DSN - 4/28/19 Show Daily

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NACDS Annual Meeting | Sunday, April 28, 2019

Welcome to Palm Beach

NEWS Counter Talk With Steve Anderson ... 10 With Dan Mack ........... 26 With Bill Pizzico .......... 28 One-on-One With Avrio Health ........ 12 With Ascend Labs ....... 14 Industry News ................. 16 IQVIA Spending Report ... 30 OTC Use Report ............. 32

The last days of April. Palm Beach. The Breakers. The cabanas and the beach. Constants in the world of retailing for those who frequent the NACDS Annual Meeting, the yearly event that arguably is the most important gathering of mass retailers and suppliers in the country. The four-day conference, which actually kicked off with parties and other events on Friday night, hits full stride today with topto-top meetings and activities. Attendees also have the opportunity to listen to presidential historian and Pulitzer Prize-winning

author Doris Kearns Goodwin during the first business session today. Monday and Tuesday promise to bring more of the same, with some industry observers predicting more than a thousand executives holding hundreds of “strategic exchange appointments” over the next few days. The second business session on Tuesday will feature Paul Ryan, the former Republican congressman, who served as the Speaker of the U.S House of Representatives. The finale, an intimate concert on Tuesday night by Academy Award- and Grammy Award-winner Lionel Richie, simply is icing on the cake. dsn

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Preparing for What’s to Come NACDS Annual gives the industry a chance to take stock and adapt to a changing business


ell, here we are again, meeting on the hopefully sunny and wind-swept beaches of Palm Beach, Fla. and at the friendly confines of The Breakers, the nearly annual home to the NACDS Annual Meeting for around four decades. For us, as we go from meeting to meeting and cabana to cabana, all is right in the world of retail. Sales continue to inch up and, while not as strong as many hoped for, profits are relatively strong at most chains. Despite Seth Mendelson all the chatter in the media as well as in boardrooms Editor in Chief across the country, these are good times for retail. Or are they? As the drug store and mass retail industry gathers again for the start of this four-day conference, retailers and suppliers must stay completely aware of the fact that our industry is changing at a lightning pace. These are not the halcyon 1990s when simply opening up new storefronts that offered better pricing and, perhaps, closer parking than the guy down the street was enough to win the day. It is not even the early years of this century when the best and the brightest in our industry ruled the market by working with suppliers and even consumers to present the best scenario for shoppers in terms of pricing, assortment and convenience. No, this is now and now means competing against traditional retailers as well as fighting off the growing challenge from online merchants who have inherent strengths that simply can throw the rest of the retail world into one gigantic freefall. Now also means winning the difficult battle of finding enough talented people to work the stores and finding real estate that is both convenient enough and affordable for new units.

Retail is getting ready to enter the third decade of the 21st century with a lot of us holding our collective breath and waiting for the other shoe to drop. There are plenty of great things happening at retail today. The major drug chains are moving into new worlds, hoping that a time-pressed, financially-constrained consumer will look to them more often for their healthcare needs. Other merchants, specifically Walmart and Target, are pushing the digital envelope, taking the attitude that they have the wherewithal to compete with Amazon. com head-on and, most importantly, win — or at least not lose. Still other merchants, including such chains as Wegmans, H-E-B, Meijer and Hy-Vee, are trying to differentiate themselves in ways that will make a trip to one of their stores a special occasion for the shopper. Who said that shopping has to be a burden? Let’s make it an interesting experience that also can be a lot of fun. So, retail is getting ready to enter the third decade of the 21st century with a lot of us holding our collective breath and waiting for the other shoe to drop. Challenges remain. Can we get better profit margins or at least slow the decline of profits? Can we find the right people to operate the store and, perhaps more importantly, discover enough qualified pharmacists to keep the counter open for longer hours and work with shoppers across the store? What about the Internet? Retail never has been an easy profession. New competitors with the fancy stores, or now with their easy-to-maneuver home pages, have made it difficult for any chain to rest on its laurels. Just ask the folks at Sears and A&P about that. But it is an industry that long has been a backbone of American commerce and it will not soon disappear. Rather, it will continue to remake itself into what the consumer expects of it. The question is whether your business will stay ahead of the curve and survive the coming days. Enjoy the Florida sunshine. dsn 6

An EnsembleIQ Publication 8550 W. Bryn Mawr Ave, Suite 200, Chicago, IL 60631 Vice President, Brand Director Eric Savitch (856) 489-3336, esavitch@ensembleiq.com Editor in Chief /Associate Brand Director Seth Mendelson (212) 756-5160, smendelson@ensembleiq.com EDITORIAL Associate Managing Editor David Salazar (212) 756-5114, dsalazar@ensembleiq.com Senior Editor Sandra Levy (845) 893-9573, slevy@ensembleiq.com Desk Editor Maria Manliclic (212) 756-5093, mmanliclic@ensembleiq.com Online Editor Gisselle Gaitan (212) 756-5138, ggaitan@ensembleiq.com SALES & BUSINESS Beauty Director Laura Fontana (440) 724-4369, lfontana@ensembleiq.com Northeast Manager Alex Tomas (212) 756-5155, atomas@ensembleiq.com Regional Manager Steven Werner (312) 961-7162 swerner@ensembleiq.com Brand Marketing Manager Mary Ellen Magee (856) 419-8411, mmagee@ensembleiq.com Production Manager Jackie Batson (224) 632-8183, jbatson@ensembleiq.com Director of Audience and Data Gail Reboletti (224) 231-6363, greboletti@ensembleiq.com PROJECT MANAGEMENT/PRODUCTION/ART Vice President Production Derek Estey (877) 687-7321 x 1004, destey@ensembleiq.com Creative Director Colette Magliaro cmagliaro@ensembleiq.com Art Director Amy Kelkenberg PRESIDENT Consumer Goods Retail Business Jennifer Litterick (647) 946-9219, jlitterick@ensembleiq.com CUSTOMER SERVICE Having a problem with your subscription? Send us full details with the mailing label of the last copy you received, along with your telephone number. Write to: Circulation Fulfillment Director, Drug Store News, P.O. Box 3200 Northbrook, IL 60065-3200; email drugstorenews@omeda.com; or call (847) 564-1468 CIRCULATION LIST MANAGER Elizabeth Jackson MeritDirect (847) 492-1350 x 318. REPRINTS PARS International, LF-Reprints@parsintl.com, (212) 2219595 x435, tinyurl.com/LF-reprints. Single copy price is $15 for a regular issue and $100 for a statistical issue. PERMISSIONS For permission to reuse material from Drug Store News/ DSN (ISSN 0191-7587) please access www.copyright.com or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, (978) 646-2600, (855) 239-3415. CCC is a not-for-profit organization that provides licenses and registration for a variety of uses.

CORPORATE OFFICERS Executive Chairman Alan Glass Chief Executive Officer David Shanker Chief Financial Officer Dan McCarthy Chief Operating Officer Joel Hughes Chief Innovation Officer Tanner Van Dusen Chief Human Resources Officer Ann Jadown Executive Vice President, Events & Conferences Ed Several


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Part of the Solution Reporting on NACDS’ proactive opioid abuse-prevention work By Steve Anderson

N Steve Anderson, president and CEO, NACDS

ACDS members are meeting at the 2019 NACDS Annual Meeting amid rapid change. Throughout the event, NACDS will update the industry on public policy priorities. These issues have a profound impact on the operating environment in which members are conducting business and serving consumers. Many of our policy discussions will focus on direct and indirect remuneration, or DIR, fee relief; addressing immediate and long-term pharmacy reimbursement issues; enhancing pharmacy’s scope of business; and serving as part of the opioid-abuse solution. Because NACDS hears from senior leaders of chains and suppliers that they are interested in the association’s opioid abuse-prevention work — as part of a larger community engagement platform — I am dedicating this space to an update on this issue. NACDS’ opioid abuse-prevention work reflects chains’ ongoing commitments in the areas of compliance programs; drug disposal; patient education; security initiatives; fostering naloxone access; helping to stop illegal online drug sellers and rogue clinics; philanthropic programs; and more. It also reflects extensive work on the part of NACDS associate members. NACDS’ ongoing engagement in federal and state policymaking reveals the complexities associated with the opioid abuse epidemic. NACDS and our state partners continue to advance sound policies that approach a comprehensive solution, and we also are working to prevent misguided policies. All of this is occurring amid a national discussion of opioid-related issues that continues to evolve, along with the understanding and perspective of policymakers, thought leaders and citizens. One thing remains clear: NACDS remains focused on advancing the public policy recommendations that we established, based on pharmacists’ firsthand experiences on the front lines of health care and on collaboration with health and enforcement agencies. As I write this, 18 states have enacted NACDS-supported electronic prescribing legislation to help prevent fraud and abuse.

