Beauty Packaging Breaking News

Premium Price Fragrance and Makeup Sales Thriving

Melissa Meisel — Tue, 07 Jul 2009 08:34:00 -0500

While overall sales of prestige fragrances sold in U.S. department stores have declined, premium price fragrance sales are up significantly, according to a new report from The NPD Group, Inc., a market research company in Port Washington, NY. Premium fragrance products priced at $100 and above, represented approximately 9% of total fragrance juice sales in the first quarter of 2009, and generated a 10% increase to $26 million.

Makeup products priced at the premium level ($50 and above) have also seen strong growth in the first quarter, versus three years ago. Premium price face makeup, which represented 6% of total face makeup sales in the first quarter of 2009, saw dollar volume almost double since 2006, from $14.1 million to $27.1 million, a 3% increase from 2008. Premium-priced eye products (priced over $35) were especially strong. The launch of MAC’s Hello Kitty Eye Shadow X 4, priced at $38, was a key driver of the growth in premium for eye, reports NPD.

“The growth in premium fragrance and makeup, while smaller segments compared to premium skin care, are driven by the fact that these products are still perceived as more niche and unique to the prestige arena,” said Karen Grant, senior global industry analyst and vice president of beauty.

Premium price skin care face products (priced over $70) have, up until now, been believed to be somewhat recession-proof. Recently, however, premium price skin care face product sales declined by 6% in the fourth quarter of 2008. That was the first time premium price skin care face products performed worse than products priced below $70, which were down only 3% in the fourth quarter of 2008. Sales of premium price face products fell 7% in the first quarter of 2009, while sales of face products priced below $70 dropped 5%, says NPD.

“The trends in premium price beauty show women are becoming increasingly selective in where they choose to invest their limited resources. While skincare is the category most women will opt to spend on, if there are viable options at a lower price touting benefits perceived to be comparable with premium offerings, then women are more apt to try these products, especially in these difficult times,” said Ms. Grant.

Grand Brands Celebrates Overseas Lander Launch

Melissa Meisel — Tue, 07 Jul 2009 07:38:00 -0500

Lander, a newly re-launched personal care line from Grand Brands, LLC, is set to expand. According to the company, due to the success of its initial launch, including successful overseas sales, it will be launching a second phase of the brand name products. The phase includes the brand's new adult shampoo and conditioner, kid's dental rinse and new additions to Lander adult oral care and skin care lines.

"We're particularly pleased with the success over the last three months since we reintroduced the Lander brand product lines," says Grand Brands President Sue Hunt. "It's received a very warm reception both domestically and abroad. The first container of Landerwas just shipped out to the Philippines and Lander is also now being carried on the shelves of major retailers in Puerto Rico. We're excited to extend the brand line to include these new product offerings."

The Lander brand has been on American store shelves since 1920 and is known for its value and quality. These well-established, but newly re-launched products, which are all manufactured in the U.S., are available in major drug and value-focused retail chains across North America.

Crabtree & Evelyn Files for Chapter 11

Melissa Meisel — Wed, 01 Jul 2009 09:20:00 -0500

Well-known for its aromatic salves and sprays, Crabtree & Evelyn, Ltd. has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. Other members of the Crabtree & Evelyn Group (including affiliates in Canada, the European Union, Hong Kong, Malaysia, Singapore and Australia) have not filed for protection, says the brand.

According to the company, it will pursue a plan of reorganization to capitalize on opportunities for future growth and profitability, including evaluation of its real estate portfolio, strengthening brand strategies and restructuring of its financial obligations.

Day-to-day operations and business will continue to operate through the company's wholesale, e-commerce (www.crabtree-evelyn.com) and retail channels. It also intends to honor customer gift cards, returns and its loyalty program.

Crabtree & Evelyn currently services approximately 3,000 wholesale accounts and operates 125 retail stores and an e-commerce site at www.crabtree-evelyn.com. Other distribution channels include hotel amenities.

"The Crabtree & Evelyn brand remains strong," said Stephen Bestwick, acting president of Crabtree & Evelyn, Ltd. "We are confident that Chapter 11 gives us the opportunity to restructure the company with a business model that will be sustainable for long-term growth. We look forward to continuing our relationships with customers and vendors to help shape that growth."

