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Page 1: China – Sore throat remedies & medicated confec onery · Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa

China–Sorethroatremedies&medicatedconfec�onery

  YangtzeRiverLanqinKoufuyeposteddouble-digitgrowth,jumpingtoNo.3spot(fromNo.8);itisapopularchoicefordrugstorechainstopromote,asitspremiumpricegeneratesahighprofitmargin

  ManYanShuNingQingHouLiYanisalreadyapopularonlinepurchase,reportssta�ngitwasabigsellerduringtheSingles’Day(11thNovember)onlineshoppingfes�val;adedicatedflagshipstoreopenedonJD.comin2017

  2017sawRBpartnerwithaChinesemobileapp(seebox)whichwilldelivertheproducttoitsuserswithinhalfanhour,offeringrapidreliefforsorethroatscausedbysmog

  2016sawbrandpackagingrevamped,usingdifferentcolourstobe�erdis�nguishbetweenop�ons,while2017TVadsfeaturedanimatedfirefightermascotsdesignatedtoprotectthroathealth

  Bri�shmedicatedconfec�onerybrandsFisherman’sFriendandHallsgrewwell,althougharelargelyboughtandsoldassweets

  Productsbenefitfromtheirreputa�onasestablishedforeignbrands,popularwithChineseconsumers

RBtakesstepstostrengthene-commercepresenceandenhanceinnova�on

•  November2017sawRBsignastrategicco-opera�onagreementwithAlibaba’se-commercepla�ormTmallGlobal

•  Theagreementwillseethecompaniescollaborateonbrandingandmarke�ng,withRBtouseAlibaba’sdatatobe�erunderstandtrendsinthecountry,leadingtothedevelopmentofnewandinnova�veproducts

•  2017alsosawRBcollaboratewithmobileappDingdangKuaiyao,throughwhichuserscouldreceiveManYanShuNingQingHouLiYanwithinhalfanhour

•  RBalsoenteredanon-bindingmemorandumofunderstandingwithChinaResourcesSanjiuin2016toexplore“astrategicco-opera�onbetweentherespec�vegroupsinrela�ontocertaindesignatedOTCs,medicaldevicesandhealthcareproducts”ManYanShuNingQingHouLiYan:

newdesign(right)

Page 2: China – Sore throat remedies & medicated confec onery · Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa

France–Coughremedies

  Phytoxilisamedicaldeviceformulatedwithplantain,thymeandhoneyandposi�onedtorelievewetanddrycoughinthoseaged2+years;TVadsin2017-18(seeright)claimed91%ofusersweresa�sfiedwiththeproduct

  Brandwasini�allymarketedasToplexilPhyto,althoughnamewaschangedtoPhytoxilinearly2017,perhapstodifferen�ateitfrommedicatedline-upinwiderbrand

  Aboca’sGrinTusshadastrongyearin2017,withsalesmorethandoublingto$1.8mn;thenaturalproductisposi�onedforwetanddrycough,andisavailableastabletsandsyrupssuitablefrom12+yearsandapaediatricsyrupsuitablefrom1+year

  LaboratoiresGilbertlaunchedarangeofninehomeopathicsolublegranulesin2016,withcough&coldop�onsincludingHoméoRub(forcough)andHoméoQuintyl(fordry/irritablecough)

  Alsoin2016,Laboratoires3ChêneslaunchedSédatuxilSirop(plantextracts),claimedtorelievealltypesofcough,andcanbeusedfromage3+years

  InSeptember2017Recorda�launchedHexatouxSpray,amedicaldeviceformulatedwithcalendula,propolis,eucalyptus,honeyandlinseedoil

  Brandclaimstohavequick-ac�onformulathatsoothesthroatandreducesinflamma�onandirrita�on  Concernsoverefficacyhavehamperedthecoughremediesmarket,withaNovember2015studyof37OTCcoughremediesby60MillionsdeConsommateursmagazineconcludingthatmorethanhalfofthosestudiedwereineffec�ve,whilecertainop�onsposedmorerisksthanbenefits

Page 3: China – Sore throat remedies & medicated confec onery · Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa

India–Coughremedies

  Concernsoversafetyofallopathicformula�ons,coupledwithuncertaintycreatedbyFDCissue,providedaboosttoherbal&naturalcoughremedies,withmoreayurvedicsmarketerslookingtoentercategorytoleveragetheopportunity

  OneayurvedicbrandalreadywellestablishedisHonitus,whichbenefitsfromhigh-profileconsumerA+P

  Promo�onalstrategychangedin2016,withadifferentcompanybeingappointedforcrea�vedu�es

  TVadsarenowmorehumorous,withonein2017showingchildrenfallingasleepinvarioussitua�ons–e.g.atafunfair,inschool,onthebackofamoped,atballetclasses–andhighligh�ngthatHonitusdoesnotcausedrowsiness(seebelow)

  In2016CentralIns�tuteofMedicinal&Aroma�cPlantsreleasedaherbalcoughsyrupposi�onedforallergiccough

  Developedoverfouryearsofresearch,itisformulatedwiththreeherbs:tulsi(holybasil),kantakari(Thaieggplant)anddalchini(cinammon)

  KevaIndustriesintroducedKevaCoughSyrup,whichboastsanon-drowsyformula�onofnaturalingredientssuchashoney,gingerandliquoricetorelievecoughandothercold&flusymptoms

  InApril2018century-oldmarketerBaidyanathannounceditwasplanningtolaunchayurvediccoughsyrupsasameanstoachievesustainablegrowth

Page 4: China – Sore throat remedies & medicated confec onery · Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa

