Non-Hygiene Personal Care ‘Essential’ In California … For Now; COVID-19 Event Impacts; Cosmetics News In Brief

Santa Monica, CA-based law firm Conkle, Kremer and Engle warns that while all personal-care product businesses appear to be designated “essential” in the Golden State under its statewide “stay at home” order, officials could decide that the policy does not apply to manufacturers of non-hygiene products. More cosmetics news in brief.

PCPC Members To Produce 20m Hand Sanitizer Units For Donation

According to a 2 April update from Lezlee Westine, president and CEO of the Personal Care Products Council, the trade group’s members will produce more than 20m units of hand sanitizer to donate to hospitals, clinics, first responders and employees over the next weeks and months to help address shortages during the COVID-19 pandemic. The exec also highlights PCPC’s role in advocating for the US FDA’s recent guidance temporarily relaxing rules on the manufacture of hand sanitizer, which now permits non-traditional companies to produce the items in accordance with specified criteria. (Also see "Purell Battling Class Actions Over Disease Claims While World Scrambles To Increase Hand Sanitizer Supplies" - HBW Insight, 30 Mar, 2020.) The trade association additionally pushed for states including New York and California to characterize personal care and hygiene firms as “essential" businesses so they can maintain operations under broad shutdown policies.

Westine touches on new loan programs available to small businesses under the US’ recently enacted coronavirus relief legislation and points to a new COVID-19 section of PCPC’s website that provides additional information. (Also see "US Pandemic Relief Package Delivers OTC Industry Regulatory Wishes, Supplement Business Hopes" - HBW Insight, 26 Mar, 2020.) “We are working with our members, through educational webinars and other communications vehicles, to share best practices and learn from those who experienced COVID-19 in other parts of the world. PCPC staff continually monitor and communicate changes in regulations, government policies and other information critical for our members to maintain business continuity,” the exec says.

'Essential' In California?

California’s state-wide “stay at home” executive order, issued on 19 March, appears to recognize personal-care product manufacturers and sellers as “essential” businesses that should remain operational during the COVID-19 crisis, even those not solely or predominantly focused on hygiene products, according to a 24 March blog post by Santa Monica-based Conkle, Kremer and Engle. However, the law firm advises caution, as officials could opt to distinguish between hygiene products – eg, soap, shampoo, cleanser, skin lotions and the like – and other products such as hair dye, nail polish, fragrance and makeup. “It appears those businesses that can plan to potentially pivot to producing a larger proportion of ‘hygienic’ products may have greater success in remaining open as the situation evolves,” the firm’s attorneys say. They add, “Having readily available concise documentation summarizing the ‘hygiene’ products that your company is manufacturing could be helpful if you or your employees receive government inquiries.” The firm notes that companies ordered to stop production should do so immediately and seek legal guidance.

CIR Cancels March Expert Panel Meeting

The Cosmetic Ingredient Review canceled the 154th meeting of its Expert Panel, slated for 16-17 March in Washington, due to COVID-19 issues. All items from the meeting’s agenda will be addressed at the group’s next meeting on 8-9 June, according to a succinct statement on its website.

At its last meeting, the Expert Panel’s output included a final decision on preservative combination methylchloroisothiazolinone and methylisothiazolinone (MCI/MI), finding it safe for use in rinse-off and leave-on cosmetics at maximum concentrations of 15 parts per million and 7.5 ppm, respectively, when formulated to be non-sensitizing. (Also see "CIR Expert Panel Finds MCI/MI Preservative Combo Safe With Caveats" - HBW Insight, 16 Dec, 2019.)

L’Oreal Postpones Annual Meeting

L'Oreal SA has pushed its annual meeting from 21 April to 30 June in response to the COVID-19 pandemic and suspended guidance given current uncertainties as to when the situation will improve. The firm does offer a projection for fiscal 2020 first-quarter sales, expecting a 5% decline versus the same period a year ago, and says additional information will be provided on 16 April in conjunction with its Q1 report. “The measures taken by various countries in terms of store closures and the containment of consumers will have a higher impact than initially forecast on the consumption of cosmetics and beauty products, and therefore on our business in the coming months, even if we are currently seeing encouraging signs of recovery in Chinese consumption,” L’Oreal states in the 30 March release.

E.l.f. Projects Strong 2020 Finish  

Direct-to-consumer and digital-first cosmetics marketers may be better positioned to weather the COVID-19 storm than competitors relying on traditional brick-and-mortar channels. E.l.f. Beauty, Inc., which closed all of its physical retail locations in early 2019 as part of a strategic reboot, expects its full-year net sales for fiscal 2020, ended 31 March, to be up 7% to 8% to roughly $274m to $277m. (The company will report official numbers on 21 May.) According to the Oakland, CA-based value cosmetics company, the projection reaffirms its previous guidance, which it hoisted in February on the strength of third-quarter results and promising momentum in its revamped marketing and digital initiatives. (Also see "E.l.f. Puts Premium On ‘Clean Beauty’ With First Strategic Acquisition: W3ll People" - HBW Insight, 26 Feb, 2020.) That said, e.l.f. acknowledges that market trends in recent weeks have declined due to changes in consumer behavior. “The Company anticipates its sales and Nielsen tracked channel results to be negatively impacted until consumers return to normal shopping patterns,” the company says.