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Published February 4, 2010
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Alberto-Culver Acquires Simple Skin Care

UNITED KINGDOM: Alberto Culver Company has acquired Simple Health & Beauty Limited, a UK-based skin care company, from Duke Street, a mid-market private equity fund, for $390 million. Simple, a mass brand, is expected to generate net sales of approximately $105 million in 2009. It is the second largest skin care brand on a value share basis in the UK, which is Alberto Culver’s largest foreign market, the company said.

“I am very pleased with the opportunity to complete a transaction that gives us a brand well known and respected in its market and a business that will be immediately accretive for Alberto Culver. Simple is a brand that we have followed for a long time due to its strong, differentiated positioning in the skin care category,” said Alberto Culver president and chief executive officer V. James Marino. “This transaction reaffirms our overall focus on beauty care while moving us an important step forward in executing our strategy of expanding and strengthening our skin care portfolio.”

Marino noted that after closing, Alberto Culver will become the No. 2 manufacturer in the U.K. in skin care to complement its existing No. 2 position in hair care. “This is a great acquisition for Alberto Culver, not only from a strategic standpoint, but from a financial perspective as well. This transaction will allow us to efficiently deploy our cash to enhance shareholder value,” he said.

BaWang Rolls Out Herborn Skin Care Range

CHINA: BaWang International has rolled out Herborn, a luxury Chinese herbal skin care brand. The line—which is divided into four series—Natural White, Anti-Wrinkle, Hydra Fresh and Anti—targets white-collar females 25-45 years with high purchasing power, according BaWang International. The
Artist Faye Wong is the face of Herborn, BaWang’s newest skin care line.
brand will be stocked in large department stores and international supermarkets.

BaWang has tapped artist Faye Wong as the brand image ambassador. She will also be featured in TV spots for the new line.

“Leveraging our extensive experience in Chinese herbal personal care products, extensive and nationwide distribution network as well as our comprehensive sales and marketing strategies, we are confident that Herborn will quickly penetrate in the PRC market,” said Chen Qiyuan, chairman and executive director.

Shiseido To Launch DQ Brand In Chinese Drugstores

CHINA: As part of its business expansion initiatives in China, in March Shiseido will roll out DQ, a new brand from Shiseido China Co., Ltd. for drugstores selling both medicine and cosmetics. Sales of Shiseido’s cosmetics products in China are currently conducted mainly in department stores and cosmetic specialty stores; however, Shiseido will further expand points of contact with customers by designating the new drugstore channel as the third sales channel pillar for Shiseido’s China business.

In addition to Shanghai, Beijing and Guangzhou, the new brand will be handled in other major cities in coastal and inland areas, in which plans call for introducing approximately 600 stores in the first year and consecutively expanding areas and handling stores.

The DQ brand name is derived from the initials of the term “Dermal Quotient.” It targets women who are concerned about chronic skin troubles as well as those who are unsatisfied with the skin care effects of conventional cosmetic products, according to the company. The range will feature over 25 SKUs.

In other news, Shiseido has established a Swiss sales unit by acquiring 100% of its former distributor. The company, which is now operating as Shiseido S.A., is based in Geneva. According to Shiseido, the Swiss unit will handle global brand Shiseido products as well as non-Shiseido brands, with the overriding goal of expanding in-store share by enhancing the collective strengths of the Shiseido Group in the market. Shiseido has been selling wares in Switzerland since 1990.

RITA Taps Brasquim as Brazilian Distributor

BRAZIL: RITA Corporation, Crystal Lake, IL, has named Brasquim as the distributor of its personal care cosmetic raw materials in Brazil. The agreement covers the rights to distribute RITA’s entire cosmetic
From l-r: Patrícia Robaina, Mara Raupp, Paula Frisoni, Enilce Oetterer, Fabiana Krolikowski, Jim Cook (RITA Corp.), Cristiano Ruaro and Cristinne Viana.
chemical catalog to the Brazilian personal care market.

Both RITA and Brasquim recognize the huge opportunities in the Brazilian market and are looking forward to participating in this growth utilizing their technical and formulation expertise. The combination of RITA’s extensive knowledge and history in the personal care market, along with Brasquim’s extensive market knowledge will bring the most to its Brazilian customers, according to the companies. Brasquim, a division of Polimate Ltda, is based in Porto Alegre, Brazil.