Legislation continues to advance in other states as well. These results build on the momentum of federal electronic prescribing legislation enacted in 2018. At the federal level, legislation (S. 724/H.R. 1614) now has been reintroduced to limit to seven days a patient’s first opioid prescription prescribed for temporary pain. NACDS also remains focused on advancing our recommendations regarding prescription drug monitoring plans. Also of vital importance, NACDS works to prevent harmful policies that, in the name of opioid abuse prevention, would do harm to patients, to pharmacies and to communities. NACDS is collaborating with our state association partners to confront proposed “opioid taxes,” which are taxes on patients, pharmacies, hospitals and others. In addition, we are battling mandatory drug take back proposals as well, even while noting the importance — and pharmacy’s commitment to — effective and flexible drug-disposal solutions. Throughout NACDS’ work on all of these issues, a trend is becoming apparent: More and more government leaders, reporters and citizens are starting to key into the notion that illegally manufactured and trafficked fentanyl and heroin comprise a significant part of the drug-abuse epidemic. NACDS is contributing to this discussion and helping to advance such solutions as the enhanced availability of overdose antidotes. The results of the national Morning Consult survey that NACDS commissioned in January suggested that the public understands the different forms of drug addiction that exist. When asked if legal prescriptions or illegally trafficked fentanyl is a bigger contributor to the opioid epidemic, one-third identified illegally tracked fentanyl; 40% said both; 10% said legal prescriptions; and 16% did not express an opinion. The media are dedicating increasing coverage to the notion that illegal fentanyl presents a significant portion of the challenges. NACDS’ work is entirely consistent with pharmacies’ commitment to serve as the face of neighborhood health care, and to the context of members’ discussions at the 2019 NACDS Annual Meeting. dsn

NACDS’ work is entirely consistent with pharmacies’ commitment to serve as the face of neighborhood health care, and to the context of members’ discussions at the 2019 NACDS Annual Meeting.



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Company of Tomorrow Avrio Health positions itself as a forward-thinking consumer health company


vrio Health is a privately held consumer health products company pioneering the delivery of self-care and wellness solutions that champion a healthier tomorrow. Drug Store News spoke with Avrio Health’s president and general manager Carrie Chomak about what the New Yorkbased company has planned for the future. Drug Store News: What is Avrio Health’s backstory and what is the company’s mission? Carrie Chomak: “Avrio,” meaning “tomorrow” in Greek, combined with “health” is a testament to our forward-thinking nature and focus on innovation. Avrio Health launched in 2018, and we hit the ground running to provide the next generation of accessible health products and experiences to improve the lives of our consumers. With a mission to deliver self-care solutions that advance health, our team is committed to exploring cutting-edge technology and novel initiatives that challenge conventional thinking. We are entrepreneurial in spirit, strategic in our pursuit and unafraid to move forward with speed. DSN: What makes your company unique? What are your differentiating factors? CC: In a constantly evolving market, our company understands the importance of not only rethinking ways to attract customers and expand our portfolio, but equipping customers with the knowledge necessary to make more informed health decisions. This will only come from a fundamental shift in thinking at all levels, from individual consumers to healthcare and advocacy organizations. We’ve purposefully and thoughtfully selected strategists, researchers and experts from the consumer health industry to establish a seasoned team that will make smart investment decisions and navigate the evolving consumer market with the bigger goal of creating unprecedented change.


DSN: What does the future look like? CC: We plan to bring innovation to segments of the business that have not seen growth in a number of years through transparency and collaboration. Avrio has the benefit of operating as a nimble, fast-moving company, allowing us to dream big, identify and execute opportunities with partners in new and unique ways, and affording us the ability to customize our approach based on each individual retailer’s needs so that, together, we help grow your business faster. Our team of experts will help to identify products that will expand categories and deliver accelerated growth for retailers in both first aid and the digestive health space. We’re excited to make a major impact on improving consumers’ lives in meaningful ways through continued innovation and accelerated retail partnerships in order to drive growth across all relevant health platforms. For more information, visit AvrioHealth.com. dsn

DSN: What do retailers need to do to help market the product? CC: The success of Avrio Health’s underlying strategy hinges on successful strategic partnerships with retailers and our ability to leverage the unique strengths of our individual retail partners to co-develop meaningful experiences that meet the needs of our shared consumers. We are uniquely positioned to create opportunities for growth across all retail

Carrie Chomak, president and general manager, Avrio Health

With a mission to deliver self-care solutions that advance health, our team is committed to exploring cutting-edge technology and novel initiatives that challenge conventional thinking.

DSN: Tell us about Avrio Health’s brands. CC: Our key platforms for growth are infection resilience, digestive wellness and health supplements, and our brands include well-known and trusted Betadine, Colace, Senokot, and SlowMag Mg magnesium supplement. We relaunched Betadine for wound care in the U.S. market late last year, positioning Betadine as the first line of defense against a broad spectrum of germs and bacteria for minor cuts, scrapes, and burns. With a refreshed look and feel and a multi-faceted consumer campaign, we’ve experienced tremendous momentum and expect the energy to continue throughout this year with various efforts designed to engage and interact with priority audiences in compelling ways. With an uptick in consumers’ interest in natural alternatives in all segments of consumer healthcare, we are excited about the recent addition of two new innovative supplements to our Senokot family of products: Kiwi Balance and Ginger Care. Kiwi Balance is a daily supplement clinically proven and patent protected to support regularity without bloating or gas, and Ginger Care helps relieve upset stomach and nausea. Both, like other Senokot brand products, contain natural ingredients.

partners due to our portfolio of clinically proven brands and innovative offerings. With a true 360-degree partnership approach, we continue to redefine our custom merchandising strategy to drive accelerated sales for our partners. Our investments in traditional in-store vehicles as well as external PR, marketing, digital and educational consumer platforms will continue to drive new shoppers into our retail partner outlets.


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On the Rise Ascend Labs invests in people and customer service to stand out


scend Labs began as a product development company working with other generics makers, growing for its first product launches under the Ascend label in 2008. After working closely with Alkem for several years, the company now is a wholly owned subsidiary of the Indian generics giant, with more than $200 million in revenue and 40 molecules, plus more in the pipeline. Drug Store News spoke to John Dillaway, executive vice president at Parsippany, N.J.-based Ascend, about the company’s growth and strategy. Drug Store News: What makes the company stand out in a crowded marketplace today? John Dillaway: In a word, service. Ascend recognizes that there is little that it sells that cannot be purchased elsewhere. To this end, Ascend has invested in what it believes is one of the industry’s top sales teams. It has hired experienced sales executives who come with knowledge of the industry and strong relationships that can determine quickly if we have opportunity or not. We have balanced that with bright, younger individuals who can learn from their more experienced peers and offer a longevity that will serve the company and its customers well for many years. Beyond our investments in people, Ascend also has invested in its products.We recognize that being in an in-stock position is extremely important, and we have beefed up on-hand inventory in an effort to be in a position to say yes when customers come calling. We also have implemented an extended dating stability program, looking to move the dating on our products from the standard two years to three years and beyond. This allows us to hold more inventory on hand without fear of it going short dated, and allows customers longer times to sell


DSN: How are you educating retailers and consumers about your products and their benefits? JD:In several ways. Ascend has increased its presence at trade events and has developed a larger presence at national shows over the past few years. The company has increased the size of its trade show booths and displays, and created an image that makes customers comfortable visiting with us so we can provide ongoing education about our products. We also visit customers at their headquarters, where we can continue this process in a more private environment. We are also very close to launching a new website, which will provide physicians, retailers and consumers much more information on our products, including allergen information, which will make getting these answers much faster with much less hassle for all. Finally, we are one of the only generic manufacturers that has an actual practicing primary care physician on our staff whose job it is is to field calls from other physicians, pharmacists and even patients, who have any questions about our products. This service is one that gets quite a bit of usage with our physicians’ response times — typically less than 30 minutes.

DSN: Can you give us some recent examples of your innovation? JD:As stated, Ascend has a specific focus on standing out as a quality supplier. The past few years have introduced a situation into the market where many companies have “rationalized” their product lines, discontinuing highly competitive items to focus on newer more profitable ones. This has caused much anxiety in the markets as items that may have had 7-to-9 suppliers now only have one or two. This has led to product shortages — in some cases, very severe ones. Ascend, for its part, is moving in the other direction by not discontinuing anything despite being in many older molecules. Ascend has just completed a large physical expansion to its two existing Indian manufacturing campuses, effectively doubling its current manufacturing capacity. Ascend is capitalizing on its commitment to stay in established items, and customers know if they make a commitment to Ascend that Ascend will stand by that. Customers can’t sell what they don’t have, and patients taking older medications continue to need these, and Ascend has made it a point to stand out in a crowded business by being that supplier that can be counted on. dsn

DSN: What does the retailer need to do to maximize sales, profits and the overall process? JD: Ascend tries to make doing business as easy as possible. We pride ourselves on doing business the way the customer wants to. To that end, we do not offer a standard approach. If one customer wants to do things this way, we do them this

John Dillaway, executive vice president, Ascend Labs

Ascend tries to make doing business as easy as possible. We pride ourselves on doing business the way the customer wants to.

through. At the end of the day, Ascend aspires to be a reliable supplier and these investments have allowed us to become just that.

way; and if another wants that way, they get that way. Again, it goes back to service, and the goal is to provide the best service in the land.


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Pharmavite Unveils Menopause Symptom Relief Supplement Pharmavite is entering a new supplement space with the introduction of Equelle. The nonhormonal, nonprescription supplement has been clinically shown to reduce the frequency of menopausal muscle aches and hot flashes, the company said. Equelle’s main ingredient, S-equol, is derived from a plant compound and has a similar chemical structure to estrogen, allowing it to bind to certain estrogen receptors, which the company said can help alleviate hot flashes and muscle aches associated with menopause. Recent data has shown that roughly 6,000 American women reach menopause each day, with 85% experiencing some sort of bothersome symptoms and 75% experiencing hot flashes. “We are pleased to launch Equelle here in the United States after a proven track record in Japan to address the real needs of women,” said Susan Hazels Mitmesser, Pharmavite vice president of science and technology. “We are committed to providing women with nutritional solutions backed by scientific research to help them feel their best during this time of transition.” Equelle is meant to be taken twice daily with a glass of water. It currently is for sale exclusively on Equelle.com, with a retail price of $39.95 for a month’s supply.

