Over the counter

Cough-cold, switches drive growth

otc and Natural supplement market* By Michael Johnsen
Total = $41.3 billion There was a $1.1 billion gain in OTC sales be-
intimacy feminine care1
health 2 $0.5/1.2% tween 2013 and 2014, according to data culled
$0.9/2.2% from IRI, some $500 million of which can be at-
Smoking
tributed to an increase in sales across all cough-
Foot care
$1.1/2.7% diagnostics3 cessation sleeping remedies cold/allergy/sinus products and an approximate
$1.1/2.7% $0.9/2.2% $0.4/1.0% $300 million to a rise in digestive sales. Those two
miscellaneous categories where home to the two most signifi-
health remedies 4
$1.3/3.1% cant switches in the past year Chattems Na-
sacort Allergy 24HR ($130 million in sales for the
eye care/
ear care 5
Cough-cold/allergy/
sinus10
52 weeks ended Dec. 28, 2014 across total U.S.
$1.9/4.6% $8.2/19.9% multi-outlets, according to IRI) and Pfizers Nex-
ium 24HR ($158.2 million), respectively.
Cough-cold has been a big driver in OTC
first aid 6
$2.9/7.0% sales lately, Kurt Jetta, TABS Group CEO, told
Drug Store News. Other categories that have ex-
hibited strong sales velocities include vitamins
and first aid, he said. In general, there just
seems to be a lot of solid activity, he said. Four
of the top five categories have some really solid
pain relief7 underpinnings of continued growth. Cough-
$4.4/10.7% cold is the only one that, by definition, can be hit
or miss just based on the season.
New to the top 10 OTC products list this year
Vitamins
$6.5/15.7% is Pharmavites Nature Made, across both their
mineral supplement and letter vitamin lines, re-
spectively. Pharmavite has successfully outpaced
category growth across the category, which has
digestives8 been relatively flat.
$5.6/13.6%

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weight loss/nutritional meal
replacements9 Cough-cold
$5.6/13.6% Digestives
* In billions; percent reflects share of total OTC/natural health segments Pain
1 Includes vaginal treatments, all other feminine hygiene/medical treatments. 2 Includes sexual health, personal lubricants. 3 Includes
home health care/kits, family planning. 4 Includes hemorrhoidal cream/ointment/spray, hemorroidal remedies, lip treatment, caffeine tablets/ Vitamins, minerals and supplements
liquids, epsom salts, lice treatments, wart removers. 5 Includes ear care products and ear drops/treatments, eye/contact lens care products. Rx-to-OTC switch
6 Includes first aid tape/bandage/gauze, first aid kits, muscle/body support devices, first aid treatment. 7 Includes weight control/nutrition
liquid/powder, weight control candy/tablets, energy shots, nutritional/intrinsic health value bars. 8 Includes external analgesic rubs, internal To view the full report, visit
analgesics, heat/ice packs. 9 Includes motion sickness, gastrointestinal tablets, gastrointestinal liquids, adult incontinence. 10 Includes
hand sanitizer, chest rubs, humidifiers, cold/allergy/sinus liquids, cough drops, cough syrup, nasal products, cold/allergy/sinus tablets,
DrugStoreNews.com/resources
cold sore medication. Source: IRI for the 52 weeks ended Dec. 28, 2014, across total U.S. multi-outlets (supermarkets, drug stores, mass
market retailers, military commissaries and select club and dollar retail chains)

1 march 9, 2015 drugStoreNews.com

 Over the counter

CHPA leadership talks state of the industry

In preparation for the Consumer Healthcare Products Associations

Q&A
2015 Annual Executive Conference being held in Bonita Springs, think we as an industry
Fla., this month, Drug Store News sat down with both Scott Mel- and certainly as an
ville, CHPA president and CEO, and Patrick Lockwood-Taylor, association have
CHPA chair and VP personal health care, North America, for to do a better job of
Procter & Gamble. Poised for letting stakeholders
greatness and policy makers