Kirby of Ulta Named Enterpreneur of the Year

Melissa Meisel — Tue, 30 Jun 2009 08:57:00 -0500

Today's beauty outposts such as Ulta, Sally Beauty and Sephora are the hubs of the personal care market – and it shows in the numbers. As a result, Lyn Kirby, president and chief executive officer of Ulta, was just named the Ernst & Young Entrepreneur of the Year 2009 in the consumer products category for the Midwest region.

According to Ernst & Young, the award recognizes outstanding entrepreneurs who are building and leading dynamic, growing businesses. Ms. Kirby was selected by an independent panel of judges, and the award was presented at a gala event at the Hilton Chicago Hotel.

“Ulta has been on an exciting journey evolving from a discount beauty retailer more than 15 years ago to a category leader – providing women with all her beauty needs from mass to prestige – in one convenient and entertaining store,” stated Ms. Kirby. “I am extraordinarily proud of our dedicated employees and deeply honored to accept the Ernst & Young Entrepreneur of the Year award. This recognition is a true testament to Ulta’s exceptional growth and the strength and success of our talented team.”

As a Midwest award winner, Ms. Kirby is now eligible for consideration for the Ernst & Young national program. Award winners in several national categories, as well as the overall national winner, will be announced at the annual awards gala in Palm Springs, CA on Nov. 14.

Kao to Expand Beauty Production in Europe

Melissa Meisel — Thu, 25 Jun 2009 11:05:00 -0500

It’s a case of hair today, not gone tomorrow. Kao Corporation, through its subsidiary Kao Corporation GmbH, has entered into agreements to acquire a plant for premium hair care products in Germany to enhance its beauty care business base in Europe. Kao Corporation GmbH plans to commence production at the plant starting on July 1.

Kao Corporation GmbH will acquire plant-related assets (building and production facilities) of Reichardt International AG (Head office: Darmstadt, Germany), which produces premium hair care products, such as hair colors. Reichardt International was a major consignee for Kao's main subsidiaries: KPSS-Kao Professional Salon Services GmbH (Head office: Darmstadt, Germany), which markets hair care products for the salon business, focusing on Europe; and Kao Brands Europe Limited (Head office: London, UK), which markets premium hair care and skin care products.

With this acquisition, Kao Group will develop its core production base for the beauty care business in Europe, which allows Kao to establish a more efficient and stable supply chain system, it says.

More Personnel Moves at Procter & Gamble

Melissa Meisel — Wed, 24 Jun 2009 10:31:00 -0500

The Procter & Gamble Company (P&G) announced the following organizational changes:

Charlotte R. Otto, 55, global external relations officer, will retire effective Feb. 15, 2010, after 33 years of service and 13 years as head of external relations. She will step down from her current role on July 1, 2009. Ms. Otto will then serve on special assignment reporting to A. G. Lafley, chairman of the board, to support him in his role as full-time P&G chairman and chair of the 2009 Cincinnati community United Way campaign.

Christopher D. Hassall, Ph.D., 55, currently vice president, corporate communications & reputation and North America external relations, has been named global external relations officer, effective July 1, 2009, reporting to Robert A. McDonald, newly elected president and chief executive on corporate-related external relations matters, and to Marc S. Pritchard, global brand building officer, on brand-related external relations matters.

NPD Reports Women Are More Willing to Spend on Beauty Again

Melissa Meisel — Tue, 23 Jun 2009 08:39:00 -0500

Retail therapy may still be in action. According to A Snapshot Report on Beauty Consumers’ Reactions to the Economy from The NPD Group, Inc, 55% of beauty shoppers surveyed in April told NPD they will still buy beauty because it makes them feel better about themselves.This is up 4 percentage points since November 2008 (51%). More women also indicated they were likely to go to spas/salons on a regular basis and to buy beauty products on impulse than previously reported.

Interestingly, fewer women are reporting that beauty products are at the top of the “cut list” even in tough economic times. In April 2009, only 42% said they would cut back spending on beauty before other items, versus 45%in November 2008.

“It is very encouraging to see the overall positive shift among beauty shoppers. That tells us that, while we are not out of the woods yet, the greater proportion of beauty consumers are willing to explore spending again,” said Karen Grant, senior global industry analyst and vice president of beauty. “Beauty being so directly tied to a woman feeling better about herself is a vital trigger that cannot be missed in the marketing of beauty products today,” said Grant.

