New data released on growth of cosmetics, toiletries market
NEW YORK The global cosmetics and toiletries market experienced growth in 2007, fueled in part by innovation in the skin care category, but did exhibit a slight slowdown compared with 2006, according to Euromonitor’s recently released 2008 cosmetics and toiletries data.
Registering a 6 percent growth over 2006, the global cosmetics and toiletries market represented only a slight slowdown compared with Euromonitor’s 2006 figures. The slight slowdown may be due to a weakened economic state in most developed markets and declining penetration of emerging markets, according to Euromonitor. However, the performance of skin care and sun care has helped maintain growth.
Sun care, although slowing slightly from its double-digit growth of previous years, remained the most dynamic sector in the industry reaching U.S. $6.9 billion in global sales for 2007.
The data also showed that Brazil was the largest single contributor to growth, with skin care, hair care and fragrances set to benefit the most from the strong demand in the country.
“Aside from major contributions from both the global skin and sun care sectors, our new data shows Brazil becoming a primary player in the industry and is expected to add U.S. $9.5 billion to global sales over the next five years, supplanting China as the No. 1 contributor to future growth,” stated Alexander Kirillov, global cosmetics and toiletries research manager. “Country rankings had a shake up in Western Europe, with the UK overtaking France and Germany in 2007 to become the region’s top beauty market.”
C&D purchases Del Pharmaceuticals from Coty for $380 million
PRINCETON, N.J. The stewardship behind Del Pharmaceuticals will be changing for the second time in three months as Church & Dwight announced its acquisition of the OTC business from Coty, which in turn had acquired Del in December, Tuesday morning in a cash deal valued at $380 million.
The transaction, which is subject to regulatory approval and other customary conditions, is expected to close in July 2008.
Del Pharmaceuticals’ net sales in the fiscal year ended Dec. 31 were approximately $100 million, C&D stated. More than 75 percent of those sales were derived from the Orajel brand, the leading brand in the oral analgesic category.
“Orajel is a great addition to our existing portfolio and provides access to a fast-growing segment of the attractive premium oral care category,” stated James Craigie, C&D chairman and chief executive officer. “Orajel also brings to our company a powerful franchise that has developed great consumer loyalty. This transaction is consistent with our growth strategy of strengthening our businesses by adding No. 1 or No. 2 brands in areas of high growth potential with gross margins that are accretive to the overall company.”
The Orajel products are expected to be integrated into existing Church & Dwight manufacturing facilities by the end of 2009.
Salon Selectives launches TV ad campaign
CHICAGO Salon Selectives, the recently relaunched hair care brand, has kicked off a national television campaign.
Each spot portrays confident, empowered women who are able to narrowly escape sticky situations by using their intelligence and strength, along with the powers of Salon Selectives.
“The new campaign leverages the brand’s original core messages of transformation and customization while modernizing the theme. We have developed a new ad approach for the hair care category, moving away from product demonstrations and impossibly beautiful hair close ups, to connect with women through fantastical action-adventure stories,” stated Anne West, chief marketing officer for SBB, LLC, Salon Selectives’ marketer and distributor.
Chicago-based Laughlin/Constable developed the spots that will be running on national cable channels, including Lifetime, Oxygen, the Style Network and VH1.
One of the most popular hair care brands of the 1990s, Salon Selectives was recently brought back to the market by a small group of executives who acquired the brand from Unilever.
Although it has been off the market since 2004, the brand, according to the company, still has more than 80 percent awareness, as women don’t just remember the brand name but also such attributes as the apple fragrance and pink bottle color.
The product line includes three shampoos, five conditioners and 10 styling products. The retail price is between $3.29 and $4.29.