Coppertone, Dr. Scholl’s On The Block As Bayer Narrows Consumer Health Focus
This article was originally published in The Pink Sheet & The Rose Sheet
Bayer will sell Coppertone sunscreen and Dr. Scholl’s foot care brands to focus on growing its core consumer health brands. Although the plan represents ‘failure” in turning around sales for both brands, it is a ‘sensible’ move, say analysts.
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Bayer follows through on plans to divest Dr. Scholl’s after selling Coppertone business in May to focus on consumer lines such as Aleve oral analgesics, Claritin allergy treatments and Bayer Aspirin. Private equity firm Yellow Wood Partners creating stand-alone company to operate Dr. Scholl's.
Notwithstanding a particularly difficult 2018, Bayer Consumer Health still has "one of the best brand portfolios," and can continue to compete with the market leaders, says CEO Werner Baumann. Consumer Health struggled particularly in the US and Europe in the 12 months, with the majority of its leading brands recording poor performances.
Bayer's Consumer Health chief Heiko Schipper hopes a focus on innovation and a leaner portfolio will help return business to mid-single-digit growth by 2022. German firm has identified North American business as the "key area to fix."