New Brunswick, NJ
www.jnj.com

Sales: $7.7 billion for personal care products

Corporate sales rose 13.6% last year to $93.8 billion. Consumer health sales improved 4.1% to $14.6 billion. Taking a closer look at categories in Happi’s field, skin health/beauty sales rose 2.0% to more than $4.5 billion. Growth was primarily due to covid-19 recovery, strong performance from Neutrogena and Aveeno, and e-commerce acceleration partially offset by the divestiture of Dr. Ci:Labo – Sedona business in Asia Pacific and external supply constraints. Oral care sales rose 0.2% to over $1.6 billion. The slight gain came from US market growth and a strong performance in the Asia Pacific region due to successful brand building and promotional campaigns and the positive impact of currency offset the negative impact of the floss divestiture and YS external supply constraints. Baby care sales increased 3.2% to more than $1.5 billion. Aveeno, e-commerce strength in Asia Pacific and pandemic recovery all contributed to the gain.

For Q1, 2022, corporate sales rose 5% to $23.4 billion. Consumer health sales fell 1.5% to just under $3.6 billion. J&J blamed the decline, in part, to external supply constraints that primarily affected its skin health/beauty business.

In May, J&J announced the appointment of Thibaut Mongon as chief executive officer designate and Paul Ruh as chief financial officer designate of the future for the New Consumer Health Company. As announced in November, 2021, the separation will create two global leaders—the new Johnson & Johnson and the New Consumer Health Company—that are better positioned to deliver improved health outcomes for patients and consumers through innovation, pursue more targeted business strategies and accelerate growth.

According to J&J, the separation will achieve the following key goals:

• Increase management focus, resources, agility and speed to effectively address differing industry trends and to better meet the needs of the new Johnson & Johnson and the New Consumer Health Company patients and consumers;
• Further focus capital allocation based on the objectives of each independent company;
• Provide each company with a compelling financial profile that more accurately reflects the strengths and opportunities of each business and, as a result, offers investors a more targeted investment opportunity; and
• Align corporate and operational structures so each company is better able to drive growth and value creation.

Neutrogena will play a key part in The New Consumer Health Co.

The New Consumer Health Company will include brands such as Neutrogena, Aveeno, Johnson’s and Listerine, as well as Band-Aid and Tylenol.

According to J&J The New Consumer Health Company will benefit from a strong investment grade profile and balance sheet that would allow it to build on its long history of innovation and maintain and extend its leadership position across important and growing categories. This leadership transition will occur upon completion of the planned separation of the Consumer Health business, expected to occur in 2023.

Mongon has more than 20 years of global experience at J&J. He has served as executive vice president and worldwide chairman of consumer health at Johnson & Johnson since 2019. According to J&J, Mongon is the driving force behind the strong business momentum and world-class capabilities in the Consumer Health segment.

“I couldn’t be more pleased to announce the appointment of Thibaut as CEO designate. Thibaut is a visionary and respected global leader, whose consumer-centric mindset has repeatedly propelled the business forward,” said Alex Gorsky, executive chairman.

Ruh is a seasoned global financial executive with deep experience in the consumer-packaged goods (CPG) industry. He joined J&J five years ago to become the CFO of the consumer health business. He came from PepsiCo, having held the position of CFO of Latin America from 2015 until January 2017.

“With Thibaut at the helm, we can expect the New Consumer Health Company to remain mission driven with iconic and science-backed brands,” notd CEO Joaquin Duato.

New Brunswick, NJ
www.jnj.com

Sales: $7.6 billion for personal care products

Corporate sales: $82.6 billion

Neutrogena added some new products this year like Neutrogena Healthy Scalp Clarify & Shine Scalp Scrub. This clarifying hair care blend features pink grapefruit and vitamin C.

J&J’s Johnson’s baby powder

Did you hear the news? J&J is spinning off its consumer products business from its pharma/medical device activities. The announcement was made on November 12, 2021.

