Susan Barry
Director of Store Brands, Quality Choice & HyTop
(248)449-9300, Ext 664
Special Interest Articles
- Store Brands Rule in BP Devices
- Top Private Label Categories by Unit Sales
- Top 10 Private Label Dollar Sales
- PL Eyes and Ears take over category sales!
- Vitamins find new sales!
- Store Brand has caught the attention!
- What is happening in Oral care?
- A new QC item!
- What do you carry…
- Store Brand & Vitamin D…
- Eligible items for FSA?
- Creams, Ointments & Pads…
- Quality Choice offers you relief during the McNeil Recall…
- Store Brand Hand Sanitizers
|
Store Brands Rule in BP Devices
Private Label products are driving the sales of blood pressure monitors, and data from the latest tracking period bears them out. Sales of Store Brand blood pressure kits climbed 5.5% to $17.1 million in the three months ended February 19, 2012. If Private Label products were considered a brand, they would dominate the category with a whopping 58.6% market share. That while there are over 100 million hypertensive and prehypertensive people in the United States, the blood pressure monitor category has very low household penetration. The more we monitor our own blood pressure, maintain a healthy weight and body fat and body mass level, and take care of our bodies in general at home, the less we will have to go see a doctor or other professional.
Total Dollar Sales: $33.2 mil. (+6.7%)
Drug Stores $29.2 mil (+5.9%)
Total Unit Sales: 0.7 mil. (+11.7%)
Drug Stores 0.6 mil. (+11.7%)
|
|
Top Private Label Categories by Unit Sales
Click image to view larger
|
|
Top 10 Private Label Dollar Sales
Click image to view larger
|
|
|
PL Eyes and Ears take over category sales!
Source: MMR, September 2011 |
|
Eye and Ear care are important categories in the over-the-counter section of retailers. The reason is not simply the sales volume they generate, but it is the fact that most eye and ear care purchases are planned rather than impulse. Shoppers are purchasing these products to relieve or prevent complications. These categories are flagged as traffic drivers. If a retailer fails to have a desired item at the time of purchase, the shopper is going to go elsewhere. Also, most of the products in both eye and ear care are consumable items, meaning repeat visits. Typically, the shopper will purchase the same product from the same retail store if it worked. If the product relieved them of their problem, they will automatically shop for the item again. If not, they will return to the same store and look for an alternative item.
|
The Eye / Lens Care Solution category reported dollar sales of $246.5 million, a 4.7% increase over last year and 32.1 million in unit sales, a 1.4% increase over last year. The Top Brand in dollar sales and unit volume for eye care is Alcon Opti Free Replenish, but is surpassed by All Private Label sales of $31.0 million in dollars and 6.4 million in units. Much of the growth in this category comes from Private Label products, which collectively grew 16.4%, claiming a 12.5% share of total dollar sales.
The Ear Care category reported dollar sales of $12.7 million, a 1.7% increase over last year and 2.8 million in unit sales. The Top Brand in dollar sales and unit volume for ear care is Macks Pillow Soft, but is surpassed by All Private Label sales of $3.4 million in dollars and 0.8 million in units. |
There are two driving factors behind these sales; 1) the aging of baby boomers is a big driver in eye care. They are experiencing dry eyes and presbyopia (or blurred near vision), both associated with aging. 2) Ear care is driven by persistent problems of swimmer’s ear, tinnitus (ringing in the ears) and ear wax buildup. The most common consumer need is aid in sleeping and blocking noise. “Foam earplugs specifically designed for women continue to be very popular”
For the complete listing of Quality Choice eye and ear products, visit www.chaindrug.com.
|
|
Vitamins find new sales!
