Independent Insights, a Health Mart Podcast

Episode 13: Foster & Thrive – Building a Lifestyle Brand

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Whether you're looking for innovative ideas or practical tips, this episode offers valuable insights for a thriving front end. Gain expert insights from Megan Baccam, Director, Product Management at McKesson, and Russell Gong, Co-founder of Cabinet Health. Listeners will discover how independent pharmacies can leverage private-label products to boost patient care and business growth in this episode of Independent Insights. 

This episode dives into Foster & Thrive, McKesson's over-the-counter private brand. Learn actionable strategies for improving margins, attracting new customers, and enhancing your front-end growth. 

Host
Suzanne Feeney, PharmD
VP, Pharmacy Retail Operations
McKesson, Health Mart

Guests
Vanessa Thompson, PharmD
Sr. Manager, Marketing
McKesson, Health Mart

Megan Baccam
Director, Product Management
McKesson

Russell Gong
Co-Founder
Cabinet Health

Resources
Health Mart Pharmacies can learn more about Foster and Thrive at https://www.fosterandthrive.com/ and Front End Insights at my.healthmart.com/purchasing/front-end-insights

Episode 7: Marketing Mastery: Transform Your Pharmacy with Proven Strategies
https://podcasts.apple.com/us/podcast/episode-7-marketing-mastery-transform-your-pharmacy/id1753117895?i=1000678415339


The views and opinions expressed in this podcast are those of the guest and do not necessarily represent the views or positions of Health Mart, McKesson or its affiliates or subsidiaries ("McKesson”). The information provided herein is for informational purposes only and does not constitute the rendering of clinical, legal or other professional advice by McKesson.

[00:00:00] Are you looking for ideas to grow independent pharmacy and make a greater impact in your community? Look no further. Welcome to Independent Insights, the podcast brought to you by Health Mart. Episodes delve into a wide range of topics to provide you with the practical strategies, expert insights, and inspiring stories to help you and your pharmacy excel.

The views and opinions expressed in this podcast are solely those of the guest and do not necessarily reflect the views or positions of Health Mart, McKesson, or its affiliates and subsidiaries (“McKesson”). The information provided is intended for informational purposes only and does not constitute clinical, legal, or any other type of professional advice from McKesson.

Pharmacists are expected to exercise reasonable care as dictated by legal and professional standards and are ultimately responsible for decisions related to patient care and medication management. It is your responsibility to review and comply with all applicable state and federal laws, rules, and regulations governing your business operations. [00:01:00] This includes laws applicable to businesses in general, those pertinent to employers, and those specifically regulating the practice of pharmacy.

Suzanne: Welcome to McKesson Health Mart, independent Insights your go-to podcast for innovative strategies and expert insights to help independent pharmacies Foster & Thrive. I'm your host, Suzanne Feeney, a vice President of Pharmacy retail operations with McKesson Health Mart. In this episode, we'll delve into the use of private label in independent pharmacies, helping you expand your patient care.

And growth strategies. Foster & Thrive is McKesson's over the counter private brand. And in this episode, you'll learn more to discover how private label can enhance your front end growth by offering high quality, cost effective options that support your patients, attract new customers help Improve your margins.

We'll also revisit key takeaways from last year's McKesson ideaShare where industry leaders shared valuable insights on maximizing front end growth by leveraging [00:02:00] private label products. With the upcoming McKesson Idea Share Conference just around the corner, now is the perfect time to learn how you can engage and plan to learn more while you're in Nashville.

Stay tuned as we re-broadcast last year's McKesson ideashare live broadcast on Foster & Thrive. You'll get practical tips, inspiring stories, and all the information you need to take care of your patients communities and Foster & Thrive your pharmacy's success.

Vanessa: Hello and welcome to McKesson Idea Share 2024 in New Orleans. My name is Vanessa Brown. I'm not only a retail pharmacist with two decades of retail under my belt. I'm also part of the marketing team that helps our Health Mart independent pharmacies. Today we've got an exciting episode.

We're gonna be talking about the power of private brands, how they Foster & Thrive your customer's experience, and [00:03:00] your business growth. Today with me, I have Megan, a senior manager of category management, who is leading the charge for our private brand, Foster & Thrive. She's played a key role in developing Foster & Thrive and ensuring that all the products and suppliers meet the quality and regulatory requirements.

