Happi Breaking News

SpongeTech Acquires Dicon Technologies

Tom Branna — Thu, 09 Jul 2009 15:57:00 -0500

SpongeTech Delivery Systems, Inc. acquired Dicon Technologies (“Dicon”), a company that specializes in research and development of products derived from hydrophilic urethane chemistry. SpongeTech acquired Dicon for $4.45 million in cash only.

According to SpongeTech, the Company has immediately picked up approximately $10 million in revenues and approximately $1.5 million in pre-tax earning from the acquisition.

Dicon currently sells various products including private label brands for multiple industries through established channels of distribution in the U.S., including traditional food, drug and mass market stores such as CVS, Walgreens, Kmart and Wal-mart as well as direct sales to large commercial clients; all of which SpongeTech intends to immediately utilize. In addition to the U.S. distribution, Dicon currently has distribution in Asia.

“Due to the overwhelming increase in sales and demand for our products, we felt the best interest for the company was to acquire Dicon,” said SpongeTech’s CEO, Michael Metter. “The acquisition of Dicon benefits SpongeTech along multiple parallels. With this acquisition, SpongeTech will obtain the technology that we have had exclusive rights to utilize in the manufacturing of our products and enable a more efficient and expeditious R&D process for the expanding of our product lines. In addition, SpongeTech will acquire all current and future products within Dicon’s portfolio.”

“We are energized at the potential unleashed by the union of our two companies,” commented SpongeTech’s COO, Steven Moskowitz. “The growth of the company has given us the ability to acquire Dicon without dilution. We believe that this acquisition places SpongeTech in an excellent position to maximize the value of our company and its future.”

Established in 1975, Dicon Technologies has been researching, developing and producing some of the most innovative and successful products for multiple industries including agriculture, cosmetic, household and medical.

Gillette Adds NASCAR Rookie to Roster

Melissa Meisel — Thu, 09 Jul 2009 09:23:00 -0500

Gillette plans to heat things up this summer by adding recent NASCAR race winner Joey Logano, driver of the No. 20 Home Depot Toyota, to its group of Gillette Young Guns Drivers. The squad includes Clint Bowyer, Kyle Busch, Carl Edwards, Denny Hamlin, Kasey Kahne and Ryan Newman.

Mr. Logano earned his rookie stripes from his fellow Gillette Young Guns during the filming of a new commercial to support the Gillette Optimal Shave indicator strip, which alerts consumers that it is time to change their blades when the strip color changes from blue to white. The commercial features all seven Gillette Young Guns and highlights Mr. Logano as the latest addition to the roster of NASCAR Sprint Cup Series stars. The ads will begin airing during the broadcast of the July 11 LifeLock.com 400 from Chicagoland Speedway.

"Joey is one of the hottest drivers in the sport and we are pleased to welcome him as the newest member of the Gillette Young Guns," said Michelle Potorski, associate marketing director, Gillette North America. "Our new commercial is about change -- whether it's reminding consumers to change their blades or adding a teenage rookie sensation to our Gillette Young Guns roster. We're proud to have Joey join the team and look forward to watching his career take off in the NASCAR Sprint Cup Series."

Chattem Manages Sales Gain in First Half

Tom Branna — Thu, 09 Jul 2009 08:30:00 -0500

Despite the difficult economic environment, Chattem managed to eke out a gain in sales for the first six months of its fiscal year.

Total revenues for the first six months of fiscal 2009 rose 0.2% to $237.9 million. Total domestic revenues, excluding $1.9 million of sales of Icy Hot Heat Therapy, which was recalled in the first quarter of fiscal 2008, increased 4.1%, in the first six months of fiscal 2009 to $227.0 million.

The increase in domestic revenues was led by sales of Gold Bond, Act, Icy Hot and Cortizone-10. Offsetting these increases were lower revenues from certain smaller brands and a $6.8 million, or 62%, increase in promotional programs that were recorded as a reduction of revenue rather than as advertising and promotion expense in consolidated statement of income.

International revenues decreased 38% in the first six months of fiscal 2009, compared to an exceptionally strong first half for our international business in fiscal 2008, resulting from our change in distributors in Latin America, general sales weakness in European markets due to the weak economy and an adverse foreign exchange rate impact.

