Slicky Business

Not that long ago, the word "lube" would illicit laughs from many consumers - and disdain from mainstream drug companies, who looked down on the product that was getting a boost from the black sheep in the family: the adult industry. Now, the tables have turned as lubes have given a bona fide boon to the bottom line.
"It's gone from a taboo type of a product to a more accepted product that everybody is more open to. Now you have companies like Johnson & Johnson making KY jelly, and before they wouldn't even dream of advertising in the mainstream market," says System JO president Solomon Levy. "The days of sticky-floor, dark-backroom stores are gone."

ID Lubricants has long enjoyed a mainstream retail presence in stores like Walgreens and Rite Aid, with more hopping on board. As a leader, ID has developed an extensive program that distributes more than 20 million samples annually for the promotion of safer sex, unplanned pregnancy prevention, and more pleasurable sex, notes president Gregg Haskell.

"The lubrication industry has grown significantly in recent years, and it will continue to do so as the public becomes more educated, aware, and accepting of the fact that these products really do enhance not only the comfort and safety but also the pleasure of sexual experiences," he says. "Lubricants are for people of all ages for a variety of reasons."
He adds that silicone lubes are among the hottest products: ID Millennium is the company's fastest-growing line. ID conducts market studies, surveys, focus groups, and direct consumer feedback sessions to improve business. "Silicone also has a number of benefits that range from being waterproof to never losing slip. Other products that are hot right now are those that offer additional sensations, like a tingle factor."
System JO is a division of United Consortium, a pharmaceutical company that has been in the over-the-counter drug industry for nearly 30 years. Five years ago, they decided to do a personal, high-end lubricant. That's when the adult industry called, and a separate division was born.

"The FDM market is still really struggling between this level of conservatism that they think they should have, and what the real world really needs. But it is changing," Levy says. "You go to stores like CVS, and you see that the sensual enhancement category is growing tremendously. The number of SKUs that were in these categories were a tenth of what it is now.... The mainstream market is realizing that they're losing a ton of money to the adult market, and all of a sudden when it comes to money, conservatism goes out the window."

And it's a trend that has crossed oceans. At MD Science Lab, vice president Ruth Chatfield has helped the Swiss Navy brand of products reach worldwide success in record time, with quality lubes featuring pumps and no-leak bottles that have been a hit with consumers. "The biggest thing in the lube business that I learned over the last two years is that lube is global. We've only been selling Swiss Navy lube for 16 months, and we've gone into 43 countries."

Swiss Navy plans to launch new products every month for the next year, including herbal products under the Swiss Navy Brand and a cream lubricant. Gay business coordinator Ellen Friedman adds that the best way to market to gay men is hitting them where they live, work, and play.

"Magazines, parties, sponsor events are all good ways to catch their eye," she says. "It is very important to the gay community to buy from a company that is gay-owned or gay-friendly, and in that order. We want to know where our money is going. This has been a long-standing issue, as we now know so many companies have gone that extra mile to make sure the gay community knows this.... Eighty-nine percent of the gay community on a global level makes their purchasing decisions based on gay print media ads; this is why you can pick up any gay magazine and see several ‘straight' Fortune 500 companies trying to capitalize on what is called the ‘gay' dollar."

No one knows that better than Eyal Feldman, who has quickly turned Boy Butter Lubes into an industry player. He recently introduced six new products, and will be introducing airless EZ-Pumps into his Boy Butter, You'll Never Know It Isn't Boy Butter, and Lucky Lubricant (for women) product lines.

"The consumer cycle starts with a gay man, then jumps to his best friend - a straight woman, who, in turn, introduces the product to her straight male boyfriend or husband," he says. "As a gay man, I sense what is out there, what is popular...they pretty much wear their hearts on their sleeves. It is not hard to find out what a gay man likes and wants."

Feldman adds that the proliferation of erectile dysfunction medications has given the industry a boost - and another entry into mainstream retail outlets. "It more than quadrupled the lube industry and made lubricants so mainstream because of their greater need due to the rise of increased sexual friction...I still see Viagra as playing the biggest role in shaping everything sexual, as men are now outlasting women in the bedroom."

Speaking of long-lasting, B. Cumming Corporation - the creator of Elbow Grease - was founded in August of 1979 and is the oldest independent lubricant manufacturer. The line of creams and gels in regular and warming formulas were recently joined by the Encounters line for women and Fusion Bodyglide, a silicone lube that is 99% pure pharmaceutical-grade silicone.

President David Mazer says that show appearances and sponsorships have been vital to success. The company adopted a new advertising strategy to help win over a younger generation of consumers that weren't as familiar with the product, including campaigns in magazines geared toward that demographic, and by giving away samples.

At ID, Haskell concurs that having a strong community presence is crucial. "There are a number of venues that make marketing within the gay marketplace a little easier than marketing to straight consumers," he says. "ID Lubricants has always been a primary sponsor of hundreds of pride events across the country, as well as a number of independent venues. Our efforts to reach the straight market are a little more complex."

Mazer notes that a challenge the industry is facing is the increasing cost of component materials used for packaging lubes. And the economy hasn't helped anyone. "We have stores we sell to that are on the interstates that were doing unbelievable figures on a weekly basis, and once gas hit $3.60 a gallon, their figures were cut by more than half. And I think that there's a great readjustment that has to occur, not only in the lubricant business, but for all of us, due to the economy."

At Sliquid - which began a push to market its line of lubes to women earlier this year - the introduction of Ride lube for men has attracted renewed interest from male consumers. Upcoming products include masturbation formula Ride Rub, and a crystal-clear shave gel.

"Advertising, marketing, and word of mouth are how we're trying to get out there. There are a lot of lubricants, so we really had to make a difference," says owner Dean Elliott. "Much like we did with Sliquid, which was coming out with a full line that was glycerin-free and paraben-free, for the men we're trying to create a difference with the fact that now we have something that's a very clean and thick and wonderful water-based lube, and we have a fantastic silicone-based one."

A push for education - to distributors, store owners, and consumers - has become another big issue. Levy notes that some companies erroneously try to convince people that silicone is silicone, and claims of better grades are just a marketing ploy. They ignore that there are more than 200 types of silicone, and a variety of possible formulations, he says. System JO set up a separate staff that goes from distributors to retail stores and educates the staff on an overall view of lubes.

"It's more difficult to be successful in the lube business today," notes LUBExxx president Volker Hoffmann. "The adult industry now realizes that they can't produce all kinds of stuff - movies, toys, lubes - because people like to buy good quality...and in order to have success in a special target group, you have to know everything about this target group. And this is very important to have success in the gay segment...it takes time, and you have to work hard and you have to understand the gay community."