Herbal Magic


Herbal Magic is a Canadian weight loss and nutrition company based in Toronto, Ontario, formerly operating through a network of approximately 300 weight loss and nutrition centres across Canada as Canada's largest commercial weight loss company. Currently, Herbal Magic operates as an online store and weight loss system administered via telephone and email counseling with its clients. The program includes one-on-one personal coaching, natural health products and grocery store bought food.

History

Herbal Magic was founded in 1995 by Dieter Decker, who opened his first weight loss and nutrition centre in London, Ontario. After growing the business to 228 centres nationwide, Decker sold the company in December 2003 to Trivest, a Miami, Florida based private investment firm. Trivest appointed Tom McNeely of Tim Hortons as CEO, and the number of units grew by nearly 45%, to 300 stores. In the summer of 2006, Trivest hired CIBC World Markets to launch an auction of Herbal Magic. According to one source, the company was sold earlier than normal because the investment had "already exceeded all of Trivest's expectations." In October 2006, Herbal Magic was sold to TorQuest Partners.
Then in 2009, Cameron Capital, a Toronto-based firm whose investments include Hair Club for Men and Beauty First, invested in the business. On February 18, 2009, the company announced a change in ownership making new investments in Herbal Magic Inc., including a personal investment from incoming Chairman Steve Hudson. The principles of Cameron Capital became managing partners of Herbal Magic, overseeing both strategic and daily operations.
On August 7, 2015, the company declared bankruptcy and closed all of its central and eastern Canada stores. Its 41 western Canada stores were taken over by a secured lender, but eventually closed in 2016.

Program

The Herbal Magic program offers a combination of private one-on-one personal coaching, real food bought at your grocery store, and natural health products. It has weight loss programs designed for women, men, diabetics, youth, women who are planning to conceive, breastfeeding mothers, and those with diagnosed heart conditions. The programs are designed to help clients lose weight at an average rate of two pounds per week. There are three key phases to the program including:
Herbal Magic's Scientific Advisory Team researches and designs all of the products and programs. Developed by a team of pharmacological manufacturing companies, naturopathic doctors, registered dietitians, and pharmacists, Herbal Magic natural health products are designed to support weight control and promote overall health and energy. The products consist of herbs, nutraceuticals, vitamins, and minerals. As of July 2012, all 46 of Herbal Magic's Natural Health Products have received Natural Product Numbers which means that they are licensed for sale in Canada and have had their safety, efficacy, and quality approved by Health Canada.

Criticism

The February 5, 2010 episode of the investigative news program CBC Marketplace examined the health effects of Herbal Magic's optional supplement products. The program and its independent experts determined there was insufficient empirical evidence to convince them that the supplements facilitate weight loss. Accordingly, the documentary claimed it observed Herbal Magic salespeople using tactics that lead customers to overestimate the supplements' effectiveness. Marketplace also interpreted Herbal Magic's practice of only telling customers the cost of the program after a free consultation as disingenuous.

Advertising

In September 2008, Herbal Magic began its first national advertising campaign. The initiative, aimed primarily at women, consisted of television, print and online advertising. The advertisements encouraged women to rediscover a sense of self. The most recent campaign, launched in February 2010, focuses on real clients who have lost weight, and kept it off, including Susan Crenshaw. Crenshaw was the former TV host of HGTV's This Small Space. Spokespersons for the program have included former Deputy Prime Minister Sheila Copps, former Toronto Maple Leafs General Manager Gord Stellick and Canadian figure skater Elizabeth Manley who, since 2009, has waged a highly publicized battle with her weight. The Herbal Magic program brought Manley within 5 lbs of her Calgary ’88 Olympic weight when she won the silver medal.

2010 Weight Loss Cup

From July to October 2010 Herbal Magic and the Canadian Football League co-sponsored a highly publicized Weight Loss Cup. Eight Canadian Football League alumni engaged in an amiable 20-week competition to lose weight and adopt a healthier lifestyle, using the Herbal Magic program. They included Gerry Dattilio of the Calgary Stampeders, Ralph Scholz of the Hamilton Tiger-Cats, Chris Walby of the Blue Bombers, Gerald Roper of the BC Lions, Eric Upton of the Edmonton Eskimos, Andre Greene of the Saskatchewan Roughriders, Doug Smith of the Montreal Alouettes, and Paul Markle of the Toronto Argonauts. Gerry Dattilio achieved the most points and was crowned the Weight Loss Cup Champion. Fans could vote online for their favourite player. Besides weekly prizes for voting, voters could win a grand prize of a trip for two to the Grey Cup.