Cough-cold, switches drive growthinfo.exlevents.com/rs/exlevents/images/C656_OTC-Trends.pdfMar 09,...

1 • march 9, 2015 drugStoreNewS.com

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By Michael Johnsen

There was a $1.1 billion gain in OTC sales be-tween 2013 and 2014, according to data culled from IRI, some $500 million of which can be at-tributed to an increase in sales across all cough-cold/allergy/sinus products and an approximate $300 million to a rise in digestive sales. Those two categories where home to the two most signifi-cant switches in the past year — Chattem’s Na-sacort Allergy 24HR ($130 million in sales for the 52 weeks ended Dec. 28, 2014 across total U.S. multi-outlets, according to IRI) and Pfizer’s Nex-ium 24HR ($158.2 million), respectively.

Cough-cold has been a big driver in OTC sales lately, Kurt Jetta, TABS Group CEO, told Drug Store News. Other categories that have ex-hibited strong sales velocities include vitamins and first aid, he said. “In general, there just seems to be a lot of solid activity,” he said. “Four of the top five categories have some really solid underpinnings of continued growth. Cough-cold is the only one that, by definition, can be hit or miss just based on the season.”

New to the top 10 OTC products list this year is Pharmavite’s Nature Made, across both their mineral supplement and letter vitamin lines, re-spectively. Pharmavite has successfully outpaced category growth across the category, which has been relatively flat.

Cough-cold, switches drive growthotc and natural supplement market*

* In billions; percent reflects share of total OTC/natural health segments1 Includes vaginal treatments, all other feminine hygiene/medical treatments. 2 Includes sexual health, personal lubricants. 3 Includes home health care/kits, family planning. 4 Includes hemorrhoidal cream/ointment/spray, hemorroidal remedies, lip treatment, caffeine tablets/liquids, epsom salts, lice treatments, wart removers. 5 Includes ear care products and ear drops/treatments, eye/contact lens care products. 6 Includes first aid tape/bandage/gauze, first aid kits, muscle/body support devices, first aid treatment. 7 Includes weight control/nutrition liquid/powder, weight control candy/tablets, energy shots, nutritional/intrinsic health value bars. 8 Includes external analgesic rubs, internal analgesics, heat/ice packs. 9 Includes motion sickness, gastrointestinal tablets, gastrointestinal liquids, adult incontinence. 10 Includes hand sanitizer, chest rubs, humidifiers, cold/allergy/sinus liquids, cough drops, cough syrup, nasal products, cold/allergy/sinus tablets, cold sore medication. Source: IRI for the 52 weeks ended Dec. 28, 2014, across total U.S. multi-outlets (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

ToTal = $41.3 billion

Cough-Cold/allergy/sinus10

$8.2/19.9%

Vitamins$6.5/15.7%

weight loss/nutritional meal replaCements9

$5.6/13.6%

digestiVes8

$5.6/13.6%

pain relief7

$4.4/10.7%

first aid6

$2.9/7.0%

eye Care/ ear Care5

$1.9/4.6%

misCellaneous health remedies4

$1.3/3.1%

foot Care$1.1/2.7% sleeping remedies

$0.4/1.0%diagnostiCs3

$1.1/2.7%

intimaCy health2

$0.9/2.2%

feminine Care1

$0.5/1.2%

smoking Cessation$0.9/2.2%

MORE ONLINE >>• Cough-cold • Digestives • Pain • Vitamins, minerals and supplements • Rx-to-OTC switch

To view the full report, visit DrugStoreNews.com/resources

DSN: What is the state of the over-the-counter industry for 2015?

Scott Melville: I can tell you it’s an exciting and dynamic time to be involved with the busi-ness of OTC medicine. … Over the past year or so [there] has been really an unprecedented level of transactions across our membership. We’ve seen mergers, acquisitions, joint ventures, portfolio rationaliza-tion. … And that’s good news, I think, for the industry because people are looking to get into the industry, or to expand if they’re already in it. That’s a strong sign of health for our industry. We’re very engaged and poised to play an even greater role in our nation’s evolving healthcare system as it continues to move toward a more value-based system.

DSN: What is CHPA focused on this year with all of those dynamics in play?

Melville: There’s a lot on our plate right now, but from a very high level, we’re in the middle of a good first draft of what our future healthcare system will look like, how it’s accessed and how it’s going to be paid for. We really think that plays right into our industry’s sweet spot. But I

think we as an industry — and certainly as an association — have to do a better job of letting stakeholders

and policy makers know about the value

proposition that OTC medicines provide. If we do that well, it is foundational to everything else that we do. So we’re focused on quantifying and communicat-ing that value … that for every dollar a consumer spends on an OTC medicine, it saves the healthcare system $6 to $7.

DSN: What is CHPA doing on the legislative front?

Melville: The FSA issue con-tinues to be one of our top priorities — if not our top priority — from a legislative perspec-tive. … We’re hopeful that with two years left in the president’s administration and a congress that is likely to start moving legislation and sending it to him, that this will be at the top of the list for the kind of common sense reforms that President [Barack] Obama has said that he’d be willing to consider.