Source: Drug Store News |
|
Findings from the past year show that vitamin sales have been stronger than most other health and beauty categories. SymphonyIRI Group reported that in the 24 weeks ending May 15, multivitamins outperformed the total vitamin category. The top five multivitamins reported as follows: Private Label with $46.3 million in sales, an increase of 2.8%, Centrum Silver with $24.7 million in sales, Airborne with $15.2 million in sales, an increase of 17.7%, Flintstones with $14.4 million in sales and Centrum with $11.8 million in sales.
|
Multivitamins that are designed for a niche market are generating the largest growth. Vitamins geared towards gender or age specific are increasing in sales and bringing new customers to the category. “With such a wide variety of vitamin options available, Bayer also is encouraging consumers to use the personalized selector on their website, which recommends products to meet the consumer’s personal needs”. The future success of multivitamins may come down to basic user friendliness. |
The newest crazy in vitamins comes in the form of a carotenoid that is found in microalgae, yeast, salmon, trout, krill, shrimp, crayfish and crustaceans. Krill Oil delivers a combination of omega-3 fatty acids and antioxidants from naturally occurring Astaxanthin. Supportive research shows that consumption of EPA and DHA omega-3 fatty acids may reduce the risk of coronary heart disease and contributes to eye health and brain function. Krill Oil is packaged in a preferred softgel dosage for ease of swallowing and digesting. For more information on upcoming vitamins from Quality Choice, visit our Coming Soon Product list.
|
|
Store Brand has caught the attention!
Source: MMR |
|
Store Brand products were a steady growing category until recently.
Flagged as the “generic” products on the shelf, Store Brand has redefined themselves with exceptional quality, premium packaging and innovative offerings.
With the recent recession, we have seen a dramatic increase in Store Brand sales. Shoppers are comparing products at shelf, retailers are marketing Store Brand in monthly circulars and customized end caps and manufacturers are supporting retailers with innovative packaging promotions. Store Brands are receiving encouragement from national publications and local media. Monthly, reports have shown Store Brand is capturing new market share from the National Brands. “American consumers are embracing store brand products more than ever before, and liking what they find.”
|
A recent survey polled by Mintel indicates that 44% of grocery shoppers believe that “private label goods are better in quality now than they were five years ago. Only 19% said it is worth paying more for the name brand products”.
A survey by Epsilon Targeting showed “61% of shoppers had adopted private label personal care items such as shampoo and facial moisturizers, up from 51% conducted in May 2009”. Over 50% of shoppers have embraced the Store Brand product versus National Brand. Some may be skeptical on the outcome of Store Brand after the recession.
Will Store Brand drop in sales once the economy changes to the better? Experts have predicted the outcome to remain positive for Store Brand. The consumer will continue to buy the products they have grown to appreciate and enjoy. |
|
|
What is happening in oral care?
Source: MMR |
|
| Recently, the Oral Care category had experienced new growth, according to SymphonyIRI Group. The overall category which totals $5 billion in sales has seen small increases in manual toothbrushes of 2.7%, dental floss of 2%, and mouthwash / dental rinses of 5.4%. Where the category has seen larger increases is related to products within the dental accessories/tools with an increase of 16.9%, portable oral care products advanced to 58.8% and tooth bleaching products rose 12%. The new growth for this category is related to the innovation of new products. Last year, P&G and J&J Healthcare launched new mouthwashes, which J&J won the Product of the Year award for 2010 in the mouthwash category. GlaxoSmith-Kline received the Product of the Year in 2010 in the toothbrush
|
category with their launch of Aquafresh Iso-Active Whitening Toothpaste. A few of the larger companies targeted education to increase sales. P&G kicked off a huge cross-country promotion to promote their products and oral health in general. They traveled to major cities promoting the importance of people who use the Crest and Oral-B Pro Health system can achieve “four times better plaque reduction than those who use a regular manual toothbrush”. Colgate – Palmolive conducted an educational campaign in conjunction with Diabetes Awareness Month, which was co-sponsored by the CDC, stating that an increase in gum disease was found among those with diabetes. With the growth of Oral Care sales, where do you stand with Private Label? When reviewing the oral |
care category, Private Label has a strong presence in sales and unit volume that allows them to take top rank in manual toothbrushes and #2 in mouthwash / dental rinse. What is happening on your shelves for oral care? Do you have the Quality Choice equivalent merchandised next to the brand? In the mouthwash / dental rinse category, the following brands rank in order; Listerine, Crest Pro-Health, Listerine Total Care, Advanced Listerine and Biotene. Quality Choice offers 4 out of the 5 items with the same active ingredients, same efficacy, same tastes, but with a higher profit margin. To check out the complete listing of dental care items, visit www.chaindrug.com for Quality Choice.
