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| Beauty sales strong for Avon in Q2 |
29 July 2010 Avon Products has reported an eight per cent increase in total revenue to $2.7bn for the second quarter compared to 2009. Beauty sales for the quarter rose by nine per cent to $1.919bn and increased seven per cent on a constant dollar basis. Gains in Avon’s beauty sales were across all categories including fragrance, colour cosmetics, skin care and personal care, which grew by 16 per cent, 12 per cent, four per cent and three per cent respectively. Commenting on the results, Avon chairman and ceo Andrea Jung said: “Avon delivered another healthy performance in the second quarter, including strong revenue growth fueled by continuing investments in our brand and in our channel, in line with our long-term strategic growth plan.” By geographic region, Latin America performed well with revenue up 16 per cent year over year while North America declined six per cent. In Central and Eastern Europe, revenue was up by 10 per cent year over year driven by 15 per cent growth in Russia. Western Europe, Middle East and Africa saw an 18 per cent increase in revenue with Turkey and South Africa leading the pack. The acquisition of Liz Earle Beauty Co also contributed four points to revenue growth, the company said. Revenue for Asia Pacific rose by eight per cent year on year with strong growth in the Philippines offsetting continued weakness in Japan. |
| Organic Pharmacy glams it up with debut fragrances |
28 July 2010 The Organic Pharmacy has launched its first-ever fragrance collection that is made with natural and organic ingredients sourced from all over the world. Organic Glam is a collection of four fragrances, including Citron, Oriental Blossom, Jasmine and Oud. All of the fragrances are 100 per cent natural and organic as well as adhere to The Organic Pharmacy ethos of no artificial fragrances, no artificial colours, no phthalates and no animal ingredients. Speaking at the launch, The Organic Pharmacy founder Margot Marrone said she’s very excited to have finally launched a fragrance range after several years in development. “Most skin care brands on the market today have an organic range but fine fragrance is something that’s been ignored with little choice for the consumer,” said Marrone. “Synthetic fragrances lack the depth that the natural fragrances have.” Citron is inspired by the scenery and beauty of the Italian Riviera with Italian lemon and bergamot top notes, Moroccan orange blossom and ylang ylang middle notes and patchouli and neroli base notes. Oriental Blossom captures the gardens and spices of the Orient with bergamot, lemon and mandarin that give way to a spicy floral heart of cinnamon, clove, rose and neroli that dry down to notes of oakmoss, vetiver, pepper, vanilla and ylang ylang. Jasmine evokes the scent of jasmine blooming in the Mediterranean night beginning with the florals of Egyptian jasmine and ylang ylang with a twist of bergamot and sandalwood. Oud is a bold scent that is influenced by an Arabian Souk with Moroccan cedarwood, Indian oud, black pepper and cardamom top notes that flow into a rose heart and end with a base of sandalwood, vetiver and tonka bean. The Organic Glam fragrances are contained in a crystal-like bottle with a gold label in the centre that has the Organic Glam logo printed on it in gold writing with a black background. The cap is shaped like a diamond and sits atop a gold neck with the letters ‘O’ and ‘G’ embossed around it. All of the fragrances will launch in mid-September and retail at £110/$220 each for 100ml. |
| Classic Yardley and Woods of Windsor brands to be re-launched this autumn |
27 July 2010 Iconic British brands Yardley London and Woods of Windsor are re-launching internationally starting in September with a fresh, new look for the 240-year-old brands to appeal to a slightly younger audience. “We’re looking to appeal to women who are 45 years old rather than 65 years old,” said Quentin Higham, managing director, Yardley. “We compete with fine fragrances but we don’t see the need to use a celebrity to promote the brand. We just look at the juice itself.” Owned by personal care brands company Lornamead, Yardley and Woods of Windsor ranges will sport a new colour scheme in packaging and bottles that corresponds to the flowers such as rose, peony and iris. Speaking about trends of fine fragrances, Higham said Yardley prides itself on delivering linear fragrances that are different from other fragrance houses, which do layered scents. “If you love lily of the valley then you’ll get lily of the valley through the duration of the fragrance,” said Higham. For Yardley, there are seven fragrance collections to choose from, including the discontinued April Violets collection, which was taken off the market a couple of years ago. Higham explained that Yardley fragrances are based around one or two linear notes that are softened with a subtle top, heart and base notes. The lily of the valley fragrance pyramid, for example, has bergamot, green lemon and lavender leaves top notes, lily of the valley, jasmin & magnolia rose and geranium & violet & mimosa heart notes, and muguet, amber, musk and woody base notes. All of the Yardley collections include an edt in 125ml and a new 50ml bottle, a body spray in a new 75ml bottle, triple milled soaps in new 100g spa, new 4x50g guest soaps and 3x100g soaps, and talc (200g). Prices range from £2.49 for the body spray to £12.95 for the 125ml edt. The new Yardley London range will be stocked in Boots, Lloyds and Independent chemists from mid-September. For more, please see the 13 August, 2010 issue of Cosmetics International. |
