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july30/31 2016<br />

Jancis Robinson on how<br />

to taste wine on holiday<br />

‘I taught myself to clean up<br />

Mexico’s crime scenes’<br />

An intellectual world without<br />

barriers, by Giles Wilkes<br />

The<br />

bathtime<br />

battle<br />

Johnson & Johnson<br />

is struggling to win<br />

over millennial parents.<br />

David Crow reports<br />

on the rise of<br />

‘natural’ baby<strong>care</strong>


Chemical<br />

vsv<br />

natural<br />

The consumer giant Johnson & Johnson has<br />

dominated the baby<strong>care</strong> market for more than a<br />

century. But as millennial parents embrace organic,<br />

natural ingredients, the company faces fresh<br />

challenges. David Crow reports<br />

Still life Sam Armstrong Portraits Jessica Barthel


henAlexis andGabe Landes foundout they were<br />

expectingtheir first child, they beganpreparing<br />

their apartment onthe Upper West Side of<br />

Manhattan for thebig arrival. Thenesting instinct<br />

soon took theLandes couple beyondthe nursery<br />

andintothe bathroom, where they disposed of all<br />

themass-produced toiletries they owned.<br />

“Once my wife became pregnant, we thoughta<br />

lot about whatwas going intoher,and intothe kid<br />

in utero, soweshifted all the high-volume,<br />

corporate stuff out of our home,” says 37-year-old<br />

Gabe, whoworks as aconstruction manager for a<br />

solar-powercompany. “It was already bakedinto<br />

our values. Even before Alexis gotpregnant,we<br />

would eatadietlow in meat andbuy our foodfrom<br />

small, local farms.”<br />

Isaacarrived 15 months ago, “adorable, andaton<br />

of fun”, andhis parents were showered –asmany<br />

parents are, in hospital or viamailing lists –with<br />

free samples of babyproducts made by Johnson &<br />

Johnson, the world’s largest manufacturer of<br />

toiletries for infants. But they avoided the<br />

supermarket shelves stackedwith J&J’sbottles and<br />

started searchingfor alternativesthatcontained<br />

fewer chemicals andmore natural ingredients.<br />

“Wewanted to makethe best decisions about<br />

everything we were puttingonhis skin, fromshampoo<br />

to sunscreen,”saysGabe.They settled on ababy<br />

soap made by Dr Bronner’s, oneofthe early pioneers<br />

of natural toiletries.Ratherthan using Johnson’s<br />

baby creams or talcum powders for Isaac’s nappy<br />

rash, they opted for pure coconut oil.<br />

TheLandes family is notalone. An increasing<br />

number of parents in richer countries are eschewing<br />

J&J’s products in favour of premium or natural<br />

alternatives. Thetrendhas resulted in amarked<br />

slowdowninsales of J&J’s babyproducts.After more<br />

than acentury as theleading purveyorofinfant<br />

shampoos, creams, talcum powders andlotions, the<br />

companyislosing share to newerrivals. In thefirst<br />

six months of the year, USsales of its baby<strong>care</strong><br />

products slumped to $197m, thefirst timetheyhave<br />

fallen belowthe $200mmark since 2007.<br />

Speaking to journalists in April this year,<br />

Dominic Caruso, J&J’s chief financial officer,<br />

attributed thedeclinetoparents buying “premium,<br />

natural-type brands”,and promised shareholders<br />

thatthe companywould relaunch its range to better<br />

cater totheir tastes. But J&J faces asignificant<br />

challenge in winning overyounger parents, many<br />

of whom mistrust thebig commercialbrands so<br />

