THE ANNUAL TOP 500

THE ANNUAL

T5O0P0

Drug Store News

NICHE BRANDS/BROKERS REPORT

Niche

(generally pronounced `nesh' in British English and `nitsh' in American English)

May refer to: ? Niche market, a focused, targetable portion (subset) of a market sector; ? One of 500 items that retailers can't live without



May 2010 ? 1

the annual

Niche Brands/brokers report

Top500 Niche Brands

Total

Brand

Sales* % CHG

1 JUST FOR MEN MEN'S HAIR COLORING

$97.3

4.2%

2 ICY HOT EXTERNAL ANALGESICS RUBS

66.7

9.8

3 DULCOLAX LAXATIVE TABLETS

66.6

5.4

4 RICOLA COUGH/SORE THROAT DROP

65.6 11.8

5 PRIMATENE MIST NASAL SPRAY/DROPS/INHALER

63.2 46.4

6 AIRBORNE COLD/ALLERGY/SINUS TABLETS/PACKETS 57.8 -18.5

7 ALACER EMERGEN C LIQUID VITAMINS/MINERALS

52.9 26.3

8 SMOOTH AWAY DEPILATORIES

49.8 941.9

9 FIRST RESPONSE PREGNANCY TEST KITS

46.1 -7.7

10 ORAJEL ORAL PAIN RELIEF

45.7 -6.3

11 ZICAM COLD/ALLERGY/SINUS TABLETS/PACKETS

44.7 14.1

12 GOLD BOND ULTIMATE HAND & BODY LOTION

39.4 17.9

13 CYTOSPORT MUSCLE MILK WGHT CTRL/NUTRITIONALS 36.6 60.5

14 DENTEK DENTAL ACCESSORIES/TOOLS

31.5 11.6

15 NEILMED NASAL SPRAY/DROPS/INHALER

29.6 14.7

16 PED EGG FOOT CARE DEVICES

28.0 -64.2

17 VAGISIL ALL OTHER FEM. HYGIENE/med trt

27.8 -3.8

18 METHOD LIQUID HAND SOAP

27.7

3.4

19 MEDERMA FIRST AID OINTMENTS/ANTISEPTICS

27.6 13.1

20 AMERICAN CREW HAIR STYLING/SETTING GEL/MOUSSE 26.0 -3.0

21 ARM & HAMMER ADVANCE WHITE TOOTHPASTE

25.8 -6.7

22 BLISTEX LIP BALM/COLD SORE MEDICATION

24.9

4.6

23 CARMEX LIP BALM/COLD SORE MEDICATION

24.5 -5.9

24 ATKINS ADVANTAGE WGHT CTRL/NUTRITIONALS

24.1 19.3

25 COLD EEZE COUGH/SORE THROAT DROP

22.9 -10.3

26 TRIM NAIL ACCESSORIES/IMPLEMENTS

22.6

9.2

27 CLEAR EYES EYE/LENS CARE SOLUTIONS

22.6 -8.3

28 SUMMERS EVE ALL OTHER FEM. HYGIENE/med trt 22.5 -9.4

29 HAWAIIAN TROPIC SUNTAN LOTION & OIL

21.9 18.6

30 SELSUN BLUE DANDRUFF SHAMPOO

21.7 11.3

31 BABY ORAJEL ORAL PAIN RELIEF

20.5

2.4

32 PALMERS COCOA BUTTER FORMULA HAND & BODY ltn 19.7 16.6

33 BARBASOL SHAVING CREAM

19.5 20.9

34 SLIMQUICK WEIGHT CONTROL CANDY/TABLETS

19.1 -12.9

35 FIRST CHECK OTHER HOME TESTING KITS

19.0 -4.7

36 CHLORASEPTIC SORE THROAT REMEDY LIQUIDS

18.8

0.9

37 CEPACOL COUGH/SORE THROAT DROP

18.4

0.9

38 AT HOME OTHER HOME TESTING KITS

18.2

9.4

39 BLAIREX SIMPLY SALINE NASAL SPRAY/DROPS/INHALER 17.9

9.6

40 ARRID EXTRA EXTRA DRY DEODORANTS

17.9 -0.7

41 UNIVERSITY MEDICAL ACNEFREE ACNE TREATMENTS 17.6 -0.1

42 NAIR DEPILATORIES

17.3

2.5

43 AZO STANDARD INTERNAL ANALGESIC TABLETS

17.0 25.3

44 SIMILASAN EYE/LENS CARE SOLUTIONS

17.0 -10.4

