Cosmetics pub

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Elsevier Business Intelligence

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Cosmet ics,

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Vol. 32, No. 21

MAY 23, 2011

top stories REGULATORY Canadian NGO Reports “Widespread” Heavy Metal Presence In Cosmetics Environmental Defence Canada reports that 100% of 49 cosmetic products tested from Canadian women’s makeup bags contained “toxic” heavy metals, including lead, arsenic and cadmium….................................................5

AHPA, Dr. Bronners Champion Bill To Legalize U.S. Industrial Hemp Production New legislation from Rep. Ron Paul, R.-Texas, would legalize the cultivation and processing of industrial hemp, opening the door for U.S. farmers to compete in what could be a “very profitable” market and enabling U.S. cosmetics manufacturers to leverage the plant’s seed and oil without relying on foreign imports…......................................6

MARKETPLACE Green Takes “Backseat” In Tough Economy, But It’s Not A Passing Fad – GfK In the struggling economy, consumers have grown reluctant to cough up dollars for environmentally friendly products, but that doesn’t mean “green” is a passing fad, says GfK Roper Consulting .................................7

P&G, Colgate Savor Strength Of Brands Against Private Label Eileen Francis

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uring the recent Goldman Sachs Consumer Products Symposium in New York, personal-care competitors Procter & Gamble and Colgate-Palmolive touted in separate presentations the growing strength of their branded products over private label. “Consumers across all price tiers [are] continuing to have a strong preference for branded products, which wasn’t necessarily the case in the depths of the recession,” said P&G CFO Jon Moeller during a May 12 presentation. He noted some of the fastest-moving items in the company’s portfolio are higherprice branded products such as Crest 3D White, Fusion ProGlide and Old Spice. Moeller added that while the company continues to produce products at various price points, at the end of its ongoing product and distribution expansion its portfolio will be “heavily weighed” to premium and super-premium prices. In a same-day presentation, CEO Ian Cook also discussed the strength of brands over private label. According to the exec, toothpaste customers are among the most loyal to branded products. “Toothpastes, believe it or not, create a mouth feel, and they have flavors in them that consumers form an attachment to,” said Cook. As the company continues to develop new oral-care technologies that impart a stronger “physical benefit,” consumers, “will stay with the Colgate variant they grew up on because they have become completely wedded to the flavor and the mouth feel,” he added.

Private label, while strong in many personal-care categories even a year ago, never gained significant traction in oral care, according to the exec. “In the U.S. in the last 15 years, it has never gotten higher than half a share point from a market point of view,” Cook said. Though private label’s share of the toothpaste category expanded 5.9% in food, drug and mass outlets (excluding Wal-Mart) for the 12-week period ending April 17, its growth lagged behind both P&G toothpaste brands (11.5%) and Colgate-Palmolive (6.8%). Private-label brands accounted for less than 1% of the total toothpaste market for the period, with sales of $1.49 million, according to SymphonyIRI. The figure included sales in food, drug and mass outlets, excluding Wal-Mart. P&G led the toothpaste category for the period, with sales of $117.6 million and a 37% share of the category overall. Colgate-Palmolive is a close second, with sales of $109.6 million in the same outlets. It commands 34.4% of the category.

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Moeller said that the oral-care category in the U.S. has been growing faster than Story Continues > Page 4

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