Tylenol Relieves Pain For J&J Consumer As Baby Care Relaunch Loses Steam
Tylenol brand boosts J&J US OTC sales 8.4% to $477m, helping balance a 24.1% decline in baby care sales due to restocking reformulated Johnson’s Baby line in 2018, mostly in the US. Firm reports consumer health sales in the US were up 1.7% to $1.39bn.
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J&J plans to cut 10% of its consumer health portfolio, with most divestitures in the baby and beauty care segments outside the US. It plans to focus on growing “stronghold” categories of skin health and self care, including Aveeno and Tylenol.
Recall announcement doesn't mention litigation J&JU faces in multiple states alleging use of Johnson's Baby Powder causes cancer due from talc in formulation. But firm's sensitivity to consumer complaints or adverse event reports linked to brand is clear with talc-related litigation as backdrop.
Company leadership has said that Vogue International – the maker of OGX and Maui Moisture hair care that J&J acquired in 2016 – would serve as a model for innovations across other brands. Strategy appears to be paying off, contributing to gains in J&J's Consumer division, which also benefited in the second quarter from Zyrtec allergy treatment and children’s Tylenol and Motrin.