45 ASPERCREME EXTERNAL ANALGESICS RUBS

16.9 -5.5

46 REMINGTON GROOMING/SHAVING SCISSORS

16.9

NA

47 ICAPS MULTIVITAMINS

16.8

1.0

48 SINFUL COLORS NAIL POLISH

16.8 38.3

49 SUMMERS EVE DOUCHES

16.6 -3.9

50 NEILMED NASAFLO NASAL SPRAY/DROPS/INHALER

16.6 51.0

* Sales in millions

Source: Infoscan Reviews, SymphonyIRI Group

Rankings reflect individual items -- NOT totaled brand listings (e.g., all SKUs/versions rolled into a single figures)

Retailers begin to `SKU'

back toward niche items

By Michael Johnsen

A down economy certainly has made for some choppy waters for niche suppliers in the past year, especially as the downturn in shopper dollars exposed a barnacle that had been dragging down performance for

retailers for quite some time -- overpopulated planograms.

It wasn't too long ago that SKU rationalization became commonplace, as many retailers attempted a

Amid the sea of razors, waxes and hair-removal creams on the market, Smooth Away has broken through the clutter. Each Smooth Away pad is covered with superfine crystals that buff away unwanted hair, leaving skin soft and smooth.

Carmex is one of the niche brands that has cracked the social media code -- the lip brand's campaign where users e-mailed each other personalized Carmex Kisses got sales all aflutter.

course correction toward more profitable sets -- establishing performance metrics that possibly favored bigger brands and their store-brand equivalents over slowermoving and slower-building brands. In other words, niche products.

But now retailers are acknowledging they may have cut too much, opening a pathway of opportunity for many suppliers, especially those of promising niche brands. "We had done some things that lost a trip," Walmart EVP and COO Bill Simon told analysts at a Bank of America/ Merill Lynch conference in March. "We did discontinue [products that] didn't sell well [and] were only bought infrequently, but [it] cost us a trip. And we did discontinue some things that people didn't buy very often but were aggravating to a customer to lose," he said, noting that the country's largest front-end retailer was in the process of repopulating its shelves with a small percentage of what initially was cut.

The reality is, larger brands with more ubiquitous distribution only allow for competition on price and convenience, suggested Mike McBride, senior director of industry relations for Upsher-Smith Labs. Niche enables retailers to compete more on product mix, especially pureplay pharmacy retailers. Consumers in search of a national brand shopping on price can likely find it in all types of retailers,

