Kline: Latest OTC supplier rankings change following multitude of M&As
PARSIPPANY, N.J. – While the U.S. OTC market is not highly dynamic in terms of growth, its competitive landscape has changed significantly over the past five years, with the top 10 rankings shifting in 2015, the Kline Group noted on Monday from its recently published Nonprescription Drugs USA.
Market leaders Johnson & Johnson and Bayer have remained the No. 1 and No. 2 OTC marketers, respectively, for many years. Bayer’s bolt-on acquisition of Merck’s Consumer Health business in 2014 helped solidify its spot as the second-largest OTC marketer. However, the OTC companies ranked 3-10 have been affected by consolidation, mergers and acquisitions.
In 2015, GSK Consumer Healthcare rises to the third-largest position after forming a joint venture with Novartis Consumer Health. Back in 2010, when these businesses were separate, Novartis ranked fourth and GlaxoSmithKline was the fifth-largest competitor. Despite the acquisition of Emergen-C immune boosting supplement and the successful launch of Rx-to-OTC switch Nexium 24HR, Pfizer was pushed down to the fourth ranked position from third as a result of the GSK Consumer Healthcare/Novartis joint venture.
Reckitt Benckiser ranked ninth in OTC sales in 2010, but has risen to be the sixth largest competitor in 2015 after acquiring the large nutritional and digestive Schiff business and the Airborne immune boosting brand. Solid gains for Mucinex cold medication and Delsym cough syrup brands also helped improve Reckitt Benckiser’s ranking over the five-year period.
Prestige Brands and Church & Dwight, neither of which appeared in the top 10 five years ago, are now ranked ninth and tenth, respectively, in the OTC industry. Prestige Brands has grown via acquisitions, adding 17 various OTC brands from GlaxoSmithKline in 2012 and the 2014 acquisition of Insight Pharmaceuticals, which added several brands, namely the Monistat feminine product franchise. Church & Dwight acquired the Vitafusion line of vitamins, which has helped expand its size on the OTC market.
Some of the crucial factors that often propel sales and market share gains can actually have a negative impact on short-term profitability for OTC companies. For instance, the large scale market launch of Nexium 24HR (Pfizer) in 2014 involved a multi-faceted advertising, promotional, and retail marketing campaign to educate consumers, build awareness, and carve out retail shelf space. Despite adding sales over $200 million for Nexium 24HR in its first year on the market, Pfizer’s OTC unit’s margin after marketing expenses and operating margin actually declined from 2013 to 2015, according to Kline’s soon-to-be-published OTC Drugs: U.S. Competitor Cost Structures study. “Often the rewards of large sales gains do not drop to the bottom line until year 2 or 3 post-launch once advertising and other marketing expenses normalize somewhat,” stated Laura Mahecha, Kline’s Healthcare Industry Manager.
Mergers and consolidation also have similar short-term negative impacts on profitability as evidenced by the larger than usual administrative expenses incurred by GSK Consumer Healthcare as a result of the joint venture with Novartis. The July 2014 launch of Flonase Allergy Relief also had a negative impact on the company’s short-term marketing expenses, driving margins downward.
Genesis Today launches cranberry supplement in a powdered drink format
AUSTIN, Texas – Superfruit product leader Genesis Today earlier this week launched Cranberry U.T. Complete, a new superfruit-based supplement to support urinary tract health.
Cranberry U.T. Complete features Cran D'Or cranberry extract plus selected botanicals, such as Ceylon cinnamon, d-mannose, uva ursi leaf, dandelion root and corn silk powder, that help it achieve 135mg of antioxidants from Proanthocyanidins (PAC's) per serving.
"The benefits of cranberry for U.T. health have been widely touted, and Genesis Today takes this product up a notch with a leading PAC level," stated Jeff Brucker, VP marketing at Genesis Today. "Consumers looking for U.T. support can now get the benefit of cranberry plus a number of other botanicals that boost the PAC level to 135mg per serving, giving the Cranberry U.T. Complete the edge over others on the market."
A 2015 study published in the International Journal of Molecular Sciences supports the premise around cranberry's benefits on urinary tract health.
"We are extremely excited about Cranberry U.T. Complete as it represents several firsts for us at Genesis Today," added Bill Meissner, CEO of Genesis Today. "It's the first in a steady stream of extraordinary Superfruit innovations out of our rebuilt pipeline. Additionally, Cranberry U.T. Complete is the first new product with our fabulous new branding."
Cranberry U.T. Complete is soy-free, dairy-free, gluten-free and naturally flavored and is available in a convenient powdered drink mix, delivering an alternative to traditional delivery formats such as capsules/tablets and sugary cranberry juices.
It is available nationally in select natural products and wellness stores and retails for a suggested $32.99 per 2.46 oz container.
Sundown Naturals completes 3-month vitamin roadshow
RONKONKOMA, N.Y. – In early July, vitamin and supplement brand Sundown Naturals completed their three month cross-country Sundown Naturals 100% Goodness Tour. The 100% Goodness Tour, which celebrated the simple goodness in life, kicked-off in April at the WTHR Health EXPO in Indianapolis and made its final stop in Dallas with 23 stops in between.
At each location, attendees sampled Sundown Naturals Gummies and were invited to #sharethegoodness and contribute to a cross-country photo mural displaying what makes them feel good. A team of “Goodness Gurus” were also on-site sharing ways to focus on wellness through nutrition, fitness, mindfulness or cultivating joy in daily life.
“Sundown Naturals believes life is about balance, and our vitamins and supplements are the perfect complement to help balance healthy, active lifestyles,” stated John Frame, VP marketing for Sundown Naturals. “The 100% Goodness Tour has given us the opportunity to bring our belief and brand promise of supplements free of gluten, dairy and artificial flavors to people all across the country.”
Select locations received an added bonus of having fitness, lifestyle and wellness expert Jennipher Walters, co-founder of the renowned Fit Bottomed Girls Community join them in their city. In these locations, Walters hosted 10-minute, no-equipment workout sessions and shared fitness and health tips with attendees.
“Through the 100% Goodness Tour Sundown Naturals brought simple, honest goodness to each tour stop,” Walters said. “Wellness has so many components – healthy eating, mindfulness, staying active and so much more. I loved interacting with the people who came to visit us and sharing what wellness means to them.”