DECEMBER 2023 DRUGSTORENEWS.COM
BD N noTM 2n Gen Pen Nee les hel en s el ver he r nsul n orre ly BD NanoTM 2nd Gen Pen Needles have a unique ontoured ase to help compensate for too much injection force, a common challenge for patients injecting insulin.1*
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go.embecta.com/pharmacypartner *N=230 patients with diabetes across Canada. Participants answered a survey as part of the cross-sectional observational behavioral study. BD helped fund this study. † The study used in-silico probability model of needle penetration depth for posted-hub 4mm pen needles and average human tissue thickness measurements across a range of injection forces and recommended sites, pooled across gender and BMI. REFERENCES 1. Bari B, Corbeil MA, Farooqui H, et al. Insulin injection practices in a population of Canadians with diabetes: an observational study. Diabetes Ther. 2020;11(11):2595-2609. . Rini C, Roberts BC, Morel D, et al. Evaluating the impact of human factors and pen needle design on insulin pen injection. J Diabetes Sci Technol. 2019;13(3):533-545. 3. Frid AH, Kreugel G, Grassi G, et al. New insulin delivery recommendations. Mayo Clin Proc. 2016;91(9):1231-1255. embecta, formerly part of BD. BD is the manufacturer of the advertised products. embecta and the embecta logo are trademarks of Embecta Corp. BD and the BD Logo are trademarks of Becton, Dickinson and Company. All other trademarks are the property of their respective owners. © 2023 Embecta Corp. All rights reserved. BD-85393
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I N S I D E Strategies for leveraging TikTok to grow your business
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Celebrating NACDS and retail pharmacy
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FEATURES 23
NACDS 90TH ANNIVERSARY This special edition report celebrates the 90th anniversary of the founding of the National Association of Chain Drug Stores and the pioneers who made strides in retail pharmacy
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INSIDE BEAUTY:
7 Strategies for Leveraging TikTok
TikTok is one of the most important platforms that marketers need to harness
23 DEPARTMENTS
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EDITOR’S NOTE
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INDUSTRY NEWS
GUEST COLUMN By Maximilian Vargas, Ph.D., MBA and Caitlin Verrilli, MBA
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PRODUCTS TO WATCH
20
WOMEN IN THE NEWS
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LAST WORD By Amir Shirazi, Pharm.D., Ph.D
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DSN (ISSN 0191-7587) is published monthly 12 times a year by EnsembleIQ, 8550 W. Bryn Mawr Ave, Suite 200, Chicago, IL 60631. Subscription rate in the United States: $150 one year; $276 two year; $17 single issue copy; Canada and Mexico: $204 one year; $390 two year; $20.40 single issue copy; Foreign: $204 one year; $390 two year; $20.40 single issue copy. Periodicals postage paid at Chicago, IL, and additional mailing offices. POSTMASTER: Please send address changes to DSN, 8550 W. Bryn Mawr Ave, Suite 200, Chicago, IL 60631. Vol. 45 No 7, July 2023. Copyright © 2023 by EnsembleIQ. All rights reserved.
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EDITOR’S NOTE
Looking Back, Looking Ahead This month we celebrate 90 years of NACDS and retail pharmacy.
“IN AN UNPRECEDENTED MOVE, DRUG STORE NEWS HAS TEAMED UP WITH ITS COMPETITOR CHAIN DRUG REVIEW AND THE EMERSON GROUP TO HELP CELEBRATE THE CONTRIBUTIONS OF NACDS AND RETAIL DRUG STORES OVER THE LAST 90 YEARS.”
This month, Drug Store News is taking a moment to look back on the last 90 years of the National Association of Chain Drug Stores and retail pharmacy, which has had a storied history, playing a role in many aspects of American life. In addition to the serious job of providing prescriptions, health care and immunizations to millions of customers, there is a fun side to the industry that is worth some acknowledgement. For example, Walgreens was the first drug store chain to use child-resistant containers. Sam Walton used his pickup truck to personally deliver merchandise to Sam’s Club Stores. In the 1980’s Walton would challenge employees to a “price check showdown,” encouraging them to find incorrectly priced items for a reward of $100. Barney Kroger used his life savings of $372 to open a grocery store in Cincinnati, Ohio. In the 1970s, Kroger became the first grocer in the United States to test an electronic scanner and the first to formalize consumer research. In an unprecedented move, Drug Store News has teamed up with its competitor Chain Drug Review and the Emerson Group to help celebrate the contributions of NACDS and retail drugstores over the last 90 years. Starting on page 22, we have an entire section that celebrates the retailers and the people that have helped make the industry the froce that it is today (The section also will appear in the pages of Chain Drug Review). This month we also take a look at the importance and relevance of Tik Tok to suppliers. Our story delves into the hottest TikTok trends and on how brands can position their strategies in the coming year and beyond. “With the year 2024 right around the corner, there’s a unanimous consensus that TikTok is no longer exclusively for young audiences— it’s a platform for everyone,” writes Sheryl Teo, founder and CEO of Popcorn Growth, a firm that helps clients leverage social media and influencer marketing to boost their brands. “It is imperative for marketers to harness it to avoid missing out on its potential.” dsn
8550 W. Bryn Mawr Ave., Ste. 200 Chicago, IL 60631 773.992.4450 Fax 773.992.4455 www.drugstorenews.com BRAND MANAGEMENT Senior Vice President & Publisher John Kenlon 516.650.2064 jkenlon@ensembleiq.com EDITORIAL Editor-in-Chief, Editorial Director Nigel F. Maynard nigelmaynard@ensembleiq.com Managing Editor Julianne Mobilian jmobilian @ensembleiq.com Senior Editor Sandra Levy slevy@ensembleiq.com Online Editor Gisselle Gaitan ggaitan@ensembleiq.com ADVERTISING SALES & BUSINESS Northeast Manager Alex Tomas 212.756.5155 atomas@ensembleiq.com Regional Manager Steven Werner 312.961.7162 swerner@ensembleiq.com DESIGN/PRODUCTION/MARKETING Art Director Michael Escobedo mescobedo@ensembleiq.com Production Manager Jackie Batson jbatson@ensembleiq.com Marketing Manager Kathryn Abrahamsen kabrahamsen@ensembleiq.com SUBSCRIPTION SERVICES List Rental mbriganti@anteriad.com Subscription Questions contact@drugstorenews.com
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Walmart Health partners with Ambetter From Sunshine Health, Orlando Health Walmart Health is entering into care agreements with Ambetter from Sunshine Health, which provides insurance to individuals through the Florida health insurance marketplace, and with Orlando Health, a private, not-for-profit network of community and specialty hospitals across Florida. The agreements will provide Floridians with increased access to affordable healthcare options. Ambetter from Sunshine Health now includes Walmart Health Centers as a preferred provider in Clay, Duval, Hillsborough, Orange, Osceola, Pasco and Seminole counties in Florida through the Ambetter Value Plan. The relationship will initially focus on patient engagement through care coordination and referral management. This collaboration marks an expansion of the existing relationship between Walmart Health and Ambetter Health, the largest and longest-running carrier on the health insurance marketplace and one of the healthcare programs provided by Centene. The relationship started earlier this year as the companies collaborated to enhance awareness of Medicaid redetermination efforts and expand access to marketplace health insurance within Walmart Health centers. “We continue to look for ways to make health care even more
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accessible to the communities we serve,” said Richard Fuchs, senior vice president, sales, strategy and innovation at Walmart. “Both Walmart Health and Ambetter Health share a focus on serving local communities, and this collaboration will enable more Floridians to access care. We’re excited to offer Ambetter from Sunshine Health members quality care in one location, conveniently located adjacent to Walmart Supercenters where many members already shop for groceries and everyday essentials.” “Centene’s mission is to transform the health of the communities we serve, one person at a time,” said Kevin Counihan, CEO of Ambetter Health. “By working together with Walmart Health in Florida, we are well-positioned to help deliver quality, affordable healthcare options in new locations across the state. Ultimately, this will broaden access to care for more Floridians through Ambetter from Sunshine Health.” Marketplace open enrollment runs from Nov. 1, 2023 through Jan. 15, 2024. Ending dates will vary by state. Additionally, Walmart Health and Orlando Health are working together to serve the Orlando community through care coordination activities designed to make it easier for Orlando area residents and their providers to coordinate a patient’s healthcare. By working together, Walmart Health and Orlando Health have agreed to align on their approach to serving patients and managing patient outcomes by streamlining the patient experience through effective transitions of care and ensuring robust communication between Walmart Health center and Orlando Health providers. “By collaborating with Walmart Health and focusing on care coordination in the shared patient populations, we’ll be better positioned to more quickly identify patient needs and improve outcomes together in the Orlando area,” said Cary D’Ortona, senior vice president, Orlando Health and president of Orlando Health Medical Group.
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Aetna CVS Health co-branded ACA exchange products to be offered in 17 states Aetna, a CVS Health company, will now offer its Aetna CVS Health co-branded insurance product on the individual insurance exchange marketplace in select counties in 17 states. Enrollment began on Nov. 1. For Jan. 1, Aetna is adding Indiana, Kansas, Maryland, Ohio and Utah to its existing 12 states (Arizona (Banner Aetna), California, Delaware, Florida, Georgia, Illinois, Missouri, North Carolina, New Jersey, Nevada, Texas and Virginia. “Our plans bring together the quality coverage of Aetna, plus the convenience of CVS, all at an affordable price,” said Anand Shukla, senior vice president, Individual and Family Plans at Aetna. “Our members can access quality care through
Aetna’s network of doctors, hospitals and specialists; affordable care with $0 preventive care, $0 virtual care and $0 MinuteClinic visits; and the convenience of 24/7 access to virtual care and choice of over 1,000 MinuteClinic locations nationwide.” Beginning Jan. 1, 2024, subscribers enrolled in an Aetna CVS Health Individual and Family Plan will now have up to a $100 annual allowance, or $25/quarter, for over-the-counter CVS Health branded products at CVS retail stores and online—from pain relievers and cold medicine to bandages and more. Members can conveniently shop for eligible products in-store, online or over the phone. And the member does not have to do anything except be an enrolled member. “This unique benefit to our individual and family plans is a critical next step in providing a continuum of care
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for members,” said Shukla. “Overthe-counter items are an important part of health care. Easier access to and helping with the cost of these items will contribute to improved health outcomes. This is how healthier happens together.” Members can obtain 20% off CVS Health brand items at CVS, with the savings barcode on the back of their ID card. Bringing together medical, pharmacy, over-the-counter and store discounts on this ID card is a first for Aetna. With the launch of these plans, members will have access to the comprehensive Aetna network of primary care doctors, mental health providers, specialists and hospitals. Plus, convenient and affordable care options are available through telehealth and MinuteClinic and HealthHUB locations— removing more barriers to accessing care, the company noted.
Publix names new executive chairman, CEO and president Publix announced that effective Jan. 1, CEO Todd Jones will become executive chairman, President Kevin Murphy will be promoted to CEO and Senior Vice President John Goff will be promoted to president. Chairman of the Board Ed Crenshaw will remain on the board of directors as Chairman Emeritus. Jones worked in various positions before becoming a store manager in 1988. He was promoted to district manager in 1997, regional director in 1999 and vice president of the Jacksonville division in 2003. In 2005, Jones was promoted to senior vice president of product business development. He was named president in 2008, CEO and president in 2016 and CEO in 2019. Murphy worked in various positions before becoming a store manager in 1995. He was promoted to district manager in 2003, regional director in 2009 and vice president of the Miami Division in 2014. In 2016, Murphy was promoted to senior vice president of retail operations. He was named president in 2019. Goff worked in various positions before becoming a store manager in 2005. He was promoted to district manager in 2010, regional director in 2014 and vice president of the Miami division in 2019. In 2022, Goff was promoted to senior vice president of retail operations.
DRUGSTORENEWS.COM December 2023
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INDUSTRY NEWS
BJ’s Wholesale Club opens 1st location in Alabama BJ’s Wholesale Club opened a new club location in Madison, Ala. The club, located at 165 Graphics Drive, is a part of Town Madison and just minutes from Toyota Field. The new location is BJ’s 239th club and Alabama becomes the company’s 20th state. The new club features a BJ’s Gas location on-site, with the opportunity to earn extra savings through BJ’s Fuel Saver Program. The Madison BJ’s Gas station opened on Thursday, Oct. 26. “We’re thrilled to open the Madison club, our first location in Alabama,” said Tommy Metheny, club manager at Madison BJ’s Wholesale Club. “As we gear up for the holiday season, we can’t wait to bring BJ’s unbeatable value and convenience to this community. I want to thank both our great team for its commitment to serving our members and the community for giving us such a warm welcome.” BJ’s noted that it helps members save time and money by offering value on everything they need in a convenient one-stop shop, including a wide assortment of fresh foods, produce, a full-service deli, household essentials, pet supplies, various exclusive offerings and much more. The club also will delight shoppers with a treasure-hunt experience with a variety of seasonal favorites, home décor, fashion for the family, top
ACTIONABLE INSIGHTS & CONNECTIONS POWERING BUSINESS GROWTH EnsembleIQ is the premier resource of actionable insights and connections powering business growth throughout the path to purchase. We help retail, technology, consumer goods, healthcare and hospitality professionals make informed decisions and gain a competitive advantage.
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trending toys, hot tech and a selection of local products. At BJ’s Wholesale Club, members also can shop how they want by choosing from a variety of convenient shopping options like in-club shopping, curbside pickup, in-club pickup, same-day delivery and standard delivery from BJs.com. When shopping in-club, members will have access to ExpressPay through the BJ’s mobile app, a service that allows shoppers to scan products as they go and avoid the checkout line at the end of each trip.
Schnucks, Upside unveil co-branded mobile app Schnuck Market and Upside are launching a co-branded mobile app, aimed at creating additional savings for members of the Shnucks Rewards program. This new app will enhance the experience for Schnucks Rewards members and also provide them with opportunities to connect with other local retailers who also are part of Upside’s digital marketplace. The app pilot will be available in seven Evansville, Ind.-area stores. Schnucks said it is always looking for opportunities to provide its Schnucks Rewards members with unique programs and opportunities to save. “Our collaboration with Upside and the launch of this co-branded app pilot in Evansville showcase our commitment to delivering value and supporting the community, “ said Bob Hardester, Schnucks senior vice president/
chief information officer and chief supply chain officer. Schnucks Rewards members will receive prompts to download the Upside app either via email or a QR code. Once registered, customers will gain access to the complete range of Upside offers within the Schnucks app, including participating fuel and restaurant retailers. After successfully redeeming offers, users cash out their Schnucks Rewards dollars, which are directly deposited into their Schnucks Rewards account. “Upside and retailer loyalty programs serve complementary purposes, and in fact they’re best together,” said Tyler Renaghan, Upside’s vice president of grocery. “Our data proves Upside’s effectiveness in attracting new loyalty sign-ups in a cost-efficient manner. With Schnucks, we’re taking it a step further with our new co-branded app, a tool we’re confident will play a pivotal role in helping the company achieve its loyalty program goals.” Since their partnership began in October 2021, Upside and Schnucks have jointly generated more than $90 million in sales, resulting in more than $20 million in incremental (net-new) profit, translating to a 43% return on investment, the company said.
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Congratulations to Quest Products Director of Customer Development and Insights, Lauri Gosline, named to Drug Store News Top Women in Health, Wellness & Beauty. We celebrate Lauri and all the women at Quest Products and the industry making great contributions every day!
