GSK Names Top L'Oreal Executive To Lead Consumer Business
This article was originally published in The Tan Sheet
Executive Summary
GlaxoSmithKline underscores the importance of emerging markets to its growth strategy by appointing to lead its consumer division a top L'Oreal executive with a track record of building brands in China and established markets
|
GlaxoSmithKline underscores the importance of emerging markets to its growth strategy by appointing to lead its consumer division a top L'Oreal executive with a track record of building brands in China and established markets. Emma Walmsley will succeed current Worldwide Consumer Healthcare President John Clarke after he retires "within two years," the U.K.-based firm announced March 22. In the meantime, she will replace Manfred Scheske as president of Consumer Healthcare Europe beginning May 1. Scheske was passed over for a promotion as Clarke's successor after working for 21 years in general and regional management at GSK. He now is "considering his options inside and outside GSK," explained Brian Jones, a company spokesman. Walmsley's Experience Could Help GSK Grow Walmsley impressed GSK and secured the position as president-designate in part with her "strong track record and experience in [fast-moving consumer goods] marketing," Clarke said in the press release. Walmsley's "aggressive growth strategy and business change program" as a leader of L'Oreal's division in China "greatly accelerated" the firm's consumer business growth there in less than three years, Jones said in an interview. L'Oreal's sales, including consumer products, in Asia shot up 12.6 percent to €559.8 million ($744.9 million under current conversion rates) on a like-for-like basis in the fourth quarter, according to the firm's earnings statement released Feb. 15. In the consumer health division, L'Oreal maintains Garnier "is making fast progress thanks to strong growth in skincare, where the brand is making major breakthroughs in Asia." Men's skincare sales in Asia are also strong, the firm says. While leading L'Oreal's Consumer Products in China, Walmsley oversaw marketing and sales for the luxury Chinese brand Yue Sai and the Chinese mass-market skincare brand Mininurse . Jones added Walmsley also has FMCG marketing experience across Europe, North America and Asia. This includes time with L'Oreal in New York, where she oversaw the Maybelline brand globally, in Paris as a marketing director and in London as a general manager. "Emma's appointment comes at an important time as we seek to diversify and further grow this business," said CEO Andrew Witty in the release. Since becoming CEO in May 2008, Witty outlined GSK's plans to aggressively expand its consumer business through bolt-on acquisitions, increased R&D and advertising spending (1 (Also see "GSK's Consumer Segment Grows 7% With Heavy Investment In R&D And A&P" - Pink Sheet, 8 Feb, 2010.)). Indeed, Walmsley's global experience gives the firm an additional source of knowledge about emerging markets - another key focus area for GSK. Emerging markets likely will provide the "strongest growth" to the company's overall business in 2010, according to the firm's 2009 annual report. In 2009, pharmaceutical sales in emerging markets grew 20 percent to £3 billion ($4.4 billion). Despite the importance of emerging markets, Walmsley's first priority is to develop and deliver European business for GSK, Jones said. The Glaxo appointment comes a month after Merck named former Johnson & Johnson executive Bridgette Heller, who has significant international experience, to lead its consumer health division. Heller was president of J&J's Baby Global Business Unit when she moved to Merck and previously was global president of J&J's baby, kids and wound care division (2 (Also see "Merck Appoints Consumer Head To Help Division Expand Globally" - Pink Sheet, 22 Feb, 2010.)). Walmsley Usurps Scheske As Successor Walmsley's appointment surprises some observers who saw Scheske as the most senior and experienced potential successor to Clarke. Scheske led GSK's Consumer Healthcare Europe since January 2004, and under his leadership the division's sales steadily increased with a 25 percent jump from £1.6 billion ($2.16 billion) in fiscal 2007 to £2 billion ($2.71 billion) in fiscal 2009, according to GSK's financial records. Under Scheske, the division became the first to switch successfully a prescription drug to nonprescription through Europe's centralized switch procedures in 2009. GSK launched the weight-loss drug alli in Europe in April 2009 - after a 2007 OTC launch in the U.S. in 2007 (3 'The Tan Sheet' April 27, 2009, In Brief). Sales of alli more than doubled to £203 million ($302.1 million) following the European launch and helped drive OTC product sales up 8 percent to £2.3 billion ($3.4 billion) in fiscal 2009, according to GSK's annual report. The pain reliever Panadol in the U.K. also helped drive up OTC sales with a 10 percent increase to £393 million ($584.9 million) in 2009. Prior to leading the European Consumer Healthcare Division, Scheske oversaw the North American consumer health care division for six years. However, his final year leading that division was marked by a weak financial performance, including flat sales during the second and third quarters of fiscal 2003 and only modest growth in the first quarter (4 (Also see "Glaxo Consumer Healthcare Shakes Up Management As U.S. Sales Fall Flat" - Pink Sheet, 10 Nov, 2003.)). - Elizabeth Crawford ( 5 [email protected] ) |