SCA is a global leader in personal care and has a portfolio of incontinence products, baby diapers and feminine care products. Within these product segments, SCA also offers such products as wet wipes, soap, baby oil, lotion and cotton pads. The products are sold under SCA’s global, regional and local brands as well as under retailers’ brands. Distribution channels for the products are the retail trade, pharmacies and care institutions.
At the end of the year, SCA had production at 30 plants in 25 countries. Products are distributed via the retail trade, pharmacies and care institutions.
During the year, SCA focused on the cost and efficiency program, launched in 2012, for its hygiene operations, meaning Personal Care and Tissue. The program is progressing according to plan and will generate annual cost
savings of EUR 300m with full effect in 2015. The bulk of the savings will be made in production and sourcing. In terms of production, SCA is working to standardize activities by implementing the most efficient processes at all of its production facilities. For sourcing, the main focus is on achieving economies of scale by more efficiently centralizing sourcing and consolidating suppliers. The program also requires savings to be made in logistics, sales and administration. In 2013, total cost savings in the Personal Care and Tissue
business areas amounted to approximately SEK 1,050m.
Innovations and launches
In 2013, SCA launched the incontinence product TENA Lady Extra Plus InstaDRY™. The product contains a unique new absorption concept, InstaDRY™, which enables absorption of a larger amount of fluid in a very short period of time. The product also offers Fresh Odour Control, impeding bacteria growth and reducing odor. Thanks to InstaDRY™ technology, the pad is smaller, better adapted to body contours and features tapered edges for the best fit and discretion. The pad is designed for women suffering from medium bladder weakness.
SCA launched and upgraded the incontinence product TENA Pants with ConfioFit™ for users with greater protection needs. The product has a unique anatomical fit and slimmer mid section to ensure a more discreet incontinence
product with enhanced comfort. During the year, SCA launched TENA Identifi,
a new technology that simplifies and increases the efficiency of the work carried out by caregivers and improves the quality of life for those with incontinence. Integrated electronic sensors in the incontinence product register urinary regularity and volume in a log system. The information can then be analyzed and used to provide the appropriate treatment and protection to individuals with incontinence.
During 2013, SCA introduced TENA U-test, an in-pad test card that facilitates detection of urinary tract infections among patients. The method simplifies diagnosis for caregivers and reduces patient discomfort compared with a urine test, which may require the use of a catheter.
During the year, SCA further developed its Libero diaper function, logotype, design, packaging and external communication. The products were relaunched in the Nordic countries, Russia and China. SCA also sells baby diapers under the Sealer brand in China.
During 2013, SCA developed the Sealer diaper’s characteristics, design and packaging, and a new diaper that meet parents’ needs in the economy segment was launched.
In Mexico, SCA launched Saba Intimate Soap, complementing Saba’s feminine care product offering.
SCA’s target for the business area is annual organic growth of 5–7%.
In 2013, the Personal Care business area grew both organically and through acquisitions. Sales rose during the year in all product segments and global growth for the business area, excluding exchange rate effects, amounted to 6%. Acquisitions increased sales by 3%. Excluding exchange rate effects, the sales increase in emerging markets was 10%. Emerging markets accounted for 38% of the business area’s sales in 2013.
During the year, SCA established operations in India and decided to invest SEK 150m in local production of hygiene products. The plan is to commence production at the Group’s own plant in 2015. India’s large population and low use of hygiene products indicate potential for future growth. During 2013, SCA launched baby diapers in India under the Libero brand.