Small Company Creates Big Business Thanks to the Science Of Hot Peppers

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When SiCap Industries released the world’s first hot pepper (Capsaicin) nasal spray in 2003, the company made big waves in the natural health industry. Today, SiCap sells a full line of natural Capsaicin nasal sprays under the “Sinus Buster” brand name in more than 2,000 stores. Not only did the company create an entirely new nasal spray market, but they also created the first such category to be registered with the FDA under National Drug Code guidelines.

We have operated in the black since day one, and with zero start up capital. Our products have paid all the bills from the start, and we already have one product on its’ way to becoming a household name -- Sinus Buster.

When SiCap Industries released the world’s first hot pepper (Capsaicin) nasal spray in 2003, the company made big waves in the natural health industry. Today, SiCap sells a full line of natural Capsaicin nasal sprays under the “Sinus Buster” brand name in more than 2,000 stores. Not only did the company create an entirely new nasal spray market, but they also created the first such category to be registered with the FDA under National Drug Code guidelines.

The company’s name, (SiCap) stands for “Science Of Capsaicin,” the natural component of hot peppers responsible for their intense heat. While many studies have shown Capsaicin to be a powerful natural medicine, it was mainly used in Arthritis pain creams until SiCap Industries came along as the first pharmaceutical manufacturer to package Capsaicin for internal use as an over the counter medication.

Since the initial success of their Sinus Buster Classic formula, SiCap has released a steady stream of hot pepper based natural products. The Sinus Buster line up now includes six other Capsaicin nasal sprays including a formula for Headaches; Allergies; Sinusitis; Colds & Flu; Weight Control and even a Smoking Cessation formula.

Unlike products that repackage the same formulas under different names, the Sinus Buster product line features unique formulations specifically designed to relieve a variety of chronic health conditions.

“Our allergy formula uses Stinging Nettle to fight and prevent allergy symptoms better than anything else out there. Our headache formula features feverfew with peppermint to target migraine headaches. Our anti-cold formula features Echinacea and Golden Seal, and so on. Although each formula is a pepper nasal spray, we use different herbals and different pepper extracts to achieve specific results,” says Wayne Perry, president and founder of SiCap Industries.

In addition, SiCap Industries has also entered the “Health & Beauty” market with two unique pepper based products. “PepperCare” is a skin conditioning cream used to relieve itchy dry skin, and topical conditions related to Dermatitis and Eczema. “Capsiderm” is the world’s first chili pepper face & body wash, and aside from reducing lines and wrinkles, it’s also considered to be one of the best acne products on the market.

“Capsiderm tightens lines and brings color to the face by increasing blood flow to the surface of the skin, and it doesn’t burn. We use a much lower heat pepper to create Capsiderm. We start with a traditional African black soap base imported directly under an exclusive fair trade agreement. Then we add green tea, honey and other herbals along with our special pepper extract to create the final product. It’s truly the best soap in the world and we can barely keep it in stock, but it’s very hard to make,” says Perry.

SiCap has also launched several weight loss products using Capsaicin including: Pepper Slim: Pepper Boost and Pepper Trim. In addition, the company is releasing two very promising new products this November.

“Pepper Flex” is a roll-on that uses all natural ingredients combined with pepper extracts to relieve topical, muscular and joint pain. The second product is “Capzicaine,” the world’s first sore throat spray to use Capsaicin as its’ main active ingredient.

“Not only will Capzicaine stop any sore throat on contact, but it also helps curb coughing as well as shortening the length of cold symptoms. Along with the pepper extracts, we also use Slippery Elm and Wild Cherry Bark which prove extremely effective in curbing coughs,” says Perry.

With products now in several thousand stores throughout North America, Europe and Asia, SiCap is planning to initiate a major retail rollout over the coming months. In addition, SiCap has also begun to private label natural health products for companies in America and abroad.

“We’re about to launch a bunch of new marketing initiatives to support our retailers. It’s all about getting our products into every store out there, and then getting the customers into the stores to buy the products. So far, Sinus Buster has been a top seller among national nasal sprays and most of our stores are selling out every month. The key here is to bring natural products to the consumer at competitive prices,” adds Perry.

So how can a supposed “Start Up” venture such as SiCap Industries manage to keep prices low while distribution doubles yearly?

Unlike the normal business models followed by most health product manufacturers, SiCap has chosen the roughest route. Instead of having their products made by private label laboratories and contract manufacturers, this “Little Company that could”, has produced their own products “in house” since incorporating in 2004.

“We’ve learned a lot along the way, and this venture started in my kitchen back in 1995. Today we have a beautiful FDA registered lab, five thousand square feet of office space, and more than a million regulars customers. Just two years ago, our advertising budget was five thousand bucks a year and today it’s nearing the million mark,” Perry adds.

Instead of dealing with distributors and brokers who carry thousands of unrelated products, SiCap Industries distributes their products directly to retailers -- thus cutting out the “middle-man” and keeping the consumer’s end price down. According to SiCap officials, it was extremely hard to go against the grain of traditional retail / wholesale markets, but the company’s efforts are now paying off in a big way.

“Our sales have already doubled over 2005, and we haven’t even gotten into the fourth quarter yet. 2006 has been a stellar year for us so far. Even if we didn’t make another sale until 2007, SiCap has already beaten last year’s sales by more than one hundred percent. That’s unheard of in businesses that are barely three years old. This company is a real winner,” says Scott Latella, National Sales Director for SiCap Industries.

To date, SiCap’s sales and distribution have more than doubled from year to year with no end in sight. Recently, the company has been fielding offers from several venture capital groups looking to jump on their “Pepper Bandwagon,” but SiCap officials are quick to point out that they’re in this venture for the long haul. According to Perry himself, present management has no aspirations of entertaining any structured buy-outs.

“We have operated in the black since day one, and with zero start up capital. Our products have paid all the bills from the start, and we already have one product on its’ way to becoming a household name -- Sinus Buster.”

For a corporation that was spawned in a modest kitchen less than three years ago, it seems SiCap Industries has already achieved what other start-up corporations can only dream of -- Net Profits.

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Wayne Perry
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