Progressive Grocer - October 2009 - (Page 122)

Nonfoods Brushing up on Sales New products from major manufacturers may generate healthy sales in the oral care aisle, but private label continues to provide stiff competition. By D. Gail Fleenor ruise the oral care aisle these days and you will notice plenty of double-duty products such as toothpaste that whitens teeth and freshens breath, and mouthwash that freshens breath and whitens teeth. Multi-use products are convenient for many consumers and cost-effective for others who are counting pennies. However, this is not an easy time for major manufacturers, as sales of private label oral care products continue to erode margins of national brands. Oral care food, drug store and mass merchandise (FDMx) category sales have been flat over the past five years, increasing from $3.1 billion in 2003 to only $3.3 billion in 2008, according to Mintel, a Chicago-based research firm. While the recession exerted its influence on the category, Mintel’s study “Oral Hygiene — U.S. — June 2009” reports that the category has deeper troubles than the economy. “A dearth of product innovations in 2008 and a slew of private label offerings from drug stores and mass merchants have slowed sales and posed threats to brand leaders,” the report notes. According to Mintel’s report, last year, private label toothpaste sales rose 24 percent, store-brand toothbrush sales increased 8.2 percent, private label mouthwash sales rose 11.7 percent and store-brand dental floss/accessories/tools sales increased 14.9 percent. Segment Leaders Shine Whitening Plus Scope and Regular Crest toothpastes held the top two spots in sales in 2008 (Information Resources, Inc., Total U.S. FDMx ending Dec. 28, 2008, excluding Wal-Mart). Colgate products were close behind in sales. “Price is driving the subcategory of toothpaste at Food City,” says Kimberly Fultz, category manager, HBW, for Abingdon, Va.-based K-VA-T Food Stores, Inc., parent company of Food City. “Crest Baking Soda Whitening Fresh Mint and Crest Classic Anti-Cavity are our top two sellers, but these 3.5-ounce products are what we call ‘cheater packs’ — smaller size and price.” Fultz notes there are currently five items she considers “price” brands in the top-10-selling toothpastes at Food City. In addition to the two Crest varieties/sizes mentioned, these include two different flavors of Aim and one Ultra Brite. “We have premium toothpastes in the top 10 as well, with Colgate Total Plus and Crest Whitening being our bestselling premium toothpastes,” Fultz notes. Six of Food City’s top-10-selling toothpastes are whitening Procter & Gamble’s new “Outlast” family of oral care products encompasses Scope mouthwash, Crest toothpaste and Oral-B Floss Picks. Looking at specific segments within the oral care category highlights some interesting trends. In the toothpaste segment, Procter & Gamble’s (P&G’s) Crest• Progressive Grocer • October 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - October 2009

Progressive Grocer - October 2009