|
|
Eye Spy a New QC Item!
|
|
In a recent study published by NSIGHT (Needs, Symptoms, Incidence, Global Eye Health Trends), patients rate vision quality above comfort and performance. The American Foundation for the Blind concluded, “Americans are more concerned about their vision than cancer. Patients rank vision health at 21%, above the concern of HIV/AIDS (16%), Cancer (14%) or Stroke (11%). The eye health category is being driven by several major forces: an aging population, unhealthy diets, an increased demand in natural health solutions, and rising healthcare costs. SymphonyIRI Group, Inc reported the eye / lens care tablets / accessories subcategory led the group with a healthy 5.3% growth in the quarter ended February 20, 2011. The following eye conditions are driving the increase in eye care sales: Age-related macular-degeneration (AMD), cataracts, cataracts related conditions and retinitis pimentos.
|
Age-related Macular-Degeneration (AMD) is the most significant threat to eye health. AMD gradually destroys the macula, the part of the eye that allows you to see fine detail. AMD is a leading cause of vision loss in American 60 years of age and older. Over 60 million humans suffer from AMD worldwide, with 2.1 million in the USA in advanced stages. Almost three-quarters of AMD patients are women. The Drug Channel represents over 70% in sales of all eye health items sold versus Food or Mass. The Drug channel increased 9% in sales growth versus the prior year, while the Mass channel decreased 8%. |
“High doses of antioxidants, Lutein and Zeaxanthin have been suggested by the National Eye Institute and others to slow the progression of macular degeneration and, in some patients, improve visual acuity”. Recently, Quality Choice launched a new supplement formulated with Lutein + Zeaxanthin, a natural ratio of 5:1 nutrients to match the body’s normal production promoting healthier vision and improving visual sharpness. The Quality Choice supplement offers 25mg of Lutein and 5mg of Zeaxanthin, delivering the preferred ratio of nutrients to the body. QC Lutein + Zeaxanthin is available for ordering. For more information, please contact a Quality Choice team member or visit www.chaindrug.coom. Also, check out the complete selection of Quality Choice eye care items.
|
|
What do you carry in PL Razors?
|
|
| Each year the razor and shaving category reaches new heights in sales and selection, but mostly they continue to increase the number of blades or extras on the razor. We have seen this category grow from a single blade disposable to a battery operated 5 blade handle system with lubricating strip and trimmer. In 2010, Proctor & Gamble Gillette launched the Gillette Fusion ProGlide razor and cartridge which features thinner blades with finer edges and a mineral oil lubricating strip for closer and smoother shave. Energizer Holdings launched Schick Hydro, which is designed to offer a closer shave with its exclusive hydrating gel reservoir that releases water-activated gel to hydrate the skin as the user is shaving. Both companies continue to battle for the top spot in the category. These advantages do offer the |
Age-related Macular-Degeneration (AMD) is the most significant threat to eye health. AMD gradually destroys the macula, the part of the eye that allows you to see fine detail. AMD is a leading cause of vision loss in American 60 years of age and older. Over 60 million humans suffer from AMD worldwide, with 2.1 million in the USA in advanced stages. Almost three-quarters of AMD patients are women. The Drug Channel represents over 70% in sales of all eye health items sold versus Food or Mass. The Drug channel increased 9% in sales growth versus the prior year, while the Mass channel decreased 8%. |
system with trimmer and disposable cartridges that performs comparable to the Gillette Fusion. To view the complete shaving category, please visit the CDMA website. Make sure your stores are stocked with Quality Choice!
