HAPPI July 2011

Looking for a Mild Surfactant Package? Don’t compromise mildness for foam, have it both ways with RITAFACTANTS RITA’s patented use of Acyl Lactylate Surfactant Blends.

L

ATURAL & EC

N LL

surfactant packages.

DES AVAILAB

cost-effective

T APPROVED G RA

foaming, stable and

ER OC

E

Exceptionally mild, high

A

For more information please visit us at ritacorp.com

www.ritacorp.com

Your source for speciality chemicals worldwide

Lanolin • Lanolin • Lanolin Derivatives • Absorption Bases • Emulsifiers • Glycol • Glyceryl • PEG Esters • Fatty Alcohols & Acids • Paraffins • Flavinoids • Co-Enzymes • Amino Acids • Vitamins Cationic Quaternary Compounds • Conditions & Styling Aids • Emollient Esters • Polyoxyethylene Ethers, Esters & Resins • Sovlents • Coupling Agents • Ritacanes • Ritadecenes • Carbomers & Gums Methyl Glucose Esters • Acyl Lactylates, Lactates & Lactic Acid • Surfactants • Preservatives / Antimicrobials • Essential Oils • Naturals • Butters • Oils • Certified Organics • Sunscreens • Silicones • Actives • Guars Alkylpolyglucose Esters • Thinkeners & Stabiliziers • Carrier Systems • Proteins • Aiglon • ROVI • Lamberti • Seiwa Kasei

What quality feels like.

Grant Industries is a leading global provider of specialty materials for personal care, known for award-winning products and cutting-edge research. Our dedication to product performance and customer support makes us the ideal source for new ideas and ingredients to improve skin feel.

Products we offer include: N N N N N

Silicone Elastomer Gels Natural Based Technologies Formulated Silicone Products Microsphere Powders Silicone Copolyol Surfactants

N N N N N

Active Delivery Systems Specialty Hair Care Products Physical UV Dispersions Silicone Acrylate Resins Retinoic Derivatives

Contact us today to discover the ways we help ensure your product’s performance is flawless, or learn more at www.grantinc.com.

125 Main Ave. Elmwood Park, NJ 07407

201-791-6700

N

[email protected]

July 2011 Volume 48, No. 7 www.happi.com

51

FEATURES 51

Star-Studded FiFi Awards

57

Sustainable Cosmetics

60

The Promise Land A Hallstar researcher offers some suggestions on how to protect skin from UV, water loss and other maladies.

COLUMNS

64

Inquire Within

34

66

Breakthroughs for Break Outs?

The stars were out to celebrate the best in the fine fragrance industry, courtesy of The Fragrance Foundation.

When the Great Recession was raging, consumers began to pull-back from making green purchases. Industry observers insist that shoppers are coming back, but who gets to decide what’s green and what isn’t?

Consumers look to nutritional supplements for inside-out beauty benefits.

Not to mention wrinkles and age spots. The mapping of the human genome is creating new opportunities for cosmetic chemists to create effective formulas for a variety of issues.

Cover Story

69

A wide array of ingredients at NYSCC Suppliers’ Day

36

The economy rebounded strongly last year and so did merger and acquisition activity. When you start flipping through The Top 50, you may be surprised at the companies and brands that have changed hands during the past year.

EuroTrends European AP/deo market manages to keep its cool

40

The Top 50

Gleams & Notions

Notes from China Demand grows for cosmeceuti cals but a definition is lacking

42

The Grayson Report Star products still build companies

69 46

The Sunscreen Filter Finally, the final rule

Cover design: Laura Caramagna

4 • happi

happi.com

July 2011

©2011 Ajinomoto U.S.A., Inc. All product names shown here are registered trademarks of Ajinomoto Co., Inc.

DEPARTMENTS 10

Editor’s Page

26

Join us on Aug. 11 for a free sunscreen webinar

12

Index to Companies

Malibu C gets in the swim with US Water Polo sponsorship

32

A quick guide to the companies referenced in this issue of HAPPI

14

News Front

Formulary

127

Patents

130

International

132

Packaging News

Meetings

134

Supplier’s Corner Unique hair care at Unipex

135

SCC News New hands-on color cosmetics troubleshooting course

136

Personnel Roundup Kemin welcomes employees to personal care division

138

Financial News A demand for luxury gets L’Oréal off to a good start

6 • happi

146

happi.com

Photo News Avon Believe Tour hits Warsaw and Moscow

Cosmoprof North America in Las Vegas, July 31-Aug. 2

Kao opens eco-technology research center

127

New Products

Global Packaging Alliance holds annual meeting in Hong Kong

Aqueous disinfectants and sterilants

24

Regulations

Vitabath relaunches with new bodywashes

Broad spectrum SPF 32 sunscreen spray from HallStar

22

130

More transparency for household products

US beauty sales rise in first quarter

18

Marketing News

ADVERTISING SECTIONS 139

Contract Packaging/ Private Label

142

Professional Directory

142

Classified Ads

144

Advertising Index July 2011

Natural disinfecting power

Natural, renewable and safe. PURAC Sanilac is used as an anti-bacterial agent in a variety of consumer and industrial sanitizing and cleaning

PURAC® Sanilac

products. Based on the fermentation of carbohydrates, PURAC Sanilac is

• Anti-bacterial agent

registered both in the United States and Europe as a disinfectant. PURAC

• Registered disinfectant

Sanilac is readily biodegradable, non mutagenic and non aqua toxic. In today’s

• Cleaning agent

search for environmentally friendly, yet effective cleaning products, PURAC

• Natural, renewable & safe

Sanilac is the perfect ingredient for sustainable cleaning and disinfection.

For more information: www.purac.com/homecare

As of May 2010, PURAC Sanilac is permitted by the EPA for use as a FIFRA active ingredient for DfE labeled products.

SUNSCREENS IN THE NEWS

M

OST OF US, I IMAGINE, toil away in obscurity. For example, peo-

ple find out that I’m in publishing and ask,“Oh, what books do you publish?” When I tell them that it’s magazines, specifically trade magazines, they invariably ask,“Oh, what magazine?” My pat answer is “HAPPI, which is an acronym for Household and Personal Products Industry.”That response is usually enough to kill the conversation—but I’m never sure if the silence is because my acquaintance doesn’t know what an acronym is or if he finds laundry and shampoos deadly dull. Still, I’ll bet that surfactant chemists and pigment manufacturers struggle through similar cocktail banter. So when our industry made headlines last month, I was more than a bit surprised. Sure the FDA ruling on sunscreen labeling is big news for HAPPI readers, but I didn’t expect front-page coverage in my local paper, let alone The New York Times or The Wall Street Journal. Of course, not all news is good news. The Record’s headline blared, “New Rules for Sunscreens.”Unfortunately, the subhead included“Some don’t help prevent skin cancer,” which was in reference to the fact that not every product provides UVA and UVB protection. Technically, that’s correct, but copy like that will only confuse and scare consumers. For complete, accurate coverage of this major event, check out The Sunscreen Filter, our bimonthly column by sunscreen expert Nadim Shaath (p. 46). Shaath has studied the FDA’s long-awaited response to the issues surrounding UV protection and he’s got plenty to say on the matter. And be on the lookout for an email from HAPPI announcing our free sunscreen webinar, which will take place on Aug. 11 at 1pm on our website, Happi.com. The webinar will feature the US Food and Drug Administration’s Reynold Tan, who can answer your questions about the recent FDA actions, as well as commentary from Dr. Shaath. You can register for this free event on Happi.com. For more information, see the ad on p. 132 in this issue. The July issue is about more than sunscreen, of course. It includes The Top 50, which, like the Sunscreen Monograph itself, got its start in 1978. Our annual look at the leading US-based companies in the household and personal products industry, starts on p. 69. Also this month, we report on the increasingly blurred line between beauty and nutrition. Melissa Meisel’s tasty coverage on the topic begins on p. 64. We hope you enjoy this edition of HAPPI, as always, we welcome your comments and suggestions.

Tom Branna Editorial Director [email protected]

10 • happi

happi.com

V.P./EDITORIAL DIRECTOR: Tom Branna, [email protected] ASSOCIATE EDITORS: Melissa Meisel, [email protected], Christine Esposito, [email protected] COLUMNISTS: Ally Dai, Harvey Fishman, Navin Geria, Suzanne and Bob Grayson, Katie Middleweek, Sueli Ortega, Patrick Ropella CONTRIBUTING EDITOR: Nancy Jeffries

RODMAN PUBLISHING PRESIDENT: Rodman J. Zilenziger, Jr., [email protected] EXECUTIVE VICE PRESIDENT: Matthew J. Montgomery, [email protected] PUBLISHER: Art Largar, [email protected] ASSOCIATE PUBLISHER: Beth Russo, [email protected] EUROPEAN SALES: Baudry Boisseau Associates Tel: 32-2-513-06-47 • Fax: 32-2-514-17-38 Email: [email protected] ADVERTISING SALES (Hong Kong, Taiwan & China): Michael R. Hay, Ringier Trade Publishing Ltd. Hong Kong (852) 2369 8788 • Fax: (852) 2869 5919 E-mail: [email protected] PRODUCTION DIRECTOR: Sharon Messner, [email protected] ART & TECHNICAL MANAGER: Michael Del Purgatorio, [email protected] ONLINE DIRECTOR: Paul Simansky, [email protected] WEB MANAGER: Jason Lawton, [email protected] CIRCULATION MANAGER: Joe DiMaulo, [email protected] To renew/subscribe/update subscription information, please visit www.happi.com. Or contact: [email protected] Tel: (201) 825-2552 ext. 374 Fax: (201) 825-6582.

A Rodman Publication 70 Hilltop Road Ramsey, NJ 07446 USA Tel: (201) 825-2552 Fax: (201) 825-0553 Website: www.Happi.com happi—Household and Personal Products Industry (ISSN 0090-8878) is published monthly on the 10th by Rodman Publishing Corp., 70 Hilltop Road, Ramsey, NJ 07446 USA. Phone: (201) 825-2552. Fax: (201) 825-0553. Periodical postage paid at Ramsey, NJ 07446 USA and additional mailing offices. Publications Mail Agreement No 40028970: Return undeliverable Canadian addresses to: Circulation Dept., PO Box 1051, Fort Erie, On L2A 6C7. Circulation Dept.: circulation @rodpub.com. POSTMASTER: Send address changes to Happi, 70 Hilltop Road, Ramsey NJ 07446 USA. Free subscriptions to Happi are available to qualified individuals. Others are as follows: U.S. one year $85; two years $115. Outside U.S. and overseas: one year $105 (U.S.), two years $150 (U.S.). Single issue: $12 (except for February, July and October, $15). 5% GST required on Canadian orders. GST#134451756. Foreign Airmail: one year $195 (U.S.). Make checks payable in U.S. dollars through a U.S. bank. American Express also accepted. The publisher reserves the right to determine qualification of free subscriptions. Missing Issues: Claims for missing issues must be made within three months of the date of the issue. PRINTED in USA. Happi’s circulation is audited by BPA International. Authorization to photocopy items in Happi for internal or personal use, or internal or personal use of specific clients, is granted by Rodman Publishing, provided a base fee of U.S. $1 per page is paid directly to: Copyright Clearance Center, 27 Salem St., Salem, MA 01970 USA.

July 2011

Index to Companies • This index gives the starting page for a department or feature with a significant reference to a brand, finished product company, agency, research firm, retailer or trade association. Subsidiaries are indexed under their own names. 12Ways . . . . . . . . . . . . . . . . 40 3LAB . . . . . . . . . . . . . . . . . . 26 Alberto-Culver . . . . . . . 42, 69 Almay . . . . . . . . . . . . . . . . . 69 American Chemistry. . . . . . . 14 Council American Cleaning . . . . . . . 32 Institute American International . . . 69 Amrep . . . . . . . . . . . . . . . . . 69 Amway . . . . . . . . . . . . . . . . 69 Anthony for Men . . . . . . . . 64 Arm & Hammer . . . . . . . . . 69 Atlantic Coast Media . . . . . 69 Australian Gold . . . . . . . . . 26 Aveda . . . . . . . . . . . . . . 57, 69 Aveeno . . . . . . . . . . . . . . . . 60 Avene . . . . . . . . . . . . . . . . . 40 Avon . . . . . . . . . 14, 26, 51, 69 Awapuhi . . . . . . . . . . . . . . . 69 Axe . . . . . . . . . . . . . . . . . . . 26 Aziza . . . . . . . . . . . . . . . . . . 42 Banana Boat . . . . . . . . . . . . 69 Bare Escentuals . . . . . . . . . . 42 Bath & Body Works . . . 51, 59 Beiersdorf . . . . . . . . . . . . . 138 Beijin Tongrentang Co. Ltd. . 40 Blistex . . . . . . . . . . . . . . . . . 69 Blyth . . . . . . . . . . . . . . . . . . 69 Borba . . . . . . . . . . . . . . . . . . 64 Brandlogic . . . . . . . . . . . . . . 14 British Soc. of Perfumers . . . 24 Burberry . . . . . . . . . . . . . . . 69 Burt’s Bees . . . . . . . . . . . 14, 57

12 • happi

Calvin Klein . . . . . . . . . . . . 42 Carol’s Daughter . . . . . . . . 51 Chanel . . . . . . . . . . . . . . 14, 51 Chattem . . . . . . . . . . . . . . . 69 Chen Li Ji . . . . . . . . . . . . . . 40 Chesebrough-Ponds . . . . . 42 China Glaze . . . . . . . . . . . . 69 Church & Dwight . . . . . . . 69 Cleantec . . . . . . . . . . . . . . . 69 Clinique . . . . . . . . . . . . . 14, 69 Clorox . . . . . . . . . . . . . . . . . 69 CND . . . . . . . . . . . . . . . . . 136 Colgate-Palmolive . . 14, 42, 69 Collistar . . . . . . . . . . . . . . . . 36 Combe. . . . . . . . . . . . . . . . . 69 Consumer Reports . . . . . . . 26 Consumer Specialty . . . 32, 136 Products Association Coppertone. . . . . . . . . . . . . 69 Cortry . . . . . . . . . . . . . . . . . 40 Coty . . . . . . . . . . . . . 42, 51, 69 CoverGirl . . . . . . . . . . . . . . 26 Cutex . . . . . . . . . . . . . . . . . . 42 Degree . . . . . . . . . . . . . . . . . 26 Dermalogica . . . . . . . . . . . . 69 Diversey . . . . . . . . . . . . . . . 69 DKNY . . . . . . . . . . . . . . . . . 69 Dober Chemical . . . . . . . . . 69 Dove . . . . . . . . . . . . . . . 14, 36 Downy . . . . . . . . . . . . . . . . . 69 Dr. Bronner’s . . . . . . . . . . . . 26 Dr. Evans Cosmeceuticals . . 69 Dr. Hauschka . . . . . . . . . . . 57 Dr. Scheller . . . . . . . . . . . . . 69 Ecolab . . . . . . . . . . . . . . . . . 69 Eli Lilly . . . . . . . . . . . . . . . . 42 Elizabeth Arden . . . . . . 42, 69 Energizer . . . . . . . . . . . . . . . 69 Estée Lauder . . . . . . 14, 42, 69 Farouk Systems . . . . . . . . . 26 FDA . . . . . . . . . . . . . . . . 32, 46 Fragrance Foundation . . . . 51 Fusion Brands . . . . . . . . . . . 26 Gain . . . . . . . . . . . . . . . . . . . 26

Garnier . . . . . . . . . . . . . . . . 26 Gojo . . . . . . . . . . . . . . . . . . . 69 Gucci . . . . . . . . . . . . . . . . . . 51 Guthy Renker . . . . . . . . . . . 69 H20 Plus . . . . . . . . . . . . . . 136 Hawaiian Tropic . . . . . . . . . 69 Helena Rubenstein . . . . . . 42 Helene Curtis . . . . . . . . . . . 42 Henkel . . . . . . . . . . 14, 57, 138 Herbalife . . . . . . . . . . . . . . . 69 HSN . . . . . . . . . . . . . . . . . . 69 Hudson Bay Co. . . . . . . . . . 26 Hydroxatone . . . . . . . . . . . . 69 Inter Parfums . . . . . . . . 51, 69 Issey Miyake . . . . . . . . . . . . 51 Jabot Cosmetics . . . . . . . . . 26 Jafra . . . . . . . . . . . . . . . . . . . 69 Jean Paul Gaultier . . . . . . . . 51 Jimmy Choo . . . . . . . . . . . . 69 John Paul Mitchell . . . . . . . 69 Johnson & Johnson . 14, 42, 69 Johnson’s Natural . . . . . . . . 60 Juice Beauty . . . . . . . . . . . . 57 Kantar Worldpanel . . . . . . . 36 Kao . . . . . . . . . . . . . . . . . . . 24 Kay . . . . . . . . . . . . . . . . . . . 69 Kerr Drugs . . . . . . . . . . . . . 26 L’Oréal . . . . . . . 14, 40, 42, 138 La Roche-Posay . . . . . . 24, 40 Lancôme . . . . . . . . . . . . 14, 42 Limited Brands . . . . . . . . . . 69 Longliqi. . . . . . . . . . . . . . . . 40 MAC . . . . . . . . . . . . . . . . . . 14 Maleave Cosmetics . . . . . . 40 Malibu C . . . . . . . . . . . . . . . 26 Malibu Wellness . . . . . . . . . 64 Markwins . . . . . . . . . . . . . . 69 Mary Kay . . . . . . . . . . . . . . . 69 Max Factor . . . . . . . . . . . . . 42 Maybelline . . . . . . . . . . . . . 42 Mayinglong . . . . . . . . . . . . . 40 Pharmaceutical Group Merck . . . . . . . . . . . . . . . . . 69 Method . . . . . . . . . . . . . . . . 69

happi.com

Mintel . . . . . . . . . . . . . . . . . 64 Mirage Cosmetics . . . . . . . . 69 Murad . . . . . . . . . . . . . . . . . 69 Neutrogena . . . . . . . . . . . . . 42 Niagara National . . . . . . . . 69 Nivea . . . . . . . . . . . . . . . 14, 36 NPD Group . . . . . . . . . . . . 14 Nu Skin . . . . . . . . . . . . . . . . 69 Nutrition Business Journal. . 64 Obagi . . . . . . . . . . . . . . . . . 69 OPI . . . . . . . . . . . . 26, 69, 146 Organic Monitor . . . . . . . . 57 Oxiclean . . . . . . . . . . . . . . . 69 Packaged Facts . . . . . . . . . . 64 Parlux . . . . . . . . . . . . . . . . . . 69 PartyLite . . . . . . . . . . . . . . . 69 Personal Care Products. . . . 32 Council Philosophy . . . . . . . . . . 42, 69 Phoenix Brands . . . . . . . . . 69 Playtex . . . . . . . . . . . . . . . . . 42 Pravana Naturceuticals . . . 64 Prestige Brands . . . . . . . . . . 69 Proactiv . . . . . . . . . . . . . . . . 69 Procter & Gamble . . . . 24, 42, 51, 57, 69 Pure Bioscience . . . . . . . . . 24 Purell . . . . . . . . . . . . . . . . . . 69 QVC . . . . . . . . . . . . . . . . . . 42 Rain Cosmetics. . . . . . . . . . 26 Razorpit . . . . . . . . . . . . . . . . 26 Reckitt Benckiser . . . . . 26, 69 Redken . . . . . . . . . . . . . . . . 26 Research Institute . . . . . . . . 32 for Fragrance Materials Resolve . . . . . . . . . . . . . . . . 26 Revlon . . . . . . . . . . . 24, 42, 69 Sally Hansen . . . . . . . . . . . . 42 Sanex . . . . . . . . . . . . . . . . . . 69 Sara Lee . . . . . . . . . . . . . . . 69 SC Johnson . . . . . . . 14, 24, 69 Schering-Plough . . . . . . . . 42 Schick . . . . . . . . . . . . . . . . . 69 Sealed Air Corp. . . . . . . . . . 69

Seventh Generation . . . 14, 69 Shaklee . . . . . . . . . . . . . . . . 69 Shanghai Jahwa . . . . . . . . . 40 Shout . . . . . . . . . . . . . . . . . . 26 Sinful Colors . . . . . . . . . . . . 69 Six Scents Parfums . . . . . . . 61 SKII . . . . . . . . . . . . . . . . . . . 42 Skin by Monica Olsen . . . . 26 Smashbox . . . . . . . . . . . . . . 42 Sony Pictures . . . . . . . . . . . 26 Spartan . . . . . . . . . . . . . . . . 69 Spic and Span . . . . . . . . . . . 69 State Industrial Products. . . 69 Sun Bum Spray . . . . . . . . 130 Sun Products . . . . . . . . . . . 69 SymphonyIRI . . . . . . . . 14, 36 Tesco . . . . . . . . . . . . . . . 14, 36 Tide . . . . . . . . . . . . . . . . . . . 69 Tiger Balm. . . . . . . . . . . . . . 26 Tom Ford Beauty . . . . . . . . 61 Tom’s of Maine . . . . . . . 14, 69 Trader Joe’s . . . . . . . . . . . . . 14 TreSemmé . . . . . . . . . . . . . . 42 True Natural Cosmetics . . . 26 Tupperware . . . . . . . . . . . . . 69 Turtle Wax . . . . . . . . . . . . . . 69 Unilever. . . . . . . . . 26, 36, 138 Union for Ethical. . . . . . . . . 57 Biotrade Unipro . . . . . . . . . . . . . . . . . 36 Ushuaïa . . . . . . . . . . . . . . . . 36 Vichy . . . . . . . . . . . . . . . . . . 40 Victoria’s Secret . . . . . . 51, 69 Walmart . . . . . . . . . . . . . . . . 14 Waterbury Companies . . . . 69 WD-40 . . . . . . . . . . . . . . . . 69 Weleda North America . . . 57 Wet n Wild . . . . . . . . . . . . . 69 Whole Foods . . . . . . . . . . . 14 Yankee . . . . . . . . . . . . . . . . . 69 Yes To Carrots . . . . . . . . . . . 57 Yunnan Baiyao Group . . . . 40 Zep . . . . . . . . . . . . . . . . . . . 69 Zotos International . . . . . . 24

July 2011

News Front

US BEAUTY SALES RISE IN FIRST QUARTER The face, sun care, and gift set segments were key drivers in the growth of prestige skin care. “Now more than ever, as the beauty consumer evolves and channel shifting continues, the Beauty Cross Channel Monitor is a valuable resource for understanding beauty trends across the prestige and mass markets,” said Victoria Gustafson, vice president, beauty vertical, SymphonyIRI Group.“Capitalizing on the dynamics between these channels is a critical component to maximizing brand strategies.”

 More info: www.npd.com/index.html, www.SymphonyIRI.com

Americans Have Access To Plastic Bottle Recycling

Total US beauty sales in prestige and FMDx channels were up in Q1 2011.

• Beauty is back, according to market research providers The NPD Group and SymphonyIRI Group. The pair announced the first quarter 2011 results of their partnered product, the Beauty Cross Channel Monitor, the beauty industry’s only point-of-sale tracking product that looks at sales performance in department stores (prestige) and the food, drug, and mass market, excluding Walmart (FDMx). Total US beauty sales in the prestige and FDMx channels are trending similarly in first quarter 2011, up 5% and 4%, respectively. Makeup sales, while also trending similarly, tell a slightly different story with FDMx faring better than prestige due in part to the double-digit sales gain in the $127 million nail segment. “Despite the current economic situation, the beauty industry continues to trend upward showing growth for the fourth consecutive quarter in both the food/drug/mass and prestige channels,”said Diane Nicholson, president, beauty, The NPD Group.“After a positive, yet cautious 2010, it’s encouraging to see consumers continue to embrace newness and innovation in the beauty space.” According to NPD’s Economy Tracker, 35% of consumers planned to maintain or increase their spending in cosmetics and fragrances for the first quarter of 2011, up two percentage points from last year. This is despite the fact that consumers are also dedicating a larger percentage of their wallets to gas and groceries, as prices of these categories rise.

 In fragrance, the prestige market (roughly five times larger than FDM) grew 6% during the first quarter of 2011 versus flat sales in the FDM sector. The increase in prestige fragrance is due to the positive performance in top existing brands, as well as strong sales from 2010 introductions, according to NPD and SymphonyIRI.

 Conversely in skin care, FDM is triple the size of the prestige channel, yet prestige is trending better, up 6% versus 3% in FDM. 14 • happi

• A study released by Moore Recycling Associates Inc.— sponsored by the American Chemistry Council (ACC)—has found that a much larger portion of the US population has ready access to recycle commonly used plastics than previously believed. Researchers found that 94% of Americans have access to recycle plastic bottles and 40% of the population also can recycle other types of plastic containers, such as yogurt cups, dairy tubs and lids. Although the study surveyed nearly 2,500 US communities, it

happi.com

A study released by the American Chemistry Council suggests that it is more effective to communicate which plastics are recycled in various communities by listing shapes (e.g., bottles, tubs, trays, lids, etc.) than by listing resin codes.

July 2011

News Front

found that within the 100 largest cities, the percentage of the population with access to recycle plastic containers in addition to bottles has nearly doubled since 2008. ACC sponsored this study as part of a cooperative effort with the Sustainable Packaging Coalition, a project of the nonprofit GreenBlue, which is working to launch a new voluntary labeling system for the recycling of packaging. The study also noted that it is more effective to communicate which plastics are recycled in various communities by listing shapes (e.g., bottles, tubs, trays, lids, etc.) than by listing resin codes. More info: http://plastics.americanchemistry.com/recycling

Pucker Up! Prestige Lipcolor Sales on the Rise • Prestige lip segment (lipcolor, liner, gloss and applicators)

Crystal Ball Dispenser Caps Easy open and close Looks good on many containers Push-pull or non push-pull Variety of colors 24/410 neck finish Call for other caps & closures

sales grew 7% to $185.2 million in US department stores and 4% in units to 9.8 million from January through April 2011. The real star of the segment was lipcolor, as dollar sales rose 11% ($92.1 million), compared to January through April 2010, according to The NPD Group, a Port Washington, NY-based market research firm. After almost a decade of declining sales, lipcolor sales began to grow again last year. Since February 2010, lipcolor has experienced 15 months of steady dollar growth, with seven of those months posting double-digit increases, including April 2011 (+30%), noted NPD. Last year’s results marked the first time since 2002 that lipcolor unit sales increased (8%) the highest increase since 1998. “What is particularly noteworthy of the trend in lipcolor is that we are seeing these significant increases in sales at a time when overall usage of lipcolor appeared to be dropping off. Coming out of the recession, it seems that the consumer’s thirst for color and play was reawakened,” said Karen Grant, vice president and senior global industry analyst, The NPD Group.“In 2010, we saw the preference for rich as well as retro colors and in 2011 we are seeing new neutrals come to the fore. As the fashion industry increasingly features bold as well as understated lip statements on the runway and in advertisements, lipcolor appears to be getting its groove back.” According to NPD Group/Beauty Trends, MAC rules the roost in the category, Here is the list of the best-selling lip color (dollars sold) January-April 2011. 1. MAC Lipstick 2. Lancôme L’Absolu Rouge 3. Clinique Long Last Soft Shine Lipstick 4. Estée Lauder Pure Color Lipstick New 5. Chanel Rouge Coco Shine More info: www.npdgroup.com

Global Green Brands Study Finds Packaging Matters with US Consumers

• According to findings from the annual ImagePower Global Green Brands Study, when it comes to current usage of green products or services, the household products and grocery categories have the highest consumer adoption rates in all countries July 2011

happi.com


-JODPMO
"WF

t

1BTBEFOB
$"
 JOGP!QFBSDFQMBTUJDTDPN

t

XXXQFBSDFQMBTUJDTDPN

626-797-8481 happi • 15

News Front

except China, where packaged goods/beverages and personal care are the most used categories, and in Brazil, where household products and personal care dominate. In all countries, consumers indicate that in the coming year they are less likely to buy green packaged goods and beverages, grocery and household products. According to the study, while personal care, grocery and household products are the industries with the greatest representation among the top 10 brands list, consumers in the US indicate that they intend to spend more on green technology, energy and automotive products or services in the next year. The seventh annual Green Brands study polled more than 9,000 people in eight countries—including the US, UK, China, Brazil, India, Germany, France and Australia—and was conducted by WPP agencies, Cohn & Wolfe, Landor Associates and Penn Schoen Berland Associates (PSB), as well as independent sustainability strategy consulting firm Esty Environmental Partners. “We’re seeing a shift in the ‘In Me, On Me, Around Me’ mentality when it comes to purchasing green products,” said Russ Meyer, chief strategy officer of Landor Associates.“Consumers have a good understanding of how green choices in personal care, food and household products directly affect their families, and they are now seeing benefits like cost savings that attract them to higher cost items like cars and technology.” Consistent with last year’s study, more than 60% of consumers globally want to buy from environmentally responsible companies. Respondents in all eight countries surveyed indicate that they are willing to spend more on green products. In developed countries such as the US and the UK, roughly 20% of those surveyed would spend more than 10% extra on a green product. In developing countries, however, consumers say that green products have a higher inherent value, as 95% of Chinese consumers say they are willing to spend more on a product because it’s green—with 55% of them willing to spend between 11-30% more. Similarly 29% of Indian consumers and 48% of Brazilians say they are willing to spend between 11-30% more on green products. Packaging continues to be a matter of great concern for US consumers. According to the report, 71% of respondents said companies use too much material in product packaging—though only

16 • happi

LEADING US GREEN BRANDS

F

since the inception of the ImagePower Green Brands Study in 2006, the four brands perceived to be the greenest are “born green” companies. The full list includes: 1. Seventh Generation 6. The Walt Disney Company 2. Whole Foods 7. S.C. Johnson 3. Tom’s of Maine 8. Dove 4. Burt’s Bees 9. Apple 5. Trader Joe’s 10. Starbucks, Microsoft (tied) “When we analyzed the approach of the top 10 brands companies, using our Esty Environmental Scorecard, it was clear that the winners achieve a product-value-information trifecta,” said Amy Longsworth, partner at Esty Environmental Partners. “The top brands offer clear price value through co-benefits: a great innovative product that meets my functional needs plus green attributes that meet my values needs. These companies also tend to have robust life-cycle insight and complete sustainability strategies across their value chains, which enable them to draw from rich experience and data for their consumer communications.” OR THE FIRST TIME

34% of US consumers say they consciously purchase products that use less packaging. Almost half of Americans feel that packaging that can be recycled is more important than packaging made from recycled or biodegradable materials. Packaging also plays a critical role in communicating product benefits to US consumers. More than 50% of Americans say onpack information helps them understand a product’s “greenness.” Additionally, 40% say that packaging is their primary source for information on environmental issues regarding products. “Other than price, the two biggest influences on purchase decisions are on-package messaging and prior experience with the product, both of which satisfy the consumer need to understand a benefit beyond ‘saving the world,’”said Annie Longsworth, global sustainability practice leader for Cohn & Wolfe. “It’s critical for green brands to communicate the real and tangible benefits of their products in addition to being green, which still feels like luxury to many consumers.” More info: www.cohnwolfe.com

happi.com

July 2011

News Front

Perception v. Reality In Sustainability

•Brandlogic, in partnership with CRD Analytics, has released the inaugural version of its “Sustainability Leadership Report: Measuring Perception v. Reality,” a report which provides quantitative analysis of actual, versus perceived, performance around environmental, social and governance (ESG) factors for 100 leading companies. One of the key findings in the report is the large number of firms—66 in total—whose perceived performance exceeds their actual performance. To generate raw data for the Sustainability Perception Score (SPS) index, the survey asked a series of questions related to ESG factor, including equality, business ethics, resource management and environmental impact, and commitment to measuring and reporting corporate ESG performance. For each statement, respondents were asked to rate up to seven companies on a five-point scale indicating how well the statement described the company. As with the SRS, separate environmental, social and governance indicators were calculated, then weighted using regression analysis and aggregated to generate the total SPS. The report provides a framework that plots each of the 100 companies across four quadrants: Challengers, Leaders, Laggards and Promoters. How did HBA and household care and related companies fare? Here are a few that were listed in the 100 “prominent” brands analyzed in the report: • Johnson & Johnson 54.8 59.0—Leader • Colgate-Palmolive 54.3 48.7—Leader • Henkel 54.3 46.6—Leader • L’Oréal 45.3 57.3—Challenger • Avon 45.0 5.3—Laggard • Nivea 45.2 34.7—Laggard • Tesco 39.6 37.6—Laggard • Walmart 38.6 35.4—Laggard In the study, when asked about the importance of good corporate citizenship in respondents’ decision making, an overwhelming majority (88%) state that it is “important.” In fact, almost half (45%) view it as “extremely important.” July 2011

“We want the 100 companies, as well as firms who were not analyzed, to look at the report and ask key questions about any reputational risks they may be facing and identify potential opportunities for improvement,” said Brandlogic’s senior partner of strategy

and research James Cerruti. “Our goal is to help companies achieve results by better aligning their branding, communications, reporting and stakeholder engagement processes around these emerging priorities.” More info: www.brandlogic.com •

Pick Your Perfect Partner

We know how it is. Youʼre looking for the right fit, a supplier thatʼs easy to work with, flexible. A company that knows how to give you what you need, when you need it. One that listens, responds, problem-solves. You wonder…is that too much to ask? Then you work with Ruger, and realize youʼve found The One. You start to think about the possibilities, resolving issues, reducing risk, all the exciting things you can accomplish together. Suddenly everything seems clear, and you know that youʼll never work alone again. Ingredient Sales • Repackaging • QC • Documentation

Ruger Chemical Co., Inc. 800.274.7843 www.rugerchemical.com

happi.com

We get what you need.

®

happi • 17

Formulary

BROAD SPECTRUM SPF~32, PFA (PPD)~16 SUNSCREEN LOTION SPRAY The HallStar Company 877-427-4265, 312-385-4494 Fax: 908-852-1335 Email: [email protected] Website: www.hallstar.com

or lower, very slowly add phase H. Continue mixing for 20 minutes. Replace any water lost to evaporation and mix until smooth. When at desired filling temperature, stop cooling and mixing, perform final quality assurance checks, and package product. PROPERTIES: Appearance—Off-white fluid liquid; pH—5.9; Viscosity (RV, T-D, 5, 20 & 100 rpm; cP)—3600, 1600 & 500.

INGREDIENTS WT.% Phase A Water (aqua) (deionized) 39.55 Phase B Versene NA (Dow Chemical) (Disodium EDTA) 0.05 Phase C Rhodicare XC (Rhodia Novecare) (Xanthan gum) 0.15 Phase D Diocide (Centerchem) (Caprylyl glycol, 0.50 phenoxyethanol, hexylene glycol) Superol K Glycerine 99.7% USP/FCC Kosher 4.00 (P&G Chemicals) (Glycerin) Phase E Homosalate [Homosalate] 7.50 Ethylhexyl salicylate [Octisalate] 5.00 Neo Heliopan 303 (Symrise) (Octocrylene [octocrylene]) 2.75 HallBrite BHB (HallStar) (Butyloctyl salicylate) 5.00 HallBrite PSF (HallStar) (Undecylcrylene dimethicone) 3.00 Finsolv TN (Innospec) (C12-15 alkyl benzoate) 8.00 Phase F Parsol 1789 (DSM Nutritional) (Butyl 3.00 methoxydibenzoylmethane [avobenzone]) Neo Heliopan BB (Symrise) (Benzophenone-3 [oxybenzone]) 6.00 Phase G Ceralution ES (Sasol) (Ceteareth-25, disodium ethylene 3.00 dicocamide PEG-15 disulfate Cosmacol ECL (Sasol) (Tri-C14-15 alkyl citrate) 1.50 Ganex V-220 (ISP) (VP/Eicosene copolymer) 1.00 Phase H Avicel PC 611 (FMC) [4% aqueous dispersion] 10.00 (Microcrystalline cellulose, cellulose gum)

BB Illuminating Foundation Veil SPF 15, UVA-PF/SPF > 1/3

BASF Tel.: 973-245-6398 Email: Sabine Malley, [email protected] Website: www.basf.com INGREDIENTS WT% Phase A Montanov 68 (Seppic) (Cetearyl alcohol 2.00 (and) cetearyl glucoside) Montanov 202 (Seppic) (Arachidyl alcohol (and) 2.00 behenyl alcohol (and) arachidyl glucoside) Isopropylpalmitat (BASF) (Isopropyl palmitate) 5.00 Cutina FS 45 (BASF) (Stearic acid (and) palmitic acid) 1.00 Uvinul A Plus B (BASF) (Ethylhexyl methoxycinnamate 10.00 (and) diethylamino hydroxybenzoyl hexyl benzoate) Tinosorb S* (BASF) (Bis-ethylhexyloxyphenol 1.00 methoxyphenyl triazine) Phase B Water q.s. 100 Butylene glycol (Fluka) 5.00 Keltrol RD (CP Kelco) (Xanthan gum) 0.20 Flamenco Satin Pearl 3500 (BASF) 3.80 (Mica (and) titanium dioxide) Cloisonné Satin Gold 262MC (BASF) (Mica (and) 3.00 titanium dioxide (and) iron oxides) Product formulas are supplied by producers of raw materials. Included in some instances are sources of supply for the raw materials and instructions for

PROCEDURE: Add phase A to main vessel, start center-stir (prop) mixing, and add phase B. When dissolved, add phase C and mix until fully incorporated. Start heating to 70°C, and add preblended phase D. To a secondary vessel add phase E and start mixing. Add phase F and heat to 70°C. Add phase G in order. When both are at 70°C and homogeneous, add oil phase (phases E-G) to water phase (phases A-D) with stirring. Mix for five minutes, start cooling and homogenize until batch reaches 55°C. Resume sweep mixing with continued cooling. At 50°C 18 • happi

preparation and use of the finished product. No guarantee of performance or safety is implied by HAPPI. For more complete details, readers should contact the suppliers directly using the telephone number or website provided with each formula. If your company has a formula that you think would be of interest to readers of HAPPI, marketers of soaps and detergents; cosmetics and toiletries; fragrances; waxes and polishes; disinfectants and sanitizers and other chemical specialties, we will be pleased to consider it for publication. Address all material to: Formulary Editor, HAPPI, 70 Hilltop Rd., Ramsey, NJ 07446 USA; Email: [email protected].

happi.com

July 2011

Formulary

Cloisonné Satin Rouge 450M (BASF) (Mica (and) iron oxides) Phase C Dow Corning 1503 Fluid (Dow Corning) (Dimethicone (and) dimethiconol) Preservative Dry-Flo PC (National Starch) (Aluminum starch octenylsuccinate) D-Panthenol (BASF) (Panthenol) Vitamin E-Acetat (BASF) (Tocopheryl acetate)

0.20

3.00 q.s. 2.00 1.00 0.50

Safflower oil (Jeen) (Carthamus tinctorius (safflower) seed oil) Coconut oil (Jeen) (Cocos nucifera (coconut) oil) Jeechem CTG (Jeen) (Caprylic/capric triglyceride) Phase B Jeecide CAP-5 (Jeen) (Phenoxyethanol, caprylyl glycol, potassium sorbate, water, hexylene glycol)

Arizona Chemical Tel: 904-928-8718 Email: [email protected] Website: http://[email protected] INGREDIENTS Phase A Finsolv TN (Innospec) (C12-15 alkyl benzoate) Nikkol TOC (Nikko Chemical) (Triethylhexyl citrate) Permethyl 99A (Presperse) (Isododecane) Phase B Sylvasol 80-E70 (Arizona Chemical) (Alcohol denat. and polyamide-3) Fragrance (Various)

WT.% 65.20 7.00 17.00 6.80 4.00

PROCEDURE: Combine phase A raw materials one at a time and mix until uniform. Premix phase B and add to phase A and mix until uniform. PROPERTIES: Fragrance used is Wellington Fragrance Lavender Rose.

Jeesperse CPW-S Natural Hydrogel Formulation 11- 38NJM

Jeen International Corp. 800-771-JEEN (5336) • Fax: 973-439-1402 Email: [email protected] • Website: www.jeen.com INGREDIENTS WT.% Phase A DI water 76.0 Jeesperse CPW-S (Jeen) (Sunflower wax, sodium) 6.00 Shea butter (Jeen) (Shea (butyrospermum parkii) butter) 5.00 20 • happi

5.00 5.00 1.00

PROCEDURE: Mix phase A at room temperature. Add phase B and mix until homogenous. PROPERTIES: This product passed 4 months stability test.

PROCEDURE: Heat up phase A to 80°C. Heat phase B to 80°C, mix well. When both phases are homogeneous, add phase A into phase B under high speed stirring to get an homogeneous emulsion. Cool down then add the ingredients of phase C. PROPERTIES: pH value—5.5-6.0; SPF in vivo—18.8. Note: *Tinosorb S and Tinosorb S Aqua not yet available in the US.

Lavender Rose Body Spray

2.00

Red Expressions Shampoo Rhodia Tel: 888-776-7337, 215-781-6364 Website: www.rhodia.com

INGREDIENTS WT.% Phase A Water carrier q.s. to 100 Versene 100 (Dow) (Tetrasodium EDTA) 0.05 Jaguar C-17 (Rhodia) (Guar hydroxypropyltrimonium 0.35 chloride) Miracare SLB365/N (Rhodia) (Sodium trideceth sulfate, 45.00 sodium lauroamphoacetate, cocamide MEA) Helianthus annuus (sunflower) seed oil 3.00 BHT 0.05 Unipure Red LC (Sensient) 0.40 (CI 15850, triethoxycaprylylsilane) Fragrance q.s Sodium chloride 3.00 Sodium benzoate 0.50 Citric acid (50% soln.) q.s. PROCEDURE: Charge water into main vessel. Add Versene 100 and mix until homogenous. Slowly sift Jaguar C-17 and mix until completely dispersed and uniform. Add Miracare SLB365/N and start mixing at low speed (150 rpm approx) in order to properly structure the system and minimize the air entrapment. Mix for 15 min. In a separate vessel, blend sunflower oil, BHT and Unipure Red LC. Mix until uniform. Add oil phase to the main batch and increase the mixing rate slightly (5 min at 300 rpm). Once completely dispersed, bring back the mixing rate to 150 rpm. Add fragrance to the batch and mix until uniform. Charge sodium chloride into main vessel and mix until uniform and homogenous. Add sodium benzoate to the batch and mix until homogenous. Add citric acid (50%) to adjust pH 4.5-5.0. PROPERTIES: Appearance—Red “lotion-like” and semi-viscous shampoo; Brookfield Viscosity at 25°C—15,000 – 25,000 cps (RVT, Spindle#4, 10 rpm); pH @ 25°C—4.5 – 5.0; and Storage-Stability—Stable for 3 months (45°C ; 4°C). •

happi.com

July 2011

A Salon START, Microsil FINISH.

When formulating premier salon hair conditioners, it’s not about the start, at Chemsil Silicones, it’s all about the FINISH. Microsil® FINISH our newest hair care raw material is designed to create salon brand exquisite hair conditioners and treatment products. Our unique raw material compound is a clear, cationic, aqueous micro emulsion containing a combination of cationic hindered amine silicone and superior organic cationic quaterniums. It was designed for ease of formulation with the simple addition of fatty alcohols (<5%). Microsil® FINISH can also create clear conditioning systems. Microsil® FINISH hair formulas will increase body and volume, while providing silky soft wet comb, dry comb, and brilliant natural shine. Simple formulations containing Microsil® FINISH will create extraordinary results. In order to win, you have to finish….Microsil® FINISH. Chemsil Silicones, Inc., – We Provide Your “Winning” Solutions.

We Provide YOUR Silicone Solutions™

Manufacturer of Specialty Silicones for Cosmetics and Personal Care 877.700.0302 • www.chemsil.com

Patent review

AQUEOUS DISINFECTANTS AND S TERILANTS • US Patent No. 7,935,667 B2; Solutions BioMed, LLC, Orem, UT, has patented an aqueous disinfectant or sterilant composition that is comprised of an aqueous vehicle, including water, peracid and a peroxide, wherein the peroxide includes a peroxyhydrate; as well as a colloidal transition metal or alloy thereof based on the aqueous vehicle content.

Hair Care Composition • US Patent No. 7,947,259 B2; Conopco, Inc., Englewood Cliffs, NJ, has patented a hair care composition in the form of an aqueous shampoo composition comprising anionic surfactants wherein the anionic surfactants are sodium lauryl sulfate and laureth-3-sulfosuccinate; amphoteric surfactant (cocoamidopropyl betaine); nonionic polymer of ethylene oxide wherein the nonionic polymer of ethylene oxide is PEG-180M; nonionic cellulose ether based wherein the nonionic cellulose ether is hydroxypropyl methyl cellulose with viscosity of 4,000 mPa·s; cationic polymer wherein the cationic polymer is guar hydroxypropyl trimethylammonium chloride; and conditioning agent wherein the conditioning agent is an emulsion of dimethiconol. The compositions comprising both nonionic polymer of ethylene oxide and nonionic cellulose ether have enhanced wet slippery feel and ease of rinse compared to use of identical composition where only one of the two nonionic polymers is used.

SC Johnson Patents Stain Neutralizer

US Patent No. 7,947,640 B2; S.C. Johnson & Son, Inc., Racine, WI, has patented a method of neutralizing a stain on a surface. It entails applying a first effective amount of a composition to a stain on a selected surface to affect a color change thereon, the composition comprising a liquid carrier and particles, the particles comprising a homogeneous mixture of a first

•

22 • happi

additive and at least one polymer selected from the group consisting of a polyolefin, a polyurethane, an acrylic, an acrylate, a polyamine, a polyamide, a polyamid, a polyimide, a polyether, a polystyrene, a polycarbonate, polysulfone, a polyester, a polyalkyleneoxide, a polysiloxane, a polysulfide, a polyethyleneimine, a cellulose, a wax, a paraffin, a phenolic, an elastomer, a vinyl, a hot melt adhesive, a hydrophilic polycarbodiimide, a polysaccharide aldehyde derivative, a bismaleimides, a silicon, a soya oil, a linseed oil modified alkyd, a copolymer, a homopolymer, and mixtures thereof. The composition is then allowed to dry on the surface to attach the particles to the surface, neutralizing the stain on the surface by removing the attached particles from the surface. After removing the attached particles from the surface, if a residual stain material remains on the surface, masking the residual stain material on the surface by applying a second effective amount of the composition to the residual stain material and applying heat or a chemical to the second effective amount of the composition to durably affix the composition to the surface.

Spray-Drying Process For Detergent Powder

• US Patent No. 7,947,642 B2; Procter & Gamble has patented a spray-drying process for preparing a spray-dried detergent powder having a bulk density of approximately 50-325g/l. It is comprised of preparing an aqueous slurry suitable for spray-drying comprising water and non-aqueous material comprised an anionic surfactant, a polymeric carboxylate and a carbonate salt; and spraying the slurry into a spray-drying tower. The spray-dried detergent powder is essentially free from zeolite and silicate salt.

Dryer Sheets Patented By Wausau Paper Mills

• US Patent No. 7,947,644 B2; Wausau Paper Mills, Mosinee, WI, has patented a happi.com

single-ply dryer sheet that is comprised of a nonwoven substrate that is made of a mixture of wood fiber and regenerated cellulose fiber and a fabric conditioning agent provided on the nonwoven substrate. At least a portion of the fabric conditioning agent transfers from the nonwoven substrate to the laundry once the temperature within the tumble-type dryer is greater than approximately 120°F.

Reducing Malodor In Permanently Waved Hair

• US Patent No. US 7,955,593 B2; Zotos International, Inc., Darien, CT, has patented an odor-reducing post treatment composition for application to permanently waved hair immediately after removal of a neutralizer. The composition consists of a hair fixative agent comprising polyquaternium-7, a conditioning agent comprising dimethicone and tallow trimonium chloride, a hair strengthening complex comprising hydrolyzed vegetable protein PG-propyl silaneriol, a fragrance blend (wherein the fragrance blend comprises 4 methyl-4(methylthio)-2-pentanone, at least one component having a log P ranging between about 1 and 3, and at least two components having a log P greater than 4.0), chelating agent, anti-static agent, preservative, solubilizer and water.

New Antimicrobial Composition

US Patent No. 7,955,610 B2; A US patent has been awarded to the National Science and Technology Development Agency, Prathumthani; and Nonami Science (Thailand) Co., Ltd., Bangkok, Thailand, for a topical antimicrobial composition. It is comprised of a photocatalyst mixture containing titanium dioxide, sodium perborate, magnesium silicate and citric acid; a pharmaceutically acceptable carrier; and a pH range from 4-6. The composition is effective as an antimicrobial under visible light. •

•

July 2011

The choice for all of your testing needs.

We are Consumer Product Testing Co., Inc, a full 35 years service independent laboratory with over 30 of experience. Leading companies in the cosmetic, personal care, pharmaceutical, medical device and specialty chemical industries have come to depend on us. Critical evaluations in the fields of chemistry/ stability, microbiology, clinical safety and efficacy, photobiology (SPF) and preclinical safety are routinely provided. Our technical staff is available to discuss scientific and regulatory issues in a timely and user friendly fashion. So check us out – you’ll never choose another.

