The top 50: the year that was ... just wasn't very good.
Multinationals are anxiously awaiting word out of Europe N) find out if the crises in Greece, Spain, Italy and elsewhere will continue to worsen. Meanwhile, in China there's evidence that the economy is sinking from a double-digit growth rate to a high single-digit rate to maybe something worse. Now, in most Countries, 5% growth would he lauded, but when it happens in China that's cause for alarm.
The US, too, is in a tight spot, as consumer confidence remains anemic. As we went to press, Moody's Investor Services had cut ratings on several major global banks including Bank of America and CitiGroup, and the Dow Jones Industrial Average was getting hammered. Couple sliding consumer sentiment with the uncertainty that always surrounds a US Presidential election and there's more than enough reason to worry about the rest of 2012 and 2013.
Marketers are certainly worried. Procter & Gamble, which was, is, and probably always will be, No. 1 on The Top 50, sent shock waves through the household and personal products industry when it issued a warning for fiscal 2013 and slashed its growth estimates in half. Unless there is a dramatic turnaround soon, you can bet that other companies will follow suit as the third quarter gets in Full swing.
Yup, there's a lot of uncertainty out there, but one thing's for sure. If it's July, it must be time for The Top 50--HAm's annual look at the leading US companies in the global household and personal products industry. Breeze through the write-ups on the following pages to see what's new at industry leaders like Estee Lauder, Avon and Ecolab. And don't forget to read The International Top 30 next month. This annual feature provides all the news and data you need to keep up with marketers with headquarters outside the US.
ALPHABETICAL LISTING American international 35 Amway 7 Avon 5 Blistex 46 Blyth 20 Chattem 31 Church & Dwight 14 Clorox 12 Colgate-Palmolive 2 Combe 34 Coty 8 Dermalogica 45 Diversey 12 Ecolab 9 Elizabeth Arden 17 Energizer. 30 Estee Lauder. 4 Gojo 44 Guthy-Renker 17 Helen of Troy 36 Herb alife 42 High Ridge 36 Hydroxatone 41 Inter Parfums 24 Jafra 25 John Paul Mitchell 29 Johnson & Johnson 6 Limted Brands 11 Markwins 28 Mary Kay 10 Merck 26 Method 49 Murad 50 Nu Skin 19 Obagi 48 Parlux 43 Prestige Brands 32 Procter & Gamble 1 Revlon 16 SC Johnson 3 Scents 27 Seventh Generation 38 Spartan 39 State 47 Sun Products 15 Tupperware 22 Turtle Wax 40 WD-40 33 Yankee Candle 21 Zep 23 THE TOP 50 1. Procter & Gamble Cincinnati, OH $68.7 billion 2. Colgate-Palmolive New York, NY $14.5 billion 3. SC Johnson Racine, WI $9 billion 4. Estee Lauder New York, NY $8.8 billion 5. Avon New York, NY $8.2 billion 6. Johnson & Johnson New Brunswick, NJ $7.7 billion 7. Am way Ada, Ml $5.0 billion 8. Coty New York, NY $4.1 billion 9. Ecolab St. Paul, MN $3.6 billion 10. Mary Kay Dallas, TX $3.0 billion 11. Limited Brands Columbus, OH $2,9 billion 12. Clorox Oakland, CA $2.5 billion 12. Diversey Sturtevant, VVI $2.5 billion 14. Church & Dwight Princeton, NJ $2.2 billion 15. Sun Products Wilton, CT S2.0 billion 16. Revlon New York, NY $1.3 billion 11, Elizabeth Arden Miramar, FL $1.1 billion 17. Guthy-Renker Palm Desert, CA $1.1 billion 19. NuSkin Provo, UT $964 million 20. Blyth Greenwich, CT $888 million 21. Yankee Candle Deerfield, MA $785 million 22. Tupperware Orlando, FL $676 million 23. Zep Atlanta, GA $646 million 24. Inter Parfums New York, NY $615 million 25. Jafra Westlake Village, CA $611 million 26. Merck Whitehouse Station $583 million 27. Scentsy Meridian, ID $535 million 28. Markwins City of Industry, CA $482 million 29. John Paul Mitchell Systems Beverly Hills, CA $480 million 30. Energizer St. Louis, MO $419 million 31. Chattem Chattanooga, TN $352 million 32, Prestige Brands Irvington, NY $344 million 33. WD-40 San Diego, CA $336 million 34. Combe White Plains, NY $250 million 35. American Int'l Industries Los Angeles, CA $205 million 36. Helen of Troy El Paso, TX $200 million 36. High Ridge Brands Stamford, CT $200 million 38. Seventh Generation Burlington, VT $165 million 39. Spartan Chemical Maumee, OH $164 million 40. Turtle Wax Chicago, IL $158 million 41. Hydroxatone Jersey City, NJ $156 million 42. Herbalife Los Angeles, CA $147 million 43. Parlux Fort Lauderdale, FL $135 million 44. Gojo Akron, OH $133 million 45. Dermalogica Carson, CA $130 million 46. Blistex Oak Brook, IL $125 million 47. State Industrial Cleveland, OH $115 million 48. Obagi Long Beach, CA $114 million 49. Method San Francisco, CA $112 million 50. Murad El Segundo, CA $110 million
1. PROCTER & GAMBLE
Sales: $68/ billion (estimated for-personal care, oral care and household care products). Corporate sales: $82.6 billion. Net income: $11.7 billion, for the year ended June 30, 2011.
Key Personnel: Bob McDonald, chairman, president and chief executive officer; Werner Geissler, vice chairman, global operations; Dimitri Panavotopoulos, vice chairman global business units; Bruce Brown, chief technology officer; Giovanni Ciserani, group president, global fabric care; Linda W. Clement-Holmes, chief diversity officer and senior vice president, global business services; Joanne Crewes, president, global prestige; Virginia C. Drosos, group president, global beauty, skin, cosmetics and personal care, P&G; Philip J. Duncan, global design officer; Thomas M. Finn, president, global health care; Robert L. Fregolie global customer business development officer; John P Goodwin, president, global Braun, beauty and grooming; Melanie L. Healey, group president, North America and global hyper, super, mass channel; Deborah A. Henretta, group president, Asia and global specialty channel; Colleen E. jay, president, global retail hair care and color,; Joan M. Lewis, global consumer and market knowledge officer; Patrice Louvet, president, global grooming and shave care; Adil Mehboob-Khan, president, P&G Salon Professional, Global Wella Professional; Jorge S. Mesquita, group president, new business creation and innovation, global snacks and pet care; Jon R. Moeller, chief financial officer; Moheet Nagrath, global human resources officer; Filippo Passerini, group president, global business services and chief information officer; Kirk L. Perry, president, global family care; Laurent L. Phillippe, group president, CEEMEA and global high frequency store channel; Charles E. Pierce, group president, global oral care; Marc S. Pritchard, global brand building officer; Martin Riant, group president, global baby care; Jeffrey K. Schomburger, president, global Walmart team; Yannis Skoufalos, global product supply officer; Shannan Stevenson, president, greater China; David S. Taylor, group president, global home care; Jorge A. Uribe, group president, Latin America and global club, cash and carry channel.
Major Products: Beauty & Grooming: AP/Deo--Gillette, Old Spice and Secret; Bodywash & Soap--Camay, Gillette, Ivory, Olay, Old Spice and Safeguard; Colognes--Old Spice; Cosmetics Cover Girl, Dolce & Gabbana, Max Factor; Hair Care--Aussie, Fekkai, Gillette, Head & Shoulders, Herbal Essences; Nioxin, Pantene, Pert, Rejoice, Sebastian, Vidal Sassoon and Wella; Hair Color--Clairol Professional, Fekkai, Natural Instincts, Nice 'n Easy, Wella; Oral Care--Crest, Oral-B, Scope; Prestige Fragrances--Anna Sui, Christina Aguilcra, Dolce & Gabbana, Dunhill, Escada, Gucci, Hugo Boss, Lacoste, Naomi Campbell, Puma; Shaving--Braun, Fusion, Gillette, Mach3, Prestobarba/Blue, Venus; Skin Care--Braun, DDF, Gillette, Olay, Prestobarba/Blue, SK-II. Household: Air Freshener--Febreze; Dishwashing-Ariel, Cascade, Dawn, Joy; Cleaners--Bounty, Comet, Mr. Clean, Swiffer; Laundry--Ace, Bold, Bounce, Cheer, Downy, Dreft, Era, Febreze, Gain and Tide.
New Products: Beauty & Grooming--Gillette Venus & Olay Razor, Oral-B Pro Expert; DDF Skin Evaluation System, Crest & Oral-B Pro-Health Clinical, SK-II Men Facial Treatment Essence, Crest Glamorous White, Head & Shoulders Fresh & Clean, Gillette Fusion ProGlide Styler, Gillette Fusion ProGlide & ProGlide Power, Olay Professional Pro-X Clear, Olay Hair Removal Duo. Household--Febreze Car Vent Clip, Cascade Complete Pacs, Ultra Dawn, Ariel with Micro Boosters, Tide Pods, Downy Unstopables, Ariel Touch of Lenor Fresh, Ultra Era.
Comments: Where in the world is P&G? Just about everywhere it would seem, but the company sent mixed messages to investors in May when CFO Jon Moeller told analysts that the company might have been expanding a bit too fast, particularly as it faces high commodity costs and an uncertain economy. Moeller said P&G now plans on stabilizing growth in its top 40 country-category combinations, which are disproportionately in North America and China. (In all, P&G has about 1,000 country-category combinations.) Then P&G will focus on expanding in its 10 largest emerging markets.
That strategy would seem to fly in the face of P&G's pledge to grow "by touching and improving more consumers' lives in more parts of the world ... more completely."
But the fact is, high costs and issues like supply chain shortages, coupled with costs related to expanding, have led to disappointing results and shrinking market share for P&G, which lowered its fiscal-year guidance in April.
"In retrospect we may have overextended ourselves a bit with the pace of our portfolio and geographic expansions," Moeller said. "Had we anticipated the commodity cost increases and markets contractions in developed markets that we ultimately experienced, we might have chosen a slightly slower pace."
That said, Moeller insisted the company has no plans to pull out of any category-country combination and will maintain its growth in emerging markets.
"In terms of level of activity it's just being a little bit more deliberate and ensuring we have sufficiency before we push the button for the next expansion," Moeller said.
Things got even dicier last month, when the company lowered its estimates for Q4 and fiscal 2013. For the April-June quarter, organic sales growth is now expected to be in the range of 2-3%, compared to a prior range of 4-5%. Net sales are expected to be in the range of 1..2% compared to a prior range of an increase of 1-2%. The revisions to the fourth quarter outlook are primarily driven by slower than anticipated top-line growth from slower than expected market growth rates and market share softness in developed regions and negative impacts from foreign exchange rate changes.
Looking ahead to fiscal 2013, P&G expects organic sales growth of 2-4%.
A Tough Earnings Environment
For the nine months ended March 31, 2012, P&G's sales rose 5% to more than $60.5 billion, but net income fell 23% to $7.1 billion. Beauty sales rose 4% to $15.5 billion with a 7% decline in earnings to $2 billion. Grooming sales rose 4% to $6.3 billion and earnings rose 2% to $1.4 billion. Fabric and home care sales rose 4% to $20.7 billion, but earnings fell 10% to $2.2 billion.
On June 1, P&G completed the sales of its Pringles business to Kellogg in a nearly $2.7 billion all-cash deal. With completion of the sale, the Pringles workforce will transfer to Kellogg.
The Olympics open in London this month, and few US companies are more involved in The Games than P&G. Once again, Procter is sponsoring the US Olympic Team and is honoring all the moms around the world who work behind the scenes to make sure that their sons and daughters can perform at their peak level.
Fiscal 2011 Results
For the year ended June 30, 2011, P&G's corporate sales rose 5% to $82.6 billion on a 4% gain in organic sales and a 6% increase in unit volume. Net earnings fell 7% to $11.8 billion. Developing markets accounted for 35% of sales, up from 34% in 2010 and 33% in 2009. All geographic regions contributed to volume growth, led by double-digit growth in Asia, high single-digit growth in Latin America and mid-single-digit growth in CEEMEA and Western Europe. All six of the business segments contributed to volume growth with high single-digit growth in the Baby Care and Family Care and Fabric Care and Home Care segments, mid-single-digit growth in the Beauty and Health Care segments, and a low single-digit growth in the Grooming and Snacks and Pet Care segments.
More specifically, beauty net sales increased 3% to $20.2 billion on unit volume growth of 4%. Organic sales also grew 3%. Mix negatively impacted net sales by 2% behind disproportionate growth in developing regions, which have lower-than-segment-average selling prices, and declines in the premium-priced Prestige Products and Salon Professional categories. Favorable foreign exchange positively impacted net sales growth by 1%. Volume in developing regions increased double digits, while volume in developed regions declined low single digits.
Volume in Retail Hair Care grew mid-single digits behind growth in all regions except North America. Developing regions grew double digits behind initiative activity on Pantene, Head & Shoulders and Rejoice, distribution expansions and market growth, which were partially offset by a mid-single-digit decline in North America due to competitive activity. Global market share of the hair care category was up slightly. Volume in Female Beauty was up low single digits primarily due to higher shipments of Olay, Venus and Safeguard behind initiative activity, and distribution expansion and market growth in developing markets. Volume in Salon Professional was down high single digits mainly due to the planned exit of non-strategic businesses and market size contractions in developed regions. Volume in Prestige Products declined low single digits primarily due to the divestiture of minor brands and lower shipments in Western Europe.
Grooming net sales increased 5% to $8.0 billion on volume growth of 3%. Organic sales were up 5%. Price increases, taken primarily across blades and razors in Latin America and developed regions, contributed 2% to net sales growth. Volume grew high single digits in developing regions and decreased low single digits in developed regions. Volume in Male Grooming was up low single digits due to higher shipments of blades and razors, mainly in developing regions driven by market growth, and deodorants in North America, partially offset by reduced volume in blades and razors in the developed regions. Gillette Fusion shipments increased double digits behind the continued expansion and success of Fusion ProGlide, while Mach3 shipments increased low single digits due to growth in developing regions, partially offset by decreases in developed markets.
Volume in oral care grew mid-single digits behind initiative activity and incremental merchandising support of Crest and Oral B. Global market share of the oral care category was up over half a point.
Fabric care and home care net sales increased 4% to $24.8 billion on a 7[degrees]k increase in unit volume. Organic sales were up 3%. Organic volume, which excludes the impact of the Ambi Fur acquisition, increased 5%. Mix negatively impacted net sales growth by 2% due to disproportionate growth of mid-tier product lines and powdered laundry detergents, which have lower than segment average selling prices. Unfavorable foreign exchange reduced net sales by 1%. Volume in developing regions was up high single digits, while volume in developed regions grew mid-single digits. Fabric Care volume increased mid-single digits, led by high single-digit growth in developing regions behind initiative activity, increased distribution and market growth. Global market share of the fabric care category increased slightly.
Home Care volume increased double digits due, in part, to the Ambi Pur acquisition. Organic volume in home care was up high single digits driven mainly by initiative activity, including launches of Gain hand dishwashing liquid and Febreze Set & Refresh in North America, and geographic expansion of dish and air care product lines.
Effective February 2011, P&G consolidated the three global business units (GBUs) into two: Beauty & Grooming and Household Care. As a result, the Health Care segment largely became part of P&G's Beauty and Grooming GBU, while the Snacks and Pet Care segment became part of P&G's Household Care GBU.
New York, NY
Sales: $14.5 billion for oral, personal and home care products.
Corporate sales: $16.7 billion. Net income: $2.4 billion.
Key Personnel: Ian Cook, chairman, president and chief executive officer; Fabian Garcia, chief operating officer, global innovation and growth, Europe and Hill's Pet Nutrition; Franck J. Moison, chief operating officer, emerging markets and south Pacific; Dennis Hickey, chief financial officer; Andrew D. Hendry, chief legal officer and secretary; Jack Huston, SVP, office of the chairman; Nigel B. Burton, chief marketing officer; Mike Corbo, VP, global supply chain; Alec de Guillenchmidt, president, Colgate-Europe; Victoria Dolan, VP and corporate controller; Torn Greene, chief information officer; Daniel Marsili, SVP-global human resources; Ronald T. Martin, VP-global sustainability and social responsibility; Rosemary Nelson, VP, deputy general counsel, operations; Elaine Paik, VP and cor-porate treasurer; Katherine Hargrove Ramundo, VP, deputy general counsel and assistant secretary; Justin Skala, president, Colgate-Latin America; Patricia Verduin, chief technology officer; Noel R. Wallace, president, Colgate-North America and global sustainability; Francis NI. Williamson/VP, Colgate-Latin America; Greg Woodson, VP, chief ethics and compliance officer.
Major Products: Oral Care--Total Advanced, Optic White, ProClinical White toothpastes; 360 [degree], Max White, Professional toothbrushes; Dora the Explorer, SpongeBob SquarePants, 2-in-1 children's toothpastes; Orabase mouth pain relief, Phos-Flur rinse, Peroxyl oral cleanser; dental professional products. Personal Care--Speed Stick, Lady Speed Stick, Irish Spring deodorants; Softsoap and Irish Spring body washes, Softsoap hand soap; Irish Spring and Softsoap bar soaps; Afta men's toiletries. Home Care--Palmolive, Ajax and Dermassage dishwashing liquids; Murphy Oil Soap, Fabuloso and Ajax household cleaners; Suavitel fabric conditioner.
New Products: Colgate Optic White and Colgate Sensitive Pro Relief toothpastes, Sanex Zero.
Comments: Corporate sales rose 7.5% last year. Sales of oral, personal and home care products rose 8%, driven by volume growth of 4%, net selling price increases of 1.0% and a positive foreign exchange impact of 3.0%. Excluding the impact of the divestment of the non-core detergent business in Colombia, volume increased 4.5%. The Sanex business contributed 1.0% to sales and volume growth in 2011. Organic sales in the oral, personal and home care segment increased 4.5% on organic volume growth of 3.5% in 2011.
Of course, the bulk of Colgate's sales come from toothpaste and the company is quick to note that its worldwide share is approaching 45%--well ahead of its nearest competitor. Colgate says the share growth is due, in part, to professional recommendations. Back in 2004, 28% of dentists worldwide recommended Colgate. Last year, that percentage rose to 48%.
