Below is a look at the company's 2019 highlights, recent acquisitions, best-selling brands and latest innovations.
Beauty and Baby Sales
- Alex Gorsky, chairman and chief executive officer
- Deeptha Khanna, global president, Skin Health and the office of marketing value
- Duda Kertesz, US president, Skin Health
Skincare, Sun Care and Baby Care including:
- Aveeno, Clean & Clear
- Lubriderm, Neutrogena
- OGX, Sundown
- Dr.Ci:Labo, Dabao
- Johnson’s, Le Petite Marseillais
- Aveeno Positively Mineral Sensitive Skin Sunscreen
- Clean & Clear Lemon Zesty Scrub
- Neutrogena Hydro Boost Whipped Body Balm
- Neutrogena MaskiD
- Neutrogena Collagen Kiss Lip Mask
- Sheer Smooch Lip Oil
- Neutrogena Smokey Kohl Eyeliner
- Baby products relaunch
Despite Johnson & Johnson’s broad work across consumer, pharmaceutical and medical device segments, the company continues to be hampered by fallout from ongoing talc lawsuits. To date, there are more than 14,000 claims that J&J’s powder products caused ovarian cancer or mesothelioma, a cancer caused by exposure to asbestos. Although the company continues to deny the link connecting its products to the illnesses, in May the company was ordered to pay $300 million in punitive damages to a plaintiff who blamed the company’s talc-based products for causing her asbestos-related cancer.
In brighter news, the company’s ability to leverage innovation across its consumer platform helped grow total corporate sales 6.7% and beauty franchise sales 4.3% to $ 4.4 billion, thanks to strong performances by Neutrogena, OGX and Aveeno in the U.S. and Dr.Ci:Labo and Dabao products abroad.
In 2018 the company initiated a global relaunch of its Johnson’s Baby products line, which it’s continuing to roll out to global markets through this year. In addition to new packaging, another arm of the relaunch included disclosing 100% of fragrance ingredients above 100 parts per million (ppm) in its shampoos, washes and lotions. The transparency effort earned J&J recognition from The Environmental Working Group. At year’s end however, baby care franchise sales fell 3% to $1.9 billion.
J&J also added to its successful Neutrogena skincare range with the addition of Neutrogena MaskiD, a personalized skin care solution that address their skin’s unique needs with 3D-printed sheet masks inspired by user data. In his address to shareholders, chairman and CEO Alex Gorsky said the innovation represented “one further step toward a new model of product development where we find creative uses for the latest technology, such as digital imaging, skin analysis and 3D printing, to give consumers new ways to achieve their best skincare possible,” and is also a great example of how the company is leveraging innovation across its business segments, as their 3D printing capability originated within its medical device unit.
In other skincare news, the company offloaded RoC skin care brand to Gryphon Investors. The purchase was Gryphon’s second investment in the beauty sector after the firm acquired Indie color cosmetics brand Milani Cosmetics in June 2018.
In October, J&J made two strategic moves to bolster its beauty segment. First they signed a retail deal with eBay to sell Johnson & Johnson, Neutrogena, Aveeno, Regaine, Listerine, Nicorette and Johnson’s Baby products through the e-commerce platform. And later that month, J&J made a $2.05 billion cash offer to buy Japanese skincare company Ci:z Holdings, which owns skincare brands Dr.Ci:Labo, Labo Labo, and Genomer. J&J already owned 19.9% of the company and is its second-largest shareholder.
News of Note in 2019
In Q2 J&J’s consumer worldwide operational sales grew 2.3% to 3.5 billion (excluding the net impact of acquisitions and divestitures). The company credited strong performances by Neutrogena, Aveeno and OGX beauty products. The company’s baby care products also helped boost bottom lines.
Over the summer, J&J shook up the executive lineup in what’s now known as its Skin Health division (formerly Beauty), according to WWD. The newly named division is led by Deeptha Khanna, who was promoted to global president, Skin Health and the office of marketing value. She replaces Sebastien Guillon, formerly global president of Beauty, and Michelle Freyre, U.S. president of Beauty, who have both exited the company. Duda Kertesz was named U.S. president of Skin Health.
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