Congratulations to NACDS 90th Anniversary and Community Pharmacy Retailers
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DRUGSTORENEWS.COM December 2023 15 11/17/23 12:21 PM
P R O D U CTS TO WATCH
New & Noteworthy HRG’s five notable products from November 2023
Product introductions slowed for the second straight month in November, after showing a modest bump in September. For the month of November, suppliers introduced 74 new products, which is 10 fewer items than the 84 they released in the previous month. Waukesha, Wis.-based HRG reviewed nine products in the health category, 42 items in the wellness sector and 23 items in the beauty aisle to see which ones stood out as Products to Watch. Here is what they found:
1. Narcan Nasal Spray 4 mg Emergent Devices’ Narcan Nasal Spray is now available over the counter to assist in an opioid overdose emergency whether at home, work or on the go. Available in its original prescription-strength, it’s designed to be easy to use—no nasal swabs or needles needed. Emergent claims the spray is safe and can quickly reverse an opioid overdose in minutes when used correctly. It comes in a two-dose pack.
2. Vitafusion Melatonin-Free Sleep Gummy Church & Dwight’s Vitafusion Melatonin-Free Sleep gummy is formulated with 200 mg of Lutemax 2020 plus passion flower, chamomile flower and lemon balm leaf (in each serving) to help support sleep quality in adults. The product is made with no artificial sweeteners, gluten, high fructose corn syrup, dairy or synthetic FD&C dyes. One bottle contains 40 gummies in a natural tart cherry peach flavor.
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3. Tylenol Precise Cooling Pain Relieving Cream Tylenol Precise Cooling Pain Relieving Cream from Kenvue is formulated with lidocaine (4%) and menthol (1%) to provide maximum strength relief without a prescription, the brand said. The rollerball provides a non-messy application to target external pain. It comes in a 4-oz. tube.
4. Gillette Intimate i3 Men’s Pubic Hair Trimmer Procter & Gamble said it developed the Gillette Intimate i3 Men’s Pubic Hair Trimmer to be tough on hair but gentle on skin below the waist. The trimmer is cordless, can be used wet or dry and has SkinFirst technology, which has closely spaced blades to reduce skin bulging and help protect sensitive skin. Its Li-Ion battery provides up to 80 minutes of trimming. One trimmer per package.
5. Hyland’s Naturals Menopause Multi + Youthful Skin Capsules Hyland’s Naturals Menopause Multi + Youthful Skin Capsule is a multivitamin designed to support daily wellness focusing on women over 50 years old. The capsules are formulated with chasteberry, red clover, ashwagandha and L-theanine to help in the reduction of hot flashes and mood swings. Ingredients biotin, collagen and silica are included to promote supple, glowing skin. One bottle contains 60 capsules. dsn
MARCH SUNDAY • MONDAY • TUESDAY
GUEST COLUMN
A New Environment for Biosimilars
As demand continues to grow, biologics’ impact on rising medical costs needs to be considered By Maximilian Vargas, Ph.D., MBA and Caitlin Verrilli, MBA
Maximilian Vargas, PhD, MBA, is Vice President of U.S. Access Strategy and Account Management for Certara Evidence & Access. Caitlin Verrilli, MBA, is Director of U.S. Access Strategy for Certara.
Biological medicines, or biologics, are now a treatment mainstay for diseases and autoimmune disorders, yet these medications cost tens to even hundreds of thousands of dollars per patient, per year. As demand continues to grow (the market is expected to reach $596.65 billion by 2029), biologics’ impact on rising medical costs needs to be considered. In 2017, biologics only accounted for 2% of U.S. prescriptions by volume but made up 37% of prescription drug net spend. Notably, the top 10 Medicare Part B drugs in terms of expenditures are all biologics. Since their introduction, biosimilars (almost identical copies of an original biologic product) brought with them potential cost savings for patients and healthcare systems. In 2017, generics comprised 90% of prescriptions but made up only 23% of prescription spending. However, in the decade since the regulatory pathway to approve biosimilars was signed into U.S. law, savings materialized slowly. Now, The Inflation Reduction Act is poised to usher in an environment that is more accepting of biosimilars. Enacted in August 2022, the IRA seeks to lower prescription medication costs for Medicare beneficiaries, reduce drug spending by the federal government and change physician economics to boost biosimilar adoption. In October 2022, the Centers for Medicaid and Medicare Services instituted one of the first provisions of the IRA: a temporary, five-year reimbursement increase for biosimilars. Previously, under Part B’s standard reimbursement, providers lacked incentives to prescribe biosimilars. Cost recovery to the physician for the originator biologic is often higher than a biosimilar, and switching requires administrative work and patient education. Second, beginning in 2026, the IRA will require the federal
18 December 2023 DRUGSTORENEWS.COM
government to negotiate prices for some drugs covered under Medicare Part B and Part D with the highest total spending. Medicare Part D and Part B drug spending is highly concentrated among a relatively small share of covered drugs. However, under the new Drug Price Negotiation Program, the federal government is required to negotiate prices with drug companies for biologics without biosimilar competitors that are covered under Medicare Part D (starting in 2026) and Part B (starting in 2028). Importantly, under the IRA, drugs for which a biosimilar is available will be exempt from price negotiations. Additionally, if manufacturers of reference drugs manage to delay biosimilar entry beyond a two-year window, they won’t be allowed to delay price negotiations and they may have to pay money back to Medicare.
In 2017, biologics only accounted for 2% of U.S. prescriptions by volume but made up 37% of prescription drug net spend. Notably, the top 10 Medicare Part B drugs in terms of expenditures are all biologics. Financial pressure on health plans from IRA provisions may also increase biosimilar uptake. Beginning in 2025, patient outof-pocket Part D costs will be capped at $2,000 annually, and plans’ share of treatments’ costs above the cap increase from 15% to 60%. A new RAND Corporation study estimates savings from biosimilar adoption to be $38.4 billion, or 5.9% of projected total U.S. spend on biologics from 2021 to 2025. As IRA provisions are activated, the law’s impact on biologics and biosimilars will become more apparent. By using both the carrot and the stick, the IRA may finally bolster the market, increasing uptake of biosimilars to benefit patients and help lower costs. dsn
WOMEN IN THE NEWS
Leading the Charge
Caroline Callaway, president and founder of Bolt PR, shares why the consumer product sector needs more women in C-Suite leadership roles. By Julianne Mobilian
Drug Store News caught up with Caroline Callaway, president and founder of Bolt PR, a public relations and digital marketing agency. Callaway is an integrated communications professional with more than 20 years of B2B and B2C marketing experience, and her goal is to empower women in C-suite level leadership roles. In our Q&A, she discusses why women in the consumer products sector bring unique strategies to the table, and why visibility and representation in these roles are important. Drug Store News: Can you share how your background inspired you to start Bolt PR? Caroline Callaway: Understanding new perspectives has always been my source of inspiration. Through high school and college, I worked in various sectors including retail, customer service, food and beverage, hospitality and in-house B2B marketing. Each of these experiences gave me firsthand insights into the inner-workings of these types of businesses – both the challenges and the opportunities. As I stepped into my first PR agency internship, I realized
“A critical piece of the overall brand storytelling is telling balanced and diverse viewpoints, representing multiple leaders across the C-suite, including and especially women, as those are stories that have not been told nearly as much over the years.”
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I had found my calling. Taking the in-house perspectives and being able to relate to our clients and their experiences fueled my understanding and connection with the brands and the people behind them. As I continued down my PR career path, I worked for a small agency, in-house for a B2B software company, back to a midsize PR agency, then back in-house once more for a B2B software company. It was then that I realized how important the connection to the people behind these brands was for me, so I ventured out to start my own agency, working directly with entrepreneurs across food and beverage, retail, hospitality, B2B and other verticals. My deep understanding of their business operations combined with my marketing and PR mindset allowed me to meet clients where they are and build meaningful communications programs together. Fast forward nearly 17 years and we’re still working in lockstep with brands to meet them where they are and set the stage for accelerating their growth. DSN: What unique qualities or strategies do women leaders in the consumer products sector bring to the table? CC: The amazing thing about women is, what don’t we bring to the table? We bring business acumen, innovation and creativity, leadership and strategy, and combine that with empathy, understanding, and unique perspective as primary household purchasers. Add another layer to that, we have seen firsthand the sense of community among women, perhaps most readily observed through the support women give other women in recognizing one another’s achievements. We know a rising tide lifts all boats, and women are not afraid to celebrate and amplify one another; women know there are plenty of wins to go around, and it’s an incredible
thing to witness. Organizations who do not have women in leadership positions are missing out on so much more than a diversity checkbox; they’re missing out on understanding and connecting with a huge population of their buyers. DSN: How does Bolt PR work to increase the visibility and representation of women in consumer product C-suite leadership roles? CC: PR is about great storytelling, and we are humbled to be entrusted to tell the stories of so many innovative leaders in the consumer products category. More than just talking about the products, our clients are the people behind the brands who bring tremendous value in sharing their perspectives, insights and learnings. A critical piece of the overall brand storytelling is telling balanced and diverse viewpoints, representing multiple leaders across the C-suite, including and especially women, as those are stories that have not been told nearly as much over the years. We are fortunate to have so many women shattering the glass ceiling in the C-suite of consumer products companies, and we are proactive in seeking out their voices and points of view specifically to share on a larger platform through thought leadership interviews and articles, speaking engagements and awards. We aim every day to be an active contributor in helping to elevate women’s voices across the sector and give access to future women leaders to hear the stories of these successful women and inspire their own pursuits. DSN: Innovation is essential in today’s consumer products landscape. How does Bolt PR work with female leaders to foster innovation and disrupt traditional industry norms? CC: Bolt PR’s role in fostering innovation and disrupting traditional industry norms comes in the form of empowering women to talk about innovation and in creating a platform to reach and inspire others. We ask questions, uncover motivations, define purpose, and collaborate with our clients to explore what’s possible. For example, if we’re exploring a use case for a product and the intended audience, our team is not afraid to ask about who or what else this product may be a solution for, suggest other opportunities, and prompt new ways of thinking through individual and shared experiences. Creativity is in our DNA and, as communicators,
we pride ourselves on working with fellow female leaders as partners to continue innovating, collaborating and communicating their unique voices and messages in the industry. DSN: Can you provide insights into the long-term vision for Bolt PR’s efforts to empower women in consumer products and the impact you hope to make in the coming years? CC: Bolt PR has found a niche in partnering with consumer products companies and the brilliant minds behind these innovative products. Our vision has not wavered over the past nearly 17 years: simply put, we’re here to make an impact. We’re here to be an integral partner to consumer products brands – to put them on the map, to tell their stories, and to highlight the people behind these brands who make the offerings all the more special. In doing this, we enjoy the continued opportunity to meet and elevate the profiles of women in the consumer products space. We see our role as one of empowerment - to work in partnership to uncover their narratives, define their thought leadership platforms, and create opportunities for them to educate, inspire and encourage not just women, but an entire category. We see our role as continuing to make impact by spotlighting perspectives and, as a women-led agency, amplifying the voices of our fellow women in consumer products. dsn
“We know a rising tide lifts all boats, and women are not afraid to celebrate and amplify one another; women know there are plenty of wins to go around, and it’s an incredible thing to witness.”
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elcome to this special section, which celebrates the 90th anniversary of the founding of the National Association of Chain Drug Stores, the unrivaled organization that has faithfully represented and legitimized the chain pharmacy business in America.
and in doing so we also hope to inspire their successors. Many of these leaders are already putting their stamp on chain drug retailing in America. By building on the achievements of their forebears, they are further transforming and advancing an industry that is as American as, well, apple pie.
In celebrating NACDS in these pages we are also remembering and recognizing the achievements of the many organizations and individuals who, individually and collectively, have transformed a group of sometimes ragtag corner drug stores into one of the most powerful retail organizations this nation, and indeed the entire world, has yet been privileged to witness.
By celebrating the people and companies that have helped NACDS get to where it is today, this special report aims to honor the association and the industry it represents on this milestone anniversary. As we celebrate the National Association of Chain Drug Stores and wish it a happy birthday, we are not just looking back with fond remembrances of past achievements. We can also look confidently toward a future of continued progress as NACDS helps advance the dramatic, ongoing, and achievementfilled story of chain drug stores, retail pharmacies, and their ever-evolving and indispensable business of health care and consumer well-being in America.
In this edition, we recount the contributions of some of the legends of our industry—people like Sam Walton, Sam Skaggs, Cork Walgreen, Bud Fantle, Jim Harrison, Henry Panasci, Alan Levin, Leonard Genovese, and so many others—
Special section presented by
CVS HEALTH When Stanley Goldstein and his partners opened the first Consumer Value Store in 1963 in Lowell, Mass., little did he—or anyone—know it would morph into a $339 billion Fortune 10 diversified health care company. The store’s name wasn’t even changed to CVS for a year, and the inchoate chain didn’t even have pharmacies until 1967. By 1988 the retailer had 750 stores and sales of nearly $1.6 billion. The period of 1990 to 2004 brought major expansion with the acquisitions of Peoples Drugs, Revco and Eckerd stores. The multichain retailer Melville Corp., which had bought CVS in 1969, became CVS Corp. in 1996 under a massive reorganization plan that would leave the newly named company solely as a drug store operator. CVS began a transformation in 2006 with the purchase of MinuteClinic, the leading provider of in-store health clinics. More dramatic change came the following year with the acquisition of Caremark, today the biggest pharmacy benefits manager. Further diversification came in 2014 and 2015 with the purchases of Coram infusion services and Omnicare, a pharmacy services provider for patients and residents of post-acute facilities and senior living communities. Six years ago brought the proposal to combine CVS and Aetna in what would be the biggest health care merger in U.S. history. In 2018 the proposal became a reality. Three years later, Aetna president Karen Lynch became president and chief executive officer of CVS Health. With an emphasis on primary care, CVS just this year completed acquisitions of Signify Health, a leading technology and services company focused on provider enablement and bringing clinicians into the home, and Oak Street Health, a multipayer, value-based primary care company helping older adults stay healthy.
KAREN LYNCH CVS Health Since Karen Lynch became president and chief executive officer of CVS Health in February 2021, she has upheld the company’s tradition of visionary leadership. Under her direction, CVS has continued to expand and diversify its suite of health care capabilities in an effort to enhance patient access, improve outcomes and reduce costs. Lynch— who joined CVS via the 2018 purchase of health insurer Aetna, where she served as president— spearheaded two major acquisitions: Signify Health, which specializes in health risk assessments, valuebased care and provider enablement, and valuebased primary care provider Oak Street Health. The move into primary care, as well as an emphasis on the deployment of digital technology to better communicate with patients (and front-end retail customers), is in keeping with Lynch’s belief that the multichannel, multiplayer model that CVS is building—other major components of which include the eponymous drug store chain and the nation’s largest PBM—represents a significant step toward fixing the troubled U.S. health care system.
TOM RYAN CVS Health Tom Ryan spearheaded efforts to put CVS on the map on a national scale. As the chairman and CEO from 1998 to 2011, he played a huge part in the company’s meteoric rise. Ryan, who started his career as a pharmacist, helped drive the early expansion of CVS from its New England roots into bigger strategic markets. In 1994, he was named the third president and CEO in the company’s history; adding the title of chairman in 1998. He oversaw the transformation of CVS from a drug chain focused on the Northeast into a comprehensive pharmacy services company, with a national footprint and revenue of approximately $100 billion in 2010. Ryan’s innovative approach to health care and customer service culminated in 2007 with the merger of CVS and the Caremark PBM, a groundbreaking event that created a new business model. At that time, as the largest integrated pharmacy health care provider in the nation through its more than 7,000-store retail pharmacy operation and leading PBM business, CVS Caremark filled or managed more than 1 billion prescriptions annually.
