SLOUGH, England — Reckitt Benckiser has realized a greater value out of its 1-year-old acquisition of Schiff, which moved the consumer product goods conglomerate into the dietary supplement arena, and expects to push that VMS business to greater heights in the coming year, Rakesh Kapoor, Reckitt Benckiser CEO and executive director told analysts during a conference call Tuesday.
"We've been owners of this business for less than a year," he said. "And during that period of time, what we have done is get the basics on this business executed well, improving our distribution, improving the shelving … streamlining the core piece."
Reckitt Benckiser also has increased the historical media investment behind the brands in the Schiff portfolio, Kapoor suggested. Before the acquisition, Schiff typically bought 15-second spots. Reckitt Benckiser has been investing in longer commercials that will be better able to convey the value quotient associated with each brand. "What we had is a much more comprehensive explanation of what, for example, MegaRed does for you. And we've also performed very clever digital and other 360 marketing programs, like working in close collaboration with Dr. Oz and talking about VMS in a much more holistic way," Kapoor said.
"We have not fully run the course of improving the execution mechanics on the VMS franchise," he added."We also have taken stock of what the VMS opportunity looks like for us, how we can actually create value here for ourselves and for our business and for our shareholders. … VMS is a good story."