Rok Stars to acquire Marula skin care
LOS ANGELES — Rok Stars, which is owned by hair care titan John Paul Dejoria and business partner Jonathan Kendrick, have agreed to acquire the privately held skin care line Marula. Rok Stars will immediately take over all day-to-day financial and production operations.
“We are excited to acquire a uniquely positioned skincare brand," stated Kendrick. "Marula fits perfectly within our John Paul Selects business philosophy of fostering eco-conscious, sustainable brands in support of local communities.”
Rok Stars plans to implement a sales strategy to expand the current sales outlets in the United States, Europe and Asia. Currently the line consists of four SKUs: Two sizes of the oil (1 oz. and 1.7 oz.), a cleanser and a moisturizer. Several products are in development including an eye cream and a lip balm, which will be brought to market within the next six months. Marula is currently available at Sephora, Johnpaulselects.com, resorts, spas and other fine retailers.
Aptly timed, Dejoria recently appeared on ABC’s “The Shark Tank,” where he was able to highlight the e-commerce site, JohnPaulSelects.com, which he owns and operates with Kendrick.
Women in Africa derive Marula from wild-harvested, hand-selected Marula nuts that are then cold pressed for quality and purity. Marula is a member of the Fair Trade Association and Green America.
Credit Suisse: Front-end could prove challenging for drug channel
NEW YORK — According to a Credit Suisse analysis of the drug channel published Wednesday, drug stores are in for a challenging winter across the front-end with an embattled consumer continuing to hold back and the continued proliferation of dollar stores that are attracting value-driven trips to their channel.
"Drug store front-end sales growth, as reported by Nielsen, decelerated in the 4-week period ended Oct. 26 on flat price/mix and weaker volumes," wrote Ed Kelly, Credit Suisse research analyst. "Industry sales were up 0.7% for the period, down from the [plus] 1.8% seen last month and the prior six-month average of [plus] 1%," he said.
In addition to a lessening consumer demand, volumes are also being impacted by difficult year-ago comparisons.
"We remain concerned about the continued lackluster sales trends seen in the channel and expect front-end results to remain challenged by continued consumer weakness, the channel’s generally uncompetitive price position and increasing competition from value players," Kelly noted.
While promotional levels across the drug channel are up vs. a year ago, they’re down sequentially, Kelly observed. "Products sold on promotion in the drug store channel was 36.6% of sales, down 46 basis points from the 37% seen last month and up 226 basis points year-over-year."
Beiersdorf sees ‘significant’ growth in first nine months of 2013
HAMBURG, Germany — Skin care brand Beiersdorf reported that its consumer business segment achieved “significant, above-market sales growth” during the first nine months of 2013, with both Nivea and Eucerin enjoying a boost in sales.
Adjusted for the impact of foreign exchange differences, the company increased its sales by 7.3%. In nominal terms, sales increased by 2.4%, from €4.566 billion to €4.674 billion. Consolidated profit rose from €358 million to €433 million.
The consumer business segment delivered organic sales growth of 6.9% in the first nine months of 2013, as nominal sales increased by 1.7%, from €3.816 billion to €3.883 billion.
Nivea recorded organic sales growth of 7.3%. Eucerin generated an 11.1% increase in sales and La Prairie an increase of 5.4%.
The company noted that it saw significant growth in the Americas region, where sales climbed by 11.7%.
As a result of the strong performance in the past months, the company lifted its forecast for full year 2013. The company is now aiming for group sales growth of 6% to 7%.
In the consumer business segment, Beiersdorf is now predicting sales growth of 6% to 7% for 2013, with market growth estimated at 3% to 4%.