How you doing today, Megan? I'm doing well. Thank you so much for having me. Of course. Happy to have you here and with us also is Russell Gong, the co-founder of Cabinet Health. McKesson has partnered with Cabinet Health to bring to life a new innovative Ecoline with Foster & Thrive. 

Russell: Thanks for having Me too.

Vanessa: Yeah. How's your experience been at ideaShare so far? 

Russell: It's been incredible. I think for a company that is a huge fan of McKeson, to see ideaShare come to life has been incredible to see different pharmacies think about how do they give real care to their patients and communities. And with the Foster & Thrive brand that Megan and team are leading, there are so many other things to be able to bring to front of [00:04:00] store.

So it's been awesome. 

Megan B.: Yeah. Fantastic experience. It's just great getting to talk to customers, seeing face to face talk about the brand and potential growth. So it's been great. 

Vanessa: Yeah. You guys have a beautiful show floor. You've got the trailer, you've got a little fireplace, you've got a relaxation station.

Russell: The Mardi Gras bands are pretty cool too. Yeah, that's been 

Vanessa: fun. Yeah, it's been fun. Yeah. I really wanna talk about Foster & Thrive. It's right front and center. Everybody's chatting about it. Megan, tell me what is the genesis of it? What do our customers need to know about Foster & Thrive?

Megan B.: Yeah, so really when we created Foster & Thrive, we wanted to create a new health and wellness brand. Something that was high quality, could match national brands, but yet provide our patients and consumers a savings, but at the same time really giving our independent pharmacies profitability with the brand.

Vanessa: The packaging is beautiful. What was the strategy [00:05:00] behind the branding? 

Megan B.: Yeah, so really first for the brand, we had to come up with a name, right? So Foster & Thrive, and we really wanted to have a name that said quality

had a feeling of trust, but also, said healthcare to anyone who is buying it since it is a new brand. And then we really designed the packaging. We wanted it to be warm and inviting. And so that's why it's softer, warmer colors but really also have it be very clean. We have a lot of customers that turn to OTC brands.

They're navigating those aisles by themselves and we wanna make it easy for them to know what they're purchasing and what the health benefits it provides them. 

Vanessa: Talk about, you said you have different colors for different categories. What are those categories? 

Megan B.: Yeah, so we have different colors and ampersands for each of our category segments.

And the first would be acute care. So it really is all those products that are gonna serve a health need. So allergy medications, pain relief. And then we have a second pillar of preventative care products. That's gonna really be all of our [00:06:00] vitamins and dietary supplements better for you.

Healthy and Thrive segment. And then we have our everyday care products, so skincare, cotton bandaids. And then we also have diagnostic care. So we have a full portfolio of blood pressure monitors and diabetic products, anything that with home care testing. 

Vanessa: Great. Yes, we actually bought just one of those blood pressure monitors for my father-in-law and it's been very useful.

Oh, great. So happy to have one of those at home. 

Russell: One thing as Megan's talking about the brand that I absolutely love about Foster & Foster & Thrive is that it's this broader platform. I think you look at a lot of other private label options or brand private label brands, so to speak, and there really aren't the platform that what Megan's shared that can cover everything from your acute needs to your proactive care needs.

And so I've had the pleasure of seeing Megan and the team really think so deeply about what independent pharmacies need, what our customers need, and. As a big fantasy to see how that platform grows. It's extremely unique from something I hadn't seen [00:07:00] before. 

Megan B.: Yeah. And then also within our category segments and our packing packaging design, we developed a unique ampersand for each of those.

And so I think that's the thought that Russ was mentioning that we put into it, is those unique ampersands really add to the package and wrap around it to give that feeling of like warmth and being cared for. 

Vanessa: Yes, it very much feels like a little hug from a little ampersand 

so we've got this wide range of products in four categories. How can the pharmacy take this private brand and make it their own? 

Megan B.: Yeah. That's a great question. We really developed this for our community pharmacies and so really having, that patient relationship at the store and having a trusted quality brand that they can, recommend to their patients really gives them the feeling of their own ownership.

'cause we want them to be their brand. 

Vanessa: So what does it mean for them, like the benefits? Why would they need to have Foster & [00:08:00] Thrive on their shelf versus just stalking every other product that every other drug store might, 

Megan B.: Private brand in general is going to give more profitability to the pharmacist.

