L’Oreal USA to acquire Essie
NEW YORK L’Oreal USA has signed an agreement to acquire the Essie cosmetics business, a move that will bolster L’Oreal’s share in the nail color and care market.
Financial terms of the deal were not disclosed. The acquisition is expected to be completed within 60 to 90 days, and is subject to customary U.S. and international regulatory approvals.
Essie Weingarten founded the Astoria, N.Y.-based company in 1981 and still serves as the company’s president today. The company offers a growing line of nail colors, treatments, accessories, spa products and lip glosses. Essie’s net sales through the last 12 months were $28 million.
“This strategic acquisition will enable L’Oreal to increase our share in the nail color and care market, which has seen significant growth year over year,” stated Frederic Roze, president and CEO of L’Oreal USA.
Weingarten and Max Sortino, CEO of Essie, will continue to play a pivotal role under a multi-year agreement. “It’s a perfect match,” stated Weingarten. “This acquisition presents a tremendous opportunity to allow the Essie brand to grow even stronger. With Max and me as part of the team, we will be able to provide our customers with a greater level of service as we take the brand to new heights.”
Ethnic beauty care to take a multicultural approach
NEW YORK —Despite the tough economic times, the ethnic health and beauty care industry has experienced steady growth as the lines blur between ethnic-specific and general market products, according to market research publisher Packaged Facts.
Retail sales of ethnic-specific health and beauty care products increased to $3 billion during the 2005-2009 period, according to Packaged Facts, a division of MarketResearch.com. While some marketers are intimately acquainted with the more specific aspects of the ethnic health and beauty care market—which is mainly comprised of hair care, makeup and skin care products for African-Americans and Hispanics—other marketers have decided to compete on a larger scale and reach beyond any one ethnic demographic niche.
Packaged Facts asserted that there now is less advantage for ethnic health and beauty care markets—particularly for smaller and mid-size players—to restrict themselves to niche positioning, and more advantage in the multicultural approach. “In 2010, there is a strong trend to position beauty products multiculturally—that is, not only to the three principal minorities consisting of Hispanics, African-Americans and Asians, but also to Arabs, Native Americans, South Asians and others,” stated Don Montuori, publisher of Packaged Facts. “A strength of using the term ‘multicultural’ is that products carrying the label can be marketed to everybody, including Caucasians.”
Packaged Facts noted that the ability to market multicultural products to Caucasians, in addition to consumers of other ethnic backgrounds, is important to marketers based in the United States who increasingly seek international involvements. The term “ethnic” does not have the same meaning in most other parts of the world, where billions of people have skin tones that befit the use of ethnic products popular in America, and where whites are the minority.
Even in the United States, the term is expected to become antiquated in the coming decades as the ethnic nation expands to become the majority sometime around 2042, Packaged Facts stated.
Sparking clinical skin care
LOS ANGELES —Following years of research and 10 new technology patents, skin care brand Neutrogena has introduced its new Neutrogena Clinical.
To develop Neutrogena Clinical, scientists at the company looked to bioelectricity, the body’s innate electrical signaling system. Neutrogena scientists discovered a way to create tiny, ion-mineral conductors within a topical formulation that, once activated, work like “miniaturized batteries” to simulate bioelectricity and increase positive ion flow. This helps minimize visible signs of collagen loss, improve facial definition and reduce the appearance of wrinkles and sagging skin.
The collection, which hit stores the first week of March, includes facial lifting wrinkle treatment SPF 30 ($39.99); eye lift contouring treatment ($39.99); lifting wrinkle treatment starter system—SPF 30 and eye ($49.99); and facial lifting wrinkle treatment night ($39.99).