Teva Launches Generic AndroGel Teva is introducing its generic AndroGel (testosterone gel) 1.62%. Testosterone gel 1.62% is indicated for replacement therapy in adult males for conditions associated with a deficiency or absence of endogenous testosterone, including congenital or acquired primary hypogonadism and congenital or acquired hypogonadotropic hypogonadism. It is a Schedule III controlled substance. Testosterone gel 1.62% had a market value of more than $911 million, according to February 2019 IQVIA data.

Dos Equis Mexican Pale Ale Hits Select Markets There’s a new way to enjoy the taste of Dos Equis cerveza. The White Plains, N.Y.-based company, which is part of the Heineken family of brands, announced the launch of its new Mexican Pale Ale, or XX MPA. Featuring all the complexities of a pale ale, the beverage has a lighter finish and is inspired by the flavors of Mexico, the company said. “Our MPA has the complexity and depth of flavor beer drinkers would expect from a pale ale, but without being over-hopped or heavy,” said Lindsay Certilman, brand manager at Dos Equis. “Mexican cervezas are known for being light and sessionable, and we took that same approach to this surprisingly refreshing take on a traditional ale.” The product is brewed with fragrant citrus hops and a hint of heat from elements that include habanero extract. The beverage is 5.5% alcohol by volume and has 30 IBUs, which the company said makes it less bitter than the average pale ale. All Dos Equis packaging for the Mexican Pale Ale will feature Aztec ruler Moctezuma, and will be available at retail locations in cans and bottles throughout Texas and New Mexico. 16


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FDA Approves Plenity for Weight Management

Dr. Reddy’s Buys Generics Portfolio with 30 Injectables

Gelesis, a biotechnology company focused on developing treatments for obesity and gastrointestinal tract diseases, has received the Food and Drug Administration’s blessing for Plenity (Gelesis100). The drug is indicated as weight management aid for adults with a body mass index of 25-to-40 kg/m2, when used in conjunction with diet and exercise. “This FDA clearance is a major milestone for the Gelesis team and our technology, and we are thrilled to be able to bring this new prescription product to the millions of people looking for a safe, validated and convenient treatment option to manage their weight without surgery or stimulants,” Gelesis founder and CEO Yishai Zohar said. “With Plenity, Gelesis is introducing a completely new approach with a unique mechanism of action to aid in weight management, with efficacy and safety supported by positive data from large clinical studies.” Plenity capsules use cross-linking cellulose and citric acid to create a three-dimensional hydrogel matrix. They release thousands of non-aggregating particles that rapidly absorb water in the stomach, creating small individual gel pieces with the elasticity of plant-based foods without caloric value. The gel pieces increase the volume and elasticity of the stomach and small intestine contents, contributing to a feeling of fullness and inducing weight loss. Gelesis plans to launch Plenity in the second half of 2019 and anticipates the product will be broadly available by prescription in the United States in 2020.

Dr. Reddy’s is expanding its generics offerings with a recent purchase. The company has entered into a definitive agreement to acquire a portfolio of 42 approved, non-marketed Abbreviated New Drug Applications in the United States, including more than 30 generic injectable drugs. These products, which had a market value of roughly $645 million for the year ended December 2018, according to IQVIA data, will require to be technology transferred and could be launched within the next 1-to-2 years, the company said. “The acquisition is in line with our stated strategy to significantly enhance our portfolio in our chosen growth markets,” said Erez Israeli, Dr. Reddy’s COO. “This transaction will help augment our injectables product portfolio in the U.S. market and globally.

Blu Expands myblu Intense Lineup E-cigarette maker blu is building out its myblu Intense line of nicotine sale liquidpods for its myblu device. The company has introduced Tobacco Intense and Mint-Sation Intense liquidpods. Each flavor will be available in 2.4% and 3.6% nicotine strength options. The myblu Intense line uses nicotine salt, which offers a more intense flavor without distorting taste through its extraction process, the company said. The flavors are made with domestic and imported ingredients, including nicotine, propylene glycol, nicotine lactate, vegetable glycerin, and natural and artificial flavors. The new flavors come in two packs of liquidpods, with a suggested retail price of $9.99. They join the existing lineup of myblu Intense flavors, including Honeymoon, Neon Dream, Tobacco Chill, Melon Time and Citra Zing.

Health Lab Adds to Line of Wellness Balls Wellness and beauty brand Health Lab is growing out its offering of wellness-focused snack balls with the introduction of its Choc Sea Salt Collagen Ball. The snack contains marine collagen, which is meant to support improved digestion, metabolism and youthful skin, among other benefits, the company said. The product, free of GMOs, dairy, gluten, palm oil, sugars, sweeteners and artificial flavors, joins the existing Choc Cherry Collagen Protein Ball, which also is rich in protein. Health Lab’s other functional snack offerings include vegan Protein Balls in salted caramel, choc brownie; whey-based Protein Balls in almond, peanut butter and choc flavors; Probiotic Balls in choc matcha and mixed berry flavors; and Hemp Energy Balls in espresso and peanut butter choc flavors. The company said its products over-index with female consumers and offers a way for retailers to attract new customers without cannibalizing its current offerings. Health Lab products currently are sold at such retailers as H-E-B, Harris Teeter, Bristol Farms, Kings Food Market and Urban Outfitters. 18


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Fairlife Brings Nutrition Plan to Select Markets

Flex Period Products Come to Target Emerging period product brand Flex is broadening its reach by launching into Target stores nationwide. Founded by Lauren Schulte Wang in 2015, the company is debuting its new Flex Cup in Target alongside its Flex Discs. Flex got its start as a direct-to-consumer company selling its flagship menstrual disc, a single-use product that sits just past the vaginal canal and can be used for up to 12 hours, including during sex, with the ability to hold as much fluid as three super tampons, the company said. In October, Flex acquired Keela, created by Jane Hartman Adamé, now Flex’s senior brand strategist, who redesigned the menstrual cup to be as easy to remove as a tampon — paving the way for the Flex Cup’s launch. The Flex Cup, currently the only product on the market with the easy-to-remove ReleaseRing design, is made from medical-grade silicone that also is BPA-free and hypoallergenic. Alongside the product launches, Flex said the Target debut offers the brand the opportunity to grow its private research community, which it has dubbed the Uterati, from a national base. Flex said it chose Target as a strategic partner to help diversify the Uterati and allow it to expand its research by inviting new consumers to help improve the future of menstrual health. “I started [Flex] because I felt that I was being ignored. I was told by doctors and society that uncomfortable periods were just a part of life, and to accept it. It wasn’t until I found the courage to talk about my own struggles [and] heard from countless people that I wasn’t alone in my suffering and frustration,” Schulte Wang said. “This is why listening to customers is the No. 1 priority for me. We invest in R&D because it allows us to make truly unique period products that improve people’s lives every day. Thanks to our partnership with Target, more people will have access to our breakthrough technologies, and we’ll be able to expand our range of listening and continue to create products that impact lives.”

Fairlife’s portfolio of beverages is expanding. The Chicago-based company is introducing consumers in select markets to its new Fairlife Nutrition Plan beverage, which is a lactose-free meal replacement shake. Available at more than 200 BJ’s Wholesale Club locations in the northeast, southeast and mid-Atlantic regions, the chocolate-flavored drink aims to help consumers pursue sustainable health goals with the nutrition they need and is designed to satisfy hunger, the company said. The product, which combines Fairlife’s ultra-filtered milk with real cocoa to create a creamy texture, can help consumers who are on a Keto plan or using WW. Fairlife Nutrition Plan contains 150 calories, 30 g of dairy protein, 2 g of sugar and eight essential vitamins and minerals. The product is sold in 12 packs of 11.5-oz. bottles available at the suggested retail price of $16.66 for a limited time at BJ’s Wholesale Club locations in Ohio, Maine, New Hampshire, Massachusetts, Connecticut, New York, Philadelphia, New Jersey, Maryland, Delaware, Virginia, North Carolina, South Carolina, Georgia and Florida. Following Fairlife Nutrition Plan’s test launch, the brand said that it is looking to add a vanilla flavor and expand the product’s distribution to include major grocery, retail and convenience stores across the country.

Flipz Mix Combines Sweet, Salty Snacks The brand unveiled its new Flipz Mix, which contains milk chocolate-covered pretzels, popcorn, pretzels, and candy-coated chocolate pieces. “With the minutiae of everyday life, we felt inspired to ‘remix’ the way our consumers typically snack,” said Carlos Canals, managing director of pladis North America. “Flipz is known for its iconic, chocolate-covered pretzels, and we have found a way to enhance this delectable offering with the addition of sweet and savory ingredients, bringing fun and excitement to snack time anywhere, any place.” Flipz Chocolate Mix, which comes in a 4-oz. size that retails for $2.49 and a 6.5-oz. size that retails for $3.49, currently is sold at CVS Pharmacy stores. The snack will be available at additional retailers later this year, as will the brand’s new Mix White Fudge, which will feature white fudge-covered pretzels, popcorn, pretzels and dried cranberries. 20


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4/23/19 9:36 PM


It’s a Disease, Not a Crime.