In 2020, Johnson & Johnson was rightfully focused on things other than personal care. The company has played a critical role in the fight against COVID-19. In February, the US Centers for Disease Control approved J&J’s single-dose coronavirus vaccine for emergency use. At the time, observers considered it a breakthrough for reaching vulnerable and isolated Americans. The J&J vaccine didn’t require a follow-up shot, was more easily stored and became popular on college campuses, in door-to-door campaigns and with harder-to-reach communities that often struggle to access health care. Unfortunately, through mid-June only 11.8 million doses were administered in the US—that’s less than 4% of the total. States had warned for weeks that they may not find recipients for millions of doses that will soon expire, partly because the vaccine’s appeal dropped after it was linked to a rare but serious blood-clotting disorder and injections were paused for 10 days in April. The vaccine took another hit when regulators told Johnson & Johnson that it should throw out tens of millions of additional doses produced at a plant in Baltimore because they might be contaminated.

Last year, J&J’s corporate sales fell less than 1%, but the consumer health business dropped more. Skin health/beauty sales dropped 3.1% to $4.5 billion. J&J blamed the decline on negative COVID-19 related impacts and SKU rationalization partially offset by growth in e-commerce and new product innovation. Oral care sales rose 7.4% to $1.6 billion. The increase was due to Listerine mouthwash sales through e-commerce and club channels, increased stocking demand related to COVID-19 and new product launches in Asia Pacific. Baby care sales fell 9.4% to $1.5 billion. According to J&J, the decline was primarily due to COVID-19 related impacts, SKU rationalization and the Baby Center divestiture in the US, partially offset by strength in Aveeno baby.

Last year, J&J launched Neutrogena Studios, its first dedicated branded content studio. The project is designed to “create compelling and relevant stories that educate about the science behind skin health, celebrate beauty for all and inspire people to action.” Through feature documentaries and scripted shorts, Neutrogena Studios is trying to represent and illuminate diversity and inclusion, according to J&J.

For the first quarter of 2021, corporate sales rose nearly 8% to more than $22.3 billion. Skin health/beauty sales rose 4.1% to more than $1.1 billion. Oral care sales increased 5.7% to $417 million and baby care sales increased 7.7% to $389 million.

New Brunswick, NJ
www.jnj.com
Sales: $7.7 billion
Note: $7.7 billion for personal care products. Corporate sales: $42.1 billion

In the end, talc just wasn’t worth saving. Facing thousands of lawsuits charging its talc-based baby powder caused cancer, Johnson & Johnson announced in May that it was discontinuing North American sales of its talc-based baby powder. Baby powder made with cornstarch remains on-shelf, of course, and the company will continue to sell talc-based powder in other parts of the world.

According to J&J, as part of a portfolio assessment related to COVID-19, in March, the consumer health business stopped shipping hundreds of items in the US and Canada to prioritize high-demand products and to allow for appropriate social distancing in manufacturing and distribution facilities during this unprecedented pandemic. Following this action, the company decided to permanently discontinue approximately 100 SKUs from the March assessment, as well as talc-based Johnson’s Baby Powder. This discontinuation is only effective in the US and Canada. Johnson’s Baby Powder represents approximately 0.5% of the total US consumer health business. Demand for talc-based Johnson’s Baby Powder in North America has been declining due in large part to changes in consumer habits and fueled by misinformation around the safety of the product, according to the company.

Despite the move, J&J maintains it remains confident in the safety of talc-based Johnson’s Baby Powder and will continue to vigorously defend the product, “its safety, and the unfounded allegations against it and the company in the courtroom,” the company said in a statement. “All verdicts against the company that have been through the appeals process have been overturned.”

Production of talc-based Johnson’s Baby Powder in the US and Canada is winding down and existing inventory will continue to be sold through retailers until it runs out. Cornstarch-based Johnson’s Baby Powder will remain available in North America. Both types of Johnson’s Baby Powder, will continue to be sold in other markets around the world where there is significantly higher consumer demand for the product. Importantly, Johnson & Johnson said it remains fully committed to its Johnson’s Baby brand.

For the first quarter of 2020, corporate sales rose 3.3% to nearly $20.7 billion. Skin care sales rose 2.5% to $1.1 billion, but while US sales jumped 12.1%, international sales fell 8.8%. Skin care sales were driven by Neutrogena and Aveeno sales, and partially offset by COVID-19 related impacts in the Asia-Pacific region.

Oral care sales rose 7.6% thanks to increased sales of Listerine products. Baby care sales fell 8.2%, due to declines in Asia Pacific and Europe, partially offset by a sales increase in Aveeno Baby.

