07.07.06
The Top 50: Our Annual Summer Blockbuster
Okay, okay, maybe we didn’t invent the Summer Blockbuster. After all, Jaws hit the silver screen back in 1975 and The Top 50 didn’t debut until 1978. But there’s no denying the fact that The Top 50, Happi’s review of the leading U.S.-based companies, has become a popular addition to the summer reading lists of many executives in the household and personal product industry.
Well, the reviews are in for fiscal 2005 and while a few companies such as Procter & Gamble, Johnson & Johnson and Coty all get a “thumbs-up” for the results that they’ve posted in 2005 and the first half of 2006, many of the biggest companies in The Top 50 have less-than-stellar reviews to report. Avon and Sara Lee are in the process of reorganizing, and sales at S.C. Johnson and Limited Brands are stalled at or near previous year levels.
New product launches are getting mixed reviews as well. By now, nearly every personal care company has launched an anti-aging line and many of them contain the same ingredients. Where is the new idea that will drive market growth in the future? A lot of industry observers predict that supplements will come to dominate the beauty segment, along with natural-based products and at-home spa concepts. In household cleaning, any product that can get chores done faster and easier will be welcomed by consumers—just don’t expect them to pay a lot for these products.
Aside from new product launches, there’s been a lot of maneuvering behind the scenes as well. Just last month, Alberto-Culver announced plans to spin-off its Sally Beauty division. Meanwhile, Pfizer accepted Johnson & Johnson’s $16.6 billion bid for its consumer healthcare business. Analysts had expected the unit—which includes well-known brands such as Listerine, Visine and Purell—to come with a price tag of $15 billion or so. But the price rose as J&J was forced to outbid rivals such as GlaxoSmithKline and Reckitt Benckiser. Just goes to show you what some companies are willing to pay for tried-and-true brand names.
Procter & Gamble, as it has since The Top 50 premiered, is No. 1 on our list, while Colgate-Palmolive is a distant No. 2. Rounding out the top 10 are S.C. Johnson, Estée Lauder, Avon Products, Ecolab, Johnson & Johnson, Alberto-Culver, Access Business Group and Coty.
We hope you enjoy this edition of The Top 50. As always, we welcome your comments on our ranking, as well as anything else that appears in Happi. Be sure to read our August issue, which will include The International Top 30, our annual look at the largest manufacturers of household and personal products with corporate headquarters outside the U.S.
The Top 50
| 1. Procter & Gamble | Cincinnati, OH | $40 billion | |
| 2. Colgate-Palmolive | New York, NY | $9.9 billion | |
| 3. S.C. Johnson | Racine, WI | $6.5 billion | |
| 4. Estée Lauder | New York, NY | $6.3 billion | |
| 5. Avon | New York, NY | $5.6 billion | |
| 6. Ecolab | St. Paul, MN | $4.5 billion | |
| 7. Johnson & Johnson | New Brunswick, NJ | $4.0 billion | |
| 8. Alberto-Culver | Melrose Park, IL | $3.2 billion | |
| 9. Access Business Group | Ada, MI | $2.9 billion | |
| 9. Coty | New York, NY | $2.9 billion | |
| 11. Johnson Diversey | Sturtevant, WI | $2.8 billion | |
| 11. Limited Brands | Columbus, OH | $2.8 billion | |
| 13. Clorox | Oakland, CA | $2.4 billion | |
| 14. Mary Kay | Dallas, TX | $2.2 billion | |
| 15. Sara Lee | Chicago, IL | $1.9 billion | |
| 16. Church & Dwight | Princeton, NJ | $1.4 billion | |
| 17. Revlon | New York, NY | $1.3 billion | |
| 18. Pfizer | New York, NY | $1.2 billion | |
| 19. Blyth | Greenwich, CT | $1.0 billion | |
| 20. Elizabeth Arden | Miami Lakes, FL | $920 million | |
| 21. Huish | Salt Lake City, UT | $750 million | |
| 22. Yankee Candle | South Deerfield, MA | $601 million | |
| 23. Schering-Plough | Kenilworth, NJ | $537 million | |
| 24. Acuity | Atlanta, GA | $535 million | |
| 25. Nu Skin | Provo, UT | $484 million | |
| 26. John Paul Mitchell Systems | Beverly Hills, CA | $460 million | |
| 27. Jafra | Westlake Village, CA | $430 million | |
| 28. Markwins | City of Industry, CA | $325 million | |
| 29. Del Labs | Uniondale, NY | $311 million | |
| 30. Combe | White Plains, NY | $300 million | |
| 31. Prestige Brands | Irvington, NY | $296 million | |
| 32. Chattem | Chattanooga, TN | $279 million | |
| 33. Phoenix Brands | Stamford, CT | $275 million | |
| 34. WD-40 Company | San Diego, CA | $263 million | |
| 35. Playtex | Westport, CT | $250 million | |
| 36. Liz Claiborne | New York, NY | $210 million | |
| 37. Orange Glo | Greenwood Village, CO | $200 million | |
| 38. Parlux | Fort Lauderdale, FL | $182 million | |
| 39. Turtle Wax | Chicago, IL | $178 million | |
| 40. Herbalife | Los Angeles, CA | $163 million | |
| 41. NCH | Irving, TX | $150 million | |
| 42. OPI | N. Hollywood, CA | $123 million | |
| 43. BeautiControl | Carrollton, TX | $122 million | |
| 44. Bonne Bell | Lakewood, OH | $120 million | |
| 45. Gojo | Akron, OH | $105 million | |
| 46. Burt’s Bees | Durham, NC | $100 million | |
| 46. Merle Norman | Los Angeles, CA | $100 million | |
| 46. Rochester Midland | Rochester, NY | $100 million | |
| 46. Spartan | Maumee, OH | $100 million | |
| 50. State | Cleveland, OH | $99 million | |
1. Procter & Gamble
Cincinnati, OH
513.983.1100
www.pg.com
Sales: $40 billion for household, personal and oral care products. Corporate sales: $56.7 billion. Net income: $7.2 billion for the year ended June 30, 2005.
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A.G. Lafley |
P&G Beauty—Susan E. Arnold, vice chairman, P&G Beauty; Heiner Gürtler, group president, global prestige and professional care; Paolo De Cesare, president, global skin care, personal cleansing and deodorants; Christopher de Lapuente, president, global hair care; Carsten Fischer, president, global professional care; Melanie Healey, president, global feminine care; Hartwig Langer, president, global prestige products.
Family Health—R. Kerry Clark, vice chairman, P&G Family Health; Mark A. Collar, president, global pharmaceuticals and personal health; Charles E. Pierce, president, global oral care; Martin Riant, president, global baby and adult care; David S. Taylor, president, global family care.
Household Care—Bruce L. Byrnes, vice chairman, P&G Household Care; Dimitri Panayotopoulos, group president, global fabric care; Jorge S. Mesquita, president, global home care; Richard G. Pease, senior vice president, human resources, global household care.
Global Operations: Robert A. McDonald, vice chairman, global operations; Werner Geissler, group president, central and eastern Europe, Middle East and Africa; Laurent L. Philippe, group president, western Europe; Robert A. Steele, group president, North America; Ravi Chaturvedi, president, northeast Asia; Deborah A. Henretta, president, ASEAN, Australasia and India; Daniella Riccardi, president, greater China; Jorge A. Uribe, president, Latin America.
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Susan E. Arnold |
New Products: Beauty care—Olay Quench hand and body lotions, Olay Anti-Aging, Olay Moisturinse in-shower body moisturizer, Olay Touch of Sun, Olay Ribbons bodywash, Pantene Pro-Health, Pantene Color Expressions, Nice’n Easy Root Touch Up, Aussie Aussome Volume, Clairol Natural Instincts Shine Happy, Lacoste Touch of Pink fragrance. Oral care—Crest Pro Health Rinse, Crest Whitening plus Scope Extreme, Crest Whitestrips Renewal. Personal care—Kandoo for Toddlers, Zest Tangerine-Mango Twist bar soap and bodywash. Fabric care—Tide with a touch of Downy, Tide Coldwater and Downy Simple Pleasures, Downy Plus Whitening, Gain Joyful Expressions. Home care—Febreze Air Effects, Febreze Noticebles, Mr. Clean Magic Reach, Swiffer Carpet Flick.
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Olay Ribbons bodywash is the latest extension of the best-selling Olay skin care brand. |
Last year, P&G renamed its three global business units (GBU): P&G Beauty, P&G Family Health and P&G Household Care. Each GBU and the market development organization is led by a vice chair, all of whom report to the CEO. Moreover, the acquisition promises to give P&G better balance. Company executives said that with the acquisition of Gillette, about half of P&G’s sales will come from baby, family and household categories and half will come from beauty and health businesses. Gillette has also boosted P&G’s long-term outlook. The company now expects annual growth of 5-7%, up from 4-6%, through 2010.
While the Gillette acquisition will provide a big jolt to P&G’s 2006 results, the company did just fine on its own in 2005. Corporate sales rose 10% last year, with every GBU delivering volume growth of 8% or better. With the acquisition of Gillette, the company now boasts 22 billion-dollar brands with Dawn dishwashing liquid cracking the billion-dollar mark in fiscal 2005. Looking ahead, P&G had 13 global brands with sales of $500 million or more, and many of them are expected to top the $1 billion mark in the coming years.
By region, North America accounted for 48% of 2005 sales, followed by western Europe, 24%; emerging markets, 23% and northeast Asia, 5%.
By business sector, the beauty division posted its third consecutive year of double-digit growth in sales, profit and volume. Sales reached $19.5 billion, and net earnings climbed to $2.9 billion. The company credited the gains to organic growth in all geographies encompassing several brands. For example, Pantene, already the world’s leading hair care brand with more than $2 billion in sales and more than 10% global share, posted 13% volume growth. Head & Shoulders, the No. 2 shampoo brand in the world, grew volume 15%, achieving record global market share of nearly 10%. Olay, one of P&G’s fastest growing billion-dollar brands, grew global volume nearly 30%, driven by continued momentum of the Regenerist and Total Effects lines, and new innovations like Olay Quench, a hand and body moisturizing treatment with superior skin benefits. In addition, the prestige and professional business posted strong top-line gains with global sales improving more than 10%. P&G Beauty also has a strong stable of potential billion-dollar brands with sales in the range of $500 million to $1 billion that are driving growth. Hugo Boss, along with Lacoste—which is now 10 times bigger than when P&G acquired the license in 2001—further strengthened its global leadership position in men’s fine fragrances. SK-II, a prestige skin care brand, grew volume 13% behind innovations such as De-Wrinkle Essence and Facial Lift Emulsion.
But not every beauty category was a success story. Growth last year in U.S. hair care did not meet expectations. As a result P&G will cut underperforming brands. In hair colorants, the company is rebuilding its innovation pipeline.
Household care sales rose more than 9% to $18.4 billion, but net earnings were flat at $2.5 billion. Volume improved 8%. Household care represents about 33% of the company’s sales and earnings, and contributes some of the highest margins in the company. Tide and Downy both posted double-digit sales gains. But profit margins were affected by high commodity costs in several businesses. For example, in fabric care and home care, P&G increased its list prices in markets where the competitive environment would allow. Yet, the benefits from the price increases began to impact the company’s results late in the fiscal year and only partially offset higher materials costs. In addition, P&G implemented many new internal cost savings programs in all areas of the business to help reduce the need to raise consumer prices for its brands.
Growth remained strong in fiscal 2006. For the third quarter ended March 31, P&G’s sales rose 21% to $17.2 billion. Organic sales increased 6%. Net income was up 37% to $2.2 billion. For the nine months, sales jumped 19% to $50.3 billion. Net income improved 23% to $5.5 billion.
2. Colgate-Palmolive
New York, NY
212.310.2000
www.colgate.com
Sales: $9.9 billion for oral, personal and home care products. Corporate sales: $11.4 billion. Net income: $1.3 billion.
Key Personnel: Reuben Mark, chairman and chief executive officer; Ian M. Cook, president and chief operating officer; Javier G. Teruel, vice chairman; Michael J. Tangney, executive vice president and president, Colgate-Latin America; Stephen C. Patrick, chief financial officer; Andrew D. Hendry, senior vice president, general counsel and secretary; Esmond Alleyne, vice president, global information technology.
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Colgate keeps expanding its winning Softsoap franchise. |
New Products: Oral care—Colgate Propolis and Colgate Luminous toothpastes, MicroSonic toothbrush and Colgate 360° toothbrush. Personal care—Palmolive Aroma Crème, Speed Stick 24/7 deodorant with micro-absorbers, Irish Spring MicroClean bar soap, Softsoap Kitchen Fresh Hands and Softsoap Shea Butter liquid hand soaps, Softsoap Pure Cashmere moisturizing body wash, Speed Stick deodorant with Irish Spring scents. Home care—Palmolive with Bleach Alternative, Ajax Ruby Red Grapefruit and Palmolive Oxy Plus dish liquids.
Comments: Corporate sales rose 7.5%—the fastest gain in a decade—and net income improved 2%. Yet, gross margin, that all-important measuring stick for Colgate-Palmolive, actually dropped 70 basis points to 54.4%. Advertising costs rose 12% to nearly $1.2 billion.
At the same time, the company remains committed to cost-cutting as part of its four-year, 2004 restructuring program. During 2005, Colgate was focused on developing a global supply chain with fewer, more sophisticated state-of-the-art global and regional manufacturing centers. Colgate is consolidating business support functions for subsidiaries around the world into global and regional shared service centers. Globalizing procurement, another important element of the 2004 restructuring program, is achieving significant savings for raw and packaging materials as well as for indirect purchases such as personal computers, telecommunications, printed materials, advertising and promotion. Colgate expects to save $325-$400 million by 2008.
Last year, sales in the oral, personal and home care segments rose 8% to nearly $9.9 billion. Volume rose 5.5%. More specifically, by product category, oral care accounted for 38% of corporate sales, followed by home care (26%), personal care (23%) and pet nutrition (13%).
Within the oral, personal and household care businesses, Colgate divides its sales on a regional basis. Europe accounted for 24% of sales, followed by Latin America (23%), North America (22%), Asia/Africa (18%) and Australia (13%).
European sales increased 4.5% and unit volume improved 6.5%. In both cases, the Gaba acquisition provided a 4% boost. Gaba is Colgate’s therapeutic oral care company in Europe. According to the company, Gaba achieved broad consumer acceptance and a leading position in the pharmacy channel by working closely with the oral health care community. In Italy, for example, Gaba’s pharmacy toothpaste market share has grown from 6.8% to 19% during the past six years with a strategy that emphasizes professional endorsement and clinical effectiveness and focuses on developing long-term partnerships. The Gaba program targets dental professionals, pharmacists, universities and dental students and is now being expanded throughout the Colgate organization.
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Icy Surge is the newest extension to the Speed Stick line. |
In North America, Colgate’s sales rose 8% and unit volume was up 6.5%, but those results exclude the divested laundry detergent businesses. During the year, the company expanded its No. 1 position in the U.S. toothpaste market to a record 35.3% share. Sales and operating profit increased 5.5% and 3%, respectively, as higher sales were partially offset by an increased level of advertising and higher raw and packaging material costs.
Finally, in Asia/Africa, unit volume was up 6%, sales rose 6.5% and operating profit increased 3%. The company said Colgate Max Fresh and Colgate Vitamin C Fresh toothpastes and the Colgate 360° manual toothbrush drove growth in oral care throughout the region.
Nearly a year ago, Colgate sold its North American and southeast Asian heavy-duty laundry detergent brands. They included such well-known names as Fab, Dyna- mo, Artic Power, ABC, Cold Power and Fresh Start.
For the first quarter of 2006, Colgate’s worldwide sales and unit volume, as reported including divestments, grew 4.5%. Excluding divestments, worldwide sales and unit volume grew 7%. Increased global pricing of 1.5% was offset by negative foreign exchange of 1.5%. Top line growth was supported by record level advertising spending. Reported net income was $324.5 million.
As reported, gross profit margin was 54.5%. Excluding restructuring charges, gross profit margin was 56.3%, reaching an all-time record and a 110 basis point improvement versus the previous year’s quarter.
“We are very pleased to begin 2006 with excellent top and bottom line growth, exceeding expectations and building on the strong growth momentum we saw in 2005,” said Reuben Mark, chairman and CEO. “We are especially encouraged by the 110 basis point improvement in gross profit margin during the quarter, to an all-time record and the largest quarterly gross profit increase in over three years. This increase, aided by our ongoing savings programs, the benefits from restructuring, increased pricing and a continued shift toward higher margin products, allowed us to fund a double-digit increase in advertising supporting Colgate brands, while at the same time delivering a double-digit increase in earnings per share.”
Company executives noted that unit volume in oral care was up significantly in every geographic division, and was up 10% worldwide.
