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Beiersdorf seals lip care entry with kiss of innovation

BY Michael Johnsen

NEW YORK —It’s a kiss of skin care on the lips. That’s part of the tag line associated with Beiersdorf’s expansion of its U.S. product portfolio with the launch of Nivea Lip Care, which utilizes “kiss of” on the packaging as a point of differentiation. The product launch marks a significant foray into the lip care market with the introduction of more than 20 SKUs.

“We believe that Nivea Lip Care will perform well in the marketplace, as the category has seen steady sales during the past five years,” stated Nicolas Maurer, vice president of marketing at Beiersdorf U.S.A. “We will drive the product launch with a fully integrated marketing campaign, which engages consumers by focusing on the emotional benefits of the product, marking a departure from the functional messages that we currently see in the marketplace.”

Nivea Lip Care also will benefit from three different facings, Shalini Landau, product manager for Nivea Lip Care, told Drug Store News—the typical checkstand and cough-cold aisle placements, as well as the sun care and body section, where Nivea already enjoys a strong brand presence. “We wanted to capitalize on the strength of Nivea in the marketplace by extending into this new category,” she said. “There is also significant cross-usage between body products and lip care products.”

Nivea Lip Care will have 11 variants and 22 SKUs. Products will be available in both blister card and loose form. Each Nivea Lip Care product provides moisturization along with such additional benefits as relief, protection, color, gloss and anti-aging in a nonwaxy consistency.

The product lineup is as follows:

A Kiss of Moisture essential lip care and hydrating lip care SPF 4 are specifically formulated to provide moisturization and protect lips from dryness. Products are available in a stick format.

A Kiss of Protection sun protection lip care SPF 30 effectively prevents moisture loss and protects lips from sun damage. The product is available in a stick format.

A Kiss of Flavor tinted lip care in cherry and passion fruit provides moisturization while giving lips a hint of color and a fruity flavor. Products are available in a stick format.

A Kiss of Shimmer pearly shimmer lip care provides moisturization along with the pearly shimmer effect. The product is available in a stick format.

A Kiss of Shine glossy lip care gives lips a glossy shine without any sticky residue. The product comes in natural, red and pink shades and is available in a tube format.

A Kiss of Rejuvenation anti-aging lip care SPF 4 enhances the natural fullness of lips and reduces the appearance of fine lines. The product is available in a tube format.

A Kiss of Relief SOS lip care provides instant care for dry, chapped lips while supporting lips’ natural healing process. The product is available in a tube format.

Nivea Lip Care will be available at all food, drug and mass merchandisers nationwide in September 2008 in the cough-cold aisle. Suggested retail price is $3.99 for tube products and $2.99 for stick products.

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CVS Caremark to expand headquarters, add positions

BY Antoinette Alexander

WOONSOCKET, R.I. CVS Caremark has announced expansion plans for its headquarters over the next two years, a move that will help support the company’s continued growth and current hiring expectations of more than 200 new positions on its corporate campus.

The nature of the new jobs was not disclosed. In Rhode Island, the company currently employs 5,800 associates.

The plans are to build two new 150,000-square-foot office facilities in the Highland Corporate Park in Cumberland, R.I. The company has been based in Highland Corporate Park, which is jointly located in Cumberland and Woonsocket, since 1982. The company significantly expanded its customer support center facilities in 1988 and again in 2000.

“Our company was founded in Rhode Island more than 40 years ago and we feel fortunate to be able to continually reinvest in our home state,” stated Tom Ryan, chairman, president and chief executive officer. “As the largest company in Rhode Island we are looking to further expand our base of operations to support our continued growth and, as a result, increase our workforce over the next few years.”

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A&P announces fiscal Q1 improvements

BY Antoinette Alexander

MONTVALE, N.J. A&P, which operates 446 stores under such banners as A&P, Pathmark and Waldbaum’s, announced on Friday improved results for the first quarter as it nears the completion of the Pathmark integration.

“The first quarter of 2008 clearly demonstrates our continuing progression in operating improvement with the achievement of our fourth straight quarter of comparable store sales of over 3 percent,” stated Eric Claus, president and chief executive officer. “Further, Pathmark is already achieving positive results with comparable store sales climbing above 3 percent for the first time in many years. The company is also well underway with the completion of the Pathmark integration, as many of the planned milestones have been achieved. As of the end of the first quarter, our annualized run-rate of synergies is approximately $100 million.”

Sales for the quarter totaled $2.9 billion compared with $1.7 billion in the year-ago period. Same-store sales rose 3.2 percent, which excludes sales for Pathmark stores acquired in December 2007. Same-store sales for Pathmark, measured during the same period, rose 3.1 percent.

Net income from continuing operations was $3.8 million, with a net loss per diluted share of 48 cents after adjusting for non-operating income related to fair value adjustments. This compares with income of $61.4 million, or $1.45 per diluted share, in the year-ago period.

The company did not break out pharmacy sales results.

As previously reported by Drug Store News, the company announced during the quarter an integral step in its transformation—the conversion of the majority of SuperFresh stores in the Philadelphia market to the recently premiered Price Impact format under the Pathmark Sav-A-Center banner and a number of SuperFresh locations retaining the Fresh format with significant upgrades.

Also during the quarter, the supermarket chain completed the remodel of A&P Fresh in Holmdel, N.J., to the updated Fresh format and began remodeling additional stores. The company also premiered its Price Impact format in the Irvington and Edison Pathmark stores.

“The remainder of fiscal 2008 will be focused on progressing the company further toward operating profitability by: moving forward our operating and aggressive merchandising strategies; maintaining cost control and reduction disciplines throughout the business. Integral to our drive to profitability is the continued and ongoing execution of capital improvement projects all geared for maximum return, and particularly weighted to value propositions,” stated Claus.

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