Issue 70 Personal Care - EY · PDF fileParfums and enable it to “broaden the group’s geographical reach and enhance its risk diversification. ... skin care and cosmetic products

Issue 70

Talking Personal Care

Current developments in the personal care sector 5 March-24 April 2013 Share price data .................................................................... 2 Leading personal care companies: recent share price movement 2

Company and industry news ................................................... 2 M&A and licensing agreements ................................................ 2

Organizational efficiency and cost savings ................................ 4

Digital developments .............................................................. 5

Innovation ............................................................................. 6

Focus on emerging markets ..................................................... 7

Focus on mature markets ...................................................... 10

Regulation and litigation ....................................................... 11

Sustainability ....................................................................... 12

Financial news/performance .................................................. 14

Analyst views ....................................................................... 16

Management moves .............................................................. 19

Talking Personal Care is produced and distributed by Ernst & Young every month.

We hope you find it both interesting and informative and we would welcome your feedback. If you would like any further information or would like to be included on our mailing list, please contact:

Anastasia Economos

Global Personal Care Co-Leader

+1 212 773 3491

[email protected]

Mark Twine

Global Personal Care Co-Leader

+44 (0)207 951 0735

[email protected]

5 March-24 April 2013 Ernst & Young Talking Personal Care 2

Share price data

Leading personal care companies: recent share price movement

Name Currency Price @

05/03/13 Price @

24/04/13 % change

Closing price

52 week high

Closing price

52 week low

Market cap @ 24/04/13

(US$m)

Avon Products US$ 19.8 22.2 12.6 22.3 13.8 9,610

Beiersdorf € 67.0 69.3 3.4 72.4 50.0 22,708

Colgate-Palmolive US$ 115.7 117.9 1.9 121.4 96.5 55,073

Estée Lauder US$ 65.9 68.8 4.5 70.4 50.6 16,322

Henkel € 56.7 59.7 5.1 61.5 41.8 36,632

Johnson & Johnson US$ 77.7 84.4 8.7 85.5 61.8 236,042

Kao ¥ 3,030.0 3,355.0 10.7 3,360.0 2,015.0 17,765

Kimberly-Clark US$ 95.9 103.4 7.9 106.1 78.3 39,778

L’Oréal € 115.8 132.9 14.7 132.9 87.6 104,374

Procter & Gamble US$ 77.1 77.1 0.1 82.5 59.3 210,665

Shiseido ¥ 1,220.0 1,580.0 29.5 1,580.0 945.0 6,360

Unilever NV € 30.7 32.4 5.6 32.7 24.6 65,194

Unilever PLC GBP 26.9 28.5 5.9 28.5 20.1 55,395

Source: Thomson Reuters Datastream/Ernst & Young research (Note: inclusion in table based on market value; share price data rounded to one decimal place.)

Company and industry news

M&A and licensing agreements

L’Oréal has announced the acquisition of the health and beauty business of Kenya’s Interconsumer Products (ICP) for an undisclosed amount. ICP founding shareholder Paul Kinuthia will retain the company’s diapers and sanitary division which will reportedly take over the debts of the beauty division. L’Oréal Africa and Middle East Zone EVP Geoff Skingsley described the acquisition as an “important milestone” for the company in Kenya and commented: “It broadens our product offer with accessible brands, and strengthens the group’s position in the mass market. This acquisition will also accelerate our development in Eastern Africa.” L’Oréal also noted that the acquisition would provide a regional manufacturing base “for expanded operations.” Meanwhile, Paul Kinuthia said: “I had planned to list the company by 2015 but the stringent compliance rules before and after listing were daunting.”1

Angelini, an Italian pharmaceutical group, has announced its acquisition of a majority stake in Italian fragrance company ITF, along with 100% of ITF Germany from Italy’s ICR Industrie Cosmetiche Riunite. ITF brands reportedly include Blumarine, Dsquared2, Trussardi and Pomellato. Angelini said that the investment would strengthen its existing Spanish fragrance manufacturing and distribution business Idesa Parfums and enable it to “broaden the group’s geographical reach and enhance its risk diversification.”2

US private equity firm Swander Pace Capital has announced its acquisition of Caleel + Hayden Holdings, owners of the gloProfessional mineral cosmetics brand, glotherapeutics skin care brand and gloessentials hair care brand, from North Castle Partners. Swander Pace described gloProfessional as “a leading, research-driven product of choice in the professional channel” with a “strong consumer following” while North Castle said the company had been “transformed from a distributor with only half of its sales being

1 “L’Oréal Buys Kenyan Interconsumer’s Health & Beauty Business,” Dow Jones Global News Select, 15 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “L’Oreal beats Tiger brands in buyout of Nice & Lovely,” Business Daily, 14 April 2013, via Factiva, © 2013 Nation Media Group; “L’Oréal: News Release: "L’Oréal acquires beauty firm Interconsumer Products in Kenya”,” Thomson Reuters ONE, 15 April 2013, via Factiva, © 2013 Thomson Reuters. 2 “Il Sole 24 Ore: Angelini buys majority stake in perfume company ITF,” Il Sole 24 Ore, 8 March 2013, via Factiva, © 2013 AII Data Processing Ltd.; “Angelini to acquire majority stake in ITF,” MarketLine (a Datamonitor Company), Financial Deals Tracker, 7 March 2013, via Factiva, © 2013 MarketLine - an Informa plc business; “Angelini acquires majority in Italian perfume company ITF,” SeeNews Italy, 7 March 2013, via Factiva, © 2013 SeeNews.


generated from proprietary brands” to a company that realized “virtually all revenue from its suite of glo brands.” Meanwhile, Founder and CEO Mark Hayden commented: “North Castle has been a great partner, and at the same time I’m excited about working with Swander Pace who brings fresh ideas and resources to the company as we continue to expand.”3

Kimberly-Clark has reportedly sold its Polish tissue and toilet paper subsidiary Velvet to the Poland’s Avallon Fund.4

Henkel CEO Kasper Rorsted has said that the company has €3.5b-€4.0b available to spend on acquisitions. Rorsted noted that the company would not put its credit ratings at risk and commented: “Large acquisitions are not ruled out.”5

India’s Dabur has commented on the prospects for local acquisitions. CEO Sunil Duggal noted that Indian valuations were “extremely high” and commented: “So, we would rather conserve and sit on cash and wait for the right opportunity to come back at lower valuations, which we do predict will happen over the next couple of years.”6

Colgate-Palmolive’s Indian subsidiary has announced plans to sell its Global Shared Services Organization subsidiary to Colgate Global Business Services Private Limited, a subsidiary of US-based Colgate-Palmolive, for US$11.1m. The company said the deal would be effective from 1 June 2013.7

Unilever’s Indian subsidiary has announced the acquisition of a 74% stake in Aquagel Chemicals, a contract manufacturer of soaps and detergents for the company in which Hindustan Unilever previously held a 26% stake.8

Japan’s Unicharm has announced an agreement to acquire Myanmar Care Products (Mycare), a manufacturer of diapers and feminine hygiene products, as part of efforts to increase its sales in Southeast Asia. Unicharm said it would acquire all outstanding shares owned by Singapore investment fund CFA International Paper Products, which holds an 88% stake in Mycare, and acquire 10% of Mycare’s total outstanding shares.9

Japan’s Kose has announced a joint venture with India’s Elder Pharmaceuticals to develop skin care and cosmetic products for “middle- and upper-class” Indian consumers. Kose will hold a 60% stake in the new venture, with manufacturing to start in September 2013 at Elder’s manufacturing sites.10

H20 Plus, the US skin care company acquired by Japan’s Pola Orbis in July 2011, has reportedly agreed a joint venture with its Chinese distributor Asia Development Enterprise. The new C20 Plus Asia venture will be 51% owned by H20 Plus, headquartered in Hong Kong and will reportedly target expansion into Asia, as part of H20 Plus’ target to generate “at least 20%” of its sales from international markets by 2020.11

India’s Ozone Group has reportedly started talks to divest a stake in its consumer goods business, which manufactures Nomarks “anti-marks” cream. Chairman and Managing Director SC Sehgal commented: “I am looking at all operative measures so that the brand (Nomarks) can achieve what it deserves.”12

Church & Dwight has confirmed a licensing agreement with the UK’s Futura Medical under which it will manufacture, market and distribute Futura’s CSD500 condom in North America and certain “key European territories.” This reportedly follows the earlier breakdown of talks between Reckitt Benckiser and Futura. Church & Dwight President of International Consumer Products Adrian Huns commented: “We look forward to working with Futura on the successful completion of the required approvals necessary ahead of the

3 “Swander Pace Capital buys gloProfessional,” BW Confidential, 4 April 2013, via Factiva, © 2013 BW Confidential; “North Castle Partners Sells gloProfessional, Completing Another Successful Partnership in the Personal Care Sector,” PR Newswire (U.S.), 2 April 2013, via Factiva, © 2013 PR Newswire Association LLC.; “Swander Pace Capital Acquires gloProfessional,” Business Wire, 2 April 2013, via Factiva, © 2013 Business Wire. 4 “Kimberly-Clark Exiting Consumer Tissue Business in Poland – CFO,” Dow Jones News Service, 19 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “Avallon Buys Velvet from Kimberly-Clark,” Polish News Bulletin, 27 March 2013, via Factiva, © 20131 Polish News Bulletin. 5 “German Henkel to spend up to EUR 4bn on takeovers,” SeeNews Germany, 15 April 2013, via Factiva, © 2013 SeeNews; “Henkel CEO says up to 4 bln eur available for big acquisition,” Reuters News, 15 April 2013, via Factiva, © 2013 Reuters Limited. 6 “Will maintain current volume growth going forward: Dabur,” CNBC-TV18, 28 March 2013, via Factiva, © 2013 www.moneycontrol.com. 7 “WSJ BLOG: Colgate-Palmolive India Plans to Sell Division,” Dow Jones Global Equities News, 25 March 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “Colgate-Palmolive to sell GSSO,” TopNews.in, 26 March 2013, via Factiva, © 2013 TopNews.in; “Colgate to sell division,” DNA Money, 26 March 2013, via Factiva, © 2013 Diligent Media Corporation Ltd.; “Colgate-Palmolive to sell off division.(FINANCIAL NEWS),” Cosmetics International, 5 April 2013, via Factiva, © 2013 Gale Group Inc. 8 “HUL ACQUIRES AQUAGEL CHEMICALS (Aquagel makes detergents and soaps for HUL),” Indian Business Insight, 5 April 2013, via Factiva, © 2013 Informatics (India) Ltd. 9 “Unicharm to buy Myanmar sanitary goods maker,” Kyodo News, 22 March 2013, via Factiva, © 2013 Kyodo News; “Unicharm To Buy Myanmar Sanitary Products Maker,” Nikkei Report, 22 March 2013, vi Factiva, © 2013 Nihon Keizai Shimbun, Inc. 10 “Kose To Establish Cosmetics Venture In India,” Nikkei Report, 7 March 2013, via Factiva, © 2013 Nihon Keizai Shimbun, Inc.; “Elder Pharmaceuticals to create joint venture with KOSE Corporation of Japan,” Accord Fintech, 6 March 2013, via Factiva, © 2013 Accord Fintech. 11 “H20 Plus creates joint venture in China,” BW Confidential, 4 April 2013, via Factiva, © 2013 BW Confidential. 12 “Ozone group revives talks to offload stake in consumer goods business,” The Economic Times, 1 April 2013, via Factiva, © 2013 The Times of India Group.


launch in Europe and North America of a completely new type of condom from a highly trusted brand.” Meanwhile, Futura CEO James Barder noted that it would continue its preferred strategy to license to “leading” distributors “on a geographic basis” to “create optimal value for shareholders.”13

Organizational efficiency and cost savings

Avon has announced that it is exiting the Irish market and cutting 400 posts worldwide as part of its earlier announced US$400m cost savings initiative. A spokesperson noted: “Avon Ireland has seen a decline in revenue and has not made an operating profit in the last three years in the Irish market.” The company said it was restructuring or exiting ”certain smaller, underperforming markets,” mainly in Europe, the Middle East and Africa, to increase efficiencies and concentrate resources on “high priority markets and activities.” Avon said the actions would be “largely completed” before the end of 2013 and would generate US$45m-US$50m in annualized savings with total charges of US$35m-US$40m before taxes. CEO Sheri McCoy commented: “We continue to work aggressively toward turning around the business. The steps outlined today take us closer to our cost-savings goal.”14

Procter & Gamble (P&G) is reportedly planning to increase the time it takes to pay suppliers by up to 30 days, to an average of 75 days, after external benchmarking found that it was “out of line” with its competitors. P&G said that its working capital program would “focus on moving to longer payables” with external business partners who would “have the opportunity to leverage P&G’s strong credit rating and receive faster payment via supply chain financing.” The new policy will reportedly be introduced for its largest existing suppliers from July 2013 as “new or modified agreements are reached,” and will expand to other existing suppliers from April 2014. According to The Wall Street Journal, the move could free up US$2b in cash. P&G Chief Purchasing Officer Rick Hughes stated in a letter to suppliers: “Rather than a simple ‘mandate’ which we believe could be punishing for our small/midsize partners, we have developed a solution with pre-selected partner banks that will enable us to offer a financial product called ‘Supply Chain Financing’ that can create a win-win-win for our external partners, P&G, and the banks.”15

