There’s a simple solution to the obesity epidemic disproportionately plaguing African Americans, according to Claude Tellis, CEO of the plant-based nutrition company Naturade.
“Why is it that Black people have diabetes? The answer is there are no fruits or vegetables in those areas. We’re cut off from the food supply,” says Tellis, whose Irvine-based nutraceutical company makes a variety of affordable, plant-based nutritional products.
The company’s offerings—protein shakes, supplements and related products—are geared to serving populations that historically other health-food companies haven’t reached out to, and are designed to be affordable.
Its main meal replacement product, VeganSmart, packs 22 vitamins and minerals into 15 servings—at just $2 per meal.
“A burger and fries at McDonalds is $5.50. The incentive for fast-food companies is to prey on the poor and uneducated,” Tellis said. “We have a cleaner, cheaper product on Amazon.”
In addition to making its affordable plant-based nutrition available to 149 million Americans with Amazon accounts, Naturade has also partnered with Target and Whole Foods, bringing its products to market at competitively low price-points.
In February, the company debuted at Costco, becoming what the company says is the retail giant’s first Black-owned nutrition vendor in its history.
Naturade’s mission to promote clean eating and provide access to quality foods regardless of income, location or race has drawn investor interest; Tellis said his firm just closed a major funding deal worth millions, though details or names of the latest investors haven’t been disclosed yet.
Naturade has already gained the attention and interest of high-profile investors and businessmen, including NBA Hall of Famers Magic Johnson and Grant Hill.
Tellis was honored as one of six winners at the Business Journal’s seventh annual Innovator of the Year Awards, held on Sept. 9 at the Irvine Marriott.
Fighting the Food System
While Tellis says receiving the Innovator award has thrilled and humbled him, he emphasizes that it’s not thanks to his work alone—it’s also recognition of his team’s hard work over the past decade.
In 2012, business partners Kareem Cook and Tellis purchased the plant-based weight loss product maker Naturade, which was established nearly a century ago. In the early 2000s, the company was publicly traded and did sales in the $16 million range, according to regulatory filings.
The company is privately held now and doesn’t disclose sales; the Business Journal estimates Naturade’s revenue now tops $10 million annually.
In their attempts to revamp the brand after buying the legacy company, the new owners aimed to bridge the gap between the $13 billion health and wellness industry and the 86 million pre-diabetic Americans.
The acquisition wasn’t their first stride towards improving food inequity.
Cook and Tellis met at Duke University and bonded over the shared experience of losing family members to Type 2 diabetes.
“People of color thought diabetes was something that was unavoidable,” Tellis says. “We thought, at some point, you will need insulin, or what we called ‘the sugar.’”
Their experiences inspired them to start living healthy lifestyles and share them with the Black community by forming mission-driven businesses dedicated to nutrition.
One of their first projects was a vending machine company called Healthy Body Products; it helped eradicate junk food from Los Angeles public high schools, earning the company national headlines and plaudits.
Cook and Tellis are active in numerous high-profile Black organizations, including the LEAD Program in Business, which supports minority business students.
“Being part of these groups is like the underground railroad for college folks,” Tellis says. “It’s how we find each other and impact our communities.”
Naturade’s Promise
Aside from thousands of five-star ratings on online shopping sites, Naturade’s team has heard firsthand how their products have changed lives.
One man from Louisiana shed 100 pounds with a combination of cycling and Naturade’s Pea Protein.
Another ate two Naturade shakes a day for six months—and reversed his diabetes completely, Tellis says.
“The biggest thing I’ve ever learned, I didn’t learn at Duke. It’s that these things are preventable. Cultural eating habits passed down are completely reversible if you learn how to eat clean.”
While Naturade is designed for customers to gradually transition to a plant-based diet, Tellis hopes the habits of future generations will render its products obsolete.
“Our vision will be fulfilled when there are no pre-diabetics,” he says. “Hopefully we grow big and successful enough for our product to no longer exist. This is one step in a number of steps people can take to be healthier.”
Hungry for Justice
Also on the horizon is the mission-driven company’s film debut.
Award-winning filmmaker Keegan Khun, who directed and produced Cowspiracy and What the Health, is working with John Lewis, better known as the “Badass Vegan,” on a full-length documentary called Hungry for Justice that explores nutritional racism and the health-conscious shift in hip-hop.
The documentary will feature Naturade’s story—a huge feat for Tellis, he says.
“It’s amazing, how we’ve come full circle,” Tellis said. “It’s more recognizing that we’re all part of the solution and the movement. Everybody is shining their light. It’s time to shine our light a little bit.”
