Contents:

Scope and Themes What you need to know Definition Data sources Sales data Consumer survey data Abbreviations and terms Abbreviations Terms Executive Summary A fluctuating market Natural/alternative remedies likely to surge Lozenges sell most, sidestepping restrictions Drug stores will continue to lead retail market Incidence of cold/flu, population factors, sales restrictions dictate sales Cadbury leads market, many other players face restrictions The people Market Size and Forecast Key points Seasonal severity drove fluctuating sales during 2002-07 Bans, restrictions, legislation present future challenges Figure 1: FDMx and c-store sales and forecast of cough and throat remedies, 2002-12 Figure 2: FDMx and c-store sales and forecast of cough and throat remedies at 2007 inflation adjusted prices, 2002-12 Competitive Context Homeopathic/natural alternatives to OTC medicines Cadbury’s Halls transcends restrictions, outsells all other OTCs Segment Performance Key points Drops outsell syrups and sore throat remedies Sales by segment Figure 3: U.S. FDMx sales and forecast of cough and throat remedies at current prices, by segment, 2002-12 Figure 4: U.S. FDMx sales of cough and throat remedies, by segment, 2005 and 2007 Segment Performance—Cough Drops Key points Convenience, utility drive sales of cough drops Figure 5: U.S. FDMx sales and forecast of cough drops, 2002-12 Segment Performance—Cough Syrup Key point Syrups face the biggest hurdle Figure 6: U.S. FDMx sales and forecast of cough syrup, 2002-12 Segment Performance—Sore Throat Liquid Key points Spray anesthetic properties undercut by strip technology Figure 7: U.S. FDMx sales and forecast of sore throat liquid, 2002-12 Retail Channels Key points Drug stores remain preferred cough and throat remedy retailer Figure 8: U.S. sales of cough and throat remedies, by retail channel, 2005 and 2007 Retail Channels—Drug Stores Key points Pharmacies will play larger role in OTC sales Store brands represent opportunity for drug chains Figure 9: U.S. sales of cough and throat remedies through drug stores, 2002-07 Retail Channels—Other Channels Key points Other retailers face similar challenges Figure 10: U.S. sales of and throat remedies at other* retail channels, 2002-07 Market Drivers Incidence of cold and flu Key points Details Figure 11: U.S. seasonal flu severity, 2002-07 Women, children, and older populations impact market Key points Key demographics Figure 12: Female population by age, 2003-13 Figure 13: Population by age, 2003-13 Restrictions on children’s formulations hamper sales Key points Details Figure 14: Usage of children’s cough and cold products, 2000-07 Figure 15: Opinions on safety of children’s remedies, by parents of children <6 years, 2007 Leading Companies Key points FDMx market dominated by Cadbury and Wyeth Smaller players Figure 16: Sales of leading cough and cold remedy manufacturers, 2005 and 2007 Brand Share—Cough Drops Key points Halls leads; other brands benefit from similar non-medicated positioning Figure 17: FDMx brand sales of cough drops in the U.S., 2005 and 2007 Brand Share—Cough Syrup Key points Syrup manufacturers face uphill battle in recalls and restrictions Figure 18: FDMx brand sales of cough syrup in the U.S., 2005 and 2007 Brand Share—Sore Throat Liquid Key points Recall, pending FDA decision negatively affect throat liquids Figure 19: FDMx brand sales of sore throat liquid in the U.S., 2005 and 2007 Brand Qualities Halls fends off lozenge competition with strong branding The battle to claim long-lasting cough relief Innovation and Innovators Cepacol unveils one-shot relief Figure 20: Cepacol Dual Relief Spray television ad, 2008 Mucinex targets parents with new melts in children’s flavors Reformulations Natural/homeopathic/drug-free Multi-symptom Children’s formulations Product claims Figure 21: Number of cough and throat remedy product claims, by type, 2003-08 Product launches by company Figure 22: Number of cough and throat remedy product launches, by company, 2003-08 Advertising and Promotion Overview TV ads—adult remedies Figure 23: Cepacol Maximum Numbing lozenges television ad, 2008 Figure 24: Chloraseptic liquid lozenges television ad, 2008 TV ads—children’s remedies Figure 25: Delsym Children’s cough suppressant television ad, 2008 Figure 26: Mucinex Cough Mini-melts television ad, 2008 Figure 27: Nighttime Triaminic Thin Strips television ad, 2008 Usage Cough syrup Figure 28: Usage of cough syrup, by gender and age, May 2006-June 2007 Figure 29: Preferred types of cough syrup, by gender and age, May 2006-June 2007 Sore throat products Figure 30: Usage of sore throat products, by gender and age, May 2006-June 2007 Figure 31: Preferred kinds of sore throat products, by gender and age, May 2006-June 2007 Children’s products Figure 32: Usage of sore throat products, by gender and age, May 2006-June 2007 Attitudes and Motivations Attitudes towards cough and throat remedy purchases Figure 33: Attitudes towards cough and throat remedy purchases, by gender and age, March 2008 Figure 34: Attitudes towards cough and throat remedies, by gender and age, March 2008 Source of cough and throat remedy purchases Figure 35: Preferred purchase locations of cough and throat remedies, by gender and age, March 2008 Interest in natural/organic cough and throat remedies Figure 36: Usage of natural/organic cough and throat remedies, by gender and age, March 2008 Forms of cough and throat remedies that would be considered Figure 37: Preferred types of natural/organic cough and throat remedies, by gender and age, March 2008 Race and Ethnicity Usage of cough/sore throat Figure 38: Purchase incidence of, by race/ethnicity, December 2007 Figure 39: Preferred types of cough syrup, by race/ethnicity, May 2006-June 2007 Figure 40: Usage of sore throat products, by race/ethnicity, May 2006-June 2007 Figure 41: Preferred types of sore throat products, by race/ethnicity, May 2006-June 2007 Figure 42: Preferred kinds of sore throat products, by race/ethnicity, May 2006-June 2007 Preferred delivery format for throat remedies Figure 43: Preferred kinds of sore throat products, by race/ethnicity, March 2008 Figure 44: Usage of sore throat products, by race/ethnicity, May 2006-June 2007 Figure 45: Preferred types of children’s cough/cold products, by race/ethnicity, May 2006-June 2007 Figure 46: Forms of sore throat remedies that would be considered, March 2008 Attitudes toward cough and throat remedies Figure 47: Attitudes towards cough and throat remedy purchases, by race/ethnicity, March 2008 Figure 48: Attitudes towards cough and throat remedies, by race/ethnicity, March 2008 Place of purchase Figure 49: Preferred retail locations for purchases of cough and throat remedies, by race/ethnicity, March 2008 Natural/organic preferences Figure 50: Usage of natural/organic cough and throat remedies, by race/ethnicity, March 2008 Appendix: Other Useful Consumer Tables Usage Figure 66: Preferred types of sore throat products, by gender and age, May 2006-June 2007 Figure 67: Preferred kinds of sore throat products, by gender and age, March 2008 Figure 68: Preferred types of children’s cough/cold products, by gender and age, May 2006-June 2007 Usage frequency Figure 69: Usage frequency of cough syrup, by gender and age, May 2006-June 2007 Figure 70: Usage frequency of sore throat products, by gender and age, May 2006-June 2007 Brands Popularity of brands Figure 71: Preferred types of cough syrup, by gender and age, June 2007 Figure 72: Preferred types of sore throat products, by gender and age, June 2007 Appendix: Trade Associations

