-By D. Gail Fleenor
Cruise the oral care aisle these days and you will notice plenty of
double-duty products such as toothpaste that whitens teeth and
freshens breath, and mouthwash that freshens breath and whitens
teeth. Multi-use products are convenient for many consumers and
cost-effective for others who are counting pennies. However, this
is not an easy time for major manufacturers, as sales of private
label oral care products continue to erode margins of national
brands.
Oral care food, drug store and mass merchandise (FDMx) category
sales have been flat over the past five years, increasing from $3.1
billion in 2003 to only $3.3 billion in 2008, according to Mintel,
a Chicago-based research firm. While the recession exerted its
influence on the category, Mintel's study "Oral Hygiene — U.S. —
June 2009" reports that the category has deeper troubles than the
economy. "A dearth of product innovations in 2008 and a slew of
private label offerings from drug stores and mass merchants have
slowed sales and posed threats to brand leaders," the report
notes.
According to Mintel's report, last year, private label toothpaste
sales rose 24 percent, store-brand toothbrush sales increased 8.2
percent, private label mouthwash sales rose 11.7 percent and
store-brand dental floss/accessories/tools sales increased 14.9
percent.
Segment Leaders Shine
Looking at specific segments within the oral care category
highlights some interesting trends. In the toothpaste segment,
Procter & Gamble's (P&G's) Crest Whitening Plus Scope and
Regular Crest toothpastes held the top two spots in sales in 2008
(Information Resources, Inc., Total U.S. FDMx ending Dec. 28, 2008,
excluding Wal-Mart). Colgate products were close behind in
sales.
"Price is driving the subcategory of toothpaste at Food City," says
Kimberly Fultz, category manager, HBW, for Abingdon, Va.-based
K-VA-T Food Stores, Inc., parent company of Food City. "Crest
Baking Soda Whitening Fresh Mint and Crest Classic Anti-Cavity are
our top two sellers, but these 3.5-ounce products are what we call
'cheater packs' — smaller size and price." Fultz notes there are
currently five items she considers "price" brands in the
top-10-selling toothpastes at Food City. In addition to the two
Crest varieties/sizes mentioned, these include two different
flavors of Aim and one Ultra Brite. "We have premium toothpastes in
the top 10 as well, with Colgate Total Plus and Crest Whitening
being our best-selling premium toothpastes," Fultz notes. Six of
Food City's top-10-selling toothpastes are whitening products.
"Baking soda/peroxide whitening products rank very high here among
all brands," she says.
The top 10 toothpastes at United Supermarkets, headquartered in
Lubbock, Texas, include three types of Crest, three types of Aim,
two of Colgate and two kinds of Pepsodent, according to Tandy
Arrant, general merchandise business manager for United. Most
product sizes were 6 ounces; none was larger than 6.4 ounces.
In the manual toothbrush segment, P&G dominates with its Oral-B
brand, according to Information Resources, Inc. (IRI) numbers.
While premium brushes with special cleaning features have gained
share over the past year, so has private label. Store-brand
toothbrushes held the top spot on the list of best-selling
toothbrushes in 2008.
"Eighteen of our top 20 toothbrushes are private label," says Food
City's Fultz. "Private label is outperforming the brands by a long
shot in this category. My No. 1 item is a Top Care brush that
compares to Colgate Plus, which ranks fourth and is one of the two
branded items in the top 20." The best-selling store-brand
toothbrushes at Food City compare to Oral-B Advantage and
Indicator, and Colgate Total and 360, she notes. United
Supermarket's top-selling toothbrushes feature eight private label
brushes and two made by Colgate, Arrant says.
Listerine holds the top spot in mouthwash sales and controls nearly
half the market. However, private label mouthwash still snatched
second place among mouthwash/dental rinse top-sellers in 2008,
according to IRI numbers. Store brands led the dental floss
segment, with Crest Glide coming in second (IRI, Total U.S. FDMx
ending Dec. 28, 2008, excluding Wal-Mart). According to the Mintel
study, sales of mouthwash/rinses have grown 33 percent from $534
million in 2003 to $712 million in 2008, driven by added benefits
in new products, like teeth whitening or protection against dry
mouth.