CONSUMER PRODUCT TESTING COMPANY 70 New Dutch Dutch Lane, Lane, Fairfield, Fairfield,NJ NJ07004-2514 07004-2514 Tel: 973-808-7111, Fax: 973-244-7535 Tel: 973-808-7111, Fax: 973-244-7507 E-mail: [email protected]

FDA

DEA

EPA

USDA

GMP/GLP/GCP

Conception to Completion

www.cptclabs.com

International

KAO OPENS ECO-TECHNOLOGY RESEARCH CENTER •JAPAN: Kao Corporation has completed construction of the Eco-Technology Research Center (ETRC) and the Kao Eco-Lab Museum at its Wakayama Plant. The ETRC has three research facilities with an approximate aggregate floor area of 23,000 square meters, making it the largest scale among Kao’s research facilities in the country. The facilities include a seven-story ETRC Main Building, which is the heart of the research center and also houses the Kao Eco-Lab Museum; the Pilot Research Building for research into scaling up product manufacturing processes; and the Plant Biomass Research Building for research into plant cultivation. A greenhouse in the Plant Biomass Building will cultivate more than 80 species of oil plants, including oil and coconut palms. Learning more about these plants’ life cycles will assist Kao’s research into next-generation plant raw materials.

 Within ETRC, a new organization, EcoInnovation Research Laboratories, has been established to begin eco-innovation research centering on the development of functional materials, according to Kao. Focal research themes include sophisticated use of renewable raw materials such as plant-derived biomass, development of non-edible oil plants, and development of fundamental technologies for water-saving products. Additionally, Kao said it will strive to develop next-generation environmental technology.

 Fire Damages Revlon Facility in Venezuela

•VENEZUELA: Revlon, Inc. said a June 5 fire destroyed a substantial portion of its facility in Venezuela. The company said the facility was not operating at the time of the blaze, and no employees were on site. During 2010, Revlon’s Venezuelan subsidiary accounted for 3% of the company’s consolidated net sales and its total assets 24 • happi

were approximately 3% of the company’s total assets.

Gage of CPL Aromas Is President of British Society of Perfumers

•UNITED KINGDOM:

CPL Aromas perfumer Tim Gage has been elected president of the British Society of Perfumers (BSP). “I feel flattered to have been elected to the position of president. I’m looking forward to serving the BSP for the next 12 months and maintaining the high standards set by my predecessors,” said Gage. Gage’s first job in the industry was as a perfumer’s assistant at Bush Boake Allen almost 27 years ago and has been working at CPL Aromas for nine years. CPL Aromas, which celebrates its 40th anniversary this year, has an established tradition of supporting the BSP. The company’s first chairman, Jack Pickthall, was a founding member of the BSP, and later became one of its few honorary members.

La Roche-Posay Earns Public Education Award

•CANADA: On June 1, La Roche-Posay launched its official Facebook page as the second part of an online public health campaign developed to educate Canadians about the risks and causes of skin cancer. Now in its second summer of operation, the campaign was awarded the Public Education Award from the Canadian Dermatology Association. More info: www.myskincheck.ca Rhodia, Sibur Form Surfactants JV in CIS

•FRANCE: Rhodia and Sibur, a Russian petrochemical company, have signed a letter of intent to create a joint venture in specialty surfactants. This strategic alliance will focus on creating a leader in the CIS market where spehappi.com

cialty surfactants are widely used in home and personal care as well as the oil and gas industries, according to Rhodia. The evolution of consumer demand for more sophisticated and segmented products, such as shampoos, conditioners, shower gels, and laundry and household detergents, and the need for high performance solutions in oil and gas extraction fields are driving volume growth of specialty surfactants in the CIS region. Rhodia will provide its expertise in surfactant technologies, its knowledge of formulations and market applications and its customer network, including global key accounts with a strong presence in this region. Sibur will contribute its raw materials, production and logistics capabilities. With its longstanding experience of the Russian petrochemicals market, Sibur will also support the development of the surfactants business in oil and gas markets in Russia and the CIS. It is expected that the new 50-50 joint venture will source local production in Russia at Dzerzhinsk, near Sibur’s petrochemicals operations outside of Moscow. The site is expected to be operational in 2013. “This strategic partnership is a key step in our development in the dynamic surfactants market in the CIS and Eastern Europe,” commented Christophe Clemente, Rhodia Novecare’s vice president Europe.

Pure Bioscience Ships Disinfectant to South Africa

•SOUTH AFRICA: Pure Bioscience, Inc. has shipped an initial order of SDC-based disinfectant products for distribution in South Africa by BioCare Products (Pty) Ltd., a local distributor. “Our paradigm-shifting technology has grabbed the attention of government and industry leaders in South Africa,” said Tom Myers, executive vice president, sales and marketing at the company. • July 2011

sensiva® PA 20 purely sustainable

t
Synergistic blend of phenethyl alcohol and ethylhexylglycerin t
Antimicrobial stabilizer blend t
Effective against odor-causing bacteria t
Mild humectant t
Applicable in a wide variety of cosmetic products Let us make your product sensational. Go to schulke-us.com/Happi0711 for more. schülke inc. | Mt. Arlington, NJ | USA | Tel. 1-973-770-7300 | Toll-free 1-888-267-4220 | [email protected] Schülke & Mayr GmbH | 22840 Norderstedt | Germany | Tel. +49 40 521 00- 0 | www.schuelke.com | [email protected]

Marketing News

MALIBU C GETS IN THE SWIM WITH US WATER POLO SPONSORSHIP our eco-conscious, ingredient-savvy customer,” said Shannon Petree, Walgreens divisional vice president and general merchandise manager for beauty. “Natural skin care is not a passing trend. Today’s beauty shopper wants to feel good about the products she uses while receiving the results she expects.” The Skin by Monica collection offers more than 52 skin and hair care products, which are all free of parabens, urea, alcohol and petroleum. The products are organic and 100% natural, made with vitamins and minerals from the earth, packaged in eco-friendly materials and never tested on animals, according to the company.

• Dr. Bronner’s Magic Soaps has embarked on one of the

Malibu C will offer hair-helping products to the US Water Polo teams.

• Malibu C is now the official hair care provider of US Water Polo—a fitting roster of athletes who feel the effects of extended hours in the pool, namely dry hair that’s discolored, brittle and flaky. As part of the sponsorship, Malibu C will offer the men’s and women’s teams with hair-helping products and educational opportunities related to improved hair care. In addition, a percentage of the profits will go to the National Team programs. Consumers will have the option of allocating the proceeds of their purchases to either team or to the US Water Polo General Fund. More info: http://malibuc.com

• Fusion Brands Inc., in partnership with Sony Pictures, and CBS Consumer Products, has launched Jabot Cosmetics, one of the first fictional beauty brands to become available for purchase to consumers. Inspired by the beauty company portrayed on daytime TV’s Emmy award-winning and No. 1 rated series,“The Young and the Restless,” Jabot color cosmetics, advanced scientific skin care and luxurious fragrances, formulated to give fans and women access to Hollywood’s backstage beauty secrets, according to Fusion Brands. The face of the brand is Tracey E. Bregman, one of the most popular stars on the show. More info: www.ShopJabot.com, www.hsn.com

• All-natural skin care range Skin by Monica Olsen is expanding its distribution and will be available in Walgreens in August. The range incudes products from skin care to hair care to ingestibles. “We are pleased to bring another innovative beauty brand to 26 • happi

more imaginative“edutainment”tours ever attempted—it is taking a giant bathtub, a psychedelic fire truck and its fair trade organic soap to wash tens of thousands of festival-goers up and down the West Coast. David Bronner, president of the 63-year-old brand, calls the tour an “interblastive foam experience.” Participants lucky enough to stumble upon Dr. Bronner’s AllOne Ark at their favorite summer music festival will be treated to a spa experience in which they can blast foam on themselves and their friends made out of Dr. Bronner’s fair trade and organic soap. And the All-One Ark is ecologically friendly too as the foam blast uses only a fraction of the water compared to a normal shower. At most events The All-One Ark will be joined by the Dr. Bronner’s All-One Kitchen, which serves fair trade organic vegan food made with Dr. Bronner’s newly, launched virgin organic coconut oil. More info: www.ALLONEArk.com, www.facebook.com/alloneark

• Consumer Reports tested stain treatments applied before laundering, and is reporting its findings in the July issue. Each stain treatment was evaluated for its effectiveness on coffee, blood, wine, sebum, motor oil and grass. CR’s “Best Buy” is Resolve Laundry as it netted the top score and worked well on all the stains. Shout Advanced Action was almost as good and can be applied up to a week before laundering. It worked well on all stains but wine, according to the report. For its tests, Consumer Reports technicians took swatches of stained polyester/cotton fabric, applied the same amount of each stain cleaner, let the swatches sit for five minutes, and then washed them in a mediocre detergent. For comparison, they also washed the stained swatches in a highly rated detergent, using no pretreatment. Unfortunately for Reckitt Benckiser, the lowest-scoring treatment was also a Resolve product: Resolve Foaming Aerosol Laundry. It only worked well on removing motor oil, according to the magazine.

happi.com

July 2011

Marketing News

Most laundry pretreatments do help somewhat, according to the publication. The top products, including Fels Naptha (which was made into a paste using one part Fels to four parts water), worked better than detergent alone. Scrubbing will probably improve stain removal but may also damage fabrics. Nature’s Source Natural and Green Works Natural only did a good job on a couple of the stains, according to the report.

• Gain has launched the “Smell Like a Million Bucks Contest” to give people across the country a chance to win one million dollars, turning one lucky winner’s dreams into a reality. To help spread the word about the contest, Gain enlisted the help of rock band Barenaked Ladies, largely known for its hit“If I Had a Million Dollars.” In fact, the band has rerecorded a new version of the song, which includes lyrics inspired by the dreams and wishes of Gain fans. “Gain reached out to us, and said they’d like to have some fun with our song, ‘If I Had a Million Dollars,’and wondered if we’d like to help them give some lucky person Gain has kicked off its Smell Like a million dollars! That sounded a Million Bucks Contest. pretty fresh,” said Ed Robertson, lead vocalist of Barenaked Ladies. The release of “If I Gained a Million Dollars” coincides with the launch of the Smell Like a Million Bucks Contest, which celebrates the amazing, fresh scent of Gain laundry products and their ability to make you smell like a million bucks. To listen to the new song and view video footage shot during its recording, consumers can visit Gain’s Facebook page at www.Facebook.com/Gain.

• Coinciding with the rollout of its new Axe Hair Axe Buzzed Look Cream + SPF 15, the Unilever brand is making $50,000 donation to the Wounded Warrior Project, a non-profit organization that honors and empowers wounded military personnel. The buzz cut—a classic military look that’s made a pop-culture comeback—presents a unique challenge to guys looking to protect their scalp without the oily, greasy feel that a traditional sunscreen can leave. The new cream with SPF 15 provides UVA/UVB protection to protect scalps. “Over 44,000 of our nation’s armed forces have been physically wounded during the current military conflicts and hundreds of thousands more are estimated to be recovering from the invisible wounds of war,” said Adam Silva, chief development officer of Wounded Warrior Project. “Axe Hair’s contribution will fund pro28 • happi

grams that nurture the mind, body and spirit and help returning warriors take on their next challenges here at home.” Guys and girls can “like” Axe’s Facebook page to show their support of Axe Hair’s contribution to Wounded Warrior Project, according to the company.

• Garnier is donating $100,000 to clean water charities. The donation marks the culmination of an online program in which Garnier asked consumers to vote for the environmental cause they care about most passionately. Clean Water was the program’s clear winner, receiving 52% of the votes, followed by Recycling and Sustainability with 36% of the votes, and Urban Greening with 12% of the votes. The donation is part of a larger Garnier partnership with EarthShare established in 2010 to proudly support and promote a cleaner, greener future. The donation will be awarded to three deserving EarthShare member charities—American Rivers, Oceana and the Surfrider Foundation—that work to protect public health, rivers and marine environments for the benefit of communities, wildlife and nature.

• Schedulicity, the online appointment booking for small businesses, and NaturallyCurly, a social network for people with curly, kinky and wavy hair, formed a long-term partnership designed to help professionals who work with curly hair grow their business and to help consumers connect with stylists and salons who specialize in curly hair care. Schedulicity is the leading online appointment booking solution for small businesses. To date, more than 4 million appointments have been booked through Schedulicity in more than 1,900 cities across the US and Canada. More info: www.schedulicity.com

• According to Avon Products, more than 1.7 million votes have been cast in round one of Avon Voices, the beauty company’s inaugural global online singing talent search. Culminating later this Fall, up to 10 Global Finalists will join Avon Voices celebrity judges to record an anthem written by Diane Warren that will debut live at the Avon Foundation for Women Annual Gala in New York City, and be available for purchase in certain countries. At the Gala, two Avon Voices winners—one an Avon Representative— will be announced, and will receive an opportunity to record a professionally produced album. More info: www.AvonVoices.com Kerr Drug stores across North Carolina are stocking the Razorpit, a Danish-designed device that uses a friction-based method to remove the fine residues of hair, skin and soap that make razor blades dull, extending the life of a razor blade from 10 shaves to 150 shaves. With more $1.76 billion spent on blades alone, Americans are throwing away their cash along with millions of razor blades each year, according to Razorpit. Razorpit is made of recycled TPE, which is a highly stable, inactive material with the proper-

•

happi.com

July 2011

NEW!

GLUCAM ATE ™ THICKEN VLT ER

corn-deriv ed, free from propylene glycol, our mildes Glucamate ™ thickener ye t t.

Marketing News

ties of silicone and rubber. To clean the razor, the blade is simply glided across the surface. More info: www.razorpitusa.com

• Sponsors for the 2011 Miss USA Pageant included footwear and apparel brands as well as a number of beauty and personal care companies—Farouk Systems Inc./CHI (official hair care sponsor), Australian Gold (official sun care sponsor), Rain Cosmetics (official cosmetics sponsor) and OPI (official nail care sponsor).
This year, the Miss USA Pageant celebrated its 60th anniversary. It aired live on NBC on June 19 from the Planet Hollywood Resort & Casino in Las Vegas at the Theatre for Performing Arts. • The 2nd Annual Blackout Awards (BOA) celebrated with CoverGirl’s Queen Collection and a stellar lineup of honorees from all creative walks of life. Hosted by four-time Emmy Award winning makeup artist Karen Dupiche, the June 12 event was created to celebrate the eclectic talents behind the scenes of the entertainment industry. “We are so excited to be celebrating our second year of amazing artists with a widely recognizable beauty brand, CoverGirl Queen Collection, which was inspired by Queen Latifah to cele-

brate the beauty of women of color,”said Yancey Edwards, founder of The Blackout Awards and hairstylist extraordinaire. “Each year we set the bar higher because this award ceremony is about giving back through philanthropy and appreciating the artists who work so diligently.” The BOAs also included a surprise fashion show by 2010 Blackout Award honoree Marco Hall, extraordinary performances, a special CoverGirl Queen Collection VIP Lounge.

• 3LAB has joined forces with The Hudson’s Bay Co. flagship store The Bay to open 22 new counters for 3LAB Skincare. The 3LAB line, which features a wide range of anti-aging solutions that provide immediately visible and long-lasting results, has been enjoying growing success since its launch in Canada three years ago.
 “We are delighted to partner with Canada’s premiere retailer,” commented Erica Chung, co-founder and creator of the brand. “This strategic opportunity to align with such a long established and well respected company will dramatically increase our consumer reach and instantly raise 3LAB’s profile in Canada.”
 • Tiger Balm is sponsoring the 2011 Susan G. Komen Race for the Cure Global, which took place in Washington D.C. on June 4 at

Some people would go to any lengths to diminish the signs of aging.

Unique ingredie nts, found deep in the sea

Marketing News

the Capitol Mall. “Tiger Balm continues to stand with Susan G. Komen for the Cure in support of those whose lives have been touched by breast cancer,” said Kenneth Yeung, founder and president of Prince of Peace Enterprises, Inc., the sole licensed US distributor for all Tiger Balm products.“We are very proud of our involvement in the Global Race for the Cure to help raise awareness of this important cause among fans and users of Tiger Balm products.” Samples of Tiger Balm Neck & Shoulder Rub were distributed to more than 4,000 cancer survivors who participated in the race.

• In celebration of the launch of Degree Women with “motionsense” technology, Degree has launched “Get into the Move,” a Facebook application that rewards users with a chance to win thousands of prizes for ways women already move, whether it’s running errands or running miles, according to the brand. By registering for the Degree Women “Get into the Move” application on Facebook, fans can start earning “motionmiles,” virtual currency redeemable toward chances to win thousands of prizes. These miles are earned for various ways women move, including checking in with Facebook places and logging activities. Consumers can earn miles by going to the gym, taking Zumba or

yoga classes and various other activities like grocery shopping or catching the bus. Fans can also earn them by answering daily trivia questions on the Facebook application, inviting friends to“Get into the Move,” and logging in daily. Fans can use the miles to win instant prizes by spinning the prize wheel or by entering weekly and grand prize sweepstakes. Prizes include a surfing trip in Hawaii, designer shoes, gift certificates for Zumba classes and much more. Fans can also choose to donate the miles in a dollar amount to one of two charities: The Challenged Athletes Foundation and Girls in The Game. To help women earn miles, Degree Women has partnered with dance-fitness company Zumba.

• More than 15,000 stylists have downloaded Redken Style Station app, according to the hair care company. The latest addition to the app showcases the line’s spring/summer formulas. • True Natural Cosmetics’ 100% natural line of sunscreens and self-tanners has been awarded Natural Products Association Certification. With the new certification, all True Natural products will bear the coveted Natural Seal awarded to a select few skin care brands. •

At Lipo®, we call them scientists®. Nobody knows where the next big ingredient is going to come from. But at Lipo, we never stop looking for it. So along with formulating technologies and platforms that help companies use it, our scientists go to great lengths—and depths—to find the next big idea in skincare, haircare and color cosmetics. After all, beauty may be only skin deep, but at Lipo we dare to look beneath the surface.

BEAUTY IS OUR SCIENCE® www.lipochemicals.com

Regulations

MORE TRANSPARENCY FOR HOUSEHOLD PRODUCTS • The Consumer Specialty Products Association, Canadian Consumer Specialty Products Association and American Cleaning Institute have amended their Consumer Product Ingredient Communication Initiative, which initially took effect in January 2010. The update provides increased transparency under one of the most comprehensive ingredient communication consumer product programs in North America, according to the trade associations. Under the initiative, companies are voluntarily sharing with consumers more information than ever about the ingredients in their products (air care products, automotive care products, cleaning products, polishes and floor maintenance products). It requires that all ingredients, except incidental ingredients that have no technical or functional effect in the product, are either listed on the product label; on the manufacturers’, distributors’, or importers’ website; through a toll-free telephone number; and/or through some other non-electronic means. The three associations have amended the program to include the following, which become effective Jan. 1, 2012: • Additional detail on fragrances will be provided, such as a link to the International Fragrance Association list or companyspecific list of fragrance ingredients. • Preservative ingredients will be listed using one of five accepted naming systems. • Dyes and colorants will be listed by the trade name or chemical-specific name using one of the five accepted naming systems. • If a company chooses to provide ingredient information on a website or through a toll-free phone number, the website or number must be listed on the product label. • The CSPA Dictionary is included as an additional option for naming ingredients. These amendments further demonstrate the industry’s commitment to providing consumers with information about product ingredients, according to the groups.

RIFM Study Looks at Fragrance Allergy • The first article from the Research Institute for Fragrance Materials-sponsored, global study on the true prevalence of contact allergy to fragrances, is now available from the group’s website at www.rifm.org. The article,“Design and Feasibility of an International Study Assessing the Prevalence of Contact Allergy to Fragrances in the General Population: The European Dermato-Epidemiology Network Fragrance Study,”Marta Rossi et al., was published in the peer-reviewed journal, Dermatology, in late 2010; 221:267-275. Sponsored by RIFM, the global fragrance study is being conducted by the European Dermato-Epidemiology Network (EDEN). 32 • happi

It is the first time that the true prevalence of contact allergy to fragrances in the general population is being measured on a global scale, according to RIFM. RIFM initiated the study; the Expert Panel endorsed it and EDEN conducted it. The EDEN Fragrance Study is conducted in collaboration with the European Society of Contact Dermatitis (ESCD) and coordinated by the Centro Studi GISED, Ospedali Riuniti di Bergamo. Though mainly supported by RIFM, additional support comes from The Netherlands Institute for Public Health and Environment, and the Foundation of Occupational and Environmental Dermatology. The ongoing study is reviewed by the Expert Panel. The aim of this paper is to report on the methodology and reliability of instrumentation adopted by EDEN and to discuss the feasibility of the study based on the pilot phase that occurred from December 2006 to May 2007. The conclusion was that the global study is feasible and would provide useful and reliable data that would contribute to public health. The European phase of the global study has already been completed and the data is being analyzed. Plans are to start the North American phase in 2012. More info: www.rifm.org or Email [email protected].

New Website Focuses on Antibacterial Soaps • Consumers, researchers and regulators have a new website at their fingertips for fact-based, meaningful information on antibacterial soaps and ingredients: www.FightGermsNow.com. The site is a joint project of the American Cleaning Institute (ACI) and the Personal Care Products Council, which have member companies who produce or supply antibacterial soaps, washes and ingredients. “We are proud to launch FightGermsNow.com as a reliable, fact-based resource on antibacterial soaps and ingredients,” said Brian Sansoni, VP-communications, ACI.“This site contains information on the science behind the safety and effectiveness of these products that are used by millions of Americans every single day.” “Surveys show that a majority of Americans use and benefit from antibacterial soaps on a daily basis, whether it’s in homes, hospitals, restaurants, day care centers, or workplaces,” said Kathleen Dezio, executive VP-public affairs and communications, Personal Care Products Council.“This support remains strong even in the face of a relentless flow of misinformation about these products over the last several years.” FightGermsNow.com contains factsheets on antibacterial soaps and ingredients; information on how these products are regulated; a summary of research and data showcasing their safe and effective use; and news updates and links to relevant articles concerning antibacterial soaps and ingredients. “FightGermsNow.com will be a continuously updated resource

happi.com

July 2011

Regulations

for those individuals interested in having an informed perspective on antibacterial soaps and ingredients,” Dezio said.

FDA Releases Draft Guidance on Nanotechnology

• The U.S. Food and Drug Administration has released draft guidance to provide regulated industries with greater certainty about the use of nanotechnology. The guidance outlines the agency’s view on whether regulated products contain nanomaterials or involve the application of nanotechnology. The draft guidance, “Considering Whether an FDA-Regulated Product Involves the Application of Nanotechnology,” is available online and open for public comment. It represents the first step toward providing regulatory clarity on the FDA’s approach to nanotechnology. Specifically, the agency named certain characteristics—such as the size of nanomaterials used and the exhibited properties of those materials—that may be considered when attempting to identify applications of nanotechnology in regulated products. “With this guidance, we are not announcing a regulatory definition of nanotechnology,” said Margaret A. Hamburg, commissioner of Food and Drugs. “However, as a first step, we want to narrow the discussion to these points.”

For products subject to premarket review, the FDA intends to apply the points contained in the draft guidance, when finalized, to better understand the properties and behavior of engineered nanomaterials. For products not subject to premarket review, the FDA will urge manufacturers to consult with the agency early in the product development process so questions related to the regulatory status, safety, effectiveness or public health impact of these products can be adequately addressed. In 2006, the FDA formed the Nanotechnology Task Force, charged with identifying and addressing ways to better enable the agency to evaluate possible adverse health effects from FDA-regulated nanotechnology products. The agency issued a report by the task force in 2007 that recommended that the FDA issue additional guidance and take steps to address the potential risks and benefits of drugs, medical devices and other FDA-regulated products using nanotechnology. FDA will develop additional guidance documents related to specific products or product categories in the future, as needed. The FDA said it has a robust regulatory science agenda to develop the tools, methods and expertise necessary to evaluate products that contain nanomaterials or otherwise involve the use of nanotechnology. More info: www.fda.gov •

We’re taking a (super)critical look at extract quality

Avatar CPSQ
t
%oX
$IFNJDBM
t
,atakura ChikLBSJO
t
Pilot $IFNJDBM
t
4IJO
EUTV
4JMJcPOFT
t Vege Tech Co
t Vevy Europe

FLAVEX ® Naturextrakte GmbH [email protected] · www.flavex.com

July 2011

happi.com

happi • 33

Gleams & Notions

A WIDE ARRAY OF INGREDIENTS AT NYSCC SUPPLIERS’ DAY

T

HIS YEAR’S

NEW YORK Chapter of the Society of Cosmetic Chemists’ Suppliers’ Day, which was held in May in Edison, NJ, was well attended as usual. Total attendance reached 7,200, an increase of nearly 20% over 2010. The number of exhibitors rose 10% to 330. Suppliers’ Day is always a great chance to visit with old friends and meet new customers. But, of course, it is an also an excellent opportunity to find out more about new ingredients as well. Among the exhibitors was Croda, Edison, NJ, which was promoting the use of Verathix as a rheology modifier and thickener in surfactant systems. In non-sulfate shampoos, 2% Verathix (INCI name: PEG150 Pentaerythrityl tetra stearate (and) PPG2 hydroxyl cocamide (and) water) will produce good viscosity results, but more thickener is needed in traditional sulfate formulations. Another claimed advantage is that Verathix will keep its viscosity in a shampoo until a small amount of shear causes it to thin out to enable easy pouring. The following hand cleanser furnishes a viscosity of 5,000 cps.

Harvey M. Fishman Consultant Harvey Fishman has a consulting firm located at 34 Chicasaw Drive, Oakland, NJ 07436, [email protected], specializing in cosmetic formulations and new product ideas, offering tested finished products. He has more than 30 years of experience and has been director of research at Bonat, Nestlé LeMur and Turner Hall. He welcomes descriptive literature from suppliers and bench chemists and others in the field.

34 • happi

Sulfate Free Shampoo

Ingredients: %WT. Part A Water q.s. 100 Part B Sodium C14-16 olefin sulfonate 18.0 Cocamidopropyl betaine 6.5 Part C Verathix 2.6 Part D Preservative 0.2 Procedure: Add B to A with gentle mixing. Heat AB to 45-50°C and add C. Mix, begin cooling and add D. Adjust pH if necessary.

New from schülke Also present at Suppliers’ Day was schülke inc., Mt. Arlington, NJ, with its deodorant mixture called Sensidin DO (INCI name: Propylene glycol, ethylhexylglycerin, octenidine HCL). The glycol is the solvent for the deodorant ethylhexylglycerin and the octenidine, which provides the antibacterial properties. Sensidin DO is a clear, colorless light yellow liquid concentrate with a slight characteristic odor that inhibits the growth and multiplication of odor causing bacteria on the skin. The recommended usage is 0.5 to 1%. Sniff tests were run using 0.5% Sensidin DO vs. 0.3% triclosan and no significant differences between the deodorants was noticed. In vitro test showed it to be effective against foot odor and athlete’s foot causing bacteria. It has limited solubility in water (1%), but is very soluble in alcohols and glycols.

DSM’s Skin Brightener DSM Nutritional Products, Parsippany, NJ, has a skin brightener called Regu-Fade, which is composed of trans-resveratrol an antioxidant found in red grapes. Skin brighteners are common in Asia; elsewhere, they diminish age spots, reduce excess pigmentation and even skin tone. A happi.com

double-blind, placebo study was performed on 52 Indian female volunteers. Three test subjects were added to an SPF 10 cream, applied twice daily on the forearms, and colorimetric measurements were taken after 14, 28, 60 and 90 days. According to DSM, 1% Regu-Fade provided the brightest skin, followed by 0.2% Regu-Fade, ascorbyl glucoside at 2%, and the cream base was last. Up to 1% Regu-Fade is recommended for skin brightening facial and body care products or anti-aging creams.

A New Carbomer Lubrizol, Cleveland, OH, offered a different carbomer polymer called Carbopol Aqua SF-2 Polymer (proposed INCI name is Acrylates Crosspolymer-X). It was designed for use with low pH preservatives such as sodium benzoate, which are only active in the pH 4 to 6 range. The material forms clear surfactant formulas at pH 4 to 6, and suspends and stabilizes insoluble ingredients. It also has broad surfactant compatibility, provides synergistic thickening with salt, enhances pearlescent appearance and is compatible with low levels of cationic agents. Some applications are clear bath gels, shampoos and cleansers, pearlescent surfactants, body scrubs with suspended microcapsules, facial scrubs with exfoliating beads, anti-acne facial cleansers with salicylic acid and conditioning shampoos. Micro Powders Inc., Tarrytown, NY, introduced a high molecular weight powder produced from polylactic acid. The larger particle size powders (from 50 up to 297 microns) are called Ecoscrubs and are used as exfoliates. They perform the same as polyethylene powders, but are derived from a biodegradable polymer. The smaller particle size powders called Ecosoft (8 to 20 microns) provide increased slip and enhance the texture of makeup products. They also act as binders in pressed powder formulations. • July 2011

CREATING TOMORROW’S SOLUTIONS

YOU KNOW US. YOU JUST DIDN’T KNOW IT.

To learn more about our customized solutions, visit us at www.wacker.com/knows-solutions Or simply use your smart phone to scan the QR code above. Wacker Chemical Corporation, 3301 Sutton Road, Adrian, MI 49221, USA TEL: +1 888 922 5374, FAX: +1 517 264 4068, [email protected]

EuroTrends

EUROPEAN AP/DEO MARKET MANAGES TO KEEP ITS COOL

T

HINGS ARE LOOKING up when it comes to underarm protection. The deodorant market in the Big 5 has seen much good news in the past year with all countries reporting gains in value terms. Germany showed the highest growth, followed by France. However, the growth in Italy, Spain and the UK was only very minor, demonstrating that there is still a long way to go in the category, despite the fact that things are moving in the right direction.

A Fresh Future According to Symphony IRI France, the deodorant market in France kept its cool last year, with sales rising 2.3% to reach $587 million. Men’s deodorants performed better than women’s deodorants, putting on 2.8% to $271 million; in contrast, women’s deodorant sales increased a more modest 1.5% to $309 million. Unisex deodorants are a much smaller category in France, but they too posted dynamic growth of 27.3% to $5.8 million in the past year. Natural and organic products continue to grow in prominence across Europe. This fact is especially the case in France, where customers cannot seem to get enough of green formulas for their underarm products.

Katie Middleweek Editor, European Cosmetic Markets European Cosmetic Markets is published monthly by HPCi Media Limited. It provides in-depth data and analysis of the European cosmetics and toiletries market. For subscription details contact HPCi Media Limited, Tel: (44) 0207 193 7447 • Fax: (44) 20 7549 8622

36 • happi

Sales of deodorants are rising throughout much of Western Europe.

Ushuaïa, the No. 1 organic deodorant brand in France, developed the first certified organic deodorant sprays to offer 24hour protection. Ushuaïa Bio Déodorant Efficacité 24H contains a 100% natural maize extract as its active ingredient, which is claimed to prevent bacteria from degrading sweat, while limiting perspiration odor. The deodorants are also aerosol-free, and free from parabens, aluminum salts, colorants and synthetic preservatives. Three happi.com

fragrances are available, and are certified by Ecocert as being 100% natural, Lin Bio des Recoltes d’Eté, Hibiscus Bio du Burkina Faso and Vanille Bio de Madagascar.

No Sweat The German deodorant market grew the most during the past year, putting on a healthy 3.3% to $822 million in 2010. The two biggest sub-sectors were, unsurprisingly, aerosols and roll-ons, which acJuly 2011

EuroTrends

counted for 58.7% and 22.7%, market shares respectively. Aerosols put on an impressive 6.5% to $483 million while roll-ons grew 3.0% to $186 million. Unfortunately, all other categories in the German deodorant market lost sales in value terms. In terms of new products, Unilever’s popular Dove brand rolled out Dove Beauty Finish this spring, which is billed as the first deodorant to include pearlescent mica, a beauty mineral said to enhance the natural look of skin. Dove deodorants are already a best seller in Germany and this particular product aims to appeal to beauty conscious women who want a smooth finish for their underarms, which really puts the emphasis on beauty in the category. The product has been launched in antiperspirant and rollon formats and the pink and white packaging is designed to stand out on shelf and look great in the bathroom, according to the company.

Spraying Success

spray, which is based on an oat milk formula and is said to be hydrating and soothing. The formula also includes chamomile to be extra gentle to the skin after shaving, as many consumers complain that deodorants sting when applied after shaving.

Own Label Versus Branded The Spanish deodorant market did post gains in the past year, according to Symphony IRI Spain, but it only managed to eek out a tiny 0.04% increase to $341 million. Volume sales did manage to put on 2% to reach 14.2 million units, which was more positive news. Own label deodorant brands are gaining in popularity in Spain, with sales rising 7% in the past year to top $63 million. But branded deodorants are still the customers’ first choice, and remain competitively priced, at least for the time being. In terms of new products, Colgate-Palmolive’s Sanex Naturprotect has added a “no-white stains” version to its deodorant range, as well as a new variant for men, taking the number of products in this range to four. The formulas in the Naturprotect products are based on mineral alum, which is said to destroy the bacteria that produce body odor. What’s more, they can even be used on the most sensitive of skin and are 100% alcoholfree.

According to industry trade group Unipro, the Italian deodorant market inched up 0.3% in 2010 to $525 million. This was a disappointment compared to the previous year’s much healthier growth of 4.1%, when retailers pulled out all the stops to get consumers to shop for deodorants in their stores. Tactics included a number of price promotions and multiple purchase offers. When it came to key manufacturers in the Italian deodorant market, Beiersdorf’s Nivea brand remained a front-runner. To this end, Nivea launched Invisible for Black and White, which is available as a spray or a roll-on and is said to help banish white marks—a common complaint in this sector. At the more premium end of the spectrum, Collistar launched Collistar’s latest deodorant Roll-on al Latte d’Avena features oat milk to hydrate. 38 • happi

Nivea for Men’s Invisible Solid is a big seller, according to recent reports.

Supermarket Sweep According to Kantar Worldpanel, the UK deodorant market has reached something of a plateau, growing just 0.1% in the past year to $805 million. Volume sales fared worse, however, dipping 0.7% to 352.6 million packs, perhaps as people switched to larger formats. Own label sales in the UK were small, accounting for just 5.6% in a market increasingly crowded with branded players jostling for attention, often accompanied by expensive and hardhappi.com

hitting advertising campaigns. However, supermarket giant Tesco may help buck this trend with the recent launch of its Tia range of deodorant products. The line is split into Tia Active, which is said to offer 48 hours of protection from underarm odor and wetness; and Tia Crystal, which aims to deliver 24-hour protection without leaving white marks on application. Both ranges feature two antiperspirant sprays in Floral Soft and Aqua Cool variants as well as an Aqua Cool antiperspirant roll-on. Tesco has the ability and the backing to really throw its weight behind this campaign and industry insiders are tipping this as a significant own label launch for 2011.

Cool Customers So, whether it comes from branded products or from own label giants, there has been plenty of innovation in the past year in the field of deodorants. That’s quite an accomplishment in what is often viewed as a fairly utilitarian sector. Whether it is addressing the old problem of white marks, trying to combat excessive perspiration or just offering consumers a natural formula, European manufacturers have proved there is something for everyone. While own label products are slowly growing in prominence, the hold of branded products on this market seems to be assured, and it is a grip that isn’t going to loosen any time soon. • July 2011

7575 Fulton Street East Ada, Michigan 49355-0001 800-879-2732 www.accessbusinessgroup.com

With their proven expertise, our diverse, talented people do the job with maximal efficiency. The average employee has worked at Access for over 14 years producing OTC-quality powders, liquids, aerosols, lotions and creams. In fact, at Access our skills are of such a high level, we attract more and more demanding customers. Let us match our skills to your needs. Visit www.accessbusinessgroup.com. Or call 800-879-2732 to arrange a tour of our facilities.

Everything is state of the art—especially our people.

All you need is Access.

Notes from China

A GROWING DEMAND FOR COSMECEUTICALS

A

over potentially harmful ingredients in cosmetics here, Chinese consumers have become more in tune regarding the safety of their personal care products. But at the same time, they demand effective products, which should propel sales of cosmeceuticals even higher. While there has been no consensus on a clear-cut definition of a cosmeceutical in China or elsewhere, it is reported that the sales in this crossover category, which normally refers to the cosmetics positioned as medicated formulary and/or sold through specialized channels such as pharmacy or professional stores, have been growing at an annual rate of 15-20% since 2007, and are expected to continue at this pace until 2012. S PRESS COVERAGE GROWS

Influx of Manufacturers The concept of “cosmeceutical” became known to the Chinese cosmetics industry when L’Oréal introduced its Vichy brand into Chinese pharmacies in 1998. Ever since then, this market has been dominated by foreign brands such as Vichy, La Roche-

Ally Dai Happi China Ally Dai is senior editor of HAPPI CHINA. She has more than 10 years of experience in the cosmetic and food industries. HAPPI CHINA is a leading media for the China household & personal care industry. Published by Ringier Trade Media in strategic editorial partnership with HAPPI, it helps local manufacturers update their knowledge on formulating, testing and packaging, as well as providing market insight. Website: www. industrysourcing.com

40 • happi

Posay and Avene, which together have accounted for 60% of segment sales in recent years. Key reasons behind this are these brands have well-established marketing strategies, as well as the fact that Chinese consumers tend to trust these imported brands due to safety concerns. Although foreign firms currently dominate the domestic cosmeceutical market, Chinese companies are flooding the category with products of their own in the hopes of gaining share within this dynamic segment. As a result, no single local company has annual cosmeceutical sales above $15 million, although some local brands did achieve amazing success. For example, two local brands, Longliqi and Cortry, followed Vichy’s distribution strategy and gained great recognition through their Traditional Chinese Medicine (TCM)-based formularies. Among local cosmetic manufacturers, Shanghai Jahwa is not the first, but it is perhaps the most high profile company to enter the cosmeceutical sector. Nearly two years ago, Shanghai Jahwa introduced Yu Ze, its first cosmeceutical brand. Designed to relieve winter pruritus for older consumers, this new brand is strategically positioned to fill the gap in the cosmeceutical sector. The first product, Yu Ze moisturizer, was jointly developed by Jahwa and the Ruijin Hospital, a renowned general hospital in China. With this launch, Jahwa now owns more than 10 brands, forming an extended product line in each segment of the cosmetics market.

In the Name of Medicine A long-awaited medical reform plan passed China’s State Council two years ago. The changes, which are aimed at reducing medical treatment costs, led several pharmaceutical companies to enter the cosmeceutical market in search of new profits. Compared to costly and lengthy investment in research and development in the pharmaceutical inhappi.com

dustry, it is relatively easy for pharmaceutical companies to get involved in cosmeceuticals. No wonder then, that industry sources estimate that more than 170 Chinese pharmaceutical firms have been engaged in the personal care sector. Among them are quite a few household names in China, including some time-honored brands accredited by the China Ministry of Commerce. For example, Beijing Tongrentang Co. Ltd., a 300-year-old TCM company, entered the cosmeceutical market in 2004 and has posted 10% gains every year. In its five-year plan announced in 2010, the company proposed to have one third of its 300 newly developed products to be cosmeceuticals.

Multifunctional Toothpaste Yunnan Baiyao Group Co. Ltd., another Chinese herbal medicine company known for its “trauma panacea,” has also set up a cosmeceutical division. In 2004, the group had great success with the launch of a highend toothpaste that is said to help inhibit gingival bleeding, repair oral cavity ulcers and relieve pain and gingiva swelling. In 2008, Yunnan Baiyao signed a technology transfer agreement with Maleave Cosmetics Co., Ltd. of Japan, and launched the Qiancaotang itching-relieving skin care series in 2009 and Yangyuanqing hair care series at the beginning of 2011. Since its introduction hundreds of years ago, Mayinglong has been a well-known proctologic hemorrhoids treatment. More recently, the brand owner, Mayinglong Pharmaceutical Group, has extended its ointment series into the cosmetics category. In 2009, it launched an eye cream called Ba Bao anti-dark circle eye cream, which claims to reduce eye bags and dark circles with its unique TCM formulation, Ba Bao powder. Now Mayinglong has expanded this eye care line with an eye patch and herbal tea. Numerous other companies with pharmaceutical manufacturing backJuly 2011

Notes from China

grounds, such as 12WAYS, Pientzehuang and Chen Li Ji, have already branched out into this potentially lucrative market. All of them market TCM-based cosmetics, which appeal to Chinese consumers. But as industry experts point out, TCM may play a bigger role if researchers can solve such problems as purification techniques and conduct more scientific analyses on the effectiveness of TCM.

Expanded Distribution Channels In comparison to traditional cosmetics, which are mainly sold through department stores, specialty stores, or supermarkets, hypermarkets and grocery stores, the vast majority of cosmeceuticals can be found in pharmacies, cosmeceutical stores and professional stores. The “medical grade” image of cosmeceutical developed in professional environments

has been attracting an increasing number of consumers who wish to buy cosmetic products emphasizing specific functions, such as whitening and anti-acne, with greater credibility and safety. Since the successful debut of Vichy, pharmacy chains and cosmeceutical stores have been regarded as a popular distribution channel for medicated and natural cosmetic products. And with the medical reform of 2009, retail drug stores in China are shifting more toward cosmeceuticals in order to maintain their profit margins. Dominated by numerous small players and some big ones targeting the mid- to high-end segment, professional stores sell a wide variety of cosmetic products, from anonymous branded products to some famous foreign ones, at relatively low prices or with customized service. Today, cosmeceuticals account for an increasing percentage of sales in these stores.

Unsolved Issues As demand for cosmeceuticals increases, the arguments over its definition and legitimacy are also heating up. There may be a middle ground between drug and cosmetic for marketers in China, but according to many experts, the current system only allows the term,“cosmetics with specific functions,” which collectively refer to hair color/perm, hair removal, breast beautifying, body slimming, deodorant and sun protection products. These special cosmetics must be approved by the State Council Administrative Department of Health. Therefore, some experts suggest that the term cosmeceutical should fall in the category of cosmetics with specific functions. So far there has been no official word on this, and it remains to be seen which path the cosmeceutical segment will follow. •

When you want a certain additive, chances are we’ve got it right in stock. We maintain a huge inventory of quality products from the best names in the business and we get them to you FAST! • Alkylpolyglucosides • Antioxidants • Biocides • Chlorinated Paraffins • Corrosion Inhibitors • Emulsifiers • Esters • Ether Amines • Fatty Acids • Fatty Alcohols • Lard Oils • Lubricant Additive Components • Lubricant Additives Packages

• Methyl Esters • Neodecanoic Acid • Petrolatum • Polyalkylene Glycols • Polyalphaolefins • Rust Preventatives • Sulfonates • Sulfurized Compounds • Synthetic Lubricants • Vegetable Oils • Waxes • White Oils

YOU ALSO GET SEA-LAND’S WINNING TECHNICAL SUPPORT AND DEPENDABLE SERVICE. 821 Westpoint Parkway • Westlake, OH 44145

440-871-7887

www.sealandchem.com E-mail: [email protected] July 2011

happi.com

happi • 41

The Grayson Report

STAR PRODUCTS STILL BUILD COMPANIES

M

OST HISTORIANS will tell you that it

takes at least 50 years before you can get a true perspective on events. Sometimes it takes even longer; note the recent flurry of books on the Founding Fathers. What can practitioners in the beauty industry learn from the past? Does history repeat itself? Or has the business climate changed so much that all the old “rules” no longer count? Have we all changed so much that what was the norm years ago is ludicrous today? Think of the Hays Office, a “voluntary” movie censor group, which would allow a couple in bed only if she had a wedding ring and if there was one foot on the floor! Now, let’s take a look at the past five decades of the industry to see what lessons can be learned as we look to the future. Although the modern era of the beauty business began in the mid-1950s, Revlon was already there, having launched the first

Suzanne & Bob Grayson Grayson Associates Suzanne and Bob Grayson are respected, professional marketers, having spent their careers with the leading companies in the beauty industry before starting their successful consulting business in the early 1970s. Their consulting clients have included Avon, BristolMyers, Estée Lauder, Procter & Gamble, Revlon and Cover Girl, among others. They reside in San Juan Capistrano, CA and maintain an office in New York City. For more information, they can be reached at [email protected] or [email protected]

42 • happi

pigmented, non-dye nail enamel in 1937. Revlon became the top-selling cosmetic brand in the mid-1950s, driven by the huge and immediate impact of TV’s “$64,000 Question.” Estée Lauder started with skin creams, but was propelled by Youth Dew Bath Oil (1953), the high-impact/high-value, long-lasting star product (more of what she bought it for), and the GWP powerhouse. It’s important to note that most great companies were started with single, star product and/or star drivers. Look where they all are today (see chart p. 44)! Alberto-Culver started with VO5 Hot Oil Treatment and was scooped up by Unilever this year, largely because of it latest star product line TreSemmé. Bare Escentuals’Bare Minerals was driven to new heights on QVC by Leslie Blodgett before the company was acquired by Shiseido in 2010. Christina Carlino did the same for Philosophy, which was purchased by Coty this year. Noxell launched CoverGirl in 1959 with a three-shade medicated makeup line. Together with Noxzema, Noxell created a winning formula. P&G usually only buys top brands and acquired Noxell in 1989. Maybelline’s mascara business, which includes Great Lash, lured L’Oréal in 1996. Today, when you include Lancôme, L’Oréal dominates the world mascara business. Neutrogena began as a translucent soap bar in 1954, and this star that launched a thousand products landed at J&J in 1994. And if it weren’t for Smashbox’s primer authority, Estée Lauder would have never noticed! The message is: star products build traffic, brands and companies. Before the modern era, the business was dominated by entrepreneurs who founded the industry—Elizabeth Arden, Helena Rubinstein and Francois Coty. All were essentially fiefdoms run by strong leaders. Personal rivalries added to the thrill of winning. Max Factor and Perc Westmore were the first makeup artist brands, emanating from the Hollywood glamour era. happi.com

Two powerful trends sprouted in the late 1960s and changed the face of the industry. First came the emergence of mass distribution/self-service, along with the shift from independent drug to chain drug. Second came the growing power of women working/spending and wanting/needing to look good. This burgeoning of beauty as a real business, started the third trend.

Drug Culture Impacts Beauty In the 1970s, drug companies began acquiring beauty firms in a search for growth. The early mismatched acquisitions were doomed from the start: Lanvin-Charles of the Ritz to Squibb; Maybelline to Schering-Plough; Arden to Eli Lilly; Max Factor to Norton Simon to Playtex; Rubinstein to Colgate. The buyers simply didn’t, or didn’t want to, understand the culture and tempo of the beauty business. The buys were opportunistic, not strategic, and merely a way to get on the acquisition bandwagon. Revlon picked up a badly distressed Factor, (what did Playtex know about beauty?) along with Charles-of-the-Ritz to fill out a double bed—in which they both promptly fell asleep. Savoring the taste of the higher margin beauty business, P&G snatched Max Factor from Revlon in 1991 and made Mr. Perelman’s day. In fact, P&G was originally after both Revlon and Factor, but the latter’s greater global presence, combined with a lack of trust in Revlon’s blue suit/buy-out management, was a deciding “factor.” Besides, look at the great gift-with-purchase: SKII technology from Max Factor Japan! As the drug companies became disillusioned with their beauty acquisitions, they began divesting them in droves: Arden and Faberge went to Unilever, along with Calvin Klein and Chesebrough-Ponds, which ultimately ditched Prince Matchabelli, Cutex and Aziza. Maybelline was sold to L’Oréal, Neutrogena went to J&J, and Helene Curtis went to Unilever. All foreshadowed the changes to take place in the new century. July 2011

The Grayson Report

KEYS TO SUCCESS & PURCHASE APPEAL

Alberto-Culver

Unilever 2011

TRESemmé

High Value

ProfessionalStyle Authority

Image/ Advertising +

ease global expansion. CoverGirl with little global business, will move along neatly now that it has Olay ingredients to spark recognition for both Permission-to-Believe and Permission-to-Buy. Brilliant marketing.

Bare Escentuals

Shiseido 2010

Bare Minerals

News/Category

Persona/ Authority

QVC Top Share +

Stay Focused

CoverGirl (Original)

P&G 1989

Medicated Makeup into major line

Innovative products/positioning

Model Beauty Authority

Top Share 1989 +

Essie

L'Oréal 2011

Nail Color

Color Selection

Persona/ Authority

US Line Expansion +

Maybelline

L'Oréal 1996

Great Lash Mascara + line

High Value

(Nothing Special)

Top Share Mascara +

Max Factor

P&G 1991

Makeup

(Nothing Special) (Old) Hollywood

Global appeal

Neutrogena

J&J 1994

Soap Bar into major line

High Value

Derm Authority

US Category Expansion +

OPI

Coty 2011

Nail Color

Color Selection

Fashion Authority

US Line Expansion +

Philosophy

Coty 2011

Skin Care/ Fragrance

New skin care users

Persona/ Authority

QVC/US Line Expansion +

Sinful Colors

Revlon

Nail Color

High Value

Trendy

New consumer, Expansion +

Smashbox

Lauder 2011

Primer

Innovative products

New EL Distribution

Consumer Expertise +

Purchasing Star Product Company

Brand

Real (Consumer)

P-T-B/ Imagined/ Positioning*

Other + **

*P-T-B = Permission to Believe; ** + global expansion potential for all Note: Examples point to reasons for high purchasing interest at that time.

Interestingly, had a company been able to read the tea leaves, it might have been able to pluck some of the low-hanging fruit before harvest time, and would have saved millions. But here’s the anomaly. If these, essentially entrepreneurial companies were bought (too) early, would they have achieved their full potential under the heavy hand of a major company? In most cases, the entrepreneur gets a payout, a two-year contract, and a new set of golf clubs. What ultimately counts is the new set of golf clubs!

