P&G’s Freda to head Estee Lauder
NEW YORK Estee Lauder announced on Friday that Procter & Gamble executive Fabrizio Freda will join the company as president and chief operating officer, and it is anticipated that Freda will become chief executive officer within 24 months—a move that at least one industry observer believes could lead to expansion into mass beauty or new distribution channels as the boundaries between mass and prestige increasingly blur.
“We believe investors will react favorably to Estee Lauder’s chief executive officer succession plan. Despite the obvious risks, the appointment of an outsider with mass consumer goods experience implies significant and necessary change is likely,” stated Morgan Stanley analyst William Pecoriello in a research note.
The move is part of a succession plan created by Estee Lauder chief executive officer William Lauder, who will step down in two years.
Until recently Freda served as president of global snacks at P&G. At P&G he spent a decade in positions of increasingly responsibility in the health and beauty care division. Freda also directed marketing and strategic planning for Gucci SpA from 1986 to 1988.
Reporting to Freda in his role as president and chief operating officer will be many of the company’s key global brands, including Clinique, as well as the specialty brands such as Bobbi Brown, La Mer, Jo Malone, Darphin and the Aramis and Designer Fragrances divisions, which will continue to be led by group president Patrick Bousquet-Chavanne; the company’s international business, which accounts for more than 50 percent of sales, under the continuing direction of group president international, Cedric Prouve; global operations; research and development; and packaging.
As part of the plan, chief operating officer Dan Brestle will be named vice chairman and president, ELC North America. In this newly created role, Brestle will continue to oversee the Estee Lauder, MAC, Prescriptives and Tom Ford Beauty brands, which will continue to be led by group president John Demsey and the BeautyBank division on a worldwide basis.
“Although Dan Brestle’s focus on NA could be a positive, will he stay?” stated Pecoriello. “Will the discipline Freda imposes, based on 23 years at P&G, lead to a more structured environment for the personalities that drive the fastest growing brands like MAC?”
In addition, group president Philip Shearer will take on new responsibilities, leading the strategy and new business team, and focusing on mergers and acquisitions. He will continue to lead the Aveda, Origins, Bumble and bumble and Ojon brands, as well as the online business.
L’Oreal, Harpers hold event to raise money for ovarian cancer research
NEW YORK L’Oreal Paris is presenting Wednesday evening “A Night of Hope” celebration with Harper’s Bazaar to benefit The Ovarian Cancer Research Fund.
Cohosting the event, to be held at Murano in Los Angeles, is L’Oreal Paris president Carol J. Hamilton, Harper’s Bazaar editor-in-chief Glenda Bailey and actresses and L’Oreal spokespeople Diane Keaton and Andie MacDowell. They will be joined by other L’Oreal spokespeople, including Eva Longoria, Kerry Washington and Dayle Haddon.
“This year marks the 10th anniversary of L’Oreal Paris’ support of The Ovarian Cancer Research Fund. I am proud of the fact that L’Oreal is the largest corporate fundraiser in this critical fight against ovarian cancer,” stated Hamilton. “Since 1997, we have helped to raise over $13 million to fund life-saving research and to promote awareness building programs to help empower women to make educated choices about their health and well-being.”
The evening will include a cocktail reception and luxury silent auction, which will feature photography and fashions and accessories from designers including Chanel, Louis Vuitton, Donna Karan, Bulgari and De Beers.
All of the proceeds raised at the event will be donated to OCRF’s research programs.
In addition, L’Oreal has created programs to promote ovarian cancer awareness, which include the first-ever public service announcements for ovarian cancer featuring L’Oreal spokespeople Andie MacDowell and Milla Jovovich. The beauty company also created the signature “Color of Hope” cosmetics and jewelry collections that raise funds for OCRF. This year, L’Oreal has added a sterling silver pendant and earrings to the jewelry collection. All of the jewelry items are available at www.lorealcolorofhope.com. A special diamond Color of Hope necklace has been created to commemorate this event.
Physicians Formula appoints Jeff Berry to board of directors
AZUSA, Calif. Cosmetics company Physicians Formula has appointed Jeff Berry to its board of directors. Berry replaces James Lawrence, who stepped down due to the demands on his time as the new chief financial officer of the Unilever Group.
The company also announced that current board member Zvi Eiref will assume Lawrence’s role as chair of the audit committee.
Berry is currently vice president and treasurer of Del Monte Foods. He started his career with Bain and Co. and spent six years with McKinsey and Co., where he advised several consumer products and retail clients in the areas of strategy, branding and marketing.
“Jeff is a very strong addition to our board and brings a wealth of public company and long-term planning and strategy experience with branded consumer companies. We look forward to his input as we continue to build upon our distribution platform,” stated Ingrid Jackel, chief executive officer of Physicians Formula. “I would also like to thank Jim for his valued guidance and contribution over the past year and wish him all the best in his new position.”