J&J’s Corporate Sales: $94.9 billion
J&J’s Beauty Sales—Skin, Beauty, Oral, & Baby: $7.3 billion

J&J’s Major Products/Brands:

• Johnson’s Baby Products
• Aveeno
• Clean & Clear
• Dabao
• Le Petite Marseillais
• Lubriderm
• Neutrogena
• OGX
• Sundown Vivvi & Bloom
• Listerine

J&J’s New Products:

• Vivvi & Bloom 2-in-1 Face & Body Whip Lotion
• Aveeno Eczema Therapy Rescue Relief Treatment Gel Cream
• Aveeno Tone + Texture Gentle Renewing Night Cream
• Neutrogena Scalp Therapy Anti-Dandruff Daily Control
• Neutrogena Ultra Gentle Body Gel Hydrator Lotion Pro-Vitamin B5 Moisturizer

By the Numbers

J&J’s corporate sales rose 1.3% last year to $94.9 billion. Consumer Health sales, which includes a broad range of skin health/beauty, over-the-counter medicines, baby care, oral care, women’s health and wound care products, were $15 billion, a decrease of 0.5% from 2021.

The company’s skin health/beauty sales declined 4.2% to $4.4 billion. The company attributed the decline primarily to supply chain constraints in the U.S. partially offset by price actions and strong new product performance in the Asia Pacific and Latin America regions.

Oral care franchise sales declined 8.5% to $1.5 billion compared to the prior year. The decline was due to portfolio simplification in the U.S., competitive pressures in EMEA and China, category decline and pricing pressures in EMEA, as well as suspension of personal care sales in Russia and negative COVID-19 impacts in China.

The company’s baby care sales declined 6.7% to $1.5 billion driven by category deceleration and competitive pressures in the U.S., suspension of personal care sales in Russia and weakness in India.

J&J’s 2022-2023 Highlights

Joaquin Duato, chairman and CEO, said, “2022 was a year of achievement and evolution for Johnson & Johnson.”

The company made progress in two significant undertakings: preparing J&J to operate as a faster, more focused two-sector company, and initiating the separation of its consumer health business, Kenvue. J&J achieved this despite the effects of high inflation, geopolitical tension and continued supply chain disruption.

In April 2023, Kenvue Inc. initiated a roadshow for the initial public offering (IPO) of 151,204,000 shares of its common stock. Then, in July, J&J announced plans to split-off at least 80.1% of the shares of Kenvue Inc. through an exchange offer.

With the separation of Kenvue, J&J aims to sharpen its focus on transformational innovation specifically in Pharmaceutical and Medtech. Brands under the Kenvue umbrella include Aveeno, Neutrogena, Listerine, BAND-AID and more. Thibaut Mongon will serve as CEO of Kenvue and Paul Ruh will serve as CFO. The planned split was originally announced back in 2021.

In August 2022, J&J decided to transition to an all cornstarch-based baby powder portfolio. As a result, the iconic talc-based Johnson’s Baby Powder was discontinued globally in 2023.

In May 2023, J&J was recognized by Forbes and Statista as one of America’s best employers for diversity.

In June 2023, Aveeno launched The Startup Collective, which is designed to empower Black female-identifying business owners with a chance to win a $100,000 grant with access to hands-on business guidance and mentorship from an Aveeno leader. Finalists will attend a virtual pitch competition to present their company and product.

Looking Ahead

In Q1 2023, corporate sales rose $5.6% to $24.7 billion and were bolstered by consumer health sales, which grew 7.4% as reported largely driven by over-the-counter products. Contributors to growth were Neutrogena and Aveeno.

In Q2, corporate sales climbed 6.3% to $25.5 billion. Consumer health improved this quarter to $4 billion thanks in part to Neutrogena in skin health/beauty products and Women’s Health products outside the U.S.

Corporate Sales: $93.8 billion
Beauty Sales (Skin, Beauty, Oral, Baby): $7.7 billion

Major Products/Brands: Johnson’s Baby Products, Aveeno, Clean & Clear, Dabao, Le Petite Marseillais, Lubriderm, Neutrogena, OGX, Sundown, Vivvi & Bloom.

New Products: Neutrogena Healthy Scalp Clarify & Shine with Pink Grapefruit Shampoo & Conditioner, Neutrogena Clear Coverage makeup, Neutrogena Home Compostable Makeup Removing Wipes, Neutrogena Stubborn Acne & Marks Treatments, Lubriderm Extra Dry Skin Advanced Therapy Moisturizing Cream, Band-Aid Hydro Seal Acne Blemish Patches.

Financial Highlights:

J&J’s overall corporate sales rose 13.6% last year to $93.8 billion. Consumer health sales improved 4.1% to $14.6 billion.

The company’s skin health/beauty sales climbed 2% to more than $4.5 billion. The company attributed the growth primarily to Covid-19 recovery, as well as strong performances from Neutrogena and Aveeno, and e-commerce acceleration partially offset by the divestiture of Dr. Ci:Labo – Sedona business in Asia Pacific and external supply constraints.

The company’s baby care sales climbed to $1.6 billion, an increase of 3.2% compared to the prior year. Growth was driven by Aveeno, Asia Pacific eCommerce strength, innovation and Covid-19 recovery.

2021-2022 Highlights:

In November 2021, J&J announced it would be separating its business to form a new, publicly traded Consumer Health company that will include brands such as Neutrogena, Aveeno, Johnson’s and Listerine, as well as Band-Aid and Tylenol. The planned separation of the Consumer Health business is expected to occur in 2023.

The new company is tasked with four key goals:

• Increase management focus, resources, agility and speed to effectively address differing industry trends and to better meet the needs of the new Johnson & Johnson and the New Consumer Health Company patients and consumers;
• Further focus capital allocation based on the objectives of each independent company;
• Provide each company with “a compelling financial profile” that more accurately reflects the strengths and opportunities of each business and, as a result, offers investors a more targeted investment opportunity;
• Align corporate and operational structures so each company is better able to drive growth and value creation.

In May 2022, the company announced the appointment of Thibaut Mongon as CEO designate and Paul Ruh as CFO of the company’s new Consumer Health company.

In July 2022, J&J launched Vivvi & Bloom, a premium, five-product baby care line that’s vegan, hypoallergenic, pH-balanced and was co-created by a diverse group of Millennial and Gen Z parents and caregivers. The line is formulated with nature-inspired ingredients and is not tested on animals.

In August 2022, J&J announced it would discontinue its talc-based Johnson’s Baby Powder globally in 2023 and transition to an all cornstarch-based baby powder portfolio.

