Read the Conversation
EF: How is wellness understood in Latin America, and what is its strategic significance for the future?
DL: There are two components to wellness which are the emotional component and functional component, both of which are highly pertinent in Latin America. The emotional component of wellness focuses on how you feel, which may include a lack of discomfort or a problem. However, it can also be about your level of energy, your social participation, and your capacity to truly connect with those around you. All of these are aspects of well-being. The next crucial functional component in Latin America is whether or not I have the mental and physical capacity to carry out the tasks I need to accomplish to earn money today, care for my parents or children, or fulfil my obligations to my family and community. These concepts are interconnected, and Haleon considers both of them to be part of wellness.
The focus is on everyday health, not simply on curing sickness or easing a symptom, while these are both vital, but on improving health every day as we have built our mission around delivering everyday health to humanity. We understand that health is a human quality that cannot be measured in a lab or by a chemical test, which is why we include the phrase "with humanity" in our mission statement. Health is defined as an individual’s capacity to perform their daily tasks both emotionally and functionally, as well as how they feel when they wake up and when they go to bed.
A significant portion of the consumer health and self-care sectors align with a long-term trend in which consumers seek information to empower them to make the best decisions for themselves. Although people still turn to experts like doctors and pharmacists, more and more people are turning to Google to find the best information regarding self-care.
Our focus on AI is using it to improve information and communication, as well as to accelerate research and development and arrive at better solutions. The trend is already evident: individuals are turning to AI to gain more knowledge and understanding about how to care for themselves.
Healthcare professionals play a crucial role, and their time is valuable. People know themselves better than their doctors do, and there are numerous ways for them to obtain the information they need to take care of themselves. Better overall health outcomes are possible with the correct information and communication. In addition to helping people live better lives, this can also be done in a way that is far more sustainable for healthcare systems. Like the majority of Latin American countries, Mexico has a fundamental right to healthcare. That is extremely challenging in real life, though, as resources are limited.
According to some interesting studies, the formal healthcare system saves $7.00 on average for every $1 spent on self-care. Medical professionals can focus their expertise on complex medical cases where they are truly needed, while minor ailments and everyday health concerns can be efficiently addressed through alternative solutions. Patients can avoid long waits at clinics or the inconvenience of traveling from rural areas by accessing care at a local drugstore, especially during off-peak hours. This approach not only enhances convenience but also offers a more cost-effective and accessible healthcare solution for all."
EF: What is your top priority for Haleon LATAM this year?
DL: Our primary priority is expansion, both from a commercial and financial standpoint and from the standpoint of how it affects people. Our business in Latin America is doing well. We rank among the top five companies in our industry. We lead the world in our consumer health categories. That implies that we have a lot of room to expand our activities in Latin America, especially in Brazil and Mexico. We are making significant investments to fortify our company and diversify our portfolio. In Mexico, we outperformed the market in four of the five categories we competed in last year, growing almost 1.7 times faster than the market.
Crucially, volume, not simply price, accounts for a significant portion of that gain. For some years, this has been an inflationary cycle. Naturally, we must manage our margin structure and operate a company that makes sense to our stockholders. However, in keeping with our goal of improving people's everyday health, this involves expanding our customer base or volume by really providing more and more Latin American people with brands, services, and products that make sense.
EF: What does access mean to you?
DL: Access is the ability to obtain what one needs. For instance, the time, location, and accessibility of the resources that an individual requires, as it is not feasible to establish a health clinic on every corner. However, there are pharmacies in Mexico where over-the-counter medications are offered in small businesses and on the streets. In Mexico, you can purchase an over-the-counter pain medication from more than 350,000 locations. Access indicates that the aid you require or the answer to your problem is available when and when you need it, and at a cost you can afford.
As we consider Helion's global access strategy, we hope to provide additional solutions to address the access issues faced by healthcare consumers globally. Brazil and Mexico are important markets when considering Haleon's strategy. Our goal is to truly create the solutions people require to care for themselves and their families. To make a greater number of those products available in the community where people need them, at the appropriate time and at the right price, we are also collaborating with pharmacies, mom-and-pop shops, and various distributors.
EF: Do you have any specific projects that you are looking forward to?
DL: We are creating fresh approaches to meet Mexicans' access requirements. In certain instances, new technology was used, and in other instances, technologies that were already in place elsewhere in Haleon worldwide. By doing that, we will be able to use better technologies and well-known brands to reach millions more individuals. In Latin America, we are establishing and enhancing our brands. Trusted brands play a crucial role in consumer healthcare in general and in access in particular.
I said that individuals need to be well informed to make the best decisions, but how can someone who is not a chemist obtain high-quality information if they are unable to grasp the studies? Brands are a quick way to gain trust and help people know who to trust and where to start. Here at Haleon, we take that obligation extremely seriously, and we must always keep our word. As a result, the companies we endorse must be of the highest caliber, utilizing the most advanced technology and science.