EnviroSystems Consolidates Distribution in Korea

SOUTH KOREA: EnviroSystems, Inc., a wholly owned subsidiary of Anpath Group, has consolidated its Korean distribution channels by entering into an exclusive distribution agreement with Clebio. Under terms of the three-year accord, all distribution of EnviroTru Disinfectant & Deodorizing Cleaner within the Korean market will be handled by Clebio, according to AnPath Group, which is based in Mooresville, NC. More info: www.envirosi.com

India Sees Rising Demand for Active Ingredients in Personal Care

INDIA: New analysis from Frost & Sullivan on the market for active ingredients in the Indian personal care industry finds that the sector is expected to rise from $190 million in 2008 to more than $329 million in 2014. According to Frost & Sullivan, the rapidly growing personal care end-use market is a fertile breeding ground for active ingredient companies that can offer novel products and easier formulations. Ingredients with increased functional benefits and multi-application profiles are the order of the day, as manufacturers are hoping to make a splash in several segments through better formulations that provide multiple benefits from the same products.

“UV ingredients, in particular, are fuelling the demand for end-product skin creams and skin lightening lotions,” said Frost & Sullivan research analyst Natasha Telles. “This trend is expected to continue as customers become more aware and manufacturers are compelled to use targeted ingredients for specific formulations.”

According to Telles, personal care active ingredient manufacturers need to focus on the scientific efficacy and brand awareness of their products by constantly remaining a step ahead of market trends.“They need to aggressively maintain their first-mover advantage, given the large potential in terms of the raw materials provided by the Indian topography,” she said.

More info: www.frost.com

South African Hair Care Market Study

SOUTH AFRICA: The South African hair care market—both professional and consumer—is growing in double digits and this strong growth is expected to continue into 2011, according to a new report from Diagonal Reports. In South Africa, patterns of consumption of hair services and products differ by consumer segment and by ethnic group. The ethnic African segment is the single largest consumer group, and this market has the most potential.

Chemical relaxing and African hair styling are the most popular services, accounting for almost 80% of salon business, according to data culled by Diagonal Reports. Hair relaxing is the leading service category and will continue to be the mainstay of the African professional and consumer hair care market. There is strong, but yet unmet demand for colorants suitable for using on relaxed hair, according to the report.

Styling—braiding, hair extensions and pieces, dreadlocks and bonding—is the next most important service category in black salons. While these hairstyles can last for up to three months, they require the on-going use of conditioners and treatments to prevent damage and breakage.

According to the market research firm, South African consumers, for reasons of convenience and comfort, need salons and hairdressers to provide complex and labor intensive services. Diagonol says the demand for products that will style and treatrelaxed hair is extensive, including products that would be deemed multi-tasking.

More info: www.diagonalreports.com

L’Occitane To Open Shop in Jordan’s Taj Mall

JORDAN: Al Tajamouat, owner of the Taj Mall, has signed an agreement with the Chalhoub Group to introduce L’Occitane into the country. The natural skin and body care company has more than 1,200 boutiques around the world well as representation in Nordstrom, Sephora and online. It would be the brand’s first shop in Jordan.

Fashion and Beauty Collide at In-Cosmetics’ In-Focus

FRANCE: Fashion will be put under the beauty microscope at In-Cosmetics, as the exhibition’s visionary feature, In-Focus, will explore the creative synergies between the worlds of fashion and beauty. In-Cosmetics will take place April 13-15, in Paris.

Using ingredients as the source of creativity, In-Focus is a platform where formulating chemists, product designers and marketers come together to see, touch and smell what the future holds for the industry.Visitors will embark on an inspirational journey through a festival of truly sensorial textures designed as creative new fabrics and colors directly inspired by fashion and fragrance trends, creating a genuine global “trend book” of the industry made up of creams, gels, elixirs and powders, according to show organizers.

In-Focus is collaborating with design and advertising agency Carlin International to predict three of the fashion trends for 2011, based on the creative work of both avant-garde and renowned haute couture designers. Suppliers scheduled to participate include Arch Personal Care Products, ABC Texture, Affix, BASF, Creations Couleurs, Croda Group, Dow Corning, Gattefossé, Laboratoire BF, Labosphère, Merck, SACI-CFPA, Sinerga, Stéarinerie Dubois, Strand Cosmetics and Symrise.

More info: www.in-cosmetics.com

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