Despite having weathered a flurry of lawsuits, the company stood by its long-held position on the safety of its talc-based powder, stating, “We stand firmly behind the decades of independent scientific analysis by medical experts around the world that confirms talc-based Johnson’s Baby Powder is safe, does not contain asbestos, and does not cause cancer.”

Looking Ahead:

In Q1, 2022, corporate sales rose 5% to $23.4 billion but were offset by consumer health sales, which fell 1.5% to just under $3.6 billion. J&J blamed the decline, in part, to external supply constraints that primarily affected its skin health/beauty business.

In Q2, corporate sales climbed to $24 billion. Consumer health improved this quarter to $3.8 billion thanks in part to the international performance of Neutrogena, but the business unit was still down 1.3% in comparison to Q2 2021 reported earnings.

Corporate Sales: $82 billion
Skin Health/Beauty, Baby: $6 billion

Major Products/Brands: Baby: Johnson’s; Beauty: Aveeno, Clean & Clear, Dr.Ci:Labo, Johnson’s, Le Petite Marseillais, Lubriderm, Neutrogena, OGX, Sundown; Oral Care: Listerine

New Products:  Cottontouch Creamy Baby Oil, Shea & Cocoa Butter Creamy Baby Oil, Moisturizing Almond Oil for Dry Skin, Aveeno Hair Care, Aveeno Calm & Restore for Sensitive Skin, Neutrogena Clear Coverage, Neutrogena Healthy Scalp Clarify & Shine Scalp Scrub

Comments: In a year dominated by the launch and focus on their one-dose Covid-19 vaccine, J&J’s corporate sales dipped less than 1%.

Its Skin Health/Beauty segment fell 3.1% to $4.5 billion, which the company chalked up to the Covid-related impacts and SKU rationalization partially offset by growth in e-commerce and new product innovation. Skin Health/Beauty consumer sales decreased -1.7% in the U.S., -4.6% internationally, and 3.1% worldwide.

J&J’s Baby Care segment racked up sales of $1.5 billion in 2020, a decrease of 9.4% in comparison to 2019, which the company attributed to Covid-19 related impacts, SKU rationalization and the Baby Center divestiture in the U.S. partially offset by strength in the Aveeno Baby brand. Baby Care consumer sales grew 3.7% in the U.S., but fell -13.1% internationally and -9.4% worldwide.

Oral Care was a shining light, with franchise sales increasing 7.4% to $1.6 billion. The segment was driven by sales of Listerine mouthwash due to U.S. e-commerce and club channel growth, increased stocking demand related to Covid-19 and new product launches in the Asia Pacific region. Oral care consumer sales grew +9.9% in the US, +5.7% internationally, and +7.4% worldwide.

2021 Highlights

In April, J&J launched Neutrogena Studio, a dedicated branded content studio that will produce original programming designed to “educate about the science behind skin health, celebrate beauty for all and inspire people to action.” With actress Kerry Washington as its brand ambassador, the studio released “In the Sun,” a documentary that follows seven families to showcase the long-term effects of sun exposure on the skin. The doc includes input from dermatologist, Dr. Shirley Chi, who advises on “simple, but safe, ways to enjoy the beauty of sunshine.”

In July, Neutrogena launched Neutrogena Healthy Scalp, a collection of shampoos and conditioners formulated to bring “the science of skin care to scalp and haircare.” The haircare expansion was developed through an in-house collaboration at Johnson & Johnson Consumer Health between Neutrogena and the hair care experts at Vogue International, makers of OGX and Maui Moisture. According to the company, the idea behind the new collection was driven by the growing “skinification” of haircare and a shifting consumer desire to approach haircare with more than just strand health. “Non-medicated Neutrogena Healthy Scalp starts with a healthy, gentle daily approach to overall scalp and hair health, while traditional haircare focuses on the strand, and therapeutic scalp solutions are tailored to address specific scalp concerns,” the brand stated.

July also saw J&J issue a voluntary recall of 5 types of its Neutrogena and Aveeno aerosol sunscreens due to the presence of benzene, which is classified as a human carcinogen that can be absorbed by inhalation, through the skin and orally. A company statement said that while benzene is not an ingredient in any of its sunscreen products, it was detected in some samples of the impacted aerosol sunscreen finished products. They pledged to investigate the origin of the issue.

Looking Ahead

In Q1 2021, corporate sales rose almost 8% to just over $22.3 billion. Skin Health/Beauty sales rose 4.1% to more than $1.1 billion, while Oral Care sales increased 5.7% to $417 million and Baby Care sales increased 7.7% to $389 million.

In August, Johnson & Johnson announced that Joaquin Duato would replace Alex Gorsky, as CEO effective January 3, 2022. Gorsky will continue to serve as executive chairman. Duato has been with J&J for more than 30 years, serving most recently as the vice chairman of the executive committee, and as a provider of strategic direction for the Pharmaceutical and Consumer Health sectors and oversees the Global Supply Chain, Technology and Health & Wellness teams. Duato will also be appointed as a member of the company’s board of directors.

Corporate Sales: $82 billion
Beauty and Baby Sales: $6.3 billion (Beauty $4.6 billion; Baby Care $1.7 billion)

Major Products:

• Aveeno, Clean & Clear, Dabao
• Johnson’s, Le Petite Marseillais, Lubriderm
• Neutrogena, OGX, Sundown

New Products:

• Neutrogena Healthy Scalp collection
• Neutrogena Bright Boost
• DR. CI: LABO line of dermocosmetic skin care products

Comments: In its 133rd year, Johnson & Johnson survived yet another potentially disastrous product controversy with its iconic Johnson’s Baby Powder, which made headlines with major lawsuits over the harmful (and potentially deadly) effects of talc. Corporate sales reached $82 billion. In 2019, worldwide sales increased 0.6% to $82.1 billion, as compared to an increase of 6.7% in 2018.

The Beauty division topped out at sales of $4.6 billion, an increase of 4.8% as compared to the prior year. Growth was primarily driven by incremental sales from the acquisition of Ci:z Holdings Co., Ltd., (DR.CI:LABO) in Japan, as well as market growth and share gains of Neutrogena and Aveeno products. Baby Care sales were $1.7 billion in 2019, down 9.9% compared to the prior year, primarily due to Johnson’s competition in addition to comparisons to prior year relaunch activities and the Baby Center divestiture.

In the U.S., sales of Beauty products reached $2.3 billion (down 0.4%). Baby Care sales in the U.S. tallied $362 million, a drop of 14.2% over the same period the previous year.

In September 2019, Neutrogena launched a new collection, Neutrogena Bright Boost, to help women fight dull skin. Powered by Neoglucosamine a non-amino acid sugar that boosts surface cell turnover by 10x, the line addresses the concerns of Millennials seeking new options for bright and radiant skin. The Bright Boost collection includes four key products: a Resurfacing Micro Polish, an Illuminating Serum, a Gel Cream, and a Facial Moisturizer with Broad Spectrum SPF 30.