Vanessa: I know they like hearing that. 

Megan B.: Yes. So front end products in general are gonna provide more profitability than prescription behind the counter sales. That's still, again, very price competitive to national brand products.

We always price below National products to give that consumer the savings, but you still then have that large profitability for the pharmacy. 

Vanessa: That's really important. To have a high profit margin on your front end can make a real big difference to help even out some of the things that you don't get a good profit margin on.

And the backend when you're dispensing those prescriptions, so that's really great. I really appreciate as a pharmacist when the manufacturer has that in mind and is passing on savings to the pharmacy so that they can make a profit as well. 

Russell: As we think about the profiting and sharing.

The more we talk to independent pharmacies about Foster & [00:09:00] Thrive, there really isn't a trade down. I think a lot of private labels are seen as what's the brand, and then how do I just find the cheaper price? I think what Foster & Thrive has done is it's an option that allows the pharmacist to make, as Megan just shared more money to serve their patients.

And then also patients to find, to Megan's point, really easy way finding for the weight. Whether it's the ampersand is saying, I really want Ibuprofen. I don't want necessarily the brand name right now. Or I want a set of enes in exchange I think it's a really good way to bring the patient to where they need as well as allowing pharmacists care for more than, 

Megan B.: exactly. And we know that consumers are starting to trust private brands just as much as national brands, so it's really an easy transition 

Vanessa: with that transition. What are some things that you could tell a pharmacy to say these are the reasons why Foster & Thrive would be a good decision to stock on your shelves?

'cause we know that real estate is pricey and we wanna make sure that we put the right things on our shelves. What's gonna help Foster & Thrive growth? What's the return on [00:10:00] investment for Foster & Thrive? 

Megan B.: Foster & Thrive is, has launched several media campaigns and really we wanna help drive growth into the stores.

Not only for the Foster & Thrive brand, but for the store in general. And really just increase market basket size completely for the front end so you can get that maximum profitability. So we have several media campaigns we've been on YouTube and Hulu, Facebook. We have our Foster & Thrive website with the store locator to just try to help.

Here's where you can buy Foster & Thrive to drive that foot traffic into the store and in turn, grow sales at the pharmacy. 

Vanessa: So Foster & Thrive is already creating those campaigns of brand awareness so that when they stock it and a customer comes in, they have that recognition and that trust in that brand.

Absolutely. Yes. That's great. How many products do we have now? 

Megan B.: So we have 390 products launched in less than a year. Our goal is to have very impressive, yes. Our goal is to have 500 products by the end of this year. Okay. But we are [00:11:00] still continuing and focus on growth.

We're gonna continue to look for innovative products that we can launch into the market, really find that need that, that customers aren't getting so that we can fulfill it for them. So we really watch customer shopping patterns. And what health benefits that they're looking for, so that way we can serve their name.

You're listening to Independent Insights, a McKesson Health Mart podcast with host Suzanne Feeney, VP Pharmacy Retail Operations for McKesson/Health Mart. And guests, Vanessa Brown, Senior Manager of Marketing for McKesson, Megan Baccam, Senior Manager of Category Management for McKesson and Russell Gong, Co-founder, Cabinet Health

Let's continue. 

Vanessa: You've got a new line that just launched, right? 

Megan B.: We have a brand new line that just launched on June 1st. Our eco-friendly packaging line. So we partnered with Russ and Cabinet Health and launching this line. It is made from 70% less plastic. It is an aluminum bottle and [00:12:00] so aluminum is infinitely recyclable.

We have 10 products in that today, but again, that's another line that we're looking to launch a lot of innovative products in the coming years. So we're very excited about our partnership with cabinet to bring this new idea and new packaging to life. Yeah. 

Vanessa: Russ, how did you guys decide on the products that we're actually gonna be in this line?

Russell: We do what we always do. We just do what Megan tells us to do. And take jokes aside when we were thinking through what is the role of sustainability and packaging differentiation? It's all in the name of Foster & Thrive. The brand was really started and is nurtured by looking at not just what are the needs today, but what are the needs beyond the immediate needs of health needs today.

And so we a long time ago could brainstormed or what could that mean in a way that also drives excitement to our pharmacy shelves. Excitement to the patients that make them come back to our pharmacies as well as creates a packaging that is really unique, that's [00:13:00] unavailable in some of your other different outlets of packaging.