Approximately 80% of Colgate's net sales are generated from markets outside the US, with approximately 50% of net sales coming from emerging markets--which consist of Latin America, Greater Asia/Africa (excluding Japan) and Central Europe. Last year, sales in North America declined .5% to nearly $3 billion, due to a 3% decline in selling price. Sales in Latin America jumped 12% to nearly $4.8 billion, driven by volume growth of 3% and a 7% surge in selling price. Europe/South Pacific sales jumped 9% to $3.5 billion on a 5% gain in volume and a positive impact of foreign exchange of 7.0%. The United Kingdom, Spain, France, Denmark and the GABA oral care business led volume gains.
Sales in Greater Asia/Africa increased 9.5% to nearly $3.3 billion driven by a 6.5% volume growth. Gains were led by India, the Greater China region, Russia, and South Africa.
On July 29, 2011, in connection with the Sanex acquisition, Colgate sold its laundry detergent business in Colombia to Unilever for S215 million, resulting in a pretax gain of $207 million ($135 million aftertax gain).
Taking the Initiative
In 2012, Colgate is focused on four strategic initiatives:
* Engaging to build its brands;
* Innovation for growth;
* Effectiveness and efficiency; and
* Leading to win.
That means engaging with consumers, shoppers, customers and professionals through products, packaging, communication and in-store promotion. For example, Colgate is ranked as the No. 1 most trusted brand in India and has a 52.3% share of the market (compared to 25.6% for the No. 2 brand). In Brazil, Colgate's toothpaste share exceeds 70%. In the US, it provides oral health education for more than 10 million children each year.
In terms of innovation, Colgate says its new Optic White toothpaste formula contains the same whitening ingredient as whitening strips. Meanwhile new Colgate Sensitive Pro-Relief with Pro-Argin technology is said to provide instant and long-lasting relief from sensitivity. Meanwhile, Colgate is promoting its new Sanex Zero% with the tagline "contains only what your skin needs." That means, 0% parabens, 0% colorants, 0% phthalates and 0% phenoxyethanol.
To promote efficiency, Colgate is generating efficiency through a variety of programs. One of the biggest has resulted in a 35% reduction in product formulas during the past four years.
Finally, leading to win, means Colgate is living its values, helping Colgate staff to perform at their best and fulfilling its commitment to the communities it serves.
For the first quarter of 2012, corporate sales rose 5% to $4.2 billion. Sales in the oral, personal and home care segment rose 6% to more than $3.6 billion. Net sales in North America increased 5.0% to $755 million, as volume growth of 5.0% and net selling price increases of 0.5% were partially offset by a negative foreign exchange impact of 0.5%. Net sales in Latin America increased 6.5% in the first quarter of 2012 to nearly $1.2 billion, as volume growth of 1.0% and net selling price increases of 10.0% were partially offset by a negative foreign exchange impact of 4.5%. Net sales in Europe/ South Pacific increased 2.5% in the first quarter of 2012 to $854 million, as volume growth of 7.0% was partially offset by net selling price decreases of 2.5% and a negative impact of foreign exchange of 2.0%.
3. SC JOHNSON
Sales: $9 billion for the year ended June 30, 2011., but that total includes sales for food management.
Key Personnel: H. Fisk Johnson, Ph.D., chairman and chief ex ecutive officer; Jane M. Nutterly, executive vice president, world-wide corporate and environmental affairs; Gayle Kosterman, executive vice president, worldwide human resources; Roberto Leopardi, group managing director, European Central Cluster, SC Johnson Germany; Keith Maurer, director of customer service and logistics and director.
Major Products: Household Care--Drano, Duck, Fantastik, Glade, Grab-It, Mr. Muscle, Nature's Source, Oust, Pledge, Scrubbing Bubbles, Shout, Vanish, Windex, Bavfresh, Caldrea, Mrs. Meyers. Pest Control--Autan, Baygon, Off!, Raid. Floor Care--Armstrong, Brite, Future, SC Johnson Floor Wax; Auto Care--Grand Prix.
New Products: Vecco floor covering colors and sealants.
Comments: Corporate sales rose nearly 6% last year. For years, SC Johnson products have helped consumers clean their home. Now, SQ is helping them decorate too, with the launch of Vecco, a process to rejuvenate old carpets or rugs with ease and creative freedom. Would-be decorators can visit www.veccostudio.com to create designs and calculate the amount of colorant, sealant and templates needed to create their design. Colorants and sealants are available for $16.99 each and $15.99 per template. One can of colorant or sealant covers six templates and each template can be used six times. Vecco products are sold directly to consumers via the website and through the interactive experience at Vecco Design Studio locations.
SC Johnson has proudly published its sustainably report for 20 years in 2011, SCJ reached some key milestones:
* Achieved the 2011 goal to source 40% of the company's electricity from renewable sources.
* Using its patented Greenlist process, SC Johnson has continued to improve its products. Since 2001, the percent of "better" or "best" ingredients used in the company's products increased by 33 percentage points.
* SC Johnson advocated for better chemical regulation and the need to modernize the 35-year-old chemical statute the Toxic Substances Control Act (TSCA) in the US.
The Five Year Plan
The company's 2011 report also introduces SC Johnson's next set of five-year sustainability objectives which focus on 3600 of green choices. These include:
Continuously Improving Products: Having already increased use of ingredients rated "better" or "best" From 18% in 2001 to 51 % in 2010, increase to 58% by 2016.
Communicate Transparently: Communicate to the people who buy SC Johnson products about the materials used and the impact of the company's operations.
Reduce Waste: Increase post-consumer-recycled content across product packaging to 30%; decrease packaging across product lines by 5%; offset 30% of virgin material use through innovative partnership and packaging advances.
Reduce Carbon Footprint: Decrease the company's upstream footprint by 8%; reduce emissions from SC Johnson by 6%; increase the company's use of renewable energy to 44% of total electricity use worldwide and cut downstream footprint by 2%.
Continue SCJ's work to improve lives through infectious disease prevention, efforts at the base of the economic pyramid, and community investment and volunteerism.
"At the end of the day, we all want to make the world a better place for our children and our children's children," concluded Fisk Johnson, chairman and CEO. "That's the heart of SC Johnson's environmental plan, and it's an aspiration this family company has held dear for 125 years."
SC Johnson's retail customers are taking notice. In March, Walmart Canada presented SCJ with its second-annual Vendor Sustainability Award, which recognizes a company's overall sustainability progress and effort in helping Walmart sell products that sustain both people and the environment. SC Johnson was one of 80 companies considered for the honor. In April, Sam's Club selected SCJ as its vendor of the year in Brazil and China.
4. ESTEE LAUDER
New York, NY
Sales: $8.8 billion. Net income: $700 million for the year ended June 30, 2011.
Key Personnel: Fabrizio Freda, president and chief executive officer; Amy DiGeso, executive vice president, global human resources; John Demsey, group president; Carl Haney, executive vice president, research and development, product innovation and brand product development; Richard W. Kunes, executive vice president and chief financial officer; Leonard A.. Lauder, chairman emeritus; Ronald S. Lauder, chairman, Clinique Laboratories, LLC; William P. Lauder, executive chairman; Sara E. Moss, executive vice president and general counsel; Gregory F. PoIcor, executive vice president, global supply chain; Cedric Prouve, group president, international; Alexandra C. Trower, executive vice president, global communications.
Major Products: Skin care, makeup, fragrances and hair care products marketed under brands including Estee Lauder, Aramis, Clinique, Prescriptives, Lab Series Skincare for Men, Origins, Tommy Hilfiger, MAC, Kiton, La Mer, Bobbi Brown, Donna Karan, Aveda, Jo Malone, Bumble and Bumble, Michael Kors, Darphin, American Beauty Flirt!, Goodskin Labs, Grassroots Research Labs, Sean John, Missoni, Torn Ford Beauty, Coach, Ojon, Smashbox.
New Products: Skin care--Estee Lauder Re-Nutriv Ultimate Lift Age-Correcting and Hydrationist Collections, Idealist Even Skintone Illuminator and Idealist Cooling Eye Illuminator; Clinique Repairwcar Laser Focus Wrinkle & LW Damage Corrector, Lid Smoothie Antioxidant 8-Hour Eye Colour and Turnaround Overnight Radiance Moisturizer; Origin Planscription La Mer The Eye Balm Intense and The Radiant Serum. Makeup--Estee Lauder Pure Color eye shadow and long lasting lipstick; Clinique Redness Solutions; Fragrance--Estee Lauder Pleasures Bloom, Sensuous Nude; DKNY Golden Delicious and Hilfiger Loud for Her.
Comments: P&G may be rethinking its global strategy and Avon may be a mess, but Estee Lauder just keeps on chugging along.
Last year, sales rose 13% and net earnings soared 47%--which put EL smack dab in the middle of the surging prestige beauty business in the US. Fiscal 2011 was a quiet year for Estee Lauder, which had been snapping up smaller companies on a nearly annual basis since 1999. The last acquisition Estee Lauder made was Smashbox in 2010.
BY distribution channel, North American department stores and international department stores each accounted for 27% of The Estee Lauder Companies' total sales. Perfumeries were next at 13%; followed by travel retail, 9%; retail stores and other, 9% each; and salon/spas, 5%.
By product category, skin care sales increased 15% to $3.7 billion due to successful launches of products such as Re-Nutriv Ultimate Lift Age-Correcting and Hydra tionist collections, but those launches were partly offset by declining sales of Advanced Night Repair line From Estee Lauder and Cyber White EX From Clinique.
Makeup sales increased 13% to $3.3 billion on the strength of the recent launches of Pure Color eyeshadow products and Pure Color Long Lasting Lipstick from Estee Lauder and Redness Solutions Makeup from Clinique. Those gains were offset in part by lower sales of Prescriptives, Superfit Makeup from Clinique and Resilience Lift Extreme Makeup from Estee Lauder.
Fragrance sales increased 9% to $1.2 bil Lifting/Firmin lion. The gain was attributed to launches of Estee Lauder Pleasures Bloom and Hilfiger Loud for Her as well as higher sales of Coach Poppy, pureDKNY and various Jo Malone and Tom Ford fragrances, which were partially offset by lower sales of DKNY Delicious Candy Apples, Estee Lauder Sensuous and I Am King Sean John.
By region, sales in the Americas rose 10% to nearly $3.8 billion, due to a strengthening retail outlook in the US and Canada as well as gains in Brazil.
Sales in Europe, the Middle East and Africa rose 14% to $3.2 billion due to growth from the travel retail business, as well as the UK, Russia, the Middle East, South Africa and France.
Finally, net sales in Asia/Pacific increased 17% to more than $1.7 billion. Much of the increase was due to higher skin care sales in China, Hong Kong, Korea and Taiwan, but those gains were tempered by difficult economic conditions in Australia and Japan, according to Lauder.
The gains continued into fiscal 2012. For the nine months ended March 31, 2012, sales rose 11% to more than $7.4 billion. Skin care sales increased 16% to $3.2 billion; makeup sales rose 9% nearly $2.8 billion; fragrance sales rose 1% to just over $1 billion and hair care sales increased 6% to $335 million.
"From the US, our underlying business trend is really strong. Our US business is very strong, and we believe we continuo to be vely, very solid," noted Fabrizio Freda, president and CEO. He pointed out that in prestige department and beauty specialty stores in the US tracked by NPD, Estee Lauder gained an impressive 1.6% share in skin care, led by Clinique, Estee Lauder, and La Mer.
"Our skin care lineup is so powerful that in the quarter our brands had eight of the top 10 SKUs and 20 of the top 25 products," he told analysts in a Q3 earnings call. Importantly, our skin care sales in these channels expanded 23% at retail in this recent period over the same quarter last year Estee Lauder, in particular, had great results, with its skin care business rising 21% retail in the United States."
Freda also announced Estee Lauder will streamline its manufacturing operation and create a state-of-the-art facility at its Melville, NY location for fragrance filling and skin care during the next year Estee Lauder will transition fragrance filling to Melville from Oakland, NJ, and close the Oakland plantlb make room for the manufacturing expansion, the company is relocating distribution operations from Melville to its North America huh in Pennsylvania, which will enable EL to better serve its retailers by centralizing our distribution.
Secondly, Estee Lauder will to continue to increase ad spending to build its momentum in fiscal year 2013. For the full year, incremental advertising spending was expected to exceed $275 million. EL is funding the additional advertising spending through higher sales and by reducing promotions and non added value cost. In fact, Freda credits increased advertising for much of the company's double-digit gains during the past two years.
"As we approach the three-year mark of our strategic journey, we have complete confidence in the soundness of our vision and our ability to execute with excellence," noted Freda. "Our goals are to ensure that we anticipate consumer desires; build upon our leadership role in global prestige beauty; and deliver sustainable, profitable growth to stockholders."
New York, NY
Sales: $8.2 billion for cosmetics, toiletries and fragrances. Corporate sales: $11.2 billion. Net income: $513 million.
Key Personnel: Sheri S. McCoy, chief executive officer; Charles M. Herington, executive vice president, developing market group; Kimberly A. Ross, executive vice president and chief financial officer; Fernando J. Acosta, senior vice president and president, Latin America; Bob Briddon, senior vice president and president, Asia Pacific; Nancy Glaser, senior vice president, global communications; Donagh Herlihy, senior vice president, chief information officer and e-commerce; John Higson, senior vice president and president, Europe, Middle East and Africa; Jorge Martinez Quiroga, senior vice president and president, North America; John F. Owen, senior vice president, global supply chain; Kim Rucker, senior vice president, general counsel, corporate secretary and chief compliance officer; Mike Schwartz, senior vice president, global insights and marketing intelligence.
Major Products: Skin Care--Anew, Anew Clinical, Anew Genics, Clearskin Professional, Avon Solutions; Color Cosmetics--Avon Color, Jillian Dempsey Professional, Smooth Minerals, Anew Beauty; Personal Care--Skin-So-Soft, Avon Naturals, Foot Works; Hair Care--Advance Techniques; Fragrances--Outspoken and Outspoken Intense by Fergie; Mark beauty products; Liz Earle naturally active skin care; Tiny Tillia baby products.
New Products: SuperShock Max Mascara, Moisture Seduction Lipstick, Outspoken Intense by Fergie Fragrance, Step Into Fragrance, Anew Genics Treatment Cream., Anew Solar Advance Sunscreen Face Lotion SPF 45, Solutions Youth Minerals Restorative Night Cream, Skin So Soft Perfecting Oil., Advance Techniques Damage Repair 3D Rescue Leave-in Treatment, Super Enchant Mascara, and ExtraLasting Makeup, Advance Techniques Frizz Control Lotus Shield.
Comments: Avon's been in the news of late ... much to company executives' chagrin. Last year there was the bribery scandal in emerging markets. Next came the semi-forced resignation of CEO Andrea Jung. Most recently, there was Coty's unsolicited bid for the company that went nowhere. To make matters worse, through all-that Avon has been reporting less than stellar results.
The good news, of course, is that after a well-published search, Avon selected Sheri S. McCoy as its chief executive officer (Jung remains on the board as executive chairman). McCoy joined Avon after a 30-year career at Johnson & Johnson, most recently serving as vice chairman of the executive committee, responsible for the pharmaceutical and consumer business segments that represented more than 60% of the company's rev enues. McCoy received a B.S. degree in textile chemistry from the University of Massachusetts, Dartmouth. She also earned a master's degree in chemical engineering from Princeton University and an MBA from Rutgers University. She holds four US patents. In 2011, McCoy ranked No. 10 on Fortune magazine's "50 Most Powerful Women in Business" list, which she has been on since 2008.
McCoy may be powerful but she'll need superhuman strength to give Avon a lift. Since 2007, the company's stock has underperformed its peers, and Avon's performance in North America has been underwhelming. First and foremost, however, McCoy will have to provide a lift to all those Avon Ladies. According to sources, the reps want improved commissions, a break on what they pay for brochures, more exciting products and less pressure to recruit more reps.
Last year, Avon's sales rose 4%, primarily due to a favorable foreign exchange rate. The number of active representatives fell 1% to 6.4 million. Beauty product sales, which accounted for 73% of corporate revenue last year, rose 5%, although unit sales declined 1%. The company blamed slower-than-expected growth due to weaker macroeconomic conditions. Still, all beauty segments reported an increase in dollar sales. Fragrance increased 7%, color cosmetics increased 5%, personal care rose 4% and skin care increased 3%.
By region, sales in North America fell 6% to $2.1 billion. Unit sales declined 10% and the number of active representatives declined 8% to about 420,000. Avon blamed the drop in sales on a declining number of active representatives, as well as weakness in the beauty market. That's hard to believe, though, since nearly every research firm reported that beauty made a big comeback in the US in 2011.
In contrast, Latin America sales rose 11% to $5.1 billion, while unit sales increased 2% and the number of representatives rose 3%. Sales in Mexico improved 17% and sales in Brazil rose 6%.
Sales in Central and Eastern Europe were flat at nearly $1.6 billion. Units and active representatives declined 6% and 2%, respectively. Weakness in Russia was offset by a favorable exchange rate.
Western Europe, Middle East and Africa reported a 5% gain in sales to $1.5 billion. Unit sales increased 1%, while the number of active representatives rose 4%--which is why Avon's sales rose in the region, according to the company. Furthermore, big gains in South Africa were partly offset by declines in the UK.
Sales in Asia Pacific fell 4% to 5942 million. Last year, the results of Asia Pacific and China were managed as a single operating segment. Unfortunately revenue in China fell 20% last year, but the company is focused on improving representative productivity.
For the first quarter of 2012, corporate sales fell 2% to $2.6 billion. Beauty sales declined 1%: color was flat, fragrance and skin care declined 1%, and personal care was down 2%.
6. JOHNSON & JOHNSON
New Brunswick, NJ
Sales: $7.7 billion for skin, baby and oral care products. Corporate sales: $65 billion.
Key Personnel: William C. Weldon, chairman; Alex Gorsky, chief executive officer; Dominic J. Caruso, VP-finance and chief financial officer; Peter M. Fasolo, VP-global human resources; Michael H. lillmann, VP, general counsel.
Major Products: Baby Care--Johnson's Baby; Skin Care-Aveeno, Clean & Clear, Johnson's Adult, Neutrogena, RoC, Lubriderm, Dabao and Vendome; Oral Care--Listerine and Reach.
New Products: Neosporin Essentials, Neutrogena All-in-One Acne Control, Wet Skin sunblock spray and Neutrogena Naturals face and lip products, Aveeno Smart Essentials, Listerine Zero.
Comments: Corporate sales rose 5.6% after two years of declines. Consumer sales rose 2% to $14.9 billion, but operating profit fell 10.5% to $2 billion, due primarily to the recall of several OTC products.