2020 Highlights

In February, Johnson & Johnson was ordered to pay $750 million in punitive damages to four cancer victims who charged that the company’s baby powder contained cancer-causing asbestos. A jury in New Jersey took part in the court trial. The case marked the first time J&J’s CEO Alex Gorsky had taken the stand in a talc case. The company continues to defend the powdery ingredient.

Following the verdict, the judge who presided over the trial indicated that the award would be reduced to $186.5 million based on state law caps that limit punitive damages to five times the compensatory amount. The verdict was made due to the company’s failure to warn consumers—and sends a message to all product manufacturers and marketers. The jury agreed that J&J had acted “maliciously or in wanton disregard” of the safety risks of the four plaintiffs.

In May, following a brand assessment related to Covid-19, Johnson & Johnson Consumer Health decided to permanently discontinue about 100 SKUs, including talc-based Johnson’s Baby Powder. The discontinuation is only effective in the U.S. and Canada.

According to the company, Johnson’s Baby Powder represents approximately 0.5% of the total U.S. Consumer Health business. Demand for talc-based Johnson’s Baby Powder in North America has been declining due to changes in consumer habits and fueled by lawsuits filed by patients who say it caused cancer.

In July, Neutrogena expanded from skin care to launch a Healthy Scalp collection, bringing the science of skin care to scalp and hair care. The range came about through an in-house collaboration at Johnson & Johnson Consumer Health between Neutrogena and hair care experts at Vogue International, which J&J acquired in 2016.

In August, for the second year, Johnson & Johnson was named on the 2020 Fast Company Best Workplaces for Innovators list, which recognizes companies from around the world that are “encouraging bold experimentation at every level of their organization.” The company also made Fast Company’s inaugural 2020 Innovative Team of the Year list, which honors groups whose creativity and passion have driven a major breakthrough. Johnson & Johnson is one of just 10 companies to appear on both lists.

In September, Johnson & Johnson Innovation and Johnson & Johnson Consumer Health China announced the launch of the Skincare of the Future QuickFire Challenge in collaboration with Tmall, in which they called for new innovative product, service and technology innovations to help consumers solve skin care challenges—particularly for Chinese consumers, and with an emphasis on minimizing pores and anti-aging. Up to two winners will receive launch support, and $50,000.

Last year, Johnson & Johnson invested more than $11 billion in R&D, making it a top global investor in innovation across all industries.

A reflection of the pandemic, second quarter 2020 sales across the board reached $18.3 billion, a nearly 11% drop.

Corporate Sales: $81.6 billion
Beauty and Baby Sales: $6.3 billlion

Major Products/Brands:
Skincare, Sun Care and Baby Care including:

• Aveeno, Clean & Clear
• Lubriderm, Neutrogena
• OGX, Sundown
• Dr.Ci:Labo, Dabao
• Johnson’s, Le Petite Marseillais

New Products:

• Aveeno Positively Mineral Sensitive Skin Sunscreen
• Clean & Clear Lemon Zesty Scrub
• Neutrogena Hydro Boost Whipped Body Balm
• Neutrogena MaskiD
• Neutrogena Collagen Kiss Lip Mask
• Sheer Smooch Lip Oil
• Neutrogena Smokey Kohl Eyeliner
• Baby products relaunch

Comments: Despite Johnson & Johnson’s broad work across consumer, pharmaceutical and medical device segments, the company continues to be hampered by fallout from ongoing talc lawsuits. To date, there are more than 14,000 claims that J&J’s powder products caused ovarian cancer or mesothelioma, a cancer caused by exposure to asbestos. Although the company continues to deny the link connecting its products to the illnesses, in May the company was ordered to pay $300 million in punitive damages to a plaintiff who blamed the company’s talc-based products for causing her asbestos-related cancer.

In brighter news, the company’s ability to leverage innovation across its consumer platform helped grow total corporate sales 6.7% and beauty franchise sales 4.3% to $ 4.4 billion, thanks to strong performances by Neutrogena, OGX and Aveeno in the U.S. and Dr.Ci:Labo and Dabao products abroad.

In 2018 the company initiated a global relaunch of its Johnson’s Baby products line, which it’s continuing to roll out to global markets through this year. In addition to new packaging, another arm of the relaunch included disclosing 100% of fragrance ingredients above 100 parts per million (ppm) in its shampoos, washes and lotions. The transparency effort earned J&J recognition from The Environmental Working Group. At year’s end however, baby care franchise sales fell 3% to $1.9 billion.

J&J also added to its successful Neutrogena skincare range with the addition of Neutrogena MaskiD, a personalized skin care solution that address their skin’s unique needs with 3D-printed sheet masks inspired by user data. In his address to shareholders, chairman and CEO Alex Gorsky said the innovation represented “one further step toward a new model of product development where we find creative uses for the latest technology, such as digital imaging, skin analysis and 3D printing, to give consumers new ways to achieve their best skincare possible,” and is also a great example of how the company is leveraging innovation across its business segments, as their 3D printing capability originated within its medical device unit.

In other skincare news, the company offloaded RoC skin care brand to Gryphon Investors. The purchase was Gryphon’s second investment in the beauty sector after the firm acquired Indie color cosmetics brand Milani Cosmetics in June 2018.

In October, J&J made two strategic moves to bolster its beauty segment. First they signed a retail deal with eBay to sell Johnson & Johnson, Neutrogena, Aveeno, Regaine, Listerine, Nicorette and Johnson’s Baby products through the e-commerce platform. And later that month, J&J made a $2.05 billion cash offer to buy Japanese skincare company Ci:z Holdings, which owns skincare brands Dr.Ci:Labo, Labo Labo, and Genomer. J&J already owned 19.9% of the company and is its second-largest shareholder.

News of Note in 2019

In Q2 J&J’s consumer worldwide operational sales grew 2.3% to 3.5 billion (excluding the net impact of acquisitions and divestitures). The company credited strong performances by Neutrogena, Aveeno and OGX beauty products. The company’s baby care products also helped boost bottom lines.

Over the summer, J&J shook up the executive lineup in what’s now known as its Skin Health division (formerly Beauty), according to WWD. The newly named division is led by Deeptha Khanna, who was promoted to global president, Skin Health and the office of marketing value. She replaces Sebastien Guillon, formerly global president of Beauty, and Michelle Freyre, U.S. president of Beauty, who have both exited the company. Duda Kertesz was named U.S. president of Skin Health.

