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The International Top 30.

1
Unilever PLC
Unilever House Blackfriars
London EC4P 4BQ United Kingdom
Tel: (44) 0-20-7822-5252
Website: www.unilever.com
Sales: $20.2 billion


SALES: $20.2 billion for household and personal care products. Corporate sales: $45.8 billion. Net profit: $1.58 billion.

KEY PERSONNEL: Niall FitzGerald, chairman, Unilever PLC; Antony Burgmans, chairman, Unilever NV; Clive Butler, corporate development director; Keki Dadiseth, home and personal care director; Charles Strauss, president, home and personal care North America and global prestige business and chairman, North America committee.

MAJOR PRODUCTS: Personal care--Axe/Lynx, Rexona/Sure and Degree deodorants; House of Valentino, House of Cerruti and Calvin Klein fragrances; Dove, Caress, Lux and Lever 2000 soaps; Pond's and Vaseline skin care products; Organics, Salon Selectives, SunSilk, Suave and ThermaSilk hair care products; Mentadent, Close-Up, Signal and Pepsodent oral care products. Household products--Ala, All, Omo and Wisk laundry detergents; Comfort and Snuggle fabric softeners; Domestos, Cif.

NEW PRODUCTS: Pond's Perfect (Japan), Pond's RenAscent (Mexico), BCBG fragrances and Crave fragrance (U.S.), Comfort Vaporesse (Europe). To be launched: Axe men's toiletries (in the U.S.), Mentadent Tooth Whitening System, Dove shampoo and conditioner.

COMMENTS: Unilever is by far the largest consumer products company in the world, and the group managed to thrive despite the difficult economic climate of 2001. Sales within the home and personal care group rose 3% last year. The gains were attributed to a 6.5% increase for Unilever's leading brands, which are expected to account for 90% of the company portfolio by the end of the year (up from 84% at the close of 2001). Along with a focus on leading brands, the company has been committed to innovation and during the year, Unilever's new network of global technology centers enabled the company to bring bigger innovations to market more quickly.

For example, within the laundry detergent category, Unilever introduced liquid capsules--a followup to the earlier introduction of detergent tablets. At the same time, Unilever is committed to aligning all laundry detergents and fabric conditioners under a limited number of leading brands. Along those lines, the company standardized Omo packaging and advertising in Africa, the Middle East and Turkey; Asia and Pacific and Latin America and relaunched Surf in India. In other laundry moves, Unilever extended the Comfort fabric conditioner brand by launching Comfort Vaporesse in Europe. Vaporesse is added to steam irons to make fabrics smell fresher and eliminate limescale.

In May, Unilever announced that its U.S. group will downsize package sizes of All, Surf and Wisk by 20%, while cutting the brands' retail price by 10%. The move is intended to beef up the company's profits, according to an article in Advertising Age. According to data from Information Resources Inc., Chicago, Procter & Gamble holds a 57% share of the laundry detergent market. Unilever is a distant No. 2, with a 17% share. Church & Dwight is No. 3 (8.6%) and Dial is No. 4 (7.4%).

"We have given up some share, but significantly stepped up profitability (in the U.S.)," said Howard Green, Unilever's head of investor relations in a conference call to analysts. "In the rest of the world, where we lead the market, the emphasis has been on improving profitability as we continue to move share forward."

Gains in personal care were once again paced by the Dove franchise, which recorded its third consecutive year of more than 25% growth. The brand made a successful debut in the Asian hair care market, reaching the No. 3 spot in the Japanese shampoo and conditioner market. In fact, through its Dove, Lux and Mod's hair brands, Unilever is the No. 1 player in the Japanese hair care market.

Deodorant sales were also up, led by Dove's strong U.S. sales and the brand's debut in Mexico. Unilever also updated the Axe male deodorant range with two new fragrances and an improved shower line.

Unilever's focus on profits paid off in a big way for the first quarter of 2002. Although sales slipped 1% to $12.2 billion, net profit soared 94% to $459 million.

"We have made a sound start to the year," said chairmen Antony Burgmans and Niall FitzGerald.

"Continuing expansion in underlying operating margin reflects our determination to grow our business profitably. Our operational plans have addressed the improvement in profitability in key parts of our business, such as laundry, tea and ice cream, and a continued focus on extracting value from the tail of our business.

"In addition, we have taken pricing action in countries where there have been substantial devaluations. Together these activities reinforce our planned delivery of low double-digit growth in EPS for the year. Through the quarter we have seen an increase in sales momentum which is in line with our target for the year of sustaining the growth of our leading brands."

Earlier this year, Unilever completed the sale of its DiverseyLever industrial and institutional cleaning group to Johnson Wax Professional (For more on that sale, see The Top 50, p. 65 in the July issue of Happi).

In June, the National Association of Chain Drug Stores' Marketplace Convention was abuzz with news that Unilever plans to enter the U.S. hair color segment this fall. Unilever refused to comment on the rumor. The company already sells permanent hair color under the Sunsilk brand in Thailand, India and Vietnam and under the Sedal brand in Brazil, Argentina and Uruguay.
2
L'0real
41, rue Martre
92117 Clichy, France
Tel: (33) 1-47-56-70-00
Website: www.loreal.com
Sales: $11.8 billion


SALES: $11.8 billion for cosmetic and dermatological products. Corporate sales: $12.17 billion. Net profit: $1.08 billion.

KEY PERSONNEL: Lindsay-Owen Jones, chairman and chief executive officer; Beatrice Dautresme, executive vice president, strategic business development; Giorgio Galli, executive vice president, corporate communications and external affairs; Jean-Francois Grollier, executive vice president, research and development; Marcel Lafforgue, executive vice president, production and technology; Jean-Jacques Lebel, president, professional products; Patrick Rabain, president, consumer products; Michel Somnolet, executive vice president, administration and finance; Francois Vachey, executive vice president, human resources; Gilles Well, president, luxury products.

MAJOR PRODUCTS: Hair care, skin care, sun care, color cosmetics, toiletries and fragrances marketed under such brand names as Biotherm, Cacheral, Carson, Helena Rubinstein, Lancome, Lanvin, La Roche-Posay, L'Oreal, L'Oreal Paris, L'Oreal Professionnel, L'Oreal Perfection, L'Oreal Kids, Kerastase, Redken, Inne, Laboratoires Garnier, Giorgio Armani, Harley Davidson, Matrix, Maybelline, Jade, Gemey Paris, Jean-Louis David, Dop, Cadonet, Jacques Dessange, Ralph Lauren, Redken, Soft Sheen and Vichy.

NEW PRODUCTS: Biomedic (acquisition), Colorama (acquisition); L'Oreal Professional--Kerastase Oleo Relax, Maji Lift, Liss Extreme, Matrix Biolage Fortifying System; Consumer Products--L'Oreal Open and Gamier Lumia colorants, Maybelline Water Shine Diamonds makeup, L'Oreal Intensifique mascara, L'Oreal Body Expertise body care and Elseve Regenium shampoo; Luxury Products--Lancome Miracle Homme, Absolue skin care. To be launched: Giorgio Armani Sensi fragrance.

COMMENTS: It was another record year for the world's largest beauty company. In fact, 2001 represented the 17th consecutive year of growth. Corporate sales rose 8.4%, while cosmetics sales increased 8.7%. Fourteen brands account for more than 92% of the group's cosmetic sales. Within the cosmetics business, sales of consumer products rose 8% to account for 54.4% of sales, luxury product sales rose 4.9% (26.5%), professional product sales were up 19.3% (13.5% of sales) and sales of active cosmetics was up 13.6% to 4.9% of sales.

By region, Western Europe accounted for 49.1% of cosmetics sales, followed by North America (31.8%) and rest of the world (19.1%).

Although sales in North America slowed, growth in Western Europe, L'Oreal's biggest market, more than made up for it. Moreover, new markets, which represent nearly 20% of total cosmetic sales, continued to race ahead. For example, sales in Russia surged 53%, China rose 23%, Brazil, 29%; Thailand, 34% and India, 23%. L'Oreal now operates in 130 countries and business is booming in all developing regions. For instance, sales in Asia (outside Japan) rose 17% last year. At the same time, sales in Latin America were up 14% and rose 21% in Eastern Europe.

Last year, L'Oreal made two key acquisitions. In May, it strengthened its product portfolio in dermo-cosmetics with the acquisition of Biomedic, a leading brand used in aesthetic dermatology and plastic surgery. Biomedic is the No. 1 brand in the U.S. and is available in more than 20 countries. In July, L'Oreal improved its position in Latin America with the acquisition of Colorama, which markets the No. 1 mass market nail enamel in Brazil.

In a key personnel move, last fall, Jean-Paul Agon succeeded Guy Peyrelongue as president and chief executive officer of L'Oreal USA, the group's largest affiliate.

Last year, L'Oreal spent nearly $383 million on research and development--approximately 3% of consolidated sales. The company had 47 factories worldwide at the close of 2001, 88 distribution centers and 14,500 employees at manufacturing sites who churned out 3.4 billion units. In fact, 94% of the products sold by L'Oreal were made in the group's factories.

By division, professional product sales rose 19.3% to $1.6 billion. Colorants accounted for 41.6% of sales, followed by shampoos and hair care (38%) and styling and waves (20.4%). Growth within the division was driven by colorant and highlight services, new hair care technologies, such as Oleo-Relax by Kerastase, and the new Tecni.art styling line. Sales rose 9.6% in Europe and 55.3% in North America. In the rest of the world, sales increased just 2% due to currency fluctuation.

Consumer product sales rose 8% to more than $6.4 billion. Hair care accounted for 54.4% of sales, followed by makeup (27.8%), skin care (11.8%), perfumes (2.1%) and other (3.8%). Only perfumes reported a decline in sales, falling 1.1%, reflecting the overall malaise of the fragrance sector. L'Oreal Paris is a powerhouse around the world in a number of categories. For instance, its Elseve is the No. 1 hair care brand in Europe, while Studio Line (hair styling) and Plenitude (skin care) are the No. 1 brands in the world.

Sales within the luxury products division rose 4.9% to $3.14 billion. Perfumes accounted for 42.3% of sales, followed by skin care (34.2%) and makeup (23.5%). Sales of Lancome increased 5.1%, due to the successful launch of Absolue skin care cream and the addition of several SKUs to the Vinefit franchise. Sales of Biotherm products jumped 11%. The biggest gains for Biotherm were in Asia (up 53%), travel retail (up 24%), Japan (14%) and Italy (12%). L'Oreal credited the increase in Biotherm sales to the success of Age Fitness, an active anti-aging product with pure olive leaf concentrate, the large-scale launch of Aquasport and the introduction of Aquathermale mineral mud and moisturizing cream.

The active cosmetics unit, which includes the Vichy and La Roche-Posay brands, recorded a 13.6% rise in sales to $578 million. In addition to the acquisition of Biomedic, the division opened new subsidiaries in Thailand, Slovenia, Croatia and Venezuela, and introduced the Vichy brand in Brazil and Mexico. Global expansion is key for this division, as Western Europe accounted for nearly 78% of sales last year.

For the first quarter of 2002, L'Oreal's sales rose 9.3% to nearly $3.3 billion. Cosmetics sales increased 9.6% and dermatology sales jumped 27.7%.