belovedbytheir ownparents andgrandparents.<br />

The Landes and their friends are part ofa<br />

generation that tends to be more suspicious of<br />

mass-produced food and cosmetics, and ofbig<br />

business in general. Many scour food labels for<br />

artificial ingredients, andbelievethatsmaller is<br />

better, and organic better still. Their healthconscious<br />

attitude is creating problems notjust for<br />

J&J but for manyother brands too, from McDonald’s<br />

to Kraft –names that were once astaple of<br />

American family life.<br />

J&J’s forayintothe baby<strong>care</strong> business was<br />

unplanned. Founded 130 years agoby<br />

three brothers in New Jersey, the<br />

company was set up to capitalise on<br />

the theories ofSir Joseph Lister, the<br />

British father of antisepticsurgery.In<br />

1867, Sir Joseph had published aseries of case<br />

studies showing thatsterile surgical procedures<br />

would save countless lives. His work was initially<br />

dismissedbysurgeons, manyofwhomrefusedeven<br />

to wash their hands beforeoperating, but he found<br />

aconvert in RobertWood Johnson, theeldest of<br />

the three brothers, atrained apothecary. After<br />

attending one of Sir Joseph’s lectures at a<br />

Philadelphia medical conference in 1876,Robert<br />

joinedhis siblings in business and, in 1886, they<br />

startedmanufacturing stitches anddressings that<br />

were sterile and affordable, helping to bring<br />

survivable surgerytothe masses.<br />

The company quickly branched out, in 1888<br />

pioneering thecommercialfirst-aid kit to combat<br />

a spike in accidents in the increasingly<br />

industrialised workplace. It also foundsuccess with<br />

its medicatedplaster,anadhesivepatch of rubber<br />

thatpromised to deliver an infusion directly to the<br />

skin to soothepain. Customers liked theproduct<br />

but soon started complaining that the sticky<br />

squares were irritating their skin. J&J responded<br />

by shipping theproduct with atinycontainer of<br />

talcumpowder to sootheirritation, prompting a<br />

raft of letters frompeoplewho foundthe powder<br />

also relieved nappyrash andother skin complaints.<br />

And sothe Johnsons launched “Toilet and<br />

<strong>Baby</strong> Powder” in1894, the first in aseries of<br />

products thatwould dominate thebaby<strong>care</strong> market<br />

for more thanacentury.Itcameinatin with an<br />

orange-and-white label, carrying alogo that<br />

has never changed: the family name inastyle<br />

mimicking the handwriting ofJames Wood<br />

Johnson, theyoungest of thebrothers.<br />

J&J went on to build abusiness that came to<br />

occupy aspecial place in the consciousness of<br />

mothers, its products closely tracking changes in<br />

maternal health. Around the time ofthe <strong>Baby</strong><br />

Powder launch, J&J began selling maternity kits<br />

designed to improve thesafety of home births, then<br />

themost common wayofdelivering achild.<br />

“It was everything in abox thatthe doctoror<br />

midwifewouldneed to ensureasafedelivery for<br />

mother andbaby,”explains Margaret Gurowitz, a<br />

softly spoken lifelong employeeatJ&J whoisnow<br />

thecompanyhistorian. “Sterile drapes, sheeting<br />

and sutures –and antibacterial soap with a<br />

sam armstrong/black dog represents; daisy ellen floral design<br />

‘Once my wife became<br />

pregnant…weshifted<br />

all thehigh-volume,<br />

corporate stuff out<br />

of ourhome’<br />