Corporate Sales: $76.5 billion
Beauty & Baby Care Sales: $6.1 billion (Beauty $4.2 billion; Baby Care: $1.9 billion) (FY 2017 Beauty & Baby Care Sales: $5.9 billion)

Major Products/Brands:

• Johnson’s baby products, Desitin, Aveeno, Clean & Clear,
• Dabao, Johnson’s, Bebe, Le Petite Marseillais, Lubriderm,
• Neutrogena, OGX, RoC, Sundown, Rogaine, Listerine oral care
• Vogue International, NeoStrata, La Lumiere, Dr. Ci Labo, and Hipoglós

New Products:

• Aveeno Absolutely Ageless Pre-Tox leave-on day mask lotion broad spectrum SPF 30
• Clean & Clear Acne Triple Clear
• Neutrogena Rapid Wrinkle Repair regenerating cream
• Neutrogena Hydro Boost water gel lotion and mascara
• Neutrogena Skin360 Kerry Washington essential cheek palette and essential eye palette
• Johnson’s CottonTouch baby wash and lotion

J&J Finds New Ways To Grow

Johnson & Johnson continues to find new ways to grow its 124-year-old brand, despite ongoing talc-ovarian cancer litigation and competitive brand pressures, both of which took a toll on baby care sales, which dove 4.2% to $1.9 billion. Offsetting the loss was an 8% volume gain that boosted overall corporate sales by 6.3%. The company’s beauty product segment was also strong, thanks to a reliable performance by J&J’s tried-and-true Neutrogena skincare label, as well as interest in new acquisitions Vogue International and Dr. Ci Labo. The company also acquired La Lumiére and NeoStrata brands.

The acquisitions, in combination with consumer trends in health & beauty, the aging population and naturals/organics should bode well for J&J going forward, according to Jorge Mesquita, executive vice president, worldwide and chairman, J&J Consumer, who told analysts that those trends (and others) helped J&J Consumer deliver a 3.4% CAGR from 2014-2016.

News of Note in 2018

In May, three years of R&D culminated with the relaunch of a reboot of J&J’s iconic baby care line to help combat sales that had slid a total of 20% since 2011. What’s different? The company paid close attention to the needs and wants of eco-conscious Millennial moms, and are playing up its formulas, 96% of which are now naturally derived.

Products are free of dyes (the once gold-colored formula is now clear and packaged in a translucent yellow bottle), parabens (removed in 2015) and phthalates (removed in 2009). In fact, J&J cut the number of formula ingredients by half, swapping out soybean oil and mineral oil for simpler ingredients like coconut oil, and made its ingredient lineup 100% transparent to consumers.  Also different is the packaging, which is now ergonomically made for easier one-handed use and is easier to recycle.

In light of the ongoing talc lawsuit disaster, the company also launched new baby powder products that contain cotton, called CottonTouch, that are sold alongside its existing products made with talc and cornstarch.

In February, J&J presented new scientific research at the 2018 American Academy of Dermatology annual meeting focused on advances in addressing skin health, including photoprotection, acne, cleansing and skin microbiome health.

In Q1 2018, worldwide consumer sales increased 5.3% to $3.4 billion. J&J indicated the primary contributors to the growth were OGX, Neutrogena and Aveeno. Q1 beauty sales were also a bright spot, climbing 10.4% to $1 billion. Baby care sales, however, continued to fall 14.2% to $97 million.

By Q2 ending in July, the company’s worldwide consumer sales had grown 0.7% to $3.5 billion, driven by OTC and digestive health products, as well as international beauty products, primarily Neutrogena, OGX and Dr. Ci Labo, partially offset by lower sales of baby care products. During the quarter, the company divested its anti-dandruff shampoo brand Nizoral and other ketoconazole-based shampoo brands.

Corporate Sales: $65.1 billion
Beauty Sales: $5.9 billion

Major Products/Brands: Johnson’s, Listerine, Aveeno, Clean & Clear, Dabao, Johnson’s Adult, Le Petite Marseillais, Neutrogena, Exuviance, Roc, OGX, FX, PROGANIX.

New Products: Neostrata ProSystem Retinol Peel, Exuviance Body Tone Firming Concentrate, Exuviance Retexturing Treatment, Neutrogena HydroBoost line expansion.

Comments: Anchored by its primary medical devices and pharmaceutical businesses, which make up about two-thirds of the company’s annual sales, Johnson & Johnson has continued to invest in consumer brands, most notably Vogue International (purchased for $3.3 billion) and Neostrata (the terms of this deal were not disclosed).

The company’s beauty franchise sales increased 7.3% compared to the prior year to $3.9 billion. This figure included a 9.4% operational growth and a negative currency impact of 2.1%. The operational growth was primarily due to sales from the recent acquisitions of Vogue International LLC, which contributed approximately 4.6%, and NeoStrata Company, Inc., as well as sales growth of Neutrogena, Aveeno adult products and Dabao products.

Citing competitive pressure, J&J’s baby care franchise sales fell 7.2% compared to the prior year, to $2 billion in 2016. The company also said the dip was partially offset by sales growth of Aveeno baby products.

2017 News of Note

In February, J&J Innovation LLC (JJIL) announced its investment in S-Biomedic, which developed a method to modulate the skin microbiome that is attractive for applications in the dermatological and skincare for conditions including acne, eczema, rosacea and aging.

The company is also dealing with the lingering effect of ongoing litigation pertaining to its Johnson’s brand baby powder. In March, a jury rejected a lawsuit in which the plaintiff claimed Johnson & Johnson baby power contributed to her ovarian cancer. This victory for J&J followed three similar lawsuits in St. Louis in which juries awarded a total of $197 million to plaintiffs who had made similar claims. At the time of the annual report’s printing, there were 3,100 plaintiffs with pending product liability claims and lawsuits.

Looking Ahead

According to CEO Alex Gorsky, the company’s short-term priority in its consumer stable of brands is to jump start the growth from recent acquisitions in its Beauty franchise, including Vogue International with OGX and PROGANIX hair care brands.

Corporate Sales: $70.1 billion
Beauty Sales: $7.1 billion (baby, oral, and skin care products)

Major Products/Brands: Listerine oral care, Johnson’s Baby personal care, Neutrogena and Aveeno skin care products, Clean & Clear, Lubriderm, RoC, Maui Moisture, NeoStrata, FX hair styling products, and OGX collection of shampoos, conditioners, treatments, styling products, body care and bath products.

New Products: Aveeno Daily Moisturizing Lotion Sheer Hydration, Aveeno Absolutely Ageless, Neutrogena Rain Bath, Neutrogena Hydro Boost Water Gel and Gel-Cream, RoC Multi Correxion 5-in-1 Chest, Neck & Face Cream with SPF 30, OGX Coconut Water Shampoo & Conditioner.

