Tough economy drives up
OTC and supplement sales
BY MICHAEL JOHNSEN
Sales of over-the-counter medicines are likely to improve as a result of a down economy—they’re need-based items. People don’t want to get sick, but when they do, they need to feel better. Couple that with the fact that cost-conscious folks may be more inclined to self-medicate than see a doctor to seek a prescription remedy, especially with the switch of several blockbuster drugs in the past six years for chronic conditions—Claritin and Zyrtec for allergies and Prilosec OTC for frequent heartburn.
Beyond that, more of these decisions are being made at the forumlary level.
According to Jeff Rein, chairman and chief executive officer at Walgreens, a significant portion of prescription medicines are already falling into the OTC sector. “Right now, if [we] fill at our company 600 million prescriptions, fully 25 percent, or 150 million of them,
Q108 6.1% Q407 0.9 Q307 6. 3 Q207 4. 8 Q107 7. 1
Information Resouces Inc.
Even sales of dietary supplements—an OTC
category primarily associated with the prevention of an illness or condition as opposed to a treatment— are not expected to suffer during a recession, though it may inhibit trials. People already supplementing are more likely to cut back on luxury purchases—that latté at Starbucks, for example—before they begin changing their minds about the value of supplementation.
“The larger picture of health care is driving consumers to more of the prevention and wellness model because it’s too expensive to be sick,” Steve Mister, president of the Council for Responsible Nutrition, told Drug Store News. “Higher co-pays, higher deductibles are really encouraging people to do more on the prevention and wellness side so they don’t get sick in the first place. That’s very good for supplements.” Couple that overall trend with the
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OmronHealthcareinFebruarytappedBobKondraskeasits chief operating officer, bringing an executive with consumer packaged goods and OTC products experience, from McNeil Consumer Healthcare,intothediagnosticsarena.Drug Store News caughtup with Kondraske recently to talk about how his experience with OTC medicines might be carried over to diagnostics.
Source: IRI Economic Purchase Behavior Longitudinal Database; IRI InfoScan Reviews, food, drug and mass.
DrugStoreNews:What learning from consumable OTC medicine have you been able to apply to diagnostics?
involve prior authorizations,” he said during a meeting with analysts last month. “That means we had to call or fax the doctor to say, ‘This medication cannot be used because insurance won’t pay for it, what would you like us to do?’ Typically [it] involves [shifting toward] an OTC or a lower cost medication,” he said.
“Health care has been relatively immune to sales lags due to the economy; in fact, consumers are increasingly leveraging self-care products, driving up sales,” noted a report on the economy and its impact on the sale of consumer packaged goods released earlier this month by
Bob Kondraske: Specifically, we are looking to transform Omron to a more consumer-centric organization. Omron sets itself apart from the competition in the area of consumer research. As we look to the future, we want to leverage these insights and apply them to consumer marketing and in-store merchandising activities to better grow the category. … Currently, we are launching an exciting new home blood pressure monitor—the Omron Elite 7300W—designed specifically for women to help detect hypertension, a significant contributor to heart disease, as well as preeclampsia, a major concern during pregnancy.
DrSN: From a demographics perspective, what is expected to be a big driver behind blood pressure monitoring and other home diagnostics devices in the next year? Will Medicare/Medicaid play a role in the future of reimbursement?
Kondraske: I believe the big driver behind blood pressure monitoring will be the [recent] recommendations from the [American Heart Association], [American Society of Hypertension] and the [Preventative Cardiovascular Nurses Association] to monitor your blood pressure at home.
Estroven helps women reach ‘Menopauseland’ CROMWELL, Conn. — Amerifit Brands recently her experience with introduced an integrated, multi-channel Estroven and how advertising platform to support its dietary it’s helped her along supplementEstroven. the journey to The $20 million campaign is focused Menopauseland. around a destination called “Menopause- “Our extensive land,” a metaphorical place where women Amerifit Brands’ Estroven market research are unburdened by the symptoms of showed us that women in this life stage are menopause. The campaign, which began celebrating their achievements, and if they rolling out this spring, was created by can keep the symptoms of menopause at bay, BrandBuzz, a Young & Rubicam company. they are happier now than they were when
Menopauseland is launching via 15- and they were younger,” stated Steve Swenson, 30-second spots, print and magazine ads, director of marketing for Amerifit Brands.
online advertising and with the rollout of a Estroven is an OTC supplement made of microsite in multiple phases. The campaign all-natural ingredients, such as soy and black leverages a postcard visual that carries a cohosh, plus other essential vitamins and message from a woman to a friend regarding minerals, including vitamin D.
BERKELEY, Calif. — Clif Bar is introducing a limited-edition, heal-thy-for-you Halloween treat that isn’t going to leave kids feeling tricked into eating a snack that’s good for them, too. Spooky S’Mores
It’s a premium positioned bar from Information Resources Inc. that’s 95 percent organic and for- Candy and gum sales were up tified with 12 vitamins and min- 2. 7 percent across food, drug and erals. It’s not a bad play, especial- mass (minus Wal-Mart) for the ly as sales of Halloween candy four weeks ended Nov. 4, 2007.
has been on the rise over nine Suggested retail price for an consecutive seasons, according 18-count box of the bars will be to the National Confectioners $13.99, while single bars will Association, citing sales data sell for an SRP of 79 cents.
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