Prestige: Cough-cold category down 15%
TARRYTOWN, N.Y. — Cough-cold suppliers are presently operating in a challenging environment, noted Matthew Mannelly, Prestige Brands CEO, president and director, during a conference call Thursday. The return of Tylenol to the cough-cold aisle and the accompanying media splash from McNeil Consumer isn’t the only competitive factor impacting the cough-cold category, Mannelly said. The season is down more than 15% versus last year. And that lack of consumption, coupled with an overall soft retail environment, is forcing retailers to significantly cut back on inventories.
"While we had a record cough-cold season last year and we didn’t anticipate to repeat that, we didn’t anticipate cough-cold would be down as much as it’s been down this year," Mannelly said. "When you take those three factors and combine them, that in aggregate, that’s what’s had a significant impact on our business."
The most significant challenge is the retailer inventory reductions, Mannelly noted. "We heard retailers talk about this three or four months ago, and it was really in November, late November and in December that we really saw it come to fruition as a result of what’s going on at retail. … The one that’s driving [category challenges] the greatest is the inventory reductions, which is something that really has just started in the last 60 days," he said.
"From a cough-cold standpoint, if you recall, last year cough-cold really ranged from mid-December up until the beginning of February. I think at this point, if you look at retailers and other manufacturers, the season is not panning out," Mannelly noted. "Candidly, I think the retailers are not reordering and are now gearing up for the allergy season in anticipation of that."
West Virginia considering making PSE prescription-only
CHARLESTON, W.Va. — West Virginia took one step closer to making pseudoephedrine products prescription-only, as the state’s Senate Committee on Health voted Tuesday to move ahead with the proposal, according to an Associated Press report.
According to the report, the bill would allow an exception for certain over-the-counter drugs that are deemed "tamper resistant" by the Board of Pharmacy.
The measure is opposed by the West Virginia Retailers Association.
Inergetics to develop line of Cannibidiol based nutritional supplements
NEWARK, N.J. — Inergetics on Tuesday announced it has entered into a strategic partnership with Terra Tech Corp, a fast-growing urban agricultural company, to jointly develop a line of natural cannibidiol-based nutritional supplements.
The strategic partnership will combine Inergetics’ expertise in successfully developing and marketing innovative nutritional supplements that help consumers lead better and healthier lives with Terra Tech’s agricultural expertise and established distribution network of dispensaries in medical cannabis markets.
The featured active ingredient in this new product line will be cannibidiol, a non-psychoactive component of cannabis that possesses a wide range of therapeutic benefits. The supplements will be initially marketed to consumers of medical cannabis in legally approved markets who suffer from nausea and/or such illnesses as glaucoma, and who can benefit from CBD’s pain management and other therapeutic properties. To date, 20 states and the District of Columbia have enacted laws to legalize medical marijuana.
"We’re pleased to be entering into this strategic partnership with Terra Tech, and we look forward to developing a unique supplement line to help patients manage their pain," stated Inergetics CEO Mike James. "This partnership will help Inergetics expand our product line into pain management supplements for consumers who are looking to address these symptoms while improving their quality of life."