Kimberly-Clark is leveraging its strong brands and ongoing innovation to further strengthen its leadership position in the North American adult care market. The effort is one of the company’s targeted growth initiatives.

The $1.2 billion adult incontinence category has been growing at a mid-single-digit rate for the past several years, a pace that is expected to continue as the Baby Boomer population ages.

K-C is the clear market leader, with shares in excess of 50 percent in the U.S. Offerings include DEPEND® products—the brand with which K-C launched the adult incontinence category in 1984—and POISE® products for women with light bladder weakness.

The company’s North American business has delivered strong performance over the past several years – volume growth has averaged 7 percent from 2005 through 2007. In 2008, volumes have risen 5 percent through nine months, despite a mid-year price increase, and market shares have increased about 1 point.

“Our long-term market leadership in adult care is built on a rich tradition of mining consumer insights and introducing industry-leading innovations,” said Bruce Paynter, group president, North Atlantic Personal Care. “We are well-positioned to continue to leverage the opportunities in this attractive category.”

Launching Another Category First

A steady stream of innovation over the past two years has spurred K-C’s strong growth in adult care. For the DEPEND brand, K-C launched a significantly upgraded DEPEND step-in underwear product and an improved DEPEND Guard for Men in 2007 that provided substantially enhanced leakage protection, addressing the number one consumer need.

These successful enhancements are being followed by another groundbreaking adult care innovation in 2009: DEPEND Underwear for Women and Men will debut in March as the category’s first gender-specific adult absorbent underwear.

The patent-pending male and female designs of the new DEPEND Underwear are tailored to accommodate the unique body shape differences between men and women, providing a better fit and, therefore, better protection. Customized leg openings are shaped to contour to male and female bodies, increasing comfort and preventing leakage. The products’ gender-specific absorbent design provides protection where men and women need it most.

“As the market leader for more than two decades, Kimberly-Clark understands the emotional impact incontinence can have on those who suffer from this medical condition,” said Andrew Meurer, vice president, North American Feminine and Adult Care. “We’re committed to delivering product solutions that provide users the confidence and dignity to overcome the withdrawal and other emotionally debilitating symptoms that can so often result from this condition, as well as help them maintain a normal and active life. Our DEPEND Underwear for Men and Women deliver on that commitment, offering consumers a gender-specific design that provides better comfort, enhanced discretion, and superior fit and protection.”

As part of the introduction, the DEPEND brand will unveil more intuitive packaging for its entire product line. Distinctive color coding, a new absorbency scale and a simplified sizing structure will help make choosing the right product solution faster and easier for shoppers.

The launch will be supported by the largest integrated marketing campaign in the history of the DEPEND brand. Elements will include television, print and online advertising, direct mail and other tactics. A Web “microsite” (www.preview.depend.com) within the primary DEPEND Web site highlights the new products and the new intuitive packaging designs. [For more information on the new DEPEND products and the launch campaign, read the news release.]

Enhancing Protection and Comfort in POISE

In the light bladder weakness segment, K-C followed its successful 2007 introduction of a redesigned POISE pad with a new product launch and additional improvements across the entire POISE product lineup in 2008.

The new product—the Ultimate Extra Coverage pad for overnight use—was introduced in July, providing a balance of superior protection and comfort. Meanwhile, all of the heavier absorbency POISE pads were improved in the second quarter with the addition of new purple Leak-Block* Sides. In addition, POISE liners and ultra thin pads were upgraded in the fourth quarter to make them thinner and more flexible, with a feminine look and feel added to both product and package.

“We’re committed to continue delivering superior discretionary product solutions to meet the needs of consumers dealing with incontinence,” Meurer said. “Our strong brands, coupled with ongoing innovation supported by world class marketing initiatives, will reinforce our leadership and generate strong growth in this high-potential, high-margin business.