The results follow on the heels of a mediocre 2020, when corporate sales increased just 0.3%. However, beauty care sales rose 4.8%. Growth was primarily driven by incremental sales from the acquisition of Ci:z Holdings Co., Ltd., (Dr.CI:Labo) in Japan as well as increased sales of Neutrogena and Aveeno products, partially offset by the divestitures of RoC and Nizoral in fiscal 2020.

On the downside, baby care sales fell 9.9% due to competitive pressure on the Johnson’s brand. Oral care sales fell, too, declining 1.7% as growth of Listerine mouthwash and Ready!Tabs outside the US, was offset by share declines and retailer destocking in the US.

J&J’s Neutrogena brand unveiled a revamped Neutrogena Skin360 app which doesn’t need a separate skin scanning tool. It features Neutrogena AI Assistant (NAIA), which builds a relationship with users by initiating a text conversation to determine their skin care personality, approach to skin care and their current routine.

New Brunswick, NJ
www.jnj.com
Sales: $7.7 billion

Sales: $7.7 billion for baby, beauty and oral care products. Corporate sales: $81.6 billion.

The talc controversy engulfing J&J is more than just a dust-up. In May, a US district judge dismissed the company’s request to get 2,400 state-court cancer lawsuits tied to its baby powder immediately transferred to a federal court in Delaware, where it could launch a single defense strategy. J&J faces more than 14,000 claims that its talc products caused ovarian cancer or mesothelioma, a rare cancer linked to asbestos exposure. The company denies its products ever contained the carcinogen and argues talc doesn’t cause the life-threatening illnesses. In May, J&J was ordered to pay $300 million in punitive damages to a woman who blamed her rare asbestos-related cancer on the company’s talc-based products.

Johnson & Johnson, of course, is much more than talc. It operates in three segments: consumer, pharmaceutical and medical devices. The consumer segment offers baby care products under the Johnson’s brand; oral care products under the Listerine brand; beauty products under the Aveeno, Clean & Clear, Dabao, Johnson’s Adult, Le Petite Marseillais, Neutrogena and OGX brands; and a range of OTC medicines.

In 2018, corporate sales rose 6.7% to $81.6 billion. Beauty care sales rose 4.3% to nearly $4.4 billion. Growth was driven by Neutrogena, OGX and Aveeno in the US as well as the strength of Dr.Ci:Labo and Dabao products outside the US.

Baby care product sales fell 3% to $1.8 billion, due to a decline in market share for Johnson’s baby products and increased trade promotion due to the relaunch of Johnson’s Baby. Oral care sales rose 1.6% to $1.6 billion, thanks to several new introductions.

“Johnson & Johnson delivered another year of strong operational sales growth of 6.3% and achieved our 35th consecutive year of adjusted operational earnings growth at 9.8% in 2018. This can be attributed to accelerated underlying sales performance across each of our businesses, where we also leveraged our scale across the enterprise to improve margins,” said Chairman and CEO Alex Gorsky.

Unfortunately, 2019 got off to a rough start. Baby care sales fell 14% to $394 million and oral care sales declined 3.1% to $367 million. Beauty care sales were the lone, albeit dim, bright spot, rising a scant .6% to nearly $1.1 billion.

J&J sold the RoC skin care brand earlier this year to Gryphon Investors.

New Brunswick, NJ
www.jnj.com

Sales: $7.4 billion for baby beauty and oral care products. Corporate sales: $76.5 billion.

Corporate sales increased 6.3%, due in large part to an 8.0% volume gain, but sales of baby, beauty and oral care products taken together, were flat.

The good news is that beauty sales continue to shine. Sales rose 7.8% last year to $4.2 billion. Most of the growth came from sales of the recently-acquired Vogue International and Dr. Ci: Labo, but the company also cited sales gains for its Neutrogena franchise.

Baby care sales fell 4.2% to $1.9 billion, which J&J blamed on competitive pressure, which was also blamed, in part, for a 4.2% dip in oral care sales.