Shiseido Chairman Shinzo Maeda has said that the company will “continue” to focus on reducing production costs in response to falling demand in the Japanese market. Speaking after the announcement that he will take on the role of Interim President and CEO, Maeda also reportedly noted that Shiseido would “undergo organizational reforms and restructure the management of its China business.”16

Unilever has reportedly confirmed that it will restructure its brand development operations in Europe to establish a single innovation department in Rotterdam in the Netherlands for all product categories. A spokesperson for Unilever France commented: “With this project, Unilever’s European organization would align itself with other parts of its business around the world, where this type of structure has produced excellent results.” According to unconfirmed reports, the restructuring will affect 152 jobs in France.17

Unilever’s German subsidiary is reportedly planning to cut 110 posts in Hamburg. Unilever Germany Managing Director Harry Brouwerm noted that the company’s local operations had to grow “sustainably” and contribute to a targeted doubling of global revenue while reducing its environmental impact.18

Kimberly-Clark has reportedly confirmed that it will close its Calatayud factory in the Spanish province of Zaragoza in the absence of a buyer for the plant, which was put up for sale in October 2012.19

Avon has reportedly sold a site in the US state of Ohio to industrial property management company First Highland Management and Development for US$6.5m. According to a local report, “most” of the Springdale manufacturing facility in Cincinnati was closed in 2012 but a call center and returned goods operation remained operational at the site.20

13 “Jersey company, England’s Futura to market new condom,” The Star-Ledger, 3 April 2013, via Factiva, © 2013 The Star-Ledger; “Futura Medical PLC Licenses CSD500 to Church & Dwight,” Regulatory News Service, 2 April 2013, via Factiva, © 2013. 14 “Avon slashes 400 jobs worldwide,” Financial Times, 8 April 2013, © 2013 The Financial Times Limited; “The Avon ladies who won’t be calling on you any more,” Irish Independent, 13 April 2013, via Factiva, © 2013 Independent Newspapers Ireland Ltd.; “Avon Outlines Further Steps of Cost Savings Initiative,” PR Newswire (U.S.), 8 April 2013, via Factiva, © 2013 PR Newswire Association LLC. 15 “P&G stretches supplier payments to save money,” The Cincinnati Enquirer, 18 April 2013, via Factiva, © 2013 The Cincinnati Enquirer; “Firms Pinch Payments to Suppliers,” The Wall Street Journal, 17 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “UPDATE 1-P&G taking longer to pay suppliers, offers financing,” Reuters News, 17 April 2013, via Factiva, © 2013 Reuters Limited. 16 “Shiseido CEO Steps Down,” WWD, 12 March 2013, via Factiva, © 2013 Condé Nast. 17 “EUROPE: Unilever jobs under threat in brand development shake-up,” Just–Food, 12 March 2013, via Factiva, © 2013 Aroq Limited; “Le Monde: Unilever France to axe 150 jobs,” Le Monde, 12 March 2013, via Factiva, © 2013 AII Data Processing Ltd. 18 “Die Welt: Unilever wants to shed 110 jobs in Hamburg,” Die Welt, 27 March 2013, via Factiva, © 2013 AII Data Processing Ltd. 19 “Cinco Dias: Kimberly-Clark to close plant in Zaragoza,” Cinco Días, 20 March 2013, © 2013 AII Data Processing Ltd. 20 “Former Avon plant sold for $6.5M,” Cincinnati Business Courier Online, 17 April 2013, via Factiva, © 2013 American City Business Journals, Inc.


Kimberly-Clark has closed a UK diaper manufacturing plant. Manager Graham Tongue said that “approximately 50%” of the 550 employees at the Barton facility had found new employment, had taken early retirement or had been redeployed in the five months since the plans were announced. The company also confirmed that it had “permanently gifted” two plots of land from the site to a school backing onto the plant.21

L’Oréal has confirmed that it will move its US headquarter offices to a new development in the West Side area of New York. The company will reportedly lease 37,300 sq m of space at the Hudson Yards office development which is due to open in 2015. L’Oréal USA CEO Frédéric Rozé commented: “Relocating our corporate headquarters is an exceptional opportunity to provide our employees with a workplace for tomorrow.”22

L’Oréal has confirmed that it has closed its Clark hair product manufacturing plant in the US state of New Jersey. This follows a March 2011 announcement that manufacturing would move to Mexico. Company spokesperson Rebecca Caruso noted that L’Oréal had expanded its local research operations and commented: “This cements our long-term commitment to Clark and ensures that it will continue to be the flagship location for research and innovation in North America for years to come.”23

Henkel’s North American consumer business has confirmed that Saddle Creek Logistics Services has been selected as its Lead Logistics Provider in the US and Canada to “oversee execution, monitoring and reporting” for supply chain logistics performance. SVP Supply Chain Henkel Consumer Goods Torsten Pilz said that Saddle Creek was “the right choice” because of a “long-standing business relationship,” Saddle Creek’s “superior” execution and its “integrated suite of services.” Pilz commented: “Outsourcing our logistics division will help to reduce costs throughout our logistics operations, while allowing us to focus on core competencies.”24

Revlon has commented on its use of NetApp’s storage and data management solutions. SVP and CIO David Giambruno said: “Leveraging NetApp as our single storage and data management foundation provides a newfound level of agility that impacts every aspect of our business. With 97% of our total compute running on our internal cloud built by NetApp, we wield the technology needed to turn data into information.”25

P&G has reportedly reassigned global “brand agency leadership” for its Tampax feminine hygiene brand from Leo Burnett to Publicis, effective from July 2013. Both agencies are part of the Publicis Group. A P&G spokesperson commented: “As we refresh our strategy for continued growth for the brand, we believe the time is right for a new approach in our communications, including an agency change, and that Publicis can provide a fresh creative approach to help us with our growth plans.”26

Digital developments

Unilever is reportedly “questioning the logic” of shifting “big budgets” toward social media. According to Marketing magazine, Unilever is “likely to skew” marketing spend on brands such as Timotei and Radox from social media to in–store promotions and support social activity media for brands such as Axe where it is a “good fit.” In–store promotions reportedly have a return on investment that can be “as much as 50% higher” than campaigns run on Facebook or Twitter.27

US digital start-up company Pingage, founded by ex-P&G executive Bob Gilbreath, is reportedly to conduct pilot projects to help two P&G brands to “leverage” the Pinterest platform.28

Unilever has commented on the impact of social media. Chief Operating Officer and Hindustan Unilever Chairman Harish Manwani said social media was “creating the content about products” and noted: “Unless

21 “Humber bank nappy plant closes its doors; Month in Review,” Grimsby Evening Telegraph, 16 April 2013, via Factiva, © 2013 Grimsby Evening Telegraph; “No more nappy-making after 20 years in town; Kimberly-Clark will close its doors for the final time on Sunday (March 31).The nappy-making plant, on Falkland Way in Barton, employed more than 550 people - with 352 staff members, 100 contractors and around 120 temporary workers. Reporter SIMON LEONARD reports on the future of the factory site,” Scunthorpe Evening Telegraph, 28 March 2013, via Factiva, © 2013 Scunthorpe Evening Telegraph. 22 “Manhattan development attracts key occupants,” Financial Times, 10 April 2013, © 2013 The Financial Times Limited; “L’Oreal, SAP to Join Coach at Manhattan’s Hudson Yards,” Bloomberg, 10 April 2013, via Factiva, © 2013 BLOOMBERG L.P. 23 “Plant closure end of an era for workers at L’Oréal; Manufacturing facility in Clark ran for 60 years,” The Star-Ledger, 29 March 2013, via Factiva, © 2013 The Star-Ledger. 24 “Saddle Creek to Manage Henkel's Supply Chain,” Journal of Commerce Online, 14 March 2013, via Factiva © 2013 Commonwealth Business Media; “Henkel Selects Saddle Creek as Lead Logistics Provider,” PR Newswire (U.S.), 14 March 2013, via Factiva, © 2013 PR Newswire Association LLC. 25 “NetApp Enables Revlon to Simplify IT Operations with Transition to an Agile Data Infrastructure,” ENP Newswire, 6 March 2013, via Factiva, © 2013 Electronic News Publishing. 26 “P&G moves Tampax business to new ad shop,” Cincinnati Business Courier Online, via Factiva, © 2013 American City Business Journals, Inc; P&G Moves Tampax To Publicis,” Adweek, 6 March 2013, via Factiva, © 2013, Nielsen Business Media. 27 “Unilever store promos beat social-media ROI,” Marketing, 6 March 2013, via Factiva, © 2013 Marketing, a Haymarket publication. 28 “Cincinnati startup Pingage lands social media deal with P&G,” Cincinnati Business Courier Online, 26 March 2013, via Factiva, © 2013 American City Business Journals, Inc.; “Business in Brief,” The Cincinnati Enquirer, 27 March 2013, via Factiva, © 2013 The Cincinnati Enquirer.


companies work to address the new generation who access content on social media, they will miss out.” Manwani also commented that “putting in place the right analytics” was “critical in this context.”29

Nykaa.com, a new Indian online shopping beauty and wellness site, has said that it attracted 50,000 Facebook “fans” in the “short” period since it launched. Founder Falguni Nayar, a former Managing Director and CEO at Kotak Investment Bank, commented: “Our aim is to use the online medium to provide a wide array of product offerings and we will marry the large catalog with relevant content, personalized tools, tips, trends and expert advice on how to use the various products.” The site reportedly has an “initial offering of 100+” international and local brands.30

Brazil’s Natura Cosmeticos is reportedly testing a new beauty vending machine which incorporates social media. The machine, situated in Sao Paolo’s JK Iguatemi shopping mall, enables “photo sharing and personalized video messaging,” along with the ability for consumers to obtain additional brand information and request free product samples.31

Innovation

Unilever’s US subsidiary has launched Vaseline Spray & Go Moisturizer which it described as a “category-changing innovation.” The company said the “quick, continuous 360deg spray lotion” used “only compressed air” and the lotion absorbed “in seconds,” enabling women to “put their clothes right on.” Spray & Go Moisturizer will be available in three variants with a suggested retail price of US$7.99. Unilever US Skin Director Dawn Hedgepeth commented: “We know the number one reason women do not use lotion more regularly is because of the wait time that comes with normal lotion application.”32

Unilever has announced that it has signed a framework agreement to expand its relationship with the UK’s University of Nottingham and investigate “new research opportunities” in areas including “consumer psychology, green processing and energy and sustainability” to drive “bigger and faster innovation.” Professor Jim Crilly, SVP of Unilever’s Strategic Science Group, noted that the University was close to Unilever’s UK research hubs and had an “impressive geographic reach with campuses in China and Malaysia.” Crilly commented: “To continue to be successful we strongly believe that we need to collaborate with the very best partners if we are to access new ideas and technologies and create superior products.”33

L’Oréal has announced that South Korea’s Hongik University will be its “first Asian partner” in its Open Innovation Packaging Challenge, a global “academic-industrial collaboration” program initiated in 2011. Packaging Innovation Director Pierre Ducastin noted that L’Oréal would “keep enlarging” the program “to support innovative ideas for product packaging.”34

Kimberly-Clark Australia has announced the launch of Huggies 3D UltraAbsorb diapers which the company described as “an innovation so unique” that it would “change the game.” The company said the new diaper used a new “three dimensional” non-woven fabric layer, developed with Australia’s Textor Technologies and the Commonwealth Scientific and Industrial Research Organization, which was “ideal for baby’s skin” and could absorb and contain “runny bowel movements.” The diapers will be manufactured in Australia, with around 70% of production reportedly due for export. Kimberly-Clark Australia General Manager Baby and Child Care Alison Holland commented: “Manufacturing in Australia isn’t cheap and to be successful we have to achieve a premium price from consumers.”35

L’Oréal has commented on the company’s new product development areas of focus in cosmetics and personal care. Elisabeth Bouhadana, Scientific Director for L’Oréal Paris, said there would be “a more holistic way of considering women’s needs but with a high level of efficacy” and forecast the development of “new molecules for anti-ageing.” Bouhadana also noted: “We have a huge department working on sugars,