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CHRIS BODINE CVS Health
LARRY MERLO CVS Health It would be hard to overestimate the value of the contributions that Larry Merlo made to the growth and transformation of CVS Health. He joined the company in 1990 as part of the Peoples Drug acquisition, the first in a string of transactions that made the regional drug chain into the largest pharmacy operator in the United States. As he rose through the ranks at CVS, Merlo played a pivotal role in the seamless assimilation of acquired assets. After becoming chief executive officer of the company in 2011, he succeeded in making the Caremark PBM, which was acquired in 2006, a growth engine for the entire business, despite calls by some financial analysts to consider a spin-off or divestiture. Trained as a pharmacist, Merlo’s dedication to maximizing CVS’ impact prompted the expansion of MinuteClinic, an effort to make healthcare more accessible and affordable, as well as the 2018 acquisition of Aetna, which further extended CVS Health’s reach across the continuum of care. One of Merlo’s most notable moves was the decision in 2014 to eliminate tobacco products from the merchandise mix.
Few executives played as important a part as Chris Bodine in elevating the CVS brand. During his almost quarter century with the company, Bodine had a major impact on both the front end business and health care offerings. He is arguably best known for his contributions as the chief merchant, which enabled the drug chain to consistently deliver a dynamic shopping experience, one that CVS relied on as a differentiator in a crowded marketplace. At the same time, Bodine honed the merchandise mix to ensure that the retailer was always in sync with the changing needs of its customers, and helped bring about the seamless assimilation of acquired as sets, including a series of rival drug chains and the pharmacy benefits manager Caremark. Following the merger with the PBM in 2007, Bodine served as CVS’ president of health care services, working to integrate the company’s growing suite of health care assets and its core retail pharmacy business.
HARVEY ROSENTHAL CVS Health Harvey Rosenthal established the pattern for CVS Health’s explosive growth. When he joined the company in 1969, it was known as Consumer Value Stores, with 45 health and beauty aids outlets in New England and annual sales of just $15 million. By the time Rosenthal’s decadelong tenure as chief executive officer ended in 1994 (when he was named president and chief operating officer at CVS’ parent company, Melville Corp.), the retailer had more than 1,300 stores and some $4 billion in revenue. The inflection point in that development was Rosenthal’s decision to buy Peoples Drug, a move that took CVS into the Mid-Atlantic states and Washington, D.C. The deal and subsequent seamless integration of the two chains established a model that served CVS well. Throughout the 1990s and into the new century, the company executed a series of major retail acquisitions, including Revco, Eckerd, Sav-on and Osco, making it the largest drug chain in the country. Even more ambitious deals in the years that followed saw CVS extend its reach into other aspects of health care.
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HELENA FOULKES CVS Health
BOB KWAIT CVS Health
Helena Foulkes consistently distinguished herself as an innovator during 25 years at CVS Health. Early on, Foulkes—who in 1992 joined what was then a regional drug store chain—began to make her mark, spearheading the development of ExtraCare. The loyalty program, the first of its kind for a U.S. drug chain, remains a cornerstone of CVS’ efforts to connect with retail customers and respond quickly and effectively to their changing needs. The enduring impact of Foulkes, who during her tenure at the company held a variety of high-level executive positions, including senior vice president of marketing, chief strategy officer, and president of CVS Pharmacy and executive vice president of CVS Health, is still evident across the business. For instance, while overseeing the company’s network of 10,000 drug stores, she was responsible for the launch of such programs as Maintenance Choice, which brings an omnichannel experience to pharmacy patients and caregivers.
During the course of his career in chain drug retailing, Bob Kwait made a big impact in several areas, including merchandising, marketing and operations. But his greatest contribution transcends any single discipline and involves the total store. Responsible for merchandising at Gray Drug in the 1960s, Kwait helped promote the shift from the serviced drug store format common at the time to self-service, with the launch of a new store in Hollywood, Fla. Several years later at CVS, he took the concept to the next level. As head of purchasing, Kwait was tasked with developing a location in Cranston, R.I. The freestanding outlet featured a new look and expanded merchandise mix—including such products as milk, convenience food and greeting cards—designed to make shopping more convenient and enjoyable, thus appealing to a wide range of consumers looking to fulfill many of their everyday household needs. The combination of new elements and more traditional drug store products resulted in a powerful offer that represented the future of retailing at CVS.
WALGREENS BOOTS ALLIANCE Walgreens’ expansive history spans over the course of a century. In 1901, Charles R. Walgreen Sr., a pharmacist, embarked on a journey by purchasing the drugstore where he had been employed on Chicago’s South Side. Walgreens has achieved significant milestones since its inception, such as opening the first drugstore within the Pentagon during World War II, filling its 100 millionth prescription in 1960 and pioneering child-resistant
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prescription containers in 1968. Technological advancements were a key focus, with the introduction of Intercom computers in pharmacies in 1981 and the innovative concept of the pharmacy drive-thru in 1990, which has since become a standard feature. Walgreens launched Walgreens.com in 1999, offering round-the-clock access to pharmacy and daily essentials. The transformative merger with Alliance Boots in 2014 led to the formation of Walgreens Boots Alliance, a global pharmacy-led health and well-being enterprise. The pivotal role Walgreens played in supporting
DANIEL JORNDT Walgreens Boots Alliance During his decades-long career with Deerfield, Ill.-based Walgreen Co. (Walgreens, now Walgreens Boots Alliance), Daniel Jorndt held a number of leadership positions with the company, including president and chief operating officer. In 1998, he became CEO— the first person outside of the Walgreen family to hold that position—and added the title of chairman of the board in 1999. He stepped down as CEO in 2002 and retired in 2003. Walgreens accomplished much under Jorndt’s watch. In 1999, the retailer announced the launch of a comprehensive online pharmacy. The next year, Walgreens reached the 3,000-store mark with the opening of its location at Halsted and Monroe in Chicago. And in 2002, it became the first drug store chain to offer prescription labels in multiple (14) languages chainwide. Jorndt’s positive impact on Walgreens didn’t end with his retirement, either. In July of 2022, for example, he shared lessons from his career with Walgreens summer interns serving as guest staff for Chicago’s Midtown Educational Foundation’s Metro and Midtown Center Summer Achievement Camps.
CORK WALGREEN Walgreens Boots Alliance Charles R. “Cork” Walgreen III was credited with leading a turnaround of the pharmacy retailer founded by his grandfather in Chicago at the dawn of the 20th century and later led by his father. Cork Walgreen got his start in the family business, at age of 17, as a stock boy. After earning a pharmacy degree from the University of Michigan, Walgreen returned as a 23-year-old pharmacist before moving into administrative roles. Walgreen was named president at age 34. Two years later, at a time when Walgreens was falling short of profitability goals and growth targets, he became chief executive officer. With the aim of returning the company to its roots, Walgreen sold off peripheral businesses, upgraded pharmacy systems and focused on moving stores out of strip malls and into free standing buildings. In 1998, the year Walgreen retired, the company posted its 23rd consecutive year of record sales. Walgreen died in 2016 at the age of 80.
the U.S. government during the COVID-19 pandemic in 2020, facilitating nationwide testing and vaccination distribution, underlined its essential contributions. The company’s commitment to healthcare expanded further with the 2020 partnership with VillageMD, which brought full-service primary care doctor offices to select stores. In October 2021, Walgreens unveiled a consumer-centric healthcare strategy, introducing Walgreens Health and bolstering its capabilities in primary care, postacute care, and home care through investments in VillageMD, CareCentrix, and Shields Health Solutions.
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ALEX GOURLAY Walgreens Boots Alliance
STEFANO PESSINA Walgreens Boots Alliance Stefano Pessina is the executive chairman and largest single shareholder of Walgreens Boots Alliance, with a stake of almost 30%. Forbes pegs his net worth at $6.8 billion. Formerly CEO, Pessina, now 82, stepped down in 2020 to take a less hands-on role. A nuclear engineer by training, Italian-born Pessina’s drug store journey began in 1977 when he took over his family’s pharmaceutical wholesale business in Naples. The company merged with UniChem Group in 1997 and Boots Group in 2006. In 2007, he took Boots private in a $22 billion transaction with private equity firm KKR. Between 2012 and 2014, Walgreens purchased 100% of the chain, creating Walgreens Boots Alliance. WBA involved Walgreens, European retail pharmacy leader Boots and Alliance Healthcare, an international wholesaler/distributor. In 2013, Alliance Boots and Walgreens entered a long-term partnership with pharmaceutical sourcing/distribution giant AmerisourceBergen, creating an efficient, global network. In 2021, WBA completed the sale of Alliance Healthcare to AmerisourceBergen. WBA is the world’s largest drug chain and the first global retailer of its kind. Operating in more than 25 countries, it employs more than 450,000 people and has 21,000-plus stores. Pessina was inducted into the World Retail Hall of Fame in 2018.
GREG WASSON Walgreens Boots Alliance Greg Wasson joined Deerfield, Ill.-based Walgreen Co. (Walgreens, now Walgreens Boots Alliance) in 1980 as a pharmacy intern. From there, he transitioned into pharmacy management and various executive positions before ultimately being named president and CEO in January 2009. Walgreens’ accomplishments during Wasson’s reign were many. In February 2009, the retailer introduced its Complete Care model through its Take Care Health Systems subsidiary. At launch time, Walgreens said it was “designed to reduce health-care and prescription costs for employers across the country.” Under Wasson’s leadership, Walgreens also
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Alex Gourlay is a seasoned executive in both pharmacy and general merchandise. A trained pharmacist, he was chief executive for the health and beauty division of U.K.-based Alliance Boots. He joined Walgreens Boots Alliance in 2013. Gourlay oversaw implementation of destination services like FedEx counters and LabCorp centers in certain Walgreens stores. LabCorp provides patient lab testing, an added convenience. It complements in-store clinics and meets needs for more affordable health care. Gourlay helped introduce curated Kroger assortments in some Walgreens locations and Walgreens offerings in Kroger stores. The two retailers also joined forces to generate purchasing efficiencies. During Gourlay’s tenure, Walgreens began modernizing pharmacy and frontend systems, improved digital and omnichannel functions and launched a new loyalty program. Plus, it further emphasized higher-margin, proprietary beauty brands, including No7. Gourlay was an NACDS board chairman. He was also a 2020 inductee into the Path to Purchase Institute’s Hall of Fame. Gourlay retired from WBA in 2021. He is currently executive chair at U.K.based wellness company Holland & Barrett.
introduced daily testing for cholesterol, blood glucose and A1C at numerous store locations; launched the “industryfirst” online “Find Your Pharmacist” search tool; and collaborated with Johns Hopkins Medicine to improve outcomes of patients with chronic diseases. Wasson played a significant role in Walgreens’ 2014 merger with Bern, Switzerland-headquartered Alliance Boots, too. He retired from the renamed company, Walgreens Boots Alliance, following the merger’s completion. In 2015, NACDS honored Wasson with “chain pharmacy’s highest honor,” the Sheldon W. Fantle Lifetime Achievement Award.
2023 December Issue DSN ALT - Emerson Group_Layout 1 11/24/23 11:30 AM Page 1
Celebrating NACDS’ 90th Anniversary and Community Pharmacy Retailers
The Emerson Group congratulates the National Association of Chain Drug Stores on 90 years of service. Your dedication and tireless efforts have helped our industry to remain strong and vibrant even in the most challenging of times. We also recognize the contributions of Community Pharmacy Retailers in bringing the very best of health care to those that need it the most.
www.emersongroup.com
JOE MAGNACCA Walgreens Boots Alliance Joe Magnacca spent 17 years at Canada’s largest grocery store chain and another seven at its largest drugstore chain before he brought his merchandising flair to the United States in 2008 as part of a team charged with revamping the Duane Reade banner in New York City. There, Magnacca became recognized as a visionary leader, introducing the LOOK Boutique prestige concept and other innovations, such as in-store beauty advisors, into Duane Reade’s beauty departments. He was named president of the chain in 2010 and the next year joined Duane Reade’s parent company, Walgreens, as president of daily living products and solutions. Walgreens’ 2012 acquisition of a 45% stake in Alliance Boots, which followed the company’s 2011 purchases of drugstore.com and beauty.com, helped accelerate Walgreens’ transition into what it has described as a “pharmacy-led, health and wellbeing enterprise.” It has since served as a model for the entire drug retailing industry.
ORNELLA BARRA Walgreens Boots Alliance Italian-born Ornella Barra began her career as a pharmacist. After managing a pharmacy and purchasing her own company, she founded a pharmaceutical wholesale business in 1982. It merged with British UniChem in 1998, forming Alliance UniChem. In 2006, Alliance Unichem merged with Boots the Chemist, becoming Alliance Boots. In 2014, the latter merged with Walgreens, begetting Walgreens Boots Alliance. Over the past 35-plus years, Ornella has held several senior positions with this organization. Under Barra’s auspices, WBA has grown leadership numbers for people of color and plans to add more disabled employees. Environmentally, the ESG reduced Scope 1 and 2 global carbon emissions by 21.2% compared to 2019; the goal is 30%. Plus, it implemented supplier initiatives that reduce packaging waste. With private brands, it introduced Global Minimum Requirements for product sustainability across Asia, the U.K. and U.S. On the philanthropic side, ESG delivered essential vitamins to 350 million women and children last year in partnership with Vitamin Angels, donated $100 million to support community health worldwide and administered 69 million-plus Covid-19 vaccines.
VERN BRUNNER Walgreens Boots Alliance When he retired from Deerfield, Ill.-based Walgreen Co. (Walgreens, now Walgreens Boots Alliance) in 2001 as executive vice president of marketing, Vern Brunner had reason to celebrate. His 39-year career with the retailer had been nothing short of remarkable. Brunner was acknowledged as the architect of many of the elements of data-driven but intuitive merchandising and marketing that sparked the company’s remarkable resurgence and rise to national retail leadership in the 1970s and 1980s. In 2008, NACDS recognized Brunner for his achievements with the Robert B. Begley Award. The award honors an individual with “great personal warmth, [a] generous spirit and long-time service to the industry,” the organization noted.
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JOHN STANDLEY Rite Aid
RITE AID Celebrating its 60th year in 2023, Rite Aid opened in 1962 as Thrif D Discount Center in Scranton, Pa. Today it operates more than 2,000 retail pharmacy locations across 17 states. Key milestones in the company’s history include officially changing its name to Rite Aid Corporation in 1968, becoming the third-largest U.S. retail drugstore chain in 1981 and expanding to the West Coast and the Gulf Coast region in 1996 through the acquisitions of Thrifty PayLess Holdings, Inc., Harco, Inc., & K & B Inc., adding more than 1,000 stores to the company. Today, Rite Aid is a full-service pharmacy and is one of three national retail pharmacy brands. The company said it is on a mission to define the modern pharmacy by meeting customer needs with a wide range of vehicles that offer convenience, including retail and delivery pharmacy, as well as services offered through its wholly owned subsidiaries, Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid’s pharmacy benefits and services company, consists of accredited mail and specialty pharmacies, prescription discount programs and an adjudication platform to offer member experience and cost savings. Health Dialog provides healthcare coaching and disease management services via live online and phone health services. Regional chain Bartell Drugs has supported the health and wellness needs in the Seattle area for more than 130 years. In 2022, Rite Aid relocated its headquarters to Philadelphia’s Navy Yard district.
