-egg-white-shortage-of-2014-is-here-and-its-all-our-fault

http://blogs.wsj.com/economics/2013/06/14/egg-prices-take-flight/

http://www.ams.usda.gov/mnreports/aj_py009.txt

http://online.wsj.com/article/SB10001424127887324328904578623683374193720.html