April 18, 2017, to April 25, 2017
Italian cosmetics brand and retailer Kiko Milano launched its business in Brazil by opening two stores in Sao Paulo. According to the company, it plans to open five more new stores in the country’s capital by the end of 2017. Kiko Milano plans to invest €5 million in the opening of the seven stores in the city, according to Isabel de Almeida, the company’s brand director in Brazil. Legal problems related to importation process forced the company to delay its launch in Brazil, which was previously planned for 2016.
Euromonitor International said the market for essential oils in beauty and personal care products is forecast to expand at a CAGR of 5 percent in Asia-Pacific and 6 percent in the Middle East in 2015 to 2020. According to the market research firm, consumer demand for environment-friendly and healthy lifestyles is helping drive growth in the ingredients market. To meet the increasing demand, market leaders, including Firmenich, Givaudan, and Symrise, are expanding their lineups of natural ingredients.
Johnson & Johnson said sales increased 1.6 percent to $17.8 billion in the first quarter of 2017, compared with the same quarter in 2016. Operational sales results rose 2.0 percent, with negative impact of currency fluctuations at 0.4 percent, the company said. International sales increased 2.8 percent, with operational growth at 3.6 percent and negative currency impact of 0.8 percent. Global sales rose 1.2 percent, with domestic sales declining 0.7 percent and international sales rising 3.4 percent, the company said.
April 11, 2017, to April 18, 2017
Like many big food companies, Unilever is struggling to keep with the times, and with evolving consumer tastes, preferences and health concerns. The latest manifestation of the strategic rethinking, revamping, cost-cutting process – spurred by the failed Kraft Heinz takeover bid in February – is its decision to sell its margarine and spreads business for a price upwards of $7.5 billion. In addition to cost cutting, the Anglo-Dutch multinational hopes to buttress returns by implementing a dividend boost and a share buyback. Unilever’s margarine and spread business includes familiar brands Country Crock and I Can’t Believe It’s not Butter. Other companies that have recently announced plans to divest or acquire businesses include Reckitt Benckiser, Danone SA, ConAgra Brands, Dr Pepper Snapple Group Inc., and PepsiCo Inc.
Dove launched the Baby Dove range of baby personal care products in the US in April 2017. According to the company, the range comes in two lines: Sensitive Moisture and Rich Moisture. Sensitive Moisture includes hand and face wipes, body lotion, and body wash. In addition to wipes, body lotion, and body wash, Rich Moisture also comes with bar soap and shampoo.
Revlon, Inc., said it has appointed Christopher Peterson as chief operating officer for operations. Effective immediately, Peterson’s appointment includes responsibilities for managing the beauty company’s global supply chain, finance, and IT operations. Prior to joining the company, Peterson served in various senior management positions at Ralph Lauren Corporation. He will be reporting to Revlon president and CEO Fabian Garcia.
April 04, 2017, to April 11, 2017
SC Johnson Greece was recognized by the Great Place to Work® Institute as among the Best Workplaces for 2017, ranking number one in Commitment to Workplace Excellence for companies with 29 to 40 employees. Last year, SC Johnson landed in the 20th spot in the Institute's 25 World's Best Multinational Workplaces list. The Great Place to Work® Institute determines the ranking based on results of employee opinion survey and other information about company culture, program and policies. Other SC Johnson teams that made it to this year's top list were Venezuela, France, Germany and Poland. Fisk Johnson, Chaiman and CEO of SJ Johnson, congratulated the Greece team for winning the top award and noted that the team "has really embraced the company values with an environment of respect, integrity and trust".
A new report from market researcher IRI lists the consumer packaged goods launches in 2016 that proved to be the big winners out of thousands. The analysis found that eight of ten of the top-ranking products came from small and medium-size manufacturers. They accounted for 64 percent of IRI’s Pacesetter dollar sales. The 200 bestsellers accounted for $5.8 billion. Brand leaders tended to stick to three key principles of innovation – namely, prevention, personalization and “pizzazz.” Quick summary: top ten food and beverage brands: DairyPure, Dunkin' Donuts K-Cups, Not Your Father's Root Beer; non-food brands Flonase, Gillette Fusion ProShield, Garnier SkinActive; and C-store brands: DairyPure, Red Bull Summer Edition, and Quest Bar.
Costco has for the most part downplayed the e-commerce side of its business while emphasizing store traffic, impulse buying, and a “treasure hunt” atmosphere of constant churning of new products. It’s a strategy that continues to be profitable. But investors and analysts think it’s time the bulk-selling giant adapts to modern times. The logistical technology is certainly available, even for Costco-size shipments. A Costco spokesman says the company has been slow on the uptake “on purpose,” but acknowledges “there are things we can do or should be doing.” Now it may be getting tougher: carriers like UPS and FedEx Corp. are beginning to charge based on package size as well as weight.