Taking a closer look within the consumer health care business, sales of skin care products jumped 7.6% in 2011 to $3.7 billion due to gains from Neutrogena, Dabao, Johnson's Adult and Le Petit Marseillais.
Baby care sales rose 5.8% to $2.4 billion on the strength of cleanser, wipe and hair care sales.
Finally, oral care sales rose 6.4% to $1.6 billion thanks to higher sales of Listerine:
J&J said it spent $659 million on consumer product research last year.
For Qi 2012, corporate sales declined 0.2% to $16.1 billion, but the company noted that Neutrogena and some oral care products posted gains in the quarter. More specifically, global consumer healthcare sales fell 2.4% to nearly $3.6 billion in Ql. Skin care sales rose 0.9% to $907 million. Oral care sales declined 1% to 5387 million and baby care sales fell 3.7% to $540 million.
The big personnel move, of course, was vice chairman Sheri S. McCoy's April resignation to become CEO of Avon Products.
Sales: $5 billion for personal care and home care products. Corporate sales: $10.3 billion.
Key Personnel: Steve Van Andel, chairman; Doug Delos, president; Steve Lieberman, vice president and managing director; Jori Hartwig, vice president, marketing; Sandy Spielmaker, vice president, sales; Ray Alexander, director of strategic planning; David C. Bartlett, chief financial officer; Greg Lang, director of information technology.
Major Products: Artistry cosmetics and skin care products, Legacy of Clean home care products.
New Products: Artistry Intensive Skincare Renewing Peel, Creme LX Eve, Artistry Time Defiance LW Defense SPF 30 Ultra Facial Sunscreen and Artistry Men skin care.
Comments: Led by big gains in China, sales of beauty and personal care products approached $2.8 billion in sales last year, driven by the Artistry brand, which is among the world's top five largest selling premium skin care brands and is the No. 1 brand in China, according to Amway. Artistry Intensive Skincare Renewing Peel, which launched globally in 2011, was the first in a new line of at-home skin care products that offer benefits comparable to clinical professional treatments. Other significant launches in 2011 were Creme LX Eye and the Artistry Men skin care line.
Sales of home products reached, $2.2 billion led, in part, by the Legacy of Clean line of products.
Although not part of HAm's world, Amway is investing in its nutritional products. The company said it will invest nearly $1 80 million to significantly expand US manufacturing and processing capacity to meet growing global demand for its top selling Nutrilite brand of vitamin, mineral and dietary supplements.
Nutrilite is the world's No. I selling vitamins and dietary supplements brand, leading nutrition category sales approaching $4.7 billion in 201.1. Sales of Nutrilite Protein Powder and Double X Vitamin/Mineral/Phytonutrient supplements accounted for more than one third of category sales. Major product launches for Nutrilite last year included Memory supplement, Vitamin C Plus Extended Release, and All Plant Protein Powder.
"Nutrilite is integral to the future of Amwav as the world's No. 1 selling vitamins and dietary supplements brand," said Amway chairman Steve Van Andel and president Doug DeVos in a joint statement. "By bringing a second nutrition product manufacturing plant to our home market of Michigan, we are helping our distributors meet the growing customer demand for our Nutrilite brand products."
Sales of products that do not fall into the nutrition, beauty or home categories totaled $600 million in 2011.
In 2011, Amway had more than three million independent business owners in more than 80 countries and territories around the world. Amway North America has more than 600 employees.
New York, NY
Sales: $4.1 billion.
Key Personnel: Bad Becht, chairman; Bernd Beetz, chief executive officer; Jules Kaufmann, senior vice president, general counsel; Geraud-Marie Lacassagne, senior vice president, human resources; Ralph Macchio, chief scientific officer, senior vice president global research and development; Darryl McCall, executive vice president, operations; Sergio Pedreiro, chief financial officer; Michele Scannavini, president, Coty Prestige; Renato Semerari, president, Cory Beauty; Peter Shaefer, senior vice president, business development.
Major Products: Fragrances, skin care, color cosmetics marketed under such names as Adidas, Astor, Balenciaga, Beyonce, Bottega Veneta, Calvin Klein, Celine Dion, Cerruti, Chloe, Chopard, CK One Color, David Beckham, Davidoff, Hite Models, Esprit, Faith Hill, Guess, Halle Berry, Heidi Klum, Jennifer Lopez, Jil Sander, Joop!, Jovan, Karl Lagerfeld, Kate Moss, Kvlie Minogue, Lancaster, Madonna, Manhattan, Marc Jacobs, Miss Sporty, Nautica, Nikos, NYC' New York Color, Nicole by OM, UPI, Philosophy, Pierre Cardin, Playboy, Rimmel, Roberto Cavalli, Sally Hansen, Sarah Jessica Parker, Stetson, Tim McGraw, Tjoy, Tonino Lamborghini, Vera Wang, Vivienne Westwood.
New Products: Truth or Dare fragrance, OH Holland nail enamel, Rimmel Scandaleves mascara, Calvin Klein Color Cosmetics. To he launched: Monster, Lady Gaga's new fragrance (Fall 2012).
Comments: Coty came calling, but We Mon Lady refused to come to the door. After Avon's board outright rejecting an un solicited S1C) billion bid in April, CONY execs upped the ante to $10.7 billion. Less than a month later, Coty withdrew its second bid. In a letter to the Avon board, Coty said it was moving On to pursue other opportunities. If Avon had given a credible reason of why it needed more time, Coty would have considered agreeing to it, people familiar with the matter said. But after reaching out to various parties on the Avon side and receiving no reply, Coty, decided to stick to its original deadline.
"(Avon's) lack of engagement with us leads us to believe that you remain reluctant to explore a friendly negotiated combination on a reasonable timetable," Coty chairman Bart Becht wrote in the letter to Avon. "Two months is enough. ... it is time for Coty Inc. to move on."
For its part, Avon issued the following statement:
"Avon Products responded promptly to Coty's May 9th letter by disclosing it on May 10th and indicating that its Board would consider the contents of the letter. Subsequently on May 13th, Avon's Board said it would respond to Coty's letter within one week after considering it in conjunction with management and financial and legal advisors. On May 14th, five days after sending its letter, Coty withdrew its proposal."
With that, Becht returned to the drawing board to mull his next move, which could include bringing Coty public. Coty Inc. has tapped Bank of America Merrill Lynch and J.P. Morgan Chase as lead underwriters for an initial public offering, which is expected to be priced this summer or early fall, people familiar with the matter said.
Nearly evervone agrees that Coty will continue to look for acquisitions. But few of the names that have emerged, including Perricone MD and Urban Decay, have a presence in emerging markets--something that made Avon very attractive to Coty in the first place.
Becht became Coty's chairman in November, after a lengthy and successful career at Reckitt Benckiser. Coty is majority owned by Joh. A. Benckiser, which is also the largest shareholder of Reckitt Benckiser Group PLC.
St. Paul, MN
Sales: $16 billion (estimated) for cleaning and sanitizing products. Corporate sales: $6.8 billion. Net income: $463 million.
Key Personnel: Douglas Mr. Baker, chairman and chief executive officer; Christophe Beck, executive vice president and president, global integration; Larry L. Berger, executive vice president and chief technical officer; Angela M. Busch, senior vice president, corporate development; Ching-Meng Chew, vice president and treasurer; John J. Corkrean, senior vice president and corporate controller; Steven L. Pritze, chief financial officer; J. Erik Fvrwald, president; Thomas W. Handley, senior executive vice president and president, global food and beverage and Asia Pacific Latin America; Michael A. Hickey, executive vice president and president, institutional; Roberto Inchaustegui, executive vice president and president, global specially; Phillip J. Mason, executive vice president and president, EMEA; Stewart H. McCutcheon, senior vice president and chief information officer; Eric G. Melin, executive vice president and president, Asia Pacific; Michael L. Meyer, executive vice president, human resources; James A. Miller, executive vice president and president, global services and specialty; Timothy P Mulhere, executive vice president and president, glob al healthcare; James J. Seifert, executive vice president, general counsel and secretary; Gregory E. Temple, executive vice president and chief supply chain officer; James H. White, executive vice president and president, Latin America.
Major Products: Institutional--warewashing, laundry, house--keeping, water filtration and conditioning and pool and spa management products. Food and beverage--cleaning and sanitizing products, equipment, systems and services. Pest elimination--commercial elimination and prevention services and grease elimination programs. Kay--cleaning and sanitizing products and services for restaurant and food industries. Professional--floor care, carpet care and personal care products for the commercial, industrial and health care markets.
New Products: Apex2 warewashing, Stealth Fly. Station, Exelerate ZTF cleaning solution, Mt cleaning formulations.
Comments: Through acquisitions and NPD, Ecolab continues to make good on its mantra "Circle the Customer." In December, the company completed its $8 billion acquisition of Nalco, a leading water treatment supplier. That move put Ecolab out in front on the water scarcity issue--something that will affect businesses, consumers and the planet itself. According to the World Bank, demand for fresh water will exceed supply by 50% by 2025. That move came as Ecolab was posting double-digit gains in 2012. Corporate sale rose 12% to $6.8 billion. Net income fell 13%.
Within the US cleaning and sanitizing business, sales rose 8% to $2.9 billion. Institutional, which accounted for 52% of sales, rose 4% due to a growing lodging market, partially offset by declining foodservice. Food and beverage sales increased 7%, driven by dairy and food market growth.
Kay sales increased 7% due to gains in the food retail business. Healthcare sales increased 28% thanks to the acquisition of O.R. Solutions. Without that acquisition, sales rose 4% in 2011.
International sales rose 11%, due primarily to improved exchange rates. Sales in Europe, Middle East and Africa accounted for 60% of sales; followed by Asia Pacific (22%), Latin America (10%) and Canada (8%).
The Nalco acquisition closed less than a year ago, but Ecolab is already reaping the rewards. For the first quarter of 2012, safes soared 85% to $2.8 billion. Net income declined 47% to $49.7 million, due to the Nalco inventory step-up, the early retirement of debt and other integration and restructuring charges.
First quarter 2012 sales for US Cleaning & Sanitizing operations rose 4% to $709 million. Institutional and Food and Beverage led the growth. US Cleaning & Sanitizing operating income increased 1.5% to $128 million compared with the year ago period; US Cleaning & Sanitizing operating income increased 11% when compared with first quarter 2011 pro forma operating income; excluding acquisitions, operating income increased 6%.
"The 'new' Ecolab is off to an excellent start. Our team did a great job successfully managing the business and simultaneously made great progress against our integration and synergy objectives, exceeding both. Most impressively, our team also delivered record new business gains," said Douglas M. Baker, chairman and chief executive officer. "As a result, our top line momentum remains very strong. Sales grew in every segment and in every region. Our new global energy business led the way with a truly standout quarter, and we also saw solid results in our global water, US institutional and worldwide food & beverage businesses. Regionally, both North America and Latin America strengthened compared with recent trends."
US Other Services sales increased 4% to $111 million in the first quarter. Operating income declined 6% to $14 million as continued improvement in the equipment care business profitability was offset by investments made in the EcoSure quality assurance field sales organization.
Sales for international cleaning, sanitizing and other services operations, when measured at fixed currency rates, grew 3% to $733 million in the first quarter. Sales increased 5% in fixed currencies when compared with first quarter 2011 pro forma fixed currency sales, led by strong growth in Latin America operations. International cleaning, sanitizing and other services fixed currency operating income increased 10% to $48 million in the first quarter when compared with a year ago; fixed currency operating income increased 12% when compared with first quarter 2011 pro forma fixed currency operating income. When measured at public currency rates, international cleaning, sanitizing and other services sales were $746 million and operating income was $49 million.
For the remainder of 2012, Baker contends the company has three objectives: build one Ecolab, accelerate growth and deliver synergies.
10. MARY KAY
Sales: $3 billion.
Key Personnel: David Holl, president and chief executive officer; Richard Rogers, executive chairman; Timothy Byrd, chief financial officer; Terry Cole, president, international supply chain management; Darrell Overcash, president, US and Canadian operations; Beth Lange, chief scientific officer; Sheryl Adkins-Green, chief marketing officer.
Major Products: Skin care, color, body care, sun care and fragrance marketed under the Mary Kay and TimeWise brand names.
New Products: Botanical Effects skin care; The Art of Nature color cosmetics collection; Mary Kay nail lacquer.
Comments: The company says sales rose 15% last year to top the $3 billion mark. Once again, Mary Kay was recognized by Brand Keys as a "brand that delights" because of the company's high level of customer engagement and satisfaction. Brand Keys' 2012 Customer Loyalty Index Survey examined customers' relationships with 598 brands across 83 categories. Mary Kay tied for first as the top brand in the cosmetics category and was listed as one of the top 20 brands overall in the "Brands That Delight" category. And, it was the only cosmetics brand to crack the top 20.
"Being recognized as a brand that delights by Brand Keys offers additional validation to Mary Kay's steadfast commitment to offering a great opportunity for women, exceptional customer service and products that are simply irresistible," said Sheryl Adkins-Green, Mary Kay Inc.'s chief marketing officer. "These three critical pillars influence all aspects of our business. We hope that anyone who interacts with the Mary Kay brand can say with confidence, I love Mary Kay."
The company has 2.4 million independent beauty consultants who operate in more than 35 countries around the world. To celebrate International Women's Day, March 8, 2012, thousands of "Mary Kay family members" helped their fellow neighbors by volunteering more than 197,010 hours of community service--or more than 22 years of service valued at more than $4 million.
11. LIMITED BRANDS
Sales: $2.9 billion (estimated) for home fragrance and personal care products. Corporate sales: $10.3 billion. Net income: $850 million for the year ended Jan. 28, 2012.
Key Personnel: Leslie H. Wexner, chairman and chief executive officer; Stuart Burgdoerfer, executive vice president and chief financial officer; Nicholas Coe, chief executive officer, Bath & Body Works; Charles C. McGuigan, chief operating officer; Jane L. Ramsey, executive vice president, human resources; Martyn R. Redgrave, executive vice president and chief administrative officer; Sharen Jester Turney, chief executive officer and president, Victoria's Secret.
Major Products: Bath & Body Works--Signature Collection, antibacterial and home fragrance product lines; Victoria's Secret--Secret Garden, Beauty Rush, Dream Angels, Incredible by Victoria's Secret, VS Attractions, Sexy Little Things, Very Sexy, Bombshell and Pink fragrances and VS Makeup.
New Products: Bath & Body Works--American Boardwalk candle collection, Malibu Heat body care; Victoria's Secret Beauty--Rush glossy lip tints.
Comments: Corporate sales rose 8% last year and comparable store sales increased 10%. Net income increased nearly 6%. Gross profit jumped 130 basis points to 39.1% of net sales. Victoria's Secret sales rose 11% and Bath & Body Works sales rose 6%. The company credited the increase in B&BW's sales to growth in the Signature Collection, home fragrance and antibacterial categories, partially offset by a decline in gift set business.
Last year, the number of company-owned retail stores (Victoria's Secret, Bath & Body Works, La Senza, Henri Bendel) totaled 2,941, a decline of 27 units from the previous year. During the year, the company opened 40 stores and closed 67 stores in North America. Elsewhere, The Limited and its partners opened 40 more Victoria's Secret Beauty and Accessories stores bringing the total to 57 with plans to acid 75 more stores in 2012. Twelve B&BW stores were opened in the Middle East last year, bringing the total tol.8. The Limited's partners plan to open 32 more stores this year.
At the 2012 Fragrance Foundation FiFi Awards, Victoria's Secret Beauty's Angel scent won two awards: Broad Appeal Women and Consumer's Choice. Meanwhile, B&RW took home the Consumer's Choice award in the men's category for Bath 6z Body Works Signature Collection for Men Classic.
According to a recent Piper Jaffray consumer poll, Victoria's Secret remains the preferred fragrance for upper-income and average-income teens ft marks the ninth time in a row that Victoria's Secret has topped the Piper Jaffray survey. According to the study, beauty spending by upper-income teens increased 8% sequentially and 6% year-over-year. For average-income teens, beauty spending increased 21% sequentially and 18% year-over-year.
Nicholas Coe was elected president and CEO of Bath & Body Works in August 2011.
Sales: $2.5 billion for household, personal care and I&I products. Corporate sales: $5.2 billion. Net income: for the year ended June 30, 2011.
Key Personnel: Donald R. Knauss, chairman and chief executive officer; Lawrence S. Peiros, executive vice president and chief operating officer; Frank A. Tataseo, executive vice president, strategy and growth, partnerships and Clorox Professional Products and information technology; Thomas B. Britanik, senior vice president, chief marketing officer; Wayne L. Delker, senior vice president, chief innovation officer; Benno Dorer, senior vice president, cleaning division and Canada; James Foster, senior vice president, chief product supply officer; Jaqueline P. Kane, senior vice president, human resources and corporate affairs; Grant J. LaMontagne, senior vice president, chief customer officer; Stephen M. Robb, senior vice president, chief financial officer; George C. Roeth, senior vice president, general manager, specialty, division; Laura Stein, senior vice president, general counsel.
Major Products: Cleaning--Clorox disinfecting wipes, Pine-Sol dilutable cleaners., Clorox Clean-Up cleaner and Clorox bathroom cleaners; Personal Care--Burt's Bees natural personal care products.
New Products: Burt's Bees Gud body care products, Burt's Bees personal care wipes, Liquid-Plumr Double Impact 2-in-1 Clog Clearer, Clorox Commercial Solutions Clorox Professional Cleaners & Degreasers, Clorox Healthcare Hydrogen Peroxide Cleaner Disinfectant Wipes and Spray, Clorox Commercial Solutions Clorox Broad Spectrum Quaternary Disinfectant Cleaner.
Comments: After a difficult 2011, Clorox is back on the beam. The company expects sales to rise 4% in fiscal 2012, versus the previous outlook of 2-4%.
The company credits the upward revision to improvement in the US, strong gains behind innovation, price increases and retailer merchandising. In fact, fiscal Q3 volume rose 4% and sales grew 7%. During the quarter, cleaning volume rose 7% and sales were up 10%. Volume was up due to higher shipments of Clorox disinfecting wipes and Clorox bathroom cleaners. The natural personal care business also had solid volume growth behind the new Gud personal care line. Finally international sales rose 4% on a 1% increase in volume. Leading the way was Latin America, which reported strong volume gains due to higher shipments of home care products in Argentina, Mexico and Peru.