In June, L'Oreal and Nestle announce the signing of an agreement for the creation of a joint company called Laboratoires Inneov. The company's mission is to develop the market for cosmetic nutritional supplements on a global basis. The company, which is owned 50% by L'Oreal and 50% by Nestle, will have its headquarters in France. The aim of such nutritional supplements, the results of research efforts, is to improve the quality of skin, hair and nails by supplying nutrients essential to their physiology. Nestle, the food giant, owns a majority stake in L'Oreal.

Also in June, Lindsay Owen-Jones, L'Oreal chairman and chief executive officer, was named "Best European Manager" by Spanish economic magazine Futuro. The award recognizes not only the achievements of the preceding year, but also the accomplishments of an entire career. "What touched me most, is that this award is a truly European Prize because I am a real European," declared Mr. Owen-Jones during the award ceremony.

On July 11, L'Oreal said second quarter revenue rose 3.4% to $3.67 billion. For the six months, sales rose 6% to $7.3 billion.

This fall, Giorgio Armani will launch Sensi, a new women's scent. A global rollout is planned for the first six months of 2003. Sensi's U.S. debut is slated for the spring. The fragrance, developed by Firmenich, has top notes of kaffir lime and cassie flower. Middle notes include cape jasmine and barley and base notes feature palisander wood. Sensi eau de parfum will be available in two sizes--50 ml ($58) and 100 ml ($80).
3
Kao Corp.
1-14-10, Nihonbashi-Kayabacho
Chuo-ku, Tokyo, Japan
Tel: (81) 3-3660-7080
Website: www.kao.com
Sales: $5.2 billion


SALES: $5.2 billion for personal care, home care and hygiene products. Corporate sales: $6.3 billion. Net income: $416 million for the year ended March 31, 2002.

KEY PERSONNEL: Takuya Goto, president and chief executive officer; Toshio Hoshino, senior executive vice president and president, international consumer products; Akio Tsuruoka, executive vice president, global purchasing; Shozo Tanaka, executive officer, president, global personal care; Nobuatsu Higuchi, executive officer, president, greater China; Naotake Takaishi, executive officer, senior vice president, global R&D; Motoki Ozaki, executive officer, president, global fabric and home care.

MAJOR PRODUCTS: Laundry and cleaning products--Attack, Just, Bio Beeds and Zav detergents; Smoother spray starch; Humming 1/3 and Touch fabric softener; Haiter bleach; Quickle Wiper, Quickle toilet bowl cleaner and Quickle Wiperfloor car, New Beads; Family and More dish-washing detergents; Foaming cleanser; Magiclean household cleaner; Tsuyadashi Mypet floor cleaner; Haiter Mold Remover, Haiter Kitchen Cleansing Foam, Glass Quickle cleansing kit for windows. Personal care--Lavenus hair care; Merit, Essential, Jenne shampoos and conditioners; Biore facial cleansers; Blaune semi-permanent hair color; Sofina Medicated Whitening skin care; Sofina Aube makeup; Clear Clean toothpaste; Bub bath additives; Liese Excellent hair styling product; Jergens skin care and Curel skin care.

NEW PRODUCTS: Personal care--Biore Moisture Care Lotion, Biore Eye Makeup Remover, Blaune Aroma hair color with Easy Comb and Bub Cherry Blossom Scented; Household care-Family Power Gel, Kitchen Wonder Drain Slime Remover, Haiter Mildew Remover Strong, Quickle for the Range and Quickle Wiper for the Carpet; Sofina cosmetics--Est powder makeup foundation and Base Nuance base foundation and Wrinkle Seraty Essence Gel.

COMMENTS: Net sales of consumer products (excluding Sofina cosmetics) rose 3% to more than $4.7 billion. By segment, sales of personal care products declined 2.2%, laundry and cleaning product sales dropped 0.9% and hygiene and others increased 4.1%.

Although sales in Japan declined 0.6% during the year, international sales were up due to the addition of PT. Kao Indonesia as a new consolidated subsidiary, the influence of a weaker yen and the contribution of new products in North America and Europe. Actual like-for-like growth in sales on a local currency basis was 1.3%.

Personal care sales were boosted by the introduction of several new products, including Biore Moisture Care Lotion, Merit hair care and additions to the Bub bath additives and Blaune hair color lines. However, the effect of declining prices and product item reductions led to the 2.2% decline in sales.

Household product sales declined slightly and Kao Named it on a shrinkage in the gift market. In addition, deflationary pressure forced prices lower and competition intensified. Still, there were some bright spots. Kao dramatically improved Attack laundry detergent to strengthen the brand. Home cleaning detergent, Emal, and mildew remover categories gained the top spot in their respective categories. Sales of Kao cosmetics sold under the Sofina brand rose 2.2% to nearly $559 million--that's a positive sign considering prestige cosmetics sales continued to decline in both volume and value, according to Kao. Sales of Est, which is marketed exclusively through department store channels, were especially strong. Sales of Sofina products were boosted by such efforts as stepped-up basic care and UV care counseling in department stores. In addition, the launch of Wrinkle Seraty, a new Sofina product, won solid customer support.

In February, Kao acquired KMS Research to strengthen its base for hair care. business in the U.S. and Europe.

For the fiscal year ended March 31, 2003, Kao expects severe market conditions in volume and value terms to continue in Japan. To compete in this mature market, Kao said it will focus on developing and nurturing strong brands backed by aggressive marketing tactics. Outside Japan, Kao said it will make aggressive efforts in the rapidly growing market in China, as well as Taiwan and ASEAN countries. The North American personal care business is expected to grow, following the successful launch of Jergens Naturally Smooth skin care lotion and the continued growth of Ban antiperspirants and deodorants. Also, the U.S. subsidiary of Goldwell GmbH is expected to expand sales of the Elumen hair colorant, which debuted in the spring. The company also expects a synergistic effect from KMS companies in the U.S. and UK.

As a result, net sales in Japan are expected to remain stagnant, while the company is forecasting growth from overseas operations. Net sales are expected to rise 3.7% and operating income will increase 2%, assuming exchange rates of $1 to 130 yen.
4
Reckitt Benckiser plc
103-105 Bath Road
Slough, Berkshire, SL1 3UH, UK
Tel: (44) 1753-217800
Website: www.reckittbenckiser.com
Sales: $4.7 billion


SALES: $4.7 billion for household and personal care products. Corporate sales: $5 billion. Net income: $517 million.

KEY PERSONNEL: Bart Becht, chief executive officer; Freddy Caspers, executive vice president, rest of world; Colin Day, chief financial officer; Tony Gallagher, senior vice president, information services; Alain Le Goff, executive vice president, supply; Elio Leoni-Sceti, executive vice president, category development; Frank Ruether, senior vice president, human resources; Erhard Schoewel, executive vice president, Western Europe; Ken Stokes, executive vice president, Americas.

MAJOR PRODUCTS: Surface care--Lysol, Detox and Sagrotan disinfectants; St. Marc and Veja general purpose cleaners; Harpic lavatory cleaners; Mr. Sheen and Poliflor polishes and waxes; Brasso, Easy Off and Lime-A-Way specialty cleaners. Fabric care--Ror and Quanto fabric softeners; Napisan, Spray `n Wash and Vanish fabric treatments; Woolite fine fabric; Colon and Dosia laundry cleaning and Calgon water softener. Dishwashing--Calgonit, Electrasol, Finish and Jet-Dry dishwashing products. Home care--Air Wick and Wizard air care products; Mortein and d-Con pest control. Health and personal care--Dettol antiseptic; Kukident and Steradent denture care; Veer depilatories.

NEW PRODUCTS: Fabric care Calgon Gel; Health and personal care--Veet Aqua, Dettol Hygienic Showerfoam; Home care--Airwick Click.

COMMENTS: Corporate sales rose 7% and net income increased more than 13%. By product category, fabric care sales rose 6% to $1.17 billion. The company credited the gains to wide acceptance of Calgon in Eastern Europe and the launch of Calgon Gel in Western Europe. Fabric treatment added market share in Western Europe, North America and Australia/New Zealand. Laundry detergent sales were up sharply in Western Europe, offsetting the significant impact of falling prices in China.

Surface care product sales rose 5% to nearly $1.3 billion. Sales of Lysol rose in North America, thanks, in part, to the launch of surface care wipes. Harpic lavatory care benefited from the introduction of in-bowl gel, Powerfoam and tablets.

Dish washing revenues rose 7% to nearly $652 million. The category received a boost from the launch of Calgonite 3-in-1 across Western Europe. In North America, the rollout of Electrasol 2-in-1 displayed good results.

Home care sales soared 35% to $721 million, due to very strong growth in air care and pest control and two key acquisitions. Air care benefited from higher demand in North America for Wizard electricals, where market share more than tripled its level of early 2000. In Europe, air care rose on the strength of Air Wick Crystal Air and the relaunch of electricals. Finally, the category was successfully launched in Eastern Europe. Growth in pest control sales came from market share gains of Mortein in Australia and the rollout of the category in China and Eastern Europe.

Health and personal care sales rose 8% to $721 million. The biggest contributors to the growth were depilatories and antiseptics. Sales of depilatories rose due to the European launch of Veet Aqua. Dettol antiseptic grew strongly in Asia, Africa and the Middle East behind new products such as Dettol Hygienic Showerfoam, talc and a new soap for sensitive skin.

By region, Western Europe accounted for 40% of corporate sales, followed by North America (31%), Asia Pacific (12%), Latin America (7%) and the rest of world (10%).

For the first quarter of 2002, sales rose 5% to $1.2 billion and net income jumped 30% to $99.8 million. The company credited the gains to the success of recent initiatives, such as Calgonit & Finish 3-in-1 tabs, Electrasol 2-in-1 tabs in automatic dishwashing and Airwick Click Spray and Crystal Air air care.

"Reckitt Benckiser made a strong start to 2002," said Bart Becht, chief executive officer. "While emerging markets continued to show little or no momentum, this was more than offset by very good growth in Western Europe and North America, due to our focus on new product initiatives for these markets. This has been leveraged into faster profit and cash flow growth through the success of our cost optimization programs."

For the full year, Mr. Becht said the company should meet its target of 4-6% growth in net revenues and 12-15% growth in net income, both at constant exchange.
5
Henkel KgaA
D-40191 Dusseldorf
Germany
Tel: (49) 0-20-11-797-1
Website: www.henkel.com
Sales: $4.57 billion


SALES: $4.57 billion for laundry and home care products and cosmetics and toiletries. Corporate sales: $11.5 billion. Net earnings: $479 million.

KEY PERSONNEL: Dr. Ulrich Lehner, president and chief executive officer; Dr. Klaus Morwind, executive vice president, laundry and home care; Prof. Dr. Uwe Specht, executive vice president, cosmetics and toiletries.