Another issue that we’re very concerned about and very active on is educating consum-ers on safe use, safe storage and safe disposal of medicines. … We’re going to spend a lot of time in 2015 working with our brethren in the prescription industry, both pharma and the generic associations, and with the biotechnology industry and association, and with our retail partners [on this issue].

In preparation for the Consumer Healthcare Products Association’s 2015 Annual Executive Conference being held in Bonita Springs, Fla., this month, Drug Store News sat down with both Scott Mel-ville, CHPA president and CEO, and Patrick Lockwood-Taylor, CHPA chair and VP personal health care, North America, for Procter & Gamble.


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Q&APoised for greatnessScott Melville, CHPA

CHPA leadership talks state of the industry

DSN: What is the state of the OTC industry for 2015?

Patrick Lockwood-Taylor: First, what we’re finding is 20 million Ameri-cans are now newly insured. And what we see is they’re coming into the healthcare system just as we’re reaching an acute shortage of primary care physicians. … The second big megatrend is an aging population. By 2030, 20% of the U.S. population is going to be 65 years or older. So a newly insured, aging population, looking for effective, safe, low-cost healthcare solutions — that’s where OTC obviously comes in.

DSN: You mentioned the influx of newly insured patients and the shortage of primary care physicians. Can you talk about one other trend we are seeing — the transference of the health care burden from payers to the consumer?

Lockwood-Taylor: Employee out-of-pocket expenses on health care [have increased] 40% just in the past three years. Consumers are worried. According to IRI, half of all Americans are concerned about paying for health care as they grow older. They see the shift of cost burden to them. They’re doing the math. They’re extrapolating forward and they’re worried.

DSN: As these strategic shifts progress, what is the role of CHPA in helping to navigate these shifts?

Lockwood-Taylor: Let’s start with consumers. First CHPA has a re-sponsibility to educate consumers on OTCs, what they are, the condi-tions they cover, the benefits of usage, how they offer very high value as low-cost alternatives to prescriptions and to PCP visits, to share more about the safety and efficacy profile. … Another area for us to work to is payers and providers, [who] are not always recommending the lowest cost and equally effective treatment. We need to do more work with payers and providers to get them more integrated in the process of educating [and directing] consumers to OTC.

Q&ALow-cost solutionsPatrick Lockwood-Taylor, CHPA, P&G


Consumers stock up prior to cold, flu seasonBy Michael Johnsen

Immunity boosters and hand sanitizer are on most shopping lists as consumers prepare their families for the inevitable sniffles, sneezes and coughs associated with the cold and flu season. As many as 53.5% of shoppers are placing hand sanitizer into that pre-sea-son basket, according to a survey conducted by Field Agent on behalf of Drug Store News, and 50.3% are stocking up on immunity boosting supplements.

More than taking precautions to fend off a cold, however, consumers are preparing for the worst — 74% buy OTC medicines in advance of the cold and flu season. While some respondents will wait to buy remedies only when needed, the majority of consum-ers (68%) always keep cough-cold remedies on hand.

When someone in the household does get sick, the overwhelming majority of consumers (90%) clean and disinfect more often in an effort to contain the virus. It’s a good thing, too, as only 34.8% quarantine the sick person in an effort to prevent the cold from spreading. Half of respondents also stock up on hand sanitizer and/or take immunity boosters at the first sign that someone is coming down with a cold.

Most families (64%) suffer on average two to four colds per year. In response, even more families (78.5%) are buying the same — between two and four cough-cold products per year.

Respondents shop the cough-cold aisle primari-ly by symptom (71%). Brand (17%), ingredient (8%) and price (5%) are far less important to shoppers.

Dayquil/Nyquil is the leading brand for treating cough-cold symptoms (72%), followed by Mucinex (49.5%) and Tylenol Cold (48%).

The survey of 400 respondents was conducted Jan. 27 by Field Agent, which provides business in-formation and consumer insights by leveraging tra-ditional methodologies and incorporating new, cut-ting-edge crowd-sourcing and mobile technologies to deliver real-time information about purchasing behavior and attitudes. To learn more about Field Agent, visit www.FieldAgent.net.

cough-cold

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How do you prepare for cougH-cold season? (Select all that apply)

Note: This survey was done by users with mobile devices (smartphones and tablets).Source: Field Agent (n=400)

12.8%

How many otc cougH-cold remedies do you buy to treat a cold?

0-1 2-4 5-6 7 or more

78.5%

7.5%1.3%

70.8%

How do you sHop tHe cougH-cold aisle most often?