Continued on page 3

Drug Store News



May 2010 ? 2

the annual

Niche Brands/brokers report

Top500 Niche Brands

Total

Brand

Sales* % CHG

51 HYDROXYCUT WEIGHT CONTROL CANDY/TABLETS $16.4 -60.8%

52 MUELLER SPORT CARE MUSCLE/BODY SUPPORT DEVICES 15.9 41.1

53 ACT TOTAL CARE MOUTHWASH/DENTAL RINSE

15.6

NA

54 OXY ACNE TREATMENTS

15.3 -11.6

55 GOODYS INTERNAL ANALGESIC TABLETS

14.9 -2.9

56 COMPOUND W WART REMOVERS 57 LIL CRITTERS GUMMY VITES MULTIVITAMINS

14.8

3.9

14.8 26.7

58 GERM X HAND SANITIZERS

14.8 96.8

59 CORIA CERA VE HAND & BODY LOTION

14.6 57.6

60 CLEARBLUE EASY OVULATION PREDICTION KITS

14.6 -14.3

61 ELATIONS LIQUID VITAMINS/MINERALS 62 ORGANIX HAIR CONDITIONER/CREME RINSE

14.5 131.1 14.2 38.0

63 MENTHOLATUM SOFT LIPS LIP BALM/COLD SORE MED 14.1 -6.9

64 OPI NAIL POLISH

14.0 10.7

65 PHYSICIANS FORMULA MINERAL WEAR POWDER

13.7 -6.0

66 ORGANIX REGULAR SHAMPOO 67 CULTURELLE ANTACID TABLETS

13.7 44.6 13.3 30.9

68 ESTROVEN MINERAL SUPPLEMENTS

13.3 -9.5

69 SEA BOND DENTURE ADHESIVES

13.2 -6.8

70 ASTROGLIDE PERSONAL LUBRICANTS

13.2

6.8

71 BOIRON OSCILLOCOCCINUM COLD/ALLRGY/SINUS 72 MEGA T WEIGHT CONTROL CANDY/TABLETS

13.0 70.1 12.9 28.4

73 FRIZZ EASE HAIR STYLING/SETTING GEL/MOUSSE

12.6 -9.2

74 BIG SEXY HAIR HAIR SPRAY/SPRITZ

12.6 42.8

75 AYR NASAL SPRAY/DROPS/INHALER

12.2 -7.1

76 MILANI NAIL POLISH 77 THERA TEARS EYE/LENS CARE SOLUTIONS

12.1 -3.6

12.0

5.5

78 SALONPAS EXTERNAL ANALGESICS RUBS

12.0 -2.4

79 BOSTON SIMPLUS EYE/LENS CARE SOLUTIONS

12.0

5.3

80 GOLD BOND FOOT CARE/ATHLETES FOOT MEDICATION 11.9

6.8

81 CHLORASEPTIC COUGH/SORE THROAT DROP 82 NEXT CHOICE FEMALE CONTRACEPTIVES

11.8 -8.2 11.7 NA

83 CETAPHIL FACIAL MOISTURIZERS

11.5 37.6

84 MATRIX BIOLAGE REGULAR SHAMPOO

11.4 -26.0

85 LITTLE NOSES NASAL SPRAY/DROPS/INHALER

11.0 10.7

86 CABOODLES COSMETIC STORAGE 87 BRUT DEODORANTS

10.9 13.5 10.8 -6.5

88 AIM TOOTHPASTE

10.5 18.4

89 TIGER BALM EXTERNAL ANALGESICS RUBS

10.5 10.6

90 SINUCLEANSE NASAL SPRAY/DROPS/INHALER

10.4 -29.7

91 ARM & HAMMER PEROXICARE TOOTHPASTE 92 PAMPRIN FEMININE PAIN RELIEVERS

10.4

4.1

10.4 -8.6

93 BIO-OIL FACIAL ANTI-AGING

10.3

6.3

94 JOBST MUSCLE/BODY SUPPORT DEVICES

10.3

5.9

95 BROADWAY NAILS REAL LIFE ARTIFCL NAILS & ACCSSRS 10.2 -1.2

96 JUST FOR MEN TOUCH OF GRAY MEN'S HAIR COLORING 10.2 43.4

97 AQUANET HAIR SPRAY/SPRITZ

10.2 -2.0

98 TRIGOSAMINE MINERAL SUPPLEMENTS

10.2 122.7

99 COSAMIN DS MINERAL SUPPLEMENTS

10.1 -17.7

100 BANANA BT ULTR MST SPRT PRFRMNC SUNTAN LtN & OIL 10.1 233.5

* Sales in millions

Source: Infoscan Reviews, SymphonyIRI Group

Rankings reflect individual items -- NOT totaled brand listings (e.g., all SKUs/versions rolled into a single figures)

`SKU' toward niche

he said. "The hyper-rationalization of items in drug chains starts to make them look like all the other retailer models," McBride said.

