Friday, November 14, 2008

A big comeback for Noxzema?

Alberto-Culver has bought the Noxzema brand in the Americas from Procter & Gamble (P&G retains the brand in Europe), and plans to upgrade the brand's marketing spend significantly, possibly to the point of 100% of sales in a re-launch effort.
... Alberto-Culver clearly is looking to spend much more. Though Ms. Boswell declined to specify a budget, one person familiar with the deal said the company may spend as much as one year's sales on an initial marketing push.

Noxzema had $39.9 million in sales across numerous categories for the 52 weeks ended June 15, according to Information Resources Inc., but U.S. retail sales likely reach closer to $60 million in all channels, not counting other countries. That would peg annual sales out Alberto-Culver's door in the U.S. at more than $40 million.
P&G spent about $2mil last year on Noxzema in measured media (probably a good deal more in-store).

The brand has a strong name and a following, and will certainly mean much more to Alberto-Culver ($1.4bil in sales) than to P&G ($85bil).

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