VOL. XCIV, NO. 247
★ MOAT STOCKS & COMPETITIVE ADVANTAGES ★
PRICE: 5 CENTS
Thursday, December 25, 2025
Kenvue Inc.
KVUE · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Kenvue is a global consumer health company operating three reported segments: Self Care (OTC medicines), Skin Health & Beauty (skin/hair care), and Essential Health (oral, baby, and other personal care). The moat is primarily demand-side -- long-standing, trusted brands supported by science/clinical work and healthcare-professional recommendation -- driving repeat purchase and shelf presence. Kenvue also benefits from scale in manufacturing, marketing, and distribution, plus quality/compliance systems that matter for regulated OTC categories. The key counterweight is intense competition (including private label and large CPG peers), with faster trend cycles and more fragmented competition in Skin Health & Beauty. In November 2025, Kenvue and Kimberly-Clark announced a merger agreement expected to close in the second half of 2026, subject to approvals. (Merger announcement: https://investors.kenvue.com/financial-news/news-details/2025/Kimberly-Clark-to-Acquire-Kenvue-Creating-a-32-Billion-Global-Health-and-Wellness-Leader/default.aspx)
Primary segment
Self Care
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
3 segments · 5 tags
Updated 2025-12-25
Segments
Self Care
OTC self-care consumer health products (pain care, cough/cold/allergy, digestive health, smoking cessation, eye care)
Revenue
42.3%
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Skin Health and Beauty
Mass-market skin and hair care (dermatology-led personal care) consumer health products
Revenue
27.4%
Structure
Competitive
Pricing
weak
Share
—
Peers
Essential Health
Everyday personal care essentials (oral care, baby care, wound care, women's health)
Revenue
30.3%
Structure
Competitive
Pricing
moderate
Share
—
Peers
Moat Claims
Self Care
OTC self-care consumer health products (pain care, cough/cold/allergy, digestive health, smoking cessation, eye care)
Reported segment includes Pain Care; Cough, Cold, and Allergy; and Other Self Care (Digestive Health, Smoking Cessation, Eye Care). Revenue/operating-profit shares derived from FY2024 segment net sales and segment adjusted operating income in the FY2024 10-K. Source: https://www.sec.gov/Archives/edgar/data/1944048/000194404825000033/kvue-20241229.htm
Brand Trust
Demand
Brand Trust
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 2 evidence
Heritage OTC brands (e.g., Tylenol, Motrin, Zyrtec) reinforced by science/healthcare-professional endorsement support consumer trust and repeat purchase.
Erosion risks
- Generic OTC and private-label substitution
- Brand damage from safety/quality incidents or negative publicity
- Regulatory changes impacting OTC labeling/claims
Leading indicators
- Category share trends in Pain Care and Allergy Care
- Brand consideration/NPS and repeat-purchase metrics
- Price gaps vs private label and elasticity in promo periods
Counterarguments
- OTC consumers can switch quickly when price promotions favor rivals or store brands
- Large competitors also have trusted brands and can match marketing spend
Scale Economies Unit Cost
Supply
Scale Economies Unit Cost
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 2 evidence
Scale manufacturing and global supply agreements support unit-cost leverage and availability for high-volume OTC categories.
Erosion risks
- Commodity/input cost inflation outpacing price realization
- Supply chain disruptions or single-source inputs for some products
- Competitors achieving similar scale efficiencies
Leading indicators
- Gross margin and cost-of-goods inflation vs pricing
- Service levels (fill rates) and out-of-stock frequency
- Savings delivered from supply chain optimization programs
Counterarguments
- Scale advantages can be competed away because multiple global CPG peers also operate at large scale
- Retailers can pressure prices, limiting the ability to retain cost savings
Compliance Advantage
Legal
Compliance Advantage
Strength: 3/5 · Durability: medium · Confidence: 4/5 · 2 evidence
Quality systems and regulatory inspection readiness create friction for smaller entrants in regulated OTC categories; failures can destroy trust quickly.
Erosion risks
- Warning letters/recalls that undermine brand trust
- Regulatory changes that raise costs for all incumbents equally
- Quality issues at third-party manufacturing or logistics partners
Leading indicators
- Recall rate and severity; FDA inspection outcomes
- Product complaint trends and batch deviation metrics
- Audit findings for critical suppliers and CMOs
Counterarguments
- Large global peers generally have comparable regulatory/compliance capabilities
- Compliance is table-stakes rather than a unique differentiator
Skin Health and Beauty
Mass-market skin and hair care (dermatology-led personal care) consumer health products
Reported segment includes Face and Body Care; and Hair, Sun, and Other. Revenue/operating-profit shares derived from FY2024 segment net sales and segment adjusted operating income in the FY2024 10-K. Source: https://www.sec.gov/Archives/edgar/data/1944048/000194404825000033/kvue-20241229.htm
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Brands positioned around dermatological/science-backed efficacy (e.g., Neutrogena, Aveeno) support willingness to pay vs unbranded alternatives.
