Contents:

Scope and Themes What you need to know Definition Data sources Sales data Consumer survey data Advertising creative Abbreviations and terms Abbreviations Terms Executive Summary The market grows due to H1N1 pandemic, key population growth, and the recession Cough drops far outsell cough syrup and sore throat remedies Drug stores continue to lead retail channels Market driven by seasonal flu severity, specific demographic population growth, recessionary self-diagnosis/medication Seasonal severity Population growth Self-diagnosis/medication Growing Hispanic population spells opportunity Cadbury Adams leads FDMx market based on sales of Halls Consumer reported ailments Seeking treatment Product types used Brands purchased Product selection and concerns Race and Hispanic origin Market Size and Forecast Key points Growth largely depends on the severity of cold and flu seasons The recession also plays a role in self-diagnosis/medicating Population growth among children and seniors is minimal, but women show substantial increase Sales and forecast of cough and throat remedies Figure 1: FDMx retail sales and forecast of cough and throat remedies, at current prices, 2004-14 Figure 2: FDMx retail sales and forecast of cough and throat remedies, at inflation-adjusted prices, 2004-14 Walmart sales Competitive Context Private label comes to the fore during the recession Figure 3: Share of private label and branded new product launches of decongestive, cough, cold and flu relief products, 2004-09 Recession drives sales as sufferers fear missing work Homeopathic remedies compete with OTC Segment Performance Key points Cough drops and syrup sell most while sore throat remedies decline Sales of cough and throat remedies, by segment Figure 4: Sales of cough and throat remedies, segmented by type, 2008 and 2009 Segment Performance—Cough Drops Key points Drops offer convenience and utility Some use cough drops for other reasons Non-medicated formulation likely attracts users Sales and forecast of cough drops Figure 5: FDMx sales and forecast of cough drops, at current prices, 2004-14 Segment Performance—Cough Syrup Key points Cough syrup grows steadily Sales and forecast of cough syrup Figure 6: FDMx retail sales and forecast of cough syrup, at current prices, 2004-14 Segment Performance—Sore Throat Remedies Key point Sore throat remedies underperform Sales and forecast of sore throat remedies Figure 7: FDMx retail sales and forecast of sore throat remedies, at current prices, 2004-14 Retail Channels Key points Drug channel outsells all other FDMx outlets Sales of cough and throat remedies, by channel Figure 8: FDMx sales of cough and throat remedies, by channel, 2008 and 2009 Retail Channels—Drug Stores Key points Drug stores maintain role as top OTC healthcare destination Drug store sales of cough and throat remedies Figure 9: U.S. drug store sales of cough and throat remedies, at current prices, 2004-09 Retail Channels—Other FDMx Outlets Key point Other FDMx stores fail to compete with drug stores Other FDMx store sales of cough and throat remedies Figure 10: U.S. other FDMx store sales of cough and throat remedies, at current prices, 2004-09 Market Drivers Seasonal flu severity drives OTC cough and throat remedy sales Figure 11: U.S. seasonal flu severity, 2001/02-2007/08 Child and senior populations grow; they are most likely to develop complications from flu Figure 12: U.S. population, by age, 2005-15 Figure 13: U.S. female population, by age, 2005-15 Self diagnosis/treatment is popular during the recession Number of uninsured remains high Figure 14: U.S. number of uninsured, 2000-08 High unemployment rate persists Figure 15: U.S. unemployment rate, 2004-09 Hispanic population growth presents manufacturers with opportunity Figure 16: U.S. Hispanic population, by age, 2005-15 Leading Companies Key points Cadbury Adams leads with one brand: Halls Reckitt Benckiser and Ricola surge Manufacturer sales of cough and throat remedies Figure 17: Select manufacturer FDMx sales of cough and throat remedies in the U.S., 2009-10 Brand Share—Cough Drops Key points Halls far outsells all other brands Ricola grows more than any other brand Manufacturer and brand sales of cough drops Figure 18: Selected FDMx brand sales and market share of cough drops in the U.S., 2009-10 Brand Share—Cough Syrup Key points Delsym and Robitussin DM Max push the segment forward; P&G flatlines Private label soars Manufacturer and brand sales of cough syrup Figure 19: Selected FDMx brand sales and market share of cough syrup in the U.S., 2009-10 Brand Share—Sore Throat Remedies Key points Chloraseptic leads, but the segment is static Manufacturer and brand sales of sore throat remedies Figure 20: Selected FDMx brand sales and market share of sore throat remedies in the U.S., 2009-10 Innovation and Innovators Homeopathic, fast-acting products experience growth Figure 21: Claim trends in decongestive, cough, cold and flu relief product launches, 2004-09 Homeopathic/herbal/natural ingredients Fast acting Brands and the Advertising Landscape Overview Brand analysis: Halls Figure 22: