Top Companies Report

25. Merck

July 10, 2013

Whitehouse Station, NJ

Sales: $600 million for sun and foot care products. Corporate sales: $47.3 billion. Net income: $6.2 billion.

Key Personnel: Kenneth C. Frazier, chairman, president and chief executive officer; Cuong Viet Do, executive vice president and chief strategy officer; Bridgette P. Heller, executive vice president and president, Merck Consumer Care; John O’Mullane, chief scientific officer, Merck Consumer Care; Tanya Berman, senior director, sun care marketing.

Major Products: Sun care—Coppertone (Sport, Water Babies and UltraGuard) and Bain de Soleil sun care products; Skin care—A+D Ointment; Foot care—Lotrimin, Tinactin and Dr. Scholl’s.

New Products: Coppertone Kids Wacky Foam SPF 75+, Coppertone Oil Free Faces SPF 15 and 50+, Coppertone Sport Lip Balm SPF 30, Coppertone Tattoo Guard Lotion SPF 50 and Stick SPF 50+, Coppertone Travel Size Lotions, Coppertone Tanning Foaming Sunscreen Lotion SPF 15.

Comments: Coppertone, a registered trademark of MSD Consumer Care, Inc., a subsidiary of Merck & Co., Inc., is a US market leader in sun care. It launched the “Making the Sunscreen Grade” program this May, which provides tools to help educate parents on the importance of sun protection during the school day and year-round. The “Making the Sunscreen Grade” initiative also invites parents to partner with their child’s school to make sun protection and sunscreen reapplication a priority.

For fiscal 2012, Merck overcame significant challenges and delivered strong results by successfully growing its businesses, expanding geographically and reducing expenses.

According to Kenneth C. Frazier, chairman and chief executive officer of Merck, “As we begin 2013, we are well-positioned to further execute on our business strategy. We remain committed to investing for future growth and innovation to deliver value over the long term. Merck is rapidly advancing many compounds that are potentially first-in-class or best-in-class. Additionally, we will continue to pursue external opportunities that have the potential to deliver value to the company and its shareholders.”

Full-year 2012 worldwide sales fell 2% to $47.3 billion. However, consumer care sales rose 6% to $1.95 billion, led by the Dr. Scholl’s franchise and higher sales of Coppertone. Fourth-quarter global sales of consumer care rose 9% to $395 million.

In the first quarter of 2013, global sales of consumer care at Merck rose 3% to $571 million. The sales increase was primarily due to Coppertone sun care products, according to the company.

In May, just in time for the summer sun season, Consumer Reports evaluated 12 sunscreens for their effectiveness at protecting against UVA and UVB rays. One of the top-scoring products was Coppertone Water Babies 50 lotion, which was rated very good overall.

Coppertone will announce new sun care products in January 2014, according to the company.  
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