Sales: $7.5 billion
Key Personnel: Thomas-Bernd Quaas, executive board chairman; Dr. Bernhard Düttmann, executive board member-finance; Peter Kleinschmidt, executive board member-human resources and sustainability; Pieter Nota executive board member-brands (marketing, research and development, sales); Markus Pinger, executive board member-supply chain; James C. Wei, executive board member-New Ways to Business.
Major Products: Skin care, beauty care and toiletries sold under brand names that include Nivea, Eucerin, La Prairie, Slek, Labello, 8x4, Florena, SBT Skin Biology Therapy.
New Products: Nivea—Lip Care (U.S.), Double Effect deodorant; Eucerin—DermoDensifyer. La Prairie—Advanced Marine Biology day cream with SPF 20 and Cellular Serum Platinum Rare.
Comments: In 2008, Beiersdorf’s consumer business segment—which incorporates all of its personal care and beauty products including bandages—recorded sales of $7.5 billion, a rise of 12.3% when adjusted for currency translation effects, or 10% at current exchange rates. Excluding the acquisition of its Chinese hair care business at the end of 2007 and the increase in the interest in Beiersdorf AG (Switzerland) to 100%, organic sales growth was 8.6%, the company said.
On a brand level, Nivea’s sales rose 10% (adjusted for currency translation effects), driven by deodorant, hair care, bath care and Nivea for Men products.In particular, the launches of Nivea body My Silhouette and the Nivea for Men Extreme Comfort range were extremely encouraging, according to the company. Nivea Hair Care continued its success following its relaunch in 2007, however, Nivea body recorded significantly weaker growth compared to 2007’s performance.
Beiersdorf reported that it met all of its targets for Eucerin, and as a result, sales of the brand rose 12.6% (adjusted for currency translation effects) in 2008. Eucerin’s anti-aging products performed especially well, according to the company.
La Prairie recorded growth of 12.3% (adjusted for currency translation effects), with key contributions made by new launches in the Advanced Marine Biology series (see “Wonders of the Sea” at Happi.com), Anti-Aging Stress Cream and the La Prairie Caviar Collection.
Beiersdorf has increased its production presence in the Asia-Pacific region. In July it invested €10 million to double manufacturing capacity for Nivea products at its production facility in Bangplee, Thailand to 31,000 tons a year. According to Beiersdorf, Nivea is now the largest skin and beauty care brand in Thailand and the Eucerin brand also occupies the pole position in the dermo-cosmetics segment with a market share of more than 70%. The site also supplies Indonesia, Vietnam, Malaysia and Singapore, as well as Australia and New Zealand.
In June, Beiersdorf inaugurated a new production plant in Shanghai. The company invested approximately €18 million in the new facility, which will manufacture body care products. Beiersdorf plans to shutter its old production facility, which is just 30 kilometers away from the new site.
In the Americas, Beiersdorf’s sales rose 13.1% (adjusted for currency translation effects) in 2008. At current exchange rates, sales rose by 7.5%. In North America, sales rose 3.8%, with the launch of Nivea Lip Care and Nivea for Men shower products in the U.S. proving extremely successful. In Latin America, sales rose an impressive 20.9%, with all major markets contributing double-digit growth rates.