Chattem Gold Bond Bolstered With Three New Products Shipping In 2003
This article was originally published in The Rose Sheet
Executive Summary
Chattem is looking to three new Gold Bond line extensions to drive double-digit growth in the brand
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Chattem is looking to three new Gold Bond line extensions to drive double-digit growth in the brand. Gold Bond Antifungal Swabs for the treatment of athlete's foot, along with Gold Bond First Aid Antiseptic Wipes and Gold Bond First Aid Antiseptic Quick Spray to treat minor cuts, scrapes, insect bites and sunburns, will begin shipping in the first quarter of 2003, Chattem announced at a Banc of America Securities Conference in San Francisco, Sept. 26. While recent additions to the line, including the launch of Gold Bond Foot Spray earlier this year, helped drive the brand's revenues up about 10% for the fiscal third quarter ended Aug. 31, Chattem predicts a more conservative increase of 5% to 6% for the year. During a Sept. 27 analysts call, CEO Zan Guerry noted the new athlete's foot product employs the same "hands free" swab delivery system used in pHisoderm Clear Swab (1 (Also see "Chattem Phisoderm Clear Swabs Launch Will Target “Back-To-School” Crowd" - HBW Insight, 1 Apr, 2002.), p. 7). In addition, Chattem has strengthened the brand by repackaging the Gold Bond Lotion "with a softer, rounded-shoulder bottle that gives it, we think, a little more appeal to women, who are the principal purchasers of lotions," President and Chief Operating Officer Alec Taylor said. Chattem also will seek to expand international sales of its brands by exploiting markets where Selsun Blue medicated dandruff shampoo brand is strong. The firm's contract with Abbott Labs, from which it purchased Selsun, states that by March 2004 all international distribution is to be turned over to Chattem, Taylor said. The company has entered into multiple agreements for immediate Chattem-controlled distribution of Selsun Blue in Mexico, Australia, the Far East and South Africa. The agreements were drafted to allow Chattem "to springboard or piggyback other Chattem brands into those markets," Taylor said. The firm will focus advertising in the UK, Italy and Canada, where Selsun has been "under marketed," Taylor said. Chattem is attempting to get a 1% selenium sulfide version of the shampoo approved for "general sales list" status in the UK; presently the dandruff shampoo is only available in "pharmacy" status in a 2.5% selenium sulfide formulation. |