Christine Esposito, Managing Editor09.27.22
CEO Sue Y. Nabi has set a major goal for Coty’s skincare business: to double its sales in the next three years. The company’s strategy includes placing emphasis on its prestige skincare brands that include Lancaster, Orveda, Philosophy, Kylie and SKKN by Kim.
At an investor event held inside Coty’s Monaco Skincare R&D and Manufacturing Center of Excellence on Sept. 21, Constantin Sklavenitis, chief prestige brands officer, discussed Coty’s strategy that includes restaging two venerable brands— Lancaster and Philosophy.
These two powerhouse brands have strayed away from their skincare heritage, according to company officials.
Beecham acquired a majority holding in Lancaster in 1967, and after merging with SmithKline in the late 1980s, sold Lancaster to Joh. A Benckiser in 1990. Lancaster made its way into the Coty portfolio the early 1990s when Coty was purchased by Benckiser.
Over the years, Lancaster became almost exclusively known for its suncare products, according to Sklavenitis.
Officials believe Lancaster has key skincare technologies that resonate with today’s consumer.
For instance, Lancaster debuted one of the first retinol skincare creams in the marketplace and was awarded one of the first retinol patents for cosmetic application of this “gold standard” raw material, according to Coty’s Chief Scientific Officer Dr. Shimei Fan.
Sklavenitis said Coty wants to “bring back the story of the amazing skincare efficacy and superiority of Lancaster.”
This new—but old—direction for the venerable brand will play up its heritage and its deep know-how in skincare by showcasing its expertise in regenerative science.
The tagline in a brand video shared by Coty during the presentation reads: “We are Lancaster and repair is our DNA.”
But the brand will do more than look at its past; in 2023, Coty will have a major launch and revamp its retail presence, both of which will reportedly leverage the fast-growing ultra-premium trend.
Sklavenitis predicted that Lancaster’s new store experience will be “unrivaled.”
Lancaster can also leverage its leadership position in sustainability—a key attribute that consumers want to see in the brands they purchase. In 2021, it became the first-ever sun care brand awarded the C2C Certified Material Health Certificate at the Silver level from the Cradle to Cradle Products Innovation Institute for its Lancaster Sun Sensitive collection, the brand’s clean and vegan range.
Carlino’s brand became wildly popular for products like Hope In A Jar moisturizer. By 2006, when private equity firm The Carlyle Group inked an accord to acquire the brand from Carlino, it was the No. 1 beauty brand on QVC, the No. 1 skincare and bath and body care brand at Sephora USA, and one of the fastest-growing beauty brands in select department and specialty stores.
When Coty acquired Philosophy from The Carlyle Group in 2010, sales were estimated at $200 million.
But like Lancaster, Philosophy also strayed from its “original DNA,” according to Sklavenitis. With a growing focus placed on products like bodywashes, Philosophy’s skincare ranking began to slip, he said.
Coty wants to reinvigorate Philosophy’s expertise in skincare, according to Sklavenitis. He noted, for example, that Carlino invented the first dermatological peels with micro-doses of ingredients that delivered efficacy without irritation.
Philosophy will undergo a total rebrand with a focus on its hero products like Purity, Renewed Hope in a Jar Cream, Ultimate Miracle Worker Cream and Micro Delivery Exfoliator in addition to a new transversal serum that is expected to bow in 2023.
Orveda is an ultra-premium beauty brand added to the Coty portfolio through a licensing accord announced in Q4 2021.
Founded in 2014, Orveda touts vegan, sustainably-minded and genderless products formulated with high concentrations of active ingredients. Nabi was a co-founder of the French brand prior to joining Coty.
Coty plans to expand the brand’s roster with a new serum that will debut in FY24 and expand its distribution.
Orveda has “potential to become a high-end market leader,” Sklavenitis said.
Kylie Skin and SKKN by Kim are also expected to help Coty garner a larger share in prestige skincare.
Sklavenitis called Kylie the “Gen Z toolbox” for skincare. And he said that since its launch in June, SKKN by Kim’s best seller has been its nine-product set that sells for $575.
For instance, Lancaster’s rebranding will start in China, followed by Asia. Philosophy will focus its turnaround in the US and then Europe. Coty will be taking over the existing distribution of Orveda in FY23 before expanding to US and elsewhere. At SKKN, Coty is targeting the US and will then expand into “Anglo Saxon countries.” The Kylie brand will be focused on America and Europe before moving into other regions.
“Our five prestige skincare brands each offer their own sense of purpose, technology, and cater to a specific market segment that shows great potential,” noted Sklavenitis.
At an investor event held inside Coty’s Monaco Skincare R&D and Manufacturing Center of Excellence on Sept. 21, Constantin Sklavenitis, chief prestige brands officer, discussed Coty’s strategy that includes restaging two venerable brands— Lancaster and Philosophy.