MAJOR PRODUCTS: Detergents and cleansers--Persil, Weisser Raise, Henko, Dixan, Spee and Fakt heavy duty detergents; Vernel, Perwoll and Few fabric softeners; Sil, Saptil, Wipp and Cid special detergents; Spee laundry and cleaning products, Pril and Pril balsam hand dishwashing liquids; Somat automatic dishwashing detergent; Dor cleansers; Ata scouring powders; Sofix, Sapur, Maga Sidlin and Bidd household cleaning detergents; Cosmetics and toiletries--Kaloderma and Bac toiletries, Fa deodorants, foam bath, shower gel, body lotion and soap; Action, City Man and Poly hair care; Schwarzkopf cosmetics, body care and hair care; Schauma, Drei Wetter Taf and Gliss hair care, Dep and L.A. Looks hair care; Henkel also markets institutional and industrial hygiene products.

NEW PRODUCTS: Home care--Black Magic detergent, Gel detergents under a variety of brand names; Toiletries--Fa Wellness Systems; Personal care Vision hair color; Smooth Express.

COMMENTS: It was a year of milestones for Henkel. In 2001, the company celebrated its 125th anniversary and sold off two business units. The first to go was Cognis, Henkel's specialty chemical unit. On Nov. 30, 2001, Henkel sold Cognis go an investment group including Permira, GS Capital Partners and Schroder Ventures. Later, Henkel sold its interest in the Henkel-Ecolab joint venture back to Ecolab. Still, Henkel will share in the success of Ecolab, since its equity in the St. Paul, MN-based company amounted to 28.4% as of Dec. 31,200l. Henkel used the proceeds from the two sales to reduce debt.

On the year, laundry and home care sales increased nearly 9% to $2.73 billion and cosmetic and toiletries sales increased just under 3% to nearly $1.85 billion. Corporate sales rose 2% and net earnings increased 7%.

Gains in the laundry and home care sector were driven by improved market share in Europe. At the close of 2001, Henkel had a 22% share in Europe and was the market leader. The company also strengthened its positions in Central and Eastern Europe and in the Middle East. Results were also boosted by the acquisitions of Pemos in Russia and the Viva brand in Mexico. However, a currency crisis in Turkey, higher raw material costs and heavier investment in Mexico, Algeria and India, all hurt earnings. During the year, Henkel terminated its dry-cleaning JV with Dial. Henkel also made a big investment in a dishwasher detergent plant in Foetz, Luxembourg.

More specifically, sales of heavy-duty detergents rose 16%. Results were helped by the introduction of gel detergents, as well as the pan-European launch of Megaperls and Tabs highly concentrated detergents. Outside Europe, Henkel expanded its laundry and home care sales by more than 50% as a result of acquisitions and organic growth.

Sales of color cosmetics boosted results in the cosmetics and toiletries business. Hair salon sales also contributed to the gains. Henkel said it recorded strong growth in the Benelux countries, Italy, Spain and Turkey. However, Turkey's currency crisis dragged down results. Schwarzkopf & Henkel's sales were boosted by the introduction of innovative hair colorants. For example, in Germany and Austria, the company introduced Vision, a line of premium colorants. Other hair care lines were extended; i.e., the Schauma brand added new shampoos, rinses and treatments and the Gliss Kur series was extended with care lines for fine and normal hair. In the toiletries sector, Fa strengthened its position as the No. 2 brand in the European body care category with the introduction of Fa Wellness, a line of shower gels and body lotions that are said to impart a feeling of well-being.

Last year, Henkel increased R&D spending by 7% to nearly $304 million.

For 2002, Henkel expects operating profit to improve at least 10%, due to its new corporate structure sans Cognis and Henkel-Ecolab. In the first quarter 2002, the Henkel Group increased sales, compared with the prior-year quarter, based on the ongoing businesses, by 3.9% to nearly $2.1 billion. Operating profit (EBIT) increased 3.1% over the same period last year, to $141 million.

The laundry and home care business sector had a good first quarter. Aside from an increase in sales of 3.8%, its operating profit was 29.1% above the year-ago level. All three business units--heavy-duty detergents, special detergents and household cleaners--reported an increase in sales and a rise in operating profit.

The cosmetics/toiletries business sector achieved an exclusively, organically driven increase in sales of 2.3% in the first quarter. Operating profit improved significantly--by 35.5%--over the same quarter last year. There were particularly high increases in profit reported in the UK, France, Turkey, Russia and North America.
6
Shiseido Company Ltd.
5-5, Ginza 7-chome
Chuo-Ku 104-8010 Tokyo Japan
Tel: (81) 3-3572-5111
Website: www.shiseido.co.jp
Sales: $4.4 billion


SALES: $4.4 billion. Net loss: $165.8 million for the year ended March 31, 2002.

KEY PERSONNEL: Akira Gemma, chairman; Morio Ikeda, president and chief executive officer; Shigeo Shimizu, vice president/corporate senior executive officer; Sadao Abe, corporate senior executive officer; Osamu Hosokawa, corporate senior executive officer.

MAJOR PRODUCTS: Skin care, cosmetics, sun care, fragrances and toiletries sold under the Shiseido, Carita, Za, Zotes, 5S and Beaute International brands.

NEW PRODUCTS: Whitess Recharge White, Pure Mild China, Whitia, Tessera Koi cologne, Aura Science joint venture with Limited Brands.

COMMENTS: Consolidated sales dropped less than 1% in local currency and net losses were cut in half. The company said consolidated net sales remained close to the previous year's level, as favorable overseas sales, especially in the mainstay cosmetics sector, compensated for struggling toiletries operations.

The tough times continue for Shiseido, which is struggling due to a weak domestic market. To combat this, the company has undertaken some major operation and management reforms. Specifically, Shiseido pursued marketing reforms and supply chain reforms covering all stages of its business, including product development to production, distribution and sales. Through these reforms, Shiseido plans to fundamentally transform its cost structure and strengthen its earnings power.

In corporate management, Shiseido tackled management structural reforms to reinforce corporate governance. During the year the company introduced an executive officer system to clarify lines of responsibility and authority in business execution and strengthen decision-making and supervisory functions of the board. A renumeration committee and advisory board were established to further raise management transparency and impartiality.

During the year, Shiseido continued to promote the Shiseido Skincare House concept, which is reflected in all aspects of its business including product development, advertising and promotion and over-the-counter customer interface. Furthermore, the company continued to promote brand strategy, centering on the Shiseido corporate brand, in various countries throughout the world.

Outside Japan, Shiseido operates in three major markets: Europe, the Americas and Asia-Pacific. The company reinforced the functions of these operations to create a faster and more responsive business structure. In China, Shiseido set up the China Strategy Office and established an R&D facility in Beijing to focus on Chinese medicine.

Although sales were down last year, the company said there were several product successes. For example, the top-end Cle de Peau Beaute brand registered strong sales in and out of Japan. In chain stores, Shiseido added highly functional items to the Benefique line, which is sold exclusively in cosmetic chain-store outlets. Successful new product introductions included Whitess Recharge White, a skin-lightener for all-day use. Elsewhere in Asia, Shiseido introduced Pure Mild China, a skin care brand for the growing Chinese self-selection market and in South Korea, Thailand and Singapore, the company introduced Whitia, another skin-lightening product.

Just last month, Shiseido opened Shiseido La Beaute in Paris under direct management. Shiseido La Beaute is positioned as the focal point of the Shiseido brand image to convey the company's philosophy, along with gathering current and future information about Shiseido in Europe. In addition to display and sales of Shiseido cosmetics, the new space includes separate areas for trying out makeup products, aesthetic treatments, events and other purposes in order to provide a high level of customer service and gather the latest customer information in Europe.

In the new fiscal year, the company said it will increase research in four key areas: anti-aging, skin-lightening, hair growth and ultraviolet radiation.

Shiseido has set three management strategies to boost its slumping domestic cosmetics business. Specifically, the company intends to:

* Accelerate sales counter' focus reforms;

* Reinforce group-wide earnings power and

* Formulate growth strategies designed for dramatic progress in the 21st century.

To accelerate sales counter reforms, Shiseido said it will speed up marketing reforms currently under way in order to solidify its position as the leader in the Japanese cosmetics market. The company will also shift to proposal-based sales techniques and develop strong brands and products. In addition, more POS terminals will be added at retail, and the company said it is committed to supply chain reforms to eliminate product depletion on store shelves and inventory problems.

To improve earnings, Shiseido said it will step up reforms of its cost-structure and rigorously pursue higher overall cost efficiency and cost benefits.

Finally, new growth strategies will include renewed emphasis on restoring Shiseido's competitive edge in Japan, even as it positions overseas business to boost growth of the entire group. In particular, Shiseido will focus on Asia and the rapidly growing Chinese market.
7
Beiersdorf AG
Unnastrasse 48
D-20245 Hamburg, Germany
Tel: (49) 40-4909-0
Website: www.beiersdorf.com
Sales: $2.57 billion


SALES: $2.57 billion for cosmetics and toiletries. Corporate sales: $3.9 billion. Net income: $248 million.

KEY PERSONNEL: Dr. Rolf Kunisch, chairman of the executive board; Rolf-Dieter Schwalb, executive board member, finance/controlling; Uwe Wolfer, executive board member, cosmed division.

MAJOR PRODUCTS: Skin care products marketed under such brand names as Nivea, 8x4, Atrix, Eucerin, Labello, La Prairie and Juvena.

NEW PRODUCTS: Nivea Skin Reflecting Lotion and Nivea Body Milk with almond oil, 8x4 deo compact; Nivea Beaute gloss lacquer and Nivea Beaute Colour & Calcium; Nivea Sun Kids Colour spray; Labello Mango and Pineapple.

COMMENTS: Group sales rose more than 10% last year. The cosmed division, which develops, produces and markets cosmetic products for skin care and personal care, accounted for 65.1% of corporate sales last year. Sales within the Cosmed division rose 14.1%.

By region, cosmetic sales in Germany rose 8.6% to more than $707 million. European cosmetic sales outside Germany jumped 20.7% to more than $1.2 billion. Sales of cosmetics in North and South America grew 12.7% to about $405 million and cosmetic sales in Africa/Asia/Australia rose 4.3%.

Nivea is the best-selling skin care brand in the world and shows no signs of slowing down. In fact, sales of Nivea rose 17% last year to nearly $2.2 billion. Beiersdorf noted that growth was achieved in all Nivea brand groups and in all regions. But particularly rapid growth was registered by Nivea hair care, Nivea for Men, Nivea Beaute and Nivea Deo.

In skin care, Nivea achieved market leadership in Australia and Turkey. In facial care, Nivea Visage and Nivea Vital recorded double-digit growth and achieved market leadership for the first time in Romania and Norway. Sales were boosted by the debut of Nivea Visage Q10 Plus and Nivea Visage Aqua Beauty and the revised Nivea Vital line. Above-average growth was achieved in the UK, Norway and Spain.

The brands 8x4 and Nivea Deo added share in the deodorant market. In fact, Nivea Deo became the leading brand in Bulgaria, Portugal, Poland and Turkey.

Nivea Beaute managed to add share in the highly competitive color cosmetics market through the introduction of Gloss Lacquer and Colour & Calcium. The company said growth in Belgium, Denmark, France and Switzerland was especially strong.

Nivea Baby recorded double-digit growth on a worldwide basis. During the year, Nivea Baby debuted in Poland and good growth was achieved in Italy, Croatia, Switzerland, Eastern Europe and Latin America.

Nivea for Men made a successful debut in the U.S. last year and the brand became the market leader in Turkey.

