HRG New Item Reviews Increased by Nearly Nine Percent in 2016

February 15, 2017By News

 

Waukesha, Wisconsin – February 15, 2017 – Hamacher Resource Group, Inc.'s (HRG) New Item Review team, in its ongoing evaluation of products suitable for the independent pharmacy channel, evaluated 2,685 new health, beauty, and wellness items in 2016. The number of items reviewed was up nearly 9% over the 2015 figure of 2,404.

Using the company’s Star Rating System, the team awarded one to three stars to 315 of those products believed to have the highest potential for success in independent pharmacies. Beauty products entering the market had the highest number of new item entries – as they did in 2015 – with 1,039 products reviewed, but had just under 20% of the Stars awarded. While items classified as OTC had the lowest quantity of new products introduced at 741, they had the highest percentage of Stars awarded at 49%. In the wellness segment there were 905 products reviewed and 32% received HRG Stars.

Colleen Volheim, category research and analysis manager at HRG, commented, “Of the top five categories in independent pharmacy (Diabetes, Pain Relief, Digestive Health, Cold & Allergy, and Vitamins & Dietary Supplements), 777 new items were reviewed, and from those items, 19.8% received a HRG Star Rating. These products offer great growth opportunities for retailers, distributors, and manufacturers in 2017 and beyond.”

Volheim continued, “There are two trends that stood out among the new items that launched in 2016. Within the Pain Relief category, products containing lidocaine performed well, as did RX-to-OTC intranasal spray (INS) launches in the Cold & Allergy category. Several of these product types were among those that earned HRG Three-star Ratings because they are critical to category growth and should be added to all size departments without delay.”

HRG analysts take a completely objective approach to reviewing new items. Whether a product receives a Star or not is based on an analysis against five criteria: product innovation, promotional support, category growth, product orientation, and earning potential. For an item to receive at least one HRG Star, products must be well-rounded and achieve high scores in most areas of analysis.