According to Ian Cook, president and COO, the company’s global toothpaste leadership continues to expand with market share increases both in the U.S. and in key countries around the world. Colgate’s worldwide growth in manual toothbrushes also continues to strengthen, with global market share reaching another record high.
“Colgate’s fundamentals are very strong. Despite sharply rising energy costs, we expect our gross profit margin, before restructuring charges, to be up nicely for the year as a result of our ongoing cost-savings initiatives, improved pricing, restructuring and promotional savings,” added Mr. Mark.
By region, North America accounted for 22% of first quarter sales. The region reported a 1.5% gain in sales and a 1% increase in volume. The marginal increase was due to the sale of the North American detergent business. The good news is that Colgate’s leadership of the U.S. toothpaste market continues to grow, with its ACNielsen market share reaching 36.5% year to date, up 30 basis points versus the year ago period and over three share points ahead of the number two competitor.
In the U.S., new products are generating strong volume and market share growth. In oral care, strong growth in Colgate Luminous and Colgate Max Fresh toothpastes and Colgate 360° manual toothbrush contributed to the share gains. New products contributing to growth in other categories include Ajax Ruby Red Grapefruit and Palmolive Oxy Plus dish liquids, Irish Spring MicroClean bar soap, and Softsoap Kitchen Fresh Hands and Softsoap Shea Butter liquid hand soaps.
Latin America accounted for 24% of sales in the first quarter. Dollar sales grew 17.5% in the first quarter to a record level. Unit volume for the region grew 7% on top of excellent growth in the year ago period. All 18 countries in the region contributed to the strong volume gains, led by Brazil, Mexico, Venezuela, Colombia, Central America and Argentina. Positive foreign exchange added 4% and higher pricing contributed 6.5%. Latin American operating profit increased 29%, to an all-time record level even after a strong double-digit increase in advertising behind Colgate brands during the quarter.
Colgate continues to build its strong leadership in oral care throughout Latin America with toothpaste market share gains seen in nearly every country in the region, reaching record highs in Venezuela, Colombia and Ecuador. New products contributing to these gains include Colgate Max Fresh and Colgate Sensitive Whitening toothpastes and the relaunch of Colgate Total toothpaste with new packaging and strong advertising highlighting the toothpaste’s ability to provide complete 12-hour protection while actively fighting 12 teeth and gum problems.
Europe/South Pacific accounted for 24% of sales in the first quarter. Volume grew 8%, excluding divestments, and strong gains in the UK, Germany, Denmark, Spain, Italy, Ireland, Greece, Holland, Poland, the Baltic States, Hungary and Australia more than offset challenging economic conditions in France. However, dollar sales in the region, excluding divestments, declined 3.5%, as strong unit volume growth was more than offset by 9% negative foreign exchange and negative pricing of 2.5%. As reported, Europe/South Pacific sales declined 4% and unit volume grew 7.5%. Colgate maintained its oral care leadership in Europe, led by toothpaste market share gains in the UK, Spain, Greece, Ireland, Holland, Austria, Poland, Czech Republic, Slovenia and Bulgaria.
Greater Asia/Africa accounted for 17% of sales. In the first quarter, sales and unit volume, excluding divestments, grew 8.5% and 7%. Strong volume gains were recorded in India, Vietnam, Hong Kong, Malaysia, Thailand, Russia, Ukraine, Turkey, Saudi Arabia, the Gulf States and South Africa. Greater China volume was even with the very strong 18% growth in the year ago quarter, with dollar sales up in the mid single-digits. Colgate strengthened its oral care leadership in the region, led by toothpaste market share gains in greater China, India, Hong Kong, Russia and Turkey. Regional toothbrush market shares for the Colgate equity reached a record high during the quarter. Successful new products driving the oral care growth include Colgate Max Fresh, Colgate Propolis and Darlie Tea Care toothpastes, Colgate 360° manual toothbrush and Colgate MicroSonic battery-powered toothbrush.
In May, Colgate completed the acquisition of 84% of Tom’s of Maine for approximately $100 million.
“We are excited to move forward on this opportunity to enter the fast-growing naturals category with Tom’s of Maine, the No. 1 brand in oral care and a leader in personal care in that category,” said Mr. Mark. “This strategically important acquisition gives us access to a loyal, emerging consumer group and allows us to accelerate the growth of Tom’s of Maine by extending its reach in the U.S. and in Colgate’s strong markets outside the U.S.”
3. S.C. Johnson
Racine, WI
262.260.2000
www.scjohnson.com
Sales: $6.5 billion for the year ended June 30, 2005, but that total includes sales of food management products such as Ziploc storage bags.
Key Personnel: H. Fisk Johnson, chairman and chief executive officer; Jane M. Hutterly, executive vice president, worldwide corporate and environmental affairs; Darcy Massey, senior vice president, worldwide manufacturing.
Chief Scientific Officer: Richard S. Hutchings, Ph.D., senior vice president, worldwide, research development and engineering.
Chief Marketing Officer: David L. May, president, North America.
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S.C. Johnson’s new Glade Glass Scents fragrance dispensers. |
New Products: Pledge Duster Plus, Pledge Dust and Allergen, Glade Glass Scents, Glade Scented Oil Candle, Windex Multi-task Sparkling Lime; Windex Dry Microfiber Cloths, Scrubbing Bubbles Automatic Shower Cleaner, Ziploc Double Zipper Seal, Ziploc Big Bags, Off! Skintastic Insect Repellent Clean Feel, Off! Active Insect Repellent IV.
Comments: After surging 18% in 2004, sales were flat last year for privately-held S.C. Johnson. Still, the company made several notable moves in environmental stewardship and was honored with a variety of awards for social consciousness.
On Nov. 1, S.C. Johnson started a 3.2 megawatt gas turbine/generator at its Waxdale, WI manufacturing plant. The natural gas-powered turbine is the second of two now operating at the company’s largest manufacturing facility in Racine, WI. Generating a total of 6.4 megawatts of electrical power, the two turbines meet the facility’s daily base-load electrical demand while recovered heat from the turbines’ exhaust also produces nearly 40,000 pounds per hour of plant steam.
The startup made S.C. Johnson the first consumer goods packaged plant in the Midwest to produce nearly all of its own energy through clean-burning technologies. The twin turbines are fueled by natural gas and waste methane generated by the Kestrel Hawk Landfill located near the Waxdale facility. As a result, the turbines have significantly reduced S.C. Johnson’s usage of heavily-coal dependent electricity along with emissions of carbon dioxide, greenhouse gases and other pollutants in southeastern Wisconsin.
In January, for the second year in a row, S.C. Johnson was listed in the Top 10 of the “100 Best Places to Work For” in America, according to Fortune. The company ranks 10th on this year’s list.
“As a family company, S.C. Johnson’s unique culture is based on respect, fairness, inclusion and fun in the workplace,” said S.C. Johnson chairman and CEO Fisk Johnson. “Our ranking on the list is based in large part on the opinions of the people who work here, and that means a great deal to me that those working at the company truly feel that SCJ is a great place to work.”
In addition to the Top 10 overall ranking, S.C. Johnson was also recognized for paid sabbaticals, telecommuting, excellent compensation practices and unusual perks such as retiree lifetime memberships to the company’s fitness and aquatic center. S.C. Johnson was also commended for its devoted workforce and low turnover rate of 2%.
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S.C. Johnson’s Automatic Shower Cleaner with Scrubbing Bubbles makes cleaning the shower easier than ever. |
In May, S.C. Johnson’s operations in France and the UK were named on the list of 100 Best Workplaces in Europe. The company received the Awards at the Best Workplaces in Europe Conference and awards dinner at the German Ministry of Foreign Affairs in Berlin on May 17.
“It’s great to receive this recognition as it reflects that our people value our unique culture, and the programs and policies that support and sustain it,” said Mr. Johnson. “As a family company, S.C. Johnson is committed to maintaining a working environment where our people feel truly valued and respected for what they do every day to ensure we remain a global leader in our industry.”
The European List of Best Workplaces is selected from the companies appearing on the national Best Workplaces lists in each of 15 European countries that participate. This is the first time that S.C. Johnson’s operation in the UK has made the prestigious list after it ranked 10th on the country’s Best Workplaces list. It is the third time the company’s business in France, which placed second on their national list, has been named a top workplace in Europe. S.C. Johnson Germany and S.C. Johnson Italy were also recognized on their individual country’s Great Place to Work lists.
“To have two of our operations recognized as among the Best Workplaces in Europe is testament to the importance of building trust, no matter where people work,” said Patrick O’Brien, president for S.C. Johnson in Europe and Africa/Near East. “Our focus on creating innovative products within an open and supportive working environment encourages the most talented people to join and stay at S.C. Johnson, which ensures our continued success.”
4. Estée Lauder
New York, NY
212.572.4200
www.esteelauder.com
Sales: $6.3 billion. Net income: $406 million for the year ended June 30, 2005.
Key Personnel: Leonard A. Lauder, chairman; Ronald S. Lauder, chairman, Clinique Laboratories; William P. Lauder, president and chief executive officer; Patrick Bousquet-Chavanne, group president; Cedric Prouvé, group president, international; Philip Shearer, group president; Daniel J. Brestle, chief operating officer; Amy DiGeso, senior vice president, global human resources; Evelyn H. Lauder, senior corporate vice president; Harvey Gedeon, executive vice president, global research and development/corporate product innovation; Malcolm Bond, executive vice president, global operations; Richard W. Kunes, executive vice president, chief financial officer; Sara E. Moss, executive vice president, general counsel and secretary; Sally Susman, executive vice president, global communications.
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Estée Lauder is appealing to a younger consumer base with the introduction of Sean John and other brands. |
New Products: Estée Lauder—Perfectionist Power Correcting Patch, Go Tan Air-Brush Self-Tan Spray for Body, DayWear Plus SPF 30, Pure White Linen, Tom Ford Estée Lauder Azuree Collection, High Gloss, Illusionist Intense Mascara, Pure Color EyeShadow. Aramis—Vintage Edition Set. Clinique—Pore Minimizer Thermal Active Skin Refiner, Kohl Shaper for Eyes, Repairwear Eye Cream, Repairwear Intensive Lip Treatment, Repairwear Makeup, SSFM Lip Balm SPF 15, SSFM Electric Shave Primer, Take the Day Off Cleansing Balm, Colour Surge Butter Shine Lipstick, Blushing Blush, Pore Minimizer Oil-Blotting Sheets, Turnaround Concentrate, Turnaround 15-Minute facial, Liquid Facial Soap, All About Eyes Concealer, Eye Definer Brush, Super City Block SPF 40, Derma White line (limited distribution), Perfectly Real Compact Makeup, SSFM Exfoliating Body Wash, SSFM Soothing Shave Oil, SSFM Hair Maximizing Shampoo, SSFM Hair Maximizing Serum, Suncare UV Response Body SPF 50, Suncare UV Response Face SPF 50, CX Antioxidant Rescue Serum, CX Protective Base SPF 40, CX Soothing Concealer, CX Colour Corrector, Colour Surge Butter Shine Sheers, Lip Brush. Prescriptives—Flawless Skin Total Protection Makeup, Colorscope Eye and Cheek Color, Moonbeam Extreme Chromatic Lipcolor, Custom Blend Lip Gloss, Magic Eye Shadow Effects, Moonbeam Reflective Eyeliner, Intensive Rebuilding Lifting Serum, Flawless Total Protection Pressed Powder, Flawless Total Protection Concealer, Anti-Age Advanced Protection Lotion, Sunsheen Cooling Bronzer Powder, Rain Gloss– April, Intensive Rebuilding Lip Shaper. Origins—A Perfect World Nighttime antioxidant mask and lip guardian, Paradise Found Balinese body cream, Finger Touch Relaxing massage oil, cocoa therapy Comforting cream bath and skin-softening body cleanser, Natural Luxuries 100% vegetable-based soap and triple-wick candles, Next of Skin Modern moisture makeup SPF 15, Halo Effect instant illuminator for eyes (limited edition), Dr. Andrew Weil for Origins Plantidote Collection which includes Face Serum, Face Cream, Mega-Mushroom Supplement and Nite-trition Restful Sleep Supplement, Spice Odyssey Foaming body rub, Flower Fusion Hydrating lip color with floral extracts, 100% Organic Nourishing oil collection, Shedonism collection of body butter, bath syrup and shave mousse, Liquid Lip Shimmer, Origins for Men collection of shaving and shower products. Tommy Hilfiger—Beyonce True Star Gold, True Star Satin Powder, True Star Satin Body Cream, True Star Gold Body Lotion, Tommy Summer/Tommy Girl Summer 2006, Tommy 10/Tommy Girl 10. MAC—MAC Prep + Prime, Lustrevision, Lustrelong (14 new SKUs), Soft Nylon Bag Collection, Creations, C-Squeeze Fragrance, Naturally Eccentric, Hand Crafted Fluidline Re-launch, Paint Strokes, Veluxe Pearl Ext-Idol Eyes, Glitter Eye Liner-Idol Eyes, Ornamentalism, Luxuriations, Cremesticks, Holiday Part I, Saks Triple Points Toolbox, Nordstrom 24-7, Cache- Holiday ’05 Bags, Who’s That Lady, Holiday Part II, Federated Quad, Lingerie, Disney Tint Toons, Chromeglass, Catherine Deneuve, Culturebloom, Ultracheek, Touch Up Stick, Studio Liquid Foundation, Repromoted Brushes, Loose Blot Powder, Classic Coordinates, Dejarose, Saks Triple Points Toolbox, Temperly Compact, Sweetie Cake, Spring Bags, Liquidlast Liner, Skincare Sets, Sundressing, See Thru Colour, Summer Quad, Boy Beauty, Lure- Summer Bronzing, She-Shines Pigment Ext, Patternmaker-Nordstrom, Rebelrock Anniversary, Goldplay Anniversary, Turquatic. La Mer—The Essence, The Body Crème, The Cleansing Fluid, The Skincolor. Donna Karan—DKNY Red Delicious. Aveda—Shampure Candle, Damage Remedy Family, Pure Abundance Potion. Jo Malone—Tea & Basil Candle Collections, Pomegranate Noir Collection, Luxury Fragrance Combining Candle, Napa Leather Pot Pourri, Pot Pourri Collection, Deluxe Soap Collectio, Nectarine Blossom & Honey Collection (Cologne, Candle, Body Crème), Lime Basil & Mandarin Home Candle. Bumble & bumble—Bb. Shine and Hair Powders. Michael Kors—Leg Shine Shade Extensions in Shimmer and Bronze, Michael Kors With Love From, Michael EDP with Lariat, Island Michael Kors Fiji. Darphin—Pérdermine Wrinkle Corrective Serum. American Beauty—Wonderful, Fall Color Story, Holiday Color Story, Spring Color, Superplush, Lip Tint, Self Tanner, Summer Color. Flirt!—Fall Color Story, Holiday Sets, Serena Williams Collection, Spring Color Story, I'm Whipped, Summer Color. Good Skin—Balance & Brighten Collection. Grassroots (new). MAC Sean John—Unforgivable. To be launched: Origins—Youthtopia Skin Cream and Lotion, Dr. Andrew Weil for Origins Face Cleanser, Modern Friction Body. Michael Kors—Michael Kors eau de toilette 1.7oz. (September). MAC Sean John—Body Spray, Deo Stick, Shower Gel, Women’s.
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Like many other personal care companies, nutraceuticals are a growing portion of Estée Lauder’s business. |
Sales in Europe, the Middle East and Africa increased 13% to $2.1 billion due to higher sales in the UK, Spain, Portugal, South Africa and Greece, as well as improvements in travel retail. In fact, in a note to shareholders, chairman Leonard Lauder called travel the No. 1 consumer luxury in the world.
Sales in Asia/Pacific were up 8% to $835.5 million on the strength of gains in China, Hong Kong, Australia and Taiwan, partially offset by lower sales in Japan.
By product category, makeup sales rose nearly 13% to more than $2.4 billion. The gain included approximately $62 million of net sales from the launches of American Beauty and Flirt!, and higher sales of Bobbi Brown and Stila products, collectively. The launches of Superbalanced Compact Makeup SPF 20 and Color Surge eyeshadow from Clinique and Lash XL Maximum Length mascara, Tender Blush, Pure Pops Brush-on Color and AeroMatte Ultraluscent pressed powder by Estée Lauder provided a boost too. Also contributing to sales growth was approximately $70 million of increased sales from MAC’s Small eyeshadow, Studio Fix, Lustreglass and Pro Longwear lipcolor. Partially offsetting these increases was a decline of $38 million in sales of the High Impact mascara and High Impact eyeshadow collections and the Glosswear line of products by Clinique as well as of Pure Color Lip Vinyl by Estée Lauder.