The Nivea sun care franchise also grew, following the launch of Nivea Sun Kids Colour spray with SPF 30. According to Beiersdorf, the brand added to its leading share in Europe and recorded above average sales growth in Brazil, Chile, Mexico, Japan, Korea and Thailand.

Sales of Nivea bath and shower products also recorded double-digit growth, spurred by big gains in Eastern Europe and in Africa/Asia and Australia.

The company acknowledged that the duty-free segment was particularly difficult in 2001. Nevertheless, La Prairie maintained the double-digit growth it has been achieving for years.

Effective, January 1, the Beiersdorf affiliate Juvena/La Prairie, Zurich, took over the hair care range of Marlies Moller, Hamburg. Sales of the brand this year are expected to total around $4 million.

On April 1, Beiersdorf increased its stake in Florena Cosmetic GmbH, Waldheim/Saxony to 100% (from 24.9%). This acquisition completes the longstanding business relations between the two companies. Last year, Florena achieved sales of $47 million, an increase of 23.1% over the previous year.
8
LVMH
30, Avenue Hoche
75008 Paris, France
Tel: (33) 1-44-13-22-22
Website: www.lvmh.com
Sales: $1.97 billion


SALES: $1.97 billion. Group sales: $10.8 billion.

KEY PERSONNEL: Bernard Arnault, chairman and chief executive officer; Antonio Belloni, group managing director; Nicolas Bazire, development of acquisitions; Patrick Choel, perfumes and cosmetics.

MAJOR PRODUCTS: Cosmetics and fragrances sold under the Parfums Givenchy, Parfums Christian Dior, Parfums Guerlain, Parfums Kenzo, Make Up For Ever, Hard Candy, BeneFit, Bliss, Urban Decay and Fresh brands. The company also sells a range of products through its Sephora retail chain.

NEW PRODUCTS: Christian Dior--Higher men's fragrance, Addict lipstick, IOD and Hydra-Move skin care; Guerlain--Substantific anti-aging skin care, Aroma Allegoria aromatherapy, Issima Success Laser wrinkle reducer. Parfums Givenchy--Hot Couture eau de toilette, Eau Torride women's fragrance, Givenchy pour Homme. Parfums Kenzo--Kenzoki well-being line. To be launched: Christian Dior-Addict fragrance, DiorSkin makeup and Dior Prestige 20+1 anti-aging skin care.

COMMENTS: LVMH competes in the perfumes and cosmetics sector through the French fashion houses of Christian Dior, Guerlain, Givenchy and Kenzo. In addition, the company, in recent years, has purchased a number of independent cosmetic companies in the U.S., including Make Up For Ever, Hard Candy, BeneFit, Bliss, Urban Decay and Fresh. Most recently, in October; LVMH bought a 50% stake in Italy's Acqua di Parma.

Last year, sales of cosmetics and toiletries increased 8% in euros. But net sales of these products were up 30% during the past two years. In 2001, fragrances accounted for 61% of sales, followed by cosmetics (22%) and skin care (17%).

Despite a fourth quarter decline in 2001 due to the terrorist attacks in the U.S., LVMH continued to roll out new products and support them with advertising. Parfums Christian Dior turned in an excellent performance last year, according to LVMH, with sales topping one billion euros for the first time. Dior posted its best results in France, Italy, Spain and the U.S. with gains in perfume, makeup and skin care. This fall, Dior will expand the Addict line of cosmetics with the introduction of an Addict fragrance. The scent, developed by Firmenich, includes top notes of silk tree flower and mandarin leaf, middle notes of orange blossom and night queen flower and a base of bourbon vanilla absolute, mysore sandalwood and tonka bean. The Addict scent will include a 1-oz. parfum spray ($150), 1.7- and 3.4-oz. EDP sprays ($53 and $72, respectively) and perfumed body moisturizer ($25).

The Guerlain unit recorded a slight decline in sales last year. The company said Guerlain's sales were climbing until Sept. 11, but the terrorist attack dampened duty-free sales. Still, the brand grew in France and Japan, Guerlain's largest markets. The Issima skin care line performed particularly well following the introduction of its Hydramythic stick and Substantific, an anti-aging line. In January, Guerlain launched Issima Success Laser, a anti-wrinkle product, which includes two patented ingredients and a complementary Resting Phase cream.

Results within the Parfums Givenchy brand were down as a result of Sept. 11 and the U.S. recession. This fall, Givenchy will unveil a new fragrance by designer Kenneth Cole.

There was good news all around within the Parfums Kenzo division. Due to the tremendous success of Kenzo's Flower fragrance, the division posted "extraordinary growth in sales and earnings for the second consecutive year," according to the company.

Despite difficulties in the U.S., Bliss, BeneFit, Fresh, Hard Candy and Urban Decay had an extraordinary year. Combined sales of these brands rose nearly 20% in 2001. During the year, Bliss opened its first European spa in Great Britain. This year, a Bliss counter debuted in Galeries Lafayette in Paris. In 2001, Fresh expanded its business in the U.S. and now plans to expand to Great Britain and Korea.

For the first quarter of 2002, corporate sales rose 8% to $2.57 billion. However, sales of perfumes and cosmetics declined slightly from $440 million to $431 million.
9
Wella AG
Berliner Allee 65
64274 Darmstadt, Germany
Tel: (49) 0-6151-34-0
Website: www.wella.com
Sales: $1.95 billion


SALES: $1.95 billion. Net profit: $57.6 million.

KEY PERSONNEL: Dr. Heiner Gurtler, chairman of the management board Wella AG, managing director of cosmetics and fragrances; Fritz Kuhn, member of the management board/professional division; Alfred Kramer, member of the management board/new business and human resources; Axel Dietz, member of the management board/consumer division; Martin Tresser, member of the management board/finances; Dr. Thomas Clausen, executive vice president, research and development; Manfred Feucht, executive vice president, supply chain.

MAJOR PRODUCTS: Professional hair care--Wella, Belvedere, Kadus, Londa, Sebastian International and Tondeo; Professional color--Koleston Perfect, Color Touch, Color Fresh, Blondor, EOS; Professional care--System Professional, SP Sun, SP Just Men, Lifetex, Lifetex Aroma; Professional styling--High Hair, Performance, SP Styling and Inform; Professional perm--Perform, Innowave, Concord; Retail--Wella, Kiessling and Londa. Cosmetics and fragrances sold under the Cosmopolitan Cosmetics umbrella. Brands include Alfred Dunnhill, Gucci Parfums, Montblanc, Rochas, Mexx, Marc O'Polo, Naomi Campbell, Gabriela Sabatini and 4711.

NEW PRODUCTS: Tony & Tina cosmetics (acquisition), Graham Webb hair care (acquisition), Johnson Products hair care (acquisition) and Nicky Clarke hair care (acquisition). To be launched: a new fragrance with spokesmodel Cindy Crawford.

COMMENTS: Sales rose nearly 13% last year. The company credited the gain, in part, to the successful implementation of its new corporate strategy. Wella insists that the reorientation of the group into three divisions--professional, consumer and cosmetics and fragrances--has released new energies.

The professional business is the No. 2 professional hair care company in the world (behind L'Oreal). Last year, the company acquired the Graham Webb business, an acquisition that Wella insists will help improve marketing, production and research synergies.

The consumer division (hair care for the end-user) also made key acquisitions. First, it acquired Johnson Products early in 2001 and later, it bought the hair care line of the English celebrity hairdresser Nicky Clarke. Wella hopes these acquisitions will help move the division toward the higher-priced segment of the mass market.

The cosmetics and fragrances division, housed under the roof of Cosmopolitan Cosmetics GmbH, remained Wella's fastest-growing division. The division remains committed to focusing on the faster-growing, higher-priced prestige segment.

The good results have continued in 2002. First quarter sales rose nearly 11% to $657 million. All business divisions registered gains and last year's acquisitions contributed 6% to sales. The largest division in the group, Professional (51% of total sales) increased its sales by 17.3% to more than $339 million. Acquisitions contributed 10.4 % to sales.

Consumer division sales increased 3.7% to $205 million for the first quarter 2002. In particular, currency devaluations in Latin America had a negative impact on this development (-1.8%). Sales within the cosmetics and fragrances division increased 6.4% to $112 million.

By region, sales in Germany were up 3.1% and Great Britain and Eastern Europe also recorded good gains, to help European results rise 12.8% in the first quarter.

Sales surged in North America, growing 45.3% in the first quarter. The company credited the gain to the reorganization of the Wella business in North America, as well as additional sales generated by Graham Webb.

Despite the crises in Latin America, sales managed to rise slightly (0.3%). The region contributed $57.5 million, which is 8.8% of group sales. Although Argentina and Venezuela remain mired in recessions, sales in Brazil and Mexico remained strong.

Sales in the Asian/Pacific region also remained unchanged compared to a year ago and totaled $89.5 million. Japan, the most important market in the region, is suffering from sustained recession.

In forecasting results for the rest of 2002, Heiner Gurtler, chairman of the management board (CEO) of Wella AG, insisted that "the business development for 2002 will be as good as the excellent performance in the previous year."

On June 3, Cosmopolitan Cosmetics, the cosmetics and fragrance business of Wella AG, signed a purchase agreement to acquire approximately 75% of the equity of the North American cosmetics company, Noon-in-China, LLC D/B/A Tony & Tina, through its subsidiary, Intercosmetics, New York. Cosmopolitan Cosmetics' partnership with the founders of Tony & Tina possesses promising international potential, currently from a base of close to $10 million in sales.

"With the strategic acquisition of Tony & Tina we build up and extend our position in makeup and skin care using synergies with our global fragrance business," said Heiner Gurtler, chief executive officer, Wella AG. "Until now, Cosmopolitan Cosmetics has offered makeup products under the prestige brands Anna Sui and Rochas."

Tony & Tina is one of the fastest growing cosmetic brands in the prestige segment of the U.S. market. Only five years alter its founding the company already distributes its high-quality cosmetic line in 14 countries. "We're thrilled to have a new partner that supports our vision to better the world through cosmetics and to share our talents with Cosmopolitan Cosmetics and the entire Wella Group," said Christina (Tina) Bornstein, one of the cofounders of the company.

Looking long-term, Wella aims to generate consolidated sales of 5.2 billion euros (about $4.5 billion) and to achieve an EBIT margin of 13% by 2005.
10
Kanebo Ltd.
20-20, Kaigan 3-chome
Minato-ku, Tokyo 108-8080, Japan
Tel: (81) 3-5446-3111
Website: www.kanebo.co.jp
Sales: $1.8 billion


SALES: $1.8 billion for cosmetics (estimated). Corporate sales: $3.98 billion, for the year ended March 31, 2002.

MAJOR OFFICERS: Takashi Hoashi, chief executive officer and president; Takashi Miyahara, executive vice president; Tatsuo Wada, executive vice president and senior managing director of cosmetics.

MAJOR PRODUCTS: Skin care--Raphaie, T'estimo, Revue, Faircrea, Dada, Blanchir, Freshel White-C, Liftulle and Precious Turn. Makeup--Media, Kate and Vin de Peau; Hair care--Sala, Nudy, Shidenkai X.D., Crossbreed and Fila sun care products.

NEW PRODUCTS: Inner Balance cosmetics.