Third Quarter Sales Tumble at WD-40 Company

Tom Branna — Thu, 09 Jul 2009 07:53:00 -0500

Like many other companies in the household and personal products space, it hasn't been smooth sailing for chemical specialties marketer WD-40 Company. Sales fell 16.2% to $68.8 million in the fiscal third quarter ended May 31. Net income fell 14.6% to $6.9 million.

On the year, sales fell 10.8% to $214.3 million and net income tumbled 18.7% to $18.7 million.

"Although we have certainly seen the impact of the overall weakness in the global economy and have had signicant negative impacts due to foreign currency exchange rates, we are pleased with our results given the environment and are confident about the future," explained Garry O. Ridge, WD-40 Company president and chief executive officer.

Third quarter multipurpose maintenace product sales, including WD-40 and 3-in-One brands, fell 14.1% to $52.6 million. Home care and cleaning product sales fell 22.3% during the period to $16.3 million.

More info: www.wd40company.com

Coty Opens Russian Subsidiary

Tom Branna — Thu, 09 Jul 2009 07:43:00 -0500

In an effort to grab a sizeable share of an $8 billion cosmetics and toiletries market, Coty Inc. opened a Russian subsidiary today. The opening of Coty's Russia office, located in Moscow, is a strategic initiative for establishing direct in-house marketing control of the Coty products in Russia.

Coty considers the country as a key emerging market and priority expansion opportunity.

"The opening of Coty's Russian subsidiary provides Coty with a competitive in-market edge to advance our sales and build business partnerships while simultaneously strengthening our global presence in the beauty industry," commented Coty Chief Executive Officer Bernd Beetz. "Coty's Russia team will leverage existing relationships and establish new partnerships with distributors in Russia and related markets to deliver the highest quality products to consumers."

Prior to the establishment of this Russian office, Coty products were sold in Russia through multiple distribution partnerships.

Coty CEO Bernd Beetz has named former Beauty & Co. General Manager and Commercial Director Roman Terekhov as General Director of the new Russian subsidiary. Mr. Terekhov will be responsible for Coty's day-to-day operations in Russia, overseeing 60 employees within the marketing, sales, supply chain, and finance and information technology divisions.

"Roman's extensive industry knowledge, especially of the Russian market, and extensive business experience make him an outstanding addition to the Coty family," added Beetz.

Effective immediately, the new subsidiary will manage the marketing, sales and distribution of select Coty products, including Rimmel color cosmetics, Adidas personal care products, Lancaster skin and sun care products and Calvin Klein, Celine Dion, Cerruti, Chloe, Chopard, David Beckham, Davidoff, Esprit, Jil Sander and Marc Jacobs fragrances.

Coty's Russia office is located at 69, Sadovnicheskaya Emb., Moscow.

More info: www.coty.com

NJPEC Opens Packaging Competition to Non-Members

Tom Branna — Thu, 09 Jul 2009 07:38:00 -0500

The New Jersey Packaging Executive Club (NJPEC) is accepting submissions for the annual Package of the Year Awards competition and Exhibition Gala.

Submissions will be reviewed by a blue ribbon panel of judges, including:

Lorraine Ahart, Victoria’s Secret
John Alongi, Avon
Leslie Artesona, Elizabeth Arden
Peter Boemio, Pfizer
Pankaj Garg, Coty
Steve Longo, Professor of Design, County College of Morris
Gary Montalbano, Estee Lauder
David Reed, Hartz Mountain

Submissions must be work produced from September 2008 to August 2009 in the following categories:

Cosmetics and Fragrances
Food and Beverage
Pharmaceuticals/Medical Devices
Promotional Packaging
Personal Care
Household/Industrial
Package Graphic Design
Folding Cartons and Rigid Boxes

There will be special awards for Sustainable Packaging, Innovation, Market Impact, Best Use of Stock Packaging, Rutgers Students’ Choice and Package of the Year.

Entry fee is free for members and only $75.00 per submission for non-members. Submission deadline is September 7, 2009.

More info: www.njpec.com

Estimates Trimmed at Kimberly-Clark

Tom Branna — Wed, 08 Jul 2009 13:37:00 -0500

Nonwovens wipes maker Kimberly-Clark isn't cleaning up on Wall Street. An analyst on Wednesday trimmed her earnings estimate for the fiscal second quarter on Kimberly-Clark Corp., following last month's news that the household products maker will record costs to cut hundreds of jobs in the tough economy.

