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grocery PBM Perrigo

Free Private Brand Baby Formula Sweepstakes

\"\"Very few Private Brand manufacturers actually market to or attempt to engage consumers, instead allowing the retailer owned brand to build the relationship with and affinity from the customer. Over the last few years the exception to this rule has been baby formula supplier PBM Products now Perrigo Nutritionals. However their focus is on growing the overall sales of Private Brand formula and rigorously defending its quality and efficacy in court if need be. Their newest promotion the Free Baby Formula Sweepstakes at storebrandformula.com continues this trend.

The press release from the company reads:

Want to be the envy of other new moms in the neighborhood with the coolest stroller on the market?  You could have a chance to win a free Origami Stroller by 4moms (retail value $849) by entering the Free Baby Formula Sweepstakes at storebrandformula.com.

\”Smart moms know they can save a bundle using Store Brand Formula, such as Walmart\’s Parents Choice, or Target\’s Up & Up, over national brands without compromising quality,\” says Sandra Gordon, national baby products expert and author of the newly released Save a Bundle: 50+ Ways to Save Big on Baby Gear.  \”With the money you save by choosing store brand formula, you could afford to buy an Origami® Stroller, or you could enter their sweepstakes to win one.\”

\"\"The Origami is the world\’s first power-folding stroller that is self-charging (wheel movements charge the battery when you walk) so it can also act as a cell phone charger when strolling the baby.  It comes with four-cup holders, daytime running lights, and pathway lights that turn on in low-light conditions. In addition, the stroller\’s LCD display dashboard features a thermometer, a speedometer, and lifetime odometers.

The Store Brand Formula Free Baby Formula Sweepstakes is open to legal residents of the 50 United States, the District of Columbia, and Puerto Rico, who are at least 18 years old. Entrants must fill out an entry form and will receive one entry for the drawing associated with the week in which they enter. There is a limit of one entry per person per week and entries will not be carried forward into subsequent weeks.

Each Weekly Prize winner will receive two cases of free baby formula. The approximate retail value of each Weekly Prize is $160. Each Monthly Prize winner will receive a free Origami® Stroller by 4moms. The approximate retail value of each Monthly Prize is $849.

For more information and Sweepstakes rules, visit http://www.storebrandformula.com/sweepstakes-rules.aspx.

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Categories
PBM

Fourth Circuit Upholds $13.5m Private Brand Judgment

\"\"Private Brand manufacturer Perrigo said yesterday that an appeals court has upheld a ruling that national brand Enfamil formula maker Mead Johnson made false advertising claims against PBM, Perrigo\’s Private Brand infant formula business.

In December 2009, a jury awarded PBM $13.5 million in damages against the rival baby formula maker over false advertising over the nutritional value of its product. PBM\’s formula is sold at Walmart, Sam\’s Club, Target, Kroger and Walgreen. Perrigo said the money will go to PBM founder Paul B. Manning.

PBM had sued Mead Johnson over ads that claimed \”only Enfamil LIPIL is clinically proven to improve brain and eye development.\” LIPIL is what Mead calls two types of fats that are believed to aid child development. PBM said in its suit that its formula contains the same fats in equal or higher amounts and that it gets the fats from the same supplier as Mead.

Perrigo said Thursday that the U.S. Court of Appeals for the Fourth Circuit upheld the previous lower court\’s decision to issue an injunction against Glenview, Illinois based Mead Johnson to bar it from making similar claims, and award damages.

\”The Court has made it clear that national brand and store brand suppliers are entitled to fairly compete and advertising abuses will not be tolerated,\” said Perrigo Chairman and CEO Joseph C. Papa in a statement. \”We also appreciate the Court\’s recognition that PBM could lawfully compare its products to national brand products.\”

Mead Johnson said it disagrees with the trial court\’s decision, but is complying with the ruling and has not used the proscribed language in more than a year.

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Categories
PBM Perrigo

Feel The Emotional Pull of Store Brand Formula

The folks at PBM continue after their acquisition by Perrigo to aggressively extol the virtues of Private Brand formula. This commercial has a compelling emotional tug that should speak to budget conscious moms.

Categories
Cott Beverage PBM Perrigo Ralcorp

Private Brand Manufacturer Acquisition Spree

\"\"Over the last year a curious reaction to or perhaps result of our economic woes and the accompanying Private Brand growth has been a mergers and acquisitions spree by major Private Brand manufacturers. The most recent is the agreement by Cott Beverage to acquire the juice company Cliffstar for $500 million.

Other high profile, high dollar acquisitions have included:

  • Perrigo’s acquisition of baby formula giant PBM
  • Ralcorp\’s acquisition spree that has include: breakfast food manufacturer Sepp\’s Gourmet Foods Ltd, pasta manufacturer American Italian Pasta Co. and North American Baking
  • Treehouse Foods acquisition of soup manufacture Sturm Foods

As retailers continue to grow their Private Brands and create compelling consumer relevant propositions it is difficult to believe that Private Brand manufacturer consolidation will be beneficial for either the Brand Manager or the consumer. Even before consolidation it is not uncommon to find identical cereals, soups and other dry goods at all of the major grocers in the my hometown Charlotte.