Opioid addiction can disrupt the normal, healthy functioning of the brain. These brain changes can be long-lasting, and can lead to the harmful behaviors, without regard to age, sex, or social-economic status. If left untreated, opioid addiction can have serious harmful consequences, including the potential for overdose and death. At Dr. Reddy’s, we know the opioid crisis touches everyone. Our employees are working around the clock to develop life-changing medicines that can help treat this debilitating disease because Good Health Can’t Wait.

Untitled-23 21 DrReddys-VER2 OpioidCrisisAD DSNDaily v1.indd 1

Dr. Reddy’s Laboratories, Inc. 107 College Road East, Princeton, NJ 08540 Tel: 866-733-3952


4/18/19 12:19 AM 3/27/19 3:31 PM


RepHresh Adds Anti-Itch Spray RepHresh is expanding its product offerings. The Ewing, N.J.-based Church & Dwight brand is introducing RepHresh Cooling Relief Vaginal AntiItch Spray. The unscented product is meant to relieve feminine itch and neutralize odor, providing relief on contact, the company said. The anti-itch spray is paraben-free and non-benzocaine, instead using hydrocortisone for a non-numbing itch relief. The bottle design makes it possible to spray in any orientation, even upside down. “We added RepHresh Cooling Relief Vaginal Anti-Itch Spray to our line of RepHresh products in response to women expressing the need for an immediate, on-the-go external spray to relieve itch, odor and general discomfort,” said Stephanie Berez, director of marketing at RepHresh. “Tried and tested by women, the cooling sensation felt soothing and stopped the itch right away. We hope to continue empowering women to feel confident and comfortable every day. The RepHresh brand is pleased to add this external two in one cooling spray to the existing product lineup.” As part of the launch, RepHresh is offering a $2-off coupon for the product and other RepHresh products, including RepHresh Vaginal Gel, RepHresh Pro-B and Rephresh Clean Balance. The company said that the anti-itch spray offers a 60% higher dollar ring than other sprays and wipes. RepHresh Cooling Relief Vaginal Anti-Itch Spray now is available for retail distribution.

Slayback Gets FDA Nod for Single-Dose Generic Makena Slayback Pharma has received the Food and Drug Administration’s clearance for its generic Makena, or hydroxyprogesterone caproate, injection in a single-dose 250 mg/1 ml vial. The company previously launched its generic Makena in a 5-ml multidose vial. The drug is indicated to reduce the risk of preterm birth in women with a singleton pregnancy who have a history of singleton spontaneous preterm birth. “Today’s approval is yet another significant milestone in our quest of improving access to generic medicines with technical barriers to entry,” CEO Ajay Singh said. “FDA had recently announced that Makena single dose 1 ml vial, as well as the multidose 5 ml vials, are listed as a drug shortage. Slayback’s approval comes at an appropriate time as it will facilitate access to this important product. Slayback has sufficient stock ready to enable a commercial launch immediately.”

Plan B One-Step Launches Ad Campaign by Female-Led Team Foundation Consumer Healthcare’s Plan B One-Step emergency contraceptive is rolling out a new ad campaign aimed at education and empowerment. The campaign, titled “I’ve Got This,” is focused on informing women, particularly those between the ages of 18-to-35 years old, about how Plan B works and what it is so they can make an informed decision. In addition to focusing on empowerment through education, the ad campaign also sought to remedy a common issue in film production, where women comprise only 8% of directors and 26% of producers. To combat this, the cast and crew for the ad campaign were almost entirely female. The ad campaign, directed by Golden Globes winner Nisha Ganatra, is being broadcast on 13 TV channels, as well featured in eight women’s publications, including People, Cosmopolitan and Allure. In addition to the 15-second spots, the company also created a behind-the-scenes video about the production. The ads focus on Plan B One-Step’s ability to help prevent pregnancy when other contraception might not be sufficient. The ads highlight such elements as the product’s main ingredient — commonly found in other hormonal contraceptives — its lack of impact on future fertility, and its availability without a prescription.

FeverAll Acetaminophen Suppositories Make Their Way to Target FeverAll is expanding the distribution of its infant-focused acetaminophen suppositories. The Taro Pharmaceuticals brand has grown the reach of its infant-focused acetaminophen suppositories nationwide to Target stores and Target.com. FeverAll’s acetaminophen suppositories are meant to temporarily reduce fever and relieve minor aches, pain and headaches for infants between the ages of 6 months old to 36 months old. The delivery method helps ensure dosing accuracy, removing the need for measuring, and is the recommended dosing method for children who can’t take liquid acetaminophen, the company said. They are free of parabens, articificial colors, preservatives and alcohol. “The FeverAll brand’s continued growth at current retailers, combined with the ongoing need for a unique product like this for parents and their children’s healthcare providers, has helped drive our new Target distribution,” said Phil Tucker, director of OTC sales at Taro Pharmaceuticals U.S.A. 22


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4/23/19 9:35 PM


At all ages, at all stages.

Women are different from men. When it comes to healthcare, women have unique needs that impact their entire family. At Dr. Reddy’s, we understand these differences. We are committed to providing affordable and innovative medicines that women and their doctors can count on. Our generic products meet the high standards of brand-name drugs. For more than 20,000 committed employees at Dr. Reddy’s, we know that Women’s Health Can’t Wait.

Dr. Reddy’s Laboratories, Inc. 107 College Road East, Princeton, NJ 08540 Tel: 866-733-3952


© Dr. Reddy’s Laboratories, Inc. All rights reserved. RDY-0618-208

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4/18/19 12:20 AM 3/27/19 3:26 PM


Tom’s of Maine Adds Strawberry Mouthwash

Softsoap’s Décor Collection Gets Stylish Makeover Softsoap’s Décor Collection is getting a major style upgrade. Containing five different scents — wild basil and lime, shea and cocoa butter, peony and plum, orchid and coconut milk, and jasmine and mint — the line’s new look features a sophisticated pop of color, the company said. For the launch, Softsoap partnered with Joy Cho, the founder and creative director of Oh Joy!, to further celebrate the collection’s relaunch with stylized moments around the sink that make handwashing a more enjoyable task. “The hand soaps from the Softsoap Décor Collection make me smile. The bottles are adorned with beautiful flowers and greenery and are the perfect accessory for any sink,” says Cho. “The fragrances help me take a quick step back and enjoy the moment of washing my hands; it’s so important to relish in the small moments of joy that occur each and every day.” The Softsoap Décor Collection has launched in mass retail, drug and grocery stores nationwide with a suggested retail price of $2.97 each.

Green Gorilla Introduces CBD Gummies Green Gorilla’s latest offering is expanding its line of hemp-derived CBD products. The company is introducing Gorilla Gummies, each of which contains 5 mg of CBD, in 60-count bottles, offering a total of 300 mg of CBD per bottle. Gorilla Gummies come in a mix of strawberry, wild berry and proprietary Gorilla Berry flavors. The gummies are free of THC, gelatin, gluten, nuts and soy in addition to being kosher and free of artificial flavors and colors. They contain Green Gorilla’s exclusive blend of organic botanicals, herbs and essential oils meant to maximize the CBD’s bioavailability, the company said. Gorilla Gummies carry a suggested retail price of $59.99 for a bottle. Each gummy contains 15 calories, 2 g of total sugars and 3 g of total carbohydrates.

Tom’s of Maine’s oral care portfolio continues to expand. On the heels of unveiling a new charcoal addition to its product lineup, the Kennebunk, Mainebased company has introduced another product. The Silly Strawberry Kids Mouthwash joins the brands growing line of oral care products for children and is made without the use of artificial dyes, flavors, sweeteners or preservatives. Silly Strawberry Natural Kids Mouthwash helps freshen breath, provides cavity protection for healthier smiles and features its wellknown Silly Strawberry flavor, the company said. “For more than 25 years, our immensely popular Silly Strawberry Toothpaste has been a favorite for kids with its appealing natural, fruity flavor,” said Lindsey Seavey, the oral care brand manager at Tom’s of Maine. “By adding a mouthwash to the Silly Strawberry lineup, we hope to make rinsing a tasty and fun step in the daily routine.” Tom’s of Maine Silly Strawberry Natural Kids Mouthwash is available with or without fluoride and comes in a 16-oz. size that retails for $5.99 and can be found on Target shelves. In addition to selling its products, the brand also gives 10% of profits back to support nature and healthy families. Further information on that initiative can be found on the Tom’s of Maine website.

Unilever to Acquire Olly Nutrition Olly Nutrition’s collection of vitamins, minerals and supplements may have found a new home. Unilever has signed an agreement to buy the San Francisco-based company co-founded by Eric Ryan in 2014. Ryan had previously co-founded home and personal care products line method. “We are delighted to welcome Olly Nutrition to our portfolio of brands. Olly is a strong, innovative brand in the fast-growing health and wellbeing space, and nicely complements our businesses in beauty and personal care and foods and refreshment,” said Amanda Sourry, president of Unilever North America. “We are thrilled to work with Unilever to grow the Olly brand and amplify our mission, culture and commitment to helping people feel happy inside out,” Ryan said. Olly will continue to be based in San Francisco and managed by Eric Ryan, who will assume the role of chief growth officer, the companies said. The company’s current COO, Gerry Chesser, will take over as CEO of Olly. Other terms of the deal were not disclosed. 24


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4/23/19 9:35 PM



Opioid addiction can disrupt the normal, healthy functioning of the brain. These brain changes can be long-lasting, and can lead to the harmful behaviors, without regard to age, sex, or social-economic status. If left untreated, opioid addiction can have serious harmful consequences, including the potential for overdose and death. At Dr. Reddy’s, we know the opioid crisis touches everyone. Our employees are working around the clock to develop life-changing medicines that can help treat this debilitating disease because Good Health Can’t Wait.