COMMENTS: This spring Kanebo introduced a new skin care line in Barneys, New York. The collection, called IB (Inner Balance), is aimed at young career women. Barneys will have an exclusive on IB for most of 2002, but after six months, Kanebo will expand distribution to the West Coast and Midwest. Two other Kanebo brands, EX and Sensai, are already available in Bergdorf Goodman and Takashimaya.

The renewed emphasis on New York is just part of Kanebo's strategy of boosting international sales. With the Japanese economy mired in a decade-long slump, Kanebo is determined to boost international sales, which account for just 10% of its business. The company has established joint ventures or subsidiaries in nearly 20 countries in Europe and more than 10 countries in Asia. Like many other Japanese firms, Kanebo got a late start in China, but now it has manufacturing operations in Shanghai and it also imports products from Japan.
11
Yves Rocher
3, allee de Grenelle
92444 Issy-les-Moulineaux, France
Tel: (33) 1-41-08-5500
Website: www.Yves-Rocher.com
Sales: $1.77 billion


SALES: $1.77 billion.

KEY PERSONNEL: Yves Rocher, president; Jean-Yves Usunier, vice president director general; Stephane Bianchi, director general; Philippe Derambure, chief executive officer, Yves Rocher North America.

MAJOR PRODUCTS: Pro-Retinol 100% Vegetal with Enzymes de Jeunesse, Yria fragrance and cosmetics, Pure Aromatics, Serum Vegetal, Bio-Calmille, Patch System, Plaisir Nature.

NEW PRODUCTS: Pure Aromatics line extensions; Lavande Essentielle; Plaisir Nature Fraise & Picnic Animation; Put Desir de Rose, Lys and Lilas; Ode a la Joie and Eryo. To be launched: Bio-Specific Rehydration, Regulation and Nutrition (February, 2003), Ode au reve (March, 2003), Pur Desir de Lavande (March, 2003), Spa Energie Vegetale (April, 2003), Pro-Retinol 100% Vegetal line extensions (May, 2003), Lavande Essentielle line extensions (May, 2003).

COMMENTS: Yves Rocher bills itself as the world's No. 1 manufacturer of botanical beauty products. The company's new Pur Desir de Lys, is a powdery vanilla floral fragrance. A 2-oz. EDT retails for $16. The line also includes shower gel, antiperspirant cream deodorant and perfumed soap.
12
Lion Corporation
3-7, Honjo 1-chome
Sumida-ku, Tokyo 130-8644, Japan
Tel: (81) 03-3621-6211
Website: www.lion.co.jp
Sales: $1.75 billion


SALES: $1.75 billion for household, personal care and oral care products. Corporate sales: $2.35 billion. Net loss: $105.6 million.

KEY PERSONNEL: Michinao Takahashi, president; Hiroyukii Hirashima, senior executive director, corporate planning, strategic business development, international division and purchasing; Yasuhisa Kinugasa, senior executive director, finance, public relations, investor relations, logistics and IT; Sadayoshi Fujishige, senior executive director, home products business and executive general manager, home products sales; Jun Yoshida, senior executive director, human resources, general affairs, secretariat, quality assurance and legal affairs; Masura Anpeiji, executive director and executive general manager of production; Takuma Yanagawa, executive director and executive general manager, research and technology; Shuji Yamada, executive director and executive general manager, international division; Tetsuo Yamada, executive director and director of home products; Kazuo Obu, director and executive general manager, household products; Ichiro Miyazaki, director and executive general manager, beauty care products; Toyoki Katakura, director and executive general manager, oral care products.

MAJOR PRODUCTS: Oral care (including toothpaste, toothbrash, mouthwash, breath freshener and dental needs), beauty care (shampoo, conditioner, styling products, hair restorer, men's cosmetics, soap, body soap, skin care, anti-perspirant and deodorant etc), fabric care (laundry detergent, b]each, fabric softener), home care (household cleaner, deodorizers, air fresheners, dishwashing detergent and kitchen related products).

NEW PRODUCTS: Heyaboshi Top detergent, Charmy Eki dishwashing gel, Look Kabitori household cleanser gel, whitening toothpaste, antiwrinkle fabric softener.

COMMENTS: Consolidated net sales fell 7.3%. Sales of household products dropped 6.4% and sales of pharmaceuticals (primarily oral care products) dipped 3.9%. The situation in Japan worsened in 2001 and Lion was quick to admit it. Although the overall market for daily-use consumer products showed signs of picking up, intensified competition among manufacturers and retailers had a negative impact on sales. In addition, bankruptcies of major chain retailers, as well as mergers and acquisitions, failures and closures in the wholesale sector created major problems.

To combat this, Lion implemented a new medium-term management plan--the value innovation plan--to strengthen the company's competitiveness. VIP is raising operational capabilities and leading to the development of new, high-value-added products. Moreover, company executives hope VIP will boost sales from 308 billion yen in 2001 to 380 billion yen in 2005.

More specifically VIP consists of three points:

* Focusing on core brands and aggressively launching new products,

* Reducing costs and

* Improving management by providing career development assistance and raising productivity.

Last year, Lion reduced the number of brands it markets from 57 to 51 and expects to cut that number to 40 by the end of 2002. The number of products is also being reduced from 400 at the end of 2002 to 370 by the end of fiscal 2003. Brands will be classified as either "power brands" (such as Top laundry detergent) or "emerging brands" to allow for the strategic distribution of advertising funds.

To boost sagging home product sales, Lion revamped Top, Japan's leading laundry detergent, focusing on quick stain removal. Top's packaging now includes the claim, "White like you've never seen before!" In addition, Lion introduced Heyaboshi Top, which allows clothing to be line-dried indoors without causing unpleasant odors. Lion executives insist this product is especially popular in metropolitan areas and cold regions where it is difficult to hang clothes to dry outdoors.

Last year, Lion launched a new, wrinkle-removing version of Sofuran C fabric softener. In response to fierce competition in the dish detergent segment, Lion launched Charmy Eki Gel, which is said to have superior and long-lasting cleaning capabilities. Lion also revamped Charmy V, so that it now cleans everything from tableware to hard surfaces.

Lion also boosted the cleaning performance of its household cleaners. For example, new Look Kabitori Gel eliminates the persistent mildew that forms during Japan's rainy season. The new product was a hit with consumers, surpassing sales of Lion's conventional mildew cleaner and capturing 10% of the mildew cleaner market.

Lion is the No. 1 manufacturer of oral care products in Japan and the company solidified its position by launching a whitening toothpaste. Lion is also the market leader in toothbrushes and is listening closely to the consumer to maintain its lead. For example, it changed the shape of the bristles and added new features to the handle of the Between toothbrush. Lion also relaunched the Navic toothbrush to clean hard-to-reach back teeth.

Within the beauty care category, Lion focused on three hair care lines: Emeron Aqua Pure, Soft-in-One and Shokubutsu Monogatari. During the year. Lion relaunched Emeron Aqua Pure for damaged hair, refocused its efforts on Soft-in-One, the leading 2-in-1 shampoo and conditioner in Japan, and repackaged and reformulated Shokubutsu Monogatari shampoo and conditioner.
13
GlaxoSmithKline plc
980 Great West Road
Brentford, Middlesex TW8 9GS, UK
Tel: (44) 020-8947-5000
Website: www.gsk.com
Sales: $1.6 billion


SALES: $1.6 billion for oral care products. Corporate sales: $29.7 billion. Net income: $6.37 billion.

KEY PERSONNEL: J.P. Garnier, chief executive officer; Tachi Yamada, chairman, research and development; Jack Ziegler, president, consumer health care.

MAJOR PRODUCTS: Oral care products including Aquafresh, Corega, Dr. Best, Macleans, Odol, Polident, Poligrip and Sensodyne.

COMMENTS: Following the acquisition of Block Drug in January 2001, GlaxoSmithKline is now the No. 2 manufacturer of oral care products in the world (behind Colgate-Palmolive). That purchase helped GlaxoSmithKline's oral care sales rise more than 70%. Excluding Block Drug, oral care sales rose 3%, reflecting strong growth in Europe partly offset by strong competitive pressure for Aquafresh in the U.S. market.

For the first quarter of 2002, oral care sales declined 1% to $358 million.
14
Pola Cosmetics, Inc.
2-2-3 Nishi Gotanda, Shinagawa-ku
Tokyo 141-8523 Japan
Tel: (81) 3-3494-7130
Website: www.polo.co.jp
Sales: $1.5 billion


SALES: $1.5 billion.

KEY PERSONNEL: Satashi Suzuki, chief executive officer and president; Mr. Saida, executive officer; Mr. Utsunomiya, executive officer.

MAJOR PRODUCTS: Skin care products including brands such as Evangile, Polissima, D+D, Botanex and Plenna.

NEW PRODUCTS: One's One, New Whitissimo, White Shot & Spots Clear. To be launched: Sign Solution (September, 2002).

COMMENTS: With sales of $1.5 billion, Pola is the largest direct seller of cosmetics in Japan. In fact, it is the No. 2 player in the Japanese cosmetics market, trailing only Shiseido.
15
Kose Corporation
3-6-2, Nihonbashi
Chuo-ku, Tokyo, Japan
Tel: (81) 03-3273-1511
Website: www.kose.co.jp
Sales: $1.1 billion


SALES: $1.1 billion. Net income: $49 million for the year ended March 31, 2002.

KEY PERSONNEL: Reijiro Kobayashi, chairman; Yasukiyo Kobayashi, president.

MAJOR PRODUCTS: Rutina, Grandaine and Delicane skin care lines; Cosine Decorte, Luminous and Visee color cosmetics, Predia toiletries.

COMMENTS: Sales rose 3% in local currency. Earlier this year, Kose announced it will expand Chinese distribution of its Avenir brand by 30%. Avenir cosmetics are sold exclusively in China. According to Kose, as income levels in China rise, so will demand for its products. Kose said it will improve intermediate distribution of Avenir by being more selective in its choice of wholesalers, revising contract conditions and increasing its ratio of direct retail sales.

Kose produces its Avenir brand skin care and foundation products in China exclusively for distribution in department stores. At the close of 2001, the products were available in 60 department stores, but Kose expects to expand distribution to 80 stores in 2002, primarily in the affluent suburbs of Beijing, Shanghai and Guangzhou.

Last October, Kose said it would consolidate research and development operations in Tokyo. Plans call for combining a basic research laboratory in Itabashi Ward with what is now a cosmetics R&D facility in Kita Ward. The project is expected to be completed by March 2004. When the new facility is built it will accommodate 175 members of Kose's R&D staff.
16
Chanel S.A.
135, Ave. Charles de Gaulle
92521 Neuilly-sur-Seine
Cedex, France
Tel: (33) 1-46-43-40 00
Website: www.chanel.com
Sales: $900 million


SALES: $900 million (estimated) for cosmetics, fragrances and toiletries.

KEY PERSONNEL: Alain Wertheimer, chairman; Francoise Montenay, chief executive officer and president; Arie Kopelman, president and chief operating officer, Chanel Inc.

MAJOR PRODUCTS: skin care, color cosmetics, men's and women's fragrances.