Symptom Brand Ingredient Price

16.8%7.5% 4.5% 0.5%

Other

Buy OTC medicines

Get extra rest

Buy vitamins

Stock up on hand sanitizer

Take immunity boosters

Buy antibacterial wipes

Get a flu shot

Buy spray disinfectants

Limit exposure to people

Other

74.0%

56.3%

56.0%

53.5%

50.3%

50.0%

47.3%

44.3%

42.0%

4.8%

wHat items do you typically buy to treat cold symptoms? (Select all that apply)

Decongestant

Tissues

Cough drops

Cough syrup

Pain reliever

Vitamins

Lip balm

Chest rub

Supplements

Dehumidifier

Other 3.0%

15.0%

30.8%

38.3%

39.0%

46.0%

69.0%

73.5%

77.8%

78.0%

85.3%

To view the full Cough-Cold report, go to DrugStoreNews.com/exclusive-consumer- insights-cough-cold

4 • March 9, 2015 drugStoreNewS.com

Nasal switches ring up incremental salesBy Michael Johnsen

Chattem’s launch of the first nasal corticosteroid onto OTC shelves represented the most significant success story in the cough-cold-allergy space in the past year. The well-executed launch about a year ago featured a literal “shelf talker” — a bat-tery-powered, on-demand video screen merchandised alongside the new product. And the amount of truly incremental sales Nasa-cort Allergy 24HR contributed to the category was $130 million for the 52 weeks ended Dec. 28 across total U.S. multi-outlet, according to IRI. Today, it’s the No. 5 aller-gy remedy, and 3-of-the-4 allergy remedies with more sales than

Nasacort still experienced growth in the past year, so there was little cannibalization.

And now a second nasal cor-ticosteroid is coming to market: GlaxoSmithKline’s Flonase. Con-sidering that Chattem is only in year two of its Nasacort launch plan, and the fact that GSK in its own right has a strong heritage successfully shepherding switches to the self-care aisle, overall allergy sales are expected to continue on a sharp upward trajectory. “Based on other types of switch dynamics, in general it’s highly incremental to the category,” noted Kurt Jet-ta, TABS Group CEO. “It usually takes a 10% to 20% chunk from the existing companies, [but] much of that can be mitigated if they dial

up the promotional activity. Over-all, for retailers it’s going to be a pretty major [lift],” he said, sug-

gesting that like Nasacort, Flonase should realize well over $100 mil-lion in first-year sales.

cough-cold aNd allergy

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* In millions** Includes hand sanitizer, chest rubs, humidifiers, cold/allergy/sinus liquids, nasal products, cold/allergy/sinus tablets and cold sore medication Source: IRI for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

Top 10 cold, allergy and sinus products**

braNd SaleS* % SaleS Chg $ Share $ Share Chg uNit SaleS* % uNit Chg avg priCe avg priCe Chg

Zyrtec tablets/packets $327.6 3.3% 7.5% 0.0% 16.6 -2.0% $19.77 $1.02

Claritin tablets/packets 217.5 1.6 5.0 -0.1 13.0 -2.2 16.78 0.64

Alka Seltzer Plus tablets/packets 208.3 8.5 4.8 0.2 34.0 6.1 6.12 0.13

Allegra tablets/packets 197.0 -2.9 4.5 -0.3 10.9 -6.9 18.09 0.73

Vicks NyQuil liquid/powder 170.2 7.9 13.6 -1.0 18.9 1.7 9.03 0.52

Mucinex DM tablets/packets 154.6 -7.1 3.5 -0.4 10.1 -7.0 15.37 -0.02

Mucinex tablets/packets 154.0 6.1 3.5 0.1 9.6 7.8 15.98 -0.25

Claritin D tablets/packets 135.7 -5.9 3.1 -0.3 7.0 -8.3 19.27 0.49

Abreva cold sore medication 132.0 5.8 63.8 0.6 6.9 2.9 19.03 0.51

Nasacort liquid/powder 130.0 NA 10.3 10.3 7.8 NA 16.73 NA

* In millions† Supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chainsSource: IRI for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

Sub-Categorymulti-outlet

SaleS* % Chgdrug

SaleS* % Chg

Cold/allergy/sinus tablets $4,363.5 3.2% $1,957.8 2.6%

Cold/allergy/sinus liquids 1,256.1 15.5 527.9 15.0

Nasal products 698.5 2.8 328.5 0.7

Cough drops 591.8 1.3 236.1 0.7

Cough Syrup 517.4 1.5 254.8 1.1

Humidifiers 282.7 -1.7 63.1 1.6

Hand sanitizer 223.0 4.9 42.4 2.8

Cold sore medication 206.7 4.9 115.0 4.1

Chest rubs 90.9 2.0 40.1 4.0

TOTAL $8,230.6 NA $3,565.7 NA

Cough-cold and allergy sales by channel

Top 5 cough/sore throat drops and cough syrup vendors


Mondelez cough/sore throat drop $269.2 2.5% 45.5% 0.5% 130.1 -5.3% $2.07 $0.16

Reckitt Benckiser cough syrup 141.3 -5.5 29.8 -2.3 12.3 -6.9 11.52 0.17

Ricola cough/sore throat drop 120.2 4.2 20.3 0.6 49.9 -1.1 2.41 0.12

Pfizer cough syrup 107.4 14.7 22.7 2.6 14.7 9.7 7.32 0.32

Prestige Brands cough/sore throat drop 52.1 0.5 8.8 -0.1 26.2 -0.4 1.99 0.02


Old products see new life in categoryBy Michael Johnsen

The gastrointestinal and adult incontinence categories have been really shaken up by a what’s-old-is-new-again theme. Among antac-ids, Chattem has breathed new life into the venerable Rolaids brand while Pfizer launched a fourth proton-pump inhibitor onto OTC shelves with Nexium 24HR — both launches have helped contribute to a 5.7% lift in category sales.