However, not all results were rosy. When looking at specific shopper segments the number of Black/African-American (Non-Hispanic) beauty shoppers showed a significant decline in those agreeing with the statement: “Even in these tough economic times, I still find myself buying beauty products on impulse.” This was down 6 percentage points from 28% last November to 22% in April. These results are also in contrast to the overall trend. There was a two percentage point increase among total women saying they would buy beauty products on impulse from 19% in November to 21% in April.

In addition, 47% of Black/African American (Non-Hispanic) beauty shoppers are significantly less likely than White/Caucasian (56%) and Hispanic (56%) women to buy beauty products because they make me feel better about themselves.

“The decline among Black/African American women may be very closely tied to the fact that women in this segment of the population are also the least likely to use makeup and skincare products,” said Ms. Grant. “In general, this group often has a harder time finding beauty products that meet their needs. Now add in tough times and they may be even more inclined to see beauty as a non-essential. Shifting this perception is one that marketers will need to look at and help turn sentiments of Black/African Americans to be more in line with other beauty consumers.”

CoverGirl Queen Partners with Essence.com

Melissa Meisel — Fri, 19 Jun 2009 08:36:00 -0500

The popular celebrity styles of Beyonce or Rihanna are now accessible to everyday women. Essence.com bolstered its beauty offerings with the first digital makeover application created for African-American women, sponsored by the CoverGirl Queen Collection. The tool, Makeover Magic, launches today.

Makeover Magic is designed to provide black women with a virtual salon and makeup counter experience, say the company. Users can upload their photos, select from a diverse palette of cosmetics as well as relatable celebrity hair styles to "try on" before clicking to purchase. Operating as more than a tool, Makeover Magic facilitates a dynamic beauty community experience that provides users the option to share, post or have their looks voted on, within their social networks via Facebook and Ning compatible widget.

The CoverGirl Queen collection was inspired by legendary actress/musician Queen Latifah.

Social Media Boosts Business

Jamie Matusow — Thu, 18 Jun 2009 09:28:00 -0500

These days, it's all about being online. Astral Brands, the parent company of cosmetics brands Pur Minerals and Aloette Cosmetics, is pairing the power of email and social media to raise awareness and boost sales of its expanding cosmetics lines.

With an email marketing effort that typically returns a 30% lift in same day sales, the company’s new social strategy uses its ExactTarget-powered email marketing messages to recruit new Facebook fans, providing the company a loyal group of brand advocates.

“Our expanded marketing effort provides both our customers and our independent consultants with new and different ways to interact with our brands,” said Nalini Humphrey, online marketing manager at Astral Brands. “Email provides a solid foundation for us to drive traffic to our social media campaigns.”

The company’s most recent Facebook campaign added more than 3,000 fans in the month of May. Using links in its email marketing messages and on its website, the company invited its network of franchises, consultants and customers to become fans as part of the company’s 31st anniversary celebration.

“Our expanding Facebook community provides us an engaged customer group that understands our products and wants to learn about the future of our brands and our ever-growing product line,” Humphrey said.

NJPEC's Road Series Kicks Off Summer

Jamie Matusow — Wed, 17 Jun 2009 08:55:00 -0500

On Thursday, June 25, the New Jersey Packaging Executives Club (NJPEC) invites you to bring your favorite customer or friend to enjoy the wonderful relaxing atmosphere of the Second Floor Ballroom and beautiful outside Terrace of the Helmsley Park Lane Hotel, 36 Central Park South,New York, New York 10019 (212) 371-4000. Welcome new members and participate in great networking for a great price (Members: $90 advanced registration, $95 at door: non-members: $95 advanced registration, $100 at door.

A cocktail party, with premium bar, pasta stations and hors d’oeuvres will be held from 6:00PM- 8:30PM.
Bring business cards for door prizes, including dinners, lunches, and one-night stays at some of the most desirable restaurants and hotels of NJ and NYC, and tickets to sporting events.