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John Standley has the distinction of holding leadership posts at two major drug chains. In January 2010, Rite Aid promoted him from president and chief operating officer to CEO, a position he held until early 2019. Standley then served as president of Deerfield, Ill.based Walgreens from August 2020 to September 2022. Both retailers made noteworthy contributions to the retail pharmacy industry under his watch. Rite Aid acquired Houston-based RediClinic, an operator of retail clinics, in 2014. And in 2019, the retailer announced the launch of RediClinic Express in partnership with InTouch Health, which offers solutions “to efficiently deliver virtual care.” During Standley’s tenure at Walgreens, the retailer activated multiple mobile clinics to bring COVID-19 vaccines to underserved communities (2021) and in 2022 launched a clinical trial business “to redefine the patient experience and increase access and retention in sponsor-led drug development research.” NACDS recognized Standley in 2023 with “chain pharmacy’s highest honor,” the Sheldon W. Fantle Lifetime Achievement Award.
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CELEBRATING
90 YEARS OF
SUPPORTING
PHARMACY Your efforts have truly made pharmacies the go-to for local health needs. Here’s to many more years of success and making healthcare even better for everyone.
Happy 90th Anniversary, NACDS!
Explore the impact of NACDS on healthcare
*IQVIA, ProVoice Survey, rolling 12-month data as of March 2023. †Based on an independent national survey of pharmacists. Cerave is a registered trademark. All other product/brand names and/or logos are trademarks of the respective owners. ©2023 CeraVe LLC CVE.G.P.1623
* †
JIM MASTRIAN Rite Aid Jim Mastrian’s professional life has spanned more than four decades and a variety of retailers. Despite seeing a lot of upheaval in the industry, he remained grounded in a set of core principles—integrity, an understanding of the power of data, attention to detail and a commitment to mentoring members of his team. Trained as a pharmacist, Mastrian began his career at Peoples Drug Stores and went on to serve in a variety of capacities, including president of Gray Drug Fair and C-suite roles at Revco D.S. He is perhaps best known for his work as a merchant, although he also made major contributions in marketing, operations and other aspects of the business. Mastrian, who concluded his retail career at Rite Aid—which he joined as executive vice president of category management and later served as chief operating officer—was a driving force in the evolution of merchandising, continuously honing the product mix and presentation to better engage consumers.
ALEX GRASS Rite Aid Alex Grass, a lawyer by profession, founded Rite Aid because he recognized an opportunity. Grass became a businessman during the early 1950s, when he began working for his father-in-law’s wholesale grocery distribution company. In the early 1960s, Grass suddenly saw an opportunity in the retail sector, thanks to a Supreme Court ruling that manufacturers could not dictate minimum prices and a lack of competition in the health and beauty aids category. He decided to open a store in downtown Scranton, Pa., which he called the Thrif D Discount Center, in 1962. By 1968, the company, which had more than 50 stores at the time, had changed its name to Rite Aid. The company purchased Daw Drug Co. in 1969, doubling Rite Aid’s size and marking its entry into the pharmacy business. By the middle of the 1990s, Grass had grown Rite Aid into an important regional drug chain. He retired as the company’s chairman and chief executive officer in March 1995. That year, Rite Aid had more stores than any U.S. drug chain and was the nation’s No. 2 retail pharmacy in terms of revenue.
MARY SAMMONS Rite Aid Mary Sammons is accustomed to overcoming challenges. Trained as an educator, she joined food and general merchandise retailer Fred Meyer as a management trainee after failing to find a job as a French teacher. Retailing was a natural for Sammons, and she quickly rose through the executive ranks, gaining experience across the store, eventually becoming chief executive officer. Following Fred Meyer’s merger with Kroger in 1999, Sammons joined Rite Aid, which was on the verge of bankruptcy due to the mismanagement and financial wrongdoing of the previous executive team. Together with new CEO Bob Miller, who had been her mentor at Fred Meyer, Sammons stabilized the drug chain. After succeeding Miller as CEO in 2003, she continued to work to increase the company’s reach, elevate the shopping experience and bring a greater degree of personalization to the service provided at the pharmacy counter. Taken together, Sammons’ efforts enabled Rite Aid to remain a viable competitor against its larger rivals.
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Congratulations to NACDS in celebrating
90 Years of serving the community pharmacy retail industry.
®/TM Trademarks of Kimberly-Clark Worldwide, Inc. or its affiliates. © KCWW
BOB LONG Longs Drugs Photography was an early passion of Bob Long’s, and it might have been his career had his father and uncle not had other plans. The pair had opened the first Longs Drugs location, in Oakland, Calif., at the tail end of the Great Depression, and were grooming the boy as a successor, sending him to college to acquire the management skills he’d need to run the growing business. As chief executive officer of Longs Drugs, Bob Long burnished his father’s legacy while keeping the chain in the forefront of retail pharmacy, with perstore sales that consistently led the industry. While heading Longs, he represented the industry as a longtime board member of the National Association of Chain Drug Stores, ascending to the chairmanship in 1984. Long retired after selling the company to CVS in 2008, devoting time to travel and his wife, Elaine. He passed away in 2014, at the age of 75.
JERRY HELLER May’s As chief executive officer of Tulsa, Okla.-based May’s Drugs Stores, Jerry Heller came to personify the resilience of the small drug chain in the late 20th century, a time when consolidation was beginning to upend the industry. In 1972, at the age of 35, Heller assumed control of May’s, then a four-store company founded by his father and uncle and pursuing a deep discount strategy in its two conventional drug stores and two leased departments. While expanding via acquisitions into a 32-store chain, Heller helped validate the notion that family values confer a competitive advantage to smaller chains. In 1989, Heller served as chairman of the National Association of Chain Drug Stores. Reflecting on that experience, Heller said, “I did at NACDS what I’ve always done — charted a direction and tried to get people to follow it faithfully.”
JIMMY HARRISON Harco Jimmy Harrison was a pioneer in the “super drug” format. After graduating from pharmacy school, he returned home to work with his father at the family’s Central Drug in downtown Tuscaloosa, Ala. He later managed their popular new campus location, Druid Drug. In 1967 Harrison founded Harco Drug, developing the family business into the nation’s second-largest privately held drug store chain. By the time Harco was sold to Rite Aid Corp. in 1997, it had grown into an operation with 154 drug stores across Alabama, Florida and Mississippi, along with about 50 Carport Auto Parts stores. The Harco TotalCare home health care division, which was also founded in 1978, had sold its dozen stores in 1996 to American HomePatient. The stores included a wide range of non-pharmaceutical products, including clothing, groceries, household goods, books and magazines, cleaning supplies, and even automotive products. In 2001 Carport merged with Advance Auto Parts Inc., and in 1997 TotalCare merged with American HomePatient. Harco’s sale to Rite Aid kicked off a period of increased philanthropy and community service work for Harrison and his wife, Peggy.
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THIS
I S A M O V E M E N T.
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GEORGE HILDEN Osco Drug George Hilden was the manager of the first Osco Drug store. Before he retired he would serve as president of the chain and its chairman. Hilden grew up on his family’s farm outside Starkweather, N.D. He worked in a gas station in Valley City, N.D., while taking college courses, but quit to take a job in a Piggly Wiggly grocery store that promised career advancement. Piggly Wiggly was run by the family of L.L. Skaggs, Osco’s founder. When Skaggs opened the first Osco in Rochester, Minn., in 1937, he hired Hilden as the manager. Hilden was instrumental in the growth of the new company, and he moved to the Chicago area in the 1940s to be near its downtown headquarters. He was among the executives at Osco when it merged with Jewel Tea Co. in 1961, after which he served as vice president of merchandise at Jewel Food Stores. The first Jewel-Osco food/drug combination stores were built in 1962. In 1965, Hilden was appointed president of Osco, and two years later he was named chairman. By 1972, the chain had 185 stores in 17 states.
LEONARD GENOVESE Genovese Drug Stores Leonard Genovese was the youngest son of Joseph Genovese, who founded Genovese Drug Stores in the Astoria section of New York’s borough of Queens in 1924. Leonard held various positions at the drug chain from 1971 to 1999, including store manager, field trainer, merchandise manager, buyer and assistant vice president of operations and store replenishment systems. He took the helm in 1975. During this period, the company continued the family tradition of customer service and innovative marketing. Genovese recognized that drug stores would lose a lot of their health and beauty business to supermarkets if customers took coupons with them when they shopped for groceries. Although Genovese already used coupons heavily, offering them three times as often as other drug chains, the company was not loath to experiment. In 1986, Genovese became the first drug chain in the U.S. to make free coupons available to customers at the push of a button. The company launched its first Manhattan location in 1993. That year, it also opened its 100th store. In November 1998, Genovese was acquired by JC Penney. At that time, the chain had 141 stores and 5,000 employees, and was still almost entirely owned by the Genovese family.
LYNNE FRUTH Fruth Pharmacy Fruth Pharmacy has been making its mark for the past seven decades by sticking to old-fashioned values and the motto “to do the right thing” as it continues to help take care of patients and customers. Lynne Fruth, who has served as the chain’s president since 2010, says the West Virginia-based company’s long-term growth strategy emphasizes the ability to meet consumers’ needs. Fruth Pharmacy was founded in 1952 by her father, Jack. All the Fruth locations are in Appalachia, and the chain now has 28 stores, with a central fill facility and a warehouse and distribution center. Fruth was 5 or 6 years old when she started working in the store. Prior to taking the reins of the drug chain, she was an educator and consultant to the public school system. She currently serves on the board of the National Association of Chain Drug Stores. Fruth was awarded the Herald Dispatch Business Innovator of the Year Award in 2015 and was inducted into the Marshall University College of Business Hall of Fame in 2012. She and Jack Fruth are the only father/daughter duo to have earned that distinction.
38 December 2023 DRUGSTORENEWS.COM
Cheers to 90 years Hallmark is a proud partner of the National Association of Chain Drug Stores, which for 90 years has made the world a better place by positively impacting community health care. We’re honored to join the NACDS in its mission to make communities across the nation healthier and better connected.
TM & © Hallmark
ALAN LEVIN Happy Harry’s
MARC GLASSMAN Marc’s
A career in government or politics beckoned after Alan Levin earned a degree from Delaware Law School. But with the deterioration of his father Harry Levin’s health, Alan left his job in the Delaware Department of Justice to lend a hand at Happy Harry’s, the drug store chain his father founded in 1962 in Wilmington, Del. Levin succeeded his father as president and chief executive officer in 1984. During his tenure, Happy Harry’s expanded to 76 stores from 16, and annual revenues increased to nearly $500 million from $66 million. Levin ran Happy Harry’s until it was acquired by Walgreen Co. in 2006. In 2008, Levin explored a campaign for governor of Delaware before deciding not to run. He later joined the cabinet of the winner of that race, Gov. Jack Markell. Levin served a sixyear term as director of the Delaware Economic Development Office, overseeing business and economic strategies for the state before going on to serve as senior adviser to SoDel Concepts, Delaware’s largest food service provider.
Marc Glassman entered the fray as a deep discount retailer in 1979 with an unpretentious store in Middleburg Heights, Ohio, catering to valueconscious families. A knack for“buying well and selling fast” allowed Glassman to keep prices low. Selling fast involved peppering the mix of food, housewares, toys and health and beauty aids with a kaleidoscopic selection of hot deals and closeout merchandise. Success allowed Glassman to expand into a chain of stores operating under the Marc’s Deeper Discount and Xpect Discount Drugs banners. While Glassman cultivated a no-frills, self-serve setting at the front end, splashy neon signs drew shoppers’ attention to the pharmacy departments, where imposing displays of vitamins and other nutritional supplements fronted the prescription counter. In 1983, Marc Glassman Inc. introduced Texas Drug Warehouse, a franchised retailer with most of its stores in the Dallas area. Today, the privately held retailer operates 60 Marc’s stores in Ohio, drawing shoppers to their closeout departments and pharmacies while also selling namebrand merchandise in the groceries, health and beauty, and general merchandise categories.
MARK GRIFFIN Lewis Drug Since 1942, Midwestern values have helped family owned Lewis Drug to grow during tough times and boom times, according to Mark Griffin, the company’s president and chief executive officer. Reflecting on over 80 years in business, Griffin considers a range of challenges that the company has overcome, from national chains establishing a presence in the communities Lewis serves to internet giant Amazon’s move into pharmacy. A spirit of innovation and convenience was evident in the first Lewis store—which Griffin’s father, John, helped to launch in downtown Sioux Falls, S.D., in February 1942. In 1986, Mark Griffin followed in the footsteps of his father and became the drug chain’s president and CEO. His tenure to date has been distinguished by a combination of tradition and continued innovation, as well as steady expansion. When he became CEO, the company had five stores; today 60 Lewis locations are open or under construction. Griffin also implemented a “guerrilla retailing” strategy that leverages the company’s nimble smaller-retailer approach with the economies of scale traditionally associated with large chains.
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For nearly a century, NACDS has been shaping and connecting our industry, and helping patients live better lives. Nature Made® celebrates this incredible milestone and looks forward to your continued partnership. Here’s to the next 90 years of building a healthier and brighter future!
FROM THE
★
Based on a survey of pharmacists who recommend branded vitamins & supplements.
ROBERT NARVESON Thrifty White Pharmacy
JACK ROBINSON Perry Drug Jack Robinson founded Perry Drug in 1957, when he opened his first store in Pontiac, Mich. Perry Drug grew into the largest chain in Michigan and the 16th-largest nationwide, with 225 stores and annual sales of $750 million, before being acquired by Rite Aid Corp. in 1995. Over Perry’s 38-year history, the company had operations in eight states, including auto parts stores and health care businesses as well as drug stores. In 1995, Robinson won the National Association of Chain Drug Stores’ two highest honors, the Lifetime Achievement Award and the Robert B. Begley Award. Ron Ziegler, then NACDS’ president and chief executive officer, said, “In addition to running one of the nation’s leading chain drug store companies, Jack Robinson has always been one of those people who lead our industry by word and deed.” Robinson died in 2015 at age 85.
Robert “Bob” Narveson spent nearly 33 years at Thrifty White Pharmacy, including the last 24 years as president, CEO and chairman, leading it to become one of the industry’s most successful regional chains. He retired earlier this year. During his career, which began in 1982 at Osco Drug, Narveson served in several industry groups, including as chairman of NACDS in 2013-2014. At Thrifty White, which is based in Maple Grove, Minn., he led the growth of the pharmacy chain from 40 locations to 99 locations today, and was also at the helm during its conversion to employee ownership. Among the innovations during his tenure were the 2008 investment in central-fill technology and the 2012 rollout of a medication synchronization program (RxMedSync)—a first in the industry. He also led the chain’s conversion to a new operating model in which pharmacy is at the forefront of driving patient outcomes.
JOSÉ NAVARRO Navarro Discount Pharmacies After the Cuban government confiscated his two pharmacies in 1961, José Navarro Sr. used $4,000 from an insurance policy to open a pharmacy in Miami, in the area now known as Little Havana. The store was a success and eventually expanded to 33 locations under the Navarro Discount Pharmacies banner. It became the largest Hispanic-owned pharmacy chain in the United States before it was acquired in 2014 by CVS Caremark. The company focused on serving the largely Hispanic populations in its communities, offering full-service pharmacies staffed with bilingual healthcare professionals and Hispanic specialty products. The chain also differentiated itself by offering many products and services that are not found in traditional drugstores, such as designer fragrances discounted up to 60% off suggested department store prices. Navarro also carries groceries and wines from around the world.
42 December 2023 DRUGSTORENEWS.COM
The Bayer Consumer Health family of brands celebrates NACDS’s 90th anniversary
Use as directed.
*This statement has not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.