Gabe Landes, New York, shown above<br />

with his 15-month-old son Isaac<br />

nailbrush, so that the birth attendants could<br />

wash their hands.”The kits were packagedwith<br />

small booklets containing tips and advice for<br />

youngparents.<br />

As childbirth movedintothe hospital setting,<br />

rendering home maternity kits increasingly redundant,<br />

J&J startedtodevelop arangeofproducts to<br />

<strong>care</strong>for babies at home –anappy-rash creaminthe<br />

1910s, asoap in the1920s andamoisturisingoil and<br />

lotion in the1930s and1940s. Then, in 1954, it<br />

startedselling its famous babyshampoo, which<br />

promised there would be “No More Tears”.<br />

Oneofthe first newspaper advertisements for<br />

theproductshowedababygirl positively beaming<br />

as shehad herhair washed– afar cryfrom thetears<br />

andtangles thathad hitherto dominatedbathtime.<br />

“Won’t burn or irritate theeyes,”itpromised. “Pure.<br />

Gentle. Safe.”The product, then 59 cents abottle,<br />

was anear-instant hit andwould go on to become<br />

synonymous with bathtimefor millions of children<br />

across thegenerations.<br />

“I grew up with abathroom fullofthe stuff,”<br />

recalls CatherineEverett, the32-year-old mother<br />

of twoyoung girls, three-year-old Lyra andeightmonth-old<br />

Nina, who lives in Bridge ofAllan, a<br />

small townincentral Scotland. “I vividly remember<br />

my parents washing my hair with J&J babyshampoo,<br />

before beingshowered head to toeinJ&J baby<br />

talc. The smell still conjures up memories of<br />

Sunday-night bathtime.” She still washes her<br />

daughters’ hairwith it because, “I know it won’t<br />

sting their eyes, as Iused it for years myself.” ▶<br />

14 ft.com/magazine july 30/31 2016<br />

ft.com/magazine july 30/31 2016<br />

15


Top From left, brothers James Wood Johnson,<br />

Edward Mead Johnson and Robert Wood Johnson,<br />

who founded the company in1886 Above The<br />

company’s first factory, in New Brunswick, New<br />

Jersey Below J&J advertisements for surgical<br />

dressings (1950) and baby shampoo (1954)<br />

◀ Even after thebirth rate startedtodeclineinthe<br />

1960s in thewakeofthe postwar babyboom, sales<br />

of J&J’s infant shampoo continued to rise.The companyhad<br />

startedmarketing theproducttoadults,<br />

arguing thatifwas mild enough for babies,thenit<br />

would be gentle on their hair,too. In thelate1960s,<br />

it enlistedadvertising agency Sullivan, Stauffer,<br />

Caldwell &Bayles to record aseries of radio adverts<br />

aimedatone of the last groups of holdouts: teenage<br />

boys whohad ditched thecrew-cut hairstyles of<br />

their fathers’ generation for themop-tops of the<br />

Beatles. It worked: by 1975, the shampoo outsold<br />

all other adult andbabybrands in theUS.<br />

Thesuccess of its babyrangeisthe foundation<br />

on which J&J built oneofthe world’s biggest consumer<br />

products businesses, with arange including<br />

sanitarytowels, toothbrushes andover-the-counter<br />

painkillers. By 1970, thecompany’shygieneand<br />

baby<strong>care</strong> lines were generating more than $280m<br />

in annual sales.Adecade later, revenues had swelled<br />

to $1.8bn,making it themostlucrativepartofJ&J’s<br />

business. In 2010 they hit apeak of $10bn.<br />

For the past six years, however, J&J’s<br />

consumer business has been struggling,<br />

in part because of lacklustre<br />

sales of thebabyrange. Thecompany<br />