What's on Tap
P&G, headquartered in Cincinnati, holds one-third of oral care
category sales, which includes toothbrushes, toothpastes,
mouthwash, dental floss and accessories, and whitening products,
according to Mintel. "P&G is uniquely positioned to deliver a
range of comprehensive oral care solutions appealing to specific
consumers, as we are the only oral care company with a complete
product portfolio across all forms (paste, rinse, manual and power
brush, floss, whitening, kids, dentures)," says Olga Mikerina,
P&G Oral Care Team.
"Outlast," a new family of oral care products, has just been
launched by P&G. "The Outlast technology binds tightly with
select receptors in the mouth, triggering a minty fresh sensation
that lasts," Mikerina notes. Products in the line include Scope
Outlast Mouthwash, Crest Extra Whitening Plus Scope Outlast
Toothpaste and Oral-B Floss Picks plus Scope Outlast flavor. "The
new regimen of products helps deliver lasting fresh breath for the
ultimate social confidence."
Pittsburgh-based GlaxoSmithKline (GSK) Consumer Healthcare is also
introducing new oral care technology with its recently launched
iso-active Aquafresh and Sensodyne toothpastes. The new toothpaste
gel, delivered in a canister, transforms to foam in the warmth of
the mouth. GSK says the foam is twice that of ordinary toothpaste
and removes three times more bacteria. Varieties include Aquafresh
Whitening Fresh Impact, Whitening Deep Impact and Whitening Lasting
Impact, as well as Sensodyne Multi-Action and Whitening.
A recent survey conducted for GSK found that 75 percent of
respondents said it's very important to clean between teeth, but
less than half (46 percent) felt their oral care routine was very
effective at this task. In addition, 79 percent said it's very
important that an oral health care routine remove bacteria and
germs, but only 52 percent felt that their current routine did
so.
"With 40 percent of the tooth surface in between the teeth,
it is important that we get into those hidden areas of the mouth to
achieve overall oral health," says Dr. Kourosh Maddahi, GSK's
expert dentist. The survey conducted for GSK found that 68 percent
of adults do not realize how much of their tooth surface is located
between teeth. "What I like about new iso-active is that it has a
unique foaming action that helps to ensure my patients are getting
into those hard-to-reach areas for a deeper clean," he notes.
Sensodyne ProNamel, another new GSK product, is scientifically
formulated to harden enamel and protect teeth against acid erosion
with each brushing, according to Dr. Maddahi. "Your enamel is under
attack every day from acidic foods and drinks, including salad
dressing, yogurt, fruit, soda and wine," he notes. "Acid erosion
can damage enamel and discolor teeth."
The toothpaste contains a special ingredient for tooth sensitivity
and is available in a children's formula — the first pediatric
toothpaste designed to help reharden children's tooth enamel.
Listerine, the top-selling mouthwash, continues to add to its
lineup, bringing out Listerine Total Care Anticavity Mouthwash
earlier this year and recently introducing Listerine Whitening plus
Fluoride Rinse. Other new products from Johnson and Johnson
Healthcare Products, a division of McNeill, PPC, which is
headquartered in Fort Washington, Pa., include the new Reach Total
Care toothbrush featuring floss-like bristles and a tongue cleaner,
and Reach Total Care floss with Micro-grooves technology and
Listerine flavors.
The Natural Way to Clean
Natural oral care product sales rose 14.2 percent from $68.8
million in 2006 to $78.6 million in 2008, according to Mintel,
which says consumer demand is strong in this area and predicts the
natural segment will continue to see strong growth.
Natural oral care products are popular for a variety of reasons,
according to Susan Dewhirst, spokeswoman for segment leader Tom's
of Maine, including recognition of the link between oral and
systemic health, the extension from a natural food diet to products
consumers use in their mouths, and easier access to information on
the Internet. "Also, consumers seem to be holding manufacturers to
a higher standard of quality and honesty," she says.
The latest oral care products from the Kennebunk, Maine-based
company include Maximum Strength Fluoride toothpaste; Wicked Fresh!
And Naturally White toothpastes, which will be available in
November; and Long Lasting Fresh Breath Mouthwashes, available in
December.
In the future, major oral care leader P&G believes that regimen
is important to growing the category and to improving shopability
for the consumer, according to Mikerina. Other trends include
incremental health benefits (such as sensitivity protection or
multi-care offerings) and easy solutions. "But whitening remains a
major trend," she says.
