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Rudy Nutrition, Inc. (RUNU.PK) – A Story to Equal to the Movie

In 1994, Tri Star Pictures released a movie named “Rudy” about Daniel “Rudy” Ruettiger whose “Never Quit” attitude led him to attend and play football for the University of Notre Dame. What was so astounding about that feat was that Rudy didn’t fit the part. He was “too short”, he was “too small”, and he didn’t have the “strength” to compete at such a level as Notre Dame. Yet through sheer determination, will power and that never quit attitude, Daniel Reuttiger not only played for Notre Dame, he became an inspiration to millions. “Rudy – Rudy” was the chant for millions that had been told they “couldn’t do it”.

After securing a solid future as a motivational speaker, and businessman, “Rudy” had a dream of making a healthier America by offering healthier foods which could help fight obesity and lesson the effects of diseases such as diabetes. To this end, Rudy Beverage, Inc. was incorporated in Nevada in November 2005 with the goal to develop and sell health conscious beverages as an alternative to sugar laden sodas and sports drinks. Utilizing special formulas and ingredients, the beverage was fortified to be a body builder, complete with vitamins and electrolytes the body craves during exertion.

Yet just as in the movie about Rudy the football player, Rudy the sports nutrition company faced obstacles too. There was major competition. There were certain missteps by a large, yet not completely focused advertising agency. There were misguided marketing attempts. In every sense of the word, Rudy the nutrition drink struggled as did Rudy the football player. Yet also in similar fashion, Rudy the sports drink has faced the obstacles and has overcome. Everything from management, to marketing, to packaging was re-examined, re-thought out, recreated, and improved upon. The bottles were changed, the labels were changed, the product range was changed, the production facility was changed. In each category, the underlying product was made better. How much better?

In taste comparisons, Rudy test marketed the product in select markets; Boston, Buffalo, St. Louis, Hartford and Colorado Springs among other cities. In several blind taste tests, Rudy outperformed Gatorade® and Powerade®, sometimes at an astounding 2 to 1 margin. They secured distribution contracts with two of the biggest vendors in the nation. They took on veteran management. They redesigned the marketing platform. They also showed the ability to increase net margins from repackaging and repositioning by 27%.

Rudy the sports nutrition “Company” has shown the same true grit that Rudy the football player did on the College grid irons. In evaluating a company, one of the tests it has to pass is its ability to compete, and adapt. There has been no better example of sheer determination and adaptation than Rudy the “new age beverage” company. This one bears watching.

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