Q&A Scott Melville, CHPA

DSN: What is the state of the over-
the-counter industry for 2015?
Low-cost solutions
Scott Melville: I can tell you its
Patrick Lockwood-Taylor, CHPA, P&G an exciting and dynamic time
DSN: What is the state of the OTC industry for 2015? to be involved with the busi-
ness of OTC medicine. Over
Patrick Lockwood-Taylor: First, what were finding is 20 million Ameri- the past year or so [there] has
cans are now newly insured. And what we see is theyre coming into been really an unprecedented
the healthcare system just as were reaching an acute shortage of level of transactions across
primary care physicians. The second big megatrend is an aging our membership. Weve seen
population. By 2030, 20% of the U.S. population is going to be 65 mergers, acquisitions, joint
years or older. So a newly insured, aging population, looking for ventures, portfolio rationaliza-
effective, safe, low-cost healthcare solutions thats where OTC tion. And thats good news, I tinues to be one of our top
obviously comes in. think, for the industry because
people are looking to get into
DSN: You mentioned the influx of newly insured patients and the the industry, or to expand if
shortage of primary care physicians. Can you talk about one other theyre already in it. Thats a
trend we are seeing the transference of the health care burden strong sign of health for our
from payers to the consumer? industry. Were very engaged
and poised to play an even
Lockwood-Taylor: Employee out-of-pocket expenses on health care greater role in our nations
[have increased] 40% just in the past three years. Consumers are evolving healthcare system as
worried. According to IRI, half of all Americans are concerned about it continues to move toward a
paying for health care as they grow older. They see the shift of more value-based system.
cost burden to them. Theyre doing the math. Theyre extrapolating
forward and theyre worried. DSN: What is CHPA focused
on this year with all of those
DSN: As these strategic shifts progress, what is the role of CHPA in dynamics in play?
helping to navigate these shifts?
Melville: Theres a lot on our
Lockwood-Taylor: Lets start with consumers. First CHPA has a re- plate right now, but from a very
sponsibility to educate consumers on OTCs, what they are, the condi- high level, were in the middle
tions they cover, the benefits of usage, how they offer very high value of a good first draft of what our
as low-cost alternatives to prescriptions and to PCP visits, to share future healthcare system will
more about the safety and efficacy profile. Another area for us to look like, how its accessed and
work to is payers and providers, [who] are not always recommending how its going to be paid for. We
the lowest cost and equally effective treatment. We need to do more really think that plays right into
work with payers and providers to get them more integrated in the our industrys sweet spot. But I
process of educating [and directing] consumers to OTC.
know about the value
proposition that OTC medicines
provide. If we do that well, it is
foundational to everything else
that we do. So were focused
on quantifying and communicat-
ing that value that for every
dollar a consumer spends on
an OTC medicine, it saves the
healthcare system $6 to $7.
DSN: What is CHPA doing on the
legislative front?
Melville: The FSA issue con-
priorities if not our top priority
from a legislative perspec-
tive. Were hopeful that with
two years left in the presidents
administration and a congress
that is likely to start moving
legislation and sending it to him,
that this will be at the top of
the list for the kind of common
sense reforms that President
[Barack] Obama has said that
hed be willing to consider.
Another issue that were
very concerned about and very
active on is educating consum-
ers on safe use, safe storage
and safe disposal of medicines.
Were going to spend a lot
of time in 2015 working with
our brethren in the prescription
industry, both pharma and the
generic associations, and with
the biotechnology industry and
association, and with our retail
partners [on this issue].

2 march 9, 2015 drugStoreNews.com

 Over the counter
cough-cold

Consumers stock up prior to cold, flu season

By Michael Johnsen
how many otc cough-cold remedies how do you shop the cough-cold aisle
do you buy to treat a cold? most often?
Immunity boosters and hand sanitizer are on most
shopping lists as consumers prepare their families for 70.8%
the inevitable sniffles, sneezes and coughs associated
with the cold and flu season. As many as 53.5% of
shoppers are placing hand sanitizer into that pre-sea-
son basket, according to a survey conducted by Field 78.5%
Agent on behalf of Drug Store News, and 50.3% are
16.8%
stocking up on immunity boosting supplements. 12.8%
7.5% 7.5%
More than taking precautions to fend off a cold, 1.3% 4.5% 0.5%
however, consumers are preparing for the worst
0-1 2-4 5-6 7 or Symptom Brand Ingredient Price Other
74% buy OTC medicines in advance of the cold and more
flu season. While some respondents will wait to buy
remedies only when needed, the majority of consum- How do you prepare for cough-cold season? (Select all that apply)
ers (68%) always keep cough-cold remedies on hand.
Buy OTC medicines 74.0%
When someone in the household does get sick, the
overwhelming majority of consumers (90%) clean Get extra rest 56.3%
and disinfect more often in an effort to contain the Buy vitamins 56.0%
virus. Its a good thing, too, as only 34.8% quarantine
Stock up on hand sanitizer 53.5%
the sick person in an effort to prevent the cold from
spreading. Half of respondents also stock up on Take immunity boosters 50.3%
hand sanitizer and/or take immunity boosters at the Buy antibacterial wipes 50.0%
first sign that someone is coming down with a cold.
Get a flu shot 47.3%
Buy spray disinfectants 44.3%
To view the full Cough-Cold report, go to
DrugStoreNews.com/exclusive-consumer- Limit exposure to people 42.0%
insights-cough-cold Other 4.8%

Most families (64%) suffer on average two to

four colds per year. In response, even more families what items do you typically buy to treat cold symptoms? (Select all that apply)
(78.5%) are buying the same between two and 85.3%
Decongestant
four cough-cold products per year.
Tissues 78.0%
Respondents shop the cough-cold aisle primari-
ly by symptom (71%). Brand (17%), ingredient (8%) Cough drops 77.8%
and price (5%) are far less important to shoppers. Cough syrup 73.5%
Dayquil/Nyquil is the leading brand for treating Pain reliever 69.0%
cough-cold symptoms (72%), followed by Mucinex
Vitamins 46.0%
(49.5%) and Tylenol Cold (48%).
The survey of 400 respondents was conducted Lip balm 39.0%
Jan. 27 by Field Agent, which provides business in- Chest rub 38.3%
formation and consumer insights by leveraging tra- Supplements 30.8%
ditional methodologies and incorporating new, cut- Dehumidifier 15.0%
ting-edge crowd-sourcing and mobile technologies
Other 3.0%
to deliver real-time information about purchasing
behavior and attitudes. To learn more about Field Note: This survey was done by users with mobile devices (smartphones and tablets).
Source: Field Agent (n=400)
Agent, visit www.FieldAgent.net.

