Moberg Pharma to acquire 3 U.S. OTC brands from Prestige Brands
STOCKHOLM — Moberg Pharma has signed an agreement to acquire U.S. OTC brands New Skin, Fiber Choice and PediaCare from Prestige Brands, Inc.
The purchase price is $40 million and the acquired brands will be sold through Moberg’s current OTC channel in the U.S, primarily in drugstores such as CVS, Walgreens and Rite Aid and in mass retailers such as Walmart and Target.
According to Moberg, New Skin is the main profitability contributor in the acquired portfolio and is well aligned with Moberg’s strategic focus on topical dermatology. New Skin is the #1 OTC liquid bandage brand in the U.S. It is an antiseptic that kills germs and dries rapidly to form a clear protective cover.
In addition to New Skin, the acquired portfolio also contains two mature brands, Fiber Choice and PediaCare. Fiber Choice is focusing on digestive health with a compelling lineup of product options for daily fiber supplementation. PediaCare has a strong equity amongst moms based on highly effective products for children, primarily within cough cold and analgesics segments.
“This acquisition is in line with our strategy to add critical mass to Moberg’s U.S. operations as well as a leading topical brand to our core dermatology franchise. This transaction is an excellent use of the proceeds from the bond loan issue earlier this year and the funds released in the recent divestment of non-core brands to Strides Pharma Inc.,” said Peter Wolpert, CEO of Moberg Pharma AB.
Consumers preferring Pedialyte electrolytes
COLUMBUS, Ohio — When it comes to ready-to-drink baby electrolytes, consumers continue to show a clear preference for Abbott Nutrition’s Pedialyte line. The category’s best-selling brand, Pedialyte accounted for nearly $6 of every $10 spent in the category during the 12 months ended May 15, according to IRI. That market share is a slight increase over a year earlier and is mainly due to the growing popularity of Pedialyte Advanced Care. IRI data shows that sales of the product increased 34.6% over the period, far outpacing the 11.1% gain for the overall electrolytes segment.
(Click here to view the full OTC Category Review.)
Designed to promote quick fluid and electrolyte absorption, while a child is sick, Pedialyte Advanced Care contains about half the sugar and more sodium and potassium than sports drinks. In addition, it is formulated with prebiotics to help promote digestive health. Abbott offers Pedialyte Advanced Care in four flavors — blue raspberry, cherry punch, strawberry lemonade and tropical fruit.
New moms seek natural, organic baby products
As more millennials start to have babies, retailers from coast to coast are targeting these new parents with an array of natural and technologically-advanced products, and a more “mom-friendly” baby care offering.
(To view the full Category Review, click here.)
“We believe first-time moms of this generation are very much seeking natural healthcare solutions to treat their children,” said Les Hamilton, EVP at Hyland’s, which markets homeopathic baby care formulas used to treat everything from teething pain to colic, according to IRI.
Marketers said that like parents of past generations, millennials seek out products they know are safe and effective. More than ever, they noted, that has come to mean natural formulas and organics.
“The new generation of first-time parents understands that organic is not just a marketing buzzword,” said Melinda Olson, CEO of Earth Mama Angel Baby, which offers an extensive line of organic pregnancy, post-partum, breast-feeding and baby care items. “They use it as a true yardstick with which to gauge safety, purity and label transparency.”
While suppliers like Hyland’s and Earth Mama have seen their product lines attract mothers seeking natural and organic alternatives, others have targeted millennials’ love of technology.
Church & Dwight, for instance, recently debuted the world’s first Bluetooth-enabled pregnancy test stick. The Pregnancy PRO digital pregnancy test syncs directly to the First Response app on a user’s mobile device.
For some retailers, attracting millennial moms has gone beyond just rethinking their baby care mix.
Supermarket chain Hy-Vee, for instance, has set aside space in more than 50 of its stores across the Midwest for what it-calls “mother’s rooms” — areas that are equipped with comfortable chairs, a table, sink and diaper-changing table.
“The purpose of our mother’s rooms is to reduce barriers to breast-feeding by providing mothers with a private, quiet place to feed their children,” senior communications manager Tina Potthoff said. “As customers’ expectations and schedules continue to change, establishing this important space is taking a big step in creating an extraordinary customer experience.”