Consumer Health Care | Sales by region
In 2009, Europe remained our most important region with sales of € 319 million, an increase of 4.1% over 2008. The majority of these sales, or € 308 million, were achieved in EU countries.
Number one in the French OTC market
France remained our top-selling country, posting sales of € 99 million, or 5.4% more than in 2008. Our subsidiary Merck Médication Familiale moved to first place in the market for prescription-free medicines not reimbursed by sickness funds. At the same time, the company maintained second place in the market for nutritional supplements. The metafolin product Femibion® performed well. With Bion Restore®, a further probiotic multivitamin product was launched under the Bion® brand. This product helps people restore their health, such as after a cold or the flu. It contains probiotics, zinc, histidine and vitamin C. Bion® is now the second-leading brand in the French OTC market with sales of more than € 30 million.
Currency effects in the United Kingdom
In the United Kingdom, our second most important market, we faced strong competition from store brands of major retail and drug store chains. The weakness of the British pound again led to negative currency effects in 2009. Sales declined here by 16% to € 54 million. Adjusted for currency effects and sales of the Petcare business, which we divested in 2008, the decline amounted only to 2.9%. We want to regain market share in the United Kingdom, for example by launching Femibion®. The range comprises five products for women united under one umbrella brand: Femibion® Healthy Pregnancy for pregnant women, Femibion® Energetic Mum for young mothers, Femibion® Radiance for a healthy appearance and attractive skin, Femibion® Balance, which helps to maintain healthy nutrition balance throughout the monthly cycle, as well as Femibion® Healthy Bones, which helps protect the bones from losing minerals and strength during menopause.
Kytta – a flagship product in Germany
Germany is our third largest market. Sales increased by 22% to € 56 million in 2009. The Kytta® products performed superbly. Above all, the plant-based Kytta® ointment for the relief of pain caused by contusions, strains and sprains delivered excellent results again and captured second place in this market segment. This was supported by an advertising campaign that included a television commercial that won numerous awards. With Femibion® we are the market leader in Germany. Particularly strong sales growth was achieved via online pharmacies, a distribution channel that appeals especially to the target group of young mothers.
Integration of Bio-Fyt in Belgium strengthens our position
In Belgium, the integration of Bio-Fyt, which we acquired at the end of 2008, was completed. The company focuses on products for mobility, women’s health and everyday health protection. Bio-Fyt was officially renamed Merck Consumer Health Care Belgium in September. The integration proceeded rapidly. Logistics systems were aligned and activities were fully merged. The Consumer Health Care division now has a strong presence in the four key health themes, has a larger sales force, and is one of the leading players in the Belgian OTC market. Consequently, sales in Belgium increased by 53% to € 27 million.
Business restructured in Spain
In Spain, the business was restructured following the sale of the biManán® brand of diet products. For example, Femibion® was launched, supported by a major marketing campaign. Femibion® is the official sponsor of “Plenufar”, a program that was initiated by the Spanish Federation of Pharmacists. This program promotes optimal nutrition for pregnant and nursing women and has a reach of 5,000 pharmacies.
Partnering with Bracco in Italy
Establishing our global strategic brands in Italy is the aim of an enhanced partnership with the Italian pharmaceutical company Bracco, which ranks among the top ten in the OTC market of Italy. Bracco has been a reliable partner to Merck for decades and enjoys a superb reputation among pharmacists, physicians and consumers. Cooperation is initially planned until 2014. Flexagil® was the first CH brand to be launched by Bracco. Two products from this range to treat joint problems were launched in April. Flexagil® Re-Generate2 helps to keep joints flexible and supple. Flexagil® Stop Friction supports mobility in people with osteoarthritis and other joint problems.
Within Europe, our businesses showed good growth in Austria, Portugal and Slovakia, among other countries.
A triple market launch in Mexico
In Latin America, we increased sales by 16% to € 89 million. Sales rose by 3.1% to € 6.9 million in Brazil. In Mexico, where sales totaled € 32 million, we launched three new products. These include Flexagil® Re-Generate3, a treatment for joint problems, and Sedalmerck® MAX, an analgesic containing the maximum concentration of paracetamol and caffeine permitted in an over-the-counter product sold in Mexico. We added a special cream to the Diabion® range of multivitamin products, which are specially formulated for people with diabetes, who often suffer from dry skin and other dermatological problems. Customers in Mexico have welcomed this new development. We entered the Canadian market with our first product, the probiotic multivitamin Multibionta®, also known as Bion®3 in other countries.
Cooperating with hospitals in China
In China, an important growth market, we established an independent legal entity within one year and achieved sales of € 6.1 million in 2009. The division is capturing market share slowly but steadily, as for example with the launch of Diabion® for people with diabetes. At the same time, we are living up to our social responsibility. A good example of this is the cooperation agreement with the Chinese Medical Doctors Association (CMDA) to improve nutritional counseling in hospitals in China. Sales in Indonesia, the division’s most important market in Asia, remained stable at € 11 million. In South Africa, our most important market in Africa, sales increased sharply by 28% to € 7.1 million.
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