Last month, the company said it will slash 1,600 jobs, or 3% of its global work force. Kimberly-Clark said the cuts will save about $150 million a year, or about 25 cents per share, but the company will record $110 million of the costs in the second quarter.

BMO Capital Markets analyst Connie Maneaty kept an "Outperform" rating on the stock, but lowered her second-quarter profit estimate by 13 percent to 86 cents per share, given the costs for the job cuts.

Her $60 price target implies shares have room to rise 13.5 percent from Tuesday's closing price of $52.85.

Kimberly-Clark makes Kleenex tissues, Huggies diapers and other household items.

The Irving, Texas-based company will update its earnings guidance when it reports second-quarter results, scheduled for July 23.

Hair Care Trade Show Set for Atlanta

Tom Branna — Wed, 08 Jul 2009 10:10:00 -0500

Hair care executives who still have a travel budget may want to head to Atlanta next month to learn more about the ethnic hair care category. Over 60,000 hairstylists, exhibitors, distributors and cosmetology students will emerge on the city of Atlanta as Bronner Bros. rolls out the red carpet for yet another fantastic show.On August 15-18, the Georgia World Congress Center will be the meeting hub for professional and aspiring stylists to exchange ideas and spearhead the beauty industry with further gains in education.

According to organizers, the convention meets the educational demands of the industry and sessions focus on hair care for natural tresses, wigs and weaves. The conference features an International forum that is offered in Spanish and free for registered attendees. Coloring, makeup, barbering and business strategies are also available.

The Bronner Bros. Show is filled with entertainment. The 2009 show will open with a comedy show featuring host JJ, with the Young Giants of Comedy - Prescott, Steve Brown, Marvin Dixon and Damon Williams.On Sunday morning, Bishop Dale C.Bronner will be on hand to deliver a profound sermon, followed with a mini concert by gospel artist, Byron Cage.Sunday night the fabulous Hair Battle Royale sponsored by Ford Motor Company will be staged with six contestants vying for$20,000 and the newly designed 2010 Ford Taurus.

Comedian Chris Rock and his celebrity friends have been invited to attend the Bronner Bros. Show for a panel discussion on the upcoming movie “Good Hair”. Produced by Rock, the film opens in theaters on October 9 and explores the way hairstyles affect activities, pocketbooks, sexual relationships and self-esteem.

The Bronner Bros. International Hair Show occupies over 350,000 square feet of exhibit space and is recognized as the largest beauty and trade show of its kind in the world.The event is an Atlanta institution, celebrating over 60 years of family tradition, African American pride, family unity and creative hair.

More info: www.bronnerbros.com

CSPA Questions Fed's Label Legislation

Tom Branna — Wed, 08 Jul 2009 09:04:00 -0500

The Consumer Specialty Products Association today expressed concerns regarding legislation (H.R. 3057) introduced by Representative Steve Israel.

“While we agree with the general premise of Congressman Israel’s legislation about providing consumers with more information about the ingredients in products, we have significant issues with the current draft of this legislation, said Chris Cathcart, president, CSPA.

“Our industry announced last fall the development of our new Consumer Product Ingredient Communication Initiative which creates a uniform system for providing ingredient information to consumers in a meaningful and easy-to-understand manner. It is largely based upon the labeling conventions in use today in the U.S. for food, drugs and cosmetics that consumers are already familiar with,” Mr. Cathcart said.

Current federal law requires that the product manufacturer include on the point of purchase label information about the products’ potential hazards, product ingredients contributing to those hazards, appropriate handling and storage, applicable first aid information, and how to protect children.

“We believe the current laws governing the point of purchase label provides to the consumer the most important information, and that additional detail on the product label, as proposed by Congressman Israel in his legislation, could deter consumers from these very important product instructions on safe use and disposal, Cathcart said.

The voluntary Consumer Product Ingredient Communication Initiative becomes effective in January, 2010 and allows participating companies to provide information on product ingredients on the product label; on the manufacturers’, distributors’, or importers’ website; through a toll-free telephone number; or through some other non-electronic means.

“Although ours is a voluntary program, we are reaching out to environmental and other non-government organizations to pursue public policy based on our initiative,” Mr. Cathcart said. “Any public policy on product labeling, however, must preserve the instructive risk-based information on the point of purchase label to help protect consumers. Our products are safe when used according to label directions.”