DrReddy-OpioidCrisisAd-DrugStoreNewsDailies - 0219172.indd 1 Untitled-23 25

Dr. Reddy’s Laboratories, Inc. 107 College Road East, Princeton, NJ 08540 Tel: 866-733-3952


3/11/1912:27 3:39AM PM 4/18/19


The Trust Epidemic Retailer-manufacturer relationships need a strong foundation. By Dan Mack

Dan Mack, founder, Mack Elevation

“ 26

paying attention, nor adapting to the buyer’s pressures;” 4. “Most sales people fill the room with too much personal agenda and don’t listen well enough;” and 5. “Each day you must earn your keep; your past success doesn’t guarantee your future status.”

Could Any of These Statements Be Your Blind Spot?

When I sit down and interview senior buying leaders, I quickly realize that many sales organizations are not as productive as they could be. What do senior buyers want to see in their sales partnerships? If you are up to the challenge, here are the top five behaviors senior buyers shared with me: 1. Executives want partners who solve problems, thinking holistically about the whole business; 2. They are looking for insatiable curiosity, intent listening, and truly uncommon, unique insights; 3. More discovery, less speech; courageously pushing boundaries and challenging their viewpoints; 4. Operating with a healthy obsession, questioning themselves and taking nothing for granted; and 5. Embrace speed, simplicity, transparency and a granular understanding of customers’ needs. More than 75% of the value of the Fortune 500 are in intangible assets. What unique or hidden assets do you possess that your customers’ value and that help address their higherlevel agenda? Creating and protecting a trusting relationship is no longer an opportunity — it’s a necessity. Are you creating meaningful moments that matter during your customer meetings? To learn more about Mack Elevation’s performance coaching, consulting, training and leadership events, visit mackelevationforum.com. dsn

Creating and protecting a trusting relationship is no longer an opportunity; it’s a necessity. Are you creating meaningful moments that matter?


hree percent of decision makers “completely trust” sales leaders, according to a study conducted by HubSpot Research. Startling, humbling, but not surprising. Over the years, I have conducted similar research and I have discovered that many leaders in senior buying roles trust the sales person, yet have serious doubts that the company will deliver on its promises. Recently, I conducted research on the trust between a group of CPG companies and their top retail customers. There were three strong perspectives that came through loud and clear in the research: 1. Manufacturers struggle with limited access to their top customers, hindering the depth of the relationship and overall alignment of the partnership; 2. Manufacturers continue to struggle with reduced profitability due to an escalation in retailer demands, reducing profitability, candor and longer-term investment potential; and 3. Both retailers and manufacturers are frustrated that the other party lacks creativity, agility and empowerment, hindering the potential for larger value creation. Even the best brands believe their customer engagements are too transactional, fragile and, often, nonstrategic. Our research shows that the most productive partnerships mutually are aligned on the most vital strategic priorities, financial expectations, interpersonal dynamics and level of transparency, and they jointly share risks. In a volatile, competitive world, retailers’ business needs have changed. When I ask retail executives, “What blind spots are getting in the way of growth with your top brand partners?” I was not surprised by their answers. The top five comments include: 1. “You are not as different as you may think, and your and our epiphanies aren’t epiphanies;” 2. “You don’t understand my problems, evolving future needs or the value of my time;” 3. “You are not reading the room and


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4/23/19 9:39 PM

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4/18/19 12:28 AM


The ‘Check Strategy’ Light Drug chains can grab a larger share of the food service business if they get more involved By Bill Pizzico

A Bill Pizzico, president and CEO, Synergy Group

t one time or another, every person who owns a car has had the dreaded “check engine” light come on. When it happens, most truly do not know what it means, what is wrong, or how long they can continue driving before their trip to the mechanic becomes necessary. They know something is wrong, but they rationalize and delay because all is good for now. The car is running, and maybe the light will go out. In today’s marketplace, changes are coming at lightning speed no matter your position in the supply chain. Whether you are a manufacturer or retail operator, chain or independent, the time is right to act on that blinking strategy light. The past decade has turned on “check strategy” lights in market segments from supermarkets to convenience stores, each with channel problems, ranging from product assortment, inventory, logistics management and customer profiling. Drug store food service, in particular, also will be a challenge to your marketing department, your merchandising group, your communications strategy and, above all, your boardroom. Now is the time to take those tasks head-on and make your trip to your boardroom to see what the light is really telling you. You will learn that this new market segment has very quietly and, with little notice, jumped to the front of your action agenda. The convergence of retail and food service now has matured into a very real market channel with the biggest advantages to drug stores being the constant customer traffic and a firm knowledge of your customer profiles. Candidly, right now, drug store operators have a small slice of this $200 billion pie, with a very cautious product assortment in their refrigerated cases. Yet the opportunity is there. Cold case prepackaged foods “to go” are plentiful. Today’s operators, no matter the segment, are in full tune with what shoppers are looking for — quality, convenience and variety. Whether you are a manufacturer or operator, chain or independent, the time is right to act on

that blinking strategy light in venues that go well beyond the traditional store formats. Consumers are buying what they want wherever they may be shopping, and in whatever format these three criteria are available. No longer will the traditional market segments or formats be without a food offering in some convenient and distinct, quality-driven presentation. Absolutely check your strategy light, or you will find yourself on the side of the drug store food service highway watching your customers drive to a competitor down the street. Developing a drug store food service strategy starts with recognizing the light is blinking, finding out the requirements and then acting on them. You can start your strategy check with these five keys to getting past the blinking light: 1. Know firmly how much space you can dedicate to food service; 2. Know exactly which suppliers to call for product assortment assistance and logistics management. You can certainly look to broadline distributors, but a closer look at convenience store distributors may serve you well as a “jump start” and, perhaps, someone to grow with; 3. Keep your assortment simple to start. Look to sell by dates not being too far out, so your customers know you are presenting fresh food; 4. Buy quality, not price, and have your own internal focus groups within your stores and corporate offices. After you have made your common-sense selections, call in your distributors of choice to see if they can accommodate; and 5. Identify a brand strategy. It will be a brand solution for today and tomorrow. The more you control your brand, the more you can control your message, product assortment and pricing. Take your “check strategy” light seriously. It is not necessarily predicting doom, but may be spotlighting the opportunity that takes your business to its next level of performance. dsn

Whether you are a manufacturer or operator, chain or independent, the time is right to act on that blinking strategy light in venues that go well beyond the traditional store formats.



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4/23/19 9:42 PM

The Fastest Growing OTC Company in the U.S. 1






Soothe® XP

#1 AREDS brand in dollar share and households2

#1 multi-purpose solution brand in dollar sales and households2

Contains Restoryl® mineral oils, clinically shown to increase the eye’s lipid layer3


renu® Advanced Formula


#1 general eye health brand in dollar share and households2

Latest innovation in lens care

Unique formulation, already #1 eye doctor recommended redness reliever eye drop4

Thanks for supporting these great Bausch + Lomb brands. *These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease. 1

Untitled-23 29

IRI, MULO, Data Ending 12/30/18, Based on IRI Syndicated (TSV) Definition of Manufacturers in Healthcare (OTC) with >$500MM in Annual Sales. 2 IRI Data, latest 52 weeks ending 12/30/18. 3 FOGT J. Clinical Ophthalmology 2016; 10: 2237-2243. 4 IQVIA ProVoice Survey April-August 2018. ®/TM are trademarks of Bausch & Lomb Incorporated or its affiliates. © 2019 Bausch & Lomb Incorporated. PN09155 MTB.0092.USA.19

4/18/19 12:29 AM


Eye on the Drug Spending Horizon IQVIA sees big opportunities in biosimilars, patent expiries between now and 2023 By Sandra Levy


QVIA, a leader in forecasting trends that impact the use of and cost of medicines, is once again peering into its crystal ball. The IQVIA Institute for Human Data and Science’s recently released its report on the direction of the global health market in the coming five years. “Medicines represent an unparalleled contribution to global health, but their value is keenly negotiated by stakeholders across the developed and developing world,” the report said. “The global outlook for medicine use and spending is a much-watched barometer for the results of these ‘negotiations’ and provides insights into the prospects of life sciences companies, insurers and the health of populations around the world.” IQVIA projects that the global pharmaceutical market will exceed $1.5 trillion by 2023, and although it is expected to grow at a 3%-to-6% compound annual growth rate over the next five years, — a slowdown from the 6.3% growth that took place over the past five years. Growth in the United States will be driven by new products, but will be offset by losses of exclusivity of branded products, along with the emergence and growth of biosimilars, IQVIA said. In the United States, while invoice spending is expected to increase at a 4%-to-7% compound annual growth rate to between $625 billion and $655 billion, over the next five years, net manufacturer revenue growth is expected to be slower, at 3%-to-6%. Brand prices are expected to increase at a historically low 4%-to-7% on an invoice basis for protected branded products over the next five years, but 0%-to-3% on a net manufacturer revenue basis. The report also revealed that spending on medicines is expected to tally over $600 billion on an invoice basis in 2023, including spending in all channels, including retail pharmacies, hospitals, doctors’ offices and on all product types, for example, small molecules, biologics, brands, generics, and biosimilars. The impact of losses of exclusivity in developed markets is expected to be $121 billion between 2019 and 2023, with 80% of this impact, or $95 billion, in the United States. By 2023, 18 of the current top 20 branded drugs will be facing generic or biosimilar competition, IQVIA predicted. By 2023, biosimilar competition in the biologics market will be nearly three times 30






