Bayer sells directly to PETSMART, PME, etc...

Here is a new topic for discussion:

Effective immediately, Bayer Animal Health will sell ADVANTAGE and K9 ADVANTIX brands directly to entities within the premium pet store sector. Bayer listed several such entities. The list included PETSMART, PETCO and others. They emphasized that “big box” stores (WalMart, Costco) would likely not be in the mix for several years to come.
· Effective immediately, Bayer Animal Health will also sell directly to entities in the Internet Pharmacy sector. Bayer listed PetMedExpress and Foster and Smith. They will sell all Bayer brands into this segment, including ADVANTAGE MULTI, BAYTRIL.

What do you think about that?

 

Link..?? All speculation right now...

 

Bone head, not effective immediately, obviously you do not know the facts and until you do why not just wait. I see Pfizer reps showing pictures of FL at Costco all the time, what purpose, could Revolution and a preventic collar possibly do the job

 

Speculation? It's happening...

 

Link?

 

http://veterinarynews.dvm360.com/dvm/Veterinary+news/Bayer-to-sell-Advantage-K9-Advantix-products-direc/ArticleStandard/Article/detail/656288?contextCategoryId=378

 

Bayer Animal Health announced Tuesday an end to its decades-old policy of selling Advantage and K-9 Advantix flea and tick prevention products exclusively through veterinarians.

Citing ongoing consumer demand for more convenient access, the company said it will sell its parasiticides directly to pet specialty retailers and pet specialty Internet sites beginning in March.

The products already have been carried for some time by outlets such as Petco and the online pharmacy Pet Med Express, which apparently obtain the merchandise through clandestine “gray market” channels. The practice is not illegal — the law does not require pet parasiticides to be sold to consumers only by veterinarians — but has been a violation of the major companion-animal-health companies’ sales policies and a sore point in the veterinary community.

The situation upsets some practitioners who say they are able to offer lower medical-service fees thanks to income from sales of parasiticides and other products. Some clinicians also feel they’ve been exploited by companies to build brand loyalty among pet owners.

Expressing a resentment shared by others, Dr. Carl Darby, a practitioner in Seneca Falls, N.Y., wrote in an online discussion of the Veterinary Information Network (VIN): “I guess they have decided that they do not need their free sales force any more. Someone at Bayer must have decided that they can make more money and sell more product through retailers.”

Darby added in an interview by e-mail with the VIN News Service, “I hope that Bayer understands that losing their highly educated, motivated and dedicated free sales force may have long-term impacts on their business, and it may be difficult for them to regain the trust of the profession.”

At the same time, Darby and others lauded Bayer for addressing the problem of product diversion to the gray market head-on.

“At least they are not lying to our faces,” he wrote on VIN, referring to a suspicion in the veterinary community that pharmaceutical companies have been complicit in making flea and tick products available outside of veterinary clinics, either by selling products to retailers without admitting it, or by not aggressively hunting down leaks in the wholesale pipeline.

Officials at pharmaceutical companies such as Merial, maker of the top-selling parasiticide product Frontline, have said that the main source of diverted product is veterinarians themselves.

Given the contentious history of the issue, Bayer’s new sales policy elicited a flurry of opinions even before the change was announced publicly. Many comments posted on VIN were angry. Some practitioners said they would immediately stop carrying Bayer products. Others brainstormed on how they could register collective displeasure with the company’s new stance. But the sentiment was not universal.

Dr. Jami Stromberg of Brooklyn Park, Minn., for example, wrote: “Pesticides are a nice source of income, but I will not live or die on those sales. To protest ... (against) a drug company for acting in their own interest in a completely legal way seems to be a little over the top. I will continue to dispense and recommend the products that I feel are the most useful, and the drug companies will continue to distribute to the stores/clinics/pharmacies that will sell their products. And the sun will rise tomorrow morning like it always does.”

Dr. Albert Ahn, a pharmaceutical company executive who spent about 10 years working on flea and tick prevention products at Merial and Summit VetPharm, said Bayer deserves credit for directly addressing the growing problem of product diversion and veterinarians’ discontent over the issue.

“Bayer’s move was definitely a bold one,” said Ahn, who is currently president of AB Science in New Jersey. “I do think they’re taking a position of leadership. ... It’s my opinion that this will put quite a bit of pressure on other companies to adopt a position and to articulate their sales policy going forward.”

Spokesmen at Novartis, Pfizer and Summit VetPharm told the VIN News Service that their policies of selling product exclusively through veterinarians would remain unchanged.

Merial, maker of Frontline, which appears to be the most-diverted flea and tick prevention product in the country, said it would release a statement on the subject "soon," but had not done so as of 2 p.m. EST today.

In early 2009, the makers of pet parasiticides affirmed their commitments to their veterinary-only sales policy in interviews with the VIN News Service. Bayer spokesman Bob Walker said last March: “We believe in our sales policy and continue to abide by it for its support of the veterinary profession and the value that veterinarians bring to pets and pet owners.”

In Tuesday’s announcement, apparently anticipating some negative reaction, Joerg Ohle, president and general manager of Bayer Animal Health, said: “We cannot stress enough how committed we remain to veterinarians and we intend to build on our long-standing partnerships with new investments in programs and promotions to support their practices, the profession and the industry.”

Toward that end, Bayer said it will launch a multimillion dollar advertising campaign to spotlight the importance of veterinary visits. The ads will appear in print magazines targeted to pet owners and be distributed at the checkout stands of pet specialty stores.

Bayer also said it would introduce a “March Back In” rebate program in which pet owners who buy an Advantage product from licensed veterinarians during the month of March will receive a $20 rebate if they return to the same clinic for their pet's medical care by Dec. 31.

