Conair acquires Allegro Manufacturing
STAMFORD, Conn. Conair Corp. has acquired Allegro Manufacturing, the California-based global supplier of cosmetic bags and other bag-related categories, and plans to use some of its brand names with newly designed Allegro bags to launch more lines and expand existing ones. The acquisition will also open up additional product categories, and increase the domestic and international presence of both companies.
Financial terms of the deal were not disclosed. The management team at Allegro will remain in place.
“Like Conair, we’re driven by a creative, customer-focused approach to business. We share a philosophy that customer input builds better relationships and more salable product lines,” stated Scott Friedman, president of Allegro. “We’re both trend savvy, price-point conscious and smart about what to launch when. Joining Conair is a great opportunity for us to grow at a faster pace than we could have on our own.”
Started in 1973, Allegro manufactures cosmetic and travel organizer bags and continues to expand with electronic accessory bags, diaper bags, bath products, pet accessories and small luggage. The company currently trades in more than 20 countries, with distribution channels in London, Paris, Mexico City, Toronto, and Sydney. Allegro owns and staffs manufacturing plants in China and the Philippines.
Added Ron Diamond, chief executive officer and co-president of Conair. “We’re very excited about this acquisition. Allegro is a great company and we all feel there’s a tremendous synergy between us. This new relationship lets both Conair and Allegro serve our customers better with improved product selection and increased profitability.”
Conair, which began in 1959 as a small hair appliance and hair care company, is a multinational corporation with annual gross sales of $2 billion.
What’s Hot: Cleaning up the natural way
Newcomer Pure & Natural is rolling out in February a cleansing bar and the packaging takes eco-conscious living to a new level in the mass market.
The bar is 98 percent natural, hypoallergenic, paraben-free and enriched with pure glycerin. The unique packaging, comprised of 100 percent post-consumer paper, is embedded with baby’s breath seeds that can be planted.
The cleansing bar is one of three products in the brand’s collection, which also includes a body wash and liquid hand soap that have 100 percent recyclable packaging.
According to the Natural and Organic Personal Care Products in the U.S. report from market research publisher Packaged Facts, the segment is expected to reach sales of nearly $10.2 billion by 2012.
Consumers want to look good without spending
SCHAUMBURG, Ill. —Most Americans believe that the pressure to look good is escalating, but that doesn’t necessarily mean they are spending more dollars in the beauty aisle, according to the findings of a recent study.
Based on the findings of The Nielsen Co.’s global beauty survey, two-thirds of U.S. consumers agree that the pressure to look good is much greater now than ever before. However, only 23 percent of U.S. respondents said they spend more on beauty products and treatments.
The online survey polled nearly 26,500 consumers in 46 markets from Europe, Asia Pacific, the Americas and the Middle East.
“While culture differences abound, the pressure to look good is felt worldwide,” stated Shuchi Sethi, vice president of consumer products for Nielsen Customized Research. “That doesn’t necessarily mean that consumers are compelled to spend more on beauty products and treatments. It seems the older you get, the less you spend, as teens and consumers in their 20s spend more in this category.”
The research also found that when U.S. consumers do shop for beauty, most spend their money on hair care (81 percent), skin care (61 percent) and facial treatments (47 percent). In addition, 80 percent of U.S. respondents said they “very much” or “somewhat” agree that mass market health and beauty products are just as good as premium or expensive alternatives for hair care, skin care and cosmetics.
“While price and brand continue to be a major purchase decision factor, prior experience is also a key driver,” Sethi said. “Whether it’s a free product sample or the recommendation from a friend, prior experience plays a critical role in the health and beauty product category. More and more companies are realizing this, with sample giveaways and a greater focus on word of mouth marketing efforts.”