3 march 9, 2015 drugStoreNews.com

 Over the counter
Cough-cold and allergy

Nasal switches ring up incremental sales

By Michael Johnsen Nasacort still experienced growth Cough-cold and allergy sales by channel
in the past year, so there was little
multi-outlet DRUG
Chattems launch of the first cannibalization.
sub-category sales* % Chg Sales* % Chg
nasal corticosteroid onto OTC And now a second nasal cor-
Cold/allergy/sinus tablets $4,363.5 3.2% $1,957.8 2.6%
shelves represented the most ticosteroid is coming to market:
Cold/allergy/sinus liquids 1,256.1 15.5 527.9 15.0
significant success story in the GlaxoSmithKlines Flonase. Con-
Nasal products 698.5 2.8 328.5 0.7
cough-cold-allergy space in the sidering that Chattem is only in
Cough drops 591.8 1.3 236.1 0.7
past year. The well-executed year two of its Nasacort launch
Cough Syrup 517.4 1.5 254.8 1.1
launch about a year ago featured plan, and the fact that GSK in its
a literal shelf talker a bat- own right has a strong heritage Humidifiers 282.7 -1.7 63.1 1.6
tery-powered, on-demand video successfully shepherding switches Hand sanitizer 223.0 4.9 42.4 2.8
screen merchandised alongside to the self-care aisle, overall allergy Cold sore medication 206.7 4.9 115.0 4.1
the new product. And the amount sales are expected to continue on Chest rubs 90.9 2.0 40.1 4.0
of truly incremental sales Nasa- a sharp upward trajectory. Based TOTAL $8,230.6 NA $3,565.7 NA
cort Allergy 24HR contributed to on other types of switch dynamics, * In millions
the category was $130 million for in general its highly incremental Supermarkets, drug stores, mass market retailers, military commissaries and select club and
dollar retail chains
the 52 weeks ended Dec. 28 across to the category, noted Kurt Jet- Source: IRi for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug
stores, mass market retailers, military commissaries and select club and dollar retail chains)
total U.S. multi-outlet, according ta, TABS Group CEO. It usually
to IRI. Today, its the No. 5 aller- takes a 10% to 20% chunk from the up the promotional activity. Over- gesting that like Nasacort, Flonase
gy remedy, and 3-of-the-4 allergy existing companies, [but] much of all, for retailers its going to be a should realize well over $100 mil-
remedies with more sales than that can be mitigated if they dial pretty major [lift], he said, sug- lion in first-year sales.

Top 5 cough/sore throat drops and cough syrup vendors

brand Sales* % sales Chg $ share $ share chg unit sales* % unit chg avg price avg price chg
Mondelez cough/sore throat drop $269.2 2.5% 45.5% 0.5% 130.1 -5.3% $2.07 $0.16
Reckitt Benckiser cough syrup 141.3 -5.5 29.8 -2.3 12.3 -6.9 11.52 0.17
Ricola cough/sore throat drop 120.2 4.2 20.3 0.6 49.9 -1.1 2.41 0.12
Pfizer cough syrup 107.4 14.7 22.7 2.6 14.7 9.7 7.32 0.32
Prestige Brands cough/sore throat drop 52.1 0.5 8.8 -0.1 26.2 -0.4 1.99 0.02

Top 10 cold, allergy and sinus products**

brand Sales* % sales Chg $ share $ share chg unit sales* % unit chg avg price avg price chg
Zyrtec tablets/packets $327.6 3.3% 7.5% 0.0% 16.6 -2.0% $19.77 $1.02
Claritin tablets/packets 217.5 1.6 5.0 -0.1 13.0 -2.2 16.78 0.64
Alka Seltzer Plus tablets/packets 208.3 8.5 4.8 0.2 34.0 6.1 6.12 0.13
Allegra tablets/packets 197.0 -2.9 4.5 -0.3 10.9 -6.9 18.09 0.73
Vicks NyQuil liquid/powder 170.2 7.9 13.6 -1.0 18.9 1.7 9.03 0.52
Mucinex DM tablets/packets 154.6 -7.1 3.5 -0.4 10.1 -7.0 15.37 -0.02
Mucinex tablets/packets 154.0 6.1 3.5 0.1 9.6 7.8 15.98 -0.25
Claritin D tablets/packets 135.7 -5.9 3.1 -0.3 7.0 -8.3 19.27 0.49
Abreva cold sore medication 132.0 5.8 63.8 0.6 6.9 2.9 19.03 0.51
Nasacort liquid/powder 130.0 NA 10.3 10.3 7.8 NA 16.73 NA

* In millions
** Includes hand sanitizer, chest rubs, humidifiers, cold/allergy/sinus liquids, nasal products, cold/allergy/sinus tablets and cold sore medication
Source: IRI for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

