BEAUTY CARE

L’Oréal announces expansion of Florence, Ky., plant

BY Antoinette Alexander

NEW YORK — L’Oréal USA celebrated the expansion of its Florence, Ky., manufacturing plant with a groundbreaking ceremony featuring Gov. Steve Beshear.

The proposed plant expansion will include renovations to the existing plant, new construction and the purchase of new equipment. Located at 7080 New Buffington Rd., the plant currently employs more than 200 full-time workers who produce 165 million units of Garnier Fructis, L’Oréal Paris and Soft Sheen-Carson shampoo, conditioner and styling products each year. The company estimated that the 110,000-sq.-ft. plant expansion will create more than 200 new jobs over the next three years.

"L’Oréal’s business is growing globally, and the expansion will enable us to meet increased consumer demand for the popular hair care brands we are producing in Kentucky," stated Eric Wolff, plant manager. "The Florence plant is a center of manufacturing excellence for the L’Oréal Group, and the decision to expand U.S. production here will result in significant economic benefit for Kentuckians."

L’Oréal stressed its committment to sustainable and responsible growth and has implemented numerous initiatives to reduce its C02 emissions, consumption of water and waste generation. Last year, the Florence plant announced an innovative "Wall to Wall" component supply program, which located its shampoo component supplier, Alpla, in the same factory where the Garnier Fructis shampoos and conditioners are produced.  The initiative reduced environmental impacts, including freight, CO2 emissions, waste and costs. The plant has also implemented a vessel cleaning optimization program, called OptiCIP, which has reduced the amount of water used for vessel washing per unit of finished product by 43%. This program alone equates to an overall 18% reduction in total water consumption since 2005.

Since 2005, the Florence manufacturing plant has made significant improvements in its environmental performance and made the following reductions for 2011:

  • -2.4% reduction in GHGs — total tons of CO2, scope 1 & 2 (from 2005 to 2011);

  • -15.1% reduction of tons of transportable waste per finished product (from 2005 to 2011);

  • -32.1 % reduction in liters of water consumption per finished product (from 2005 to 2011); and

  • -15.5% reduction in kilowatt-hours of energy consumption per finished product (from 2005 to 2011)
.

 
Kentucky Business Investment has committed to a $5 million tax incentive through the Kentucky Economic Finance Development Authority and another $800,000 tax incentive through the Kentucky Enterprise Initiative Ace in support of the plant expansion.

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Housing recovery could drive more consumers to spend, Deloitte says

BY Alaric DeArment

NEW YORK — Consumers showed more confidence in October as a recovery in the housing market indicated a greater willingness to spend — especially among people who shop through multiple channels — but some headwinds remain, and the issues in Congress could threaten the gains, according to a new report by Deloitte.

The monthly Deloitte Consumer Spending Index rose significantly last month, to 4.02, from September’s 3.54. The index measures tax burden, initial unemployment claims, wages and home prices.

"Rising consumer confidence should give retailers reason to celebrate during the holiday season, but the winds may shift in January, which should encourage retailers to make the most of this good news now," Deloitte vice chairman and retail and distribution sector leader Alison Paul said, referring to the so-called "fiscal cliff" of tax increases and spending cuts set to take effect on Jan. 1, 2013, unless Congress and the Obama administration can come to a budget agreement. "The consumers who appear most optimistic about their holiday spending are those who have been coined ‘omnichannel’ shoppers, or those who use all channels to shop, including mobile phones, online and the store."

Paul said those omnichannel consumers planned to spend 71% more on gifts than those who shop only in stores, while 45% planned to shop online. "These spending intentions give retailers reason to interact with consumers across physical and virtual storefronts to augment their messages and sales this holiday season," Paul said.

But some headwinds remain, according to the report. The tax burden increased slightly, but Deloitte noted that the rise is a sign of healthy growth in incomes. Meanwhile, rising prices for food and energy continued to weigh down on real wages, which fell slightly to $8.68. Jobless claims moved slightly higher, to 373,800, from 371,000 in September. But home prices increased, giving a lift to consumer confidence.

"The housing market appears to be recovering after bottoming out, while energy prices have begun to recede and lift some of the pressure on wages, boosting confidence and consumers’ willingness to spend," Deloitte chief economist and author of the index Carl Steidtmann said. "This may only be sustainable over the long term if legislative issues are resolved, including the fiscal cliff and debt ceiling, as consumers will start to see their first tax increases at the beginning of the year."

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ReportersNotebook — Beauty Care, 11/19/12

BY DSN STAFF

SUPPLIER NEWS — Pacific World’s at-home gel polish brand SensatioNail is gearing up for the holiday season with the launch of a limited edition 2012 holiday collection, SensatioNail Glitter Gel Polish Duos. Debuting in three festive shades — Confetti Glitz (steel gray/silver glitter), Champagne Cocktail (black/gold glitter) and Midnight Kiss (deep red/red glitter) — each set offers a traditional gel manicure with light-reflecting, sparkling effects. 


 

NYX Cosmetics has announced new retail partnerships with Ricky’s NYC and PacSun. In early October, NYX launched into all 619 PacSun store locations, selling NYX in all three categories of the California-based company’s retail locations. Featured products include Glam Shadow Stick, Mega Shine Lip Gloss, Super Skinny & Super Fat Eye Marker, Roll on Eye Shimmer, Fabulous Eye Lashes and Studio Liquid Liner, and Liquid Crystal Liner.


In mid-October, NYX Cosmetics launched into Ricky’s NYC and will initially be sold in 28 stores. Ricky’s is the first major retailer in the heart of New York City to carry the NYX line, offering more than 384 SKUs, featuring products such as The Curve, Roll on Eye Shimmer, Soft Matte Lip Cream and Collection Noir.


 

Somersets, a line of shaving and skin care products from the U.K. that made its U.S. debut earlier this year at NACDS Marketplace, has officially announced its arrival in the United States.


The brand’s launch in the United States is marked with the unveiling of 11 products and is supported by the launch of a new website at Somersets.com.



 

Somersets already has been ordered by Duane Reade and Shopko, and is available now at 
DrugStore.com and Somersets.com. The suggested retail price ranges from $6.99 to $14.99.


 

RETAIL NEWS — Ulta Beauty has appointed Scott Settersten, VP accounting, as acting CFO. Settersten replaces Bruce Hartman, who resigned from his position as CFO by mutual agreement with the company.


The company has initiated a search for a permanent CFO. Settersten will be considered for the permanent CFO position.

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