In January, Clorox acquired Aplicare, Inc. and HealthLink, providers of infection control products for the health care industry. The moves were called important steps in the company's effort to increase exposure to faster-growing categories as part of an ongoing portfolio transformation. The acquisitions complement and expand the breadth and depth of the health care portfolio of the company's Away From Home business.
In fiscal 2011, corporate sales were flat and net income declined 7%. Price increases were offset by unfavorable product mix and the impact of Walmart pickup allowances. Clorox sales were driven by the international business, as well higher sales of Pine-Sol cleaner and Burt's Bees personal care products.
More specifically, cleaning sales dipped less than 1% to about $1.6 billion. In addition to Pine-Sol gains, Clorox CleanUp Cleaner with Bleach, Clorox disinfecting bathroom cleaners and Clorox Disinfecting Wipes also provided a sales lift. These increases were partially offset by lower shipments of laundry additives due to category softness; and lower shipments of Tilex mold and mildew remover.
To focus on its strategic businesses, the company sold its auto care unit and cut $100 million in costs. Clorox has recorded $100 million or more in savings every fiscal year since 2003. At the same time, Clorox rolled out 15 new products and/or packaging sustainability improvements and impacted a cumulative 16% the portfolio in 18 months, which is ahead of its goal of 25% by 7013.
Looking ahead, Clorox expects fiscal 2013 sales to rise 2-4% due to continued market share and category momentum. In 2013, Clorox will celebrate its 100th anniversary.
Now part of Sealed Air
Sales: $2.5 billion (estimated) for I&I products. Corporate sales: $8.1. billion.
Key Personnel: William V. Hickey, president and chief executive officer; Pedro Chidichimo, president, institutional and laundry; Warren Kudman, chief information officer; Jean-Marie Demeautis, vice president, marketing; Yagmu Sagnak, president, emerging markets
Major Products: Cleaning and hygiene solutions and services that are used in commercial, institutional and industrial facilities. The company operates in six categories: food service, food processing, floor care, restroom/other housekeeping, laundry and industrial. Brands include Complete, ShowPlace, SnapBack, Virex, Alpha HP, G-Force, Crew, Soft Care, Good Sense, Endbac, Sig, nature, J-Fill, Taski, Jonmaster, Suma, DuBois, Dify and Divermite. In addition, the company owns other well-known brands such as Butcher's, Johnson Wax Professional, U.S. Chemical, Drackett Professional and PurEco Certified Green Products (Europe), as well as the Greenguard-certified Healthy High Performance Cleaning program (includes products, tools and procedures).
New Products: Proteus Activator washing system, Diy Foam Carpet Care System, Taski by Diversey Swingo XP, SmartDose.
Comments: Sealed Air Corp., Elmwood Park, NJ, entered the industrial and institutional cleaning category with its $4.3 billion acquisition of Diversey, which closed in October 2011.
Sealed Air cleared the air immediately, by putting its own people in the top spots and reorganizing the corporation i.nto three groups:
* Food & Beverage--Combines legacy food packaging and food solutions businesses with Diversey's food and beverage applications;
* Institutional & Laundry--Represents the legacy Diversey business serving institutional and industrial end-users such as food service providers, lodging establishments, building service contractors, building managers and property owners, retail outlets, schools and health care facilities.
* Protective Packaging--Combines legacy protective packaging, shrink packaging and specialty materials businesses.
There is also an "other" category, which includes Sealed Air's legacy medical applications business and new ventures.
For the fourth quarter of 2011, the first quarter that Sealed Air competed in the WI space, Diversey's sales were nearly $796 million. For the first quarter of 2012, sales fell 2% to $751 million.
"Diversey segment sales were less than planned in the quarter due to ongoing weakness in Europe and the timing of specific customer orders in North America. We expect to see a more nor malized order pattern in North America in that segment through the balance of the year," said William V. Hickey, president and chief executive officer. "While we remain cautious about any European economic improvement, we are encouraged by high single-digit percent sales growth in developing regions and strong customer reception of our solutions resulting from our growth programs. We have built a strong foundation for growth across all of our businesses when Europe does recover."
14.CHURCH & DWIGHT
Sales: $2.2 billion for household, personal care and oral care products. Corporate sales: $2.7 billion. Net income: $310 million.
Key Personnel: James R. Craigie, chairman and chief executive officer; Jacquelin J. Brova, executive vice president, human resources; Mark C. Conish, executive vice president, global operations; Steven P. Cugine, executive vice president, global new products innovation; Patrick de Maynadier, executive vice president, general counsel and secretary; Matthew T. Farrell, executive vice president and chief financial officer; Bruce F. Fleming, executive vice president and chief marketing officer; Adrian J. Huns, executive vice president, president, international consumer products; Paul A. Siracusa, Ph.D., executive vice president, global research and development; Louis H.Tursi Jr., executive vice president, domestic consumer sales.
Major Products: Household--Arm & Hammer Baking Soda, Arm & Hammer Fridge Fresh, Arm & Hammer Clumping Litter, Arm & Hammer Clean Shower, Arm & Hammer Scrub Free, Orange Glo Wood cleaners, Kaboom Scrub Free! Continuous Toilet Cleaning System, Ka boom Ultra Scrub, Kaboom Shower, Tub & Tile Cleaner, Arm & Hammer liquid laundry detergent, powder laundry detergents, Fresh 'n Soft fabric softener sheets and liquid fabric softener, Arm & Hammer Essentials liquid laundry detergent and fabric softener sheets, Arm & Hammer Wet Dryer clothes, Arm & Hammer with OxiClean detergent, OxiClean laundry stain remover, OxiClean versatile stain remover, OxiClean baby stain soaker, OxiClean baby stain remover, OxiClean Max Force laundry stain remover, Xtra liquid laundry detergent; Parson's Ammonia, Cameo. Personal Care--Arm & Hammer toothpaste, Arm & Hammer Spinbrush, Pepsodent, Aim, Close Up, Pearl Drops, Rigident, Arrid, Arm & Hammer Ultramax, Lady's Choice deodorants, Nair, Orajel.
New Products: Arm & Hammer Spin Brush Pro Sensitive tooth-brush, Arm & Hammer Advance White toothpaste. Acquisition--Batiste dry shampoo.
Comments: Corporate sales rose 6% and net income was up 1.4%. Consumer domestic sales rose nearly 5% last year, driven by sales of Arm & Hammer liquid and powder laundry detergent and Xtra liquid laundry detergent. But the gains were tempered by lower sales of Oxiclean laundry additive and Arm & Hammer Dental Care and other toothpaste products.
A year ago, Church & Dwight acquired Batiste dry shampoo from Vivalis, Ltd. for $64.8 million. Batiste's annual sales were $20 million. That purchase helped push international sales up 14.7%. Gains were led by Canada, Australia and Mexico.
For the first quarter of 2012, Church & Dwight's sales increased 7.5% to $690.6 million. Organic sales increased 8.4% driven by 10.5% volume growth offset by 2.1% unfavorable product mix and pricing. Net income jumped 1.4% to $95.8 million.
"We had an excellent first quarter and are off to a great start," said James R. Craigie at a Goldman Sachs Consumer Products Symposium in May. "The environment is tough, with weak consumer spending, high commodity pricing and retailers struggling."
That makes it tough for Church & Dwight and every consumer products company to improve gross margin. Despite the difficult times, Craigie expects 2012 sales to rise 3-4% and to get gross margin growing again. That's because C&D has several advantages over its competitors.
For starters, the company has a roster of recession-resistant brands. In fact, 40% of the company's product portfolio is value-based. Consumers who traded down during the recession have no interest in trading back up.
"They learned that the value products have quality," Craigie insisted. "In our study, 75-80% of people who traded down are not going back. They don't need to. They don't perceive a difference."
Another C&D advantage is its people. Unlike many multinationals, Craigie doesn't move executives around. His team remains focused on the task at hand and can draw from years of experience in certain categories. In time, it becomes easier for them to do their jobs and that enables these executives to assume greater responsibilities without having to add payroll.
"They know their business and the know when a competitor makes a mistake."
Along those lines, Craigie noted that of C&D's 80 brands, eight of them are power brands and of those, seven were acquired during the past 10 years.
"We love acquisitions and are very good at it," he insisted. "It's a key part of our growth."
15. SUN PRODUCTS
Sales: $2 billion.
Key Personnel: Jeffrey P. Ansell, chairman, president and chief executive officer; Al Drewes, executive vice president and chief financial officer; Perry Beadon, senior vice president, customer development; Gretchen Crist, senior vice president, human resources and communication; Blair Hawley, senior vice president, logistics and distribution; Beth Hecht, senior vice president, general counsel and secretary; Jeffery Strong, executive vice president, retailer brands and Canada; Mitch Tinnan, senior vice president, product supply; Ed Vlacich, executive vice president, national brands.
Major Products: Fabric and dish care products including All, Wisk, Snuggle, Sunlight and Sun brands. Also, a small number of personal care brands sold under the White Rain label.
New Products: All Mighty Pacs.
Comments: Nearly every player in the household product category has felt the effects of the price wars that erupted in the category, but few companies have been hurt as much as Sun Products, which derives a large portion of its sales from the detergent category. Last month Standard & Poor's cut Sun Products rating to "B," stating that the company will maintain a "vulnerable" business risk profile and a "highly leveraged" financial risk profile. Sun Products also generated negative cash flow in 2011, which Standard & Poor's attributed to a deterioration of the company's operating performance (mainly from a more competitive environment in the detergent and household cleaning products segment) and the higher inventory levels that resulted, as well as to IT system conversion issues.
Still, Sun remains the No. 2 player in the US laundry category behind P&G. Sun entered the single dose laundry category in March with the introduction of All Mighty pacs, which are available in two variants, original and free clear. The pacs are available in sizes ranging from 10-count trial size to a 72-count package.
In January, Sun Products named Jeffrey Ansell, currently president and CEO, chairman of the board, succeeding Neil P. DeFeo who stepped down as chairman but remains on the board as a non-executive director. And in April, Sun hired Ed Vlacich as executive vice president, National Brands. Prior to joining the company, Vlacich was with Novartis where he spent more than seven years in senior leadership roles, most recently serving as global chief marketing officer for Ciba Vision.
New York, NY
Sales: $1.3 billion. Net income: $53 million.
Key Personnel: David L. Kennedy vice chairman; Alan T. Ennis, president and chief executive officer; Chris Eishaw, executive vice president and chief operating officer; Steven Berns, executive vice president and chief financial officer; Xavier Garijo, executive vice president, chief supply chain officer; Lauren Goldberg, executive vice president and general counsel; Julia Goldin, executive vice president, global chief marketing officer; Robert K. Kretzman, executive vice president and chief administrative officer; Alan Meyers, executive vice president and chief science officer; Manuel Blanco, senior vice president and managing director, Latin America; John Collier, senior vice president and general manager, US; Elise A. Garafalo, senior vice president, treasurer and investor relations; Gina Mastantuono, senior vice president, chief accounting officer, corporate controller and international finance; Mark M. Sexton, senior vice president, taxes; Michael T. Sheehan, senior vice president, deputy general counsel and secretary; David Teasdale, senior vice president and managing director, Asia Pacific; Mark Wood, senior vice president and managing director, Europe, Middle East and Africa; Simon Worraker, senior vice president and general manager, Canada.
Major Products: Cosmetics, women's hair color, beauty tools, fragrances, skin care, antiperspirants/deodorants and personal care products marketed under such names at Revlon, Almay, ColorSilk, Mitchum, Charlie, Gatineau and Ultima II.
New Products: Revlon--Colorstay Whipped makeup, Smoky shadow stick and Overtime Lengthening mascara, Just Bitten lipstain, Escapism color collection, Root Erase by Colorsilk hair color; Almay--Intense I-Color shadow stick, Smart Shade Perfect and Correct primer, Aimay Clear Complexion; Sinful Colors (acquisition).
Comments: Sales rose 4.5% last year, but net income plunged more than 80%. The company credited the sales increase to the acquisition of Sinful Colors as well as higher net sales of Revlon and Almay color cosmetics and Revlon ColorSilk hair color. These increases were partially offset by lower net sales of Revlon beauty tools and lower net sales in Venezuela due to a June 2011 fire at the company's local facility.
Taking a look at results by region, In the US, sales rose 3.9% to more than $757.4 million. The increase was primarily driven by the inclusion of the net sales of Sinful Colors and higher net sales of Almay color cosmetics and Revlon ColorSilk hair color. These increases were partially offset by lower net sales of Revlon beauty tools and Revlon color cosmetics.
In Asia Pacific, sales rose 11.2% to $233.4 million on favorable currency rates and higher sales of Revlon color cosmetics in China and certain distributor markets, partially offset by lower net sales of Revlon color cosmetics in Japan and Australia.
Sales in Europe, Middle East and Africa rose 4.1% to $208.7 million on foreign currency fluctuations along with higher sales of Revlon color cosmetics in South Africa and certain distributor markets, partially offset by lower net sales in Italy.
Latin American sales were flat at $107.2 million, as a 4.3% gain in sales was offset by currency fluctuation. Higher sales of Revlon color cosmetics were recorded throughout the region, with Argentina reporting particularly good results. These increases were partially offset by lower net sales in Venezuela where Revlon had not fully resumed business since the June 2011 fire.
In Canada, sales were flat at $74.7 million. Excluding the favorable impact of foreign currency fluctuations, sales fell 3.1%, primarily due to lower net sales of Almay color cosmetics.
First quarter 2012 sales slipped 1% to about $331 million, due to unfavorable currency fluctuations. Net income declined 18% to $8.5 million. The company said higher sales of Revlon color cosmetics and ColorSilk hair color, and the inclusion of SinfulColors sales for a full quarter were offset by lower sales of Almay color cosmetics and fragrances, as well as lower sales in Venezuela.
17. Elizabeth Arden.
Sales: $1.1 billion. Net income: $40 million for the year ended June 30, 2011.
Key Personnel: E. Scott Beattie, chairman, president and chief executive officer; Joel B. Ronkin, executive vice president and general manager, North America; Dirk Trappmann, executive vice president and general manager, international; Kathy Widmer, executive vice president and chief marketing officer; Stephen J. Smith, executive vice president and chief financial officer; Pierre Pirard, executive vice president, product innovation and global supply chain; Oscar E. Marina, executive vice president, general counsel and secretary; L. Hoy Heise, executive vice president and chief information officer.
Major Products: Elizabeth Arden skin care, color and fragrance products; Prevage skin care; Fragrances--Britney Spears, Elizabeth Taylor, Mariah Carey, Taylor Swift, and Usher; the designer fragrance brands of Juicy Couture, Alberta Ferretti, Alfred Sung, Bob Mackie, Geoffrey Beene, Ralston, John Varvatos, Kate Spade, Lucky Brand, and Rocawear; and the lifestyle fragrance brands Curve, Giorgio Beverly Hills, and PS Fine Cologne.
New Products: Justin Bieber, Nicki Minaj, Ed Hardy, True Religion and BCBG Max Azria fragrances (licenses).
Comments: Bieber Fever? Elizabeth Arden's got it, as well as a thing for Nicki Minaj. Last month, the company acquired the fragrance licenses for both recording stars for an undisclosed amount. What also wasn't disclosed is how profits from sales of Bieber fragrances will be distributed. Give Back Brands, the company that held the Bieber license, was a non-profit organization that distributed its profits. Clearly, Elizabeth Arden acquired the Bieber license to make a buck or three.
Someday; the first fragrance from Bieber, debuted in Spring 2011 and became the No. 1 women's fragrance launch of 2011 in US department stores, according to NPD Group, Port Washington, NY. The second fragrance, Justin Bieber's Girlfriend, is currently launching in LS department stores. Nicki Minaj, an R&B/hip hop artist, will launch her first scent in US department stores this fall.
The Bieber and Minaj license acquisitions came one month after Elizabeth Arden acquired the licensing rights to Ed Hardy, True Religion and BCBG Max Azria For the nine months ended March 31, 2012, Elizabeth Arden's sales rose 5.5% to $972.7 million and net income jumped 51% to $35.5 million. According to E. Scott Beattie, the company's results were in line with expectations. In the coming months, Elizabeth Arden will roll out new packages and product formulations as part of its brand repositioning.
"We continue to make considerable progress toward this initiative, which we believe will be transformational for our company" explained Beattie. "We are on schedule to accomplish the rapid conversion of approximately 50 flagship customer doors by the end of September 201.2, with a broader group of our customer doors to follow"
For fiscal 2011, sales rose 6.5% and net income more than doubled. North American sales increased by 5%, according to the firm. International sales rose 9% on the strength of European and travel retail and distributor businesses. Global sales of Elizabeth Arden branded products increased by 8%, reflecting the company's success at growing the Elizabeth Arden brand and the realignment of its marketing organization to better support global brand management, according to Beattie.
Palm Desert, CA
Sales: $1.1 billion (estimated) for personal care products. Corporate sales: $1.5 billion.
Key Personnel: Bill Guthy and Greg Renker, co-founders and co-chairmen; Kevin Knee., vice chairman an.d chief financial officer; Ben Van de Bunt, chief executive officer; Lenny Lieberman, chief creative officer.
Major Products: Cosmetics and personal care brands including Proactiv, Principal Secret, Youthful Essence, Sheer Cover, Meaningful Beauty, Natural Advantage, In An Instant, Wen by Chaz Dean, Scalp Med, Dr. Evans Cosmeceuticals.
New Products: X-Out acne treatment, Wen Summer Mango Coconut Cleansing Treatment lb be launched: Supersmile oral care products.
Comments: Privately-held Guthy-Renker is the leader in direct response television. The company markets a wide array of personal care products, led by Proactiv, the skin care line for teens, which is said to have annual sales in the neighborhood of $800 million.
Last year, G-R rolled (nit X-Out, a new concept in fighting acne from Katie Rodan and Kathy Fields, the same duo behind Proactiv. X-Out is billed as a one-step acne treatment that "gets sucked deep into pores and stays behind to help kill breakout-causing bacteria on contact," according to the company.
What's the secret behind X-Out? Why, it's just good old benzoyl peroxide (8.5%), along with sodium cocoyl isethionate, polyethylene beeds, linoleic and linolenic acid, glycerin and menthol. Although there's nothing new about benzoyl peroxide, the X-Out bottle features a QR code. When teens scan it, they can watch a new 2-minute video every day while they wash their faces with X-Out.