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n Biologics n Small molecules n Total brand loss due to LOE The impact of losses of exclusivity in developed markets is expected to be $121 billion between 2019 and 2023, with 80% of this impact, or $95 billion, in the United States. larger than it is today. This will result in a roughly $160 billion reduction in spending over the next five years, IQVIA said. “The biggest single event in the biosimilars market in the next five years will be the introduction of adalimumab (Humira) biosimilars in the United States in 2023,” the report said. “By the end of 2023, only two of the current top 20 original brands, nivolumab (Opdivo) and pembrolizumab (Keytruda), will not be facing generic or biosimilar competition. By 2023, U.S. policies are expected to encourage more biosimilar applicants to file and to reshape reimbursement dynamics that have hampered early uptake of some molecules.” IQVIA predicted that even with biosimilars driving a spending decrease, the share of total medicine spending going to specialty will reach 50% by 2023 in most developed markets as the majority of new medicines have been and will continue to be in specialty classes. In 2018, specialty comprised 41% of developed market spending — compared with 30% in 2013.

Cost and accessibility continue to be challenges that need to be addressed. IQVIA said the emergence of a limited number next generation biotherapeutic drugs is good news for patients, but the costs per patient for these therapies are challenging current payment models. “Specialty, niche and orphan drugs, in increasing numbers, are reshaping the pricing environment as some have significant costs,” the report said. Also on IQVIA’s radar is the increased use of mobile apps. Such applications are forecast to come to market alongside prescription devices with indications and disease-specific treatment effectiveness claims in their software labels. Finally, the growth of artificial intelligence, machine learning and deep learning programs leading to the discovery and development of medicines, as well as policies and new legislation that will impact opioid prescribing and use, also are on IQVIA’s watch list. dsn


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4/23/19 10:00 PM


Ahead of the curve in quality and value. ®

Camber Pharmaceuticals, Inc. (732) 529-0430 camberpharma.com

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4/18/19 12:30 AM


MVP: Most Valuable Products New study highlights OTCs’ value to the healthcare system By David Salazar


all it the OTC butterfly effect. New data from the Consumer Healthcare Products Association and IRI is highlighting the ripple effect that a consumer buying an OTC product can have on the American healthcare system — namely, some $146 billion in savings, or an average of $7.20 for each dollar spent on an OTC product. The study, which examined survey results from more than 5,000 consumers, found that the savings come from both drug cost savings, which totaled $52 billion, and cost savings from avoiding unnecessary clinical visits, which totaled $95 billion. “It’s hard to imagine what life would be like if OTC medicines weren’t available,” said Scott Melville, president and CEO of CHPA, when the study was released. “For this study, researchers actually mapped out a scenario where nonprescription options weren’t available to determine the value of OTCs to our healthcare system. Not surprisingly, in that scenario, they found most consumers would go to a doctor, get a prescription, or delay treatment and suffer the consequences like more frequent absences from work, for example. There are direct and indirect costs associated with each of these scenarios. And they are enormous.” The study was focused on the nine OTC categories that comprise the majority of OTC medicines purchased in the United States — allergy, analgesics, antifungals, cough-cold/flu, lower GI, medicated skin, upper GI, sleep, and smoking cessation products. Three of those categories — medicated skin, lower GI and upper GI products — made up roughly 61% of the total cost savings. The impact of OTC availability, allowing consumers to self-treat their conditions, isn’t just restricted to the healthcare system, either. The report said that if OTC products were less widely available or entirely unavailable, consumers would be forced to see a physician for treatment or diagnosis — typically during working hours. “With an estimated two hours of lost work on average to get treatment or obtain a prescription through a visit to a physician — including travel time, wait time, and the clinician interaction in the physician’s office — a scenario in which OTC medicines were no longer available would incur significant costs,” the report said. 32








Source: CHPA, IRI, “Value of OTC Medicines to the U.S. Healthcare System”

If OTC products were less widely available, the nation’s already overburdened healthcare system would see an influx of patients. Additionally, IRI and CHPA noted that if OTC products were less widely available, the nation’s already overburdened healthcare system would see an influx of patients. The study estimates that roughly 90% of consumers who buy an OTC product for a condition would seek medical treatment if the OTC product hadn’t been available. “It is inconceivable that the U.S. healthcare system would be able to absorb additional office visits from hundreds of millions of consumers to get treatment or obtain prescriptions for mild conditions that they can self-treat,” the report said. Indeed, in seven categories, more than 35% of consumers said they only use OTC products to treat their condition. For allergy, cough-cold/flu and medicated skin categories, 62%, 68% and 61% of consumers, respectively, said OTC offerings are their only line of defense. In allergy and heartburn, the report said that Rx-to-OTC switches are among the key drivers of OTC product adoption. Since 2001, 25 products have made the jump from prescription counter to the front end, including such categories as heartburn, contraceptives and weight loss. “If medicines currently offered [as] OTC were only available as prescription, a significant portion of consumers would no longer seek those products,” the survey said. “Based on the survey results, this particular portion of the population is











Lower Gastrointestinal


Medicated Skin


Upper Gastrointestinal


Source: CHPA, IRI, “Value of OTC Medicines to the U.S. Healthcare System”

approximately 27 million consumers. The sales annually of OTC medicine to this segment of the population total approximately $4.8 billion.” Ultimately, the report makes the case for a strong OTC marketplace that offers selfcare solutions for consumers looking to save money on their health care, with an eye to the downstream savings that marketplace creates. “The evidence is clear that OTC medicines help ease the tremendous burden on the healthcare system by empowering consumer self-care, thereby allowing overstretched healthcare practitioners to focus on the diagnosis and treatment of patients with more serious diseases and medical conditions,” Melville said. dsn


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4/23/19 10:01 PM


Championing a Healthier Tomorrow Avrio Health’s portfolio and experienced team drive novel advances and consumer demand


ith personal care and wellness products becoming increasingly important to today’s shoppers, more consumers are searching for brands that can help them live better lives and offer more individualized solutions. At Avrio Health, we pride ourselves in our commitment to innovation and investing in new possibilities, our understanding of consumer interests and how to reach them, and our relentless passion to develop a strong, diversified portfolio of products that deliver self-care solutions that advance health. We have a well-respected, well-known portfolio of proven effective brands in infection resilience, digestive wellness and health supplements including Betadine®, Colace®, Senokot®, and SlowMag™ Mg and an experienced team with the passion and expertise to drive novel advances and consumer demand. In our first year, Avrio Health invested significant resources to create one-on-one connections with our consumers and bring innovative product solutions that are truly differentiated in the marketplace. We continue to engage in meaningful conversations with the industry at every level to drive innovation, education and grow a strong pipeline of

also looking to partner with retailers on this initiative that will ultimately educate and empower consumers with the best tools for self-care so that they may live healthier lives. Our digestive wellness platform continues to evolve as the company seeks to bring new innovation in to the gut microbiome space. In 2019, we are expanding the Senokot brand beyond laxatives into adjacent segments in the digestive wellness category for the first time to include Senokot™ Kiwi Balance™ and Senokot™ Ginger Care™. There is a growing consumer interest in effective products inspired by nature, and at the forefront of this initiative is the launch of Senokot Kiwi Balance. This daily supplement, with the key ingredient Kiwi Zyaction™, a patent protected, proprietary blend of freeze-dried kiwifruit pulp containing a naturally occurring enzyme and prebiotics, is clinically proven to promote regularity without bloating or gas. Our team of passionate scientists and expert strategists seek to impact unprecedented change and bring innovative products to consumers through collaboration, education and our investment in the development of clinically proven effective solutions to champion a healthier tomorrow. For more information on how we can work together, contact Avrio Health via email at ContactAvrio@ AvrioHealth.com. dsn

Our team of passionate scientists and expert strategists seek to impact unprecedented change and bring innovative products to consumers.

consumer-insight led, forward-thinking solutions to improve people’s lives. A key component of our mission to champion a healthier tomorrow has been through the U.S. relaunch of Betadine®, the antiseptic trusted by hospitals for over fifty years. While Betadine enjoys a strong equity among professionals and in global markets, it has not been supported as a consumer facing brand in the U.S. In 2018 we invested in developing a consumer value proposition for the brand and launched both new packaging and a digital campaign in Q4. We are kicking off a massive PR campaign this year to educate consumers on the role of a topical antiseptic in proper wound care and to announce the introduction of the first branded antiseptic cream. As part of our infection resilience platform, Avrio Health is assembling a roundtable of healthcare professionals with the goal of updating wound care guidelines to reflect current data in our changing world. We are


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Sustainable Beauty’s Big Break Consumer demands pave the way for sustainable beauty offerings By Gisselle Gaitan


growing trend within any space — whether it be food, fashion or beauty — is transparency. Shoppers increasingly are asking for complete transparency from their favorite brands when it comes to knowing not just what’s inside their products, but what they’re packaged in and what happens to the waste when all is said and done. This trend is the focus of “Sub-Zero Waste,” Mintel’s 2019 global beauty and personal care trend report, which said that as waste reduction becomes more evident in day-to-day lives, shoppers soon will take a close look at their beauty routines and their environmental impact. “Consumers expect brands to take responsibility for their waste, and will be attracted to manufacturers, companies and brands that not only do so, but also facilitate waste reduction processes for consumers,” the study said. Currently, 54% of U.K. beauty and personal care shoppers are researching their products online before putting them into their shopping carts, and 54% of potential Brazilian buyers of green and ethical products admit to choosing sustainable and environmentally friendly items because they don’t like to pollute.