29 “Digital media changing marketing approach,” Business Line (The Hindu), 21 March 2013, via Factiva, © 2013 The Hindu Business Line; “Fate of brands caught in web of social media: Manwani,” The Times of India – Hyderabad Edition, 20 March 2013, via Factiva, © 2013 Bennett, Coleman & Co., Ltd.; “Social media forcing change in corporate strategy: HUL chief,” The Hindu, 20 March 2013, via Factiva, © 2013 Kasturi & Sons Ltd. 30 “Nykaa.com Launched – India’s Premier Online Destination for Beauty and Wellness,” India Retail News, 13 April 2013, via Factiva, © 2013 Contify.com. 31 “Natura tests out vending machines.(RETAILING),” Cosmetics International, 5 April 2013, via Factiva, © 2013 Gale Group Inc. 32 “New Vaseline(R) Spray & Go Moisturizer Offers Category-Changing Innovation with a Continuous Targeted Spray,” Business Wire, 12 March 2013, via Factiva, © 2013 Business Wire. 33 “UNIVERSITY OF NOTTINGHAM – Unilever signs strategic research agreement with University,” ENP Newswire, 28 March 2013, via Factiva, © 2013 Electronic News Publishing; “Unilever joins forces with university for shop survey,” Nottingham Evening Post, 27 March 2013, via Factiva, © 2013 Nottingham Evening Post. 34 “L’Oreal teams up with Hongik Univ.,” The Korea Herald, 23 April 2013, via Factiva, © 2013 The Korea Herald. 35 “Moved by nappy that bowels them over,” The Australian Financial Review, 9 March 2013, via Factiva, © 2013 Fairfax Media Management Pty Limited; “Hi-tech nappy launched BOOST FOR LOCAL PLANT,” Macarthur Chronicle, 26 March 2013, via Factiva, © 2013 News Limited.


which have no polluting properties. I think we will also continue to see hybrids between domains; hair and scalp care for instance is an interesting area.”36

A US “start-up” oral care company has said that its “seriously friendly” and “uniquely flavored” products will “reinvent” the category. Hello Products, which is backed by Tenth Avenue Holdings, announced the US launch of a “99% natural, 100% nice” range of toothpaste, mouthwash and breath sprays which it said featured “beautiful, minimalist packaging” from BMW Group DesignworksUSA and included “no chemicals, artificial colors, alcohol or pain.” Tenth Avenue Holdings Co-CEO Joel Citron commented: “We believe that Hello’s products bring a velocity of change - comparable to the technology industry - to the stasis of the oral care aisle, which looks today a lot like it did 30 years ago.”37

Focus on emerging markets

L’Oréal has forecast that China will become its largest luxury cosmetics market and noted that it was launching new products and expanding into “tier 3” cities, where spend per head was “similar” to that of larger Chinese cities. The company said it would attract “the next generation” through innovations such as the January 2013 launch of Clarisonic and the May 2013 opening of its Yves Saint Laurent Beauté boutique in China. Nicolas Hieronimus, CEO of L’Oréal’s Luxe division, said that by “2014 or 2015,” Chinese consumers would be “the number one consumer for L’Oréal Luxe in the world” and noted that cosmetics and fragrances could become “big categories, maybe as big as skin care.” Meanwhile, L’Oréal Chairman and CEO Jean-Paul Agon said he was “not concerned” about the “very limited” economic slowdown in China and commented: “The penetration of luxury is just beginning – we are building the future of luxury in this country.”38

Beiersdorf CEO Stefan Heidenreich has said that the company expects its Chinese business to return to profitability in 2014 and noted that the company’s Nivea brand had gained market share in China during 2012. Earlier, Beiersdorf noted that emerging markets now accounted for “almost” 50% of sales. Heidenreich commented: “We think that the European economic situation will not substantially improve this year. We also see that the US is in a critical phase, so again we are focusing on emerging markets.”39

Unilever Chief Procurement Officer Marc Engel has said that the company has asked 32 “key” international suppliers to consider investing in Indonesia under a “Partner to Win” initiative. Engel noted that it was “essential” to have suppliers close to its eight factories in the country due to the “insufficiency of raw materials” and noted the current “costly” import of chemicals and packaging materials. Engel commented: “I think we will see 10-12 people come up with concrete plans.”40

Kimberly-Clark has announced plans for a US$100m diaper manufacturing plant in China. The company reportedly said that the new Nanjing facility, in Jiangsu province, would eventually become one of its “largest and most advanced manufacturing centers” and would meet growing Chinese demand.41

Kao has said that it aims to increase the operating margin for its consumer product business in Asia, outside Japan, from an expected “less than 1% for the current year, to 5% by 2015. President and CEO Michitaka Sawada said the company would increase sales to “middle-income earners” in countries including China and Indonesia to “absorb fixed costs.” Sawada said that its Asian consumer business would generate ¥50b-¥60b of a targeted ¥100b increase in sales for fiscal 2015 compared to the current year. Sawada also noted that Kao would “speed up product development” to counter “intense” competition in China and Indonesia and was “considering” new product releases in Vietnam where it aimed to “roughly triple sales over the next three years.”42

36 “Elisabeth Bouhadana, Scientific Director at L’Oreal Paris.(INSIDE STORY),” Cosmetics International, 22 March 2013, via Factiva, © 2013 Gale Group Inc. 37 “Start-up takes ‘friendly’ approach to oral care.(Supplier News) ,” Chain Drug Review, 8 April 2013, via Factiva, © 2013 Gale Group Inc.; “Say ‘hello’ to Seriously Friendly(TM) Oral Care,” PR Newswire (U.S.), 20 March 2013, via Factiva, © 2013 PR Newswire Association LLC.; “Hello Products LLC Raises Financing For Nationwide Launch Of Transformational Oral Care Range,” PR Newswire (U.S.), 18 March 2013, via Factiva, © 2013 PR Newswire Association LLC. 38 “L’Oréal Anticipates China As Biggest Luxury Cosmetics Market,” Dow Jones Top News & Commentary, 11 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “L’Oréal expands luxury cosmetics in China,” Financial Times, 10 April 2013, © The Financial Times Limited; “L’Oréal invents the luxury beauty of tomorrow in China,” Thomson Reuters ONE, 10 April 2013, via Factiva, © 2013 Thomson Reuters; “Cosmetics groups move deeper into China,” Financial Times, 23 April 2013, © 2013 The Financial Times Limited; “L’Oréal's China Push,” WWD, 12 April 2013, via Factiva, © 2013 Condé Nast. 39 “Beiersdorf Board Member for Europe, North America Leaves Company,” Bloomberg, 26 March 2013, via Factiva, © 2013 BLOOMBERG L.P.; “Handelsblatt: Beiersdorf regional head leaves,” Handelsblatt, 27 March 2013, via Factiva, © 2013 AII Data Processing Ltd.; “Beiersdorf chief of Europe/North America ops steps down,” Reuters News, 26 March 2013, via Factiva, © 2013 Reuters Limited; “Beiersdorf aims to make Chinese business profitable in 2014,” German Collection, 22 April 2013, via Factiva, © AII Data Processing Ltd.; “Beiersdorf targets bigger market share in 2013,” German Collection, 22 April 2013, via Factiva, © 2013 AII Data Processing Ltd.; “UPDATE 1-Beiersdorf’s Nivea gaining ground in China,” Reuters News, 18 April 2013, via Factiva, © 2013 Reuters Limited. 40 “Unilever calls on international suppliers to invest in Indonesia,” The Jakarta Post, 20 March 2013, via Factiva, © 2013 The Jakarta Post. 41 “Nanjing to get $100m manufacturing center,” Industry Updates, 16 April 2013, via Factiva, © 2013 China Daily Information Company. 42 “Kao Eyeing 5% Margin In Asian Consumer Business,” Nikkei Report, 19 March 2013, via Factiva, © 2013 Nihon Keizai Shimbun, Inc.


Shiseido will reportedly move production of its “core” Elixir women’s skin care brand from Japan to its Bien Hoa plant in Vietnam “in stages” by 2015 as part of a “major review” of its Asian cosmetics manufacturing operations.43

South Korean cosmetics manufacturer Cosmax has said that it expects to be “first among global cosmetics makers” by 2017. The company confirmed that construction of its second Chinese plant had completed, along with the renovation of an Indonesian plant acquired from L’Oréal which it said would produce around 40m units of cosmetics products per year and increase total global production capacity to 400m units.44

P&G has announced that it will invest US$175m in a new South African manufacturing plant due to start production of “a range of products” in 2016 “or early 2017.” Vice Chairman Global Business Units Dimitri Panayotopoulos said the plant was likely to be located in Guateng and commented: “We aim to make South Africa P&G’s manufacturing hub for the markets of Southern and East Africa. South Africa has the infrastructure and is good at innovation.” P&G also noted that a US$200m baby care products plant, currently under construction in Nigeria, was due to start production in 2014 and that the company was also upgrading its manufacturing plant in Morocco.45

Unilever has said that it is investing in innovation and new product delivery in Africa that is targeted at a “rising” middle class. Unilever East and South Africa Managing Director Yaw Nsarkoh commented: “We see new need clusters developing in the market. As incomes of people living in the region grow, market segmentation will begin to emerge. We have to listen to these consumers.” Nsarkoh also noted that Unilever’s strategy continued to be to meet the needs of all economic classes, stating: “We will not box ourselves into the bottom end or the top end of the market.”46

P&G VP for Southern and East Africa Standa Vecera has described the potential for the retail industry in Africa, outside South Africa, as “absolutely huge.” Vecera said that P&G was seeing growing consumption in its categories and commented: “It’s because of economic growth and people having more money, but it’s also about making sure that they have access to products they want.” Within South Africa, Vecera said there was “still scope” for store formats to be developed for “lower-income consumers close to the townships” and also noted that trade barriers between African countries “remained one of the biggest challenges in creating a sustainable brand on the continent.”47

Kenya’s Interconsumer Products will reportedly use the sale of the company’s health and beauty brands to L’Oréal to expand and improve the competitiveness of its sanitary care business. Founder Paul Kinuthia noted that demand was “high and growing” and said a new manufacturing plant in Nairobi would start production by December 2013 and replace the use of Chinese contract manufacturers. Kinuthia commented: “I will sacrifice some margins in local manufacturing but create jobs and increase access to diapers and pads that the majority of Kenyans have been unable to afford.” According to local reports, the Nairobi factory will produce All-Tyme sanitary pads, Bouncy diapers and Golden Shine shoe polish, with Interconsumer seeking to challenge the “dominance” of P&G in the local sanitary care market.48

Unilever Chief Operating Officer and Hindustan Unilever Chairman Harish Manwani has said that production at a new €50m aerosol deodorant manufacturing plant in India will start “soon.” The company is reportedly waiting for “certain approvals” to commission the Khamgaon plant which is situated in the state of Maharashtra and will reportedly supply India and other Southeast Asian markets.49

Oriflame has commented on the launch of its Optifresh toothpaste, along with “proprietary toothbrushes,” in the Kenyan market. Oriflame East Africa Marketing Director Harry Njagi reportedly said that the

43 “Shiseido Farms Out Cosmetics Production To Vietnam,” Nikkei Report, 14 April 2013, via Factiva, © 2013 Nihon Keizai Shimbun, Inc.; “IN BRIEF: Shiseido to make skin care products at Vietnam plant,” Nikkei Weekly, 22 April 2013, via Factiva, © 2013 Nihon Keizai Shimbun, Inc. 44 “Cosmax renovates cosmetics plant in Indonesia,” Yonhap English News, 28 March 2013, via Factiva, © 2013 Yonhap News Agency. 45 “UPDATE 1-P&G invests $450 mln in new, better African plants,” Reuters News, 19 March 2013, via Factiva, © 2013 Reuters Limited; “P&G building $174M plant in South Africa,” Business First of Columbus Online, 18 March 2013, via Factiva, © 2013 American City Business Journals, Inc; “Procter & Gamble eyes SA as its African markets hub,” Business Day, 18 March 2013, via Factiva, 2013. © Business Day; “P&G to invest $450M in African factories,” Cincinnati Business Courier Online, 20 March 2013, via Factiva, © 2013 American City Business Journals, Inc.; “Local P&G plant seen as vote of certainty Investment will be R1.6bn,” Cape Times, 18 March 2013, via Factiva, © 2013 Independent Newspapers (Pty) Ltd.; “PROCTER & GAMBLE. Regional ambitions,” Financial Mail, 29 March 2013, via Factiva, © 2013 Financial Mail. 46 “Firms target Africa’s fast-growing middle class with fresh products,” Daily Nation, 15 April 2013, via Factiva, © 2013 Nation Media Group. 47 “Procter & Gamble sees growth opportunities in Africa,” Business Day, 3 April 2013, via Factiva, © 2013 Business Day. 48 “Man who made billions selling cosmetics to France’s L’Oreal,” Business Daily, 18 April 2013, via Factiva, © 2013 Nation Media Group; “Investor takes on P&G with new plant after L’Oreal sale,” Business Day, 15 April 2013, via Factiva, © 2013 Nation Media Group. 49 “Fate of brands caught in web of social media: Manwani,” The Times of India – Hyderabad Edition, 20 March 2013, via Factiva, © 2013 Bennett, Coleman & Co., Ltd.; “Unilever is planning to set up Asian aerosol deodorant manufacturing facility in Khamgaon, Maharashtra,” Projects Today, 8 March 2013, via Factiva, © 2013 Economic Research India Pvt. Ltd.; “Hindustan Unilever to start operation at aerosol deodorant unit in Maharashtra,” Accord Fintech, 20 March 2013, via Factiva, © 2013 Accord Fintech.


