Following Del acquisition, Coty lays out unification plan
WEST PALM BEACH, Fla. With the acquisition of Del Laboratories complete, Coty Inc. is now working to bring together the best practices of both companies and unify its sale force—moves that, along with continued product innovation, will help it achieve its goal of becoming a $5 billion global beauty company.
“Our goal is by July to come together as one united organization and take the best practices and best people of both organizations and really come together and leverage our synergies,” said Mary van Praag, senior vice president of sales, during a meeting with members of the media on Saturday at NACDS Annual. “From a customer perspective, we are going to have one unified sales force.”
As part of that move, Mike Ferrara, who is currently head of U.S. marketing for fragrance and personal care, will be moving to the sales side heading up fragrance and personal care for sales strategy and customer marketing. In addition, Bruce Kowalsky, who currently handles the sales operations and customer marketing for the Del Lab’s portfolio, will be vice president of sales, national accounts for all of Coty Beauty.
The Coty Beauty brand portfolio includes, but is not limited to, fragrances Celine Dion, David and Victoria Beckham, Shania Twain and Stetson, and cosmetics brand Rimmel. The deal enabled Coty to extend its portfolio offering, which, prior to the acquisition, made well over half of its sales (68 percent) in fragrance. Prior to the deal, color cosmetics accounted for 15 percent of Coty’s sales, while toiletries stood at 14 percent and skin care/sun care only at 3 percent of sales.
Through the acquisition, which closed Dec. 31, Coty Beauty’s portfolio has been bolstered with the addition of the Del Lab’s Sally Hansen, N.Y.C. New York Color and La Cross brands. Including the Del Lab acquisition, Coty’s annual net sales currently total $3.5 billion.
Having such brands makes Coty an even more powerful player in the beauty space and the momentum shows little signs of slowing as the company gears up for 2008/2009 launches, including fragrance. In fragrance, Coty currently holds a 30 percent share.
“Fragrance has been one of those categories that hasn’t seen a lot of growth from 2004 to 2007. What we are excited about though is that Coty has not only been the No. 1 player but we are on the right side of the growth track. In fact, in this year alone we contributed over 60 percent of the absolute dollar growth,” said van Praag.
Coty is looking to stay on the growth track with several major upcoming launches including a signature fragrance by actor and country music star Tim McGraw and a debut fragrance by actress Halle Berry.
In addition, the company will launch next spring a new brand from Stetson aimed at the younger male market.
Ferrara added that his No. 1 objective is improving the in-store environment and that the company is putting “significant resources” behind that initiative, including consumer insight research.
“You need some organization to the shelf and key purchase motivators are all about seeing and smelling the product,” said Ferrara. “Bottom line is we are going to make the environment more engaging and shoppable for her when she is in the store so she feels there is a reason to come over to beauty and, more importantly, when she is in beauty to think of it as a place to buy fragrance.”
While the initiative is in its early stages, the company is on the fast-track and Ferrara said they are already talking with some key customers about in-store tests, some of which could be seen for fall launches.
TruKid introduces non-toxic hair care and bath products
TruKid, recent winner of a 2008 iParenting Media Award, has announced the launch of its all natural hair care line, featuring products such as Silly Shampoo, Cool Conditioner, Dancing Detangler and Bubbly Body Wash.
TruKid founder—and mother of six—Jennifer Adams Bunkers said, “We think of our skin as a line of defense against toxins and pollution in the environment, but that is not the case. Our skin is a gateway for everything going into our bodies and blood stream. All TruKid products are free of toxins such as parabens, sodium lauryl sulfate (SLS), phthalates and synthetic fragrances because skin absorbs a big percentage of everything we put on it.”
Made with all natural, soothing ingredients such as pro-vitamin B5, aloe and scented with beneficial, essential oils, the product line is designed for kids to develop healthy habits by using color-coded products and easy to read symbols for body, face, and hair so kids can recognize each product and its use.
“All of my products are made with kids in mind,” Adams Bunkers stated. “My kids don’t like the herbal smell that usually comes with being an ‘all-natural’ brand, so I made sure all TruKid scents were fun, light and most importantly, kid-approved.”
With the commitment of chemical free products, the company stated, comes affordable prices. All products of the new hair care line are about $10 or less and come in 8 oz and travel sizes.
Dove debuts go fresh products in three fragrances
ENGLEWOOD CLIFFS, N.J. Unilever’s Dove has introduced a new collection of products, dubbed go fresh, geared toward 20-something women.
The Dove go fresh collection includes deodorants, matching body mists, body wash, beauty bar, hand and body lotion, shampoos and conditioners. The products are available in three fragrances—Refreshing, which is waterlily and mint; Energizing, which is grapefruit and lemongrass; and Cooling, which is cucumber and green tea.
The Dove go fresh Body Mist is a first for the brand. It provides a light burst of long-lasting freshness with a hint of Dove moisturizer. It is located in the antiperspirant/deodorant aisle, according to Unilever.