“Pfizer has done a very good job [promoting Nexium],” noted Perri-go president and CEO Joseph Papa, who’s eyeing future store brand op-portunities. “They have the product at a $300 million run rate, which for a [fourth] launch of a proton-pump

inhibitor has done well.”Procter & Gamble last year re-

entered the adult incontinence cat-egory with Always Discreet and is banking on successfully transfer-ring the brand loyalty associated with its Always feminine care line to an older consumer base.

“We’re accelerating the growth of the adult incontinence category with Always Discreet,” commented Jon Moeller, P&G CFO, to analysts. “One-in-3 women over 18 years old suffers from incontinence, but only 1-in-9 uses an incontinence product.”

And Novartis is in the process of reinvigorating its Benefiber franchise even as P&G line extends its fiber supplement Metamu-cil with a fiber bar and probiotic branded Meta-Health Bars and Meta-Biotic, respectively.

digeStiveS

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* In millionsSource: IRI for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

Top 20 digestives products

brand SaleS* % SaleS Chg $ Share $ Share Chg unit SaleS* % unit Chg avg priCe avg priCe Chg

Depend adult incontinence $370.4 8.4% 24.6% 0.5% $24.5 5.7% $15.15 $0.37

Poise adult incontinence 361.1 5.0 23.9 -0.2 45.3 4.3 7.98 0.06

Prilosec OTC antacid tablets 311.3 -13.4 14.9 -3.3 17.4 -12.7 17.85 -0.13

Miralax laxative/stimulant liq/pwdr/oil 191.6 5.4 29.7 -0.4 14.3 4.3 13.41 0.15

Nexium 24HR antacid tablets 158.2 NA 7.6 7.6 8.5 NA 18.61 NA

Metamucil laxative/stimulant liq/pwdr/oil 123.4 13.1 19.1 1.1 8.6 6.5 14.37 0.84

Zantac 150 antacid tablets 119.1 3.8 5.7 -0.1 10.9 4.4 10.90 -0.07

Tena Serenity adult incontinence 104.7 -7.8 7.0 -1.0 10.0 -3.0 10.52 -0.56

Dulcolax laxative tablets 103.3 -2.1 14.8 -0.7 14.6 -3.4 7.07 0.09

Prevacid 24HR antacid tablets 88.7 -4.9 4.3 -0.5 4.6 -7.3 19.27 0.49

Tums Ultra antacid tablets 84.9 -0.2 4.1 -0.2 16.7 1.4 5.07 -0.08

Pepto Bismol stomach remedy liq/pwdr 84.5 1.7 48.2 1.5 16.7 2.6 5.07 -0.04

Imodium diarrhea tablets 79.7 -3.6 45.0 -1.2 8.9 4.5 8.94 -0.75

Gas X antacid tablets 66.6 -2.3 3.2 -0.3 9.8 -9.3 6.79 0.49

Tums Ex antacid tablets 58.8 -13.4 2.8 -0.6 17.2 -17.5 3.42 0.16

Depend Silhouette adult incontinence 50.4 -2.8 3.3 -0.3 3.5 -16.2 14.43 2.00

Pepcid AC antacid tablets 49.7 -3.6 2.4 -0.2 4.4 -2.7 11.34 -0.11

Alka Seltzer antacid/analgesic combo 47.6 -0.4 84.7 3.7 9.6 -1.7 4.96 0.06

Benefiber laxative/stimulant liq/pwdr/oil 42.2 181.3 6.5 4.1 3.0 177.6 13.89 0.18

Pepcid Complete antacid tablets 41.0 19.9 2.0 0.2 2.8 26.2 14.54 -0.77

* In millions Source: IRI for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

Sub-CategOrymulti-Outlet

SaleS* % Chgdrug

SaleS* % Chg

Antacid tablets $2,088.2 5.7% $707.5 7.4%

Adult incontinence 1,508.1 6.0 461.2 4.1

Laxative tablets 697.3 2.5 306.8 1.4

Laxative/stimulant liquid/powder/oil 645.6 6.8 231.4 3.0

Diarrhea tablets 177.3 -1.1 73.1 -3.1

Stomach remedy liquid/powder 175.5 -1.5 60.4 -2.4

Antacid liquid/powder 99.1 4.6 46.5 12.5

Antacid/analgesic combo tablets 56.2 -4.8 16.8 -3.4

Stomach remedy tablets 53.5 -0.3 22.0 3.3

Diarrhea medicine liquid/powder 40.5 4.8 20.4 1.3

Motion sickness 16.6 2.7 10.3 2.9

TOTAL $5,557.9 NA $1,956.4 NA

Digestives by channel


Niche brands bring relief to pain categoryBy Michael Johnsen

Outside of McNeil Consumer’s Tylenol continuing to reclaim its top spot among best-selling anal-gesics, a lot of the up-and-comers in the pain relief category repre-sent niche brands. Hisamitsu’s Salonpas is a classic example, with $58 million in sales for the niche pain patch on sales growth of 22.7% for the 52 weeks ended Dec. 28, 2014, across total U.S. multi-outlets, according to IRI.

