Independent OTC Companies

Independent OTC Companies Poised for Rapid Growth

The U.S. OTC market is characterized lately by slow, steady growth of anywhere from 1% to 3% annually.  There are small, independent companies, however, that have recently recorded double-digit sales growth.  These companies often outpace market growth by offering unique brands, uncommon and often natural ingredients, focused distribution, and a strong online presence, frequently combined with compelling digital marketing that resonates with today’s OTC consumers.  Identifying these market disruptors and learning the factors that make them resonate with consumers and retailers is crucial.Continue reading

Cannabis is coming — what are the implications for the U.S. consumer products markets?

As of today, every province in Canada and eight U.S. states have legalized cannabis for both medical and recreational use.  Other U.S. states are expected to follow suit in the short-term, seeing value in its therapeutic effects as well as tax revenues from the legal sale of such products.  In fact, New Jersey’s Governor Phil Murphy announced he may sign a bill to legalize cannabis use by the end of October if state lawmakers can agree on an acceptable tax rate, ranging anywhere from 10% to 25%.  The Trump administration announced last week that it intends to pursue legislation lifting the federal ban on cannabis after the mid-term election on November 6, 2018 and some predict this could happen as soon as Spring 2019.Continue reading

Spotlight on Fast-Growing Irwin Naturals Sales Up 440.0% Since 2016

Spotlight on Fast-Growing Irwin Naturals Sales Up 440.0% Since 2016

Kline will be publishing the 3rd edition of its Natural OTCs: Impact of Non-Drug Products on the U.S. OTC Market study later this month. One of the fastest-growing companies that emerged from the research is Irwin Naturals, based in Los Angeles, California. Founded in 1994, Irwin Naturals is a producer of soft gel-based herbal formulas sold in more than 90,000 retail outlets and online. The company markets a series of targeted herbal formulas in different lines for men, women, weight management, performance, and joint, heart, brain, and mood and energy support.

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Johnson & Johnson’s Acquisition of Zarbee’s Naturals Latest Example of Large OTC Players Seeking Growth from Natural OTCs

Johnson & Johnson’s Acquisition of Zarbee’s Naturals Latest Example of Large OTC Players Seeking Growth from Natural OTCs

At the end of July 2018, Johnson & Johnson announced it has entered a definitive agreement to acquire Zarbee’s Naturals for an undisclosed sum. Zarbee’s is a privately-held company that was started by pediatrician Dr. Zak Zarbock in 2008 with the mission of creating naturally sourced cough, cold, and immunity products for children and adults. Zarbee’s first product was a honey-based kids’ cough syrup made with vitamin C and zinc and free of alcohol, drugs, and artificial flavors. Over the last decade, Zarbee’s Naturals has grown into a broad-based health and wellness brand. This brand and others like it have disrupted the cough and cold category, where traditional marketers are struggling to see real sales growth.

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Consumers’ perception of sleep aids: OTCs, natural products, and devices

Consumers’ perception of sleep aids: OTCs, natural products, and devices

The number of consumers suffering from sleeping disorders continues to grow, and quality sleep is a major issue for many Americans.

  • According to the National Center for Sleep Disorders Research at the National Institutes of Health, about 30% to 40% of adults have some symptoms of insomnia within a given year, and about 10% to 15% of adults claim to have chronic insomnia.
  • People over the age of 65 years are 1.5 times more likely to suffer from insomnia as compared to younger people.
  • According to American Sleep Association, every year, approximately 40 million Americans, if not more, are afflicted by chronic long-term sleep disorders.
  • Insomnia is considered a serious ailment, as it can lead to several other health-related problems, such as depression, as well as heart disease.

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Strong cold and flu season drives OTC upper respiratory market up

Strong cold and flu season drives OTC upper respiratory market up

The second half of 2017 saw a significantly higher incidence of cold and flu which helped propel sales of OTC cold and sinus medications, cough syrups, cough drops, and nasal decongestants.  The OTC cold and sinus market grew 4.5% from 2016 to 2017, which is nearly three times the growth rate experienced in 2016.  Not only was the severity of the cold and flu season greater, but also the actual strains of flu experienced in 2017 mutated from the time the flu vaccines were developed and produced, making flu vaccines only about 15% effective.Continue reading

What Spanish Teachers from the Erasmus+ Program Made Me Realize

What Spanish Teachers from the Erasmus+ Program Made Me Realize about our Company Once Again

This year, Kline has volunteered and entered the Erasmus+ program. The aim of the program is to create synergies between education and business, improve the quality of the teaching/learning processes. Therefore, last month Kline’s Prague office welcomed two teachers of marketing from Spain for direct observation of our business and how various departments work at Kline.

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Online sunscreen sold

Socially responsible and natural brands are among the top sunscreens sold online, according to Kline’s Amalgam tool

Kline’s digital tracking tool Amalgam regularly scans online retailers and ranks brands monthly based on a proprietary algorithm that takes customer ratings, reviews, prevalence, and duration into account. In May 2018, Amalgam’s top ranked sunscreen brands include Thinksport (#2) and Thinkbaby (#3) from Thinksocial, a company that is focused on social responsibility and using natural ingredients in its brands. Thinksport sunscreens contain zinc oxide 20% with SPF 50+ and are touted as the first sunscreens to pass Whole Foods Premium Care requirements and are rated #1 by the Environmental Working Group. Continue reading

OTC Market Forces Impact Industry Growth

Internal and External OTC Market Forces Impact Industry Growth

The U.S. OTC market overall experienced 2.0% growth in 2017 with upper respiratory and topical products classes posting higher than average gains, according to Kline’s Nonprescription Drugs USA 2017 annual market study. “A strong cold and flu season in both Q1 and Q4 of 2017 drove the OTC cold and sinus market up 4.5% from 2016 levels,” says Laura Mahecha, Industry Manager for Kline’s Healthcare Practice. The topical products class posted 3.6% growth in 2017, driven by strong gains for OTC topical analgesics.Continue reading