Erosion risks
- Fast-changing beauty trends and influencer-driven niche brands
- Private label expansion and retailer shelf-space pressure
- Execution challenges (in-stock, merchandising) eroding brand momentum
Leading indicators
- Category growth vs Kenvue volume trend and shelf share
- Digital share of voice and review sentiment for key brands
- Promo intensity and net price realization vs competitors
Counterarguments
- Beauty/personal care is fragmented and brand loyalty can be weaker than in OTC medicines
- Premium brands and DTC challengers can out-innovate incumbents
Scope Economies
Supply
Scope Economies
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 2 evidence
Shared marketing, analytics, and R&D capabilities across a broad brand portfolio can lower per-brand overhead and accelerate launches.
Erosion risks
- Centralization reduces local market responsiveness
- Marketing efficiency declines as channels fragment
- R&D productivity fails to translate into winning launches
Leading indicators
- Advertising efficiency (ROAS) and brand support spend productivity
- New product launch success rate and time-to-market
- Overhead as a percent of sales over time
Counterarguments
- Scale can be outweighed by agility of smaller, trend-driven brands
- Big CPG peers also have similar shared-services advantages
Distribution Control
Supply
Distribution Control
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Large retail relationships and an extensive distribution footprint help maintain shelf presence and service levels across channels.
Erosion risks
- Retail trade concentration increases bargaining power vs brands
- Shift to DTC/e-commerce reduces advantage of physical distribution
- Third-party logistics disruptions
Leading indicators
- Top-10 customer concentration and terms (trade spend as % of sales)
- E-commerce mix and fulfillment performance
- On-shelf availability and retailer scorecards
Counterarguments
- Shelf space is contested and can be bought via promotions/trade spend
- Retailers can prioritize their own private label regardless of relationship
Essential Health
Everyday personal care essentials (oral care, baby care, wound care, women's health)
Reported segment includes Oral Care; Baby Care; and Other Essential Health (Women's Health, Wound Care, and Other). Revenue/operating-profit shares derived from FY2024 segment net sales and segment adjusted operating income in the FY2024 10-K. Source: https://www.sec.gov/Archives/edgar/data/1944048/000194404825000033/kvue-20241229.htm
Habit Default
Demand
Habit Default
Strength: 4/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Many products are embedded in daily routines (oral care, baby care, menstrual care), supporting repeat purchase and reducing active re-evaluation each trip.
Erosion risks
- Private label capturing repeat purchase through price advantage
- Switching due to promotions or retailer loyalty programs
- Brand dilution from line extensions that confuse positioning
Leading indicators
- Repeat-purchase rate and household penetration for core brands
- Price/promo elasticity and private-label share in key categories
- Subscription and auto-replenishment adoption (where applicable)
Counterarguments
- Habit can be broken when consumers trade down in inflationary periods
- Retailers can reset planograms and promote substitutes quickly
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Household brands (e.g., Listerine, Johnson's, Band-Aid) carry perceived reliability in family and personal care categories.
Erosion risks
- Negative publicity affecting brand reputation
- Product quality issues causing long-lasting trust loss
- Category commoditization
Leading indicators
- Brand sentiment/review scores in oral and baby care
- Recall/complaint rates for family-care products
- Net revenue retention via repeat purchase/penetration
Counterarguments
- Trust is not exclusive -- competitors also own strong family-care brands
- In commoditized subcategories, trust has limited pricing impact
Distribution Control
Supply
Distribution Control
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Wide distribution and retailer partnerships support shelf presence across oral care, baby, and wound care categories.
Erosion risks
- Customer concentration and bargaining power (retail trade concentration)
- Retailer push toward own-brand alternatives
- Logistics disruptions impacting on-shelf availability
Leading indicators
- Top-10 customer share of sales and changes in trade terms
- On-time-in-full delivery and on-shelf availability metrics
- Channel mix shift toward e-commerce/DTC
Counterarguments
- Distribution scale is shared by most major CPG peers
- Retailers can allocate shelf space based on economics, not history
Evidence
Built on more than a century of heritage and trusted by generations
Supports durability of brand equity in consumer health categories.
backed by science and recommended by healthcare professionals
Links brand positioning to credibility and reinforcement via healthcare professionals.
benefit from economies of scale and global supply chain agreements
Explicitly claims scale benefits and global procurement leverage.
in-house manufacturing footprint delivered over 60% of our sales volume
Indicates meaningful internal capacity (with external partners) that can support service levels and cost optimization.
conduct regular quality audits of our supplier base and their facilities
Shows formalized supplier quality controls that are harder to replicate at small scale.
Showing 5 of 12 sources.
Risks & Indicators
Erosion risks
- Generic OTC and private-label substitution
- Brand damage from safety/quality incidents or negative publicity
- Regulatory changes impacting OTC labeling/claims
- Commodity/input cost inflation outpacing price realization
- Supply chain disruptions or single-source inputs for some products
- Competitors achieving similar scale efficiencies
Leading indicators
- Category share trends in Pain Care and Allergy Care
- Brand consideration/NPS and repeat-purchase metrics
- Price gaps vs private label and elasticity in promo periods
- Gross margin and cost-of-goods inflation vs pricing
- Service levels (fill rates) and out-of-stock frequency
- Savings delivered from supply chain optimization programs
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
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