Method founder tackles over-the-counter drugs with latest startup

The medicine department may change in the coming months. A slew of new brands have jumped into the over-the-counter industry, looking at how to make meds with "cleaner" ingredients: free of dyes, parabens, talc, and artificial colors, viz.

The latest brand to take on the regulated world of over-the-counter drugs is Welly. Started by the founder of Method cleaning products and Olly supplements, Eric Ryan, Welly is already getting into the space, selling colorful bandages and first aid kits. But this month they've launched a range of 14 everyday cold/flu, pain relief, digestion and allergy medications to add to that collection.

Eric Ryan, a seasoned entrepreneur, acknowledges that this startup may have a few more hurdles than his previous business: the OTC industry is heavily regulated (and for understandable reason), manufacturers are less inclined to work with startups and innovation is, therefore, a bit slower, he says. Additionally, given its efforts to make Method one of the most environmentally friendly laundry detergents on the market, Welly's packaging is plastic, largely due to regulations prohibiting them from using recycled materials, which is not ideal.

"It's definitely not an easy space to innovate. But when I walk down the medicine aisle, I can see there's a need for change," he says from his office in the north from California. "Everything I start, I basically have the idea of ​​a decade lingering in me, and this one was no different."

But three years ago, just before the pandemic hit, Ryan and his co-founder, Doug Stukenborg, put the idea into action.

Welly, he hopes, will change the usual layout of the medicine aisle. Grouped together, the brand's offerings deviate from the typical setup: by health condition, not by brand. Ryan hopes that by bringing all the products together, consumers can simply reach what they need without having to wade through countless labels. In addition, the Welly range is a more polished collection: the essentials, one might say. It is also to facilitate the selection process for consumers.

"Personally, I found the medicine aisle difficult to shop for. There are way too many choices. Every product is segmented into a million options, and you already don't feel good when you're shopping. shopping here. So with this expansion into Welly Remedies, we want to be the one-stop-shop for healthcare by offering comprehensive, fun, and easy-to-buy healthcare solutions.”

Since Ryan started Olly, a supplement company, there's also a bit of wellness mixed in with OTC. Some of the products are intended to boost immunity or relieve stress; but the bulk of the offering is made up of proven drugs, which were then reviewed by a board of health practitioners consulted by the company.

The overall message from Welly and similar brands is that everyday medicines can be made with fewer added ingredients, and therefore be safer for long-term consumption. So why aren't traditional brands taking this approach?

Ryan says it's all about cost: "Unfortunately it's cheaper to do it like we've done so far."

This puts Welly, and similar "clean" drug brands, in a more expensive category. "However, I want people to know that we're not doing this for profit," he clarifies of their premium pricing.

Since Welly is targeting Millennials who are more interested in reducing unnecessary chemicals in their lifestyle and well-being, Ryan is certain that the marginal price difference will not deter customers.

Also, what about additional competition from similar businesses? “It usually takes the efforts of a few companies to change a category. So I'm not too worried about that. We've seen this happen with Method as well. Activity in the category is actually a sign that it's time for a change."

As for durability, Ryan is trying to see what alternatives might work: the glass was too heavy, he notes. And with aluminum, there were safety and manufacturing issues, he says. To use post-consumer recycled plastics, a certain level of recycling infrastructure is required, as well as regulations to be followed. But he's not giving up: "As we prove this is a viable business, making packaging more sustainable is most definitely one of our top priorities as a Certified B company."