BW Confidential - Issue #4 - October/December 2010 - (Page 10)
Expansion and M&As
New owner for St Tropez
Consumer-goods group PZ Cussons is to buy UK sunless tanning brand St Tropez from privateequity group LDC for £62.5m ($98.8m). PZ Cussons says the deal will strengthen its masstige portfolio, which includes Charles Worthington and The Sancturary spa brand; the company may link the strategy of St Tropez with The Sanctuary spa. The group is also expected to develop St Tropez globally. St Tropez has revenues of £20.7m ($32.7m) and EBITA of £7.4m ($11.7m). Some 80% of sales are done in the UK.
Unilever to acquire Alberto-Culver
Anglo-Dutch group Unilever is to acquire US haircare company Alberto Culver for $3.7bn, as part of its strategy of focusing on the high-growth personal-care market. Alberto Culver, whose brands include VO5 and TRESemme, does sales of $1.6bn and has an EBITDA of $250m. Adding Alberto Culver to its portfolio will provide Unilever with increased scale and help it close the gap with competitors in the global haircare market; Unilever is ranked third in haircare after P&G and L’Oréal. The deal makes Unilever the largest player in the hair conditioner category, second in shampoo and the number-three player in hair styling. Unilever also plans to use Alberto Culver to expand outside Western Europe, where growth is slow. The acquisition will help its position in North America, where Alberto does 64% of sales, but Unilever also wants to develop Alberto’s brands in emerging markets. While seeing the strategic fit of Alberto Culver within Unilever, some analysts question the high price tag—Unilever will buy the company for 15 times Alberto’s EBITDA. If the deal goes ahead, it will be Unilever’s second personal-care acquisition in a year, following the purchase (yet to be cleared) of Sara Lee’s bodycare business.
Marc Menesguen, head of L’Oréal Luxury Products Division is to be replaced by Nicolas Hieronimus, current md of the professional haircare arm. Menesguen, who has been with L’Oréal since 1985 and head of the luxury division since 2004, is to lead a newly formed strategic marketing department, which will act as an intelligence unit focusing on consumer behavior, distribution and digital marketing. Hieronimus spent 18 years in the Consumer Products Division. He will be replaced by An Verhulst-Santos, who was most recently head of the professional division in the US. Estée Lauder Companies (ELC) has appointed Ricardo Quintero to the newly created position of senior vp global general manager, market development at Clinique. Quinerto, who was most recently svp and gm for Clinique in the Americas, will be responsible for Clinique across all regions and travel retail. ELC also promoted Daniel Annese to the same role for the Estée Lauder brand. Annese was most recently svp and md Estée Lauder International. In addition, the group named Charisse Ford svp global marketing for Estée Lauder, replacing Elana Drell Szyfer, who left the company. Ford was previously vp global marketing skincare and face for the brand. US beauty group Revlon has named former Coca-Cola Companies executive Julia Goldin to the position of senior vice president and global chief marketing officer. She will head up marketing activities for the company’s portfolio, which includes Revlon, Almay and Mitchum brands.
Coty scent for Lady Gaga
Coty’s mass arm Coty Beauty has signed a fragrance licensing deal with American singer Lady Gaga. The first scent from the singer is set to launch in 2012.
Filorga aims for anti-aging top spot
French anti-aging skincare brand Filorga has been acquired by company president Didier Tabary and French investment consortium HLD. “This deal gives us stability and allows us to focus on long-term growth in the next 10 years. We aim to become the global reference in anti-aging,” he said. The company is focusing on developing business in Japan, South Korea, Taiwan and Singapore. In Latin America it is in talks to enter department stores in Mexico and is seeking distributors in Brazil, Argentina and Chile. Filorga is also developing its medispa activity; it will open a spa at the Hôtel Barrière in Enghien, and will transform its Paris beauty institute into a medispa.
Inter Parfums’ US deal
Inter Parfums has teamed up with Clarins in the US to create a new subsidiary, Inter Parfums Luxury Brands. Under the four-year deal, effective 2011, Inter Parfums and Clarins Fragrance Group US will share the same sales force, while logistics and administration will be provided by Clarins. The aim is to speed up growth of Inter Parfums’ Burberry, Lanvin, Montblanc and Jimmy Choo brands in the US, and for the firms to share costs and create critical mass.
Shiseido enters new markets
As part of its push to enter new markets, Japanese group Shiseido is to launch in South Africa and Georgia in October. The group will begin selling in South Africa, whose total beauty market is worth €1.1bn (prestige sales are around €220m) through local distributor The Prestige Cosmetics Group. In Georgia, the group signed with distributor Prestige. Shiseido is also celebrating its 30th anniversary in the French market this year, which it marked by a show called Urban Art Box in Paris in September, which will feature 30 works previously showcased by Shiseido in-house designers at its Tokyo headquarters, as well as six new works by French artists. The brand is sold in around 1,000 doors in France.
P&G grows Olay
P&G is to expand its Olay brand into 15 new markets this year and to increase its presence from 69 to 100 countries in the next two years. It also sees potential in Asia for men’s skincare with Olay, and has launched its Olay Men Solutions line in China. P&G has also been adding new men’s skincare items under the Gillette brand.
October-December 2010 - N°4 - BW Confidential
Table of Contents for the Digital Edition of BW Confidential - Issue #4 - October/December 2010
- Brand & retail news recap
- Digital digest
- Companies on the move
- Market facts, figures & trends
Best of BW
- Highlights from our e-publication
- The latest in fragrance, skincare & make-up
- BPI president Rémy Gomez
- Category overview
- Industry viewpoint
- New opportunities
- Launch roundup
- Airport Spas
- Spa case studies
- New store concepts
- Market overview
- Retail strategies
- Interview: World Duty Free & Aldeasa
- TFWA World Exhibition
- Six up-and-coming beauty brands
Market watch: India
- Country overview
- Industry roundtable
- Retailing analysis
- Sector outlook
- Mintel head beauty consultant Nica Lewis
BW Confidential - Issue #4 - October/December 2010