J&J Extends Leading Skin-Care Brands With Kits Featuring Cytomimic

Capitalizing on momentum in its skin-care business, Johnson & Johnson is introducing new Cytomimic technology to its Aveeno , Neutrogena and RoC brands with dual-product kits for anti-aging needs around the clock.

Cytomimic "uses essential minerals to generate an imperceptible flow of energy that travels through the surface layers of the skin to stimulate the skin's renewal process," Chairman and CEO William C. Weldon asserted during the firm's fourth-quarter and year-end earnings call Jan. 26.

The proprietary technology "builds on our heritage of science-based innovation," he said.

J&J filed a patent application in December for its Cytomimic technology, which will be featured in new lines from Aveeno ( Ageless Vitality ), Neutrogena ( Clinical ) and RoC ( Brilliance ) and sold at mass retailers.

The lines contain kits for daytime, nighttime and eye-area use, and each kit consists of two complementary products.

For example, J&J bills Aveeno Ageless Vitality as a two-step "elasticity recharging system" available in Day SPF 30, Night and Eye variations.

The Day SPF 30 regimen "restores a more youthful, awakened look" with blackberry leaf extract and dill. Consumers are instructed to "gently apply the Biomineral Concentrate to your most troublesome areas of aging" and then to "massage the [Rejuvenating Day Moisturizer] over entire face and neck until fully absorbed."

The firm claims 100 percent of women in a trial of Day SPF 30 saw "improved skin vitality with firmer, smoother skin texture, fewer lines or wrinkles or diminished age spots" in four weeks.

Users "will begin to see the rejuvenating power of this breakthrough treatment system quickly and will experience even better results over time," according to the brand's Web site.

The Ageless Vitality Night system "mak[es] your skin appear younger and visibly vitalized" while the Eye kit "mak[es] your eyes appear younger and more awake." Like Day SPF 30, both Night and Eye contain a targeted biomineral concentrate for "trouble areas" and a more liberally applied hydrating treatment.

Products have a listed release date of Jan. 29 and will retail for $44.99 each, according to Walgreens.com.

Aveeno has been a success story for J&J since the firm purchased it from SC Johnson in 1999. The brand reached $500 million in sales in 2009, growing at a compounded annual rate of 23 percent - much of its growth coming from expansion into new product categories, Weldon said.

Aveeno sales were up 12 percent in 2009, according to J&J.

The brand's Nourish+ hair-care line was a notable addition last year; a complementary hair-styling line launched recently.

Aveeno introduced its first anti-aging skin-care line with Positively Ageless in early 2007 (¹ (Also see "J&J Remodels Web Sites To Offer Consumers Science; Summer Items Debut" - HBW Insight, 2 Jul, 2007.)).

Neutrogena, RoC Offerings Use Similar Model

Cytomimic-based Neutrogena Clinical offers a product mix similar to Aveeno's Ageless Vitality, with kits for use during the day, the night and around the eyes, each featuring the ion2complex serum and a specially formulated moisturizer.

Neutrogena describes the kits online as "breakthrough two-part system[s] containing essential ion-mineral conductors that, when activated by the companion moisturizer, create a positive electric micro-current - promoting healthy collagen levels and resilient, more youthful-looking skin."

Neutrogena Clinical products will retail for $39.99 starting Jan. 29, while a starter set for $49.99 includes the ion2complex serum plus SPF 30 and eye activating creams.

RoC's Brilliance line features the brand's E-Pulse activating serum with micro-current technology, packaged with a cream in its Day and Night Rejuvenating systems and Eye Beautifier kit, each priced at $49.99 at Walgreens.com.

Walgreens cites clinical testing in which 97 percent of women using the product demonstrated "fast" results.

In 2008, RoC expanded its anti-aging portfolio with its retinol-containing Multi-Correxion line of cleanser, night and eye treatments, said to "give back years to the look and feel of skin" (² (Also see "J&J Fall Skin Care Tackles Acne, Anti-Aging Concerns" - HBW Insight, 22 Sep, 2008.)).

J&J Consumer Products Led By Skin Care

Aveeno, Neutrogena and RoC drove Q4 sales in skin care, which was a key performer for the firm.

Sales in the category rose 10.2 percent in the U.S. and 14.2 percent internationally on a reported basis for the quarter, though the impact of foreign currency held growth to 8.1 percent on an operational basis.

Global skin-care sales were up 2.5 percent to $3.5 billion for the year.

Consumer product sales - which account for 26 percent of the firm's total revenue - slipped 1.6 percent in 2009 to $15.8 billion, compared with the prior year.

Excluding the impact of currency valuations, the division advanced 2 percent for the year.

In addition to the contributions of Neutrogena and Aveeno, J&J's Dabao skin-care line in China helped propel consumer product sales, according to the company.

Oral-care sales were down 3.4 percent to $1.6 billion versus the year before; J&J attributes the decline to lower toothbrush sales in the U.S. and overall category softness, though Listerine sales did increase 7 percent worldwide.

Propelled by sales in its medical devices and diagnostics arm, J&J's overall fourth-quarter sales increased 9 percent to $16.6 billion.

Despite ending the year strongly, the New Brunswick, N.J.-based firm recorded total 2009 revenue of $61.9 billion, down 2.9 percent from 2008.

Due to after-tax restructuring charges stemming from litigation, J&J's fourth-quarter earnings dropped 18.7 percent to $2.2 billion. Full-year earnings were impacted as well, declining 5.3 percent to $12.3 billion.

J&J announced earnings guidance of $4.85 to $4.95 per share for full-year 2010, excluding the impact of special charges.

- Lauren Nardella ( ³ [email protected] )