In a recent presentation to analysts, Jorge Mesquita, executive vice president, worldwide and chairman, J&J Consumer, noted several consumer trends including healthy beauty, aging population, naturals/organics and an emerging middle class. Those and other trends provided a tailwind for several years as J&J Consumer posted a 3.4% CAGR from 2014 to 2016. Last year, however, sales slowed as category growth decelerated and customers around the world reduced their inventory. But Mesquita is confident that recent moves, including the acquisitions of Dr. Ci:Labo, Vogue International, La Lumiére and NeoStrata, will help to quickly turn things around.

For the first quarter of 2018, J&J’s beauty sales rose 10.4% to nearly $1.1 billion. Baby care sales, which includes powder, fell 14.2% to $97 million. To get the baby care sales growing again, J&J is relaunching its baby franchise. The new lineup includes baby powder with cotton; in addition, J&J will continue to offer its talc and cornstarch variant. The move is a response to a 20% decline in sales during the past seven years, as more parents worry about talc and other ingredients that they put on their baby. In recent years, J&J has fought hundreds of lawsuits that contend Johnson’s Baby Powder causes ovarian cancer.

Even with the legal issues, J&J remains the global leader in the category, but has redesigned the line and will introduce it to stores in next month.

“Perhaps because of our success, we became a bit complacent and did not want to mess with success, for lack of a better expression,” explained Mesquita, who oversees J&J’s $13 billion global consumer unit, in an interview with CNBC. “Frankly, we failed to see evolving needs from millennial consumers, millennial moms, and we failed to evolve our model.”

According to Trisha Bonner, associate director of research and development at J&J Consumer, moms want fewer, simpler ingredients, more naturally derived ingredients in their products.
As a result, J&J is cutting the number of ingredients in the new Johnson’s Baby line by half, eliminating dyes and sulfates and replacing ingredients like mineral oil with coconut oil. J&J also changed the packaging to add pumps to many of its products to make them easier to use while holding a baby.

Baby wash products are also designed to leave less residue.

The packaging will be changed to make it easier to recycle, and will include instructions on how to do so. Finally, J&J will share information online about the ingredients in fragrances. It will still use both synthetic and natural fragrances.

J&J insists changes are being made, not because of safety issues, but because that’s what customers wanted.

“We are absolutely certain that science shows that our talcum product is safe, and we will defend our brand and defend our product,” Mesquita said. “But we’re always innovating, we’re always trying to evolve and upgrade.”

Mesquita said he expects the reboot to improve profit margins because of a simplification of its supply chain. He declined to provide specific estimates.

“We’re very convinced that this restage will get Johnson’s Baby back to growth,” he said.

New Brunswick, NJ
www.jnj.com

Sales: $7.4 billion for oral and personal care products.

Corporate sales: $71.9 billion.

Johnson & Johnson’s primary businesses, medical devices and pharmaceuticals, account for about two-thirds of the company’s nearly $72 billion in annual sales. But the company continues to make investments in consumer brands, witness last year’s acquisitions of Vogue International and Neostrata, which are already paying dividends.

Beauty care sales jumped 7.3%, due in part to a 4.6% contribution from Vogue International. Gains from Neostrata, Neutrogena, Aveeno and Dabao boosted beauty care sales, too, to help offset a negative currency impact of 2.1%.

Baby care sales fell 7.2% to $2.0 billion. J&J blamed the decline on heated competition, partially offset by sales of Aveeno baby products.

Oral care sales dipped 0.8%, as a 2.0% gain in sales was more than offset by a negative currency impact of 0.8%. Listerine provided a lift to sales, thanks to the introduction of new products and successful marketing campaigns.

In January, J&J Innovation LLC (JJIL), invested in S-Biomedic, which is focused on the microbiome-based solutions for skin care. S-Biomedic has developed a method to directly modulate the skin microbiome with applications in dermatology and the cosmetic industry. Last year, JJIL launched JLINX to identify and nurture early stage companies with the potential to transform human health. Launched in partnership with Bioqube Ventures and located on the Janssen R&D Campus in Beerse Belgium, JLINX offers startups a spectrum of flexible resources and approaches to grow and collaborate across the European life science ecosystem.

In March, J&J struck a blow for science when a jury rejected a lawsuit in which the plaintiff claimed Johnson & Johnson baby power contributed to her ovarian cancer. The announcement marked a victory for J&J following three similar lawsuits in St. Louis in which juries awarded a total of $197 million to plaintiffs who had made similar claims.

