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    Top Companies Report

    19. New Avon

    ...

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    07.01.16
    New York, NY
    212.282.6000
    about.avon.com

    Sales: $1 billion for skin care, fragrances and color.

    Key Personnel: Scott White, chief executive officer; Steve Bosson, chief operation officer; Lance Arneson, interim chief financial officer; Gloria Basem, interim vice president, human resources; Rick Boyle, vice president, IT; Debbie Coffey, interim vice president, communications; Margaret Gramann, vice president, sales; Matt Harker, vice president, marketing; Stephen Laverty, interim vice president, supply chain; Karen Leu, vice president and general counsel; Jackie Marcus, vice president, supply chain; Goran Petrovic, general manager, Avon Canada; Dinesh Popat, chief representative officer; Helene F. Rutledge, chief innovation officer and Renee Seaman, executive director, Puerto Rico and alternate channels.

    Major Products: Color—Avon Makeup Collection; Avon Naturals and Foot Works; Skin Care—Anew, Anew Clinical, Anew Genics, Clearskin Professional and Avon Solutions; Fragrances—Outspoken and Outspoken Intense by Fergie, Derek Jeter Driven and Derek Jeter Black, Hervé Léger Homme, Step into Sexy, Scentini Fragrance Collection, Rare Diamonds, Eternal Magic, Far Away.  

    New Products: Mark—Hawaii Five Oh! eyeshadow, Sunset Glow face bronzer, Nailed It Maui Bliss mini gel nail lacquers, Gel Finish 7-in-1 nail enamel Gel Finish top coat, Maui Bliss body mist and body wash. Anew—Skinvincible Day lotion, Anew Clean Illuminating Rich cleansing foam, Anew Clean Comforting Cream Cleanser & Mask, Anew Clean Purifying Gel Cleanser, Anew Clean Cleansing Brush. Avon—Senses Ocean Refreshing Blue shower gel, body lotion and body spray, Senses Lily and Honeysuckle Blossom bubble bath. Fragrance—Avon Luck La Vie EDP and Night Magic cologne spray

    Comments: It’s sort of ironic that Avon turned to Cerberus for help. After all, dogs have never been considered a door-to-door salesman’s best friend, so what does it mean when the canine that comes knocking is a mythical three-headed dog that guards the gates of Hell?

    One thing is certain; it’s going to take a Herculean effort to get Avon growing again in North America.

    The company’s North American sales have fallen from $2.6 billion in 2007 to about $1 billion last year. New CEO Scott White has his work cut out for him, but with stints at Abbott Labs and Procter & Gamble, New Avon’s board is confident in a North American turnaround.

    “Scott is a world-class executive whose diverse experience leading successful business turnarounds, building strong brands, setting winning strategies, and driving operational excellence provides the unique skill set required to lead New Avon on a path to long-term success,” said Chan W. Galbato, chairman of New Avon’s board of managers. “He is the right leader to shepherd New Avon as it transforms into a growing, contemporary, best-in-class social selling company that positively impacts lives through beauty.”

    Just last month, Jack Stahl was appointed chairman of the company’s board of managers. He succeeds Chan Galbato, chief executive officer, Cerberus Operations and Advisory Company LLC, who had been serving as acting chairman following the acquisition of Avon Products Inc.’s North American business by Cerberus Capital Management earlier this year. Galbato will continue to serve on the board.

    Stahl is a former chief executive officer and president of Revlon, and has more than 30 years of experience in the fast moving consumer goods industry.

    “As a strong believer in the direct selling model and a long admirer of the Avon brand, I am honored to chair the New Avon board at this pivotal moment for the company,” said Stahl. “Together with Scott, his talented management team, a truly remarkable group of associates, and an unmatched network of representatives, we will work to reassert Avon’s leadership in the direct selling and beauty industries.”

    Besides Galbato, Stahl and White, members of the New Avon Board of Managers include a familiar face to the beauty industry—Susan Kropf, a former president and chief operating officer of Avon Products, Inc. Others members are: Ethan Klemperer, president, Cerberus Operations and Advisory Company, LLC; Steven Mayer, senior managing director, co-head global private equity and chairman of investment committee, Cerberus Capital Management, LP; Sheri McCoy, chief executive officer, Avon Products, Inc. and Michael Sanford, managing director and co-head North American private equity, Cerberus Capital Management, LP.

    As this issue was headed to press, New Avon added another industry veteran to a key post; Betty Palm has been hired as president, social selling in the US. A veteran executive of the direct-selling industry and the founder of a strategic consulting firm, Palm has been consulting with New Avon for the last several months.
     
    In her new in-house role, will be responsible for transforming the representative experience. To accelerate these efforts, the company has put in place a new structure for its sales organization, aligned under Palm. She will oversee all aspects of recruiting, training and incentivizing representatives, as well as providing representatives the tools they need to drive a more contemporary, efficient and profitable experience, the firm said.

    With its team in place, New Avon appears ready to turn around results in North America.
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