Let's not beat about the bush: the swine flu outbreak is great news for those who make and sell winter remedies. If health experts' predictions are correct then a lot of people are going to get sick this winter and businesses will turn a significant profit selling things to help them feel better.
While swine flu has resulted in deaths, the majority of those who contract it simply spend up to 10 days suffering from fever, aches and pains, sore throat, headache and runny nose just the symptoms winter remedies are designed to relieve.
"There is normally a downturn in sales of cold and flu remedies in the summer, when retailers turn their attention to allergy relief, but with the summer swine flu pandemic we have seen constant demand," says David Hughes, category manager and health & beauty distributor at DCS Europe.
And this has certainly been reflected in sales figures: value sales of winter remedies rose 13.2% year-on-year to £267.6m, while volume increased 9.1% [TNS 52w/e 9 August 2009].
"Value increases have exceeded volume over this period, due to a combination of price increases and shoppers trading up to premium products," says Tim Nancholas, consumer insight director at TNS. "Trading up has been the dominant factor, as the swine flu outbreak has prompted people to treat cold and flu more seriously than they might otherwise have done. Consequently, they are purchasing maximum-strength products rather than standard ones."
The big successes over the past year have been decongestants and cold treatments, which have increased 19.5% and 17% in value and 9.4% and 8% in volume respectively. The only sub-sector to decline in volume was cough liquids, which fell 2.5%, although value increased 2.6% to £66.2m.
Sainsbury's reports sales of cold remedies were up 60% year-on-year at the end of July. The products that showed the biggest increase in sales were painkillers particularly ibuprofen, which can reduce temperature and vitamins used to boost immunity, according to a spokesman. "Thermometers also saw a huge increase and suppliers struggled to keep everybody in stock," he adds.
Fears over the spread of swine flu also prompted a surge in sale of hand wipes and sanitisers.
Value sales of Fisherman's Friend products in June, July and August this year were almost 25% ahead of the same three months in 2008, according to brand owner Lofthouse of Fleetwood.
By August the number of new swine flu cases had begun to slow but, as happens with seasonal flu, the autumn and winter months are expected to bring a new phase. The Department of Health predicts 30% of the UK population will have experienced swine flu symptoms by mid-May, and at the peak of the winter outbreak 6.5% of people could be suffering simultaneously.
Products that deal with a range of symptoms have given the strongest performances over the past year compared with those that treat a single symptom, according to GlaxoSmithKline, producer of the Beechams and Nurses brands. It's a trend GSK aims to make the most of with Beechams Ultra All In One, launched last month.
"This is the product we would recommend to a person seeking relief from swine flu symptoms," says a spokeswoman. "We must stress, however, that such products are not a cure for swine flu and that they only treat the symptoms."
Available in packs of capsules and as a hot lemon drink (rsp: £4.88 for 16 capsules or 10 sachets), All In One is designed to offer relief from headache, blocked nose, sore throat, cough and fever. GSK is supporting the launch with a £6m spend that will include TV ads and in-store activity.
Value sales of Beechams, the cold and flu remedy market's second-biggest brand, rose 10.7% to £35.6m while sales of biggest-seller Lemsip increased 5.4% to £52m [Nielsen 52w/e 8 August 2009].
Sainsbury's says it plans to stock winter remedies alongside related products. "Cold and flu remedies are normally merchandised very close to vitamins anyway, and we are also trying to site antibacterial hand gels closer to them," says a spokesman. "There will be promotional space over the winter where they will be sited together."
The flu outbreak presents a particular opportunity for c-stores and the impulse market, says Lemsip owner Reckitt Benckiser, quoting Nielsen research that suggests only one in 10 consumers stock up on healthcare products in anticipation of the possibility of being ill.
"The advice from GPs is to stay at home when suffering flu symptoms, so consumers will be more likely to pop into their local store for OTC medicines," says Reckitt Benckiser trade marketing controller Steve Watson. "Retailers need to ensure OTC medicines are in a more impulsive location. These products often have poor consumer visibility in-store, which can severely impact sales. Independents should learn from the multiples and, if possible, use front-of-counter space for OTC medicine."
Last month the company launched Strepsils in 'handy tube' packaging designed for use on front-of-counter displays.
The summer outbreak caught retailers by surprise when it came to merchandising, DCS claims, as summer plans had already been implemented. "However, we are determined to be ready for the feared second wave," says Hughes. "To this end we are suggesting our retailer customers go off-shelf using display stands to put displays in front of customers, undertake a stock build and ensure retail fixtures are fully stocked in readiness."
