Perrigo: Consumer acceptance and health cost mitigation propelling OTC store brands
DUBLIN — As more consumers continue to capitalize on the value of a national brand equivalent through the appeal of the kind of own brand mindset many retailers have today, private label has never looked so promising. Not only is there continued growth in core categories due to the migration of consumers from national brand to store brand, but also the potential for new OTC product classes to emerge as the administration struggles to make healthcare more affordable.
"Store brand growth continues to outpace national brand growth in almost every major category," John Hendrickson, CEO Perrigo, told analysts Thursday. "This is really driven by continued consumer acceptance of store brand products and the launch of store brand products in categories where national brands previously held exclusive share," he said. "Over the past three months the growth of store brand is particularly prominent in the cough, cold, allergy, and sinus category, which is driven by store brand Fluticasone among other products. In addition, new products are continuing to drive growth in the smoking cessation categories."
According to Perrigo, citing IRI data for the latest 13 weeks ended July 9 covering products sold through U.S. multi-outlets, total OTC store brand growth outpaced both national brand growth and overall category growth. That was particularly pronounced across cough/cold/allergy, where sales of store brand solutions were up 6% in the period as compared to 4.4% category growth and 3.7% national brand growth. There is a similar story across gastrointestinal, where store brand growth totaled 2.4% v. 1.2% overall category growth and 0.5% national brand growth.
Within gastrointestinals, there is still one blockbuster brand, Pfizer's Nexium 24HR, that does not yet have private label competition. Hendrickson suggested the initial private label opporunity represented 20% of national brand sales.
In this case, sales of Nexium totaled almost $300 million for the 52 weeks ended June 11 across total U.S. multi-outlets, according to IRI data provided to Drug Store News. That would represent a $60 million total market store brand opportunity.
Moving forward, the bigger opportunty is within those categories that are not sold OTC yet. "You think about the talk that's going on in government about, boy, we're paying too much here, all of those things, it's created this stir on the Rx side," Hendrickson said. "It also creates an impetus to say, how do we manage that cost? You bring products over the counter. And so, it really gets the FDA starting to think not just about getting products approved for an Rx market, but also which categories make sense to switch?"
Some of the low-hanging fruit may include skin care products and migraine. "[The] derm category, many of those are natural products to switch," Hendrickson said. "They're not billion dollar categories, but they're natural products that are safe, effective, could be self-prescribed, could be over the counter. … Migraine, another one. We have certain migraine products over the counter now, but certainly switching some of those are also kind of key ones."
Erectile dysfunction remains on the horizon, especially given the fact that Sanofi bought the OTC rights for Cialis. That may give rise to a more inclusive role for pharmacists in dispensing these medicines, Hendrickson suggested. "Will [an ED OTC class] come over by themselves?" Hendrickson asked "[Or] will there have to be a pharmacist saying, hey, do you have a heart condition? Okay. You can take this. Who knows what intervention there will be?"
And if pharmacists are tasked with patient intervention on appropriate self-selection for ED medications, that re-opens the door for statins. "[Statins] belong over the counter," Hendrickson said. "Some kind of pharmacy intervention could make them out over the counter, almost like a third class," he said. "That certainly has been tried; not quite there, yet."
RLA Collective publishes four-part report on how to best reach the ‘new mom’
PLEASANTVILLE, N.Y. – When it comes to pregnant and new moms, more than three quarters (77%) say a “doctor recommended” seal is important when purchasing OTCs, according to a new four-part survey titled, “Mom-Shop Report, A National Survey of New Moms’ Shopping Behavior,” conducted by RLA Collective, Persuadable Research and the Mommy MD Guides.
“Pregnant and new moms are a unique demographic that comes with a distinct set of behaviors,” stated Robin Russo, president RLA Collective. “Some of the results of this comprehensive survey opened our eyes to key insights about how this group seeks out and purchases health and wellness brands.”
One of the more surprising findings, for example, suggests that brands should consider targeting baby boomer grandmothers who are among the biggest influencers for new moms. Other key findings include:
- While mobile is used to research by more than half of new moms, 66% are purchasing OTCs from brick-and-mortar mass merchandisers, 57% from local chain drug and 44% from grocery stores. Meanwhile, 22% are purchasing online from Amazon.com and 10% from online drug stores;
- Facebook is key to this group: Nearly 7 in 10 women across all life stages have “liked” a brand’s Facebook page in the last six months and the number of brand pages liked or followed is very high: 29% of the moms say they liked 21 or more Facebook brand pages; and
- Regarding motherhood, the majority of new moms (50%) were just “somewhat” prepared for this big life change. Just slightly more than one quarter (28%) were “very” prepared.
Focusing primarily on personal care, OTC and supplements, the body of information is being presented in four downloadable reports at RLA Collective's web site that look at what makes this phase of life special and provide insights into new moms’ entry into parenthood and how they make purchase decisions for these categories of products. Included in the survey were 1,050 women randomly drawn from a national sample of first- and second-time pregnant and first-time moms with children ranging from birth through 36 months.
VMS disruptor Vitamin Packs adds affiliate program
SEATTLE — Vitamin Packs, the next generation vitamin subscription service, on Thursday announced the launch of its new affiliate program, which offers health and wellness influencers the opportunity to deliver customized vitamins and nutritional supplements to consumers. Within the last four weeks, Vitamin Packs has experienced significant growth with more than 6,000 health-conscious consumers completing the Nutritional Assessment to reveal their personalized vitamin and nutrient recommendations.
"Our first month of business has been marked with several exciting successes, including helping more than 200 people each day uncover their unique vitamin recommendations," said Jason Brown, CEO, Vitamin Packs. "Our goal is to change the way optimal nutrition is achieved, by bringing it back to an individual's needs, wants and aspirations. We do this through artificial intelligence called Sage, which takes into consideration the medications individuals are prescribed by their doctors."
Vitamin Packs launched in July as a potential category disruptor. Poised for continued growth, the executive team is adding Laurent Bourscheidt as the company's new SVP brand and creative.
Vitamin Packs' rule-based artificial intelligence, Sage, analyzes a large and growing body of nutrition and lifestyle research collected from more than 10,000 peer-reviewed journal articles and the wisdom of Vitamin Packs' science advisory board of medical professionals that includes experience with more than 100,000 patient visits. Sage cross-examines 650 drug and nutrient interactions to deliver only what the body needs.
"As an entrepreneur, I've been launching companies for the past 40 years and I've never been more excited about the artificial intelligence we created to help consumers live the exceptional lives they want to live," commented Brown. "Personalized nutrition is the future of preventive health and wellness, and it's here now."
When an influencer joins Vitamin Packs' affiliate program, they are rewarded for promoting the company's unique personalized nutrition model. Customers subscribe to receive personalized vitamin supplements delivered each month in convenient packs for daily consumption. The influencers promote the program and receive commission, $25 for each subscriber, while helping consumers take the guesswork out of the dietary supplement aisle.