Key facts
- Haleon has secured improved shelf placement at Walmart and Target.
- The company offered commercial terms, exclusivity, and new products to retailers.
- Haleon's U.S. market share in consumer health grew to 12% by August.
- Rival P&G saw its market share decline.
- Promotions accounted for over 21% of Haleon's second-quarter U.S. sales.
Haleon, the company behind Sensodyne toothpaste, has secured more prominent shelf space at major U.S. retailers like Walmart and Target. This strategic move aims to boost its market share amidst increasing consumer price consciousness due to rising grocery bills. Haleon has offered retailers improved commercial terms, including lower prices, enhanced promotions, exclusive products, and placement of top innovations.
A Haleon spokesperson stated that the company is offering better commercial terms, relationships, exclusivity, price, and promotions, alongside stocking top innovations. This competitive strategy is crucial as Haleon and its rivals vie for spending from cost-conscious shoppers.
Data from NielsenIQ, analyzed by Bernstein, indicates Haleon's share of the U.S. consumer health market has steadily increased this year, reaching 12% by August, up from 11.4% in February. In contrast, rival P&G's market share in the healthcare sector declined to approximately 10.8% in July, while Colgate-Palmolive's share in oral, personal care, and household markets remained flat at just under 5%.
Joe Sta-Romana, Haleon's U.S. chief customer officer, explained that the company's new strategy involved researching shopper expectations for product placement. Haleon shared data with retailers forecasting sales growth from moving products to eye-level positions within brand blocks, which facilitated retailer adoption. Promotions are a significant growth driver for retailers like Walmart, which has seen its slowest same-store sales growth in six years despite price reductions on thousands of items.