The homeopathic ingredient ar-

nica is another fast-growing niche opportunity. “Anything with the word ‘arnica’ in it right now is hot,” commented Les Hamilton, Hyland’s EVP.

In addition to arnica, Hyland’s is promoting its Leg Cramps products against the fast-est-growing niche sport in Amer-ica — Pickleball. “We are the lead sponsor of the Pickleball Channel,” Hamilton said. “It’s a cross between tennis, badminton and ping pong, and it’s typically played in older communities.”

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Top 20 pain products


Advil internal analgesic tablets $486.2 -1.3% 15.2% -0.4% $64.8 -3.1% $7.51 $0.14

Aleve internal analgesic tablets 379.8 4.0 11.9 0.3 50.0 2.8 7.59 0.09

Tylenol internal analgesic tablets 253.2 26.2 7.9 1.6 36.0 21.3 7.02 0.27

Bayer internal analgesic tablets 227.3 2.0 7.1 0.1 39.3 0.6 5.79 0.08

Icy Hot external analgesics rubs 112.9 2.2 22.3 -1.1 19.1 2.0 5.90 0.01

Advil PM internal analgesic tablets 89.3 -1.2 2.8 -0.1 10.8 -5.2 8.25 0.33

Excedrin Migraine internal analgesic tablets 75.7 -0.8 2.4 -0.1 10.8 -4.1 6.98 0.23

Excedrin internal analgesic tablets 63.7 15.5 2.0 0.3 8.9 13.4 7.12 0.13

Motrin B internal analgesic tablets 60.2 24.7 1.9 0.4 6.7 30.9 9.00 -0.45

Salonpas external analgesics rubs 58.0 22.7 11.5 1.5 14.8 17.7 3.92 0.16

Thermacare heat/ice packs 57.7 -6.7 24.4 -1.6 8.7 -9.5 6.61 0.20

Children’s Tylenol internal analgesic liquids 55.3 7.0 13.3 0.2 8.1 4.0 6.79 0.19

Children’s Motrin internal analgesic liquids 55.1 15.2 13.3 1.1 8.1 13.1 6.77 0.12

Tylenol internal analgesic liquids 48.8 319.6 11.8 8.8 6.5 317.0 7.51 0.05

Bengay external analgesics rubs 44.4 -4.0 8.8 -1.0 6.9 -5.1 6.39 0.07

BC internal analgesic tablets 44.1 5.1 1.4 0.1 11.4 4.4 3.86 0.02

Midol feminine pain relievers 42.5 -6.0 47.3 3.3 6.8 -7.1 6.24 0.08

Goody’s internal analgesic tablets 37.6 0.4 1.2 0.0 9.9 0.1 3.81 0.01

Aspercreme external analgesics rubs 32.5 -2.0 6.4 -0.6 6.5 -1.1 4.98 -0.05

Children’s Advil internal analgesic liquids 30.3 -11.3 7.3 -1.4 5.0 -13.9 6.07 0.18


Sub-Categorymulti-outlet

SaleS* % Chg drug SaleS* % Chg

Internal analgesic tablets $3,198.7 1.3% $1,078.4 0.4%

External analgesic rubs 506.8 7.2 240.9 5.6

Internal analgesic liquids 414.6 5.6 172.3 2.5

Heat/ice packs 236.8 -0.5 128.7 -0.2

Feminine pain relievers 90.0 -12.6 35.6 -10.9

TOTAL $4,446.9 NA $1,655.9 NA

Pain by channel


Growth in four need states across VMS By Michael Johnsen

While overall sales of vitamins are relatively flat — $6.5 billion up 0.4%, according to IRI for the 52 weeks ended Dec. 28, 2014, across total U.S. multi-outlets — there are some significant growth opportunities within the consum-mate wellness category.

“There are four VMS need states that are realizing large-scale growth,” Tim Toll, Pharmavite chief customer officer, told Drug

Store News. Toll pointed to diges-tives (probiotics), immunity (vi-tamins C and D), beauty (biotin) and sleep (melatonin) as catego-ries within supplements that are really popping, collectively gen-erating more than $100 million in incremental dollars.

Regarding delivery forms, al-ternative sensory delivery forms are growing at plus 10% rate of growth, Toll added. “By far the largest source of growth for the category is the gummy delivery

form, growing at a plus 20% rate of growth and contributing $58.8

million in absolute dollar growth for the category.”