Halls Refresh television ad, 2009 Figure 23: Halls Refresh television ad, 2009 Brand analysis: Sucrets Figure 24: Sucrets Complete television ad, 2009 Brand analysis: Ricola Figure 25: Ricola television ad, 2009 Ailments Key points Incidence of cough/cold/sore throat is high Figure 26: Ailments suffered in past 12 months, by gender, February 2010 Figure 27: Ailments suffered in past 12 months, by age, February 2010 Figure 28: Ailments suffered in past 12 months, by household income, February 2010 Treatment Key points Most take OTC remedies for ailments Figure 29: Treatment approach for cough, colds and sore throat, February 2010 Ailment-specific A look at coughs: Boomers are the most likely to treat with OTC Figure 30: Treatment approach for cough, by gender, February 2010 Figure 31: Treatment approach for cough, by age, February 2010 Colds: Women treat with home remedies more than men Figure 32: Treatment approach for cold, by gender, February 2010 Figure 33: Treatment approach for cold, by age, February 2010 Sore throats: Women use home remedies more than men Figure 34: Treatment approach for sore throat, by gender, February 2010 Figure 35: Treatment approach for sore throat, by age, February 2010 Product Types Used Key points Most use cough drops to treat cough/sore throat Figure 36: Products used for cough/sore throat, by gender, February 2010 Figure 37: Products used for cough/sore throat, by age, February 2010 Figure 38: Products used for cough/sore throat, by household income, February 2010 Most use general purpose cough/throat remedies Figure 39: Product specifications for cough/sore throat, by gender, February 2010 Figure 40: Product specifications for cough/sore throat, by age, February 2010 Figure 41: Product specifications for cough/sore throat, by household income, February 2010 Brands Purchased Key points Robitussin, Vicks most-purchased cough syrup brands Figure 42: Cough syrup brands purchased, by gender and age, April 2008-June 2009 Halls the most popular sore throat remedy Figure 43: Sore throat remedy brands purchased, by gender and age, April 2008-June 2009 Product Selection and Concerns Key points Most seek a product that alleviates their specific symptoms Figure 44: Product selection and recommendations for cough/sore throat, by gender, February 2010 Figure 45: Product selection and recommendations for cough/sore throat, by age, February 2010 Most keep remedies on hand; more than half are overwhelmed by selection Figure 46: Concerns regarding cough/sore throat products, by gender, February 2010 Figure 47: Concerns regarding cough/sore throat products, by age, February 2010 Figure 48: Concerns regarding cough/sore throat products, by household income, February 2010 Important Attributes Key points Fast-acting, convenient, affordable remedies are most important Figure 49: Important attributes regarding cough/sore throat products, by gender, February 2010 Figure 50: Important attributes regarding cough/sore throat products, by age, February 2010 Figure 51: Important attributes regarding cough/sore throat products, by household income, February 2010 Race and Hispanic Origin Key points Ailments suffered among ethnicities Figure 52: Ailments suffered in past 12 months, by race/Hispanic origin, February 2010 Treatment approach by ailment Figure 53: Treatment approach for cough, by race/Hispanic origin, February 2010 Types of products used Figure 54: Types of products used, by race/Hispanic origin, February 2010 Product selection and recommendation by race/Hispanic origin Figure 55: Product selection and recommendations for cough/sore throat, by race/Hispanic origin, February 2010 Product concerns among ethnicities Figure 56: Concerns regarding cough/sore throat products, by race/Hispanic origin, February 2010 Important product attributes among black and Hispanic consumers Figure 57: Important attributes regarding cough/sore throat products, by race/Hispanic origin, February 2010 Appendix: Other Useful Consumer Tables Impact of income on treatment Figure 75: Treatment approach for cough, by household income, February 2010 Figure 76: Treatment approach for cold, by household income, February 2010 Figure 77: Treatment approach for sore throat, by household income, February 2010 Product selection and concerns Figure 78: Product selection and recommendations for cough/sore throat, by household income, February 2010 Appendix: Trade Associations

Companies Mentioned

- Airborne Inc - Cadbury Adams USA LLC - Cellular Telecommunications and Internet Association (CTIA) - Chain Drug Marketing Association - Consumer Healthcare Products Association (CHPA) - CVS Caremark Corporation - Facebook, Inc. - Food and Drug Administration - GlaxoSmithKline (USA) - Google, Inc. - Greenfield Online - Johnson & Johnson - Prestige Brands Holdings, Inc. - Procter & Gamble USA - Reckitt Benckiser USA - Ricola Usa Inc. - Safeway Inc - Telecommunications Industry Association (TIA) - U.S. Bureau of Labor Statistics - U.S. Consumer Product Safety Commission - Walgreen Co - Walmart Stores (USA) - World Health Organization - World Self-Medication Industry - Wyeth