Skin care sales rose nearly 10% to more than $2.3 billion. Approximately $179 million of the gain was due to the introduction of Future Perfect Anti-Wrinkle Radiance crème SPF 15 and the launches of the Perfectionist and Re-Nutriv product lines by Estée Lauder, launches of Superdefense Triple Action moisturizers SPF 25 and certain Repairwear products by Clinique, the introduction of certain American Beauty and Good Skin products and the launch of Modern Friction by Origins. On a combined basis, strong sales of products in Clinique’s 3-Step Skin Care System and The Lifting Face Serum and The Lifting Intensifier by La Mer added $29 million to the sales total. Partially offsetting these increases was a decrease of approximately $52 million in sales of Perfectionist Correcting Serum for Lines/Wrinkles, Idealist Micro-D Deep Thermal Refinisher and the White Light and LightSource lines of products by Estée Lauder.
Fragrance sales increased 3% to $1.2 billion due, in large part, to the launch of DKNY Be Delicious and DKNY Be Delicious Men, True Star from Tommy Hilfiger, Lauder Beyond Paradise Men from Estée Lauder, Happy To Be from Clinique and Donald Trump the Fragrance. But those gains were partially offset by declining sales of Estée Lauder Beyond Paradise, Aramis Life, Clinique Simply, Tommy Jeans and Tommy from Tommy Hilfiger and Lauder Intuition Men.
Hair care sales rose almost 10% to $274 million. The gain was due to sales growth from Aveda and Bumble and bumble products. The Aveda gains were due to the launch of new professional color products and the introductions of Pure Abundance and Damage Remedy.
Only sales in the “other” category slipped, falling 15% to $26.6 million.
The close of fiscal 2005 marked William P. Lauder’s one-year anniversary as CEO. And while Estée Lauder’s recent history has been one of acquisition, Mr. Lauder proudly noted that 70% of sales came from brands the company created on its own. Lauder’s newest brand, Grassroots, debuted last August. It includes products for face, body, hair, post-pregnancy, babies, kids and pets. Blended from essential oils, the formulas do not contain animal ingredients, artificial colors or fragrances. In September, Estée Lauder announced the sale of Stila. The deal was closed in March 2006.
For the nine months ended March 31, 2006, the company reported a 2% gain in sales to $4.86 billion. But net income fell nearly 20% to $275.4 million.
Late last month, Women’s Wear Daily reported that Patrick Bousquet-Chavanne may be headed to Liz Claiborne as Paul Charron’s successor. At presstime, no announcement had been made (see also, Liz Claiborne’s entry in The Top 50, p. 128).
5. Avon Products
New York, NY
212.282.5000
www.avon.com
Sales: $5.6 billion for cosmetics, toiletries and fragrances. Corporate sales: $8.1 billion. Net income: $848 million.
Key Personnel: Andrea Jung, chairman and chief executive officer; Geralyn R. Breig, senior vice president and global brand president; Brian C. Connolly, executive vice president, global sales strategy; Charles Cramb, executive vice president, finance and technology, and chief financial officer; Elizabeth A. Smith, executive vice president and president, Avon North America and global marketing; Lucien Alziari, senior vice president, human resources; Gina R. Boswell, senior vice president and chief operating officer, North America; Pauline J. Brown, senior vice president, corporate strategy and global business development; Harriet Edelman, senior vice president, business transformation and chief information officer; Bennett R. Gallina, senior vice president, China, Western Europe, the Middle East and Africa; Nancy Glaser, senior vice president, global communications; Gilbert L. Klemann II, senior vice president and general counsel; Dennis Ling, senior vice president, global finance and treasurer; Amilcar Melendez, senior vice president, Latin America; John F. Owen, senior vice president, global supply chain; James Wei, senior vice president, Asia Pacific.
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Avon offers a variety of ‘solutions’ for problem skin. |
New Products: Instant Manicure dry nail enamel strips, Anew Clinical Line & Wrinkle Corrector, Skin So Soft Bug Guard Plus Picaridin, Slim & Sleek Leg Perfector.
Comments: Times are tough for the world’s biggest direct seller of cosmetics. In November, Avon announced a four-point plan to restore sustainable growth. The plan includes:
• Committing to brand competitiveness by focusing R&D resources on product innovation and by increasing advertising.
• Winning with commercial edge by more effectively utilizing pricing and promotion, expanding sales leadership programs and improving the representative’s earnings opportunity.
• Elevating organization effectiveness by redesigning corporate structure to eliminate layers of management to take full advantage of Avon’s global scale and size.
• Transforming the cost structure so that costs are aligned with revenue growth.
In line with the turnaround plan, the company also has a multi-year restructuring plan in place that calls for delayering; i.e., bring senior management closer to operations; exit unprofitable businesses, including Becoming in the U.S.; and move certain services from markets within Europe to lower cost shared service centers.
These moves come at a time when Avon still posted a 5% gain in sales last year. Net income was essentially flat. The company credited the sales gain to an increase in units and the number of active representatives. Revenue was up in Latin America and Europe, but results in Asia Pacific were flat due to a sales decline in China. North American sales fell 5% to $2.5 billion, due to a decline in beauty sales and the repositioning of Beyond Beauty in the U.S., which represents 85% of the North American segment.
European sales rose 9% to nearly $2.3 billion, led by a 15% gain in Central and Eastern Europe. Latin American results were even better. The region reported a 17% gain in sales to almost $2.3 billion. With the exception of Mexico, every country in the region posted sales growth. Sales in Asia-Pacific were flat, but still topped $1 billion. Sales fell 7% in China, but Avon has high hopes for 2006 after the government issued a direct selling license to Avon.
On Jan. 1, 2006, the company began managing operations in central and eastern Europe and also China as stand-alone operating segments.
For the first quarter of 2006, sales rose 6% to $2 billion. Active representatives grew 4%, primarily due to the company’s acquisition of its business in Colombia in 2005, as well as continued growth in central and eastern Europe and Latin America. Units increased 3%, and total sales of beauty products in the quarter rose 6%.
First quarter operating profit fell 67% to $86 million, due primarily to $120 million in costs to implement restructuring initiatives. At the same time, Avon said it increased its advertising spend in the quarter by 57% to $40 million.
“The quarter’s results reflect the aggressive actions we are taking to return our business to sustainable growth,” said Andrea Jung, chairman and CEO. “At this early point, we are pleased with the progress we are making on our restructuring initiatives, and we continue to work diligently on all fronts of our previously announced four-point turnaround plan, with 2006 being a transition year.
“Along with actions aimed at streamlining our organization and reducing our cost structure, we are committed to improving our brand competitiveness. In particular, our large first-quarter increase in advertising is reflective of early action on this front, and we plan a similar lift in advertising spend in the second quarter,” she continued.
In the North America region, first-quarter revenue rose 3%, with all markets contributing solid increases. Active representatives were 5% lower and units decreased 3%. These declines were more than offset by a larger average order that was driven by strong product launches in skin care, as well as strength in the Beauty Plus category.
In Latin America, first-quarter revenue grew 28% due to the Colombia acquisition and continued strength in Brazil. The region’s active representatives rose 12% and units increased 10%.
First-quarter revenue in Western Europe, Middle East and Africa was flat compared with the prior year. Active representatives grew 2% and units increased 6%, versus the year-ago period. The region reported an operating loss of $34 million in the quarter largely as a result of $31 million in costs to implement restructuring plans.
In central and eastern Europe, revenue in the first quarter rose 3% (7% in local currency) and units increased 5% versus the year-ago period. In part due to the region’s continued roll-out of Avon’s sales leadership program, active representatives grew 13%.
Asia Pacific revenue was 11% lower in the quarter, units declined 10% and active representatives decreased 15%, as trouble in Japan impacted the region’s performance. Avon’s Japan business continued to face issues as it shifts from a direct-mail, customer-centric model to a more traditional direct-selling model. Revenue in China declined 27% and units decrease 18% in the first quarter as Avon’s Beauty Boutique owners continued to place smaller orders with the company, compared with the prior year, in connection with the resumption of direct selling.
On July 1, Susan J. Kropf, stepped down as president and chief operating officer, following a 35-year career during which she advanced to become the company’s No. 2 executive. A successor to Ms. Kropf will not be named, in line with the company’s new global operating structure announced in December. All business units and support functions will report directly to Ms. Jung.
“With a new operating structure in place and progress being made on our business turnaround plan, I am confident that Avon is now well-positioned to resume sustainable growth, and that the time is now right for me to act on this personal decision that I’ve been considering for some time,” said Ms. Kropf. “Looking back, I am very proud of Avon’s extraordinary business growth over the years, as we have evolved from a smaller, more entrepreneurial company to a true global business of scale. I am honored to have been a part of the Avon success story for so many years, and I know I leave the business in good hands with a talented new generation of leaders who are committed to Avon’s continuing success.”
6. Ecolab
St. Paul, MN
651.293.2233
www.ecolab.com
Sales: $4.5 billion. Net income: $310 million.
Key Personnel: Douglas M. Baker, chairman, president and chief executive officer; Lawrence T. Bell, senior vice president, general counsel and secretary; John G. Forsythe, senior vice president-public affairs and chief tax officer; Steven L. Fritze, executive vice president and chief financial officer; Robert K. Gifford, senior vice president, global supply chain; Thomas W. Handley, executive vice president, specialty sector; Michael A. Hickey, senior vice president, Luciano Iannuzzi, executive vice president, Europe, Africa and Middle East; Diana D. Lewis, senior vice president, human resources; Phillip J. Mason, executive vice president, Asia Pacific and Latin America; Michael C. McCormick, vice president, corporate development; James A. Miller, executive vice president, institutional sector North America; Susan K. Nestegard, senior vice president, research development and engineering and chief technical officer; Daniel J. Schmechel, senior vice president and controller; Thomas W. Schnack, vice president and general manager, food & beverage, North America; C. William Snedeker, senior vice president-global pest elimination; Robert P. Tabb, vice president and chief information officer; Mark D. Vangsgard, vice president and treasurer; James H. White, senior vice president, strategic planning.
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The institutional division rolled out Pathways solid drain sanitizer. |
New Products: Instituitonal—EcoLogic cleaners, Pathways solid drain sanitizer and Oasis 146 Multi-Quat Sanitizer; Kay—Q-Sure towels, Chlorinated Cleaner; Pest Elimination—Allur-Ring Pheromone Pad, Electronic Duster; Professional Products—Bright FX high performance floor care system; GlossTek floor finishes; Healthcare—Endure 450; GCS Service—Unitrax; Textile Care—Full Cycle Solutions; Food & Beverage—WPA-1000, Eco-Wipe; Vehicle Care—Rain-X Online Protectant.
Comments: Sales rose 8% last year. The U.S. accounted for 51% of sales. Within the U.S. results, institutional led the way with 25% of sales, followed by food & beverage, 7%; Pest Elimination, 6%; Kay, 5%; GCS Service, 3% and professional products, healthcare, vehicle care, textile care and water care services, all with 1%.
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Ecolab’s Formula 1 reduces energy usage in laundry care. |
Institutional reported a 7% gain in sales due to increased market penetration and successful new product launches. During the year, the division successfully launched its 360° of Protection program which improves food and employee safety, operating efficiency and guest satisfaction in the foodservice, hospitality and long-term care industries. Also, the division formed a strategic alliance with Pentair, a Minnesota-based provider of water purification solutions.
Kay posted an 11% increase in sales, and at the same time streamlined processes to drive down costs. One of the division’s growth drivers is the MarketGuard program, which combines food safety, pest elimination and floor care. Company executives predict that Kay will continue to build on its market leading position in the quickservice and food retail markets.
Pest elimination reported a 12% gain in sales led by increases in government, food and beverage, and non-food retail sectors. The division is said to be well-positioned to achieve double-digit gains in 2006.
Sales of professional products increased just 2%, but the division expanded its presence in the retail floor care space by participating in the MarketGuard program and by the introduction of products such as Bright FX high performance floor care system and GlossTek premium ultra-durable floor finishes.
Healthcare division sales soared 16%. The division is the market leader in infection control. During the year, the division made a successful entry into the operating room environment. Now in its third year as a stand-alone division, healthcare is expected to post more gains due its increased sales and service force, novel new products and innovative R&D program.
After revamping its management team in 2004, GCS Service posted an 8% increase in sales last year. The unit added business with several large, multi-unit accounts. Textile Care sales were up 5%, due to new product launchings, cross-divisional partnerships and gains in the tunnel washer segment.
Following the integration of the Alcide acquisition, food and beverage sales surged 9%. During the year, the division expanded sales of Sanova, its antimicrobial food additive that reduces pathogens on food surfaces.
The acquisition of Midland Research Laboratories, a water treatment company, helped boost sales of water care services by 34%. The division also expanded its sales team and added scale in areas such as marketing, finance and R&D. Vehicle care posted a 12% gain in sales due to new product introductions and several large account gains.
Outside the U.S., European sales rose 3% as the region embraced Ecolab’s Circle the Customer approach to secure new corporate accounts. Sales in Asia-Pacific were up 8% due, primarily, to big gains in China and Australia. Buoyed by successful new product launches, sales in Canada were also up 8%. Finally, sales in Latin America grew 15%, due to gains in global accounts, high growth in target segments and success in rolling out innovative products and solutions.
For the first quarter of 2006, sales rose 5% to a record $1.1 billion. Growth was strongest in the U.S., Latin America and Asia Pacific.
“Customer account gains, new products and increased solutions for our customers drove the growth,” explained Douglas M. Baker Jr., Ecolab’s chairman and CEO. “These strong fundamentals, along with improved pricing and cost savings, more than offset higher raw material costs and fueled the margin improvement and strong earnings. We are pleased by the solid start to the year.”
On May 1, Allan L. Schuman retired as chairman after 49 years of service. He began his career as an Ecolab junior sales representative in Queens, NY. After a decade of service in the field, he went on to create the national accounts structure that helped drive Ecolab’s success. Later he served as general manager of Ecolab’s largest businesses, followed by nine years as CEO, from 1995 to 2004. He also served as chairman from 2000 to 2006. Mr. Schuman was named chairman emeritus and Mr. Baker succeeds him as chairman.
7. Johnson & Johnson
New Brunswick, NJ
732.524.0400
www.jnj.com
Sales: $4 billion for skin care and baby care products. Corporate sales: $50.5 billion. Net income: $10.4 billion.
Key Personnel: William C. Weldon, chairman and chief executive officer; Robert J. Darretta, vice chairman; Colleen A. Goggins, worldwide chairman, consumer and personal care group.
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New Cortaid Poison Ivy Care doesn’t begin to scratch the surface of J&J’s skin care offerings. |
New Products: Johnson’s Soft and Johnson’s Soothing Naturals, Aveeno Ultra-Calming, Aveeno Essential Moisture lip conditioner, Aveeno Continuous Protection sunblock lotion.
Comments: On June 26, J&J agreed to purchase Pfizer’s consumer product business for $16.6 billion. The acquisition adds more bulk to J&J’s fast-growing consumer products division. In 2005, the company acquired the Rembrandt oral care line from Gillette. Neutrogena became the first J&J skin care brand to top the $1 billion mark in annual sales. Sales of skin care products rose 12.2% to $2.4 billion and baby and kid care sales rose 7.9% to $1.6 billion. Overall, corporate sales rose 6.7% and net income was up 22.4%.
In 2005, Aveeno brought new natural technologies to facial care and expanded into lip care and sun care. The new Aveeno Ultra-Calming line contains Feverfew and is clinically proven to visibly reduce redness in as little as one week. The company calls Johnson’s Soothing Naturals a breakthrough collection of baby skin care products that combines the gentleness of Johnson’s with beneficial plant-derived ingredients which contain a patent-pending complex of all four forms of vitamin E, olive leaf extract, minerals and essential amino acids and emollients. The line was created to maintain the integrity of the developing skin barrier and to provide moisture critical to healthy skin. For the first quarter of 2006, corporate sales rose 1% to $13.3 billion. Worldwide consumer segment sales rose 3.3% to $2.4 billion. The sales gain was attributed to strong sales of Aveeno, Neutrogena and Johnson’s adult skin products. During the quarter, the company announced that it had entered into an agreement to acquire Groupe Vendome, a privately-held French marketer of adult and baby skin care products.
Groupe Vendome’s brands include Le Petit Marseillais, a line of shower gel, soap and bath and hair care products; Laboratories Vendome, a dermatological solutions brand with body cleansers and moisturizers; and Prim’Age, a baby toiletries brand. The company maintains its headquarters in the Dijon region of France.
“The acquisition of Groupe Vendome will allow us to enhance our adult and baby skin care businesses,” said Claudio Cavicchioli, president of Johnson & Johnson Consumer France. “We are looking forward to building on the outstanding equity that the Groupe Vendome brands enjoy in the consumer marketplace. In particular, Le Petit Marseillais is a trusted family brand with more than 100 years of heritage behind it.”
8. Alberto-Culver
Melrose Park, IL
708.450.3000
www.alberto.com
Sales: $3.2 billion (estimated) for personal care products. Corporate sales: $3.5 billion. Net income: $211 million for the year ended Sept. 30, 2005.
