Opportunities abound to ‘man’ personal care segment
Men—especially young men who are more open to experimenting with products—continue to represent an opportunity for the personal care segment, and manufacturers are heeding the call by continuing to roll out “manly” products.
“Companies that wish to grow must focus on younger males—adolescents to those in their late 20s—because these individuals care more about their appearance and are more open to trying new brands,” stated research firm Euromonitor International in its most recent U.S. Men’s Grooming report.
Euromonitor estimated that by 2012, the men’s grooming segment in the United States will reach $5.3 billion, up from nearly $5 billion in 2007. This number includes men’s toiletries (bath and shower, deodorants, hair care and skin care), which are expected to increase to $2.9 billion by 2012. This compares with $2.6 billion in 2007.
“The change in men’s attitudes toward grooming products will be the driving factor behind this growth. The association with strong ‘manly’ brands, such as Axe and Old Spice, has already helped body washes gain acceptance within the mass market,” Euromonitor noted. “Meanwhile, the men’s skin care subsector has yet to reach its full potential.”
Retailers also are taking steps to meet his grooming needs whether it is through merchandising men’s grooming products in one designated area or, as in the case with one Duane Reade store in New York, cross-merchandising with such electronic accessories as headphones to bolster sales.
Unilever’s Axe, which has been a major player in the men’s grooming segment with its products that exude sex appeal, continues to bolster its portfolio. In September, it launched its newest fragrance dubbed Dark Temptation in a body spray and shower gel. The fragrance combines the aroma of chocolate with such gourmet scents as hot chocolate, amber and red peppercorn.
Meanwhile, Axe is entering the hair care segment starting in December with the launch of Axe Hair, a full line of shampoos, conditioners and styling products.
The hair care collection includes Messy Look Paste to give hair a just-out-of-bed look, Shaggy Look Cream and De-Glue Shampoo + Scrub, which features rock crystals and is designed to remove product build up in the hair.
For the holiday season, Beiersdorf is offering its Nivea for Men Head to Toe Holiday Kit. The kit includes an energizing face scrub, body wash, shaving gel and post-shave balm. The suggested retail price is $14.99.
L’Oréal is gearing up for the launch of a Men’s Expert product in early 2009 but, as of press time, it was too early to release details. The collection currently includes facial products for men of various ages, including the Circle Eraser anti-dark circle under eye moisturizer, Vita Lift SPF 15 anti-wrinkle and firming moisturizer with UVA/UVB sunscreen and Hydra-Power invigorating moisturizer.
Revlon extends conditions of loan to reduce debt
NEW YORK Beauty company Revlon is amending its $107 million senior subordinated term loan agreement with MacAndrews & Forbes Holdings, Revlon’s majority stockholder, to extend the term of its previously announced equity rights offering.
The term loan will continue to provide that Revlon may, at its option, prepay such loan, in whole or in part, at any time prior to maturity, without premium or penalty, bears interest at an annual rate of 11 percent, payable quarterly in cash, and is unsecured and subordinated to Revlon’s senior debt.
Revlon reaffirmed its intent to launch a $107 million equity rights offering to reduce debt by the same amount. The rights offering would allow stockholders to purchase additional shares of Revlon Class A common stock.
The proceeds of the rights offering would be used to fully repay the remaining principal balance of the term loan. Given the current conditions in the capital markets, Revlon is monitoring the financial markets closely to assess the appropriate timing of the rights offering.
As announced on Sept. 3, Revlon used $63 million of the net proceeds from the previously announced July sale of its non-core Brazilian brands to repay $63 million in aggregate principal amount of the then $170 million term loan. This repayment will result in annualized interest savings of approximately $7 million.
MacAndrews & Forbes, which is wholly-owned by Ronald O. Perelman, beneficially owns as of this date approximately 58 percent of Revlon’s outstanding Class A common stock, 100 percent of Revlon’s Class B common stock and approximately 61 percent of Revlon’s combined outstanding shares of Class A and Class B common stock, which together represent approximately 75 percent of the combined voting power of such shares.
NAD asks for amendments to DermaSilk efficacy claims by maker
NEW YORK The National Advertising Division of the Council of Better Business Bureaus on Friday recommended that BioTech Corporation International, which markets the DermaSilk Anti-Wrinkle dietary supplement, modify or discontinue certain claims for the product, such as “a revolutionary, age-defying anti-wrinkle supplement,” or “it’s like getting a face-lift without the invasive surgery.”
NAD further recommended that the advertiser modify the remaining claims to more accurately reflect that there is emerging evidence that some of the ingredients in DermaSilk may potentially improve the appearance of aging skin and reduce oxidative stress on the skin.
The company, in its advertiser’s statement, said that while the company is “pleased” with NAD’s decision regarding the use of certain claims in the context of emerging science, “we respectfully disagree with NAD’s other findings.”
Nevertheless, the company said, “it supports the self-regulatory process and intends to consider all of NAD’s recommendation in future advertising.”