“whitening abilities” of Optifresh would be key to growing sales. Meanwhile, P&G has reportedly launched its Oral-B toothbrush brand in Kenya.50

PZ Cussons has said that its sales continue to be impacted by “social unrest” in the northern part of Nigeria and noted that the trading environment was “more robust” in the rest of the country.51

Unilever’s COO has said that, after Brazil, Russia, India and China, Africa is the “next frontier for growth.” Harish Manwani commented: “Without doubt, there are 800 million people living in sub-Saharan Africa. And their GDP growth has been steady at 5 to 6 percent per annum.” Manwani also noted that countries with a population of more than 100m had “huge business potential” and said that Unilever’s focus in those markets was to be “locally relevant and globally leveraged.”52

Kirin’s Lion subsidiary has reportedly said that it will introduce its Systema toothpaste and toothbrush brand in the Philippines in June 2013 and start sales of Systema toothpaste in Indonesia, where the company already sells Systema toothbrushes. The products will reportedly cost around 50% more than local brands. Lion President Itsuo Hama noted that the company was offering “high-quality” products that would be “priced reasonably for local middle-class consumers.”53

Dabur has said that it is developing a “higher-margin” toothpaste for sensitive teeth. CEO Sunil Duggal said that sensitive teeth were a “wide ranging ailment,” with current products “available at very high prices,” and noted that the Indian market for such products was growing at an annual rate of around 25%.54

A Franchise India study has suggested that “multiple” private equity investors will help to consolidate and expand India’s beauty services sector, assisting personal care manufacturers in the process. Franchise India President Gaurav Marya said private equity players were working with operators to modernize existing beauty services chains and commented: “Further, the beauty products companies also want the services segment to get modernized. While both PE firms and product companies will push the sector towards modernization, several product companies will extend themselves into services and attract PE investments.”55

L’Oréal has reportedly developed a “three-pronged” strategy for growth in the Indian market, including new product development at its Mumbai research and innovation center, the introduction of “smaller packs at affordable price points” and initiatives to increase the visibility of its products. L’Oréal India Consumer Products Director Satyaki Ghosh commented: “When we go to a new town, we take some retail space in markets and put up pictures of brands and its celebrity endorsers. The idea is to create a L’Oréal India ambiance in our retail space.”56

Kimberly-Clark’s Indian joint venture with Unilever has said that it plans to begin selling the Huggies diaper brand in family “kirana” stores. Kimberly-Clark Lever Managing Director Prakash Iyer said the “trend in the diaper category” was moving from modern trade and chemists to grocers and kirana stores and also noted that the company was “attempting to recruit more consumers” through the “convenient and cheaper” ecommerce route. Separately, Kimberly-Clark Asia Pacific President Achal Agarwal noted that Indian mothers were “difficult to crack” and there was a “mindset issue that wearing diapers for long” was “bad for skin.” Agarwal commented: “We need to change that and create India-specific products, which are softer and have more breathability, so that they are used more often.”57

India’s Emami Group has responded to speculation that the company could seek to move its headquarters from Kolkata to Mumbai. In a statement, the company said: “Contrary to a news report published in one of the prominent business dailies regarding shifting our operational Headquarters out of Kolkata, we strongly refute this speculative and baseless news.”58

50 “Oriflame launches toothpaste brand in Kenya,” Business Daily, 8 April 2013, via Factiva, © 2013 Nation Media Group; “P&G unveils toothbrush brand,” Business Daily, 16 April 2013, via Factiva, © 2013 Nation Media Group. 51 “PZ CUSSONS PLC Interim Management Statement,” Regulatory News Service, 11 April 2013, via Factiva, © 2013. 52 “Unilever sees Africa as major FMCG market, after BRIC nations,” Press Trust of India, 19 March 2013, via Factiva, © 2013 The Press Trust of India Limited; “Unilever looks to tap rural India, Africa to offset global slowdown,” Financial Chronicle, 19 March 2013, via Factiva, © 2013 Deccan Chronicle Holdings Ltd. 53 “Lion Zeroing In On SE Asia’s Middle Class,” Nikkei Report, 6 April 2013, via Factiva, © 2013 Nihon Keizai Shimbun, Inc. 54 “Sensitive Teeth to Help Dabur Revive Margin: Corporate India,” Bloomberg, 21 March 2013, via Factiva, © 2013 BLOOMBERG L.P. 55 “Salons attract more PE investments,” Financial Chronicle, 20 March 2013, via Factiva, © 2013 Deccan Chronicle Holdings Ltd. 56 “L’Oreal draws up 3-pronged strategy for growth,” Financial Express, 13 March 2013, via Factiva, © 2013 Indian Express Online Media Pvt. Ltd. 57 “Huggies diapers to hit kirana stores piggybacking HUL’s network,” Business Line (The Hindu), 6 March 2013, via Factiva, © 2013 The Hindu Business Line; “Huggies diapers to hit kirana stores: reports,” Indiainfoline News Service, 6 March 2013, via Factiva, © 2013 Indiainfoline Ltd.; “Huggies diapers will piggyback on HUL’s network to reach kirana stores,” Business Line (The Hindu), 6 March 2013, via Factiva, © 2013 The Hindu Business Line; “Huggies maker sees need to create India-specific products,” The Economic Times, 15 April 2013, via Factiva, © 2013 The Times of India Group. 58 “Not shifting from Kolkata: Emami,” India Blooms News Service, 14 March 2013, via Factiva, © 2013 India Blooms, distributed by Contify.com; “Emami, Shrachi to move operational


Bourjois, the beauty brand owned by Chanel, has reportedly partnered with Brazilian door-to-door company Racco whose 500,000 sales representatives will sell “selected products” in Brazil from April 2013.59

Unilever has commented on the challenges of using television advertising in Middle East markets. According to The Wall Street Journal, the price paid by advertisers in Saudi Arabia and the United Arab Emirates has “no direct correlation” with the audience reached, with a “lack of transparency in the audience size of regional-TV broadcasters” and media firms charging “high fees.” David Porter, Unilever Media Director for the Middle East, North Africa, Russia and Turkey, commented: “The problem we have here is that one of the most important influences is knowing the audience and the truth is we do not know the audience. But data will attract more advertising dollars to the region because, at the moment, the money that could flow here doesn’t.”60

L’Oréal’s Indian subsidiary has reportedly appointed public relations agency, Genesis Burson-Marsteller, to manage communications for its L’Oréal Paris, Maybelline and Garnier brands in India. L’Oréal India Consumer Products Division Director Satyaki Ghosh commented: “L’Oréal, the world leader in cosmetics, is synonymous with beauty, innovation and scientific excellence ... It’s important that our comms team also be innovative, finding creative ways to showcase our brands.”61

Focus on mature markets

P&G has announced the US launch of a new Old Spice line of soap bars in three fragrances. The soaps will be targeted at men aged between 25 and 34 years old and will cost US$1.79 per pack of two bars and US$3.00 per pack of six bars. The company said that its research indicated that bar soap was popular among men. Old Spice Brand Manager Jason Partin commented: “We know that 42 percent of guys use bar soap in the shower, but only 15 percent of bar soap has ‘manly’ scents.”62

P&G has commented on its role as “presenting sponsor” at Hispanicize 2013, the annual US “Latino trends event.” Associate Director Multicultural Marketing Lauren Hoenig commented: “For more than 50 years, P&G has recognized the Hispanic community as an important consumer and business segment and we are honored to be the presenting sponsor of the Latino trends event of the year.”63

Estèe Lauder is to launch three new beauty collections in collaboration with designer Michael Kors. The Sporty, Sexy and Glam lines each reportedly include a fragrance, two lip lacquers, two lip glosses and two nail polishes, along with bronze powders and sun and body products. According to WWD, the line could generate US$80m in its first year. Veronique Gabai-Pinsky, President of Estèe Lauder’s Aramis & Designer Fragrances division, said the line was designed to boost Kors’ “beauty credentials” by offering a wide range of products and noted: “Michael’s on fire, and it’s the right time to accelerate globally and the right time to maximise his involvement in the beauty world.”64

Estée Lauder has launched a second limited edition cosmetics collection “inspired by” the US “Mad Men” television series. The SVP and Global Creative Director Richard Ferretti commented: “For a grandmother, it;s a bit of a memory. For a mother, they might think about their mother. For a young girl, it’s a bit of vintage cool.” The “three-piece” lipstick, blush and nail polish collections reportedly “capture the beauty trends of the 1960s.”65

Tena, the incontinence brand owned by SCA Personal Care, has said that it has replaced references to absorbency from the names of “most” of its urinary incontinence products, instead using the “lifestyle terms” of “Active, Stylish and Anywhere.” North America VP Consumer Sales Robert Wilson said that consumers were “looking for a more intuitive approach to get products that fit with their lifestyle” and the brand was “taking cues” from the marketing of baby diaper brands.66

Swedish direct selling beauty company Oriflame has reportedly said that it will invest in the Irish market, following the announcement that Avon is to withdraw from the country. The company, which has reportedly

headquarters out of Kolkata,” Indiainfoline News Service, 14 March 2013, via Factiva, © 2013 Indiainfoline Ltd.; “Emami and Shrachi to move operational HQs out of Kolkata,” Business Standard, 14 March 2013, via Factiva, © 2013 Business Standard Ltd. 59 “If you can’t beat ‘em…,” BW Confidential, 18 April 2013, via Factiva, © 2013 BW Confidential. 60 “Media: Mideast Firms Aim to Boost Region’s TV Ad Spending,” The Wall Street Journal, 8 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc. 61 “Global: L’Oreal India signs up B-M,” PR Week, 22 March 2013, via Factiva, © 2013 PR Week, a Haymarket publication www.haymarketgroup.com. 62 “Move over body wash: Old Spice goes retro, introduces line of bar soap for guys,” Associated Press Newswires, 8 April 2013, via Factiva, © 2013 The Associated Press. 63 “Procter & Gamble Becomes Presenting Sponsor of Hispanicize 2013,” Hispanic PR Wire, 3 April 2013, via Factiva, © 2013 Hispanic PR Wire. 64 “Michael Kors to launch make-up collection; US fashion label Michael Kors moves in on the beauty world with a Sporty, Sexy and Glam trio of cosmetic collections,” The Telegraph Online, 15 April 2013, via Factiva, © 2013 Telegraph Media Group Ltd.; “Michael Kors Adds Color, Body Care to Beauty Lineup,” WWD, 12 April 2013, via Factiva, © 2013 Condé Nast. 65 “Cosmetics Flashback,” The Wall Street Journal Online, 3 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “Mad Men inspires Estee Lauder latest.(cosmetics PRODUCT REPORT: the global guide to new products),” Cosmetics International, 22 March 2013, via Factiva, © 2013 Gale Group Inc. 66 “Tena Tries Fresh Terms For a Delicate Topic,” The New York Times, 16 April 2013, via Factiva, © 2013 The New York Times Company.


expanded at a rate of 40% in Ireland in the last year, said it planned to create an additional 2,000 jobs over the next two years. Regional Manager Yvonne Flavin commented: “We will invest heavily through training, innovation and brand-building, thereby securing a long-term sales force increase.”67

Coty has launched a facial skin care range for the Chloé fragrance line in Japan called Crème de la Rose. The move is reportedly the first time that Coty has extended one of its fragrance brands into facial skin care. Coty Prestige President Jean Mortier noted: “This is a real entry into skin care for Chloé. We’ve chosen two very exclusive flagships for the first doors, as that exclusive offering is very attractive to the Japanese consumer.”68

L’Oréal’s UK subsidiary has commented on a plan to develop the “general management” skills of its marketing team through mandatory placements in the company’s commercial department. L’Oréal UK & Ireland Managing Director Jeremy Schwartz said the move aimed to make marketers “more commercially adept and have a more rounded experience” and commented: “You can progress up the organization when you understand how it works.”69

Regulation and litigation

Germany’s Federal Cartel Office has said that it has fined six manufacturers, including P&G, L’Oréal, Beiersdorf, GlaxoSmithKline and Erdal-Rex, a total of €39m for the “illegal exchange” of competitive information between 2004 and 2006. Cartel Office President Andreas Mundt said the companies had impeded competition by sharing information for personal care, laundry and cleaning products during “working groups” held by trade association Markenverband which has also been fined. Colgate-Palmolive will reportedly be exempt from charges as it informed the authorities of the “irregularities.” An earlier phase of the investigation resulted in total fines of €24m for nine companies. In response, L’Oréal Germany said it “did not take part in any anti-competitive exchange of information” and said it would appeal. Meanwhile, a spokesperson for P&G said the company planned to appeal and noted that one of the company’s “key principles” was to “work within the law wherever it operates.” Meanwhile, Beiersdorf has reportedly “already agreed a settlement.”70

An EU ban on the sale of cosmetics developed through animal testing has come into force. The European Commission said that the move was “in line with what many European citizens believe firmly: that the development of cosmetics does not warrant animal testing.” EU Health Commissioner Tonio Borg noted that the EU would continue “supporting the development of alternative methods and to engage with third countries to follow our European approach.”71

P&G has expressed its support for the Trans-Pacific Partnership trade agreement currently being negotiated between the US and 11 Asia-Pacific countries. VP Global Government Relations Carolyn Brehm said the company supported the agreement as a route to making international trade “easier and less expensive” while Government Relations Senior Manager Nate Graham said the agreement would “simplify” regulations for products such as Crest toothpaste which some countries regulated “as a drug and others as a cosmetic product” and noted: “The cost of compliance is very high.”72