Comments: Johnson & Johnson’s baby care segment sales were $2 billion in 2015, a decrease of 8.7% compared to the prior year, which included 1.2% operational growth and a negative currency impact of 9.9%. Operational growth was primarily due to new product launches partially offset by competition in China.

Oral care franchise sales were $1.6 billion in 2015, a decrease of 4.1% as compared to the prior year, which included 5.2% operational growth and a negative currency impact of 9.3%.

Total skin care business sales were $3.5 billion in 2015, representing a decrease of 6% in comparison to the prior year, which included 1.3% operational growth and a negative currency impact of 7.3%. Operational growth was primarily due to sales growth of Neutrogena and Aveeno products partially offset by lower sales in China.

J&J earned accolades in March 2015 when it signed Jazz Jennings, a 14-year-old transgender activist, to be the face of its Clean & Clear skin care brand.

News of Note in 2016

Despite landing on the losing end of a costly landmark decision regarding the talc in its baby powder and the link to cancer, Johnson & Johnson scored a huge coup in June 2016 when it snagged Vogue International for $3.3 billon. The privately held company has annual estimated sales in the ballpark of $300 million, and its focus on salon-influenced and nature-inspired hair care and personal care products broadens J&J’s venerable mass market personal care reach to new consumers.

Earlier in 2016, J&J also acquired the dermocosmetics company NeoStrata, a brand known for its anti-aging technologies and research into alpha hydroxy acids.

Corporate Sales: $74.3 billion
Beauty Sales: $7.9 billion (skin care, baby care, oral care)

Major Products/Brands: Neutrogena, Aveeno, Listerine, Johnson’s Baby, Dabao.

New Products: Aveeno Daily Moisturizing Sheer Hydration Lotion, Aveeno Baby Continuous Protection Lotion Sunscreen with Broad Spectrum SPF 55,  Neutrogena Hydro Boost Water Gel, Neutrogena Healthy Skin Blush, Johnson’s Baby Head to Toe Wash, Johnson’s Baby Cologne, Listerine Naturals Rinse.

Comments: While primarily a pharmaceutical company, Johnson & Johnson’s select few consumer beauty brands are an additional shot in the arm for the New Jersey-based company—which scored the very healthy No. 6 slot on our Top 20 list.

Worldwide corporate sales for 2014 were $74.3 billion, a robust increase of 4.2% versus 2013. Domestic sales increased 9%. International sales increased 0.4%, reflecting operational growth of 3.7% and a negative currency impact of 3.3%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 8.0%, domestic sales increased 11.6% and international sales increased 5.1%.

Alex Gorsky, chairman and CEO, said, “2014 was a strong year for Johnson & Johnson, as we delivered solid financial results while continuing to make investments to accelerate growth for the long term. He noted that among advances in other areas, “We are continuing our market leadership with iconic brands in our Consumer business.”

Worldwide Consumer sales of $14.5 billion for the full-year 2014 fell 1.4% from the prior year, due mostly to an operational increase of 1% and a negative impact from currency of 2.4%. Domestic sales decreased 1.3%; international sales decreased 1.4%, which reflected an operational increase of 2.3% and a negative currency impact of 3.7%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 2.8%, domestic sales increased 3.1% and international sales increased 2.6%.

Positive contributors in the Consumer segment included Aveeno, Neutrogena, Dabao and Listerine.

Baby Care accounted for $2.2 billion ($407 million U.S.; $1.8 billion international) and fell a total of 2.2%; Oral Care reached $1.6 billion worldwide ($600 million in the U.S.; $1 billion internationally), a growth of 1.5%; and Skin Care reached $3.8 billion ($1.8 billion U.S.; $1.9 billion internationally), a worldwide growth of 1.5%. Notably, international sales fell by 1.4% but U.S. sales grew 4.7% for the year.

Neutrogena’s Hydro Boost range was a big hit with consumers, and marked the first time the brand brought its Asian technology to the U.S. marketplace. The hydration-centric Hydro Boost line consists of 10 SKUs in Asia, and J&J is gradually introducing the products in the U.S.

Corporate Sales: $28 billion
Beauty Sales: $7.6 billion (Skincare, Baby Care, Oral Products)

Major Products: Johnson’s Baby, Neutrogena, Aveeno, Dabao, Listerine.

New Products: Aveeno Daily Moisturizing Lotion with Broad Spectrum SPF 15, Aveeno Men’s Face Wash, Aveeno Baby Natural Protection Lotion Sunscreen with Broad Spectrum SPF 50; Neutrogena Naturals, Neutrogena MicroMist Airbrush Sunless Tan.

Comments: Johnson & Johnson may be a primarily pharmaceuticals and diagnostics company, but its Consumer division, with just a few key beauty brands, generates enough revenue to swing it into the first quarter of our Top Companies list. The giant corporation that serves more than a billion patients and consumers around the world every day, reported that worldwide sales increased 6.1% to $71.3 billion, compared to increases of 3.4% in 2012 and 5.6% in 2011.

The Consumer segment generated 21% of sales, a gain of 2.8% on an operational basis versus 2012.

In the Consumer category, skincare increased 2.4% and baby care, 1.8%; oral care showed a very slight gain of 0.1%. Skincare sales reached $3.7 billion, largely due to strong results from the Neutrogena, Aveeno and Dabao product lines. Baby Care sales rose to $2.3 billion. Growth was primarily due to sales of hair care and baby cleansers outside the U.S. and newly acquired products from the acquisition of Shanghai Elsker Mother & Baby Co., Ltd.

Like other of our Top Companies, J&J says it has identified specific consumer needs and major brands they think will drive growth, including Neutrogena, Listerine and Johnson’s Baby. The company says it will continue to expand globally with the acquisition of Shanghai Elsker Mother & Baby Co., Ltd, a leading baby care products company in the “naturals” segment, for the Chinese market, as well as its new Johnson’s Baby Triple Baby Protection product line, which is now entering global markets.

Bowing to consumer and regulatory pressures, J&J announced at the start of the year that it had removed formaldehyde from its baby shampoo. Plans are underway to remove the chemical from its entire product line by 2015.

For the first quarter of 2014, consumer product sales fell 3.2% to $3.6 billion; but Aveeno and Dabao skin care sales rose.

In 2013, Jennifer Aniston was named brand ambassador for Aveeno, while Kerry Washington came aboard not only as celebrity brand ambassador, but also as creative consultant for Neutrogena.