4 March 9, 2015 drugStoreNews.com

 Over the counter
Digestives

Old products see new life in category

By Michael Johnsen inhibitor has done well. Digestives by channel
Procter & Gamble last year re-
The gastrointestinal and adult entered the adult incontinence cat- multi-outlet DRUG
incontinence categories have been egory with Always Discreet and is sub-category sales* % Chg Sales* % Chg
really shaken up by a whats-old- banking on successfully transfer- Antacid tablets $2,088.2 5.7% $707.5 7.4%
is-new-again theme. Among antac- ring the brand loyalty associated Adult incontinence 1,508.1 6.0 461.2 4.1
ids, Chattem has breathed new life with its Always feminine care line Laxative tablets 697.3 2.5 306.8 1.4
into the venerable Rolaids brand to an older consumer base. Laxative/stimulant liquid/powder/oil 645.6 6.8 231.4 3.0
while Pfizer launched a fourth Were accelerating the growth Diarrhea tablets 177.3 -1.1 73.1 -3.1
proton-pump inhibitor onto OTC of the adult incontinence category Stomach remedy liquid/powder 175.5 -1.5 60.4 -2.4
shelves with Nexium 24HR both with Always Discreet, commented Antacid liquid/powder 99.1 4.6 46.5 12.5
launches have helped contribute to Jon Moeller, P&G CFO, to analysts. Antacid/analgesic combo tablets 56.2 -4.8 16.8 -3.4
a 5.7% lift in category sales. One-in-3 women over 18 years old Stomach remedy tablets 53.5 -0.3 22.0 3.3
Pfizer has done a very good job suffers from incontinence, but only Diarrhea medicine liquid/powder 40.5 4.8 20.4 1.3
[promoting Nexium], noted Perri- 1-in-9 uses an incontinence product. Motion sickness 16.6 2.7 10.3 2.9
go president and CEO Joseph Papa, And Novartis is in the process TOTAL $5,557.9 NA $1,956.4 NA
whos eyeing future store brand op- of reinvigorating its Benefiber
* In millions
portunities. They have the product franchise even as P&G line extends Source: IRI for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug
stores, mass market retailers, military commissaries and select club and dollar retail chains)
at a $300 million run rate, which for its fiber supplement Metamu-
a [fourth] launch of a proton-pump cil with a fiber bar and probiotic branded Meta-Health Bars and Meta-Biotic, respectively.

Top 20 digestives products

brand Sales* % sales Chg $ share $ share chg unit sales* % unit chg avg price avg price chg
Depend adult incontinence $370.4 8.4% 24.6% 0.5% $24.5 5.7% $15.15 $0.37
Poise adult incontinence 361.1 5.0 23.9 -0.2 45.3 4.3 7.98 0.06
Prilosec OTC antacid tablets 311.3 -13.4 14.9 -3.3 17.4 -12.7 17.85 -0.13
Miralax laxative/stimulant liq/pwdr/oil 191.6 5.4 29.7 -0.4 14.3 4.3 13.41 0.15
Nexium 24HR antacid tablets 158.2 NA 7.6 7.6 8.5 NA 18.61 NA
Metamucil laxative/stimulant liq/pwdr/oil 123.4 13.1 19.1 1.1 8.6 6.5 14.37 0.84
Zantac 150 antacid tablets 119.1 3.8 5.7 -0.1 10.9 4.4 10.90 -0.07
Tena Serenity adult incontinence 104.7 -7.8 7.0 -1.0 10.0 -3.0 10.52 -0.56
Dulcolax laxative tablets 103.3 -2.1 14.8 -0.7 14.6 -3.4 7.07 0.09
Prevacid 24HR antacid tablets 88.7 -4.9 4.3 -0.5 4.6 -7.3 19.27 0.49
Tums Ultra antacid tablets 84.9 -0.2 4.1 -0.2 16.7 1.4 5.07 -0.08
Pepto Bismol stomach remedy liq/pwdr 84.5 1.7 48.2 1.5 16.7 2.6 5.07 -0.04
Imodium diarrhea tablets 79.7 -3.6 45.0 -1.2 8.9 4.5 8.94 -0.75
Gas X antacid tablets 66.6 -2.3 3.2 -0.3 9.8 -9.3 6.79 0.49
Tums Ex antacid tablets 58.8 -13.4 2.8 -0.6 17.2 -17.5 3.42 0.16
Depend Silhouette adult incontinence 50.4 -2.8 3.3 -0.3 3.5 -16.2 14.43 2.00
Pepcid AC antacid tablets 49.7 -3.6 2.4 -0.2 4.4 -2.7 11.34 -0.11
Alka Seltzer antacid/analgesic combo 47.6 -0.4 84.7 3.7 9.6 -1.7 4.96 0.06
Benefiber laxative/stimulant liq/pwdr/oil 42.2 181.3 6.5 4.1 3.0 177.6 13.89 0.18
Pepcid Complete antacid tablets 41.0 19.9 2.0 0.2 2.8 26.2 14.54 -0.77

* In millions
Source: IRI for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