L’Oréal and Beiersdorf have joined a US coalition of manufacturers, dermatologists and skin cancer groups calling for the US to “speed up” the approval of “the next generation” of ultraviolet light active filters for use in sunscreen protection. A spokesperson for the Public Access to Sunscreens (PASS) Coalition commented: “A main issue is timely review of new, innovative UVA filters that are approved and used around the world, but not in the US. Some have been under review for 10 years.”73

67 “Oriflame prepares to cash in on Avon’s departure; PostScript Inside the world of media & marketing,” Irish Independent, 11 April 2013, via Factiva, © 2013 Independent Newspapers Ireland Ltd. 68 “Chloé Adds Facial Skin Care in Asia,” WWD, 15 March 2013, via Factiva, © 2013 Condé Nast. 69 “Programme to give marketers commercial skills,” Marketing, 20 March 2013, via Factiva, © 2013 Marketing, a Haymarket publication. 70 “Germany fines consumer goods firms in information-sharing probe,” Reuters News, 18 March 2013, via Factiva, © 2013 Reuters Limited; “Die Welt: Cartel office fines six drugstore firms EUR 39m,” Die Welt, 19 March 2013, via Factiva, © 2013 AII Data Processing Ltd.; “P&G owes fine in anti-competitive sharing probe,” Cincinnati Business Courier Online, 19 March 2013, via Factiva, © 2013 American City Business Journals, Inc. 71 “EU bans sale of all cosmetics tested on animals,” Agence France Presse, 11 March 2013, via Factiva, © 2013 Agence France-Presse. 72 “P&G, ambassadors lobby for Trans-Pacific Partnership in Cincinnati,” Business First of Columbus Online, 16 April 2013, via Factiva, © 2013 American City Business Journals, Inc.; “P&G, ambassadors push for free-trade deal,” Cincinnati Business Courier Online, 15 April 2013, via Factiva, © 2013 American City Business Journals, Inc.; “Delegation visits Tristate, touts Pacific trade pact,” The Cincinnati Enquirer, 13 April 2013, via Factiva, © 2013 The Cincinnati Enquirer. 73 “Unlikely Alliance Presses for Sunscreen Approvals,” CQ News, 19 March 2013, via Factiva, © 2013 CQ Transcriptions, Inc.; “’PASS’ pushes the issue: a coalition that includes sunscreen ingredient companies, dermatologists and sunscreen manufacturers calls on FDA to create a pathway for new UV filters,” Household & Personal Products Industry, 1 April 2013, via Factiva, © 2013 Gale Group Inc.


Sustainability

Unilever has said that brands that have made sustainability “central to their brand proposition or product innovation” showed “accelerated” sales in 2012. The company’s second “Sustainable Living Plan Progress Report” noted that Lifebuoy soap had reported “double digit growth” while dry shampoos grew by nearly 20%. The company said it had made “solid progress” towards two of its three 2020 “big goals,” to help over a billion people to “take action to improve their health and well-being” and to source 100% of agricultural raw materials sustainably. It also noted “good progress” in those areas it could control toward its third goal of halving “the environmental footprint of its products across the value chain.” CEO Paul Polman said that business had “a big role to play in striving for more equitable and sustainable growth” and noted that “large-scale” change required “real collaboration between companies, governments and NGOs.”74

Kimberly-Clark has commented on its selection of PE International’s SoFi software solution to “track, monitor and report” on “all aspects” of water consumption and energy from its 105 manufacturing facilities and 50 administrative offices globally. Air Program Leader Dell Majire said: “We selected the SoFi platform for its visualization capabilities combined with the ease and reliability with which it can handle complex calculations, projections and forecasting.” Meanwhile, PE International North America Director John Heckman commented: “Kimberly-Clark is an existing customer of our GaBi software for product sustainability and we are thrilled to expand our relationship with the company to another critical aspect of their business.”75

Unilever CEO Paul Polman has described capitalism as being “in crisis” and said that social cohesion will be “the biggest challenge” for society. Polman commented: “If you are single–mindedly focused on any one value driver, you will not be successful. If you only focus on being sustainable, it would be wrong; if you focused just on shareholder value maximization, that would be wrong. The challenge in this new world is to balance it all.”76

Unilever Chief Operating Officer and Hindustan Unilever Chairman Harish Manwani has said that growth “is no longer enough and a series of measures have to be undertaken to build public trust.” Manwani said that company leadership should be “value-led and purpose driven” and noted: “The trust levels in business are at an all-time low as we are living in a VUCA (volatility, uncertainty, complexity and ambiguity) world.”77

P&G has announced that 45 manufacturing plants, a third of its total global manufacturing facilities, are now sending zero manufacturing waste to landfill. The company said that less than 1% of all raw materials entering its sites globally left as waste and that efforts to “find worth in waste” over the previous five years had created “over US$1b in value” for the company. Chairman, President and CEO Bob McDonald commented: “We have a vision for the future, where plants are powered by renewable energy, products are made from recycled and renewable materials and resources are conserved, with no waste going to landfill.”78

Unilever has announced that all 26 of its facilities in the US and Canada are now “zero waste to landfill” and said that its “design once and deploy everywhere” philosophy was driving a sustainable model that was “good for the environment and saves costs.” Unilever North America President Kees Kruythoff commented: “This achievement is an important milestone for Unilever as we continue to fulfill our vision of significantly reducing our environmental impact while doubling our business.” Separately, Group Manufacturing Sustainability Director John Maguire said: “Eco-efficiency isn’t just about reducing the environmental footprint it also makes good business sense. Since 2008 our eco-efficiency programs have avoided more than €300 million of costs.”79

Unilever has said that a new memorandum of understanding, signed with Dubai Electricity and Water Authority, forms part of its focus on partnering with non-governmental organizations and government agencies “to help educate consumers” and “ensure the best use” of natural resources. Unilever Gulf

74 “Unilever Sustainable Living Plan Helping to Drive Growth,” Business Wire, 22 April 2013, via Factiva, © 2013 Business Wire. 75 “Germany: Kimberly-Clark selects PE INTERNATIONAL for corporate wide sustainability management,” Mena Report, 4 April 2013, via Factiva, © 2013 Al Bawaba (Albawaba.com). 76 “Paul Polman: Rebuilding capitalism from the basics; Unilever CEO sees balanced, long-term sustainability as key to ensuring the greater good for all,” The Globe and Mail, 10 March 2013, via Factiva, © 2013 The Globe and Mail Inc. 77 “Fate of brands caught in web of social media: Manwani,” The Times of India – Hyderabad Edition, 20 March 2013, via Factiva, © 2013 Bennett, Coleman & Co., Ltd. 78 “P&G plants recycle for zero waste,” The Cincinnati Enquirer, 4 April 2013, via Factiva, © 2013 The Cincinnati Enquirer; “P&G Achieves Zero Manufacturing Waste at 45 Sites Worldwide,” Business Wire, 2 April 2013, via Factiva, © 2013 Business Wire. 79 “Unilever Achieves 100% Zero Waste to Landfill at All 26 Facilities in North America,” Business Wire, 17 April 2013, via Factiva, © 2013 Business Wire; “Unilever strategy cuts CO2 emissions by one million tonnes,” ClickGreen, 17 April 2013, via Factiva, © 2013 ClickGreen Media Limited.


Managing Director Arijit Ghose noted: “There is only 5% of the environmental footprint caused by manufacturers like our company while 68% of which is produced for the consumer.”80

Unilever has launched a water conservation campaign in the United Arab Emirates, in partnership with local retail company Lulu Group. The company said the campaign, under its “Water Savers” initiative, aimed to “empower” consumers through educational and practical tools and achieve water savings equivalent to “the size of 1,310 Olympic-sized swimming pools.”81

L’Oréal has announced that it has joined 32 “leading companies and consumer brands” to call for US regulators and legislators “to put climate change on the federal policy agenda.” Executive Managing Director on Environment, Health and Safety Miguel Castellanos noted that L’Oréal had reduced its greenhouse gas emissions by 38.8% since 2005 and said the company recognized the need for a regulatory framework and incentives to “accelerate changes in the areas of renewable energy development and CO2 emissions reductions,” along with multi-stakeholder engagement to address the “complex” issue of “extreme weather effects.”82

Unilever’s Indian subsidiary has commented on the company’s presence at the Kumbh Mela in Allahabad, the Hindu religious gathering which is reportedly attended by up to 100 million people. Hindustan Unilever Head of Personal Wash Sudhir Sitapati said three million chappatis heat stamped with the message “Have you washed your hands with Lifebuoy?” were being distributed to promote brand awareness and educate consumers on the importance of hand hygiene. The company also reportedly distributed free bars of soap as well as advertising on hoardings.83

Unilever has commented on its receipt of a 2013 “Catalyst Award” from non–profit organization Catalyst for the company’s “exceptional initiatives which expand opportunities for women and business in ways that are successful and locally relevant within their workplaces and communities.” CEO Paul Polman said: “We are delighted to be recognized by Catalyst for our long–standing commitment to gender balance. From our successful mentoring program to our rollout of flexible working, I am very encouraged by the progress we are making to help both men and women at Unilever reach their full potential.”84

India’s ITC is reportedly planning to “double” its proportion of women employees to 30%. The company said it had identified a “pipeline” of over 20 “mid-to-senior level” women managers to be “fast-tracked into succession planning” and intended that 30% of its “campus recruits” would be women. Executive VP Corporate HR Anand Nayak commented: “We have to shape our talent pool in line with our business requirement. ITC’s transformation into a diversified Indian enterprise will enhance gender diversity.”85

P&G’s Managing Director for Australia and New Zealand has said that the cost and availability of childcare is “a disproportionate barrier” to gender diversity in corporate leadership. Maile Carnegie commented: “As a percentage of after-tax income, childcare is incredibly expensive. When you look at the numbers and where women’s participation falls off, it is typically around childbearing age.” Carnegie noted that P&G set targets, held leadership “accountable for many types of diversity” and talked about growing diversity “as a capability problem.” She commented: “The companies that I’ve seen make progress are the ones that ground themselves in the data. Not just top-line stuff, but a detailed look at where their biggest problem areas are – where their participation rates drop off.”86

P&G has commented on its support of a US documentary called “Imagine a Future” that aims to “empower African-American women.” Lauren Hoenig, Associate Director for Multicultural Marketing, said: “There is a need to celebrate black beauty and support diversity, and all of our brands view the African-American consumer as a very important consumer.” In response to reported criticism that P&G’s manufacturing of skin-whitening products “undermined” the positive message of the film, the company stated that it did not market its White Radiance and Natural White products in the US and commented: “These kinds of products are very popular in Asia and are designed to help women address uneven skin tone, and dullness which may

80 “DEWA Signs MoU With Unilever on Second Day of WETEX 2013,” Islamic Finance News, 18 April 2013, via Factiva, © 2013 Contify.com. 81 “Unilever and Lulu Launch a National Water Conservation Campaign Across UAE,” Islamic Finance News, 21 March 2013, via Factiva, © 2013 Contify.com. 82 “L’Oreal Signs The Climate Declaration In Support Of Climate Change Policy,” PR Newswire (U.S.), 10 April 2013, via Factiva, © 2013 PR Newswire Association LLC. 83 “Remember cleanliness is next to godliness,” The Times, 7 March 2013, via Factiva, © 2013 Times Newspapers Ltd.; “Seeking brand Salvation,” Financial Express, 12 March 2013, via Factiva, © 2013 Indian Express Online Media Pvt. Ltd. 84 “Catalyst Award Honors Global Initiatives at Alcoa Inc., The Coca-Cola Company, and Unilever for Advancing Women and Business,” Business Wire, 19 March 2013, via Factiva, © 2013 Business Wire. 85 “ITC plans to double proportion of women employees to 30%: report,” Indiainfoline News Service, 16 April 2013, via Factiva, © 2013 Indiainfoline Ltd.; “ITC to double proportion of women employees to 30 pc,” The Economic Times, 16 April 2013, via Factiva, © 2013 The Times of India Group. 86 “How childcare costs strangle the pipeline of female leaders: P&G’s Maile Carnegie,” Leading Company, 8 March 2013, via Factiva, © 2013 Private Media Partners Pty Ltd.


be caused by acne, skin discoloration issues, or overexposure to the environment and help restore the skin’s original tone.”87

Natura has said that it aims to increase the percentage of ingredients it sources from the Brazilian Amazon region to 30% by 2020, up from 10% currently. The company, which has opened a new local “innovation center,” said that it had agreements with 36 communities in the region and noted that around eight percentage points of the 10% of its raw materials currently sourced from the Amazon came from palm oil while two percentage points came from “more exotic products from the small community associations.” Co-Chairman Guilherme Peirão Leal commented: “Brazil has one of the greatest natural patrimonies in terms of biodiversity. How do we transfer this patrimony into wealth that can be shared by all?”88