For the first quarter of 2017, consumer product sales increased 1% to $3.2 billion, but that total includes OTC products that are beyond Happi’s scope.

New Brunswick, NJ
732.524.0400
www.jnj.com

Sales: $7.1 billion for baby, oral and skin care products. Corporate sales: $70.1 billion.

Johnson & Johnson struck a victory pose this spring when it acquired Vogue International for $3.3 billon. Vogue markets an array of personal care brands, including the OGX collection of shampoos, conditioners, treatments, styling products, body care and bath products; the FX line of hair styling products, and the Proganix and Maui Moisture hair care lines. Vogue’s annual sales are estimated at $300 million.

“Our acquisition of Vogue International’s full line of leading advanced hair care products sold in the US and in 38 countries will strengthen our global presence in this important category,” said Jorge Mesquita, worldwide chairman, consumer, Johnson & Johnson. “Vogue International’s commitment to quality, innovation, and consumer preference complement our consumer portfolio, while also presenting attractive hair care category growth opportunities for Johnson & Johnson.”

The closing is subject to antitrust clearance and other customary closing conditions. The transaction is expected to close during the third quarter of 2016. The acquisition comes at a time when J&J could use a boost.

J&J’s skin care sales fell 6% last year to $3.5 billion, due to negative currency impact. Higher sales of Neutrogena and Aveeno were offset by lower sales in in China.

Sales of baby care products fell 8.7% to $2.0 billion. Sales gains of 1.2% were wiped out by currency’s impact of 9.9%.

Oral care sales fell 4.1% to $1.6 billion, as growth of 5.2% was offset by negative currency impact of 9.3%.

For the first quarter of 2016, baby care sales fell 11.7% to $451 million, and oral care and skin care sales each dropped 4.5% to $385 million and $862 million, respectively.

New Brunswick, NJ
732.524.0400
www.jnj.com

Sales: $7.6 billion for baby, oral and skin care products. Corporate sales: $74.3 billion.

J&J’s primary businesses are devoted to medical devices and pharmaceuticals, but the company has an extremely healthy personal care business unit, too. Skin care sales rose 1.5% to $3.8 billion, due to strong sales of Aveeno, Neutrogena and Dabao. Baby care sales fell 2.4% to $2.2 billion, due to Forex woes that more than offset sales gains in Latin America and Asia. Oral care sales increased 1.5% to $1.6 billion, driven by increased sales of Listerine products, as well as new product launches.

J&J’s consumer product business has a new, high profile leader, now that Jorge Mesquita is the worldwide chairman of the unit. Mesquita, who joined J&J in December, began his career with P&G in 1984 and became group president for new business creation and innovation in 2012. As group president for global fabric care from 2007-11, he oversaw the introduction of Tide Pods.

While CEO Alan Gorsky boasts that J&J has 10 new pharma  products with $1 billion potential in its pipeline, the firm has done an excellent job rolling out novel formulas in the HABA space.  For example, new Listerine Mouthwash with LAE technology (Ethyl Lauroyl Arginate HCl), coats the teeth with a protective shield to stop bacteria from attaching. It restores gums to a healthier state in as little as two weeks and cuts gingival bleeding by more than 50% in just four weeks. Last year, the product debuted in the EMEA (UK, Ireland, Norway, Finland, Czech, Hungary, Slovakia, Poland and Spain) region and a global rollout is underway.

Last year, J&J rolled out Soft & Shiny, a three-step hair care regimen for tight curls and dry hair. The line is available in South Africa, Kenya, Angola and Zambia with Nigeria, Tanzania and Ghana are being added this year. According to J&J, the launch brought new users into the hair care category and produced a 31% category growth.

New Brunswick, NJ
732.524.0400
www.jnj.com

Sales:  $7.6 billion for baby, oral and skin care products. Corporate sales: $71.3 billion.

While corporate sales were up 6.1%, sales of products in Happi’s field rose less than 3% last year. Skin care sales increased 2.4% to $3.7 billion, thanks to strong results from the Neutrogena, Aveeno and Dabao brands. Baby care sales were up 1.8% to nearly $2.3 billion, on the strength of hair care and baby cleanser sales outside the US, as well as the sale of products from Shanghai Elsker Mother & Baby Co., Ltd., a well-regarded Chinese baby care brand J&J acquired last year. However, oral care was essentially flat at $1.6 billion, as increased sales of Listerine outside the US were partially offset by lower toothbrush sales.

