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KYOLIC LTD. SUPPORTING BE SURE ANTIFLATULENCE PRODUCT LAUNCH

This article was originally published in The Tan Sheet

Executive Summary

KYOLIC LTD. SUPPORTING BE SURE ANTIFLATULENCE PRODUCT LAUNCH with $ 250,000 in ad spending over the next three months, the firm said. Expected to reach retail shelves by July 8, the digestive enzyme product will be featured in half-page print ads running in October and November in Redbook, Woman's Day, Longevity and Vegetarian Times. In October and December, ads will appear in Self and Shape, and in November, People will run the Be Sure ad. American Health is slated to feature the ad throughout the three- month period. Kyolic estimated that these ads will produce 151 mil. gross impressions. Mission Viejo, Calif.-based Kyolic Ltd., a division of Wakunaga of America, is also planning regional $ 1-off coupons in Sunday newspaper supplement free-standing inserts beginning in the Los Angeles area once Be Sure reaches a "reasonable distribution" level. The company predicted that the coupons will be dropped in the first quarter of 1994. Be Sure will be available in 30-capsule blister packs at a wholesale cost of $ 6.50. The firm expects the product to retail between $ 9.99 and $ 12.95. Kyolic reported that 750 Osco and Sav- On drug stores have agreed to carry the product. Kyolic's sales force is comprised of 15 broker organizations. Be Sure is intended to provide protection from "embarrassing flatulence before it starts" from beans, cruciferous vegetables, onions, cucumbers, soy and some fruits, product packaging states. Consumers are directed to take one or two capsules "with the first bite of offending food." Digestive enzymes in the product work by converting gas-causing sugars (oligosaccharides) in these foods into monosaccharides. Digestive enzyme-based antiflatulence products are a growing niche category that began with the launch of AkPharma's Beano in January 1991. The product was introduced in a 12- and 75-serving size liquid form. Also arriving on retail shelves in July is new packaging for Beano that depicts a cornucopia of food to indicate that the product prevents gas from "beans, broccoli, onions, whole grains, pasta and many healthful foods." The revised packaging began shipping during the last week of June, AkPharma said. The original packaging displays only a bowl of beans; other foods that the product is intended to protect against are stated less prominently. The new Beano packaging also describes the product as a "social and scientific breakthrough." During the fourth quarter, AkPharma also expects to roll out a 30-serving liquid Beano size and Beano tablets in 12-, 30- and 100-count packages. Competing directly with Kyolic's Be Sure 30- capsule package, the Beano 30-tablet package carries a wholesale price of $ 3.18, which is less than half the wholesale price for Be Sure. AkPharma's suggested retail price for Beano 30-count packages is $ 5.95 versus $ 12.95 for the comparable Be Sure SKU. AkPharma reported that 1992 retail sales of Beano were $ 11 mil., with sales projected to rise to $ 16 mil. in 1993 without accounting for the new products. AkPharma is projecting 1994 sales of the entire Beano line to double to over $ 30 mil. in 1994. AkPharma has a patent pending on the digestive enzyme technology.
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