Groupe Nuxe sells 45 per cent stake to Sofina; Firmenich acquires minority share in fragrance icon Robertet; Sephora gears up for Adelaide expansion; and regional health and wellness spas post 14 per cent growth.
Groupe Nuxe sells 45 per cent stake to Sofina
Founded in 1988 by Aliza Jabes, French natural skincare brand Nuxe has catapulted to global recognition through its cult dry oil – Huile Prodigieuse. Ranked as the number one in the category in Europe, over 25 million bottles have been sold since its debut in 1991 and the company launched a new flanker – Huile Prodigieuse Florale –earlier this year. Nuxe is the third biggest cosmetic group in French pharmacies and is also sold through 20,000 locations in 60 countries.
Nuxe has accelerated its presence in global travel retail because of its success in Asian markets, notably China, and the company is poised to seriously tackle the US market. In 2018, Nuxe reported global revenues of AUD$444.46 million and sales soared 9 per cent in the first half of this year.
Belgian holding company and investor, Sofina, has acquired a 45.13 per cent stake in Nuxe for an undisclosed sum. The company mainly invests in consumer goods, healthcare, telecommunications, banks and private equity and has holdings in Richemont, the world's second largest luxury group after LVMH, and Danone yogurt. Aliza Jabes will remain the president of Nuxe and holds the majority interest in the brand.
Firmenich acquires minority share in fragrance icon Robertet
The flood of mergers and acquisitions in the fragrance industry continues as global heavyweights jockey to ramp up their cred in natural technologies and ingredients. Swiss-based Firmenich, the largest privately-owned company in the flavours and fragrance industry with annual revenues of US$3.8 billion, has acquired a 17 per cent share in Robertet, a world leader in sustainable raw materials.
Founded in 1850 and headquartered in Grasse, the southern French town famed as the capital of the fragrance industry, Robertet is managed and controlled by the founding Maubert family. The only fragrance company among the top 10 players in the flavours and fragrance business to control every step of production from seed to finished scent, Robertet achieved global sales of US$620 million in 2018. The company employs more than 40 perfumers and has a presence in over 50 countries, including Australia, the US, China and Brazil.
Firmenich has acquired the Robertet stake from First Eagle Investment Management, the US investment giant with US$102 billion in assets. The Swiss titan plans to be a "passive longterm shareholder", but would also consider taking a controlling interest. With its strong naturals portfolio in perfumery, flavours and ingredients, Robertet is well-positioned to benefit from consumers' continued demand for authentic natural products, adds Firmenich CEO, Gilbert Ghostine.
Sephora gears up for Adelaide expansion
The countdown is on. Sephora is making its first foray into South Australia with the debut of a flagship store in Rundle Mall, Adelaide's premier shopping destination. Opening on October 10th, the new outlet will lift the specialist beauty retailer's nationwide network of stores to 20 – nine in NSW, six in Victoria and four in Queensland. The Adelaide store will also play host to the first dedicated skincare studio in Australia.
In typical Sephora fashion, there will be maximum buzz surrounding the arrival of the beauty heavy hitter in SA. A Sephora Street Party will be staged in a cordoned-off section of Rundle Mall outside the store, complete with stage, DJ, key influencers and makeup studios. The first 100 customers will receive an Anastasia Beverly Hills Renaissance Palette and the next 400 will be given an Anastasia Beverly Hills Sugar Palette. Continuing the tradition of rewarding the truly dedicated, the first 10 people in line to enter the store prior to opening will be given $100 vouchers.
Regional health and wellness spas post 14 per cent growth
Skincare clinics and spas have popped up like mushrooms in all Australian capital cities. But according to Tourism Australia, regional wellness centres have enjoyed 14 per cent growth over the past five years. The key drivers are international tourists and more Australians seeking R&R from their busy, stressful lives.
Consumers increasingly view visits to spas and health and wellness centres as an affordable luxury, reports IBISWorld, which has fuelled the domestic tourism industry. Major hotspots in regional Australia include Hepburn Springs in Victoria, Kangaroo Island in SA and Margaret River in WA. Late last year Peninsula Hot Springs, a short drive from Melbourne, completed a $13 million expansion, adding more accommodation and new geothermal pools.
There is also continued robust investment in luxury spas in hotels and resorts in capital cities and regional areas, says IBISWorld. The global wellness tourism is fuelling an increase in demand for spas in areas close to cities as many Australians opt to drive to the destinations instead of flying or taking longer holidays overseas. By contrast, says Tom Youl, IBISWorld Senior Industry Analyst, revenues for the hairdressing and beauty services industry are expected to decline at an annualised 0.2 per cent rate over the next five years, while revenues in the health and wellness industry are expected to expand by 3.6 per cent.
Snippets from the Wires
- Traditional outdoor advertising captures maximum eyeballs. According to Roy Morgan Research, 15.6 million Australians notice billboards and posters in an average week. Digital outdoor advertising on public transport and in sports stadiums, shopping malls and retailers is also proving a winner, says the researcher, with 52 per cent of Aussies over the age of 14 – 10.8 million – now seeing it each week.
- Forever New operates 200 stores around the world in Canada, Singapore, China, India, South Africa and New Zealand and concessions in the US, Singapore and the Middle East. The Australian trend-forward womenswear brand has launched an e-commerce site in the US, where it is known as Ever New, to spearhead further global expansion. Overseas revenues for the company totalled AUD$300 million in 2018.
- Rodan + Fields, the US dermatology-inspired skincare brand, launched internationally in Canada in 2015 and Australia in 2017. The company has announced it will enter Japan next year, one of the world's most sophisticated skincare markets, and has been working on customised formulas for the past five years.