In January, J&J announced that it had removed formaldehyde from its baby shampoo and plans to remove the material from its entire product line by 2015.

For the first quarter of 2014, consumer product sales fell 3.2% to $3.6 billion; but Aveeno and Dabao skin care sales rose.

New Brunswick, NJ
732.524.0400
www.jnj.com

Sales: $7.4 billion for baby, oral and skin care products. Corporate sales: $67.2 billion. Net income: $9.6 billion.

Corporate sales rose 3.4% last year, but sales of oral, baby and skin care products fell 3%.
Taking a closer look at these segments, skin care sales fell 2.6% to $3.6 billion, as increased sales of Neutrogena were offset by competition and economic conditions outside the US. Sales of baby care products dropped 3.7% to $2.3 billion due to a decline in US sales and the impact of negative currency exchange rates. The decline was partially offset by sales of hair care products and wipes outside the US. Oral care sales were flat at $1.5 billion. Increased sales of Listerine products outside the US were offset by competitive pressure inside the US.

In November, Alex Gorsky was elected chairman. He succeeded Bill Weldon who retired March 31, 2013.

For the first quarter, the company reported sales rose 8.5% to $17.5 billion. Net income was $3.5 billion. Worldwide consumer product sales rose 2.2% to $3.7 billion as Johnson’s baby care, Listerine mouthwash and Neutrogena skin care products all contributed to the increase. During the quarter, J&J (China) completed the acquisition of Shanghai Elsker Mother & Baby Co., Ltd., which is billed as a well-regarded baby care company with a strong position in the naturals segment.

Last August, the company launched SafetyandCareCommitment.com, an initiative to help consumers better understand all the measures the company takes to make its beauty and baby care products as safe as can be.

“There’s a public discussion underway about the ingredients in beauty care products, and we think it’s important to be part of that,” said Susan Nettesheim, VP of product stewardship and toxicology for Johnson & Johnson Consumer Companies, Inc. “Consumers today expect more information and greater transparency than ever before and we’re always listening to the people who use our products. On this site, we’ll do our best to explain how we make the choices we make, and to show how our plans incorporate consumers’ feedback. We want all consumers to see for themselves how and why every one of our products can be used with peace of mind.”

The SafetyandCareCommitment.com site includes information about how ingredients are selected and evaluated, and provides details on the company’s “gold standard safety assurance process.”

New Brunswick, NJ
732.524.0400
www.jnj.com
Sales: $7.7 billion for skin, baby and oral care products.
Corporate sales: $65 billion.

Corporate sales rose 5.6% after two years of declines. Consumer sales rose 2% to $14.9 billion, but operating profit fell 10.5% to $2 billion, due primarily to the recall of several OTC products.
Taking a closer look within the consumer health care business, sales of skin care products jumped 7.6% in 2011 to $3.7 billion due to gains from Neutrogena, Dabao, Johnson’s Adult and Le Petit Marseillais.

Aveeno expanded its collection with this Intense Moisture variation.

Baby care sales rose 5.8% to $2.4 billion on the strength of cleanser, wipe and hair care sales.

Finally, oral care sales rose 6.4% to $1.6 billion thanks to higher sales of Listerine.

J&J said it spent $659 million on consumer product research last year.

For Q1 2012, corporate sales declined 0.2% to $16.1 billion, but the company noted that Neutrogena and some oral care products posted gains in the quarter. More specifically, global consumer healthcare sales fell 2.4% to nearly $3.6 billion in Q1. Skin care sales rose 0.9% to $907 million. Oral care sales declined 1% to $387 million and baby care sales fell 3.7% to $540 million.

The big personnel move, of course, was vice chairman Sheri S. McCoy’s April resignation to become CEO of Avon Products.

New Brunswick, NJ

732.524.0400

www.jnj.com

Sales: $7.2 billion

Sales:

$7.2 billion for skin, baby and oral care products. Corporate sales: $61.6 billion. Net income: $13.3 billion.

Corporate sales fell less than 1% last year. Net income rose nearly 9%. Sales of skin, baby and oral care sales rose less than 2%.