March 25, 2017, to April 04, 2017
The unexpected and deeply unwelcome Kraft Heinz takeover bid shook Unilever* to its core. Analysts and commentators expected 3G to use Kraft Heinz as a vehicle for further acquisitions in the food space as it pushed to aggressively cut costs across larger businesses, but Unilever was thought to be above the fray. In a tacit admission of past failure, Unilever convened a hurried review of ways to boost its valuation and in coming days or weeks we’ll see what this holds. Meanwhile, we have clarified our own thinking about how Unilever should move forward as a vibrant independent company that quickly surfaces its underlying value. You can read a summary of our analysis
here and
contact us if you want further details.
*Disclosure: Unilever is a client of ours, as are most of the companies we list as acquisition targets. Also, our newsletters are read by recipients at all companies mentioned in this piece.
French beauty brand Chanel launched a marketing campaign on social media site Instagram for its Coco Mademoiselle brand of fragrances. As part of the campaign, Chanel's official Instagram account shared an image with three different ad photographs. Followers need to click on the tags to unveil the full images and see the different aspects of the brand.
Shiseido Company, Limited, has started deploying industrial robots to the assembly lines of makeup products at its factory in Kakegawa, Japan. Currently on a pilot-program basis, the deployment of robots started in March 2017 and features teams involving a human worker and two humanoid robots each. According to the company, the humanoid robots will focus on procedures that are hard to automate with existing machines and industrial robots, while their human partner will take charge of inspecting minor defects and assuring quality.
March 18, 2017, to March 25, 2017
Unilever said it plans to sell a number of brands worth a total of at least ₤6 billion. Part of the company's efforts to placate shareholders frustrated with the company's rejection of Kraft Heinz's $143-billion takeover bid, the proposed sale will be followed by a range of cost-cutting and restructuring measures. While company CEO Paul Polman does not want to split the company into its food and personal care businesses, he is seen willing to get rid of under-performing brands.
Avon Products, Inc., said Jeff Benjamin, Senior Vice President, General Counsel, and Chief Ethics & Compliance Officer, is retiring from the company. Benjamin joined Avon in 2012, following a 40-year career, 37 of which were spent at Novartis. He will remain with the company until his successor is named.
PT Unilever Indonesia reported net profit rose 9.2 percent to Rp 6.39 trillion, or $479.7 million, in 2016, compared with the previous year. Net sales jumped almost 10 percent to Rp 40.05 trillion from the previous year's Rp 36.48 trillion. Cost of goods sold increased almost 10 percent year on year to Rp 19.59 trillion.
March 04, 2017, to March 18, 2017
Procter & Gamble’s Olay is rolling out a new version of its mobile app that features expanded artificial intelligence capability. The previous Olay Skin Advisor app relied on a selfie and “smart skin analysis” to produce personalized product recommendations. The latest release uses “pixel-tagging capabilities” that compares the selfie with a databank of hundreds of thousands of photographs of women to help women diagnose their “most troublesome skin problems.” Olay were motivated by research that showed up to 33 percent of women are “overwhelmed” by the choice of available products. Since the app was launched last year it has had 1 million “visits.” Other brands, such as Benefit, with its Brow Genie, and Cover Girl, are using AI in their apps to engage consumers digitally, while others are pushing into physical stores – Make Up For Ever, for example, opened in February a global flagship store in New York that offers Go Pro Makeup small tutorials led by professionals, covering makeup application techniques.
According to AXE, men are more interested than ever in hair but 65 percent never style or do so only on special occasions. While men say they feel more confident when they do style, men perceive styling as too complicated and don’t want to be judged for “trying too hard.” Seeing an opportunity, the brand enlisted 30 top male influencers from a range of fields – sports, music, epicurean, gaming, technology, and comedy – to talk about why and how they style. The contributors also emphasize why styling is important to their success. The ‘Instagroom’ videos will support a
digital content hub featuring product recommendations, styling tips, video content and personalized styling.
Organic and natural products company Hain Celestial has moved several key executives into new positions that report directly to CEO Irwin D. Simon. Hain Celestial North America CEO John Carroll is the new EVP-Global Brands and New Business Ventures. He will oversee global branding, new ventures, M&A, and the Project Terra cost savings and divestiture program. Gary W. Tickle has been named CEO of Hain Celestial North America. And Beena Goldenberg, CEO of the company’s Canadian unit, will head up the Cultivate Ventures platform dedicated to investing in lifestyle brands, smaller portfolio brands and concepts, and incubator opportunities.
February 25, 2017, to March 04, 2017
Herbal toothpastes account for more than 20 percent of India's oral care market, making it the fastest segment, according to Nielsen. Data from the market research firm showed herbal brands from Dabur, Colgate, and Patanjali grabbed almost 350 basis points in share of the Rs 7,000 crore oral care market. Market share of herbal toothpastes is expected to expand further as rivals Colgate and Hindustan Unilever have introduced herbal toothpastes to deal with competition from Patanjali.