Amerifit Brands introduced its own venerable probiotic brand to the children's probiotics subsegment with the launch of Culturelle Probiotics for Kids -- according to the company's research, kids already make up 60% of probiotic use.

Advanced Vision Research has been keeping an eye out for the bottom line with its TheraTears SteriLid eyelid cleanser that helps relieve both blepharitis and dry eye. Scientifically vetted and doctor approved.

Bio-Oil continues to capture attention with its breakthrough ingredient PurCellin Oil, which helps deliver Bio-Oil's blend of vitamins and natural plant oils where skin needs them most. Doctors have recommended it for scars and stretch marks.

Continued from page 2

"From a buy-in standpoint, a niche product can't compete with even the worstselling Tylenol," said Rick Wellinger,

Continued on page 4

It wasn't too long ago that SKU rationalization became commonplace, as many retailers attempted a course correction toward more profitable sets -- establishing performance metrics that possibly favored bigger brands ... over slowermoving and slower-building brands. In other words, niche products. But now retailers are acknowledging they may have cut too much, opening a pathway of opportunity for many suppliers, especially those of promising niche brands.

Drug Store News



May 2010 ? 3

the annual

Niche Brands/brokers report

Top500 Niche Brands

Total

Brand

Sales* % CHG

101 ESTER C 1 & 2 LETTER VITAMINS

$9.9 24.2%

102 HYDROXYCUT ADVANCED WEIGHT CTRL CANDY/TAbltS 9.9

NA

103 EXTENZE MINERAL SUPPLEMENTS

9.8 224.8

104 AUSTRALIAN GOLD SUNTAN LOTION & OIL

9.8 12.2

105 TWEEZERMAN GROOMING/SHAVING SCISSORS

9.6 15.2

106 BANANA BOAT ULTRA DEFENSE SUNTAN LOTION & OIL 9.6 68.8

107 SLIMQUICK WEIGHT CONTROL/NUTRITIONALS LIQ/PWD 9.4 36.4

108 WHITE RAIN LIQUID BODY WASH/ALL OTHER

9.3 20.1

109 POLYSPORIN FIRST AID OINTMENTS/ANTISEPTICS

9.3

3.5

110 BUTLER GUM SOFT PICKS DENTAL ACCESSORIES/TOOLS 9.3 29.5

111 NIX LICE TREATMENTS

9.3 -11.3

112 KISS ARTIFICIAL NAILS AND ACCESSORIES

9.2

2.8

113 FINESSE REGULAR SHAMPOO

9.2

2.1

114 SARNA ANTI-ITCH TREATMENTS (INC CALAMINE)

9.1 -17.5

115 CUTEX QUICK & GENTLE NAIL POLISH REMOVERS

8.9 23.4

116 SHEER BLONDE REGULAR SHAMPOO

8.9 -19.6

117 GOLD BOND ANTI-ITCH TREATMENTS (INC CALAMINE) 8.9 14.4

118 BODY BENEFITS BATH/BODY SCRUBBERS/MASSAGERS 8.9

3.0

119 ZICAM ORAL MIST COLD/ALLERGY/SINUS LIQUID/PWDR 8.8

6.8

120 HIBICLENS FIRST AID OINTMENTS/ANTISEPTICS

8.8 26.6

121 ICAPS AREDS MULTIVITAMINS

8.8 39.2

122 ACT FOR KIDS MOUTHWASH/DENTAL RINSE

8.7 -5.5

123 PERT PLUS HAPPY MEDIUM REGULAR SHAMPOO

8.7 -43.2

124 OCEAN NASAL SPRAY/DROPS/INHALER

8.6 -4.2

125 SERENITY TENA ADULT INCONTINENCE PRODUCTS

8.6 34.8

126 NEW SKIN FIRST AID - TAPE/BANDAGE/GAUZE/COTTON 8.5 10.0