sold roughly $2bn of baby<strong>care</strong> products<br />

last year,about 10 per cent less than in<br />

2010. In April, it announcedthatitwould relaunch<br />

therangeafter US sales in thefirst three months<br />

of 2016 fell to $95m,their lowest in more than a<br />

decade. Caruso said thecompanywas losing out in<br />

the battle for “millennial mums”,who have been<br />

switching to organic, natural products.<br />

CatherineEverettisone such parent.While she<br />

uses thecompany’sshampoo, sheactively avoids<br />

its other products. “These days we are advised by<br />

health visitors not toput too much product on<br />

[babies’]skin, as itissosensitive,”she says.“If I<br />

use anything, Ilook for products with fewer chemicals<br />

than J&J.” In an agewhenhealth<strong>care</strong>brands<br />

are tripping over themselves to market their products<br />

as natural or organic, sheinterprets thelack<br />

of anysuch claim on theJohnson’s bottles as asign<br />

of “how potent thestuff mustbe”.<br />

In Washington DC,Robyn Pashby doesnot buy<br />

J&J products for her16-month-old daughter Alexa,<br />

preferring instead to use independently made products<br />

from local farmers’markets near herhome.<br />

“For manyyearswe’d been shopping at our local<br />

farmers’ market for ourfood anyway, andIstarted<br />

to realise thatifwe’re going to be so <strong>care</strong>ful about<br />

whatgoes in herbody, then we should be <strong>care</strong>ful<br />

about whatgoes on it too,”saysthe 39-year-old<br />

Pashby,who adds thatshe is keenly aware thatnot<br />

all parents can afford to makethe samechoice.<br />

Pashbyisparticularly put off by thefragrances<br />

used inJ&J’s ranges –“The scents just smell so<br />

fake” –and thelong list of ingredients. “I became<br />

disillusioned by products madewith things Ican’t<br />

pronounce.I’m meant to put thatonmybaby’s<br />

skin?Whenit’s so fragile?” It is notjustthatPashby<br />

is picking alternatives to J&J but thatshe is using<br />

fewer products altogether. “I don’t really use<br />

powders or lotions. Imight use coconut oil andbuy<br />

an all-in-onenatural soap,”she says,citingTom’sof<br />

Maine (owned by Colgate-Palmolive), which lists<br />

itsingredients on its websiteand alsotheir source.<br />

Pashby says she took her cue from medical<br />

experts. “WhenAlexa was in theneonatalintensive<br />

<strong>care</strong> unit at thehospital after shewas born, they<br />

Read the label: Johnson’s baby<br />

shampoo vs the independent<br />

organic brand California <strong>Baby</strong><br />

Johnson’s <strong>Baby</strong> Shampoo Ingredients: water (eau),<br />

cocamidopropyl betaine, PEG-80 sorbitan laurate,<br />

sodium trideceth sulfate, PEG-150 distearate,<br />

phenoxyethanol, sodium chloride, glycerin,<br />

citric acid, sodium benzoate, tetrasodium EDTA,<br />

polyquaternium-10, ethylhexylglycerin, sodium<br />

hydroxide, potassium acrylates copolymer, Yellow 6,<br />

Yellow 10, parfum<br />

California <strong>Baby</strong>Shampoo &Bodywash Ingredients:<br />

water, decyl glucoside*, lauryl glucoside*, quillaja<br />

saponaria extract (soap bark), vegetable glycerine<br />

USP*, calendula oicinalis flower extract (calendula),<br />

viola tricolor extract (pansy), yucca schidigera extract<br />

(yucca), aloe barbadensis leaf juice (aloe vera),<br />

simmondsia chinensis oil (jojoba oil), hydrolyzed<br />

quinoa protein, xanthan gum USP, panthenol (vit B5),<br />

