Chattem Icy Hot ads
This article was originally published in The Tan Sheet
Executive Summary
Q3 launch of Icy Hot Back Patch will be supported with $12 mil. TV, print ad campaign featuring Los Angeles Lakers basketball star Shaquille O'Neal; initiative is expected to spur topical analgesic sales growth in second half, President & COO Alec Taylor says during March 20 analysts call. Chattem has said the line extension could generate annual sales of $6 mil.-$8 mil. (1"The Tan Sheet" Jan. 27, 2003, p. 6). Firm's Q1 revenue jumps 20.7% to $58.4 mil., bolstered by 38% rise in Selsun Blue sales, along with double-digit gains by Icy Hot, pHisoderm, Garlique, Chattanooga, Tenn.-based firm reports. International revenues leap 89% in first quarter, "led by sales of Selsun Blue and the continuing strength of Gold Bond in Canada." Chattem's net income reached $4.6 mil. versus a loss of $6.5 mil. in year-ago period...
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Chattem and Shaq
Chattanooga, Tenn.-based firm will ship the new Icy Hot Sleeve in April 2004, firm announces Dec. 19. The patent-pending "flexible material product...uses mild compression to deliver Icy Hot medicine to flexible joints such as knees, elbows, wrists and ankles" and will come in two sizes to accommodate the different joints. NBA star Shaquille O'Neal has agreed to participate in two new commercials for the Icy Hot extension. Chattem's Icy Hot business has been up 25% since the firm signed O'Neal to promote the line (1"The Tan Sheet" March 24, 2003, In Brief). Retailer acceptance of the Icy Hot extension has been "excellent," the firm adds. During a same-day call, CEO Zan Guerry touted the sleeve as a potential "home run ball...which means it can reach $15 mil. or more in sales"...
Chattem Q2
Gross margin based on total revenues reached 72.2%, due in large part to completion of the integration of Selsun Blue manufacturing into Chattem's facilities, CEO Zan Guerry says during June 20 analysts call. For second quarter ended May 31, Chattem recorded an 8% increase in total revenues to $63.6 mil. and a 33% jump in net income to $7.5 mil. Guerry maintained the imminent launch of Icy Hot Back Patch, coupled with the introduction of a new topical analgesic in Q1 2004, should substantially boost sales for the firm (1"The Tan Sheet" March 24, 2003, In Brief). Q2 topical analgesic sales were down year-over-year, Guerry noted, due to success of competitor P&G's ThermaCare heat wraps...
Chattem ephedra
Roughly $2 mil. to $2.5 mil. in ephedra-containing Dexatrim remained on retail shelves as of March, although all such products "should be off shelves by May," Chattem tells investors April 3 at Banc of America Securities Consumer Conference. Chattanooga, Tenn.-based firm took $750,000 hit in Q1 to replace product with new formulation, execs add. Despite charge, first quarter revenue reached $58.4 mil., a 20.7% increase over year-ago period, attributable in part to growing Selsun Blue sales (1"The Tan Sheet" March 24, 2003, In Brief)...