NEW PRODUCTS: Fall Color Collection (including Les Perles de Chanel Pearl Face Effects, Extracils super curl lengthening mascara, Double Contraste cheeks and lips compact, ombre unique shadowlights). To be launched: Eclat Originel Radiance Revealing Serum (October).

COMMENTS: Coco Mademoiselle made a clean sweep at the Fragrance Foundation's FiFi awards in June. It won best women's fragrance introduction of the year in the U.S., marking the first time in history that a fragrance has won the FiFi in all countries in a single year. It was the Prestige Fragrance FiFi winner in France, Germany, Spain, Italy and Great Britain, and the European Star of the Year.

Coco Mademoiselle was created by Jacques Polge, the "nose" of Chanel, who was challenged with the task of creating a fragrance that Mademoiselle Coco Chanel herself would wear if she were turning 21 in the 21st century. The result is this new original that combines a fresh oriental with a sparkling top note, rich spicy accents and warm, spicy musk.

In the skin care category, Chanel is touting the benefits of its new Eclat Originel radiance revealing serum. The product contains Pulsator, an exclusive complex of extract of seaweed (to impart radiance to skin), extract of Japanese mushroom (to revive energy with bio-nutrient concentrate) and light-reflective and corrective pigments. According to Chanel, a Doppler Laser test demonstrated a 24% improvement in cutaneous microcirculation after just one week of use and a 36% improvement after 10 weeks. A 1-oz. bottle retails for $60.

In other new product news, four toning lotions will also make their debut this month. Activateur Eclat is said to boost radiance, and contains vitamins E and C, seaweed extracts and aloe vera. Activateur Purete is an oil-controlling complex with a mushroom extract to absorb excess oil and licorice extract, amino acids and vitamins to regulate sebum. Activateur Hydratation includes phospholipids, vitamins A, C, E and B5 and aloe vera to hydrate skin. Finally, Activateur Jeunesse helps skin withstand the environments. It contains Grenoble walnut, polyphenols, amino acids, glycerin, hyaluronic acid and B vitamins. Each toner will retail for $32.50 for a 6.8-oz. bottle.
17
Amore Pacific Corporation
181, 2-ga Hangang-ro
Yangsan-gu, Seoul, Korea
Tel: (82) 2-709-6001
Website: www.amore.co.kr
Sales: $845 million


SALES: $845 million. Net income: $88 million.

KEY PERSONNEL: Sung-Whan Suh, chairman; Kyung-Bae Suh, president and chief executive officer; Byong-Won Yoo, chief financial officer; Myung-Sik Kim, director of direct selling; Ok-Sub Lee, director of R&D.

MARKETING DIRECTOR: Hae-Sun Lee.

MAJOR PRODUCTS: Skin care and makeup--Laneige, IOPE, Mamonde, Innisfree, Hera, SulWhaSoo, Lirikos, Etude. Hair and body care--mise en scene, Amos, iplip. Fragrances--Lolita Lempicka, Castel bajac, espoir.

NEW PRODUCTS: Amore Pacific skin care (24-item line including balancing fluid, hydrating fluid, vitalizing serum, refreshing serum, vitalizing mask, self refining cream, live white concentrated system); Laneige skin care (17-item line including skin refiner, water manager emulsion, moisture effect cream); SulWhaSoo Yebit makeup; SulWhaSoo SangBaek cream. To be launched: Laneige makeup advanced line (August).

COMMENTS: In January, the company changed its name from Pacific to Amore Pacific. But regardless of the name, it remains the No. 1 cosmetics manufacturer in Korea.
18
LG Household & Healthcare
LG Twin Tower, 20 Yoido-dong
Youngdungpo-gu Seoul, Korea
Tel: (82) 2-3773-7723
Website: ww.lgcare.com
Sales: $844 million


SALES: $844 million.

KEY PERSONNEL: Cho Myeong Jae, president and chief executive officer.

MAJOR PRODUCTS: Household products--laundry detergents, kitchen cleaners; Personal care--toothpaste, shampoo, soap, baby care products and cosmetics.

NEW PRODUCTS: Clinx toothpaste and Elastine shampoo.

COMMENTS: LG is Korea's No. 1 manufacturer of household cleaning products. Now the company wants a bigger share of the personal care market, which is led by Amore Pacific. To improve its position, LG is entering new product categories such as hair color and hair loss preventatives and is entering new retail channels, such as door-to-door sales, e-business, pharmacies and professional salons.

Outside Korea, LG is expanding its operations in Shanghai and Beijing. The company said it is focusing on China's high-income consumers.

In February LG received the IR52 Jang Young Shil award for its new Phytoclear-EL1 skin whitening ingredient. The award is given to the best technology products in Korea. The Phytoclear material is the key component in LG's Isa Knox White Focus. The active ingredient is extracted from Euphorbia lathyris.

For the first quarter ended March 31, sales rose 10% to nearly $234 million. The company credited the introduction of new products such as Clinx toothpaste and Elastine shampoo for the sales gain. The Isa Knox brand was among the top-selling cosmetics lines. For the full year, company executives predict sales will rise 10% to 1.22 billion won.
19
Puig Beauty & Fashion Group
Travessera de Gracia, 9
08021 Barcelona, Spain
Tel: (34) 93-400-70-00
Website: www.puig.com
Sales: $745 million


SALES: $745 million for cosmetics and fragrances. Group sales: $810 million (estimated).

KEY PERSONNEL Xavier Cano, chief executive officer; Xavier Iglesias, chief financial officer; Jorge Chumillas, vice president, information technology and controller; Carlos Iniesta, president, fragrance and personal care; Manuel Puig, president, prestige beauty brands.

MAJOR PRODUCTS: Fragrances--Carolina Herrera, Paco Rabanne, Nina Ricci, Quorum. Cosmetics--Pinaud color cosmetics and Payot skin care.

COMMENTS: Puig Beauty & Fashion Group, Spain's biggest couture and cosmetics maker, was founded in 1914 by Antonio Puig and the family still controls this privately-held firm. The acquisition of Spain's No. 2 beauty company, Myrurgia in 2000, gave Puig a position in skin care and cosmetics. Earlier this year, Puig signed a license agreement with British designer Hussein Chalayan to develop his first fragrance. The scent will not debut before 2003.
20
Groupe Clarins
4, rue Berteaux-Dumas
92200 Neuilly-sur-Seine, France
Tel: (33) 1-47-38-12-12
Website: www.clarins.com
Sales: $738 million


SALES: $738 million for cosmetics, toiletries and fragrances. Corporate sales: $770 million. Net income: $34 million.

KEY PERSONNEL: Jacques Courtin-Clarins, chairman; Maria Luisa Courtin-Clarins, vice chairman; Olivier Courtin-Clarins, vice president, research and development; Pierre Milet, vice president, finance and administration; Lionel de Benetti, vice president, operations; Patrick Bizot, vice president, international.

MAJOR PRODUCTS: Skin care, sun care, color cosmetics and fragrances sold under a variety of brands including Clarins, Thierry Mugler and Azzaro.

NEW PRODUCTS: Le Rouge lipstick, Angel Innocent fragrance, Thierry Mugler Cologne, Azzaro Pure Cedrat, Pure Vetiver and Pure Lavender fragrances, Body Lift Contour Control, One Step Facial Cleanser.

COMMENTS: Sales rose 4.6% last year. By product category, skin care represented 49.9% of sales, followed by perfumes (36.1%), makeup (9.9%) and couture (4.1%). By region, Europe, excluding France, accounted for 42.7% of sales, followed by North America (25.5%), France (17.9%), Asia (8.4%) and other (5.5%).

The company said 2001 could be segmented into three distinct periods. The first quarter was hurt by the logistical problems that occurred with the opening of a new logistics center in Amiens, France. During the following five months, sales rose 11.7%, but after Sept. 11, sales fell 1.3%.

Despite this unevenness, Clarins maintained its marketing expenses to ensure the future of its brands and that decision drove dawn income.

The new logistics site in Amiens is used to store all finished products made in the Pontoise plant, as well as the Azzaro perfumes produced by the Strasbourg plant. Amiens also dispatches the products to all group subsidiaries and makes direct deliveries to perfumeries and department stores in several European countries.

Last year, international sales represented 82.1% of consolidated sales and products are available in more than 150 countries. Clarins estimates it holds 8.3% of the global skin care market, 2.7% of the perfume market and 2.2% of the makeup market.

Clarins continues to launch new products in an aggressive manner in 2002. New Multi-Active Day Cream Protection Plus replaces Multi-Active Day Cream, which debuted in 1998. The new product is enriched with extract of Mourera Fluviatalis. The cream is said to have bio-regulating properties that leave the skin firmer, fresher and better protected. In Asia, Clarins introduced two new whitening products (White-Plus Essence and White-Plus Clarifying Soap), as well as a new men's line.

Also this year, Angel celebrates it 10th anniversary and Pure Cedat, a new fragrance from Azzaro, makes it debut.
21
Natura Cosmeticos S/A
rua Amador Bueno, 491
Santo Amaro SP CEP
04752-900 Brazil
Tel: (55) 11-5604-7655
Website: www.natura.net
Sales: $684 million


SALES: $684 million (retail).

KEY PERSONNEL: Pedro Luiz Passos, president, operations; Marcelo Araujo, vice president, innovation; Alessandro Carlucci, vice president, commercial; Philippe Pommez, vice president, international.

MAJOR PRODUCTS: Chronos skin care products, Natura Ekos personal care, Natura Mamae e Bebe products for pregnant women and babies, Natura Crianca Sitio do Pica Pau Amarelo children's toiletries, Natura Homem men's products, Natura makeup, Natura Fotoequilibrio sun care products.

NEW PRODUCTS: Additions to the Natura Ekos line including Mate Verde liquid soap, scrub soap in bar and triphasic oil, Cacau bar soap and triphasic oil, Maracuja (passion fruit) soap, Andiroba liquid soap and body lotion, Cumaru and Copaiba home fragrances; Natura Crianca Sitio do Pica Pau Amarelo children's toiletries; Faces de Natura makeup; Sintonia men's and women's fragrances; Natura Mamae e bebe bath oil and body lotion for women, rash protection cream, moisturizing lotion for babies and moist toilettes. Natura Fotoequilibrio moisturizing strips and moisturizing foam and Natura Volume lipstick, Automatic eye shadow and stick foundation.

COMMENTS: Sales rose 14% last year in local currency. The company's 300,000 sales consultants sold 82 million units.
22
Paterson Zochonis Plc
Cussons House, Bird Hill Lane
Stockport, SK3 0XN, UK
Tel: (44) 061-2367111
Website:
www.patersonzochonis.com
Sales: $580 million


SALES: $580 million. Net income: $43.1 million for the year ended May 31, 2001.

KEY PERSONNEL: A.J. Green, chairman; C.N. Green, chief executive officer.

MAJOR PRODUCTS: Laundry--Jet, Duck, Ushindi, Zip, Duo, E, Elephant Power, Radiant, Tempo, Tugaris, Canoe and iXi. Personal wash--Imperial Leather, Joy, Premier, Foamburst, Roberts, Cussons Kids, Aquasource, Carex, Pearl, Cussons Pure, Luksja.

NEW PRODUCTS: Imperial Leather Foamburst foaming handwash and Scentsations shower gel, Carex of Gentle Foaming handwash and Family Softwipes.