In addition, for one night only, the Helmsley Park Lane will offer a special discount dinner rate to those who attend the NJPEC event. With each dinner, a complimentary glass of wine and choice of three-course meal will be offered for $45 per person at the Park Room, overlooking Central Park, and next to the famous “Harry’s Bar.”

For advanced registration, please RSVP by June 19thto:Ms. Karen F. Hadden/Wolf,Atlantic Packaging Group,38 Highpoint,Cedar Grove, NJ 07009;Khaddenwolf@atpackgroup.com;973-769-7229;Fax: 973-857-3185

French Fragrance Company Cuts Jobs

Jamie Matusow — Wed, 17 Jun 2009 08:33:00 -0500

The recession is taking its toll on the French fragrance industry. Marionnaud Group plans to lay off approximately 700 employees in France,—about 17% of its workforce in the country.

The cuts include 659 positions in 370 of its 562 stores and 45 jobs in its head office — but does not include any perfumery closures — is meant to ensure the A.F. Watson Group-owned perfumery chain returns to a consistent level of profitability.

During the past three years, Marionnaud has lost about 25 million euros, or $34.4 million at current exchange, annually, according to the firm, which added in 2008 there was a slight improvement.

“The very difficult current economic context, added to the severe shrinkage of the market and the resulting intensification of competition, has degraded our position,” stated William Koeberle, chief executive officer of Marionnaud Group.

P&G Buys Zirh

Jamie Matusow — Tue, 16 Jun 2009 09:18:00 -0500

Procter & Gamble Co. continued its quest to dominate the men's grooming category with the acquisition of Zirh, a line of skin care and fragrances that are sold in department and specialty stores.

It's the second acquistion in men's grooming this month for P&G. Back on June 3, the company acquired The Art of Shaving in a deal estimated at $60 million.

"Although it is a relatively small, North American-centric business, its super-premium positioning and product lineup is a perfect complement to our portfolio," said Chip Bergh, group president for P&G Male Grooming.

Zirh is the brainchild of Brian Robinson, who created the brand more than a decade ago. He sold it to Shiseido, but ultimately got it back at a discount when the brand floundered under Shiseido.

Elizabeth Arden Signs Claudia Schiffer

Melissa Meisel — Fri, 12 Jun 2009 07:43:00 -0500

Supermodel Claudia Schiffer will represent Alberta Ferretti's first signature fragrance by Elizabeth Arden in its advertising campaign. In January 2008, the company entered into an exclusive long-term global licensing agreement with AEFFE S.p.A. for the development, marketing and distribution of fragrance, cosmetics and skin care products with Alberta Ferretti. The fragrance and the campaign will debut in Europe in the Fall 2009.

"It's an honour to be chosen as the face of the Alberta Ferretti fragrance. Alberta and I have worked together for many years and it's wonderful to be able to collaborate on this exciting project together. Alberta's designs always embody femininity and elegance which are reflected in this fragrance," said Ms. Schiffer.

Ulta Adds Cargo to Roster of Brands

Melissa Meisel — Thu, 11 Jun 2009 08:51:00 -0500

Cargo Cosmetics has partnered with beauty retailer Ulta for a new distribution deal. Starting June 21, the brand will be available in more than 300 Ulta stores nationwide and on ulta.com

Hana Zalzal, founder and president of Cargo, said, “The timing couldn’t be better for Cargo to expand into such a well-known beauty retailer. Ulta’s goal of creating a one-stop, easy shop for all beauty products is entirely consistent with our philosophy of making make-up better, smarter and easier for the consumer. Together, Cargo and Ulta will offer high-quality, professional-grade cosmetics that are accessible to the everyday woman. We are excited to call Ulta our new business partner.”

Cargo products can also be purchased from select department stores, Sephora stores and quality boutiques.

It's Official: McDonald is New CEO at P&G

Melissa Meisel — Wed, 10 Jun 2009 08:22:00 -0500

After some major media buzz, Procter & Gamble Company (P&G) has announced its appointment of Robert McDonald as its next chief executive officer (CEO), taking over for A.G. Lafley, according to news reports.

Mr. McDonald is a 29-year veteran of the company. He joined the company in 1980 and become chief operating officer (COO) in July 2007. He is credited with trimming costs throughout P&G's operations.

Mr. Lafley will remain chairman at P&G. He has been chairman since 2002 and CEO since 2000.