Sustainable success Beiersdorf

SUSTAINABLE SUCCESS

Beiersdorf is a global leader in the development and manufacture of personal care products. The company builds sustainability into every aspect of its operations and is responsible for some of the world’s most recognisable brands, which include Nivea, Eucerin and Elstoplast. Philip Yorke reports on a company that sets the benchmarks for innovative, consumer-driven skin care products.

Beiersdorf was founded in Hamburg in 1880 by Paul C Beiersdorf, who started by taking over a chemist shop before building a laboratory a year later to develop and manufacture medical plasters.

In 1892 a leading pharmacist, Dr Oscar Troplowitz, acquired the laboratory and quickly expanded it to become a leading branded goods company. International success soon followed with a contract with the US trading company Lehn & Fink. The most significant company achievement at that time was the creation of brands that are still famous today. Namely Labello in 1909 and Nivea in 1911.

Today Beiersdorf is a true global brand leader and is organised in two separate business units: Consumer business and Tesa selfadhesive products. The company is quoted on the Frankfurt Stock Exchange and employs more than 17,000 people worldwide. In 2014 Beiersdorf recorded sales of €6285 million.

Innovative technologies

One of the key factors driving Beiersdorf’s global success is its ability to innovate. New product research and development activities have always played a major role within the Beiersdorf organisation. To strengthen yet further the unwavering consumer trust in Beiersdorf products, the company is continuing to invest substantial funds in dermatological research and new, innovative technologies. Beiersdorf’s global brands unite international trends with regional consumer needs because no two markets are the same and consumer skin care requirements differ considerably from one continent to another.

Innovation continues to drive Beiersdorf’s sales and the company has been setting the gold standard for skin care products for decades, initially with the introduction of the first sun screen protection factor, followed by the first skin care regime especially for men. In addition it has developed countless numbers of active ingredients such as the co-enzyme Q10 in the field of anti-aging and Hydra IQ technology in moisturising products. These products stand out from the crowd due to their exceptional, gentle action and outstanding quality.

The company’s basis for progress and innovation is its continual search for new biological opportunities in order to target specific skin-related needs of different skin types and age groups.

Strategic sustainability

During the last three years Beiersdorf has reduced its CO2 emissions per product sold by 48 per cent and has already exceeded its environmental commitment for 2020 by 18 points. In other areas, the search for more sustainable solutions has led to some surprising results. An analysis relating to the Nivea facecare range revealed that plastic jars appear to be more environmentally friendly

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The accelerating launch of compressed deodorants and antiperspirants throughout the world marks the further use of exciting aerosol technology developed and patented by LINDAL Group.

A worldwide leader in aerosol packaging technology, LINDAL Group anticipates comprehensive global acceptance of the new compressed deodorant and antiperspirant format. Watch for new compressed format aerosol solutions in cosmetics and body care, sun protection, hair care and styling, household and technical products.

The Hamburg, Germany-based company has more than 50 years of experience with aerosol solutions for the cosmetics, household, pharmaceuticals, food and technical industries.

The LINDAL Group is represented by subsidiaries and licensees in more than 15 countries throughout Europe, Asia and The Americas. The company is renowned for its innovative designs, which deliver optimal functionality and return on investment. As a result, LINDAL packaging solutions are the choice of the world’s most prestigious and trusted brands.

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than the previously used glass jars. Today over 12 per cent of annual sales are achieved by products with significantly reduced environmental impact, and by 2020 Beiersdorf plans to raise that percentage share to 50 per cent.

Another important aspect of Beiersdorf’s sustainability strategy is its social and brand commitment. By maintaining transparent communication and encouraging active consumer involvement, the company’s products not only create social value, but also strengthen the brand’s positioning, resulting in a ‘win-win’ situation for both society and the company’s business objectives.

When it comes to packaging the company believes that every stage of its packaging life-cycle can offer potential savings that can make a substantial contribution to environmental protection. The development of retail pouches is just one example of Beiersdorf’s commitment to reducing packaging waste and environmental impact. Thanks to its refillable containers and the possibility of using product packages like soap dispensers for an extended period, waste volumes can be reduced significantly. The refill pouches used in the Nivea Crème Shower Gel result in 75 per cent less waste. Today almost 100 per cent of Beiersdorf’s packaging materials are recyclable. The company works closely with accredited regional and national recycling organisations to improve the quality of recycling to consumers and to increase its recycling rate. Worldwide the reclaiming and recycling of used packages is dealt with by different disposal companies that also observe country-specific requirements. Since 2009, sustainability has been strategically anchored in the company’s packaging development processes. Wherever possible, it applies the sustainability criteria of ‘avoid, reduce and recycle’ to all its innovations.

Positive performance

Beiersdorf continued on its profitable growth path in 2014 despite a more difficult market environment. The company recorded organic growth of 4.7 per cent in the past financial year. Innovation and new product development were largely responsible for the company’s on-going success.

“Beiersdorf was successful in 2014. Once again we increased sales and earnings. We also gained market share in our relevant markets and became even more innovative and more competitive,” said Stefan H Heindreich, CEO of Beiersdorf AG. “This positive per-

formance is based upon our clear and systematically implemented business strategy. We have achieved a level of stability that leads us to expect further growth in even more difficult political and economic conditions. This makes us cautiously optimistic for 2025.”

A recent innovative and significant breakthrough was announced recently in the company’s goal to stimulate the skin’s natural defences against free radicals. Scientists from Beiersdorf’s ‘Front End Innovation’ team, in cooperation with Eucerin, have now discovered a way to enhance the skin’s protective capacity. Licochalcone A, an active ingredient derived from licorice root extract, directly activates cellular safeguard mechanisms and helps the skin to naturally defend itself. The current publication in the peer-reviewed scientific journal ‘Experimental Dermatology’ initiated a press release by the journal which has resulted in a very positive reception from the scientific community.

“We did not expect such a response,” says Beiersdorf researcher Dr Jochen Kuhnl, head of the company’s Experimental Technology Lab. Jochen Kuhnl has been working intensively on making skin cells more robust against stress. He explains, “When it gets chilly outside, cold showers help to boost our immune system which protects us from colds. We asked ourselves if this analogy is transferable to the UV protective mechanisms in skin and whether we could make it cosmetically useful.” The new active ingredient, Licochaclone, developed by Beiersdorf, helps the skin in two ways against UV stress: it activates the skin’s own protection and is an antioxident itself. n

For further details of Beiersdorf’s latest innovative products and services visit: www.beiersdorf.com