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Candy | Ricola and Ricola was on its way to widespread popularity in Germany. Ricola’s move into the US was not as imme- diately successful. The company found that US consumers were not very receptive to the idea of herbs in candy. After conducting a marketing study, executives realized that they should focus on the effect of the candies – the way they helped with irritated throats, coughs and other cold symptoms. 46 Outlook 02/2008 01 02 01 Ricola’s herbs are harvested when they have gained their highest possible level of active ingredients 02 Ricola is one of the most modern manufacturers of drops and lozenges Ricola began referring to its product as a cough drop, and its popularity jumped. The company also boosted brand recognition through television commercials. “We decided to put ads on CNN,” explains Kohler. “Then the Gulf War broke out and everyone watched CNN, so we got a lot of publicity.” In the ads the company chose to focus on “Swissness.” The TV spots showed yodeling, mountains and alphorns. “People were fascinated by these new things,” says Kohler. Ricola is now well-established in the US. “When I first joined the company and traveled to the US in 1987,” says Kohler, “people didn’t know Ricola. Now when I tell immigration officials I am on business for Ricola, they sometimes pull a box of cough drops out of their pocket and sing “Riiiiico-laaaa.”
Different countries, different flavors Germans love Ricola’s sage flavored cough drops. Asian countries, on the other hand, prefer strong fruity flavors. In the United States, customers would doubt the effectiveness of a cough drop that tasted too fruity. With its international distribution, Ricola pays close attention to taste in various countries. Its original recipe with the 13 herbs was adjusted for the United States, where three of the herbs were not known. Echinacea, on the other hand, is a well known herb there added to some of the Ricola cough drops. The company also pays attention to regulations. Ricola describes its candies as one of the first functional foods, and the product often straddles the line between food and medicine, which can make things complicated. The company has adapted to an increase in the regulation of supplements and additives by making sure its production facility meets both food and pharmaceutical standards, so it can offer both cough drops and herbal candies. 01 02 03 The herbs The company now exports almost 90% of its products. After Switzerland, the highest per capita consumption is in Singapore and Hong Kong. Different flavors are preferred in different countries, but all around the world, it is the herbs that make Ricola special. The original candy contains elder, horehound, mallow, peppermint, sage, thyme, cowslip, burnet, yarrow, marshmallow, lady‘s mantle, speedwell and plantain. The herbs all come from Switzerland, where Ricola buys from about 200 farmers. The farmers follow organic guidelines, and Ricola chooses farms away from major roads and urban agglomerations. Ricola researches how to grow herbs with the best taste and the highest concentration of essential oils and other flavors. The company looks at the climate and soil conditions most conducive to those qualities and it tries to identify the best time to harvest an herb. Sometimes a plant is gathered before it blooms, other times after 50% or 70% of the bloom has appeared. 01 Company founder Emil Richterich 02 Emil Richterich’s grandson Felix is Ricola’s chairman 03 Adrian Kohler, CEO Ricola Ricola has about 400 employees, most of whom work in the town of Laufen The company has five herb gardens in Switzerland that serve as a place for visitors to become familiar with herbs. The garden closest to Ricola headquarters is at the foot of the Jura mountains. In the front, near the entrance, there is a bed displaying the 13 herbs that go into the original candy. Further back there are more beds with herbs and fruit such as lemon balm, echinacea, cranberries and currants. Each garden has all the herbs and fruits that go into Ricola’s various candies, so that visitors can see the whole plant and get a feel for where various tastes really come from. Outlook 02/2008 47
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