Value, at-home products color hair care sector
An expected overall upswing in the economy in 2011 is likely to lead to consumers loosening the grip on their wallets. However, for the time being, the sluggish economy continues to shift hair care buying behavior. “
Value will remain the driving force behind hair care sales, despite a predicted upswing in the economy in 2011, as consumers are expected to remain careful spenders within the hair care sector,” stated research firm Euromonitor International.
There’s no doubt that a desire for value is helping to fuel the hair care sector at mass. For example, more shoppers are skipping the salon in favor of at-home hair color as a way to trim costs. According to SymphonyIRI Group, sales of men’s and women’s hair color rose 3.3% for the 52 weeks ended Oct. 31, 2010, at food, drug and mass (excluding Walmart).
Several manufacturers are looking to leverage this trend and offer even greater innovation, such as the new Fat Foam hair color by Samy, which is available exclusively at Walmart. It is a nondrip, whipped foam permanent hair color that promises to make application easier than ever. According to reports, Kao Brands is expected to bring to the United States in April its John Frieda Precision foam color, which also is a permanent home hair color that uses foam technology.
Looking ahead, hair color “is expected to see slight growth, as consumers continue to seek value and favor at-home treatments over salon visits,” Euromonitor International stated.
Also speaking to the desire for value, sales of shampoo and conditioner combo packs soared 87% during the same 52-week period, according to SymphonyIRI.
The article above is part of the DSN Category Review Series.
For the complete Hair Care Buy-In Report, including extensive charts, data and more analysis, click here.
High Ridge Brands snaps up Zest from P&G
GREENWICH, Conn. — Private equity fund Brynwood Partners VI L.P. announced on Tuesday that its newly formed portfolio company, High Ridge Brands, has acquired the Zest brand from Procter & Gamble.
High Ridge Brands purchased the rights to the Zest brand in the United States, Canada and the Caribbean markets. The company will be based in Stamford, Conn., and Brynwood VI has majority ownership of the company.
Terms of the transaction were not disclosed.
Zest, famous for its "Zestfully Clean" advertising campaign, was launched in 1952 by P&G and is known for its bar soap and body wash products.
"We are delighted to announce the acquisition of the Zest brand," stated Dario Margve, nonexecutive chairman of High Ridge Brands and managing partner of Brynwood VI. "We believe that this will be a great new platform investment for our firm and look forward to not only bringing renewed attention and energy to the great Zest brand, but to also adding complementary brands to the company in the future."
Brynwood Partners L.P. has experience in the personal care space. Margve was CEO of J.B. Williams Co., a Brynwood Partners II L.P. portfolio company, from 1992 to 2002. J.B. Williams’ brands included Aqua Velva, Cepacol, Brylcreem and Lectric Shave. J.B. Williams was divested to Combe.
"We are excited to be investing in the personal care space again as this has proven to be a very good area for our firm," added Hendrik J. Hartong III, senior managing partner of Brynwood Partners. "We are pleased to have Dario Margve overseeing this investment for Brynwood VI and have high confidence that he and the management team will put the Zest brand on a growth track again."
Paris Presents partners with Mason Wells
GURNEE, Ill. — Paris Presents, the maker of the EcoTools cosmetic and bath accessories line, has secured an investment from private equity firm Mason Wells. Mason Wells, along with Paris Presents’ existing management team and other investors, acquired the equity of the company from the Zall family.
"We are proud of the business we have built and [are] excited about the opportunity to partner with Mason Wells to continue the growth of Paris Presents," stated Larry Zall on behalf of the Zall family ownership group. "Mason Wells will provide Paris Presents with additional resources to achieve the company’s long-term growth initiatives and to continue our investment in industry-leading product innovation."
"The existing management team of Paris Presents is looking forward to partnering with Mason Wells," added Leah Bailey, the current operational leader of the business, who became CEO of the company in connection with the transaction. "With their strong financial backing and management resources, we will continue to serve our customers with high-quality products and services."
Mason Wells is a Midwest-based private equity firm that manages more than $800 million of capital through Mason Wells Buyout Funds.