Companies Mentioned

- Food and Drug Administration - Halls - Wal-Mart Stores (USA) - Ricola Usa Inc. - CVS Corporation - Cadbury Schweppes Americas Confectionery - Wyeth - Walgreen Co - Consumer Healthcare Products Association (CHPA) - Procter & Gamble USA - Centers for Disease Control and Prevention - National Association of Convenience Stores - Johnson & Johnson - Target Corporation - The Kroger Co. - Safeway Inc - Whole Foods Market Inc - Wild Oats Markets, Inc - National Public Radio Inc. - Airborne Inc - Adams Respiratory Therapeutics, Inc. - The Quigley Corporation - U.S. Consumer Product Safety Commission - American Pharmacists Association (APhA) - Chain Drug Marketing Association - World Self-Medication Industry - Rite Aid Corporation - U.S. Bureau of the Census - Cadbury Adams USA LLC - Prestige Brands Holdings, Inc. - Combe Incorporated - U.S. Bureau of Labor Statistics - Discovery Channel - National Institutes of Health - Duane Reade, Inc - National Association of Chain Drug Stores (NACDS) - Henry J. Kaiser Family Foundation - Supervalu Inc - Pfizer Inc - Bayer Corporation - Novartis Pharmaceuticals Corporation - World Health Organization - CDMA Development Group (CDG) - Drug, Chemical & Associated Technologies Association (DCAT)