In this Issue

The ExtraCare loyalty program has grown to become CVS Health’s crown jewel. In 2015, the program — now in its 15th year — helped drive nearly $4 billion in savings for its roughly 70 million active cardholders. More important, it has emerged as the key engine driving CVS Health’s personalization efforts — a critical component of the company’s five-pillar strategy to reenergize its front-end business.

For the year ended May 2016, specialty medicines made up 36% of all drug spend, according to IMS Health data. And for the year-to-date as of May, specialty spending growth was at 23% — outpacing the 7.8% YTD spending growth that traditional medicines saw in the same time period.

The next big Rx-to-OTC switch opportunity in 2017 could be migraine treatments.

(To view the full Category Review, click here.)

“They did switch Imitrex [in Europe],” Laura Mahecha, industry manager healthcare for Kline Group, said, citing concerns of “potential cardiovascular side effects.” Mahecha called the potential of a 2017 migraine switch “low to moderate.”

Winning with U.S. Hispanics is the solution to accelerating sales growth. Univision partnered with Nielsen to study the Hispanic Healthcare Journey and uncover differences and similarities between Hispanic and non-Hispanic attitudes and behaviors. This new, groundbreaking research explores how patients manage their path to treatment and follows consumers’ path to purchase for the total OTC market and the key categories of pain, vitamins, cough-cold, and allergy remedies.

Unilever’s $1 billion purchase of Dollar Shave Club was an eye-opening deal. While Unilever has been on a buying spree, snapping up companies such as REN, Kate Somerville, Dermalogica and Murad — all premium skin care brands — the deal with Dollar Shave represented growth in a different market. Now the industry awaits Unilever’s next move.

(To view the full Shave Report, click here.)

The drug store industry said goodbye to two icons of the business in September. Charles R. “Cork” Walgreen III, 80, former president, CEO, chairman of the board and chairman emeritus of the company that bears his family’s name, and David Bloom, 76, the former, long-time CEO of Shoppers Drug Mart passed away last month — exactly one day apart on Sept. 26 and Sept. 25, respectively.

CLACKAMAS, Ore. — Earth Mama Angel Baby has introduced two new gift bags: one designed for new moms who have gone back to work, but want to pump to continue their breast-feeding journey; and one to help create a lovely lavender nighttime routine to help encourage baby sleep. The Milk-to-Go Pumping Companion Essentials bag, with a suggested retail price of $34.99, is an eco-friendly, reusable insulated bag that contains Organic Milkmaid Tea, Natural Nipple Butter and Happy Mama Body Wash.

Anyone without a clear vision of the link between wellness and beauty hasn’t heard CVS Health’s VP/merchandise manager for beauty and personal care Alex Perez-Tenessa describe the synergy.

(To download Special Report: Double Down on Health, click here.)

The health-beauty connection is a driving force for the company as it continues rolling out its new “Elevate Beauty” concept, which is now in about 2,000 of its stores.