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THE FLINTSTONES: © & ª Hanna-Barbera. (s23)
GEORGE D. BARTELL Bartell Drug Co.
HENRY PANASCI SR. Fay’s Drugs
George D. Bartell is the third Bartell to manage Bartell Drug Co., which was founded in 1890 by his grandfather, George Bartell Sr. He succeeded his father, George Bartell Jr., as company president in 1990, and became known for continuing the company’s traditionally conservative fiscal policies while encouraging gradual but steady growth. As a result, the company grew and prospered to become larger and more successful than at any time in its history. The 1990s were marked by the expansion of existing stores and the development of entirely new ones. This trend—particularly in developing new stores—continued into the 21st century. Under George D’s guidance, the company grew into a regional chain, operating in King, Pierce and Snohomish counties in Washington state. George D. Bartell’s additional contributions have been to continue the company’s conservative fiscal policies and to encourage gradual growth, which has succeeded in turning the company into a far larger and more successful business than either his grandfather or father achieved. The company was sold to Rite Aid in 2020 for $95 million.
Henry Panasci and his son, Henry Panasci Jr., who were both pharmacy school graduates from the University of Buffalo, founded Fay’s Drugs in 1958 in Syracuse, N.Y. In a 1998 interview with the University of Buffalo’s alumni magazine, UB Today, Henry Jr. shares that Panasci’s Pharmacy did not have much of a ring, so they named it after Faye, Henry Jr.’s wife, and dropped the “e” to save money on signage. In 1966, Fay’s Drug Co. was incorporated to acquire six existing retail outlets and a distribution center in Liverpool, a Syracuse suburb, which also served as the company’s headquarters. By 1969, as the company went public, there were 11 Fay’s Drugs stores in central New York. By the end of 1995, Fay’s Inc. ranked as the 12th-largest U.S. drug store chain and operator of super drug stores in the Northeast. In 1996, following the sale of an office-supply division, Fay’s primarily consisted of 273 discount drug stores, mostly in New York and Pennsylvania, along with one liquor store. A significant portion of these stores were located in upstate New York metropolitan areas. In August 1996, Fay’s agreed to a $285 million stock acquisition by J.C. Penney Co., which was completed in October, making Fay’s a subsidiary of Thrift Drug, the eighth-largest drug store chain with more than $3 billion in sales, under J. C. Penney’s umbrella.
PARVIZ BOODJEH Discount Drug Mart Parviz Boodjeh was a one-of-a-kind trailblazer who left a lasting legacy in the pharmacy and retail business communities. Just 15 years after graduating from the University of Toledo’s Pharmacy School, he opened the first Discount Drug Mart in 1969 in Elyria, Ohio. Today, there are 78 stores and pharmacies across Ohio, employing more than 4,700 Ohioans, including 237 pharmacists. His inspiration to combine the personal and familiar care of a pharmacy with the convenience and value of a traditional retail store proved to be genius. Mr. B (as most people came to call him) was laser-focused on customer service and the well-being of his employees. His commitment to customers and employees gained Discount Drug Mart an unparalleled reputation. Boodjeh’s determination and legacy has lived on through his three sons and two daughters, who have all held various roles in the company over the years. His son Don currently serves as the company’s CEO. In a tribute to Boodjeh, Discount Drug Mart became an employee-owned company in 2017.
44 December 2023 DRUGSTORENEWS.COM
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L.S. SKAGGS JR. American Stores
ANTHONY CIVELLO Kerr Drug Anthony Civello,whose career spanned nearly five decades, began his journey as a student at the University of Pittsburgh’s pharmacy school. He took a part-time position with Thrift Drug in 1965 and, from that moment, he recognized the vital role pharmacists play in community pharmacy. Civello’s career was distinguished by his unwavering commitment to the professional and health sides of the drug store business. He firmly believed that pharmacists were the most valuable asset drug stores had, setting them apart from other retailers. This philosophy guided him throughout his career, leading to his rise through the ranks at Thrift Drug and, eventually, the formation of a new Kerr Drug management team in 1997. Under Civello’s leadership, Kerr Drug adopted a healthcentric focus that has since become standard in many drug chains across North America. It was a pioneer in having pharmacists provide patient care in a chronic care clinic setting and deploying clinical pharmacists, offering services like medication therapy management. Additionally, it opened Community Healthcare Centers in North Carolina, where pharmacists play a central role in patient counseling, chronic disease management and physician interaction.
Leonard Samuel “Sam” Skaggs, one of the sons of Safeway founder Marion Skaggs, acquired PayLess Drug Stores in Salt Lake City in 1939, using the proceeds from his Safeway stock. Following his father’s death in 1950, Sam Skaggs assumed control of the PayLess chain at the age of 26. In 1965, when the business had 69 locations, it was incorporated as Skaggs Drug Centers and went public. When Skaggs assumed leadership of the company, there were only 11 stores. By the time of his retirement in 1995, he had overseen the growth of the company into one of the world’s major food enterprises, with1,700 stores across 26 states and achieving an annual revenue of $22.2 billion. Through a series of strategic acquisitions, the Utah-based company transformed into the second-largest food retailer in the United States, trailing only Kroger, and emerged as one of the nation’s largest drugstore chains. In his lifetime, Skaggs was a prolific and humble philanthropist who supported various charities throughout his home state of Utah. He passed away in 2013 at the age of 89. In 1998, it was announced that Albertsons would acquire American Stores for $11.7 billion.
DAVE MAHER American Stores American Stores spent decades building a massive conglomerate of supermarket and drug store banners, and Dave Maher was in the mix as the company was seeking to create a drugstore chain that stretched from coast to coast. He was named president of the company’s American Drug Stores division in 1990, after previously serving as vice president of the Intermountain region. He later became chairman, president and CEO of American Drug Stores before joining the management of American Stores in 1992, overseeing the company’s Osco Drug and Sav-on Drugs divisions. He was president of American Stores from 1996 to1999. Albertsons acquired American Stores in 1998, giving it ownership of not only Osco and Save-on, but also several strong regional food-and-drug chains, including Jewel-Osco in Chicago, Lucky in California and Acme in the Philadelphia area. In 1995, while serving as COO of American Stores, Maher was elected 1995 to 1996 chairman of NACDS.
46 December 2023 DRUGSTORENEWS.COM
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KROGER CO. In 1883, Barney Kroger opened a single grocery store at 66 Pearl Street in downtown Cincinnati. Nearly 140 years later, The Kroger Co. store would operate nearly 2,800 stores in 35 states. In the 1940s, a man named James P. Herring was responsible for developing what was then a novel retail concept: self-service drug stores. After opening several self-service drug stores for another retailer, he opened his own in Plainfield, N.J., the “Sav-On Drug Store,” which then expanded. With a growing interest in incorporating drug stores into grocery retail, Kroger acquired Herring’s chain and opened its first drug store, “SupeRx,” next door to a retail store in Milford, Ohio, in 1961. The store still serves the community today. Herring became the CEO of Kroger in 1970. By Kroger’s 100th birthday, the SupeRx drug division operated 575 drug stores in 20 states. Through the years, SupeRx stores shifted to meet the demands of communities and customers and The Kroger Co. merged with several other retailers to expand its business and growth. Now, in 2023, Kroger Health, the healthcare division of The Kroger Co., is on a mission to help people live healthier lives through the power of “Food as Medicine” and by providing expert, credible and convenient care. With more than 24,000 associates, Kroger Health operates more than 2,200 pharmacies in 35 states, serving 17 million patients annually.
RODNEY McMULLEN Kroger Co. Rodney McMullen, chairman and CEO of The Kroger Co., the largest operator of traditional supermarkets in the U.S., has been a champion of integrating pharmacy, health and wellness with its grocery offerings and of expanding the retailer’s digital shopping experience. He joined Kroger in 1978 as a part-time stock clerk in Lexington, Ky., and rose through a range of management positions. He was elected to Kroger’s board of directors in 2003, named president and chief operating officer in 2009, and assumed his current position as CEO in 2014. He was named chairman of the board in 2015. During his tenure as chief financial officer, which began in 1995, he oversaw the integration of the largest acquisition in Kroger’s history: the $13 billion merger with Fred Meyer Inc., which added the Smiths, Ralphs, Food 4 Less and QFC banners to its holdings. McMullen also has been an active supporter of NACDS and is scheduled to speak at the association’s 2024 Annual Meeting.
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COLLEEN LINDHOLZ Kroger Health Colleen Lindholz, president of Kroger Health, began her career with The Kroger Co. as pharmacy intern in 1995. Over the next couple of decades, she transitioned into several leadership roles, including president and CEO of the retailer’s Little Clinic. In 2017, Kroger tapped Lindholz to lead its new Kroger Health organization. That’s no small task: The business unit boasts 24,000 associates, 2,200-plus pharmacies and more than 220 clinics. Lindholz certainly has made her mark on Kroger Health. For example, she and her team are leading advocacy efforts for community pharmacists through the Equitable Community Access to Pharmacist Services Act, Kroger noted. Under Lindholz’s leadership, the Kroger Health team is working with The Rockefeller Foundation and the American Heart Association on a national “Food as Medicine” research initiative. A former NACDS chair, Lindholz is the recipient of multiple awards for her accomplishments, including Kroger’s Chairman and Leadership Awards — and more. Eating Well and Forbes also recognized Lindholz for her role as the “lead architect” of Kroger’s “Food as Medicine” strategy.
DAVID DILLON Kroger Co. David Dillon, who led the development of Kroger Co.’s successful Customer 1st strategy, retired as the grocer’s chairman at the end of 2014, after 38 years of service. Dillon served as Kroger’s chairman starting in 2004, and as chief executive officer from 2003 to 2013. Prior to that, he held a variety of executive positions at Kroger and Dillons Cos., which merged in 1983. During his tenure as CEO, Kroger grew revenue by $45 billion, created 53,000 new jobs, reduced costs for eight consecutive years and returned $9.2 billion to shareholders through share repurchases and dividends, which were reinstated in 2006. As part of the Customer 1st strategy, Dillon and Rodney McMullen—his successor as CEO—who was then serving as vice chairman, had the foresight to create and execute a long-term price investment strategy that enabled Kroger to deliver sustainable business growth and shareholder returns, while also saving customers nearly $3 billion annually through lower prices. This laid the foundation for a growth plan, announced in October 2012, which expanded Customer 1st by accelerating growth in Kroger’s core business and improving the company’s connection with all customers; expanding Kroger’s presence in new and existing markets; and innovating to create unique competitive positioning for today and the future.
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WALMART Walmart, one of the world’s retail giants, has a storied history that dates back to its founding in 1962. The company’s journey began when Samuel Walton, a visionary entrepreneur, opened the first Walmart Discount City store in Rogers, Ark. With a relentless focus on offering customers “Everyday Low Prices,” Walton sought to make quality products accessible to all. This customercentric approach rapidly gained traction, and by 1970, Walmart went public, enabling it to fund its expansion. Throughout the 1970s and 1980s, Walmart’s growth was explosive. The company expanded its footprint across the United States, introducing innovative supply chain and inventory management systems that set new industry standards for efficiency and cost-effectiveness. As Walmart continued its expansion, it ventured into international markets, opening stores in Canada and Mexico in the early 1990s. By the time of Sam Walton’s passing in 1992, Walmart had already become the largest retailer in the world, and its commitment to low prices and customer satisfaction remained unwavering. In the years that followed, Walmart diversified its offerings, adding grocery departments and expanding into e-commerce. The acquisition of various companies, including the digital retail giant Jet.com, further solidified its presence in the online marketplace. Today, Walmart stands as a global retail powerhouse with thousands of stores worldwide, offering a diverse range of products and services, including grocery, apparel, electronics, and more. Its impact on the retail industry and the way people shop is immeasurable, and it continues to be a symbol of affordability, choice, and convenience for consumers across the globe.
SAM WALTON Walmart Samuel Moore Walton, the visionary entrepreneur behind Walmart and its warehouse club subsidiary, Sam’s Club, was born on March 29, 1918, in Kingfisher, Okla. After serving in the Army during World War II, he attended the University of Missouri, where he studied economics. In 1945, he graduated and began his career in retail management. Walmart’s origins trace back to 1962 when Sam Walton opened the first Walmart Discount City store in Rogers, Ark. His innovative approach included offering lower prices and exceptional service. This philosophy laid the groundwork for Walmart’s exponential growth. A pivotal moment came in 1970 when Walmart became a publicly traded company. Throughout the 1970s and 1980s, Walmart expanded rapidly, adding stores across the United States. The company’s commitment to “Everyday Low Prices” resonated with consumers and became a cornerstone of its success. In 1983, Sam Walton introduced Sam’s Club. This membership-based warehouse club concept revolutionized bulk shopping, offering businesses and individuals access to a wide range of products at wholesale prices. Sam’s Club rapidly expanded, becoming a complementary arm of the Walmart empire. Under Walton’s leadership, Walmart also implemented advanced inventory and supply chain management systems, setting new standards for efficiency and cost-effectiveness in the retail industry. By the time of his passing in 1992, Walmart had become the world’s largest retailer.
TOM COUGHLIN Walmart Thomas Coughlin served as vice chairman of Wal-Mart Stores, Inc. and confidant of founder Sam Walton. Coughlin began his career with the retailer in 1978 in the company’s security division and eventually became vice president of loss prevention. He later became vice president of human resources. From January 1998 to January 1999, he was executive vice president and chief operating officer of the flagship Wal-Mart Stores Division. The next year, he headed the Wal-Mart Stores Division. In January 2001, Coughlin was elected to the Walmart board of directors. In August 2002, he was also given the title of CEO for Sam’s Club USA. The following April, he became executive vice president and vice chairman of Wal-Mart Stores. On Dec. 6, 2004, Walmart announced that Coughlin would retire effective Jan. 24, 2005. Coughlin was close friends and hunting companion to Walmart’s founder, Sam Walton. Coughlin died on April 1, 2016.
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DOUG DEGN Walmart Doug Degn served as executive vice president of food, consumables and hardlines merchandising at Walmart, where he built deep relationships with senior executives across a wide range of companies (consumer packaged goods, electronics, food, consumables, general merchandise) and helped gain access to the vast resources within the supplier community. He began his career at Walmart in 1983 as a pharmacist and held leadership positions in pharmacy operations and systems, specialty groups and merchandising. In 1997, Degn was recognized as the Sam M. Walton Entrepreneur of the Year while at Walmart. Degn previously served on the board of directors for Engage as well as the Executive Committee at Walmart. Degn holds a BS in Pharmacy from the University of Kansas.
CHUCK FEHLIG Walmart Chuck Fehlig joined Walmart as a staff pharmacist and has held several positions in pharmacy operations for the first 18 years of his 27-year career with the mass merchant, including director of professional affairs and divisional operations manager overseeing the operations of more than 850 pharmacies and 10,000 employees. At Walmart, he ascended to the rank of VP and divisional merchandise manager of OTC merchandise. In 2003, Fehlig was named VP/DMM of the year in Walmart and in 2009 he was honored with the “Outstanding Leadership Award” from the Wal-Mart Health and Wellness Division of WalMart Stores. A 27-year Walmart veteran, Fehlig left the retailer in 2009 from his post as vice president and divisional merchandise manager for O-T-C merchandising. Under his direction, Walmart’s O-T-C sales grew to exceed those of all U.S. drug chains combined.
