Mentholatum Oxy Acquisition Provides Entry Into U.S. Skin Care Market
This article was originally published in The Rose Sheet
Executive Summary
Mentholatum will leverage technologies used in its internationally marketed skin care products to launch new innovations under the Oxy anti-acne brand, the firm said. The Rohto Pharmaceutical subsidiary acquired the line from GlaxoSmithKline Dec. 10
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Mentholatum will leverage technologies used in its internationally marketed skin care products to launch new innovations under the Oxy anti-acne brand, the firm said. The Rohto Pharmaceutical subsidiary acquired the line from GlaxoSmithKline Dec. 10. Japan-based Rohto markets a number of skin care, sun care and anti-acne products under the Mentholatum label overseas. The Oxy agreement marks the firm's entry into the North American skin care market, according to the company. The Oxy line, which includes cleansing pads, acne spot treatments and acne washes, "is a strong brand with immediate consumer recognition, 90% total brand awareness among the U.S. teen market, and a great tag line," the firm stated in a Dec. 13 press release announcing the acquisition. The brand is known for ads featuring the slogan, "Oxycute'em!" Mentholatum currently is evaluating possible changes to Oxy product formulas, packaging and advertising, and expects to unveil a new marketing campaign in the third quarter, the firm noted. The company will begin marketing Oxy immediately, although GSK will distribute the brand on a transitional basis until mid-January, according to Mentholatum. SmithKline Beecham acquired Oxy in 1986, prior to its merger with Glaxo Wellcome. The line has struggled recently in the face of competition from brands like Boots' Clearasil and Johnson & Johnson's Neutrogena . Oxy sales declined 16% to $17.8 mil. for the 52 weeks ended Oct. 31 in food, drug and mass retailers excluding Wal-Mart, according to Information Resources, Inc. The brand has taken a back seat to GSK's prescription pharmaceuticals business recently, but renewed marketing support from Mentholatum is likely to position Oxy to better compete with Clearasil, which has flourished since its acquisition by Boots in 2000. Sales of the market-leading brand grew 10.4% to $28.5 mil. for the 52 weeks ended Oct. 31, IRI data show. Mentholatum's international personal care portfolio comprises offerings like Acnes Medicated UV Clear Milk, SunPlay SuperBlock and Medicated Shaving Lotion. In the U.S., the company markets the Natural Ice and Softlips lip care products, as well as ointment, pain and eye care items. |