pure essential oils of lavandula angustifolia (French<br />

lavender) and salvia sclarea (clary sage), phytic acid<br />

(rice origin), gluconolactone** (and) sodium benzoate;<br />

*=sustainable palm fruit kernel and/or coconut;<br />

** =sourced from corn (non-GMO)<br />

just used cotton wipes with water, andthatworked<br />

fine. Thehospital using only waterwas abig eyeopener<br />

for me.Mypaediatriciansaid unless shehad<br />

irritable skin Ishould notover-batheher.”<br />

J&J contends thathealth<strong>care</strong> professionals recommendits<br />

babyproducts more than anyother<br />

brand.Thecompanysaysitdoes more research into<br />

infant skin than anyother companyand thatits<br />

mild products help to prevent moisture loss.<br />

Dr Jon Hanifin, aprofessor of dermatology at<br />

Oregon Health andScience University,pointsout<br />

thatthe companydistributes many free samples<br />

through hospitals.“Whathappens istheydump<br />

tons of it on to nurses, whogiveitto patients, and<br />

then the parents go home and use it,” hesays.<br />

“Putting all kinds of fragrancesonthe skin can lead<br />

to irritation,and J&J has alot of fragrance in their<br />

products, which doesn’t help.”<br />

His advice to young parents is to bathe their<br />

babies no more than three times aweek andthen<br />

to trytolock moisture intotheir fragile skin with<br />

afragrance-free lotion such as Cetaphil andCeraVe.<br />

Such recommendations, however, mightnot satisfy<br />

those whosee their avoidance of J&J as arejection<br />

of big business. Cetaphil is made by Nestlé, the<br />

Swiss food giant thathas been plagued by controversy<br />

for years for promoting its infant formula as<br />

an alternativetobreast milk. CeraVeisowned by<br />

Valeant, aCanadian drugmaker thathas been in<br />

theheadlines for thepast year for sharply raising<br />

thepriceofits drugs.<br />

Infact, manyofthe best-knownpremium<br />

baby<strong>care</strong> brands are controlled by largemultinational<br />

companies,despitetheir homey<br />

packaging andcutenames.Aveenoisthe<br />

largest, with a1<strong>5.</strong>5 per cent share of theUS<br />

babyand infant skin<strong>care</strong> market, according<br />

to Euromonitor.Createdin1945, thebrand(whose<br />

mission statement declares, “Webelieve nature<br />

has thepower to makelife beautiful”)was bought<br />

by J&J in 1999, helping to hedgeagainst stalling<br />

sales of J&J’S own-brandproduct. Another leading<br />

premium brand, Burt’s Bees,ismade by Clorox,<br />

best known for household cleaning products<br />

includingbleach (thecompanynameisaportmanteau<br />

of chlorineand sodium hydroxide).<br />

The biggest independent manufacturer of<br />

natural baby<strong>care</strong> products in theUSisCalifornia<br />

<strong>Baby</strong>,founded by Jessica Iclisoytwo decadesago.<br />

“Wepositionourselvesasfor mums who want a<br />

natural focus, with no sulfatesorparabens,”she<br />

says, referring totwo of the ingredients most<br />

johnson &johnson<br />

disliked by health-conscious consumers. Sulfates,<br />

containedinmanyshampoos andoften listed on<br />

thelabel as sodium laureth sulfate,are chemical<br />

detergents thathavebeen linked to skin irritation,<br />

while parabens –which some believe affect<br />

hormone levels –are used to suppress bacterial<br />

growth in cosmetics.<br />

The products are not cheap. A19oz (roughly<br />

500ml) bottle of California <strong>Baby</strong>’s“super-sensitiveshampoo”costs<br />