VitamiNS, miNeralS aNd SupplemeNtS

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Top 20 vitamin, mineral and supplement products

brand SaleS* % SaleS ChG $ Share $ Share ChG unit SaleS* % unit ChG aVG priCe aVG priCe ChG

Nature Made mineral supplements $313.6 3.2% 9.3% 0.3% $33.7 5.6% $9.29 -$0.21

Nature Made 1 & 2 letter vitamins 309.6 5.3 28.8 0.6 38.3 5.4 8.09 -0.01

Nature’s Bounty mineral supplements 276.3 -1.4 8.2 -0.2 32.3 1.6 8.54 -0.26

Centrum Silver multivitamins 188.1 -6.6 11.0 -0.6 15.9 -2.8 11.83 -0.48

Nature’s Bounty 1 & 2 letter vitamins 146.5 15.2 13.6 1.4 18.2 19.6 8.05 -0.31

Airborne multivitamins 123.9 11.9 7.3 0.9 15.9 5.1 7.80 0.47

Emergen-C liquid vitamins/minerals 114.3 6.2 29.6 0.9 14.2 7.0 8.07 -0.06

Bausch & Lomb preservision multivitamins 105.7 16.7 6.2 1.0 4.0 10.1 26.71 1.51

Sundown Naturals mineral supplements 102.7 0.5 3.1 0.0 14.4 2.6 7.12 -0.14

Schiff Mega Red mineral supplements 90.0 -2.7 2.7 -0.1 4.1 -3.4 22.02 0.15

One A Day Vitacraves multivitamins 85.6 16.1 5.0 0.8 8.3 18.7 10.27 -0.23

Osteo Bi Flex 5 Loxin advanced mineral supplements

85.2 -15.6 2.5 -0.5 4.5 -13.6 18.90 -0.44

Culturelle mineral supplements 80.2 19.7 2.4 0.4 3.8 16.7 21.09 0.52

Align mineral supplements 71.6 0.7 2.1 0.0 2.2 -0.1 33.25 0.26

Centrum multivitamins 67.6 -11.5 4.0 -0.4 6.1 -13.6 11.09 0.27

Vitafusion multivitamins 62.1 14.6 3.6 0.5 6.1 13.2 10.26 0.13

Sundown Naturals 1 & 2 letter vitamins 61.6 3.3 5.7 0.0 9.4 3.5 6.54 -0.01

Nature’s Way Alive multivitamins 61.6 20.7 3.6 0.7 6.1 16.9 10.11 0.32

Caltrate mineral supplements 60.0 -6.7 1.8 -0.1 5.2 -5.7 11.57 -0.12

Bausch & Lomb Ocuvite multivitamins 60.0 -4.8 3.5 -0.1 4.3 -10.7 13.88 0.86


Sub-CateGoryMulti-outlet

SaleS* % ChGdruG

SaleS* % ChG

Mineral supplements $3,357.9 0.4% $1,291.5 1.9%

Multivitamins 1,705.5 -1.7 511.8 -1.8

One- & two-letter vitamins 1,076.8 3.0 397.5 3.8

Liquid vitamins/minerals 385.8 3.1 136.2 7.0

TOTAL $6,526.0 NA $2,337.0 NA

Vitamins, minerals and supplements by channel


Chattem’s Nasacort Allergy 24HR ahead of curveAccording to ECRM’s analysis of circular re-

tail promotions for allergy, Chattem emerged as the leading advertiser of allergy remedies with a 26.8% share of U.S. retail ad support, an increase of 4% over their 2014 promotion share. No surprise there, as Chattem launched Nasacort Allergy 24HR in February 2014.

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Sub-category ad Support Share for allergy productS

70.6%

8.7%

9.0%

11.7%

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Walgreens 226.8 740

CVS 223.1 650

Kinney Drugs 205.2 306

Rite Aid 177.9 487

Lewis Drug 111.8 164

FSI (U.S.) 89.4 168

Giant Eagle 85.0 153

Bartell Drug 72.9 125

ShopRite 71.4 158

F.W. Albrecht Grocery 67.5 97

Jewel-Osco (NAI) 64.9 110

U.S. retailers running the most circular ads for allergy

Manufacturer Share of u.S. retail ad Support for allergy

McNeil Consumer Healthcare: 23.1%

Chattem: 26.8%

Private label manufacturer: 22.2%

Merck: 18.0%

Reckitt Benckiser CP: 4.4%

Procter & Gamble: 2.3%

Pfizer Consumer Healthcare: 1.5%

Bayer: 0.5%

Zicam: 0.3%

Undefined: 0.2%

McKesson: 0.2%

Prestige Brands International: 0.2%

n Children’s allergyn Allergy liquidsn Allergy spraysn Allergy tablets/capsules/gels

Antacid tabs: Digestive’s hot-ticket itemAlmost half of all circular ads in support of

a digestive remedy promote an antacid tablet. Pfizer’s Nexium 24HR was the No. 2 most-pro-moted brand in the category. No. 1? Market lead-

er Prilosec. Procter & Gamble has managed to keep the first PPI to switch top-of-mind among consumers despite heavy competition from both private label and branded players.