5 March 9, 2015 drugStoreNews.com

 Over the counter
Pain

Niche brands bring relief to pain category

By Michael Johnsen nica is another fast-growing niche
Pain by channel
opportunity. Anything with the
Outside of McNeil Consumers word arnica in it right now is multi-outlet
Tylenol continuing to reclaim its hot, commented Les Hamilton, sub-category sales* % Chg DRUG Sales* % Chg
top spot among best-selling anal- Hylands EVP. Internal analgesic tablets $3,198.7 1.3% $1,078.4 0.4%
gesics, a lot of the up-and-comers In addition to arnica, Hylands
External analgesic rubs 506.8 7.2 240.9 5.6
in the pain relief category repre- is promoting its Leg Cramps
sent niche brands. Hisamitsus products against the fast- Internal analgesic liquids 414.6 5.6 172.3 2.5
Salonpas is a classic example, with est-growing niche sport in Amer- Heat/ice packs 236.8 -0.5 128.7 -0.2
$58 million in sales for the niche ica Pickleball. We are the
pain patch on sales growth of lead sponsor of the Pickleball Feminine pain relievers 90.0 -12.6 35.6 -10.9
22.7% for the 52 weeks ended Dec. Channel, Hamilton said. Its a TOTAL $4,446.9 NA $1,655.9 NA
28, 2014, across total U.S. multi- cross between tennis, badminton
outlets, according to IRI. and ping pong, and its typically * In millions
Source: IRI for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug
The homeopathic ingredient ar- played in older communities. stores, mass market retailers, military commissaries and select club and dollar retail chains)

Top 20 pain products

brand Sales* % sales Chg $ share $ share chg unit sales* % unit chg avg price avg price chg
Advil internal analgesic tablets $486.2 -1.3% 15.2% -0.4% $64.8 -3.1% $7.51 $0.14
Aleve internal analgesic tablets 379.8 4.0 11.9 0.3 50.0 2.8 7.59 0.09
Tylenol internal analgesic tablets 253.2 26.2 7.9 1.6 36.0 21.3 7.02 0.27
Bayer internal analgesic tablets 227.3 2.0 7.1 0.1 39.3 0.6 5.79 0.08
Icy Hot external analgesics rubs 112.9 2.2 22.3 -1.1 19.1 2.0 5.90 0.01
Advil PM internal analgesic tablets 89.3 -1.2 2.8 -0.1 10.8 -5.2 8.25 0.33
Excedrin Migraine internal analgesic tablets 75.7 -0.8 2.4 -0.1 10.8 -4.1 6.98 0.23
Excedrin internal analgesic tablets 63.7 15.5 2.0 0.3 8.9 13.4 7.12 0.13
Motrin B internal analgesic tablets 60.2 24.7 1.9 0.4 6.7 30.9 9.00 -0.45
Salonpas external analgesics rubs 58.0 22.7 11.5 1.5 14.8 17.7 3.92 0.16
Thermacare heat/ice packs 57.7 -6.7 24.4 -1.6 8.7 -9.5 6.61 0.20
Childrens Tylenol internal analgesic liquids 55.3 7.0 13.3 0.2 8.1 4.0 6.79 0.19
Childrens Motrin internal analgesic liquids 55.1 15.2 13.3 1.1 8.1 13.1 6.77 0.12
Tylenol internal analgesic liquids 48.8 319.6 11.8 8.8 6.5 317.0 7.51 0.05
Bengay external analgesics rubs 44.4 -4.0 8.8 -1.0 6.9 -5.1 6.39 0.07
BC internal analgesic tablets 44.1 5.1 1.4 0.1 11.4 4.4 3.86 0.02
Midol feminine pain relievers 42.5 -6.0 47.3 3.3 6.8 -7.1 6.24 0.08
Goodys internal analgesic tablets 37.6 0.4 1.2 0.0 9.9 0.1 3.81 0.01
Aspercreme external analgesics rubs 32.5 -2.0 6.4 -0.6 6.5 -1.1 4.98 -0.05
Childrens Advil internal analgesic liquids 30.3 -11.3 7.3 -1.4 5.0 -13.9 6.07 0.18

* In millions
Source: IRI for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

6 March 9, 2015 drugStoreNews.com

 Over the counter
Vitamins, minerals and supplements

Growth in four need states across VMS

By Michael Johnsen Store News. Toll pointed to diges- Vitamins, minerals and supplements by channel
tives (probiotics), immunity (vi-
While overall sales of vitamins tamins C and D), beauty (biotin) multi-outlet DRUG
are relatively flat $6.5 billion and sleep (melatonin) as catego- sub-category sales* % Chg Sales* % Chg
up 0.4%, according to IRI for the ries within supplements that are Mineral supplements $3,357.9 0.4% $1,291.5 1.9%
52 weeks ended Dec. 28, 2014, really popping, collectively gen- Multivitamins 1,705.5 -1.7 511.8 -1.8
across total U.S. multi-outlets erating more than $100 million in One- & two-letter vitamins 1,076.8 3.0 397.5 3.8
there are some significant growth incremental dollars. Liquid vitamins/minerals 385.8 3.1 136.2 7.0
opportunities within the consum- Regarding delivery forms, al- TOTAL $6,526.0 NA $2,337.0 NA
mate wellness category. ternative sensory delivery forms
* In millions
There are four VMS need are growing at plus 10% rate of Source: IRI for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug
stores, mass market retailers, military commissaries and select club and dollar retail chains)
states that are realizing large-scale growth, Toll added. By far the
growth, Tim Toll, Pharmavite largest source of growth for the form, growing at a plus 20% rate million in absolute dollar growth
chief customer officer, told Drug category is the gummy delivery of growth and contributing $58.8 for the category.