Bayer added that it plans to increase its financial support of the industry through “key associations” including the American Veterinary Medical Association and the Association of American Veterinary Medical Colleges. It did not give details on what form the support would take.

Answers to other questions about the policy change — including which retail outlets specifically Bayer will sell to, whether it will attempt to control discount pricing, and whether the sales policy change will apply outside of the United States — were not immediately provided by the company.

 

Well it appears that Merial must have something up their sleeves too. I was just talking to one of my veterinarian clients and he was telling me that Merial has denied his recent order on the promo after they even confirmed that it was previously ok. He is mad as hell that they won't ship his order. He stated he is going to start converting his clients to Comfortis, "screw Merial and screw Bayer." He also said "you know it is pretty crappy that Merial sends us out a letter to reassure us that they are't going OTC and then the bastards won't ship me my order!" Like saying he is mad mad mad. I know he is just one veterinarian, what buzz has anyone else heard??????????

 

Looking at new opportunities
What is the latest in terms of culture at bayer animal?

What kind of base and bonus should be reasonable?

At this point what is the big product promotion opportunity?

Are they committed to the sales force given move this year to sell beyond vet practice

 

Re: Bayer sells directly to PETSMART, PME, now Walmart

I understand Bayer is now selling to Menards and it has been said Walmart has now come online

Seems Petsmart and pet specialty was just the start of their carefully orchestrated plan to sell direct to consumer channel while limiting vets to certain volume levels because they are worried they will divert?

Bayer is selling direct to most if not all the chains now

Guess Merial was not so bad after all

 

Re: Bayer sells directly to PETSMART, PME, now Walmart

This is confirmed. I just saw Advantage on my local Wal-Mart shelf last night
Bayer is selling direct - why should I support a company that has sold out to the pet and mass trade?
They can come take their crap off my shelf today

 

Re: Bayer sells directly to PETSMART, PME, now Walmart

F You! Who cares about your little clinic?

So much more money to be made at the retail outlets!

 

Re: Bayer sells directly to PETSMART, PME, now Walmart

What???? Bayer sells Advantage II and Advantix 11 to pet stores??? I had no idea. I have been a big Bayer supporter for many years. I am a veterinarian who believes in loyalty, trust, and integrity. I am going to switch to Frontline Plus tomorrow!

 

Re: Bayer sells directly to PETSMART, PME, now Walmart

If you were a veterinarian your message would not look as though it was composed by a 3rd grader. Obviously you work for Merial. ( Great portfolio by the way) where all of your big hitters are going generic and what you have been diverting for years will no longer be wanted. Fipronil with Amitraz?? Brilliant. Another genius move to show that Frontline does not handle ticks. Bayer says it and you will prove it. Keep up the great work. Maybe you can merge with Vet Street.

 

Spot on again. I work with Ken Allen and the OTC team here is the standard contract pricing to Pet Specialty. Peter Ryan has authorized us to offer the following. 5% off list, 2% early pay, 2.5% carrying and displaying all 4 epa sku's, 5% trade/co-op funds. As far as returns we can accept up to 2% of what has been purchased per quarter, no questions asked, nor do they have to ship them back. The reason why I am coming forward is that I, as a Bayer team member see the division that is being fostered between not only our pet specialty and vet accounts but reps as well. We are being incentivized to take business away from our peers on the vet side and being given tools that by far surpass what Peter is giving Kirk and his team. The long term effect of this is clear as far our relationships with vets. I truly believe Peter knows this but does not care as he obviously is comfortable that even with the alienation of vets he will grow the brands with the pet specialty. So he clearly has no hope or nead for Multi and the other vet only brands we have as well.
Obviously this is how the Pet Specialty can now become our loyal diverters and keep the margins low! Is this true?

 

Re: Bayer sells directly to PETSMART, PME, now Walmart

LOL! This is very funny! I am not a Merial employee, but I am an ex-Bayer sales rep. I am fortunate now to be selling the magic flea pill! That title is not from me, but from all my customers. My favorite part is when you say great portfolio. I forgot Bayer has a great portfolio. Let me know where you are and I will see if I can get you over to Elanco. This grass is bright green!!!

 

Yes all true. Ask Peter, Ken or Kirk. They will confirm or dodge the question. lying is no longer an option.

 

can someone please explain the realtionship between the Bayer Animal Health division and GSK?

 

All eligable products that dont require a prescription by a veterinarian will eventually go OTC. The companies such as, Bayer, Merial, Elanco Lilly will eventually all follow suit. The companies use veterinarians to get their clients hooked on a product (prescrption/non prescription) and the manufacturers wait until they have a decent clientel and get greedy then decide to sell to online companies. They then say well technially 1800petmeds has a vet on staff so its no different than selling to us at the vet clinic.

What we as technicians and doctors need to understand is that in todays world most everything is sold online. So we can either price match or just proxy our orders to clients and act as our own online pharmacy.
I can either take someones $20 markup on a product and put that in my pocket or we can write scripts for the online pharmacies to earn the $20. we have to choose our battles. Our clinic has decided that we will never win the compition against the internet so instead we join them.

Remember your clients would much rather buy a product from you than from online as long as the prices are matched.

We cant even use the excuse of, well the company wont gaurentee the product uf you dont buy it from your vet because the online companies have come up with their own terms. They will in fact gaurentee their products and pay for dewormer if needed or even heartworm treatment should a patient cone down with any of these.

Its a bunch of crap, but we just have to accept these terms and keep one thing in mind... The patient is what matters! And we all want to save money...