Key Personnel: Carol L. Bernick, chairman; Howard B. Bernick, president and chief executive officer; John R. Berschied Jr., group vice president, global research and development; William J. Cernugel, senior vice president and chief financial officer; V. James Marino, president, Alberto-Culver Consumer Products Worldwide; Michael H. Renzulli, chairman, Sally Beauty Company, Inc; Gary P. Schmidt, senior vice president, general counsel and secretary; Gary G. Winterhalter, president, Sally Beauty Company, Inc.
Major Products: Alberto VO5, St. Ives, Tresemmé, Nexxus, Consort, Motions, Soft & Beautiful and hair care products sold through Sally Beauty Company.
New Products: VO5 styling line, Nexxus (acquisition) and Salon Success (acquisition).
Comments: The company continues to set sales records year after year, but the big news over the past 12 months is the what to do with Sally; i.e., Alberto-Culver’s beauty supply unit? After a much-ballyhooed deal with Regis fell through earlier this year, on June 19 Alberto-Culver managegment announced it will spinoff its Sally Beauty business. Shareholders will receive a special $25 per share one-time cash dividend for each ACV share, as well as upon completion of the transaction, Alberto-Culver Company shareholders will own one share of Alberto-Culver stock and one share of Sally Beauty Company stock for each ACV share held. Alberto-Culver Company shareholders will own approximately 52.5% of the shares of Sally Beauty Company which will become a new public company listed on the New York Stock Exchange.
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So long Sally! After months of uncertainty, Sally Beauty is being spun-off as an independent company. |
Sally Beauty Company will become a stand-alone publicly traded company with its 2,465 Sally Beauty stores, 825 Beauty Systems Group (BSG) outlets and an 1,181-person direct sales force calling directly on its salon customers. Sally generated revenue of $2.3 billion for the trailing 12 months ended March 31, 2006, and had pre-tax operating earnings of $244 million.
Gary Winterhalter will continue as president of Sally Beauty Company and following the separation, will assume the CEO role and will join the Sally board. Sally chairman Michael H. Renzulli has entered into a three year consulting agreement through 2009 with Sally Beauty Company. CD&R will designate six of the 12 directors to be appointed to the Sally board, including the chairman.
Following the move, Alberto-Culver will be a global branded consumer products company. The operating management team will remain in place. The consumer products unit generated revenue of $1.4 billion for the trailing 12 months ended March 31, 2006, and had pre-tax operating earnings of nearly $140 million.
Carol Lavin Bernick will remain executive chairman of the Alberto-Culver Company. After the closing, V. James Marino will become Alberto-Culver’s president and CEO and will join the Alberto-Culver board. He is currently president, Alberto-Culver Consumer Products Worldwide. Mrs. Bernick and Mr. Marino, along with their operating team, were responsible for the successful turnaround in Alberto-Culver's consumer products business over the past five years and will remain in place going forward. Howard B. Bernick, Alberto-Culver president and CEO, will retire from his position at Alberto-Culver and from the Alberto-Culver board of directors after the spin-off is accomplished. Mrs. Bernick, in announcing the transaction, commented, “Sally Beauty Company and our consumer products businesses have demonstrated, in the company’s remarkable 15 year run of consecutive sales and earnings record performances, the ability to innovate, to grow sales and to grow margins. A large part of that success is due to the continuity and strength of the exceptional management teams each business has had and those leadership teams will remain in place. Recently, the businesses have faced growth constraints caused by customer and vendor conflicts between the units which will now be eliminated. I believe the growth potential for an independent consumer products group and an independent Sally Beauty Company should provide substantial benefits for the shareholders of both companies.”
The move, announced June 19, is just the latest chapter in the Sally saga. Back in January, Alberto-Culver announced a $2.6 billion agreement to spin-off Sally Beauty Company, the world’s No. 1 marketer of professional beauty supplies, and merge it with Regis Corporation, a global leader in beauty salons, hair restoration centers and beauty education. The agreement would have combined Sally Beauty stores and Beauty Systems Group outlets and 1,244-person direct sales force with Regis’ 10,952 beauty salons, operated under brand names such as Regis, Supercuts, Vidal Sassoon, SmartStyle and Trade Secret, 90 hair restoration centers and 35 beauty education schools.
But on April 5, and after two consecutive earnings shortfalls from Regis, the Alberto board rejected the move and the deal fell through. Too bad, said most observers, as the union would have freed Alberto-Culver to concentrate on its $1.4 billion consumer products business. Moreover, it would have eliminated conflicts between Alberto-Culver’s distribution business and its consumer products business.
Even as the Sally saga raged, Alberto-Culver was very active in other areas during the past year. With the Nexxus acquisition fully digested, the company posted its 14th consecutive year of record sales and profits. Corporate sales were up 8.4%.
Sales of the company’s flagship brands, including Alberto VO5, Tresemmé and St. Ives rose. Tresemmé led the way, with a 30% jump in U.S. sales and the introduction of the brand in the UK.
The good sales growth continued through the first half of 2006 as sales rose 6.6% to $1.85 billion.
“We are very pleased with our 2006 fiscal year-to-date results. In the consumer business, our second quarter sales growth was greatly enhanced by the Nexxus retail launch and continued strong performance from our Tresemmé hair care range again this quarter,” said Mr. Bernick.
He noted that second quarter advertising increased by almost 40% versus the prior year, much of this related to the Nexxus launch. The company ended the quarter with 2,465 Sally stores in the U.S., Canada, Mexico, Puerto Rico, the UK, Ireland, Germany and Japan, and its Beauty Systems Group had 825 stores and 1,181 professional distributor sales consultants as of March 31, 2006.
As Happi went to press, Alberto-Culver acquired Salon Success, a $30 million UK company that distributes professional beauty products. Salon Success holds European distribution rights to Paul Mitchell products in 15 countries, as well as in Georgia and Florida. According to Mr. Bernick, this is the Alberto Beauty Group’s first entry into the heart of Florida, which has become a key region for professional beauty product sales. Despite the acqusition, terms of the Sally Beauty deal remain unchanged.
9. Access Business Group
Ada, MI
616.787.3000
www.accessbusinessgroup.com
Sales: $2.9 billion (estimated) for household, personal care and nutritional products. Corporate sales: $6.4 billion.
Key Personnel: Al Koop, chief operating officer, Access Business Group.
Chief Technical Officer: George Calvert, vice president, R&D/QA division.
Chief Marketing Officer: John Parker, chief marketing officer.
Major Products: Personal care—Artistry color cosmetics and skin care products, Satinique shampoos, conditioners, Lustertone hair color and Blister oral care products. Home care—L.O.C. multi-purpose cleaner, Dish Drops dish detergent, SA8 laundry products, water and air treatment products.
New Products: Artistry Time Defiance microdermabrasion system and micro exfoliation cloths, Satinique color care, Satinique styling products, Body Blends body care, SA8 liquid laundry detergent and SA8 fabric softener.
Comments: Corporate sales rose 3% last year. The gains were attributed to rapid sales growth in Asia, particularly in China, Korea and India. Access has 65 R&D labs worldwide, more than a dozen manufacturing facilities and a distribution network extending to more than 80 countries and territories. Access also owns organically certified farms in Brazil, Mexico and the U.S.
In May, Nutrilite Health Institute (NHI) opened its Center for Optimal Health, a nutrition and health education center offering the latest in personalized health and preventative care.
The company predicts that each year, “tens of thousands of consumers (most of whom also sell Nutrilite products) will come to the Nutrilite Health Institute Center for Optimal Health and its affiliate brand centers located around the world for a personalized, experiential and comprehensive health assessment and educational opportunity. Visitors can meet with medical and fitness experts, undergo a series of blood work and other tests, and receive a tailored nutrition and fitness plan to reach their optimal health goals.
“In the supplement industry, Nutrilite is the only company backed by 70 years of pioneering research, an impressive roster of experts, and now, a state-of-the-art research and education Center for Optimal Health,” explained Dr. Sam Rehnborg, president of Nutrilite Health Institute.
“The NHI Center for Optimal Health leverages all of our peer-reviewed research and clinical testing to educate and empower consumers,” said Audra Davies, manager of supplement product development. “The Center represents the best of nature and the best of science, much like our supplements.”
Representing more than $10 million in capital investment, the 33,000 square-foot health assessment center includes a theater and an interactive exhibit on optimal health, nutrition and the stories behind the Nutrilite brand.
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New York, NY
212.479.4300
www.coty.com
Sales: $2.9 billion.
Key Personnel: Peter Harf, chairman, Coty Inc.; Bernd Beetz, chief executive officer, Coty Inc.; Michael Fishoff, chief financial officer, Coty Inc.; Eric Thoreux, president, Coty Beauty Americas; Hans-Joachim Honigfort, president, Coty Beauty Europe; Michele Scannavini, president, Coty Prestige; Géraud-Marie Lacassagne, senior vice president, human resources, Coty Inc.; Gabriel Ripoll, executive vice president, global operations, Coty Inc.
Major Products: Fragrances, cosmetics and personal care products marketed under a variety of brand names including Coty, Adidas, Lancaster, Davidoff, Rimmel and Healing Gardens.
New Products: Calvin Klein Euphoria, Live Jennifer Lopez, Love at First Glow, Lovely Sarah Jessica Parker, CK One Summer, Eternity Summer, Marc Jacobs Splash, Lancaster Sun Care, Kenneth Cole Signature, Nautica Blue, Nautica Voyage, Celine Dion Always Belong, Rimmel Volume Flash Mascara, Rimmel Recover Foundation, Healing Garden Skin Organics, Healing Garden Passion Rose, Calgon Gourmand Mmmm, Calgon Aqua Fresca, Mary-kateandashley Coast to Coast Malibu Style and Mary-kateandashley Coast to Coast Soho Chic, Shania by Stetson. To be launched: Candies Heartbreaker (July), Live Luxe Jennifer Lopez (August), Phat Farm Atman (September), Vera Wang Princess (September), Desperate Housewives Forbidden Fruit (September), Lovely Sarah Jessica Parker Liquid Satin (September), Baby Phat Golden Goddess by Kimora Lee Simmons (September), Euphoria Men Calvin Klein (October), Marc Jacobs Winter Splash (October), CK One electric (October), Kenneth Cole Reaction Thermal (November).
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Lovely Sarah Jessica Parker (above) and Euphoria Calvin Klein are just two of the award-winning scents from Coty. |
But it’s quality, not quantity, which is the trademark of the Coty fragrance business. Once again, the company dominated the Fragrance Foundation Fifi awards, taking home four prizes this year. Celine Dion Parfums Belong was awarded the Best Packaging of the Year in the Popular Appeal category; Lovely Sarah Jessica Parker won the Best National Advertising Campaign of the Year for television; Stetson Black was honored with the Fragrance Star of the Year award (Men’s Popular Appeal) and Euphoria Calvin Klein won the Fragrance Star of the Year (Women’s Luxe).
These victories are only the latest in a string of successes. François Coty, who is credited with founding the modern fragrance industry, formed Coty in Paris in 1904.
11. Johnson Diversey
Sturtevant, WI
262.631.4001
www.johnsondiversey.com
Sales: $2.8 billion for industrial and institutional cleaners. Corporate sales: $3.2 billion. Net loss: $221 million.
Key Personnel: Ed Lonergan, president and chief executive officer; Joe Smorada, chief financial officer and executive vice president; JoAnne Brandes, chief administrative officer, senior vice president and general counsel.
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 Crew, Soft Care, Endbac, Signature, J-Fill, Taski, Suma, DuBois and Divermite. In addition, the company owns other well-known brands such as Butchers, U.S. Chemical, Drackett Professional, AutoChlor, Teepol and Prism.
New Products: Green Seal-certified floor finishes and strippers including Johnson Wax Professional Freedom SC floor stripper, Johnson Wax Professional Aquaria floor finish and Butcher’s G-Force floor finish and strippers; Johnson Wax Professional Fastrip and Butcher’s Wild Rapids floor strippers; QuattroSelect wall-mounted dispensing system.
Comments: Sales were flat last year. To pay down the $1.7 billion debt Johnson Diversey accrued from the acquisition of Diversey Lever back in 2002, the company sold its Johnson Polymer division to BASF for $470 million. Johnson Polymer manufactures specialty polymers for use in the industrial print and packaging industry, industrial paint and coatings industry, and industrial plastics industry. Johnson Polymer had sales of $375 million last year, and enjoyed an 11% sales gain in 2005.
11. Limited Brands
Columbus, OH
614.415.7000
www.limited.com
Sales: $2.8 billion (estimated) for Bath & Body Works, White Barn and Victoria’s Secret personal care products. Corporate sales: $9.7 billion. Net income: $683 million.
Key Personnel: Leslie H. Wexner, chairman and chief executive officer; Leonard A. Schlesinger, group president, beauty and personal care and vice chairman and chief operating officer; Neil Fiske, chief executive officer, Bath & Body Works; Christine Beauchamp, president, Victoria’s Secret Beauty; Michael Nicholson, executive vice president and chief operating officer, Victoria Secret Beauty; V. Ann Hailey, executive vice president, corporate development.
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Cellulite Rx is new from Bath & Body Works. |
New Products: Victoria’s Secret—Beauty Rush, SuperModel Sexy Hair, Garden Pure Paradise, Victoria’s Secret Spa, Bare Bronze. Bath & Body Works—American Girl and Breathe Body Care, C.O. Bigelow and Le Couvent des Minimes.
Comments: Corporate sales rose 3% last year, but the company’s personal care businesses did better. Sales at Bath & Body Works rose 5% to nearly $2.3 billion and sales of Victoria’s Secret were up 4%.
Company executives insist there is plenty of room for growth for the Victoria’s Secret Beauty brand. They note that the brand has just 2% of the U.S. beauty market. More precisely, VS’s shares are: fragrance, 7%; body care, 4% and color, less than 1%. Moreover, just 40% of Victoria’s Secret customers (lingerie) are beauty customers too. To boost its opportunities, the company is testing an expanded Pink assortment in targeted locations, and is considering the introduction of free-standing Pink stores as it explores additional opportunities to transform Pink into a fully articulated lifestyle brand.
At Bath & Body Works, the company opened seven new C.O. Bigelow stores in the Boston, Chicago and New York markets. In addition, Bath & Body Works executed several initiatives to support future growth including several investments in personal care and beauty concepts; the acquisition of Slatkin & Company, an importer and wholesaler of sophisticated premium home fragrances; and the introduction of the Dr. Patricia Wexler, M.D. clinical skin care line. Bath & Body Works launched bathandbodyworks.com in October 2005, providing an important new channel for growth.
13. Clorox
Oakland, CA
510.271.7000
www.clorox.com
Sales: $2.4 billion (estimated) for household products. Corporate sales: $4.4 billion.
Key Personnel: Robert W. Matschullat, interim chairman and interim chief executive officer; Lawrence S. Peiros, group vice president, household group; Beth Springer, group vice president, specialty group; Frank A. Tataseo, group vice president, functional operations; Warwick Every-Burns, senior vice president, international; Daniel J. Heinrich, senior vice president, chief financial officer; Jacqueline P. Kane, senior vice president, human resources and corporate affairs; Laura Stein, senior vice president, general counsel and corporate secretary; Tim E. Bailey, vice president, product supply; Thomas P. Britanik, vice president, general manager, U.S. auto care; Benno Dorer, vice president, general manager, Glad; Robin Evitts, vice president, chief information officer; Thomas D. Johnson, vice president, controller and chief accounting officer; Grant J. LaMontagne, vice president, sales; Stephen M. Robb, vice president, financial planning and analysis; Glenn R. Savage, vice president, general manager, laundry and home care; Keith R. Tandowsky, vice president, internal audit.
Chief Technical Officer: Wayne L. Delker, PhD., vice president, research and development.
Chief Marketing Officer: Derek A. Gordon, vice president, marketing.
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Disinfect any surface with Clorox Anywhere hard surface cleaner. |
Comments: Fiscal 2005 was another good year for Clorox as sales rose more than 5% and market share rose in all eight categories the company competes in.
Unfortunately, 2006 has been marked by the heart attack and subsequent retirement of chief executive Jerry Johnston (see box, p. 98). The other big news was that Clorox completed the largest transaction in its history with the $2.8 billion acquistion of its stock from Henkel.
By operating segment, sales within the household product group rose 3% to $2 billion. International sales, which include some categories outside of Happi’s scope, were up 13% to $600 million. The specialty group, which includes food and other products, reported a 7% increase in sales to $1.8 billion.
For the nine months ended March 31, 2006, corporate sales rose 6% to $3.3 billion. But net income plunged from $904 million to $302 million.
14. Mary Kay
Dallas, TX
800.MARY.KAY
www.marykay.com
Sales: $2.2 billion.
Key Personnel: David Holl, president and chief operating officer; Darrell Overcash, president; Terry Smith, chief financial officer; Melinda Sellers, senior vice president, human resources.