around$24 on Amazon,whereas<br />

aslightly larger bottle of Johnson’s No More Tears<br />

formula is two-thirds cheaper at about $8.<br />

California <strong>Baby</strong>isaprivate companyand does<br />

notpublish its revenue figures, but Iclisoysaysan<br />

increasing number of parents are making the<br />

switch despitethe higher prices. “Today, more than<br />

ever,consumers are becoming more educated, and<br />

we are seeing amajor changeover. Originally,the<br />

demandwas from nicheconsumers interested in<br />

health andwellbeing but nowwe’re seeing customers<br />

switching over in Walmart.”<br />

Iclisoy’s main competition is not necessarily<br />

the big corporations but rather the ranks of<br />

independent players who make their wares in<br />

small batches and sell them online and at local<br />

farmers’ markets. More thanthree-quarters of the<br />

$300m US market for premium baby<strong>care</strong> brands<br />

is controlled by companies with amarket share of<br />

less than2.5 per cent,accordingtoEuromonitor;<br />

manyofthemare “mom andpop”outfits thatrun<br />

their operations out of aspare bedroom.<br />

Patricia Butter started dabbling in baby<strong>care</strong><br />

products sevenyearsago,after herseconddaughter<br />

Evelyn developed eczema, an ailment that had<br />

plagued thefamilyfor generations. Shefound that<br />

thetoiletries shewas buying in thesupermarket<br />

only exacerbated her daughter’s condition.<br />

“Everything Iboughtatthe store actually made it<br />

worse,”she says.Aroundthe sametime, shehad<br />

started growing calendula flowers on asmall<br />

vegetable patchinthe back garden of herholiday<br />

cottage inthe Catskills mountains. She soon<br />

noticed thather ownchapped,irritatedhands were<br />

much improvedafter picking theblooms.<br />

“I was able to work out howtoextractthe flower<br />

intoanoil andithelpedimmensely,and then Itried<br />

to blenditwith butter so it could be turned intoa<br />

balm,”Butterrecalls. “Evelynwas athumb-sucker,<br />

andIwas concerned about things ending up in her<br />

mouth, so Iworked only with things youcan eat.”<br />

Butter now sells three products through her<br />

Buttercup Naturals brand: acalendula oil for<br />

eczema, abalmand askin cream. Sherunsthe companyfrom<br />

herhomeinPleasantville in upstate New<br />

York, and sources her flowers from afriend,<br />

ShannonAlgiere,who grows them on anearbycommunalfarm,<br />

StoneBarns. Shesells through Etsy,<br />

thedigital marketplace, andthe farm’sgift shop.<br />

Thebusiness could be bigger,she says,but she<br />

has chosen to keep thingssmalltobalance work<br />

with family life. Shebelieves, though, thatdemand<br />

for thesortofproductsshe sells will only increase<br />

in thecoming years.“It’s partofabiggershift away<br />

from thechemical age, thepostwar excitement<br />

about using artificial foreverything. Nowpeople<br />

are going back and looking at these ingredients<br />

more <strong>care</strong>fully,” shesays.<br />

In Butter’s view, J&J’s baby<strong>care</strong> business will<br />

have to adaptifitistosurvive.“As consumers shift<br />

to organic, Ican see J&J having to change the<br />

formula to address parents’ concerns.Theywill be<br />

under constant pressure to do that.”<br />

‘I became disillusioned<br />

by products made with<br />

thingsIcan’t pronounce.<br />

I’m meant to put that<br />

on my baby’s skin?’<br />

RobynPashby, Washington DC, shown above<br />

with her 16-month-old daughter Alexa<br />

Inanother era, thedeclineofJohnson’s baby<br />

businessmight have posed an existential<br />

threattothe entire company. But J&J,the<br />

world’s largest health<strong>care</strong> group with a<br />

market value of $336bn, is averydifferent<br />

business from theone thatwas founded all<br />

those years ago. The group now makes the vast<br />

majority of its revenues andprofits from selling<br />

prescription drugs and medical devices such as<br />

replacement hips.<br />

Just oneofthe company’sdrugs,for example,<br />

thearthritis injection Remicade, generated$3.6bn<br />

in salesinthe first six months of this year –versus<br />

sales of $950m for all its babyproducts combined.<br />

Revenues from allofJ&J’s prescription drugswere<br />

$16.8bn compared to $6.6bn for the entire ▶<br />

16 ft.com/magazine july 30/31 2016<br />

ft.com/magazine july 30/31 2016<br />

17


◀ consumer business, which includes notjust baby<br />

products but well-knownbrands such as Listerine<br />

andNeutrogenatoo. These days,financial analysts<br />