Overcoming Weakness Now, to the current era—strategic consolidation based on perceived weaknesses in the existing product or distribution lineup, with global expansion the brass-ring of opportunity for all (see the last column on the chart). Unilever’s Alberto acquisition provides a buildable, niche moisturizing line, St. Ives, as well as strong brand names in hair care, Nexxus and TreSemmé. Oddly enough, 44 • happi

VO5 will probably be divested, thanks to concerns raised by the US government. Shiseido’s purchase of Bare Escentuals gives it a powerful mineral line and a pipeline to QVC. Coty’s acquisition of OPI and Philosophy reduces its dependence on fragrance. And finally, Revlon bought Sinful, to get that low-price business in nails/cosmetics as well as entrée into the lower-priced/younger beauty business, which has not been fruitful in past attempts with the Revlon brand. Whew! Note that they are all strategic buys. Now, back to the tea leaves. Looking forward five to ten years, it seems clear that the majors will focus on two strategies; true global distribution and expanding brands into new categories with lean, but full lines. That’s easy to say, but not so easy to do, as many have learned. The first strategy of course, is to enlarge the total business, and the latter is to prevent some parvenu from blocking out a niche, such as Sally Hansen in nails. And watch for crossover branding to happi.com

If you are a small company and you’re mulling a buyout, on whom should you focus? Who is missing products like yours? Who can use your distribution channels? Who can use your brand to enter a new product category? You get the idea—what strategic value do you really have? But, that’s the end game. In the meantime, three exogenous factors can impact your business— shifting channels of distribution, social networking and emerging markets. Those are the basics for developing a strategy but, as you know, it’s the execution that counts. A smaller company’s strategy must be narrow in focus; try to dominate a single idea or area. Don’t be swept away by the“global” fever—don’t dissipate your time, money and/or creative juices. Done successfully, two things can happen; a VC will invest, enabling more rapid growth and line expansion (Strivectin to Chrysallis), or a major will want your specific expertise (Smashbox), and you get to use those golf clubs. But neither will happen without that singular focus. Is that what you are doing now? So, if your goal is to be acquired, focus on some star attractions. And, ask yourself this question, every day. “What’s new and innovative about what I am doing.” Just being different—is not enough. It must be significant! It might be helpful to look at our three past columns on Permission-to Believe, Permission-to-Buy, and distribution channels. Lastly, we’d like to let our readers know that we’re taking our own advice about “focus,”as we take leave of absence from The Grayson Report and theBrand-AdAudit columns. We are ready to launch a radically different anti-aging skin care concept, all the while reminded that the world is not waiting for another anti-aging product. It will surely consume all of our time (and then some) for the next year. Stay tuned. Meanwhile, we sincerely thank you for your continued support these so many years. • July 2011

The Sunscreen Filter

FINALLY...THE FINAL RULE ON SUNSCREEN LABELLING

M

DAY signals the official start of summer; it is the dawn of sunscreen season again. As in years past, annual reviews and reports purport to shed light on the newly-released products available from the industry. This year is no different in that regard. All at once, contradictory information floods the media from different directions. The experts do not agree. First, Consumer Reports published its annual review of the best sunscreens on the market. The Environmental Working Group’s (EWG) Skin Deep Sunscreen Report was published and immediately draws condemnation from the Personal Care Product Council and the Skin Cancer Foundation. Inevitably, the politicians toss their hats into the ring as they have done each and every year. On June 2, they renewed their call to the US Food and Drug Administration to issue the Final Regulations for sunscreens (see footnote on p. 50). The consumer, staring blindly at the upcoming season, is left holding the bag. In the end, it is left to each independent user to decipher this contradictory information to decide on cruEMORIAL

cial health concerns about protection for themselves and their families. Then…Shazam! The FDA schedules a press conference at 10am on June 14 to announce the long awaited regulations. FDA finally announced the Final Rule for sunscreen labeling and released three additional regulatory documents: • A Proposed Rule; • An Advance Notice of Proposed Rulemaking (ANPR) for Dosage Forms; and • A Draft Enforcement Guidance for Industry. It should first be noted that the announcement made is not the anticipated Final Monograph with generally regarded as safe and effective (GRASE) conditions for sunscreens. Instead, FDA is publishing this Final Rule that establishes proper labeling and the effective testing upon which it relies. According to FDA: “It’s in the best interest of public health to publish this Final Rule while working on remaining issues that need to be addressed in order to publish a Final Monograph.”1 Nevertheless a Final Rule allowing companies to claim that “sunscreen reduces

the risk of skin cancer and early skin aging when used as directed” is now the law of the land. According to the Final Rule, this is accomplished when two conditions are met, namely, the product has a minimum of SPF 15 and also complies with the new testing procedures and parameters for Broad Spectrum (UVA and UVB protection) labeling. Fortunately, the four star UVA system and the extensive descriptors are gone. The invivo UVA testing is no longer required. Also, the complicated in-vitro UVA testing based on the Modified Diffey-Robson method has been replaced by the simpler critical wavelength spectrometer reading. This is most welcome news but not without controversy. The Final Rule also has very important changes to sunscreen labels that manufacturers have to comply with by June 2012. These label changes“are an important part of helping consumers have the information they need so they can choose the right sun protection for themselves and their families,” said Janet Woodcock, M.D., director of FDA’s Center for Drug Evaluation and Research in the press conference held in Washington, DC. Other important label changes include the time (40 or 80 minutes)

Nadim Shaath Alpha Research & Development Ltd Dr. Nadim Shaath is the president of Alpha Research & Development, Ltd. in White Plains, NY. He has over 30 years of experience as chairman of the chemistry department at SUNY-Purchase and the CEO of Kato Worldwide. Recently he formed a consulting company serving the cosmetic industry called ShaathMeadows Corporation (SMC) with laboratories

Consumer Reports rates its small sample of 22 creams, sprays and lotions by classifying them

in New York, New Jersey, Texas, Florida and Egypt. He

into three categories: SPF 30, SPF 40-50, and above SPF 50.

can be reached at [email protected].

46 • happi

happi.com

July 2011

Cool Approach

to Daily UV Care

PolaSperse CSI TM

The “Daily Wear Emulsifier” Formulating daily UV care products just got a whole lot easier with PolaSperse CSI. It is designed specifically for the cold process manufacturing of daily wear cosmetics which contain inorganic UV filter dispersions. PolaSperse CSI is extremely easy to use and requires low dosages to deliver stable formulations. Products formulated with PolaSperse CSI exhibit excellent SPF efficacy per unit of sunscreen active. This gives formulators more freedom to design the sensory characteristics of products to meet the market demand. As products are made via cold process, significant time and cost savings can be realised during manufacturing. Europe, Middle East & Africa email:[email protected] www.croda.com/europe/pc North America email:[email protected] www.crodausa.com Latin America email:[email protected] www.crodala.com Asia Pacific email:[email protected] www.croda.com/asia

Innovation you can build onTM

Efficient: Usage levels between 1.0-3.0% Simplifies the formulation and manufacturing of daily UV care products which contain titanium dioxide dispersions I Helps achieve high SPF efficacy per unit of sunscreen active I Helps deliver excellent sensory feel I Cold processing significantly reduces energy use, thereby minimising the environmental impact of the manufacturing process I I

The Sunscreen Filter

that the product is water resistant and that reapplication every two hours is a requirement. That last statement ensures that consumers are protected from harmful UV rays while sun bathing and by reapplication of the sunscreen every two hours to assist in minimizing the effects of photo instability inherent in the formulations due to the presence of photo-unstable ingredients. It should be noted here that the SPF testing procedure has also been modified. The number of test subjects required has been reduced to 10 instead of 20 or 25 subjects. Also, no claims are allowed concerning “sunblock,” “all day protection,” “waterproof” or “sweat proof.”

No matter what the formula, no label can contain the terms “sunblock,” “all day protection,” “waterproof” or “sweat proof.”

Other Documents Released The other issues in this historic announcement by the FDA are addressed in the following documents: 1. The Proposed Rule limits the maximum SPF value on sunscreen labels to 50+. The FDA justifies this due to the fact that there is no sufficient data to show products with SPF values higher than 50 provide greater protection for users than products with an SPF of 50. The proposal creates the opportunity for the submission of data by manufacturers to support guidelines that would include higher SPF values in the Final Rule. The FDA is encouraging public comment on this document. 2. The Advanced Notice of Proposed Rulemaking (ANPR) allows the public a period of time to submit data addressing the effectiveness of the safety of sunscreen sprays. The FDA also requests comments on the possible warnings and directions for sprays and issues regarding dosage forms. 3. The Draft Enforcement Guidance for industry outlines information to assist sunscreen product manufacturers’ understanding of how to label and test their products in light of the new final rule and other regulatory initiatives. Finally, the FDA is currently re-examining the safety information available for active ingredients included in sunscreens marketed today. According to the agency, today’s sunscreens have been used for 48 • happi

many years and the FDA does not have any reason to believe these products are not safe for consumer use. Woodcock addressed specific questions concerning nanoparticles of zinc and titanium oxides, oxybenzone and retinyl palmitate that were posed by the reporters in the press conference. She revealed that the FDA has conducted its own animal testing of micronized inorganic particulates used in sunscreens and concluded that no particles penetrate the skin in agreement with the other literature studies. As for the other ingredients, she concluded that they have been in use for years and that there are no safety alerts on any of them. Nevertheless, she repeated her earlier assertions that the ingredients’ safety happi.com

will be further investigated and if any adverse findings are known, they will be promptly reported and the necessary action will be taken.

It’s All Good News All in all, I am pleased with the FDA announcement despite the fact that it is incomplete and late. It removes any suspicion about the lack of regulations that advocacy groups were harping about, which caused major concerns for consumers. The simplification of all the necessary testing is most welcome. The new product labeling and improved Drug Facts Box is informative and precise. The regulations dealing with UV protection higher than SPF50, aerosol dosage and safety, ingredient safety, filter July 2011

The Sunscreen Filter

combinations with avobenzone and other issues all require additional testing and debate. Careful and informed conclusions are needed to address those issues and should not hold the issuance of Final Rules governing sunscreens. High grades are awarded for the current FDA effort but low grades are given for keeping us waiting for 33 years. Those three decades invited everyone—advocacy groups, scientists, media and concerned citizens alike—to have and express conflicting opinions that contributed to the chaos during this time when efforts were being made to protect individuals from skin cancer. I totally disagree with the reaction from David Andrews, Ph.D. on the EWG website stating that “FDA Sunscreen Rules are too little and very late.”He further states,“Consumers will have to turn elsewhere, like EWG’s online guide, to find the safest, most effective sunscreens.”2 I hope not, and trust that the industry, the FDA and the medical, dermatology, and scientific communities can seize this opportunity to assist the consumer with the appropriate products and protocols for practicing safe and healthy exposure to the sun.

The Results Are In... The annual reviews referred to earlier (now overshadowed by the stunning FDA announcement) include Consumer Reports (CR) rating products on the market.3 CR employs outside accredited laboratory testing, declaring their intention to adhere to the scientific process. It rates the small sample of 22 creams, sprays and lotions by classifying them into three categories: SPF30, SPF40-50, and above SPF50. Nine products (41%) were rated as providing excellent UVA and UVB protection. Interestingly, many of them are the ever-popular sunscreen sprays. CR always provides the cost per ounce for each product, revealing dramatic discrepancies: No-Ad SPF45 costs $0.59/oz. as opposed to Anthelios SPF 40 at $18.82/oz.! This year’s EWG report is basically the same as its 2010 sunscreen report, with the exception of a few more products that were 50 • happi

reviewed.4 They claim that one in five (20%) of these products provides safe and efficacious protection as compared to last year’s findings of one in twelve (8%). Last year, I wrote about the EWG’s flawed methodology in my column, and the reader is advised to consult The Sunscreen Filter (July 2010) (http://www.alpharnd.com/articles/articles/shared_files/July%20Sunscreen%20Filter%202010.pdf) when evaluating the report. I must admit, however, that the EWG has compiled an impressive database that is practical and useful. Its ratings, however, are based on incomplete research and flawed methodology. EWG should seriously consider undertaking actual in-vivo SPF, UVA, photostability and water-resistance testing. It should also refrain from making premature concluding statements about ingredients based on incomplete and ongoing research. Other EWG comments add to consumer confusion. I take exception to its promotion of the incorrect statement that there are two types of protection: mineral (physical) and chemical, and would prefer the more accurate classification of mineral vs. non-mineral instead. It should be clearly noted that zinc oxide and titanium dioxide are chemicals, too. The forms in which they are used in sunscreens with chemical coatings, chemical dispersants and chemical solubilizers render them just as “chemical” as octisalate, avobenzone and all the other UV absorbing molecules.5 Ironically, CR’s top sunscreens are mostly the spray type, which, according to the EWG study, are the least desirable. The best sunscreens in the CR report are considered unsafe and ineffective in the EWG study. If consumer advocacy groups cannot provide a uniform and reliable assessment of the safety of sunscreens, should we value their findings? Should the consumer trust a biased industry or a watchdog group, their favorite blog, or a reliable and well-informed FDA? The internet is buzzing with blogs commenting on the EWG report and the Personal Care Product Council’s response, but they are overshadowed by the new FDA happi.com

regulations. This conflict about how best to deal with an incredibly important issue of protection from skin cancer has not assisted our efforts to provide superior, safe and effective products. The delay in establishing government-approved and up-to-date ingredient listing and uniform testing procedures has left open the door to misinformation and confusion. Hopefully this new announcement from the FDA, albeit late and incomplete, will dispel all rumors. The reality is that it will take some time to bring all parties toward a common ground. In the end, though, it is worth the time and effort if we can better protect consumers and someday eliminate all skin cancer related to direct exposure to the sun.

Footnote Six US senators, none of whom hail from Sunbelt States, recently raised objections. Senators Jack Reed (RI), Tom Harkin (IA), Pat Healey (VT), John Kerry (MA) and the two senators from New York, Chuck Schumer and Kirstin Hilibrand, sent two letters on June 2, 2011 to Margaret Hamburg, the FDA Commissioner, and Jacob Lew, head of the Office of Management and Budget (OMB), stating that they “continue to be disappointed that the FDA has not prioritized the implementation of meaningful, enforceable standards for sunscreen protection that includes standards for both UVA and UVB protection.” They are sponsoring a bill in Congress, called The Sunscreen Labeling Protection (SUN) Act, which forces the FDA to issue the final regulations in 180 days. •

References: 1. Press release, a video and massive amounts of documentation. All can be accessed by visiting www.FDA.gov/downloads 2. http://www.ewg.org/release/fda-sunscreenrules-too-little-and-very-late 3.http://pressroom.consumerreports.org/press room/2011/05/consumer-reports-health-testsreveal-top-performing-sunscreens.html 4. http://breakingnews.ewg.org/2011sunscreen/best-sunscreens/best-beach-sportsunscreens/ 5. Chapters 13-15 in“Sunscreens: Regulations and Commercial Development,” Edited by Nadim A. Shaath, Taylor and Francis, Boca Raton, FL (2005). July 2011

Star-Studded FiFi Awards

Held at Lincoln Center The stars were out to celebrate the best in fine fragrance, courtesy of The Fragrance Foundation. Nancy Jeffries • Contributing Editor

F

RAGRANCE FANS

got an eyeful at this year’s celebratory FiFi Award ceremony held at the tent at New York’s Lincoln Center, May 25, 2011. Rochelle Bloom, president of The FraFiFi 2011 logo grance Foundation, presided over the gala event, which this year presented more than 30 FiFi statuettes for achievements in fragrance creation. The evening began with red carpet excitement, as arrivals, including Halle Berry, Fergie, Padma Lakshmi, Kate Walsh, Desiree Rogers, Tiffany Amber Thiessen, Nate Berkus, Cat Cora, and Trey Songz entered the tent. As the lights came down, Rochelle Bloom welcomed the audience to Lincoln Center once again, saying, “This is an appropriate homecoming, as Lincoln Center has become home to Fashion Week, and fragrance is the most important fashion accessory.” Bloom encouraged tweeting from the event, noting the FiFi Awards were tiedin to technology, and provided the hashtag, “FiFi2011,” for the evening’s festivities. Bloom acknowledged the important work of the Jenesse Center, represented by honoree, Halle Berry and the “What a Little Love Can Do Project,” and Fergie, for The Avon Foundation. For the second year, proceeds from The FiFi Online Charity Auction benefited the evening’s honorees. July 2011

Bloom and Jill Belasco, Fragrance Foundation Chairwoman of the Board and President of Maesa Group, also acknowledged premier sponsor, Condé Nast, as well as Lucky, LuxePack, Macy’s, and Maesa Group, for their support. Bloom also introduced a special tribute to Elizabeth Taylor, whose White Diamonds fragrance has remained one of the all-time bestsellers, and inducted her into the Hall of Fame.

Fragrance Hall of Fame To be nominated for The Fragrance Hall of Fame Award, a fragrance must be on the market 15 years or more, and supported by marketing strategies, which helped the fragrance achieve awareness and success in 2010. The winners in this category were: Women’s Issey Miyake L’Eau d’Issey Men’s Jean Paul Gaultier “Le Male”

Consumer’s Choice Award

Men’s Bath & Body Works Signature Collection happi.com

FiFi Greeters offered fragrance sampling

For Men Twilight Woods Women’s Bombshell – Victoria’s Secret

Fragrance Superstar Gucci Guilty

Fragrance Sales Breakthrough of the Year At the discretion of the board of directors, a retailer can be recognized for having done something out of the ordinary. This year, it was decided to honor a brand, happi • 51

• FiFi Awards

Mary J. Blige received the Fragrance Sales Break-

Halle Berry received the Elizabeth Taylor

Fergie received the 2011 FiFi New

through of the Year award for Carol’s Daughter.

Fragrance Celebrity of the Year Award

Fragrance Celebrity of the Year Award.

which at retail, achieved record-breaking sales to set a new benchmark. The honor went to Mary J. Blige and Carol’s Daughter.

with Elle—Picking Up His Scent, December 2010 and Marie Claire—Making Scents for Men, Oct. 2010. The winner in the Women’s Scent Bite was Elle—Mix Masters, Sept. 2010. For editorial excellence in fragrance cover-blog, the honor went to Elle.com—An Eau of Our Own, Oct. 2010.

The Elizabeth Taylor Fragrance Celebrity of the Year Award This award, presented by the Foundation’s board of directors, honors a celebrity who has embraced and promoted the world of fragrance over a period of time. It celebrates the ongoing success and support given by the celebrity to the industry and attracting consumers to the category. The 2011 honor went to Halle Berry.

2011 FiFi New Fragrance Celebrity of the Year Award Selected by the Foundation’s board of directors, this award recognizes a celebrity whose very first fragrance has enjoyed instant success with the consumer and brought recognition to the fragrance category. Fergie was named the winner.

Technological Breakthrough of the Year Honors

52 • happi

Women’s Luxe Gucci Guilty – P&G Prestige

Men’s Luxe Marc Jacobs Bang – Coty Prestige Women’s Broad Appeal Bombshell Victoria’s Secret

Fragrance Creation and Formulation Robertet Fragrances – Seed to Scent

Men’s Broad Appeal Herve Leger Homme – Avon Products

Packaging Technology and Delivery Systems International Flavors & Fragrances – Redken Radiant Sea Spray

Best Media Campaign of the Year

Information Technology Firmenich-osMoz iPhone App

Men’s Bleu de Chanel

Bath & Body Line of the Year

Perfume Extraordinaire

Coco Mademoiselle Bath Essentials Chanel

Givaudan

Editorial Excellence Awards Interior Scent Collection For Women’s Scent Feature, the winner was of the Year Allure—Poetic License, Sept. 2010. The winner of the Men’s Scent Feature was a tie

Best Packaging of the Year

Jonathan Adler “Happy Chic” – The Maesa Group for Jonathan Adler happi.com

Women’s Gucci Guilty

Fragrance of the Year – Specialty Brand

Men’s Banana Republic/Republic of Men Essence Eau de Toilette – Inter Parfums USA July 2011

• FiFi Awards

Women’s Bombshell – Victoria’s Secret

Fragrance of the Year – Broad Appeal

Men’s Herve Leger Homme – Avon Products, Inc. Women’s Halle By Halle Berry Pure Orchid – Coty

Fragrance of the Year – Direct To Consumer My Life By Mary J. Blige – Carol’s Daughter

Fragrance of the Year – Specialty Luxe

Men’s Tom Ford Azure Lime – Tom Ford Beauty Jill Belasco, left, chairwoman of The Fragrance Foundation’s board of directors and president of

Women’s Balanciaga Paris – Coty Prestige

Fragrance of the Year – Indie Brand Six Scents Parfums: Series Three (Unisex) – Six Scents Parfums

The Maesa Group, with Rochelle Bloom, president of The Fragrance Foundation

Fragrance Hall of Fame

Women’s Issey Miyake L’Eau d’Issey-Beauté Prestige International

Fragrance of the Year

Men’s Jean Paul Gaultier ‘Le Male’-Beauté Prestige International

Women’s Luxe Gucci Guilty – P&G Prestige

Additional Awards

Men’s Luxe Bleu de Chanel

Top scorers of The Fragrance Foundation’s online certification exam for sales specialists, were Amanda Markey, C.F.S.S. Nordstrom, Ross Park, PA (Fall 2010) and Nicole Maki, C.F.S.S. Nordstrom, Mall of America, Bloomington, MN (Spring 2011).

Online Charity Auction

Fergie on stage at the FiFis

54 • happi

For the second year, proceeds from The FiFi Online Charity Auction benefited organizations selected by the evening’s honorees. Additional information is available at: www.charitybuzz.com/auctions/fifiawards/ Halle Berry for “What a Little Love Can Do Project,” a Domestic Violence Intervention Program at the Jenesse Center, Inc. – www.jenesse.org Fergie for The Avon Foundation, addressing quality of life issues for women, happi.com

including breast cancer research and domestic violence – www.avonfoundation.org The Fragrance Foundation is currently engaged in a number of initiatives to further the exploration and pleasures of fragrance. To entice consumers, in September 2010, the organization partnered with Fashion’s Night Out, bringing carts of blossoming flowers to locations around the city, including the main floor of Macy’s. In the educational arena, the Foundation offered a series of five new “Top Notes” courses, providing current fragrance trends, that will become part of the Certified Fragrance Sales Specialist education initiative; and the Foundation’s Sense of Smell Institute also commissioned Tyler Loring, PhD, to prepare a white paper reviewing recent studies on odor perception. In addition, the Foundation is truly global now, with Foundation licensees or partnerships in the UK, France, Italy, Australia, Germany, Japan, and the United Arab Emirates. They have also signed a licensing agreement with Perfumery Club in Moscow to establish the first FiFi Awards in Russia. For more information on the Foundation, visit www.fragrance.org. • July 2011

Bangkok, 2- 4 November 2011 THE LEADING EXHIBITION AND CONFERENCE IN ASIA FOR PERSONAL CARE INGREDIENTS in association with

Formulating new beauty Discover the latest personal care ingredients from the top suppliers in Asia and the rest of the world.

Register for free fast-track entry at www.in-cosmeticsasia.com

Sustainable COSMETICS When the Great Recession was raging, consumers began to pull back from making green purchases. Industry observers insist that these shoppers are coming back, but who gets to decide what’s green and what isn’t? Tom Branna • Editorial Director

S

URE, COSMETICS CAN BE produced sustainably. But are suppliers, marketers and, most importantly, consumers, willing to pay the price to attain these lofty standards and, if these standards are attained, just whose standards should become the standard for sustainability? More than 180 personal care industry executives descended on New York City in May to debate these issues and arrive at some sort of consensus at the Sustainable Cosmetics Summit, organized by Organic Monitor. Summit topics included a diverse range of issues including environmental impacts, social footprints, sustainable supply chains and organic cosmetic standards. The Summit opened with a keynote by designer William McDonough, who founded the Cradle-to-Cradle Products Innovation Institute, which has been billed by some as a step on the path toward the State of California’s plan to build a cradleto-cradle economy. McDonough’s interests in sustainability are far-flung and he and his team have worked with a variety of industries to help them become more sustainable. For instance, he showed the audience several buildings and architectural designs that are better for the environment and the people who work in them. A more cosmetic-centric view of sustainability was delivered by Charles J. Bennett, vice president, earth and community care, Aveda. He urged the industry to become more engaged with sustainability, not-

July 2011

ing that changing public policy is forcing companies to innovate or else get driven out of business. At the same time, Bennett noted that public reporting will continue to grow in importance, so he urged the audience to become proactive and stay honest about sustainability claims, lest they run the risk of ruining their brand reputation. Bennett referred to a 2010 Edelmann poll that found 86% of global consumers believe that business needs to place at least equal weight on society’s interests as on business’ interests.

William McDonough, founder of Cradle to Cradle Products Innovation Institute, delivers the keynote address.

happi.com

“The intensity level continues to increase,” he told the audience.“Social media drives social purpose.” Yet, at the same time, more companies are fighting for a limited number of raw materials, which is driving up prices, while regulations such as REACH and the soon to be released ISO 26000, are forcing companies to rework their supply strategies. “Unless we make the changes we need to make, the availability of resources and the needs of people will be a flash point,” he warned. For example, he asked the audience if all formulators should have access to sustainable ingredients, or should they be limited to only those who can pay? And while he acknowledged that the cosmetics industry does a great job formulating products using some sustainable ingredients, he questioned the sustainability of major formula components, including surfactants, polymers, thickeners, emollients and preservatives. Still, he insisted that some materials are becoming more sustainable than others. “Cargill and General Mills believe, that in a few years, palm oil will be produced sustainably,” Bennett observed. Bennett reviewed Aveda’s position and mission in regard to sustainability and pointed out that seven products and packages have already been certified cradle-tocradle. Packaging plays a major role in Aveda’s sustainability efforts, as the products use high post-consumer recycled packaging happi • 57

• Sustainable Cosmetics

It is a lively discussion when beauty industry leaders get together. Pictured (l-r): Amarjit Sahota, Organic Monitor (moderator); Ido Leffler, Yes to Carrots; Karen Behnke, Juice Beauty; Jasper Van Brakel, Weleda North America; Nick Vlahos, Burt’s Bees; and Mirran Raphaely, Dr. Hauschka Skin Care.

material. At the same time, the brand is committed to the organic conversion of its supply chain. In other moves, Aveda has mitigated climate change by relying on 100% wind energy manufacturing since 2007. For more than three years, Aveda’s manufacturing activities have been carbon neutral along with activities in its offices and stores. Finally, Aveda promotes wildlife habitat at its corporate site and has an outreach program that has donated nearly $18 million to communities in 12 years. “Aveda’s commitment to sustainability is good for the earth and good for business,” he concluded. Aveda doesn’t have the sustainability platform all to itself. There are plenty of personal care companies that have made inroads. Jenny Rushmore, global sustainability director, beauty & grooming, Procter & Gamble, provided some of the details of P&G’s sustainability strategy, noting that her company issued its first sustainability report in 1956 and today is a component of the Dow Jones’ Sustainability Index and the FTSE4Good program. In its research, P&G found that consumers want environmentally-friendly products, without compromising performance, aesthetics and values. “(Consumers) want sustainability, but they won’t trade down for it,” she told the audience. 58 • happi

Taking a science-based approach to sustainability, for example, P&G found that more than 90% of a shampoo’s environmental impact is caused by hot water in the shower. “Sustainability is a journey; we are committed to be part of the solution,” she reminded those in attendance.

Cradle-to-Cradle McDonough was back at the podium to explain the ins and outs of his Cradle-toCradle Institute, a private sector certification organization for improving product design to promote human and ecological health, eliminate the concept of waste, increase material reuse and promote the use of 100% renewable energy, clean water and socially responsible business practices. “In the cradle to cradle concept, waste is food, all materials are healthy and safe, and consumption is a good thing,” he insisted. “Cradle to cradle changes everything, but only if it is done on a global scale.” Making the most of our resources is critical if people want to maintain their ways of life. According to McDonough, pollution has lowered the oceans’ pH from 8.2 to 7.9 as the oceans absorb nearly half of the carbon dioxide generated by human. “We are on our way to carbonic acid in our oceans,” he insisted. If threats to the ocean weren’t enough, happi.com

perhaps threats from regulators are enough to move marketers toward action. McDonough noted that new regulations, such as California’s AB1879, the Green Chemistry Initiative, will force consumer product companies to create sustainable products and divulge their content. “You’re going to figure out what’s in your product and get rid of the bad stuff,” he insisted.“The Institute can help you do that.” Yet, McDonough insisted that his Institute isn’t about stifling economic growth—it’s about encouraging and enhancing it. He called growth good in ecocentric design. Some consumer product companies that have already benefitted from the Institute’s expertise include Kiehl’s and Aveda, which improved material reutilization, and Method, which is a leader in water stewardship. Other companies, such as Shaw Industries, are reusing Nylon 6 for carpeting, while P&G is making undrinkable water potable. “(With) Cradle-to -Cradle certification, we can make sustainable products in our lifetime,” he insisted. “We want to be the agent of change. We want you to join the ‘more good team.’ Join us.”

What to Buy from Whom? If consumption is good, then what exactly should consumers buy if they want to be stewards of the earth? Rik Kutsch, executive director of the Union for Ethical Biotrade (UEBT), provided some insight on ethical sourcing and biodiversity attitudes among consumers. For example, biodiversity is not top-of-mind in the US. According to UEBT, while 93% of Brazilians and 98% of the French are aware of biodiversity, just 52% of Americans are aware of biodiversity. However, Kutsch predicted that by 2015, biodiversity awareness will grow substantially. If he’s right about that, cosmetics companies may face an uphill battle for the hearts and minds of shoppers. That’s because, according UEBT research and interviews, only 40% of consumers trust cosmetic companies when it comes to issues such as ethical sourcing. July 2011

Sustainable Cosmetics

“Eighty percent of consumers want to be better informed about sourcing practices,” he insisted. Kutsch urged the audience to be upfront about how and where they source their materials, insisting that for more consumers, biodiversity has become a global issue. Peter Lovett and Elitza Barzakova provided insights on how the USAID West Africa Trade Hub is improving people’s lives as it delivers a reliable, sustainable supply of shea to a range of industries, including cosmetics. By harvesting shea sustainably, companies improve the lives of West Africans, reduce their carbon footprints and protect the ecosystem, they said. Similarly, May E. Spaull, director of new category innovation, Fair Trade USA, explained how Fair Trade practices ensure quality products, as they improve lives and protect the planet. Spaull insisted that by utilizing Fair Trade, companies will deepen the consumer’s connection to their products. She insisted that 75% of consumers have an improved brand perception for products that are Fair Trade-certified and 47% of them are willing to pay more for FT products. According to Spaull, there are 150 FT-certified beauty products in the US and 320 FT-certified products globally.

Henkel’s Efforts Henkel has emphasized sustainability for decades and continues to implement it along the value chain as part its holistic approach to sustainability, explained Pete He, senior research fellow, R&D and sustainability, Henkel Consumer Goods. The company has already achieved and exceeded many of the sustainability targets it set to accomplish in 2012. For example, Henkel has decreased energy consumption by 21%, reduced its waste footprint by 24% and reduced water consumption by 26%. But the company wants even more. At last year’s World Detergent Conference, Henkel chairman Kaspar Rorsted urged the industry to consider collective actions to boost the sustainability of business activities by a factor of three for 2030. In North America, Henkel’s three-point July 2011

•

More than 180 personal care executives attended the Sustainable Cosmetics Summit in New York City.

plan includes a commitment to “eco-innovation” for its products and supply chains; strengthening sustainability partnerships with stakeholders in its business value chain and enhancing employee and community engagements through its “Ecommitment” program, which is designed to motivate employees to reduce work-related safety, health and environmental impacts, support local sustainability efforts and share Henkel’s best practices and successes. Through these efforts, Henkel has improved the environmental footprint for a wide range of products, including Schauma shampoo and Dial liquid hand soap. Now, the company has teamed up with Arizona State University researchers to determine if algae or cyanobacteria photosynthesis can be an effective alternative route to produce bio-based chemicals for consumer products. Moreover, the company is measuring its Eco-innovations to understand the impact of its efforts. For example, by reducing a liquid cleaning package from 3.0 liters to 1.875 liters, Henkel found the new solution to be about 40% more sustainable.

The CEO’s View The Summit included a lively discussion among CEOs from five natural personal care companies: Mirran Raphaely, Dr. Hauschka Skin Care; Karen Behnke, Juice Beauty; Ido Leffler, Yes to Carrots; Jasper Van Brakel, Weleda North America; and Nick Vlahos, Burt’s Bees. Most of them agreed that certihappi.com

fication was secondary to product efficacy. That said, there was also consensus that a major challenge for natural and organic brands is to provide greater authenticity to consumers, who remain very confused about what terms such as“natural”and“organic” actually mean. Amarjit Sahota, president of Organic Monitor, tried to clear up this confusion with some simple definitions. Organic cosmetics contain certified organic ingredients and/or meet private standards; i.e., USDA or Ecocert. Natural cosmetics are made from plant extracts and natural ingredients and contain low or minimal amounts of “synthetic” chemicals, such as SLS or SLES. But Sahota warned the audience that while offering natural or organic products was a successful strategy three or four years ago, today it is all about being sustainable, which just might explain why Organic Monitor has a full slate of Summits on tap during the next year (see box below). •

More on Sustainability Organic Monitor has announced the dates of the next edition of its Sustainable Cosmetics Summit: • Asia-Pacific, Hong Kong, Nov. 7-8, 2011; • Europe, Paris, Nov. 28-30, 2011; • North America, New York, May 10-12, 2012. More info: www.sustainablecosmeticssummit.com

happi • 59

The Promise Land:

Developing Lotions & Creams that Deliver A skin care product works best when it is uniformly distributed over the stratum corneum, remains within the confines of the stratum corneum and retains its chemical integrity for the duration of use. A HallStar researcher offers some suggestions on how to protect skin from UV, water loss and other maladies. Gary A. Neudahl • The HallStar Company

P

formulators have tough jobs. They must juggle the requirements of marketing, manufacturing and regulatory staff while designing consumer-friendly products that meet customers’ expectations the first time and every time they use them. A fundamental rule is also implicit in their work: create a product that consumers need and want to use, because it delivers on all the ERSONAL CARE PRODUCT

properties they have been led to expect. If formulators are crafting a sunscreen, it must protect the consumer. If they say their product is anti-aging, then the active ingredients have to be present…and active. Complicating this issue, it seems like every week some new finding or study about consumer health is trumpeted. A seemingly endless stream of studies yields the latest insights into factors that affect

people’s well-being, sometimes with contradictory conclusions.1 This is due, in part, to the various pathways by which substances may enter—and affect—the body. Most substances enter the body through food and drink. Perhaps surprisingly, the second largest quantity enters through the lungs. It takes a lot of oxygen to keep the metabolic fires burning! But also of substantial importance are the substances applied to, and sometimes entering through, the largest human organ, the skin (Figure 1).2 That is the focus of this article: how to create lotions and creams that deliver what formulators promise, where they promise, and when they promise. Not surprisingly, the discussion starts with the canvas: the human skin.

Understanding Skin Skin is comprised of two main layers, held to the underlying tissue by the hypodermis, or subcutaneous fat layer, which also provides a measure of padding and insulation from temperature change. The inner layer of skin is the dermis, which includes blood vessels, nerve endings, hair follicles, and sweat and sebaceous glands; enmeshed in connective tissues that include elastin and collagen and that provide skin much of its mechanical strength. The outer layer is the epidermis, which has five main sublayers and is home to four main cell types: keratinocytes (the vast majority, for barrier formation), melanocytes (for pig-

Fig 1: The Five Layers of the Epidermis 60 • happi

happi.com

July 2011

The Promise Land

•

ment formation), Merkel cells (for sensory perception) and Langerhans cells (for immune response). As cells comprising the epidermis migrate to the surface, they become keratin-rich, change shape, and ultimately die; forming the outermost sublayer of the epidermis, the stratum corneum. The stratum corneum has a “brick and mortar” type structure in which the hydrophilic cell remnants, called corneocytes, are the bricks and complex, bilayer-rich lipids (mainly ceramides, fatty acids, and cholesterol) are the mortar.3 The stratum corneum gradually sloughs off (desquamates) over a period of several weeks, replaced by cells from beneath. It is the stratum corneum that provides a water-resistant, albeit water-swellable, barrier from microbes, polymers and many other substances to the layers below.

Preserve and Protect What are some of the issues formulators must address when formulating lotion and cream (emulsion-based) skin care products? Products intended to protect skin from solar irradiance, toxic-substance absorption, and/or evaporative water loss function best when the product is uniformly distributed over the stratum corneum, remains within the confines of the stratum corneum and retains its chemical integrity for the duration of use. Consider sunscreens as an example. Sunscreen product development and regulations originally focused primarily on providing protection from the burning (UVB) rays of the sun.4 This measure of protection is expressed as the sun (or, more accurately, sunburn) protection factor or SPF. The longer a person can stay in the sun without perceptible erythema (reddening of the skin), the higher the SPF of the applied product. Protected by a properly applied SPF15 sunscreen, a relatively fair-skinned person can be exposed to 15 times the UVB radiation than when unprotected before starting to turn red. Sun protection eventually proved to be about more than preventing sunburns. By the 1980s, it was evident that skin must be shielded from not just UVB rays, but also July 2011

Skin is an exceptional canvas to apply beautifying creams and lotions.

from the aging (UVA) rays of the sun. Further, both UVA and UVB rays were confirmed to be associated with various forms of skin cancer. Hence, sunscreens in many parts of the world now deliver not just sunburn protection, but also a UVA protection factor (UVA-PF, or PFA) rating and/or UVA protection that is proportionate to the UVB protection that the product also provides.5 New sunscreen regulations were recently released by the US Food and Drug Administration. Now that the protection requirements of the sunscreen product have been established, the next issue is effective delivery. A room-darkening window shade is most effective when it is placed against the frame of a window, covers the entire window, remains closed and in place, and does not fall apart for as long as the sun is shining. Likewise, the best protection of the skin from UV occurs when a sunscreen is uniformly distributed over the entire surface of the stratum corneum, remains in place and is stable for the duration of sun exposure. Uniform distribution is achieved with an emulsion system that promotes both happi.com

ready spreading and uniform deposition over the skin during application. The emulsion must not be so thick that it does not spread evenly, nor so thin that it pools in crevices and pores, leaving the remainder of the stratum corneum under-protected. Pooling can be prevented, even in very fluid emulsions, by incorporating yieldvalue additives such as xanthan gum and cellulose gum. The sunscreen is kept in place through the use of water-resistanceenhancing polymers, such as C30-38 olefin/isopropyl maleate/MA copolymer, octadecene/MA copolymer, and VP/ eicosene copolymer. Various procedures for testing the degree of water resistance have been published.6,7 Perhaps the most difficult task is enhancing the stability of photolabile sunscreen active ingredients such as avobenzone. One way to do so is by optimizing the polarity of the oil phase.8 This typically involves increasing the polarity of the oil phase by replacing commonly used, but not very polar sunscreen solvents, such as isopropyl myristate and C12-15 alkyl benzoate, with more polar solvents, such as butyloctyl salicylate, diisobutyl adipate happi • 61

• The Promise Land

and dimethyl capramide. Even more effective in many instances is the incorporation of singlet- and/or triplet-state-quenching compounds9 that allow avobenzone to transfer its excited state energy very rapidly. A rapid return to the ground state reduces the likelihood that avobenzone will instead move to a less excited state by degrading. By returning to the ground state, it is once again able to absorb UVA radiation. In most formulations, triplet-state quenchers such as octocrylene, polyester-8 and undecylcrylene dimethicone, can markedly improve avobenzone photostability. In sunscreens containing both octinoxate and avobenzone, which are notoriously photolabile, the extremely rapid singlet-state quencher, ethylhexyl methoxycrylene, can provide a much-needed boost to photostability.

Getting Under the Skin Next, consider a lotion or cream that carries ingredients that must interact with living skin cells to provide the desired result. Examples include local anesthetics, such as benzocaine and pramoxine, which relieve itching and irritation from insect bites, and skin-whitening agents, including arbutin, kojic acid and hydroquinone, which reduce melanin content in the skin. However, some ingredients target more than skin cells. Topical antibiotics, such as bacitracin, neomycin and polymyxin b, are used to fight pathogenic bacteria; topical antifungals, such as ketoconazole, miconazole and tolnaftate, are used to reduce fungal growth; and benzoyl peroxide is used to eliminate bacteria associated with acne. All of these microorganisms are unwelcome guests when they establish

The right formula creates an elegant feel on skin.

colonies in the skin. Regardless of the specific cells targeted, the intended results cannot be achieved if the functional ingredients remain on the surface of the stratum corneum. They must penetrate, in some cases, as far as the basal level of the epidermis, to reach their targets. In addition, they must arrive in concentrations and at rates sufficient to exert their desired physiologic effect. How can this be achieved? There are two routes for products that are applied to intact skin: one, penetration via pores and their associated glands, which exude sebum or sweat that is destined for the surface of the stratum corneum, and/or two, penetration through the extracellular lipid matrix that holds the corneocytes together. Regardless of the route, achieving permeation may be easier said than done, especially when the molecular weight of the functional ingredient increases to more than approximately 500 daltons and/or if it is exceptionally polar. After all, the stratum corneum functions as a barrier, and does so quite efficiently when its integrity is intact. So, what’s the solution? Two common approaches are the use of liposomes, in which functional ingredients are encased for transport,10 or penetration enhancers, which solubilize functional ingredients and disrupt the bilayers of the extracellular lipid matrix, resulting in their fluidization and/or extraction.11 Indeed, many suppliers provide their functional ingredients either encased in liposomes or solubilized in solutions containing penetration enhancers to assist the formulator with the development of efficacious products. Judicious selection of liposomal composition, or of penetration enhancers such as ethoxydiglycol12 or dimethyl isosorbide,13 ensures introduction of the functional ingredient without appreciable irritancy.

Keeping Products Stable A formulator can develop an amazing product, but it is useless if it decomposes while sitting on a store shelf. Stability and aesthetics are the primary physical factors that come into play when preparing a 62 • happi

happi.com

July 2011

The Promise Land

product for retail. Product stability assessments, especially for cosmetic products, often focus on the physical stability of the product through freeze-thaw cycling; during refrigerated, room- and elevated-temperature storage; and while under fluorescent lighting and in indirect sunlight. For products with active and/or functional ingredients, these assessments are not sufficient. Active ingredients must also be tested to affirm their stability during manufacture, in storage and in use. Anti-aging products based on retinol are a good example. Retinol is both oxidatively and photochemically unstable. As a result, when formulating with retinol, the first step in stability evaluation is confirming that the retinol does not thermally or oxidatively degrade during the manufacturing process. The next step is verifying that the retinol remains stable under the various storage conditions that are anticipated for the product. The final step is ensuring its stability in use, which is very important since retinol is quite photolabile. Photostability can nonetheless be achieved by incorporating the singlet-state quencher, ethylhexyl methoxycrylene, in the oil phase with the retinol.14 While inferior aesthetics may prove acceptable for products designed to provide immediate relief from a painful malady, a product designed as part of a daily skin care regimen must have pleasant aesthetics during dispensing and application, after dry down and during cleansing to ensure continued consumer use. Dispensing characteristics can be modified by the appropriate selection of emulsifiers. Liquid emulsifiers tend to yield flowable lotion consistencies, while solid emulsifiers tend to yield firmer cream consistencies. The addition of a small amount (<1%) of cetyl and/or stearyl alcohol can often be used to convert a lotion to a cream or a cream to a paste. When high levels of oils are required to achieve the desired product performance, an oily or greasy feel during application and/or a glossy appearance following application may result. These can be mitigated through the incorJuly 2011

poration of impalpable spherical silica or aluminum starch octenylsuccinate. For an even more elegant feel—especially appropriate for facial skin care—silicone elastomers such as C30-45 alkyl cetearyl dimethicone crosspolymer, dimethicone/bis-isobutyl PPG-20 crosspolymer or polysilicone-11 may be utilized. Ready removability is usually not a problem for oil-in-water (O/W)-based lotions and creams. For water-in-oil (W/O) systems, including a mid-HLB emulsifier in the oil phase may be beneficial.

Summary Developing lotions and creams that deliver what they promise, when they promise, is the art of personal care formulation. This article addresses some of the considerations that must be taken into account to ensure that lotion and cream products live up to their formulators’ claims. The technology that is driving our industry to new heights requires excellent science and knowledge. It is exciting to work in this dynamic field. •

References 1. Dr. John Briffa. “Why the sun is good for you,” The Daily Mail. Accessed April 8, 2011. http://www.dailymail.co.uk/health/article48192/Why-sun-good-you.html. 2. Wikipedia. Accessed April 8, 2011. http://en.wikipedia.org/wiki/File:Gray940.png. 3. Miranda A. Farage, Kenneth W. Miller, Howard I. Maibach, eds., Textbook of Aging Skin, (Berlin, Heidelberg: Springer-Verlag, 2010), chap. 7, page 58, figure 7.4. http:// books.google.com/books?id=9-ALWZhXomAC&pg=PA55&lpg=PA55&dq=intercorneocyte+lipids&source=bl&ots=t0zC7OSzH7&sig= VAsMj6cNVMCplIKtgfcGSGU2iZU&hl=en&ei =Ap6XTaC0N8uDtgfp0tmKDA&sa=X&oi=boo k_result&ct=result&resnum=10&ved=0CFYQ6 AEwCQ#v=onepage&q=intercorneocyte%20lip ids&f=false 4. Sunscreen Drug Products for Over-theCounter Human Use: Establishment of a Monograph; Notice of Proposed Rulemaking, Proposed Rules, 43(166) FR 38206-69, Aug. 25, 1978. (http://www.fda.gov/downloads/ Drugs/ DevelopmentApprovalProcess/DevelopmentResources/Over-the-CounterOTCDrugs /StatusofOTCRulemakings/ucm090127.pdf) 5. European Commission Consumer Affairs website, last modified Oct. 13, 2010, http://ec.europa.eu/consumers/sectors/cosmethappi.com

•

ics/cosmetic-products/sunscreen-products/ index_en.htm. 6. 21 CFR 352 Sunscreen Drug Products for Over-the-Counter Human Use, Code of Federal Regulations. Revised as of April 1, 2010. http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFRSearch.cfm?CFRPart=352&show FR=1 (§ 352.76) or http://www.fda.gov/downloads/Drugs/DevelopmentApprovalProcess/DevelopmentResources/Over-the-CounterOTCDrugs/Statusof OTCRulemakings/ucm090244.pdf (§ 352.76) 7. COLIPA Guidelines: Guidelines for Evaluating Sun Product Water Resistance, December 2005. http://www.colipa.eu/publications-colipathe-european-cosmetic-cosmetics-association/ guidelines.html?view=item&id=18. 8. Bonda, 2002. Methods of making and selling a sunscreen composition. US Patent 6,770,270, filed March 25, 2002, and issued Aug. 3, 2004. 9. Craig Bonda, “Sunscreen Photostability 101,” HAPPI, October 2009. http://www.happi. com/articles/2009/10/sunscreen-photostability101. 10. Liposomes. Centerchem, Inc. [brochure]. Accessed April 8. 2011. http://www.centerchem.com/PDFs/Liposomes%208Es.pdf 11. Pankaj Karande et al.“Design principles of chemical penetration enhancers for transdermal drug delivery.” Proceedings of the National Academy of Sciences of the United States of America. March 2005. http://www.pnas.org/content/102/13/4688.full. 12. Innovadex website. Accessed April 8, 2011. http://www.innovadex.com/documents/1026726 .pdf?bs=832&b=33781&st=20. 13. Super Refined Arlasolve DMI. Croda Health Care [brochure]. Accessed April 8, 2011. www.crodalubricants.com/download.aspx?s=13 3&m=doc&id=240. 14. Craig Bonda and Jean Zhang, “Photostabilization of Retinol and Retinyl Palmitate by Ethylhexyl Methoxycrylene,” Cosmetics & Toiletries, January 2011. http://www.cosmeticsandtoiletries.com/formulating/ingredient/aids/1128

About the Author Gary A. Neudahl, product application manager, The Hallstar Company, has spent 30 years in the personal care industry, developing hair care, skin care, sun care, color cosmetics, and toiletries formulations, having brought many finished products through scaleup to full production. He has been a member of the Society of Cosmetic Chemists since 1990 and has made presentations at meetings around the country. More info: [email protected] happi • 63

INQUIRE Within Consumers look to nutritional supplements for inside-out beauty benefits.