Green Innovations, the North American distributor of “eco-friendly” personal care and paper products through its Green Hygienics subsidiary, has said that it expects “100% tree-free bamboo products” to be “the future” of the industry. Newly appointed CEO Philip Rundle noted that a “relatively small” company like Green Hygienics could compete with Kimberly-Clark and other major players “with new innovative products in a more than US$30 billion market.“ Rundle commented: “While they are busy developing new products, processes, and capacity, Green Hygienics has already sourced products exclusive to the North American market and is currently capable of supplying the very largest national retailer and distributor accounts.”89

Institutional Investor magazine has announced that Unilever has been ranked as having the top senior management of any major European company. The 2013 All-Europe Executive Team ranking was based on the votes of 858 analysts from investment managers and 1,580 analysts from sell-side firms.90

Financial news/performance

P&G has released financial results for its third quarter. Net sales for the three months to 31 March 2013 rose by 2% to US$20.6b while organic sales rose by 3% with a 2% rise in unit volume and positive pricing of 1%. Net income rose by 6.4% to US$2.57b while core earnings per share rose by 5% to US$0.99 and diluted earnings per share rose by 7% to US$0.88. In the beauty segment, net sales were down 2% with “heavy competitive product and promotional activity” reported for hair care and skin care. Net sales in the grooming and beauty care segments were both down 2% while fabric care and home care sales were flat, baby care and family care sales rose by 3% and health care sales rose by 8%. P&G said that it had held or gained market share in businesses representing over 50% of its sales globally, and in two-thirds of its sales in the US market. Chairman, President and CEO Bob McDonald said that the company’s performance was “on track” and commented: “Top-line growth was in line with our expectations. Market shares improved broadly. Strong cost savings enabled us to exceed our outlook on the bottom line.” McDonald noted that the market was “rather choppy” and said the company expected “further top-line improvement” in its fourth quarter which would be “driven by innovation and portfolio expansion, enabled by continued productivity improvement.” P&G forecast fourth quarter core earnings per share of US$0.69-US$0.77 and increased the low end of the range for its full year core earnings per share guidance by US$0.02, to US$3.96-US$4.04 per share.91

L’Oréal has released financial results for its first quarter. Sales for the period rose by 5.1% to €5.93b with like-for-like sales up 5.5%. Consumer products division sales rose by 5.5% while active cosmetics sales rose by 6.2% and luxury division sales rose by 8.1%. Professional products sales fell by 0.4% which the company attributed to a “difficult situation” in southern Europe. North American sales were up 8.5% with “new markets” sales up 6.7% and Western Europe sales up 1.9%. The company reported “new records” for market share in Western Europe and North American and said it was “confident” of outperforming the cosmetics market which it expected to expand “nearer 4 percent than 4.4 percent” in 2013. CEO Jean-Paul Agon commented: “L’Oréal has made a solid start to the year, with good organic growth, along with really significant market share gains.”92

87 “Celebrating Black Beauty And Advocating Diversity,” The New York Times, 19 April 2013, via Factiva, © 2013 The New York Times Company. 88 “Rich pickings in the Amazon,” Financial Times, 22 April 2013, © The Financial Times Limited. 89 “Green Innovations CEO Rundle Provides Outlook on the Future of 100% Tree-Free Bamboo Paper Products,” PR Newswire (U.S.), 19 April 2013, via Factiva, © 2013 PR Newswire Association LLC. 90 “Unilever Tops List as an Institutional Investor’s All-Europe Executive Team Ranking,” PR Newswire (U.S.), 19 March 2013, via Factiva, © 2013 PR Newswire Association LLC. 91 “P&G Delivers Third Quarter Core EPS of $0.99, Organic Sales Up 3%,” Business Wire, 24 April 2013, via Factiva, © 2013 Business Wire; “P&G sales growth falls short of forecasts,” Financial Times, 24 April 2013, © 2013 The Financial Times Limited; “P&G Investors Antsy for Stronger Sales Growth,” The Wall Street Journal Online, 24 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “Procter & Gamble 3rd-Quarter Profit Up 6.4% on Revenue Growth,” Dow Jones Top Global Market Stories, 24 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “Procter & Gamble 3Q net income rises; but revenue, 4Q outlook miss expectations,” Associated Press Newswires, 24 April 2013, via Factiva, © 2013 The Associated Press; “P&G Drops as Forecast Trails Estimates on Currency Impact,” Bloomberg, 24 April 2013, via Factiva, © 2013 BLOOMBERG L.P. 92 “L’Oréal: News Release: “First quarter 2013 sales”,” Thomson Reuters ONE, 18 April 2013, via Factiva, © 2013 Thomson Reuters; “L’Oreal First-Quarter Sales Beat Analysts’ Estimates on Luxury-Brand Sales,” Bloomberg, 18 April 2013, via Factiva, © BLOOMBERG L.P.; “L’Oreal Confirms Guidance On Strong U.S., Emerging Mkts,” Dow Jones Global News


Kimberly-Clark has announced financial results for its first quarter. Net sales for the three months to 31 March 2013 rose by 1% to US$5.3b while organic sales were up 3% compared to a year earlier, with sales volumes up 2% and higher net selling prices of 1%. Operating profit rose 12% to US$783m, with adjusted operating profit up 16% to US$850m. Adjusted earnings per share were US$1.48, compared to US$1.24 in the prior year, which the company said was driven by “organic sales growth, cost savings and higher other income, partially offset by input cost inflation, increased marketing, research and general spending and a higher effective tax rate.” Personal care sales rose by 1%, with a 3% rise in organic sales volumes and a 1% rise in net selling prices, while consumer tissue sales rose by 4%, with a 4% rise in organic sales volumes and a 1% rise in net selling prices. Kimberly-Clark increased its adjusted earnings per share forecast for 2013 from US$5.50-US$5.65 to US$5.60-US$5.75, a 7%-10% increase on 2012. Chairman and CEO Thomas Falk described the results as “strong,” with “solid” organic sales growth, “improved” cash flow, adjusted gross margin and operating profit margin and “all-time record” adjusted earnings per share “reflecting continued momentum in K-C International, US$85 million of cost savings from our ongoing FORCE program and above-plan volume growth in North American consumer tissue.”93

Johnson & Johnson has reported financial results for its first quarter. Worldwide consumer sales rose by 2% to US$3.7b for the period with baby care products, Listerine mouthwash and the Neutrogena skin care brand making a “positive” contribution to operating results. Chairman and CEO Alex Gorksy commented: “We delivered solid first-quarter results led by the success of many of our recently launched pharmaceutical products and the addition of Synthes to our orthopedics business.94

Henkel has announced financial results for financial year 2012. The beauty care business reported a 3.1% rise in organic sales, which the company attributed to a “strong innovation program,” while adjusted operating profit rose by 6.8% to €514m which Henkel said was the sector’s “highest earnings figures to date.” CEO Kasper Rorsted said that beauty care, along with laundry care and home care and adhesives technologies, showed “profitable growth” and market share expansion and commented: “2012 was the most successful year for Henkel so far: we achieved excellent results in a highly volatile and competitive market environment and met or exceeded all financial targets.” The company also announced a 19% increase in its 2012 dividend to €0.95 per preference share and €0.93 per ordinary share.95

Shiseido has announced a write-down of its 2010 acquisition of US cosmetics company Bare Escentuals due to lower than expected sales. The company said that it would book a ¥28.6b impairment loss on the intangible assets of Bare Escentuals and forecast a ¥14.7b loss for the year to March 2013, compared to its earlier forecast of a profit of ¥10.5b. The company commented: “Bare Escentuals has taken longer than initially envisioned to grow its retail business. The gap between its sales budget and sales performance has been widening during recent months.” Shiseido also reduced its sales forecast for the year to March 2013 from ¥680.0b to ¥677.5b.96

Avon has announced the completion of a public offering of US$1.5b in senior unsecured notes, resulting in proceeds of US$1.48b. The company said it had also entered into a four-year US$1b unsecured revolving credit facility, replacing an earlier US$1b facility, and would repay US$1.9b in debt. Avon EVP and CFO Kimberly Ross said: “Through this refinancing, we have achieved increased financial flexibility, which is critical to our ability to successfully execute Avon’s turnaround.” The company said it expected interest expense to increase by around 10% in 2013, compared to the prior year, “as it extended its maturity profile and decreased reliance on floating rate debt.”97

Colgate-Palmolive has announced plans for a two-for-one split of the company’s common stock and a 10% increase in its quarterly cash dividend, both effective in the second quarter. The company said the record date for the share split would be close of business on 23 April 2013, with shares to be distributed on 15 May 2013. Meanwhile, a quarterly dividend of US$0.68 per share “on a pre-split basis,” will be paid on 15 May 2013. Chairman, President and CEO Ian Cook said the company had ended 2012 with “excellent

Select, 18 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “L’Oreal says confident on 2013 after sales rise 5.1%,” Agence France Presse, 18 April 2013, via Factiva, © 2013 Agence France-Presse; “L’Oreal First-Quarter Sales Beat Analysts’ Estimates,” Bloomberg, 19 April 2013, via Factiva, © 2013 BLOOMBERG L.P. 93 “2nd UPDATE: Kimberly-Clark 1Q Net Up 13%; Beats Street Views,” Dow Jones Global News Select, 19 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “Kimberly-Clark Announces First Quarter 2013 Results,” PR Newswire (U.S.), 19 April 2013, via Factiva, © 2013 PR Newswire Association LLC. 94 “Johnson & Johnson slips in first quarter,” Financial Times, 16 April 2013, © The Financial Times Limited; “Johnson & Johnson Reports 2013 First-Quarter Results,” PR Newswire (U.S.), 16 April 2013, via Factiva, © 2013 PR Newswire Association LLC. 95 “Boersen-Zeitung: Henkel raises dividend, plans acquisitions after strong 2012,” Boersen-Zeitung, 7 March 2013, via Factiva, © 2013 AII Data Processing Ltd; “Henkel AG & Co. KGaA to Propose FY 2012 Dividend,” Reuters Significant Developments, 6 March 2013, via Factiva, © 2013 Reuters; “Henkel says ‘well positioned’ after successful 2012,” Agence France Presse, 6 March 2013, via Factiva, © 2013 Agence France-Presse; “HenKel's sales and earnings reaching record levels,” News Bites – Germany, 6 March 2013, via Factiva, © 2013 News Bites Pty Ltd. 96 “UPDATE 1-Shiseido writes down Bare Escentuals goodwill, falls into red,” Reuters News, 24 April 2013, via Factiva, © 2013 Reuters Limited; “Shiseido Cuts FY Group Net View To Loss Y14.70B,” Dow Jones Global Equities News, 24 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc. 97 “Avon Completes Refinancing Activities,” PR Newswire (U.S.), 13 March 2013, via Factiva, © 2013 PR Newswire Association LLC; “Is Avon a hidden beauty, ”New York Business Journal Online, 14 March 2013, via Factiva, © 2013 American City Business Journals, Inc.


growth momentum worldwide” and commented: “Today’s actions demonstrate our confidence in the continued strong and profitable growth of Colgate’s global business.”98

P&G has announced a 7% increase in its quarterly dividend, to US$0.6015 per share on its Common Stock and on its Series A and Series B ESOP Convertible Class A Preferred Stock, payable on 15 May 2013. The company noted that this was the 57th consecutive year that it had increased the dividend.99

The 2013 “Brand Finance Cosmetics 50” ranking of the “most valuable” cosmetics brands, using a “Royalty Relief” method, has reported that P&G’s Olay brand retained its first place ranking, with a brand value of GBP7.64b. Olay’s lead was reportedly reduced, compared to 2012, with the L’Oréal brand rising from third to second place, with a brand value of GBP5.7b. Meanwhile, the Avon brand was ranked in sixth place, compared to second in 2012, after reportedly losing GBP1.76b in brand value over the year.100

Analyst views

Analysts have responded to P&G’s third quarter financial results. Morgan Stanley’s Dara Mohsenian noted that the majority of the company’s business came from developed markets, where the consumer remained “weak,” while Barclays noted that growth in the health care business was sufficient to “mask much of the weakness” and commented: “From a longer term perspective, it may prove to be early days for a revenue growth turnaround.” Morningstar’s Erin Lash suggested that a “heavy dose of reinvestment in marketing” was needed to “reignite” the business.” Jason Gere at RBC Capital Markets said the company needed to demonstrate that it could “accelerate” sales growth in the rest of its fiscal year and commented: “The top line is where people want to see the fruits of P&G’s labor come through, and last quarter it wasn’t really evident.” Edward Jones analyst Jack Russo said it would be “important” for P&G to “throw out some pretty aggressive targets for fiscal ’14” and noted there were “so many elements that should provide tailwinds for them.” Citi analyst Wendy Nicholson noted that fourth quarter analyst estimates were “too high” and suggested that investors focus on the fact that P&G was “in fact actually delivering at the higher end of its guidance, which given where we have been in recent years with this stock, is a big improvement.” Sanford Bernstein’s Ali Dibadj described the top line results as “disappointing” and said P&G was investing in the business and “not getting a great rate of return,” commenting: “We want to know what’s wrong, because clearly something is wrong.” Meanwhile, Javier Escalante at Consumer Edge Research commented: “It’s become palpable that the issue is not about a cost structure that is out of whack. It’s about the low return on Procter & Gamble investment.”101