| New markets and brands boost sales for Inter Parfums |
26 July 2010 Inter Parfums recorded a solid first half in 2010 with sales up 24.3 per cent at current exchange rates (26 per cent at constant exchange rates) year-on-year to €150m. The results were up 17.5 per cent over the same period in 2008 and 17 per cent above the 2010 budget. For the second quarter alone, sales totaled €72.4m, up 24.2 per cent at current exchange rates and 23.4 per cent at constant exchange rates year-on-year. The company attributes the increase to significant gains by its long-established lines as well as steady performances by top-selling lines such as Burberry Brit and Burberry The Bead. The launch of the Burberry Sport line also fueled growth for Burberry fragrance, which had total sales near €100m for the first half. Lanvin fragrances also saw significant increases with Eclat d’Arpege and Jeanne Lanvin both rising in sales by 48 per cent and 33 per cent respectively. Van Cleef & Arpels fragrance, meanwhile, rode high on the positive performance of the Feerie line and repositioned itself in the high end segment with the launch of the Oriens line. By region, new markets saw the biggest gains with Asia up 39 per cent, the Middle East up 22 per cent as well as Eastern Europe up 68 per cent and South America up 67 per cent. Western Europe and North America were up steadily at 15 and 14 per cent respectively. Inter Parfums said the mutual agreement between Christian Lacroix and the company to terminate its license agreement before its expiry date of 2 April, 2010 had no financial impact on either of the parties. Commenting on the results, Philippe Benacin, chairman and ceo said: “Noteworthy events in the second half will include the integration of Montblanc fragrances into the portfolio and the launch of new lines under the Van Cleef & Arpels and Lanvin brands. With positive growth momentum for all brands, particularly in new markets, we have raised targets for 2010 full year sales, now expected to exceed €280 million.” |
| Inter Parfums adds Jones to fashion brand |
26 July 2010 Inter Parfums has signed up Jones Apparel Group to develop a new fragrance under the Nine West brand. The deal, which expires at the end of 2016, will see fragrance supplier Firmenich create the Nine West fragrance for Inter Parfums and Jones. The fragrance will launch in autumn 2011 in upscale department stores, specialty retailers and in Nine West boutiques. Other fashion brand fragrances developed and distributed by Inter Parfums include Burberry and Paul Smith as well as personal care products for Banana Republic, New York & Co and Bebe Stores. Commenting on the agreement, Richard Dickson, Jones’s chief executive of branded businesses said: “We are excited to be working with best-in-class partners, Inter Parfums and Firmenich, as we begin the creative journey of extending Nine West into this new world of fragrance.” |
| Dabur on acquisition hunt again |
23 July 2010 FMCG company Dabur India is said to be in talks to buy Turkish personal care company Hobi Kozmetik, according to The Economic Times. If it goes through, the deal would be Dabur’s first overseas acquisition. The company said it is close to finalizing an acquisition overseas but that it is talking to more than one company with Hobi Kozmetik as the frontrunner. Hobi Kozmetik would be a good fit for Dabur with its range of shampoos, hairstyling, hair care, skin care and bath and shower products that would compliment Dabur’s Vatika shampoo brand. Established in 1974, Hobi Kozmetik has a large share in Turkey’s hair gel market and, to a lesser extent, in the hair and skin care products segment. Dabur has publicly said it is looking to expand in other markets including Turkey, the Middle East, sub-Saharan Africa and Indonesia. Dabur has recently acquired women’s skin care products maker Fem Care Pharma and Balsara Hygiene and Home products, giving it a foothold in the beach and skin care categories. Other recent acquisitions by companies in the region include Wipro’s acquisition of Singapore-based Unza Holdings in 2007 and Yardley in Asia, West Asia, Australasia and certain African markets from UK based Lornamead Group last year. Godrej purchased Kinky in South Africa, Tura in Nigeria, Megasari in Indonesia and Issue Group and Argencos in Argentina. |