Chief Scientific Officer: Dr. Myra Barker, executive vice president, marketing/R&D.
Chief Marketing Officer: Greg Franklin, vice president, marketing.
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Mary Kay’s Time Wise is a popular anti-aging line. |
New Products: TimeWise Age-Fighting lip primer, TimeWise Day Solution SPF 25, MK Signature ultimate mascara, Essence, MK Signature Luscious Color lipstick, MK Signature lip concentrate, Private Spa Collection Satin Hands pampering set, TimeWise Even Complexion Essence.
Comments: Sales continue to surge at Mary Kay. The company set a new sales record again in 2005, with a gain of 22%. In April, Mary Kay appointed David Holl as president and CEO. He joined the company in 1993 and most recently served as president and COO. During his tenure, Mr. Holl is credited with expanding the company’s business in China and eastern Europe. Mr. Holl replaced Richard R. Rogers, the company’s co-founder and son of Mary Kay Ash. Mr. Rogers assumes the role of executive chairman.
At the end of 2005, Mary Kay Inc. had a sales force of 1.6 million and operated in 30 markets around the world.
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Chicago, IL
312.726.2600
www.saralee.com
Sales: $1.9 billion for household and personal care products. Operating income: $310 million. Corporate sales: $19.2 billion. Net income: $719 million for the year ended July 2, 2005.
Key Personnel: Brenda Barnes, chairman and chief executive officer; L.M. de Kool, executive vice president, chief financial and administrative officer; Adriaan Nühn, executive vice president, chief executive officer, Sara Lee International; Diana S. Ferguson, senior vice president, strategy and corporate development; Lois M. Huggins, senior vice president, chief people officer; Vincent H.A.M. Janssen, senior vice president, chief executive officer, household and body care, Sara Lee International.
Major Products: Shoe care—Kiwi; Body care—Sanex, Duschdas, Badedas and Monsavon; Baby care—Zwitsal, Fissan and Proderm; Insecticides—Catch, Bloom, Vapona and Ridsect; Air fresheners—Ambi-Pur; Oral care—Zendium and Prodent; Detergents—Biotex and Neutral.
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Enamel Care contains liquid calcium to give tooth enamel a boost. |
Net income fell 42%. Sales of household and personal care products declined less than 1%.
To get the company growing again, Sara Lee management has initiated a transformation program designed to streamline the company and focus on core businesses.
At an analysts meeting last month, Brenda C. Barnes, chairman and CEO, discussed the company’s transformation and growth opportunities in each of its categories. During the conference, Ms. Barnes offered overviews of the core food (meat and bakery), beverage, and household and body care businesses in which the “new” Sara Lee will compete.
“We have chosen to focus on these businesses because they present us with the best opportunity to win in the marketplace and provide positive results for our shareholders and employees,” added Ms. Barnes. “We are leveraging powerful brands, such as Ball Park, Jimmy Dean, Sanex, Senseo and, of course, our namesake, Sara Lee, to drive growth and deliver improved results.
“Sara Lee’s transformation to a focused, integrated operating company is on schedule” said Ms. Barnes. “Our core business performance is generally improving, and we remain committed to returning value to our shareholders.”
The transformation plan is expected to yield a cost savings of $575-$810 million a year by fiscal 2010. The company will use the money to fund marketing and R&D efforts. How will Sara Lee generate that kind of cash? By redesigning its processes to increase operational efficiency while also creating a lasting culture of continuous improvement, according to the company. The plan, also known as Process Improvement to Excellence (PIE), calls for greater and more effective spending on value-added activities such as product development, consumer research and marketing. It should also increase speed and efficiency across all of Sara Lee, which ultimately should produce better products and get them to market faster than ever. One of the biggest changes will come in the company’s organizational structure. Under the plan, the household product group has been folded into a new division, Sara Lee International, which also includes the beverage, bakery and meats business outside of North America. Moreover, last August, Sara Lee sold its direct sales unit to Tupperware Corp. for $557 million. The business includes such categories as cosmetics, fragrances and nutritional supplements.
In fiscal 2005, sales in the household product segment fell 7% and unit volume declined 3%, due to the fact that fiscal 2004 was a 53-week period. Unit volume increased in the insecticide category, due to increased marketing efforts and higher sales of lower-priced products. In the body care category, unit volumes increased due to higher promotional activity. Elsewhere, shoe care volume was flat and volume declined in air care due to increased competition.
16. Church & Dwight
Princeton, NJ
609.683.5900
www.churchdwight.com
Sales: $1.4 billion for household and personal care products. Corporate sales: $1.7 billion. Net income: $123 million.
Key Personnel: Robert A. Davies III, chairman; James R. Craigie, president and chief executive officer; Zvi Eiref, chief financial officer; Jaqueline J. Brova, vice president, human resources.
Major Products: Laundry—Arm & Hammer and Xtra detergent, Nice’n Fluffy and Arm & Hammer Fresh’n Soft fabric softener, Delicare fine fabric wash, Arm & Hammer super washing powder; Deodorizing and household Cleaning—Arm & Hammer carpet deodorizer, Brillo pads, Scrub Free bathroom cleaner, Clean Shower daily shower cleaner, Cameo cleaners, Sno Bol toilet bowl cleaner, Parsons’ ammonia; Personal care—Arm & Hammer, Mentadent, Pepsodent, Aim and Close-Up toothpastes, Arrid and Arm & Hammer and Lady’s Choice deodorants and antiperspirants.
New Products: Mentadent Replenishing White toothpaste with Liquid Calcium, Elexa sexual health products, Spinbrush (acquisition), Mentadent Advanced Whitening System.
Comments: Corporate sales surged more than 18% last year, but they were primarily due to the May 2004 acquisition of Armkel. Personal care sales were also up due to the launch of Elexa, but were partially offset by lower oral care sales. Household product sales increased 4.9% due to higher sales of A&H and Xtra liquid laundry products, partially offset by lower sales of powdered laundry detergent.
On Oct. 31, 2005, Church & Dwight acquired the Spinbrush battery-operated toothbrush business from Procter & Gamble. The purchase price was $75 million in cash, plus additional performance-based payments of up to $30 million payable at specified times following the closing. Spinbrush had sales of $110 million for the year ended June 30, 2005. More than 80% of sales were in the U.S. and Canada.
In addition to launching its own new products, the company is stepping up its licensing efforts to support the launch of new products by other companies. According to Church & Dwight executives, this will leverage the benefits of C&D brands and technologies into other categories where the company lacks the competitive strength to successfully compete, while reinforcing consumer awareness of its own brands.
For the first quarter of 2006, corporate sales rose 5.2% to more than $442 million. Net income increased 7% to nearly $40 million. The results included revenue of $12.3 million for Spinbrush and a skin care operation in Brazil.
17. Revlon
New York, NY
212.527.4000
www.revlon.com
Sales: $1.3 billion. Net loss: $84 million.
Key Personnel: Ronald O. Perelman, chairman; Jack Stahl, president and chief executive officer; David L. Kennedy, executive vice president and chief financial officer; Lisa Baumgarten, senior vice president, strategy, planning and business development; Catherine Fisher, senior vice president, corporate communications; Carl Kooyoomjian, executive vice president, technical affairs and worldwide operations; Robert K. Kretzman, executive vice president and chief legal officer; Mary M. Massimo, executive vice president, human resources; Thomas McGuire, executive vice president and president, Revlon International; Karl Obrecht, executive vice president, North American sales; Rochelle Udell, executive vice president and chief creative officer; Chris Eishaw, senior vice president, managing director, Europe; Alan T. Ennis, senior vice president, internal audit; Arthur Franson, senior vice president, worldwide manufacturing; Graeme Howard, senior vice president, managing director, Asia Pacific; John F. Matsen Jr., senior vice president, corporate controller; William Reis, senior vice president and chief procurement officer; Simon Worraker, senior vice president, Latin America region and general manager, Mexico.
Chief Scientific Officer: Neil Scancarella, executive vice president and chief science officer.
Marketing Director: Stephanie Klein Peponis, executive vice president and chief marketing officer.
Major Products: Cosmetics, skin care, hair care and fragrances sold under such brand names as Revlon, Colorstay, Age Defying, Almay, Charlie, Ultima II and African Pride.
New Products: Almay—Intense i-Color; Revlon—Fabulash Mascara, ColorStay 12-Hour Eye Shadow and Expert Effects beauty tools; Vital Radiance cosmetics.
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Revlon’s current financial situation is not a pretty picture. |
“Our initiatives are delivering significant incremental revenue growth in 2006, although they are requiring significant levels of investment to build consumer awareness and trial—particularly of Vital Radiance—due in part to the heightened competitive environment,” insisted Jack Stahl, Revlon president and CEO. “We believe that these investments, along with our other actions to build the value of our brands, strengthen our retail relationships and reduce costs, will benefit the value of our company over time.”
Still, for the first quarter ended March 31, Revlon’s sales rose 8% to $326 million. In North America, net sales grew 11% to $216 million due to the Vital Radiance and re-staged Almay rollouts, partially offset by lower shipments of Revlon. International net sales in the first quarter of 2006 advanced 2% to $109 million.
Last year, North American sales increased just 0.2%to $857.1 million. International sales increased 7.6% to $475.2 million. More specifically, sales in Asia Pacific and Africa increased 7.3% to $242.6 million. In Europe and the Middle East, sales increased 3.6% to $125 million.
Combined U.S. mass-market share for the Revlon and Almay brands totaled 21.6% for 2005, compared with 21.4% for 2004, with the Revlon brand registering a share of 15.4% for 2005, compared with 15.7% for 2004, and the Almay brand registering a share of 6.2% for 2005,compared with 5.7% for 2004. The share increase for the Almay brand was driven primarily by the successful launch of new products, including the Almay Intense i-Color collection. In women’s hair color and beauty tools, the company gained market share in 2005, compared with 2004, increasing, respectively, from a 8% market share for 2004 to 8.5% for 2005, and 24.1% market share for 2004 to 25% for 2005. Market share performance was essentially even at 6.2% for antiperspirants/deodorants in 2004 and 2005.
18. Pfizer
New York, NY
212.573.2323
www.pfizer.com
Sales: $1.2 billion. Corporate sales: $51.3 billion. Net income: $8 billion.
Key Personnel: Hank McKinnell, chairman.
Major Products: Listerine mouthwash and toothpaste, Lubriderm moisturizing lotions, Purell instant hand sanitizer.
New Products: Advanced Listerine antiseptic mouthwash with Tartar Protection, Lubriderm skin nourishing moisturizing lotion with sea kelp extract.
Comments: Like so many pharmaceutical companies before it, Pfizer is getting out of consumer healthcare. Last month, Pfizer sold its stable of brands, which include Listerine, Lubriderm and Purell, to Johnson & Johnson for $16.6 billion. The price was higher than the $15 billion price analysts had expected as J&J outbid rivals such as GlaxoSmithKline and Reckitt Benckiser.
“We see the consumer healthcare markets as increasingly attractive growth opportunities as consumers take greater interest in and responsibility for their own health,” said William Weldon, chairman of J&J. “In addition, higher levels of disposable income in developing nations are helping drive increased demand for consumer health products.”
At the same time, demand for OTC medicine is growing as governments struggle to cut health care costs. Despite the higher-than-expected purchase price, J&J is getting a healthy healthcare business. In 2005, Pfizer’s total consumer healthcare revenues increased 10% to $3.9 billion, due in part to the strong performance of Listerine mouthwash and the inclusion of Purell sales. For the first quarter of 2006, corporate sales declined 3% to $12.6 billion.
19. Blyth
Greenwich, CT
203.661.1926
www.blythinc.com
Sales: $1 billion for home fragrance and related products. Corporate sales: $1.6 billion. Net income: $24 million for the year ended Jan. 31, 2006.
Key Personnel: Robert B. Goergen, chairman and chief executive officer; Robert H. Barghaus, vice president and chief financial officer; Bruce G. Crain, senior vice president and president, wholesale group; Robert B. Goergen Jr., vice president and president, catalog and internet group; Frank P. Mineo, senior vice president and president, direct selling group; Marcia L. Pontius, vice president, acquisitions and corporate development.
Chief Technical Officer: Anil J. Gupte, vice president, research and development.
Major Products: Candles and home fragrance products. Brands include Colonial Candle of Cape Cod, Miles Kimball, PartyLite, Sterno and Handy Fuel.
Comments: Higher oil prices have put a damper on the world’s largest candle maker. By business segment, direct selling reported a 4% loss to $704 million. Declines in the U.S. were partially offset by a double-digit gain in Europe and renewed strength in Canada.
Wholesale segment sales increased 4% to nearly $682 million, due to full-year results from European acquisitions. However, sales within the catalog and internet segment declined 3% to $187 million.
For the first quarter ended April 30, 2006, sales declined 4% to $327.5 million. Net loss for the quarter was $30.6 million versus net earnings of $10 million a year earlier. Blyth’s first quarter net sales declined due to lower sales in the company’s direct selling and wholesale segments, which was partially offset by modest growth in the catalog and internet segment.
“We completed the divestiture of Kaemingk, Blyth’s European wholesale seasonal decorations business, during the first quarter and continue to evaluate numerous strategic alternatives for our four other European wholesale operations,” said Robert B. Goergen, Blyth’s chairman and CEO. “Direct selling remains Blyth’s preferred venue for international expansion, and European markets in which PartyLite commenced operations over the past five years are experiencing robust growth.”
Mr. Goergen blamed the first quarter results on reduced consumer discretionary spending on Home Expressions products across major markets. In addition, a 50% increase in the price of paraffin wax during the past 12 months put a damper on earnings.
Later this year, the company plans to spin off its wholesale unit as a new, publicly-traded company.
20. Elizabeth Arden
Miami Lakes, FL
305.818.8000
www.elizabetharden.com
Sales: $920 million. Net income: $37 million for the year ended June 30, 2005.
Key Personnel: F. Scott Beattie, chairman and chief executive officer; Paul F. West, president and chief operating officer; Stephen J. Smith, executive vice president and chief financial officer; Michael H. Lombardi, executive vice president, operations; Oscar E. Marina, executive vice president, general counsel and secretary; Joel B. Ronkin, executive vice president and chief administrative officer; Jacobus A.J. Steffens, executive vice president, general manager, international.
Chief Marketing Executive: Ronald L. Rolleston, executive vice president, global marketing.
Major Products: Fragrances, skin care and color cosmetics sold under such brand names as Elizabeth Arden, Red Door, 5th Avenue, Visible Whitening, Flawless Finish, House of Taylor, Britney Spears, Halston, Geoffrey Beene, Paul Sebastian and Skin Simple.
New Products: Fantasy Britney Spears and Elizabeth Arden 5th Avenue After Five fragrances, Prevage, Ceramide Moisture Network night cream, Ceramide Plump Perfect eye moisture cream SPF 15 and Ceramide Plump Perfect lip moisture cream SPF 30, Ceramide Plump Perfect Targeted Line Concentrate skin care products. To be launched: Hilary Duff and Danielle Steele fragrances (Fall 2006).
Comments: Sales rose 11% last year. The gain was driven by the launch of Curious and Provocative Woman fragrances, favorable foreign currency rates, increased skin care sales (globally) and increased cosmetics sales (outside the U.S.).
Fragrances accounted for 75% of sales, followed by skin care (17%) and cosmetics (8%). In fiscal 2005, the U.S. accounted for 62% of sales. Within the international arena, the UK, Canada and Spain represented the biggest markets.
Sales may have been up 11% in fiscal 2005, but the EA management team insists that the company can grow much faster. To accomplish that, EA is making aggressive investments in marketing, advertising and brand development. Furthermore, the company is committed to growth through acquisitions, retail partnerships, improving profitability and expanding into emerging markets. That’s a tall order, and one that the company is struggling to fill. For the third quarter ended March 31, sales fell more than 3% due to tightening inventories among U.S. retailers.
“While we experienced weakness in the U.S. market as a result of the Federated and May department store merger and certain mass retailers’ inventory control initiatives, our business overall performed in line with expectations,” insisted F. Scott Beattie, chairman and CEO. “Fantasy Britney Spears rolled out to the remainder of our international markets in the third quarter and contributed solidly to our net sales, and Prevage continues to be introduced in markets around the world to an enthusiastic reception.”
For the nine months, sales increased 4.3% to $764.6 million, but net income declined 9% to $38.3 million.
“As we look ahead, we expect the growth and profitability initiatives implemented during this fiscal year, particularly the organizational improvements in Europe and Asia, primarily in China, to contribute to both revenues and earnings next year,” said Mr. Beattie. “In addition, we expect the licensing agreements for new fragrance launches and improved balance between shipments and retail sales to provide positive momentum as we head into fiscal 2007.”
The company expects continued weakness in the U.S. market and is taking a cautious view in terms of the fulfillment at those retailers for the remainder of the year. As a result, Elizabeth Arden executives predicted that fiscal 2006 sales will be in the range of $950 million to $970 million.