Top 20 vitamin, mineral and supplement products

brand Sales* % sales Chg $ share $ share chg unit sales* % unit chg avg price avg price chg
Nature Made mineral supplements $313.6 3.2% 9.3% 0.3% $33.7 5.6% $9.29 -$0.21
Nature Made 1 & 2 letter vitamins 309.6 5.3 28.8 0.6 38.3 5.4 8.09 -0.01
Natures Bounty mineral supplements 276.3 -1.4 8.2 -0.2 32.3 1.6 8.54 -0.26
Centrum Silver multivitamins 188.1 -6.6 11.0 -0.6 15.9 -2.8 11.83 -0.48
Natures Bounty 1 & 2 letter vitamins 146.5 15.2 13.6 1.4 18.2 19.6 8.05 -0.31
Airborne multivitamins 123.9 11.9 7.3 0.9 15.9 5.1 7.80 0.47
Emergen-C liquid vitamins/minerals 114.3 6.2 29.6 0.9 14.2 7.0 8.07 -0.06
Bausch & Lomb preservision multivitamins 105.7 16.7 6.2 1.0 4.0 10.1 26.71 1.51
Sundown Naturals mineral supplements 102.7 0.5 3.1 0.0 14.4 2.6 7.12 -0.14
Schiff Mega Red mineral supplements 90.0 -2.7 2.7 -0.1 4.1 -3.4 22.02 0.15
One A Day Vitacraves multivitamins 85.6 16.1 5.0 0.8 8.3 18.7 10.27 -0.23
Osteo Bi Flex 5 Loxin
85.2 -15.6 2.5 -0.5 4.5 -13.6 18.90 -0.44
advanced mineral supplements
Culturelle mineral supplements 80.2 19.7 2.4 0.4 3.8 16.7 21.09 0.52
Align mineral supplements 71.6 0.7 2.1 0.0 2.2 -0.1 33.25 0.26
Centrum multivitamins 67.6 -11.5 4.0 -0.4 6.1 -13.6 11.09 0.27
Vitafusion multivitamins 62.1 14.6 3.6 0.5 6.1 13.2 10.26 0.13
Sundown Naturals 1 & 2 letter vitamins 61.6 3.3 5.7 0.0 9.4 3.5 6.54 -0.01
Natures Way Alive multivitamins 61.6 20.7 3.6 0.7 6.1 16.9 10.11 0.32
Caltrate mineral supplements 60.0 -6.7 1.8 -0.1 5.2 -5.7 11.57 -0.12
Bausch & Lomb Ocuvite multivitamins 60.0 -4.8 3.5 -0.1 4.3 -10.7 13.88 0.86

* In millions
Source: IRI for the 52 weeks ended Dec. 28, 2014, Total U.S. Multi-Outlet (supermarkets, drug stores, mass market retailers, military commissaries and select club and dollar retail chains)

7 March 9, 2015 drugStoreNews.com

 Over the counter
Chattems Nasacort Allergy 24HR ahead of curve
According to ECRMs analysis of circular re- Sub-category ad support share for Manufacturer share of u.s. retail ad
tail promotions for allergy, Chattem emerged allergy products support for allergy

Source: ECRM for the 52 weeks ended Jan. 3, across U.S. retailers, representative markets
as the leading advertiser of allergy remedies
with a 26.8% share of U.S. retail ad support,
an increase of 4% over their 2014 promotion Chattem: 26.8%
share. No surprise there, as Chattem launched
Nasacort Allergy 24HR in February 2014.
8.7% McNeil Consumer Healthcare: 23.1%

Private label manufacturer: 22.2%

U.S. retailers running the most circular 9.0%
ads for allergy Merck: 18.0%
effective feature
retailer count count 11.7% Reckitt Benckiser CP: 4.4%
Walgreens 226.8 740
70.6% Procter & Gamble: 2.3%
CVS 223.1 650
Kinney Drugs 205.2 306 Pfizer Consumer Healthcare: 1.5%
Rite Aid 177.9 487 Bayer: 0.5%
Lewis Drug 111.8 164
FSI (U.S.) 89.4 168 Zicam: 0.3%
Giant Eagle 85.0 153
Undefined: 0.2%
Bartell Drug 72.9 125 n Childrens allergy
ShopRite 71.4 158 n Allergy liquids McKesson: 0.2%
F.W. Albrecht Grocery 67.5 97 n Allergy sprays
Jewel-Osco (NAI) 64.9 110 Prestige Brands International: 0.2%
n Allergy tablets/capsules/gels

Antacid tabs: Digestives hot-ticket item Sub-category ad support share for

digestive products

Source: ECRM for the 52 weeks ended Jan. 3, across U.S. retailers, representative markets
Almost half of all circular ads in support of er Prilosec. Procter & Gamble has managed to 1.9%
a digestive remedy promote an antacid tablet. keep the first PPI to switch top-of-mind among
Pfizers Nexium 24HR was the No. 2 most-pro- consumers despite heavy competition from both

3.0%
moted brand in the category. No. 1? Market lead- private label and branded players.

