The Johnson & Johnson name is widely associated with consumer healthcare, but in fact this is the corporate group's smallest operating division, dwarfed by separate pharmaceutical and medical devices divisions (see separate page). Yet this is still a mammoth business with combined sales of $13.8bn, spanning multiple different categories and several separate operating companies, including McNeil Consumer Healthcare. Several products have been acquired through acquisition, not least the mammoth acquisition of Pfizer's original OTC division for $16.6bn in 2007. The biggest sub-group at $4.4bn comprises general beauty products, primarily skincare and personal cleansing and more recently haircare. Key global brands include Neutrogena, Aveeno, RoC and Piz Buin suncare, and these are supplemented by regional jewels such as Le Petit Marseillais in France and Dabao in China, among others. In 2016, J&J paid $3.3bn to acquire US haircare marketer Vogue International, maker of OGX and others. Johnson's Baby is the cornerstone of a sizeable baby care range, with sales of $1.8bn. This unit also houses information portal BabyCenter.com and regional jewels including Hipoglos in Brazil and Penaten in Germany. The oral care portfolio is led by iconic mouthwash Listerine acquired from Pfizer. Combined sales are almost $1.6bn. What was once a sizeable Women's Health unit has now been largely disbanded in the US with the sale of products such as StayFree and Carefree sanitary towels (to Edgewell) and K-Y intimate lubricants (to Reckitt Benckiser). However J&J still owns several of those brands internationally. Wound care comprises Band-aids and a few other brands, while OTC is the general umbrella for an extensive collection of non-prescription medicines, led by analgesics icon Tylenol, and a collection of cold and allergy medicines including Zyrtec, Benadryl, Actifed and Sudafed. Among the company's numerous other products are digestive health products Mylanta, Pepcid and Imodium, anti-smoking aid Nicorette (outside the US), analgesics Motrin and St Joseph, Anusol haemorrhoid products, and Visine eyecare. However the OTC portfolio suffered a serious knock in 2010 after the company identified manufacturing problems at one of its biggest factories which could have caused contamination of these and other OTC children's medicines. As a result all children's Tylenol products were withdrawn from sale for several months. A series of other problems followed leading to several further recalls of different products from the range, substantially eroding consumers' trust. More recently the group was hit by the first of what are likely to be thousands of lawsuits alleging its long-established talcum powder causes ovarian cancer. Thibaut Mongon is EVP & worldwide chairman, J&J consumer health.
Capsule checked 1st October 2019
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Historical profile information for Johnson & Johnson
Adbrands Weekly Update 29th Mar 2018: Johnson & Johnson completed a closed review of creative duties for its US consumer healthcare brands with a restructuring of the relationship with what are already its two main suppliers: Omnicom (primarily BBDO and DDB) and WPP (mainly J Walter Thompson). Media is already consolidated at Interpublic with dedicated agency J3, and J&J has now persuaded Omnicom and WPP to follow suit with the creation of two new specialised entities. Omnicom's is named Velocity, bringing together teams from BBDO, DDB and its satellite unit Roberts & Langer, and the group's PR agencies. It is led by Brian Nienhaus, who transfers across from We Are Unlimited, the same group's dedicated McDonald's agency. Meanwhile, WPP has launched Neighborhood, combining resources from JWT, VML, shopper agency Geometry, and production division Hogarth, as well as its own collection of PR agencies. Leadership has yet to be confirmed, but Krystal Herr, who currently oversees J&J's business at JWT is among the top managers.
Adbrands Weekly Update 24th Aug 2017: Johnson & Johnson suffered its worst loss to-date in what is expected to be a long series of court cases alleging links between use of its Johnson's Baby talcum powder and ovarian cancer. Eight cases have come to a verdict so far. J&J won three, but has lost five. In the latest, the jury awarded the plaintiff $417m in compensation and punitive damages, more than the four previous losses combined. There are still some 4,800 other claims still waiting to be addressed. The company denies any links between its products and an increased risk of cancer and is appealing against all five cases it has lost.
Adbrands Weekly Update 11th May 2017: Johnson & Johnson's reputation - still fragile after a series of OTC recalls over the past decade - remains under intense pressure following the loss of another court case over alleged links between use of its talcum powder and ovarian cancer. This latest is the 4th J&J has lost, but the award of punitive damages of $110m is the steepest yet, bring total potential costs to-date of more than $300m. J&J is appealing the penalty, citing the fact that it has been cleared in three other such trials. The task ahead is daunting, though, with well over 3,000 other talc-related suits still awaiting their day in court.
Adbrands Weekly Update 3rd Nov 2016: Johnson & Johnson lost a third lawsuit in St Louis, Missouri over claims that its talcum powder causes ovarian cancer. In a separate development, Johnson & Johnson sold Asia Pacific rights to the Reach toothbrush and dental floss brand to LG Home & Healthcare, South Korea's biggest personal care company. J&J sold the Reach brand in North America in 2012, and recently absorbed Reach dental floss into the Listerine family.
Adbrands Weekly Update 9th Jun 2016: Johnson & Johnson expanded its already extensive beauty portfolio with the acquisition of salon-inspired haircare marketer Vogue International for $3.3bn. Products include OGX and Proganix shampoo and conditioners and FX styling products. (OGX was known as Organix until 2013, but had to change its name because it is not an entirely organic product). These join J&J's existing portfolio, which includes Neutrogena, Clean & Clear, Aveeno and RoC. The sale price is a huge multiple of Vogue's current revenues, estimated at around $320m last year, and represents a substantial payout for founder and CEO Todd Christopher, who launched the company almost 30 years ago, after working in his uncle's hair salon. He still owns 51% of the business; investment fund Carlyle Group acquired the other 49% in 2014 for $391m.
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