By segment, skin care sales totaled $3.5 billion, a decline of less than 1%, which the company blamed on a temporary reduction in shipments of Neutrogena products due to product supply constraints partially offset by growth in the Aveeno, Johnson’s Adult, Le Petit Marseillais and Dabao skin care lines.

Oral care product sales fell 2.7% to $1.5 billion, primarily due to the divestiture of Efferdent and Poligrip and lower sales of mouth rinses and toothbrushes in the US.

However, baby care sales rose 4.4% to $2.2 billion, due to growth in the Asia Pacific region.

Last August, J&J rolled out Johnson’s Natural, a new line of products featuring at least 98% plant and fruit-derived natural ingredients and the brand’s iconic No More Tears formula. The line consists of a foaming baby wash, baby shampoo, baby lotion, a 2-in-1 hand and face foaming wash for kids and a 3-in-1 shampoo, conditioner and body wash. Products are scented with Johnson’s Allerfree fragrance, which contains subtle notes of white floral, powder and vanilla scents, which is naturally derived and free of known allergens and irritating essential oils, according to the company.

“Johnson’s is a leader in developing baby products that are mild and gentle to meet the different needs of all moms and caregivers,” said Rich Hildebrandt, group product director for the brand. “We’re thrilled to provide moms with trusted, natural products that are affordable and available at mass retail. Not all natural products are suitable for children, but the new line by Johnson’s is not only designed specifically for babies, it also won’t break the bank.”

To support the launch, the company created www.johnsons-natural.com, and has teamed up with the National Wildlife Federation in support of their efforts to inspire families to spend more time outdoors in nature.

For the first quarter of 2011, corporate sales rose 3.5% to $16.2 billion. Net earnings were $3.5 billion.

Earlier this year, J&J launched Wet Skin Sunblock, the first line of sun care products that can be applied directly to wet skin.

New Brunswick, NJ
732.524.0400
www.jnj.com
Sales: $7.1 billion

Sales:
$7.1 billion for skin, oral and baby care products. Corporate sales: $61.9 billion. Net income: $12.3 billion

Corporate sales fell nearly 3% and even J&J’s normally fast-growing consumer products unit couldn’t outrun the recession as sales dropped 1%. Taking a closer look at Happi’s markets, skin care sales grew 2.5% to $3.5 billion in 2009. The gain was primarily due to the Aveeno, Neutrogena and Dabao skin care lines. Baby care sales fell 4.5% to $2.1 billion, primarily due to the negative impact of currency and lower sales for Babycenter.com as a result of exiting the online retail business. That decline was partially offset by growth in the hair care product line.

The good news is that things started to turn around in 2010. First quarter corporate sales rose 4% to $15.6 billion. Worldwide consumer sales rose 1.5% to $3.8 billion for the first quarter, thanks to sales of Neutrogena, Aveeno, Le Petit Marseillais and Listerine. Skin care sales rose 9.3% to $920 million, baby care sales were up 8.2% to $529 million and oral care sales gained 4.4% to $381 million.

New Brunswick, NJ
732.524.0400
www.jnj.com
Sales: $7.2 billion

Sales: $7.2 billion for skin, oral and baby care products. Corporate sales: $63.7 billion. Net income: $12.9 billion.

Few companies have made more strides in the personal care space than J&J during the past few years. In fact, all three components of its personal care business—skin, baby and oral care—posted double digit gains last year, despite the economic uncertainty.

For example, skin care sales rose nearly 11% to $3.4 billion. The gain was attributed to growing sales of Aveeno, Clean & Clear, Neutrogena, Johnson’s Adult products and the acquisition of Beijing Dabao Cosmetics Co. Ltd.

Baby care sales jumped 11.7% to $2.2 billion, thanks to strong sales outside the U.S.

Oral care sales were up 9% to $1.6 billion, due to a strong performance turned in by the Listerine mouthwash line, according to the New Brunswick, NJ-based firm.

J&J rolled its best-selling Aveeno skin care brand into hair care earlier this year, with the launch of Nourish + Hair Care.

Those gains in personal care more than hold their own when compared to J&J’s total results. Last year, corporate sales rose 4.3% to $63.7 billion. Net income increased 22%.

Furthermore, last year, J&J spent $624 million on research and development within its consumer division—that’s an increase of more than 10% over 2007. In contrast, total R&D expenses at J&J declined 1.3% to nearly $7.6 billion in 2008.

