Chattem Extending Diet Aid Line With Dexatrim Natural In Early 2000
This article was originally published in The Tan Sheet
Executive Summary
Chattem will expand its line of Dexatrim diet aids with the introduction of Dexatrim Natural in early 2000. The product, a green tea extract in caplet form, is expected to be distributed nationwide in food, drug and mass outlets.
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Chattem will expand its line of Dexatrim diet aids with the introduction of Dexatrim Natural in early 2000. The product, a green tea extract in caplet form, is expected to be distributed nationwide in food, drug and mass outlets. Chattanooga, Tenn.-based Chattem also plans to introduce line extensions to its PhisoDerm, Gold Bond and Ban brands in the coming year, the company said Oct. 11. Overall, the OTC and nutritional products marketer intends to launch 10 products in fiscal 2000. The company extended its Ban line, which it acquired from Bristol-Myers Squibb in May 1998, with Ultra Dry antiperspirants in stick and roll-on forms earlier this year (1 (Also see "Chattem Ban Ultra Dry Antiperspirants Kick Off Largest Launch Year Ever" - Pink Sheet, 12 Apr, 1999.)). Chattem also recently expanded the Gold Bond brand with Triple Antibiotic Ointment and its PhisoDerm line with 4-Way Daily Acne Cleanser. The planned Dexatrim extension is aimed to combat what the company referred to as "weakening trends" in its Dexatrim business. At the time Chattem purchased Dexatrim from Thompson Medical in December 1998, the firm noted it was the leading domestic OTC diet aid with a 59% market share (2 (Also see "Chattem's Dexatrim Purchase Makes It Top OTC Diet Aid Marketer" - Pink Sheet, 23 Nov, 1998.)). Chattem's Sunsource line of dietary supplements also has struggled in recent months. As a result, the firm will reduce "new product launch[es] and advertising spending levels" for the brand in 2000. While it does not plan to discontinue any Sunsource products, Chattem noted it likely will lean toward future radio ads rather than more costly TV spots. Funds saved from reduced spending on Sunsource will be reallocated to support other brands. The company spent 38.6% of its revenues in the fiscal third quarter ended Aug. 31 on advertising and promotions. Overall, Chattem reported increases in net sales of 16.4% to $78.7 mil. and net income of 36.4% to $6 mil. in the quarter. In the first nine months, sales jumped 39.5% to $224.8 mil., while net income rose 89.7% to $16.5 mil. Chattem attributed its performance in part to its Thompson Medical acquisitions; besides the Dexatrim brand, Chattem purchased the analgesic rubs Sportscreme, Aspercreme, Capzasin-P, Capzasin-HP and Arthritis Hot. |