MMR: Mass Market Retailers, January 11, 2021

NEWS Hall Delves Into Forces Impacting the O T C Drug Category Hall says that every product on a shelf should be able to justify itself cutting back its brand portfolio drastically Is that something that O T C makers should think about as well HALL Yes There are too many Weve done studies of famous brands which have 20 30 40 50 SKUs And I tell you were puzzled and dont know where they fit in Despite all the expertise that the trade managers at the various companies have and the retailers have the Sexual Wellness From page 12 the easy ones have been done and the next lot are just very very difficult But we know how long Cialis has been held up at the FDA And I wouldnt have said that was going to be easy but I would have thought there was a great public health case for that entire class to go overthe counter as it has in other parts of the world And Voltaren was a switch that should have happened 10 years ago And the owners of Voltaren would like it to have happened 10 years ago And there may be some things coming along in the next one or two years but in general its just too expensive to make a switch today I think this industry has to take a look at what Biofreeze has done Now Biofreeze has a former advantage but its what goes with it is the professional recommendations the endorsements With Olly its been about finding a new audience finding the Millennials who are not great self medicaters by talking to them in such a direct fashion in the language they understand putting the benefits as the name of the product So its restful sleep Its no more stress That talks to Millennials who dont want to know its melatonin they just want to know Ive got a problem Thats the one Ill take it WOLDT Let me ask you this Earlier you indicated that perhaps there are too many products certainly too many me too products on the market Im sure you saw that Coca Cola is O T C section or CHC section in most chain drug stores looked like a bazaar Its just rows and rows of colored products poorly sign posted There was a study We used to quote it This is 20 odd years ago It wasnt our research but we used to quote research that said that of 100 consumers going out to buy a supplement 37 came home empty handed because when they got to the store its too confusing The problem is that when youve got 20 or 30 brands in a segment in consumer health care its actually quite dangerous to take anything out So the temptation is to keep in the lesswell selling brands because they do make a bit of money And even it they actually dont would you keep your space on shelf if you took out three or four SKUs Or would that go to a competitor So its a difficult conversation to have WOLDT But its one that should be had HALL It should be had And indeed Im actually surprised that the big chains allow so much complexity In many other categories we have the rule of three You have the brand lead and No 2 You have the new kid on the block thats spending a fortune in advertising The rest is generic and private label It is just too costly to make a switch today WOLDT And if you reduce the SKUs probably the ones that remain would have higher returns HALL You would think so And it would force the manufacturers to bring to market truly innovative products Id be a terrible buyer but if I were a buyer I would say that for every product you bring in one goes out I dont want you taking extra width on shelf because youve just introduced a new SKU Every product has to justify itself Sensual Self Care Innovative Protection Personal Moisturizer Toe Curling Sonic Waves Without making direct contact Sonas sonic waves off er fast yet gentle intimate stimulation for mind blowing pleasure Pleasurable and safe condoms The honeycomb structure molds comfortably to the uniqueness of the wearer off ering a tear proof experience with amazing thinness Body Safe ingredients Glycerin free paraben free and unscented for discreet and healthy pleasure Fortifi ed with Aloe Vera for long lasting moisture We would like to give thanks to our retail partners Target Wegmans Anthropologie CVS Walgreens Pharmaca London Drugs Contact joseph petracca@ lelo com 14 MMR January 11 2021