Sales: $7.7 billion
Sales: $7.7 billion for baby, beauty and oral care products. Corporate sales: $81.6 billion.
Key Personnel: Alex Gorsky, chairman and chief executive officer; Joaquin Duato, vice chairman of the executive committee; Peter Fasolo, PhD, executive vice president, chief human resources officer; Thibaut Mongon, executive vice president, worldwide chairman, consumer; Michael Sneed, executive vice president, global corporate affairs and chief communication officer; Paul Stoffels, MD, vice chairman of the executive committee and chief scientific officer; Michael Ullman, executive vice president, general counsel; Kathy Wengel, executive vice president and chief global supply chain officer; Joseph J. Wolk, executive vice president, chief financial officer.
Major Products: Baby—Johnson’s; Beauty—Aveeno, Clean & Clear, Dabao, Johnson’s, Le Petite Marseillais, Lubriderm, Neutrogena, OGX, Sundown; Oral care—Listerine.
New Products: Aveeno—Positively Mineral Sensitive Skin Sunscreen, Cracked Skin Relief Cica Balm, Repairing Cica Hand Mask, Positively Radiant Micellar Gel Cleanser, Positively Radiant Maxglow Infusion Drops, Baby Hand & Face Wipes, Apple Cider Vinegar Blend Shampoo; Clean & Clear—Lemon Zesty Scrub, Lemon Juice Toner, Lemon Gel Cleanser, Lemon Exfoliating Slices, Lemon Cleansing Wipes; Neutrogena—Blackhead Eliminating Nose Strip to Scrub, Hydro Boost Whipped Body Balm, Makeup Remover Cleansing Towelettes Singles, Hydro Boost Hydrating Foundation Stick, Healthy Skin Prep + Correct Primer, Hydro Boost Illuminator, Eye Shadow, Collagen Kiss Lip Mask, Sheer Smooch Lip Oil, Smokey Kohl Eyeliner, Intense Gel Eyeliner, Precision Liquid Eyeliner, Protect + Tint Tinted Moisturizer, Cheeky Wink Blush; Listerine—Ready! Tabs.
Comments: The talc controversy engulfing J&J is more than just a dust-up. In May, a US district judge dismissed the company’s request to get 2,400 state-court cancer lawsuits tied to its baby powder immediately transferred to a federal court in Delaware, where it could launch a single defense strategy. J&J faces more than 14,000 claims that its talc products caused ovarian cancer or mesothelioma, a rare cancer linked to asbestos exposure. The company denies its products ever contained the carcinogen and argues talc doesn’t cause the life-threatening illnesses. In May, J&J was ordered to pay $300 million in punitive damages to a woman who blamed her rare asbestos-related cancer on the company’s talc-based products.
Johnson & Johnson, of course, is much more than talc. It operates in three segments: consumer, pharmaceutical and medical devices. The consumer segment offers baby care products under the Johnson’s brand; oral care products under the Listerine brand; beauty products under the Aveeno, Clean & Clear, Dabao, Johnson’s Adult, Le Petite Marseillais, Neutrogena and OGX brands; and a range of OTC medicines.
In 2018, corporate sales rose 6.7% to $81.6 billion. Beauty care sales rose 4.3% to nearly $4.4 billion. Growth was driven by Neutrogena, OGX and Aveeno in the US as well as the strength of Dr.Ci:Labo and Dabao products outside the US.
Baby care product sales fell 3% to $1.8 billion, due to a decline in market share for Johnson’s baby products and increased trade promotion due to the relaunch of Johnson’s Baby. Oral care sales rose 1.6% to $1.6 billion, thanks to several new introductions.
“Johnson & Johnson delivered another year of strong operational sales growth of 6.3% and achieved our 35th consecutive year of adjusted operational earnings growth at 9.8% in 2018. This can be attributed to accelerated underlying sales performance across each of our businesses, where we also leveraged our scale across the enterprise to improve margins,” said Chairman and CEO Alex Gorsky.
Unfortunately, 2019 got off to a rough start. Baby care sales fell 14% to $394 million and oral care sales declined 3.1% to $367 million. Beauty care sales were the lone, albeit dim, bright spot, rising a scant .6% to nearly $1.1 billion.
J&J sold the RoC skin care brand earlier this year to Gryphon Investors.