HEALTH

‘Natural’ and ‘alternative’ key words when it comes to homeopathy

BY Michael Johnsen

Consumers buying homeopathic remedies base those decisions on two factors: products that are safe and efficacious. The products have to work, or they wouldn’t earn the repeat purchases that are helping to drive sales.

(To view the full Category Review, click here.)

“Millennial moms are looking for ‘safe’ [and] ‘effective,’” said Les Hamilton, president of Hyland’s. But it’s more than that, he added, because descriptors like ‘natural’ and ‘alternative’ also are resonating with today’s young moms. “She’s looking for raw fruits and vegetables [and] BPA-free containers,” he said. “They’re living this natural lifestyle that transcends the [medicines] they buy. It’s inside and outside their bodies, as well as what’s around them. It’s the whole lifestyle of green living.”

In addition, those shoppers are looking to capitalize on the convenience of mass outlets, which means they’re looking for these solutions in their local retail pharmacies. Sales of herbal and homeopathic products totaled more than $1.4 billion and were up 19.6% across conventional multi-outlets for the 52 weeks ended July 10, 2016, according to SPINS.

Currently, conventional outlets represent the sharpest growth rates for homeopathy products. While homeopathy sales were similarly up in both the specialty gourmet and natural channels, the sales volume and velocity are considerably smaller both in terms of dollar sales and growth rates. In that period, herbal and homeopathic remedies generated $319.8 million in natural channels, up 8.1%, and $11.6 million in gourmet outlets, up 5.9%.

Value-oriented packaging is another key differentiator that’s driving business, Hamilton said. Hyland’s is expanding its value-pack offering to Hyland’s Baby Daytime/Nighttime Tiny Cold Tablets, based on its recent success with Hyland’s 4Kids Cold ‘n Cough Day & Night Value Pack that was introduced this season.

That gravitation toward “natural” and “alternative” may make for new merchandising opportunities. For example, Nelson Bach is currently working on building a stress-relief destination within mass OTC sets, synergistically adjacent to sleep in key retailers. “We’re working on customized solutions with individual retailers to fit the right SKUs to their shopper mix [and] merchandising sets,” John Ende, president and general manager at Nelson Bach USA, told Drug Store News. The process is dovetailing nicely with retailer initiatives to cluster stores by demographics, Ende added, as homeopathic remedies index higher among higher-income and higher-education households.

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Consumer focus on value, legislative push lead to record-breaking growth in 2016

BY Michael Johnsen

The graying of the baby boomers, an increased focus on supplementing healthier lifestyles and the steady stream of nasal corticosteroid brands making their way from prescription-only to the more value-oriented OTC aisle were just three significant drivers behind the growth of over-the-counter medicines in 2016.

(To view the full Category Review, click here.)

Sales were on an upward trajectory in each of the top five OTC categories — cough-cold and allergy, vitamins, weight loss and nutrition, pain relief and digestives — which collectively account for 68.9% of all OTC sales.

In fact, sales of all OTC medicines and natural supplements broke records in 2016, reaching $45.8 billion for the 52 weeks ended Dec. 25, 2016, according to IRI. That’s an additional $1.8 billion in sales volume compared with what Drug Store News reported in this space a year ago.

And the outlook for 2017 is looking even better, whether you’re catering to an aging demographic, a consumer in search of healthcare value or an allergy sufferer seeking the latest in OTC remedies.

Baby boomers are getting older. There are 108.7 million adults older than the age of 50, according to AARP, 28.1% of whom are older than 70. In the previous 12 months, 30% of seniors reported buying an allergy remedy, and 29% purchased a cold or flu solution.

According to a study conducted by the Consumer Healthcare Products Association, OTCs save consumers and the healthcare system $102 billion each year.

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Amazon’s Elements brand reportedly will offer invite-only vitamins

BY David Salazar
SEATTLE — Amazon is once again expanding its commitment to private label.
 
The online giant’s Elements line, which was originally launched as a baby products line, quietly introduced a vitamins and supplements category on Feb. 21 — the first addition to the Elements brand in years, according to TechCrunch.
 
Specifically, the line features turmeric root extract, calcium complex, and vitamins D and K.
 
Besides being exclusive to Prime members, the new line is defined as premium products and with transparency into where they are sourced, according to Amazon’s website.
 
To read more, click here
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