BEAUTY CARE

P&G lowers sales outlook due to inventory cut backs

BY Antoinette Alexander

CINCINNATI Procter & Gamble has lowered its sales outlook, citing an inventory cut back by retailers, distributors and consumers in both developed and developing markets.

The company stated on Thursday that it expects to grow organic sales for the October-December quarter, but below the 4 percent to 6 percent growth range previously estimated. The company, however, did not provide a new forecast.

P&G did confirm that, while it is operating in a more volatile environment, it is on track to meet its earnings per share guidance for both the October-December quarter and fiscal year 2009. It continues to expect earnings per share of between $1.58 and $1.63 for the October-December quarter and $4.28 to $4.38 for the fiscal year.

During the 2008 Analyst Meeting on Thursday in New York City, chairman and chief executive officer A.G. Lafley noted the importance of strategic consistency and told investors that P&G?s long-term growth will be driven by a continued focus on its core fundamentals‹building and supporting leading brands; ensuring its brands are delivering consumer value; leading innovation that differentiates its brands from competitors; managing cash, cost and organizational productivity with strict discipline.

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P&G files infringement suit against Apollo for Herbal Essences brand

BY Antoinette Alexander

CINCINNATI Procter & Gamble has filed an infringement lawsuit against Apollo Health and Beauty Care for the alleged infringement of its Herbal Essences hair care brand, including trademark, trade dress and design.

“We believe this is a serious case of infringement designed to capitalize on the successfulness of the Herbal Essences’ business and its consumer loyalty,” stated Steven Jemison, P&G chief legal officer. “This is a clear case of intellectual property infringement, and we are asking the court to stop the distribution of these products to protect the equity of Herbal Essences.”

According to the suit, filed Thursday in the Federal Court of Canada, P&G is claiming that private label manufacturer Apollo Health and Beauty Care is distributing look-alike Herbal Essences shampoo and conditioner products that infringe the Herbal Essences intellectual property rights. P&G is asking that Apollo Health and Beauty Care be ordered to stop distributing the infringing products, recall the existing inventory from store shelves and destroy the product molds.

According to a spokesperson for Apollo Health and Beauty Care, which operates out of Concord, Ontario, Canada, it is company policy not to comment on litigation matters.

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Kangas named CEO at Stila

BY Antoinette Alexander

LOS ANGELES Stila, a color cosmetics brand, has promoted Deanna Kangas as president and chief executive officer.

Kangas, who previously served as chief marketing officer, succeeds Ken Ude who served Stila in its senior executive role since July 2007. 

Kangas, who has served in the chief marketing officer role since January 2008, previously co-owned and managed Strategic Growth Consulting, a marketing and consulting firm, as well Swingtime Designs, a fashion and accessories manufacturing company, from 2005 to 2007. Before that, she was general manager of the Barbie Collector division with Mattel and vice president of marketing and public relations with Gloss.com.

Her sales and marketing background includes developing and launching several noteworthy beauty and fragrance brands such as Michael Jordan Cologne and the Bath & Body Works fragrance division. 

Stila is currently available in more than 500 doors in the United States and 21 international markets, as well as online at www.stilacosmetics.com, www.Sephora.com and www.Beauty.com.

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