127 DEL BORGHESE NAIL POLISH

8.5 42.1

128 PURE PROTEIN WEIGHT CTRL/NUTRITIONALS LIQ/PWD 8.5 237.3

129 BOUDREAUXS BUTT PASTE BABY OINTMENTS/CREAMS 8.4 -3.5

130 SLIM SHOTS WEIGHT CTRL/NUTRITIONALS LIQ/PWD

8.4 17.4

131 JILLIAN MICHAELS WEIGHT CONTROL CANDY/TABLETS 8.3

NA

132 ZANTREX 3 WEIGHT CONTROL CANDY/TABLETS

8.3 -13.2

133 AMLACTIN HAND & BODY LOTION

8.2 10.1

134 COMPOUND W FREEZE OFF WART REMOVERS

8.2 -10.2

135 KISS EVERLASTING FRNCH ARTIFiCiaL NAILS & ACCSSrs 8.1

NA

136 UNIVERSITY MEDCL FC LFT WRINKLFR FACIAL ANTIAGING 8.1 149.0

137 AMERICAN CREW REGULAR SHAMPOO

8.1 -11.8

138 EFFERDENT PLUS DENTURE CLEANSER/TABLETS

8.0 -15.1

139 SPORT AID MUSCLE/BODY SUPPORT DEVICES

8.0 -6.5

140 ARM & HAMMR ADVANC WHT BRLLNT SP TOOTHPASTE 7.9

2.1

141 BIOSILK SILK THERAPY HAIR CONDITIONER/CREME RINSE 7.9 -21.6

142 FLORASTOR MINERAL SUPPLEMENTS

7.8 45.2

143 BONNE BELL LIP SMACKER LIP GLOSS

7.8 7.9

144 DOCTORS NIGHTGRD ADVANCD CMFRT DENTAL ACCSSrs 7.8 29.4

145 SIMILASAN EAR DROPS/TREATMENTS

7.8 -9.2

146 CLOSE UP TOOTHPASTE

7.6 -3.9

147 XENADRINE RFA 1 WEIGHT CONTROL CANDY/TABLETS 7.6 258.0

148 FUNGI CURE FOOT CARE/ATHLETES FOOT MEDICATION 7.6

6.0

149 DIUREX DIURETIC TABLETS

7.5 -2.0

150 REPLENS VAGINAL TREATMENTS

7.5

2.4

* Sales in millions

Source: Infoscan Reviews, SymphonyIRI Group

Rankings reflect individual items -- NOT totaled brand listings (e.g., all SKUs/versions rolled into a single figures)

`SKU' toward niche

president of the Emerson Group. "The challenge from the retailer side is trying to find that right mix. That's where that word `optimization' comes in -- it's the right number of SKUs," he said. "With

optimization, you're not losing any consumer solutions within that mix."

It's more akin to such programs as Walgreens' Customer Centric Retailing initiative -- which was 85% complete as of March -- that identified and distinguished core categories and optimal products within those categories. "I actually prefer the phrase `SKU optimization' rather than `rationalization,'" said Dave

With sales taking off within intimate health sets, Jimmy Johnson agreed to promote the male sexual enhancement supplement ExtenZe, joining Mike Ditka as ex-gridiron greats who aren't afraid to grapple with performance issues.

Making the nasal saline category simple since 1973, Fleming Pharmaceuticals took the mess out of mixing saline solutions with the recent launch of its premixed formula Ocean Complete Sinus Irrigation.

Continued from page 3

Wendland, VP of Hamacher Resource Group. "The fulcrum requires a precise weighing of best-selling category leaders and a mix of what some may deem artisan brands that either provide unique points of difference or cater to the needs of an emerging segment of the market."

