Online dieting provides perfect vehicle for hungry Investors
07/09/06

Changes in the way UK dieters are choosing to lose weight is providing new opportunities for companies and investors in an industry traditionally dominated by the likes of WeightWatchers and Slimming World.

Recent reports claim that WeightWatchers membership is down by 15 per cent with people turning away from meeting-based clubs. However there is no decline in the desire to lose weight - in 2005 one in four of British adults claimed to be on a diet 'most of the time'.

Online diet programmes are increasing in popularity; in the US this market sector has grown rapidly in the last six years, driven by market leader Ediets. The company announced that revenue for the 12 months ending December 31, 2005, increased 18.2% to a record $53.7 million.

This gap in the UK market is rapidly being filled by companies such as NutraTech, which combines online and mobile phone technology. The company, founded in 2004, has seen membership grow dramatically over the last year as dieters look to more convenient and better value approaches to help them lose weight.

NutraTech director Tim Vryenhoef said: "Our online weight loss programme provides dieters with a discreet service which is convenient and accessible 24 hours a day, perfect for busy people. The use of mobile technology to provide an optional download of the programme, also means dieters can check out the nutritional value of food while on the go."

NutraTech works by providing each dieter with an online food diary and personal calorie target. Customers update their food diary by selecting food from a 30,000-strong database. There is even the option to search for items by entering the last four digits of a food's barcode - either on the Nutracheck website or via the mobile phone program.

By recording nutritional information in the diary, it is easy for customers to monitor their calorific intake and identify any 'problem foods'.

Mr Vryenhoef continued "As well as providing this service directly to consumers via our own website, we also provide white label application to businesses such as Boots, O2 and the Daily Mirror".

"NutraTech is really gaining momentum now, but the first few months, as with any new venture, were nerve wracking. We needed to raise finance fairly early on in order to bring our products to market, build on our in- house team and conduct further product development."

In June 2005 NutraTech was selected to present at an Investment Forum run by Connect Yorkshire, the organisation which primes technology businesses for growth and investment throughout Yorkshire. Connect Yorkshire has sister operations in the Midlands, Scotland and further afield in Norway and California.

"Connect's Forum allowed us to be seen by the right people at the right time" explained Tim. "During the Forum we made contact with venture capital business Viking Fund, who later invested in the business. Further funding was acquired from the Small Firms Loan Guarantee Scheme, and two private investors.

Connect Yorkshire's executive director Nick Butler said: "We're delighted that NutraTech has gone from strength to strength and that Connect was there to offer a helping hand at the right time. Since Connect Yorkshire started operating in 2001 we have helped 120 companies secure around £14m in international backing. We are constantly on the look out for technology businesses with high growth potential to excite the interest of investors."

Connect's next Investment Forum is on Wednesday 29 November 2006 at Leeds United Football Ground, Elland Rd, Leeds. For further information visit www.connectyorkshire.org or telephone 0113 384 5640.

NutraTech uses the brand name Nutracheck for its online and mobile phone service which can be found at www.nutracheck.co.uk.
ENDS

Release Date: 7/09/06