21. Huish
Salt Lake City, UT
801.975.3100
www.huish.com
Sales: $750 million (estimated).
Key Personnel: Dan Huish, chief executive officer.
Major Products: Laundry, automatic dishwasher and liquid dishwashing detergents manufactured under its own brands (such as Sun), as well as private label and contract manufacturing.
Comments: Executives at privately-held Huish are as tight-lipped as ever when it comes to revealing sales data, but industry sources estimate sales of $750 million.
22. Yankee Candle
South Deerfield, MA
413.665.8306
www.yankeecandle.com
Sales: $601 million. Net income: $78 million.
Key Personnel: Craig W. Rydin, chairman and chief executive officer; Harlan M. Kent, president and chief operating officer; Bruce H. Besanko, senior vice president, finance and chief financial officer; Stephen Farley, senior vice president, retail; Paul J. Hill, senior vice president, supply chain; Martha S. LaCroix, senior vice president, human resources; James A. Perley, senior vice president, general counsel.
Chief Marketing Officer: Richard R. Ruffolo, senior vice president, marketing and innovation.
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Clean Scents are now available in Staples. |
New Products: Aroma Naturals candles, PetSmart Clean Scents, Simply Home, Celebrate Home.
Comments: Despite a soft economy, rising feedstock costs and falling consumer confidence, Yankee Candle posted an 8% gain in sales last year. The wholesale business improved 9.8% to $297 million and retail sales were up 7.3% to $304 million. Seems as though even when the economy cools, candles stay hot. The company noted that housewarmer candles were selected as the No. 1 selling item in the U.S. for gifts costing more than $10.
Still, the year wasn’t without some difficulty. The company closed a small number of underperforming stores and looked to reduce the growth of its selling, general and administrative expenses. Furthermore, Yankee is determined to grow by maximizing the potential of its core candle business. To boost sales of its Housewarmer line, Yankee rolled out 35 new scents and added three new candle forms. In addition, the company is expanding its distribution into club stores and other retailers. For example, Mystic Harbor is already in BJ’s Wholesale Club and Yankee test-marketed its electric home fragrancers and its Clean Scents home care products in Staples.
All these measures seem to be working. For the first quarter of 2006, Yankee’s sales jumped 12% to $134 million. By sales channel, retail sales rose 19% to $61.6 million and wholesale volume was up 7% to $72.3 million.
“Revenue exceeded our plan overall, with the retail division in all three business segments delivering higher growth on positive comparable store sales and wholesale sales within expectations,” said Craig Rydin, chairman and CEO. “Our strong revenue performance this quarter is a tribute to all of our employees who worked together to create these solid results.”
As of Dec. 31, 2005, Yankee had 390 company-owned and operated stores in 42 states, and the number of retail stores has grown at a 22% CAGR during the past five years.
23. Schering-Plough
Kenilworth, NJ
908.298.4000
www.schering-plough.com
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New, easy-to-use Coppertone Continuous Spray has become a big hit with consumers. |
Key Personnel: Fred Hassan, chairman and chief executive officer.
Major Products: Sun care—Coppertone and Bain de Soleil; Foot care—Lotrimin AF and Tinactin anti-fungals.
New Products: Gradual Tan Faces, Coppertone Kids Continuous Spray Sunscreen (SPF 50), Continuous Spray Dry Oil sunscreen (SPF 10).
Comments: It was a good year all around for Schering-Plough in 2005. Corporate sales were up 15% and sun care sales surged 16% to $204 million. Only foot care sales were slow, gaining 1% to $333 million.
24. Acuity Specialty Products
Atlanta, GA
404.352.1680
www.acuitysp.com
Sales: $535 million. Net income: $46.2 million for the year ended Aug. 31, 2005.
Key Personnel: William Holl, president and chief executive officer; Ross Harding, executive vice president, sales; Mark Bachmann, chief financial officer; Rick Dunlap, executive vice president, retail; Jim McKenzie, vice president, marketing; Sherry Coffman, vice president, human resources.
Chief Scientific Officer: Dr. Stan Weller.
Chief Marketing Officer: Michael Caron.
Major Products and Product Managers: Vehicle wash—David Hart; Food & beverage sanitation division—John Ferraro; Core cleaning and maintenance—Brian Cartwright; Hospitality—Robin Cantrell.
New Products: Soy-based cleaning and degreasing product line.
Comments: Last month, William A. Holl joined the company as executive vice president of Acuity Brands and president and CEO of Acuity Specialty Products (ASP). He succeeds James H. Heagle, who retired from the company.
“We are pleased to add a leader of Bill Holl’s caliber to our team. Bill has a proven track record of profitably growing companies by providing a superior customer experience and by working with and developing people, thereby enhancing shareholder value,” said Vernon J. Nagel, chairman, president and CEO of Acuity Brands. “He brings substantial management experience in areas including distribution, marketing, operations and sales. I am confident that under Bill’s leadership, ASP can prosper by building on its strong foundation.”
Before joining Acuity Brands, Mr. Holl was CEO of Atlanta-based DS Waters Enterprises LP, a home-and-office water delivery company formed by Groupe Danone and Suntory International. Prior to that, he was with Coca-Cola Enterprises, Inc. from its inception in 1986 until 2003, including service as president of its Eastern North America Group and as senior vice president, marketing and business development.
Acuity Specialty Product’s sales rose 2% last year. North America accounted for 92% of sales. The Home Depot accounted for 13% of sales last year.
In its annual report, the company said two major trends are shaping the industrial and institutional cleaning industry:
• First, health and safety regulations are shrinking the pool of available chemicals while, at the same time, increasing total use rates has pushed development of improved product formulations and application methods.
• Second, increased centralized corporate buying and consolidation of the supply chain are threatening reselling distributors and requiring increased base manufacturing and logistics skills.
For the six months ended Feb. 28, Acuity Specialty Products reported sales of $257.4 million, an increase of more than 2%.
In September, Acuity will celebrate its 70th anniversary.
25. Nu Skin
Provo, UT
801.345.1000
www.nuskin.com
Sales: $484 million. Corporate sales: $1.1 billion. Net income: $74 million for personal care products.
Key Personnel: Truman Hunt, president and chief executive officer.
Chief Scientific Officer: Joe Chang, chief scientific officer and executive vice president, product development.
Chief Marketing Officer: Kevin Fuller, vice president, product marketing.
Major Products: Nu Skin 180° Anti-Aging Skin Therapy System; Nu Skin Tri-Phasic White System; Tru Face Essences; Galvanic Spa System II.
New Products: Nu Skin 180° Anti-Aging Skin Therapy System (reformulation), Celltrex CoQ10 Complete, Epoch Sole Solution, Nu Colour Contouring Lip Gloss, True Face IdealEyes.
Comments: Nu Skin is well-positioned to take advantage of the wellness market. The company offers a wide array of supplements and beauty care products.
26. John Paul Mitchell Systems
Beverly Hills, CA
310.248.3888
www.paulmitchell.com
Sales: $460 million (estimated).
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JPMS recently expanded its Tea Tree line with Lemon Sage shampoo & conditioner. |
Chief Marketing Officers: Nanette Bercu, senior vice president, creative director-advertising; Nina Kovner, senior vice president-marketing; Julie Soldwold, vice president-sports marketing.
Chief Scientific Officer: Brenda DuVal, senior vice president, research & development.
Major Products and Product Managers: Paul Mitchell—Hanna Larkin; Paul Mitchell Professional Color—Nikola Cline; Tea Tree and Modern Elixirs—Roseann Fernandez.
New Products: Tea Tree Lemon Sage shampoo & conditioner. To be launched: ColorShots (fall 2006); Paul Mitchell Express Style hairsprays: Hold Me Tight and All Worked Up (fall 2006); Tea Tree Lemon Sage body wash (holiday 2006).
Comments: John Paul Mitchell Systems remains the largest, privately-held player in the salon hair care segment.
27. Jafra
Westlake Village, CA
805.449.3000
www.jafra.com
Sales: $430 million.
Key Personnel: Ron Clark, chief executive officer; Gonzalo Rubio, president; Eugenio Lopez Barrios, chief operating officer.
Chief Scientific Officer: Pragna Chakravarti, vice president of research and development.
Chief Marketing Officer: Beatriz Gutai, executive vice president.
Major Products: Skin care—Royal Jelly, Elasticity Recovery Hydrogel, Time Protector Skin Firming Serum, Optimeyes eye treatment; Fragrances—Eau d’Arômes revitalizing fragrance spray, JF9 Cologne: green, black and red; Addorisse Eau de Parfum; Body care—Royal Almond; Jafra Spa—bath salts, massage and hair treatment, body rub and treatment cream, essential oils.
New Products: Intensive Line Corrector; Vaslui men’s fragrance; Royal Lavender bath and body collection; Teen facial masks; Vitamin C Peel kit; Mud mask; Powder Fresh antiperspirant and deodorant.
Comments: Jafra’s sales surged more than 20% last year, according to the company. The company was founded 40 years ago by Jan and Frank Day. They developed a line of beauty creams with the goal of enriching women’s lives. Fifty years later, Jafra boasts a sales network of nearly 400,000 women in 22 countries.
28. Markwins
City of Industry, CA
909.595.8898
www.markwins.com
Sales: $325 million (estimated).
Key Personnel: Eric Chen, chief executive officer; John Stephenson, president, House of Classic Brands; Jim Koeppel, president, Markwins North America.
Chief Scientific Officer: Irena Lebedev, director of research and development, quality and control.
Chief Marketing Officers: Shawn Haynes, senior vice president of marketing; Tina Perez, vice president of marketing.
Major Products and Product Managers: Wet n Wild Cosmetics—Bill Neubauer, senior brand manager; Fresh Face Skin Care—Sheila Lising, brand manager; Black Radiance and Tropez—Claire Dennis, brand manager; Soho Cosmetic Bags—Lindsay Randolph, director of design.
New Products: Fresh Face Skin Care by Wet n Wild; Black Radiance: Sultry Lips/Starry Eyes, Shimmy Shimmer, Fantastic Fakes (eyelashes), Cooling Shimmer Stick.
Comments: Privately-held Markwins International has made plenty of moves behind the scenes and on the shelf during the past several months. In December the company integrated all divisions into Markwins North America. The Tropez brand has been repackaged with all new components and the changes have helped push sales up 23%.
In addition, the Soho brand, which was acquired about a year ago, has been relaunched with new distribution.
But perhaps most importantly, Wet n Wild’s Fresh Face skin care brand is now in 10,000 doors and Markwins North America president Jim Koeppel expects the new line, with its low $3.99 price point, to be well received.
“Skin care and acne products are an important category,” he explained. “We have a strong customer base in the Wet n Wild franchise, but many of them are turned off by the high priced products in the category.”
29. Del Labs
Uniondale, NY
516.844.2020
www.dellabs.com
Sales: $311 million. Corporate sales: $393.6 million. Net loss: $18.7 million.
Key Personnel: Charles J. Hinkaty, president and chief executive officer; Harvey P. Alstodt, president, Del Cosmetics; Joseph Sinicropi, executive vice president and chief financial officer; Cary Newman, executive vice president, global operations.
Major Products: A range of personal care products including nail care, skin care, bleaches and depilatories, marketed under the Sally Hansen, Cornsilk, Lacross, Naturistics and N.Y.C. New York Color brands.
New Products: Sally Hansen—Hard as Nails Xtreme Wear, Star Opal nail glaze, Diamond Strength No Chip nail color, Five Minute French Manicure Kit, Lip Inflation, Extra Strength Brazilian hair remover collection.
Comments: Del Laboratories has a new owner, but the company is still a player in the U.S. household and personal care market. In January, 2005, DLI Acquisition Corp., an indirect, wholly-owned subsidiary of DLI Holding Corp., and a direct, wholly-owned subsidiary of DLI Holding II Corp., merged with and into Del Labs.
Sales within the cosmetic segment slipped a bit last year, falling 1.3%. The company blamed the decline on higher returns and sales incentives of $10.2 million, partially offset by higher shipments. According to ACNielsen data, Sally Hansen remains the No. 1 brand in the mass market nail care category with a 26.1% share. Sally Hansen also maintained its No. 1 share in nail treatment, with a 52.4% share. In addition, Sally Hansen increased its leading market share position to 31.6% in bleaches and depilatories.
In January 2006, the company announced it will eliminate manufacturing at its facility in Little Falls, NY. The company is transferring a majority of these manufacturing operations to its Rocky Point, NC facility and outsourcing the remainder.
30. Combe
White Plains, NY
914.694.5454
www.combe.com
Sales: $300 million (estimated).
Key Personnel: Christopher Combe, chairman, president and chief executive officer; Douglas M. McGraime, executive vice president and chief financial officer; Dominic P. DeMain, senior vice president, new business development; James E. Kelly, senior vice president, sales and marketing.
Major Products: Men’s grooming—Just for Men, Aqua Velva, Grecian Formula, Grecian 5, Just 5, Brylcreem, Lectric Shave, Williams Mug Soap; Skin care—Lanacane and Scalpicin; Oral care—Cepacol; Feminine care—Vagisil and Gynecort; Foot care—Odor-Eaters and Johnson’s Foot Soap; Denture care—Sea•Bond.
Comments: Over the years, privately-held Combe has put together a stable of well-known brands. The company got its start back in 1950 when Ivan Combe created Clearasil.
31. Prestige Brands
Irvington, NY
914.524.6800
www.prestigebrandsinc.com
Sales: $296 million. Net income: $26 million for the year ended March 31, 2006.
Key Personnel: Peter C. Mann, executive chairman; Frank Palantoni, president and chief executive officer; Peter J. Anderson, chief financial officer; Gerard F. Butler, chief sales officer; Eric M. Millar, senior vice president, operations.
Marketing Directors: Michael A. Fink, senior vice president, marketing, OTC/personal care; Charles M. Schrank, senior vice president, marketing, household.
Major Products: OTC—Compound W wart treatment, Chloraseptic sore throat treatment, New-Skin liquid bandage, Clear eyes and Murine eye care products, Little Remedies pediatric over-the-counter products; Personal Care—Cutex nail polish remover; Household care—Comet and Spic and Span household cleaning products.
New Products: Chore Boy and Dental Concepts (acquisitions) and Cutex Twister.
Comments: Sales increased 2.6% and net income jumped 157%. The increase in sales resulted from sales increases in the household cleaning segment and the acquisitions of Chore Boy and Dental Concepts, partially offset by declines in the over-the-counter and personal care segments. The Chore Boy and Dental Concepts brands contributed $11.6 million in revenues.
On April 1, Frank Palantoni was elected CEO. He had been president and COO. Peter C. Mann continues as executive chairman.
“In his relatively short tenure with Prestige, Frank Palantoni has made meaningful contributions to the operations of the company, and we are very pleased to recognize those accomplishments with this important increase in responsibilities,” said Mr. Mann. “Frank is a talented and experienced executive, and I am confident he will provide excellent leadership in the months and years ahead. Frank will now have direct responsibility for all operating functions within the company, including finance and legal. I will continue to be actively involved in setting strategic direction for Prestige and will now focus more time on corporate development and international expansion.”
Prior to joining Prestige, Mr. Palantoni served as global president and CEO of Gerber Products Company. He also held high level positions at Novartis Corporation, including CEO of Novartis Consumer Health. Prior to Novartis, he spent 10 years with Groupe Danone with increasing responsibilities in the U.S. and internationally.
32. Chattem
Chattanooga, TN
423.821.4571
www.chattem.com
Sales: $279 million. Net income: $36 million for the year ended Nov. 30, 2005.
Key Personnel: Zan Guerry, chairman and chief executive officer; Robert E. Bosworth, president and chief operating officer; Andrea M. Crouch, vice president, brand management; Ron Galante, vice president, new business development; B. Derrill Pitts, vice president, operations; J. Blair Ramey, vice president, brand management and media; Charles M. Stafford, vice president, sales.
Chief Scientific Officer: Donald K. Riker, vice president, research and development.
Chief Marketing Director: Richard W. Kornhauser, vice president, marketing.
Major Products: Skin care—Gold Bond; Hair care—Selsun Blue; Health care—Icy Hot, Aspercreme, Capzasin, Flexall; Supplements—Dexatrim, Garlique.
New Products: Icy Hot Pro-Therapy, Selsun Salon, BullFrog Kids UV Defender, BullFrog Mosquito Coast.
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Bullfrog’s Mosquito Coast combines sunblock with insect repellent. |
In the medicated skin care category, sales of Gold Bond rose 8%, due to strong sales of Gold Bond Ultimate Healing Lotion. Sales of Gold Bond Medicated Body & Foot Powder and Gold Bond Therapeutic Foot Cream also increased in fiscal 2005. In addition, the introduction of Gold Bond Ultimate Comfort Body Powder in fiscal 2005 delivered incremental sales to the Gold Bond portfolio.