SKU optimization certainly is more favorable diction for niche players, especially as they can better justify placement on the shelf using metrics other than turns and velocity -- metrics such as profit-persq.-in. and momentum, for example.

"The expectations have to be aligned on both sides," McBride said. "Today it comes down to if you get more margin out of [a particular SKU] than an item that might turn more frequently but [the margin] is squeezed because everybody has it," he added. The niche product might not move as fast, but turns enough and at a greater penny profit that it may hold more value than a national brand.

"The very nature of it being a niche, suggests that it's not going to cannibalize the rest of the category," Wendland added. "If you measure it on turnover only, velocity with the category, niche is going to be a slower mover potentially," he said.

As you get into the conversation about optimization versus rationalization, niche metrics ought to capture the lifetime value of that consumer, the value to a retailer in being an early adopter of the niche brand and the value of creating a new user/shopper, suggested Curt Behrens, president of P2B. "You have to introduce the concept of market basket and understand related

Continued on page 5

Drug Store News



May 2010 ? 4

the annual

Niche Brands/brokers report

Top500 Niche Brands

Brand 151 NADS DEPILATORIES 152 MACKS PILLOW SOFT EAR CARE PRODUCTS

Total Sales*

$7.5

7.4

% CHG 0.3% 1.6

153 ODOR EATERS FOOT CARE/ATHLETES FOOT MEDICATION 7.4 -6.3

154 ORGANIC ROOT STIMULATOR HAIR RELAXER KITS

7.2 19.7

155 BONINE MOTION SICKNESS TABLETS

7.1 -2.9

156 BALMEX BABY OINTMENTS/CREAMS 157 REPHRESH VAGINAL TREATMENTS

7.1 -11.9 7.0 23.7

158 BIOFREEZE EXTERNAL ANALGESICS RUBS

6.9 44.0

159 FIRST RESPONSE OVULATION PREDICTION KITS

6.9

4.3

160 TRUFORM MUSCLE/BODY SUPPORT DEVICES

6.9 21.3

161 SWISSPERS COTTON BALLS/COTTON SWABS

6.9 -4.7

162 BUTLER GUM GO BETWEENS DENTAL ACCSSRs/TOOLS 6.9 -4.8

163 BODY FORTRESS WEIGHT CTRL/NUTRITIONALS LIQ/PWD 6.8 -32.4

164 TRIPLE PASTE BABY OINTMENTS/CREAMS

6.7 -4.9

165 PALMERS COCOA BUTTER FORMULA FADE/BLEACH

6.7 -2.6

166 FANTASIA HAIR STYLING/SETTING GEL/MOUSSE 167 HYLAND'S INTERNAL ANALGESIC TABLETS

6.7

0.8

6.7

4.0

168 APPLIED NUTRITION WEIGHT CONTROL CANDY/TABLETS 6.7 10.6

169 UNIVERSITY MEDICAL ACNEFRE SEVER ACNE TRTMNTS 6.7 -2.3

170 MR BUBBLE BATH FRAGRANCES/BUBBLE BATH

6.6

3.6

171 WHITE RAIN CLASSIC CARE HAIR SPRAY/SPRITZ 172 HEAROS EAR CARE PRODUCTS

6.6 -11.9

6.6

9.1

173 BIG SEXY HAIR HAIR STYLING/SETTING GEL/MOUSSE 6.5

7.2

174 GOLD BOND HAND & BODY LOTION

6.5 -8.9

175 BANANA BT ULTRA MIST TANNING SUNTAN LoTion & OIL 6.5 166.0

176 TIGI CATWALK CURLS ROCK HAIR STYl/gel/mousse 6.4 33.9

177 KANK A ORAL PAIN RELIEF

6.4 10.2

178 ACTIVON EXTERNAL ANALGESICS RUBS

6.4 -30.7

179 DIGESTIVE ADVANTAGE ANTACID TABLETS

6.4 -3.1

180 BIOSILK HAIR CONDITIONER/CREME RINSE

6.3 48.8

181 WET N WILD WILD SHINE NAIL POLISH 182 DENTEMP OS DENTAL ACCESSORIES/TOOLS

6.3 9.1 6.2 26.5

183 HYLAND'S ORAL PAIN RELIEF

6.1 7.1

184 FUNGI NAIL FOOT CARE/ATHLETES FOOT MEDICATION 6.1 11.5