Beauty retailer The Body Shop launched the Almond Milk & Honey range of body-care products in Malaysia. Featuring Community Trade-certified almond oil from Spain's Alicante region and honey from Ethiopia's Sheka rainforest, the products include Soothing & Caring Shower Cream, Cleansing Bar, and Gently Exfoliating Cream Body Scrub. TBS highlights simple body care steps: shower, scrub, and moisturize.
Natura Cosmeticos SA reported net revenue declined 1.6 percent in the fourth quarter of 2016, compared with the same quarter in the previous year. According to the company, revenue performance was adversely affected by a higher effective tax rate in Brazil and smaller sales volume. Also, affecting the company’s earnings was the depreciation of the Brazilian real against currencies used in international operations. During the quarter, the consolidated EBITDA rose from 19.4 percent in 2015 to 20.1 percent in 2016.
February 18, 2017, to February 25, 2017
Men’s haircare brand Just For Men launched the Control GX shampoo for men. According to the company, the shampoo is designed to gradually reduce gray hair without the need for any “extra steps” in a man’s existing personal care routine. Men can use the product for two weeks to reduce the degree of gray, then use it several times a week in between using their usual shampoo. It features the Control GX formula developed by the company’s in-house team of researchers.
SkinCeuticals announced the launch of H.A. Intensifier, a corrective hyaluronic acid serum designed to deal with signs of aging caused by the decline and degradation of natural hyaluronic acid in skin. H.A. Intensifier comes with 10 percent concentration of Proxylane, a proprietary ingredient, created to help support hyaluronic acid levels and improve skin firmness by maintaining the strength of the skin’s matrix. It also comes with 2.0 percent Dipotassium Glycyrrhizate and 0.2 percent Purple Rice Extract, the company says help maintain the skin’s hyaluronic acid content.
South Korean cosmetics brands are speeding up their expansion efforts in Middle Eastern markets. LG Household & Health Care Ltd.’s The Face Shop brand said it will launch its business operations in Qatar and Kuwait in 2017. AmorePacific Corp. partnered with Kuwait-based retailer Alshaya Group to launch its first Etude House store in Dubai by the second half of 2017. China’s adoption of hostile measures against Korean beauty brands, following South Korea’s deployment of a U.S. missile defense system in the country, is one of factors driving companies to seek other markets.
February 11, 2017, to February 18, 2017
Sephora launched an email marketing campaign that suggests skincare products based on the results of a designed-for-mobile quiz. Created to help the beauty retailer gather consumer data, the email campaign encourages consumers to answer questions about their skin. Using a mobile device or desktop computer, users who have received an email message from the company can access the quiz to look at products recommended by experts.
Beauty brand L’Oreal plans to increase its spending on digital marketing, according to the company’s chief digital officer, Lubomira Rochet. Digital spending accounted for 30 percent of the company’s total media spending in the first half of 2016 and is forecast to rise in 2017, Rochet said. Rochet also said that the company is adopting a marketing strategy based on the idea that consumers are influenced by a range of ways.
Whitening toothpastes do not work, according to the consumer organization OCU in Spain. Results of tests conducted by the group on 13 whitening toothpastes revealed five brands whitened teeth by one or two tones, which was not noticeable at all. According to the organization, it is not worth spending money on those toothpastes that claim to whiten teeth. Also, test results showed the brands that whitened teeth slightly are Binaca Blanqueante, Auchan Blancura, and Fluocaril Blanqueador.
January 28, 2017, to February 11, 2017
Dr. Wolff is now selling its Alpecin line of shampoos in China. According to the company, it entered the China market in April 2016 to help ease Alpecin shortages in Germany and provide Chinese consumers with convenient and safe channel for buying the anti-hairloss shampoos. Alpecin products are available in more than 2,000 Watsons stores across the country, as well as on e-commerce site Tmall.
China's middle class, composed of more than 100 million families, is driving growth in the country's beauty care market, according to Kantar Worldpanel. Data from the market research firm revealed middle-class consumers have more confidence about the future and, hence, are more likely to buy more and purchase big brands. They use the internet to find product information and are more ready to try new products and adopt new trends. Also, middle-class consumers accounted for more than half of the incremental sales in various categories of the beauty market.
Men's grooming brand Gillette said it has agreed to sponsor the League Of Legends Intel Extreme Masters World Championship, an eSports event, in Katowice, Poland. Also, the company recruited electronic sports player xPeke as its latest global brand ambassador. During the event, Gillette will offer players and fans the chance to customize their Gillette razor handles, using 3D printing at its RZR MKR Design Studio.