RetAileReffeCtive

CouNtfeAtuRe CouNt


Rite Aid 303.6 842

CVS 277.9 792

Walgreens 248.9 662

Navarro Discount Pharma. 194.0 428

Thrifty White Drug Stores 180.3 243

FSI (U.S.) 161.5 267

Lewis Drug 141.9 187

Kmart 122.6 301


King Kullen 107.0 124

U.S. retailers running the most circular ads for digestives

Manufacturer Share of u.S. retail ad Support for digeStiveS




Glaxo Smithkline: 7.5%

Merck: 6.3%

Boehringer-Ingelheim/Roxane: 6.0%Chattem: 4.9%Novartis Consumer Health: 4.7%

Bayer: 4.6%McNeil Consumer Healthcare: 2.8%

Undefined: 1.2%

i-Health: 1.0%

Sub-category ad Support Share for digeStive productS

49.7%

3.8%

7.5%

13.9%

n Motion sickness n Hemorrhoidaln Anti-diarrheal n Probiotics n Antacid liquid/powder n Laxative tabletsn Laxative liquid/powder/oil n Antacid tablets

11.7%

8.5%

3.0%

1.9%

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Niche pain relievers making headwayWhile the big four analgesic manufacturers — Bayer,

Pfizer, McNeil and Novartis — command the lion’s share of retail ad support behind their mega analgesic brands, Prestige Brands and BedRock Brands are making head-way promoting their niche pain relieving products, in-cluding Ecotrin, BC and Goody’s Headache Powders for Prestige and St. Joseph’s Aspirin for BedRock.

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CouNt feAtuRe CouNt


Walgreens 191.8 481

CVS 140.9 287

Rite Aid 137.9 475

Navarro Discount Pharm. 119.5 281

F.W. Albrecht Grocery 99.1 115

Giant Eagle 85.2 123

Giant Food Carlisle 83.4 110

Martin’s Foods 83.4 109

Stop & Shop 83.3 108

Giant Food Landover 83.3 108

U.S. retailers running the most circular ads for analgesics

Manufacturer Share of u.S. retail ad Support for analgeSicS

Bayer: 26.8%



McNeil Consumer Healthcare: 9.6%

Novartis Consumer Health: 7.1%

Prestige Brands International: 2.3%

BedRock Brands: 1.5%


Undefined: 0.3%

McKesson: 0.3%

Hyland’s: 0.2%

Alva-Amco Pharmacal: 0.2%

Sub-category ad Support Share for analgeSic productS

67.0%

6.1%

11.6%

15.3

n Children’s analgesicsn External analgesicsn Sleep aidsn Internal analgesics

BOGO offers dominate VMS segmentFor most categories, circular promotions

touting price only are the most prevalent form of advertising, as opposed to a percent off or another savings incentive. That’s not

the case in the supplement segment, where buy-one-get-one offers represent 58.5% of all circular ads as compared with 21.2% of price-only promotions.

RetAileReffeCtive

CouNtfeAtuRe CouNt

Walgreens 667.2 2,405

Rite Aid 427.0 1,996

CVS 417.2 1,201


Navarro Discount Pharm. 246.2 389

Walmart-U.S. 222.0 263

ShopRite 209.5 437


Longs Drug (Hawaii) 168.2 316

Tops Markets 148.5 280

Jewel-Osco (NAI) 144.6 763

U.S. retailers running the most circular ads for VMS

Manufacturer Share of u.S. retail ad Support for vMS


United States Nutrition: 24.0%

Pharmavite: 15.4%


Bayer: 8.5%

Reckitt Benckiser: 4.5%Church & Dwight: 4.2%Undefined: 2.8%

Valeant Pharmaceuticals: 1.4%Natrol: 0.9%

Alcon Laboratories: 0.9%

Mason Vitamins: 0.5%

Sub-category ad Support Share for vMS productS

57.4%

12.2%

n Eye vitamins n Herbalsn Minerals n Non-herbal supplements n Vitamins

19.3%

1.6%

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9.5%


Vitamins see meaningful new product introsBy Michael Johnsen

There were as many as 232 meaningful new product introductions across the vitamins cate-gory for the 12 months ended in January, accord-ing to Competitive Promotion Report’s “New Product Flash Report,” the most of 12 categories examined by CPR for trade spending trends. So it should come as no surprise that trade spending across the vitamin category is almost double that

of any other category, with a 21% average off-in-voice allowance level, a 23% average bill back al-lowance level and a 22% average discount level.

“Trade spending across the top HBW cat-egories reflected average spending of 10% for off-invoice allowances, an average of 10% for bill-back allowances and an average of 11% for total promotional discounts,” noted Glen Davis, president and CEO of CPR. “The relationship between the number of new products in the vi-

tamin category and average discount spending can be explained due to the overall aggressive promotional planning required to support this number of new entries.”