%
3.8
U.S. retailers running the most circular Manufacturer share of u.s. retail ad 7.5%
ads for digestives support for digestives
effective feature Procter & Gamble: 24.4% 8.5%
retailer count count Private label manufacturer: 19.8% 49.7%
Kinney Drugs 337.7 513 Pfizer Consumer Healthcare: 12.4%
Rite Aid 303.6 842
Glaxo Smithkline: 7.5%
11.7%
CVS 277.9 792
Merck: 6.3%
Walgreens 248.9 662
Navarro Discount Pharma. 194.0 428
Boehringer-Ingelheim/Roxane: 6.0% 13.9%
Chattem: 4.9%
Thrifty White Drug Stores 180.3 243
Novartis Consumer Health: 4.7%
FSI (U.S.) 161.5 267
Bayer: 4.6%
Lewis Drug 141.9 187
McNeil Consumer Healthcare: 2.8% n Motion sickness n Hemorrhoidal
Kmart 122.6 301
Undefined: 1.2% n Anti-diarrheal n Probiotics
Bartell Drug 115.4 182
i-Health: 1.0% n Antacid liquid/powder n Laxative tablets
King Kullen 107.0 124
n Laxative liquid/powder/oil n Antacid tablets

8 march 9, 2015 drugStoreNews.com

 Over the counter
Niche pain relievers making headway
While the big four analgesic manufacturers Bayer, Sub-category ad support share for Manufacturer share of u.s.
Pfizer, McNeil and Novartis command the lions share analgesic products retail ad support for

Source: ECRM for the 52 weeks ended Jan. 3, across U.S. retailers, representative markets
of retail ad support behind their mega analgesic brands, analgesics
Prestige Brands and BedRock Brands are making head-
way promoting their niche pain relieving products, in- Private label manufacturer: 33.4%
cluding Ecotrin, BC and Goodys Headache Powders for
Prestige and St. Josephs Aspirin for BedRock.
6.1% Bayer: 26.8%

U.S. retailers running the most circular Pfizer Consumer Healthcare: 16.7%
11.6%
ads for analgesics McNeil Consumer Healthcare: 9.6%
effective
retailer count feature count 15.3 Novartis Consumer Health: 7.1%
Kinney Drugs 224.6 321
67.0% Prestige Brands International: 2.3%
Walgreens 191.8 481
CVS 140.9 287 BedRock Brands: 1.5%
Rite Aid 137.9 475
Procter & Gamble: 0.7%
Navarro Discount Pharm. 119.5 281
F.W. Albrecht Grocery 99.1 115 Undefined: 0.3%
Giant Eagle 85.2 123
Giant Food Carlisle 83.4 110
McKesson: 0.3%
n Childrens analgesics
Martins Foods 83.4 109 n External analgesics Hylands: 0.2%
Stop & Shop 83.3 108 n Sleep aids
Giant Food Landover 83.3 108 n Internal analgesics Alva-Amco Pharmacal: 0.2%

BOGO offers dominate VMS segment Sub-category ad support share for

vms products

For most categories, circular promotions
touting price only are the most prevalent
form of advertising, as opposed to a percent
off or another savings incentive. Thats not
Source: ECRM for the 52 weeks ended Jan. 3, across U.S. retailers, representative markets
the case in the supplement segment, where
buy-one-get-one offers represent 58.5% of 1.6%
all circular ads as compared with 21.2% of
price-only promotions.

Manufacturer share of u.s. retail ad 9.5%

U.S. retailers running the most circular
ads for VMS support for vms
12.2%
effective feature United States Nutrition: 24.0%
retailer count count Private label manufacturer: 16.9%
Walgreens 667.2 2,405 Pharmavite: 15.4%
Rite Aid 427.0 1,996
Pfizer Consumer Healthcare: 11.4% 57.4%
CVS 417.2 1,201 19.3%
Bayer: 8.5%
Kinney Drugs 301.6 753
Reckitt Benckiser: 4.5%
Navarro Discount Pharm. 246.2 389
Church & Dwight: 4.2%
Walmart-U.S. 222.0 263
Undefined: 2.8%
ShopRite 209.5 437
Valeant Pharmaceuticals: 1.4%
Bartell Drug 178.3 393
Natrol: 0.9%
Longs Drug (Hawaii) 168.2 316
Alcon Laboratories: 0.9% n Eye vitamins n Herbals
Tops Markets 148.5 280
Mason Vitamins: 0.5% n Minerals n Non-herbal supplements
Jewel-Osco (NAI) 144.6 763 n Vitamins

9 march 9, 2015 drugStoreNews.com

 Over the counter
Trade spending trends

Vitamins see meaningful new product intros

By Michael Johnsen
There were as many as 232 meaningful new
product introductions across the vitamins cate-
gory for the 12 months ended in January, accord-
ing to Competitive Promotion Reports New
Product Flash Report, the most of 12 categories
examined by CPR for trade spending trends. So it
should come as no surprise that trade spending
across the vitamin category is almost double that
of any other category, with a 21% average off-in-
voice allowance level, a 23% average bill back al-
lowance level and a 22% average discount level.
Trade spending across the top HBW cat-
egories reflected average spending of 10% for
off-invoice allowances, an average of 10% for
bill-back allowances and an average of 11% for
total promotional discounts, noted Glen Davis,
president and CEO of CPR. The relationship
between the number of new products in the vi-
tamin category and average discount spending
can be explained due to the overall aggressive
promotional planning required to support this
number of new entries.
Taking a deeper dive into the vitamin cat-
egory, NBTY introduced the most new promo-
tional deals for the 12 months ended in January
at 1,726, providing an average 28% in off-invoice
allowances, 26% in bill-back allowances and 28%
for promotional discounting.