Also last year, G-R signed celebrity dentist Dr. Irwin Smigel to create an infomercial for Supersmile teeth whitening prod-ucts. But unlike other G-R brands such as Proactiv and Meaningful Beauty, Guthy-Renker does not own Smigel's oral care line.
In May, Greg Renker received the Horatio Alger Award, which honors the achievements of outstanding Americans who have succeeded in spite of adversity and to emphasize the importance of higher education.
19. NU SKIN ENTERPRISES
Sales: $964 million for personal care products. Corporate sales: $1.7 billion. Net income: $153 million.
Key Personnel: Tniman Hunt, president and chief executive officer; Joseph Y. Chang, chief scientific officer and executive vice president, product development; Daniel R. Chard, president, global sales and operations; Scott E. Schwerdt, president, Nu Skin Americas; Ritch N. Wood, chief financial officer.
Major Products: AgeLOC Edition Galvanic Spa System II with ageLOC Facial Treatment Gels; ageLOC Transformation daily skin care system, which includes ageLOC Future Serum, ageLOC, Gentle Cleanse & Tone, ageLOC Radiant Day SPF 22 and ageLOC Transforming Night; Tru Face Essence Ultra; Tru Face Line Corrector; 180[degrees] Anti-Aging Skin Therapy System; Clear Action Acne Medication System, Nutricentials; Celltrex.
New Products: AgeLOC R2 anti-aging nutritional supplement system, ageLOC Galvanic Body Spa, ageLOC Galvanic Spa Body Shaping Gel, ageLOC Dermatic Effects Body Contouring Lotion.
Comments: Corporate sales rose 13% last year--nearly half of it was credited to positive currency fluctuation. Net income increased nearly 13% too. By region, North Asia accounted for 43% of sales, followed by Greater China (20%), Americas (14%), South Asia/Pacific (14%) and Europe (9%). Approximately 88% of 2011 revenue came from markets outside the US. Sales of Nu Skin products accounted for 55% of corporate sales.
Nu Skin credited the sales gains to the success of its ageLOC anti-aging products, healthy distributor sponsoring and retention and continued growth in emerging markets, including China, South Asia and South Korea. For example, sales in Korea jumped 30% to nearly $280 million and sales in China soared 67% to more than $152 million. Still, Japan remains Nu Skin's biggest market, accounting for 27% of sales last year.
Global personal care sales rose more than 5% japan accounted for nearly 50% of sales, followed by South Korea, the US and China. New products continue to bolster sales. Nu Skin sold a $100 million worth of ageLOC R2 and Body Galvanic Spa when they were launched during the 2011 Global Convention.
To remain up-to-date on anti-aging issues, Nu Skin acquired LifeGen Technologies for an undisclosed amount. LifeGen has genetic database that is based on more than 30 years of antiaging genetic research.
As of Dec. 31, 2011, Nu Skin had a global network of more than 850,000 active independent distributors.
The company reported record results for the first quarter of 2012, as sales rose 17% to $462 million.
"Following a record year, we continued to generate great momentum in the first quarter as a result of the positive response to our ageLOC product launches and healthy trends in each of our regions," said Truman Hunt, president and chief executive officer. "New product roll outs helped boost revenue trends in the Americas, North Asia and Europe, as reflected by strong executive distributor growth of 11%."
Emerging markets also performed well in the first quarter. The Greater China region posted a 35% increase. And in May, Nu Skin announced that it has experienced a record-setting response to its ageLoc launches in the Greater China and South Asia regions. The regions are the latest geographies to initiate orders of the company's ageLoc R2 and ageLoc Galvanic Body Spa and its related skin care products.
"On the heels of a record first quarter, we are pleased to report today that the Greater China and South Asia regions have received approximately $150 million of orders for our new ageLoc Products," said Flunt." The products will be delivered in connection with upcoming regional events taking place in the second and third quarters. These latest, record-breaking introductions are not only a testament to the strength of our exclusive, superclass of ageLoc products., but further demonstration of the high-caliber and talented sales leaders we have in these regions, as well as throughout the world."
Sales: $888 million. Net income: $16 million.
Key Personnel: Robert B. Goergen, chairman and chief executive officer; Robert H. Barhaus, vice president and chief financial officer; Robert B. Goergen Jr., president, direct selling group, Blyth and president, PartyLite Worldwide; Jane F. Casey; vice president, treasurer; Joseph T. Cirillo, vice president, reporting and planning; Tiler P Schuessler, vice president, organizational development and investor relations.
Major Products: Home fragrance--PartyLite, Easy Comforts, Colonial Candle, Sterna Personal care--As We Change, Easy Comforts, ViSalus Sciences, Walter Drake.
Comments: Last year, Myth changed its annual reporting period from Janualy 31 to Dec. 31, so these results reflect an 11-month period. Net sales increased approximately 20%., due to increases within the direct selling (78% of sales) and wholesale segments.
Direct sales rose 26% to $690 million due to greater demand for ViSalus and a jump from 8000 promoters to 59,000. PartyLite's net sales fell nearly 10% to $462 million due to a 22% drop in the US business. The decline was blamed on an 11% decline in the number of PartyLite's active US representatives. PartyLite's European sales fell 4% due to lower sales in Germany, France and the UK. The number of Europea.n sales consultants, fell 4%. PartyLite Europe represented approximately 61% of PartyLite's worldwide net sales.
Net sales in the catalog and internet segment (15% of sales) 1% to about $1.37 million, while net sales in the wholesale segment (7% of sales), increased 14% to nearly $61. million. That gain was attributed to Sterno price increases.
For the first quarter ended March 31, 2012, sales soared more than 50% to $283 million and the company reported net income of $11 million, compared to a loss of $833,000 the previous year. The direct sales unit reported an 82% increase in sales to $236 million. Sales within the catalog and Internet unit fell 9% to nearly $34 million.
In May, Blyth announce.d a two-for-one stock split, which in creased its total shares outstanding to 17.2 million. Blyth shares rose from the mid-30s in 2011 to a high of $90 before dropping to $70 a share at press time.
21. YANKEE CANDLE
Sales: $785 million. Net income: $54 million.
Key Personnel: Harlan M. Kent, president and chief executive officer; Lisa M. McCarthy, senior vice president, finance and chief financial officer; John Fontana, president, international; M.artha S. LaCroix, executive vie president, chief human resources officer; Hope Margala Klein, senior vice president, brand, design and innovation; James A. Perley Jr., executive vice president, chief administrative officer; Arthur F. Rubeck, senior vice president, supply chain.
Major Products: Yankee Candle fragrance brands--Housewarmer, Horne Classics, Simply Home and Aroma Therapy Spa which all include an assortment of candles, home fragrance and small space solutions; Yankee Candle needs-based brands--Good Air and Conceal; candle accessories; candle care products.
New Products: Man Candles; Summer Love Collection, Water Inspirations Collection, Citrus Passion Collection, Fall Fragrances including Apple Pumpkin, Seasons Blessings, Treehouse Memories, Whoopie Pie, Caramel Pecan Pie, Harvest Welcome.
Comments: Sales rose about 7% last year, while net income jumped 30%. By segment, retail sales increased 5.4% more than $449 million, wholesale sales increased 1.2% to more than $235 million and international sales jumped more than 35% to more than $101. million.
Retail sales were driven primarily by sales in new stores, as well as increased sales in Yankee's Consumer Direct division and an increase in sales in the Fundraising division. However, comparable store sales in the 512 Yankee Candle retail stores that have been open for more than one year remained flat, while compa-able sales in the Consumer Direct business increased 20.8%. Wholesale sales increased 1.2% due to gains in premium mass and department store channels, partially offset by decreased sales in the domestic gift store channel.
International sales rose on strength in the UK wholesale business and Yankee's "store within a store" concession channel.
For 2012, Q1 sales rose 7.6% to about $155 million. Retail sales increased 8.3% to $81 million, wholesale sales increased 5.7% to just over $50 million and international sales increased
MR.KENT GOES 'UNDERCOVER'
* No, he's not Superman, but when Yankee Candle CEO Harlan Kent went on CBS' "Undercover Boss" he learned an awful lot about his company and himself. The television program follows a company president or CEO as he interacts incognito with employees from a variety of departments within the company.
For his part, Kent (earned that he has "incredibly passionate employees mat care deeply about what they do--they are me very heart of who we are and why folks love Yankee Candle,"
During his time undercover, Kent worked in a variety of positions, including at the company's flagship store in South Deertield, MA and other locations across the country. Working side by side with retail employees and experiencing their daily responsibilities allowed Kent to observe the company from a different perspective and connect with employees from the position of a peer. It showcased the passion Kent had hoped to find arid highlighted opportunities for the organization.
"I've always had such respect and appreciation For our employees and it's been important to me they feel they are treated well by our organization--that we are looking out for them," said Kent. "Of course, there's always room For improvement. While we strive to make even better products and give more value to shoppers, it can only happen thanks to our passionate talent and our focus on developing our employees."
Kent's appearance isn't the first time that a honcho from the household and personal products industry appeared on "Undercover Boss." The show's inaugural season featured Dan Brestle of Estee Lauder. 9.3% to nearly $24 million. During the quarter, Yankee Candle reported a net loss of $3.5 million, but that was down substantially from the $5.3 million in losses reported in Q1 2011.
New Store Openings Provide a Lift in First Quarter
"We saw solid revenue growth in the first quarter in all of our businesses," said Kent. "Sales in our consumer direct and fundraising businesses were particularly strong year over year, and our wholesale and international businesses had solid growth as well. Our adjusted EBITDA was down slightly to the prior year quarter, bitt consistent with our internal plans. The year-over-year variance was driven primarily by shifts in the mix of business within our business segments."
Retail sales gains in the quarter were driven primarily by sales from Yankee Candle retail stores opened after the first quarter of 2011, increased sales in the consumer direct business, and increased sales from the Yankee Candle fundraising division. Total retail comparable sales, including the consumer direct business, increased by 1.8% compared to the prior year first quarter. Comparable store sales in the 5O9Yankee Candle retail stores fell 1.2% due to a 6.1% decline in store traffic.
Gains in wholesale were driven by increased sales to the specialty and department store channel coupled with increased sales to various accounts outside the gift and premium mass channels.
International sales were driven primarily by increased sales in Yankee's retail concession business, increased sales in its European wholesale business outside of the United Kingdom, and increased sales to international distributors primarily in Asia and Latin America, the company said.
A Men's Market
In an effort to reach guys--many of whom can go their entire lives without making a scented candle purchase--Yankee recently roiled out scents with names like Riding Mower (the scent of freshly cut grass), 2 X 4 (freshly planed wood and sawdust), First Down (a combination of orange, patchouli, vetiver and leather notes) and Man Town (a masculine blend of spices, woods and musk), The collection, available for a limited time, debuted just before Father's Day and was an instant hit. In fact Man Town quickly became the No. 1 SKU among Yankee Candle's 4000 items.
According to Yankee, men make up 35% of the users in the scented candle market. "We were excited to bring this line of candles specifically positioned for men to market and the level of response has been astounding," said Kent. "In the first few days we have seen a 167% increase in unique visitors to our website over the comparable year ago time period and new visitors increased 222%. Our Facebook engagement is up 118% and daily total reach up 115% vs the comparable time period the previous week."
Sales: $676 million for cosmetics. Corporate sales: $2.6 billion. Net income: $218 million.
Key Personnel: Rick Goings, chairman and chief executive officer; Anna Braungardt, senior vice president, worldwide human resources; Edward R. Davis III, vice president and treasurer; R. Glenn Drake, group president, Europe, Africa and the Middle East; Lillian D. Garcia, executive vice president, and president Fuller Argentina; Josef Hajek, senior vice president, tax and government affairs; Simon C. Hemus, president and chief operating officer; Timothy Kulhanek, vice president, internal audit and enterprise risk management; Pablo Munoz, group president, Latin America; Michael Poteshman, executive vice president and chief financial officer; Nick Pouches; vice president and controller; Thomas M. Roehik, executive vice president, chief legal officer and secretary; Christian E. SkrOder, group president, Asia Pacific; Jose R. Timmerman, executive vice president, supply chain, worldwide; Robert F. Wagner, vice president and chief technology officer; William J. Wright, senior vice president, global product marketing.
Major Products: Beauty and personal care products including Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, Swissgarde.
Comments: Corporate sales rose 12% while net income declined 3%. Sales of beauty products accounted for 26% of revenue last year, but in some regions, beauty is everything. In 2005, Tupperware acquired six beauty brands at a cost of $557 million. In 2011, half of Tupperware's $711 million in sales in Latin America came from the beauty products category. But that percentage can vary by country. For example, in Uruguay, beauty care represents 70% of sales. In fact, Latin America is the only region in the world where Tupperware stresses beauty first and traditional Tupperware containers second.
That's music to chairman Rick Goings'ears. After all, he spent seven years at Avon before joining Tupperware in 1992.
In April, Tupperware signed RF Binder Partners as its global PR agency to work on corporate and investor relations efforts, social responsibility initiatives, consumer engagement and media outreach. RF Binder will also raise awareness of Tupperware's Chain of Confidence initiative, a global movement that focuses on the importance of women's self-confidence and their relationships with other women.
Tupperware also launched a "Global Links" program with the help of the Secretary of State's Office and Rollins College, in which it invited an Iraqi professor, Arnel Abed Mohammed Ali, to live in Florida for one year and study business. Ali will then share what she learns with other women when she returns to Iraq.
Sales: $646 million. Net income: $17.4 million for the year ended Aug. 31, 2011.
Key Personnel: John K. Morgan, chairman, president and chief executive officer; Mark R. Bachmann, executive vice president and chief financial officer; Robert P. Collins, vice president and chief administrative officer; Jeffrey L. Fleck, vice president and chief supply chain officer.
Major Products: I&I cleaners. Brands include Zep, Zep Commercial, Zep Professional, Enforcer, National Chemical and Selig; Misty, i-Chem, Next Dimension (acquisition), TimeMist, TimeWick, MicrobeMax, CountryVet, Niagara National.
Comments: Through a combination of acquisitions and improved customer mix, Zep's sales rose more than 13% last year and net income was up more than 20%. The US accounted for 79% of sales, followed by Canada (12%) and Europe (9%).
During fiscal 2011, Zep completed the integration of the Am rep, Waterbury, and Niagara acquisitions. Without them, Zep's sales actually declined about $23 million last year. The company noted that many of its customers are small business owners who have struggled during the prolonged economic downturn.
Those acquisitions have helped the company transform its sales channels to mirror the market. For example, back in 2007, 86% of corporate sales were direct, 13% came from retailers and just 1% was from distributors. By the end of fiscal 2011, the percentages had changed to direct (62%), distributors (22%) and retailers (16%). For comparison sake, the US cleaning maintenance chemicals market breaks out like this: direct (21%), distributors (44%) and retailer (35%). Zep's retail business just keeps expanding. In January, the company announced that 50 Zep products will be sold in Lowe's. Home Depot, however, remains Zep's biggest retail customer.
Zep continues to expand internationally as well. Last month, it completed the acquisition of Mykal Industries Limited (UK) for an undisclosed price. Mykal is a leading manufacturer of a broad range of branded and private label cleaning and degreasing products for the European retail, do-it-yourself and professional distribution markets. The products and services offered by Mykal include De.Solv. It, a top-selling brand of stain removers in the UK as well as the Mykal branded portfolio of natural solvents and biodegradable cleaners used in engineering and manufacturing applications. Mykal sells its De.Solv. It, Mykal branded and private label products directly to major industrial companies and through some of the UK's leading retail, DIY and trade-oriented stores and catalogues.
And in January, the company acquired Hale Group Limited of the UK. Zep has had a presence in Europe since 1992, but with this acquisition, the company is expanding its reach to a broad range of industrial, commercial and public sector customers in both the UK and additional export markets.
For the six months ended Feb. 29, sales rose less than 1% to about $305 million, but net income declined nearly 15% to $6 million.
Finally, Zep expects to implement SAP to give its team better visibility into real-time information.
24. INTER PARFUMS
New York, NY
Sales: $615 million. Net income: $32 million.
Key Personnel: Jean Madar, chairman and chief executive officer; Philippe Benacin, vice chairman; Russell Greenberg, chief financial officer; Andy Clarke, president, specialty retail; Michel Bes, vice president, retail sales.
Major Products: Prestige--Boucheron, Burberry, Jimmy Chao, Lanvin, Mont Blanc, Nickel, Paul Smith ST Dupont, Van Cleef & Arpels; Specialty retail--Banana Republic, Bebe, Betsey Johnson, Brooks Brothers, Gap, Lane Bryant, Nine West.
New Products: Burberry Body, Montblanc Legend, Jimmy Choo, Betsey Johnson Too Too.
Comments: Sales soared 34% last year and net income jumped 21% to record highs. Jean Madar, chairman and CEO of Inter Parfums, noted that while Inter Parfums achieved record sales and profits, the company also gained further control over product distribution, executed the largest new product launch in its history added three valuable names to its brand portfolio: Balmain, Repetto and Anna Sui.
Several prestige portfolio brands showed stellar sales gains. For example, Burberry sales rose 20% for the year in local currency due to the launch of Burberry Body and the staying power of the brand's historic lines. With the debut of Montblanc Legend, sales were more than three times greater than in 2010. Sales of Jimmy Choo signature fragrance far exceeded expectations; and in the latter part of the year, sales of Boucheron products began.
In December, Inter Parfums opened discussions with the Burberry Group to set up a new operating structure for the Burberry fragrance and beauty business. With excellent prospects in both the fragrance and beauty categories, the two companies are exploring ways to work more closely together to realize the brand's potential.
For the first quarter of 2012, sales increased 24% to $165.4 million and net income increased more than 21% to $15.5 million.
Inter Parfums' Anthropologic 1922 Lily Sanguine Eau de Parfunn won in the Specialty Brand Women's category at the Fragrance Foundation's 40th Annual FiFi Awards.
Westlake Village, CA
Sales: $611 million.
Key Personnel: Dr. Friedrich Kroos, president and chief executive officer, Jafra Cosmetics International; Hans ter Pelle, senior vice president and chief financial officer; Mari Loli Sanchez Cano, president, Jafra Mexico; Connie Tang, president, Jafra USA; Dr. Pragna Chakravarti, chief scientific officer.
Major Products: Royal Jelly Dynamics and Time Dynamics skin care; color cosmetics; Jafra Spa; Jafra Men; men's and women's fragrances; Jafra body and sun care products.
New Products: Jafra Pro, Steel Bouquet Fragrance.