NONFOODS: Oral Care: Brushing up on Sales
Oct 7, 2009
-By D. Gail Fleenor
Cruise the oral care aisle these days and you will notice plenty of double-duty products such as toothpaste that whitens teeth and freshens breath, and mouthwash that freshens breath and whitens teeth. Multi-use products are convenient for many consumers and cost-effective for others who are counting pennies. However, this is not an easy time for major manufacturers, as sales of private label oral care products continue to erode margins of national brands.
Oral care food, drug store and mass merchandise (FDMx) category sales have been flat over the past five years, increasing from $3.1 billion in 2003 to only $3.3 billion in 2008, according to Mintel, a Chicago-based research firm. While the recession exerted its influence on the category, Mintel's study "Oral Hygiene — U.S. — June 2009" reports that the category has deeper troubles than the economy. "A dearth of product innovations in 2008 and a slew of private label offerings from drug stores and mass merchants have slowed sales and posed threats to brand leaders," the report notes.
According to Mintel's report, last year, private label toothpaste sales rose 24 percent, store-brand toothbrush sales increased 8.2 percent, private label mouthwash sales rose 11.7 percent and store-brand dental floss/accessories/tools sales increased 14.9 percent.
Segment Leaders Shine
Looking at specific segments within the oral care category highlights some interesting trends. In the toothpaste segment, Procter & Gamble's (P&G's) Crest Whitening Plus Scope and Regular Crest toothpastes held the top two spots in sales in 2008 (Information Resources, Inc., Total U.S. FDMx ending Dec. 28, 2008, excluding Wal-Mart). Colgate products were close behind in sales.
"Price is driving the subcategory of toothpaste at Food City," says Kimberly Fultz, category manager, HBW, for Abingdon, Va.-based K-VA-T Food Stores, Inc., parent company of Food City. "Crest Baking Soda Whitening Fresh Mint and Crest Classic Anti-Cavity are our top two sellers, but these 3.5-ounce products are what we call 'cheater packs' — smaller size and price." Fultz notes there are currently five items she considers "price" brands in the top-10-selling toothpastes at Food City. In addition to the two Crest varieties/sizes mentioned, these include two different flavors of Aim and one Ultra Brite. "We have premium toothpastes in the top 10 as well, with Colgate Total Plus and Crest Whitening being our best-selling premium toothpastes," Fultz notes. Six of Food City's top-10-selling toothpastes are whitening products. "Baking soda/peroxide whitening products rank very high here among all brands," she says.
The top 10 toothpastes at United Supermarkets, headquartered in Lubbock, Texas, include three types of Crest, three types of Aim, two of Colgate and two kinds of Pepsodent, according to Tandy Arrant, general merchandise business manager for United. Most product sizes were 6 ounces; none was larger than 6.4 ounces.
In the manual toothbrush segment, P&G dominates with its Oral-B brand, according to Information Resources, Inc. (IRI) numbers. While premium brushes with special cleaning features have gained share over the past year, so has private label. Store-brand toothbrushes held the top spot on the list of best-selling toothbrushes in 2008.
"Eighteen of our top 20 toothbrushes are private label," says Food City's Fultz. "Private label is outperforming the brands by a long shot in this category. My No. 1 item is a Top Care brush that compares to Colgate Plus, which ranks fourth and is one of the two branded items in the top 20." The best-selling store-brand toothbrushes at Food City compare to Oral-B Advantage and Indicator, and Colgate Total and 360, she notes. United Supermarket's top-selling toothbrushes feature eight private label brushes and two made by Colgate, Arrant says.
Listerine holds the top spot in mouthwash sales and controls nearly half the market. However, private label mouthwash still snatched second place among mouthwash/dental rinse top-sellers in 2008, according to IRI numbers. Store brands led the dental floss segment, with Crest Glide coming in second (IRI, Total U.S. FDMx ending Dec. 28, 2008, excluding Wal-Mart). According to the Mintel study, sales of mouthwash/rinses have grown 33 percent from $534 million in 2003 to $712 million in 2008, driven by added benefits in new products, like teeth whitening or protection against dry mouth.