COMMENTS: It's been a busy year for Paterson Zochonis. In Europe, the company relaunched the Imperial Leather range and extended it with the addition of shower bars, Foamburst foaming handwash and Scentsations shower gel. The Carex range was expanded with the addition of Gentle Foaming handwash and Family Softwipes. However, the company said competition in Eastern Europe, especially Poland, has been fierce. To compete effectively, Paterson Zochonis has restructured its sales and distribution operations.

In Asia, overall profitability increased substantially, fueled by substantial growth in Indonesia. Sales and profitability also rose in Thailand and Australia. Elsewhere in Asia, operations in China continued to loss money, but the Middle East recorded an improvement in profitability. In Africa, business in Nigeria was up sharply due to a stable currency and reforms made by the civilian government. But results in the other African units, Ghana, Kenya and Cameroon, were flat.

For the six months ended November 330, 2001, sales rose 6% to nearly $304 million.
23
Nippon Menard
5-24, 3-chome, Marunouchi
Naka-ku, Nagoya, Japan
Website: www.menard.co.jp
Sales: $560 million


SALES: $560 million (estimated) for the year ended March 31, 2002.

KEY PERSONNEL: Daisuke Nonogawa, chairman; Junichi Nonogawa, president.

MAJOR PRODUCTS: Skin care--Absolute, Embellir, Clarity, Lisciare, Illuneige, Phy-Cel, Meliease, Fair Lucent, Beauness. Makeup--Jupier, Dayfull, Fairgrace, Fair Lucent, Autostep, Waterproof.

COMMENTS: Nippon Menard is one of the leading direct sales companies in Japan. The company also has operations in a wide range of countries, including Canada, China, France, Indonesia, Korea, Malaysia, Russia, Singapore, Taiwan, Thailand and the U.S.
24
Body Shop International Plc
Watersmead, Littlehampton
West Sussex, BN17 6LS UK
Tel: (44) 1903-731500
Webite: www.thebodyshop.com
Sales: $538 million


SALES: $538 million. Net loss: $8.5 million for the year ended March 2, 2002.

KEY PERSONNEL: Adrian Bellamy, executive chairman; Peter Saunders, chief executive officer.

MAJOR PRODUCTS: Hair and skin care products, fragrances and color cosmetics sold under The Body Shop brand.

NEW PRODUCTS: Body Butters, Body Scrubs.

COMMENTS: An era ended in February when Anita and Gordon Roddick gave up their management roles at Body Shop International, the natural beauty care retailer they founded in 1976. They both remain on the company's board as non-executive directors and Ms. Roddick also serves as a creative consultant, a role she relishes, according to an article in The Financial Times. "I don't like corporate behavior or rituals; I'm a renagade and like throwing ideas out," she said.

The Body Shop could certainly use some new ideas. According to Adrian Bellamy, the new chairman, the company "is still a long way from achieving its potential."

This year the company will drive product development and rationalization, together with marketing, to improve sales growth and margins. "We will review all our operations to improve efficiency, lower costs and tighten levels of working capital," said Mr. Bellamy.

As a result, new company-owned store openings will be minimal in the current year in order to focus resources on driving sales in the existing stores. For the year ended March 2, group sales rose 1%. Gross margins improved at retail and wholesale levels, rising 1.3% to 60.8%.

By region, turnover in the UK and Republic of Ireland rose 1% to $212 million. The Body Shop at Home performed below expectations, with sales declining 3%. In order to improve UK sales, the company began a reorganization in March.

Turnover in the U.S. also increased 1% to $170 million. This year the company expects to improve comparable store sales through a continuing program of new product introductions. The Body Shop at Home has been tested in three states and will be expanded this year.

In Europe, Africa and the Middle East, sales were flat at $91 million. Although the company opened 41 new stores across the region, on a comparable store basis sales were 3% lower.

In Asia-Pacific, sales rose 5% to $65 million. Retail sales rose 7% due to 39 new store openings. Comparable store sales rose 2%.
25
Sunstar Inc.
3-1, Asahimachi
Takatsuki City, Osaka, Japan
Tel: (81) 0 726-82-5541
Website: www.sunstar.com
Sales: $508 million


SALES: $508 million. Net income: $2.3 million for the year ended March 31, 2002.

KEY PERSONNEL: Hiroo Kaneda, chief executive officer.

MAJOR PRODUCTS: Oral care--G.U.M., Ora2, Butler; Personal care--Tonic body and skin care products.

NEW PRODUCTS: shoe and stocking antibacterial deodorizing sprays and Drymark detergent.

COMMENTS: Oral care products account for more than 70% of sales at Sunstar, one of the largest toothpaste manufacturers in Japan.

In 1941, Sunstar began manufacturing and marketing rubber glue for bicycles. Five years later, company researchers applied this paste-filling technology to develop toothpaste in a metallic tube, which consumers welcomed as an alternative to old-fashioned tooth powder. Since that success, Sunstar has expanded its business around the company motto of "always striving to improve peoples' health and standard of living."
26
YSL Beaute
Part of the Gucci Group NV
Rembrandt Tower, 1 Amstelplein
1096 HA Amsterdam,
The Netherlands
Tel: (31) 20-462-1700
Website: www.gucci.com
Sales: $462 million


SALES: $462 million. Operating profit: $30 million for cosmetics and toiletries. Corporate sales: $2.28 billion. Net income: $278 million.

KEY PERSONNEL: Domenico De Sole, president and chief executive officer, Gucci; Chantal Roos, president and managing director, YSL Beaute.

MAJOR PRODUCTS: Cosmetics, skin care and fragrances sold under the Yves Saint Laurent, Oscar de la Renta, Van Cleef & Arpels and Fendi brands; Roger & Gallet toiletries.

NEW PRODUCTS: Nu fragrance, Ligne Intense cosmetics and signed license agreements for Alexander McQueen, Stella McCartney and Zegna. To be laun- ched: Lisse Gloss.

COMMENTS: Sales at YSL Beaute fell 13.8% last year as the company cut distribution by 25% (from 22,200 to 16,800 points-of-sale). This year the company expects to close more POS to reach a network of 15,000.

By brand, Yves Saint Laurent accounted for 72% of sales, followed by Van Cleef and Arpels (9%), Roger & Gallet (8%), Oscar de la Renta (6%) and others (5%). By region, Europe accounted for 70% of sales, followed by the U.S. (16%), Japan (7%), rest of world (4%) and rest of Asia, excluding Japan (3%).

The company has some ambitious plans for all of its brands. For example, YSL will modernize its makeup and skin care lines this year by introducing new lines, formulations, R&D and packaging. It also plans to develop a dedicated travel retail offer. For Roger & Gallet, the company will internationalize and rejuvenate the product portfolio as it maintains its high level of profitability.

Among its licensed brands, Van Cleef and Arpels will get a modernized image. Oscar de la Renta will be repositioned in North and South America as a fashion brand and the designer brands will introduce new fragrances.

For 2002, the company expects beauty sales to increase a healthy 10%.
27
Oriflame
Oriflame Management SA,
Waterloo Office Park, Building O
Dreve Richelle 161
1410 Waterloo, Belgium
Tel: (32) 2-357-55-00
Website: www.oriflame.com
Sales: $400 million


SALES: $400 million.

KEY PERSONNEL: Sven Mattsson, chief executive officer; Kevin Kenny, chief financial officer; Marco Greidinger, director, global supply; Jesper Martinsson, regional director, Central Europe and Mediterranean; Nigel P. Mould, group marketing director; Peter Lindholm, regional director, Scandinavia and managing director, Oriflame Finland; Magnus Brannstrom, regional director, Commonwealth of Independent States, Baltics and Asia.

MAJOR PRODUCTS: Skin care--Aloe, Tea Tree, Swedish Care, Royal Velvet, Clear+, Skin Structures; Makeup--Colour by Oriflame, Visions, Giordani Gold, Instant Sun; Fragrances--Sun Moon Eclipse, Tsun Lai, De1ice, Serene, Eclat; and Toiletries--Body Clinic, Sun Care, Natural Selection, Milk & Honey, Footcare.

NEW PRODUCTS: Oriflame Problem Solvers Firm-Figure Refining Body Lotion and Oriflame Hand Cream Dry Skin. To be launched: Oriflame Soul and Oriflame Divine fragrances (September).

COMMENTS: Oriflame is a Swedish cosmetics company founded in 1967 by the brothers Robert and Jonas af Jochnick. The company has 3000 employees and more than one million sales consultants in more than 60 markets worldwide. The company is privately-owned by the founders, together with the investment company Industri Kapital.

In May, the company introduced two new skin care products. Oriflame Problem Solvers Firm-Figure Refining Body Lotion helps tighten, firm and moisturize the skin. Oriflame Hand Cream Dry. Skin protects and softens dry hands. The product is directed toward both men and women.

Last month, the company relaunched Oriflame Skin Structures. This multi-benefit skin care range of six products protects and energizes the skin. A new ingredient, Marine Active Artemia Salina, improves the products thanks to its ability to reactivate cellular metabolism and revitalize the skin. New package colors will also make it easier to differentiate day products (white) from night products (blue).
28
Pierre Fabre Dermo-Cosmetique
45, place Abel Gance
92654 Boulogne, France
Tel. (33) 1-49-10-8000
Website: www.pierre-fabre.com
Sales: $346 million


SALES: $346 million for cosmetics.

MAJOR PRODUCTS: Skin care and hair care products marketed under such brand names as Pierre Fabre, Physicians Formula and Rene Furtener.

COMMENTS: In late 2000, Pierre Fabre merged with BioMerieux to create a $1.6 billion health care and skin care firm.
29
Noevir Co., Ltd.
7-6-15 Ginza
Chuo-ku Tokyo, 104-8208 Japan
Tel: (81) 3-5568-0300
Website: www.noevir.co.jp
Sales: $320 million


SALES: $320 million for cosmetics. Corporate sales: $341 million for the year ended Sept. 30, 2001.

KEY PERSONNEL: Hiroshi Ohkura, president; Shinzo Hirai, vice president; Shun Ohkura, managing director.

MAJOR PRODUCTS: Personal care items including skin care, cosmetics, makeup, hair care and body care products.

COMMENTS: Cosmetics and personal care products account for 94% of the corporate sales. Last year, Noevir's corporate sales slipped 3.7% in local currency.
30
Coreana Cosmetic Co., Ltd.
Coreana Bldg., 1422-7
Socho-Dong, Socho-Gu
Seoul, 137-070 Korea
Tel: (82) 2-580-8809
Website: www.coreana.co.kr
Sales: $288 million


SALES: $288 million. Net income: $18.2 million.

KEY PERSONNEL: Dr. Sangok Yu, chairman; Woonhan Song, president.

MARKETING DIRECTOR: Jeonghang Kim.

MARKETING MANAGERS: Kwanggi Hong, direct selling; Taesu Kim, cosmetic shop sales.

MAJOR PRODUCTS and PRODUCT MANAGERS: Coreana (direct selling)--Manchul Cho; Orthia (cosmetic shop sales)--Eunsook Lee; Entia (cosmetic shop sales)--Younghae An; Biodefense (direct selling)--Manchul Cho; Astra 21 (direct selling)--Junghyun Bae.