Additionally, we support it with endorsements and partnerships with healthcare professionals. That is a crucial component of access as well because we frequently hear from our customers that they are unable to purchase potentially ineffective items when their funds are restricted. For this reason, we have developed relationships with trustworthy brands throughout the years, such as Sensodyne, Corega, Mejoral, Advil, and Centrum in Mexico. They are certain that they will receive a dependable, high-quality product.
EF: What is your pitch, and how do you attract resources?
DL: Presenting a business case that is in line with the company's goal is how you attract resources in a large organization. I think about what Haleon desires. As a relatively new multinational, Haleon has promised its investors certain things. We have made commitments to specific growth rates and profitability goals. As a result, Haleon has pledged to grow at a rate of 4 to 6% each year across Latin America. We have a lot more room to expand. We have promised to consistently deliver that. Over the past few years, we have demonstrated in Latin America that we regularly fulfill our promises. Our workers in over ten Latin American countries are highly skilled and professional, and the Haleon, Latin America organization is quite mature. They are capable of managing the company and delivering within Haleon.
How to unlock the next level of growth is the main topic of discussion on a global scale. A significant portion of that concerns the brands' superiority and accessibility. Although I am the only Latin American ambassador to Haleon, I am not alone. The chief of the oral care category lived in Brazil for two years. About ten years ago, he was the general manager in Brazil. As a result, Haleon has a solid team that knows how to function in Latin America and its potential.
EF: What resources do you think Haleon and other businesses will require in the future?
DL: We are already leveraging AI not only to develop tools but also to train and enhance our workforce in using these technologies as efficiently as possible. From routine tasks like browsing and taking meeting notes to generating fresh ideas for research and communications, AI plays a crucial role. We also use AI to collect and analyze customer feedback much faster, allowing for more timely insights and improvements.
The risk of information protection is one of the other factors associated with technological growth. To accomplish all of that behind the company firewall, we have created in-house versions of several of the most significant generative AI tools. We have no intention to make our research or innovative research concepts publicly available. We're working hard to deploy that globally, but Haleon has invested a lot of research and energy in that. People from our international technology, innovation, and marketing departments have already conducted training in Latin America for us to utilize those skills in the future.
EF: Would you like to provide us with one last piece of information?
DL: Our operations are influenced by a complex global landscape that extends beyond healthcare. In the U.S., a new president has taken office, and trade restrictions and other issues affecting U.S.-Latin America relations are under discussion. Meanwhile, Europe has undergone significant governmental changes. Given this shifting environment, we must consider two key questions: How do these developments impact our customers? And what do they mean for our business and the way we operate? While geopolitical uncertainty is not new to Latin America, our experience equips us to navigate these challenges effectively."
The current state of affairs in Argentina is interesting. In Argentina, Haleon has a thriving company that has persevered in running efficiently despite a variety of difficulties. I have no idea where this series of challenges will lead, and I doubt anyone else does either. We are aware that politics has no bearing on the necessity of health care. People will continue to have a greater need for what we are providing. I'm also considering how, as a company, we must remain adaptable and agile to continue providing and delivering those solutions to our customers across all countries, regardless of how those external circumstances turn out.
Haleon has been one of the top-performing multinational corporations in Latin America for the past two years, if you look at the industries in which we operate. In one area or another, there are local businesses that did better than us. From the standpoint of corporate investment, Latin America is a challenging region for multinational corporations to operate in. If you know how to work within this system, you can also earn significant returns sustainably if you have the proper people with the right competencies and know how to handle those dynamics.
Working together with other industry participants to try to enhance some of the regulatory frameworks in Latin America, streamline procedures, and boost the dependability of some of those procedures is another important point to make. We observe some very encouraging signs. For instance, Mexico recently announced or publicized its intention to shift to a regulatory-based approach to several parts of healthcare legislation. This pattern has a lot of promise. Access and health will undoubtedly gain greatly if you consider the requirements of people and the ability to introduce innovations and technology into the country more quickly. Because governments already spend a lot of money examining things that other governments have already evaluated to standards that are 90% the same, if done correctly, it may be a significant move for the government's resources.
For example, streamlining some of the procedures surrounding well-established over-the-counter medications so that they are not handled precisely the same way as innovative pharmaceuticals or shifting healthcare toward a regulatory-based approach. Since many of our countries suffer from severe nutritional deficiencies, we should even streamline laws about vitamins and supplements. Mexico has one of the highest incidences of diabetes worldwide, which is a serious chronic health issue. Therefore, having access to all the necessary nutritional assistance makes a huge difference, and there is a great chance to simplify and streamline regulatory procedures so that innovation in those areas may reach the market more quickly.
Since we have a global footprint in that kind of experience, we are engaging with all the stakeholders to try to support the positive signals we are seeing and to attempt to bring case studies and pertinent data from other areas that have travelled that path. That is the other item that, in my opinion, is crucial when considering the Latin American scene.
EF: What index would you use to measure access in the healthcare sector?
DL: Two years ago, Haleon and The Economist Intelligence Unit collaborated to create an indicator of health inclusion. It is a program with a database structure that examines several indications. There are several factors, including health literacy, formal system access, and health inequality, whereby various communities may have varying degrees of information or formal service accessibility.