“We look forward to working with Congressman Israel on this important issue as our initiative moves forward,” Mr. Cathcart concluded.

More info: www.cspa.org/public/media/info/cpici.html

Icy Hot Marketer Goes Cold for Analyst

Tom Branna — Wed, 08 Jul 2009 08:20:00 -0500

A Jefferies & Co. analyst downgraded shares of toiletries and dietary supplements maker Chattem Inc. Wednesday, citing concerns over a slowdown in sales.

Jefferies analyst Douglas M. Lane cut his rating on the stock to "Hold" from "Buy" and reaffirmed a price target of $72. In a note to clients, he wrote sales seem to have fallen in June.

"This compels us to reduce estimates, and with the stock within 8 percent of our target, to move to the sidelines pending reacceleration of point-of-sales," he wrote in a note to investors.

Lane's price target on Chattem shares is $72. The stock finished Tuesday's trading at $65.90.

Lane also cut his fiscal 2009 earnings-per-share outlook to $4.50 from $4.60.

Chattanooga, Tenn.-based Chattem's products include medicated skin care products such as Gold Bond, Cortizone-10, and Balmex, along with topical pain products Icy Hot and Aspercreme. It also makes the medicated dandruff shampoo Selsun Blue and dietary supplements.

Premium Price Fragrance and Makeup Sales Are Thriving

Melissa Meisel — Tue, 07 Jul 2009 08:32:00 -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.

Sales Surge in Brazilian Beauty Market

Tom Branna — Tue, 07 Jul 2009 08:23:00 -0500

Brazil's cosmetics industry grew 18% from January to June, the Brazilian Toiletry, Perfumery and Cosmetic Association, or Abihpec, announced yesterday.

According to the Association, sales are on pace to top $12 billion this year. That's an increase of nearly 20% over 2008 results, in local currency.

Sales Dip at Regis

Tom Branna — Tue, 07 Jul 2009 08:23:00 -0500

Regis Corporation reported that consolidated revenues decreased 2.5% in the fourth fiscal quarter of 2009 to $625 million. Fourth quarter total same-store sales decreased 4.0%. Same-store sales for the year decreased 3.1%.

The good news is that company executives said that total debt at the end of fiscal 2009 is expected to be between $635 and $650 million, significantly below the previously announced goal of $700 million. The company's debt stood at $807 million as of September 30, 2008. The debt reduction was primarily the result of reducing overhead expenses, efficiently managing working capital and international cash balances, and reducing capital expenditures for new stores and acquisitions.

During the year, Premier Salons Beauty, Inc. (Premier) purchased Trade Secret, Inc. from Regis.

For the year ended June 30, sales declined 2% to $2.4 billion.

More info: www.regiscorp.com

Male Boomers Are Big Spenders

Tom Branna — Tue, 07 Jul 2009 08:03:00 -0500

While women ages 40 and older still account for the bulk of spending, male Baby Boomers should not be ignored, according to the results of a new study by the Natural Marketing Institute. t

“Boomer men are less affected by the recession than women," explained Steve French, NMI’s managing partner. "In fact, 40% of men do not feel the amount of stress in their lives has increased due to the current economy while less than 30% of women feel that their stress level has not increased.Men are also more likely to spend versus saving and make impulse purchases. They represent tremendous targeting opportunities across a range of industries.”

With more than $1 trillion in spending power, men are also more likely than women to buy brand name products, particularly at the grocery store. NMI found that about half of men are willing to purchase national brands over store brands as opposed to one-quarter of women.While shopping was once considered a woman’s domain, men are increasingly playing a role or even becoming the primary shopper for their family. Less than a decade ago, men accounted for only twenty percent of primary grocery shoppers, but today one-third are doing the majority of their household grocery shopping.

These findings corroborate emerging cultural changes and marketplace behaviors that, when combined, point to a consumer revolution around aging and masculinity. “An abundance of 50+ Boomer men,” said white paper co-author Brent Green, “promises to inculcate new vitality to masculine aging. Boomer men are making deliberate and proactive lifestyle choices, and this is being revealed through NMI research, consumer behavior, and brilliant marketing nuanced for generation and gender.”

More info: Natural Marketing Institute, www.nmisolutions.com

Grand Brands Celebrates Overseas Lander Launch

Melissa Meisel — Tue, 07 Jul 2009 07:37:00 -0500

Launder, 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.