OTC/Healthcare - March/April 2009

Addressing Allergies
By Elena Sullivan

Shoppers can find innovative allergy and cold relief products at CVS.

Retailers are giving consumers relief from allergies and money worries with their private label OTC allergy medicines.

It’s allergy time, and shoppers will soon, (if not already) flock to drugstores and mass merchandisers in search of allergy remedies. The popularity of private label OTC allergy remedies is evident with reports of rising PL sales. PL OTC drugs were up in sales in 2008, and analysts predict more increase in sales for 2009. According to research in “Nonprescription Drugs USA 2008: Market Analysis and Opportunities” from worldwide consulting and research firm Kline & Company, manufacturers’ sales of OTC drugs grew by 2.4% from $17.8 billion in 2007 to $18.3 billion in 2008.

“By contrasting the overall growth rates for OTCs with the growth rates for private-label products we can easily make the case that more Americans were seeking value and using private-label in 2008,” says Laura Mahecha, industry manager at Kline’s Healthcare practice. However, not all categories suffer from higher private-label growth, as some are able to maintain growth for branded products. “During tough economic times, consumers are willing to spend more for some brands they are loyal to and that offer good efficacy,” says Mahecha.

Recent data from Information Resources Inc. illustrate the rise in sales that have continued into 2009. Total U.S. - F/D/Mx (Supermarkets, Drugstores, and Mass Merchandise Outlets (excluding Wal-Mart)) sales from the latest 52 weeks ending Mar 22, 2009 for private label cold/allergy/sinus tablets/packets rose 21.7 percent to 623.1 million from a year ago and holds 24 percent of the entire category.

Last year the launch of over-the-counter Zyrtec provided many customers with allergy relief, and its private label equivalent, Cetirizine, gave shoppers a less expensive alternative.

Similar to Zyrtec OTC, PL Cetirizine had rapid increase in sales, accounting for approximately one-third of the OTC Cetirizine market’s patient volume during the spring 2008 allergy season. Zyrtec OTC accounted for the remaining two-thirds of the Cetirizine market’s patient volume, Nielsen and Wolters Kluwer reported. Approximately 30% to 50% of PL Cetirizine’s business came from patients who are new to the allergy market, according to Nielsen and Wolters Kluwer. Another 40% of PL Cetirizine’s patients switched from another medication — most notably, Private Label Loratidine, Claritin OTC, and Zyrtec OTC.

Like many OTC products, which typically lure consumers with lower prices, PL Cetirizine has offered patients cost savings. Patients who switched to PL Cetirizine from any prescription or OTC allergy medication saved $1.56, on average, according to Nielsen and Wolters Kluwer. Those switching from Zyrtec Rx saved an average of $6.19.

The price difference should be an incentive for shoppers because in general Zyrtec is quite expensive for an allergy medicine, and many people may not be able to afford the high price. Most retailers carry a store brand version of Zyrtec, and some carry Zyrtec for children. For example, Target, Minneapolis, MN, carries store brand all-day allergy Cetirizine Hydrochloride tablets, one variety available is a box of forty-five 10mg tablets, which cost $17.99. Zyrtec, located next to the PL is $24.99 for forty-five 10mg tablets. Target also offers a store brand equivalent to Zyrtec D, which includes pseudoephedrine hydrochloride, an extended release tablet containing 5mg of Cetirizine Hydrochloride and 120 mg of pseudoephedrine. The product has to be purchased at the pharmacy because it contains pseudoephedrine. While Zyrtec D costs &18.39 for a 24 -count box, Target’s brand is substantially less expensive at $13.79.

Wal-Mart, Bentonville, AR, features the same private label product. Among other sizes, shoppers can find boxes of forty-five 10mg tablets for $17.97 compared with $24.97 for Zyrtec.

At CVS, Woonsocket, RI, shoppers can find store brand Cetirizine Hydrochloride tablets that will definitely not lighten their wallets. For example, a 14-count pack of 10mg tablets of Zyrtec retails for $14.39, while a 14-count box of 10mg of the store brand variety costs $7.97! CVS also offers an item comparative to Zyrtec D.

Similar value can be found at Duane Reade, New York, NY, which offers PL Cetirizine Hydrochloride for $12.99 a 30ct box of 10mg tablets and the same count and mg of Zyrtec at $23.99.

Kmart, Hoffman Estates, IL, also offers Cetirizine Hydrochloride tablets at a lesser cost than the national brand. (A 14-count box of 10 mg tablets at $9.69, while the same count box of Zyrtec is $15.29. At press time the retailer had a buy-one get one free promotion for its American Fare store brand.)
According to reports Zyrtec’s primary competitor is national brand Claritin, however, as shoppers look to save money, private label remains a growing threat. With the number of price conscious consumers on the rise, and allergy season coming on full force, sales for store brand allergy medicine are sure to continue climbing.

Along with offering national brand-equivalent allergy relief, most retailers offer PL cold and flu medicine. CVS in particular offers a plethora of options. Two new items shoppers can find at CVS to help battle a cold or the flu are a cough suppressant and flu & severe cold daytime syrup. The CVS cough relief cough suppressant is alcohol free, contains Dextromethorphan HBR and comes in an orange flavor. The ingredients in CVS flu & Severe Cold Syrup are compared to Theraflu Warming Relief Daytime.

CVS recently debuted two new unique items that aren’t often found under PLs: an instant relief sinus wash neti pot kit, and a small bottle of sore throat spray. The sinus wash neti pot wash kit is an all-natural nasal wash system. According to the retailer, washing with a neti pot relieves nasal congestion, sinus infection, dry air post nasal drip, and rhinitus of pregnancy. The kit contains one neti pot and 30 saline packets.

The sore throat spray is an instant acting oral anesthetic and provides fast relief from sore throat pain, mouth and gum pain and pain associated with canker sores. The cherry-flavored spray compares to the active ingredient in Chloraseptic.

Cure for Children

Children suffer from allergies, sometimes even more than adults, many retailers offer allergy remedies for the little ones, making life more comfortable for children…and parents. For example, some retailers now carry children’s Cetirizine Hydrochloride and children’s Loratidine.

Shoppers can find store brand Cetirizine Hydrochloride and Loratadine for children, both at competitive prices at retailers including Target, Kmart and Wal-Mart. For example, Wal-Mart offers a 1 mg/ml Cetirizine Hydrochloride grape-flavored oral solution for children 2yrs and older under its Equate store brand priced at $7.83, while the Zyrtec brand is $9.74. In addition, Wal-Mart features an item comparable to Claritin’s children’s formula but the Equate line sells for $5.83 for a 4oz bottle, while Claritin’s is $9.23.

Homeopathic Remedies

A new item recently seen in the health care aisles is the store brand equivalent to Zicam. The item contains Zincum Oxydatum, Zincum Gluconicum and some retailers carry the product with the ingredient Sambucus Nigra. Retailers including CVS, Kmart and Target offer store brand versions of the national brand Zicam. The CVS version includes Sambucus Nigra, while Target’s store brand omits it.

Although there are conflicting reports concerning the benefits and side effects of the homeopathic remedy, some people still claim it is effective. Some studies show that zinc nasal sprays help cut a cold’s severity and duration. Zinc sprays may coat the cold virus and prevent it from attaching to nasal cells where they enter the body. But other studies show that zinc is no more effective than a placebo.

It is important to note that despite claims that the ingredients in Zicam and its store brand counterpart are effective, there are many complaints of side effects, which include the loss of smell or taste after using the Zicam nasal spray.

Despite controversial reports, retailers continue to roll out PL homeopathic health care products that are provide less expensive alternatives to national brands such as Zicam.

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