Ever since their iconic baby powder was allegedly linked with ovarian cancer, the sales have taken a big toll all over the world, and mostly in the U.S.A.
A judgment of approximately $4.7 billion was heard against the 135-year-old brand J&J last month. Ever since the judgment, the marketplace has become harsh towards the brand.
The major selling product of the brand – the talcum powder was found to be contaminated with a large amount of asbestos, which is also referred to as carcinogen, which leads to cancer.
Even though J&J has repeatedly denied the presence of any cancer-causing agent in their product, the internal copy records, and a few other trial testimony showcases that from 1971 to the early 2000s, their raw talc reported positive for some amount of asbestos.
Recently, J&J claimed that tests were conducted in December by the U.S Food and Drug Administration department and no amount of asbestos was recovered from their products.
Even so, the demand for their highest selling talc-based Johnson’s baby powder has now declined drastically due to the change in consumer habits. According to the company, consumers are fueled by information due to the safety issues going around in the market and constant litigation allegations.
Due to the continuous decline in sales, the company decided to discontinue the sale of talc-based products in North America.
The company announced its withdrawal from the North American market but also stated that it would continue to defend its product in the court of law. Baby talc powder being their most sold product includes talc as the main ingredient which is a mineral known for softness.
The company also stated that it would let the existing bottles on the shelf of the stores be sold until they ran out. The alternative for the talc powder- the cornstarch powder remains available in the market.
Also, apart from North America, J&J will continue to sell its talc-based powder in the other parts of the world. The talc powder has been advertised for infants for the longest time. But, adult women have been the major consumers for the product, using them between the legs to prevent chafing and rashes
Most of the women developed ovarian cancer with the long term use of the product and eventually sued the company due to the presence of asbestos.
Many of these cases have been tried, won, lost, and settled. All of the cases lost have gone to appeal and are still being tried to date. Many times, the company agreed to settle the lawsuits to win back the public confidence and give assurance to the shareholders.
This big move of discontinuing the talc powder will hit a big rock towards the company’s revenue. U.S market contributes a large chunk of company sales all over the world.
But in the hour of the need, it is the right move by the company to discontinue the product if it is claimed to be a major threat against human health.