For the first quarter of 2009, however, corporate sales fell 7.2% to $15 billion. Net earnings fell 2.5% to $3.5 billion. However, skin care sales rose 0.2% during the quarter to $842 million, on a 10.7% gain in U.S. sales to $423 million. During the first quarter, baby care sales declined 8.3% to $489 million and oral care sales fell 5.4% to $365 million.

According to J&J, Listerine, Neutrogena and Aveeno all turned in good sales performances during the quarter, and the acquisition of Dabao also contributed to the gain.

With the popularity of Aveeno on the rise, J&J expanded the brand into hair care with the launch of

New this summer is Aveeno sunblock spray with SPF 70.

Nourish + Hair Care. The entire collection is formulated with 90% natural ingredients and pairs an Active Naturals Nourish-ing Wheat Complex technology (wheat germ and wheat germ oil) with botanical extracts to target damaged hair and help strengthen hair to make it less prone to breakage. Unlike other hair care formulas based on wheat protein, Aveeno’s complex uses one large, non-hydrolyzed, water insoluble protein polymer, which won’t break down with use in water, allowing for a targeted, more substantive deposition of the wheat protein and thus greater conditioning, according to J&J.

“During our extensive research into our consumer, we determined a need that wasn’t being fulfilled in the hair care category—effective, naturally based and aesthetically pleasing products that effectively help to repair damaged hair,” Mike Marquis, Aveeno group product director, told Happi.com. “Because Aveeno’s heritage is rooted in the health and beauty of skin, the logical next step was to leverage Active Naturals technology (ingredients powered by nature and proven by science) to offer a solution for hair. The introduction of the Nourishing Wheat Complex exemplifies Aveeno’s overall commitment to health, wellness and beauty, while continuing to lead the way in the innovation of natural ingredients and breakthrough formulations.”

According to Johnson & Johnson data, 70% of women admit to regularly processing their hair and 50% say they have damaged tresses. Aveeno Nourish + hair care was developed with a team of experts, including a dermatologist and hair stylist, with the goal of creating products that help make hair healthy and beautiful.

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Sales: $6.6 billion

Sales:

$6.6 billion for skin, oral and baby care products. Corporate sales: $61 billion. Net income: $10.5 billion.

Corporate sales rose 14.6%, but net income declined 4.3%. Consumer product sales benefited from a full year of the Pfizer Consumer Healthcare unit, which J&J purchased for $16.6 billion in December, 2006. By division, skin care sales jumped nearly 16% to $3.1 billion. The company credited the gains to sun care, Clean & Clear, Aveeno and Neutrogena products.    Last year, baby care sales rose nearly 14% to $2 billion, due to the success of the cleanser, hair care, lotion, cream, and powder product lines. Oral care sales surged more than 260% to $1.5 billion. The growth was due to new brands acquired from Pfizer, and the launch of Listerine mouthwashes and whitening strips. To boost sales further, last fall the company formed a new Office of Strategy and Growth to identify opportunities for future growth that are distinct from those being pursued by J&J’s existing businesses.

For the first quarter of 2008, sales rose 7.7% to $16.2 billion. On the consumer side, the gain was attributed, in part, to strong sales of Listerine mouthrinse and whitening products, baby care products, and Neutrogena, Clean & Clear and Aveeno skin care products.

In June, J&J said it expects its acquisition of Pfizer Consumer Health to break even or increase earnings modestly by 2009, a year earlier than expected. Colleen Goggins, worldwide chairwoman of J&J’s Consumer Group, told analysts that the integration of Pfizer Consumer Health is expected to result in cost savings of $500 million to $600 million in 2009.

Ms. Goggins said the company is still looking at possible acquisitions, albeit not on the scale of Pfizer Consumer Health.

“We still have an appetite for acquisitions,” Ms. Goggins said. “That being said, the PCH acquisition is really big and really complex and we’ve been really consumed with integrating it. I don’t think we’ve got the appetite to do anything the size of PCH anytime soon.”

Last month, J&J (along with Google) was one of two U.S. companies to rank in the top 5 of the Most Respected Companies in the World, a list put together by Reputation Institute. Toyota was the No. 1 company on the list.