Comments: jafra's sales rose nearly 3% last year. The company has more than 550,000 consultants worldwide. Mexico is far and away jafra's biggest market, with the US a distant No. 2. The company has operations in 17 countries overall.
Although Mexico is the firm's biggest market, sales there fell 2.7% last year to approximately $476 million. Still the company notes that the modest decline is remarkable when one considers that the average income of a Mexican household fell 12.3% from 2008 to 2010. At the same time, consumers are becoming concerned about the deteriorating security situation in some parts of the country, which makes it particularly treacherous for a direct-selling firm such as Jafra.
Meanwhile, sales in the US totaled $71.4 million.
The company is excited about its prospects in Brazil, which is the world's third largest market for direct sales of cosmetics and the largest consumer of cosmetics in Latin America. Last year, sales in Brazil rose 44% to more than $19 million. Jafra entered Brazil about four years ago.
The company said that Europe is making somewhat of a comeback with sales in Germany, Austria and the Netherlands rising a bit, while sales in Italy and Switzerland remained flat.
Elsewhere sales in Russia and India soared, but the gains were off very low sales. Still, the company is confident that these countries and Asia offer growth opportunities.
The company is particularly bullish about Jafra Pro, which it calls the next generation of skin care. Launched nearly a year ago in Mexico, the US, Germany, Austria and the Netherlands, Jafra Pro is expanding to the rest of the world in 2012. The product contains seven botanical ingredients (sea mayweed, licorice, papaya, oat, arnica, vitamin B3 and licorice derivative) to deliver a calming effect on the skin. In addition, these ingredients help hydrate skin, even the complexion, reduce the appearance of lines and wrinkles and enhance facial contour lift and cushioning.
Whitehouse Station, NJ
Sales: $583 million for foot, skin and sun care products; corporate sales: $48 billion. Net income: $6.2 billion.
Key Personnel: Kenneth C. Frazier, chairman, president and chief executive officer; Cuong Viet Do, executive vice president and chief strategy officer; Bridgette P Heller, executive vice president and president, Merck Consumer Care.
Major Products: Sun care--Coppertone and Bain de Soleil sun care products; Skin care--A+D Ointment; Foot care--Lotrimin, Tinactin and Dr. Scholl's.
New Products: Coppertone Continuous Spray Sport Pro, Coppertone Sport Pro Series with DuraFlex, Coppertone Wet Clear Kids.
Comments: While corporate sales advanced 4% in 2011, consumer product sales, which includes sun care, foot care and baby care products, rose just 1% last year. Merck blamed the lackluster results, in part, to a decline in Coppertone sales.
While Coppertone's sales may have been down, it wasn't for lack of trying. During the year, the brand rolled out several new products that boasted new technology. For example, Coppertone Sport Pro Series now includes DuraFlex, a dual-polymer system that is said to offer more flexibility and holds sunscreen on the skin as it allows the skin to breathe, according to Coppertone researchers. New polymer technology is also driving expansion of Coppertone's "wet skin" application products. Wet in Clear Kids SPF45+ has a new polymer system that addresses certain skin issues such as feelings of dryness or tightness, according to Dr. Patricia Agin, scientific affairs leader, Coppertone Solar Research Center.
"The more convenient and more aesthetic you can make a product, the more likely consumers are to use it and to reapply it," she said.
Agin told HAPPI that when formulated correctly, sunscreens can provide even more benefits to skin.
"We want to add antioxidants to replenish the skin," she explained. "There are lots of antioxidants to choose from, but we are looking at those that are most compatible with sunscreen systems. Some antioxidants are better than others in terms of reducing free radicals in the skin."
For the first quarter of 2012, corporate sales rose 1% to $11.7 billion. Consumer care sales were up 7% to $554 million, due to strong sales of Coppertone and Dr. Scholl's products.
Sales: $535 million.
Key Personnel: Orville Thompson, chief executive officer; Heidi Thompson, president; Kara Egan, director; Colette Gunnell, director.
Major Products: Home fragrances including scented wickless candles and personal fragrance products sold under the Layers by Scentsy brand.
New Products: Shower cream, shower gel, body lotion, body butter, body spray, hand cream, Washer Whiffs.
Comments: For some, The American Dream can conic fast and furious. Back in 2003, after several failed business ventures, Orville and Heidi Thompson were $700,000 in debt. But Orville, ever the salesman, begged his way into a home show event, promising to pay for the booth from the proceeds he garnered at the event. The organizer relented and Orville began selling 64-in-1 video game controllers across the aisle from Kara Egan and Colette Gunnell, founders of Scentsy, a tiny six-month-old wickless candle company housed in the basement of Gunnell's home in the Salt Lake City area. Orville became fascinated by the wickless candle concept and gave Kara a video game controller in exchange for a candle warmer, several wickless candle bars and a set of scent testers.
Heidi Thompson loved the products as much as her husband and on May 1, 2004, the Thompsons bought the company from Egan and Gunnell, who continue to sell Scentsy products and serve as company directors. Two months later, the Thompsons launched Scentsy as a party plan operation. That first year, sales totaled $140,000 and by 2010, sales had reached $381 million. In 2011, Scentsy's sales increased 40% and the number of consultants jumped more than 51% to over 151,000.
Today, Scentsy wickless products are sold through a network of more than 180,000 independent consultants running home-based businesses in the US, Puerto Rico, Guam, Canada, Germany, the UK and Ireland. It has distribution sites in Meridian, ID; Lexington, KY; Coppell, TX and Warsaw, Poland.
The company maintains that its Scentsy Bars hold more fragrance oils, resulting in a better fragrance "throw." The amount of fragrance load for Scentsy wickless candles is about 15% oil compared with 5% for regular wicked candles. Additionally, Scentsy Bars are said to be safer than wicked candles because no flame is required for the wax to melt or to release the fragrance.
Last year, Scentsy was ranked No. 85 in Inc.'s list of the fastest-growing companies and No. 66 in Forbes' list of the 100 most promising companies in the US.
Scentsy employs more than 1,000 and the Thompsons are confident that Scentsy's sales will ultimately reach $5 billion.
28. MARKWINS INTERNATIONAL
City of Industry, CA
Sales: $482 million.
Key Personnel: Eric Sung-Tsei Chen, chief executive officer; Bill George, president; Martin Toh, general manager; Eric Weeks, vice president, sales; Brian Talbot, vice president, marketing.
Major Products: Cosmetics brands including Wet n Wild, Black Radiance, Tropez, The Color Institute, The Color Workshop, The Spa Workshop, Disney Princess/Fairies/Minnie, Barbie, Monster High.
New Products: Wet n Wild Color Icon Eyeshadow Collection (eight-pan), Color Icon Shimmer Single, MegaShield Lip Color SPF 15, Juicy Lip Balm SPF 15, MegaLast Salon Nail Color. To be launched: Fergie Nail Color.
Comments: Markwins International is poised to follow-up an unprecedented 2011 with an even more successful 2012, led by leading brands Wet n Wild, Black Radiance, Fantasy Makers, The Color Institute and The Color Workshop, according to the company. Wet n Wild continues to grow at an astounding rate, with double-digit unit and dollar growth for 18 consecutive months.
Wet n Wild got "Fergalicious" for 2012, as the Grammy award winning pop superstar is serving as the brand's global beauty ambassador.
In addition to a multi-year, worldwide campaign that includes promoting Wet n Wild products via promotional materials, pianograms and retail/customer events, the brand will introduce Fergie signature lines by Wet n Wild, exclusive collections that will be a reflection of the singer's rock-star glam style.
"Fergie's approach to beauty and style is an ideal representation of our brand. She has the unique ability to go from hip, edgy and sexy to red-carpet glamorous. Her versatility and range is perfectly aligned with Wet n Wildisaid Bill George, president and COO of Markwins Beauty Products.
Other advertising and partnership ventures Markwins will embark on in the coming year will be a robust advertising plan, quadrupling its national print advertising budget to feature a minimum of four FSIs (free-standing inserts) in publications and a national television campaign with leading Spanish-language network Univsion, according to the company.
This year, Markwins signed a deal with DMV Diedrichs Markenvertrieb to launch the brand in Germany. The collaboration targets drug and mass retailers.
29. JOHN PAUL MITCHELL SYSTEMS
Beverly Hills, CA
Sales: $480 million (estimated).
Key Personnel: John Paul DeJoria, chief executive officer; Luke Jacobellis, president; Rick Battaglini, vice president, finance; Angus Mitchell, artistic director, education.
Major Products: Professional hair care products including Paul Mitchell, Awapuhi Wild Ginger, Ma Tree, Modern Elixirs, Paul Mitchell Professional flair Color, Paul Mitchell Pro Tools.
New Products: SolarVeil Complex, Mitch men's grooming products, Express Ion Curls.
Comments: Paul Mitchell remains the No. II privately-held company in I he professional hair care industry. The company sells its products in more than 150,000 beauty salons in nearly 90 countries. Annual retail sales are estimated at Si. billion.
It's well documented how, in 1980, John Paul DeJoria teamed up with Paul Mitchell to form John Paul Mitchell Systems. Mitchell died at 33 from pancreatic cancer, but his son Angus, 42, serves as the company's artistic director and has his own salon, Angus Mitchell Salon Beverly' Hills.
In May, Mitch Construction Paste was named "Best Hair Paste" by Men's Health readers.
Everyone knows that DeJoria is the founder of Patron Spirits Co. But did you know that he is big backer of sustainability? He is the majority shareholder in Gustin Energy, an environmentally-friendly natural gas and oil explorer, and his DeJoria Diamonds sells conflict-free diamonds. Last year, he started JPSelects.com, an online marketplace for sustainable products.
In a recent interview with Fortune, Dejoria offered three bits of wisdom for would-be entrepreneurs:
* Be prepared for rejection.
* Make the highest-quality products.
* Practice sustainability.
This year, John Paul Mitchell Systems will enter 2,000 select Marriott hotel doors across North America--a first for the company. According to reports, 24 million units of four unisex Paul Mitchell's Salon Classics products be available throughout four Marriott brands: Courtyard by Marriott, SpringHill Suites by Marriott, Residence Inn by Marriott and TownePlace Suites by Marriott.
St. Louis, MO
Sales: $419 million (estimated) for sun care, skin care and shaving products. Corporate sales: $4.6 billion. Net income: $261 million for the year ended Sept. 30, 2011.
Key Personnel: Ward M. Klein, chief executive officer, Energizer Holdings, Inc.; David P. Hatfield, president and chief executive officer, Energizer Personal Care; Daniel J. Sescleifer, executive vice president and chief financial officer, Energizer Holdings, Inc.
Major Products: Hawaiian Tropic and Banana Boat sun care products; Edge, Schick, Skintimate and Wilkinson Sword shaving products; Wet Ones and Playtex Sport wipes.
New Products: Banana Boat Sport Performance Coolzone, Banana Boat Natural Reflect, Hawaiian Tropic Silk Hydration Lotion Sunscreen SPF 12, 30 and 50; Schick Hydro shave preparations, American Safety Razor/Personna (acquisition).
Comments: Energizer is known for its batteries, but the company is the leading player in the US sun care market via its Hawaiian Tropic and Banana Boat brands. Last year, skin care net sales increased 9% (7% organic and 2% currencies) due to the favorable impact of lower prior year sun care returns and higher shipments for the current sun care season.
For the six months ended March 31, 2012, corporate sales rose nearly 4% to almost $2.3 billion and net income rose nearly 50% to $221 million. Persona) care sales rose more than 5% to $191 million on the strength of sun care sales.
A Sanofi Company
Sales: $352 million
Key Personnel: Zan Guerry, chairman of the board and CEO of Chattem Inc. at Sanofi-Aventis US; John Stroud, executive vice president, Chattem; Dean Patten, vice president of operations; Robert Bosworth, president, chief operating officer and director; Robert Long, vice president and chief financial officer.
Major Products: Medicated skin care--Gold Bond. Cortizone 10, Aspercreme, Arthritis Hot, Sportscreme, Capzasin; Skin care--Balmex; Oral care--Act mouthwash; Hair care--Selsun Blue, Sun-In, Ultra Swim: Sun care--BullFrog. UltraSwim.
New Products: BullFrog Mosquito Coast SPF 30, Gold Bond Ultimate Sheer Ribbons, Selsun Blue Deep Cleansing Micro-Bead Scrub, Act Total Care Dry Mouth rinse.
Comments: Chattem may be owned by a French conglomerate these days, but the company's roots are firmly planted in the fertile soil of Tennessee. Company CEO Zan Guerry, whose tennis career includes more than 25 national championships in singles and doubles, was elected to the Tennessee Sports Hall of Fame earlier this year. Guerry has made "outstanding contributions" in athletics to the state.
This past year, Chattem dedicated its manufacturing facilities on Broad Street in Chattanooga to B. Derril Pitts, former vice president of operations, who retired in 2011.
Sales: $344 million (estimated) for personal care and household products. Corporate sales: $441.1 million for the year ended March 31, 2012.
Key Personnel: Matthew M. Mannelly, president and CEO; Ron Lombardi, chief financial officer; Timothy J. Connors, chief marketing officer; Samuel C. Cowley, general counsel and VP, business development; John Parkinson, senior vice president, international; Jean Boyko, senior vice president, science and technology; Paul Hennessey, vice president, operations.
Major Products: Personal care, skin care, oral and OTC healthcare products including Chap-et Lip Balm, Cloverine, Debrox earwax remover, Dermoplast, Efferdent Denture Cleanser, EffergripDenture Adhesive, Ezo denture, Gly-Oxide Oral Rinse, Kerodex, Kwellada-P Lice Treatment, Remedies, New-Skin Liquid Bandage, New-Skin Scar Fade, Outgro, Oxipor Psoriasis Lotion, The Doctor's Night Guard. Household care products include Comet, Cinch and Spic and Span cleaners and Chore Boy scrubbing pads. The company also sells a number of GT-related medications and pain relievers for oral ingestion.
New Products: Efferdent Power Clean Crystals, Comet Stainless Steel Cleaners, New-Skin Anti-Chafing Spray.
Comments: Prestige Brands Holdings, Inc. record results for the fourth quarter and fiscal year ended March 31, 2012, were driven by strong OTC organic growth and the completion of the acquisition of 17 brands from GlaxoSmithKline, which was the largest acquisition in the company's history. In that deal, Prestige picked up Beano, BC, Goody's and Debrox in the US and Gaviscon in Canada, products that mainly fall outside of HAPPI's scope.
Corporate revenues for fiscal 2012 were $441.1 million, an increase of 31.1% over the prior year's revenues of $336.5 million. OTC healthcare sales reached $344.2 million and household products coming in at 93.5 million.
Organic revenues for the company grew 3.2% during fiscal 2012 over the prior year comparable period. Revenues from the GSK acquisition accounted for $30.4 million of the increase. Blacksmith Brands and Dramamine contributed $63.5 million of the increase for the period prior to the anniversary of their respective purchases.
Income from continuing operations for fiscal 2012 of $37.2 million was 27.5% higher than fiscal 2011 income from continuing operations of $29.2 million. Income from continuing operations for fiscal 2012 was impacted by $12.9 million of costs primarily associated with the GSK acquisition and costs associated with the evaluation of the Genomma Lab unsolicited proposal. (That's right; Avon wasn't the only company with unwanted advances this past year.)
"In less than three years, our clear and consistent value creation strategy has taken hold," said Matthew M. Mantlelly, president and CEO. "We have transformed Prestige into the largest independent OTC products company in the US with a proven ability to generate consistent organic growth in our core OTC business coupled with a leading free cash flow profile," he said.
According to Mannelly, the firm's M&A strategy has transformed Prestige into a company with approximately "90% of profits derived from higher growth, higher margin OTC brands."
Revenues for the household cleaning segment fell 5.7%, during 2012 versus 2011. Comet revenues decreased primarily due to softer consumer consumption of non-abrasive products, however Chore Boy and Spic and Span revenues increased as a result of increased promotional activity and expanded distribution and consumer demand for Spic and Span sprays and Chore Boy copper scrubbers, the company said.
Prestige Brands principal customer relationships include Walmart, Walgreens, CVS, Target and Dollar Tree--and sales to its top five and 10 customers accounted for approximately 40.0% and 50.1 % of total gross sales, respectively, in 2012 compared with approximately 41.7% and 53.0%, respectively, in 2011 and approximately 45.6% and 57.3%, respectively in 2010. No single customer other than Walmart accounted for more than 10% of the firm's gross sales in any of those years and none of its other top five customers accounted for less than 3% of our gross sales in any of those years. During 2012, 2011 and 2010, Walmart accounted for approximately 18.9%, 20.3% and 24.4%, respectively, of gross revenues.
San Diego, CA
Sales: $336 million. Net income: $36 million, for the year ended Aug. 31, 2011.
Key Personnel: Neal E. Schmale, chairman; Carry 0. Ridge, president and chief executive officer; Jay Rembolt, chief financial officer, treasurer and vice president, finance; Michael J. Irwin, executive vice president, strategic development; Graham P Milner, executive vice president, global development and chief branding officer; Geoffrey J. Holdsworth, managing director--Asia Pacific; William B. Noble, managing director-Europe, Middle East and Africa; Michael L. Freeman, division president, The Americas; Tim Lesmeister, vice president of US marketing.
Major Products: Maintenance, home care and cleaning products sold under brands including WD-40, 3-In-One Oil, Blue Works, X-14, 2000 Flushes, Carpet Fresh, NoVac, Spot Shot, 1001, Lava and Solvol.
New Products: WD-40 Specialist (line extensions).
Comments: WD-40 remains a staple in the household and auto care products segments, as year-to-date net sales increased 5% to $336.4 million--a record for the company. However, year-to-date net income stayed almost flat, rising 1% to $36.4 million.
"While we are happy with the big year we had and our record sales and net income, the year was not without its own pains with the pressure of rising commodity prices, reduction of gross margin and flat earnings," explained Carry Ridge, president and chief executive officer, WD-40 Company.
The Americas represented 51% of sales; Europe, 37% and Asia-Pacific, 12%. During the fourth quarter 59% of total sales came from outside the US.
"We launched three new products in the new WD-40 Specialist product line, a portfolio of specialty problem-solving products aimed at the trade and doer enthusiast, as planned in 2011 and had our first shipment to a customer in September 2011," Ridge said
WD-40 Company expects fiscal year 2012 net sales of $353.0 million to $370.0 million.
WD-40 also reached out to its customer base in a charitable way. When the WD-40/SEMA Cares Foose charity vehicle rolled off the auction block at the Barrett-Jackson Collector Car Auction on Jan. 20, 2012 in Scottsdale, AZ, it had raised big money for charity--$115,000, to be exact.
