J&J’s Skin-Care Biz During COVID Is ‘Tale of Two Cities’

Johnson & Johnson skin health includes hard-hit products and products that have seen double-digit sales growth during the pandemic, worldwide chairman of Consumer Health Thibaut Mongon said at the Barclays Global Consumer Staples Conference. He went on to highlight launches that are reinforcing J&J’s lead in therapeutic skin care and reflecting its sustainability push.

Johnson & Johnson’s skin-care business in the COVID-19 era represents “a tale of two cities,” according to Executive VP & Worldwide Chairman of Consumer Health Thibaut Mongon.

“On one hand, you see categories that have been negatively impacted by the fact that some usage occasions, like getting ready for work or getting ready for school, disappeared overnight with lockdowns happening around the world,” he said on 8 September at the (virtual) Barclays Global Consumer Staples Conference.

Stunted segments include sun care, where J&J competes with offerings from its Neutrogena and Aveeno brands.

Other categories, such as body wash and body lotion, are posting solid growth, “really showing the underlying strength of our iconic brands,” Mongon said.

Overall, J&J’s skin care sales fell almost 6% for the first six months of 2020, with a roughly 16% decline recorded in the second quarter. Skin health and beauty products sustained the biggest COVID hits within the firm’s Consumer Health division for the period. (Also see "J&J’s US OTC Sales Hold Firm As COVID Impact Begins To Bite" - HBW Insight, 23 Jul, 2020.)

Aveeno Restorative Skin Therapy aims to address the skin needs of individuals undergoing cancer treatments.

J&J is counting on growth from innovation that “leverage[s] the full power of the J&J enterprise to bring to the market products and solutions that really make a difference.”

Mongon cited Aveeno Restorative Skin Therapy as an example. The three-product line, rolling out in the US in October, is formulated to meet the skin needs of individuals undergoing cancer treatments. The range was a collaborative effort between J&J’s consumer health and pharmaceutical units in partnership with leading derma oncologists.

“This is really a line that takes care of the compromised skin of adult oncology patients, reinforcing our leadership in therapeutic skin care and, again, leveraging the full power of Johnson & Johnson to bring differentiated innovation to the market,” Mongon said.

The collection includes Oat Repairing Cream, which contains prebiotic oat, aloe and pro-vitamin B5 and is free of parabens, fragrance, phthalates and steroids. Sulfate-Free Body Wash and Itch Relief Balm round out the line. 

In a study of adults with sensitive, distressed skin who were undergoing oncology treatment, 87% said the products provide long-lasting comfort and leave dry skin looking visibly healthier, according to the company.

Mongon also touted the company’s sustainable beauty, noting the new Neutrogena Skin Balancing Wipe, “which is our first 100% plant-based wipe, which is fully home compostable,” he said.

The wipes, which contain pro-vitamin B5, retail for $6.27 for 15 pre-moistened towelettes.

J&J's First %100 Plant-Based Wipe

Starting in 2021, J&J will begin transitioning all its makeup remover wipes, under both Neutrogena and Aveeno, to the 100% plant-based fabric, a J&J spokesperson noted in a 9 September email.

Skin Balancing Wipes came out of J&J’s major environment sustainability push, noted Mongon. “We have decided to really accelerate our efforts in sustainability by committing an extra $800m investment in the next 10 years to make our products and solutions more sustainable,” he said.

SKU Rationalization On Track

Moving forward, Mongon said J&J Consumer Health is focused on spurring its skin health and self-care businesses. The latter includes OTC drugs Tylenol (acetaminophen), Motrin (ibuprofen), Zyrtec (cetirizine) and Benadryl (diphenhydramine).

A spike in demand for Tylenol analgesics during the pandemic increased the firm’s US OTC sales by almost 30% in the second quarter, as the firm committed to around-the-clock production. (Also see "J&J Producing Tylenol ‘24-7’ As US OTC Sales Jump 35% On Pandemic-Driven Stockpiling" - HBW Insight, 14 Apr, 2020.)

Worldwide consumer health sales declined 7% to $3.3bn in the second quarter, dragged down by a 13% slump in international sales.

The third leg of J&J Consumer Health – the specialty business comprising Listerine mouthwash, Band-Aid, Johnson’s and OGX hair care – already has a “very strong” leadership position and continues to benefit from a broad SKU rationalization effort the firm launched early this year, Mongon said.

The executive said the company is on track with the rationalization, with 80% completed by June. (Also see "J&J International Baby, Beauty Lines Could Lead Trimming 10% Of Consumer Portfolio" - HBW Insight, 22 Jan, 2020.)

“While we expect this program of simplification of our portfolio to weigh a little bit on our top line growth in the back half of the year and first half of 2021, we already see a number of benefits, one of them being the improvement in productivity by SKU of 11%,” he said.

J&J has said it plans to cut 10% of consumer health SKUs mainly in the baby and beauty segments outside the US.