Swisse leads Australian VMS market growth

Swisse leads Australian VMS market growth

According to a Nielsen report, the Swisse Ultivite multivitamin range grew by over 40 percent thanks to a high ad spend and launches that boosted the profile of the whole line.

Australia’s over-the-counter vitamins, minerals and supplements (VMS) market has grown an astounding 13 percent partly driven by innovative product launches from Swisse, the nation’s leading health and wellness brand, a new report has found.

The reputable Nielsen report on the VMS market in Australia and Asia reports sales of multivitamins within the overall category grew by 16 percent to $A190 in the year to June, 2102.

This was driven mainly by continued strong performance by the Swisse brand, Nielsen reported.

“Number 1 multivitamin range, Swisse Ultivite, grew by over 40 percent in the 12 months to June—thanks to a high ad spend and launches that boost the profile of the whole range,” Nielsen said.

“Swisse Ultivite multivitamins for men and women aged over 50 years and 65 years are particularly popular.”

The 13 percent growth in the Australian over the counter vitamins, minerals and supplements market outstrips all markets in the Southeast Asian region. The market in Japan declined, South Korea grew by 5 percent and China 10 percent.

The report also quoted Roy Morgan Research which found more than one-third of Australians purchase vitamins in an average six-month period.

“In particular, women of all ages buy vitamins including a generous 73 percent of first time mothers-to-be,” Nielsen reported.

Swisse Chief Executive Officer Radek Sali said it was gratifying to see Swisse building the Australian market after effective campaigns to educate Australians on taking control of their health and wellness.

“Swisse is about educating all people on their health and they are understand the role of multivitamins particularly in their busy lives where diets are not supplying all they need,” Mr Sali said.

“The Swisse marketing position is evolving as the market matures and we establish ourselves on the global VMS platform.”

The Nielsen report also found single vitamin sales were up 5 percent in the same period with Vitamin D growing quickly as people learnt of its benefits and not having to expose themselves to too much sun.

Swisse was also identified as being a prospective driver of growth in the herbal and natural supplements category where fish oils were relatively flat but krill oil developing as a new interest area because of its greater potency—meaning consumers take fewer capsules to get the same benefits.

Nielsen said: “Swisse reports continued strong growth and told Insight Asia-Pacific that its total sales are up by around 80 percent and it is gaining share in the pharmacy and grocery channel owing to a healthy A+P budget of A$40mn (US$41.3mn) in 2011 and A$50mn (US$51.6mn) in 2012.

“Swisse has over 20 brand ambassadors and was Australian broadcast sponsor of the London 2012 Olympics and is associated with several other sporting events. In May 2012, Swisse enlisted actress and singer Delta Goodrem to advertise the brand on TV and in June 2012, the marketer signed a sponsorship deal to be the official vitamin of the Qantas Wallabies Rugby Union team.

“Meanwhile, the company has hired actress Nicole Kidman as global brand ambassador ahead of the rollout of Swisse in the US in January 2013, followed by the UK, Europe and Asia.”

Swisse has also launched a body and skin care portfolio and the Swisse Active range of premium whey powder and energy bars.

Swisse market positioning and innovation has been recognized with a number of awards:

  • Swisse won the Business Review Weekly magazine award for Most Successful Private Business of the Year with a turnover of more than $100m;
  • The Complementary Healthcare Council of Australia named Swisse as winner of the Most Outstanding Marketing Campaign including Consumer Publications – Electronic, Print or Website for the London Olympic Games campaign;
  • Swisse iHub, an interactive in-store device that incorporates an Apple iPad and a Swisse App, won silver in the 2012 Marketing at Retail Awards in the Digital & Interactive Solutions category, voting the Swisse iHub the best interactive display in pharmacy by POPAI, a global not-for-profit association for retail and shopper marketing;
  • In a separate Nielsen study commissioned by Ninelab, Swisse attracted the highest recall rating amongst viewers across all advertisers during the network’s Olympic Games coverage. The research revealed Swisse had an overall recall level of 40 per cent, more than 2 percent clear of the next brand, McDonalds (38 percent) and ahead of leading Australian brands such as CBA and Coles on 34 percent.
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