Beecham Group Explained

The Beecham Group plc
Fate:Merged with SmithKline Beckman
Successor:SmithKline Beecham (later GlaxoSmithKline, now Haleon)
Foundation:1859
Defunct:1989
Location:London, United Kingdom
Industry:Pharmaceuticals
Products:Phenethicillin, Methicillin
Parent:GlaxoSmithKline

The Beecham Group plc was a British pharmaceutical company. It was once a constituent of the FTSE 100 Index. Founded by Thomas Beecham who opened the first factory in St Helens, Lancashire in 1859, Beecham focused on marketing the business by advertising in newspapers and using a network of wholesale agents in northern England and in London, rapidly building up the business.[1] In August 1859 he created the slogan for Beecham's Pills: "Worth a guinea a box", considered to be the world's first advertising slogan, which helped the business become a global brand.

Beecham, after having merged with American pharmaceutical company SmithKline Beckman to become SmithKline Beecham, merged with Glaxo Wellcome to become GlaxoSmithKline (GSK). GSK (and later, Haleon) still uses the Beechams brand name in the UK for its over-the-counter cold and flu relief products.[2]

Early history

Beecham began as the family business of Thomas Beecham (1820–1907). (Beecham would become the grandfather of music conductor Thomas Beecham, 1879–1961). As a boy, Beecham worked as a shepherd, selling herbal remedies as a sideline.

He later became a travelling salesman or peddler full time. His first product was Beecham's Pills, a laxative, in 1842.[3] Subsequent success enabled him to open a shop in Wigan in 1847.[4] Beecham opened its first factory in 1859, in St Helens, Lancashire, for the rapid production of medicines.[3] In August 1859, Beechams created a slogan for Beecham's Pills: "Beechams Pills: Worth a guinea a box", which is considered to be the world's first advertising slogan. First appearing in the St Helens Intelligencer, the Beechams adverts would appear in newspapers all over the world, helping the company become a global brand.[5] [6] The phrase was first said to be uttered by a satisfied lady purchaser from St Helens, the founder's home town.[6] [7] Under the founder's son, Sir Joseph Beecham, 1st Baronet (1848–1916), the business expanded, but remained a patent medicine company and engaged in little research.

Expansion and diversification

In 1924, Philip Ernest Hill (1873–1944),[8] [9] who made his money in real estate, acquired control of Beecham.[10] Under his leadership, the company bought up other companies for their various products and for their marketing infrastructure, acquiring the Lucozade glucose drink and Macleans toothpaste in 1938, and, at the same time, introducing the Ribena blackcurrant drink.[11] In 1938, it also bought the company selling Eno which had an extensive international presence.[10] [12] By purchasing the company manufacturing Brylcreem the following year, the company added hair products for men to its offerings.[3]

In 1943, Beecham decided to focus more on improving research and built Beecham Research Laboratories at Brockham Park, Surrey. In 1945, the company was renamed Beecham Group Ltd.[3] in 1953, Beecham acquired C.L. Bencard, which specialised in allergy vaccines.[3]

Beecham Research Laboratories opened a four acre site around October 1969 in Harlow in Essex, with 80 staff.[13] In 1997 this became the SmithKline Beecham New Frontiers Science Park.

Antibiotics

In 1959, Brockham Park became famous when Beecham scientists there discovered the penicillin nucleus, 6-APA (6-aminopenicillanic acid);[14] This discovery allowed Beecham, working in tandem with Bristol-Myers, to synthesize a number of new semisynthetic penicillins. Beecham marketed Broxil (phenethicillin), followed shortly by the more potent Celbenin (methicillin), which was active against Staphylococcus aureus. The group continued to focus on pharmaceutical development, producing further semi-synthetic penicillins. However, when Penbritin (ampicillin) came on the market in 1961, Beecham's facilities were soon inadequate for the worldwide demand for the drug. A 35acres complex at Worthing came on line in the early 1960s, to produce phenethicillin, followed by the ability to produce 6-APA, the base for semisynthetic penicillins.