Taking a deeper dive into the vitamin cat-egory, NBTY introduced the most new promo-tional deals for the 12 months ended in January at 1,726, providing an average 28% in off-invoice allowances, 26% in bill-back allowances and 28% for promotional discounting.

trade SpeNdiNg treNdS

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Source: CPR New Product Flash Report for the 12 months ended in January

10%

AverAge off-invoice AllowAnce levels

Skin care

11%

21%

13%

9%10%10%

8%9%

8%7%

6%

Oral hygiene

Hair care

First aid

Analgesics - internal

Laxatives

Cough-cold internal

Antacids

Analgesics - external

Feminine hygiene

Cough-cold external

Vitamins

AverAge discount levels

Oral hygiene

Skin careFirst

aid

Cough-cold internal


LaxativesAntacids

Hair care


Feminine hygiene

Cough-cold external

Vitamins

11% 11%

22%

13%

9%

11%10%

8%9%9%

7%7%

AverAge Bill-BAck AllowAnce levels

First aid

Cough-cold internal

Oral hygiene

Skin care

Hair care


LaxativesAntacids

Cough-cold external


Feminine hygieneVitamins

12% 12%

23%

12%

9%10%

9%

7%

9%8%

7%

4%

numBer of new products

Vitamins

Skin care

Cough-cold internal

Cough-cold external

Hair care

Oral hygiene

First aid

Laxatives


Antacids

Feminine hygiene


232

200

151

102

68

59

49

44

40

37

32

23

By Michael Johnsen

Two big switches significantly helped to increase OTC sales in the past year in Nexium 24HR and Nasacort Allergy 24HR. A third, Flonase, is expected to simi-larly impact the allergy category in the coming year, and there are many more Rx-to-OTC switches in the pipeline.

There are at least 35 ongoing switch projects in various stages, noted Steve Francesco, president of Francesco International and chairman of the ExL Pharma’s Rx-to-OTC Switch Summit, over the course of his presentation held in Philadelphia in December 2014, which may culminate in as many as seven switch approvals through 2016. That includes the Holy Grail of switches — Pfizer’s statin Lipi-tor, Francesco said.

Industry consolidation will play a role in bringing more switches to market in the coming years, such as the recent GlaxoSmithKline/Novartis joint venture and Bayer’s acquisition of Merck. Bigger medi-cine portfolios correlate to more significant budgets, and that’s con-ducive to making the switch ROI math work, Francesco suggested.

There also are market forces at play outside of the traditional switch model that will influence the availability of future switch medicines — healthcare technol-ogy that can be used to enhance drug labeling, reduce self-selection concerns and address emergent signs or symptoms with the switch of a product, Francesco added.

Companies that couple that healthcare technology with switch, creating what Francesco has coined as an “enabled OTC,” open the door

for use of nonprescription medi-cines in chronic disease manage-ment scenarios. OTC-E drugs will be older formulations with a strong prescription heritage and a wide safety margin that will generate at-tractive margins when introduced into the nonprescription arena.

And future OTCs will play a

greater role in managing disease states like diabetes, COPD, mild asthma and hypertension, Frances-co said. Francesco outlines the cur-rent switch paradigm in a recently published 100-page report titled “The Major Global Expansion of Rx-to-OTC Switch by 2016: OTC-E Drugs Will Lead the Way.”


More switches in pipeline will boost OTC

Pharmacists are ideally suited to assist in ensuring safe use for switch products, Tom Menighan, EVP and CEO of the American Pharmacists Association, told attendees of the ExL Pharma’s Rx-to-OTC Switch Summit in December. Pharmacists can help guide pa-tients through a selection process.

“Let’s use Lipitor as an example,” Menighan told Drug Store News. “If a patient needs to be

screened, 1) be aware of the implications of high cholesterol, high lipid levels; 2) [have] some un-derstanding of the basic dietary issues that we can exert some control over in terms of nutrition; 3)[determine] that it’s important to stay connected with your primary healthcare provider,” he said. “If those [issues] are covered and the consumer gets it, then a safe medication to help lower cho-lesterol and other lipids may not be a bad thing.”

The role pharmacists can play in successful-ly bringing a medicine from Rx-to-OTC with a more complex safe usage criteria is only limit-ed by creativity, Menighan said. “At the end of the day, pharmacists are in a great position to help support those messages,” he said. “This is not about disaggregating patients from the healthcare system, this is about helping them get back into it.”

rx-to-otc Switch

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Source: DSN research

Brand Class COMpany

AcipHex PPI Eisai

Actonel Osteoporosis Warner Chilcott

Boniva Osteoporosis Genentech

Cialis ED Lilly USA

Clarinex Allergy Merck

Crestor Statin AstraZeneca

Detrol LA Overactive bladder Pfizer

Ditropan Overactive bladder Janssen Pharmaceuticals

Evista Osteoporosis Lilly USA

Fosamax Osteoporosis Merck

Imitrex Migraine GlaxoSmithKline

Lescol Statin Novartis

Levitra ED Bayer/GlaxoSmithKline

Lipitor Statin Pfizer

Pravachol Statin BMS

Propecia Male pattern baldness Merck

Protonix PPI Pfizer

Viagra ED Pfizer

Vytorin Statin Merck

Zetia Statin Merck

Projected Rx-to-OTC switch candidates

Old products see new life in category

Cough-cold, switches drive growthinfo.exlevents.com/rs/exlevents/images/C656_OTC-Trends.pdfMar 09,...

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Transcript of Cough-cold, switches drive growthinfo.exlevents.com/rs/exlevents/images/C656_OTC-Trends.pdfMar 09,...