Sales of medicated dandruff shampoos increased 11% on higher sales of Selsun Blue and the launch of Selsun Salon in the fourth quarter.
Dietary supplements’ sales were up 3%. Elsewhere, the company said sales of Bullfrog sun care products declined 3% principally due to unfavorable weather and the timing and magnitude of returns in the fourth quarter.
Fiscal 2006 got off to a good start, as sales rose 17% to a record $84 million. The results exclude sales of Phisoderm, which was divested in the first quarter of 2005.
“We are extremely pleased with our 23% increase in year-over-year sales,” commented Zan Guerry, chairman and chief executive officer. “This strong increase was driven by a positive initial sell-in of our new products, including Icy Hot Pro-Therapy and Selsun Salon, and strong sales from existing products such as Gold Bond Ultimate Healing Lotion and Dexatrim Max.”
Net income for the first quarter rose 70% to $14.8 million.
33. Phoenix Brands
Stamford, CT
203.975.0351
Sales: $275 million (estimated).
Key Personnel: Mark Landry, president.
Major Products: Rit fabric dyes, Niagara spray starch, Final Touch fabric softener and Sunlight dish detergent.
New Products: Fab, Dynamo, Arctic Power, ABC, Cold Power and Fresh Start detergents (acquisition).
Comments: Phoenix Brands LLC was formed by Lehman Brothers Merchant Banking Group to acquire a portfolio of four home care brands from Unilever in December 2003. The brands included Niagara, the No. 1 brand in the spray starch category, Rit, the leading U.S. fabric dye and Sunlight dish detergent, a leading brand in the Canadian hand dishwashing category.
About a year ago, Phoenix Brands acquired Colgate-Palmolive’s North American heavy-duty laundry detergent brands. The transaction included the sale of the detergent brands Fab, Dynamo, Arctic Power, ABC, Cold Power and Fresh Start, and the license of the Ajax brand for laundry detergent, in the U.S., Canada and Puerto Rico.
At the time of the divesture, Reuben Mark, Colgate’s chairman and CEO said, “The sale of these detergent brands is an important part of Colgate’s strategy to de-emphasize detergents while focusing on our high margin, fast-growing oral, personal and pet care businesses.”
34. WD-40 Company
San Diego, CA
619.275.1400
www.wd40.com.com
Sales: $263 million. Net income: $28 million for the year ended Aug. 31, 2005.
Key Personnel: Garry O. Ridge, president and chief executive officer; Michael L. Freeman, division president, the Americas; Geoffrey J. Holdsworth, manager director, Asia/Pacific, WD-40 Company (Australia) Pty. Ltd.; Michael J. Irwin, executive vice president, chief financial officer; Graham P. Milner, executive vice president, global development, chief branding officer; William B. Noble, managing director, Europe, WD-40 Company (UK) Ltd.
Chief Scientific Officer: Ernest Bernarducci, Ph.D., vice president, research and development.
Major Products: WD-40 lubricants, Lava hand cleaner, 3-in-One oil, X-14 hard surface cleaner, 2000 Flushes toilet bowl cleaner, Carpet Fresh rug deodorizer.
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The WD-40 family now includes much more than the eponymous lubricant. |
In the Americas, the company credited the gain in lubricant sales to higher sales of WD-40, which were up due to improved display and distribution through home centers, the success of the WD-40 Big Blast and the launch of the WD-40 Smart Straw and No-Mess Pen. But household product sales declined 3% in the region, due to a decline in Spot Shot and Carpet Fresh sales. The good news is that sales of X-14 hard surface cleaners surged 31% due to the successful launch of new products and the restaging of X-14 Mildew Stain Remover. Sales of heavy-duty hand cleaners increased 3% to nearly $5.6 million.
Europe’s big gain was attributed to the launch of 3-in-One Pro in Spain, and increased penetration of the WD-40 brand in Germany, the Netherlands, Austria and Switzerland. Sales in the UK actually declined, despite the successful launch of Carpet Fresh and Spot Shot. The company said Carpet Fresh No Vac is one of the first aerosol rug and room deodorizers in the UK.
Sales in Asia rose just 1% as declines in China, Tawain and Malaysia were offset by a 27% jump in Australia.
For the six months ended Feb. 28, 2006, the company’s sales rose more than 13% to $138.7 million. Second quarter sales were up 17% and net income surged 37%.
“We are pleased with the sales and profit growth we have generated across all of our trading blocs,” said Garry O. Ridge, WD-40 Company president and chief executive officer. “We have also started to see success from our commitment to innovation and the recent introduction of new products that have resulted from that strategy.”
In fiscal year 2006, WD-40 Company expects net sales to grow 9-14% to $288-$299 million.
35. Playtex
Westport, CT
203.341.4000
www.playtexproducts.com
Sales: $250 million (estimated) for personal care and household products. Corporate sales: $595 million. Net income: $26 million.
Key Personnel: Neil P. DeFeo, chairman, president and chief executive officer; Kris J. Kelly, executive vice president and chief financial officer; James S. Cook, senior vice president, operations; Gretchen R. Crist, vice president, human resources; Perry R. Beadon, senior vice president, global sales; Vincent S. Viviani, vice president, quality systems; Paul E. Yestrumskas, vice president, general counsel and secretary.
Chief Technical Officer: Thomas M. Schultz, senior vice president, research and development.
Chief Marketing Officers: Andrew A. Abraham, senior vice president, marketing; Jean Fufidio, vice president, sun care; Kathryn Bennett, director, skin care marketing.
Major Products: Banana Boat sun care products, Playtex and Wet Ones pre-moistened towelettes.
New Products: Banana Boat Ultra Mist.
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New products are driving sales of Banana Boat. |
Late last year 2005, Playtex completed the sale of the remaining non-core brand assets, which include Baby Magic, Mr. Bubble, Ogilvie, Binaca, Dorothy Gray, Dentax, Tek, Tussy, Chubs and Better Off brands. These non-core brand assets accounted for approximately 8% of consolidated net sales in fiscal 2005. In the third quarter of 2005, Playtex acquired certain distribution rights associated with its Banana Boat product for $32.5 million. These acquisitions give the company full control over the Banana Boat franchise and reduced complexity related to management of third-party distributorships.
In February, the company realigned its business to improve focus on core categories, reduce organizational complexity and obtain a more competitive cost structure. Some of the specific realignment initiatives included consolidation of the U.S./International divisional structure in favor of a product category structure; realignment of the sales and marketing organizations and related support functions; rationalization of manufacturing, warehousing and office facilities, including the outsourcing of gloves production to Malaysia; the closing of a manufacturing facility in Canada; and a reduction in the corporate headquarters office space. The company expects savings related to this phase will be approximately $23 million, which will be fully realized in 2006.
While Playtex was simplifying its corporate structure, the company’s sales rose in several key segments. Its Banana Boat sun care product line remains a strong No. 2 in dollar market share in the U.S. sun care category. Among pre-moistened towelettes, Wet Ones is the market share leader in the hands and face segment of the market. Wet Ones are used by parents and others in applications other than diaper changing, such as cleaning up after meals or traveling away from home. The pre-moistened towelette category experienced rapid growth during the past several years as competitors entered the category and invested heavily in advertising and promotion to generate trial of their product. This raised the awareness of towelette products, resulting in increased consumption in the marketplace, which has contributed to higher Wet Ones shipments.
Last year Wal-Mart represented approximately 28% of sales, followed by Target with 13%. The company’s next three largest customers represented, in total, approximately 11% of sales in 2005.
In March, Playtex Products appointed Neil P. DeFeo as the chairman. He replaced Douglas D. Wheat, who stepped down as chairman, but continues to serve on the board.
For the first quarter ended April 1, 2006, sales rose 3% to $176 million. It was the ninth consecutive quarter of year-over-year net sales growth for retained brands. Net income was $12.1 million.
First quarter skin care sales grew 9% in the quarter. Net sales of Banana Boat sun care products grew due to continued strong sell-in of its new 2006 products. Wet Ones hand and face wipes showed continued growth in the quarter due to category growth and new product sales.
36. Liz Claiborne
New York, NY
212.354.4900
www.lizclaiborne.com
Sales: $210 million (estimated) for cosmetics, toiletries and fragrances. Corporate sales: $4.8 billion. Net income: $317 million.
Key Personnel: Paul R. Charron, chairman and chief executive officer; Arthur Spiro, president, cosmetics.
Major Products: Women’s and men’s fragrances and related bath and body products marketed under the brand names Realities, Curve, Lizsport/Claiborne Sport, Mambo.
New Products: Liz and Soul fragrances.
Comments: Liz Claiborne celebrates its 30th anniversary in 2006. The company entered the beauty business 10 years later with the launch of its eponymous fragrance. Now company executives are looking to expand fragrance offerings further, quite possibly by launching scents under the Dana Buchman and Juicy Couture brands.
In 2005, sales of wholesale non-apparel were up due, in part, to sales gains derived from the continued growth of the Curve fragrances and the launch of the Liz and Soul fragrances. Corporate sales rose 4.6% to more than $4.8 billion last year. Net income was up less than 1%
As already widely-reported, chairman and CEO Paul R. Charron will retire at the end of the year. At press time, it looked as though Patrick Bousquet-Chavanne, a group president with Estée Lauder, was the favorite to replace Mr. Charron.
37. Orange Glo
Greenwood Village, CO
303.740.1909
www.greatcleaners.com
Sales: $200 million (estimated).
Key Personnel: David Appel, chairman; Joel Appel, president; Rachel Cullen, chief operating officer.
Major Products: OxiClean detergents, Orange Glo wood cleaners and Kaboom hard surface cleaners.
Comments: Privately-held Orange Glo International doesn’t divulge sales figures, but industry sources put annual sales at $200 million. That’s far from its peak just a few years ago, when the company had the oxygen bleach category to itself.
38. Parlux
Fort Lauderdale, FL
954.316.9000
www.parlux.com
Sales: $182 million. Net income: $22.4 million (unaudited) for the year ended March 31, 2006.
Key Personnel: Ilia Lekach, chairman and chief executive officer.
Major Products: Fragrances, cosmetics and beauty products. Brands include Paris Hilton, Perry Ellis, Guess?, XOXO, Ocean Pacific (OP), Maria Sharapova, Andy Roddick, babyGund, and Fred Hayman Beverly Hills.
Comments: Ilia is at it again. The notorious chairman and CEO of Parlux Fragrances is threatening to take the company private for $29 a share. When the announcement was made in June, the stock soared more than 12% to $21.11. Good news for investors, right? Maybe not. As analysts note, back in 2003 when its stock was trading around $3 a share, Mr. Lekach announced plans to take the company private at $4. But he couldn’t get financing and the deal was dropped.
A year ago, with its stock at $30, the company hired an investment bank to “enhance shareholder value.” Hmm, we’re not Warren Buffet, but when shares jump from $3 to $30 in two years, that seems like a damn good investment. Alas, the surge was short-lived. After topping out at $38 a share in February, the stock fell to $18 after analysts questioned the staying power of the Paris Hilton brand. Now, the stock is up again on word of privatization plans. Another reason for going private is the fact that Mr. Lekach doesn’t like the cost of complying with Sarbanes-Oxley, which calls for speedier filing than Parlux management is accustomed.
While the board mulls the future of Parlux, they’ll have to take some time out to count the money. For the year ended March 31, sales surged 80% to more than $182 million and net income more than doubled to $22.4 million.
“Our excellent results were attributable to the continuing solid performance of our Perry Ellis fragrances combined with the stellar growth of Paris Hilton fragrances and the successful launch of our Guess fragrances,” said Mr. Lekach. “We recently initiated the sale of Paris Hilton watches and handbags and expect to introduce Paris Hilton cosmetics and sunglasses during fiscal 2007.”
He expects sales to reach $270-280 million next year.
39. Turtle Wax
Chicago, IL
708.563.3600
www.turtlewax.com
Sales: $178 million (estimated).
Key Personnel: Denis John Healy, chief executive officer.
Chief Scientific Officer: Mike Schultz, vice president, product development.
Chief Marketing Officer: Matthew Broderick, vice president, marketing.
Product Manager and Major Products: Rob Zaremba—Ice, Platinum, Super Hard Shell, CD-2 and Marvel Mystery Oil.
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Turtle Wax is driving sales with a variety of unique promotions. In fact, the company ad budget recently reached $10 million. |
Comments: Turtle Wax is running smoothly again. After several years of stagnant sales, the privately-held company is on a roll with a third-generation Healy at the helm. At his family’s request, Denis John Healy took over the company business in the middle of 2005 and has the company growing again. First, he outsourced all production. Next he set his sights on promotion. In May, Turtle Wax introduced a $10 million ad program—its biggest ever.
Now the company is launching a bevy of new products, expanding its presence in the automated carwash segment and entering the home care category too. Next year, there’s plans to introduce car air freshener sprays and dispensers, vibrating sprayers and applicators for cleaning fluids, a paste version of Turtle Wax liquid ICE weatherproof protector and a new cleaning chemical that can remove tree sap and road grime. To make it all happen, the company is boosting its R&D spending, which will top $12 million, Mr. Healy told The Chicago Sun-Times.
All his efforts are getting noticed. Last month Consumer Reports announced that Turtle Wax, along with Black Magic, outperformed more than two dozen liquid, paste, and spray car waxes. The article can be found in the July issue of Consumer Reports.
40. Herbalife
Los Angeles, CA
310.410.9600
www.herbalife.com
Sales: $163 million for personal care products. Corporate sales: $1.6 billion. Net income: $93 million.
Key Personnel: Michael O. Johnson, chief executive officer; Greg Probert, president and chief operating officer.
Major Products: Outer nutrition products include skin cleansers, toners, moisturizers and facial masks, shampoos and conditioners, body washes and fragrances for men and women.
New Products: NouriFusion skin care.
Comments: Corporate sales rose 19.6% last year. Herbalife is primarily a nutritional supplement company, but it does have a thriving personal care business. Last year, the company rolled out NouriFusion, a skin care line that helped diversify the company’s product portfolio. NouriFusion includes cleansers, toners, scrubs, creams and masks.
The company’s distributor organization reached record levels in 2005, with the total number of supervisors exceeding 334,000. That’s a 12% increase from 2004.
41. NCH
Irving, TX
203.351.9000
www.nch.com
Sales: $150 million (estimated) for chemical specialty products. Corporate sales: $690 million.
Key Personnel: Irvin L. Levy, chairman and president; John I. Levy, executive vice president; Lester A. Levy Jr., executive vice president; Robert M. Levy, executive vice president; Walter M. Levy, executive vice president.
Major Products: Industrial and institutional cleaners.
Comments: Privately-held NCH remains one of the biggest U.S. players in the industrial and institutional cleaning market. But over the years, the company’s product mix has shifted toward fasteners, welding alloys and plumbing parts.
42. OPI Products
N. Hollywood, CA
818.759.2400
www.opi.com
Sales: $123 million (estimated).
Key Personnel: George Schaeffer, president and chief executive officer; Eric Schwartz, chief operating officer; Suzi Weiss-Fischmann, executive vice president and artistic director.
Major Products: Color cosmetics, skin care and personal care products.
New Products: Pedicure by OPI, Brights by OPI, Mexico color collection, Feet by OPI.
Comments: Sales rose more than 11% last year. The awards keep piling up for OPI, which has long been a hit with celebrity-types. Last year, Cosmopolitan beauty editors named OPI Nail Lacquer That’s Berry Daring the No. 1 nail color in the magazine’s annual Cosmo Beauty Awards. Accolades came from outside the U.S. too, as Elle Japan readers picked OPI’s Nomad’s Dream shade as their favorite nail lacquer.
43. BeautiControl
Carrollton, TX
972.458.0601
www.beauticontrol.com
Sales: $122 million for cosmetics and toiletries. Corporate sales: $147 million.
Key Personnel: Kristi L. Hubbard, president; Melissa Brisbois, executive vice president; Amelia Spolec, senior vice president, information technology and chief information officer; Erin Bender, vice president, marketing and internet services; Teresa Burchfield, vice president and controller.
Chief Scientific Officer: Gary Jones, vice president, research and development.
Chief Marketing Officer: Jo-Anne Jaeger, senior vice president, marketing and international.
Major Products: Skinlogics daily maintenance skin care; All Clear daily maintenance for acne prone skin; Skin Equations daily maintenance for sensitive skin; Skin Strategies skin care for men; Regeneration, Regeneration Gold and Platinum Regeneration repair products including polyhydroxy and alpha hydroxy acid products, at-home chemical peel; Cell Block-C prevention products; Microderm Abrasion, at-home microdermabrasion treatment for face and body; Sculptique Body Contour Crème; Body Glue clothing adhesive; Therma del Sol body care; Herbal Serenity bath and body collection; Spä bath and body collection; Save Your Sole pedicure collection; Sunlogics sun care; Secret AGEnt color products; Beauti by BeautiControl color products including eye shadow, blush, lip color, eye and lip pencils, foundations, primers; Color Freeze color products; SpectacuLash mascara.