Melissa Meisel • Associate Editor

T

NUTRACEUTICAL BEAUTY trend shows no signs of slowing down for 2011, according to industry insiders. In the hair/skin/nails supplement category, Nutrition Business Journal estimates that US consumer sales for these condition-specific supplements reached $520 million in 2009—growing 10% over 2008 sales levels (2010 estimates aren’t in yet). According to Nica Lewis, head consultant, beauty innovation, Mintel Group, London, nutricosmetics ingredient trends vary by region. Superfruit antioxidants continue to be featured in Western products, while Eastern brands highlight hyaluronic acid and collagen in formulas. Fish oils, glucosamine and magnesium continue to be featured in new vitamins and supplements all across the globe. “Ingestible beauty products make a variety of specific claims (anti-aging, anti-cellulite, anti-acne, anti-hair loss) and more general ones,” noted Lewis. She cited the following claims as examples: “provides anti-aging power to support longevity and overall health;”“helping skin to stay healthy and nourished, combat premature aging and maintain younger looking skin;”“support hair health, growth and help repair the damaged hair follicles and provide a healthy shine and fullness,” to name a few. HE

Alluring Ingredients The top ingredients in beautifying supplements consist of the“obvious”vitamins the 64 • happi

body needs like vitamins A, C, and E; as well as some “notso-obvious”ingredients such as antioxidant-rich botanical extracts that fight free-radical attacks, collagen Prestige personal care marketer Anthony for Men recently branched out into that can help boost nutraceuticals with Anthony Inside supplements. skin tone and even body-building proteins, noted Scott-Vin- proprietary blend of antioxidants. “Beauticeuticals allow you to enhance cent Borba, Borba, Inc., Woodland Hills, CA. When he started his company, Borba de- the benefits of your topical skin care prodcided to focus on fruits that have the ucts,” said Borba. “When topicals and instrongest antioxidant power: açai berry, gestibles are used in conjunction, you’ll be noni berry, goji fruit, guanabana fruit, ly- able to obtain the best overall benefits for your skin. Supplements can help clarify, chee fruit and pomegranate. “The key that I’ve found is to make the firm and replenish skin as well fight signs ingredients bio available so that our bodies of aging from the inside out.” Tom Porter, president and chief execucan put them to work right away—and you can see results immediately,”he told HAPPI. tive officer of Malibu Wellness, Malibu, CA, “These powerful antioxidants serve to re- is “C-ing” the future in that famous citrus duce fine lines and wrinkles, ward off free vitamin. His company’s latest rollout is Viradical damage and detoxify to give skin a tamin C Inside/Out—crystals made from 100% L-ascorbic acid that consumers healthy natural radiance.” The latest“nutritional beauticeutical”roll- sprinkle into water. The products are said to outs from Borba include Clear Skin Capsules soothe skin and improve the appearance of featuring Borba’s Dermal Complex, a pro- rosacea, eczema, psoriasis and other inprietary antioxidant herbal blend to support flammatory conditions. “Vitamins C, E and B complex, espehealthy skin as well as vitamin A and zinc; Age Defying Liquigels that feature alpha cially niacin, are some of the most imporlipoic acid and coenzyme 10; as well as Skin tant vitamins,” he said. “Besides the Balance Gummi Bears that fend off signs of enzymes and minerals well documented, aging with vitamins A, C, E and B12 and a probiotics are one of the hottest growth happi.com

July 2011

Nutritional Beauty Products

categories in the supplement market. The best approach to healthy hair, scalp and skin are by ingesting vegetables and some fruits loaded with vitamins, enzymes and minerals. Most Americans do not ingest enough of these important nutrients— therefore, the second best approach is with supplements that are active and formulated in balanced, moderate portions.” As we age, cell production slows, which causes skin to thin and lose its youthful flexibility. Coenzyme Q10, a hearty antioxidant, protects cells from chemicals and other harmful factors, noted Steve Goddard, president, Pravana Naturceuticals, Woodland Hills, CA. “After the age of 30, skin produces less collagen and elastin. Coenzyme Q10 can boost cell production and reduce the signs of aging. It also naturally protects our body and cells from free radical damage and works to shield against harmful environmental effects, which can be detrimental to hair, skin and nails,” he said. Bladderwrack powder is another key nutritional source, noted Goddard. This ingredient is full of minerals that aid in nourishing and cleansing the skin of toxins that cause dryness, wrinkles and excess fluid retention. Rich in iodine, calcium, magnesium, potassium, sodium, sulfur, silicon and iron and high in some B-complex vitamins, bladderwrack provides a comprehensive blend of essentials nutrients for skin, hair and nails. Both Coenzyme 10 and bladderwrack can be found in the Biojen 9 Nutri-Balance Proprietary Blend from Pravana, said Goddard.

The beauty supplement market has even found a link to the budding male grooming marketplace with the recent nutraceutical rollout from prestige personal care marketer Anthony for Men. Anthony Inside is a new range of supplements created specifically for guys. The line includes six options that target male-specific needs—including hair and skin boosters. “There is a definite change in the overall popular trends in the market. People are buying, seeking and demanding more and more natural or herbal products over their chemical counterparts,” noted Anthony Sosnick, founder, Anthony For Men, New York City.“This comes as a direct outcome of the past three to four decades of awareness programs and campaigns ceaselessly promoted by naturalists and the pro-animal activists. People, are at last waking up to the emergency calls that nature has been sounding for a long time now.”

Burgeoning Trends Taking into account all market factors and trends, Packaged Facts expects annual sales growth in nutritional supplements to gradually improve during the new few years. Even factoring in 2010, when it expects a slight correction to occur due to the lingering impact of the recession, sales growth will remain in the 7-8% range, with the higher rates of growth occurring toward the end of the five-year forecast period. By this assessment, sales of nutritional products in general will reach $13.2 billion in 2014, yielding a compound annual growth rate of 7.1%.

New Deal for Borba

B

ORBA, INC.

has signed a distribution agreement with Haralambos Beverage Company—the distributor of Vitamin Water, Snapple, Gatorade and Arizona Ice Tea—in which Borba’s cult-favorite Skin Balance Waters will now be available for purchase at drug, grocery and convenience stores in Southern California. Borba Skin Balance Water, a favorite among Hollywood’s elite and beauty gurus, was the first beauty drink. Made with exotic, powerful super foods including pomegranate to clarify, açai berry for anti-aging, lychee to replenish and guanabana to firm, the waters are designed to boost water’s natural hydrating properties for optimal skin care benefits.

July 2011

•

Lewis of Mintel predicts beauty supplements will continue to be influenced by broader social trends like sustainability and convenience, as well as developments in new ingredients, new regulations and changes in distribution and pricing. “I think that people are finally accepting the idea of nutraceuticals and that you really are what you eat,” said Borba. “A greater acceptance of beauty supplements will prevail in 2012 and that we’ll see more companies coming out with their own take on beauticeuticals.” “Consumers are still resisting the overall association with supplements exclusively for cosmetics,” observed Porter of Malibu Wellness.“Most of the growth in the supplement category is in the health foods industries where customers are already seeking the same supplements. The opportunity for salon professionals to sell supplements has great potential as salons are where clients look for professional advice for their hair, nails and skin.” Computers, phones and electronics are not the only items that advance through technology, the beauty industry is going high-tech as well, noted Goddard of Pravana. “As time progresses and technology advances, new minerals, vitamins and remedies to efficiently protect our bodies will arise,” he said. “While scientific finds in the health world can be manufactured, quite often the most advanced antioxidants or anti-aging ingredients are ones that have been on this earth far longer than we have.”•

“I’m so thrilled to be expanding our Skin Balance Water’s reach and availability,” said Scott-Vincent Borba. “As the first beauty beverage amped up with super food benefits, I feel that consumers will be thrilled to quench their thirst for beauty and health conveniently at all their favorite local stores.” Borba’s “Inside Out” beauty philosophy extends beyond one’s complexion– the brand is contributing 6,000 units of the Replenishing Skin Balance Crystallines, designed boost skin’s moisture content and aid in hydration, to Operation Hot, a non-profit club whose mission is to send deployed American troops personalized care packages to boost morale and spirits.

happi.com

happi • 65

Breakthroughs For Break Outs? Not to mention wrinkles and age spots. The mapping of the human genome is creating new opportunities for cosmetic chemists to create effective formulas for a variety of personal care problems. Tom Branna • Editorial Director

C

GENOME EFFECT. The mapping of the human genome a decade ago was hailed as a breakthrough for the medical field. Turns out, it may start paying dividends for the global cosmetics industry, too. The genome was just one topic of presentations at the Society of Cosmetic Chemists’ Scientific Seminar, which was held in Las Vegas last month. The seminar attracted approximately 270 chemists from the US and around the world. The program included sessions on skin, hair and sun care, along with the aforementioned genomics. Karl Lintner, president of Kal’Idees, served as chairman of the Committee on Scientific Affairs. Randy Wickett of the University of Cincinnati, is president of the Society. The seminar opened with a session on skin that was moderated by Howard Epstein of EMD. Reinhold Dauskardt of Stanford University delivered the Henry Maso keynote award lecture. Dauskardt noted that so little is known about how skin behaves at the biomechanical level. Nevertheless, he took the audience on a fascinating trip of skin damage and the effect of cosmetic treatments. Dauskardt pointed out that skin is extremely sensitive to moisture, calling it a composite system that is very stiff (stratum corneum) over a very compliant layer (epidermis and dermis). For example, the SC absorbs water readily and buckles as the moisture level increases. In contrast, it cracks easily when moisture is lacking. ALL IT THE

66 • happi

Too often, however, cosmetic chemists must rely on non-technical jargon to explain the skin’s condition. To overcome this, Dauskardt explained a cadre of thin-film methodologies to quantify skin stiffness, stress and fracture resistance. Resistance to damage, for instance, can be measured using intercellular delamination. A typical cosmetic ingredient that delaminates corneocytes is sodium lauryl sulfate (SLS). “The stresses on the stratum corneum can be completely explained by the amount of water in the tissue,” he noted. Therefore, strategies to promote or maintain skin hydration, including occlusive agents and

Joyce

Maso

presents

Professor

Reinhold

Dauskardt with the Henry Maso Award Lecture Certificate.

happi.com

emollients, are paramount. For example, the amount of UV damage can be correlated to the amount of moisture in the skin. Dauskardt noted that the stiffness of the SC doesn’t change when damaged by UV, but the lipid content is lowered. That results in a weaker SC that is more prone to fissures. “The stratum corneum is a barometer of the amount of moisture in the environment,” he concluded. With controversy surrounding hydroquinone, chemists are searching for an effective skin whitener. Romain Reyaud of Soliance explained that arabinoxylo-oliogosaccharide actually works better than kojic acid and works faster than arbutin, which was confirmed in a clinical study involving a panel of 22 middle-aged Asian women who applied a cream containing 3% arabinoxylo-oliogosaccharide vs. 2% arbutin. Arabinoxylo-oliogosaccharide inhibits melanogenesis through its action on TRP1 (an enzyme involved in melanogenesis) and tyrosinase. The material is also readily biodegradable and Ecocert-validated. But how does one measure these materials? David Boudier of Silab explained how digital imaging is being used to quantify cosmetic effects. The imaging quantification process involves three key steps: acquisition, via fluorescence microscopy; digital photographs or fringes projection; processing, i.e., contrast enhancement and noise filtration; and analysis, such as comparison of variances of paired or independent samples. Boudier explained that Silab July 2011

SCC Seminar

Materials, explained how cationic cassia polymers can enhance deposition. In the Lubrizol tests, cationic cassia polymers (at 1.5%) deposit silicone much more efficiently than cationic guar or PQ-10. As a result, formulators can use less silicone and cationic polymer than formulations based on the benchmarks to achieve at least comparable if not better conditioning performance (For a detailed look at this chemistry, see p. 84, HAPPI, December 2010).

uses imaging quantification in its in-vivo laboratory to highlight the cosmetic efficacy of its natural active ingredients.

A Look at Hair SCC vice president Joe Dallal of International Specialty Products moderated a session devoted to hair. According to Trevor Evans of TRI-Princeton, large molecules such as surfactants, polymers and oils dominate hair care chemistry. “But water is a small molecule and affects hair more than anything I know,” he told the audience before launching into his presentation on how chemists can manipulate the bulk properties of hair by utilizing small molecules such as glycerol, glycolic acid and lactic acid. Heat damages hair, too, and that damage increases significantly when temperatures rise above 160°F. Manuel GamezGarcia of BASF explained how the physical and chemical processes responsible for hair straightening and hair damage depend on the temperature profile across the hair fibers. He explained that some polymers improve heat transfer, noting that if higher levels of heat transfer occur the result will be more damage to hair.

•

Genomics Gina Cosby presents Brian Czetty with the SCC Award sponsored by Rhodia.

Michael Philbin, AkzoNobel Surface Chemistry, explained how polymer compositions made by polymerizing vinyl pyrrolidone in the presence of maltodextrin delivered similar performance in a hair gel to PVP with a K value of 30. It indicates that a performance equivalent to commonly used synthetic polymers can be achieved from a polymer having a natural component of more than 50% of its composition. Carole Lepilleur, Lubrizol Advanced

Friday’s sessions got underway with presentations devoted to the role of genomics in personal care chemistry. Philip Ludwig of Arch Personal Care explained how human genomic microassays can identify effective ingredients for personal care. These microassays give cosmetic chemists new opportunities to examine the influence of skin ingredients on skin cells in ways that were not previously possible. In the Arch study, researchers reviewed more than 200 genes related to skin function in order to examine the influence of skin lighteners on melanocytes. “Human microassays can help guide your research,”he told the audience.“Gene

Southern Mississippi Student Earns Top Poster Award at Scientific Seminar

T

STUDENT POSTER SHOWCASE is held annually to promote student research in the cosmetic industry. This year there were 12 posters presented highlighting each individual student's ideas and research. Schools represented included Fairleigh Dickinson University, Long Island University, Jones County Junior College, University of Cincinnati, University of Southern Mississippi and the University of Toronto. The Poster Awards for the top four posters are sponsored by DD Chemco. Members of the Committee on Scientific Affairs judged the posters and the award for First Place went to Vipul Padman, University of Southern Mississippi for his poster entitled “The Effect of Polymer Backbone Rigidity and Hydrophilicity on Polymer-Surfactant Interaction and Phase Behavior.” Second Place was awarded to Jennifer Karr, University of Cincinnati, for her poster entitled “Modification of Skin Absorption while Maintaining Effective Evaporation Rates for N,N-diethyl-3methylbenzamide (DEET) using a Novel Encapsulation Method.” Third Place was awarded to Kathleen Davis, University of Southern Mississippi for her poster entitled “Effects of Carbomer on the Phase BeHE

July 2011

Participants in the Student Poster Session.

havior of Oil/Water/Poloxamer 184 Systems.” Fourth Place was awarded to Rania Ibrahim, University of Cincinnati for her poster entitled “Dermal Clearance Model for Epidermal Bioavailability Calculations.”

happi.com

happi • 67

• SCC Seminar

Honoring Theresa Cesario

D

URING THE AWARDS luncheon, SCC president Randy Wickett announced that the Society would honor Theresa Cesario, its long-time executive director, by renaming the luncheon The Theresa Cesario Awards Luncheon. Cesario died suddenly on Jan. 16, 2011. During the luncheon, the Society of Cosmetic Chemists’ Award, which recognizes the best paper presented at the 2010 annual scientific meeting, was awarded to Brian Czetty, Jeffery Domsic and Greg Hillebrand, Procter & Gamble (P&G), for the paper, “Powered devices for facial cleansing: should they occupy space in the facial cleansing device toolbox?” The award was sponsored by Rhodia Novecare.

expression and protein expression usually correlate.” A 24-hour topical treatment of three skin lighteners—hydroquinone, kojic acid and niacinamide—on melanocytes demonstrated a significant upregulation of the tyrosinase gene, which was demonstrated in protein assays as well. In addition, a critical iron binding protein gene, Ferritin (FTH1), was significantly upregulated in the gene assays as well as in protein assays, suggesting a role for iron in melanogenesis that was not previously appreciated, according to Ludwig. ISP has developed a new peptide to maintain expression of clock genes in conditions of stress-induced desynchronization by UVB or aging. According to Isabell Imbert, this development provides insights supporting the key role of clock and sirt-1 in chromatin remodeling, which plays a role in DNA repair. When applied twice a day at a 1% concentration, the material protected and repaired DNA, which significantly reduced UVB-induced damage. Moreover, positive modulation of clock gene expression leads to improved cellular metabolism as assessed by a 33% increase in collagen III production. According to Metabolon’s John Ryals, global metabolomics can help chemists create more effective products. Global metabolomics provides details of metabolism in biological systems and can be used to identify biochemical changes associated with aging, inflammation, tissue damage and repair, wound healing and skin diseases. Ryals said that metabolomics has applications in determining mechanism of action, safety and claims support. 68 • happi

“Metabolics can be used to identify biomarkers associated with aging, photodamage and wrinkles,” said Ryals, who noted that his company also worked with Colgate to identify effective active ingredients for oral care. That study found that Colgate Total significantly decreased the levels of inosine, lysine, putrescine and xanthine at gingivitis sites in as quickly as one week. Another way to assess cosmetics is via synchrotron light. Vivian Stojanoff of Brookhaven National Laboratory explained that synchrotron radiation provides a wide selection of non-destructive methods and techniques that are particularly well adapted to molecular structure and chemical analysis, and cell and element distribution imaging.

Sun Care The SCC Scientific Seminar was probably the last industry event to take place prior to the release of the US Food and Drug Administration’s action on sunscreens (see The Sunscreen Filter, p. 46 in this issue). Sun care

What’s Next?

T

SOCIETY of Cosmetic Chemists will hold its 2011 annual scientific meeting and technology showcase on Dec. 8-9 at the New York Hilton, New York, NY. The 2012 annual Scientific Seminar will be held May 31-June 1 at the Charleston Marriott, Charleston, SC. HE

More info: www.scconline.org

happi.com

was the topic of the final session of the seminar and was moderated by Lintner. Nava Dayan of Lipo Chemicals detailed results of a study to investigate the in vitro phototoxic effects of fractionated melanin and chlorpromazine HCl in three different cell lines: mouse embryonic fibroblast cell line, primary dermal fibroblasts and primary human keratinocytes. “Fractionated melanin was found to be non-phototoxic in both the mouse embryonic fibroblast cell line and the primary human keratinocytes,” said Dayan. In contrast, primary dermal fibroblasts showed little difference between light and dark controls. Meanwhile fractionated melanin did not show signs of toxicity or phototoxicity in either the mouse embryonic fibroblast cell line or the primary human keratinocytes; a finding that assures its safety as a cosmetic ingredient, according to Dayan. Sandy Dumont of Seppic provided details on how three in vitro models were used to evaluate the efficacy of cocoyl alanine as an anti-aging ingredient. Immunofluorescence was used to confirm the phenotype of extracted and cultured cells. The influence of H2O2 on epidermal stem cell-enriched cultures was investigated by measuring the size of the colony after hematoxylin-eosin staining as well as the proportion of survivingpositive cells after immunocytochemistry experiments. In another test, the level of resistance of ESCC to UVB was compared to that of total keratinocyte cultures by measuring cell viability in both cultures after UVB irradiation. Following these and other tests, the Seppic researchers concluded that cocoyl alanine has antiaging activity. The scientific seminar’s final speaker, consultant Nick Morante, explained how light diffusion can be used to diminish the appearance of lines and wrinkles. Ingredients such as interference pigments, glass beads, spherical silica, aluminum oxide and multilayered particles can provide instant results for the consumer and are less expensive than anti-aging active ingredients, according to Morante. • July 2011

50

THE TOP

M&A Activity Heats Up

T

HE ECONOMY REBOUNDED STRONGLY last year and so too did merger and acquisition activity. When you start flipping through The Top

50, you may be surprised at the companies and brands that have changed hands during the past year. The biggest, and perhaps the most inscrutable, is also the most recent. In June, Sealed Air agreed to acquire Diversey Holdings in a $4.3 billion deal that is aimed to add sales to emerging-market food processors who are concerned about product safety. Sealed Air, a maker of protective packaging, chose Diversey because it’s the No. 1 player in food-safety related products in emerging markets, according to Sealed Air CEO William Hickey. Maybe, but bubble wrap and I&I cleaners doesn’t appear to be a perfect fit. The purchase of Sturtevant, WI-based Diversey is the largest of at least 28 acquisitions of soap and cleaning preparation companies for which financial terms were disclosed in the past five years, according to data compiled by Bloomberg. Of course, there’s been plenty of acquisition activity on the personal care side of the business as well. For the past couple of years, Sara Lee has been cutting its exposure to household and personal care by selling such well-known brands as Ambi-Pur and Sanex—all in an effort to concentrate on its core food business. But as we went to press, Sara Lee was said to be an acquisition target of Smithfield Foods Inc., owner of the world’s biggest hog slaughterhouse. Smithfield execs are said to be licking their chops over the thought of adding brands like Jimmy Dean, Hillshire Farm and Ball Park to their cupboard. But enough about cold cuts…let’s get back to cosmetics and personal care. The Top 50, our annual look at the leading US companies in the household and personal products industry, has been transformed by acquisitions such as Unilever’s $3.7 billion acquisition of AlbertoCulver, Sanofi’s purchase of Chattem for $1.9 billion and Coty’s estimated $1 billion purchase of OPI. At the same time, several brands have changed hands; such as Combe’s multi-brand sale to Reckitt Benckiser and Blistex. Bigger deals may be on the horizon. Just last month, rumors were floating around the internet about a possible (and preposterous) acquisition of Unilever by P&G! To keep up with the tips, trends and takeovers, keep reading HAPPI and HAPPI.COM. To catch up on what’s happened in the past 12 months or so in our industry, take a look at The Top 50 on the following pages. Finally, to learn more about the multibillion companies in our industry with headquarters outside the US, firms such as L’Oréal, Shiseido and, of course, Unilever, be sure to read The International Top 30, which is published next month.

July 2011

happi.com

happi • 69

THE TOP 50

ALPHABETICAL LISTING Alberto-Culver ............................16 American International..............36 Amway...........................................7 Avon...............................................4 Blyth............................................21 Chattem ......................................32 Church & Dwight........................14 Clorox ..........................................12 Colgate-Palmolive.........................2 Combe..........................................35 Coty ...............................................9 Dermalogica ................................44 Diversey ......................................10 Ecolab ............................................7 Elizabeth Arden ..........................18 Energizer.....................................28 Estée Lauder.................................4 Gojo..............................................42 Guthy-Renker .............................18 Herbalife .....................................43 Hydroxatone................................41 Inter Parfums .............................28 Jafra ............................................27 Johnson & Johnson.......................6 John Paul Mitchell Systems.......24 Limited .......................................11 Markwins ....................................30 Mary Kay ....................................13 Merck...........................................25 Method ........................................48 Murad..........................................49 Nu Skin .......................................20 Obagi ...........................................47 Parlux ..........................................45 Philosophy...................................36 Phoenix Brands ..........................40 Prestige Brands ..........................32 Procter & Gamble .........................1 Revlon..........................................17 Seventh Generation....................38 SC Johnson ...................................3 Shaklee........................................31 Spartan........................................46 State ............................................50 Sun Products...............................15 Tupperware.................................22 Turtle Wax ..................................39 WD-40..........................................34 Yankee Candle ............................23 Zep ...............................................26 70 • happi

1. Procter & Gamble 2. Colgate-Palmolive 3. SC Johnson 4. Avon 4. Estée Lauder 6. Johnson & Johnson 7. Amway 7. Ecolab 9. Coty 10. Diversey

Cincinnati, OH New York, NY Racine, WI New York, NY New York, NY New Brunswick, NJ Ada, MI St. Paul, MN New York, NY Sturtevant, WI

$64.6 billion $13.3 billion $8.8 billion $7.7 billion $7.7 billion $7.2 billion $5.7 billion $5.7 billion $3.8 billion $3.1 billion

11. Limited Brands 12. Clorox 13. Mary Kay 14. Church & Dwight 15. Sun Products 16. Alberto-Culver 17. Revlon 18. Elizabeth Arden 18 Guthy-Renker 20. Nu Skin

Columbus, OH Oakland, CA Addison, TX Princeton, NJ Wilton, CT Melrose, IL New York, NY Miramar, FL Palm Desert, CA Provo, UT

$2.7 billion $2.6 billion $2.5 billion $2.1 billion $2.0 billion $1.5 billion $1.3 billion $1.1 billion $1.1 billion $914 million

21. Blyth 22. Tupperware 23. Yankee 24. John Paul Mitchell Systems 25. Merck 26. Zep 27. Jafra 28. Energizer 28. Inter Parfums 30. Markwins

Greenwich, CT Orlando, FL Deerfield, MA Beverly Hills, CA Whitehouse Station, NJ Atlanta, GA Westlake, CA St. Louis, MO New York, NY City of Industry, CA

$900 million $737 million $734 million $590 million $580 million $568 million $521 million $460 million $460 million $450 million

31. Shaklee 32. Prestige Brands 32. Chattem 34. WD-40 35. Combe 36. American International 36. Philosophy 38. Seventh Generation 39. Turtle Wax 40. Phoenix Brands

Pleasanton, CA Irvington, NY Chattanooga, TN San Diego, CA White Plains, NY Los Angeles, CA Phoenix, AZ Burlington, VT Willowbrook, IL Stamford, CT

$350 million $336 million $336 million $321 million $250 million $200 million $200 million $150 million $147 million $140 million

41. Hydroxatone 42. Gojo 43. Herbalife 44. Dermalogica 45. Parlux 46. Spartan 47. Obagi 48. Method 49. Murad 50. State

Jersey City, NJ Akron, OH Los Angeles, CA Carson, CA Fort Lauderdale, FL Maumee, OH Long Beach, CA San Francisco, CA El Segundo, CA Cleveland, OH

$139 million $135 million $127 million $125 million $123 million $118 million $112 million $110 million $106 million $105 million

happi.com

July 2011

• The Top 50

1.

PROCTER & GAMBLE

Major Products:

Cincinnati, OH 513.983.1100 www.pg.com Sales: $64.6 billion

Sales: $64.6 billion (estimated) for personal care, oral care and household products. Net sales: $78.9 billion. Net income: $12.7 billion for the year ended June 30, 2010.

Key Personnel: Bob MacDonald, chairman, president and chief operating officer; Werner Geissler, vice chairman global operations; Dimitri Panayotopoulos, vice chairman, global beauty & grooming; Robert A. Steele, vice chairman, health care strategy; Charles V. Bergh, group president, global male grooming, beauty & grooming; Bruce Brown, chief technology officer; Giovanni Ciserani, group president, Western Europe and global discounter and pharmaceutical channels; Linda W. Clement-Homes, chief diversity officer & senior vice president, global business services; Virginia C. Drosos, group president, global female beauty; Philip J. Duncan, global design officer; Mary Lynn Ferguson-McHugh, group president, global family care; Thomas M. Finn, president, global health care; Robert L. Fregolie Jr., global customer business development officer; John P. Goodwin, president, global braun, beauty & grooming; R. Keith Harrison Jr., global product supply officer; Christopher D. Hassall, global external relations officer; Melanie L. Healey, group president, North America and global hyper, super, mass channel; Deborah A. Henretta, group president, Asia and global specialty channel; Colleen E. Jay, president, global female beauty, beauty & grooming; Robert Jongstra, president, special assignment; Joan M. Lewis, global consumer & market knowledge officer; Teri L. List, senior vice president & treasurer; Patrice Louvet, president, global prestige; Deborah P. Majoras, chief legal officer & secretary; Jorge S. Mesquita, group president, global fabric care; Shekhar Mitra, senior VP-corporate R&D, materials science & technology and global beauty & grooming; Jon R. Moeller, chief financial officer; Moheet Nagrath, global human resources officer; Fillippo Passerini, president, global business services & chief information officer; Laurent L. Philippe, group president, CEEMA and global high frequency store channel; Charles E. Pierce, group president, global oral care; Marc S. Pritchard, global brand building officer; Martin Riant, group president, global baby care; Jeffrey K. Schomburger, president, global Walmart team; Valarie Sheppard, senior vice president & comptroller; Shannan Stevenson, president, greater China; 72 • happi

Nancy K. Swanson, vice president, corporate; David S. Taylor, group president, global home care; Jorge A. Uribe, group president, Latin America and global club, cash & carry channel.

Beauty & Grooming—cosmetics, fragrances, hair care, antiperspirants and skin/beauty care marketed under such brands as Gillette, Pantene, Olay, DDF, Head & Shoulders, Hugo Boss, Secret, SK-II, Zest, Safeguard, Rejoice, Clairol, Herbal Essences, CoverGirl, Old Spice, Wella, Aussie and Ivory. Household—dish care, household cleaners and laundry care including brands such as Tide, Ariel, Downy, Lenor, Gain, Cascade, Ace, Cheer, Bold, Swiffer, Bounce, Dash, Dawn, Fairy, Joy, Febreze, Era, Dreft, Daz, Vizir, Salvo, Mr. Proper, Mr. Clean, Flash, Viakal, Alomatik, Ivory, Maestro Limpio and Rindex. Health Care—toothpaste and brushes, mouthwash and teeth whitening products including brands such as Scope, Crest and Vicks.

New Products: Beauty & Grooming—Herbal Essences new formulas, Olay Body Care Collections; Natural Instincts Week 2 Color Refresher, Wella Professionals Care, Wella Pro Series, Crest 3D White 2 Hour Express Whitestrips, Crest Clinical, Secret Natural Minerals, Olay Professional Pro-X Advanced Cleaning System, Nice ‘n Easy Color Blend Foam; Household—Downy Unstoppables, Ariel Touch of Lenor Fresh, Ultra Era, Tide/Vizir + Lenor scent touch, Tide Professional Whiteness Enhancer, compacted powder laundry detergent, Febreze Air Effects, Ambi Pur (acquisition). To be launched: Tide Pods (2012).

Fast Fact:

In a recent study conducted with 19 women, the Olay Professional Pro-X Wrinkle Smoothing Cream hydrated skin better after one hour when used after the Olay Professional Pro-X Advanced Cleansing System than when used after the cleanser alone.

Comments: It may be the biggest player on the block, but Procter & Gamble hasn’t lost focus on the things that have made it king-of-the-hill in the global household and personal products business. P&G will

happi.com

July 2011

• The Top 50

continue to rely on innovative new product launches, the world’s biggest advertising budget and a bushel of billion-dollar brands to keep climbing. But the high cost of materials is starting to take its toll on the world’s largest consumer products company. For the nine months ended March 31, 2011, the company reported that gross margin contracted 140 basis points to 51.4% of net sales. The gross margin decline was driven by a 180-basis point increase in commodity and energy costs and unfavorable product mix from disproportionate growth in developing regions and low and mid-tier value products. These declines were partially offset by manufacturing cost savings and the favorable impact of volume scale leverage. At the same time, aggressive discounting in the household care space wreaked havoc on results. Through the first nine months of fiscal 2011, corporate sales increased just 3% to nearly $61.7 billion on a 6% increase in unit volume. Volume growth was broad based with growth in all geographic regions, led by double-digit growth in Asia and high single digit growth in Latin America and Central and Eastern Europe, Middle East and Africa (CEEMEA). All six of the business segments contributed to volume growth, with high single-digit growth in the baby care and family care and fabric care and home care segments, mid-single-digit growth in the beauty, grooming and health care segments, and a low single-digit increase in the snacks and pet care segment. Organic volume, which excludes acquisitions and divestitures, was up 6%. Mix reduced net sales by 2% due mainly to disproportionate growth in developing regions and low and mid-tier value products, both of which have lower than company average selling prices. Unfavorable foreign exchange lowered net sales by 1% as key foreign currencies weakened ver-

P&G Eyes India for Expansion

B

OB MCDONALD knows a good growth opportunity when he sees it, and these days, the P&G CEO sees India as a great way to boost sales as US and European results stall. For example, in fabric care, P&G estimates that 2010 sales in India will be six times higher than they were in 2003. India represents a key piece of P&G’s plan to reach one billion more consumers than the 3.5 billion it currently serves. That’s part of the overall strategy of “touching and improving more consumers’ lives in more parts of the world more completely,” as P&G puts it. Of course, key competitors such as Unilever may have something to say about P&G’s strategy. The Anglo-Dutch consumer products giant has been conducting business in India for decades, compared to approximately 20 years for P&G. That may explain why Hindustan Unilever’s laundry detergent share approaches 37%, compared to just 8-9% for P&G, according to analysts. And while P&G has boosted its share of the shampoo market from 15% to 25% during the past six years, it still lags Hindustan Unilever’s 46% share.

74 • happi

The Tide franchise gets a lift from Acti-Lift. Get ready for Tide Pods, which debut in 2012.

sus the US dollar. Organic sales were up 4% driven by unit volume growth, partially offset by unfavorable mix. By category, beauty volume was up 5%, grooming volume rose 4% and fabric and home care volume jumped 7%. More specifically, beauty sales for the nine months rose 2% to nearly $15.1 billion. During the third quarter, volume in retail hair care grew high single digits behind double-digit growth in developing regions due to initiative activity and distribution expansions in Asia and Latin America. Global market share of the hair care category was up nearly half a point. Volume in female beauty was flat as Olay skin care distribution expansion in Asia and Latin America and deodorants growth in North America were offset by a mid-single digit decline in developed regions driven by the Zest divestiture, competitive activity in cosmetics, and decreased shipments in skin due to an Olay UV reformulation and restage. Volume in salon professional declined high single digits due to the exit of non-strategic businesses and market contraction in Western Europe. Volume in prestige products was up high single digits behind the continued impact of fragrance initiatives, partially offset by minor brand divestitures. Grooming sales increased 4% to $6.0 billion. Price increases, taken primarily across blades and razors in Latin America and developed regions, contributed 2% to net sales growth. Unfavorable foreign exchange reduced net sales by 2%. Volume grew high single digits in developing regions and was in line with the prior year period in developed regions. Volume in male grooming was up midsingle digits due to higher shipments of blades and razors, mainly in developing regions driven by market growth, and deodorants in North America, partially offset by softness in blades and razors in the developed regions. Global market share of the blades and razors

happi.com

July 2011

Iselux® : the clear solution for luxurious lather If you want sulfate-free, high

clear, sulfate-free formulations

For inspiration, ideas or further

performance surfactants, you

is a challenge. Until now. The

information, please contact us:

need Iselux®.

next generation of surfactants,

Cleansing products that

Iselux® isethionate esters

Americas

deliver luxury and clarity.

[email protected]

offer an elegant, rich lather

Asia-Pacific

enhance consumer appeal

Iselux® from Innospec – your

[email protected]

and command a premium.

creative scientific solutions

Europe, Middle East & Africa

But achieving this in mild,

partner for specialty chemicals.

[email protected]

www.innospecinc.com

• The Top 50

category was down more than half a point.Volume in appliances decreased low single digits due to continuing economic difficulties in Western Europe as well as a high base period behind hair care appliances initiatives. Global market share of the dry shave category was in line with the prior year period. Net earnings increased 8% to $1.3 billion behind higher net sales and increased operating margin. Operating margin expanded due to higher gross margin and lower SG&A as a percentage of net sales. Gross margin increased due to price increases and the favorable impact of volume scale leverage. SG&A as a percentage of net sales was down due to lower foreign currency exchange costs and reduced overhead spending, partially offset by higher marketing spending. Home care net sales increased 2% to $18.7 billion. Organic sales were up 3%. Volume grew 7%, while organic volume, which excludes the impact of the Ambi Pur acquisition, increased 6%. Lower pricing, mainly in developed regions, reduced net sales by 1%. Mix negatively impacted net sales growth by 2% mainly due to disproportionate growth of low and mid-tier product lines and powdered laundry detergents, which have lower than segment average selling prices. Unfavorable foreign exchange reduced net sales growth by 2%. Volume in developing regions was up double digits, while volume in developed regions grew mid-single digits. Fabric care volume increased mid-single digits mainly due to growth in developing regions behind initiative activity, increased distribution and market growth. Global market share of the fabric care category increased about half a point. Home care volume increased double digits due, in part, to the Ambi Pur acquisition. Organic volume in home care was also up double digits driven mainly by initiative activity, including the prior-period launches of Gain hand dishwashing liquid and Febreze Set & Refresh in North America, and geographic expansion of dish and air care product lines. Global market share of the home care category was up over one point. Batteries volume grew mid-single digits primarily due to price reductions executed through pack count increases in North America, which were implemented in January 2010, initiative activity in Western Europe and market growth and distribution expansion in Asia. Global market share of the batteries category increased about one point. Net earnings decreased 10% to $2.4 billion as net sales growth was more than offset by operating margin contraction. Operating margin declined primarily due to lower gross margin, mainly due to higher commodity costs and unfavorable product mix behind disproportionate growth of developing regions and low and mid-tier value products. SG&A as a percentage of net sales increased marginally behind higher marketing spending.

Big Personnel Moves There have been several key personnel moves in the past few months. In May, Ed Shirley announced his retirement as vice chairman, beauty and grooming, after 33 years with the company. His retirement is effective Jan. 1, 2012. Until then, he will serve as vice chairman on special assignment. Meanwhile, Dimitri Panayotopou76 • happi

Crest is the No. 2 oral care brand in the world.

los, vice chairman-global household care, was appointed vice chairman-global business units, assuming responsibility for both the beauty and grooming and household care businesses. Panayotopoulos will continue to report to McDonald. Last month, Patrice Louvet, president, global prestige, was appointed president, global male grooming, succeeding Charles (Chip) V. Bergh who left P&G after 28 years service to pursue his aspiration to be CEO of a major company (his dreams came true in June when he was picked to lead Levi Strauss). Joanne Crewes, currently VP-global SKII and female beauty, Australasian, ASEAN, India, Japan and Korea, has been appointed president, global prestige, succeeding Louvet.

Pods on Hold New products are the lifeblood of any consumer product company and P&G has been a leader in this area for decades and other companies recognize P&G’s prowess. For example, SymphonyIRI’s 2010 Pacesetters list included eight P&G products in the top 25 non-food list. During the past 16 years, P&G had 132 products on the top 25 Pacesetters list—more than its six largest competitors combined. In addition to the New Product Pacesetters, four P&G products are on track for future stardom; i.e, Pacesetter Rising Stars, including Gillette Fusion ProGlide and Tide plus Febreze Freshness Sport. Last month, P&G postponed the launch of Tide Pods until next year on grounds of supply constraints, which may make it impossible for the company to meet the huge demand forecasted, according to reports. The three-chamber Tide Pods are similar to water-soluble tablets for dishwashers, which have been embraced by consumers whole heartedly. Analysts say that the delay may prompt P&G’s competitors to speed up the launch of competitive products and pose a threat to Tide. Analysts suggest that Cincinnati-based P&G is taking precautions because it has already stumbled before in such high-profile launches as in case of Gillette Fusion ProGlide. Analysts say that in such a competitive scenario, postponing such a mega launch could make situations tougher. Henkel and Unilever already sell similar highly condensed liquid-filled laundry tablets in Western Europe. Water-soluble tablets for dishwashers that can be easily adapted for laundry products also exist. Meanwhile, new Downy fabric-softener in bead form called Unstoppables is set for launch. The product’s unique selling proposition is its ability to keep clothes smelling fresh in the closet for up to 12 weeks, according to the company. Finally, an upgrade for Ariel laundry detergent, which P&G says uses 3-D technology, is also scheduled to come out this

happi.com

July 2011

• The Top 50

month. Aimed at consumers in developing countries, it will roll out to 50 markets over the next six months.

A Look at 2010 For fiscal 2010, P&G reported a 3% gain in corporate sales to $78.9 billion on a 4% increase in unit volume, but net earnings declined 5% to $12.7 billion.Volume increased low single digits in developed regions and mid-single digits in developing regions. P&G said all geographic regions contributed to volume growth, but gains were greatest in Asia and CEEMA where sales rose in the high single digits. By category, beauty sales rose 3% to nearly $19.5 billion. Net earnings were up 2% to $2.7 billion. Volume growth was driven by high single-digit gains in developing regions, but developed region volume was flat. Hair care volume rose in the mid-single digits, but cost-conscious consumers skipped trips to the salon, which pushed salon professional volume down in the double digits. Beauty volume was up low single digits as higher shipments of female skin care and personal cleansing products in developing regions were somewhat offset by the discontinuation of Max Factor in North America, the fiscal 2009 divesture of Noxzema and volume share losses on non-strategic personal cleansing brands in developed regions. Meanwhile, grooming sales increased 3% to $7.6 billion and net earnings were up 9% to nearly $1.5 billion. Gains were attributed to the launch of Fusion ProGlide. Fabric care and home care sales rose 3% to $23.8 billion on a 6% increase in unit volume. Net earnings increased 10% to $3.3 billion. Fabric care volume grew mid-single digits behind new product launches, price reductions and merchandising activity. In July, 2010, Sara Lee completed the sale of its Ambi Pur air care business to P&G. The move gave P&G a bigger slice of the global air care category. Of course, cost-cutting plays a role at P&G, too. Last year, the company noted that it had more than 16,000 product formulas that use more than 4000 colors in product labels and plastic packaging. By the end of 2012, P&G expects to reduce the number of formulas and package specifications by 30% and the number of colors used by 50-75%. Color simplification alone could generate annual savings of $50 million, according to P&G.

2.

COLGATE-PALMOLIVE

Ian M. Cook, chairman, president and chief executive officer; Michael J. Tangney, vice chairman; Fabian Garcia, chief operating officer, global innovation and growth & Europe; Franck J. Moison, chief operating officer, emerging markets; Dennis Hickey, chief financial officer; Andrew D. Hendry, chief legal officer and secretary.

Fast Fact:

To help celebrate the Simply White toothpaste launch, Tom's of Maine partnered with nonprofits to help restore parks, rivers and gardens with volunteer beautification efforts. The events took place in Boulder, CO; Eugene, OR; Boise, ID; and Salt Lake City. The brand also sponsored Sheryl Crow’s “100 Miles From Memphis” concert tour.

Major Products: Oral Care—Colgate, Elmex, Kolynos, Meridol, Sorriso, Tom’s of Maine and Ultra Brite toothpastes; Colgate, Elmex and Meridol toothbrushes; Colgate Total and Tom’s of Maine dental floss. Personal Care—Irish Spring, Palmolive, Protex, Softsoap and Tom’s of Maine body wash and shower gel; Palmolive shampoos and conditioners; Afta and Skin Bracer; and Colgate, Palmolive and Tom’s of Maine shave cream. Home Care—Ajax, Axion and Palmolive dishwashing; Ajax, Fabuloso, La Croix and Murphy Oil Soap cleaners and cleansers; Fabric Care—Cold Power, Dynamo, Softlan, Soupline and Suavitel.

New Products: Oral Care—Colgate Total Gum Defense, Colgate Sensitive Multi Protection and Colgate Max Clean SmartFoam toothpastes; Household Care—Palmolive Antibacterial dish liquid and Sanex (acquisition); Personal Care—Softsoap Body Butter Mega Moisture and Strawberry Smoother and Irish Spring Intensify body washes and Sanex (acquisition).

Comments:

New York, NY 212.310.2000 www.colgate.com Sales: $13.3 billion

Sales: $13.3 billion for oral, personal care and household products. Corporate sales: $15.5 billion. Net income: $2.2 billion. 78 • happi

Key Personnel:

Corporate sales rose 1.5% to a record high, but net income declined 4% to $2.2 billion. Unit volume was up 3%. Sales of oral, personal care and home care products rose 2% on a 4% gain in volume. Emerging markets represent half of Colgate’s sales and the acceptance of Colgate oral care products plays a big role in that success. For example, in Brazil, 77% of professionals recommend Colgate, and those recommendations are even more nu-

happi.com

July 2011

The Top 50

The company may be best known for its oral care products, but Colgate-Palmolive made news with the launch of Palmolive Antibacterial dish liquid.

merous in India and China, where professionals prefer Colgate at 81% and 85%, respectively. By region, sales in North America rose 2% to just over $3 billion to account for 19% of sales last year. Unit volume increased 3.5%. The company credited the gain to Colgate Triple Action and Colgate Sensitive MultiProtection toothpastes and the relaunch of Colgate Total. Also, Colgate’s share of the US manual toothbrush market rose 1.3 share points to a record 33.4% on the strength of Colgate 360° ActiFlex and Colgate Wisp mini-brush. Sales in Latin America accounted for 27% of 2010 sales, but they fell 1.5% to about $4.2 billion on a 2.0% gain in unit volume. The success of Colgate Sensitive Pro-Relief and Colgate Total toothpastes, Colgate 360° ActiFlex, Colgate Plax Complete Care mouthwash, Palmolive Naturals Perfect Tone bar soap and Lady Speed Stick Waterproof deodorant contributed to market share gains throughout the region. Europe/South Pacific accounted for 21% of sales last year (about $3.2 billion), but while volume rose 2%, sales declined 1%. The company credited the volume gain to toothpastes such as Colgate Sensitive Pro-Relief and Pro-Relief Whitening, as well as PalJuly 2011

•

molive Nutra Fruit shower cream and the Natura Verde home care product line. Greater Asia/Africa represented 19% of sales (nearly $3 billion). Regional results were encouraging as sales jumped 13% and unit volume increased 10.5%. What led to the big increase? Strong sales of Colgate Sensitive Pro-Relief, Colgate Total and Colgate Herbal Salt toothpastes, Colgate 360° ActiFlex, Colgate Massager and Colgate Twister Gum Care manual toothbrushes and Colgate Plax Complete Care mouthwash. Finally, pet care (primarily food), a segment not tracked by HAPPI, accounted for 14% of sales in 2010. For the first quarter of 2011, the company reported a 4% increase in sales to nearly $4 billion. Sales in Latin America jumped 9% to nearly $1.1 billion, sales in Europe/South Pacific rose 1% to $832 million and sales in Greater Asia/Africa surged 11.5% to $813 million. On June 20, Colgate-Palmolive completed its $952 million purchase of the personal care brand Sanex from Unilever PLC. The deal strengthens Colgate’s positions in the shower gel, deodorant and personal care business in Europe. The purchase is Colgate’s biggest purchase in more than a decade and analysts view it as an opportunity for Colgate to reduce its dependence on oral care. Unilever was forced to sell Sanex after acquiring the international toiletries business from Sara Lee. Also last month, investment bank Rothschild hired Steve Patrick, the former vice chairman of Colgate, as a senior advisor. Patrick will counsel the investment bank’s mergers and financing advisory teams on consumer and retail companies.

SC JOHNSON

3.

Racine, WI 262.260.2000 www.scjohnson.com Sales: $8.8 billion

Sales: $8.8 billion (estimated) for the year ended June 30, 2010. But that total includes sales for food management.

Key Personnel: H. Fisk Johnson, chairman and chief executive officer; Brian Tuffin, president, SC Johnson of Canada and general manager, SC Johnson Canada; Jane M. Hutterly, executive VP-worldwide corporate and environmental affairs; Gayle Kosterman, executive VP-worldwide human resources; Roberto Leopardi, group managing director of European Central Cluster, SC Johnson Germany; Keith Maurer, director of customer service & logistics and director; Luca Mignini, senior vice president of Europe, Australia/New Zealand and Japan—SC Johnson Germany; Christo-

happi.com

happi • 79

• The Top 50

pher S. Moeller, managing director, Vietnam; Rocky Perga, director of planning, administration and architecture; Steven P. Stanbrook, president, Asia and American operations.

Major Products: Household Care—Drano, Duck, Fantastik, Glade, Grab-it, Mr. Muscle, Nature’s Source, Oust, Pledge, Scrubbing Bubbles, Shout, Vanish, Windex, Bayfresh, Caldrea, Mrs. Meyer’s. Pest Control— Autan, Baygon, Off!, Raid. Floor Care—Armstrong, Brite, Future, SC Johnson Floor Wax; Auto Care—Grand Prix.

New Products: Household Care—Scrubbing Bubbles Mega Shower Foamer, Toilet Cleaning Gel and Automatic Shower Cleaner, Windex Mini; Shoe Care—Kiwi, Tana and Bama (acquisition).

Comments: Sales rose an estimated 3.5% last year at privately-held SC Johnson. In April, SC Johnson completed the acquisition of the global shoe care business of Sara Lee Corp. The global shoe care business is comprised of the brands Kiwi, Kiwi Kleen, Tana and Bama, among others. The sale will close in the remaining jurisdictions pending certain conditions. The deal was originally announced on Dec. 31, 2010, with a binding offer from SC Johnson of €245 million. Still pending is Sara Lee’s sale of its non-Indian insecticides business to SC Johnson for €153.5 million. As widely reported, Sara Lee is exiting the home and body care business to concentrate on food. During the past year, Sara Lee has announced and closed transactions for its stake in the Indian insecticides joint venture Godrej Sara Lee (sold to Godrej for €185 million), its air care business (sold to Procter & Gamble for €320 million), its body care and European detergents businesses (sold to Unilever for €1.21 billion) and its White King and Janola brands (sold to Symex for €38 million). Last month, the company was named a 2011 Top 10 US green brand by ImagePower. The survey, sponsored in part by Esty Environmental Partners and WPP companies Cohn & Wolfe, Landor Associates, and Penn Schoen Berland, measures consumer perceptions of green industries, products and brands. The survey polled 9,000 respondents in eight countries, including Australia, Brazil, China, France, Germany, India, the US and UK. Fifty US companies were assessed. Despite its focus on green, SCJ brass isn’t so naïve to think that consumers will purchase a product just because it’s good for the environment. At Fortune’s Green Summit, Fisk Johnson noted that US consumers just won’t buy concentrated products that forces them to dilute them with water. “Consumers just aren’t willing to buy this,” said Johnson.“We sell a product like this in the developing world, where the few pennies they save is meaningful to them, and they’re willing to go to the inconvenience of refilling the bottle. But we’re just not able to 80 • happi

succeed with this in North America.” Johnson says that without consumer willingness to make small changes like using concentrates, there will not quickly assist solving “the bigger problem for the next generation.” Still, that isn’t stopping SCJ from launching Windex Mini this year.

4.

AVON

New York, NY 212.282.5000 www.avoncompany.com Sales: $7.7 billion

Sales: $7.7 billion for cosmetics, toiletries and fragrances. Corporate sales: $10.8 billion. Net income: $590 million.