What's on Tap
P&G, headquartered in Cincinnati, holds one-third of oral care category sales, which includes toothbrushes, toothpastes, mouthwash, dental floss and accessories, and whitening products, according to Mintel. "P&G is uniquely positioned to deliver a range of comprehensive oral care solutions appealing to specific consumers, as we are the only oral care company with a complete product portfolio across all forms (paste, rinse, manual and power brush, floss, whitening, kids, dentures)," says Olga Mikerina, P&G Oral Care Team.
"Outlast," a new family of oral care products, has just been launched by P&G. "The Outlast technology binds tightly with select receptors in the mouth, triggering a minty fresh sensation that lasts," Mikerina notes. Products in the line include Scope Outlast Mouthwash, Crest Extra Whitening Plus Scope Outlast Toothpaste and Oral-B Floss Picks plus Scope Outlast flavor. "The new regimen of products helps deliver lasting fresh breath for the ultimate social confidence."
Pittsburgh-based GlaxoSmithKline (GSK) Consumer Healthcare is also introducing new oral care technology with its recently launched iso-active Aquafresh and Sensodyne toothpastes. The new toothpaste gel, delivered in a canister, transforms to foam in the warmth of the mouth. GSK says the foam is twice that of ordinary toothpaste and removes three times more bacteria. Varieties include Aquafresh Whitening Fresh Impact, Whitening Deep Impact and Whitening Lasting Impact, as well as Sensodyne Multi-Action and Whitening.
A recent survey conducted for GSK found that 75 percent of respondents said it's very important to clean between teeth, but less than half (46 percent) felt their oral care routine was very effective at this task. In addition, 79 percent said it's very important that an oral health care routine remove bacteria and germs, but only 52 percent felt that their current routine did so.
"With 40 percent of the tooth surface in between the teeth, it is important that we get into those hidden areas of the mouth to achieve overall oral health," says Dr. Kourosh Maddahi, GSK's expert dentist. The survey conducted for GSK found that 68 percent of adults do not realize how much of their tooth surface is located between teeth. "What I like about new iso-active is that it has a unique foaming action that helps to ensure my patients are getting into those hard-to-reach areas for a deeper clean," he notes.
Sensodyne ProNamel, another new GSK product, is scientifically formulated to harden enamel and protect teeth against acid erosion with each brushing, according to Dr. Maddahi. "Your enamel is under attack every day from acidic foods and drinks, including salad dressing, yogurt, fruit, soda and wine," he notes. "Acid erosion can damage enamel and discolor teeth."
The toothpaste contains a special ingredient for tooth sensitivity and is available in a children's formula — the first pediatric toothpaste designed to help reharden children's tooth enamel.
Listerine, the top-selling mouthwash, continues to add to its lineup, bringing out Listerine Total Care Anticavity Mouthwash earlier this year and recently introducing Listerine Whitening plus Fluoride Rinse. Other new products from Johnson and Johnson Healthcare Products, a division of McNeill, PPC, which is headquartered in Fort Washington, Pa., include the new Reach Total Care toothbrush featuring floss-like bristles and a tongue cleaner, and Reach Total Care floss with Micro-grooves technology and Listerine flavors.
The Natural Way to Clean
Natural oral care product sales rose 14.2 percent from $68.8 million in 2006 to $78.6 million in 2008, according to Mintel, which says consumer demand is strong in this area and predicts the natural segment will continue to see strong growth.
Natural oral care products are popular for a variety of reasons, according to Susan Dewhirst, spokeswoman for segment leader Tom's of Maine, including recognition of the link between oral and systemic health, the extension from a natural food diet to products consumers use in their mouths, and easier access to information on the Internet. "Also, consumers seem to be holding manufacturers to a higher standard of quality and honesty," she says.
The latest oral care products from the Kennebunk, Maine-based company include Maximum Strength Fluoride toothpaste; Wicked Fresh! And Naturally White toothpastes, which will be available in November; and Long Lasting Fresh Breath Mouthwashes, available in December.
In the future, major oral care leader P&G believes that regimen is important to growing the category and to improving shopability for the consumer, according to Mikerina. Other trends include incremental health benefits (such as sensitivity protection or multi-care offerings) and easy solutions. "But whitening remains a major trend," she says.