Strong growth for store brand vitamin maker

Related tags Nutrition Retailing

Good growth for supermarket brand vitamin and drug maker Perrigo
reflects the growing role of the mass market both in its home
market, the US, and the UK.

The company, which claims to be the US' largest manufacturer of OTC and nutritional products sold under retailers' own brands, said sales climbed 8 per cent over 2003 to $898.2 million while operating profit was up by 21 per cent.

The revenue growth was largely attributed to new product launches, both in the OTC and nutritional sectors, while the recently acquired UK firm Peter Black is already contributing to earnings, generating $8 million in revenue in the fourth quarter.

Perrigo's nutrition and vitamin business makes about 20 per cent of the entire consumer healthcare profits and is generally worth about $150 million in annual sales. In 2003, sales reached $144 million.

"The nutrition and vitamin sector is a viable part of our business and we are attempting to grow it,"​ investor relations manager Ernest Schenk told NutraIngredients.com.

Last year Perrigo launched two own brands and acquired the licence to Sesame St for a new range of children's vitamins, currently being rolled out in the US.

But while the UK operations, which also include OTC manufacturing, doubled in revenue over the year, they recorded operating losses of $1.4 million, related to integration of the new business.

They did however make a tenth of the company's overall sales and Schenk said Perrigo is keen to enlarge its presence in the UK, as well as Mexico, "as they both have good store brand vitamin names".

He added that WalMart is the firm's largest customer. The retailing giantalso owns the UK's Asda supermarket chain, now the country's second biggest.

Peter Black Healthcare had a 3 per cent share of the UK vitamins market in 2002, according to Mintel data.

Perrigo is also seeking to enter the generic drug business, which will include further acquisitions.

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