After a number of like awesome brainstorms, we looked at what are the core medicines that really makes this first step make sense for the pharmacist and their customers? And then what are the materials available in the world that provide a sustainable option without the same single use plastic options.

It gives customers a choice between the aluminum recyclable option versus a alternative more traditional packaging. So with that brainstorm, we pick the top 10, which is allergy, pain relief, and digestive , getting the major areas of what is really needed for the patient. With that we have a larger roadmap to start thinking about other categories looking into furthering digestive SKUs, finding alternative packaging methods and and even looking beyond into other categories.

Just to answer your question directly, I think this is why we as Cabinet love partnering with McKesson. It is a [00:14:00] incredibly large platform and business with the scale and quality that comes with that. But absolutely innovative to bring something completely new to the market , to life in a really high quality way.

Megan B.: Yeah. And I would just add, our independent pharmacies are making impacts in their communities every single day. And this product is actually making an impact in the community as well with reducing plastic. And it, it really is a mission driven kind of initiative for McKesson and for a lot of independent pharmacies that wanna have a healthier community.

Absolutely. 

Vanessa: That's awesome. I really appreciate what you guys are doing. Starting out with 10 products, excited to see what'll happen next. I know that you guys are always thinking about the community pharmacy keeping us in mind. How can we make it just a breath of fresh air to walk in and go into a beautiful front end and see all these different products?

So really exciting. The branding's beautiful. The products are curated, [00:15:00] specifically selected. How can a pharmacy make this their own? Beyond just buying it and connect and getting it in their store? Yeah. What else can they do? 

Megan B.: Yeah, we certainly have other programs that we can offer to help the pharmacies make sure they're carrying the right products at the right time.

There are certain programs they could opt into if they wanted to like planograms or merchandising to make sure that they're merchandising all their over the counter products correctly.

Vanessa: Once they get this in the door, are there ways for them to measure their success? That they know that this is working for them? 

Megan B.: Yeah, absolutely. That's a great question. So we have a program called Front End Insights that McKesson offers.

It's completely free to the pharmacy, so they can go and see what their inventory levels are, how the product is performing what the profitability is that's giving to the store. They also have a whole network of all Health Mart independent pharmacies. To see what's working in that store that I may not be carrying that I need to start carrying.

And they can do that by community, by category down to [00:16:00] the product level to really kinda give them an opportunity of what, see what they might be missing and what might work in their stores. 

Vanessa: That's great. So we've got beautiful product. We've got solutions to help them, merchandise the planograms set it up beautifully.

Customers can walk in the store. We've got a new innovative eco line with aluminum that's forever recyclable. What was the term? Infinitely recyclable. Infinitely recyclable. Got it. I won't forget it Now . Did we miss anything else? 

Megan B.: I don't think so. If you're at McKesson ideaShare, 2024, please come by our booth. We have a whole eco-friendly packaging line display and a fun camper van kits can come in and color sustainable coloring sheets and play corn hole and. 

Vanessa: Yeah. Massages. Yep. And you've got a beautiful selfie wall. So for all those at ideaShare now go check out the gift shop. If you're not here, sign up next year and maybe you can come get a foot massage. 

Megan B.: Yes. Thanks for having. [00:17:00] 

Vanessa: Thank you, Megan. Thank you, Russell.

I really appreciate you talking about this brand. I'm excited to see all the products that come out. We've got 500, we're almost there. What other products are gonna come out in the eco line? So for everybody out there. Thanks for listening to McKesson ideaShare 2024, your source for pharmacy inspiration and innovation.

Stay informed, stay engaged, and keep sharing your ideas. This is McKesson ideaShare Radio. Signing off. Until next time, keep up the great work.

Suzanne: And to our listeners out there, we hope you'll join us each week as this podcast delves into all the topics out there for clinical support on Mondays and then monthly for episodes like these. And I invite all of our listeners to plug in, to hear more innovative ways to strengthen your health of your pharmacy business and take care of your patients in your communities. So we hope you'll listen in wherever you listen to podcasts. 

I'm Suzanne Feeney, vice [00:18:00] President of Pharmacy retail operations with McKesson Health Mart signing off. Stay tuned, stay inspired, and keep making a difference in your communities.

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