In an interview with Drug Topics at McKesson ideaShare 2023, Peter Koo, PharmD, Vice President and General Manager of Pharmaceutical and Healthcare Solutions at McKesson, explained how McKesson’s new private label Foster & Thrive came to be.
“Previously, we had two private labels, Sunmark and Health Mart, which sold different product categories,” Koo said. “Some dynamics have changed over the past few years; One of them is the growth in consumer demand for private labels across all industries. A considerable number of consumers are now turning to private label over-the-counter products to manage their health, considering a number of factors such as price and recognizing that the quality is on par with national brands.
As a result, McKesson decided to consider whether to consolidate the brands into one brand, as well as re-envision the brand when considering the future of the label. Thus, Foster & Thrive was born. The goal, Koo said, is to “adapt to the needs and circumstances of the current environment. We want to captivate today’s consumers by being the trusted source they are looking for with a fresh new brand. »
The thought process, Koo said, was to make sure the value was obvious to both parties: pharmacies and their customers. “I think that for independents, it is above all a question of value. It’s another way for them to reach more customers, to reach the right customers. Secondly, it is also from the point of view of profit and the possibility of earning more margin… For consumers or patients, when a pharmacy offers private label products, they have more options to a quality product at a lower cost.
Koo reiterated that Foster & Thrive will continue to grow over time; but he is confident in the starting point of this new brand. “Foster & Thrive now offers all of the previous skincare categories, from vitamins and foot care to thermometers and blood pressure monitors. So the same products we had for independent pharmacies and their customers, (are) now under the Foster & Thrive brand. With the unified private label, we also have greater opportunities to introduce more categories and new products down the line. We are laying the foundations now that will allow us to grow and create even more value for our customers in the future. »