P&G CEO to shareholders: Value creation is top priority
CINCINNATI — Procter & Gamble has established consumer and shareholder value creation as a top priority and outlined four areas to improve performance, chairman, president and CEO A.G. Lafley told the company’s shareowners at its annual meeting Tuesday in Cincinnati.
In a review of the business over the past year, Lafley said P&G had met or exceeded its key financial commitments, including organic sales growth, core earnings per share and free cash flow productivity. The company returned $12.5 billion in cash to shareowners. However, he emphasized that there’s room for improvement.
“The changes we are making in these four areas — reestablishing value creation as our primary measure of success, investing in innovation and go to market capabilities, accelerating productivity savings and improving operating discipline and execution — are important changes that we believe will improve performance,” he said.
He said that the company will focus on its core businesses, and the company must ensure its U.S. business is strong and growing while investing in developing markets that have the largest size of prize and where P&G has the highest likelihood of winning. Resources will be allocated to businesses where value can be created, and the company will exit those that cannot deliver acceptable shareowner returns.
“We have taken a hard look at what we need to do and how we need to change to perform better. We’re committed to do what it takes to get P&G back to balanced, consistent, reliable and sustainable growth and value creation for consumers, customers, and you, our shareowners,” Lafley said.
Kline: Professional aesthetic products on rise, eyeing DIY market
PARSIPPANY, N.J. — Sales of professional aesthetic products climbed 7.5% in 2012, and given the growth, aesthetic devices manufacturers are becoming increasingly interested in expanding their direct reach into the consumer market by launching devices for at-home use, according to recent research by consulting and research firm Kline & Co.
Growing by almost 500% over the last 20 years, non-surgical cosmetic procedures are mirroring consumers’ preferences for minimally invasive treatments. In line with demand for these non-surgical procedures, 2012 sales of professional aesthetic products saw an increase of 7.5%, according to Kline & Co.’s recently published "Professional Aesthetics: U.S. Market Analysis and Opportunities" study.
Key factors driving growth include greater awareness of in-office treatments and their benefits, less down time and discomfort, with a whole body of treatments and increased distribution similarly contributing to the market’s overall growth.
“Enhancing Kline’s long-respected skin care market research portfolio, we felt this was an important market to thoroughly assay as it is the missing link within the professional skin care equation. There are essentially three levels of how skin care concerns can be addressed on a professional basis — with topical products purchased at a spa or from a doctor, using an at-home device or having an in-office treatment performed using a laser, IPL or injectible. This report completes the loop,” explained Karen Doskow, industry manager at Kline’s Consumer Products Practice.
The consolidated injectibles market continues to drive overall market growth, with such new products as Belotero Balance from Merz entering the market in 2013, while body contouring and cellulite reduction is the most dynamic addressed skin concern. Injectibles account for just over half of total market sales while body treatment products are growing at close to 20% in 2013, due in part to good alternatives now offered to liposuction. In addition, the first FDA-approved laser system for cellulite treatments, Cellulaze by Cynosure, was introduced recently, Kline stated.
Several key marketers are offering devices with upgradeable features to accomodate a larger number of skin concerns. For example, Cutera’s Xeo Platform offers upgradeable capabilities that include specialized attachments enabling skin fitness, hair removal and vascular therapies using the same device. Some aesthetic devices are claimed to address as many as 22 skin care concerns. Professional aesthetic devices providing multiple benefits is an increasing trend particularly within the energy and mechanical devices category. This category is also showing the fastest growth due to its technological advances, and consequently more effective and permanent results.
Now, aesthetic devices manufacturers are keenly interested in expanding their direct reach into the consumer market by launching devices for at-home use. To this end, several professional aesthetic products manufacturers have partnered with consumer goods marketers, as exemplified by Unilever’s partnership with Cynsoure to introduce at-home beauty devices for skin rejuvenation treatments, and the Syneron/Procter & Gamble partnership to utilize Syneron’s proprietary ELOS technology for at-home devices applications. Syneron has been successful in building its own at-home device franchise, Tanda. This year, the company has expanded by creating an at-home device market for teeth whitening with the launch of Tanda Pearl.
What’s next? New areas for at-home products? Patches that replace injectibles? Will micro-needling become the new low-cost alternative to laser and IPL procedures? Kline stated that it is already finding that micro-needling is the fastest growing segment, with sales increasing by 87.5%.
Study finds widespread oral health problems among older adults
CHICAGO – More than half of the country gets a "fair" or "poor" score when it comes to standards affecting dental care access for elderly people, according to a new report.
The report, A State of Decay, released Tuesday by Oral Health America, gives a state-by-state analysis of oral healthcare delivery and public health factors affecting the oral health of older adults. The results have prompted OHA to launch a new website to connect older adults to dental care and educate them about maintaining oral health.
"While we are seeing improvements in certain areas of older adult dental care, there is still a lack of progress in advancing the oral health of such a vulnerable population," Columbia University public health professor Ira Lamster said. "Older adults face significant health challenges if their oral health is poor, and there is no coordinated program to help fund necessary services."
According to the study, 21 states provide either no dental benefits or only emergency coverage through adult Medicaid programs, while 31 have high numbers of dental health provider shortage areas. Meanwhile, 13 states have up to 60% of residents living in communities without water fluoridation, despite fluoride’s ability to protect dental health; Hawaii and New Jersey have the highest rates of residents without water fluoridation, respectively at 89.2% and 86.5%. Eight states have "strikingly" high rates of tooth loss, with 33.8% of the adult population of West Virginia having this problem.