Key Personnel: Andrea Jung, chairman and chief executive officer; Charles Cramb, vice chairman, developed market group; Charles M. Herington, executive vice president, developing market group; Lucien Alziari, senior vice president, human resources & corporate responsibility; Geralyn R. Breig, senior vice president; Bob Briddon, senior vice president and president, Asia Pacific; Jeri B. Finard, senior vice president, global brand president; Nancy Glaser, senior vice president, global communications; Donagh Herlihy, senior vice president and chief information officer; John Higson, senior vice president, global commercial operations; Jorge Martinez Quiroga, senior vice president and president, North America; Srdjan Mijuskovic, senior vice president and president, Central and Eastern Europe; Kimberly A. Ross, executive vice president and chief financial officer; Anna Segatt, senior vice president and president, Western Europe, Middle East and Africa; John F. Owen, senior vice president, global supply chain; Kim Rucker, senior vice president, general counsel and corporate secretary; Mike Schwartz, senior vice president, global insights and marketing intelligence.

Major Products: Color Cosmetics—Avon Color, Jillian Dempsey Professional, Smooth Minerals and Anew Beauty; Skin Care—Anew; Fragrance—In Bloom by Reese Witherspoon, Outspoken by Fergie and Patrick Dempsey Unscripted; as well as fragrances through special partnerships with designers Christian Lacroix, Herve Leger and Ungaro; Personal Care—Avon SkinSo-Soft; Avon Nat- Platinum Serum is an addition to the Anew line.

happi.com

July 2011

®

Hostacerin EWO is a registered trademark of Clariant.

What makes me look blooming all day?

Clariant emulsifying power of the sunflower. Clariant offers a wide variety of raw materials for use in cosmetic formulations with a natural claim. One new product of this range is Hostacerin® SFO, a novel co-emulsifier based on vegetable, renewable and GMO-free resources. Hostacerin® SFO provides excellent emulsification properties for both O/ W and W/O emulsions. This novel co-emulsifier is highly suitable to formulate 2in1 bodywashes or high SPF sunscreens and may also be used to achieve a velvet touch in siliconefree formulations. With Hostacerin ® SFO both functionality and a natural claim are fulfilled. Clariant International Ltd, Business Unit Industrial & Consumer Specialties. Rothausstrasse 61, 4132 Muttenz, Switzerland Clariant Corporation, Business Unit Industrial & Consumer Specialties, 625 E. Catawba Avenue, Mount Holly, NC 28120 www.ics.clariant.com

What do you need?

• The Top 50

Corruption Probe Hurts Avon

F

OR SEVERAL MONTHS,

Avon has been hampered by reports of bribery schemes in its developing markets. In May, Avon said Kimberly A. Ross will join the company in the fall to serve as chief financial officer, succeeding Charles Cramb, who has been serving in that role on an interim basis. The appointment comes after Avon Products fired four executives, including former financial executive Jimmy Beh, in connection with an internal foreign-bribery investigation. The executives had been suspended in 2010 amid a review of the company's compliance with the Foreign Corrupt Practices Act and other anticorruption laws. Ross, 46, is financial chief and executive board member of Ahold, which operates 2,970 stores and supermarkets across Europe and the U.S. She is expected to join Avon after a required notice period, during which she will continue to serve as Ahold’s financial chief.The move comes following an internal investigation that found millions of dollars in questionable payments made to officials in China, Brazil, Mexico, Argentina, India and Japan as long ago as 2004 and as recently as 2010. Originally, Avon had been investigating whether certain travel, entertainment and other expenses in China might have been “improperly incurred” since June 2008.

urals; Hair Care—Advance Techniques; Mark; Liz Earle.

New Products: Skin Care—Anew Platinum, Serum, Anew Luminosity-Pro Serum, Advance Technique Lotus Shield; Sun Care—Anew Solar Advance with RepairShield Technology; Color Cosmetics—UCR Mega Impact Lipstick, Super Extend Mascara, Sonic Boost Vibrating Mascara, Pro Color & Gloss Lip Duo, Healthy Makeup, Matte Nail Enamel; Fragrance—Outspoken and Outspoken Intense by Fergie. To be launched: New skin care range (Q4 2011).

Comments: Corporate sales rose 6% last year, thanks in large part to a 4% increase in the number of active representatives. The acquisitions of Silpada and Liz Earle also provided a lift in corporate sales. Beauty accounted for 71% of sales last year (down from 72% in 2009 and 2008), followed by fashion (19%) and home (10%). Beauty sales rose 6%, led by an 11% increase in fragrance sales, as well as a 7% gain in color cosmetics sales and a 5% rise for personal care. However, skin care sales fell 3%. The gain in fragrance was attributed to the launch of Outspoken by Fergie, which became the biggest fragrance introduction in Avon history. On the other hand, the decline in skin care sales has Avon working overtime to boost sales. Therefore, in developing markets Avon launched Avon Care, a comprehensive line of skin care and body products. Elsewhere, Avon Solutions was revamped with new formulas and packaging. Earlier this year, Avon launched Anew Solar Advance, which promises to repair visible sun damage. In the fourth quarter, Avon will launch a new skin care product that 82 • happi

was inspired by genetic research on longevity. By region, corporate sales rose 6% in Latin America to $4.1 billion. Sales in North America fell 2% to $2.2 billion; sales in Central & Eastern Europe rose 6% to nearly $1.6 billion; sales in Western Europe, Middle East and Africa jumped 14% to $1.4 billion and sales in Asia Pacific leaped 11% to $752 million. Some of the fastest growing countries and regions for Avon were South Africa (up 82%), India (65%), Central America (16%), Ukraine (12%), Colombia (25%) and the Philippines (15%). Last year, the number of active representatives grew 4%, down from a 10% gain in 2009. To reenergize its sales staff, Avon has shifted some money away from advertising to field programs that enhance the value proposition for its representatives. For example, in the US, Avon is investing $20 million to improve sales leadership earnings. For the first quarter of 2011, corporate sales rose 7% to $2.6 billion. Beauty sales jumped 8% with gains in all categories: fragrance (10%), color (6%), skin care (7%) and personal care (8%). “We are pleased with the early progress against our commitment to return the business to mid-single digit revenue growth and deliver 50-70 basis points of operating margin expansion in 2011,”said Andrea Jung, Avon’s chairman and chief executive officer. “We are squarely focused on restoring growth in Brazil and Russia in the second half, and ensuring execution in gross margin improvement and cost control.”

ESTÉE LAUDER

5.

New York, NY 212.572.4200 www.esteelauder.com Sales: $7.7 billion

Sales: $7.7 billion. Net income: $478 million for the year ended June 30, 2010.

Key Personnel: Fabrizio Freda, president and chief executive officer; Amy DiGeso, executive vice president, global human resources; John Demsey, group president; Harvey Gedeon, executive vice president, global research, development and product innovation; Richard W. Kunes, executive vice president and chief financial officer; Evelyn H. Lauder, senior corporate vice president; Leonard A. Lauder, chairman emeritus; William P. Lauder, executive chairman; Sara E. Moss, executive vice president and general counsel; Gregory F. Polcer, executive VP-global supply chain; Cedric Prouvé, group president, international; Alexandra C. Trower, executive vice president, global communications.

happi.com

July 2011

• The Top 50

Major Products: Skin care, makeup, fragrances and hair care products marketed under four divisions. High End Prestige and Makeup Artist Brands—Estée Lauder, MAC, Bobbi Brown, La Mer, Jo Malone, Tom Ford Beauty; Prestige Skin Care and Alternative Channels— Clinique, Origins, Ojon; Fragrance Licensing and Creative Incubator—Aramis, Lab Series, Tommy Hilfiger, Kiton, Donna Karan, Michael Kors, American Beauty, Flirt!, Good Skin, Sean John, Missoni Profumi, Daisy Fuentes, Coach, Grassroots Research Labs; Salon and Pharmacy—Aveda, Bumble and Bumble, Darphin.

New Products: Skin Care—Advanced Night Repair Eye Synchronized Complex and Re-Nutriv Ultimate Lift Age-Correcting Collection, Repairwear Laser Focus Wrinkle & UV Damage Corrector and Even Better Clinical Dark Spot Corrector from Clinique, La Mer The Radiant Serum and The Eye Balm Intense; Makeup—Pure Color eye and lip products, Clinique Chubby Stick Lip Colour Balms; Fragrance— Coach Poppy, Hilfiger Loud for Her, Estée Lauder Pleasures Bloom; Hair Care—Aveda Control Force and Be Curly style prep.

Comments: Estée Lauder is benefitting from a strong product lineup and pent up consumer demand for prestige products, including cosmetics. For the fiscal third quarter ended March 31, 2011, sales jumped 16% to $2.1 billion and net earnings more than doubled to nearly $125 million. For the nine months, sales rose 13% to more than $6.7 billion and net earnings surged 44% to over $660 million. “Our results for the quarter and year to date continue to validate our strategic direction,”said Fabrizio Freda, president and chief executive officer. “Our focus on building enduring brand equities and on serving the global demand for prestige quality products and high-touch services is clearly resonating with consumers.” Through nine months, skin care sales rose 15% to $2.8 billion, makeup sales increased 14% to more than $2.5 billion, fragrance sales were up 10% to $1 billion, hair care sales rose 4% to $316 million and “other” fell 1% to less than $46 million. With its fiscal year ending June 30, 2011, company executives were confident that a significant increase in global ad spending on

The Re-Nutriv brand expands with Ultimate Lift Age-Correcting Crème.

new initiatives and product launches would increase sales between 10-11%. It’s no surprise that EL executives expect skin care and makeup to be the leading sales growth categories, followed by fragrance and hair care. Finally, geographic region net sales growth in constant currency was expected to be led by Europe, the Middle East & Africa, followed by the Americas and Asia/Pacific.

A Look Back In fiscal 2010, sales rose 6% to nearly $7.8 billion and net income more than doubled to $478 million. International operations accounted for 62% of sales. By distribution channel, international department stores accounted for 28% of sales, followed by US department stores (27%), perfumeries (13%), retail stores, travel retail and“other”(9% each), and salons/spas (5%). By product category, skin care accounted for about 41% of sales, followed by makeup (38%), fragrance (14%), hair care (5%) and other (<1%). Skin care sales rose 12% to more than $3.2 billion, driven by Clinique’s new four-step program makes it easier than ever to get great looking skin.

All About Aerin

T

HE ESTÉE LAUDER brand announced a new collaboration with Aerin Lauder and Aerin LLC, her new luxury lifestyle brand. Under the arrangement, Lauder will continue to be actively involved in the Estée Lauder brand, serving as creative consultant and becoming its style and image director. The Estée Lauder brand will be the exclusive beauty partner to Aerin LLC in launching a beauty line under the Aerin name to be sold at select Estée Lauder counters.

84 • happi

happi.com

July 2011

STAY-C® 50 Explore the untapped potential of vitamin C for skin, hair and oral care DSM Nutritional DSM Nutritional Products, Products, LL LLC C 4455 W Waterview aterview Bou Boulevard, levarrd, Parsippany Parsippany NJ 0 07054-1298 7054-1298 Phone: 1-800-526-0189 1-800-526-0189 www .unlimitednutrition-na.dsm.com www.unlimitednutrition-na.dsm.com www.dsmnutritionalproducts.com www .dsmnutritionalproducts.com

STAY-C® 50 – the ideal STAY-C ideal form form m of V Vitamin itamin C, ccombining ombining stability stabilityy w with ith proven proven effic efficacy acy S STAY-C TAY-C® 50 – for for vvisibly isibly ssmoother mo oother and yyounger-looking ounger-looking skin skin S TAY-C® 50 – test STAY-C test rresults esults sshow h w the benefits ffor ho or body body,, oral oral and hair hair care care

• The Top 50

to share and leverage knowledge and insights, especially at the retail level. The unit helps reduce duplication, improve trade relations and establish a single point of contact with retail partners.

JOHNSON & JOHNSON

6.

New Brunswick, NJ 732.524.0400 www.jnj.com Sales: $7.2 billion

Sales: $7.2 billion for skin, baby and oral care products. Corporate sales: $61.6 billion. Net income: $13.3 billion.

Key Personnel: William C. Weldon, chairman and chief executive officer; Dominic J. Caruso, vice president, finance and chief financial officer; Russell C. Deyo, vice president and general counsel; Alex Gorsky, vice chairman, executive committee; Sheri S. McCoy, vice chairman, executive committee. Origins Plantscription anti-aging serum combines two of the hottest trends in personal care these days—natural and anti-aging.

growing demand for anti-aging products such as Lauder’s Advanced Night Repair Synchronized Recovery Complex, Advanced Night Repair Eye Synchronized Complex and Hydrationist Maximum Moisture Créme and Lotion. Makeup sales improved 5% to nearly $3 billion, propelled by makeup artist brand sales outside the US. Sales were helped along by the launch of Clinique’s Even Better Makeup SPF15 and Superbalanced Powder Makeup SPF15, as well as Estée Lauder’s Resilience Lift Extreme Radiant Lifting Makeup SPF15 and Double Wear Foundation. Fragrance sales fell 1% to about $1.1 billion, due to lower sales of designer fragrances such as DKNY Delicious Night, Hilfiger Men, Sean John Unforgivable Women, Sean John Unforgivable and DKNY Men. Finally, hair care sales rose 3% in fiscal 2010 to nearly $414 million. Sales rose, in part, to the launch of Aveda’s Smooth Infusion Glossing Straightener and Control Force. By region, sales in the Americas rose 1% to more than $3.4 billion. Sales in Europe, the Middle East & Africa increased 9% to more than $2.8 billion; and sales in Asia/Pacific rose 16% to more than $1.5 billion. E-commerce sales rose 23% last year. Estée Lauder went a ways in cutting costs last year, too, by aligning its regional operations in order to effectively work together. Within its largest region, the Americas, the company created the North American affiliate business unit to enable brand managers 86 • happi

Major Products: Aveeno and Neutrogena skin care and sun care products; Clean & Clear teen skin care products; Johnson’s Balmex, Penatan and Natusan baby care products; Johnson’s skin and hair care products; Piz Buin and Sundown sun care products; Reach toothbrushes; RoC skin care products; Shower to Shower personal care products; Listerine.

New Products: Aveeno—Hydrosport sunblock, Baby Natural Protection with mineralblock; Neutrogena Naturals and Neutrogena Wet Skin sunblock.

Comments: Corporate sales fell less than 1% last year. Net income rose nearly 9%. Sales of skin, baby and oral care sales rose less than 2%. By segment, skin care sales totaled $3.5 billion, a decline of less than 1%, which the company blamed on a temporary reduction in shipments of Neutrogena products due to product supply constraints partially offset by growth in the Aveeno, Johnson’s Adult, Le Petit Marseillais and Dabao skin care lines. Oral care product sales fell 2.7% to $1.5 billion, primarily due to the divestiture of Efferdent and Poligrip and lower sales of mouth rinses and toothbrushes in the US. However, baby care sales rose 4.4% to $2.2 billion, due to growth in the Asia Pacific region. Last August, J&J rolled out Johnson’s Natural, a new line of products featuring at least 98% plant and fruit-derived natural in-

happi.com

July 2011

   

                  
           

    

    
 
 


• The Top 50

gredients and the brand’s iconic No More Tears formula. The line consists of a foaming baby wash, baby shampoo, baby lotion, a 2in-1 hand and face foaming wash for kids and a 3-in-1 shampoo, conditioner and body wash. Products are scented with Johnson’s Allerfree fragrance, which contains subtle notes of white floral, powder and vanilla scents, which is naturally derived and free of known allergens and irritating essential oils, according to the company. “Johnson’s is a leader in developing baby products that are mild and gentle to meet the different needs of all moms and caregivers,” said Rich Hildebrandt, group product director for the brand.“We’re thrilled to provide moms with trusted, natural products that are affordable and available at mass retail. Not all natural products are suitable for children, but the new line by Johnson’s is not only designed specifically for babies, it also won’t break the bank.” To support the launch, the company created www.johnsonsnatural.com, and has teamed up with the National Wildlife Federation in support of their efforts to inspire families to spend more time outdoors in nature. For the first quarter of 2011, corporate sales rose 3.5% to $16.2 billion. Net earnings were $3.5 billion. Earlier this year, J&J launched Wet Skin Sunblock, the first line of sun care products that can be applied directly to wet skin.

AMWAY

7.

Ada, MI 616.787.6000 www.amway.com Sales: $5.7 billion

Sales: $5.7 billion for personal care, nutrition and household products. Corporate sales: $9.2 billion for the year ended Aug. 31, 2010.

Key Personnel: Steve Van Andel, chairman; Doug DeVos, president; Bill Payne, chief of staff and interim chief financial officer; George Calvert, vice president, research and development and supply chain; Gan Chee Eng, president, Amway Greater China; Candace Matthews, chief marketing officer; and Jim Payne, executive vice president, sales/Amway Regions.

Major Products: Nutrilite vitamin, mineral and dietary supplements, Artistry skin care and color cosmetics, eSpring water treatment systems, Legacy of Clean home care products, Glister oral care.

New Products: Nutrilite C+ Time Release, Nutrilite Memory Builder, Artistry In88 • happi

Nutrilite Memory Builder with Ginkgo

tensive Skincare Renewing Peel and Beautycycle.

Comments: Amway’s parent company, Alticor Inc., reported sales rose 9.5% to exceed $9.2 billion for 2010. The 2010 performance results mark Alticor’s 10th sales increase in the past 11 years. The company said that despite an economy recovering from a global recession, 2010 was very solid. “We had a strong year across the map,” said Chairman Steve Van Andel.“Amway was able to gain market share in the direct selling industry, and our key product lines improved their competitive position as well.” Said President Doug DeVos: “Awareness of Amway’s business opportunity and product brands continue to grow as we invest in brand-building. We believe in the potential of this business, and so do our distributors. We are aiming even higher for 2011.” The company announced that category sales of Nutrilite approached $4 billion, attributed to overall growth in the category as well as increased visibility for Nutrilite in 2010. Major campaigns included“Color Yourself Healthy,”a global awareness program that promoted the benefits of plant ingredients for optimal health. Global sponsorships focused on major sports teams and wellknown athletes continue to build brand awareness for Nutrilite. Artistry skin care and cosmetics led beauty category sales for Amway. The company cited the successful launch of Artistry Intensives Renewing Peel, the first product in a new Intensives line of skin care products designed to provide professional results at home. Masstige brand Beautycycle successfully launched in Europe and Australia, targeted to consumers who are looking for high-quality skin care and cosmetics products containing natural ingredients. The company also unveiled a new Amway brand identity in 2010, highlighted by the opening of the Amway Center, home to the National Basketball Association’s Orlando Magic, which became the first high-profile venue in North America to showcase Amway’s new brand identity.

happi.com

July 2011

Mibelle AG Biochemistry, 5033 Buchs/Switzerland, Phone +41 (0)62 836 17 31

PhytoCellTec™ Argan Vitalizing dermal stem cell for fundamental anti-aging effectiveness PhytoCellTec™ Argan is the very first cosmetic active to target DERMAL stem cells. These cells have been discovered to play the key role in the beauty, firmness and density of skin. PhytoCellTec™ Argan vitalizes and protects these most valuable cells, enabling them to maintain their regenerating potential to reinforce youthfulness. • Protects and vitalizes dermal stem cells • Reactivates all of the skin’s youthful functions • Fights wrinkles and loss of firmness right at their formation

PhytoCellTec™ Argan will not only help to accelerate the skin’s natural repair process, but also uniquely provide a second chance for every type of skin.

www.mibellebiochemistry.com

Distributed in the USA by: www.tri-k.com

• The Top 50

The Amway One by One Campaign for Children rallies the resources of Amway distributors and employees around the world to make a difference in the lives of children in every market where the company conducts business. Since Amway One by One launched in 2003, it has provided hope and opportunity to 8 million children and donated more than $141 million to children’s causes worldwide. The number of employee and distributor volunteer hours logged since 2003 now totals 2.3 million, nearly doubling from a cumulative total of 1.3 million hours reported in 2009. Amway has developed a formalized disaster relief program. The goal is to anticipate in the event of a disaster to ensure prompt, decisive and effective action. As a result of the March 2011 earthquake and tsunami, collectively Amway corporate headquarters, global Amway affiliates, Amway employees, distributors and customers raised more than $4.4 million in funds toward immediate relief and long-term recovery in Japan.

ECOLAB

7.

St. Paul, MN 651.293.2233 www.ecolab.com Sales: $5.7 billion

Sales: $5.7 billion for cleaning and sanitizing products and services. Corporate sales: $6.1 billion. Net income: $530 million.

Key Personnel: Douglas M. Baker Jr., chairman, president and chief executive officer; Steven L. Fritze, chief financial officer; Thomas W. Handley, president, global food & beverage and APLA sectors; Phillip J. Mason, president, EMEA sector; James A. Miller, president, global services and specialty sectors; Susan K. Nestegard, president, global healthcare sector; James H. White, president, international sector; Christophe Beck, executive vice president, institutional North America; Larry L. Berger, chief technical officer and senior vice president; John J. Corkrean, principal accounting officer, vice president and corporate controller.

Major Products: Institutional—warewashing, laundry, housekeeping, water filtration and conditioning and pool and spa management products; Food and beverage—cleaning and sanitizing products, equipment, systems and services; Pest elimination—commercial elimination and prevention services and grease elimination programs; Kay—cleaning and sanitizing products and services for restaurant and food industries; Professional—floor care, carpet care and personal care products for the commercial, industrial and health care markets. 90 • happi

New Products: DryExx conveyor lubricant,Virasept hard surface disinfectant, RainX for Wheels.

Comments: Corporate sales rose 3% and net income improved 7%. US cleaning and sanitizing sales rose 2% to more than $2.7 billion. Institutional, which accounted for 54% of sales, reported a 1% sales gain. Segment results were mixed as demand in lodging improved while foot traffic in food service continued to decline. Sales within the food and beverage division rose 3% and accounted for 20% of US sales. Ecolab said sales increased in almost all end markets. However, sales were soft in meat and poultry. Kay accounted for 12% of US sales and recorded a 7% gain. Growth was led by new food retail accounts. Healthcare sales rose just 2%, as gains in the sales of infection barriers and surgical instrument cleaning products more than offset the spike in demand due to H1N1 virus preparations and slowing healthcare market trends in the current year. Accounting for the rest of US cleaning and sanitizing results were textile care (3%), vehicle care (2%) and specialty markets (1%). International sales rose 3% to more than $3 billion. The Europe, Middle East and Africa (EMEA) region accounted for 63% of sales, followed by Asia/Pacific, 20%; Latin America, 9% and Canada, 8%. EMEA sales rose just 1%, as gains in the UK and Turkey were offset by lower sales in Italy and France. Food and beverage and pest elimination gains were offset by flat healthcare sales and declining textile sales. Sales in Asia Pacific rose 8%, led by China, Australia and New Zealand. Institutional sales rose on higher hotel occupancy rates and better food and beverage sales. Latin American sales rose 8% due to strong growth in Brazil, Mexico and Venezuela. Institutional, food and beverage and pest elimination divisions all reported sales gains. Sales in Canada were up 4% on gains made in food and beverage and institutional, partially offset by lower health care sales.

Moves and More In September, Ecolab purchased the commercial laundry division of Dober Chemical, which had sales of $37 million. Ecolab said the move strengthens its North American commercial laundry business. Outside the US, in December, Ecolab purchased the Cleantec business of Campbell Brothers Ltd., Brisbane, Queensland, Australia. Cleantec had annual sales of $55 million and improves the company’s position in Australia, as well as in food and beverage processing, foodservice, hospitality and textile care. Acquisitions aside and looking further ahead, several megatrends appear to be in Ecolab’s favor. For instance, a growing global population will require an increasingly complex supply chain, putting added pressure on every link to assure food

happi.com

July 2011

The Top 50

safety. Similarly, the emergence of countries such as China and Brazil is opening up new opportunities for restaurants and food service facilities. Ecolab notes that an aging population is driving demand in both hospitality and health care segments, which should increase sales of infection control products and services. Good growth in Asia, Latin America and the US, helped Ecolab’s first quarter 2011 sales rise 6% to $1.5 billion.

COTY

9.

New York, NY 212.479.4300 Website: www.coty.com Sales: $3.8 billion

Sales: $3.8 billion (estimated) for the year ended June 30, 2010.

Key Personnel: Bernd Beetz, chief executive officer; Peter Harf, chairman; Sergio Pedreiro, chief financial officer; Michele Scannavini, president, Coty Prestige; Renato Semerari, president, Coty Beauty; Darryl McCall, executive VP-global operations; Géraud-Marie Lacassagne, senior VP-human resources; Jules Kaufman, senior VP, general counsel, secretary of the board.

Major Products: Fragrances and beauty products sold in two divisions. Coty Prestige—Balenciaga, Bottega Veneta, Calvin Klein, Cerruti, Chloé, Chopard, Davidoff, Jennifer Lopez, Jil Sander, Joop!, Karl Lagerfeld, Kenneth Cole, L.A.M.B. fragrance by Gwen Stefani, La Voce by Reneée Fleming, Lancaster, Marc Jacobs, Nikos, Philosophy, Sarah Jessica Parker, Vera Wang, Vivienne Westwood and Wolfgang Joop; Coty Beauty—Adidas, Astor, Baby Phat, Beyoncé Knowles, Celine Dion, Chupa Chups, David and Victoria Beckham, Esprit, Exclamation, Faith Hill, Guess?, Halle Berry, Jovan, Kate Moss, Kylie Minogue, La Cross, Lady Gaga, Manhattan, Manhattan Clearface, Miss Sporty, Nautica, N.Y.C. New York Color, Nicole by OPI, OPI, Pierre Cardin, Playboy, Rimmel, Sally Hansen, Stetson, Tim McGraw, TJoy and Tonino Lamborghini.

tant in cinema, in art, in fashion,” Coty CEO Bernd Beetz told Reuters.“It’s in the DNA of society.” While stars such as Jennifer Lopez, Gwen Stefani and Lady Gaga may be consumers’ DNA, acquisitions can be the growth hormone that companies, and their backers, crave. Late last year, Coty made several key acquisitions including OPI, a prestige nail care company; Philosophy, a premier skin care and cosmetics company; TJoy, a leading Chinese skin care company; and Dr. Scheller Cosmetics AG, manufacturer of some of Germany’s most popular makeup and skin care brands. Those moves grabbed the attention of industry outsiders and in January 2011, Berkshire Partners LLC, the Boston-based private equity firm, and Rhône, a private equity firm with offices in New York and London, made minority equity investments in Coty. Terms of the transactions were not disclosed. “Coty is an established leader in the global fragrance, beauty and skin care industry, with an impressive collection and diversity of consumer brands,” said M. Steven Langman, managing director, Rhône. “Rhône is excited to be partnering with Coty, its management team and its shareholders in this transaction and to support Coty in the realization of its strategic plans.” According to Beetz, the move puts Coty in a good position for more acquisitions. “This mutually beneficial agreement allows Coty to continue its accelerated growth path organically and externally around the globe,”said Beetz.“By bringing these partners on board, Coty will be in a stronger position to prepare for future and larger acquisitions while maintaining the culture that makes Coty such a unique place in the beauty industry.” With fiscal 2011 ending last month, Coty’s sales were expected to easily top $4 billion on the strength of its recent acquisitions and its growing portfolio of fragrance brands.

DIVERSEY

10.

Sturtevant, WI 262.631.4001 www.diversey.com Sales: $3.1 billion

Sales: $3.1 billion. Net income: $64 million.

New Products: Reveal by Halle Berry. Acquisitions—OPI, TJoy and Dr. Scheller Cosmetics.

Comments: Fueled by the public’s fascination with all things celebrity, privatelyheld Coty continues to post double-digit sales gains year after year. “Look around. Celebrities are becoming more and more imporJuly 2011

•

Key Personnel: Helen Johnson-Leipold, chairman; Edward F. Lonergan, president and chief executive officer; John Alexander, regional president, Americas; Moreno Dezio, regional president, Europe; Nobuyoshi Yamanaka, regional president, Japan; Yagmur Sagnak, regional president, Asia-Pacific, Africa, Middle East, Turkey; Pedro Chidichimo, president, global customer solutions and innovation.

happi.com

happi • 91

• The Top 50

Major Products: Cleaning and hygiene solutions and services that are used in commercial, institutional and industrial facilities. The company operates in six categories: food service, food processing, floor care, restroom/other housekeeping, laundry and industrial. Brands include: Complete, ShowPlace, SnapBack, Virex, Alpha HP, G-Force, Crew, Soft Care, Good Sense, Endbac, Signature, J-Fill, Taski, Jonmaster, Suma, DuBois, Dify and Divermite. In addition, the company owns other well-known brands such as Butcher’s, Johnson Wax Professional, U.S. Chemical, Drackett Professional and PurEco Certified Green Products (Europe), as well as the Greenguard-Certified Healthy High Performance Cleaning program (includes products, tools and procedures).

New Products: Proteus Activator Washing System, Signet Cleaning Chemical Service, One Step Fryer Boil-Out, Taski by Diversey floor care machine.

Comments: The deal is sealed. On June 1, Sealed Air Corporation agreed to acquire Diversey Holdings Inc. in a cash and stock transaction valued at $4.3 billion. The transaction is expected to be completed this year. The purchase is a net gain to Diversey shareholders of $2.9 billion after accounting for $1.4 billion in debt. Much of that debt was due to Johnson Wax Professional’s 2002 acquisition of Diversey Lever to become JohnsonDiversey. Sealed Air, the Bubble Wrap maker, calls itself a leading provider of food and industrial system solutions that help ensure that food retains its freshness, products arrive undamaged, and transit efficiencies are maximized to reduce energy and waste. Sealed Air is focused on pioneering a differentiated, proprietary range of offerings in material science, automation technology and service-based solutions in order to provide comprehensive solutions to its customers. Sealed Air operates in 52 countries, employs more than 16,000 people and generated net sales of $4.5 billion in 2010. “This transaction represents a strategic growth opportunity that leverages Sealed Air’s core competencies and positions our company to further capitalize on the megatrends that drive both businesses,” said William V. Hickey, president and chief executive officer, Sealed Air.“With Diversey, we will expand our footprint beyond specialty packaging solutions by gaining entry into a $40+ billion chemical cleaning and hygiene industry that has attractive fundamentals and is already in our value chain. This combination is also financially compelling, and we expect it to deliver enhanced earnings per share and free cash flow generation, creating meaningful value for our shareholders.” After the transaction closes, Edward F. Lonergan, president and chief executive officer of Diversey, and his team will join Sealed Air and Lonergan will continue to lead the Diversey business. According to the companies, the move creates a global leader in sustainable solutions that provide hygiene, protection, food safety and security; extends the geographic footprint and enhances 92 • happi

growth opportunities in developing regions, expands revenue opportunity with overlapping customer base, broadens solutions offering and combines complementary business models. Obviously, the sale will end the Johnson family’s control of Diversey. Until the acquisition by Sealed Air, the Johnson family owned 51% of Diversey. After the closing, Diversey shareholders will own about 15% of Sealed Air common stock. In an interview with The Journal Times of Racine, Helen Johnson-Leipold, Diversey’s chairman, called the sale,“difficult because we have pride in ownership in building a company into what it is.” The only other company sale experience the Johnson family has is the 2006 sale of Diversey subsidiary Johnson Polymer to BASF. In smaller deals, SC Johnson sold Edge, Johnson Outdoors sold its rod-and-reel business and Johnson Financial Group sold its Swiss subsidiary. At press time, Sealed Air plans to maintain Diversey’s business unit for the Americas, and research and development functions. Diversey employs more than 600 at the site. For its part, Sealed Air spokesman Ken Aurichio said no workforce-related decisions have been made. “In this case, while the businesses are complementary, they’re still fairly stand-alone.”Aurichio added, “I wouldn’t see any sort of dramatic reductions” in workforce. Johnson-Leipold also told The Journal Times that no decisions have been made. “But I think it’s obvious we provide a different skill set than Sealed Air.”

LIMITED BRANDS

11.

Columbus, OH 614.415.7000 www.limitedbrands.com Sales: $2.7 billion

Sales: $2.7 billion (estimated) for home fragrance and personal care products. Corporate sales: $9.6 billion. Net income: $805 million for the year ended Jan. 30, 2011.

Key Personnel: Leslie H. Wexner, chairman and chief executive officer; Martyn R. Redgrave, executive vice president and chief administrative officer; Stuart B. Burgdoerfer, executive vice president and chief financial officer; Diane L. Neal, chief executive officer, Bath and Body Works; Sharen J. Turney, president and chief executive officer, Victoria’s Secret.

Major Products: Bath & Body Works—Signature Collection, antibacterial and home fragrance product lines; Victoria’s Secret—Secret Garden, Beauty

happi.com

July 2011

The Top 50

Rush, Dream Angels, Incredible by Victoria’s Secret, VS Attractions, Sexy Little Things,Very Sexy, Bombshell and Pink fragrances and VS Makeup.

New Products: Bath & Body Works—The Coconuts, Carried Away, Country Chic and Into the Wild signature fragrances.

Comments: The Limited seems to be back on target after corporate sales rose 11% in 2010 and net income soared 80%. In 2009, sales fell 4%. Bath & Body Works’ sales rose 6% to just over $2.5 billion, while Victoria’s Secret’s beauty sales increased 15%. The company credited the increase in Victoria’s Secret beauty to a compelling merchandise assortment that incorporated newness, innovation and fashion. Despite the good results, the company is making some tough decisions in 2011 as it closes 1,000 international stores this year. In a personnel move, Diane Neal, chief executive officer of Bath & Body Works, will remain in that role through the end of the summer and then transition into an advisory role with the company from San Francisco. Nick Coe, formerly president of Lands’ End, will join BBW as its CEO. As of Jan. 29, 2011, Limited Brands operated 2,968 stores, including 1,606 Bath & Body Works stores in the US (down from 1,627 stores in fiscal 2009) and 1,028 Victoria’s Secret stores in the US (down from 1,040 a year ago).

CLOROX

12.

Oakland, CA 510.271.7000 www.thecloroxcompany.com Sales: $2.6 billion

Sales: $2.6 billion (estimated) for household cleaning and personal care products. Corporate sales: $5.5 billion. Net income: $603 million for the year ended June 30, 2010.

Key Personnel: Don Knauss, chairman, president and chief executive officer; Daniel J. Heinrich, executive vice president, chief financial officer; Lawrence S. Peiros, executive vice president, chief operating officer; Frank A. Tataseo, executive vice president, strategy and growth, partnerships, away from home; Wayne L. Delker Ph.D., senior vice president, chief innovation officer; Benno Dorer, senior vice president, general manager, cleaning division; James Foster, senior vice president, chief product supply officer; Jacqueline P. Kane, senior vice president, human resources and corporate affairs; Grant J. LaJuly 2011

•

Montagne, senior vice president, chief customer officer; George C. Roeth, senior vice president, general manager, specialty division; Laura Stein, senior vice president and general counsel; Michael Costello, vice president, general manager, international.

Major Products: Cleaning—Clorox disinfecting wipes, Pine-Sol dilutable cleaners, Clorox Clean-Up cleaner and Clorox bathroom cleaners; Personal Care—Burt’s Bees natural personal care products.

New Products: Cleaning—Outdoor Fresh and Garden Fresh Pine-Sol, Clorox 2 Foaming Soil & Stain Remover, Clorox2 packs, Bleach Outdoor, Lemon-to-Go wipes, Tilex Tile & Grout; Burt’s Bees—Nourishing Lip Balm with Mango Butter and Rejuvenating Lip Balm with Açai Berry, Spearmint Gel Natural Toothpaste.

Comments: Clorox holds several strong positions in the household and personal care market, but the company faces pressure from rising commodity costs and private label competition. For the nine months ended March 31, 2011, corporate sales slipped 1% to $3.7 billion, while net earnings dropped 10% to $388 million. During the period, cleaning sales dropped about 1%. Big brands drive Clorox, as 88% of the company’s portfolio is made up of brands that are either No. 1 or No. 2 in their category. According to SymphonyIRI data for the 52 weeks ended March 27, 2011, Clorox Wipes held a 51% share of its category, Clorox Toilet Bowl cleaner, 37%; Pine-Sol, 30%; Tilex/Clorox 19%; Burt’s Bees, 20% and Clorox Bleach, 64%. All of them are No. 1 in their categories. Still, not all is well for Clorox or other consumer product companies as commodity prices soar, forcing companies to raise prices across their portfolios. Commodity costs are expected to double to $170 million in fiscal 2012. “We’re taking pricing [raising prices] broader and faster than we’ve ever taken before,” Clorox chief operating officer Larry Peiros said in an interview last month. “At the end of the day, we know we will lose some volume due to pricing.” The company recently raised prices 10% on Glad garbage bags, and is talking to retailers about further increases. The higher prices are expected to boost sales by four percentage points in Clorox’s new fiscal year, which started July 1, but volume is seen falling three percentage points as a result. Clorox still sees flat volume overall next year, recouping losses by selling more new products and by advertising. However, Bernstein & Co. has noted that Clorox is the consumer product manufacturer most at risk from consumers trading down to cheaper goods, especially in categories like cleaning products, trash bags and bleach. In general, analysts are worried about consumer pushback. Clorox will try to respond by offering more value to consumers, like Febrezescented Glad trash bags and new scents of Pine Sol cleaner.

happi.com

happi • 93

• The Top 50

Last year, corporate sales rose 2%, volume was up 3%, but net earnings rose 12%. While cleaning segment sales were flat, the gain in volume was attributed in part to increased shipments of Clorox Disinfecting Wipes and other disinfecting products to meet demand associated with the H1N1 flu pandemic. Also contributing to the volume growth were increased shipments of Pine-Sol cleaner and Clorox toilet bowl cleaners due to increased distribution and promotional activities and increased shipments of Armor All auto care products due to price declines. These increases were partially offset by lower shipments of STP auto care products due to reduced promotional activities and the Green Works line of natural cleaners due to category softness. Mary Kay’s Apricot Twist eyeshadow.

or innovation in how those products are put into the hands of consumers—from rapid delivery to product introductions—and the after-life of service and support that the consumer experiences. In product news, Mary Kay TimeWise Liquid Foundations comes in a wide variety of shades and choice of finishes for different skin types and the bonus of age-fighting benefits. Over the years, the company has been involved in an array of programs in support of women. One of its latest is the Beauty That Counts Initiative. On sale from Sept. 10 to Dec. 15, Mary Kay will donate $1 from each sale of limited edition Beauty That Counts Creme Lipsticks to The Mary Kay Foundation in its efforts to end domestic violence.

MARY KAY

13.

Addison, TX 972.687.6300 www.marykay.com Sales: $2.5 billion

Sales: $2.5 billion.

Key Personnel: David Holl, president and chief executive officer; Richard Rogers, executive chairmen; Timothy M. Byrd, chief financial officer and office of the chairman; Terry R. Cole, president, international supply chain management; Darrell Overcash, president, US and Canada operations; Beth Lange, chief scientific officer.

Major Products: Skin care, color, body care, sun care and fragrance marketed under the Mary Kay and TimeWise brand names.

New Products: Color—Cream Eye Color and Blush, Compact Mini, The Weekender Collection; Skin Care—TimeWise Matte-Wear and Luminous-Wear Foundations, Liquid Illuminators, Pedicure Set, Lash Love Mascara, Mineral Eye Color Bundles, Shadow and Line Eye Duos, Tranquil Waters Fragrance Pencil and Refreshing Body Gel.

Comments: Sales were flat last year. Mary Kay products are sold in more than 30 markets worldwide, and the global Mary Kay independent sale force exceeds 2 million. Loyalty has always played a big role at the company and with consumers too. In a 2011 Brand Keys Customer Loyalty Engagement Index (CLEI) survey, Mary Kay, along with Lancôme, Elizabeth Arden, Clairol, L’Oréal, Aveda and Suave received high marks. According to Brand Keys, innovation is key, whether it’s innovation in the products themselves, 94 • happi

CHURCH & DWIGHT CO.

14.

Princeton, NJ 609.683.5900 www.churchdwight.com Sales: $2.1 billion

Sales: $2.1 billion for household, personal care and oral care products. Corporate sales: $2.5 billion. Net income: $270 million.

Key Personnel: James R. Craigie, chairman and chief executive officer; Jacquelin J. Brova, executive vice president, human resources; Mark G. Conish, executive vice president, global operations; Steven P. Cugine, executive vice president, global new products innovation; Matthew T. Farrell, executive vice president and chief financial officer; Bruce F. Fleming, executive vice president and chief marketing officer; Susan E. Goldy, Esq., executive vice president, general counsel and secretary; Adrian J. Huns, executive vice president, president international consumer products; Joseph A. Sipia Jr., executive vice president, president specialty products division; Paul A. Siracusa, Ph.D., executive vice president, global research and development; Louis H. Tursi Jr., executive vice president, domestic consumer sales.

happi.com

July 2011

The Top 50

Major Products: Household—Arm & Hammer Baking Soda, Arm & Hammer Fridge Fresh, Arm & Hammer Clumping Litter, Arm & Hammer Clean Shower, Arm & Hammer Scrub Free, Orange Glo Wood cleaners, Kaboom Scrub Free! Continuous Toilet Cleaning System, Kaboom Ultra Scrub, Kaboom Shower, Tub & Tile Cleaner, Arm & Hammer liquid laundry detergent, powder laundry detergents, Fresh ‘n Soft fabric softener sheets and liquid fabric softener, Arm & Hammer Essentials liquid laundry detergent and fabric softener sheets, Arm & Hammer Wet Dryer clothes, Arm & Hammer with OxiClean detergent, OxiClean laundry stain remover, OxiClean versatile stain remover, OxiClean baby stain soaker, OxiClean baby stain remover, OxiClean Max Force laundry stain remover, Xtra liquid laundry detergent; Parson’s Ammonia, Cameo. ScrubFree from Church Personal Care—Arm & Hammer & Dwight toothpaste, Arm & Hammer Spinbrush, Pepsodent, Aim, Close Up, Pearl Drops, Rigident, Arrid, Arm & Hammer Ultramax, Lady’s Choice deodorants, Nair, Nair Wax, Orajel.

•

For the first quarter ended March 31, 2011, sales increased 1.2% to more than $642 million. Higher sales of Arm & Hammer Spinbrush battery-powered toothbrushes helped offset lower sales of value toothpastes and Oxiclean laundry additive, which still managed to grow share in a soft category.

SUN PRODUCTS

15.

Wilton, CT 203.254.6700 www.sunproductscorp.com Sales: $2.0 billion

Sales: $2.0 billion (estimated)

Key Personnel: Jeffrey Ansell, president and chief executive officer; Kris Kelley, executive vice president and chief financial officer; Bob Waldron, chief marketing officer; Perry Beadon, senior vice president, customer development; Gretchen Crist, senior vice president, human resources; Blair Hawley, senior vice president, logistics & distribution; Beth Hecht, senior vice president, general counsel and secretary; Craig Slavtcheff, senior vice president, R&D and quality; Mitch Tinnan, senior vice president, product supply.

New Products:

Major Products:

Arm & Hammer Power Gel detergent, Simply Saline (acquisition).

Fabric and dish care products including All, Wisk, Snuggle, Sunlight and Sun brands. Also, a small number of personal care brands sold under the White Rain label.

Comments: Corporate sales rose nearly 3% last year, which, in light of intense price pressure in the home care sector and less than robust demand, was a win, according to James R. Craigie, chairman and CEO, who also noted that C&D was able to increase market share in 6 of its 8 power brands in 2010 and ended the year with strong consumption in its major brands. Last year, higher sales of Arm & Hammer liquid laundry detergent and Kaboom bathroom cleaner were offset by lower sales of Xtra liquid laundry detergent, Oxiclean laundry additive, Spinbrush toothbrushes, Arm & Hammer powder detergent, Arrid antiperspirant and other oral care products. “Our new manufacturing plant and distribution center in York County, PA, supported continued strong revenue growth and production efficiency for our laundry detergent business,” Craigie added. This year, the company is considering moving corporate offices out of Princeton to nearby Ewing, NJ. According to Ewing Mayor Bert Steinmann, Church & Dwight is working on a lease for a yet-unbuilt 250,000-square foot facility off Charles Ewing Boulevard, along the Interstate 95 corridor. July 2011

New Products: Wisk with Stain Spectrum, Snuggle Free Clear, Sunlight Deep Clean, All Oxi Active.

Comments: Sun remains the No. 2 player in the U.S. laundry care market, but sales have slipped as the category suffers through intense competition, according to sources. Standard & Poor’s Ratings Services recently downgraded Sun, noting that the company’s performance has declined “due to softness in the US laundry detergent category and increasingly competitive operating conditions.” Meanwhile, Moody’s Investors Service lowered Sun’s corporate family rating to B2 from B1. According to Moody’s, Sun faces tough competition from “better capitalized operators,” primarily Procter & Gamble and Church & Dwight, Moody’s said. In the company’s favor, Sun has a “good liquidity profile” and no major near-term debt maturities, according to Moody’s. Earlier this year, Sun CEO Neil DeFeo retired but remains

happi.com

happi • 95

• The Top 50

chairman. His replacement is Jeffrey Ansell, who most recently was chief executive officer and a board member of Pinnacle Foods Group, a $2 billion packaged foods company. Prior to that, Ansell was a corporate officer at Procter & Gamble, where he worked for 25 years, with the last seven years as president of the Iams pet care subsidiary. Under his leadership, P&G pet care sales increased nearly $1.0 billion and the Iams brand in North America grew from the No. 5 pet food brand to No. 1. During the year, Sun relaunched Wisk featuring an improved formula with Stain Spectrum technology. In other moves, the company acquired the US and Canadian Sunlight branded hand and dish care business. The company maintains that its technology center in Trumbull, CT expands its ability to deliver new innovative products, while also demonstrating Sun’s commitment to the community through the creations of jobs and economic growth. Late last year, Sun settled a lawsuit filed against U.S. Nonwovens, Brentwood, NY, for making and selling products that infringed certain patents, trademarks and trade dress related to its Snuggle, Sunlight and Sun brands. Shortly after Sun Products commenced this lawsuit, U.S. Nonwovens agreed to stop manufacturing and selling products that infringed Sun Products’ intellectual property. The companies entered into discussions and ultimately finalized a settlement agreement, for which financial terms were not disclosed.

ALBERTO CULVER

16. Melrose Park, IL 708.450.3000 www.alberto.com Sales: $1.5 billion

Sales: $1.5 billion (estimated) for personal care products. Corporate sales: $1.6 billion. Net income: $155 million for the year ended Sept. 30, 2010.

Key Personnel: V. James Marino, president and chief executive officer; Gina Boswell, president, global brands; Richard J. Hynes, president, international; Casey Keller, president, US; Ralph J. Nicoletti, executive vice president and chief financial officer; Gary P. Schmidt, senior vice president, general counsel and secretary.

Major Products:

VO5 Perfect Hold Styling, Nexxus Pro•Mend

Comments: Alberto is on its way out as a member of The Top 50. Last September, Unilever agreed to purchase the company in a $3.7 billion cash deal. The move satisfies several objectives for Unilever. Specifically, it: • Enhances Unilever’s presence in an attractive, high-growth category. • Brings a portfolio of attractive brands, which have together grown at above market growth rates in a competitive category. • Provides Unilever with the opportunity to use its scale, reach and technology to take Alberto Culver’s brands to a new level in existing markets and extends its presence to new emerging markets. • Adds successful styling and conditioning brands like TreSemmé and Nexxus to Unilever’s US portfolio, complementing its own brands such as Suave, Dove and Sunsilk. • Adds complementary brands like VO5, Tresemmé and Simple that enable Unilever’s UK business to cover more price points across categories. To learn more about Unilever, be sure to read The International Top 30, which will appear in the August issue of HAPPI. While Alberto-Culver may be going out, it’s going out with a bang, not a whimper. Sales in fiscal 2010 rose more than 11% and net income rose 30%. In the US, sales increased 3.5% in the fourth quarter due to growth in TreSemmé and Nexxus. International sales on a reported basis increased 26.7% (the net effect of foreign currency fluctuations, acquisitions and divestitures accounted for approximately 19.5% of the growth) as each international region generated organic sales growth, with Latin America and Canada being particularly strong. For the first quarter ended Dec. 31, 2011, sales increased 11.7% to $405 million. In the US, sales increased 2.8% on the strength of Nexxus’ sales.

REVLON

17. New York, NY 212.527.4000 www.revlon.com Sales: $1.3 billion

Sales: $1.3 billion. Net income: $66.7 million.

Hair Care—Alberto VO5, TreSemmé, Nexxus, Motions, Just for Me, Soft & Beautiful; Skin Care—St. Ives, Noxzema. Household Care— Static Guard, Kleen Guard. 96 • happi

New Products:

Key Personnel: David L. Kennedy, vice chairman; Alan T. Ennis, president and chief

happi.com

July 2011

The Top 50

executive officer; Chris Elshaw, executive vice president and chief operating officer; Steven Berns, executive vice president and chief financial officer; Julia Goldin, executive vice president, global chief marketing officer; Robert K. Kretzman, executive vice president and chief administrative officer; Alan Meyers, executive vice president and chief science officer; Manuel Blanco, senior vice president and managing director, Latin America region; John Collier, senior vice president and general manager, US; Arthur Franson, senior vice president, global supply chain and manufacturing; David Teasdale, senior vice president and managing director, Asia Pacific; Mark Wood, senior vice president and managing director, Europe, Middle East and Africa; Simon Worraker, senior vice president and general manager, Canada.

