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    Top Companies Report

    19. Guthy-Renker

    ...

    07.13.10
    Palm Desert, CA
    760.773.9022
    www.guthy-renker.com
    Sales: $1.1 billion


    Sales:
    $1.1 billion (estimated) for cosmetics and personal care products. Corporate sales: $1.5 billion

    Key Personnel:
    Ben Van de Bunt and Kevin Knee, co-chief executive officers and presidents

    Major Products:
    Cosmetics and personal care brands including Proactiv, Principal Secret, Youthful Essence, Sheer Cover, Meaningful Beauty, Natural Advantage, In An Instant, Wen by Chaz Dean, Scalp Med

    New Products:
    Chris McMillan hair care and Ice Elements skin care

    Comments:
    Not even those ubiquitous infomercials are immune from recession. Sales at privately-held Guthy-Renker declined an estimated 8% in 2009, but company executives are confident that international expansion will provide a lift this year.

    About a year ago, Guthy-Renker debuted in India, and is now launching in Russia. With operations already in place in Europe, Asia and Australia, international sales account for 30% of the company's total.

    By brand, Proactiv, with sales in excess of $800 million, remains Guthy-Renker’s largest brand, despite plenty of competition in the acne category. Meaningful Beauty by Cindy Crawford is Guthy-Renker’s second-largest beauty brand, ahead of third-place mineral makeup brand Sheer Cover by Leeza Gibbons. Rounding out the top five are Chaz Dean’s Wen hair care line and Principal Secret by Victoria Principal, a skin care brand.

    New brands include Chris McMillan Hair and skin care brand Ice Elements; in the works is a hair and scalp brand called Salon Silky with “Dancing with the Stars” co-host Samantha Harris, due out this fall. Down the road, Guthy-Renker will test three new brands next year within the eyebrow, skin care and acne categories.

    Nearly a year ago, Ben Van de Bunt and Kevin Knee assumed the additional roles of co-CEOs; they had been co-presidents. Van de Bunt oversees all facets of marketing for current and newly developed brands, while Knee oversees business operations, encompassing IT, finance, and international business units. Co-founders Bill Guthy and Greg Renker remain co-chairmen.

    Earlier this year, Guthy-Renker signed pop music stars Katy Perry and Avril Lavigne, as well as actress Jenna Fischer, to promote Proactiv. Prior to this signing, Proactiv has been pitched by the likes of Vanessa Williams and Jessica Simpson. Others in the Proactiv lineup include Mandy Moore, Jennifer Love Hewitt, Ryan Sheckler and Julianne Hough. Proactiv is carried in 58 countries, and approximately 40% of its sales are from outside of the U.S.
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