|
|
Store Brand & Vitamin D…double the impact of sales!
|
|
| SStore Brand products have rescued many during these economic challenges. “Studies of the last four recessions showed that store brand business grew one or two percentage points and it continues to go up even after an economic recovery”. Store brand sales have posted a significant advance across all major retail outlets as consumers increasingly switch over from national brands to store brands. We see this affect within a large volume category…Diet and Nutritional Products. Consumers are convinced about the value of supplements and the importance of everyday healthy living. A daily dose of vitamins keeps the doctor away…and the doctor bills! “The poll found that 66% of Americans classified themselves as supplement users in 2010, up slightly from the 65% who did so in 2009”. “Consumer confidence in dietary supplements remains consistent in 2010, with |
82% of American adults indicating that they are confident in the safety, quality and effectiveness of store brand supplements”. This is found among the ever growing popularity of Vitamin D! “Findings from the 2010 survey indicated that 27% of supplement users take a Vitamin D supplement. That is up from 19% in 2009”. The benefits of Vitamin D are growing rapidly among physicians and health care practitioners. Thus, resulting in more consumers adding this supplement to their everyday routine. Andrew Shao, CRN Senior Vice President for Scientific and Regulatory Affairs and John Hathcock, Senior Vice president for Scientific and International affairs at CRN analyzed, “Comparing the benefits of a supplemental vitamin D as measured by the incidence of falls, fractures, cardiovascular outcomes and colon |
cancer with the potential risk of adverse effects as measured by elevated blood calcium. The authors concluded the vitamin D intake needed for optimal benefit is far below that which poses a risk.” Today, Vitamin D supplements are promoting up to and beyond 5,000 IU per dose. A consumer might feel uneasy with the high levels of Vitamin D; however studies have concluded that these doses are not damaging to your health. Actually, given that optimal levels of vitamin D are difficult to get from diet and adequate sun exposure along, a high level of vitamin D supplement is the right option for people. Your Quality Choice program offers two sku’s in Vitamin D, 400 IU and 1000 IU with the launch of two new doses coming soon. The average profit sale on Vitamin D is between 40-60%. Sell, Sell, Sell! |
|
What is happening to eligible items for FSA?
|
|
| Many customers might start wondering why they are unable to purchase their OTC items with their FSA, HRA or HSA spending account cards soon. It is important to explain the changes are a result of the Patient Protection and Affordable Care Act. Effective January 1, 2011, OTC medicines and drugs (other than insulin) must be prescribed in order to quality as medical care for purposes of employer sponsored health plans. What is determined to be an OTC medicine or drug? Unfortunately, the OTC Notice (Notice 2010-59) issued by the IRS does not provide further guidance or specifications as to what products are truly classified as a “medicine or drug”, other then insulin is not a medicine or drug for purposes of this rule. The SIGIS organization has already reviewed the current list and published the categories that will need to be removed. |
From the October 11th issue of Drug Store News, the following categories will no longer be eligible without a prescription: acid controllers, allergy and sinus medicine, antibiotics, antidiarrheals, Antigas products, anti-itch and insect bite remedies, antiparasitic treatments, baby rash ointments / creams, cold sore remedies, cough-cold and flu medicines, digestive aids, feminine antifungal / anti-itch medicines, Hemorrhoidal preps, laxatives, motion sickness medication, pain relievers, respiratory treatments, sleep aids and sedatives and stomach remedies. There is a grace period set up for IIAS merchants between the New Year and January 15th. The OTC Notice indicates that the IRS will not challenge the use of debit cards for OTC drugs and medicines during this time, providing existing requirements are satisfied. |
Important FACT: This guidance does not impact 90% merchants. FSA cards can continue to be used at stores and pharmacies that qualify as 90% Merchants, since these stores are not required to use an IIAS system. Per the SIGIS newsletter, “Merchants may continue to count OTC medicines and drugs as eligible medical expenses regardless of whether a prescription has been issued”.
