Consumer Health Care | Sales by region
Growth in Europe – the key market
Europe remains the most important market for the Consumer Health Care division. 70% of total revenues were generated in this region. Sales in Europe increased slightly by 3.0% over the previous year. France and the United Kingdom were the key markets, generating sales of €90 million and €77 million respectively, followed by Germany with €40 million.
The French subsidiary Merck Médication Familiale recorded a 4.6% increase in sales mainly as a result of the continued strong performance of the probiotic multivitamin brand Bion®3, sales of which rose by 73%. This was a solid performance given a generally declining market.
Sales in the United Kingdom fell by 11%. Business continued to be impacted in 2007 by the withdrawal of certain Seven Seas fish oil products, which took place in the first quarter of 2006, due to an impurity found in an ingredient from a third-party supplier.
Sales increased by 14% in Germany. This was driven mainly by the continued success of strategic brands, for example Femibion®. Sales of this vitamin product, targeted to pregnant women, grew by 44%. The cold remedy Nasivin® was also very successful on the German market, with sales up 19%, while Kytta® ointment generated year-on-year sales growth of 13%.
Business developments were strong in Poland. Sales rose by 21% thanks to a 22% increase in sales of Nasivin® and the successful launch of a Kidabion® product line extension. Growth of 9.0% in Belgium was due, among other things, to the increase in Omnibionta® sales. Under this brand name, Merck launched a women’s health product containing Metafolin® (Femibion®) and a probiotic multivitamin product for everyday health protection (Bion®3) in this market.
Sustained success in Latin America
In Latin America, sales increased by 17%. Sales in Venezuela rose sharply by 49% thanks to the success of Cebion® and the fish oil product Maxepa®. In Mexico, the largest market for CHC in the region, the division continued to build on the sustained success of its strategic brands. For example, sales of Diabion®, a product specifically designed for people who either have or are at risk of developing diabetes, increased by 12%.
By contrast, sales in Asia, Africa and Australasia remained stable. Sales in India were strong (+21%). In Indonesia, sales grew slightly by 3.4% despite supply chain problems there, which had a negative impact on business with the vitamin product Sangobion®.
Expanding in Japan and China
The Consumer Health Care division intends to consolidate its strong position in the global consumer health care market by targeting the expansion of its brands in key markets. This will be complemented by investments in new and highly promising markets such as Japan and China. For example, Bion®3, the division’s flagship product has been available in Japan since June 2007. It is marketed there by SATO Pharmaceutical, the sixth leading consumer health care company in Japan. Kidabion® multivitamin syrup, a children’s brand, was launched in China in the fourth quarter of 2007.
CHC will continue to expand the business by strengthening its strategic brands. In addition, innovative concepts are currently being tested in order to extend the reach and relevance of these brands. According to forecasts by Nicholas Hall, the volume of the global consumer health care market will grow to €72 billion by 2011, corresponding to annual growth of around 4.7%. The Consumer Health Care division expects the growth of its total revenues to continue to exceed this sector average.