Average off-invoice allowance levels Average discount levels 22%

21%

13% 13%
11% 11% 11% 11%
10% 10% 10% 10%
9% 9% 9% 9% 9%
8% 8% 8%
7% 7% 7%
6%

are ne are aid nal ves nal ids nal ne nal ins ne re id al al es ds re al ne al
gie kin ca First a intern intern xativ ntaci air ca extern hygie extern itami
ns
k i n c hygie air c First inter axati inter Antac exter hygie exter Vitam hy a A V
S l H - L d - ine old ral S d cs - L H - ine old
Ora ics col cs O col i cs
a l ges u gh- l g esi Femin ugh-c u gh- alges l g esi Femin ugh-c
An o a Co o An a o
C An C An C

Number of new products

Vitamins 232
Skin care 200
23%
Cough-cold internal 151
Cough-cold external 102
Hair care 68 Average Bill-back allowance levels
Oral hygiene 59
First aid 49 12% 12% 12%
Laxatives 44 10%
9% 9% 9%
Analgesics - internal 40 8%
7% 7%
Antacids 37
4%
Feminine hygiene 32
Analgesics - external 23 d l e e e l s s l l e s
t ai erna ien car car erna tive cid erna erna ien min
Firs ld int al hyg Skin Hair - int Laxa Anta ld ext - ext e hyg Vita
co Or s co ics inin
gh- sic gh- alges Fem
Source: CPR New Product Flash Report for the 12 months ended in January o u n a lge o u
C A C An

10 march 9, 2015 drugStoreNews.com

 Over the counter
Rx-to-OTC Switch

More switches in pipeline will boost OTC

By Michael Johnsen Industry consolidation will play for use of nonprescription medi- greater role in managing disease
a role in bringing more switches to cines in chronic disease manage- states like diabetes, COPD, mild
Two big switches significantly market in the coming years, such ment scenarios. OTC-E drugs will asthma and hypertension, Frances-
helped to increase OTC sales in as the recent GlaxoSmithKline/ be older formulations with a strong co said. Francesco outlines the cur-
the past year in Nexium 24HR Novartis joint venture and Bayers prescription heritage and a wide rent switch paradigm in a recently
and Nasacort Allergy 24HR. A acquisition of Merck. Bigger medi- safety margin that will generate at- published 100-page report titled
third, Flonase, is expected to simi- cine portfolios correlate to more tractive margins when introduced The Major Global Expansion of
larly impact the allergy category significant budgets, and thats con- into the nonprescription arena. Rx-to-OTC Switch by 2016: OTC-E
in the coming year, and there are ducive to making the switch ROI And future OTCs will play a Drugs Will Lead the Way.
many more Rx-to-OTC switches math work, Francesco suggested.
in the pipeline. There also are market forces Projected Rx-to-OTC switch candidates
There are at least 35 ongoing at play outside of the traditional
Brand Class Company
switch projects in various stages, switch model that will influence
AcipHex PPI Eisai
noted Steve Francesco, president the availability of future switch
Actonel Osteoporosis Warner Chilcott
of Francesco International and medicines healthcare technol-
Boniva Osteoporosis Genentech
chairman of the ExL Pharmas Rx- ogy that can be used to enhance
Cialis ED Lilly USA
to-OTC Switch Summit, over the drug labeling, reduce self-selection
Clarinex Allergy Merck
course of his presentation held in concerns and address emergent
Crestor Statin AstraZeneca
Philadelphia in December 2014, signs or symptoms with the switch
which may culminate in as many of a product, Francesco added. Detrol LA Overactive bladder Pfizer
as seven switch approvals through Companies that couple that Ditropan Overactive bladder Janssen Pharmaceuticals
2016. That includes the Holy Grail healthcare technology with switch, Evista Osteoporosis Lilly USA
of switches Pfizers statin Lipi- creating what Francesco has coined Fosamax Osteoporosis Merck
tor, Francesco said. as an enabled OTC, open the door Imitrex Migraine GlaxoSmithKline
Lescol Statin Novartis
Levitra ED Bayer/GlaxoSmithKline
Lipitor Statin Pfizer
Pravachol Statin BMS
Propecia Male pattern baldness Merck
Protonix PPI Pfizer
Viagra ED Pfizer
Vytorin Statin Merck
Zetia Statin Merck

Source: DSN research

Old products see new life in category

Pharmacists are ideally suited to assist in
ensuring safe use for switch products, Tom
Menighan, EVP and CEO of the American
Pharmacists Association, told attendees of
the ExL Pharmas Rx-to-OTC Switch Summit
in December. Pharmacists can help guide pa-
tients through a selection process.
Lets use Lipitor as an example, Menighan
told Drug Store News. If a patient needs to be
screened, 1) be aware of the implications of high
cholesterol, high lipid levels; 2) [have] some un-
derstanding of the basic dietary issues that we can
exert some control over in terms of nutrition; 3)
[determine] that its important to stay connected
with your primary healthcare provider, he said.
If those [issues] are covered and the consumer
gets it, then a safe medication to help lower cho-
lesterol and other lipids may not be a bad thing.
The role pharmacists can play in successful-
ly bringing a medicine from Rx-to-OTC with a
more complex safe usage criteria is only limit-
ed by creativity, Menighan said. At the end of
the day, pharmacists are in a great position to
help support those messages, he said. This
is not about disaggregating patients from the
healthcare system, this is about helping them
get back into it.

11 March 9, 2015 drugStoreNews.com