L'Oreal Heads Into Cosmetic Surgery Turf
Most of us know Galderma as the maker of Benzac, the well-known benzoyl peroxide treatment for acne. But it's not as widely known that the Swiss-based dermatology brand was created in 1981 as a joint venture between L'Oreal and Nestle. Now its multinational owners are using the $986 million a year company to spearhead their bid to buy Q-Med, the Swedish manufacturers of the dermal filler Restylane. Q-Med reported a pre-tax profit of $111 million in 2009 and the Galderma bid is reported to be in the vicinity of US$500 million.
The future, as they say, has arrived. For the past decade or so analysts have been predicting that the major names in beauty will cross over to the soft options segment of the cosmetic market, as Botox and dermal fillers become increasingly looked upon as "grooming". It's a two-way street. Allergan, the maker of Botox, is another famous example of the trend with Prevage, their tie-up with Elizabeth Arden.
L'Oreal has also been expanding its professional hair business in the US throughout the year. Back in June, L'Oreal USA bought C.B. Sullivan, a New England supplier to hair salons on the north-east coast. This week they took over Peel's Salon Services, which supplies salons in 12 states in the mid-west to the tune of US$100 million a year.
P&G Set For A Big New Year
That's the word from business analysts who have already pulled down the curtain on 2010. According to Goldman Sachs, P&G will return to double digit EPS growth in 2011. Part of the reason is that global margins will not suffer as much erosion as consumers tire of penny-pinching. Another reason for the optimism is that P&G's much-heralded investments in developing markets will start to bear fruit and accelerate sales. There's good news from P&G's home market, too, with the US personal care market expected to lift by 2 per cent next year. Again, because people are sick of belt-tightening. Not surprisingly, P&G share price is expected to jump by US$4 on the glad tidings to US$75.
Swarovski Shines In Fragrance
The Austrian crystal maker has long branched out into watches, sunglasses, pens, you name it. A far cry from its origins as a crystal-cutting factory in the bucolic Tyrol 115 years ago. Two years ago, Swarovski signed a deal with Clarins to produce its first fragrance. In March, the scent - named Aura - will launch in Europe before its global roll-out.
"Inspired by radiance and light" (what else?), the pink-toned fruity/floral was created by Olivier Cresp and Jean-Pierre Bethouart of Firmenich. Right on-trend, it features pink peppercorns, lychee, rose, amber and white musk. A single Swarovski crystal adorns the cap. For those who want more sparkle, jewelled pendants will house three beauty products called The Make-Up Jewels - two lip glosses and a shimmery balm to brighten up the decollete area. Other extensions include a perfumed body cream, deodorant spray, body lotion and shower which will certainly create an extensive "Aura" if you use them all.
Beiersdorf and Kao Trim Down To Re-Focus
Beiersdorf have launched a new consumer strategy snappily titled "Focus on Skincare: Closer To Markets". In other words, the German giant will be re-focusing its efforts on what it does best - skincare. It will scrap the Nivea Beauty range in Germany and, even though affiliates have been left to decide whether they want to stick with the cosmetic range, the home market move is a powerful indication of likely events. More investment will be ploughed into innovative skincare so expect a string of new launches over the next few years, as Beiersdorf takes it to rivals such as L'Oreal, Unilever and P&G. Older facial and body lineups that aren't as popular as they once were will be given the heave-ho, too.
Japan's Kao is even more specific about its future plans and will cut its number of brands by 30 percent over the next two years. The Japanese number two bought Kanebo in 2006 but maintained a "hands off" management strategy that did nothing to stop Kanebo's slide in sales. Kao plans to focus on seven major brands which each generate over $120 million a year in sales and also plans a more aggressive online initiative in major markets.
Kate and Wills - the Beauty Story
Only die-hard republicans and those with hearts of steel could look at the beautiful engagement photos of Prince William and Kate Middleton taken by Mario Testino and not think - Aah! There's been a flurry of info in the media about Ms Middleton's clothes - the $268 Reiss dress and the $154 Whistles blouse, both High Street brands. But what fragrances did the happy couple spritz on for the memorable snaps?
Wills is a big fan of Blenheim Bouquet from Penhaligon, an aristo's fragrance if ever there was one. Created in 1902 for the Duke of Marlborough, it has no "heart" notes and relies on top notes of lavender, lime and lemon and a drydown of pine, musk and black pepper. Jasmine and bergamot are also in the mix to add a discreet note of sensuality.
Kate is a bit of a heritage scent fan, too. Her favourite fragrance is the 20 year old floriental - Dune from Christian Dior. Even the skincare she uses has tradition - Karin Herzog's Oxygen Face Cream, Vita-A-Kombi 1 and - here's a clue that the pix may have been photo-shopped - Vit-A-Kombi 3 Spot Zapper. Check out the soon-to-be Princess Catherin'es choices on the Swiss brand's local website - www.herzog.com.au