Fast Fact: The nail care sector is white hot, and this March, Revlon made a move to grow its presence in the category by picking up Sinful Colors, a popular mass market lacquer brand, when it acquired Mirage Cosmetics. Major Products: Cosmetics, women’s hair color, beauty tools, fragrances, skin care, antiperspirants/deodorants and personal care products marketed under such names at Revlon, Almay, ColorSilk, Mitchum, Charlie, Gatineau and Ultima II.

New Products: Skin care—Age Defying with DNA Advantage Cream Makeup; Color cosmetics—Grow Luscious Plumping Mascara and Lash Liner, Colorstay Aqua Mineral Finishing Powder, Summer Romantics collection, Sinful Colors (acquisition).

Comments: Sales rose 2% to $1.3 billion and net income increased more than 36% last year. The company credited the gains to higher net sales of Revlon color cosmetics and Revlon ColorSilk hair color, which were partially offset by lower net sales of Almay color cosmetics and Mitchum antiperspirant deodorant. As previously disclosed, effective for periods beginning Jan. 1, 2010, the company reports Canada separately and reports South Africa as part of the Europe, Middle East and Africa region. As a result, prior year quarterly and year to date amounts have been reclassified. In the US, net sales declined 2.5% to $729.1 million, due priJuly 2011

•

marily to lower net sales of Almay color cosmetics, Revlon ColorSilk hair color and Mitchum antiperspirant deodorant, partially offset by higher net sales of Revlon color cosmetics. Net sales of color cosmetics benefitted from lower promotional allowances as the company continued to optimize its brand support mix, and also benefitted from lower returns. In Asia Pacific, net sales rose 11% to $209.9 million. Excluding the favorable impact of foreign currency fluctuations, net sales increased $6.0 million, or 3.2%. Higher net sales of Revlon color cosmetics, Revlon ColorSilk hair color and other beauty care products in the region were partially offset by lower net sales of Revlon color cosmetics in Australia and Japan. In Europe, Middle East and Africa, net sales increased 9% to $200.4 million. The increase was primarily due to higher net sales of fragrances throughout the region as well as higher net sales of color cosmetics and other beauty care products in South Africa. In Latin America, net sales fell about 1% to $107.9 million, due primarily to currency fluctuations. Excluding fluctuations, Latin American sales rose 29.5% due to sales of Revlon ColorSilk hair color, Revlon color cosmetics and other beauty care products in both Venezuela and certain distributor markets. In Canada, net sales increased nearly 12% to $74.1 million. Excluding the favorable impact of foreign currency fluctuations, net sales in Canada increased $1.4 million, or 2.1%. The increase was primarily driven by higher net sales of Revlon color cosmetics, which were partially offset by lower net sales of Revlon beauty tools. For the first quarter of 2011, net sales rose 9.1% to $333.2 million. The increase was primarily due to higher net sales of Revlon color cosmetics, as well as Almay color cosmetics, fragrances, and other beauty care products, which were partially offset by lower net sales of Revlon ColorSilk hair color. In the US, net sales increased 2.3% to $186.2 million. The increase was driven primarily by higher net sales of Revlon and Almay color cosmetics, which were partially offset by lower net sales of Revlon ColorSilk hair color. Net sales of Revlon color cosmetics increased in part due to lower promotional allowances as compared to the first quarter of 2010. In Asia Pacific, net sales increased 15.7% to $53.1 million, primarily due to higher net sales of Revlon color cosmetics in China and certain distributor markets. In Europe, Middle East and Africa, sales increased 15.9% to $49.7 million, thanks to higher net sales of Revlon color cosmetics, Mitchum antiperspirant deodorant and fragrances in the UK and South Africa. In Latin America, sales rose 35% to $27.0 million, on the strength of higher sales of Revlon color cosmetics, Almay color cosmetics, Revlon ColorSilk hair color and other beauty care products. Finally, in Canada, sales increased 17.8% to $17.2 million, primarily due to higher net sales of Revlon color cosmetics. Net income soared more than 400%, to $10.4 million, compared to $2.2 million a year ago. Last month, a fire destroyed a substantial portion of Revlon fa-

happi.com

happi • 97

• The Top 50

cility in Venezuela. At press time, the company was evaluating the extent of the damage and the impact on its business in the Latin America region. During 2010, the company’s subsidiary in Venezuela had net sales of approximately 3% of the company’s consolidated net sales and its total assets were approximately 3% of the company’s total assets. Revlon’s net sales in Venezuela are comprised of locally manufactured product as well as product imported from its Oxford, NC facility.

ELIZABETH ARDEN

18.

Miramar, FL 954.364.6900 www.elizabetharden.com Sales: $1.1 billion

GUTHY-RENKER

18.

Sales: $1.1 billion. Net income: $19.5 million for the year ended June 30, 2010.

Key Personnel: E. Scott Beattie, chairman, president and chief executive officer; Joel B. Ronkin, executive vice president and general manager, North America; Stephen J. Smith, executive vice president and chief financial officer; Kathy Widmer, executive vice president and chief marketing officer; Pierre Pirard, executive vice president, product innovation and global supply chain; Oscar E. Marina, executive vice president, general counsel and secretary; L. Hoy Heise, executive vice president and chief information officer.

Major Products: Elizabeth Arden skin care, color and fragrance products; Prevage anti-aging treatments; Elizabeth Taylor, Mariah Carey, Britney Spears and Usher celebrity fragrances; Juicy Couture, Kate Spade New York, John Varvatos, Rocawear, Alberta Ferretti, Halston, Geoffrey Beene, Badgley Mischka, Alfred Sung, Bob Mackie and Lucky designer fragrances.

New Products: Couture Couture, Lollipop Bling. To be launched: Taylor Swift fragrances (Fall 2011).

Comments: For the nine months ended March 31, 2011, Elizabeth Arden reported a 5.3% increase in sales to $921.8 million. For the full year, the company expects sales to rise 5-6%. In November, Elizabeth Arden signed a licensing agreement with Taylor Swift to develop and market her own line of fragrances. The first scent will debut in prestige North American retailers in the fall. For fiscal 2010, sales rose 3.1% on the success of the Couture 98 • happi

Couture launch, as well as the continued rollout of Viva La Juicy. Sales of Britney Spears fragrances and Elizabeth Arden branded products increased too, but these increases were partially offset by a $20 million loss in distributed brand sales and a $13.5 million decline in sales of other fragrances, primarily Usher. Sales in North America (61% of sales) rose less than 2% to nearly $673 million. Although sales to US department store customers decreased $17.4 million, sales to other customers, primarily mass customers, increased $28.2 million. International sales rose nearly 5% to more than $384 million. The gain was attributed, in part, to a $13.8 million increase in travel retail and the international rollout of Viva La Juicy and launches of Couture Couture and the Alberta Ferretti fragrance.

Palm Desert, CA 760.773.9022 www.guthy-renker.com Sales: $1.1 billion

Sales: $1.1 billion (estimated) for personal care products. Corporate sales: $1.5 billion.

Key Personnel: Bill Guthy and Greg Renker, co-founders and co-chairmen; Ben Van de Bunt and Kevin Knee, co-chief executive officers and presidents.

Major Products: Cosmetics and personal care brands including Proactiv, Principal Secret,Youthful Essence, Sheer Cover, Meaningful Beauty, Natural Advantage, In An Instant, Wen by Chaz Dean, Scalp Med.

New Products: Dr. Evans Cosmeceuticals.

Comments: Sales were flat last year for the infomercial king and observers blame it on consumers growing weary of watching those 30minute ads. To try to woo them back, Guthy-Renker spent more than $10 million last year on billboard advertising and network television spots for Proactiv, its best-selling brand. But to put that ad-spend in perspective, the company spends nearly $200 million for TV airtime for those Proactiv infomercials, according to sources, who say that it typically costs $20-30,000 to buy a half hour on a Saturday morning. The newest addition to the G-R lineup is Dr. Evans Cosmeceuticals, which debuted in August. The Dr. Evans line includes Papaya Renewal, a three-step program that’s designed to cleanse,

happi.com

July 2011

The Top 50

revitalize and replenish skin. But there’s more to G-R than beauty. The company also sells Tony Robbins’ inspirational programs, old Dean Martin Celebrity Roast tapes and more. In March, Guthy-Renker announced its intention to partner with Sacramento-based financial company, Paramount Equity. Guthy-Renker will take a significant equity stake in Paramount Equity, which includes Paramount Equity Mortgage, Paramount Equity Insurance Services and Paramount Energy Solutions. Guthy-Renker will provide marketing resources to help Paramount Equity grow nationally over the next few years. “Guthy-Renker’s history is about teaming up with extraordinary people and companies to get their stories told. Paramount Equity is a great company with outstanding employees, a vibrant culture and passionate vision. We’re excited by the opportunity to give them the marketing help that they need to grow,” said Ben Van de Bunt, coCEO of Guthy-Renker.“The offering of mortgage, solar and insurance delivers a powerful combination that will enable Paramount Equity to become a sizeable player in the national market.”

NU SKIN ENTERPRISES, INC.

20.

Enterprises, Inc. Provo, UT 800.487.1000 www.nuskin.com Sales: $914 million

Sales: $914 million for personal care products. Corporate sales: $1.5 billion.

Key Personnel: Blake M. Roney, chairman; Steven J. Lund, vice chairman; Sandie N. Tillotson, senior vice president; M. Truman Hunt, president and chief executive officer; Ritch N. Wood, chief financial officer; Daniel R. Chard, president, global sales and operations; D. Matthew Dorny, vice president, general counsel and secretary; Joseph Y. Chang, Ph.D., chief scientific officer

•

Comments: It was a banner year for Nu Skin, as corporate sales for 2010 rose 15% to more than $1.5 billion—with nearly 60% of sales attributed to personal care. “2010 was an exceptional year for Nu Skin as we generated a record level of revenue, paid out a record level of commissions to our sales leaders, and enjoyed a record level of profitability,” said Truman Hunt, Nu Skin president and chief executive officer. “While we are enjoying growth in most of our regions around the world, we are particularly pleased with robust growth rates in Mainland China, South Korea and South Asia/Pacific. Our growth is a reflection of the compelling innovation we have infused into our ageLOC product platform, as well as our sales leaders’ phenomenal ability to bring this innovation to the marketplace. “We concluded the year with our first-ever $400 milliondollar revenue quarter, which is an exciting benchmark in our effort to become the world’s leading direct selling company. And our global management team continues to execute successfully on our growth initiatives. From virtually every metric, 2010 was a highly successful year,” he added. During the year, the company unveiled proposed architectural renderings of an $85 million innovation center that will be an expansion to Nu Skin headquarters in Provo, UT. It also conducted a broader direct selling authorization in mainland China and received a 2010 International Business Award for Best New Product of the Year for its ageLOC Transformation daily skin care system, according to the company’s public relations department. In October 2010, Nu Skin rolled out its first nutritional product under the ageLOC Transformation skin care system, ageLOC Vitality. “With the blockbuster success of the ageLOC Transformation skin care system, we are continuing to build the ageLOC platform by taking the battle against aging ‘inside,’” said Hunt. “It is particularly encouraging to see our sales leaders responding so positively to ageLOC Vitality and the business opportunity it represents.”

Major Products: AgeLOC Edition Galvanic Spa System II with ageLOC Facial Treatment Gels; ageLOC Transformation daily skin care system, which includes ageLOC Future Serum, ageLOC, Gentle Cleanse & Tone, ageLOC Radiant Day SPF 22 and ageLOC Transforming Night; Tru Face Essence Ultra; Tru Face Line Corrector; 180° Anti-Aging Skin Therapy System; Clear Action Acne Medication System, Nutricentials; Celltrex.

Fast Fact: AgeLOC Transformation daily skin care is used by more than 50,000 people every day to enjoy a more youthful appearance.

New Products: ageLOC Vitality July 2011

happi.com

happi • 99

• The Top 50

The new innovation center planned for Nu Skin headquarters in Provo, UT.

The company debuted the product to its “top sales leaders” at conventions in North America, Japan, Europe and the Pacific. As part of the pre-launch of the product, distributors in the US, Canada and Japan had the opportunity to purchase ageLOC Vitality in September 2010. “The key source of youthful vitality is found in mitochondria, which are most highly concentrated in the brain, heart and muscle,” said Dr. Joseph Chang, Ph.D., Nu Skin chief scientific officer and executive vice president of product development. “As we age, the efficiency and number of our mitochondria decline. Nu Skin’s ageLOC approach targets genes related to mitochondrial function and vitality to promote a more youthful expression pattern.” This year, Nu Skin purchased its existing corporate headquarters buildings and distribution center in Provo, UT for approximately $33 million in January 2011. “From a financial perspective, we expect that the purchase of these buildings will have a positive impact on our earnings,” said Ritch Wood, Nu Skin chief financial officer.“We borrowed some of the funds, taking advantage of current favorable borrowing rates. We anticipate this transaction will add approximately $0.02 per share annually to our bottom line from 2011 forward.” Nu Skin is purchasing the buildings from two partnerships that are owned primarily by some of the company’s founding stockholders, including Blake M. Roney, Steven J. Lund and Sandra N. Tillotson, who are currently serving as directors and executive or senior officers of the company. The company then unveiled proposed architectural renderings of its new $80 million innovation center following the Provo, UT City Council’s approval of the company’s plan to purchase one block of 100 West Street—a necessary step in Nu Skin’s plans to connect the expansion project to its corporate high rise, according to the company. Nu Skin anticipates completion by the end of 2013. Nu Skin executives expect innovative products to boost sales 57% to $1.60-1.63 billion this year. “In 2011, we will continue to fuel the ageLOC momentum by 100 • happi

introducing our scientifically advanced nutritional products to our already successful skin care lineup,” Hunt said.“The Nu Skin ageLOC anti-aging platform represents a clear competitive advantage and provides plenty of room for sustainable growth in both the mid-to long-term.” In late April 2011, Nu Skin received official notification from the Chinese Ministry of Commerce that it can commence direct selling activities in four additional provinces and one municipality in mainland China. The provinces include Zhejiang, Guizhou, Sichuan, Shandong and the municipality of Tianjin. This is the fourth round of licenses granted to Nu Skin in China and adds to existing approvals in Beijing, Shanghai and Guangdong. The company also planned to commence operations in Argentina in late June.

BLYTH

21.

Greenwich, CT 203.661.1926 www.blyth.com Sales: $900 million

Sales: $900 million. Net income: $25 million for the year ended Jan. 31, 2011.

Key Personnel: Robert B. Goergen, chairman and chief executive officer; Robert H. Barghaus, vice president and chief financial officer; Anne M. Butler, vice president and president, PartyLite Worldwide; Robert B. Goergen Jr., vice president and president, Multichannel Group; Jane F. Casey, vice president, treasurer; Joseph T. Cirillo, vice president, reporting & planning; Michael S. Novins, vice president and general counsel; Tyler P. Schuessler, vice president, organizational development and investor relations.

Major Products: Home fragrances including PartyLite, Easy Comforts, Colonial Candle and Sterno. Personal care brands include As We Change, Easy Comforts, ViSalus Sciences and Walter Drake.

Comments: Corporate sales continue to slide at Blyth. Last year, sales dropped 6% and have fallen more than $300 million since 2007. The decrease in the most recently concluded fiscal year is a result of lower sales in PartyLite’s North American business as well as the impact of weaker European currencies versus the US dollar. This decrease was partially offset by an increase in sales in Blyth’s wholesale segment. International sales represented 45% of total sales. Taking a closer look at the results, PartyLite’s sales fell 25%, which Blyth

happi.com

July 2011

The Top 50

blamed on continued weakness in consumer discretionary spending and a decline in active independent sales consultants. Blyth’s decline mirrors the declining popularity of candles, which peaked in the middle of the past decade, but have been declining for several years. According to Kline, candles’ share of the $3.3 billion home fragrance market has declined from 50% in 2000 to about 43% in 2010. Last year, Blyth was the No. 5 player in the candle category, trailing such well known candle makers as Yankee Candle and SC Johnson. For the first quarter ended April 30, 2011, sales rose ever so slightly from $185.3 million to $185.5 million. “We had a difficult first quarter driven by lower PartyLite sales versus last year as our core consumer was negatively impacted by rising gasoline and food prices,”said Robert B. Goergen, chairman and CEO.“These increased expenses have a direct impact on consumer discretionary spending and make it increasingly challenging for PartyLite consultants and leaders to book and hold shows. “Moreover, higher commodity prices, increasing Asian-sourced product costs and higher ocean freight expense versus last year have also impacted Blyth’s costs which resulted in disappointing first quarter profits,” he added. Blyth posted a first quarter loss of $5 million, compared to a loss of $2 million the previous year. In May, Blyth completed the sale of Midwest-CBK, its premium wholesale seasonal decorations and home decor business, to MVP Group International, a manufacturer of private label candles and home fragrance products.

TUPPERWARE

22.

Orlando, FL 407.826.5050 www.tupperwarebrands.com Sales: $737 million

Sales: $737 million for cosmetics. Corporate sales: $2.3 billion. Net income: $300 million for the year ended Dec. 26, 2010.

Key Personnel: Rick Goings, chairman and chief executive officer; Simon Hemus, president and chief operating officer; Robert Wagner, vice president and chief technology officer; Timothy Kulhanek, vice president, internal audit and enterprise risk management; Michael Poteshman, executive vice president and chief financial officer; Edward Davis III, vice president and treasurer; Thomas Roehik, executive vice president, chief legal officer and secretary; Jose Timmerman, executive vice president, supply chain, worldwide; William Wright, senior vice president, global product marketing.

July 2011

•

Major Products: Beauty and personal care products including Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo and Swissgarde.

New Products: BeautiControl Tropical Getaway (limited edition), BeautiControl Extreme Blue for Men, BeautiControl Tinted Lip Balm SPF 20, Nutrimetics Anti-Wrinkle Retinol Serum, Nutrimetics Bright & Beautiful Serum.

Comments: Tupperware, founded by Earl Tupper back in 1946, is celebrating its 65th anniversary this year. For the full year, corporate sales stayed almost flat at $2.3 billion. However, beauty care sales slipped 5%. Net income was $300 million for the year ended Dec. 26, 2010. Group sales grew 6% in local currency, with the beauty brand segments up 6% in local currency, the company said. Beauty North America’s sales were $406.0 million and “Beauty Other” recorded sales of $331.0 million. In early 2011, Tupperware Brands’ chairman and CEO Rick Goings was named a Knight in the French Legion of Honor. He was awarded this honor by Marie-France de Chabaneix, président d’honneur of Nutrimetics, France at a ceremony held in Paris at the residence of Charles H. Rivkin, US Ambassador to France and Monaco. French President Nicolas Sarkozy has extended the distinction of Knight to Goings for his service to and support of women and disadvantaged children. Initiated by Napoleon Bonaparte in 1802, the Legion of Honor is the highest award presented to non-French citizens in recognition of military, cultural, scientific, or social contributions to France. “It is truly an honor to receive the distinction of Knight,” said Goings. “For nearly 20 years, I have been committed to Tupperware’s vision to enlightening, educating, and empowering women by offering a path defined not only by monetary gain, but by the desire to improve her quality of life and that of those around her. We provide her with the foundation she needs to build a better life.” More honors went Goings way in May, when he was elected chairman of Business Executives for National Security (BENS), a non-partisan organization that supports the US government by applying pro bono best business practice solutions to its most intractable national security challenges. Goings has been a BENS member since 2002 and a member of the Executive Committee since 2009. He was recently part of a joint delegation between BENS and the US Department of Defense Task Force for Business and Stability Operations (TFBSO) that visited Iraq to learn more about local businesswomen, the challenges they face in Iraq’s fast-growing economy, and the potential business and investment opportunities in the country. The delegation was the

happi.com

happi • 101

• The Top 50

first of its kind to visit Iraq solely for the purpose of studying women’s issues. “I’m honored to expand my role at BENS and work even more closely with the board and membership to apply best practices from Corporate America against the national security challenges we face today, both here and abroad,” said Goings.

YANKEE CANDLE

23.

Deerfield, MA 800.839.6038 www.yankeecandle.com Sales: $734 million

Sales: $734 million. Net income: $41 million for the year ended, Jan. 1, 2011.

Key Personnel: Harlan M. Kent, president and chief executive officer; Gregory W. Hunt, executive vice president, finance and chief financial officer; Craig W. Rydin, executive chairman; Stephen Farley, president, retail division; Arthur F. Rubeck, senior vice president, supply chain; Martha S. LaCroix, executive vice president, chief human resources officer; James A. Perley, executive vice president, general counsel; Michael Thorne, president wholesale division; Hope Margala Klein, senior vice president, brand, marketing and innovation; John Fontana, president, international division.

Major Products: Yankee Candle fragrance brands—Housewarmer, Home Classics, Simply Home and Aroma Therapy Spa which all include an assortment of candles, home fragrance and small space solutions; Yankee Candle needs-based brands—Good Air and Conceal; candle accessories and candle care products.

New Products: Candles—QuickScent Candle, The Perfect Pillar, Seasonal Trend Collections—Spoon Full of Sugar, Blue Ribbon, Patriotic, Beach Side and Wine Collections; Home Fragrance—Mini Reed Diffuser and Scented Floral Diffuser; Small Space—Car Vent Sticks, Car Jar Ultimate and Antibacterial Soap. Key fragrance introductions included Pink Sands, Fluffy Towels, White Christmas, Kitchen Spice and the Boney Bunch Halloween Fragrance Collection.

Comments: Personnel changes and an international retail expansion topped the list of buzzworthy bites from Yankee Candle this year. The company hired John Fontana as new president, international division and promoted Hope Margala Klein to senior vice president, brand, market102 • happi

ing and innovation and Deborah Norris to general merchandise manager. It is also opening its first retail store in Canada this month. In September 2010, The Yankee Candle Company, Inc. named Trudy Sullivan to its board of directors. She is the president and chief executive officer of The Talbots, Inc., a leading specialty retail and direct marketer of women’s apparel, shoes and accessories in the United States and Canada. “We are extremely pleased that Trudy is joining our board,”said Kent. “As the CEO of a highly regarded retailer like Talbots, Trudy brings to our board a proven track record of successful hands-on leadership in the highly competitive retail industry. In addition to her executive and leadership skills, Trudy’s extensive merchandising and consumer direct experience, as well as her demonstrated record of success in both the retail and wholesale fields, should prove helpful as we work together to continue to grow our business and extend the Yankee Candle brand.” The company posted favorable financial results for the third quarter ended Oct. 2, 2010. Sales jumped 4.1% to $175.8 million. Sales in the company’s wholesale business increased 3.7% to $96.2 million, while retail sales rose 4.7% to $79.6 million. For the nine months ended Oct. 2, 2010, retail sales increased 7.8% to $225 million, driven primarily by an increase in new stores opened after the third quarter of 2009 and an increase in comparable store sales, said the company. Wholesale sales increased 9.6% to $217.1 million. To kick off the new year, Yankee Candle revealed that John Fontana joined the company as president of the international division and Hope Margala Klein was promoted to senior vice president, brand design and innovation. Fontana brings significant experience in the candle industry, as well as success in developing consumer growth strategies, and setting up effective international business platforms. Most recently, he served as the chief executive officer of Smith Mountain Industries, a mid-sized candle company. Prior to that, Fontana served as the chief executive officer for Hot Stuff Foods and was managing director Pink Sands is a new bestseller for Yankee Candle.

happi.com

July 2011

• The Top 50

for Allied Capital’s International & Portfolio Development. He has also held senior positions at Electrolux, LLC, Frito Lay and Deloitte and Touche. Margala Klein has played several important leadership roles at Yankee Candle, most recently serving as wholesale vice president of marketing and merchandising, with a prior role as retail general merchandise manager. Most of her earlier career was spent at Limited Brands where she held positions as vice president, category leader for the Bath and Body Works division, and vice president, group product director for the Victoria’s Secret’s beauty division. Norris brings significant experience to her new position having held several key retail leadership positions at Yankee Candle since she joined the company in 2001. In her new role, Norris is now responsible for the company’s retail planning and allocation, category management, visual merchandising, store marketing and promotions, as well as the company’s consumer direct business. Previously, she was vice president of consumer direct, fundraising and outlet businesses. “Deb and Hope have provided tremendous leadership to our organization and I have every confidence that these new roles and responsibilities will further optimize our performance and align our

104 • happi

offerings in a manner that continues our industry leadership in product assortment, variety, quality and innovation,”commented Kent. Yankee Candle also announced two additional appointments to key senior management positions. Ben Menezes was named vice president, wholesale finance and operations, after previously holding a similar position in the company’s retail division. Steve Richardson was named as vice president, retail finance and fundraising, after holding a similar position in the wholesale division. In March, the company posted its fourth quarter and full year results ended Jan. 1, 2011. Sales for the fourth quarter of 2010 jumped 6% to $291.6 million. Wholesale business sales climbed 10.6% to $90.3 million, while retail sales rose 4.6% to $201.3 million. For the year ended Jan. 1, 2011, total company sales increased by 7.7% to $733.7 million. Retail sales jumped 6.2% to $426.3 million and wholesale volume rose 9.9% to $307.4 million. The company generated net income of $41.9 million for fiscal 2010 compared to net income of $16.4 million for the prior year. “We finished 2010 with a solid fourth quarter performance, delivering revenue growth in both of our business units and adjusted EBITDA growth versus the prior year,” said Kent. “Despite a consumer environment that remained very challenging throughout the year, we were able to generate strong revenue and bottom line growth. The results delivered by our business units, together with supply chain productivity, disciplined cost control and strong working capital management, enabled us to generate strong cash flows and pay down our debt well ahead of schedule.” Kent continued, “While we do not necessarily believe that the consumer economy is completely out of the woods, and while the current turmoil in the Middle East and its impacts make near term visibility difficult, we are nonetheless generally optimistic about 2011 overall and believe that we are well positioned for growth in both revenue and earnings versus 2010.” Q1 sales rose 2.2% to $144.1 million for both wholesale and retail. Wholesale business jumped 3.1% to $69.3 million, while retail sales increased 1.5% to $74.8 million. According to Kent, the company expected a difficult beginning to the year, due in large part to factors such as wax and freight inflation and investments that the company is making in various growth initiatives that will begin to benefit Yankee Candle in the second half of the year. “Our results in the first quarter were consistent with these expectations,” he added.

happi.com

July 2011

The Top 50

JOHN PAUL MITCHELL SYSTEMS

24.

Beverly Hills, CA 800.793.8790 www.paulmitchell.com Sales: $590 million

Sales: $590 million (estimated).

Key Personnel: John Paul DeJoria, chief executive officer; Luke Jacobellis, president.

Major Products: Professional hair care products including Paul Mitchell, Awapuhi Wild Ginger, Tea Tree, Modern Elixirs, Paul Mitchell Professional Hair Color and Paul Mitchell Pro Tools.

New Products: Awapuhi Wild Ginger Collection.

July 2011

•

Comments: John Paul Mitchell (JPMS) products—known as Paul Awapuhi Wild Ginger Mitchell—are sold through Hydromist Blow-Out its 25 distributors to 100,000 Spray is new at US hair salons and to salons JPMS. in more than 80 countries around the world. Its latest launch is the Awapuhi Wild Ginger Collection, which was 30 years in the making and has become one of the brand’s core product lines. It utilizes Paul Mitchell’s signature ingredient, Hawaiian Awapuhi, and an exclusive keratin blend, KeraTriplex—the only complex available that is virtually identical to the protein found in human hair to repair hair, eliminating years of damage, according to the company. The collection launched with an in-salon treatment and seven at-home products in September. JPMS also launched two additional styling products in late spring—Awapuhi Wild Ginger HydroCream Whip and Awapuhi Wild Ginger HydroMist Blow-Out Spray.

happi.com

happi • 105

• The Top 50

ment, medicine, academia, advocacy and industry to initiate dialogue and capture vision around the best ways to educate the public in today’s evolving sun care environment. Four critical themes emerged from the symposium: • Create information to prompt behavior change. Whitehouse Station, NJ • Help educate the public on navigating expected sunscreen la908.298.4000 beling and product performance rules. www.merck.com • Separate myth from reality (inconsistent messages in the media Sales: $580 million about topics such as tanning, vitamin D, sunscreen ingredients and good sun protection habits). Sales: • Tailor education efforts to resonate with generational and cul$580 million for foot and sun care products. Corporate sales: $46 tural needs. billion. Net income: $982 million. Prompted by the symposium’s call to action, the Coppertone Solar Research Center created a checklist to “RAISE” public awareKey Personnel: ness. The move came prior to the Food and Drug Administration’s Kenneth C. Frazier, chairman, president and chief executive officer; Bridgette P. Heller, executive vice president and president, consumer release of the final rules for sunscreen labeling (see p. 46). The RAISE health care; Peter Kellogg, executive vice president and chief finan- elements include: • Rating UVA Protection—New UVA information will likely be cial officer; Peter Kim, executive vice president and president, Merck required on sunscreen labels in addition to SPF. Research Laboratories. • Anti-Aging—Products with SPF may be further limited in making claims related to premature skin aging. Major Products: • Ingredients—New active ingredients or active ingredient Sun care—Coppertone and Solarcaine; Skin care—A+D Ointcombinations could be approved. ment; Foot care—Lotrimin, Tinactin and Dr. Scholl’s. • SPF Cap: SPF values may be capped. • Expression of Claims: Claims language on sunscreen labels New Products: could change, according to Coppertone. Coppertone Oil Free Foaming Sunscreen Lotion SPF 75+, CopSales of suntan lotion and oil jumped more than 10% last year pertone Sport Lotion SPF 100+, Coppertone Tanning Lotion SPF 15, Coppertone Water Babies Sunscreen Foaming Lotion to $685.2 million, according to data from SymphonyIRI Group. CopSPF 75+, Coppertone Water Babies Pure & Simple Lotion SPF pertone is among the leading brands with a variety of new rollouts 50, Coppertone Tanning Lotion SPF 15; Dr. Scholl’s For Her Jelly this season especially. New products include the Coppertone Oil Free Foaming SunSoak Therapy. screen Lotion SPF 75+ and Water Babies Sunscreen Foaming Lotion SPF 75+. Comments: “We’ve done something innovative by creating two new Merck acquired Schering-Plough in early 2009 for $41 foams,” explained Patricia Agin, a fellow at Coppertone’s billion, and the innovators at Coppertone are working to Solar Research Center, told HAPPI.“There is a continuing prove that their brand should remain in the mix. Global sales of consumer care products were $1.3 billion during trend to create products that have a convenience feature 2010 reflecting strong performance of a number of key to them.” brands including Dr. Scholl’s and Coppertone, accordAccording to Agin, the foams offer an alternative to coning to Merck’s 2010 annual report. Consumer care prodsumers who don’t want to use alcohol-based sprays or uct sales were $149 million for the post-merger period traditional lotions which can be more difficult to rub in in 2009. compared to foams. In December 2010, Merck announced that its board “We experimented with emulsion systems and came up had elected Kenneth C. Frazier, then Merck’s president, with one that works well, is compatible with sunscreen as chief executive officer and president, as well as a ingredients and has a delightful feel,”she explained. member of the board, effective Jan. 1, 2011. Frazier sucOther rollouts include Coppertone Sport High Perceeds Richard T. Clark, who will continue to serve as formance Sunscreen Lotion SPF 100, formulated for active chairman. adults, and Water Babies Pure & Simple Sunscreen LoThe Coppertone Solar Research Center has pubtion SPF 50 that provides tear-free, broad-spectrum sun lished key insights from its Suncare 2020 Sympoprotection in a 2oz. size that Coppertone maintains is sium held in New York City last summer. The event ideal for the diaper bag. The formula is oil- and fraNew Foaming Lotion convened selected thought leaders from governgrance-free and is said to be extremely gentle to babies’ Coppertone Oil Free.

MERCK

25.

106 • happi

happi.com

July 2011

• The Top 50

delicate skin and eyes. Dr. Scholl’s latest innovation for summer is Dr. Scholl’s For Her Jelly Soak Therapy, a lavender-scented soothing treatment for tired feet.

26.

ZEP

Atlanta, GA 877.428.9937 www.zepinc.com Sales: $568 million

Sales: $568 million. Net income: $13 million for the year ended Aug. 31, 2010.

Key Personnel: John K. Morgan, chairman, president and chief executive officer; Mark R. Bachmann, executive vice president and chief financial officer; Robert P. Collins, vice president and chief administrative officer; Jeffrey J. Sorensen, vice president and chief marketing officer; Philip A. Theodore, vice president, general counsel and corporate secretary; Jeffrey L. Fleck, vice president and chief supply chain officer.

Major Products: Industrial and institutional cleaners. Brands include: Zep, Zep Commercial, Zep Professional, Enforcer, National Chemical and Selig; Misty, i-Chem, Next Dimension (acquisition), TimeMist, TimeWick, MicrobeMax, CountryVet and Niagara National.

New Products: Zep Biofilm Drain Purge, Zep Peroxy-Serve, Zep ProVisions Foodservice Cleaning Line (range extension).

Comment: Zep had a lot of zip this year. For the year ended Aug. 31, 2010, sales jumped 13.5% to $568 million, while net income rose 5% to more than $13 million. Fiscal 2010 was a pivotal year for Zep. It marked the completion of a three-year makeover of the company. According to John K. Morgan, chairman, president and chief executive officer,“In virtually every way possible, our hard-working associates have transformed our business into a far more efficient, more focused and more forward-looking company. “In the face of a challenging economic environment, our associates were able to increase the value we provide to our customers, expand our access to market, improve our profit margins, and acquire and integrate businesses while generating significant cash flow,” he added. More specifically, Zep: 108 • happi

• Significantly broadened its go-to-market strategy, expanded the retail sales channel and network of distributors, and invested in acquisitive growth. Simultaneously, Zep added experienced sales reps using a new recruitment model designed to yield a faster return on investment and provided new price optimization tools that will further empower its sales reps. • Completed three acquisitions, Amrep, Waterbury Companies and Niagara National. Each of these companies contributed to a broadened product line, provided access to additional markets, as well as increased top line growth and overall profitability, according to the company. • Was strengthened financially. Since becoming a publicly traded company and prior to the acquisitions, it reduced debt by 53%, and, during the past two years, reduced the breakeven point of its legacy business by nearly 30%. • Became more efficient by trimming its product line by more than 4,000 SKUs, which affected only 1% of sales, consolidated North American distribution network from 41 to 17 strategicallylocated facilities and reduced the non-sales headcount by more than 28%. • Decentralized business to push decisions closer to the customers. In retail, Zep Commercial and private-branded product lines with both existing and new customers announced new relationships with Advanced Auto Parts and AutoZone while also launching its refreshed Enforcer brand. Zep also acquired Niagara National of Atlanta, GA, a manufacturer in automatic truck wash systems and products, for an undisclosed price. This acquisition is expected to be accretive to earnings during fiscal 2011. Ron Kirschner, president of Niagara, and the majority of its employees will remain with the company. The Niagara brand of custom truck wash, pressure washers, water recovery systems and maintenance chemicals is expected to bulk up Zep’s transportation product portfolio. Morgan addressed the company’s trio of acquisitions in the last nine months.“The first was Amrep, which was immediately accretive to earnings, expands our access to the retail and distributor channels, and provides significant private label capabilities. We recently completed our acquisition of certain brands and assets of Waterbury Companies, which we expect will enhance Amrep’s leading position as a provider of air care delivery systems and products for facilities maintenance. Our third acquisition, while much smaller than the first two, included the assets of Niagara National and complements our strength in our vehicle wash business, specifically in the high quality truck and fleet washing equipment markets.” In February 2011, Zep Inc. unveiled a new corporate logo that celebrates decades of Zep brand leadership while providing an updated look for the future direction of the company. For the six months ended Feb. 28, 2011, Zep’s sales jumped nearly 20% to more than $304 million. Net income rose more than

happi.com

July 2011

The Top 50

10% to $7 million. In April, Zep renewed and expanded its contract to provide maintenance products to the US federal government. GSA Schedule 73, under Zep Sales & Service, will continue for five additional years. The renewed schedule covers a broad range of cleaning and maintenance products. Zep Sales & Service offers more than 100 GreenLink products as part of this Schedule and has added the ProVisions line of dishwashing detergents, food service cleaners and sanitizers.

27.

JAFRA

Westlake Village, CA 805.449.3000 www.jafra.com Sales: $521 million

Sales: $521 million

Key Personnel: Friedrich Kroos, president and chief executive officer; Janice Jackson, senior vice president and chief marketing officer; Mari Loli Sanchez Cano, president, Jafra Mexico; Connie Tang, president, Jafra USA; Dr. Pragna Chakravarti, chief scientific officer.

Major Products: Navigo Fragrance for Men 100ml, JF9 Cologne for Men 100ml, Legend for Men 100ml, Eau D'Aromes (for women) 100ml, Double Nature Cool 50ml, Royal Jelly 100ml and 200ml and Face Protector SPF 40 50ml.

New Products: Fragrance—Draumur, Zoogar, Skid Rock, Pastel Morat and Homem Do Mar; Makeup—Jafra Color Line; Skin Care—Ultra Nourishing Gold Gel, Anti-Fatigue products, Tender Moments “Beeutiful” Body Lotion with Royal Jelly.

Comments: It’s been a busy year, with an international scope, for Jafra. From donations to Vietnam villages to tapping a rising Bollywood star as a spokesperson, this company is aiming to take on the world. Late last summer, Jafra donated a portion of its product sales, totaling more than $100,000, to help SOS Children’s Villages construct a new village in Vietnam. The donation is part of a larger gift to the SOS Children’s Villages that was made by Jafra’s parent company, the Vorwerk Group. The new SOS village is located in Quy Nhon, Vietnam and will open later this year. Providing round-theclock, family-style care in 14 houses, the village will accommodate up to 140 children. Like all SOS Villages, the village structures will July 2011

•

be built with sound ecological principles—using solar power, for example, to provide lighting and hot water. In October, Jafra enhanced its online brand presence at www.jafra.com with phase two of its website redesign, including a refreshed portal for the U.S. regional market and new personal websites for Jafra consultants. According to the company, this new phase features a fully updated design with clean, contemporary images—seamlessly integrating with the look and feel of Jafra’s global corporate website hub, which debuted in February 2010. A completely revamped US portal, in both English and Spanish, Zoogar is the newest youth fine frarepresents a template for eight grance from Jafra. additional regional portals that are slated to roll out during the next year, starting with Mexico. These regional portals are designed with the same Jafra brand imagery; however, each portal will offer that region’s most frequently spoken languages as well as information tailored specifically to highlight the products, programs, news and the business opportunity for that particular region. Phase two of the website also introduces a substantially enhanced feature—personal websites for Jafra consultants. Designed for easy customization, these personal websites feature a consultant’s personal story along with pictures, images, beauty tips, promotions, product details and event information. “Visitors to the Jafra website will most certainly enjoy an enriched online experience,” said Connie Tang, president, Jafra U.S. “Equally important, our consultants now have new interactive marketing tools to help them flourish in today’s marketplace, which allows them more freedom and alternate ways to promote and manage their business.” Also in October, Jafra Ruchi Cosmetics India, the joint venture between the Ruchi Group and the parent company of Jafra Cosmetics International, Vorwerk Group, started operations in New Delhi, India. Located in Connaught Place, the business is offering 53 Jafra products including the flagship Royal Jelly line and Jafra Dynamics lines as well as skin brightening and fragrance products selected specifically for the India market. “We are confident that India will quickly become a leading growth market for Jafra’s worldwide portfolio. Our unique and competitive partnership with Ruchi has allowed us to fast track our market entry into India and will provide the foundation for success. Most importantly, the Jafra business opportunity will provide powerful income earning opportunities for many people in India who are looking for the chance to transform their lives,” said Jafra

happi.com

happi • 109

• The Top 50

president and chief executive officer Dr. Friedrich Kroos. In November, Jafra Ruchi Cosmetics India kicked off its launch there with a “Bollywood/Hollywood Spectacle” at the Kingdom of Dreams in New Delhi. The company introduced former Miss Universe and women empowerment advocate Sushmita Sen as its brand ambassador. “I strongly believe and work towards women’s empowerment and Jafra’s brand philosophy speaks the same. This is one strong reason I opted to endorse a brand like Jafra. It is a brand which offers a wide range of skin care products but also provides a great opportunity for income and personal development to all its consultants,” said Sen. In April 2011, Jafra Cosmetics International launched its new makeup artist-inspired color line in seven countries including Italy, Mexico, Russia, Germany, Switzerland, the Dominican Republic and the U.S., with a launch in Brazil planned for August. The collection features sleek packaging, state-of-the-art formulations and global shades for a wide range of skin tones, according to the company. The new formulations offer perceivable benefits through nature’s best ingredients in combination with Jafra’s competencies in skin care, according to the company. For instance, infused with botanicals and vitamins C and E, the Full Coverage Lipstick combines brilliant color, a velvety finish, and long-wear for eight hours. The new Lash Maximizing Mascara dramatically volumizes, lengthens and curls with a patented cotton extract and vitamins B5 and E. Other products include 11 new triple-milled eyeshadow trios, three new blush shades, and 11 new nail lacquer shades. Specifically for darker complexions, the line features a cream concealer in one new shade and SPF 10 makeup in three new shades. The jewel of the deeper skin tone assortment is the Dark Imperfection Corrector, a moisturizing concealer that corrects discoloration and hyper-pigmentation.

28.

ENERGIZER HOLDINGS

St. Louis, MO 314.985.2000 www.energizerholdings.com Sales: $460 million

Sales: $460 million (estimated) for skin care, sun care and shave preparations. Corporate sales: $4.2 billion. Net income: $403 million, for the year ended Sept. 30, 2010.

Key Personnel: Ward M. Klein, chief executive officer; David P. Hatfield, president and chief executive officer, Energizer Personal Care; Daniel J. 112 • happi

Sescleifer, executive vice president and chief financial officer; Gayle G. Stratmann, vice president and general counsel; Peter J. Conrad, vice president, human resources.

Major Products: Sun Care—Banana Boat and Hawaiian Tropic; Towelettes—Playtex and Wet Ones; Skin Care—Edge and Skintimate shave preparations, American Safety Razor brands (acquisition).

New Products: Banana Boat SPF110 UltraMist Sunscreen Continuous Clear Sprays, Hawaiian Tropic Shimmer Effect Lotion SPF20 and SPF 40, Banana Boat Kids Tear-Free Sting Free UltraMist Sunscreen Continuous Lotion Spray SPF30 and SPF50, Banana Boat Kid and Baby Tear-Free Sting Free Lotion SPF50, Schick Hydro.

Comments: Corporate sales for the year ended September 30, 2010 increased 8% to $4.2 billion. Net income on the year jumped 35% to $403 million. Skin care sales increased 3% on higher shipments of Hawaiian Tropic, and lower end of season sun care returns partially offset by lower shipments of Wet Ones as fiscal 2010 volumes returned to more normalized demand post H1N1 consumption peaks. Last year, Energizer was honored by The Skin Cancer Foundation for its dedication to public education about sun protection at The Skin Cancer Foundation’s Annual Skin Sense Award Gala. Shimmer Effect is new from “We are honored to receive Hawaiian Tropic. this award and are proud to be recognized as a leader in sun protection within the sun care industry,” said Al Robertson, general manager and chief marketing officer of Energizer Personal Care. “We’re committed to our partnership with The Skin Cancer Foundation and look forward to our continued work together to provide consumers with unsurpassed education on sun care to help protect their family’s skin.” The Banana Boat and Hawaiian Tropic brands have both carried the Foundation’s Seal of Recommendation for almost two decades. Additionally, Banana Boat has underwritten the second year of the Foundation’s children’s education program, The Sensational Guide to Sun Safety: Fun in the Sun 101. Robertson accepted the award on behalf of Energizer Personal Care at The Skin Cancer Foundation’s Annual Skin Sense Award Gala held at The Pierre in New York City. “Energizer Personal Care has been a long-standing partner and they are committed to helping us educate about the importance of sun protection,”said Perry Robins, MD, president, The Skin Cancer

happi.com

July 2011

The Top 50

Foundation. “We are pleased to recognize them for their exceptional work in the sun care category and steadfast partnership with the Foundation.” Last November, Energizer Holdings, Inc. completed the acquisition of American Safety Razor in a $301 million cash deal, which included the assumption of certain liabilities. American Safety Razor (ASR), based in Cedar Knolls, NJ, is the leader in private label blades, according to industry sources. Its roster also includes Personna and Comfort Touch brands, among many others. The firm entered into Chapter 11 last August. For the six months ended March 31, 2011, Energizer’s corporate sales rose nearly 5% to $2.2 billion. “Our year of investment continues as planned,” said Ward Klein, chief executive officer. “We are taking appropriate actions to right size our household products division production platform, fund the expansion of our global wet shave business, and execute various international market and new product initiatives. We believe these investments and other initiatives will serve as the foundation for establishing earnings momentum in 2012 and beyond.” According to the company, its restructuring project, announced in the fourth quarter of fiscal 2010, remains on track as it expects to incur approximately $75 to $85 million in restructuring costs, with the vast majority in fiscal 2011, and generate annual savings of approximately $25 to $35 million, by the end of fiscal 2012. Looking forward, Energizer expects the incremental impact of the Schick Hydro launch will drive a mid- to high-single digit growth in personal care net sales for the remaining six months of fiscal 2011. The company will also “anniversary” the Schick Hydro launch during the third fiscal quarter. This Spring, Banana Boat teamed up with The Skin Cancer Foundation to raise funds for skin cancer education initiatives by challenging 101,000 consumers to get “Sun Certified” this year. Each consumer who takes a short “Sun Certification” quiz on www.facebook.com/BananaBoatBrand will receive a “Sun Certified” badge to display on their own Facebook wall and trigger a $1 donation to support The Skin Cancer Foundation’s sun education initiatives, for a total donation of up to $101,000. The Banana Boat “Sun Certification” program is part of a Sun 101 sun education campaign designed to give Americans the basic information they need to enjoy the sun without worry. This sun season, the brand is sharing advice from and hosting live conversations on its Facebook page with sun experts, including: two-time Olympic Gold Medalist and U.S. Women’s Soccer Team captain Christie Rampone, dermatologist Julie K. Karen and family lifestyle expert and magazine editor Amy E. Goodman. “We are on a mission to inspire more people to use more sunscreen more often,”said Beth St. Raymond, director, Energizer Personal Care Sun Care, maker of Banana Boat. “An estimated 62% of American households don’t use sun care products, and by working with partners like The Skin Cancer Foundation, we hope to change that to ultimately reduce the incidence of skin cancer.” Leading new products for Summer 2011 from Energizer PerJuly 2011

•

sonal Care include “Sting-Free” variations of Banana Boat’s TearFree Kid and Baby Products as well as Hawaiian Tropic’s Shimmer Effect products made with mica minerals.

28.

INTER PARFUMS

New York, NY 212.983.2640 www.interparfumsinc.com Sales: $460 million

Sales: $460 million. Net income: $26.6 million.

Key Personnel: Jean Madar, chief executive officer and chairman of the board of directors, Inter Parfums, Inc.; Philippe Benacin, president and vice chairman of the board of directors, Inter Parfums, Inc., chief executive officer, Inter Parfums, SA; Russell Greenberg, executive vice president, and chief financial officer, Inter Parfums, Inc.; Henry B. Clarke, president, Inter Parfums USA, LLC, specialty retail division; Philippe Santi, executive vice president, director general delegue, Inter Parfums, SA; Hugues de la Chevasnerie, president of Burberry Fragrances, Inter Parfums, SA; Frédéric Garcia-Pelayo, director of export sales, Inter Parfums, SA; Axel Marot, director of production & logistics, Inter Parfums, SA.

Major Products: Prestige fragrances sold under the following brands: Burberry (also cosmetics), Van Cleef & Arpels, Jimmy Choo, Paul Smith, Montblanc, S.T. Dupont, Lanvin and Boucheron. Fragrance and personal care products for specialty retailers including Gap, Banana Republic, New York & Company, Brooks Brothers, bebe, Betsey Johnson, Nine West and Lane Bryant.

New Products: Burberry Sport Ice, Lanvin Marry Me!, Van Cleef & Arpels Midnight in Paris, S.T. Dupont Miss Dupont, Jimmy Choo signature fragrance, Montblanc Legend, Gap Near, Brooks Brothers Miss Madison, Banana Republic Wildbloom, bebe Sheer, Anthropologie Happ & Stahns and Le Labo collection, Lane Bryant Caciquebody.