In the first half of 2014, corporate sales reached $37.6 billion. Consumer sales fell slightly in the U.S. and rose slightly internationally, for a total of $7.3 billion. Neutrogena, Baby Care and Aveeno were all contributors to the bottom line. Skin care reached $1.9 billion, with a slightly higher split going to the U.S. (rather than worldwide). Baby Care reached $1.2 billion, with the vast majority of sales in international markets.

Corporate Sales: $67.2 billion
Beauty Sales: $7.4 billion (skin care, baby and oral products)

Major Products: Baby, skin care and oral product brands including Aveeno, Neutrogena, Lubriderm, Clean & Clear, Johnson’s Baby, Desitin, Listerine, RoC.

New Products: Aveeno Positively Radiant Daily Moisturizer, Aveeno Clear Complexion BB Cream Broad Spectrum; Neutrogena Ultra Gentle Hydrating Cleanser, Neutrogena MoistureSmooth Color Stick. Clean & Clear Morning Burst Hydrating Gel Cleanser, RoC Multi Correxion 5 in 1 Daily Moisturizer with Sunscreen Broad Spectrum, Lubriderm Men’s 3-in-1 Lotion, Listerine Smart Rinse Anticavity mouthwash.

Gorsky addresses a crowd at J&J’s 2013 shareholders meeting.

Comments: In 2012, Johnson & Johnson continued its track record of consistent performance, with 29 straight years of adjusted earnings increases and 50 consecutive years of dividend increases. J&J says it’s one of only six companies in the Standard & Poor’s 100 Index to achieve that record. Despite problems such as dealing with recalls in divisions other than Consumer, the company came through with solid results in 2012. But while corporate sales rose 3.4% last year, sales of oral, baby and skin care products fell 3%.

Skin care sales fell 2.6% to $3.6 billion, as increased sales of Neutrogena were offset by competition and economic conditions outside the U.S. Sales of baby care products dropped 3.7% to $2.3 billion due to a decline in U.S. sales and the impact of negative currency exchange rates. The decline was partially offset by sales of hair care products and wipes outside the U.S. Oral care sales were flat at $1.5 billion. Increased sales of Listerine products outside the U.S. were offset by competitive pressure inside the U.S.

In April 2012, Alex Gorsky took over as chairman and chief executive, replacing William Weldon who retired in December 2012, after more than 40 years with the company. At the end of the year, Sandra E. Peterson joined J&J, as group worldwide chairman and a member of the company’s executive committee. She is responsible for the Consumer Group of Companies, information technology, and global supply chain.

Johnson’s Baby products continue to gain global ground.

Gorsky said investments for growth in the Consumer area will be based on a focused product portfolio approach to deliver science-based products with local market insights, professional endorsements and commercial excellence. He said they have taken steps to reshape their portfolio and have divested non-strategic products or brands. The company is also investing in growth and expansion in emerging markets through the acquisition of market-specific brands in countries including Russia and China. “We’re also continuing to leverage the strength of our iconic brands like Johnson’s Baby and Neutrogena,” said Gorsky.

At the end of 2012, after four years, Greek skin care specialist Korres Natural Products terminated its licensing deal with J&J, to pursue new directions.

For the first quarter of 2013, J&J reported an 8.5% rise in sales to $17.5 billion. Worldwide consumer product sales rose 2.2% to $3.7 billion, with Johnson’s baby care, Listerine and Neutrogena contributing to the increase. During the quarter, J&J (China) completed the acquisition of Shanghai Elsker Mother & Baby Co., Ltd., which is billed as a well-regarded baby care company with a strong position in the naturals segment.

For the second quarter of 2013, J&J announced overall sales of $17.9 billion, up about 8.5% compared to the second quarter of 2012. Domestic sales increased 8%, while international sales increased 9%. Worldwide Consumer sales of $3.7 billion for the second quarter showed an increase of 1.1% versus the prior. International sales of baby care products and Listerine mouthwash reportedly achieved good results.

During the last year, J&J opened product innovation centers in London and California.

In September, an announcement came that “Modern Family” star Julie Bowen will return as the face of Neutrogena next year. The actress last worked with the brand for eight years, from 2001 to 2008.

Corporate Sales: $65 billion
Beauty Sales: $7.7 billion ($3.7, skincare; $2.4, baby care; $1.6, oral care)

Major Products: Aveeno, Clean & Clear, Johnson’s Adult, Johnson’s Baby, Neutrogena, RoC, Desitin, Lubriderm, Shower to Shower, Dabao, Vendôme, Listerine, Reach.

New Products: Neutrogena Wet Skin Sunblock Spray, Neutrogena All-in-One Acne Control, Neutrogena Naturals face and lip products, Neutrogena Fresh Cooling Sunblock, Aveeno Smart Essentials, Sundown Suncare, Listerine Zero.

Comments: Despite another year plagued by the recall of several OTC products, J&J’s corporate sales rose 5.6% following two years of declines. Consumer sales rose 2% to $14.9 billion.

Growth within the consumer segment received a boost from emerging markets, with sales of skin care products rising 7.6% in 2011 to $3.7 billion due to gains from Neutrogena, Dabao, Johnson’s Adult and Le Petit Marseillais.

Baby care sales rose 5.9% to $2.4 billion with growth in cleansers, wipes and hair care sales.
Oral care sales rose 6.4% to $1.6 billion due to higher sales of Listerine.

Like other of our Top 20 companies, J&J also focused on innovation in key brands, introducing Neutrogena Naturals and Aveeno Smart Essentials, as well as Listerine Zero.

J&J made strides with sustainable packaging with its line of Sundown Suncare products, launched in new bottles made from renewable raw materials—sugarcane-based polyethylene, developed by Braskem, which contains 60% green plastic and 40% recycled material.

For the second quarter of 2012, J&J announced sales of $16.5 billion, down 0.7% compared to the second quarter of 2011. Domestic sales decreased 1.2%. International sales decreased 0.4%.

Worldwide Consumer sales reached $3.6 billion, a decrease of 4.6% versus the prior year. Domestic sales decreased 1.9% to $1.3 billion. International sales dropped 6% to $2.3 billion. International sales of oral care products, Neutrogena skin care products and baby care products were bright spots on the bottom line.Overall, skin care gained nearly 5% in the U.S., but dropped almost 8% internationally.

William C. Weldon (pictured) stepped down as chief executive at J&J, and Alex Gorsky took over the role.

The company has undergone several key personnel changes this year. In February, William C. Weldon stepped down as chief executive and Alex Gorsky, head of the medical device and diagnostics business, took over as chief executive. Weldon remains as chairman. Vice chairman Sheri S. McCoy resigned in April to become CEO of Avon Products. In September, J&J announced that Sandra E. Peterson would join the company December 1, as group worldwide chairman and member of the company’s executive committee. She will have responsibility for the Consumer Group of Companies, Information Technology, and Global Supply Chain.

