National brands drive growth in first aid
Around the world, millions of people are hurt or killed from injuries every year because adequate and timely assistance is not provided. However, the proper use of first aid reduces deaths, injuries and impact during disasters and daily emergencies. First aid provides an immediate response to a — sometimes life-threatening — emergency until the individual can seek professional assistance. First aid saves lives.
(For the full report, including charts, click here.)
DSN has partnered with Competitive Promotion Report and IRI to create a series of exclusive reports. This month the analysis explores the market trends around retailer margin and promotional spending in the first-aid category, looking at the major national brands in the drug channel, focusing particularly on the anti-itch (including calamine), ointments/ antiseptics and bandages (including gauze and cotton) categories.
Within the first aid anti-itch category, store brand is the No. 1 brand, with retail sales of almost $74 million, nearly 2.5 times that of the No. 2 brand, Cortizone 10 from Chattem. However, Chattem places three brands in the top 10, with total retail sales of almost $60 million. Total trade spending in anti-itch is the lowest of the three categories included in this study. During the past 52 weeks, Chattem branded anti-itch products generated almost $27 million in retailer margin for drug retailers — 1.7 times that of Johnson & Johnson, the next closest competitor in this category.
With total retail sales approaching $148 million, store-brand first aid ointments/an-tiseptic products exceeds the top three national brand manufacturers combined. Johnson & Johnson (Neosporin) is by far the largest national brand manufacturer, with retail sales in excess of $62 million, followed by Beiersdorf at approximately $30 million and Merz Pharmaceuticals at around $18 million. Trade spending by the national brands is the highest in this category, as national brand manufacturers attempt to maintain and grow share. Johnson & Johnson brands contributed more than $28.5 million to retailer gross margin over the past 12 months, while Beiersdorf and Merz contributed $10.7 million and $6.2 million, respectively.
Bandages are a very important component of any first-aid kit. It comes as no surprise that with almost $170 million in retail sales, store-brand bandage sales are 1.4 times greater than the next nine national brands combined. The various J&J brands make up approximately 70% of the national brand bandage sales, with 3M brands making up the majority of the balance. Trade spending for bandages tends to be more seasonal than the other two categories included in the analysis. J&J brands generated almost $63 million in retailer margin in the drug channel over the past 12 months, and 3M brands contributed $19 million, while Medline bandage products generated a little more than $3 million.
Other key findings for the first aid category include:
- Despite store-brand retail sales dominance in all three categories, national brands drove growth;
- The three first-aid categories are influenced by the same seasonal trends;
- Anti-itch and ointment peak in July, and bandages only lag the peak by three to four weeks, peaking in August of each year shown;
- For the anti-itch category from 2012 to 2013, Chattem showed the strongest manufacturer performance, with 11.6% growth in unit sales, while store brands lost in overall unit sales, with 4.9% loss;
- Within the ointments category from 2012 to 2013, Beiersdorf showed noticeable gains, with a 15.7% pickup in units sold, while store brand growth was 0.1%; and
- For bandages, 3M and Medline posted similar gains at 4.6% and 4.9%, respectively, while store brand posted a 2.5% unit sales loss.
GMDC refreshes HBW conference, services
ORLANDO, Fla. — The Global Marketing Development Center hosted the 2014 Health, Beauty and Wellness Marketing Conference, here, in late May.
Some of the event highlights included:
- The recently reconstructed myGMDC site, a members-only portal that gives access to a myriad of fresh services and education exclusive to GMDC members — including services like GMDC*Connect, a high-definition video conferencing portal, and the new GM Hierarchy, a data repository created in partnership with Nielsen that measures the general merchandise business across the industry.
- Energizer Household Products’ Lou Martire, VP trade development, was honored on the Saturday evening of the event with the 2014 GMDC Lifetime Achievement Award in recognition of his contributions to the industry.
- Todd Hale, SVP Nielsen, examined how a relatively flat economy is influencing today’s shopping behaviors during the business session. NMI president Maryellen Molyneaux followed with an important look at a critical shopper for future growth — the millennial customer.
DSN covered all the action at GMDC in a series of exclusive Show Daily editions. For more from GMDC, visit DrugStoreNews.com/ GMDC-Health-Beauty-and-Wellness.
Jelly Belly’s flair for innovation recognized at Sweets & Snacks Expo
FAIRFIELD, Calif. — Jelly Belly Candy Co. was recognized at this year’s Sweets & Snacks Expo. Two of its products were included in the 45 Most Innovative New Product Awards. The company’s Draft Beer jelly bean was crowned the winner in the non-chocolate category while Jelly Belly’s Disney Princess Slipper received a nomination for the Novelty/Licensed Category.
“Draft Beer Jelly Belly jelly beans are the latest flavor innovation from Jelly Belly Candy Company. We chose to enter it into the Sweets & Snacks Most Innovative New Product Award because it is the first beer-flavored jelly bean in the world. Harkening to the founding family’s German roots, the bean is modeled after a light and wheaty Hefeweizen ale. The beans pack a flavorful beer punch, yet contains no alcohol,” said Rob Swaigen, VP marketing for Jelly Belly Candy Co.
This is the fifth year the company has collected a Most Innovative Award at the expo.