Consumer Edge Research has suggested that P&G should divest its Bounty and Charmin tissue operations. Analyst Javier Escalante said the divisions were US-focused and selling commodity products. He commented: “They are doing a lot of innovation and it is not creating the market share lift. Another business than nobody is going to be sad to let go is Duracell.” Escalante also noted that P&G’s “struggling” cosmetics business was “cancelling out” group-wide cost savings and suggested that it should become a subsidiary company with greater independence from company headquarters. Meanwhile, Sanford Bernstein’s Ali Dibadj said that any merger or acquisition deals would be “window dressing” which would not solve P&G’s “core problems” which were in “a few big segments,” including cosmetics and laundry.102

Analysts have responded to L’Oréal’s first quarter financial results. Sanford Bernstein’s Andrew Wood said it “bodes well for full-year growth” and forecast a 5.5% rise in comparable sales for 2013. Meanwhile, Exane BNP Paribas analyst Eamonn Ferry noted: “The key question is: With the most difficult comparative of the year out of the way, particularly in Asia, can growth accelerate in the rest of the year?”103

Analysts have responded to Avon’s issue of US$1.5b in senior unsecured notes. Citi’s Wendy Nicholson said the debt refinancing was “another big step forward” and noted a “positive” response from credit rating agencies. Nicholson, who retained her “buy” rating, commented: “Slowly but surely, investor confidence in this management team and in the story is improving.” Ratings agency Standard & Poor’s said the

98 “Colgate Approves Stock Split, Raises Dividend 10%,” Dow Jones Top News & Commentary, 7 March 2013, via Factiva, © 2013 Dow Jones & Company, Inc; UPDATE 1-Colgate sets 2-for-1 stock split, 10 pct dividend hike," Reuters News, 7 March 2013, via Factiva,© 2013 Reuters Limited; “Colgate Announces 2-For-1 Stock Split and 10% Dividend Increase Effective 2(nd) Quarter 2013,” Business Wire, 7 March 2013, via Factiva, © 2013 Business Wire. 99 “P&G Declares a 7% Dividend Increase,” Business Wire, 15 April 2013, via Factiva, © 2013 Business Wire. 100 “The price of beauty: World's most valuable cosmetics brands revealed... and Olay beats L’Oreal, Neutrogena and Nivea once again,” Mail Online, 10 April 2013, via Factiva, © 2013 Associated Newspapers. 101 “P&G Investors Antsy for Stronger Sales Growth,” The Wall Street Journal Online, 24 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “P&G sales growth falls short of forecasts,” Financial Times, 24 April 2013, © 2013 The Financial Times Limited; “Procter & Gamble 3rd-Quarter Profit Up 6.4% on Revenue Growth,” Dow Jones Top Global Market Stories, 24 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “MARKET TALK: Too Early for P&G Sales to Pick Up, Barclays Says,” Dow Jones News Service, 24 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “Procter & Gamble 3Q net income rises; but revenue, 4Q outlook miss expectations,” Associated Press Newswires, 24 April 2013, via Factiva, © 2013 The Associated Press; “P&G Drops as Forecast Trails Estimates on Currency Impact,” Bloomberg, 24 April 2013, via Factiva, © 2013 BLOOMBERG L.P. 102 “P&G sales growth falls short of forecasts,” Financial Times, 24 April 2013, © 2013 The Financial Times Limited. 103 “L’Oreal First-Quarter Sales Beat Analysts’ Estimates,” Bloomberg, 19 April 2013, via Factiva, © 2013 BLOOMBERG L.P.


refinancing would decrease Avon’s debt in the long run and assigned a “BBB-“ rating to the notes, Moody’s assigned a “Baa2” rating and Fitch Ratings assigned a “BB+” rating and noted that Avon had “successfully improved its capital structure while increasing its financial flexibility and liquidity.”104

B. Riley Caris has suggested that there is a “good chance” for Avon to “top consensus estimates” in its next quarterly report and forecast that Avon’s first quarter earnings per share would be US$0.02 above consensus as cost-cutting was “starting to take hold” and the company faced “its easiest comparison of the year.”105

Stifel Nicolaus analyst Mark Astrachan has raised his rating on Avon from “hold” to “buy” and said that a “resumption of “low single-digit” sales growth and “low double-digit” operating margin was “achievable.” Astrachen noted that Avon would need an operating margin of around 12%, with 2.5% year-on-year sales growth “through 2016” to achieve his US$26 share price target and commented: “New management has considerable work to do to improve recent underperformance, and a turnaround is not without risk, in our view. That said, we believe risk/reward is favorable at current levels as investors increasingly value Avon on earnings beyond 2013.”106

Analysts have commented on Avon’s announcement that it will exit the Irish market and reduce its global headcount by a further 400 positions. Linda Bolton Weiser at B. Riley Caris said the Irish market was likely to be “immaterial” to the company’s top line, while the other unnamed underperforming markets were likely to be those with “very small” sales. Weiser noted that Mexico and the UK were “important” markets where performance needed to “improve.” Meanwhile, Stifel Nicolaus analyst Mark Astrachan said that Avon had now announced an exit from three markets and a total of 1,900 headcount reductions: “While considerable work remains to be done to improve operating margin, we believe Avon can return to a low double-digit margin based on historical averages, direct selling peers, and announced cost savings initiatives.”107

Morgan Stanley has downgraded its rating on Colgate-Palmolive from “overweight” to “equal weight” while retaining its US$121 share price target. Analyst Dara Mohsenian said that the company had been a “top pick” over the previous 18 months and its “positive long-term advantages” over competitors, including “attractive emerging markets, a defensive business mix and strong pricing power,” were “increasingly priced into valuation.” Mohsenian also noted that beverage companies such as PepsiCo and Coca-Cola were “more attractive” than companies such as Colgate and P&G due to “weaker revenue trends.”108

Mizuho Securities has commented on the announcement that Shiseido President and CEO Hisayuki Suekawa has resigned from his position, to be replaced by Chairman Shinzo Maeda “on an interim basis.” Analyst Wakako Sato said that Maeda would be “a popular choice with the stock market” as he had led the company through a “period of earnings expansion under the previous business plan” while noting that a change in management would not, on its own, “herald an earnings recovery” due to the “numerous reasons” for the company’s “recent earnings slump.” Meanwhile, MUFG Morgan Stanley’s Taizo Demura said that Suekawa and Maeda had “collaborated over business restructuring” so there was “a strong sense of continuity” and commented: “Yet much remains uncertain about how far the firm can rebuild sales domestically and overseas.”109

MUFJ Morgan Stanley has said that it is “a little bit hard to imagine the recovery strategy” after Shiseido announced an impairment loss for its US unit Bare Escentuals. Analyst Hisae Kawamoto commented: “They’re posting an impairment loss only three years after the acquisition, which gives a negative impression. The company says they will close unprofitable stores, but it doesn’t explain how the business is going to improve.”110

104 “Avon Completes Refinancing Activities,” PR Newswire (U.S.), 13 March 2013, via Factiva, © 2013 PR Newswire Association LLC; “Is Avon a hidden beauty, ”New York Business Journal Online, 14 March 2013, via Factiva, © 2013 American City Business Journals, Inc; “UPDATE: Stifel Nicolaus Upgrades Avon Products to Buy on Favorable Risk/Reward,” Benzinga.com, 14 March 2013, via Factiva, © 2013 Benzinga.com.; “Avon Products refinancing is a sign the company is improving, according to analyst,” Associated Press Newswires, 8 March 2013, via Factiva, © 2013 The Associated Press; “Fitch: Avon’s Refinancing Provides Flexibility, Supports Noteholders,” Business Wire, 5 April 2013, via Factiva, © 2013 Business Wire; “Fitch Rates Avon’s $1.5B Unsecured Notes ‘BB+’,” Business Wire, 7 March 2013, via Factiva, © 2013 Business Wire; “Moody’s rates Avon’s $1.5 billion notes offering Baa2 with stable outlook,” Moody’s Investors Service Press Release, 8 March 2013, via Factiva, © 2013. 105 “MARKET TALK: Good Chance P&G, Avon Beat Consensus, B. Riley Thinks,” Dow Jones News Service, 10 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc. 106 “Avon Completes Refinancing Activities,” PR Newswire (U.S.), 13 March 2013, via Factiva, © 2013 PR Newswire Association LLC; “Is Avon a hidden beauty, ”New York Business Journal Online, 14 March 2013, via Factiva, © 2013 American City Business Journals, Inc; “UPDATE: Stifel Nicolaus Upgrades Avon Products to Buy on Favorable Risk/Reward,” Benzinga.com, 14 March 2013, via Factiva, © 2013 Benzinga.com.; “Avon Products refinancing is a sign the company is improving, according to analyst,” Associated Press Newswires, 8 March 2013, via Factiva, © 2013 The Associated Press. 107 “UPDATE: Avon to Cut Headcount by 400, Exit Ireland Among Other Cost-Cutting Moves,” Dow Jones News Service, 8 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc. 108 “MARKET TALK: Colgate's Rally Has Run Its Course -Morgan Stanley,” Dow Jones News Service, 15 March 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “Analyst downgrades Colgate to “Equal Weight,” says stock fairly valued in the near term,” Associated Press Newswires, 15 March 2013, via Factiva, © 2013 The Associated Press. 109 “Shiseido CEO Steps Down,” WWD, 12 March 2013, via Factiva, © 2013 Condé Nast; “MARKET TALK: Shiseido Down 1.9% After Monday's Surge,” Dow Jones Global Equities News, 12 March 2013, via Factiva, © 2013 Dow Jones & Company, Inc. 110 “Shiseido Forecasts First Loss in Eight Years on Bare Escentuals,” Bloomberg, 24 April 2013, via Factiva, © BLOOMBERG L.P.


UBS analyst Nik Modi has said that P&G must show “more signs of sustainable growth” before he alters his “hold” rating. Commenting ahead of the company’s latest financial results, Modi noted that P&G’s revenue growth was not as strong as its competitors. UBS estimated that P&G shares could be worth around US$110 if the company hit its 5% sales growth and 23% margin targets and noted that if the company was “on its way to a sustainable turn,” it was in the very early innings of its move upwards - giving us comfort that missing some more upside to ‘make sure’ this turn is real is the prudent thing to do.”111

Morningstar analyst Erin Lash has said that P&G’s plans to extend the time taken to pay suppliers could ultimately benefit suppliers if the company sells more products. Lash said the plans needed to be “carefully” introduced to maintain a “healthy, diverse” supplier group and commented: “It’s a balancing act.”112

BMO Capital Markets has cut its rating on Kimberly-Clark from “market perform” to “underperform” while raising its share price target from US$83 to US$92. Analyst Connie Maneaty, commenting ahead of the company’s quarterly results, said: “While investors are clearly willing to pay a premium for KMB’s dividend, cash generation, and for consumer stocks in general, we do not believe KMB’s fundamentals warrant new investment.” Maneaty also noted the risk of “slightly higher” pulp prices and South Korean foreign exchange costs.113

RBC Capital has described Kimberly-Clark’s first quarter results as “solid” while Bank of America’s Christopher Ferrara cut his rating from “buy” to “neutral.” Ferrara raised his price target from US$106 to US$108, noting that shares approached his “previous price objective,” and commented: “We remain bullish on growth prospects, but are maintaining valuation discipline despite this staples-led rally.” Deutsche Bank’s Greg Poole reiterated his “hold” rating and raised his share price target from US$96 to US$101, noting that “most of the good news” was priced in: “Kimberly has benefitted as one of the first stops for investors looking for low beta, enhanced yield bond surrogates, in our view, driving the multiple higher.” Bank of America Merrill Lynch cut its rating to “neutral,” noting that Kimberly-Clark was now “must-less discounted versus peers” and Credit Suisse analyst Michael Steib commented: “While the quarter was strong on EPS, driven by in-line topline growth (boosted by a couple of one-offs), lower than expected input cost inflation and substantial cost savings, we view KMB shares as richly valued, currently trading at a 10-year high PE multiple of 18.6x forward earnings.114

Liberum Capital has suggested that Unilever should sell its food business as “arguments” against a sale “do not hold water.” Analyst Pablo Zuanic commented: “There are too many categories [and] brands to fix to believe in a turnaround of the food business.” The brokerage noted that the acquisition of Heinz by private equity “could bring buyers to the fore” and “entice” Unilever CEO Paul Polman to sell the company’s food business.115

Sanford Bernstein analyst Ali Dibadj has said he was “surprised” at P&G’s launch of Old Spice bar soaps, as the category was one of “slow-growth,” and said P&G must believe it could “quickly capture” market share. Dibadj commented: “What P&G has a tendency to do is if they are successful under one brand banner, to expand that brand in adjacent categories. They’re trying to gain share in a category that has mainly seen growth with niche products like vegetable bars or higher-end type products.”116

Credit Suisse has said that it expects Hindustan Unilever’s revenue growth to moderate from the “high teens” of the previous two years to the “low teens” in financial year 2014. The brokerage, which retained its “neutral” rating on the company, noted a “slowdown in relatively discretionary premium hair and skin care” and “price growth coming off sharply in soaps and detergents.”117