Major changes were announced relating to some of the company’s mega products as well. In response to regulatory and consumer pressure, in August, J&J announced that it would remove carcinogens and other toxic chemicals from its baby and adult products globally. J&J told the Campaign for Safe Cosmetics that it would reformulate its hundreds of cosmetics and personal care products in all the markets it serves in 57 countries around the world. An internal target date of the end of 2015 was provided.

Beauty Sales: $7.2 billion (skin care, baby care and oral care products)
Corporate Sales: $61.6 billion

Major Brands/Products: Aveeno and Neutrogena skin care and sun care products; Clean & Clear teen skin care products; Johnson’s Balmex, Penatan and Natusan baby care products; Johnson’s skin and hair care products; Piz Buin and Sundown sun care products; RoC skin care products; Shower to Shower personal care products; Listerine.

New Products: Neutrogena was a major contributor to J&J’s skin care sales.

Aveeno Smart Essentials Collection, Aveeno Baby Natural Protection; Liquid Neutrogena, Neutrogena Rapid Wrinkle Repair, Shower to Shower Absorbent Body Powder, Johnson’s Natural Baby Lotion, RoC Retinol Correxion Night Cream.

Comments: New Jersey-based global giant J&J is also celebrating its 125th anniversary this year.

Although its consumer businesses still experienced effects of a slow economy, revenue and earnings continued to grow slightly. Corporate sales fell less than 1% last year. Net income rose nearly 9%. Sales of skin, baby and oral care sales rose less than 2%.

In general, sales were strongest in the U.S., followed by Europe, the Western Hemisphere (excluding the U.S.) and Asia Pacific, Africa.

By segment, skin care sales totaled $3.5 billion, a decline of less than 1%, which the company blamed on a temporary reduction in shipments of Neutrogena products due to product supply constraints partially offset by growth in the Aveeno, Johnson’s Adult, Le Petit Marseillais and Dabao skin care lines.

Baby care sales rose 4.4% to $2.2 billion, due to growth in the Asia Pacific region. J&J also credits rising sales in Asia Pacific to increased use of reusable packaging on some of its products.

Last August, J&J rolled out Johnson’s Natural, a new line of products featuring at least 98% plant and fruit-derived natural ingredients and the brand’s iconic No More Tears formula. The line consists of a foaming baby wash, baby shampoo, baby lotion, a 2-in-1 hand and face foaming wash for kids and a 3-in-1 shampoo, conditioner and body wash.

Packaging for the Naturals line encompasses a variety of eco-friendly features. The plastic bottles do not contain colorant, use up to 60% post-consumer recycled content and feature silkscreened graphics rather than labels, reducing packaging weight and waste. Furthermore, the product line, which includes three baby and two kids’ products, also links with the National Wildlife Federation.

Like other Top 20 Global Companies with their eye on Brazil—as well as other countries in the BRIC markets—J&J has focused on skin care, which continues to grow in importance with Brazilian consumers who are now more aware of the need for sunscreen.J&J has developed products that combine skin care benefits, such as anti-aging with sun protection, in order to make it easier for consumers to apply daily—as well as encouraging dermatologists to recommend the dual treatment. RoC Minesol, for instance, is the No. 1 dermatologist-recommended sunscreen brand in Brazil. J&J claims that one out of two sunscreens sold in Brazil is a J&J consumer brand.

J&J has also turned to online marketing to increase exposure and sales. In 2010 in Korea, the website for Neutrogena led to double-digit growth by providing consumers with acne solutions. Products specifically designed for online sales were credited with driving revenue. Alliances with key online retailers helped make Clean & Clear the No. 1 teen skin care brand in major online channels in Korea.

In July, J&J announced second quarter 2011 sales of $16.6 billion, up 8.3% over the previous quarter of 2010.Domestic sales increased 0.1%, while international sales increased 15.9%.
Worldwide consumer sales of $3.8 billion for the second quarter represented an increase of 4% over the prior year. Domestic sales decreased 8.5%; international sales increased 12.4%, which reflected an operational increase of 2.8% and a positive currency impact of 9.6%.

Positive personal care contributors were Neutrogena, Le Petit Marsellais, and Aveeno skin care products; and baby care products.

For the first half, worldwide Baby Care sales reached $1.2 billion; Oral Care, $790 million; and Skin Care, $1.8 billion.

Beauty Sales: $7.2 billion (Skin, baby care and oral care products)
Corporate Sales: $61.9 billion

Major Products: Aveeno and Neutrogena skin care and sun care products; Clean & Clear teen skin care products; Johnson’s, Balmex, Penatan and Natusan baby care products; Johnson’s skin and hair care products; Piz Buin and Sundown sun care products; RoC skin care products; Shower to Shower personal care products.

New Products: Aveeno—Ageless Vitality Elasticity Recharging System, Positively Nourishing body wash and body moisturizer; Johnson’s—Head-to-Toe fragrance-free baby lotion; Neutrogena—Clinical anti-aging skin care line, Men Sensitive Skin; RoC—Complete Lift Eye Pen.

Comments: Like many other of this year’s Top 20 firms, careful preparation and alternate plans helped J&J navigate a difficult year. Chairman and chief executive officer William C. Weldon commented that when 2009 began, the company faced the possibility of its first reported sales decline in 76 years. Surprisingly, at year’s end, he said, 2009 results were at or above most expectations. A portion of these results came from restructuring, with J&J eliminating about 7,500 jobs.

Overall, worldwide sales were $61.9 billion, a decrease of 2.9% from 2008. Consumer segment sales in 2009 were $15.8 billion, a decrease of 1.6% from 2008 with 2% of this change due to operational growth and negative currency impact of 3.6%. Consumer segment sales in the U.S. were $6.8 billion, a decrease of 1.4%. International sales were $9 billion, a decrease of 1.7%, with growth of 4.7% achieved by operations and a decrease of 6.4% resulting from the negative impact of currency fluctuations.

Skin Care sales grew by 2.5% to $3.5 billion in 2009. The sales growth was primarily due to the Aveeno, Neutrogena, and Dabao skin care lines. Baby Care sales reached $2.1 billion, a decrease of 4.5%. Oral Care sales were $1.6 billion, a decrease of 3.4% due to lower sales in the U.S., partially offset by growth of Listerine mouthwash outside the U.S.

Recent acquisitions such as the thriving Dabao brand in China, and Le Petit Marseillais, expanding beyond France, continue to fuel global growth. Neutrogena and Aveeno, with growth in several product lines, also contributed to the bottom line. In 2009, J&J launched Aveeno Nourish + Hair Care, among others. The company also developed new ways of doing business. To teach consumers firsthand about its scientific-based skin care products, Neutrogena opened a first-of-its-kind store in Mumbai, India. Several products were also sold on home shopping channels.

