Progressive Grocer - June/July 2009 - (Page HBW6)

HEALTH BEAUTY WELLNESS Cough & Cold This mainstay of the pharmacy section may be ailing a bit, but aggressive placement of new items, everyday retails and promotional activity to maintain market share can result in a better prognosis. By Dan Alaimo Ill Winds for S HBW6 ometimes, less is more. But in the cough-and-cold category, that depends on one’s perspective. From the scan data and industry research, it appears healthy. The top-line numbers are trending up for the overall category and its biggest segments. something, and they need it right away. Seasonal Sales Another factor in the category’s sales trends is the severity of the cough-cold season, which is difficult to predict for a chain in six states like Asheville, N.C.-based Ingles Markets. “It may hit different areas at different times,” says Dan Spears, director of HBC and GM. “So, we just try to be ready and respond as quickly as we can. We make sure we have an adequate supply on the shelf because, when sickness hits, people are going to buy something. If they can’t find the old pseudoephedrine product, they are going to buy something else for themselves, or for their children,” he continues. “The cough-and-cold category is a mainstay in the grocery store HBC aisle and will continue to be even in these difficult economic times,” notes a Western GM and HBC executive, who asked not to be identified. “But grocery retailers must be aggressive with respect to placement of new items, everyday retails, promotional activity to maintain For consumers, or someone in-store advising a consumer, it is a different matter. Various regulations have forced many products behind the pharmacy counter, and the drumfire of bad news has consumers worried about the remaining products. Besides the drug abuse questions raised with some ingredients, there’s a wide consensus that products still out on the shelves are not as effective as the old ones. Most chain retailers have implemented systems where cards are displayed in place of the products, and they are brought to the counter where they can be exchanged for the product after ID is presented and paperwork is signed. In another “less-is-more” scenario, private label over-the-counter cough-and-cold products are gaining in the recession as consumers realize they can pay less for, and perhaps buy more of, items that contain exactly the same active ingredients as national brands. So, even with its ups and downs, demand in the cough-and-cold category remains steady, mainly because when people get sick, they need to buy market share,” he adds. “In this economy, consumers need to save money. They will be more conscious of lower-priced alternatives, more willing to practice self-medication, and will be trying to stay healthier to avoid having to go to the doctor. This can be a very good opportunity for the grocery retailer if they are aggressive,” says the executive. Products with the ingredient pseudoephedrine (PSE) were the first to be pulled behind the counter, starting in late 2005. As a cough-cold remedy, pseudoephedrine is well regarded, but when it became known that it was used in the making of illegal methamphetamines, lawmakers and retailers reacted swiftly. Next came concerns about teen abuse of dextromethorphan (DXM), and then recommendations from the Food and Drug Administration (FDA) that young children not use cough and cold medicines. Most of the remaining products are made with phenylephrine (PE). This is an older ingredient that many consumers and pharmacy professionals are dissatisfied with. “The products don’t work as well, to put it simply,” says Jim Wisner, president of Libertyville, Ill.-based Wisner Marketing Group. Industry executives expect a better alternative to come along eventually, but this depends on the testing and approval process at the FDA. Instead of PSE product, many retailers put out cards with the package image for shoppers to take to the pharmacy counter. “Finally, everybody is starting to get the hang of that,” Wisner says. “The • Progressive Grocer’s Health Beauty Wellness • June/July 2009 www.progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - June/July 2009

Progressive Grocer - June/July 2009
Table of Contents
Nielsen’s Shelf Stoppers/ Spotlight: Cheese/Shredded Cheese
Market Snapshot: Sacramento-Stockton-Modesto, Calif.
Independents Report: The Advantages of Older Associates
Lempert Report: Food Experts Tackle the Economy
Industry Achievement: The Top 100 Women in Grocery
Multicultural Marketing: 2050 is Today
Retailer of the Year: Celebrating Kroger
2009 Deli/Bakery Operations Review: Shrink-Wrapped
Fresh Developments: Consumer Shifts Create New Complexities for Fresh Food Trading Partners
Produce: Brimming With Possibilities
Meat: Fired Up!
Store of the Month: Giant Eagle’s Express-Ohhh!
Cheese: Cooked Cheese and Other Spiritual Revelations
Beverage Alcohol: A Cup of Cheer
Frozen Foods: Frozen Vegetable Sales are Steaming
Real Estate: Bigger is not Always Better
Technology: At Your Service
Equipment Innovations
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - June/July 2009