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In Brief

This article was originally published in The Rose Sheet

Executive Summary

Delegations at a recent meeting of the European Union Environmental Council urge the EC to ban microplastics in cosmetics and detergents; P&G sells brands, including Zest in regions outside of North America, to Unilever Plc. More news in brief.

EC Urged To Address Microbeads

At a Dec. 17 meeting of the European Union Environmental Council, the Belgian, Dutch, Austrian and Swedish delegations, with support from the Luxembourg delegation, ask the European Commission to investigate the issue of microplastics in the environment. Moreover, the group requests a ban on microplastics in cosmetics and detergents “in order to strengthen the EU’s role as a frontrunner for innovative products and green growth whilst providing a level playing field for industry,” according to a same-day release. In a Dec. 3 memo, the Belgian, Dutch, Austrian and Swedish delegations suggested there is an “urgent need” to eliminate microplastics, which they define as plastic particles with a diameter of less than 5 mm, due to potentially harmful environmental effects.

ReadyBath Shampoo Caps Recalled

Waukegan, Ill.-based Medline Industries, Inc. has recalled 28,800 packets of its ReadyBath Shampoo Caps, as they may contain broken needles, according to a Dec. 17 FDA Enforcement Report. The fabric-lined caps are pre-moistened to cleanse hair without rinsing. The caps were sold in Alaska, Idaho, Oregon, Washington and Canada.

Unilever Acquires Camay From P&G

Procter & Gamble Co.pares down its portfolio with the sale of the Camay brand globally and the Zest brand outside North America to Unilever PLC. Terms of the deal were not disclosed, but Unilever notes the brands posted sales of $225 million in fiscal 2014. Also as part of the deal, P&G will sell its bar soap manufacturing facility in Mexico to Unilever. The transaction is expected to be finalized during the first half of 2015. Camay and Zest “represent an excellent strategic fit for us and will further strengthen our global position in skin cleansing,” says Unilever Personal Care President Alan Jope, adding that the deal “will make us one of the market leaders in skin cleansing in Mexico, a priority market for Unilever and one of the largest markets in the world.” In August, P&G said it would divest or discontinue approximately half of its brands as part of a streamlining effort (Also see "P&G To Cut Portfolio In Half, Refocus On Core In Simplification Strategy" - HBW Insight, 4 Aug, 2014.). P&G divested Zest in North America in 2011 with the sale of the brand to private equity firm Brynwood Partners (Also see "Brynwood Partners Has Zest For Orphaned P&G Brand" - HBW Insight, 10 Jan, 2011.).

Catterton Takes Intercos Stake

U.S. private equity firm Catterton has entered into a binding agreement for a “significant minority stake” in Intercos Group SpA, according to a Dec. 16 release. Though financial details were not disclosed, Catterton reportedly will acquire a 43% stake in the Italian cosmetics company. "We are thrilled to partner with Catterton as Intercos continues to expand its presence in the global beauty and cosmetics industry,” says Intercos CEO Dario Ferrari. “Catterton brings proven expertise, decades of experience in the personal-care industry and new resources that will enable us to accelerate our international development strategies, including further expansion in the United States and China.”

Direct-Selling Veteran To Head Foru

Foru International, a direct seller of personalized skin-care, nutrition and weight-management products based on DNA analysis, announces the appointment of Sharon Morgan Tahaney as the firm’s new president. Tahaney’s rich MLM and direct-selling background includes more than eight years as a creative consultant to Mary Kay, Inc. and 11 years with Tupperware Brands Corporation, most recently as senior VP of leadership development. She also has authored a book for Mary Kay about founder Mary Kay Ash, as well as four personal finance books for independent entrepreneurs and a strategy book for direct-selling executives, according to the Dec. 22 release. Tahaney replaces former foru President Karl Krummenacher, who has left the company to pursue “a lifelong interest in publishing,” foru says. “We are beyond thrilled to have someone with Sharon's experience, passion and marketing know-how lead the foru team,” says foru International founder Gil Peter.

Prestige Lip Color Sales Up 22%

According to market research firm the NPD Group, prestige lip color in the U.S. advanced 22% in units sold to nearly 1.8 million in November 2014 compared with November 2013. In a Dec. 22 release, NPD says that dollar sales of prestige lip color products are up 13% to $417 million for the December 2013-November 2014 period, compared with the year prior. “The trend of women seeking to make a bold makeup statement continues as marketers showcase lips more prominently than seen in prior years,” says Karen Grant, vice president and global beauty industry analyst. According to NPD, lip products are the primary drivers of overall prestige makeup growth. In addition, lip color use has increased among younger women, “and the appeal is based on both fashion and function.”

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