Chip Foose, the legendary hot rod designer and TV star who designed the custom 2012 Dodge Challenger SRI'S, was on-hand at the auction to see the winning bid come in from Khaled bin Alwaleed bin Talal Alsaud of Riyadh, Saudi Arabia.
This is the third consecutive year WD-40 Company has partnered with SEMA Cares, the charity arm of the Specialty Equipment Market Association, to build a custom vehicle. The WD -40/SEMA Cares Camaro and WD-40/SEMA Cares Mustang also raised money for the same two SEMA. Cares charities--Childhelp and The Victory Junction Gang Camps. The three vehicles have raised more than $400,000 for these charities.
In other philanthropic moves, WD-40 named Joel Hamberg as the Rebuilding Together Tradesperson of the Year. Based in Portland, OR, Hamberg, a painter, has assisted his community neighbors, and those in-need for nearly 30 years.
34. COMBE INC
White Plains, NY
Sales: $250 million (estimated).
Key Personnel: Christopher B. Combe, chairman and chief executive officer; Doug McGraime, president and chief operating officer
Major Products: Men's Grooming--Just for Men, Touch of Gray Grecian 5, Grecian formula, Restoria Express, Restoria Discreet, Silver Check, Aqua Velva, Lectric Shave, Brylcreem, Williams Mug Soap, Just 5 (for women); Femine Care--Vagisil, Benzal, Vionell; Foot Care--Johnson's Foot Soap; Denture Care--Sea Bond.
New Products: Just for Men Autostop.
Comments: Combe has been in the personal care industry for more than 60 years. Founded by Ivan D. Combe in 1949, the business is now run by the next generation in the family business, Christopher B. Combe. Its products are touted to solve "problems of every day life, from the world's number one men's hair color to the world's fastest-growing feminine hygiene brand to the world's best-selling alternative to denture pastes ... It's a simple idea that has made our brands household words globally for over 50 years."
One of the brand's latest innovations for the year was Just for Men Autostop, a "no mixing, no mess, radically easy to use" SKU. The formulation is ammonia and peroxide free, works in 10 minutes and comes in five shades, according to the company.
35. AMERICAN INT'L. INDUSTRIES (ALL)
Los Angeles, CA
Sales: $205 million (estimated).
Key Personnel: Zvi Ryzman, president; Terri Cooper, executive vice president; David Woolf, executive vice president of retail sales; Mark Moesta, vice president of professional sales.
Major Products: 5 Second Nail, Arden Eyelashes, Andrea Eyelashes, BodyDrench, Bye Bye Blemish, Checi, China Glaze, Clean + Easy, Clubman/Pinaud, Duo, EzFlow, Fright Night, Gena, GiGi, IBD, It's So Easy, Poshe Prolinc, RAW, Seche, SuperNail and Woody's Quality Grooming; Nail Tek (acquisition).
New Products: China Glaze On Safari (Fall 2012), Hunger Games Capitol Colours, Electro Pop, Summer Neons; Cleani+easy Tea Waxes; Body Drench Fruity Treats, Body Drench Lip Drench; Woody's Hair and Body Wash, Just4Play Body Spray; Ardell Double Ups, Ardell Trio 3-in-1, Ardell Self-Adhesive; Duo Brush-On Adhesive, Duo Individual Lash Adhesive; SuperNail ProGel; EzFlow TruGel; IBD Nail Lacquer.
Comments: In the personal care business for more than 40 years, American International Industries (AII) boasts 800 employees worldwide, and is among the leading manufacturers and global distributors of innovative, beauty and skin care products for men and women. In fact, the privately-held Los Angeles-based firm sells products in 180 countries and manufactures more than 60 million beauty products a year.
This April, All boosted its beauty portfolio with the acquisition of Nail Tek (Prima Technologies, Inc.), a nail treatment and polish company headquartered in Nesconset, NY
"The exceptional quality of the Nail Tek natural nail treatment and polish brand complements our current portfolio of nail brands," said Zvi Ryzman, president of AII. "We welcome Nail Tek to the All family of products and look forward to continued expansion of its product offerings and distribution."
Nail Tek brands include the widely recognized Nail Tek nail treatment brand including the Intensive Therapy product for weak nails, CITRA, Hydration Therapy nail treatments and color polish and other nail and hand care related products.
The company also made news headlines this year in regards to a collaboration with entertainment studio Lionsgate for its "Hunger Games" movies. According to The Hollywood Reporter, All was going to sue Lionsgate for $10 million on the grounds that the contract between the two companies was improperly terminated after the brand started production of the nail polish; however, the companies sorted out the issue and the collection debuted in March 2012 with much anticipation to the nail polish marketplace. According to the company, in keeping with the themes and messages of the story, the collection of nail polish was inspired exclusively by one of the book's distinct settings--the Capitol of the nation of Panem.
36. HELEN OF TROY
El Paso, TX
Sales: $200 million (estimated) for personal care products. Corporate sales: $1.1 billion. Net income: $110.3 million for the year ended March 31, 2012.
Key Personnel: Gerald J. Rubin, chairman, chief executive officer and president; Arthur A. August, president, professional division; Michael Cafaro, executive vice president, new product development and engineering; Richard R. Dwyer, executive vice president, business operations.
Major Products: Grooming, Skin Care, and Hair Care Products including Brut, Infusium 23, Pert Plus, Sure, Ammens, Ogilvie, Final Net and Sea Breeze.
Comments: For the past decade, Helen of Troy has been building a sizeable personal care business through the acquisition of such well-known brands as Brut, Pert Plus and Final Net. Many of these brands are marketed under Idelle Labs, Ltd., a subsidiary of Helen of Troy.
On the strength of several acquisitions outside of HAPPI's scope, Helen of Troy 's sales topped $1 billion for the first time. However, sales within the personal care products division, which includes hair dryers and other devices, rose just 1% during the year to $496 million. The company blamed the lackluster result on weakness in Europe
In January, Helen of Troy completed the acquisition of Pur water systems from Procter & Gamble.
36. HIGH RIDGE BRANDS
Sales: $200 million (estimated).
Key Personnel: Dario Margve, managing partner, Brynwood Partners and chairman of High Ridge Brands; James Daniels, president and chief executive officer, High Ridge Brands.
Major Products: Soap, personal cleansers and hair care products sold under the Zest, Coast, V05 and Rave banners.
Comments: The "Coast" was clear for High Ridge Brands in 2012. In April the Stamford, CT-based company--which is part of Brynwood Partners VI L.P.--acquired the global rights to the iconic Coast personal cleansing brand from The Dial Corporation.
Originally launched in 1975, Coast was known as the "The Eye Opener" thanks to its invigorating scent. The Coast range now includes both bar soaps (Pacific Force and Arctic Boost) and body washes (Pacific Force and Urban Fuel).
According to James Daniels, president and CEO of High Ridge Brands, "Coast brand has a very loyal consumer following," He said that High Ridge was looking forward to bringing "renewed attention and energy to Coast."
The Coast purchase came less than a year after High Ridge signed a deal with Unilever to acquire the Alberto VO5 brand and marketing rights in the US and Puerto Rico as well as the rights to the Rave brand and marketing rights worldwide. (Unilever retained the rights to the Alberto V05 brand outside the US and Puerto Rico).
38. SEVENTH GENERATION
Sales: $165 million.
Key Personnel: John Replogle, chief executive officer and president; Tim Fowler, chief scientific officer; Joey Bergstein, chief marketing officer.
Major Products: Natural 4X Laundry Detergent, Natural Dish Liquid, Free & Clear Baby Diapers & Wipes.
New Products: Natural Oxy Stain Remover, Natural Laundry Stain Remover, Wee Generation Baby Personal Care Line, Free & Clear Overnights and Training Pants. To be launched: Natural Personal Care line, Natural Monodose laundry, Natural Hand Care Dish Liquid and Natural Specialty Spray cleaners.
Comments: This year, the company welcomed branding expert Joey Bergstein as its new chief marketing officer. He joined Seventh Generation from Diageo, a leading premium spirits company, where he was senior vice president of global rum.
In November 2011, Seventh Generation was named a 2011 Leader for Change by the United Nations and the Foundation for Social Change. Seventh Generation CEO John Replogle accepted the award at a special presentation at the United Nations Global Conference for Social Change in New York City.
Replogle elaborated on the company's mission to embrace a triple bottom line that balances people, planet and profit in an interview with event moderator and The New York Times editor Jane Bornemeier.
"Seventh Generation has received an incredible number of honors in our 23-year history, but I'm not sure that we've ever received one as meaningful as this," said Replogle. "It's a tremendous acknowledgement of the progress we've been making to pursue our company's purpose to have an impact beyond profit. I think it speaks to a growing global desire to find better ways of doing business, leading industry and serving consumers. The old business model focused exclusively on profit is no longer viable and the world needs to forge new economic and social systems built on sustainability. This award recognizes that Seventh Generation is well on the path to this new model."
Following the commendation, the brand announced a reformulation of its best-selling laundry products. The new all-natural, plant-derived surfactant made its debut in Seventh Generation 2X laundry liquid and is now available in a new industry-leading 4X formula that delivers excellent cleansing at the half the dosage of standard 2X formulas while cutting shipping and storage requirements in half, the firm said.
The upgraded formula also contains new enzymes that target a wider array of stains and appreciably boost the product's already impressive cleaning power in both standard and HE machines.
The innovation responsible for this distinction is a brand new surfactant derived entirely from plant-based materials that were developed by the company and Rhodia. The unique surfactant, which combines ethylene oxide derived from sugar cane and plant-derived lauryl alcohol, contains no petroleum and features outstanding detergent properties, the company said.
As a result of this "dramatic breakthrough in detergent technology," Seventh Generation's new laundry detergent has become one of just a handful of products in the nation to be awarded the US Department of Agriculture's new BioPreferred seal, which certifies products that are entirely or significantly made from renewable agricultural ingredients and materials. The new labeling program is intended to help consumers make purchases that reduce dependence on petroleum, boost rural economies, and alleviate climate change.
"It's hard to overstate just how big this is," said Replogle. "It's a cleaning industry holy grail of sorts and something we've been working on for a long time. Thanks to this new chemistry, we've created a premium high performance laundry detergent and dramatically boosted the overall renewable content of our laundry liquid from 77% to 97%."
This April, Seventh Generation celebrated the one-year anniversary of the USDA Certified Biobased label and certification of 13 of the company's offerings--and to commemorate the event, the Burlington, VT-based company said all of its eligible formulated products will be 100% USDA Biobased Certified by 2020.
The biobased product certification and labeling initiative, which was launched last year as a new part of USDA's BioPreferred program, initially certified 13 Seventh Generation products from the company's bathtub cleaner and dish soap to liquid laundry detergent.
In other news, Seventh Generation boosted its outreach to the youth market. Besides debuting a six-piece personal care range for babies, it partnered with Universal Partnerships & Licensing (UP&L) to support the release of Dr. Seuss' "The Lorax." This marked the first-ever major studio film promotion for Seventh Generation.
Through Earth Month, Seventh Generation encouraged its consumers to consider products that are "Lorax Approved." At the cornerstone of their promotion, Seventh Generation unveiled a new liquid laundry detergent bottle made from 100% recycled cardboard and newspaper. The container, which prominently features Lorax images, uses 66% less plastic than typical 100oz 2X detergent bottles, allowing consumers to conserve effortlessly, according to the company.
39. SPARTAN CHEMICAL COMPANY
Sales: $164 million.
Key Personnel: Stephen H. Swigart, chairman; John Swigart, president; Greg Ford, vice president, sales; Dave Reed, vice president, national accounts.
Major Products: Chemical specialty maintenance products including a complete line of environmentally preferable products; bio-based products; products for disinfecting and sanitizing, hard floor care, carpet care, restroom care; hand cleaners; deodorants. Brands include Green Solutions, Clean by Peroxy, Biorenewables, Consume and Clothesline Fresh.
Comments: Sales rose more than 10% last year and the company continues to be on a roll. Last month, it was awarded a Novation contract for laundry that was effective July 1. Founded in 1998, Novation is a leading health care supply chain expertise and contracting company for the more than 65,000 members of VHA Inc. and UHC, which are two national health care alliances, and Provista, LLC. In April, Spartan was approved as a Performance Partner with NSA, and in early November, the firm was awarded a 37-month contract with the Premier healthcare alliance for its housekeeping products. Premier is an alliance of more than 2,500 U.S. hospitals and 78,000-plus other healthcare sites.
Who says I&I firms can't be hip? Spartan, for one, is showing the industrial and institutional market that it is techno-savvy. In early in 2012, the company expanded its Spartan's CleanCheck Training System with the addition of the Health Care module that is available online, free of charge to all registered users. As with all other modules, CleanCheck Health Care offers videos, training cards, a training manual section, testing and certification, and training components are available in English and Spanish.
And, let's not forget The Spartan App for the iPad. Geared to be used by the field sales teams of Spartan Authorized distributors, it can be used primarily as a proposal builder. The app features interactive floor plans for nine market segments, in which it creates an experience where the distributor sales representatives "walk through" a facility along with the facility service provider. The program recommends products for applications common to various market specific rooms and surfaces and is rich with product information, sell sheets and additional features.
40. TURTLE WAX
Sales: $158 million (estimated).
Key Personnel: Denis John Healy chairman and chief executive officer; Sondra A. Healy, co-chairman; Tom Healy, vice president of global sales and marketing; and Mike Schultz, senior vice president of research and development.
Major Products: Automotive care products such as waxes, polishes and washes.
New Products: Improved ICE Car Wash, Liquid Wax and ICE Spray Wax.
Comments: Turtle Wax recently inked a deal with Ryko Solutions, Inc., the car wash industry's largest factory direct-to-market supplier of chemicals, to distribute Turtle Wax professional auto appearance products throughout the US and Canada. Through this program, car wash customers will have the opportunity to select from Ryko's proprietary line of chemicals or opt for an upgraded program that includes clear coat products and polishes from Thrtle Wax.
"By joining forces, Turtle Wax and Ryko will be able to deliver high performance, brand name chemicals and equipment to all customer types across the country," explained Denis John Healy, CEO of Turtle Wax. "This partnership significantly strengthens Turtle Wax's distribution network while providing Ryko's customers with a branded chemical offering. This is a win/win for both companies and Tuttle Wax looks forward to a long-standing relationship with Ryko."
For DIY consumers, Turtle Wax has rolled out updated formulations of its ICE Car Wash, Liquid Wax and ICE Spray Wax products. To spread the word, the brand created a coupon sign-up sweepstakes. By registering on its Facebook page for a coupon, users were automatically entered in the Ice & Easy sweepstakes in which they could win one of 10 Turtle Wax ICE Premium Car Care prize packs. Each prize pack includes all five of the new and improved Turtle Wax ICE products.
A Division of ACMG
Jersey City, NJ 800.672.2259
Sales: $136 million.
Key Personnel: Thomas Shipley and Andrew Surwilo, co-founders and chief executive officers; Darek Hrynkiewicz, chief of operations; John Ende, chief financial officer; Dr. Mindy Goldstein, chief scientific officer.
Major Products: Hydroxatone AM/PM Anti-Wrinkle Complex, Hydrolyze Advanced Under-Eye Formula, 90 Second Wrinkle Reducer, Intensive Anti-Wrinkle Complex.
New Products: Anti-Aging BB Cream SPF 40 and Hydrolyze Intensive Under Eye Treatment, Intensive Overnight Repair. To be launched: Instant Face-Lift.
Comments: Atlantic Coast Media Group (ACMG) has enjoyed an explosive triple-digit year-over-year growth and expansion during the past seven years, according to sources at the company. Its best-selling Hydroxatone And-Aging Skincare brand has many top direct response products including its Hydrolyze Advanced Under Eve Formula (for dark circles and bags), AM/PM Anti-Wrinkle Complex, Celtrixa Stretch Mark Treatment and the ever-increasing popularity of its 90 Second Wrinkle Reducer.
ACMG recently launched its Hydroxatone Anti-Aging BB Cream, which sold out on HSN. The company has also expanded its portfolio of beauty brands by creating and launching Keranique Hair Care (hair regrowth treatment for women) and its blockbuster skin care line Miracle Skin Transformer.
ACMG's mainstay products continue to be top sellers due to the company's innovative and extensive direct selling expertise in on-line, print, radio, television, and more recently, home shopping. Since inception, ACMG has aired billions of radio, television and print impressions. With its recent expansion into traditional retail (Sephora, Ulta, Mary's, Lord & Taylor), ACMG bills itself as "the only true multichannel, multi-brand marketer in the beauty industry today."
Los Angeles, CA
Sales: $147 million for personal care products. Corporate sales: $3.4 billion.
Key Personne: Michael 0. Johnson, chairman and chief executive officer and director; Brett R. Chapman, general counsel; Desmond Walsh, president; Richard P Goudis, chief operating officer; John DeSimone, chief financial officer; Paolo Giacomoni, vice president, worldwide outer nutrition.
Major Products: Personal care products marketed under brand names such as Skin Activator, Herbal Aloe, Radiant C and NouriFusion.
Comments: Herbalife's "outer nutrition" business--which encompasses its personal care products--continues to shrink in relation to its other operations, like weight management. But on a positive note, 2011 revenues of $147.8 million were ahead of 2010 results ($127.5 million). Of its corporate sales, the Asia-Pacific region represented 27.2%, North America, 20.2%; South and Central America, 16.0%; EMEA, 17.8%; Mexico, 12.7%; and China 6.1%.
As of Dec. 31, 2011 the company had approximately 2.7 million independent distributors in 79 countries.
A publicly traded company, the company's stock recently took a hit when David Einhorn of Greenlight Capital pitched questions during the company's earnings call on May 1. Although Herbalife's financial performance was positive, Einhorn's query sent the firm's stock tumbling. In fact, it dropped more than 20% on that day, prompting the company to issue the following statement:
"Today, on Herbalife's earnings call the company announced record results--its best quarter financial results in 32 years. The fact that recognized short seller David Einhorn asked questions on the call put pressure on Herbalife's stock price.
To be clear: Mr. Einhorn's questions raised no new subjects or concerns. They were elementary questions usually asked by investors new to our industry. These are issues that have been thoroughly addressed before. Analysts and investors can review the specific answers to his questions on our website later today at www.herbalife.com.
Our business fundamentals are very strong and we are confident in our financials, our disclosures, and our network marketing business method.