New Products: Regeneration chemical peel; Cell Block-C face and neck serum 20%; Beauti by BeautiControl, including eye shadow duos, blush, eye and lip liners; Secret AGEnt Color Primers and Hide the Shine; SpectacuLash mascara; lip gloss; Spä Brown Sugar bath and body collection; Skin Strategies skin care and cologne for men (reformulations and line extensions); Body Glu clothing adhesive (reformulation); Skinlogics Lip Balm SPF 20; Unmistakable women’s fragrance; All Clear (reformulations and line extensions); Perfecting Wet/Dry Finish (reformulation); Therma del Sol Lavender bath and body collection; Regeneration Gold (reformulations); Platinum Regeneration Line Arrest Skin Perfecting Wrinkler Filler; Regeneration Gold Lip Therapy; BeautiBistro bath and body collection; Sculptique Body Contour Crème; Regeneration and All Clear brands.
Comments: BeautiControl is celebrating its 25th anniversary this year. The company was founded back in 1981 by Jinger and Richard Heath and is now part of Tupperware Brands Corporation.
44. Bonne Bell
Lakewood, OH
216.221.0800
www.bonnebell.com
Sales: $120 million (estimated).
Key Personnel: Jess A. Bell Jr., chairman.
Major Products: Face, lip and nail color. Brands include Bonne Bell, Lipsmackers and Bottled Emotion.
New Products: Blend ‘n Glow multi-tone powder, F’lip Style lip color, Kiss This gloss.
Comments: Industry sources estimate Bonne Bell’s sales rose more than 3% last year.
45. Gojo
Akron, OH
330.255.6000
www.gojo.com
Sales: $105 million (estimated).
Key Personnel: Joseph Kanfer, president and chief executive officer.
Major Products: Skin care products and services for healthcare, foodservice, education, manufacturing, other workplace environments, and consumers around the world.
New Products: Purell Sanitizing hand wipes, E1 Foam hand wash, Purell FST military bottle.
Comments: Gojo expanded Purell’s position in the hand care category with the launch of Purell Sanitizing Hand Wipes, a convenient amenity item that sanitizes hands while removing light soils and dirt. The wipes are said to be an integral part of Purell’s Out Front strategy, which is a program that puts Purell Instant Hand Sanitizer in the dining rooms of casual and quick-service restaurants.
46. Burt’s Bees
Durham, NC
630.571.2870
www.burtsbees.com
Sales: $100 million (estimated).
Key Personnel: John Replogle, president and chief executive officer; Ken Troshinsky, chief financial officer; Renee Quimby, vice president, sales and marketing.
Chief Marketing Officer: Mike Indursky, chief marketing and strategic officer.
Major Products: Lip care balm, gloss and lipstick; Facial care—cleansers, exfoliants, toners, moisturizers and complexion mists; Body care—hand and foot crèmes, bath and shower, moisturizers and deodorants; Baby care—oils, soaps, ointments, lotions; Hair care—shampoos and conditioners; Oral care—toothpastes and breath drops; Cosmetics—eye color, cheek color, tinted moisturizer.
New Products: Super Shiny Grapefruit & Sugar Beet shampoo and conditioner, Peppermint foot lotion, Ginger Root & Citrus body wash. To be launched—Raspberry & Brazil Nut shampoo and conditioner, Peach and Willow Bark Deep Pore scrub, Honey & Shea Butter body butter, Radiance face cream.
Comments: Burt’s Bees is buzzing again thanks to growing consumer interest in natural products. What’s more, retailers are starting to cater to the needs of the natural-biased consumer. This summer, Burt’s Bees will begin selling products in about 200 Ulta and 1,200 GNC stores. With these two new retail partners in place, Burt’s Bees will be carried in about 22,000 doors nationwide.
Leading the expansion is new CEO John Replogle, who had been with Unilever prior to joining Burt’s Bees earlier this year. At Unilever, Mr. Replogle served as general manager of the skin care division. He replaced former CEO and president Doug Meyer who left the company to pursue other interests.
46. Merle Norman
Los Angeles, CA
310.641.3000
www.merlenorman.com
Sales: $100 million (estimated).
Key Personnel: Jack B. Nethercutt II, chairman; Art Armstrong, chief executive officer; Mark Grimmett, chief financial officer; Robert Dunlap, vice president, operations; Carol La Porta, vice president, studio development.
Major Products: Skin care and color cosmetics.
New Products: Luxiva Micro-Refiner, Wrinkle Smoother Eye and Creamy Concealer; Wild Things Summer 2006 color cosmetics collection.
Comments: Merle Norman’s skin care and cosmetics products are sold through approximately 2,000 studios in the U.S. and Canada.
46. Rochester Midland
Rochester, NY
585.336.2200
www.rochestermidland.com
Sales: $100 million (estimated).
Key Personnel: H.D. Calkins, chairman and chief executive officer.
Major Products: Industrial and institutional cleaning products and related items.
Comments: Founded as Rochester Germicide in 1888, Rochester Midland Corporation is one of only four companies still in business in Rochester since 1900.
46. Spartan
Maumee, OH
419.531.5551
www.spartanchemical.com
Sales: $100 million.
Key Personnel: Stephen H. Swigart, president and chief executive officer; James Lenardson, vice president, operations; Scott Libbe, secretary/treasurer; Gordon Hufford, corporate vice president.
Chief Scientific Officer: William Schalitz, vice president, research and development.
Chief Marketing Officers: Greg Ford, vice president, sales; Marygrace Miller, advertising/marketing manager.
Major Products and Product Managers: Building service contractors—Frank Trevisani; Food processing—Chris Celusta; Bioaugmentation—John Schauff; Green Solutions—Melanie Mance.
New Products: Consume Drop-in-a-Drain biorenewable products. To be launched: Water-free urinal cleaner, foaming hand soaps, transportation cleaners.
Comments: Sales jumped more than 10% last year for privately-held Spartan Chemical. In recent years, the company has rolled out an array of environmentally-friendly I&I cleaning products. Its Green Solutions line includes all-purpose, glass, carpet and industrial cleaners, disinfectants and floor finishes.
“We were the first to promote bioaugmentation products and one of the first to come out with green environmental products,” Marygrace Miller, Spartan’s advertising/marketing manager, told Happi last year. “We’re really stepping up to the forefront in this segment.”
50. State Industrial
Cleveland, OH
800.782.2436
www.stateindustrial.com
Sales: $96 million (estimated).
Key Personnel: Harold Uhrman, president and chief executive officer; Jim Beard, vice president of marketing
Major Products: Air care, drain maintenance, cleaners, restroom care, water treatment and related products for the building, government, education, health care, and industrial markets.
New Products: BOA air care system.
Comments: Formed in 1911, State Industrial Products is a privately held company with a continuing commitment to “Care for Work Environments.” State Industrial Products has been ISO 9001:2000 certified since 2001 and ISO 14001 certified since 2002. State is also an active participant in the Consumer Specialty Products Association Product Care program.
State’s Gator drain care product received EPA Design for the Environment (DfE) certification in 2002. State’s innovative New Era parts washing fluid received DfE certification in 2003 and is exempted from parts washing requirements in the L.A. Basin by the South Coast Air Quality Management District in California.
The State Fragrance Factory continues to be a market- leading odor control and facility fragrance system in use throughout North America in commercial, institutional and industrial settings. The State 24/7 Drain Care system keeps challenging drains running smoothly through a combination of state-of-the-art products, innovative feeders and reliable service. With a focus on super concentrated cleaners, the State One Solution system saves facility operators time and money while maintaining outstanding cleaning results.
State executives insist that they’ve solved the problem of eliminating odors and freshening air in large spaces and entire buildings with the introduction of the BOA air care system. This unique product is installed in handling equipment, easily treating ballrooms, convention spaces, casinos and industrial plants. Because the BOA utilizes State Industrial’s proprietary SE-500 odor elimination technology, treated spaces are free of unpleasant odors.
Companies to Watch
Blistex
Oak Brook, IL
630.571.2870
www.blistex.com
Sales: $66 million (estimated) for the year ended June 30, 2005.
Key Personnel: David C. Arch, chairman and chief executive officer; Michael Donnantuono, president; Richard K. Green, chief operating officer; Phillip Hoolehan, vice president, finance.
Marketing Director: Brian E. Satre.
Major Products: Blistex, Pro Care, Pro Relief and Spa Effects lip care products; Stri-Dex acne treatments.
New Products: Lip Infusion.
Comments: The company calls its new Lip Infusion a unique liquid balm that glides on with an ultra-smooth rolling tip applicator. Lip Infusion’s liquid formula feels light and comfortable on lips while providing concentrated moisturizers and all the sun and dryness protection lips need. It provides SPF 15 protection.
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Ormand Beach, FL
386.677.9559
www.hawaiiantropic.com
Sales: $65 million (estimated).
Key Personnel: Jack Surrette, executive vice president, marketing and sales; Bill Jennings, executive vice president, finance; Larry Adams, executive vice president and general counsel.
Chief Scientific Officer: Dennis Lott, vice president, technical affairs; Kelly Lewellen, director of research and development.
Chief Marketing Officers: Shelly Coluccio, vice president of marketing; Stephanie Mellenberndt, director of marketing.
Major Products: Dark Tanning Oil, Dark Tanning Lotion SPF 4, Protection Plus 15, 30 and 45 and Baby Faces SPF 60+.
New Products: Ozone Sport Lip Balm SPF 45+, Ozone Sport SPF 30+, Baby Faces Stick SPF 50+, Baby Faces Spray SPF 50, Kids Convenience Pack SPF 60+, Island Glow Daily Moisturizers, T2Max Body Butter, Lime Coolada Moisturizer and New Advanced SunSure Technology in products SPF 15 and above.
Comments: Privately-held Tanning Research Labs is the No. 4 player in the U.S. mass market sun care category, according to Information Resources, Inc., Chicago.
CCA
East Rutherford, NJ
201.330.1400
www.ccaindustries.com
Sales: $64 million. Net income: $3.7 million.
Key Personnel: David Edell, chief executive officer; Ira W. Berman, chairman; Dunnan Edell, president, chief operating officer; Stephen Heit, executive vice president, operations; John Bingham, chief financial officer.
Chief Scientific Officer: Drew Edell, executive vice president, research and product development.
Major Products: Plus+White whitening toothpastes; Booster and Sudden Change skin care products; Nutra Nail, Power Gel and Nutra Nail 60 nail treatments; Bikini Zone pre- and aftershave products, Hair Off depilatories, Wash n’ Curl shampoos, Cherry Vanilla perfumes, Scar Zone scar diminishing cream.
Comments: Revenues for the fiscal year ended November 30, 2005 rose to a record $64 million. Net income topped $3.7 million, despite the disappointing launch of the Denise Austin Skin Fit for Life line. By product category, dietary supplements accounted for 35% of sales, followed by skin care, 31%; oral care, 17%; nail care, 9%; hair care, 5%; and fragrance and miscellaneous, 3%.
Company executives noted that Mega-T dietary supplement is CCA’s strongest brand. Other good performers include Plus+White Xtra toothpaste and Nutra Nail.
“Our focus in fiscal 2006 is to grow internally, the way we have grown in the past, plus grow externally,” said David Edell, chief executive officer. “We are actively seeking to acquire additional products and use our free cash and financial leverage to help us reach the $100 million revenue target.”
For the first quarter of 2006, sales rose 4.5% to more than $15 million. Net income jumped 13.4% to more than $1 million. The continued sales growth of CCA’s core brands’ products helped achieve the record first quarter results. The sales increase was led by Plus+White Oral Care Xtra Whitening Toothpastes and Speed Whitening Gels, Sudden Change new Green Tea formulated skin care products and Bikini Zone’s new shave gels and depilatory kits. In a preliminary look at second quarter results, the company said it expects to easily surpass the record sales set in 2005.
CR Brands
West Chester, OH
513.860.5039
Sales: $60 million.
Key Personnel: Allen McIntyre, chief executive officer; Richard Owen, chief operating officer.
Chief Scientific Officer: Richard Owen.
Chief Marketing Officer: Mark Winterhalter.
Major Products and Product Managers: Magnum Power and Pine Power—Erin Martin; Mean Green—Andy Young; Biz—Mark Winterhalter; Oxydol—Randy Flannery.
Comments: CR Brands is a new company formed by the merging of Chempro Brands and Redox. Both are chemical specialties companies, but while Redox brands are found in grocery and mass merchandisers, Chempro products are primarily distributed in dollar stores. The one common customer—Wal-Mart—provided more than enough synergies to make the merger make sense, according to company executives. Prior to the merger, Redox relied on contract manufacturers to produce its product portfolio. But Chempro has production facilities in North Carolina that should boost profitability. Company executives expect sales to top $70 million in 2006, with the ultimate goal of $100 million in annual sales.
Obagi
Long Beach, CA
562.628.1007
www.obagi.com
Sales: $53 million (estimated) for household and personal products.
Key Personnel: Austin McNamara, chairman; Steven R. Carlson, president and chief executive officer; Curtis A. Cluff, executive vice president, corporate development and operations; Stephen A. Garcia, chief financial officer.
Chief Marketing Officer: William F. Bruckner, vice president, marketing.
Major Products: Physician-dispense skin care systems.
New Products: Professional-C Serum.
Comments: Professional skin care sales are sizzling. Industry sources say segment sales approach $700 million and are growing more than 12% a year. Obagi is the leading player in the professional skin care category and is making its debut in The Top 50. The company calls itself a specialty pharmaceutical company that develops and commercializes innovative skin health products for the dermatology, plastic surgery and related aesthetic and therapeutic markets. Obagi System products are only available through physicians, which include over 3,500 in the U.S., primarily dermatologists, plastic surgeons, medical spas and other skin care specialists. Obagi also works with 11 distributors, who support 37 countries globally.
The company’s namesake is Dr. Zein E. Obagi, a dermatologist based in Beverly Hills, CA.
CPAC
Leicester, NY
585.382.3223
www.cpac.com
Sales: $52 million for household and personal care products. Corporate sales: $87 million. Net income: $465,000 for the year ended March 31, 2006.
Key Personnel: Thomas N. Hendrickson, president and chief executive officer, CPAC; Thomas J. Weldgen, vice president finance and chief financial officer, CPAC; Wendy F. Clay, vice president administration, CPAC; James W. Pembroke, chief accounting officer, CPAC; Steven E. Baune, president, CPAC Imaging, Brady Gros, chief operating officer, Fuller Brush; Fernando Morthera, president, Stanley Home Products.
Chief Marketing Officer: Dennis Brinly, chief marketing officer, Fuller Brush.
Chief Scientific Officer: Lewis Gray, vice president of research & development.
Major Products and Product Managers: Darren H. Bartels, director of marketing, The Fuller Brush Co.; Cindi A. Bentley, director of marketing, Cleaning Technologies Group; Elaine J. Nikodem, vice president, marketing, Stanley Home Products.
New Products: Fuller Brush—Micro-encapsulated Stainless Steel Cleaner, Micro-encapsulated Wood Furniture Cleaner & Polish, Oxy Canvas Fabric and Awning Cleaner, HyperOx Carpet and Fabric Spotter, Clothes Dryer Hose Brush and Reach it Duster. Stanley Home Products—Orange Miracle Power Gel Pre-Wash, GrimeGuard Stone Care Floor Cleaner with Dual Action Foam, OXY Z3 Oxygen-Activated Stain Lifter, OXY OTS “On The Spot” Carpet Cleaner with Activated Oxygen Power.
Comments: Household cleaning sales declined 2.2% for the year ended March 31, 2006. Fuller Brush sales fell as a result of fewer television airings. Stanley Home Product sales fell 6%, but Cleaning Technologies’s sales rose 6%.
The Fuller Brands businesses have acquired major private label accounts in automotive, marine and recreational markets, and commercial cleaning. The Fuller Brush Company continues its growth in direct-to-consumer marketing via its relationship with QVC, now in its fourth year. Fuller is also expanding its presence and strengthening its brand through increased exposure in regional and big box retail chains.
In May, Thomas N. Hendrickson underwent surgery for a peptic ulcer. He has taken a temporary leave of absence and is expected back in September. The board appointed Thomas J. Weldgen acting CEO. Mr. Weldgen is vice president of finance and CFO of the company.
N.V. Perricone M.D.
Meriden, CT
203.379.0726
www.nvperricone.com
Sales: $52 million (estimated).
Key Personnel: Nicholas V. Perricone, founder.
Major Products: A full range of skin care products including eye, face, body and lip care; cleansers and toners, moisturizers, acne treatments and supplements.
Comments: As a pioneer in the segment and an early proponent of inflammation reduction, Nicholas V. Perricone helped create the professional skin care category. Now his company is one of the most successful in the industry.
