Iri general

OTC REVIEW OF Q1 2005
May 2005
May 26, 2005 – IRI (Information Resources), Bracknell, today reported that the OTC performance for the first
quarter of 2005 was up by 1.5% through the major supermarkets and health and beauty retailers compared to
the same quarter in 2004. The total annual value of the market remains around £2Bn.
Typically growth falls off following the sales peak in December, but 2005 has seen a secondary peak, in both
value and unit sales, for the 4 weeks ending 19 February. This increase is mainly attributable to the late winter
season for cold and flu treatments driving growth through February and March.
Across the Total OTC market volume measured in pack sales are still in growth year on year at 1.9% for the
52 weeks to Mar 05. The rate of growth has been slowing over the past few months as the resurgence in 2004
of sales of Vitamins and Minerals abates into 2005. However the relatively strong Q1 means that volume
growth is stronger than it was a year ago.
Value sales are flat vs 03-04 with an increase of 0.8% for MAT Mar 05.
Three year Value Trends by Sector to March 05
+2.7% -0.7%
+7.2% +0.5%
+3.8% -2.8%
+2.5% +4.1%
+0.9% +4.6%
+9.6% +1.2%
of Cod Liver Oil, and increased sales of higher Value Sales
Pain Relief
Skin Care Cough/Cold
Vitamins &
Intestinal
Minerals
The biggest drop came in Cough/Cold, despite the late winter season. Prices for branded remedies continue
to fall and overall seasonal demand in the latest year has been lower due to reduced flu incidence.

Top 10 OTC Manufacturers
2004 IRI/PAGB Definition – Value % Share MAT March 05 (% chg vs yr ago) 52 w /e 20 Mar, 04
52 w /e 19 Mar, 05
*GSK numbers include Medicated Skincare (Oxy) IRI EAGLE HOUSE, THE RING BRACKNELL, RG12 1HS TEL +44 (0)1344 746000
FAX +44 (0)1344 746001
GSK retains its position as the number one OTC manufacturer but has seen a drop in value share. McNeil saw
the biggest growth due to the release of new variants of Imodium – note that these figures do not include the
recently launched Zocor Heart-Pro cholesterol drug. The biggest share gainer was Seven Seas thanks to the
growth of Cod Liver Oil.
Top 10 OTC Brands
Based on value sales £M 52 weeks to 19 Mar 2005
1. Nurofen
Nurofen is the top selling brand over the latest 52 weeks with an impressive £31.9M lead over Seven Seas; however the brand has seen a drop in sales 2. Seven Seas
3. Lemsip
Seven Seas has seen a year on year gain of 4.4% which is principally driven by increased Cod Liver Oil sales. After steadily declining sales over a period 4. Gaviscon (inc. Gavilast)
of years, a big recovery took place in 2004 on the back of favourable 5. Nicorette
publicity for the health benefits of fish oils in general and Seven Seas in particular. 6. Beechams
Gaviscon saw the biggest overall increase with a jump of 10.3% on year ago 7. Anadin
sales. The brand has seen the benefit of a full year of sales of the Gavilast 8. Benylin
and Gaviscon Cool variants, which have grown the brand without affecting core Gaviscon sales. 9. Calpol (inc. Calprofen)
The only other top 10 brand to increase year on year sales was Nicorette, an 10. Canesten
aid to stop smoking, again demonstrating that many products struggled to maintain value in 2005 in the face of retail discounting and lower seasonal incidence of illness. Trade Sector trends
Grocery is continuing to take OTC sales away from Pharmacy (which includes Boots and Superdrug), however this is happening at a slower rate than we have seen previously. In 2004 Grocery saw an increase of +3.6% to 2003 but for the 52 weeks to the end of March 2005 this had slowed to +1.6%. Excludes VMS and some minor categories
Grocery retailers are often more competitive on price and have more convenient opening hours which means that many shoppers increasingly pick up OTC products along with their weekly shop. Increased availability of GSL licensed products (which can be sold anywhere) has also helped to increase sales. However trend towards grocery is slowing down. Boots have recently changed their marketing strategy, lowered prices and are planning to invest in new product development to differentiate their offer. APPENDIX 1
IRI/PAGB OTC Categories
Pain Relief
ƒ Adult Oral Analgesics ƒ Paediatric Analgesics ƒ Topical Analgesics ƒ Oral Lesions & Toothache Cough/Cold/Sore Throat
ƒ Cold Flu Decongestants ƒ Cough Liquids ƒ Medicated Confectionery ƒ Smoking Cessation ƒ Anti-allergy/Hayfever ƒ Sleeping Aids ƒ Medicated Mouthwash ƒ Eyecare Vitamins, Minerals and Supplements
ƒ Vitamins and Minerals* ƒ Anti Tiredness* Gastro-Intestinal
ƒ Anti-Diarrhoeas ƒ Indigestion Remedies ƒ Irritable Bowel Syndrome ƒ Laxatives ƒ Stomach Upset Remedies ƒ Travel Sickness ƒ Infant Gastro Skin Treatments
ƒ Antifungals ƒ Anti-Haemorrhoids ƒ Antiseptic Liquids ƒ Antiseptic Creams ƒ Cold Sore Treatments ƒ Dry Skin Treatment * ƒ Feminine Care/Lub Jelly ƒ Insect Bite/Antiseptic Sprays* ƒ Medicated Skincare * ƒ Scalp Treatments ƒ Infestation/Headlice ƒ Verucca/Warts
Categories marked * are excluded from Trade sector pie chart

Source: http://www.iriworldwide.fr/Portals/0/docs/OTC_Review_Q1_2005.pdf