No one knows how bad swine flu is going to get. The only thing we can predict is that, for those that are ready, the opportunities are not to be sneezed at.
Focus On Winter Remedies
While swine flu has resulted in deaths, the majority of those who contract it simply spend up to 10 days suffering from fever, aches and pains, sore throat, headache and runny nose just the symptoms winter remedies are designed to relieve.
"There is normally a downturn in sales of cold and flu remedies in the summer, when retailers turn their attention to allergy relief, but with the summer swine flu pandemic we have seen constant demand," says David Hughes, category manager and health & beauty distributor at DCS Europe.
And this has certainly been reflected in sales figures: value sales of winter remedies rose 13.2% year-on-year to £267.6m, while volume increased 9.1% [TNS 52w/e 9 August 2009].
"Value increases have exceeded volume over this period, due to a combination of price increases and shoppers trading up to premium products," says Tim Nancholas, consumer insight director at TNS. "Trading up has been the dominant factor, as the swine flu outbreak has prompted people to treat cold and flu more seriously than they might otherwise have done. Consequently, they are purchasing maximum-strength products rather than standard ones."
The big successes over the past year have been decongestants and cold treatments, which have increased 19.5% and 17% in value and 9.4% and 8% in volume respectively. The only sub-sector to decline in volume was cough liquids, which fell 2.5%, although value increased 2.6% to £66.2m.
Sainsbury's reports sales of cold remedies were up 60% year-on-year at the end of July. The products that showed the biggest increase in sales were painkillers particularly ibuprofen, which can reduce temperature and vitamins used to boost immunity, according to a spokesman. "Thermometers also saw a huge increase and suppliers struggled to keep everybody in stock," he adds.
Fears over the spread of swine flu also prompted a surge in sale of hand wipes and sanitisers.
Value sales of Fisherman's Friend products in June, July and August this year were almost 25% ahead of the same three months in 2008, according to brand owner Lofthouse of Fleetwood.
By August the number of new swine flu cases had begun to slow but, as happens with seasonal flu, the autumn and winter months are expected to bring a new phase. The Department of Health predicts 30% of the UK population will have experienced swine flu symptoms by mid-May, and at the peak of the winter outbreak 6.5% of people could be suffering simultaneously.
Products that deal with a range of symptoms have given the strongest performances over the past year compared with those that treat a single symptom, according to GlaxoSmithKline, producer of the Beechams and Nurses brands. It's a trend GSK aims to make the most of with Beechams Ultra All In One, launched last month.
"This is the product we would recommend to a person seeking relief from swine flu symptoms," says a spokeswoman. "We must stress, however, that such products are not a cure for swine flu and that they only treat the symptoms."
Available in packs of capsules and as a hot lemon drink (rsp: £4.88 for 16 capsules or 10 sachets), All In One is designed to offer relief from headache, blocked nose, sore throat, cough and fever. GSK is supporting the launch with a £6m spend that will include TV ads and in-store activity.
Value sales of Beechams, the cold and flu remedy market's second-biggest brand, rose 10.7% to £35.6m while sales of biggest-seller Lemsip increased 5.4% to £52m [Nielsen 52w/e 8 August 2009].
Sainsbury's says it plans to stock winter remedies alongside related products. "Cold and flu remedies are normally merchandised very close to vitamins anyway, and we are also trying to site antibacterial hand gels closer to them," says a spokesman. "There will be promotional space over the winter where they will be sited together."
The flu outbreak presents a particular opportunity for c-stores and the impulse market, says Lemsip owner Reckitt Benckiser, quoting Nielsen research that suggests only one in 10 consumers stock up on healthcare products in anticipation of the possibility of being ill.
"The advice from GPs is to stay at home when suffering flu symptoms, so consumers will be more likely to pop into their local store for OTC medicines," says Reckitt Benckiser trade marketing controller Steve Watson. "Retailers need to ensure OTC medicines are in a more impulsive location. These products often have poor consumer visibility in-store, which can severely impact sales. Independents should learn from the multiples and, if possible, use front-of-counter space for OTC medicine."
Last month the company launched Strepsils in 'handy tube' packaging designed for use on front-of-counter displays.
The summer outbreak caught retailers by surprise when it came to merchandising, DCS claims, as summer plans had already been implemented. "However, we are determined to be ready for the feared second wave," says Hughes. "To this end we are suggesting our retailer customers go off-shelf using display stands to put displays in front of customers, undertake a stock build and ensure retail fixtures are fully stocked in readiness."
No one knows how bad swine flu is going to get. The only thing we can predict is that, for those that are ready, the opportunities are not to be sneezed at.
Focus On Winter Remedies
No comments yet