DAVID GLASS Walmart Glass joined Walmart in 1976. In his position as executive vice president of finance for Wal-Mart Stores, he administered the overall financial and accounting responsibilities of the company prior to his appointment as vice chairman and chief financial officer. He served in that role until 1984 when he was named president and Walmart’s chief operating officer. Along with Rob Walton, in 1985, Glass managed development of the Retail Link program, Walmart’s proprietary trend-forecasting software. In 1988, he was named Walmart’s CEO, stepping down from the position in January 2000. Glass was active in the company’s growth from 123 stores in 1976 to more than 4,000 nationally and internationally in 2005. Glass was named Retailer of the Year by members of the retail industry in 1986 and 1991 and was inducted into the Retail Hall of Fame in August 2000. Glass also was a member of the board of WalMart Stores from 1976 until his death in 2020.
52 December 2023 DRUGSTORENEWS.COM
Thank you, NACDS, for your 90 years of service and for aiding Inmar Intelligence in its mission to make healthcare smarter and safer to improve patients’ lives.
DOUG McMILLON Walmart McMillon began his Walmart career as an hourly associate unloading trailers and his commitment to his fellow associates is ongoing. Under his leadership as president and CEO, Walmart is investing heavily in wages, benefits and education—including a debt-free college program and an expanded parental leave policy. During his tenure, the company also set an aspirational goal to become a regenerative company and launched ambitious work such as Project Gigaton to combat climate change and work with suppliers to avoid 1 billion metric tons of emissions worldwide. He was named president and CEO in 2014. From 2009 to 2014 he was president and CEO of Walmart International, and from 2005 to 2009 he served as president and CEO of Sam’s Club. He has worked at Walmart for more than 30 years serving in senior leadership roles in all of Walmart’s business segments. McMillon serves on the boards of directors of Business Roundtable, the Consumer Goods Forum, the U.S.China Business Council and Crystal Bridges Museum of American Art. He also sits on the advisory board of the Tsinghua University School of Economics and Management in Beijing, China.
SAM’S CLUB Sam Walton opened the first Sam’s Club in 1983 to help small business owners save money on merchandise purchased in bulk. Since then, Sam’s Club has grown rapidly to serve families and entrepreneurs through nearly 600 clubs in the United States, more than 200 international clubs, SamsClub.com and mobile applications. Today Sam’s Club is committed to becoming the membership customers value the most by saving members money on the items they buy most and surprising members with the unexpected finds. Sam’s Club employs about 100,000 associates in the United States. The average club is 134,000- sq.-ft. and offers a highly curated assortment of fresh food and Member’s Mark items, in addition to technologies and services like Scan & Go, Club Pickup and home delivery service in select markets. Sam’s Club also offers specialty services, including travel, auto buying, pharmacy, optical, hearing aid centers, tire and battery centers and a portfolio of business operations support services.
54 December 2023 DRUGSTORENEWS.COM
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JAMES D. SINEGAL Costco Wholesale Corp.
COSTCO WHOLESALE CORPORATION Known for its savings, bulk products and unique shopping experience, Costco has captured the hearts and wallets of millions of customers across the globe. The company’s origin story dates back to 1976, when Sol Price, a pioneer in the discount retail industry, cofounded Price Club in San Diego. This groundbreaking concept aimed at providing businesses and individual members with access to a wide range of products at low prices through a paid membership model. In 1983 the first warehouse club operating under the Costco name opened in Seattle under the leadership of Jeffrey Brotman and James Sinegal, who had been executive vice president of merchandising, distribution and marketing at Price Club. Costco and Price Club merged in 1993, becoming Costco Wholesale Club. Costco has continued to grow since, opening new clubs throughout the U.S. and overseas, while expanding into new businesses and services. The company credits its commitment to its core principles as key to its ability to attract and retain millions of loyal members around the globe. Those principles include a commitment to quality that is supported by its limited assortment (about 4,000 SKUs instead of the 30,000 SKUs at a typical supermarket), which allows Costco’s merchants to focus on just those items that offer the best value to its members. The limited assortment also lets Costco operate more efficiently, cutting costs and allowing members to score even better deals. The company is known for offering a generous return policy and for paying comparatively high employee wages.
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James “Jim” D. Sinegal changed the retail industry landscape with his transformative contributions to the industry. Sinegal co-founded Costco Wholesale Corporation in 1983 with Jeffrey Brotman. Throughout his time as the president and CEO, Costco ascended to the position of the leading warehouse-club retailer in the nation, boasting more than four hundred stores across the United States and internationally, and generating $40 billion in sales in 2003 alone. Renowned not only for his voluntarily modest salary but also for his unwavering belief that fair employee compensation was a boon for business, Sinegal emerged as a polarizing figure, drawing both support and scrutiny from investors and analysts. Sinegal was unwavering in his belief that Costco remained a champion for low prices, and vowed never to change the price of the wholesaler’s famous hot dog, as recalled in 2018 by CEO Craig Jelinek: “I came to [Costco co-founder Jim Sinegal] once and I said, ‘Jim, we can’t sell this hot dog for a buck fifty. We are losing our rear ends.’” Sinegal’s response: “‘If you raise the effing hot dog, I will kill you. Figure it out.’”
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Craig Jelinek joined Issaquah, Wash.-based Costco Wholesale Corp. in 1984 as a warehouse manager. After serving in several executive positions, including president and chief operating officer, he was named CEO in January 2012. Under Jelinek’s leadership, Costco entered the pharmacy benefit management business, introducing Costco Health Solutions in 2013. As it notes on costcohealthsolutions.com, Costco “contractually guarantees that 100 percent of all earned pharmaceutical manufacturer-derived rebates, income and discounts will be returned to the plan sponsor.” Costco also jumped into the prescription-delivery business on Jelinek’s watch. In 2020, it teamed up with Instacart to offer members the service from nearly 200 Costco stores. According to Instacart, the store count is now 500-plus. That same year, Costco purchased a minority equity interest in SSM Health’s Navitus Health Solutions. “Navitus shares our long-term commitment to transparency and our philosophy of reducing costs and passing savings on to our members,” Jelinek said at the time of the announcement.
Amazon was one of the first companies to grasp the Internet’s boundless possibility to change the way people shop. The company was launched in 1994 as an online seller of books, but founder Jeff Bezos always intended for Amazon to sell everything, acting as intermediary between consumers and manufacturers of nearly every type of product, which would magically appear at the buyer’s doorstep within a day or two. Early on, Bezos valued breakneck growth over profits. Following an IPO in April 1997 that raised $54 million, Amazon’s high-flying stock generated the capital needed to sustain its growth and acquisitions strategy. Amazon lost money every quarter until the final quarter of 2001. Its first profitable year was 2003. Through acquisitions and investments, Amazon has continued to diversify, from Amazon Web Services—launched in 2006 to provide data on Internet traffic to developers and marketers—to its 2009 purchase of shoe seller Zappos. Amazon has disclosed that more than 200 million people worldwide pay for Prime memberships. An estimated 170 million Prime members live in the United States, most of whom pay $139 a year for benefits that include free shipping on Amazon purchases, Prime Video streaming movies and shows, and member deals at Whole Foods Market. The high volume of orders during the pandemic let Amazon operate more efficiently, and in late 2020 pushed its quarterly sales past $100 billion for the first time. Also that year, Amazon joined an exclusive club of companies with stock market valuations of $1 trillion.
JEFF BEZOS Amazon Jeff Bezos founded Amazon.com in 1994 with the mission of being earth’s most customer-centric company. Amazon offers low prices and fast delivery on millions of items, provides thousands of movies and TV shows through Prime Video, designs and builds the Kindle, Fire and Echo devices and Alexa voice recognition service, and empowers companies and governments in more than 190 countries around the world with cloud computing infrastructure through Amazon Web Services. Bezos also is the founder of aerospace company Blue Origin, which is working to lower the cost and increase the safety of spaceflight, and he is owner of The Washington Post. Bezos has launched two philanthropic organizations. The Bezos Earth Fund helps fund nonprofits preserving and protecting the natural world, and The Bezos Day One Fund provides grants to nonprofits to help homeless families and is creating a network of preschools in low-income communities. Bezos graduated summa cum laude, Phi Beta Kappa in electrical engineering and computer science from Princeton University in 1986, and was named TIME magazine’s Person of the Year in 1999.
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Andy Jassy is president and CEO of Amazon. com and also serves on the board of directors. He founded and led Amazon Web Services from its inception and served as its CEO from April 2016 until July 2021. He joined Amazon in 1997 and, prior to founding AWS, held various leadership roles across the company, including both business-to-business and businessto-consumer. He serves on the Trust of the American Academy of Arts and Sciences, on the Board of Trustees for Rainier Scholars, and as chair of Rainier Prep’s board of directors. He has an AB from Harvard University and an MBA from Harvard Business School.
In 1939, at the age of 32, Joe Albertson, a former Safeway district manager, took $5,000 in savings and borrowed another $7,500 from his wife’s aunt, and partnered with L.S. Skaggs to open the first Albertsons store, in Boise, Idaho. It was a historic occasion, because the store is widely regarded as one of the first one-stop, self-service supermarkets. To meet varied customer needs it was huge for its time, incorporating 10,000 square feet — nearly eight times the size of a typical grocery store of the day. Albertson had three guiding principles for the outlet: quality, good value and excellent service.The store was a big success, and Albertson invested his profits into expansion. In the years following World War II, the company grew steadily. By 1974 corporate sales topped $850 million and net earnings neared $9 million. Two years later, Albertson, at age 70, stepped down as chairman of the board.
MARK PANZER Albertsons Mark Panzer was a key executive in two trade classes. His strategic and innovative thinking sparked revenue and earnings growth that exceeded expectations at Rite Aid Corp., Pharmaca Integrative Pharmacy and Albertsons. Before becoming a consultant in 2020, he was senior vice president of pharmacy and health and wellness/ general merchandise at Albertsons for five years. Prior to that Panzer was president and chief executive officer of Pharmaca. The move to Albertsons marked the second time that Panzer left the CEO post at Pharmaca to lead the pharmacy operation at a larger retailer. In February 2014, he joined Sears Holdings Corp. as senior vice president and president of pharmacy, overseeing the Kmart health care business. He rejoined Pharmaca in June of that year. Panzer’s most recent retail role meant a return to Albertsons. He began his career more than 40 years ago at Osco Drug stores, where he rose through the ranks to become vice president of sales and marketing for American Drug Stores. That post led to his appointment as senior vice president of sales and marketing for Albertsons after its 1999 merger with American Stores. In 2001, Panzer left the company to join Rite Aid as executive vice president of store operations, and in 2005 he was named senior executive vice president and chief marketing officer.
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CAL TURNER, JR. Dollar General Corp.
Bob Miller put an indelible stamp on three retailers, Albertsons, Fred Meyer and Rite Aid. He first worked at Albertsons around 1960 as a 16-year-old clerk in a California store. In 1969 he became a store manager. Climbing the corporate ladder, he became executive vice president of operations in 1988. He stayed with the grocer until 1991, when he departed to head Fred Meyer. Acquisitions by Fred Meyer under Miller took it from $2.5 billion in sales to $15 billion by 1998, making it the West Coast’s top supermarket chain. Fred Meyer then merged with Kroger, where Miller became vice chairman and chief operating officer. After 13 months, he was approached to become chairman and chief executive officer of Rite Aid. He retired in 2003. But he came out of retirement in 2006 to lead the scaled-down Albertsons LLC. Over the next several years Miller helped guide the supermarketer from a small player into being one of the country’s largest grocers. In 2013, the company bought back the original Albertsons Inc. stores owned by Supervalu. A year later Albertsons acquired the larger Safeway chain for $9.4 billion, bringing its store count to more than 2,300.
Born in 1940, Hurley Calister “Cal” Turner, Jr., joined Dollar General in 1965, succeeding his father as president in 1977 and as chairman in 1988. Over the years, he transformed the chain from a regional family business to a national specialist in highly discounted merchandise. Dollar General went public in 1968, with sales exceeding $40 million. Unprecedented growth followed. In 1985, the company purchased 206 locations and a warehouse from Eagle Family Discount, giving it a significant Florida presence. In 1988, Turner, Jr. received the Presidential Award for Private Sector Initiatives from President Ronald Reagan. Store growth continued, with additional distribution channels opening in the 1990s and 2000s to support it. In 1999, The Fortune 500 recognized Dollar General for the first time. In 2000, the 5000th store opened in Waterford, Mich., with sales topping $4 billion. When Turner, Jr. retired in 2002, the company that began with his father and grandfather selling closeout merchandise back in 1939 had mushroomed into a $6 billion chain with 6,000-plus stores across 27 states and distribution centers in seven.
TODD VASOS Dollar General Corp. A seasoned retail executive, having held key positions at three drug chains as well as Dollar General, Todd Vasos became DG’s CEO in 2105. His talents filled a long list: front-end marketing and merchandising; procurement; supply chain; advertising; store development and DC operations. Under Vasos, Dollar General made meaningful changes to products and merchandising. Unveiled in 2020, Popshelf!’s trendy items are mostly priced under $5. In 2023, the retailer expanded its private label Clover Valley to encompass 600 items, including many food products. This year, Dollar General launched Beauty Reinvention stores, which offer a “treasure hunt” experience. It also significantly grew key beauty categories. Today, Dollar General has almost 20,000 stores and sales of nearly $38 billion. Vasos retired in July 2022; he was succeeded by former COO Jeffrey Owen. Fifteen months later, Owen resigned and Vasos was renamed CEO “for the foreseeable future.”
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HANK MEIJER Meijer Inc. As executive chairman of Meijer Inc., Hank Meijer has continued the Meijer family legacy of ensuring the company supports the communities where it does business. This is reflected in the care its pharmacy team provides for customers, which in turn has a positive influence on the overall perception of the the company and the industry. Under Meijer’s watch, the company has taken several steps to make its pharmacy operations more convenient and efficient, including moving pharmacy departments to the front of the store beginning in the early 2000s. The company opened a central fill facility in Fort Wayne, Ind., in 2013, which helped free up pharmacy staff to provide more clinical services, and it added specialty pharmacy operations in 2015. The retailer introduced text scheduling in 2020 to facilitate the administration of COVID vaccines, and this year it partnered with Blue Cross Blue Shield of Michigan to offer a Medicare Advantage plan.
DANNY WEGMAN Wegmans Food Markets Danny Wegman started in the family’s grocery store business in the produce department. During and after college at Harvard, he worked in the meat department to learn about meat. The training he obtained in the store helped prepare him to take over as its CEO and later, chairman. A third generation executive of Wegmans Food Markets, he continued the company’s legacy of innovation for its customers as well as its reputation as a great place to work. The brand is known for being innovative in the grocery space, being one of the first to use self-service, to locate meat and groceries in one shop and one of the early adopters of scanning. Over the years, the executive stuck to the family legacy of going with his gut. “[Y]ou have to believe in what you are doing and you have to believe that it is correct, and then you stick with it. And that was one of the things he believed in and one of the things that he taught me.”
GEORGE JENKINS Publix Super Markets In 1930, George Jenkins, founder and former chairman of Lakeland, Fla.-based Publix Super Markets, opened the first Publix store in Winter Haven, Fla. That was just the beginning: He eventually expanded Publix’s reach to hundreds of stores (the chain now operates 1,351 stores). Under Jenkins’ leadership, Publix opened its first retail pharmacy in 1986, at a store in Altamonte Springs, Fla. Publix noted that Jenkins was the pharmacy’s very first customer. Retail pharmacy was a key part of Jenkins’ business-building plan after that. He laid the groundwork for what’s now a 1,200-plus retail pharmacy operation. As in-store pharmacies blossomed in supermarkets, Jenkins took an active role within the industry. He served several terms on the board of the Super Market Institute (including two years as president) and two terms as vice president of the National Association of Food Chains. In addition, he was president of the National Institute of Food Chains from 1961 to 1963.