We believe the drop in Herbalife's stock price today is a buying opportunity given the strong business fundamentals and our outlook for ongoing success. We currently have $428 million in repurchase authorization."
Herbalife's stock, as of June 12, 2012, was trading at $45.42; it had been at $72.69 on April 23, 2012.
Herbalife is again the title sponsor and official nutrition company of the 2012 World Football Challenge, a soccer exhibition tournament that takes place this summer in the US and Canada.
43. PARLUX FRAGRANCES
Fort Lauderdale, FL
Sales: $135 million (estimated) for the year ended March 31, 2012.
Key Personnel: Frederick F. Purches, chairman and chief executive officer; Frank A. Buttacavoli, executive vice president/chief operating officer; Raymond J. Balsys, chief financial officer; Kathleen Calvin, vice president, marketing and advertising; Hedy Abromovitz, vice president, operations; Craig Ahlheim, vice president, US sales; Lesbia Roner-Hansen, vice president, international sales.
Major Products: Parlux holds licenses and sublicenses to manufacture and distribute the designer fragrance brands of Paris Hilton, Jessica Simpson, Nicole Miller, Josie Natori, Queen Latifah, Marc Ecko, Rihanna, Kanye West, Vince Camuto and Fred Hayman Beverly Hills.
New Products: Vince Camuto by Vince Camuto, Rebelle by Rihanna, Paris Hilton Dazzle.
Comments: Parlux has been acquired by Perfumania Holdings, Inc., a vertically integrated wholesale distributor and specialty re tailer of fragrances and related products. The outstanding shares of Parlux common stock were converted into the right to receive cash and Perfumania common stock with an aggregate value of approximately $118 million and Parlux became a wholly owned subsidiary of Perfumania, Parlux's common stock ceased trading on April 18, 2012.
Upon completion of the merger, Parlux directors Frederick F. Purches, Anthony D'Agostino, Esther Egozi Choukroun, Glenn Gopman and Robert Mitzman were elected to Perfumania's hoard of directors.
Mike Katz, Perfumania's president and chief executive officer, said, "We are pleased with the strong support that both Perfumania and Parlux shareholders gave this transaction and are excited about the opportunity to create additional value for our shareholders, vendors, custom ers and employees. The combination of Perlumania and Parlux is a major step toward building a more significant and Financially stronger designer Fragrance and beauty products company. Parlux brings a wealth ol products and expertise as a licensee, manufacturer and international distributor."
Paris Hilton released her 15th celebrity fragrance with Parlux, aptly titled "Dazzle," this sum mci. The formulation will have top notes of pink lady apple, maraschino cherry and peach nectar with heart notes of violet petals, pink calypso orchid and orange blossom. The richer base notes will include pink champagne, white patchouli and crystallized musk.
44. GOJO INDUSTRIES
Sales: 5133 million (estimated).
Key Personnel: Joe Kanter, chairman and chief executive officer; Scott Levin, chief financial officer and chief administrative vice president; Harold Tyreman, vice president of sales and marketing; Kathleen Hooker, marketing director, consumer business, Purell.
Major Products: Gojo, Frown, Purell.
New Products: Gojo LTX and ADX Dispensing Systems, Purell Advanced instant Hand Sanitizer.
Comments: In business for more than 65 years, privately-held Gojo is best known for its Purell hand sanitizing products. The past year featured a variety of rollouts for Gojo.
This spring, the company debuted Purell Advanced Hand Sanitizer, a new formulation that offers superior germ-killing protection that outperforms other hand sanitizers, according to the company. It contends that just one squirt of the formulation kills as many germs as two squirts of any other national brand.
"Purell Advanced Hand Sanitizer has been available in hospitals and doctors offices, and now Gojo is excited to make it much more widely available," said Kathleen Hooker, marketing director for the Purell Consumer Business. "We're pleased to offer Purell Advanced for people who are seeking a more effective way to help stop the spread of illness-causing germs."
Gojo also rolled out its new LTX and ADX Dispensing Systems. The LFX touch-free and ADX manual dispensing systems were designed to fit in tight areas and also Feature large sight windows to allow for at-a-glance refill checks. Gojo Sanitary Sealed Refills snap into place quickly, minimizing labor time while protecting users from the contamination risks of bulk soap, according to the company. In addition, the dispensers utilize Gojo Controlled Collapse Bottles, which are engineered to hold their shape longer while emptying to allow for a more attractive appearance.
"The Gojo LTX and ADX Dispensing Systems set the standard for soap dispensing and refill systems for businesses and organizations dedicated to proper hand hygiene," said Rick Henry, senior product manager, Dispensing Systems at Gojo. "In addition to dependability and ease of use, the LTX and ADX Dispensing Systems reflect the Gojo commitment to sustainability by featuring Gojo Smart Flex Bottles, which are made from durable, recyclable PET material to provide crystal clarity while using 30% less material than standard rigid HDPE bottles."
Sales: $130 million (estimated).
Key Personnel: Jane Wurwand and Ray Wurwand, founders; Jerald J. Wenker, president and chief operating officer; Dr. Diana Howard, vice president of global education and research and development for The International Dermal Institute and Dermalogica; Annet King, director of training and development, International Dermal Institute; Heather Hickman, education manager USA, International Dermal Institute.
Major Products: Professional skin care and treatments.
New Products: Age Smart Skin Perfect Primer SPF 30, Solar Defense Booster SPF 50.
Comments: For more than 25 years, Dermalogica has been dedicated to supporting and promoting "Skin Health, through the expertise of a Professional Skin Therapist," used by more than 75,000 skin therapists in over 80 countries around the world. This professional skin care brand offers consumers a complimentary "Face Mapping" skin analysis for customized results.
For Fall 2011, the brand took flight with American Airlines, which introduced a new suite of premium class amenities on select international flights in First and Business Class cabins, including Dermalogica skin care products. The SKUs then rolled out in American's First Class cabins onboard all international flights served by Boeing 777s and American's Business Class cabins onboard all international flights operated by Boeing 777s and 767-300s, in addition to select flights to and from Europe operated by Boeing 757s.
The brand also tapped into the sampling trend in the beauty industry by participating in Beautybar.com and Allure's Sample Society, a members-only subscription service that delivers exclusive samples of hair care, makeup, skin care and fragrance products paired with an exclusive mini-issue of Allure each month.
In other news, company founder Jane Wurwand participated in the Third International Women's Day Forum, hosted by the UN Office for Partnership and the US Chamber of Commerce Business Civic Leadership Center.
Wurwand posted the following on her blog at Dermalogica.com: "The forum focused on the need for policy innovation, leadership and collaboration across all sectors of business and government, especially in the developing world, in order to engage the potential of women everywhere. I presented our update on join Financial Independence Through Entrepreneurship (FITE), and the fact that Dermalogica's friends and tribe now have micro-financed over 11,000 women in small business: 1100 of them in the USA alone. And, we've only just begun!"
Oak Brook, IL
Sales: $125 million (estimated).
Key Personnel: David C. Arch, chairman and chief executive officer; Mike Donnantuono, president.
Major Products: HBA brands include Blistex, Stridex, Glysomed and Odor-Eaters; OTC products include Ivarest (poison ivy), Kank-A (oral care) and Foille (medicated first aid ointment).
New Products: Blistex Intensive Hand Cream, Blistex Revive & Restore.
Comments: Its well-known lip care brand is sold in more than 75 countries, but there's much more to Blistex than its flagship product. Via a number of acquisitions, this family-owned operation has broadened its personal care stable. Now under the Blistex umbrella are Stridex skin care, Kank-A oral pain relief, poison ivy treatment Ivarest and most recently, Odor-Eaters, which it acquired from Combe, Inc. in early 2011. Blistex also markets on a top-selling mouthwash brand in the UK and a line of moisturizers in Canada.
Since Blistex now owns Odor-Eaters, it hosts the annual Odor-Eaters Rotten Sneaker Contest. This past year, 16-year old Mason Bennett of Eagle River, AK, netted $2,500 for his tennis shoes that had some serious funk. Bennett's sneakers are now enshrined in the Odor-Eaters "Hall of Fumes" in Montpelier, VT.
47. STATE INDUSTRIAL
Sales: 5115 million
Key Personnel: Hal Uhrman., chief executive officer; Brian Limbert, chief operating officer; Jim Beard, senior vice president, marketing; Eric Kowalewski, vice president, operations; Dan Prugar, chief financial officer.
Major Products: Drain care, air enhancement, water treatment and water management, personal care, floor care, cleaning and disinfection, grounds care, and the Ecolution line of environ mentally-preferred Green Seal and Ecologo certified products. Major dispensing systems include the Fragrance Factory Air Enhancement System, I he Soap Factory Hand Care System, the 24/7 Automatic Drain Care System, the SuperCool Cooling Water Treatment System and the Solution Dilution System.
Comments: State Industrial Products plans to move out of Cleveland later this year, having purchased a new office building in Mayfield Heights, a suburb that's about 10 miles east of the "Forest City" it has called home for more than 100 years.
"Our move complements the recent opening of our state-of-the-art manufacturing facility in Hebron, Ohio, along with a dozen acquisitions of regional industrial cleaning suppliers," Hal Uhrman, president and chief executive officer of State Industrial Products, said back in February when the news broke. "The new offices, already wired with essential high-speed internet services, will enhance our operational efficiency, working conditions and teamwork."
The firm, which has been in its current space since 1966, purchased the new digs at auction for slightly more than $4 million. What does that get you in Mayfield Heights? An 80,000-sq. ft., four-story, glass-sheathed building that can house 110 Cleveland based employees, and some extra space to rent out.
In January, State Industrial Products acquired LabTek, a provider of institutional cleaning supplies based in Bloomington, IN. The $18 million company provides a single-source solution for cleaning supplies and equipment, utilizing chemicals that are specially formulated to combat the limestone and calcium deposits in Indiana's hard water.
LabTek will be integrated into State Cleaning Solutions, State's ware wash and laundry division, which provides institutional cleaning products and solutions.
In the past four years, State Industrial has purchased more than a dozen regional cleaning suppliers across the US and incorporated them into State Cleaning Solutions, which now operates in 17 states.
Long Beach, CA
Sales: $114 million.
Net income: S10 million.
Key Personnel: Albert F. Hummel, president, director and chief executive officer; Preston S. Romm, chief financial officer and executive vice president of finance; David S. Goldstein, executive vice president, global sales and field marketing; Laura B. Hunter, vice president, general counsel and secretary.
Major Products: Dermatologist-based skin care systems including Nu-Dean, Professional-C, Elastiderm, Obagi-C Rx, Clenziderm and Rosaclear.
New Products: Flastiderm Eye Complete Complex Serum
Comments: Based on a 2011 study by Kline & Co., Obagi is the leading skin health company in the physician-dispensed channel, with an estimated 30.1% market share, nearly two times the market share of the next largest competitor.
Obagi systems and products are designed to prevent and improve the most common and visible skin disorders in adult skin, including premature aging, photodamage, hyperpigmentation (irregular or patchy discoloration of the skin), acne, sun damage, facial redness, and soft tissue deficits, such as fine lines and wrinkles. Products are sold through a direct sales force in the US and internationally through distribution partners in more than 43 countries across North America, Central America, Europe, the Middle East and Asia.
This year, for the second year in a row, Obagi Medical Products was named as the "The Best Skin-Care System at a Doctor's Office" by New Beauty magazine.
"We are honored to be named, once again, the top skin care system from a physician's office," said Jim Hartman, vice president of global marketing and business development at Obagi Medical Products. "Being acknowledged in 2011 and now in 2012, by consumers, along with such an esteemed group of beauty insiders and industry professionals, makes it that much more significant."
In 2013, The Obagi Nu-Derm System turns 25. It was launched in 1988 and consists of a combination of six prescription, OTC therapeutic agents and adjunctive cosmetic skin care products to treat visible skin conditions such as photodamage and hyperpigmentation resulting from extrinsic damage and intrinsic changes to the skin.
The Obagi Nu-Derm System accounted for approximately 53% of net sales for the year ended Dec. 31, 2011, according to the company.
San Francisco, CA
Sales: $112 million (estimated).
Key Personnel: Drew Fraze, chief executive officer; Adam Lowry, co-founder and chief greenskeeper; Eric Ryan, co-founder and chief brand architect.
Major Products: Laundry detergent; home cleaning products including all-purpose cleaning sprays, dish soap, bathroom cleaners, floor cleaners and antibacterial cleaners; and personal care, mainly in form of gel and foaming hand washes.
New Products: Antibacterial Kitchen Spray (lemon verbena + orange zest), Antibacterial Bathroom Spray (spearmint); Antibacterial Toilet Cleaner; Wood For Good Polish, Daily clean Spray, Dilutable Oil Soap, Squirt + Mop Floor Cleaner and Wipes in almond fragrance; Hand Soaps in watermelon patch, daffodil bouquet and coconut grove; Pure Naked body wash in magnolia, olive leaf and white tea; Laundry Detergent in spring daisy fragrance; Lime + sea salt kit (hand soap, dish soap, all-purpose cleaner).
Comments: Method turned 11 in 2011, and with more than a decade under its belt, this eco-minded and design-savvy firm rolled out its first global brand campaign. The colorful and quirky Clean Happy campaign, which features a 90-second brand anthem music video, has been followed by a series of consecutive Method of the Month music video vignettes.
According to the company, the video portrays the fun side of cleaning with Method products and highlights the brand's key product attributes. The anthem, set to the song "Young Blood" by indie rock band The Naked and Famous, includes an internationally competitive drum and bugle corps, a world champion female skateboarder skating in a giant sink, and a 40-foot light installation made up of thousands of Method hand wash bottles. The 60-second monthly music videos set to funny original songs are inspired by and showcase Method products, including cleaning spray hand wash, dish soap and laundry detergent.
The web videos are being distributed primarily through Facebook, YouTube and an influential, handpicked blogger network that Method dubbed "Method Mavens." The campaign is also supported with online advertising on Facebook and YouTube, and will have global reach with Method audiences in North America, Europe and Asia.
"We are bringing our brand mission of inspiring a happy, healthy home to life with this campaign," said Eric Ryan, Method's cofounder and chief brand architect. "Method stands for a more enjoyable cleaning experience, and we want to show that cleaning doesn't have to be such a chore--it can actually make you feel good and at the same time be safe for you, your family and the planet."
Better for the planet is a key part of Method's strategy, and along that line, last September, the firm unveiled a 100% post-consumer polyethylene bottle of which 25% is plastic collected from the North Pacific Gyre, often referred to as the Great Pacific Garbage Patch. The firm partnered with Envision Plastics, on the project, in which the duo pioneered an integrated recycling process to engineer ocean PCR plastic that is the same quality as virgin HDPE plastic. The process allows the plastic to be cleaned, unwanted contaminants removed completely; blended and then re-manufactured into high quality plastic.
While novel packaging is part of the process, so are ingredients. In the fourth quarter of 2011, Method announced a partnership with Amyris, Inc., a renewable chemicals and fuels company, to generate novel molecules from Biofene, Amyris's renewable farnesene made from plant sugars.
Under the agreement, the two will collaborate to evaluate and develop multiple ingredients such as surfactants and solvents. Upon successful development of an ingredient and incorporation into a Method product, Amyris and Method will pursue a supply agreement for Amyris to supply the ingredient to Method for use in its products.
El Segundo, CA
Sales: silo million (estimated).
Key Personnel: Howard Murad, M.D., FAAD, chief executive officer and founder; Richard S. Murad, general manager; Beverly Parsons, chief operating officer; Jeff Murad, vice president, new product development/chief scientific officer; Lori Jacobus, chief marketing officer.
Major Products: Renewing Eye Cream, Hydro-Dynamic Ultimate Moisture, 30-Day Acne Complex Kit and Age Spot and Pigment Lightening Gel.
New Products: Rejuvenating Lift for Neck & Decollete, Rapid Age Spot & Pigment Lightening Serum, Time Release Retinol Concentrate for Deep Wrinkles, Intensive-C Radiance Peel, Age-Diffusing Firming Mask, Oil-Free Sunscreen Broad Spectrum SPF 301PA+++ and Water Resistant Sunscreen Broad Spectrum SPF 301PA+++. To be launched: Anti-Aging Acne Pore & Line Minimizing Hydrator, Acne Clarifying Wipes and Acne Overnight Soothing Gel.
Comments: Murad is a privately held company, but it still crowed that 2011 revenue increased 8%, due to a 25% gain in international sales. The end result was the eighth consecutive year of record-breaking sales, according to sources at the company.
This year brought a personnel switch, as Murad Inc. welcomed Beverly Parsons as chief operating officer to oversee the operations and information technology departments. She joined the company from Guthy-Renker, where she spent 15 years in various operations functions.
In 2012, Murad Inc. was named the official skin care partner of the Los Angeles Dodgers. Under terms of the agreement, Murad provides skin care tips and sun protection advice along with product to both the ballplayers and their fans with special giveaways and promotions during all daytime home games throughout the 2012 regular season.
"As an avid Dodger fan, it is a privilege to partner with this legendary baseball team to provide education on ways to protect against sun damage, and the importance of health and wellness, both internally and externally," said Dr. Howard Murad. "Many people view skin care as simply cosmetic. My hope is that through this partnership, we will be able to further change the way people view skincare, helping fans to realize that your skin really is an overall reflection of the state of your health and that sun protection is an essential component of maintaining a healthy lifestyle."
This summer, Murad will launch MuraSol Antioxidant Defense, an advanced sun care technology.
PODS: THE GOOD & BAD
* P&G may be scaling back its push into emerging markets, but the company is going full speed ahead with its aggressive campaign for Tide Pods, the all-in-one detergent, stain remover and brightener that makes it easy to do the laundry quickly and correctly. Although the Pods are priced at a premium, a 14-pod package retails for $4.47 at Walmart online. P&G execs are confident that the segment will eventually become a $300 million segment within the $4.3 billion US laundry market.
But first, P&G and other single-use detergent makers must deal with some bad publicity. In May, reports came out that at least 250 young children were accidently ingesting the bright, colorful packs manufactured by P&G and other detergent makers.
P&G reacted quickly by redesigning the Tide Pods container and working with the American Cleaning Institute to warn parents to keep pods as well as all household cleaning products, away from children.
GO WEST, C&D!
* Keeping an eye on costs is a constant at C&D. The company's new plant in California--it's first one west of Missouri--will bring dramatic reductions in shipping costs.
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|Publication:||Household & Personal Products Industry|
|Date:||Jul 1, 2012|
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