As waste reduction becomes more evident in day-to-day lives, shoppers soon will take a close look at their beauty routines and their environmental impact. “As a spotlight is currently being shone on the fast-fashion industry, there is a movement towards circularity — allowing products/materials to be recovered, regenerated and reused, rather than disposed of,” the report said. “[Beauty and personal care] brands should be inspired by this, but must ensure the processes used to create resellable, reusable or repurposed products won’t end up being more toxic for the environment in the long-term.” Efforts from brands — both established and emerging — recently have highlighted the fact that manufacturers are paying attention to what consumers want, 34

launching recycling programs and offering more sustainable packaging options. Among them has been Procter & Gamble’s Herbal Essences, which created recyclable shampoo and conditioner bottles for three products in its bio:renew collection that are made of 25% beach plastic, and will be hitting shelves for a limited time. Garnier also is jumping on this ship by also joining forces with TerraCycle and DoSomething.org to highlight the importance of beauty recycling. TerraCycle’s forthcoming pilot called Loop, which focuses on reusable CPG packaging, will include durable packaging for Unilever’s Dove, Axe and Degree deodorants, as well as P&G’s Pantene hair care brand. P&G’s Oral-B brand, as part of Loop, will be testing circular solutions for its electric and rechargeable toothbrushes, as well as the Oral-B Click manual toothbrush, which features a durable handle and an exchangeable head. Additionally, Unilever and L’Oréal have pledged to use 100% recyclable, reusable and compostable plastic by the year 2025, and Avon said it already has achieved 95% of its goal to send zero waste to landfills. The study said that, even as larger name brands delve into this new territory, such emerging brands as Ethique, Lamazuna, Loli Beauty and Seed Phytonutrients that have built their businesses on environmental policies put them slightly ahead of the curve. “The companies that put current profits ahead of investment in zero-waste solutions will lose out in the long-term,” the report said. “Indie brands already have an edge, as they have built their business practices around ethics. High-profit [beauty and personal care] brands that aren’t investing in this

area are already condemning themselves.” As waste reduction comes into focus, another trend increasingly being employed is upcycling. Mintel highlights e-retailer Glambot, which offers consumers a space to buy and sell used beauty products. The company verifies and sterilizes products before reselling them, which allows consumers to no longer feel guilt over causing waste from something they no longer want, the study said. Pacifica has joined the movement by upcycling empty bottles into other products, including toothbrushes and razors through its Preserve Recycle Me program, the study said. It also, along with Gillette, is partnering with TerraCycle on a nationwide take-back program that is part of the brand’s parent company’s, Procter & Gamble, step towards a long-term vision of using 100% renewable and recycled materials in its products and packaging, according to P&G hair care executives. Upcycling is a space that truly hasn’t been fully embraced by the larger name brands, but it also is slowly offering them a space to take advantage of, Mintel said. For example, brands that offer consumers refills on their products could begin to implement solutions on how to reduce waste on returns and allow shoppers to explore refurbished cosmetics in returned packaging at a reduced cost to help meet sustainability goals. “Beauty and personal care brands that offer refills need to maintain post-sale contact with customers and provide information about how their new solutions are reducing waste,” the report said. “Implementing a returns scheme, allowing customers to return packaging they do not wish to refill, and exploring refurbished cosmetics in returned packaging at a reduced cost can ensure sustainability goals are met.” dsn


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Breathing Life into Beauty Retailers and manufacturers are aiming for growth in a sluggish category


hat will be the biggest issues tackled at the National Association of Chain Drug Stores Annual Meeting? Over the next few days, 30 of the nation’s biggest beauty brands will meet with executives representing more than 60 national mass retailers to hammer out strategies for the beauty industry for the year ahead. Drug Store News asked those attending on both the buying and seller equation what beauty topics they hope to sort out during strategic exchange appointments this week. The past year particularly was not rosy for the mass cosmetics and personal care business. According to Nielsen data, mass beauty declined 3% for the four-week period through March 9. Skin care and hair care were the exceptions, both posted small gains. Aiming to turn the tide, here are topics executives hope to delve into during top-to-top meetings at tents and cabanas during NACDS Annual Meeting.

How to Bring the Magic Back

Mass merchants took a hard hit in the beauty aisles, losing shoppers to online, specialty and department stores. The latter, in fact, turned up the volume in beauty with remodeled stores and price points competitive with mass. For such retailers as CVS Pharmacy, Target and Walmart, the ammunition will be exclusive products — from big and small brands — that help differentiate their selection from the competition. CVS Pharmacy has added more than 60 new lines. Walmart is on a growth path with such exclusives as the new wellness brand from Bobbi Brown called Evolution_18. Target has added a slew of 36

new lines, including Grace & Tonic, Sculpt, Love AnyBody, Megababe, Queen V, Real feminine hygiene, and Pacifica supplements. While niche beauty is having its moment, the majors have an arsenal of new, too. Retailers expect to see a barrage of fresh items across all categories, especially shades tweaked for all complexions. There also is talk of a renaissance in the mass fragrance market.

Make it Sustainable

Consumers are tired of excess packaging and the waste in the beauty category. Still, recycling has gained traction in the kitchen, but not in the bathroom. According to a report from Johnson & Johnson, 7-in-10 Americans said they always or almost always recycle, but only 1-in-5 people consistently did so with bathroom items. Such companies as L’Oréal are working to encourage consumers to add bins to bathrooms much like recycling containers in kitchens. Unilever is committed to ensuring that all of its plastic packaging will be reusable, recyclable or compostable by 2025. Recently, the company unveiled reusable packaging innovations across nine of its brands, including four new product formats. The industry is morphing from trying to make products beautiful to trying to produce packages and products that are more sustainable. Challenges in the journey exist, including educating consumers and finding the ways to provide recyclable materials that don’t raise price points. “Sustainability is the No. 1 issue people are asking us about now,” said Larissa

Jensen, executive director and industry analyst at the NPD Group.

Elevating the Experience

Shoppers found the mass beauty ambiance a bit “humdrum” over the last few years. That’s a problem when one of the number of reasons people shop brick-and-mortar is the experience. Retailers are coming to NACDS Annual Meeting armed with a wish list of strategies they want suppliers to help support — mostly financially. Those include more use of such in store digital tools as tablets that people can use to virtually try makeup on. There also is a clarion call to improve fixturing, eradicating the age-old gondolas endemic to the industry in favor of a more boutique approach. The Birchbox in Walgreens uses fixtures designed to resemble bedroom furniture rather than a store.

Ingredient Stories

Consumers are reading labels, looking not only for what is not in products, but what is left out. Retailers are trying to sort out what is important to shoppers. Many chains have vowed to remove such chemicals as phthalates, propylparabens, butylparabens and formaldehyde. Flynn Matthews, head of insights and measurement, global CPG at Google, said people care as much about naturals as ingredients. Digging into Google searches, she said consumers look based on two keys — safety and efficacy. In the United States, she said the most popular keys words are gluten and oxybenzone. The hot ingredient searches are turmeric and, not surprisingly, CBD. The natural ingredients she said to watch out for are witch hazel and rice water. Meetings will undoubtedly dig into how to serve the needs of shoppers who want less toxic, yet high performing, products. dsn


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Beauty’s New Buzz CBD makes its way into mass beauty offerings


eauty is one of the several categories mass market retailers expect will benefit from the CBD boom. CVS Pharmacy, Walgreens, Rite Aid and Bartell Drugs already offer topical CBD products in select stores and many other retailers said they are prepping for rollouts once the legalities of the category get sorted out. The financial industry also is confident about the category. “We believe cannabis based personal care products could be the next big thing in the beauty industry,” said Erinn Murphy, managing director and senior research analyst at Piper Jaffray. She views cannabis beauty as an extension of the broader natural beauty trend that has been driving sales gains in the beauty and personal care business. “In fact, Google search trends for ‘natural beauty’ and ‘clean beauty’ have tapered off slightly, while ‘CBD beauty’ has gained traction,” she said. The investment firm estimates the total cannabis market represents a $15 billion to $50 billion opportunity today and a $250 billion to $500 billion opportunity the longterm. CBD, the company said, is potentially worth $50 billion to $100 billion. Coresight Research zeroes in on the potential in skin care. In a report, the company said the skin care business will expand at a compound annual growth rate exceeding 5% — nudged on by a bevy of launches with CBD oil. Although President Donald Trump signed the 2018 Farm Bill last December, which opens the gate for more cannabis-based products, the laws governing the sale is murky. Retailers are selling CBD in states where marijuana is legal, but taking a wait-andsee approach in others. Some are opting for hemp seed oil products that are legal everywhere. Whether there is any scientific evidence of CBD’s benefits is another hurdle to growth that causes some merchants to pause. Anecdotally, there are many success stories and retailers report strong repeat sales. CBD is thought to have the potential to treat anxiety; nausea; inflammation, which benefits skin care; and epilepsy, 38