Even my kids recognize that the fruit gummi’s are the same at Food Lion, Harris Teeter, Lowe’s Foods and Bi-l0 although that may bring higher margins it does nothing to give shoppers a reason to choose one over the other.

If manufacturer consolidation brings efficiencies in operation that provide cost savings which are translated into increased budgets for research, development, quality control and innovation the spate of acquisitions could serve to prolong the Private Brand growth spree.

If not it could further homogenize the Private Brand offering and slow or destroy growth.

Retailers must build relevant differentiated brands both through brand positioning and its tactics and products on shelf.

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Categories
PBM

Private Brand Awarded $13.5 Million Damages from National Brand

This Businesswire press release details the results of the multi-million false advertising lawsuit filed by PBM Products against Mead Johnson Nutrition Company.  It will be interesting to see how this precedent impacts other National Brand advertising.

\"PBMMead Johnson, Maker of Enfamil, Loses Multi-Million Dollar False Advertising Case Against Store-Brand Infant Formulas

PBM Products, LLC, a leading infant formula company that supplies store-brand infant formulas to Walmart, Sam\’s Club, Target, Kroger, Walgreens, and other retailers, has received a favorable jury verdict and a $13.5 million damages award in its false advertising lawsuit against Mead Johnson & Co., the operating subsidiary of Mead Johnson Nutrition Company, the makers of the national-brand Enfamil LIPIL Infant Formula. Mead Johnson is 83 percent-owned by Bristol-Myers Squibb.

PBM’s lawsuit claimed that Mead Johnson engaged in false and misleading campaigns against PBM’s competing store-brand of infant formulas, suggesting they do not provide the same nutrition as Mead Johnson’s brands. PBM’s store-brand infant formulas cost up to 50 percent less than Enfamil LIPIL. The $13.5 million in damages awarded by the jury in the United States District Court for the Eastern District of Virginia is one of the largest damages awards ever for a false advertising case.

“This decision by a jury of the people confirms that Mead Johnson’s ads have been false in suggesting that there is a nutritional difference between our store-brand formula products and their products, when in fact the only major difference is price,” said PBM CEO Paul B. Manning. “Despite Mead Johnson’s scare tactics, parents are assured that PBM’s formula products are as high quality and nutritious as Mead Johnson’s.”

U.S. District Court Judge James R. Spencer issued his written rulings yesterday following the November 10th jury verdict. Judge Spencer’s written rulings permanently enjoined Mead Johnson from making any false statements concerning PBM\’s infant formula, including the claims Mead Johnson previously made in Enfamil advertising that \”It may be tempting to try a less expensive store brand, but only Enfamil LIPIL is clinically proven to improve brain and eye development,\” and \”there are plenty of other ways to save on baby expenses without cutting back on nutrition.\” The Court also ordered Mead Johnson to retrieve from the public domain all advertising or promotional materials containing these or any other false claims about PBM\’s store brand infant formula.

The details of the decision and the complaint are posted online in full at:

The nutritional supplements under examination in the case are two fats, DHA (docosahexaenoic acid) and ARA (arachidonic acid), which Mead Johnson calls “LIPIL®” solely for marketing purposes and touts as promoting infant brain and eye development. PBM’s claim focused on Mead Johnson’s direct mailing to more than 1.6 million parents of an alarming blurry picture of a child’s cartoon duck next to a clear picture of the same image which suggested that anything other than the Enfamil LIPIL blend of ingredients is inferior and will result in poor eye and brain development. Other parts of the false advertising campaign consist of statements that only Enfamil LIPIL has been proven to confer visual and mental benefits on infants, and store-brand formulas are a “cut-back in nutrition” compared to Enfamil.

PBM successfully argued that these advertisements were false and misleading especially since PBM store-brand infant formulas have the same nutrients at the same levels as Enfamil. PBM infant formulas are formulated to contain DHA and ARA, and are sourced from the same supplier in amounts, which equal or exceed the DHA and ARA in Mead Johnson’s Enfamil LIPIL.

This decision marks the third time PBM Products has sued Mead Johnson for false advertising claims. On the prior occasions Mead Johnson admitted that it made false claims about PBM’s products. It is also the first false advertising case to focus on the issue of DHA and ARA nutritional ingredients in formula, which were introduced into the market in 2003 and have become a staple in recent years by many brands as key components for infant development.

“This jury verdict should send a significant and clear message to Mead Johnson about the way it conducts marketing and advertising for its brands,” said Manning. “This lawsuit also demonstrates our complete commitment to defending our products and the valuable brands of our retail partners.”

“As a parent and supporter of children’s medical research, I take a personal responsibility in assuring our customers that the products we produce are healthy and nutritionally equivalent to brand names like Enfamil® LIPIL®. It is important, especially now, for parents to know that there are lower priced yet highly nutritious store-brand formulas that will provide the same benefit to their children as any national brand name formula product,” Manning added.

The U.S. infant formula market is estimated at $3.4 billion and the global market is estimated at $7.9 billion.

All of PBM’s formulas, and for that matter all of U.S. infant formulas, are subject to the exacting standards of the U.S. Food and Drug Administration (FDA), pursuant to the Infant Formula Act of 1980. This legislation vested FDA with the authority to ensure that all infant formula products sold in the United States provide the necessary levels of identified nutrients required for the growth of healthy babies. For more information, visit this FDA link.