whomonitor thecompanyfor investors spendlittle<br />

timetracking baby<strong>care</strong> sales andrarely mention<br />

thedivision in their reports.<br />

Yetthe numbers belie thereal importance of<br />

baby<strong>care</strong> to J&J.The late James Burke, chief executive<br />

of J&J between 1976 and1989, once said that<br />

theproducts had built a“reservoir of trust” in the<br />

company. “There is no greatertrust than between<br />

mother andchild. Sothere’s an element of trust<br />

built intoeverybody’s attitude towards J&J that’s<br />

notbuilt into manyother companies.”<br />

The same istrue today, according to Alison<br />

Lewis, the chief marketing officer for J&J’s<br />

consumer business. “It’s thefirst entrypoint of J&J<br />

into aperson’s life, because we’re talking about<br />

children and young mothers, and that’s the<br />

beginning of theJ&J relationship,”she says.<br />

Lewis is oneofthe executives tasked with reviving<br />

sales of thecompany’sbabyproducts. “It’s fair<br />

to saythatour Johnson’s babybusinessoverthe<br />

last few years has notbeen where we want it to be<br />

in performance,” shesays, adding thatthere have<br />

been 25 newcompetitors in thepremium partof<br />

themarketsince 200<strong>5.</strong> “We’re stilllearning as a<br />

bigiconicbrandhow to connectwithmillennial<br />

Ababy-powder<br />

lawsuit<br />

The reputation of J&J’sbabyproducts<br />

wasdealt asignificant blowinFebruary<br />

2016,when ajuryinMissourirequired<br />

the companytopay $72mtothe family<br />

of Jacqueline Fox, whose ovarian<br />

cancer had been linked to her lifelong<br />

use of the company’s<strong>Baby</strong>Powder.<br />

Lawyers forFox –who died aged 62,<br />

four months beforethe verdict –said<br />

J&Jhad neglected to inform customers<br />

that itstalc-based productscould cause<br />

cancer.Her case is one of roughly 1,000<br />

lodged in Missouri, while afurther<br />

200havebeen filed in NewJersey.<br />

Beforeshe died, Foxtold her lawyers<br />

she applied the powder to her genital<br />

area regularly,something that is not<br />

recommended by J&J,which warns on the<br />

label that it is forexternal use only.Her<br />

lawyers argued that the group should have<br />

gone further inmaking consumers aware<br />

of the risks,which have been highlighted<br />

in morethan 20 scientific studies. J&J<br />

arguesthat the studiesare basedon<br />

unreliable data, and pointstoother<br />

research that has found no direct link.<br />

The companyhas said it will appeal<br />

the verdict but, even if it wins, it will be<br />

hardtoundo the reputational damage.<br />

All the parentsinterviewedfor this<br />

piece had seen coverage of the trial,<br />

and cited it as one of the main reasons<br />

theywouldavoid Johnson’s products.<br />

“Therehavebeen concerns raised by<br />

mothers –ifyou go on social [media]<br />

feeds, you’ll see that,”saysJ&J’s Alison<br />

Lewis. “What we’redoing is providing the<br />

factsthat areconsistent with the safety<br />

of this product and the standards that we<br />

have had in place forover100 years.”<br />

‘You should expect a<br />

completereinvention<br />

of everyproduct line’<br />

JorgeMesquita, Johnson &Johnson<br />

mums whohavedifferent demands,”she says.“We<br />

need to makesure we are addressing their concerns<br />

aroundnatural andorganic.”<br />

Yet Lewis, who recently returned from a<br />

research trip to thetownships of South Africa, also<br />

stressesthatthe switch to premium productsisfar<br />

less pronouncedindeveloping countries. “There<br />

are 135 million babies born everyyear,and 75 per<br />

cent of those are in emerging markets, so to say<br />

thatall millennial mums can afford aproductlike<br />

California <strong>Baby</strong>isaproblem,”she says.<br />

ManyofJohnson’s recent productlaunches have<br />

beenaimed at parentsinpoorer countries, such as<br />

an extra-largebabywipe intended to takethe place<br />

of abath when there is no access to clean water.<br />

Far from acheap product, Johnson’s is regarded by<br />

manyfamilies in emergingmarkets as apremium<br />

western brand that is worthpaying more forthan<br />

domestic alternatives, accordingtoLewis.<br />

Even so, J&J’s babyproducts are notdoing particularlywell<br />

outside theUS. International revenues<br />

in thefirst six months of theyear were $754m<br />

–about $200m lowerthan fiveyears agoand their<br />

lowest since 2007.<br />

In the US, the company has launched anew<br />

marketing campaign intended toappeal to<br />

millennials, with oneTVadvertfeaturing twogay<br />