In terms of sustainability and packaging, consumer interest focused the company’s attention on refills, particularly in the Asia Pacific region. Refills now represent more than 2% of total annual Johnson’s sales in the Asia Pacific region and 5% of Johnson’s Baby washes and shampoos in that region. In 2009, Johnson’s Top-To-Toe Self-Foaming Wash 350 ml refill in Japan was upgraded to include a spout for easier opening and pouring.

Beauty Sales: $5.6 billion (skin care and baby care)
Corporate Sales: $63.7 billion

Key Personnel: William C. Weldon, chairman and chief executive officer; Colleen Coggins, worldwide chairman, consumer group. Major Products/Brands: Aveeno and Neutrogena skin care and sun care products, Clean & Clear teen skin care products, Johnson’s and Balmex baby care products, Johnson’s skin and hair care products, Piz Buin and Sundown sun care products, RoC skin care products, Shower to Shower personal care products.

New Products: Skin care—Aveeno Positively Ageless lifting and firming facial skin care, Clean & Clear Advantage Blackhead Eraser exfoliating cleanser, Neutrogena Ageless Essentials Continuous Hydration Night, Johnson’s Body Care Forever Fresh Refreshing Lotion; Hair care—Aveeno Nourish + Hair Care collection; Dabao cosmetics; Sun care—Neutrogena Utra Sheer Dry-Touch SPF 100+ sunblock.

Comments: Johnson & Johnson’s sales defied the economy and were up across the board in 2008, with worldwide, company-wide sales reaching $63.7 billion, an increase of 4.3% over the previous year. In its consumer products sector, skin care and baby care segments both grew by double digits. Skin care sales rose 10.8% to $3.4 billion in 2008, due in large part to its top-selling brands Aveeno, Clean & Clear, Neutrogena and Johnson’s adult product lines, as well as sales in China of Dabao, a Beijing-based cosmetics brand acquisition. J&J’s baby care sales grew by 11.7% to $2.2 billion in 2008.

The original pink Johnson’s Baby Lotion continues to gain new users in international markets.

In 2008, J&J introduced the Aveeno Positively Ageless anti-aging lifting and firming facial skin care line.

A large portion of J&J’s sales is generated in emerging markets where the company studies the individual culture to bring consumers affordable products they’ll relate to. For example, Johnson & Johnson enjoyed an Olympic moment at Millennium Monument Park during the Beijing 2008 Olympic Games through a sponsorship that involved four years of planning; J&J also contributed to its Olympic presence by constructing several buildings that will remain permanently in Beijing. When research showed that Chinese moms tend to apply cream to their baby’s face in the morning, but find repeat applications during the day to be wasteful, the company developed Johnson’s Baby Long Protecting Cream to meet these once-a-day needs.

Available in 175 countries, Johnson’s Baby continued to gain new users in international markets. Growth was driven by a focus on the core business, including the original pink Johnson’s Baby Lotion. Johnson’s Body Care experienced strong growth in Japan, thanks to a successful extension into adult moisturizers and cleansers. The Johnson’s brand is now No. 1 in the Japanese body lotion market and No. 2 in body cleansers.

Capitalizing on the popularity of Aveeno, J&J expanded the brand into hair care with the launch of Nourish + Hair Care.

Conditions have not been quite as rosy in 2009. For the first quarter of 2009, corporate sales fell 7.2% to $15 billion. Net earnings fell 2.5% to $3.5 billion. However, skin care sales rose 0.2% during the quarter to $842 million, on a 10.7% gain in U.S. sales to $423 million. During the first quarter, baby care sales declined 8.3% to $489 million. According to J&J, Neutrogena and Aveeno turned in good sales performances during the quarter, and sales of Dabao also contributed to the gain.

Second quarter sales reached $15.2 billion, a decrease of 7.4% as compared to the second quarter of 2008. Domestic sales declined 6.7%, while international sales declined 8.0%, reflecting operational growth of 3.9% and a negative currency impact of 11.9%. Worldwide consumer sales of $3.9 billion for the second quarter decreased 4.5% versus the prior year. Domestic sales increased 0.8%, while international sales decreased 8.4%.

For the first half, consumer product sales fell in both markets: down 2.2% domestically and 9.9% internationally.

8. Johnson & Johnson
New Brunswick, NJ
www.jnj.com
Beauty Sales: $5.1 billion for skin care and baby care products.
Corporate Sales: $61 billion

Key Personnel: William C. Weldon, chairman and chief executive officer; Christine A. Poon, vice chairman; Colleen A. Goggins, worldwide chairman, consumer group.

Products/Brands: Personal care, skin care, baby care and sun care, including Aveeno, Clean & Clear, Johnson’s, Balmex, Neutrogena, Natusan, Piz Buin, Sundown, RoC, Shower to Shower.

New Products: Aveeno Positively Ageless anti-aging skin care line, Aveeno Continuous Action Sunblock Spray, ROC Retinol Correxion hand repair; Neutrogena Ageless Restoratives.

Aveeno Positively Ageless is an anti-aging entry from J&J.

Comments: Chairman William C. Weldon stated that despite 2007 being “one of the most challenging years in recent memory,” the company achieved solid results. Worldwide sales grew to a record $61.1 billion, an increase of 14.6%, with operational sales up 11.5%. Net income, however, declined 4.3%. By division, skin care sales jumped nearly 16% to $3.1 billion. The company credited the gains to sun care, Clean & Clear, Aveeno and Neutrogena products. Last year, baby care sales rose nearly 14% to $2 billion. Acquired brands from Pfizer provided a boost.

For the first quarter of 2008, corporate sales rose 7.7% to $16.2 billion. The gain was attributed in part to strong sales of whitening and baby care products, and Neutrogena, Clean & Clear and Aveeno skin care products.

In July, Johnson & Johnson (China) Investment Co., Ltd. announced that it had acquired Beijing Dabao Cosmetics Co., Ltd. from Beijing Sanlu Factory and the Beijing Dabao Co. Ltd. Staff Shareholding Committee. Dabao’s skin care line includes products popular in Chinese households, such as Sod Milk and Beauty Day Cream.

In September, the UK’s Advertising Standards Agency requested that J&J discontinue its advertising for RoC CompleteLift face cream, saying that claims were unsubstantiated and misleading to consumers. The product claims to provide “measurable lift in just 8 weeks.”

Also in September, Christine A. Poon, J&J’s vice chairman, announced plans to retire on March 1, 2009 from the company and the board, after more than 23 years in the health care industry and eight years with the company.