CBD is thought to have the potential to treat anxiety; nausea; inflammation, which benefits skin care; and epilepsy, among other conditions. among other conditions. As CBD is a distillate, it also fairly is easy to add to products. Retailers also cited a high return purchase rate as proof that there are attributes. Much of the activity in beauty so far has been in the luxury market. Sephora added a popular line, Lord Jones, late last year. Barneys and Neiman Marcus offer cannabis products. Ulta Beauty just added Cannuka, with products formulated with CBD and manuka honey. The brand is sold at such retailers as Neiman Marcus, Free People and dermstore.com. Spas also are high on CBD. The Red Door Salon & Spa launched a new selection of CBDenhanced services. The CBD enhancements use Color Up Therapeutics’ pure hemp-based products and can be added to the curated menu of body and nail services at salon’s locations nationwide, with facial services to be available this summer. Prestige CBD companies include Saint Jane Beauty, which has CBD lip gloss;

Necessary Luxury; Josie Maran’s Skin Dope; and Lord Jones. Yet, there is a pipeline of mass brands at the ready, including Charlotte’s Web; Mile High Labs, an ingredient manufacturer; Myaderm, Harmony Hemp; Evo Hemp; CBD Medic; Sky Organics; W3ll People; Sagely; Veritas Farms; Minted Leaf; and Sana. One of the biggest challenges, experts said, will be deciphering how to merchandise CBD products. Should they all be in one area? Or should CBD be integrated into such departments as vitamins or cosmetics? Walgreens, CVS Pharmacy and Rite Aid’s recent entries yield proof that the big chains want a piece of the pie. Still to be hammered out are such issues as labeling. Since regulations are spotty, merchants also said they will need to make sure products are what they say on their labels. For example, THC has been found in products that did not list it as an ingredient (concentration of THC in hemp products must not exceed 0.3%). Education also will be needed so shoppers understand the difference in products — for example, hemp seed oil versus CBD. Brands and retailers agree, however, that stores with pharmacies and wellness presentations will be well positioned to grab market share in this buzzy business. dsn


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Child’s Display Candy and beverage companies aim to appeal to health-conscious parents By Sandra Levy


n the old days, many parents would simply throw a toy or snack into their shopping cart, hoping that would be enough to placate their pleading children. Today, much the same thing happens, except the parents more likely are to scrutinize the packaging and labeling for key information. Millennial parents, who matured as the self-care movement gathered momentum, are eating healthier and exercising more than their baby boomer parents. In this increasingly health-conscious world, it is no wonder parents are more particular about the candy, food, toys and healthcare products they choose for their children. This means that manufacturers of children’s products have a two-fold job — attracting and delighting young consumers while offering parents peace of mind. This is especially true in the candy category, which the Chicago-based research company IRI pegged annual sales to be around $24.5 billion between candy, gum and chocolate in U.S. multi-outlets for the 52 weeks ended last December. The big numbers have many manufacturers paying attention to how they market products directed at children. For example, Zolli Candy, based in Commerce Township, Mich., is betting that by providing candies that are sourced from natural ingredients, it can win over both children and parents. Tom Morse, Zolli Candy’s manager, pointed out that his daughter Alina, who


Manufacturers are quick to point out that retailers can increase sales of children’s products by being creative with product placement. is now the company’s CEO, was only 7 years old when she came up with the idea of developing a healthy candy that would not be harmful to children’s teeth. The idea came to fruition with the creation of Zolli Pops and Zolli Drops, which the company touts as “The After You Eat Treat for a Healthy Smile.” Ingredients include stevia, xylitol and erythritol, which is a plant-derived ingredient that works naturally with our bodies to help reduce the acidity and balance the pH in our mouths, Morse said. Available in peppermint, strawberry, grape, orange, cherry, raspberry and pineapple flavors, Zolli Pops and Zolli Drops are sugar-free, non-GMO, gluten-free, dairy-free, nut-free, soy-free, vegan and kosher. They contain beetroot juice, stevia, turmeric, and grape and annatto extract, and all colors are derived from natural plant-based sources. Zolli Candy isn’t the only company capitalizing on a trend, and for many food

and beverage companies, a key part of the strategy is knowing what your consumers wants for their children. “If you want to get more people to come into your store to buy your product, you have to understand that the key thing people are thinking about is healthier options for themselves and their family,” said Kara Goldin, CEO and founder of hint. Hint recently introduced hint kids, a line of flavored water that does not contain sugar or artificial sweeteners. Available in watermelon, cherry, apple and blackberry, the flavors are derived from the skins and oils of fruit. Louisville, Ky.-based CandyRific also is raising the bar when it comes to amusing kids, while ensuring parents’ satisfaction. The company has spent almost two decades marketing such interactive, battery run novelty toys as fans that have dispensers filled with small amounts of candy. The toys tie in with licensing from Nickelodeon, Disney and DreamWorks’ productions.


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Clark Taylor, CandyRific’s vice president of sales and marketing, said the candies contain dextrose, natural flavors and such colors as turmeric, beta carotene and beet powder, and each serving is 50 calories, which is designed to please parents.

Merchandising Matters

Manufacturers are quick to point out that retailers can increase sales of children’s products by being creative with product placement. Zolli Candy’s Morse suggested more than one place to showcase products like the ones his company makes. “If it is going into an oral health set, it’s an incremental sale because there’s nothing like it on the shelf,” he said. “It’s a consumable item, so it has a high repurchase rate if it is placed in the natural candy set or sugar-free set.” CandyRific supplies retailers with 12-unit counter trays, featuring attractive graphics that correspond to the blockbuster movies the company ties into. “The retail store or pharmacy wants to make sure that they put the units in the tray because the graphics bring the eye of the consumer to the section and the item,” Taylor said. CandyRific’s trays are about 9 inches wide and 9 inches deep. The toy fans are roughly 9 inches tall, so retailers can put $36 worth of merchandise in a small footprint and sell them for $60, Taylor said. The 12-count tray can be placed in the candy section or at the front of the store. Another strategy manufacturers are betting on to increase sales of their products to children and parents is to expand product offerings on a regular basis. The trend in chewy candy was the impetus behind Zolli Candy’s introduction of Zaffi Taffy. “Kids like chewy candies, and that’s been where most of the growth in non chocolate candy has happened over the last three years, Morse said. The company also is rolling ou large-size Zolli Ballpops. Taylor believes that evergreen properties are critical in boosting retailers’ sales. “We take a look at what Disney, Nickelodeon and DreamWorks are doing, and work very closely with licensing groups to tie into their opportunities because they will have a much longer life at retail than the hottest trends or hottest licenses,” he said, citing such movies as “Star Wars,” “Frozen 2,” “Toy Story 4,” and Marvel movies as 42

evergreen properties. CandyRific also continues to deliver such new novelty items as Lick Pop, which has powdered candy in the bottom and a pop on the top, and features a character from Nickelodeon’s “Paw Patrol” movie.

Ninja Turtles, to talk about movies that are coming out in 2020,” Taylor said. “We’re starting to look at what they’re doing in 2021, so we can determine which movies we want to tie into and build products for.”

Looking the Part

Beyond caring what’s in the products they buy, parents increasingly are becoming interested in what a company stands for, as well as its philanthropic efforts. Take the case of Target’s loyalty program, which lets shoppers choose which local nonprofits Target should donate toward. For example, in the Dallas market, loyalty members have directed $250,000 in donations to about 50 organizations, according to a recent CNBC report. Zolli Candy is following a similar path with its One Million Smiles Initiative, in which 10% of profits are committed to support oral health education in schools. Even without a philanthropic focus, consumers look to brands to fulfill certain needs. Taylor said that since many of CandyRific’s products tie into licenses for movie sequels, parents feel a sense of comfort and nostalgia introducing their children to products that tie into films they saw when they were kids. Kantar Consulting’s vice president Brian Owens said no matter what angle companies take, parents are going to trust a product and spend more money if the manufacturer is authentic and helps them understand a product’s value easily. “Purpose-driven experiences are going to be what people are looking for,” Owens said. “Your ability to make a statement matters a lot in the new world of retail. People will pay more for the creation and sustainability of things that play more into a healthy lifestyle.” dsn

Manufacturers realize that it’s also critical to invest in packaging to boost product sales. Ferrara Candy has said in recent advertising that it has “cleaned up its label and sealed the better bar in a new, double-layer wrapper to lock in flavor and help keep it tasting great.” The company also is focusing on better ingredients and an improved recipe, as evidenced by a full-page color ad that ran in The New York Times to introduce consumers to “A Better Butterfinger.” Zolli Candy, which uses kid-friendly, fun and vibrant colors, as well as characters that children identify with on its packages, is continually refreshing its packaging throughout the year. Hermey, the Elf dentist from the “Rudolph the RedNosed Reindeer” movie, will be featured on the company’s Christmas 2019 packaging. Manufacturers committed to planning a year or two in advance of new product launches are instrumental in helping retailers boost sales of children’s products. “You have to plan pretty far out. We had a conference call with Nickelodeon, which has SpongeBob, PAW Patrol and [Teenage Mutant]

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