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COLLEEN WEGMAN Wegmans Food Markets In 2018, Colleen Wegman won the ISO 10018 Honorary CEO Citation for Quality People Management, a recognition of CEOs who have demonstrated a strategic and systematic approach to engaging all stakeholders and leaders with a strategic focus on human capital management. The president and CEO of the New York-based grocery chain is a fourth generation executive and continues a long legacy of putting its customers and employees first. Colleen, daughter of current chairman, Danny, joined the company in 1991 and became president and CEO in 2017. She told the Rochester Democrat and Chronicle that she became interested in health and natural food in college and was encouraged by her father to bring that philosophy to Wegmans. “My dad’s advice to me at the time was, lead with your heart, do what you believe is right, and things will work out,” she said. Today, natural and healthy foods are a key part of our mission to help people live healthier, better lives through food, she added.
CRAIG PAINTER KPH Healthcare Services Craig Painter, chairman of Kinney Drugs parent company KPH Healthcare Services, East Syracuse, N.Y., was named chairman and CEO of Kinney Drugs in 2005, after previously serving as its president. He also served on the NACDS Board of Directors from 2005 until 2023, most of that time on the Executive Committee. Prior to joining KPH, Painter spent 26 years with American Stores. At KPH, Painter has played an instrumental role in key initiatives that have significantly increased the strength and diversification of the organization. He was also at the helm in 2008 when the organization transitioned to 100% employee ownership. Among the initiatives that occurred under Painter’s watch were the 2004 establishment of a PBM and mail order division, ProAct Pharmacy Services; the formation in 2013 of specialty pharmacy Noble Health Services; the 2020 acquisition of infusion therapy pharmacy Aristacare; and the 2022 establishment of established Kinney Homecare, a durable medical equipment company.
JOHN MACKEY Whole Foods Market Entrepreneur John Mackey is the co-founder of Whole Foods Market, arguably the most recognizable supermarket chain that specializes in food that is free from hydrogenated fats and artificial colors, flavor and preservatives. A pioneer of natural and organic foods, Mackey (and his partner Renee Lawson) famously borrowed $10,000 and raised $35,000 to open a small vegetarian natural foods store called SaferWay in Austin, Texas, and grew the brand (via expansion and acquisition) to 540 stores in the United States, the United Kingdom and Canada. Ultimately, Mackey sold Whole Foods in June 2017 to the tech giant Amazon for $13.7 billion. Mackey still lives in Austin and has said that he purposefully drives by the location of the first store, now a school. “There will be no one that ever loves Whole Foods Market as much as I love it,” Mackey once told CNBC.
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STEW TURLEY Eckerd Drug Corp.
LESLIE SARASIN FMI Under Leslie Sarasin’s leadership as president and CEO, FMI – The Food Industry Association is focused on developing robust food as medicine offerings, preserving access to comprehensive pharmacy services, and reforming the current predatory pharmacy benefit manager landscape. In partnership with allied pharmacy associations, an FMI-founded coalition, and its pharmacy members, FMI’s advocacy work has advanced federal and state legislation to impact each of these priorities. FMI has made similar progress on these issues on the regulatory front at the Department of Health and Human Services and Federal Trade Commission, among other agencies. Prior to joining FMI, Sarasin served as president and CEO of the American Frozen Food Institute. She also held positions at the National Food Brokers Association, Crest International Corporation and Salomon Brothers. Sarasin holds a JD from the University of San Diego and a bachelor of arts in economics from Smith College.
Over a period spanning more than 30 years, Turley guided Eckerd through unprecedented growth, diversification and turbulent waters. He served two terms as NACDS chairman and received several prestigious accolades from NACDS and other organizations. Turley joined the then 45-store chain in 1966 as manager of non-drug operations and became president in 1974. Initially, Turley was charged with adding nondrug businesses, a then-popular strategy on Wall Street. Later acquisitions included J. Byron’s Department Stores, Vision Works and Junction. Seeing growth in widescreen TVs and video, Eckerd bought American Home Video (1980s), growing it from a dozen to 150 locations. Turley made history in 1977 by negotiating the merger of Eckerd Drug Corp. with Eckerd of North Carolina, a separate chain owned by founder Jack Eckerd’s relative. The largest ever retail merger, it made Eckerd the second largest drug chain with 766 locations. Store clustering created advertising, warehousing and distribution efficiencies. In the mid-1980s, Eckerd sold off some ancillary businesses to focus on the more profitable core. Wall Street disapproved and Eckerd became a hostile takeover target. Turley rallied, negotiating an unprecedented leveraged buyout involving Merrill Lynch Capital Partners in 1986. Eckerd refocused on growth, acquiring Shoppers Drug Mart’s Florida stores in 1986, followed by 220 Revco locations. In 1997, Turley negotiated the sale of Eckerd to JCPenney in the biggest chain drug deal ever. He retired that year. Eckerd had 2,778 stores and sales of $9.6 billion, making it the fourth largest drug chain.
STEVEN C. ANDERSON NACDS Since 2007, Steven C. Anderson has been the president and CEO of the main organization that speaks for the $1 trillion retail pharmacy industry. Anderson’s tenure at NCDS is one that has seen drastic evolution, as pharmacies transform into healthcare destinations and as pharmacists stepped into the spotlight during the COVID-19 pandemic. In addition, he’s piloted an advocacy thrust advancing the cause and profile of retail pharmacies as primary partners in the U.S. healthcare system. With a reputation as a “Mr. Fix-It” (according to National Journal), Anderson has a long track record in association management, previously working with the National Restaurant Association, American Frozen Food Institute and the U.S. Chamber of Commerce Board of Directors. In 2016, he was named Trade Association CEO of the Year by CEO Update magazine and was once named Association Executive of the Year by Association Trends magazine.
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RONALD ZIEGLER NACDS
ROBERT BOLGER NACDS
Ronald L. Ziegler, the Washington insider who will forever be linked with Richard Nixon, served as sixth president of the National Association of Chain Drug Stores from 1988 to 1999. Previously serving as press secretary to Nixon, Zeigler had no previous health care experience but was experienced in political work and association management. Media reports at the time said the NACDS board opted for a well-known Washington personality with association management experience. “We think his knowledge of both the business and government communities will allow him to be highly effective as the president of NACDS,” Chairman Jack Robinson (Perry Drugs) said. By all accounts, he was a quick study on the drug business and his political celebrity brought attention to NACDS. “Many people were appreciative just to get the chance to sit down and talk with him,” Gerald Heller, president and chief executive officer of May’s Drug Stores, said at the time. Zeigler passed away in 2003.
Robert “Bob” Bolger was the founder and first president of the National Association of Chain Drug Stores, and helped oversee the transition of the drug store industry from regional to national chains. Bolger, who joined NACDS in 1962, was elected the organization’s first president and chief executive in 1967, a post he served with distinction for some 20 years, spanning a critical period in drug store retailing. At a time when powerful regional chains were morphing into national players, Bolger convened office when NACDS’ board of advisors was made up of executives named for the companies they led. Bolger is routinely credited as the man that brought the industry into the modern era. Bolger also understood some other key fundamentals as it relates to the trade association management business in general, and drug store retailing, in particular. It was under Bolger that NACDS held its first-ever Marketplace meeting in 1987, which is still an important (now expanded) event on the industry’s calendar. Bolger is also responsible for relocating NACDS to Alexandria in 1980, purchasing the first of the buildings that comprised its former office campus along the banks of the Potomac. Bolger also understood the importance of legislative and government affairs; under Bolger NACDS expanded government affairs activities to focus on challenges at the state level. Bolger passed away in October 2007.
ANDY GIANCAMILLI Katz Group One of the retail pharmacy industry’s highest honors was bestowed on Andy Giancamilli in 2012. Giancamilli, who retired that year as chief executive officer of Katz Group Canada Ltd. and was a former NACDS chairman, received the Sheldon W. Fantle Lifetime Achievement Award. The honor was established in 1989 to recognize exceptional accomplishments and contributions to the industry. Giancamilli joined Perry Drug Stores as a pharmacist. He worked there for more than 35 years, rising
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to become, sequentially, vice president of pharmacy, operations and merchandising before being appointed president and chief operating officer in 1993. As president, Giancamilli brought to the entire Perry chain a knack for retailing that he had demonstrated at the first store he managed. With the sale of Perry in 1995, Giancamilli joined Kmart Corp., as vice president of pharmacy and related categories. He made an immediate impact by stressing retail fundamentals. Within two years Giancamilli was able to increase sales in the “drug store” segment of the discounter’s business from $1 billion to $4 billion annually. He joined Katz in 2003 as CEO.
RANDY EDEKER Hy-Vee
RICK DREILING Dollar Tree Rick Dreiling has led three companies. The current chief executive officer of Dollar Tree earlier held the same role at Dollar General and Duane Reade. Dreiling took the top post at Dollar Tree this year at age 69, after joining the company as chairman last year. He headed Dollar General from 2008 to 2016. Over that time, the company increased its store count by more than 40%, to over 12,400. Sales increased more than 80% in the same period. His success there helped significantly raise the profile of the dollar store channel. But Dreiling already had an impressive career before he joined Dollar General. He first rose through the ranks at Safeway, where he got his start by carrying out groceries and made it all the way up to executive vice president. Dreiling next made his mark on the retail pharmacy industry, partnering with Warren Bryant on the transformation of Longs Drug Stores as the company’s chief operating officer, and then leading a turnaround at Duane Reade, which was acquired by Walgreens in 2010.
Randy Edeker, who has spent his entire career at Hy-Vee and was named chairman and chief executive officer in 2012, has put a premium on cultivating a creative mindset that allows the company to adapt rapidly. Edeker has held positions at every level of the company. He joined Hy-Vee as a part-time employee and moved up through the ranks, joining the corporate staff in 1995, serving as a director of operations for two regions. In 2004, he was named vice president of marketing and then, two years later, senior vice president of retail operations. In 2008, Edeker was appointed executive vice president and chief operating officer, and became Hy-Vee president in late 2009. Under Edeker’s leadership, the regional supermarket chain has stretched its business into nontraditional areas, with partnerships or auxiliary businesses as varied as adult and children’s apparel, full-service restaurants, specialty pharmacy and financial services. Edeker most recently hatched plans for a multistate expansion, into Indiana, Kentucky, Tennessee and Alabama, which would extend the grocer’s retail footprint from eight to 12 states. In 2022, Edeker handed the reins to Jeremy Gosch as Hy-Vee’s next CEO. Edeker remains chairman of the company.
MARY DILLON Ulta Beauty In just under eight years as chief executive officer of Ulta Beauty, Mary Dillon developed and nurtured the company’s winning, inclusive culture and drove significant business growth, more than tripling market capitalization to over $18 billion when she stepped down in 2021, doubling the store count, more than doubling loyalty members and significantly driving its e-commerce capabilities. During her tenure, Ulta Beauty joined both the S&P and Fortune 500 listings and delivered a total shareholder return of 245%. Dillon joined Ulta at age 52 from U.S. Cellular, where she served as president and CEO from June 2010.
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SYDNEY BESTHOFF K&B Sydney Besthoff, who died in 2022 at age 94, left a legacy that extended beyond the chain drug industry. Besthoff was the third-generation leader of Katz & Besthoff, which his grandfather, Sydney Besthoff, founded with Gustave Katz in 1905. By the time of its sale to Rite Aid Corp. in 1997, K&B, as it came to be known, operated 200 stores with about 4,500 employees and did about $750 million in business annually, making it the largest privately held drug store chain in the United States at the time, according to his family. Besides being a prominent New Orleans businessman and a patron of the arts, Besthoff played a meaningful role in the civil rights movement. In 1963, Besthoff represented the National Association of Chain Drug Stores at a White House conference that helped plan what became the Civil Rights Bill. By that time, his wife, Walda Besthoff, later recalled, he was part of a group of local leaders who integrated their food service counters.
CHRIS LANE Wakefern A pharmacist by trade, Chris Lane joined Wakefern Food Corp. in 2003 as vice president of pharmacy, charged with helping members of the nation’s largest supermarket co-operatives adapt and thrive. Wakefern added health and wellness to Lane’s portfolio in 2005, and later named him vice president of product divisions, a title he held until 2016, when he was promoted to executive vice president of the Keasbey, N.J.-based company, which has about 50 members and 350 supermarkets under banners including ShopRite, The Fresh Grocer, Gourmet Garage and Fairway Market across nine states in the Eastern United States. As executive vice president, Lane developed Wakefern’s inaugural fiveyear strategic plan to help members control costs, leverage technology and tap new revenue streams. Lane has served the board of the National Association of Chain Drug Stores in various roles, and as a member of the NACDS Policy Council. Lane left Wakefern in 2022.
JASON HART Aldi Jason Hart joined Aldi Inc. as a management trainee in 1993, ascended the ranks, and was handed the reins as chief executive officer in 2014. The promotion came as the deep discounter, controlled by a faction of Germany’s Albrecht family, was increasing its U.S. store count by 50% over five years. Under Hart’s leadership, Aldi has updated stores and diversified its merchandise offering in a bid to become more mainstream. Hart provided more space for produce, meat and bakery items, and initiated product improvements including removal of added MSG, certified synthetic colors and partially hydrogenated oils from the retailer’s exclusive brand foods. Aggressive expansion has allowed Aldi to achieve its goal, set in 2018, of becoming the third-largest grocery chain in the United States by store count. With plans to add 120 new stores this year, Hart said Aldi should end 2023 with more than 2,400 U.S. locations.
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JOE ANTONINI Kmart
HOWARD E. BUTT H-E-B
Joe Antonini served as chief executive officer of Kmart Corp. during a time when his company and rival discounter Walmart were vying to surpass Sears as the nation’s largest retail company. Antonini’s tenure as CEO, which spanned from 1987 to 1995, was characterized by innovation, expansion and challenges. Under Antonini’s guidance, Kmart experienced significant growth. His vision of modernizing the retail giant included the introduction of new store formats, including a version of the then experimental supercenter concept, called Super Kmart, that offered groceries and general merchandise under one roof. Kmart also tried its hand at big-box specialty retailing, acquiring the Sports Authority, the Borders bookstore chain and a stake in OfficeMax. Antonini was also a pioneer in forging strategic partnerships, including Kmart’s collaborations with lifestyle celebrity Martha Stewart and former fashion model Kathy Ireland. Kmart did face major challenges while Antonini was at the helm, but his leadership and determination helped ensure that the company was a major force in retailing as long as he was in charge.
H-E-B, a leading Texas grocery chain, takes its name from Howard E. Butt, whose mother, Florence, started the company in 1905 with a single store in Kerrville, Texas. Howard and his two brothers worked in the family business growing up and, after a two-year stint in the Navy during World War I, he took over the management of the store. Butt was an innovator, and in 1921 he opened a “cash and carry” store offering lessexpensive groceries to customers willing to serve themselves, pay cash and bring their own groceries home instead of having them delivered. That store, revolutionary at the time, was a hit. The company expanded, opening new stores and trying out new ideas. Butt began adding nonfood items like cookware to his store shelves in the 1920s, and the company—which changed its name to H.E. Butt Grocery Co., continued to experiment, opening larger stores, and adding air conditioning and frozen foods. In 1949 the company opened a 22,500-square-foot store that sold drugs and cosmetics and had a lunch counter. Howard’s son Charles Butt became chairman, president and chief executive officer in 1971 and remains chairman, and under his leadership, the company has continued to grow and innovate.
