Amazon OTCs Likely A Worry For Retailers, A Remedy For Perrigo
This article was originally published in The Rose Sheet
Amazon introduced Basic Care line of cough, cold, allergy and digestive treatment OTCs developed in a partnership with Perrigo. The range could be a major threat to store brand and private label OTCs, though success may depend on whether consumers wait for Amazon deliveries or shop at stores.
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OTC private label giant said gaining another grocery chain as an infant formula customer was a key sales driver in the 2019 Q4, with nutrition sales up 21% to account for 17% of Americas consumer health sales growth. The firm plans to re-enter the broader VMS space, but infant formula helped its global consumer health net sales reach $1.1bn in the October-December period.
Perrigo's Turnaround Tools: 'National Brand,' Novel NRTs, CBD And Natural Products, Sponsoring OTC Switches
Following investor day conference, market analysts gave Perrigo points for an ambitious three-year plan while also noting the degree of difficulty it faces in succeeding. Other changes planned to stem slump sales and earnings slump include potentially getting into CBD supplement space and getting back into VMS manufacturing after leaving the sector in one of several moves since 2015 intended to help drive net income and improve its margin.
The mega-retailer has been quietly growing its selection of private-label and Amazon-exclusive brands, recently adding Fast Beauty Co., which targets affordable, fast-acting masks to consumers on the go.