185 SCALPICIN HAIR CONDITIONER/CREME RINSE

6.0 -11.6

186 FINESSE HAIR CONDITIONER/CREME RINSE 187 LIPO FLAVONOID MULTIVITAMINS

6.0 -6.8 6.0 -31.0

188 FIRST RESPONSE RAPID RESULT PREGNANCY TEST KITS 5.9 -8.3

189 PLUS WHITE TOOTHPASTE

5.9 -6.1

190 PEPSODENT TOOTHPASTE

5.8 7.9

191 21ST CENTURY MINERAL SUPPLEMENTS

5.8 2.9

192 ORGANIC ROOT STIMULATOR HAIR CoNDTNer/CR RNS 5.8 11.1

193 DESIGNER WHEY WEIGHT CTRL/NUTRITIONALS LIQ/PWD 5.8 20.6

194 MILANI RUNWAY EYE SHADOW

5.7 46.5

195 HYDROXYCUT WEIGHT CTRL/NUTRITIONALS LIQ/PWD 5.7 51.8

196 WHITE RAIN REGULAR SHAMPOO 197 STRIDEX DAILY CARE ACNE TREATMENTS

5.6 16.3 5.6 -9.6

198 AZO CRANBERRY MINERAL SUPPLEMENTS

5.6 17.6

199 THERMIPAQ HEAT/ICE PACKS

5.6 55.5

200 BUTLER GUM PROXABRUSH DENTAL ACCSSRS/TOOLS 5.5 -1.5

* Sales in millions

Source: Infoscan Reviews, SymphonyIRI Group

Rankings reflect individual items -- NOT totaled brand listings (e.g., all SKUs/versions rolled into a single figures)

`SKU' toward niche

purchases in that basket," Behrens added, given that many retailers are focusing on growing their average basket rings.

Take Perlabella as an example, Behrens said. It is an antiaging agent that brings the clinically proven benefits of retinol and hyaluronic acid out of specialty skin care centers and into retail at a shopper-friendly pricepoint. "Now you're converting a previous low-end traditional lotion user into a retinol or hyaluronic acid customer. You've moved them up the chain," he said.

If the product delivers on its promise, the opportunity is there for the retailer to convert that customer into a whole lot of other upgraded purchases, Behrens

Hyland's Leg Cramps PM helps knock out leg cramps and sleepless nights with this natural, nonhabit-forming formula, making it a nice addition to a growing cate gory combining analgesics with OTC sleep aids.

Developed by a dentist, Dentemp O.S. offers a convenient and easy way to temporarily repair loose caps and crowns and lost fillings, while providing pain relief. The formula is strong enough that the user can eat on it in 60 minutes.

Continued from page 4

continued, delivering on the promise of "one more item. You've shown [that consumer] a way to get into the department store retinol franchise in a drug store format at a price they can afford," he said.

Another example of growing marketbasket size through premium placement might be Advanced Vision Research's SteriLid eyelid cleanser, said Pat O'Leary, president of the Greenwood Group. Launched a few years ago against several pre-existing cleansers, Advanced Vision Research introduced a new way to cleanse the eyelids that was clinically more effective at a premium price. "It took the dollar ring

Continued on page 6

"From a buy-in standpoint,

a niche product can't com-

pete with even the worst-

selling Tylenol. The challenge

from the retailer side is try-

ing to find that right mix.

That's where that word `op-

timization' comes in -- it's

the right number of SKUs."

Rick Wellinger,

Emerson Group

Drug Store News



May 2010 ? 5

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................

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