NEW PRODUCTS: Coreana White Planning toner, emulsion and essence; Coreana Plustem Whitune line; Entia Tea Plus skin care line; Entia Herb Nature cleansing line; Orthia Effective sun cream; Agape brand for skin care and makeup. To be launched: Entia Wrinkle Zero serum and ampoules (Aug.), Entia Repair serum and ampoules (Aug.), Coreana Basic eyeshadows (Sept.).

COMMENTS: Coreana's total beauty sales increased 12.2%, thanks to the steady sales of Coreana Vitamin C Magic Powder Essence, Retinol 3000 and Nokdu Foam Cleansing within the direct sales business, which accounts for 81.2% of the whole volume for 2001. The in-store sales division attributes its 20% growth to the sales of Entia skin care line and the newly extended Entia Line for pore-tightening in 2001.

For more efficient work flow, Coreana combined product planning team and marketing team to rearrange them into two marketing teams: one for direct sales, the other for in-store sales. Meanwhile, Coreana set up an Museum Team for `Musee de la Beaute', the first cosmetic museum ever in Korea.

Coreana, as the leading cosmetic company in Korea's growing door-to-door sales market, set up an second direct sales team for Agape, the new brand and Kose products imported.

Coreana generated sales of $2.1 million in overseas markets extending its market to Canada, Italy and Dubai. Coreana has been focusing on the Chinese market; starting sales in cosmetic shops, in addition to the more traditional department store sales.

Coreana signed an agreement of distribution with Kose Corp. for direct selling and established Kose Korea Co. Ltd for department store sales with Coreana and Kose's share ownership of 35:65.

Coreana introduced Entia Tea Plus skin care line, Entia herb nature cleansing for in-store sales and Coreana Luxury cream, luxury ampoules for direct-sales.

Other important companies
IWP International plc
19 Fitzwilliam Square
Dublin 2, Ireland
Tel: (353) 1-661-1958
Website: www.iwp.pe
Sales: $200 million


SALES: $200 million (estimated) for own brand personal care products. Corporate sales: $629 million for the year ended, March 31, 2002.

KEY PERSONNEL: Joe Moran, chief executive officer; Bernard Byrne, deputy chief executive officer.

MAJOR PRODUCTS: Cosmetics, fragrances and personal care products sold under a variety of brand names, including Constance Carroll and Actuality color cosmetics.

COMMENTS: IWP is new firmly focused on personal care, following the April sale of its household products business to Legal & General Ventures Limited for approximately $148 million. Commenting on this announcement, chief executive Joe Moran said: "Through the disposal of our household products division, we have sought to release maximum value from our interests in the household products division. Our continued confidence in the future prospects of this division is reflected by our ongoing investment. Our priority now is to focus on the personal care division and to devote our management and improved financial resources to expanding this business in the future and enhancing shareholder value."

IWP still retains a significant investment in the household products business in the form of a bond investment.

For the fiscal year, ended March 31, IWP's sales rose 4.7%. The bulk of the company's sales are derived from private label operations. After a strong start in the first half, sales deteriorated in the second half especially in the U.S. According to Mr. Moran, the performance in the final quarter was disappointing and, in particular, the results from North America, and IWP's Dutch personal care and plastic businesses were below expectations. "In addition, the decision to close our private label manufacturing facility at Deeside in the UK in the final quarter resulted in significant losses in that business as we ran down activity," said Mr. Moran.
The Boots Company Plc
Group Headquarters
D90 Building, 1 Thane Road
Nottingham NG2 3AA, UK
Tel: (44) 115-950-6111
Website: www.boots-plc.com
Sales: $198 million


SALES: $198 million (estimated) for personal care products. Corporate sales: $7.6 billion for the year ended March 31, 2002.

KEY PERSONNEL: Steve Russell, chief executive officer; David Thompson, deputy chief executive officer; Howard Dodd, group finance director; Barry Clare, marketing director and director of international businesses; Ken Piggott, managing director, Boots UK and Ireland retail operations.

MAJOR PRODUCTS: Cosmetics and toiletries.

NEW PRODUCTS: Essentials toiletries.

COMMENTS: Corporate sales increased 2%, but health and beauty care sales were up 4.8%. Now the company is focusing on reinvigorating the core retail chain, by launching new products, improving the store environment and developing a range of profitable well-being services. The company said 300 stores will be refurbished this year as part of a rolling four year program. The overall portfolio is being streamlined into six clear formats. "We have reduced the cost base and have implemented major structural changes to create a single company focused on well-being," according to Steve Russell, chief executive officer.

In fact, the subject of well-being is so important to the company that it conducted a study earlier this year to define and measure the concept. The study, Well-Being 2002, found that people with a higher sense of well-being take greater responsibility for their health, visit the doctor less, and enjoy a better quality of life. The study strongly suggests that to improve the future of healthcare in the UK Boots must look to widen its definition of health to embrace well-being. The Boots identifies 15 factors that make up over two-thirds of our well-being. At the center of these factors are the `big five' which remain `constant' throughout our lives, and, although health is one these, it was outweighed by:

* having a sense of control over life and the direction it takes;

* an optimistic outlook;

* feeling confident about the way we look;

* a sense that we are valued in our social group.

Dr David Peters, author of The Complete Guide to Integrated Medicine, said "Wellbeing 2002 is incredibly relevant to the healthcare agenda today. It supports the theory that how an individual feels about their wellbeing can contribute to their overall health."

In another move, Boots sold its Onagrine and Nobacter skin care brands to Beiersdorf to concentrate on its core in-store lines. The new Strategic Marketing Unit continues to develop new products that will drive top line growth. For example Essentials, the new Boots brand basic range of 300 toiletries, provides a simpler, value message for the customer.
O Boticario
Av. Rui Barbosa, 3450 Afonso Pena
Sao Jose dos Pinhais PR
Brazil, CEP 83065-0260
Tel: (55) 41-381-7000
Website: www.boticario.com.br
Sales: $169 million


SALES: $169 million.

KEY PERSONNEL: Miguel Krigsner, president; Artur Grynbaum, executive vice-president; Silvana Cassol, marketing director; Maria Carolina Zani, financial director; George Parik, international area director; Antonio Carlos Sanches, operations director; Israel Feferman, research and innovation director.

MAJOR PRODUCTS: Perfumes, including Quasar for men, Thaty and Accordes. The company also markets approximately 480 personal care products, such as body care, skin care, hair care, sun protection, make up, perfumes and soaps.

NEW PRODUCTS: Glamour, Arbo and Tarsila perfumes and Green Tea body lotion.

COMMENTS: O Boticario sells a wide range of personal care products through a network of company-owned stores located primarly in Brazil. The company's retail sales exceeded $440 million last year. In 2001, O Boticario manufactured 59.4 million units. Products were sold in 2,136 stores in Brazil, 61 shops in Portugal, five in Bolivia; two in Peru and two in Paraguay. O Boticario also distributes products in Japan at 400 points of sale. In 2002, the company expects to maintain a growth rate in excess of 20% and company executives told Happi that 110 more shops will open this year. Although exports accounted for just 2% of sales in 2001, they are expected to make up 6% of sales during the next five years.
Noiro
Part of the Orion Corporation
Lasihytti 1, FIN-02780 Espoo, Finland
Tel: (358) 204-877-100
Website: www.noiro.com
Sales: $111 million


SALES: $111 million.

KEY PERSONNEL: Pekka Rautala, president; Harri Mantynen, VP-marketing, personal care and household products, selective cosmetics; Tiina Isohanni, vice president, marketing, Lumene cosmetics and Cutrin hairdressing products; Jari Suominen, vice president, development, Farmos institutional and industrial cleaning products; Juha Saarinen, VP-marketing, Farmos institutional and industrial cleaning products; Juha Koivukoski, VP-finance and administration, strategic planning; Leena Kolunen, VP-product development and quality assurance; Carl-Gustav Malmstrom, VP-international division; Pekka Perttila, VP-material administration; Juha Snikkanen, VP-production and logistics.

MAJOR PRODUCTS: Personal care--Lumene, Herbina, Cutrin and Favora cosmetics and personal care products. Institutional--Erisan and Farmos hygiene products.

COMMENTS: Sales rose 9.6% last year, exceeding the company's expectations. Exports rose 17.5% and accounted for 35% of sales. Exports to Russia reached a record high and exports to Sweden and Norway proceeded according to plan. The leading export brand is Lumene. Another important export brand is Herbina, for skin care and personal hygiene. In the current year, both domestic sales and exports are expected to grow. Noiro is a division of the Orion Group, the leading company in the Finnish health care sector.
Alphabetical
Listing *

Amore Pacific 17
Beiersdorf 7
Body Shop 24
Boots *
Chanel 16
Clarins 20
Coreana 3
GlaxoSmithKline 13
Henkel 5
IWP *
Kanebo 10
Kao 3
Kose 15
LG 18
Lion 12
L'Oreal 2
LVMH 8
Natura 21
Nippon Menard 23
Noevir 29
Noiro *
O Boticario *
Oriflame 27
Paterson Zochonis 22
Pierre Fabre 28
Pola 14
Puig 19
Reckitt Benckiser 4
Shiseido 6
Sunstar 25
Unilever 1
Wella 9
YSL Beaute 26
Yves Rocher 11

* --see other important companies at
the end of The International Top 30.
The International Top 30

1. Unilever United Kingdom $20.2 billion
2. L'Oreal France $11.8 billion
3. Kao Japan $5.2 billion
4. Reckitt Benckiser United Kingdom $4.7 billion
5. Henkel Germany $4.5 billion
6. Shiseido Japan $4.4 billion
7. Beiersdorf Germany $2.5 billion
8. LVMH France $1.97 billion
9. Wella Germany $1.95 billion
10. Kanebo Japan $1.8 billion
11. Yves Rocher France $1.77 billion
12. Lion Japan $1.75 billion
13. GlaxoSmithKline United Kingdom $1.6 billion
14. Pola Japan $1.5 billion
15. Kose Japan $1.1 billion
16. Chanel France $900 million
17. Amore Pacific South Korea $845 million
18. LG Household & Healthcare South Korea $844 million
19. Puig Spain $745 million
20. Groupe Clarins France $738 million
21. Natura Brazil $684 million
22. Paterson Zochonis United Kingdom $580 million
23. Nippon Menard Japan $560 million
24. Body Shop International United Kingdom $538 million
25. Sunstar Japan $508 million
26. YSL Beaute France $462 million
27. Oriflame Belgium $400 million
28. Pierre Fabre France $346 million
29. Noevir Japan $320 million
30. Coreana South Korea $288 million


RELATED ARTICLE: Unilever preserves Brazil's wetlands.

IN A MOVE to improve its image in Brazil and invest in social responsibility, Unilever has created the Unilever Institute, according to a recent article in Gazeta Mercantil, Sao Paulo. The non-profit organization will contribute to more than 60 social programs this year.

One of its primary programs is dedicated to preserving the Pantanal wetlands, which includes the ecologically-important Amazonica, which feeds the Araguaia and Paraguay rivers. Unilever will sponsor the Foundation to Support Life in the Tropics (Ecotropica), which preserves an area of approximately 100,000 hectares.
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Date:Aug 1, 2002
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