For an updated list of eligible Quality Choice items, effective January 1, 2011, please contact a Store Brand team member at (800) 935-2362 or visit our website www.chaindrug.com. |
|
Creams, Ointments & Pads…
Oh My!
|
|
| What do you offer your consumer for muscle & pain relief? Drug Store News reported in the August 23rd issue, “One of the more significant factors that will drive sales of external analgesics going forward is chronic pain.” Our demographic is getting older and with age comes the increase of arthritis, osteoporosis, and many other age-related chronic pains. The National Brand manufacturers are competing with the latest, high tech heat therapy pads or |
packaging the strongest, muscle relaxing cream to relieve any consumers’ aches & pains. However, the driving force behind growth in this category is PRIVATE LABEL. In the Top 10 External Analgesic Brands reported by Symphony IRI Group ending June 13, Icy Hot ranks #1 with $69.4 in sales. Running a close second is Private Label (Heat / Ice Packs) with $50.2 million in dollar sales, which resulted in an increase of +26.7% |
versus last year. Private Label (external analgesic rubs) ranks #5 in dollar sales with $32.0 million with an increase of 7.7% vs last year. Amazingly, Private Label holds two ranks out of the top ten brands sold.For the complete line up of Quality Choice External Analgesics, please visit our website www.chaindrug.com Check out our latest addition to the category, QC ICY COOL Roll-On and Gel, with more active ingredients then Biofreeze.
|
|
Quality Choice offers you relief during the McNeil Recall…
|
|
| Over the past ten months, McNeil has caused confusion and chaos among the retail industry. They have announced numerous product recalls for many of their OTC adult and children relief items and were forced to close a manufacturing plant in Fort Washington. In recent news, J&J Chairman and CEO claimed that McNeil products soon will repopulate the shelves. What does this mean? McNeil might be able to allocate some inventories to certain accounts, but cannot guarantee product will be ready for any type of influx in demand or promotion. |
Why wait for product when you can BUY QUALITY CHOICE! Consumers have been used to the voids and empty shelves where Tylenol or Motrin products used to sit. They have heard or read about the missing product from newspapers. This is the time to PITCH THE SWITCH! McNeil has left stores and consumers empty, but you do not have to lose the sale. Stock your shelves and end caps with your Quality Choice products and focus your marketing efforts to switching the shopper to your store brand. Train all employees and staff members to sell the |
Quality Choice products instead of losing the sale. Introduce the shopper to the Quality Choice 100% Guarantee satisfaction. Assure the shopper all QC products are manufactured to the requirements and high-standards of the FDA and all products are safe for them and/or their families to consume. CDMA has designed a product comparison chart of Quality Choice items versus McNeil recall items. To find the Comparison chart and Order Guide, please visit www.chaindrug.com, log in and click on the Quality Choice logo.
|
|
Research discovers new advantages with hand sanitizers…
|
|
|
Last year, hand sanitizers were soaring in sales due to an early spread of influenza and the H1N1 epidemic. Unfortunately, the season ended abruptly leaving many retailers and distributors with excessive inventory of hand sanitizers. This year, the season has started very slow and sales have been mediocre. There is a new twist to increase sales! Published in the Chain Drug Review September 13th issue, an article stated “According to research done in Germany, alcohol based sanitizers can improve on-the-job productivity and reduce the number of days employees miss because of illness. That absenteeism due to colds, fever and coughs dropped dramatically when hand sanitizers were used.”
|
What does this mean? Go ahead…create that 4’ or 3’ end cap filled with hand sanitizers! Stock every store with hand sanitizer, but instead of marketing for Back-To-School, make sure you advise local businesses, restaurants and friends that productivity can increase with having the Quality Choice Hand Sanitizer placed on EVERYONE’s desk or office space!
|
|
|
|
|
|
|