Comments: Inter Parfums has bounced back from the recession in a big way; net sales for the year ended Dec. 31, 2010 rose 12.4% to just over $460 million. Net income rose nearly 19% to a record $26.6 million. “The economic rebound coupled with several major new product launches produced meaningful sales growth across all major prestige brands and in all geographic regions in 2010. For our USbased operations, 2010 sales growth was also spurred by the eco-

happi.com

happi • 113

• The Top 50

nomic recovery as well as new product launches and greater international distribution of the specialty retail brands for which we develop, produce and sell product,” noted Russell Greenberg, executive vice president and chief financial officer at the release of the firm’s year-end results. And so far, the good times have kept on going in 2011—net sales for the first quarter ended March 31 increased 11.7% to $133.4 million. During the quarter, European-based operations generated sales of $121.6 million, up 12.3%, and sales by US-based operations were up 6.5% to $11.8 million. According to Inter Parfums, the Q1 sales growth in Europe was primarily due to the Jan. 1, 2011 commencement of prestige product distribution in the US by InterParfums Luxury Brands. A US company that operates as a subsidiary of Inter Parfums Inc.’s French subsidiary Inter Parfums SA, InterParfums Luxury Brands is now leading the development and distribution of Burberry (fragrances and cosmetics), Lanvin, Montblanc and Jimmy Choo brands in the US. The creation of the unit in 2010 ended an agreement between Inter Parfums SA and P&G Prestige covering the US for Burberry and Lanvin fragrances. Inter Parfums has always been keen on tapping high-profile fashion brands with big potential in fragrance, but even company officials were caught off guard by the response to the Jimmy Choo alliance. According to the company, the selective launch of the Jimmy Choo signature fragrance surpassed company expectations and the level of reorders, even in its limited distribution, which Madar said, “even surprised us.” Broader distribution of the scent commenced this spring, and as such, the firm has increased production for the year, Madar added. And fashion-cum-fragrance fans are on the look out for the new Burberry scent for women, due out later this year. Madar has called it Inter Parfums’ “largest product launch of the year.” A big launch should keep this fragrance powerhouse on target for another year of growth. At the release of Q1 results, Greenberg said the company was “on track to achieve our recently increased 2011 guidance which calls for sales of approximately $550 million.”

MARKWINS

30.

City of Industry, CA 909.595.8898 www.markwins.com Sales: $450 million

Sales: $450 million (estimated).

Key Personnel: Eric Sung-Tsei Chen, chief executive officer; Bill George, president; Martin Toh, general manager; Eric Weeks, vice president, sales; Brian 114 • happi

Talbot, vice president, marketing and chief marketing officer.

Major Products: Cosmetics brands including Wet n Wild, Black Radiance, Tropez, The Color Institute, The Color Workshop, The Spa Workshop, Disney’s Princess, High School Musical, ck Calvin Klein Beauty. Bestsellers include Color Icon Brow & Eye Pencil, Color Icon Lipliner, Color Icon Eyeshadow, Wild Shine Nail Color, Silk Finish Lipstick, MegaSlicks Lip Gloss, MegaLength Mascara.

New Products: Fast Dry Nail Color, MegaLash Clinical Serum, MegaLash Clinical Mascara, MegaLast Retractable Eyeliner, Color Icon Shimmer Pencil, Glassy Gloss Lip Gel, Color Icon Eyeshadow Trio (shade extension), Color Icon Brow & Eye Liner (shade extension).

Comments: Markwins Beauty Products, Inc. is a wholly owned subsidiary of Markwins International Corporation. Based in City of Industry, CA, Markwins Beauty is a purveyor of leading brands Wet n Wild, Black Radiance and Fantasy Makers. Markwins Beauty Products is poised to enjoy its most successful year in the brand’s 30 year history, according to company executives. According to recent AC Nielsen figures (April 16, 2011), Wet n Wild is the fastest growing brand in the Top 10 food, drug, mass brands. Similarly, Black Radiance is the leading growth brand within its category, ethnic color cosmetics. Together, these stalwart brands are fueling exceptional sales growth with retailers around the world. The company’s success can be tied to three key strategic investments: personnel, alliance micro marketing and technology. The company has been quietly adding talent at home and abroad to organize for the next wave of expansion. Key additions include executive level placements in sales and marketing, research and development, trade marketing, supply chain management and regulatory affairs. The addition of this top-tier talent is manifested in superior new product development with speed-to-market and near-perfect fill rate. New sales and marThe Wet ‘n’ Wild Color Icon trio.

happi.com

July 2011

The Top 50

keting leadership teams have allowed the company to enhance strategic alliances with many retail partners that are delivering exceptional sales results. Since the New Year, Wet n Wild has consistently ranked No. 1 or No. 2 in retail sales growth, both units and dollars, among the top 10 cosmetic brands. Company officials say these gains are made strictly through the consumer’s acceptance of new products and improved promotional events, and not as a result of new distribution. In fact, Wet n Wild maintains its remarkable growth rate, despite lacking full FDM channel distribution. The thrust of the company’s retail success is demonstrated in speed-to-market of new cosmetic technologies. Two examples of the brand’s success are found in Wet n Wild’s new Fast Dry Nail Color in 18 glamorous shades, as well as a proprietary formulation of lashgrowth serum and mascara (MegaLash Clinical Serum & Mascara). Markwins knows its mass marketplace. In October 2010, the company tapped Michael Cole as its Walmart team leader. Cole is responsible for both divisions at Walmart; Markwins Beauty Products, featuring the Wet n Wild and Black Radiance brands; and Markwins International, featuring The Color Workshop, ACT and Barbie. Cole joined Markwins directly from Johnson & Johnson. As director of strategic planning there, he led the teams responsible for product innovation, new item development and consumer insights for all FDM retail customers. Prior to Johnson & Johnson, Cole was a senior buyer at Walmart Stores Inc. for multiple key categories including OTC, household cleaning and sporting goods. He was also instrumental in launching Walmart International and Walmart.com. The company is also taking a global approach to its personnel moves. In March 2011, Markwins International appointed Jason Chen as sales manager for Latin America. In this role, he will be responsible for sales in Central America, Caribbean and the Andine countries: Colombia,Venezuela, Ecuador and Peru. According to the company, Chen has been an integral part of Markwins International for over seven years, of which the last six were spent in their Shenzhen factory. His responsibilities there included serving as a vital link between Latin America and the production teams. “I am confident that with Jason’s operational experience, teamed with his skills and drive, he will be a great asset to the team that is currently expanding our business throughout Latin America,” said Shawn Haynes, senior vice president of sales for Markwins International. Chen will be based in the City of Industry, CA office and will report to Katia May, who has been promoted to director of sales and business development for Latin America. In 2010, May single-handedly ran the entire territory and exceeded her sales budget by 14.6%, said the company. “With Jason joining Katia on this team, we are confident that Markwins International will achieve another year of double digit sales increases in Latin America,”said Haynes. According to the company, it has recently made capital investments to enhance its SPF product portfolio. In the weeks and months ahead, Markwins Beauty will expand its offering of cosmetic July 2011

•

formulas and innovations with UV protection. It also just awarded some teens via Wet n Wild Cares, a nationwide charity program to support proms at select high schools. The charity effort provided 10 locations with $1,000 to make their prom dreams a reality along with $1,000 worth of makeup.

31.

SHAKLEE CORPORATION

Pleasanton, CA 925.924.2000 www.shaklee.com Sales: $350 million

Sales: $350 million for household, personal care and nutritional products.

Key Personnel: Roger Barnett, chairman and chief executive officer; Dr. Jamie McManus, chairman of medical affairs, health sciences and education.

Major Products: Basic-H² and Scour-Off home care, Enfuselle skin care, Minerelles makeup, Shakleebaby personal care, ProSanté hair care.

New Products: Enfuselle Nutrition Therapy Skin Care System, ProSanté Nourishing Scalp Treatment.

Comments: Established in 1956 by Dr. Forrest C. Shaklee, Shaklee has been a leading multi-level marketer of natural nutrition, household and personal care products. In 2000, Shaklee became the first company in the world to be Climate Neutral certified to totally offset its CO2 emissions, resulting in a net zero impact on the environment. With a robust product portfolio, including more than 50 patents and patents-pending items worldwide, Shaklee has more than 750,000 members and distributors worldwide and operates in the US, Mexico, Canada, Japan, Malaysia, Taiwan, and soon, in China. At its annual conference in Anaheim, CA last summer, Shaklee revealed that it surpassed $5 billion in commissions paid to its more than 1.2 million Shaklee Family Members worldwide. “Shaklee’s mission is to create the best natural health products and market them through a business model that gives people the opportunity to achieve the dream of owning their own business and controlling their financial future,” said CEO Roger Barnett. “This commission milestone is a tribute to the tens of thousands of distributors around the world who have found success in their own independent business with Shaklee.” The company also kicked off a new Car Incentive Program which

happi.com

happi • 115

• The Top 50

will allow distributors to qualify for car bonuses that can be used to pay for a lease or purchase of a brand new automobile, with extra incentives for those who lease or purchase hybrid vehicles. “Shaklee’s new rewards and compensation program perfectly aligns with our values by creating new opportunities for distributors to grow their business with tangible lifestyle and financial incentives,” said Barnett. “This program will also allow our distributors to touch more people and share the Shaklee opportunity of doing well by doing good. That's a powerful thing.” Also last summer, researchers at the University of Tennessee, Knoxville and Shaklee Corporation partnered to study the impact of a unique blend of resveratrol and muscadine polyphenols found in Shaklee Vivix Cellular Anti-Aging dietary supplement, on human muscle cell mitochondria, the intra-cellular power plants that generate cellular energy. With this research, Dr. Jamie McManus, chairman of medical affairs, health sciences and education at Shaklee, and Dr. Michael Zemel of the University of Tennessee sought to determine the impact of this unique polyphenol blend on key biological processes related to cellular energy production and aging. “One of the key mechanisms of aging is a decline in mitochondrial mass as well as the effectiveness of the mitochondria,” said Dr. McManus.“In our research, we’re trying to validate the impact of Vivix polyphenols on mitochondrial biogenesis-shorthand for how the number and size of mitochondria help create cellular energy and boost metabolism. We’re excited to share our research goals with the medical community and create a baseline for future studies on polyphenols and cellular energy metabolism.” The 2011 Shaklee Global Conference is set for Aug. 10-14 in Washington, DC. Guest speaker will be Aron Ralston, whose survival story in 2003 made headlines around the world. After being pinned by a half-ton boulder for nearly a week in a remote threefoot-wide slot canyon in southern Utah, Ralston narrowly escaped death by severing his right forearm with a dull pocketknife. After applying a tourniquet, he hiked and rappelled for five hours through Blue John Canyon before searchers rescued him.

32.

CHATTEM

tis; Greg Irace, president and CEO, Sanofi-Aventis US; and Zan Guerry; chief executive officer of Chattem Inc.; Robert E. Bosworth, president, chief operating officer, Chattem Inc.

Major Products: Medicated skin care—Gold Bond, Cortizone 10, Aspercreme, Arthritis Hot, Sportscreme, Capzasin; Skin care—Balmex; Oral care—Act mouthwash; Hair care—Selsun Blue, Sun-In, Ultra Swim; Sun care—BullFrog, UltraSwim.

Comments: Sanofi Aventis has completed the acquisition of Chattem, Inc., pulling its well-known personal care brands like Gold Bond, Balmex and BullFrog—as well as Allegra (the main thrust behind the French drug company’s purchase of Chattem in the first place)—into its consumer healthcare business. In 2010, that business sector tallied sales of $2.2 billion. Since the acquisition date, Chattem generated net sales of €328 million and business net income of €110 million, according to the company’s annual report of the year ended Dec. 31, 2010. Late last year, Chattem opened a new manufacturing facility on Broad Street in Chattanooga, which Chattem’s CEO Zan Guerry, said “was completed on time and within budget and created numerous new jobs” for the local community. The facility reportedly manufactures Chattem’s Act mouthwash brand. Still, Chattem’s focus for 2011 seems to be on Allegra, as this past spring the company completed the biggest launch in its history—the OTC rollout of the well-known allergy medication.

PRESTIGE BRANDS

32.

Irvington, NY Tel: 914-524-6800 www.prestigebrands.com Sales: $336 million

Sales:

A SANOFI COMPANY

Chattanooga, TN 800.366.6077 www.chattem.com Sales: $336 million

$336 million. Net income: $29 million for the year ended March 31, 2011.

Key Personnel:

$336 million (estimated) for personal care products. Corporate sales: $40.3 billion.

Matthew M. Mannelly, president and chief executive officer; Ron Lombardi, chief financial officer; Timothy J. Connors, chief marketing officer; Eric S. Klee, secretary and general counsel; John Parkinson, senior vice president, international; Jean Boyko, senior vice president, science and technology; Paul Hennessey, vice president, operations.

Key Personnel:

Major Products:

Christopher A. Viehbacher, chief executive officer of Sanofi-Aven-

OTC remedies and oral and skin care products including brands

Sales:

116 • happi

happi.com

July 2011

The Top 50

such as Compound W, Cloverine Salve, Dermoplast Sprays, Efferdent denture cleaner and adhesive, Ezo denture products, Freezone corn and callus remover, Kerodex, New-Skin liquid bandage and scar fade, Outgro, Oxipor Psoriasis Lotion and Wartner wart products. Household care products include Comet, Cinch and Spic and Span cleaners and Chore Boy scrubbing pads.

Fast Fact: Spic and Span Sun Fresh and Citrus Fresh dilutable cleaners are recognized by the US Environmental Protection Agency's Design for the Environment (DfE) program. Comments: Venerable brand names in medicated skin care (Compound W, Cloverline) and home care (Spic and Span and Comet) are part of Prestige Brands’ stable, but it is OTC healthcare that drives the firm. This Irvington, NY-based company has been expanding its OTC healthcare roster via acquisitions, which in turn has helped propel revenues by more than 15% this past year. According to the company, revenues for the fiscal year ended March 31, 2011 topped $336 million, with OTC healthcare unit accounting for the majority of the company’s revenues for the year. Revenues from the household side of Prestige Brands’ business came in at nearly $102 million. One of its new healthcare pick-ups, Dramamine, accounted for a large percentage of that 15% growth. Organic revenues for the company grew 1.7% during the current year over the prior year, according to Prestige Brands, which saw its income from continuing operations for fiscal 2011 fall 9.0% to was $29.2 million. In 2010, prestige completed the integration of Blacksmith Brands, including Efferdent and Effergrip denture products. “(It) has been an extremely productive and transformative year for Prestige Brands,” said Matthew M. Mannelly, president and CEO. While OTC healthcare is growing for Prestige, household care isn’t faring as well. Revenues for the household cleaning segment for the fourth fiscal quarter fell 8.1% as Comet, Spic and Span and Chore Boy continued to face negative category consumption trends and competitive pressures at retail, the company said. On the personnel front, Ron Lombardi was named CFO in late 2010 when Pete Anderson retired, and in March 2011, Paul A. Hennessey came over from Pfizer Consumer Healthcare to serve as vice July 2011

•

president, operations. While at Pfizer, Hennessey spent 18 years in supply chain and manufacturing operations in positions of increasing responsibility.

WD-40

34.

San Diego, CA 888.324.7596 www.wd40company.com Sales: $321 million

Sales: $321 million. Net income: $36 million, for the year ended Aug. 31, 2010.

Key Personnel: Neal E. Schmale, chairman; Garry O. Ridge, president and chief executive officer; Jay Rembolt, chief financial officer, treasurer and vice president, finance; Michael J. Irwin, executive vice president, strategic development; Graham P. Milner, executive vice president, global development and chief branding officer; Geoffrey J. Holdsworth, managing director–Asia Pacific; William B. Noble, managing director—Europe, Middle East & Africa; Michael L. Freeman, division president, The Americas; Tim Lesmeister, vice president of US marketing.

Major Products: Maintenance, home care and cleaning products sold under brands including WD-40, 3-In-One Oil, Blue Works, X-14, 2000 Flushes, Carpet Fresh, No Vac, Spot Shot, 1001, Lava and Solvol.

Comments: WD-40 Company’s net sales rose 10% from its last fiscal year, marking a record year for this San Diego, CA-based firm. “This past year was the best in our company history and, while the gradual stabilization of the global economy has helped, our

happi.com

WD-40 Fan Club: A Decade in the “Fixing”

T

WD-40 Fan Club is celebrating its 10th anniversary this year, and for fans of the brand who share how they use the product, WD-40 will send them a WD-40 “Now & Then” twin pack to help commemorate the milestone. The pack includes an 8oz. WD-40 Collector’s Can that pays homage to the one used in the 1950s and an 8oz WD-40 Smart Straw can. Today, the WD-40 Fan Club boasts more than 100,000 members, who receive weekly tips via e-mail and can view exclusive online content, comment on photos and videos and access special offers and promotions HE

happi • 117

• The Top 50

success is primarily due to our tribe members’ unwavering focus and exceptional execution of our key strategic initiatives,” said Garry Ridge, WD-40 Company president and CEO. “We were able to accomplish what was on our to do list, and that included a focus on both geographic expansion of our core brands and maximizing our position with multi-purpose maintenance products.” Sales of multi-purpose maintenance products, which include WD-40, 3-In-One and Blue Works brands, were $258.1 million for the full year, up 15%. WD-40’s home care and cleaning product sales, which includes the remainder of its portfolio, totaled $63.4 million for the period, a decline of 5% from the previous fiscal year. According to the company, the decrease came from several factors—lost distribution and discontinuance of certain product offerings among them—which primarily occurred in the prior fiscal year, but continued to negatively impact sales of these products in fiscal year 2010. In its annual report, the company wrote: “Although our focus has shifted to our multi-purpose maintenance products, we were still able to either stabilize or increase the sales of certain of our home care and cleaning products in fiscal year 2010 by pursuing our niche markets or expanding our distribution channels.” By region, WD-40’s America’s segment year-to-date sales were up 7% while Europe segment sales for the year were up 13% year-to-date from the prior fiscal year. Asia/Pacific segment sales were up 20%. While the spotlight may be off of its home cleaning products, WD-40’s Spot Shot brand is still looking to woo customers. As such, the brand is nearing the end of its “Living Room Makeover” sweepstakes. The grand prize is $5,000. In addition to the big prize, Spot Shot is giving away free product coupons and signed autographs from soap star Austin Peck to one entrant each week during the sweepstakes period.

35.

Comments: The company that Ivan D. Combe founded in 1949 is evolving, as it shed several brands during the past year. In January it completed the sale of its cough and cold and skin care businesses—including brands such as Cepacol, Lanacane, Scalpicin, LiceMD, and Hemoal brands—to Reckitt Benckiser Inc., and found a new home for Odor-Eaters at Blistex. At the time of the disposal, chairman and CEO Christopher B. Combe, said,“We are very proud of our divested businesses and are excited about the future of these brands. More importantly, these divestitures enable us to increase our company-wide focus on our largest global brands. Our retained brands have strong growth opportunities around the world supported by positive demographic shifts, our leadership positions in these categories, and a pipeline of innovative and potentially game-changing new products.” Brands left in the fold include some of Combe’s most-well known grooming products like Just For Men, AquaVelva, Grecian 5 and Lectric Shave, as well as Sea-Bond denture adhesive and Johnson’s Foot Soap.

36.

AMERICAN INTL. INDUSTRIES (AII)

Los Angeles, CA 323.728.2999 www.aiibeauty.com Sales: $200 million

Sales:

COMBE INC.

$200 million (estimated).

Key Personnel:

White Plains, NY 800.873.7400 www.combe.com Sales: $250 million

Zvi Ryzman, chief executive officer; Terri Cooper, senior executive vice president.

Major Products:

Sales: $250 million (estimated).

Key Personnel: Christopher B. Combe, chairman and chief executive officer; Doug McGraime, president and chief operating officer

Major Products: Hair Care— Just for Men, Grecian 5, Just Five, Just 5 for women. Oral care—Sea-Bond denture care. Men’s grooming—Aqua Velva, Bryl118 • happi

creem, Lectric Shave, The company also sells feminine hygiene products under the Vagisil banner.

Ardell EyeLashes, GiGi Hair Removal and China Glaze Nail Polish. Other product lines include 5 Second Nail, Andrea Eyelashes, Body Drench Skin Care and Tanning, clean +easy Hair Removal, DUO Adhesive, EzFlow Nail Systems, IBD Nail, Poshé Nail Care, Seche Nail Care, Surgi-Care Hair Removal and Woody’s Men’s Grooming.

New Products: China Glaze Crackle polishes and seasonal collections including Anchors Away, Island Escape and Metals, Seche Perfect Nail system, GiGi Super Fruit Waxes, ibd Just Gel, EzFlow Pure Gel.

happi.com

July 2011

The Top 50

•

Comments: Founded in 1971 by Zvi Ryzman, American International Industries (AII) reached a milestone birthday this year—its 40th. Today it boasts 800 employees worldwide, and is among the leading manufacturers and global distributors of innovative, beauty and skin care products for men and women. In fact, the privately-held Los Angeles-based firm sells products in 180 countries and manufactures 61,000,000 beauty products a year. The company continues to grow through acquisitions and most recently brought under its brand umbrella two additional nail brands, Poshé, from Almell Products, and It’s So Easy, a line of nail art accessories, products and tools. This summer, AII’s popular China Glaze brand is rolling out six new Crackle Glaze Polishes in sparkling metallics. The China Glaze Crackle Glaze Metals collection features six sparkling metallic colors including Tarnished Gold, Platinum Pieces, Haute Metal, Cracked Medallion, Latticed Lilac and Oxidized Aqua.

PHILOSOPHY

36.

Phoenix, AZ 602.794.8500 www.philosophy.com Sales: $200 million

losophy jars and bottles can inspire better days. “Philosophy is one of the beauty industry’s most prestigious brands and a fantastic addition to the Coty family,” said Bernd Beetz, chief executive officer of Coty Inc.“This acquisition will allow Coty to strengthen its presence in the skin care category, which is one of our key strategic objectives.” Recently, Philosophy linked up with CafePress to offer customized bath and body gifts. The CafePress design tool will allow Philosophy customers to customize the packaging on three of Philosophy's signature shower gel scents: Amazing Grace, Pure Grace and Falling in Love.

38.

Sales: $200 million (estimated).

Key Personnel: Cristina Carlino, founder; Kenneth T. Stevens, chief executive officer.

Major Products: Skin care, personal care and related products.

SEVENTH GENERATION

Burlington, VT 802.658.3773 www.seventhgeneration.com Sales: $150 million

Sales:

New Products:

$150 million (estimated).

Hope in a Tinted Moisturizer, Divine Illumination color collection.

Comments: This is the last year that Philosophy will make our Top 50 list, as the company was sold to Coty late last year. Founded in 1996 by Cristina Carlino, Philosophy has grown into a $200 million firm selling skin care and related beauty notions including fragrances and bath and body products. The firm, which was acquired by The Carlyle Group in March 2007, has since been sold to Coty in a deal that has been rumored at $1 billion. Not too shabby for a brand that sells products in simple packaging, but with ever-so catchy names like Hope in a Jar and Miracle Worker (skin care SKUs) and Amazing Grace (fragrance). In fact, Philosophy, as a company, believes that what is“in”Philosophy jars and bottles can give you better skin. What is“on”PhiJuly 2011

Holiday greetings from Philosophy.

Key Personnel: Peter Graham, chairman; John Replogle, chief executive officer and president.

Major Products: Cleaning, baby and personal care products; also paper products.

New Products: Natural 4X laundry detergent in a fiber bottle, Natural Hand Wash, Free & Clear Dishwasher Gel.

Comments: In March, John Replogle, who had been CEO of Burt’s Bees, left the hive to take over the reigns at Seventh Generation. He replaced

happi.com

happi • 119

• The Top 50

Chuck Maniscalco, who resigned in September 2010 after joining the company in 2009 to replace company founder Jeffrey Hollender at the top post—and help grow the firm to a $1 billion dollar operation. Hollender, who had moved to the role of executive chairperson when Maniscalco was hired, was forced out just two months after Maniscalco quit. Yet even with all the turmoil, it appears that Seventh Generation has not lost sight of its core values. In fact, just last month the Burlington, VT-based company was named the greenest brand in America by the annual ImagePower Global Green Brands Survey. In the survey, which included 9,000 respondents in eight countries measuring perceptions and sentiments of green actions by industries, products and brands, Seventh Generation topped a number of eco-minded firms, including Whole Foods, Tom’s of Maine, Burt’s Bees, and SC Johnson, (for the full list, see Newsfront p. 15 in this issue). The most recent proof of its passion for being green comes via a packaging innovation unveiled this year: a new liquid laundry detergent bottle made from 100% percent recycled cardboard and newspaper. It features a fully-recyclable and even compostable outer shell made from 70% recycled cardboard fibers and 30% old newspaper fibers that supports a recyclable lightweight plastic pouch inside. It uses 66% less plastic than typical 100 ounce 2X detergent bottles. In addition, the company is also focused on what’s inside the detergent bottle—or more accurately, what isn’t inside. In December 2010, Seventh Generation rolled out a marketing campaign to highlight the fact that its detergents are optical brightener-free. It created a special microsite themed “Just Say No To the Glow” and sent out samples of laundry detergent, video cameras and black lights to bloggers so they could post videos of demonstrations of laundry washed in Seventh Generation’s detergent and other“conventional” detergents that left behind residue from the brighteners. About 24 of them posted their videos, according to reports.

Major Products: Automotive appearance products sold under the Turtle Wax brand name, as well as Ice and F21. 


New Products: Turtle Wax Fresh Shine Scented Protectants with Odor Eliminator.

Comments: Turtle Wax has built its empire on making cars look their best. This spring, the firm rolled out Turtle Wax Fresh Shine Scented Protectants with Odor Eliminator, which cleans, shines, protects and deodorizes all non-porous automotive interior, plastic, vinyl, leather and rubber surfaces, and leaves a long-lasting scent behind, sans the residue. Its state-of-the-art formula includes UV absorbers that prevent fading, drying and cracking of interior plastics and rubber while shine-enhancing polymers restore the glossy new look of the interior plastic. There are four scents in the range—Outdoor Fresh, New Car, Berry Blast and Caribbean Coconut.

40.

PHOENIX BRANDS

Stamford, CT 203.975.0319 www.phoenixbrands.com Sales: $140 million

Sales: $140 million (estimated).

Key Personnel: Mark Landry, chief executive officer and president.

Major Products: Detergents—Fab, Dynamo, Ajax, ABC, Arctic Power (Canada). Laundry aids—Rit dye, Niagara spray starch, Final Touch Fabric Softener, Sunguard.

TURTLE WAX

39.

Willowbrook, IL 630.455.3700 Website: www.turtlewax.com Sales: $147 million

Need an Expert’s Opinion? Then be sure to visit our website, Happi.com! Each week, we deliver insightful views from some of the in-

Sales: $147 million (estimated)

dustry’s leading executives on a variety of topics. Of

Key Personnel:

course, Happi.com is loaded with exclusive articles,

Denis John Healy Jr., chairman and chief executive officer; Sondra Healy, co-chairman; Tom Healy, vice president of global sales and marketing; and Mike Schultz, senior vice president of R&D.

breaking news and a search engine that makes fact

120 • happi

happi.com

gathering easier than ever. Visit Happi.com today!

July 2011

The Top 50

Comments: Phoenix Brands has a new home as Trilantic Capital Partners sold the home care products maker to Lincolnshire Management at the start of the year. Phoenix Brands sells well-known brands such as Dynamo laundry detergent, Niagara spray starch and Rit dye. The latter has its own website with a project guide and a collection of bloggers who post ways they use the dye to change the color of everything from their shoes to their bedding.

HYDROXATONE

41.

cluding the Daytime Emmys, Sports Emmys and Creative Emmys. Hydroxatone sponsored the 2011 CEW Beauty Awards and was featured in many red carpet gift bags. Charitable causes sponsored by Hydroxatone during the past year have included the Special Olympics, Dress For Success, Hudson County Science Fair, North American Police Ski Championships and many others.

42.

Akron, OH 330.255.6000 www.gojo.com Sales: $135 million

Jersey City, NJ 201.942.3400 www.atlanticcoastmedia.com Sales: $139 million

•

GOJO INDUSTRIES

Sales: $135 million (estimated).

Sales:

Key Personnel:

$139 million.

Joe Kanfer, chairman and chief executive officer.

Key Personnel: Thomas Shipley and Andrew Surwilo, co-founders and chief executive officers; Holli Westby, vice president of retail sales; Andy Siegel, chief marketing officer.

Major Products: Skin health and hygiene solutions for I&I settings. Brands include Gojo, Provon and Purell.

Major Products:

Comments:

Hydroxatone AM/PM Anti-Wrinkle Complex, Hydrolyze Advanced Under Eye Formula.

Gojo, a privately-held company based in Akron, OH, sports offices in the UK, France, Japan and Brazil. Throughout its 64-year history, the brand has focused squarely on skin/hand health and hygiene— and it essentially created the hand sanitizer product category with Purell, which rolled out in 1988. In 2004, Gojo sold the Purell brand to Warner-Lambert Company (although Gojo continued to market Purell in the I&I market). But last year, Purell returned home as Gojo reacquired the brand in October, purchasing it from its new owners, Johnson & Johnson Consumer Products, which picked up the hand sanitizer in its 2006 Warner-Lambert acquisition. Under the Purell banner is a Green Certified version, which is made with 100% naturally renewable plant-derived ethanol in a readily biodegradable formula. This year, the USDA chose Purell Green Certified Instant Hand Sanitizer Foam as a featured prod-

New Products: Lashatone, Pore Minimizer, Intensive Youth Serum, Sunsoak AgeDefying Self Tanner, Intensive Anti-Wrinkle Complex, New/Improved Hydrolyze Advanced Under Eye Formula, Facial Exfoliating Pads, Spot Seeker, 90 Second Wrinkle Reducer.

Comments: In the past year, there has been enormous expansion at Atlantic Coast Media Group, maker of Hydroxatone. Seven new products were launched. The organization’s headcount rose from 276 to 411. New hires have included a new chief financial officer and three newly-created vice-president positions. Hydroxatone debuted on the HSN television network in February 2011 and will be launching in Macy’s Summer 2011. “February’s debut far exceeded our expectations, and we are thrilled by the response Hydroxatone received from HSN viewers, said Andrew Surwilo, chief executive officer of Hydroxatone. “We look forward to introducing more people to Hydroxatone during its next appearance on HSN.” Hydroxatone is also the official skin care partner of the National Academy of Television Arts & Sciences for its News and Documentary Emmys, as well as for all upcoming 2011 NATAS events inJuly 2011

happi.com

Gojo Gets in the Fast Lane

G

linked up with Hanna Motorsports, signing a sponsorship agreement in which it will be represented on Hanna Motorsports’ exhibition jet car teams. The primary car in the deal is the “First Strike” Firebird, driven by Rich Hanna, which is now known as the “Gojo Firebird.” The Firebird is the current ‘World Speed and ET Record Holder’ in the Jet Funny Car category. OJO RECENTLY

happi • 121

• The Top 50

uct for the formal launch of its new BioPreferred Label Program.

Key Personnel: Jane Wurwand and Ray Wurwand, founders; Jerald J. Wenker, president and chief operating officer; Diana Howard, vice president, technical development; Annet King, director of training and development, the International Dermal Institute.

HERBALIFE

43.

Major Products:

Los Angeles, CA 310.410.9600 www.herbalife.com Sales: $127 million

Skin care products and treatments.

New Products:

Sales:

Ultra calming relief masque, serum concentrate and mist; Clean Start teen skin care line

$127 million for personal care products. Corporate sales: $2.7 billion.

Comments:

Key Personnel: Michael O. Johnson, chairman and chief executive officer; Brett R. Chapman, general counsel; Des Walsh, president; Richard P. Goudis, chief operating officer; John DeSimone, chief financial officer; Paolo Giacomoni, vice president, worldwide outer nutrition.

Major Products: Personal care products marketed under brand names such as Skin Activator, Herbal Aloe and NouriFusion.

Comments: Herbalife’s “outer nutrition” business, which tallied sales of more than $127 million in 2010, represented 4.7% of Herbalife’s total corporate sales for the year, down from 5.5% in 2009. While sales for the unit have been sliding as a percentage of its overall product mix (outer nutrition represented 6.2% of total sales in 2008), the company recently announced a key new hire to lead this business—Paolo Giacomoni, who had been at Estée Lauder for 13 years, most recently as executive director of research. As Herbalife’s new vice president, worldwide outer nutrition, he will be responsible for the development of innovative solutions for global skin and hair care needs, according to the firm. Giacomoni, who also spent 13 years at L’Oréal, joined Herbalife in May.

DERMALOGICA

44.

Carson, CA 310.900.4000 www.dermalogica.com Sales: $125 million

Sales: $125 million (estimated).

122 • happi

Founder Jane Wurwand is a major role model for women in business, and she’s taken on another project to inspire more females to follow in her footsteps—FITE. This new global empowerment platform powered by her firm and Kiva.org, a nonprofit microfinancer, fosters financial independence for women entrepreneurs by providing access to small loans that will help them start or grow a business. In just two years, FITE aims to help at least 25,000 women in this capacity, and to that end, consumers can buy FITE-sleeved Dermalogica products and use a code inside to activate a donation from the company to fund a business. Wurwand recently completed a tour of South Africa to share Dermalogica’s message of skin health with professionals and to drum up support for FITE through interviews with popular personalities in South African media. The team traveled to KwaZulu Natal to meet the first recipients of FITE loans. In other news, The Step Up Women’s Network, a national nonprofit membership organization dedicated to connecting and advancing women and girls, recently honored Dermalogica at its eighth annual Inspiration Awards event, which was held at the Beverly Hilton on June 10. While Wurwand works hard to empower women and make their skin glow, Dermalogica gets noticed by guys too. In fact, its Concealing Spot Treatment took home top honors in the Men’s Health 2011 Grooming Awards.

PARLUX FRAGRANCES, INC.

45.

Fort Lauderdale, FL 954.316.9008 www.parlux.com Sales: $123 million

Sales: $123 million. Net income: $1.2 million, for the year ended March 31, 2011.

happi.com

July 2011

The Top 50

Key Personnel: Frederick E. Purches, chairman and chief executive officer; Frank A. Buttacavoli, executive vice president/chief operating officer; Raymond J. Balsys, chief financial officer; Kathleen Galvin, vice president, marketing and advertising; Hedy Reb’l Fleur by Rihanna, a Abromovitz, vice new scent from Parlux. president, operations; Craig Ahlheim, vice president, US sales; Lesbia Röner-Hansen, vice president, international sales.

Major Products: Fragrances including 12 scents for women and men marketed under the Paris Hilton umbrella; four scents comprising the “Fancy” collection by Jessica Simpson; Ecko scents for men—Marc Ecko Original and Blue and Ecko Unltd.; two Queen Latifah fragrances, plus eponymous specialty lines for Josie Natori and Nicole Miller.

New Products:

•

video has generated millions of viewings, as well as sales, according to company officials. In addition, Parlux will launch a men’s fragrance under its license with rapper Kanye West in the spring of 2012. This summer, Parlux will launch its first women’s fragrance under its agreement with Vince Camuto, a renowned women’s shoe and accessories designer. Fred Purches, chairman and chief executive officer of Parlux, stated that he was “looking forward to an exciting year of growth” at the company.

SPARTAN

46.

CHEMICAL COMPANY

Maumee, OH 419.531.5551 Website: www.spartanchemical.com Sales: $118 million

Sales: $118 million.

Key Personnel: Stephen H. Swigart, president and chairman of the board; John Swigart, executive vice president; Greg Ford, vice president of sales.

Major Products:

Reb’l Fleur by Rihanna, Marc Ecko Blue, I Fancy You by Jessica Simpson, The Passport Collection by Paris Hilton. In addition, the first women’s scent from American designer Vince Camuto is planned for this summer and in 2012, there will be launches of men’s fragrances for both Kanye West and Vince Camuto.

Chemical specialty maintenance products including a complete line of environmentally preferable products; bio-based products; products for disinfecting and sanitizing, hard floor care, carpet care, restroom care; hand cleaners; deodorants. Brands include Green Solutions, Clean by Peroxy, Biorenewables, Consume and Clothesline Fresh.

Comments:

New Products:

Sales for the year ended March 31, 2011 were $123 million, down from the company’s prior year’s performance of $148.1 million, which included net sales of $43.0 million from Guess? brand products, which are no longer sold by the company. Excluding Guess?, continuing brand sales increased by 16%, according to Parlux. And when combined with significant cost control measures, the company was able to report a profit compared to significant losses in the previous two years. Net profits for the year ended March 31, 2011 were $1.2 million compared to a loss in the prior year of $14.8 million. With Guess? out of the mix, Parlux is tuning up its musical connections, rolling out its first fragrance under its license with superstar entertainer Rihanna. The firm utilized a high-profile social media campaign which featured an interactive viral video featuring the artist as “a rebel and a flower,” enticing the viewer to choose between viewing Rihanna as a good girl or bad girl. The

Clothesline Fresh Detergent EP 18 and Clothesline Fresh Softener EP, both of which are DfE labeled.

July 2011

Comments: Spartan Chemical Company celebrated its 55th anniversary on May 10. Founded by E.T. Swigart, Jr., its top leadership remains all in the family as Stephen H. Swigart is the firm’s president and chairman and John Swigart is executive vice president. This I&I company employs more than 250 and has approximately 550 selectively appointed distributors located throughout the US. According to Spartan, the firm’s physical plant continues to evolve, with recent additions pushing it up to more than 577,000 sq.ft. of manufacturing facilities on a 133-acre site. And this year, Spartan will break ground on another expansion project, this one expected to add an additional 100,000 square feet. Spartan has rolled out two new environmentally preferred

happi.com

happi • 123

• The Top 50

laundry products—Clothesline Fresh Detergent EP 18 and Clothesline Fresh Softener EP 19. In addition, Spartan added the DfE label to Clothesline Fresh No Dye-No Fragrance Laundry Detergent 13. All three of these environmentally preferred laundry products are available in a case of four gallons, five-gallon pails, 15-gallon drums and 55-gallon drums. Spartan says it is focused on continuing a leadership role within the sustainability movement too, making advancements in sustainable products, and adjustments in operations to reduce its carbon footprint. In 2010, several energy improvements were implemented, including a lighting retrofit with occupancy sensors, a new air compressor system and a new tank wash water heater.

OBAGI

47.

Long Beach, CA 562.628.1007 www.obagi.com Sales: $112 million

women were not at all familiar with the ingredient and 58% of surveyed women say they struggle to find skin care products that meet their needs, suggesting an opportunity to further educate consumers about available treatments. Furthermore, even when they have found products they are willing to purchase less than half of those polled (47%) said their current regimen meets their expectations, despite the fact that most of the women (52%) spent more than $100 on skin care products in the last year. Obagi also uncovered a lack of concern over one of the most common causes of discoloration: sun exposure. Most of the women surveyed claim to wear a sunscreen with an SPF rating of at least 15 every day; however 16% of those who don’t wear sunscreen believe it’s not important for skin of color. “Obagi Medical commissioned this poll to help us better understand the needs and concerns of our consumers,” Jim Hartman, VP-global marketing and business development said.“The results indicate to us that we have an opportunity and obligation to educate women about the treatments that are available for many of the skin conditions noted; and that partnering with a physician is critical in achieving desired results.”

METHOD

Key Personnel:

48.

Albert F. Hummel, president and chief executive officer; Preston S. Romm, chief financial officer; James P. Hartman, vice president, global marketing and business development; David S. Goldstein, executive vice president, global sales and field marketing; Laura B. Hunter, vice president, general counsel and secretary.

Sales:

Sales: $112 million. Net income: $9.5 million.

$110 million (estimated).

Major Products: Dermatologist-based skin care systems including Nu-Derm, Professional-C, Elastiderm, Condition and Enhance, Clenziderm and Rosaclear.

Comments: Sales rose more than 8% last year, but net income dropped nearly 16%. The company blamed the decline in profit to selling, general and administrative expense. Women of color have unresolved skin challenges, according to the results of consumer poll released by Obagi last month. The company surveyed more than 1,000 women within the wide range of “skin of color.”The results indicated that regardless if a woman is of African-American, Hispanic, Asian or Middle Eastern descent, one thing holds true: she most likely has unresolved skin challenges. A prominent concern among women with skin of color is related to pigment. Obagi found that while 47% see a dermatologist for dark spots, uneven skin tone or hyperpigmentation, just 11% of those surveyed women expressed a strong familiarity with hydroquinone. In, fact, 61% of the 124 • happi

San Francisco, CA 415.901.6300 www.methodhome.com Sales: $110 million

Key Personnel: Drew Fraze, chief executive officer; Adam Lowry, co-founder and chief greenskeeper; Eric Ryan, co-founder and chief brand architect.

Major Products: Laundry detergent; home cleaning products including all-purpose cleaning sprays, dish soap, bathroom cleaners, floor cleaners and antibacterial cleaners; and personal care, mainly in form of gel and foaming hand washes.

New Products: All-purpose natural surface cleaners, bathroom cleaning spray and glass + surface cleaning spray, laundry detergent and dish soap refills, antibacterial orange zest spray and wipes, Mickey and Minnie foaming hand wash.

Comments: There clearly has been a method to Adam Lowry’s and Eric

happi.com

July 2011

The Top 50

Ryan’s madness, as Method celebrates it 10th anniversary this year. Company executives maintain that sales rose 20% last year, excluding comparisons to products such as air fresheners, which Method discontinued. During the past decade, consumers have come to love the company for its stylish design as well as its commitment to good-for-you/good-for-the earth principles, packaging and products, like its latest laundry detergent and dish detergent refills. These pouches, according to Method, provide consumers with a more affordable alternative; it offers an 80% savings in plastic, water plus energy production; and has an innovative, space-saving package design with an easy-to-pour handle. Also on the packaging front, Method is partnering with Terracycle to give the spent refill pouches a second life (read more about this in our June issue, Thinking About the Box, p. 97). Product wise, Method has rolled out new all-purpose cleaning sprays, bathroom cleaning spray and glass and surface cleaning spray fueled by “powergreen” technology, which is said to deliver a powerful clean using plant-based solvents and surfactants. The technology comes via Method’s alliance with Segetis, Inc. Levulinic ketals—the cornerstone of what Segetis calls its “Javelin Technology,” are a broad family of bio-based compositions. Enabled by the development of selective ketalization of levulinic acid esters, these compounds have broad solubility enabling their use as cleaning solvents or coupling agents in liquid formulations. In addition, Method now sports a line of botanical household disinfectant sprays and wipes that are registered by the Environmental Protection Agency. On this launch, Method partnered with CleanWell Company, which makes thyme-based disinfecting technology that kills 99.99% household bacteria including E.coli, salmonella enterica, influenza A and H1N1 virus on hard, non-porous surfaces.

MURAD

49.

•

Jeff Murad, vice president, product development; David Pannor, vice president, operations; Marios Stamatelopoulos, vice president, international.

Major Products: Skin care treatment products including best sellers such as HydroDynamic Ultimate Moisture, Clarifying Cleanser and Active Radiance Serum. Murad has an overall focus on “inclusive health” and as such, also sells supplements and operates Murad Inclusive Health Spas. The brand also has a partnership with Massage Envy.

New Products: Anti-Aging Acne (line extension)—formulated to simultaneously treat acne and aging concerns includes Time Release Acne Cleanser, Acne & Wrinkle Reducer, Anti-Aging Moisturizer SPF 20 PA; Hybrids—two-in-one treatment cosmetics includes Eye Lift Perfector, Eye Lift Illuminator, Skin Perfecting Primer Matte Finish, Skin Perfecting Primer Dewy Finish; Clean Scene—youth skin care products including Craving for Clean, Gaga for Glow, Crazy for Clear, Begging for Balance and Down for Defense SPF 15; Hydro Dynamic Ultimate Moisture all-purpose moisturizer; Age Reform Complete Reform with Glyco Firming Complex.

Comments: According to company officials, Murad’s sales rose 11% in 2010, although this privately held firm founded by medical skin care guru Dr. Howard Murad won’t divulge exact numbers. In addition to the impressive growth recorded over the past year, the company said it has retained its position as the top doctor skin care brand at leading beauty retailers Sephora and Ulta. “Two thousand ten was another incredible year for the Murad brand; not only in sales but through line extensions, new consumer sub brand launches, partnerships with leading beauty organizations, and the launch of Dr. Murad’s latest book, ‘The Water Secret,’” said Richard Murad, general manager of Murad, Inc. “With numerous innovative product launches on the horizon, Murad continues to be at the forefront of the skin care and

El Segundo, CA 310.726.3300 Website: www.murad.com Sales: $106 million

Sales: $106 million (estimated).

Key Personnel: Howard Murad, M.D., FAAD, chief executive officer and founder; Richard S. Murad, general manager; Hilarie Murad, general manager, Murad UK; Lori Jacobus, chief marketing officer; Carol Jensen, chief financial officer; Tracey Sameyah, president, Murad Inclusive Health; Pamela de Ryss, executive vice president, sales; July 2011

Hydro-Dynamic Ultimate Moisture from Murad.

happi.com

happi • 125

• The Top 50

beauty industries. We have no doubt that 2011 will mark yet another record setting year in our company history.” Murad has racked up a number of honors from consumer publications. For example, seven products were granted the Good Housekeeping Seal of Approval, including Oil Control Mattifier SPF 15, Anti-Aging Moisturizer SPF 20 PA, Acne & Wrinkle Reducer, Renewing Eye Cream, Hydro-Dynamic Ultimate Moisture, Hybrids Skin Perfecting Primer-Matte Finish and T-Zone Pore Refining Gel. In addition, Shape named Active Radiance Serum the “Best Doctor Brand Serum,” and in Self’s Healthy Beauty Awards, Murad’s Pomegranate Exfoliating Mask was named best mask for 2010. Through its partnership with Massage Envy, Murad opened 300 Murad Clarifying Cleanser new doors, including 20 on US military bases. Product wise, the company recently rolled out three new Hybrids, billed as “a luxurious and opulent blend of quality cosmetics and advanced skin treatment technologies.”Based on the“Science of Cellular Water,” Dr. Murad’s proprietary system for optimizing cellular health and youthful beauty, the new SKUs include Skin Perfecting Primer Acne and Shine Control, Absolute Bronzing Boost SPF 15 | PA and Soothing Skin, Lip and Cuticle Care. “Hybrids is the next generation of advanced Murad skin care products, offering a dual approach to skin care that treats skin concerns while helping to conceal flaws,” noted Jeff Murad, vice president of product development. In June, Murad Inc. formed The Murad Family Foundation to enhance the lives of children, veterans and deserving individuals through health care, education, creative arts appreciation, environmental protection and economic relief. Headed by Hilarie Murad, in its first year, the foundation will continue to support programs like Big Brothers and Big Sisters, the Waner Children's Vascular Anomaly Foundation and the Murad After-School Program located in Redondo Beach, CA. It will also support local schools and provide relief aid for individuals affected by natural disasters globally and encourage environmental protection through support of the Manhattan Beach Roundhouse, Center for Aquatic Education and the Heal the Bay Aquarium. In early 2010, Murad Inc.’s University for Inclusive Health entered into an ongoing partnership with Fashion Institute of Design and Merchandising to develop a new wellness and spa course offered under its Beauty Industry Merchandising & Marketing major. The course was created to help students build a foundational understanding of the role that an 126 • happi

inclusive approach to health can have in their future careers in the beauty, spa and wellness industries.

STATE INDUSTRIAL PRODUCTS

50.

Cleveland, OH 866.747.2229 www.stateindustrial.com Sales: $105 million

Sales: $105 million.

Key Personnel: Hal Uhrman, chief executive officer; Brian Limbert, chief operating officer; Jim Beard, senior vice president, marketing; Eric Kowalewski, vice president, operations.

Major Products: Drain care, air enhancement, water treatment and water management, personal care, floor care, cleaning and disinfection, grounds care, and the Ecolution line of environmentally-preferred Green Seal and Ecologo certified products. Major dispensing systems include the Fragrance Factory Air Enhancement System, the Soap Factory Hand Care System, the 24/7 Automatic Drain Care System, the SuperCool Cooling Water Treatment System, and the 1Solution Dilution System.

Comments: With facilities throughout the US, Canada and Puerto Rico, State Industrial Products has an established reputation as a leading manufacturer and distributor of specialty chemical products, systems and programs for cleaning and maintenance markets. Since 1911, the company has been committed to enhancing building environments, improving equipment productivity and helping customers “care for work environments.” Last July, State Industrial Products divested its UZ Engineered Products division, a transaction that State said represented a unique opportunity“to embolden its growth strategy.“ Coupled with State’s entry into the ware wash market, an award winning green product line, and investments in state of the art production and distribution facilities, the divestiture provided an excellent opportunity to intensify its chemical strategy, the company said. In addition, State continues to focus on the North American roll-out of the Circle of Service program, a five-step program that begins with a facility survey and progresses to specific solutions, program installation, staff training and ongoing service and support. Customers benefiting from the Circle of Service report improved operations reduced costs and increased satisfaction from the users and occupants of the facility, according to the company. •

happi.com

July 2011

New Products

VITABATH RELAUNCHES WITH NEW BODYWASHES • After more than 50 years as a trusted bath and body brand, Vitabath is poised to reach a whole new generation of women with the introduction of 17 new moisturizing, sulfate- and paraben-free bodywashes in a wide variety of fresh, playful fragrances. The brand’s revival began with the rollout of Lime Citron Basil in June 2011, followed by the release of the 16-scent Vitabath Fragrance Collection this month. Vitabath’s Lime Citron Basil gelée will retail first exclusively at Costco locations in 38oz bottles for $16.99. The scent features

Vitabath is revitalized new 17 new bodywashes.

a blend of lime, sparkling citron, sweet basil and patchouli. The product also contains aromatherapy benefits from lime extract. The Vitabath Fragrance Collection includes 16 body washes, retailing for $9.99 each, in four fragrance profiles: Spa Day, In Bloom, Fruit Fanatic and Cupcake Couture. Each body wash in the collection features a blend of vitamins A, B3, C, E and pro-vitamin B5, as well as an antioxidant superfruit blend. The line will be available at Fred Meyer, Ricky’s Beauty, Harmon Discount and Bed Bath & Beyond stores, as well as other locations. More info: www.myvitabath.com

Nest Adds Summery Scents to Project Art Line

Nest Fragrances has rolled out two summer-inspired fragrances within its Project Art by Nest Fragrances Collection. The pair—Beach and Pineapple Mango—is available for purchase at select Bed, Bath & Beyond and Dillard’s stores nationwide.

