Sales: $6.2 billion
Key Personnel: Stefan F. Heidenreich, chief executive officer; Jesper Andersen, executive board member, finance and quality; Stefan De Loecker, executive board member, Near East and Americas; Ralph Gusko, executive board member, consumer brands and Asia Pacific; Thomas Ingelfinger, executive board member, Europe; Zhengrong Liu, executive board member, human resources and corporate communications; Vincent Warnery, executive board member, pharmacy and selective.
Major Products: Skin care and personal care products that include Nivea, Eucerin and La Prairie.
New Products: Nivea Deo Protect & Care, Nivea Hairmilk Care Shampoo and Conditioner, Nivea Care Shower Silk Mousses and Nivea Crème Care Facial Cleansing range, La Prairie Skin Caviar Essence-in-Lotion, La Prairie Cellular Radiance Perfecting Fluide Pure Gold.
Comments: Corporate sales rose 1% and consumer sales were just a tiny bit better, with a gain of 1.1%. But company executives proudly noted that emerging markets accounted for more than half of sales last year in the consumer segment, driven by double-digit gains in Russia, Brazil, Mexico, India, Korea and South Africa.
As part of its Blue Agenda, Beiersdorf is intent on expanding the Nivea brand and expanding into emerging markets, two objectives that the company more than met in 2016. In fact, Nivea was again voted Germany’s most trusted brand in 2016. In an effort to give the people what they want, Beiersdorf successfully expanded the Nivea name with the rollout of Nivea Deo Protect & Care to more than 100 countries. Meanwhile, a new conditioner, shampoo, shower milk and facial cleanser were all launched under the Nivea umbrella.
Sales of Nivea products rose 3.8% last year thanks to gains posted by existing products like Nivea Deo, Shower, All-Purpose Creams, Men, Black & White and Fresh.
Eucerin’s sales rose 1.5% driven by gains within the sun care category and particularly good results in Germany, Italy and Korea.
La Prairie sales were buoyed by the Skin Caviar collection, especially Skin Caviar Liquid Lift and the rollout of Skin Caviar Essence-in-Lotion. Another new product, Cellular Radiance Perfecting Fluide Pure Gold, also drove sales higher. Travel retail, China, Australia and the UK were all good markets for this prestige brand.
The good news continued into 2017, as corporate sales rose 7.7%, thanks to a 13.3% gain in the Americas. Most of the increase could be tracked back to the Tesa medical business, but consumer product sales rose 3%. Within the consumer business, Eastern European sales surged more than 18% and Latin American sales soared 20.3%.
Earlier this Summer, Beiersdorf noted that, like many other multinationals, its IT system was hit by a cyberattack. The perps disrupted phone and email operations, but both were up and running within a couple of days—all without any data leakage.
Beiersdorf plans to build a new €230 million headquarters and research center in the company’s home district of Hamburg-Eimsbüttel. For decades now, the company has used three neighboring sites. The new headquarters will replace the headquarters situated between Unnastrasse and Quickbornstrasse. By adding the research building (which will be ready in early 2020), Beiersdorf will expand its research and development capacities in Hamburg to 45,000 square meters.
“With the construction of our new headquarters in Hamburg, Beiersdorf is sending a clear signal about its future growth. We have been very successful in recent years. We have significantly expanded our international business, developed outstanding innovations and put Beiersdorf on a stable and profitable growth path. This is the result of all our employees’ hard work,” said Stefan F. Heidenreich, CEO of Beiersdorf AG. He added: “Building a new headquarters shows the confidence we have in our business strengths. With this major investment, we are also expressing our commitment to Hamburg and Germany as business locations. Beiersdorf and Hamburg are connected by their open-mindedness and internationality. It’s a good fit.”