These two powerhouse brands have strayed away from their skincare heritage, according to company officials.
Lancaster’s Long History
Lancaster launched in 1948 and became a “powerhouse in skincare,” according to Sklavenitis. In fact, Princess Grace of Monaco was regular user of Lancaster, and the beauty brand was listed as her official supplier in 1965.Beecham acquired a majority holding in Lancaster in 1967, and after merging with SmithKline in the late 1980s, sold Lancaster to Joh. A Benckiser in 1990. Lancaster made its way into the Coty portfolio the early 1990s when Coty was purchased by Benckiser.
Over the years, Lancaster became almost exclusively known for its suncare products, according to Sklavenitis.
Officials believe Lancaster has key skincare technologies that resonate with today’s consumer.
For instance, Lancaster debuted one of the first retinol skincare creams in the marketplace and was awarded one of the first retinol patents for cosmetic application of this “gold standard” raw material, according to Coty’s Chief Scientific Officer Dr. Shimei Fan.
Sklavenitis said Coty wants to “bring back the story of the amazing skincare efficacy and superiority of Lancaster.”
This new—but old—direction for the venerable brand will play up its heritage and its deep know-how in skincare by showcasing its expertise in regenerative science.
The tagline in a brand video shared by Coty during the presentation reads: “We are Lancaster and repair is our DNA.”
But the brand will do more than look at its past; in 2023, Coty will have a major launch and revamp its retail presence, both of which will reportedly leverage the fast-growing ultra-premium trend.
Sklavenitis predicted that Lancaster’s new store experience will be “unrivaled.”
Lancaster can also leverage its leadership position in sustainability—a key attribute that consumers want to see in the brands they purchase. In 2021, it became the first-ever sun care brand awarded the C2C Certified Material Health Certificate at the Silver level from the Cradle to Cradle Products Innovation Institute for its Lancaster Sun Sensitive collection, the brand’s clean and vegan range.
"New" Philosophy
A refresh is underway at Philosophy, too. Executives said the brand will return to tenets that made it a runaway success decades ago when it was founded by Cristina Carlino in 1996.Carlino’s brand became wildly popular for products like Hope In A Jar moisturizer. By 2006, when private equity firm The Carlyle Group inked an accord to acquire the brand from Carlino, it was the No. 1 beauty brand on QVC, the No. 1 skincare and bath and body care brand at Sephora USA, and one of the fastest-growing beauty brands in select department and specialty stores.
When Coty acquired Philosophy from The Carlyle Group in 2010, sales were estimated at $200 million.
But like Lancaster, Philosophy also strayed from its “original DNA,” according to Sklavenitis. With a growing focus placed on products like bodywashes, Philosophy’s skincare ranking began to slip, he said.
Coty wants to reinvigorate Philosophy’s expertise in skincare, according to Sklavenitis. He noted, for example, that Carlino invented the first dermatological peels with micro-doses of ingredients that delivered efficacy without irritation.
Philosophy will undergo a total rebrand with a focus on its hero products like Purity, Renewed Hope in a Jar Cream, Ultimate Miracle Worker Cream and Micro Delivery Exfoliator in addition to a new transversal serum that is expected to bow in 2023.
New Prestige Brands
Coty’s strategy to double its skincare sales also includes its newer brands—Orveda, Kylie and SKKN by Kim.Orveda is an ultra-premium beauty brand added to the Coty portfolio through a licensing accord announced in Q4 2021.
Founded in 2014, Orveda touts vegan, sustainably-minded and genderless products formulated with high concentrations of active ingredients. Nabi was a co-founder of the French brand prior to joining Coty.
Coty plans to expand the brand’s roster with a new serum that will debut in FY24 and expand its distribution.
Orveda has “potential to become a high-end market leader,” Sklavenitis said.
Kylie Skin and SKKN by Kim are also expected to help Coty garner a larger share in prestige skincare.
Sklavenitis called Kylie the “Gen Z toolbox” for skincare. And he said that since its launch in June, SKKN by Kim’s best seller has been its nine-product set that sells for $575.
Regional Roll Out Strategy
Sklavenitis presented an overview of what he called Coty’s “careful and targeted roll out” for each brand within its prestige portfolio.For instance, Lancaster’s rebranding will start in China, followed by Asia. Philosophy will focus its turnaround in the US and then Europe. Coty will be taking over the existing distribution of Orveda in FY23 before expanding to US and elsewhere. At SKKN, Coty is targeting the US and will then expand into “Anglo Saxon countries.” The Kylie brand will be focused on America and Europe before moving into other regions.
“Our five prestige skincare brands each offer their own sense of purpose, technology, and cater to a specific market segment that shows great potential,” noted Sklavenitis.