Thursday, April 21st, 2016

Mums drop J&J for organic baby care No ratings yet.

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Johnson & Johnson will remodel its baby line after slowest sales in a decade.

Why are mums turning to organic baby care?

Johnson & Johnson has lost its shine with millennial mothers, a top executive said, propelling the brand to give baby products a rethink.

Sales of its products in the United States dropped 14 per cent year-on-year in the first quarter, raking in US$95 million ($127.8 million), Financial Times reported. This was J&J’s lowest takings in a decade.

Chief financial officer Dominic Caruso said the company lost out to “new competition, primarily from premium, natural-type brands”.

“It looks like millennial moms are buying new organic products,” he added.

J&J will relaunch its baby line this year. While it is open to acquiring competing products, Mr Caruso said the brand will focus “primarily on an internal remake”.

In February, the company lost a US$72 million ($96.9 million) case in Missouri after a woman’s death from ovarian cancer was linked to its baby powder and another talc-based product.

J&J plans to appeal against the verdict, that stemmed from several decades of use. The company said it saw no link between the negative publicity and falling sales.

Read the Financial Times for more.

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