Treatments run ahead of the foot care pack in sales growth

Drug Store News, May 22, 2000 by Rob Eder

While the drug channel finished 1999 ahead just 1.1 percent in the foot care category, chains fared far better than independents. The growth curve among pharmacy chains was 3.3 percent, as activity in athletes foot remedies picked up the slack for the lack of activity in insoles.

On the devices side of the business, it seems that the innovative insole launches of Dr. Scholl's, Implus and ProFoot that redefined the business in drug in 1997 and 1998 continued to drive major growth in food and mass in 1999. While devices were all but flat last year in the drug channel--up 1.2 percent among chains, down 0.9 percent in drug as a whole--the segment was up 5 percent in food and 11.9 percent in mass.

In general, the majority of the growth in the category came from the treatments segment. Indeed, brand leaders Lotrimin, Tinactin and Desenex needed to clear out some space in the top five for the early 1999 Rx-to-OTC switch of Novartis' Lamisil cream. In less than a full year on the shelves, the OTC Lamisil generated sales of more than $30 million, claiming the No. 3 branded spot in the category. In the drug channel, Lamisil finished 1999 with sales of more than $13 million.

While the Lamisil switch borrowed some share points from the other brand leaders, its affect on the business was more than mere category cannibalization. In all, treatments were up almost 10 percent in food, drug and mass. The gains were enough to help further close the gap between devices and treatments, which generated total dollar volumes of $346 million and $307.5 million, respectively.

But there was more behind the growth in treatments than just the launch of OTC Lamisil. Certainly, there is no discounting the influence fashion has had as well, as the sandal trend seems to continue unabated. The movement has placed a higher premium on foot care, particularly the grooming side of the business. Sales of Dr. Scholl's Pedicure Essentials climbed 143 percent in drug, becoming a $1.36 million brand in the channel within its first full year on the shelves. Overall, Pedicure Essentials amassed more than $3.8 million last year in all channels combined.

Dr. Scholl's Fungi Solution also made major strides in drug, climbing 50.2 percent. However, the leader in OTC toenail fungus treatments remains the Fungi Nail brand, which finished 1999 with sales of more than $3 million, ranking it the No. 7 brand in treatments sold through the drug channel.

                          Drug chain performance:
                                 foot care
           1999 $ sales % change
           in thousands vs. 1998
Foot care    $204,361      3%
  products
Source: Information Resources Inc. for the 52 weeks ended Jan. 2, 2000
                        Three-channel performance:
                                 foot care
                       Drug [*]     Food         Mass
                   1999 $ sales 1999 $ sales 1999 $ sales
                   in thousands in thousands in thousands
Foot care products   $268,221     $148,205     $237,156
(*.)Includes independent drug stores
Source: Information Resources Inc. for the 52 weeks ended Jan. 2, 2000