•

July 2011

Beach, part of the Project Art by Nest Fragrances set, has an aquatic scent.

Project Art by Nest Fragrances candles ($19.99/22oz or $9.99/ 4oz) are crafted using the brand’s proprietary, cosmetic-grade wax blend, with the fragrance blended throughout the candle to ensure that the scent will infuse a room or environment with scent until the candle is extinguished. Beach is a fresh, aquatic fragrance with splashes of sparkling water accords, dewy jasmine, grapefruit, melon, bergamot and lily. Pineapple Mango is described as a mouth-watering fragrance bursting with a succulent mix of pineapple, guava, mango and juicy passion fruit with hints of creamy sandalwood and white musk. More info: www.nestfragrances.com

Get Connected With Kenneth Cole

The latest men’s fragrance from designer Kenneth Cole—Connected Kenneth Cole Reaction ($17-$67)—is said to capture the attention of “bold and energetic men,” according to the company. The juice features top notes of violet leaf and mangosteen and middle notes comprised of cedrat and clary sage from the salvia plant. The base of the fragrance is built around mahogany wood and tobacco. The packaging features a blue metallic finish and a caribeener for the

guy on the go, with a nod to the notion of being connected. More info: www.kennethcole.com

Colorescience Adds Limited Edition Hue to Lipgloss Lineup • Give lips a natural shimmer and shield from the environment with Lip Shine SPF 35 from Colorescience Pro ($25). This chemical and dye free formula provides instant UVA and UVB sun protection and long lasting moisture, according to the company. It is available in coral, pink, rose, merlot, clear and, for Summer 2011, champagne. Ingredients include 5% zinc oxide for sun protection, palmitoyl oligopeptide for the appearance of plumper lips, vitamin E for moisturizing benefits, antioxidants and spearmint. More info: www.colorescience.com

At-Home Keratin Smoothing Treatment

• KeratinPerfect has rolled out what it is calling the first and only at-home keratin

•

Mangosteen is one top note in new Connected from Kenneth Cole.

happi.com

KeratinPerfect is the latest DIY straightener kit.

smoothing treatment and product collection that offers salon-style results available exclusively at Sephora. KeratinPerfect’s formula is said to infuse naturally derived concentrated keratin and silk collagen proteins, along with wheat and soy proteins, pro-vitamin B5 and argan oil to support hair strength from within. Two kits are available—PerfectHair 30-Day Brazilian Hair happi • 127

New Products

Smoothing System Essentials Collection and PerfectHair 30-Day Brazilian Hair Smoothing System Deluxe Edition. Each provides enough products for two full treatments and everything needed to achieve smooth, sleek, shiny hair at home, as well as all post-treatment products. The KeratinPerfect line retails from $24$235 and is available exclusively at Sephora.com and Sephora USA stores. More info: http://keratinperfect.com

OPI Serves Up Glam Slam! England

OPI and tennis superstar Serena Williams have rolled out three new lacquers within the Glam Slam! collection. To celebrate the world’s most prestigious tennis tournament, Glam Slam! England features two duo-packs ($14.95). The first lacquer set includes Your Royal Shine-ness, a metallic

•

silver shade, paired with Servin’ Up Sparkle, a shimmer-packed silver glitter. The second Lacquer set also features Servin’ Up Sparkle, along with Grape…Set…Match, a metallic purple. More info: www.opi.com

Oasis Adds Mouthwash For Aging Mouths

• Oasis Consumer Healthcare has rolled out Oasis Age Essential, an over-thecounter, clinical-strength formula mouthwash designed to support the changing mouth conditions of older adults. Age Essential is a daily care, alcohol-free mouthwash formulated with patent-pending Duration technology, which kills germs for 16 hours while moistening a dry mouth, freshening breath and helping prevent plaque and gingivitis. A 16oz bottle is $6.99. More info: www.AgeEssential.com

Hurraw! Rolls Out Night and Day SKUs

•Hurraw! Balm’s new Blue Chamomile Vanilla Night Treatment Balm ($4.29) goes to work when you go to sleep. According to the company, the specially formulated SKU features a thicker, richer healing formula. Organic cold pressed specialty oils are packed with a vitamin rich avocado oil base; it also contains a “highly prized” blue chamomile essential oil. The blue color reveals its high azulene content, said the company. Azulene lends anti-inflammatory and skin healing properties, while its unique scent is mixed with earthy peru balsam and warming vanilla to lull users to sleep. Hurraw! also debuted a Tangerine Chamomile Sun Protection Balm ($4.29), formulated with a plethora of cold pressed specialty oils to heal and protect. Roman chamomile is incorporated for its calming and healing properties, while tangerine essential oil gives it a tropical and tangy scent. Non-nano zinc oxide lends a New lip care available broad spectrum, from Hurraw! Balm. clear, completely natural sunscreen base to Hurraw! Sun balm. It is also made with pomegranate seed and sea buckthorn oils to protect and nourish. Red raspberry seed oil is proven to help in the absorbance of UVB and UVC and also has anti-inflammatory properties. More info: www.HurrawBalm.com

Green Babies Branches Out • Green Babies is teaming up with MZB Accessories to introduce a baby body care line. The full spectrum of skin, hair and bath products for babies is tear-free and contains no artificial fragrances, dyes, parabens or sulfates, according to the company. Products are available for purchase at Whole Foods Markets throughout the Northeast region and via the Green Babies website. Products will retail between $8.99-$10.99. The line contains high-quality plant and 128 • happi

happi.com

July 2011

New Products

fruit derived, vegan and certified organic ingredients. More info: www.greenbabies.com

Spongebob and Dora— The Sunscreen

• Sunscreen meets fun with Sunbow, a

Collection of products for home, body and spa. Billed as a tribute to Orchid lovers around the world who covet the rare and exotic flower, it features a delicate feminine floral aroma. Founder Dana Roberts searched throughout Hawaii’s farms, orchid shows and state fairs until finally settling on the

purple Cattelya orchid from the eastern shore of Kauai. The collection includes body cream, body wash, body polish, mist, liquid hand soap, soy candle and island ambiance reed diffusers at price points ranging from $20-72. More info:www.malie.com •

new line of pediatrician recommended, water resistant, hypoallergenic, PABAfree, and most of all, kid friendly sun care SKUs. Sunbow has doubled the fun factor, as each product features a kid favorite Nickelodeon character, including Dora the Explorer and SpongeBob Everyone’s favorite SquarePants, and sponge adorns this goes on initially in a Sunbow sunscreen. color, guaranteeing children will enjoy application. According to the company, the micronized zinc oxide formulas found in Sunbow sunscreens provide a strong UVA/UVB barrier without actives such as oxybenzone or octinoxate. The products range from $7.99-$12.99. More info: www.sunbowsunscreen.com

Verbena Next at L’Occitane • A limited-edition collection of verbenainfused formulations developed with sunexposed skin in mind is up next at L’Occitane. For summer 2011, the company has captured the fresh radiance of Corsican verbena in a soft, light interpretation of the classic scent. Each product in the range is enriched with organic verbena extract from Corsica. The line, which hits stores this month, showcases a unisex eau de toilette ($48), fragrance mist ($48), body lotion SPF 15 ($24) and more. More info: www.usa.loccitane.com

Malie Organics Creates New Orchid Collection

• Malie Organics has added the Orchid July 2011

happi.com

happi • 129

Packaging News

GLOBAL PACKAGING ALLIANCE HOLDS ANNUAL MEETING IN HONG KONG The company has solved common product problems with Flow Science applied to slender rods (reeds), creating a totally-effective alternative to problematic reed diffusers. Rather than wicking diffuser oil from a container, the reeds actually hold the diffuser oil within themselves without any free liquid to spill—even when tilted 180°, according to Alpha Aromatics. Each Flow Science reed features micro-engineering enabling it to contain specially-formulated diffuser oil in its reservoir core. A precisely designed capillary system then carries the liquid up and out, flowing onto a secondary wicking surface. From there, the scent diffuses consistently over time without clogging, dipping, flipping or spilling. The Flow Science reeds are available in any length and diameter. More info: www.alphaaromatics.com

Front row: Dave Semrau (Diamond), Alex Commins (Colorpak), Hans-Christ-

Unique Packaging for Sun Bum Spray • Sun Bum Spray Sunscreen packages showcase an outdoorsy,

ian Bestehorn (rlc), Bernardo Herman (Cartmont); Back row: Stewart Butler

fun look with colors and imaging, according to the company. Each

(Masterpack), Sandeep Bhargava (Kumar Printers), Fred Lam (Yau Bon), Stephan Bestehorn (rlc), Maxim Yakovlev (Polygrafoformlenie), Luiz Facco (Goncalves), Mauricio Herman (Cartmont), Devair Balduino (Goncalves)

• The Global Packaging Alliance (GPA) recently held its annual meeting in Hong Kong, providing an ideal forum for its members to review industry trends and the latest developments in packaging innovation and sustainability. The group also focused on ways to further support international brands in growth markets. GPA members discussed packaging trends in their respective markets and shared the latest developments in their packaging operations, including equipment investments, technical advancements, process improvements, new materials and operating data for benchmarking. The GPA agenda also included a review of market developments in the Middle East and India with the possibility of adding a company to the GPA’s current network in these regions. With this in mind, the next GPA annual conference is scheduled to take place in India in early 2012. In the meantime, the group will continue to focus on ways to further support international brands in emerging markets while significantly reducing time-to-market. Alpha Aromatics Introduces Cutting-Edge Diffuser Technology

One very bourgeois dog grew up drunkenly. Obese orifices noisily auctioned

Alpha Aromatics is set to revolutionize reed diffusers with a ground-breaking method for diffusing fragrances into ambient air.

of these packages utilize the Moritz Twist To Lock actuator which is supplied by Aptar Beauty + Home. This actuator provides great

• A new patent-pending technology called Flow Science from

130 • happi

happi.com

July 2011

Packaging News

coverage of product and there is no overcap to lose, according to the company. More info: www.aptar.com

Qosmedix Thinks Pink With Packaging

• In recognition of Breast Cancer Awareness, Qosmedix has increased its inventory to include new and unique pink products that can be used as promotional items or for retail sale in October (Breast Cancer Awareness Month), as well as year-round. The latest pink additions include aluminum spray bottles from the packaging

was the brand of choice for the luxury antiaging treatment product gifted at the 2011 Academy of Arts & Sciences, Oscar awards presentation. “Fusion’s Kurve collection provides a sleek, curved design that is unique in our

industry,” said Lesley Gadomski, vice president of sales at Fusion Packaging.“We are thrilled to have partnered with the Gioello, LLC team to create and design an attractive package for Hollywood’s elite.” More info: www.fusionpkg.com•

Your Product Idea. Created by Us. Developed for Her. Personal Care Contract Manufacturer offering Custom and Private Label Formulations.

New pink packaging additions at Qosmedix.

category, and a boomerang spatula, lipgloss applicator, lip brush and mascara wand from the single-use applicators category. According to the company, all of these stock items can be personalized with your company logo to promote the cause along with your brand. More info: www.qosmedix.com/pink

Fusion Packaging Wins at The Oscars

• StemSational Skin Regeneration Serum, packaged in Fusion Packaging’s 30ml Kurve airless bottle collection,

Small to Large Flexible Production and Filling &DSDELOLWLHV‡6SHHGWR0DUNHW ([SHUWV‡&XVWRPHU6HUYLFH ‡3URPLQHQW5HVHDUFKDQG 'HYHORSPHQW&KHPLVWV‡ ,QJUHGLHQWDQG'HYHORSPHQW *XLGDQFH‡*OREDO([SRUWLQJ DQG,PSRUWLQJ6XSSRUW‡ 27&DQG&RVPHFHXWLFDOV‡ 3DUDEHQ3KWKDODWHDQG6XOIDWH )UHH‡1DWXUDO‡2UJDQLF‡ &KLUDOO\&RUUHFW‡1R$QLPDO 7HVWLQJ‡3DWHQWHG,QJUHGLHQW 7HFKQRORJLHV‡(VWDEOLVKHGDQG 6WURQJ&RPSDQ\)RXQGDWLRQ since 1989

)'$5HJLVWHUHGDQGF*03)DFLOLW\ 6%HQVRQ/DQH&KDQGOHU$= +1

www.CoValence.com

This 30ml Kurve airless is in demand.

July 2011

happi.com

happi • 131

Meetings

COSMOPROF NORTH AMERICA IN LAS VEGAS, JULY 31-AUG. 2 July 14: Cosmetic Industry Buyers and Suppliers (CIBS) Summer Luncheon, Central Park Boathouse, New York, NY. More info: www.cibsonline.com

July 16-18: Day Spa Association ProKnowledge Workshops, Crowne Plaza and Suites, Minneapolis, MN. More info: www.proknowledgeworkshops.com

July 31-Aug. 2: Cosmoprof North America 2011, Cosmoprof North America, Mandalay Bay Convention Center, Las Vegas, NV. More info: www.cosmoprofnorthamerica.com

Aug. 10: Cosmetic Industry Buyers and Suppliers (CIBS) Networking Luncheon, Rosie O’Grady’s, New York, NY. More info: www.cibsonline.com

Aug. 13-15: Day Spa Association Pro-

132 • happi

Knowledge Workshops, Wyndham Indianapolis West, Indianapolis, IN. More info: www.proknowledgeworkshops.com

Sept. 12-14: Beyond Beauty Paris, Porte de Versailles, France. More info: www.beyondbeautyparis.com

Sept. 14: Cosmetic Industry Buyers and Suppliers (CIBS) Networking Luncheon, The Manhattan Club at Rosie O’Grady’s, New York, NY. More info: www.cibsonline.com

Sept. 14-15: MakeUp in New York, Studio 450, New York, NY. More info: Beauteam, Tel: +33-1-42-73-96-61, E-mail: [email protected]

Sept. 15-17: Florida Chapter, Society of Cosmetic Chemists, Sunscreen Symposium, Disney’s Yacht and Beach Club,

happi.com

Walt Disney World, Orlando, FL. More info: www.flscc.org/ sunscreensymposium.html

Sept. 21: Cosmetic Executive Women (CEW) Newsmaker Forum, A Conversation with Andrea Jung of Avon, The Harmonie Club, New York City. More info: www.cew.org

Sept. 21: HBA Global Virtual Trade Show. More info: www.hbaexpo.com

Sept. 24-26: Outlook Personal Care Conference, Budapest, Hungary. More info: www.edana.org

Sept. 24-26: Day Spa Association ProKnowledge Workshops, Sheraton Airport Hotel, Portland, OR. More info: www.dayspaassociation.com

Sept. 24-26: InterCharm Milano, Halls 1-

July 2011

Meetings

Major Meetings at a Glance Sept. 15-17: Florida Chapter, Society of Cosmetic Chemists, Sunscreen Symposium, Disney’s Yacht and Beach Club, Walt Disney World, Orlando, FL. More info: www.flscc.org/sunscreensymposium.html

Oct. 25-26: Society of Cosmetic Chemists (SCC) California Suppliers’ Day, Long Beach, CA. More info: www.caliscc.org

Dec. 4-8: Consumer Specialty Products Association (CSPA) 98th Annual Meeting, Marriott Harbor Beach Resort, Fort Lauderdale, FL. More info: www.cspa.org

Dec. 8-9: Society of Cosmetic Chemists (SCC) Annual Meeting, New York Hilton, New York, NY. More info: www.scconline.org

2-4, Fieramilanocity, Milan, Italy. More info: www.intercharm.it

Sept. 26-27: ICMPack, Hall 2, Fieramilanocity, Milan, Italy. More info: www.intercharm.it

Oct. 12: Cosmetic Industry Buyers and Suppliers (CIBS) Networking Luncheon, Rosie O’Grady’s, New York, NY. More info: www.cibsonline.com

July 2011

Oct. 16-19: Consumer Specialty Products Association (CSPA), New Horizons 2011, Ponte Vedra, FL. More info: www.cspa.org

Oct. 17-21: 14th AOCS Latin American Congress and Exhibition on Fats & Oils, The Hilton, Cartagena, Columbia. More info: www.aocs.org

Oct. 18-21: ISSA/Interclean North Amer-

happi.com

ica, Convention Center, Las Vegas, NV. More info: www.issa.com

Oct. 19-21: Luxe Pack Monaco, Grimaldi Forum, Monaco. More info: www.luxepack.com

Oct. 24-25: Latin America Surfactants, Personal & Home Care Markets, Sao Paulo, Brazil. More info: www.cmtevents.com

•

happi • 133

Supplier’s Corner

UNIQUE HAIR CARE INGREDIENTS AT UNIPEX • Unipex recently launched two active ingredients that target the restoration of pigmentation in gray hair and stimulate hair regrowth, reversing the hair loss process and hair thinning. Capixyl is an innovative and unique active complex designed to prevent and stop the hair loss process and stimulate hair growth. Capixyl is a biomimetic peptide combined with a red clover extract. It has a direct action on DHT preventing the hair cycle to shorten and hair follicle miniaturization, improving the ECM proteins for better anchoring and promoting an increase of follicle size. Capixyl is said to stimulate hair growth with higher activity than the reference hair growth agent, minoxidil, according to the company. Melitane is a biomimetic peptide derived from alpha-MSH. Melitane stimulates melanin synthesis and decreases the number of white and low-pigmented hair and increases the number of moderate and highly pigmented cells on hair bulb. More info: www.unipex.com

Gransolve DMI from Grant

• Grant Industries, Inc. launched Gransolve DMI, a highly pure, low odor version of dimethyl isosorbide. This solvent is sustainably derived from renewable corn sugar and is easily formulated to stabilize and deliver active ingredients into the skin for outstanding efficacy and performance attributes. It is available for use in personal care, sun care and topical pharmaceutical applications (FDA approved up to 15% in topical OTC preparations). Gransolve DMI is a nonionic solvent and remains stable over most pH ranges found in cosmetics, while maintaining formula liquidity by retarding crystal growth of otherwise insoluble materials. The solvent polarity is well matched to the epidermis and boosts the penetration of actives into the upper layers of the skin. Gransolve DMI is an ideal ingredient for use in elegant hair, skin and sun 134 • happi

care products especially in anti-acne and self-tanning products. For this unique product alone, Grant selected Univar USA to play a primary role in promoting sales of Gransolve DMI. More info: Email: [email protected]; Website: www.grantinc.com or Univar, www.univar.com

Sinerga Delivers Anti-Aging Advancements

• Sinerga has presented an innovative ingredient in the field of anti-aging agents: ATP 23 (INCI name: Azeloyl tetrapetide23). According to the company, this new advanced pro-age peptide slows down oxidative damage, inhibits the glycation of dermal proteins and consequently the skin aging processes. Due to its structure, ATP 23 is said to prevent skin lipid peroxidation, protecting cellular membrane from scavenger attack. It is constituted by a lipophilic carrier to enhance antioxidant activity of the peptide itself, intended to inhibit AGEs (Advanced Glycation End products) of dermal proteins and to renew skin cells. ATP 23 is a second-generation active ingredient with high level cosmetic effects to slow down trends of skin aging. It is recommended for mature skin in order to prevent expression wrinkles and to regenerate the skin barrier. More info: www.sinerga.it

Silicone Antifoam for ADDs Available from Dow Corning

• A breakthrough in antifoam technology from Dow Corning allows automatic dishwashing detergents (ADDs) to be formulated with surfactants that improve cleaning performance, according to the company. The new technology may also help lower energy consumption, according to Dow Corning. Dow Corning GP 4503 Powdered Antifoam enables formulation of detergents happi.com

with foaming surfactants known for their excellent cleaning, but which could not be used in automatic dishwashing applications. Under current operating conditions, the surfactants produce significant amounts of foam, which can impact the efficiency of the cleaning mechanism. It is formulated with a water-soluble carrier to limit residue on dishes and dishwasher parts. It was developed to perform in extreme conditions, especially under high pH and high agitation, which typically generate excessive foam. The new silicone antifoam provides effective foam control throughout the entire dishwashing cycle with no noticeable buildup on dishes. The silicone antifoam is easy to incorporate into detergent tablets and powders. Free-flowing, noncaking white granules simplify mixing, and they do not collect in the matrix of the detergent structure. More info: www.dowcorning.com

Baycusan C Range Thinks Green

• The Baycusan C product line satisfies the key requirements that the cosmetics industry places on “green” raw materials, according to Bayer MaterialScience. These ultrapure synthetic polyurethane dispersions, developed by Bayer MaterialScience specifically for the cosmetics industry, are based on water and contain neither preservatives nor co-solvents. As a result, the raw materials give cosmetic companies freedom to design their products as they see fit and to preserve them in line with the appropriate statutory requirements. The Baycusan C range includes a polyurea powder as a sensory additive and four solvent-free polyurethane dispersions with film-forming and conditioning properties. These raw materials can be beneficial for skin care products, decorative cosmetics, sun care and styling products. More info: www.bayermaterialscience.com • July 2011

SCC News

NEW HANDS-ON COLOR COSMETICS TROUBLE SHOOTING COURSE • SCC has planned a new hands-on lab experience course—“Trouble Shooting Color Cosmetics”—Aug. 16-17 at the Glenpointe Marriott in Teaneck, NJ. This course, which will be led by Nick Morante, is aimed at technicians, formulators, compounders, process engineers and even marketing people who want a better understanding of what can go wrong with a product and what to do when problems arise in the lab or in production. This course will teach the basics of troubleshooting and problem solving in the color cosmetics category. It will review processes and principles and look at the obvious causes of some of the issues that come up with color cosmetic products and offer simple solutions to fix these problems. It will provide the basic tools necessary to spot and eliminate formulation problems, according to the SCC. Morante has more than 35 years of experience in the formulation of decorative and color cosmetics and other makeup and emulsion-type products—all of it at the Estée Lauder Companies where he held various technical and managerial positions in R&D. More info: www.scconline.org

SCS Holds 63rd Annual General Meeting

• The 63rd Annual General Meeting of the Society of Cosmetic Scientists was held on May 26, 2011 at the Royal Society of Chemistry in London. The 2010/2011 president, Dr. Chris Flower, chaired the meeting during which members adopted the annual and financial reports and elected officers and council. The 2011/2012 officers are: president— Robin Parker (Acheson & Acheson); vice president—Tony Gough (ISP Europe); hon. secretary—Emma Meredith (CTPA); hon. treasurer–Judi Beerling (Organic Monitor). New council members are: Roger Baar (consultant), Ruth Borner July 2011

The Society of Cosmetic Scientists Council includes back row: Mel Cheekoory, Sara Bergstedt, Ruth Borner, Louise Olivier, Richard Crombie, Roger Barr and Barry Winslett. Front row: Gem Bektas, Emma Meredith, Chris Flower, Robin Parker, Tony Gough and Judi Beerling.

(Lehvoss UK (Paroxite Division), and Laura Marshall (CyDen Ltd). Those continuing in office are immediate past president Chris Flower (CTPA) and members of council Sara Bergstedt (Smink Ltd), Barbara Brockway (IMCD UK Ltd), Richard Crombie, Louise Olivier (ISP Europe), Ian Prendergast (The Body Shop Plc) and Barry Winslett (IMCD UK Ltd). The secretariat includes Gem Bektas (secretary

SCC Meetings

July 12: Midwest Chapter Golf Outing More info: www.midwestscc.org July 14: St. Louis Chapter Technical Meeting (Dinner). More info: www.scconline.org July 19: Ontario 11th Annual Golf Tournament, Caledon Woods Golf Club More info: www.ontarioscc.org July 29: New York Chapter Golf Outing, Crystal Springs, Hamburg, NJ. More info: www.nyscc.org Sept. 13: Midwest Chapter Scientific Dinner and Education Meeting. More info: www.midwestscc.org Sept. 14: New York Chapter Monthly

happi.com

general) and Mel Cheekoory (administrative assistant). Susan Hurst was re-elected as hon. auditor. The honorary editor of the IJCS is Anthony Rawlings (AVR Consulting) and the SCS social secretary is Pauline Foster (Foster & Brown Research). In addition, Angela Janousek was elected as honorary member in recognition of her service to the Society since 1976. •

Meeting, Pleasantdale Chateau, West Orange, NJ. More info: www.nyscc.org Sept. 15-17: Florida Chapter 2011 Sunscreen Symposium, Disney Yacht & Beach Club, Orlando, FL. More info: www.flscc.org Sept. 15: Southwest Chapter Meeting. More info: www.swscc.org Sept. 20: Twin Cities Chapter continuing education course, advanced emulsions, Comfort Inn Airport, Bloomington, MN. More info: www.tccscc.org Sept. 22: NYSCC Culinary Event, I.C.E., New York. More info: www.nyscc.org

happi • 135

Personnel Roundup

KEMIN WELCOMES EMPLOYEES TO PERSONAL CARE DIVISION • Kemin: hired a technical sales manager, marketing manager and research and development director for its new personal care division. Jennifer Igou was named technical sales manager after working for the past eight years in technical sales for the company’s food technologies division. Igou joined Kemin in 1998 as a chemist and has built a successful career on her expertise in lipid chemistry and oxidation prevention. This expertise will be instrumental in her new role with the personal care division where she will not only sell Kemin products but also provide technical expertise on how to apply them for optimal results. Marsha Bro was appointed marketing manager after working in various roles for Kemin since 2003. In her new role, Bro will be responsible for providing strategic direction for new product development and product positioning in coordination with research, sales and operations. Previously, she served as the marketing manager for the food technologies division and prior to that she managed the company’s market research department. Satish Nayak, Ph.D., was tapped as director of research and development. In his new role, Nayak is responsible for product and process innovation, quality control and customer laboratory support for personal care ingredients. Nayak joined Kemin in 2008 as a scientist for the discovery research team, where he was the project manager for chemistry and biochemistry projects. Prior to Kemin, he worked as a post-doctoral assistant at the University of Chicago.

• Xiameter: appointed Jeroen Bloemhard as business vice president and global executive director. Based in Midland, MI, he will oversee the operations and expansion of the Xiameter brand globally. Bloemhard began his career at Dow Corning in 1991 and has since held a variety of marketing and commercial leadership positions around the globe. He most recently served as director in the company’s procureBloemhard ment organization and before that was business vice president and executive director of its global electronics industry business unit.

• CPL Aromas Latin America: welcomed Alejandra Merino as evaluation and quality manager. She joins the R&D team at the company’s Latin America facility in Bogota, Colombia where she will be responsible for the evaluation and applications process within the company. 136 • happi

Merino

Merino joins CPL Aromas Latin America from Symrise, Colombia and has previously worked at Johnson & Johnson and Belcorp.

• DKSH: appointed Mathias Greger as the new business unit manager for its specialty chemicals distribution business in North America. He has been working with the Swiss-based market expansion services group for the past several years, most recently leading the in-house consulting team in Kuala Lumpur. Prior to joining DKSH, he had worked for the chemicals division of Mitsui & Co., where he was in charge of sales and business development in Central and Eastern Greger Europe. In his new role, Greger will focus on overall growth activities in the North American market by acquiring new suppliers, strengthening relationships with key suppliers and expanding the customer base in the specialty chemicals and personal care industries. • Harmony Labs: welcomed John Simonick as the vice president of quality. He will lead the quality organization including quality control, quality systems and quality engineering. Simonick’s experience includes most recently serving as the executive director of quality operations at Watson Pharmaceuticals, where he was responsible for all quality and risk-based decisions. He also served as vice president of quality systems for Mission Pharmacal and vice president of quality systems for DPT Laboratories. Throughout his 30-plus year career within quality, he has served in progressive leadership roles assuming the responsibility for quality assurance, systems, validation and quality control functions.

• San-Mar Laboratories: named Randy Hutt, Ph.D., as director of quality assurance. She has more than 30 years of experience in various disciplines in the pharmaceutical and vaccine industries and brings extensive experience in quality assurance, quality control and manufacturing with a focus on aseptic products. Hutt’s experience as an independent consultant combined with her 13 years at Wyeth (now Pfizer) in different roles in QA and QC lab management, 10 years at Burroughs Wellcome Co. (now Glaxo Smith-Kline) in aseptic production management, and more than five years in QA and QC at Schering-Plough (now Merck) uniquely qualifies her to lead San-Mar in its ongoing quest for quality excellence, according to the company. San-Mar also named Julio Lamberty as its vice president of research and development and technical services. He brings 22 years of experience in various disciplines of R&D including OTC drug

happi.com

July 2011

Personnel Roundup

formulations, skin care, personal care, hair care and fragrance. He also brings extensive experience in lab management, quality control and manufacturing. Lamberty’s prior experience includes Bath & Body Works, Victoria Secret, C.O. Bigelow, Avon, Symrise, Peter Thomas Roth and International Specialty Products. The Consumer Specialty Products Association: added Timothy A. Brown to its Legal Affairs department. Brown will serve as regulatory counsel and division staff executive for CSPA’s cleaning products division. Brown’s other responsibilities include management of the Regulatory Government Affairs Advisory Committee (GAAC), which oversees issues pertaining to the Consumer Product Safety Commission and nanotechnology, as well as participation on the International Affairs team, which oversees REACH and trade issues. Prior to joining CSPA, Brown served as a senior policy advisor with the Hispanic National Bar Association (HNBA) and as associate director, franchising and state law for the National Automobile Dealers Association (NADA). He also is a member of the District of Columbia Bar, the American Bar Association and the Cuban American Bar Association.

•

• CND: hired James Banville as vice president of international sales, responsible for overseeing global distributor relationships and growth. Prior to joining CND, Banville worked in international markets with companies such as Clorox, Kao Brands, Herbalife and Catalina Marketing. He has worked and lived in more than seven countries and speaks three languages.

• H2O Plus: promoted executives Elizabeth Maul and Consuelo Martinez in the marketing and sales department. Maul joined H2O Plus in 2008 with a solid background in prestige marketing that included Beauté Prestige International, Lancôme and Yves Saint Laurent. She most recently served as H2O Plus’ director of July 2011

global marketing and has been promoted to vice president of marketing. She has been instrumental in building the global marketing team, which encompasses product development, creative, merchandising and packaging.

Martinez, previously senior international account manager, has been promoted to director, international accounts. Having joined the company more than seven years ago, he has overseen the growth of the international department. •

I N T RO RO D U C I N G . . .

I N D U S T R Y K N O WW- H O W

Bring yyour conceptss into our concept into reality. realityy. With our turn-key turn-kkey solutions, we we can pr provide development--from ovide product prroduuc t line de velopment--from unique formulations production assistance. fo ormulaatio t ons tto o pr roduc tion assis tance. Expertise Exper tise in the ffollowing o ollowing areas: areas: Sunscreen Su screen ttechnology Sunscr echn chnolog ology Suncare Sunccare fformulation o ormulati ation

Fragrance Flavor materials Fragrance / Fla avor o m ma aterials Aroma therapy Arom oma thera py + essential e oilss

Personal caree fformulation Perso e sonal car o orm mulaattion

Cross-over Crossoss-over ttechnology echn chno olog logy

Raw material Raaw ma teria erial sourcing sourcingg + eevaluation valuationn In vitr vitro SPF,F, U UVA o ttesting e ting of SPF es UV VA +W Water Resistance aterr R e tance esis

Sensory Contact Testing Sensory and a d Cont C ac t Angle A gle T eesting Regulatory Reegulaatory + FDA FD DA matters matters te

We guidance integrating We offer o guida annce and d ex eexpertise. xperr tise. By By int egraattinngg ttechnological echnolo oggical advances dietary industries, adva vance ces in thee fragrance, fragrancee, fo frag ffood oo o od and die ietar y supplement supple plem ment e indus ustries, rie we Wee look fforward assisting we rresolve esolve yyour our ttechnical echn hniccaal issues.. W orrwar o w d tto o assis ass sting yyou. ou. For moree inf information, please For mor m fo orm mation, t and tto o gget in ttouch, o ch, p ou ple ase vvisit:

ww w w w.S w . S h a a t h Me M e a dow d o w s.co s.com Nad N a d im i m S h aath a a t h , P h .D. . D. 914.645.3426 914.645.3426

happi.com

Tim T i m M e a dows dows 682.365 6 8 2 . 3 6 5 .1574 .1574

happi • 137

Financial News

A DEMAND FOR LUXURY GETS L’ORÉAL OFF TO A GOOD START • Strong growth in consumer products and luxury products as well as good performance in North America led to a favorable first quarter for international beauty giant L’Oréal, as Q1 sales rose 9.3% to $7.37 billion. Continuing dynamism in new markets also assisted in the growth, according to the company. Commenting on the figures, Jean-Paul Agon, chairman and CEO of L’Oréal, said, “The start to this year is encouraging, as it confirms the group’s good dynamics, to which all divisions are contributing, particularly consumer products and luxury products, driven by the vitality of their major brands: L’Oréal Paris and Maybelline on the one hand, and Lancôme, Giorgio Armani and Kiehl’s, on the other. “In geographic terms, North America is accelerating strongly. Growth continues to be robust in the new markets, particularly in Latin America, in Asia excluding Japan, and in Africa, Middle East. However, the situation remains more contrasting across Europe. These performances reflect the quality of our innovations, the force and diversity of the brand portfolio, and the right balance in our geographic positions,”he said.

Sales Jump 9% at Henkel • Henkel’s sales in the first quarter of 2011 rose 9% to $5.6 million. According to the company, this positive development was supported by all Henkel business sectors. Due in particular to strong volume increases, laundry and home care generated growth of 1.6%, while the cosmetics/toiletries sector rose 5.7%. “Despite the challenging market environment, Henkel reports a solid start to the financial year. We achieved very good organic sales growth, once again outperforming our relevant markets,”said Henkel CEO Kasper Rorsted.“All our business sectors contributed to this success and with continued double-digit growth rates we were able to further expand our position in 138 • happi

the emerging markets. We are fully committed to our strategic priorities and remain confident of being able to achieve our 2012 targets.” For the fiscal year 2011, Rorsted provided the following guidance:“With intense competition and rising raw material costs, the economic environment will remain challenging. We will need to continue reviewing our structures to ensure our longterm international competitiveness.” Henkel has slightly raised its expectations for organic sales growth.“We are confident that we will again outperform our relevant markets in 2011 and now expect an increase in organic sales at the upper end of the 3-5% range,” noted Rorsted.

Sales Rise 7% at Unilever • Unilever PLC posted a 7% rise in sales on growing demand in emerging markets, but warned that its first-half profits will decline owing to sluggish demand in mature economies and rising commodity prices. Unilever said total sales in the quarter rose to $16.13 billion compared with a year earlier. In personal care, sales of deodorants continue to rise and Unilever is gaining share in the category. Performance was particularly strong for Dove, in both male and female variants, and especially in Latin America where growth was broad-based across brands and countries. The new Axe variant Excite has made a promising start, while the new Rexona for Women with MotionSense technology has been launched and, by the end of the year, will be in around 30 markets, according to the company. Skin cleansing sales rose on gains posted by Dove Nutrium moisture and Dove Men+Care, which were extended to the Australasian and Nordic markets. Lifebuoy delivered another quarter of double-digit growth with new market entries, new communication materials and imhappi.com

proved product quality. Vaseline has been launched in Turkey. Pond’s Gold Radiance in face care is performing well where it has been introduced in Asia. In hair care, the company’s sales were resilient in the Americas and Asia, with strong progress in China. A new product range for dry and frizzy hair under the Dove Nourishing Oil brand showed early promise in the US. Dove Hair Damage Repair continues to make good progress with recent entries in Japan and Indonesia. The Sunsilk performance was more mixed but was notably strong in Italy and Greece. Oral care made a good start to the year with White Now continuing to drive growth and Signal Sensitive Expert receiving a positive reception in France, according to Unilever. Laundry delivered strong growth in home care, driven by both volume and increased pricing. Household cleaners continued to grow as Unilever takes its power brands into new market.

Realignment On Track At Beiersdorf Group

The Beiersdorf Group recorded organic sales growth of 0.1% in the first quarter of 2011. At current exchange rates, group sales were up by 1.7% on the previous year, reaching approximately $2.08 billion, according to the company. The operating result (EBIT) excluding special factors amounted to $247.8 million. Group profit after tax rose to $185.5 million. “The realignment of our business is on track. Our performance in the first quarter is in line with our planning. The sales trend in the consumer business segment reflects the ongoing streamlining of its product ranges,” said Executive Board Chairman Thomas-B. Quaas, commenting on the first quarter. “Sales were down slightly on the previous year. The tesa business segment continued its positive performance from the past year and again achieved doubledigit growth.” •

•

July 2011

Private Label/Contract Packaging

You promise. Dotcom delivers. Completely transparent service to your customers, plus: • Reduced distribution costs • Improved service • 100% on time shipping • 99.7% accuracy Call the leaders in multichannel distribution today

732-287-5970 David Del Pizzo: Beauty and Healthcare Specialist • [email protected] 300 Nixon Lane, Edison, NJ 08837 • www.dotcomdistribution.com

1-866 1-866-941-3945 6-941-3945

July 2011

happi.com

happi • 139

Private Label/Contract Packaging

Premier manufacturer of truly natural and organic personal care products, located in a state-of-the-art 125,000 sq. ft. facility.

100% Natural Formulations Skin, Body, & Hair Care USDA Organic & Health Canada Certified Paraben Free Green and Natural Ingredients Contract Manufacturing FDA Registered / GMP’s 2,500 – 1,000,000 Piece Runs Competitive Pricing Quick Turn Around Times

Manufacturers of “Truly” Natural Cosmetics 2671 Fort Trenholm Rd., Johns Island, SC 29455

800-760-7779 • 843-559-7542 fax

www.royallabs.com • [email protected]

140 • happi

happi.com

July 2011

Private Label/Contract Packaging

MANA is the market leader and the source of innovation for the world of beauty.

®

MRJS$QERETVSHYGXWGSQˆ[[[QERETVSHYGXWGSQ

Coming in the August Issue • THE INTERNATIONAL TOP 30 • Fragrance Packaging

• Color Cosmetics

• Hair Care Market

• Anti-Aging & Cosmeceuticals For Advertising Information, Contact: Matt Montgomery 201-880-2225 [email protected] July 2011

Art Largar 201-880-2259 [email protected] happi.com

Beth Russo 201-880-2255 [email protected] happi • 141

Professional Directory

Skin and Hair Care Products

THIS SHOULD BE YOUR AD

s0rivATE,ABEL #ONTrACT-ANufacturINGAND0RODUCT$evELOPMENTnJARs  BOTTLEs TUBEs AIrLESSPUMPs SAMPLEs ETC sFACE#REAMS 0EELs 3ErUMs #LEANSERs TONERs -ASQUEs 3CrUBs  !NTI !GINGTREATMENTs 30F (AIR#ARe 3PA #OLOR#OSMETICS sTurNkeY0ROJECTs 3TABILITY3TUDIEs 'rAPHIC$ESIGN 0acKAGING ,ABELING n,OWMINIMUMS s'-0O4#CErTIFIED &$!!PPROvED

201.825.2552

s#USTOMfOrMULATIONS 9634 Washburn Rd Suite A., Downey, CA 90241 www.healthspecialty.com (562) 940-8300 / (888) 267-6652

Classified Ads

Spices S pices ffor or H ealth Health

Because Na Natural tural Is Be Better! tter! Wholesale Herbs, Spices, Teas, Teas, e Tinctu i res, Oils and Extracts Extracts Tinctures, since 1969

SSAN AN FRANCISCO FR RAANCI CISCO HERB HERB & NNATURAL ATTUURAALL FFOOD AT OO O OD CCO. O.® O 47444 4 7444 Kato Kato Road, Road, Fremont, Fremont, CA 94538 9 Toll: 800.227

t

1IPOF: 51

t
Fax: 510.770.9021 T o oll: 8 00.227 t 1IPOF: 5 1 t Fax: 5 10.770.9021

www.herbspicetea.com ww w.herbspicetea.com

142 • happi

happi.com

July 2011

Classified Ads

EPA Registered FDA Registered R&D, Micro Lab East & West Coast Operation Bases Full Service Provider Cosmetics | Health Care Personal Care | Household

Let Us Be Your

FILLING WET WIPE SINGLE PACKET SPECIALISTS Trust Our Made in U.S.A. Quality

Contact Us Today! 1 (800) 454-1077 [email protected] www.diamondwipes.com

HOGAN FRAGRANCES

130 EAST 18 TH STREET NEW YORK, NEW YORK 10003 TEL 212-598-4310 FAX 212-477-4711 www.HOGANFF.com

CREATORS FRAGRANCES TO GIVE YOUR PRODUCTS

FRAGRANCES FOR ALL TYPE PRODUCTS - at reasonable prices -

July 2011

happi.com

happi • 143

Advertising Index

Advertiser

Page No.

Telephone

Website

Access Business Group ......................................39 ......................800-879-2732 ....................www.accessbusinessgroup.com Acme Hardesty ..................................................37 ......................866-226-3834 ..............................www.acme-hardesty.com Ajinomoto ............................................................5 ......................201-292-3180 ..........................................www.ajichem.com Akzo Nobel ........................................................8, 9 ....................312-906-7500 ........................www.surface.akzonobel.com Berjé......................................................................53 ......................973-748-8980 ..........................................www.berjeinc.com BioScreen Testing Services ................................49 ......................800-229-9057 ......................................www.bioscreen.com Campo Research USA Inc.............................110, 111 ................877-329-8449 ............................www.campo-research.com Centerchem, Inc. ............................................Cover 4..................203-822-9800....................................www.centerchem.com Chemsil ................................................................21 ......................877-700-0302 ..........................................www.chemsil.com Clariant Corp./Bs. Unit Industrial & Consumer Specialties ........................................................................................................ ..............................................................................81 ......................704-822-2259......................................www.ics.clariant.com Clinical Research Labs........................................13 ......................732-981-1616 ............................................www.crl-inc.com CLR - Chemisches Laboratorium Dr. Kurt Richter GmbH.......................................................................................................... ..............................................................................77 ..................+49-30-85 10 26-0 ......................................www.clr-berlin/de

www.happi.com

Covering the Cosmetic, Toiletry & Fragrance industries for over 40 years. Ask about our special Latin America and China Issues and our NEW supplement, Beauty I/O

contact:

Beth Russo 201-825-2552 ext. 355 [email protected]

Art Largar 201-825-2552 ext. 359 [email protected]

For a FREE subscription visit www.happi.com

144 • happi

happi.com

July 2011

Advertising Index

Advertiser

Page No.

Telephone

Website

Coast Southwest ................................................12 ......................800-621-0500 ............................www.coastsouthwest.com Consumer Product Testing, Inc. ........................23 ......................973-808-7111 ..........................................www.cptclabs.com Coughlan Products LLC....................................103 ....................973-904-1500 ........................www.coughlanproducts.com Covalence............................................................131 ....................480-897-0551......................................www.CoValence.com Croda Inc...........................................................19, 47 ..................732-417-0800 ........................................www.crodausa.com DSM Nutritional Products, Inc. ........................85 ......................800-526-0189..........www.unlimitednutrition-na.dsm.com Flavex Naturextrakte GmbH..............................33................+49 (0) 68 35-91 95-0 ......................................www.flavex.com Grant Industries, Inc. ..........................................3 ......................201-791-8700..........................................www.grantinc.com In-Cosmetics Asia ..............................................56 ..........................................................................www.in-cosmeticsasia.com Independent Chemical Corporation ................33 ......................718-894-0700 ..................www.independentchemical.com Innospec ..............................................................75 ......................732-321-3500 ..................................www.innospecinc.com Jeen International................................................71......................800-771-JEEN ................................................www.jeen.com Lipo Chemicals ................................................30, 31 ..................973-345-8600 ................................www.lipochemicals.com Luxe Pack Monaco..........................................Cover 3..................212-274-8508 ........................................www.luxepack.com LycoRed ..............................................................107 ....................877-592-6733 ..........................................www.lycored.com Madeline Blondman & Co. Inc. ........................105 ....................516-466-2400 ......................www.madelineblondman.com Mibelle AG Biochemistry....................................89 ................+41 (0) 62 836 13 45................www.mibellebiochemistry.com Nexeo Solutions, LLC (formerly Ashland) ......27 ......................800-531-7106 ..............................www.nexeosolutions.com Noveon ................................................................29 ......................800-379-5389 ....................www.personalcare.noveon.com Pearce Plastics, Inc. ............................................15 ......................626-797-8481 ................................www.pearceplastics.com Protameen Chemicals Inc. ................................87 ......................973-256-4374 ....................................www.protameen.com Purac America Inc. ..............................................7 ......................888-899-8166 ..............................................www.purac.com Rhodia ..................................................................43 ......................800-922-2189............................www.rhodia-novecare.com RITA Corporation ..........................................Cover 2..................800-426-7759 ..........................................www.ritacorp.com Ruger Chemical Co., Inc.....................................17 ......................800-274-7843 ..............................www.rugerchemical.com Sabinsa ................................................................11 ......................732-777-1111 ..........................www.sabinsacosmetics.com SCC West Coast ................................................133 ............................................................................................www.caliscc.org Schulke & Mayr ..................................................25 ......................888-267-4220 ........................................www.schuelke.com Sea-Land Chemical Co. ....................................41 ......................440-871-7887 ................................www.sealandchem.com Sederma/Croda ..................................................83 ......................732-692-1652..............................................www.sederma.fr Shaath & Meadows Consultation ....................137 ....................914-645-3426 ..........................www.ShaathMeadows.com Shin-Etsu Silicones of America, Inc. ................73 ......................330-630-9860 ..........................www.shinetsusilicones.com Spectra Colors Corp...........................................129 ....................800-527-8588................................www.SpectraColors.com Takasago ..............................................................55 ......................201-767-9001 ........................................www.takasago.com Universal Preserv-A-Chem, Inc. ......................128 ....................732-568-1266 ........................................www.upichem.com Wacker Chemical Corporation ..........................35 ......................888-922-5374..............www.wacker.com/knows-solutions Welch, Holme & Clark Co., Inc. ......................104 ....................973-465-1200 ......................www.welch-holme-clark.com July 2011

happi.com

happi • 145

Photo News

AVON BELIEVE WORLD TOUR HITS WARSAW AND MOSCOW • Actress and Avon global ambassador Reese Witherspoon joined Avon chairman and CEO Andrea Jung to celebrate the company’s 125th anniversary in Warsaw, Poland on June 14 and then in Moscow, Russia on June 16, during the 16-city Avon Believe World Tour. At each event, Jung and Witherspoon presented a grant of $60,000 to a local organization to continue its work to support domestic violence victims. In Warsaw, the grant was made to Blue Line; in Moscow, the grant went to ANNA, the National Center for the Prevention of Violence in Russia. The grants were made as part of the new $2 million Avon Global Believe Fund created to help support women’s domestic violence shelters and agencies in each of the 16 cities on the Avon Believe World Tour.

Reese Witherspoon and Andrea Jung at the Avon Believe World Tour in Warsaw, Poland.

OPI Launches Miss Universe Collection

At the unveiling of its new Miss Universe by OPI shade collection, 51 Miss USA contestants—along with reigning Miss USA Rima Fakih and reigning Miss Universe Ximena Navarrete—joined Miss USA 2007 Rachel Smith (host of ABC’s “On the Red Carpet”) at Color, A Salon by Michael Boychuck at Caesars Palace Las Vegas. Caesars Palace lead mixologist Eddie Perales and executive chef Charles Wilson created cocktails and hors d’oeuvres themed to correspond with each of the four new shades—Congeniality Is My Middle Name (berrywine shimmer); It’s My Year (champagne-rose); Swimsuit...Nailed It! (vibrant shiny-blue bikini); and Crown Me Already! (silver sparkle). “Having the Miss USA contestants pull off their gloves to reveal the Miss Universe lacquers was the perfect way to launch such show-stopping shades,”said Suzi Weiss-Fischmann, OPI executive vice president and artistic director. •

•

Reigning Miss USA Rima Fakih, stylist Michael Boychuck and reigning Miss Universe Ximena Navarrete unveil four new limited edition nail lacquers for Miss Universe by OPI.

146 • happi

happi.com

July 2011

ackaging p e v i t a e r c r o show f T h e p re m i e r

- Photo : D. Combet

C R E AT E A U N I Q U E L I N K

M O N A C O

I

Grimaldi Forum / Monaco Under the Patronage of his Serene Highness the Sovereign Prince of Monaco

www.luxepack.com

Information / FRANCE Idice T. +33 (0)4 74 73 42 33 - [email protected] USA KX Associates Inc T. + 1 212 274 8508 [email protected]

S H A N G H A I

I

N E W

Y O R K

Creation :

19 . 20. 21 OCTOBER 2011

ALPAFLOR® ALP®-SEBUM The effective Alpine formulation to prevent oily skin & restore its healthy appearance DSM Nutritional Products, LLC 45 Waterview Boulevard, Parsippany NJ 07054-1298 Phone: 1-800-526-0189 www.unlimitednutrition-na.dsm.com North American distributor: CENTERCHEM, INC. 20 Glover Avenue, Norwalk, CT 06850 Phone 203-822 9800, Fax 203-822 9820 E-mail:[email protected] www.centerchem.com www.dsmnutritionalproducts.com

ALPAFLOR® ALP®-SEBUM, produced from the rare Alpine plant Epilobium fleischeri, is DSM’s ECOCERT and NATRUE certified solution for oily skin. Clinical studies have proven its outstanding properties on sebum production and pore size reduction, leading to a visibly improved skin appearance.