Everyone's a market for eye care products

Chain Drug Review, April 9, 2007 by Geoff Walden

NEW YORK -- The vision care sector, which embraces segments from eye drops to reading glasses, is thriving in drug chains as retailers serve older customers undergoing vision changes and younger people capitalizing on new contact lens technologies.

"It's a flourishing market because demand is growing at both ends of the age spectrum," says one chain drug category manager. "Our middle-age and older customers are losing their ability to see close up, and we can meet their newfound need for reading glasses. Young customers just starting out with contact lenses, meanwhile, want the products that will make wearing the latest lenses as comfortable as possible.

"It's the best of both worlds."

Of people being fitted for soft lenses, seven in 10 are opting for new silicone hydrogel lenses, which suppliers say require an updated multipurpose solution. Alcon Laboratories Inc., for one, offers Opti-Free RepleniSH solution to enhance comfortable wear and minimize dryness. The solution is formulated with the TearGlyde reconditioning system to allow a thin layer of moisture to be maintained on the lens surface all day.

According to Information Resources Inc. (IRI), Opti-Free RepleniSH, which has been on the market for a little over a year, rang up drug store sales of $21.6 million in the 12 months ended February 25, good for third place in the eye/lens care solutions category and a 5% category share. Sales of Opti-Free Express, the category leader with a 6.5% share, advanced 7.2% to $28.3 million.

The key to creating eye care markets and driving brands is doctor recommendations, say Alcon executives. Consumers are most influenced in their choice of products--whether for contact lens solutions or dry eye lubricants--at the doctor's office, they point out. Opti-Free RepleniSH and Alcon's Systane lubricant eye drops are the No. 1 doctor-recommended products in their respective segments, they note.

Systane is a fast-growing brand in a fast-growing category, the Alcon executives say. Dry eye treatment growth is being propelled by aging baby boomers, they note.

Systane was the fastest-growing branded artificial tear, up 43.9% in the IRI tracking period, a figure that dwarfed the increase in the total market. A recent study pitting Systane against 13 other lubricant eye drops showed that it was preferred nearly 2 to 1.2, according to Alcon.

The reading glasses category, meanwhile, is both growing and changing. With every baby boomer having passed age 40, presbyopia--the inability to focus on objects up close, for example, the printed word--is becoming commonplace in society. And reading glasses are therefore becoming as necessary for baby boomers as toothbrushes.

"After 40 you're basically doomed to presbyopia," says Mary Novie, senior product manager at Zoom Eyeworks Inc., which promises drug chains fashionable and innovative reading glasses usually sold only at optical and specialty stores.

"Just how many baby boomers are out there?" asks Novie, alluding to the often-quoted figure of 80 million. "That's a lot of presbyopia."

The appeal of Zoom products at Longs Drug Stores has provided a major boost for the business of both companies, notes Novie. The key to the chain's success with Zoom is "outstanding merchandising," she says.

EYE/LENS CARE SOLUTIONS

TOTAL DOLLAR SALES * $858.8 mil. (+7.2%)

                 DRUG STORES $465.1 mil. (+9.5%)

LEADING BRANDS **              Market    Dollar sales   Dollar sales
                               share          (000)        % change

Aicon Opti-Free Express          6.5%       $ 28,332    +       7.2%
Bausch & Lomb Renu MultiPlus     5.5%         23,875    -       9.3%
Alcon Opti-Free RepleniSH        5.0%         21,610         --
Alcon Systane                    4.9%         21,578    +      43.9%
AMO Complete Moisture Plus       3.2%         14,112    +      41.0%
Clear Eyes                       3.1%         13,689           27.7%
Allergan Refresh Tears           3.1%         13,608    -       0.1%
Similasan                        2.7%         11,683    +     104.5%
Allergan Refresh Plus            2.6%         11,426    +      14.0%
Ciba Vision Clear Care           2.4%         10,394    +      36.4%

TOTAL UNIT SALES * 129.1 mil. (+1.8%)

                 DRUG STORES 67.1 mil. (+4.4%)

                               Market    Unit sales      Unit sales
LEADING BRANDS **              share          (000)        % change

Alcon Opti-Free Express          5.8%          3,453     +     4.4%
Bausch & Lomb Renu MultiPlus     5.4%          3,222     -    11.1%
Clear Eyes                       5.0%          2,984     +    31.9%
Alcon Opti-Free RepleniSH        4.6%          2,754         --
Visine Advanced Relief           3.4%          2,051     +     0.7%
Visine                           3.3%          1,967     +     0.3%
Alcon Systane                    3.2%          1,921     +    44.4%
AMO Complete Moisture Plus       2.7%          1,605     +    38.8%
Similasan                        2.1%          1,230     +   103.6%
Alcon Opti-Free                  1.9%          1,154     +    34.2%

* Total of drug stores, supermarkets and discount stores excluding
Wal-Mart Stores Inc.

** In drug stores only. Private label products account for an 11.3%
dollar share and a 17.5% unit share.

Source: Information Resources Inc.

For the 52 weeks ended February 25, 2007.

EYE/LENS TABLETS & ACCESSORIES

TOTAL DOLLAR SALES * $45.8 mil. (+1.4%)

DRUGSTORES $26.2 mill. (+2.2%)

                              Market     Dollar sales    Dollar sales
LEADING BRANDS **              share         (000)         % change

Ocusoft                         10.9%          $2,914    +      17.0%
Magnavision                      9.6%           2,555    +      29.1%
Ciba Vision Eye Scrub            6.5%           1,738    +      17.8%
Pro Optics Optics Shop           5.9%           1,581    +       2.0%
AMO Ultrazyme                    4.9%           1,298    +      15.5%
Ciba Vision Aosept               4.8%           1,289    -      14.1%
Lami                             3.7%             984    -       2.3%
Coverlet                         2.9%             772    -       8.0%
Scunci Swipes                    2.5%             678    -       8.5%
Alcon Optizyme                   2.1%             556    +      11.6%

TOTAL UNIT SALES * 12.5 mil. (-0.4%)

DRUG STORES 7.4 mil. (-0.6%)

                              Market     Unit sales       Unit sales
LEADING BRANDS **              share        (000)          % change

Pro Optics Optic Shop           10.7%             792     -     3.7%
Magnivision                      9.1%             674     +    15.3%
Lami                             6.7%             496     -     2.5%
Ocusoft                          3.5%             255     +    13.9
No Brand                         3.3%             241     +    14.0%
Bausch & Lomb Sight Savers       3.2%             233     -    15.7%
Flents                           2.7%             195     +     8.3%
Ciba Vision Aosept               2.4%             179     -    15.2%
Scunci Swipes                    2.3%             172     -    14.8%
Ciba Vision Eye Scrub            1.7%             125     +    17.3%

* Total of drug stores, supermarkets and discount stores excluding
Wal-Mart Stores Inc.

** In drug stores only. Private label products account for a 26.2%
dollar share and a 36.4% unit share.

Source: Information Resources Inc. For the 52 weeks ended February
25, 2007.