111 “Analyst says Procter & Gamble has to show sustainable growth before he advises buying shares,” Associated Press Newswires, 14 March 2013, via Factiva, © 2013 The Associated Press; “MARKET TALK: UBS Staying On P&G’s Sidelines,” Dow Jones News Service, 11 March 2013, via Factiva, © 2013 Dow Jones & Company, Inc. 112 “P&G stretches supplier payments to save money,” The Cincinnati Enquirer, 18 April 2013, via Factiva, © 2013 The Cincinnati Enquirer; “Firms Pinch Payments to Suppliers,” The Wall Street Journal, 17 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “UPDATE 1-P&G taking longer to pay suppliers, offers financing,” Reuters News, 17 April 2013, via Factiva, © 2013 Reuters Limited. 113 “MARKET TALK: Kimberly-Clark Looking a Bit Rich To BMO,” Dow Jones News Service, 5 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “BMO Capital analyst lowers rating on Kimberly-Clark to ‘Underperform’ given current price,” Associated Press Newswires, 5 April 2013, via Factiva, © 2013 The Associated Press. 114 “UPDATE: Deutsche Bank Raises PT on Kimberly Clark on Full Valuation,” Benzinga.com, 22 April 2013, via Factiva, © 2013 Benzinga.com; “MARKET TALK: Merrill Sees a Pause for Kimberly-Clark's Rally,” Dow Jones News Service, 22 April 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “UPDATE: Credit Suisse Raises PT on Kimberly Clark on Solid 1Q13 EPS Beat,” Benzinga.com, 22 April 2013, via Factiva, © 2013 Benzinga.com; “UPDATE: Bank of America Downgrades Kimberly Clark to Neutral on Fair Valuation,” Benzinga.com, 22 April 2013, via Factiva, © 2013 Benzinga.com; “Kimberly Clark price target raised to $113 from $95 at RBC Capital,” Theflyonthewall.com, 22 April 2013, via Factiva, © 2013 Theflyonthewall.com. 115 “MARKET TALK: Unilever Should Sell Food Business – Liberum,” Dow Jones Global Equities News, 7 March 2013, via Factiva, © 2013 Dow Jones & Company, Inc. 116 “Move over body wash: Old Spice goes retro, introduces line of bar soap for guys,” Associated Press Newswires, 8 April 2013, via Factiva, © 2013 The Associated Press. 117 “MARKET TALK: CS Keeps Hindustan Unilever At Neutral, Targets INR485,” Dow Jones Global Equities News, 26 March 2013, via Factiva, © 2013 Dow Jones & Company, Inc.


Brics Securities analyst Sachin Bobade has commented on Dabur’s announcement that it is developing a toothpaste for sensitive teeth. Bobade said the company would need to “change consumer perceptions” in a category that was led by Colgate-Palmolive and noted: “Dabur will have to spend a lot in advertising to establish itself and I’m not sure customers will be willing to pay a premium for it.”118

Management moves

Shiseido has announced that President and CEO Hisayuki Suekawa has resigned from his position, effective from 31 March 2013, due to “health reasons.” The company said that Suekawa would become a “senior adviser” to Shiseido while Chairman Shinzo Maeda, who served as CEO until April 2011, would assume the role of President and CEO on an interim basis. Suekawa reportedly said that he had asked Maeda to return to his previous role to due to a “shortage of talent” within the company and noted that he had been “under strain” due to the company’s performance: “I had a keen desire to resolve all those challenges. But particularly in the current fiscal year, we had to revise down our earnings forecast every quarter. The gap mentally weighed heavily.” Meanwhile, Maeda said he expected to hold the role for less than four years and commented: “I don’t have an exact time span.”119

L’Oréal has announced that Honorary Chairman Sir Lindsay Owen-Jones has resigned from the company, effective from 26 April 2013. Owen-Jones, who was CEO between 1988 and 2006 and Chairman until March 2011, said: “I believe that a former Chairman must not indefinitely extend his presence on the board of directors ... I wish to express to the entire board, my recognition and pride for the confidence that the directors have shown in me for almost 30 years.”120

L’Oréal has announced that Paolo Gasparrini, President of L’Oréal China, has died in Italy at the age of 63 after an illness. Alexis Perakis-Valat, CEO of L’Oréal China, commented: “The company is saddened by the loss of Gasparrini, who was the founding father of L’Oréal China and had made indelible contribution to the company’s business operations in China.”121

Hindustan Unilever has announced the appointment of Sanjiv Misra as an Independent Director. The company said that Misra was a retired Indian Administrative Services officer and a former member of the 13th Finance Commission who had “served in a wide range of key positions in the Federal and State Governments” including the role of Managing Director of the Gujarat Industrial Development Corporation.122

Beiersdorf has announced that Peter Feld, Head of the company’s Europe and North America business, has asked the company not to extend his three-year contract and will leave the company on 31 July 2013. The company said that Feld was leaving “on amicable terms” and his responsibilities would be handled by CEO Stefan Heidenreich “until further notice.”123

Kimberly-Clark has announced the appointment of Clive Sirkin to the role of VP and Chief Marketing Officer. The company said that Sirkin joined the company in 2007 and had previously held “a number of marketing leadership positions.” President of Global Brands and Innovation Tony Palmer commented: “Since joining K-C, Clive has been instrumental in building strong, healthy brands and businesses around the world. As CMO, Clive will continue the ongoing transformation of our marketing function as a core driver of our growth agenda.”124

Perfumania Holdings has announced the appointment of Donald Loftus, former North American President and CEO of P&G’s Prestige business, as President of the company’s Parlux subsidiary and EVP of Perfumania Inc. Executive Chairman Stephen Nussdorf described Loftus as “an industry veteran with world class experience” and commented: “As we continue to grow our retail division and portfolio of prestige

118 “Sensitive Teeth to Help Dabur Revive Margin: Corporate India,” Bloomberg, 21 March 2013, via Factiva, © 2013 BLOOMBERG L.P. 119 “Japan cosmetics maker Shiseido President Suekawa to resign,” Reuters News, 11 March 2013, via Factiva, © 2013 Reuters Limited; “Shiseido President Suekawa to Step Down Effective Mar 31,” Dow Jones Global Equities News, 11 March 2013, via Factiva, © 2013 Dow Jones & Company, Inc; “UPDATE: Shiseido President Steps Down as Firm Looks to Get Back on Growth Track,” Dow Jones Global Equities News, 11 March 2013, via Factiva, © 2013 Dow Jones & Company, Inc.; “Shiseido CEO Steps Down,” WWD, 12 March 2013, via Factiva, © 2013 Condé Nast; “Troubled Shiseido returns to Maeda,” Nikkei Weekly, 25 March 2013, via Factiva, © 2013 Nihon Keizai Shimbun, Inc.; “Shiseido CEO Quits As Results Weaken,” The Wall Street Journal Asia, 12 March 2013, via Factiva, © 2013 Dow Jones & Company, Inc. 120 “L’Oreal Honorary Chairman, Former CEO Resigns," Dow Jones Global News Select, 19 March 2013, via Factiva, © 2013 Dow Jones & Company, Inc; “Lindsay Owen-Jones to step down as L’Oreal honorary chairman,” Reuters News, 18 March 2013, via Factiva, 18 March 2013, © 2013 Reuters Limited. 121 “L’Oreal China president dies in Italy at age 63,” Shanghai Daily, 16 April 2013, via Factiva, © 2013 Shanghai Daily Company. 122 “HUL appoints Dr. Sanjiv Misra as Independent Director,” Indiainfoline News Service, 8 April 2013, via Factiva, © 2013 Indiainfoline Ltd.; “HUL board appoints Sanjiv Misra as an independent director,” Press Trust of India, 8 April 2013, via Factiva, © 2013 The Press Trust of India Limited. 123 “Beiersdorf Board Member for Europe, North America Leaves Company,” Bloomberg, 26 March 2013, via Factiva, © 2013 BLOOMBERG L.P.; “Handelsblatt: Beiersdorf regional head leaves,” Handelsblatt, 27 March 2013, via Factiva, © 2013 AII Data Processing Ltd.; “Beiersdorf chief of Europe/North America ops steps down,” Reuters News, 26 March 2013, via Factiva, © 2013 Reuters Limited. 124 “Kimberly-Clark appoints new VP and chief marketing officer,” MarketLine (a Datamonitor Company), Company News, 18 March 2013, © 2013 MarketLine - an Informa plc business; “Kimberly-Clark Names Chief Marketing Officer,” PR Newswire (U.S.), 12 March 2013, via Factiva, © 2013 PR Newswire Association LLC.


scents, Don’s experience, creativity, and leadership will play an integral role in further developing synergistic partnerships and strategic branding initiatives.”125

Green Innovations has announced the appointment of Philip Rundle, previously CEO at North American tissue manufacturer Oasis Brands, to the post of CEO. CFO Bruce Harmon commented: “Philip is an excellent addition to our management team. His credibility and previous industry successes speak for themselves.” Meanwhile, Rundle said: “My direct industry experience at Kimberly-Clark and, more recently, at Oasis Brands, Inc., makes this new position familiar to me and at the same time brings with it the new challenges of integrating incredibly innovative bamboo products into the North American and global markets.”126

LVMH Moët Hennessy Louis Vuitton has confirmed the appointment of Anastasia Ayala, President, CEO and owner of a US integrative skin care, nutrition and wellness center, as CEO of its Nude Skincare business. Ayala will report direct to Benefit Cosmetics CEO Jean-André Rougeot and replaces Anna Ghee who has left the company.127

Henkel has reportedly appointed Amelie Vidal-Simi as CEO of Henkel France with additional responsibility for the Benelux region. Vidal-Simi, who previously held roles at Henkel including Marketing Director and Sales Director, replaces Joachim Bolz who becomes VP Western Europe.128

Unilever has reportedly appointed Mark Bleathman, Brand Building Director – Hair, to the newly created role of VP Brand Building - Personal Care. According to Marketing, Unilever is also seeking to fill the role of VP Brand Building – Hair Products.129

Unilever has reportedly appointed Janine Juggins, previously Global Head of Tax at Rio Tinto, to the role of SVP Global Tax, reporting to SVP Tax, Treasury, Pension & Insurance Mark Smith.130

L’Oréal USA has appointed Angela Bennett to the role of VP for La Roche-Posay. The company said that Bennett, who was previously VP Marketing for the brand, had “a wealth of experience, having worked with many global brands” and had “established solid relationships with retailers nationwide.”131

L’Oréal New Zealand has announced the promotion of Communications Manager Tanya Abbott to the new role of Group Corporate Communications Manager. Executive General Manager Brendon Urlich noted that Abbott had “recently been acknowledged by New Zealand media as brand ambassador of the year” and said the newly created role would “further develop the desirability for L’Oréal brands, build and protect L’Oréal’s reputation and promote the role of beauty in society beyond stereotypes.” Urlich noted: “This new level of responsibility is reflective of the escalating importance of the Corporate Communications function and mirrors the communication structures within the wider L’Oréal Group.”132

125 “Former P&G exec named CEO of beauty company,” Cincinnati Business Courier Online, 5 April 2013, via Factiva, © 2013 American City Business Journals, Inc.; “Donald J. Loftus Appointed President of Parlux Ltd. and EVP of Perfumania Inc.,” Business Wire, 5 April 2013, via Factiva, © 2013 Business Wire; “Donald J. Loftus Tapped as New President of Parlux,” WWD, 5 April 2013, via Factiva, © 2013 Condé Nast. 126 “Green Innovations Appoints Former Kimberly-Clark Vice President and Former CEO of Oasis Brands as New Company CEO,” PR Newswire (U.S.), 16 April 2013, via Factiva, © 2013 PR Newswire Association LLC. 127 “Nude names new ceo,” BW Confidential, 4 April 2013, via Factiva, © 2013 BW Confidential; “Nude Skincare Taps Ayala as CEO,” WWD, 26 March 2013, via Factiva, © 2013 Condé Nast. 128 “Le Figaro: Amelie Vidal-Simi becomes CEO of Henkel France,” Le Figaro, 14 March 2013, via Factiva, © 2013 AII Data Processing Ltd. 129 “Unilever store promos beat social-media ROI,” Marketing, 6 March 2013, via Factiva, © 2013 Marketing, a Haymarket publication. 130 “Rio Tinto’s head of tax leaves for Unilever,” Accountancy Age, 24 April 2013, via Factiva, © 2013 Incisive Media Investments Limited, published by Incisive Financial Publishing Limited. 131 “L’Oreal Names Bennett VP of LaRoche-Posay,” HAPPI Magazine, 17 April 2013, via Factiva, © 2013 Rodman Media. 132 “L’Oréal promotes Tanya Abbott to new communications role,” Scoop.co.nz, 16 April 2013, via Factiva, © 2013 scoop.co.nz.


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Issue 70 Personal Care - EY · PDF fileParfums and enable it to “broaden the group’s geographical reach and enhance its risk diversification. ... skin care and cosmetic products