CVS Innovates With Private Brand Dietary Supplements

cvs-gummiesThe dietary supplement market is filled with product choices. It is a tough category for retailers, as consumer confusion is commonplace. However, the expectation is for growth with the increased consumer awareness of preventative wellness efforts.

5042843017Several years ago, the VMS category experienced significant stagnation in the drug channel. Retailer CVS executed several new initiatives to gain new business and is now the only drugstore that is seeing category growth. One of the key growth areas in the dietary supplement area is alternative forms or sensory delivery forms. Older consumers have pill fatigue, while many consumers have issues with daily adherence to a supplement program. Convenience and great tasting products are top needs for most consumer segments. The entrance of gummy supplements for all ages drove usage and growth of 16% and $68 million in absolute growth dollars. They appealed to new users including the enviable millennial target.
Building on this trend, CVS developed and launched a full line of store brand whole food supplements, liquid supplements, soft gel supplements and more. Alternative forms of supplementation are a white space opportunity for retailers now and in the future. CVS merchandises these lines at eye level on shelf in a brand block. These are CVS pharmacy brand SKUs with no national brand equivalent. Product innovation can be risky and costly, as there is no fact-based data or proven success to support the innovative product or line. This innovation serves as a unique point of difference for the retailer, as well as meeting the needs of a new target group-leading to growth! In addition, CVS completes the consumer friendly approach with at shelf merchandising support by offering a convenient carrying pack to fill with CVS vitamins. The side panels communicate the additional offer of $3 Extra Bucks Rewards when you buy 4 CVS Health vitamins.cvsradiance_0

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Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.