fathers –anod to therapidly changingimageofthe<br />

American family. But Lewis is aware that the<br />

companyneeds to do more to repair its reputation<br />

onTwitter andFacebook, where manyparents swap<br />

s<strong>care</strong> stories about Johnson’s products.<br />

“That’s the way insocial media –boom,<br />

andthe flick of afew fingers –and it’s notalways<br />

themost educatedpoint of view.It’safeeling, and<br />

it’s alegitimate feeling, but let’s put thefacts out<br />

there andthenlet people decide,”she says.“There’s<br />

alot of internet hyperbole out there, alot of myths,<br />

and alot of ‘mom and pops’ creating stuff in<br />

their bathtub.”<br />

Josh Ghaim, chief technology officer in<br />

J&J’s consumer division, adds thatthe companyis<br />

pushing regulators to implementstricterrules on<br />

howbabyproducts are labelled, which he believes<br />

could help the Johnson’s brand while hurting<br />

its competitors.<br />

“We believe there should be standards,<br />

especially when it comestobabies,”hesays. “It’s<br />

interesting when youhear people say, ‘Wedon’t<br />

use fragrances, we use essential oil.’ Nobody<br />

realises thatessentialoil actually has 40 different<br />

ingredientsinit. Nobody knowswhattheyare, or<br />

whether they are safe.”<br />

Theterm “natural”isill-defined. TheUSdepartment<br />

of agriculture stipulates that companies<br />

whoclaim their products are “made with organic<br />

ingredients”must be at least 70 per cent organic,<br />

but there is no equivalent rule for the term<br />

“natural”. Indeed, the vast majority of baby<strong>care</strong><br />

products thatclaim to be “natural”use an artificial<br />

preservative, such assodium benzoate, to stop<br />

bacterial growth.<br />

Ghaim says thatmorethan 80 per cent of the<br />

ingredientsinJohnson’sproducts are “naturally<br />

sourced”,but concedes thatthe wayinwhich they<br />

are processed ofteninvolves artificial chemicals.<br />

One option under consideration is being more<br />

transparent about whatisinthe company’svarious<br />

lotions andshampoos.<br />

“That’s abig area of focus for us. We believe<br />

that every ingredient that’s in the product<br />

should actuallybeonthe label or on our website,<br />

so youcan choose.”<br />

Going much further than thatcould prove difficultfor<br />

acompanyaslargeand complex as J&J.<br />

Whenthegroup committed in 2012 to removing<br />

twochemicals thathavebeen linked to cancerin<br />

animal studies, formaldehyde and 1,4-dioxane,<br />

from more than100 baby<strong>care</strong>products, theprocess<br />

took the best partoftwo years.<br />

“It’s not justabout bettermarketing. If it’s done<br />

correctly, itmeans atotallydifferent formulation.<br />

Thattakes time. Even asmall changetoaformula<br />

can takeyears,”saysIclisoy.<br />

JorgeMesquita, whowas hired from Procter&<br />

Gamble in 2014tolead J&J’s consumer business,<br />

says thecompanyisplanning amajor overhaul of<br />

Patricia Butter,founder<br />

of Buttercup Naturals, at<br />

Stone Barns Center for<br />

Food andAgriculture,<br />

upstate NewYork<br />

thebaby<strong>care</strong> business but he is tight-lipped about<br />

thetiming anddetails because he doesn’t want to<br />

tip off the competition. “You should expect a<br />

completereinvention of everyproductlineand<br />

every element,”hesays. “It’s going to be atotal<br />

reset of our business.”<br />

Mesquita believes there is everything to playfor<br />

–people are becoming parents all the time<br />

andJ&J is still,hepoints out, thegloballeader in<br />

infant skin<strong>care</strong>, with far-reaching consumer<br />

research operations andmassivemarketingbudgets.<br />

J&J’s plan, he says,“is to transform thebusiness we<br />

have today”. The company’s ownership of<br />

Aveenogives it astakeinthe natural market, and<br />

it recently acquiredVogue, an adult natural hair<strong>care</strong><br />

company, for $3.3bn.<br />

“Oneofthe thingswecan learn fromthemis<br />

about the sourcing of products created around<br />

natural ingredients,”saysMesquita.<br />

But from thesoundofit, J&J is notplanning on<br />

turning its babyproducts intoanall-naturalrange.<br />

“That’s very important for asubset of our overall<br />

consumer group,”saysMesquita, “but we are going<br />

to address theneeds of all our consumers.” 6<br />

David Crow is an FT correspondent in New York<br />

18 ft.com/magazine july 30/31 2016<br />

ft.com/magazine july 30/31 2016<br />

19

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