BRIAN CORNELL Target Brian Cornell has served as chair and chief executive officer of Target since August 2014. Cornell—whose previous experience included leadership roles at PepsiCo, Sam’s Club, Michaels Stores and Safeway—was the first outsider to be brought in as Target’s CEO. He took the reins at a challenging time, when Target had been hobbled by a poorly executed foray into the Canadian market and a data breach that compromised the personal information of millions of consumers. Cornell took decisive action then, and he has continued to do so ever since. So much so that the company’s board of directors decided last year to scrap the company’s traditional retirement policy and keep Cornell on for another three years. “Since joining Target in 2014, Brian has worked to transform Target into an omnichannel leader by driving a guest-centric, purposedriven strategy,” Monica Lozano, lead independent director on Target’s board, said in a statement. “The board is pleased that Brian has committed to continue leading Target’s strategy and driving its multiyear, long-range plan alongside his talented leadership team.”
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BUD FANTLE Peoples Drug Stores
JACK FUTTERMAN Pathmark Jack Futterman spent 23 years with Pathmark Stores, retiring as chairman and chief executive officer of the grocer and its parent, Supermarkets General Holdings Corp., in 1996. A pharmacist, he joined Pathmark in 1973 as vice president and general manager of its pharmacies and general merchandise departments after serving as president of Whelan Drug. Under Futterman, Pathmark became closely allied with the National Association of Chain Drug Stores at a time when the association was seeking to broaden its reach and impact to non-drug-store-based mass retailers. Futterman eagerly accepted a leadership role at NACDS, becoming the organization’s chairman in 1994. What made him especially valuable to NACDS and, through the association, to the chain drug industry was his level of involvement. He was not content merely to serve the association, he saw his duty as influencing it by demonstrating pharmacy’s value in retailing contexts that stretched well beyond the thennarrow confines of a community drug store.
Sheldon W. “Bud” Fantle, a pharmacy industry luminary, graduated from Ohio State University before embarking on a successful career. Partnering with financier Ace Israel, he strategically acquired Lane Drug Stores in Toledo, transforming it into a powerhouse with 200+ stores across four states. As Lane’s CEO, Bud demonstrated hands-on leadership, actively engaging in store operations and personnel interviews. Following a merger with Peoples Drug Stores, he assumed the role of CEO, contributing significantly to the National Association of Chain Drug Stores. Bud’s pioneering initiatives included early adoption of consumer goods discounting and innovative healthcare solutions, setting the stage for contemporary in-store clinics and patient-driven initiatives in the pharmacy industry. His legacy is marked by strategic vision, impactful leadership, and influential contributions to the evolving landscape of pharmacy.
BOB HANNAN Thrift Drug Bob Hannan joined Thrift Drug in 1966 and rose through the ranks of the JCPenney subsidiary before becoming its president and chief executive officer in 1987. Over the next decade Hannan built the Pittsburgh-based chain into a retail pharmacy leader. He transformed its mail order business into the nation’s second-largest mail order pharmacy, Express Pharmacy Service. Hannan’s tenacity and commitment helped persuade Penney to up its game in retail pharmacy, which previously had been a minor contributor to the department store chain’s bottom line. Late in 1996 Thrift was incorporated into the larger Eckerd chain, with Hannah serving as Eckerd’s vice chairman. Hannan served as chairman of the National Association of Chain Drug Stores in 1993-1994. Chain Drug Review named Hannan its Retailer of the Year for 1995 and four years later honored him with its Lifetime Achievement Award.
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BOB ULRICH Target
SIDNEY DWORKIN Revco Discount Drug
Bob Ulrich left an indelible mark on the retail industry during his tenure at Target Corp., demonstrating that the retailer’s “cheap chic” spin on the discount store format—combining affordability with an emphasis on design and style—resonated with consumers. Ulrich also prioritized corporate responsibility and sustainability, spearheading initiatives like the Made to Matter collection, which featured sustainable and eco-friendly products. Target’s community involvement and philanthropic efforts under his leadership also garnered attention and accolades. After leading Dayton Hudson Corp.’s Target stores division for a decade, Ulrich became chairman and chief executive officer of the parent company in 1994. Target continued to outperform the rest of the company, continuing to show strong growth while other discount chains, including Jamesway, Venture Stores and Caldor, fell by the wayside. Ulrich served as chairman and CEO until January 2008, and during his tenure Dayton Hudson Corp. changed its name to Target Corp. and sold off its other retail divisions, including Mervyn’s and Marshall Field’s. Under his leadership Target also nearly tripled its sales and store count, and saw its profits increase nearly ninefold.
Sidney Dworkin, the architect behind Revco Discount Drug Stores’ ascent as the largest U.S. drug store chain, began his career in Detroit, eventually becoming president in 1962. Under his leadership, Revco expanded from 100 stores and $75 million in sales to a formidable 2,200 stores with $2.2 billion in sales. In 1986, Dworkin orchestrated the leveraged buyout of Revco, serving as its board chairman until his resignation in 1987. Beyond his business success, he was honored for his contributions to Jewishcommunity and philanthropy. Dworkin’s entrepreneurial spirit extended to ventures like Stonegate Trading Inc. and diverse acquisitions. A World War II veteran, Dworkin earned a bachelor’s degree from Wayne State University and played a pivotal role in the AntiDefamation League and United Jewish Appeal, receiving the Torch of Liberty Award in 1969.
BOARD OF DIRECTORS NACDS Chair Michael Wysong CARE Pharmacies Cooperative, Inc. NACDS Vice Chair Kevin Host Walmart NACDS Treasurer Rick Gates Walgreens NACDS President & CEO Steven C. Anderson
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Brad Cochran, Medicine Shoppe International, Inc. Randy Edeker, Hy-Vee, Inc. Lynne Fruth, Fruth Pharmacy Omer Gajial, Albertsons Companies Mark Griffin, Lewis Drug, Inc. Sean Jackson, Sam’s Club Nimesh Jhaveri, Health Mart Rick Keyes, Meijer, Inc. Colleen Lindholz, The Kroger Co. Bob Narveson, Thrifty White Pharmacy Martin Otto, H-E-B Dain Rusk, Publix Super Markets, Inc. Karen Staniforth, Rite Aid Corporation Sharon Sternheim, Zitomer/Thriftway Drug Corp. David Warner, Kinney Drugs, Inc.
I NS I D E
7 Strategies for Leveraging TikTok TikTok is one of the most important platforms that marketers need to harness By Sheryl Teo, CEO, Popcorn Growth
With the year 2024 right around the corner, there’s a unanimous consensus that TikTok is no longer exclusively for young audiences—it’s a platform for everyone. It is imperative for marketers to harness it to avoid missing out on its potential. In this publication, we delve into the most discussed TikTok trends that have piqued the curiosity of marketers. We share our proprietary research and analysis, coupled with our recommendations on how brands can position their TikTok strategies in the coming year and beyond.
1.
TikTok Shop
TikTok is investing $500 million into TikTok Shop, its burgeoning online shopping beta in the United States. The allocated budget covers creator incentives, merchant discounts and the establishment of a delivery network. Inspired by Douyin’s social shopping success in Asia, TikTok’s leadership is looking to replicate that success in the United States. Nevertheless, despite the initial enthusiasm, TikTok Shop seems to be facing the classic “cold start” challenge, struggling to onboard American merchants onto its nascent platform. Several months in, fewer than 100 major merchants have jumped on the TikTok Shop bandwagon. To tackle this obstacle, TikTok’s team has been studying Amazon’s website, identifying product categories with strong sales and proactively reaching out to successful sellers to encourage their participation. While TikTok Shop currently holds great promise for small businesses, dropshippers, resellers and larger established brands may find it prudent to adopt a more cautious stance. TikTok’s research has shown that users see TikTok as a cheap marketplace similar to Chinese company
Alibaba and associate its products as inferior. TikTok is currently copying the growth strategy by Temu and Shein, two Chinese e-commerce companies that have found success in the U.S. by selling cheap products. Popcorn Growth’s conversations with creators in the United States have revealed reluctance among many to participate in TikTok Shop due to their preference for compensation based on flat fees rather than affiliate commissions.
2.
TikTok SEO
Many TikTok users are using the platform as a search engine. This trend has even been noted by Google’s senior vice president, Prabhakar Raghavan, who cited internal data showing that 40% of people rely on TikTok or Instagram over Google for search. When you’re searching for information, the odds are that you want to watch, not read. TikTok knows this, and is constantly upgrading its search functionality. While we are unsure of TikTok’s future in social shopping, we are bullish on TikTok’s dominance in discovery-based commerce, where users end up buying products they didn’t even know they wanted after seeing them in videos.
3.
Diversity in every sense of the word
Beyond its fundamental importance, diversity makes business sense, and Popcorn Growth has data to prove it. On average, when minority creators post branded content, 15% more viewers watched full videos and the TikToks have 20% longer watch times. In 2024, the definition of diversity will broaden substantially. True diversity encompasses individuals of varying ages, races, ethnicities, abilities,
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I NS I D E BEFORE
disabilities, genders, religions, cultures and sexual orientations. It also extends to those with diverse life stories, perspectives, backgrounds, experiences, skills and expertise. Diversity is no longer just about having a checklist approach centered on ethnicity or gender representation. By collaborating with a diverse array of creators, you can harness TikTok’s potential.
4.
Longer Content = More Revenue
Competition for attention in the digital world is high, and TikTok is raising the bar every day. As Meg Jing Zeng, a TikTok researcher at the University of Zurich, points out, the shift towards longer-format videos on TikTok has potential to be particularly lucrative. As some platforms transition to shorter-form videos, TikTok is extending its time limits in order to capture as much attention as possible. Starting with 15-second videos, the platform quickly moved to 60-second, then to three-minute, and now 10 minute-long videos. What does all this mean for brands? There will be an opportunity to create more interactive, immersive ad experiences through quizzes, polls and other elements, as well as utilize longer videos to tell more in-depth, informative stories about products or services. The TikTok algorithm will be able to serve longer videos to users based on their interactions, potentially allowing for more permutations in content variety.
5.
TV Ads Disguised as TikToks
If imitation is the highest form of flattery, TikTok is certainly singing a happy tune, because even big production TV ads are starting to look a lot more like TikToks. TikTok’s bite-sized content and raw storytelling has proven to be so engaging it looks like the next phase in this content revolution is bringing the edgy, vertical screen format to more traditional broadcast and OTT placements. Once upon a time, the perfected aesthetic of glossy commercials and ads were the gold standard in the creative world. New forms of media challenged this traditional “creative ideal” when they popularized the raw and unfiltered content style, redefining the media landscape with “the TikTok aesthetic” and changing the way we think about culture.
6.
TikTok + Instagram Reels: The Crossover You Didn’t Know You Needed
The one-two punch provided by TikTok and Reels has become an asset to creators and brands alike. After TikToker @1corporatemillennial (@elly__manuel on Instagram) crossposted a TikTok video for one of Popcorn Growth’s client on Instagram Reels, the video was organically boosted by Instagram’’s algorithm, resulting in a video with 17M organic views despite having only around 45k followers on the platform. The same video on TikTok has 2M views, where she has 84.4k followers.
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Hallmark Style Vday TV Ad
AFTER
Couple Celebrating Vday
Pet Lover’s Vday
LGBTQ Couple Celebrating Vday
Girl’s Night Out Vday
Why should brands take advantage? For one reason, the Instagram algorithm boosts Reels more than any other type of content. Case in point: the NFL teams’ Reels generated 67% more engagement than their traditional Instagram videos. This is a prime opportunity for brands to amplify the success of their TikTok videos, establish leadership in new areas of growth and engage with a wider audience. Join forces with TikTok and Reels and see where the magic happens!
7.
TikTok Reigns, Short-form Video Rules
At the end of the day, the secret sauce behind TikTok’s success is made from the same ingredients behind every other platform rushing to emulate them: short-form video content. Short-form video content is set to dominate, across all media platforms. Trends get set and content goes viral on TikTok; the content gets shared on Instagram, where Millennials go to watch TikTok videos. Eventually, the content lives into perpetuity in the abyss of Youtube. The goal is to meet consumers where they are, with the shortform content they long for. Whether that’s through DOOH advertising, television, or in the palm of their hands, it’s all about catering to the audience. dsn Sheryl Teo is the founder and CEO of Popcorn Growth, a firm that helps clients leverage social media and influencer marketing to boost their brands.
LAST WORD
A Case for Precision Medicine in Pharmacy What’s the role of precision medicine in the future of pharmacy? By Amir Shirazi, Pharm.D., Ph.D
For centuries, the basic approach to medication of almost any kind was essentially one-size-fitsall. The focus was on the disease state and a drug that could effectively counteract it. Yet, health care practitioners have regularly understood that a patient will have various outcomes with different drugs and doses depending on a host of factors, such as their race, gender, age and genome. While the cost and complexity of addressing these factors individually was too great, with precision medicine, this obstacle is diminishing and the future of medicine is evolving.
Pharmacist’s Role in Making Precision Medicine Accessible
The pharmacist and pharmacy industry play a critical role in the opportunity for growth and success of precision medicine. It is extremely important to train retail pharmacists in precision medicine—and this can start in school. Because the typical retail pharmacist is one of the most accessible health care providers in a given community, a pharmacist with enough background and training in pharmacogenomics can answer patient’s important and potentially Dr. Amir Shirazi complicated questions. They also can work with serves as an a patient’s network of providers to create a Precision Medicine’s Impact Assistant Professor “profile” to optimize drug therapies that will be on Patient Care of Pharmaceutical Sciences at Marshall most effective. A pharmacist also can collaborate There is an array of parameters that can impact B. Ketchum University with doctors to enhance treatment, leading to the efficacy of a drug in an individual patient, College of Pharmacy. the patient experiencing fewer side effects and which precision medicine is designed to mitigate. He holds both better outcomes. The physiology of the patient’s organs and their Pharm.D. and Ph.D. There are, of course, some barriers to the functions, the patient’s environmental markers, degrees. wholesale adoption of precision medicine in the such as smoking status, alcohol consumption, future. One of the major hurdles continues to be nutrition and pollution and finally, the different the high cost. There are also legal and regulatory frameworks drug metabolizing enzymes in a patient’s body all have an that must be developed to protect patients’ privacy. Regulatory impact on the outcomes of medication. When combined oversight in a rapidly changing market environment is with the fact that a disease such as cancer is a complicated a challenge—whereas before some drugs would have a and aggressive foe, it becomes even more advantageous to development timeline of 20 years. The COVID-19 pandemic ensure patients are receiving the best treatment for their body. ruptured this typical timeline. It may also prove difficult to Precision medicine allows health care providers to optimize the get different health care systems to collaborate with respect to drug response of the treatment, giving each unique patient the sharing a patient’s drug therapy “profile.” right drug in the right dose. In spite of these possible barriers, the potential for An absolutely vital subset of precision medicine is precision medicine to revolutionize how pharmacists care pharmacogenomics, where genetic variations are used as a guide for patients in partnership with other health care providers, for drug selection and dosing to maximize efficacy and minimize with drug therapies that are more effective than ever, is side effects. And now that the National Institute of Health has a truly electrifying. And I am privileged as a researcher and full map of the human genome, precision medicine will continue educator at the College of Pharmacy at Marshall B. Ketchum to expand in its usefulness. An enormous percentage of the University—where we train our future pharmacists in industry’s pipeline has the potential for personalized medicine, precision medicine during their second year—to be a part of which is very exciting in light of how the efficacy of many this new era in medicine! dsn different drug treatments is limited simply by the patient’s genes.
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