The company continued to add products, and acquire other companies, through the 1970s and 1980s. In 1971, the S. E. Massengill Company was acquired. Beecham launched Amoxil (amoxicillin) in 1972, which went on to become one of the most widely prescribed antibiotics.[3]

In 1973, Aquafresh toothpaste was launched, and in 1977, the Sucrets brand was acquired. Augmentin, an antibiotic used to treat an array of bacterial infections, was introduced in 1981.[3] J.B. Williams Co., Inc. was acquired from Nabisco in 1982[15] for US$100 million (approximately £59 million),[16] which included brands Aqua Velva, Geritol, and Sominex − the U.S. formulation − along with others.[17]

Later history

In 1986, the Beecham Group sold its numerous soft drink brands including Tango, Top Deck, Corona, and Quosh, as well as the UK franchises for Pepsi and 7 Up, to Britvic.[18] The same year, Beecham acquired Norcliff Thayer from Revlon.

As the turn of the century approached, there were more significant mergers. In 1989, The Beecham Group plc and SmithKline Beckman merged to form SmithKline Beecham plc.[3] [19] In 2000, SmithKline Beecham and GlaxoWellcome merged to form GlaxoSmithKline.[20]

A history of the company, Beechams, 1848–2000: From Pills to Pharmaceuticals, written by Thomas Anthony Buchanan Corley, was published in 2011.[21]

Products

Pharmaceuticals

See also

Notes and References

  1. News: The man behind the eponymous Beechams Powders gets blue plaque . 8 November 2023 . The Business Magazine.
  2. Web site: Get powerful relief from cold & flu symptoms with Beechams. 7 May 2012. beechams.co.uk.
  3. Web site: Our history – GSK. 19 November 2016.
  4. http://www.oxforddnb.com/view/article/30669?docPos=1 Thomas Beecham at Oxford Dictionary of National Biography
  5. News: Anniversary of the first ad slogan . The Herald . 5 August 2019.
  6. News: When Beecham put St Helens on the map . 5 November 2023 . St Helen's Star.
  7. Book: Ratcliffe . Susan . Oxford Treasury of Sayings and Quotations . Oxford University Press. 2011 . 478.
  8. Web site: A capsulated history of Beecham - Let's Look Again . 24 November 2017 .
  9. Web site: Philip E. Hill .
  10. Book: Tedlow. Richard S.. Jones. Geoffrey G.. The Rise and Fall of Mass Marketing (RLE Marketing) Volume 25 of Routledge Library Editions: Marketing. 2014. Routledge. 9781317663010. 110–111.
  11. http://www.hatads.org.uk/collections/corporate-marketing/48/SmithKline-Beecham "SmithKline Beecham: History"
  12. Book: Mira Wilkins. Wilkins. Mira. The history of foreign investment in the United States, 1914-1945. registration. 2004. Harvard University Press. Cambridge, Massachusetts. 9780674045187.
  13. Herts and Essex Observer Friday 15 August 1969, page 12
  14. Synthesis of Penicillin: 6-Aminopenicillanic Acid in Penicillin Fermentations. Batchelor. F.R. . Doyle . F. P. . Naylor. J. H. C.. G. N. . Rolinson. Nature. 183. 4656. 257–8. 13622762. 1959. 10.1038/183257b0. 1959Natur.183..257B. 4268993.
  15. News: 1982-09-14 . Nabisco selling Williams subsidiary . subscription . . . 10A.
  16. News: Northedge . Richard . 1982-09-14 . Beecham puts up £59m cash for U.S. group . . . 39580 . 17.
  17. News: Moskowitz . Mlton . 1982-07-06 . Dissolving A Poor Team: Nabisco Looks To Sell . subscription . . . 105 . 32989 . 30.
  18. Web site: Carbonated drinks: a report on the supply by manufacturers of carbonated drinks in the United Kingdom, Chapter 8 para 8.51 . 24 July 2008 . https://web.archive.org/web/20080729053335/http://www.competition-commission.org.uk/rep_pub/reports/1991/fulltext/309c8.pdf . 29 July 2008 . dead .
  19. News: Profile: SmithKline Beecham. BBC. 18 December 2000.
  20. News: The Glaxo SmithKline merger. BBC News. 17 January 2000.
  21. Book: Corley, T. A. B. . Beechams, 1848-2000: from Pills to Pharmaceuticals . 2011-03-29 . Crucible Books . 978-1-905472-14-7 . Lancaster . English.