Spins study says natural, organic sales remain steady due to consumer loyalty
SCHAUMBURG, Ill. Natural retailers continue to experience strong consumer loyalty and sales momentum despite the economic slowdown, according to the results of recent research released by Spins, an information and service provider for the natural products industry.
Even as natural products become increasingly available in the marketplace by way of new distribution channels, such as pharmacy and mass-market retailers, consumers continue to strengthen their relationship with natural retailers.
In the latest 12 weeks ended Oct. 4, natural and organic product growth rates from natural retailers were more than triple those of conventional with an aggregate sales growth of 10 percent for natural retailers.
Conventional food retailers experienced growth of 3.2 percent during the same period.
Unit sales mirrored this trend, according to Spins, with continued growth in natural retailers while flat in conventional food. Focusing on the organic element of the natural industry (products with more than 70 percent of organic content), natural retailers are also leading the trends with a 13.4 percent sales improvement versus the year-ago period compared with a growth of 4.9 percent at conventional food.
Revlon extends conditions of loan to reduce debt
NEW YORK Beauty company Revlon is amending its $107 million senior subordinated term loan agreement with MacAndrews & Forbes Holdings, Revlon’s majority stockholder, to extend the term of its previously announced equity rights offering.
The term loan will continue to provide that Revlon may, at its option, prepay such loan, in whole or in part, at any time prior to maturity, without premium or penalty, bears interest at an annual rate of 11 percent, payable quarterly in cash, and is unsecured and subordinated to Revlon’s senior debt.
Revlon reaffirmed its intent to launch a $107 million equity rights offering to reduce debt by the same amount. The rights offering would allow stockholders to purchase additional shares of Revlon Class A common stock.
The proceeds of the rights offering would be used to fully repay the remaining principal balance of the term loan. Given the current conditions in the capital markets, Revlon is monitoring the financial markets closely to assess the appropriate timing of the rights offering.
As announced on Sept. 3, Revlon used $63 million of the net proceeds from the previously announced July sale of its non-core Brazilian brands to repay $63 million in aggregate principal amount of the then $170 million term loan. This repayment will result in annualized interest savings of approximately $7 million.
MacAndrews & Forbes, which is wholly-owned by Ronald O. Perelman, beneficially owns as of this date approximately 58 percent of Revlon’s outstanding Class A common stock, 100 percent of Revlon’s Class B common stock and approximately 61 percent of Revlon’s combined outstanding shares of Class A and Class B common stock, which together represent approximately 75 percent of the combined voting power of such shares.
NAD asks for amendments to DermaSilk efficacy claims by maker
NEW YORK The National Advertising Division of the Council of Better Business Bureaus on Friday recommended that BioTech Corporation International, which markets the DermaSilk Anti-Wrinkle dietary supplement, modify or discontinue certain claims for the product, such as “a revolutionary, age-defying anti-wrinkle supplement,” or “it’s like getting a face-lift without the invasive surgery.”
NAD further recommended that the advertiser modify the remaining claims to more accurately reflect that there is emerging evidence that some of the ingredients in DermaSilk may potentially improve the appearance of aging skin and reduce oxidative stress on the skin.
The company, in its advertiser’s statement, said that while the company is “pleased” with NAD’s decision regarding the use of certain claims in the context of emerging science, “we respectfully disagree with NAD’s other findings.”
Nevertheless, the company said, “it supports the self-regulatory process and intends to consider all of NAD’s recommendation in future advertising.”