Japan–Sorethroatremedies&medicatedconfec�onery

  Isodine(marketedinterna�onallyasBetadine)iss�llrecoveringfromeffectsof2016changeofownership;ShionogiacquiredtherightstoMundipharma’sbrandfromMeijiSeikaPharma,andresul�ngdisrup�onhasbeenreflectedinadownturninsales

  Atthe�meofownershiptransfer,Meijifiledape��onintheTokyoDistrictCourttostopShionogiandMundipharmacon�nuingtousebrand’shippopotamuslogosoMeijicoulduseitonitsownsimilarly-formulatedproduct;inresponsetothis,MundipharmachangedIsodine’slogotofeaturedogmascots

  Povidoneiodinerangeiswell-diversifiedacrossgargles,spraysandmedicatedmouthwash,andbenefitsfromvisibilityofwiderIsodinerange(whichincludesan�sep�cwipesandpersonalcareop�ons)

  NewA+Pstrategy,includingTVadsfeaturingbrandambassadorAyaUetoandpartnershipwithfootballteamtheYokohamaFMarinos,hashelpedsalesrevive

  Pelack-T,partofthePelackcold&flurange,combinestranexamicacid,liquoriceandvitaminsBandCtotreatsorethroatandstoma��s

  Promo�onalsiteexplainsthebenefitsoftranexamicacidovernon-medicatedlozengesandexplainsthevariouscausesofsorethroat

  Longlinecough&coldrangeColgenKowaalsoincludeslozenges(cetylpyridiniumchloride,glycyrrhizinate,senega)andasorethroatgargle(cetylpyridiniumchloride,glycyrrhizinate,menthol,cloveandpeppermint)

  CurrentA+Pfocusesonteachingoralhygieneandproperuseofgargleproductstochildrenviapartnershipwithparen�ngwebsiteConobie(seele�)

Page 5: China – Sore throat remedies & medicated confec onery · Fisherman’s Friend and Halls grew well, although are largely bought and sold as sweets Products benefit from their reputa

Spain–Coughremedies

  Rangeisalsopromotedviainterna�onally-usedTVadcampaign“Winteroutside,springinside”;asnowsceneonawoman’sjumperchangestospringtodepictthebrand’seffects

  Aswellascoreacetylcysteinerange,lineextensionFluimucilComplexaddsparacetamoltorelievepainandfever

  StablemateFlutox(cloperas�ne)isposi�onedfordrycough,withadsusingthetagline“Specialistindrycough”

  Despiteextensivelineextension,Bisolvonremainsindeclineinpartasaresultofitscompara�velyhighprice;unlikeFluimucilandFlutox,rangeincludesproductsforwetanddrycoughunderthesamebanneraswellassystemiccold&fluproducts(nottrackedhere),la�ergrowingsteadily

Brand &$mn 2017/16CAGR&17/13

1 Fluimucil&(Zambon) 21.8 +2% +9%

2 Flutox&(Zambon) 17.2 +2% +11%

3 Bisolvon&(Fher3/3Sanofi) 11.8 85% 81%

4 Cinfatos&(Cinfa) 10.1 +5% +7%

5 Grintuss&(Aboca) 10.0 +14% +41%

6 Mucosan&(Fher3/3Sanofi) 7.7 +2% +3%

7 Iniston&(J&J) 6.4 81% +0%

8Prospantus&&&&&&&&&&&&&&&&&&&&&&&&&&&(Ferrer3for3Engelhard)

5.4 +21% +24%

9 Romilar&(Bayer) 4.6 85% +4%

10 Actithiol&(Almirall) 4.0 +3% +5%

Others 10.6 83% 81%

Spain&leading&cough&remedies&2017&(MSP,%$mn)

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UK–Coughremedies

  Accompanyingsocialmediacampaignusedhashtag#FeelThePowerandincludedcompe��onstowinCovoniaproductsandmerchandise

  Mediareportssuggest£4mn($5.4mn)wasinvestedinna�onaladver�singintherun-upto2016/17cold&fluseason

  Late2017sawlaunchofpoten�alcompe��on,NaturesAidHerbalCatarrhReliefFormula(Thornton&Ross/Stada),essen�allyarebranded,lower-costversionofCovoniaCatarrhReliefFormula

  Ini�allyenjoyingdynamicgrowthsince2014launch,non-medicatedBronchostopstruggledforsalesin2017a�ertheASAdeclaredaTVadmustnotappearagaininitscurrentform

  Promo�onalsupportforthebrandincludedoutdoorandTVadsemphasisingitsefficacyagainstalltypesofcough,offeringcomprehensivereliefinasingleproductvscompe�torsthattargetonlyspecificsymptoms

  ASAupheldcomplaintsthaton-screentextfortheTVadwasnotclearlylegibleandconsumerswerethereforemorelikelytomissmaterialinforma�onwithinit;add-onforTVads(priortoASAruling)featuredlineextensionBronchostopCoughPas�lles,stressingtheywerevotedProductoftheYear2016

UKcoughremediessalesbyingredient2017(MSP,$mn)

BanneradfeaturedonCovonia’swebsitehomepage,reinforcingtheimageofapowerfultreatment

Herbals38%(-6%;CAGR+8%)

Diphenhydramine+levomenthol24%(-6%;CAGR+1%)

Guaifenesin+levomenthol20%(-2%;CAGR+3%)

DXM+levomenthol9%(-2%;CAGR+2%)

Others10%%(-23%;CAGR-12%)

Piereflectsiden�fiedbrands,worth$66.4mn