A new digital natural formulation-focused tool, a digital asset-led campaign and a new multi-million project looks for plant-based feedstock alternatives to progress innovations in beauty and personal care. Scalp care and personal care repellent launches focus on protecting consumers’ skin.

In our bi-weekly cosmetics round-up, we delve into the beauty and personal care space to explore the latest news, updates, launches and developments around the globe.

Clariant launches online tool for natural beauty manufacturing.

Personal care company, Clariant, conceptualises and releases a new digital tool to give beauty and personal care brands information on the naturality of their proposed formulations.

In creating its personal care tool, BeautyForward 6, Clariant seeks to enable consumers to access natural knowledge about ingredients and products. The tool is designed to calculate the percentage of natural ingredients and the naturality of personal care formulations.

The tool was produced in alignment with the industry-standardised framework, ISO 16128 methodology, which defines and quantifies criteria for natural and organic cosmetic ingredients and products.

With over 800 Clariant and non-Clariant ingredients on its platform, the personal care name aims to provide information on the ingredient’s naturality. Clariant aims to help manufacturers explore the contents of individual ingredients and formulations listed on the platform. Users can access the information to create their formulation from scratch or follow guidance to help produce their desired end-product.

“There is evident increasing consumer preference for natural, specifically plant-based ingredients, as well as a growing expectation for brands to understand and communicate on naturality with transparency,” said Hermann Bach, Global Head of Strategic Marketing and Innovation at Clariant.

Clinique and Daz 3D partner to create beauty brand’s first makeup NFT.

US multinational beauty producer, Clinique, joins forces with non-fungible community developer, Daz 3D, to release the beauty brand’s first-ever makeup non-fungible token (NFT) campaign.

Clinique is the first of the Estée Lauder brands to move into the NFT space (an increasingly popular move by beauty brands) by producing and showcasing its first advanced technology-led makeup campaign, called “Metaverse More Like Us”.

By utilising the digital asset, Clinique gears up to develop its profile on the 3D internet, otherwise known as the metaverse, as it aims to build a better and more inclusive online beauty world.

In collaboration with Daz 3D, Clinique worked with makeup artists and creators, including Tess Daly, Sheika Daley and Emira D’Spain and leading authority in NFT, Cathy Hackl, to produce its inaugural makeup campaign using the increasingly-prevalent unit of data.

The makeup artists and creators each produced two beauty aesthetics, forming a total of six makeup creations. In developing its looks, Clinique wanted to embrace a diverse range of NFPs to reflect all skin tones, face shapes and hairstyles.

“Our mission to be in the service of all skin means that we’re dedicated to increasing inclusivity everywhere our brand connects with consumers, and that commitment is no different in the Metaverse,” said Carolyn Dawkins, SVP of Global Marketing, Analytics and Online at Clinique. “As the Metaverse is blossoming, we know that what we create today can positively impact the beauty standards of the future,” added Dawkins.

Unilever and Genomatica embark on $120 million venture to scale plant-based feedstocks.

Personal care supplier Unilever and biotechnology company Genomatica (Geno) announce a $120 million (€114 mn) joint venture to develop alternatives to palm oil and fossil fuels for personal care products.

By collaborating, the new partnership will allow both companies to access new sustainable ingredients and technologies to create more environmentally-friendly everyday personal care products by finding plant-based feedstock varieties.

The new partnership marks Unilever’s largest venture in exploring possible biotechnology alternatives to palm oil. Together, the duo will focus on commercialising and scaling options to palm oil and fossil fuel-derived cleansing ingredients.

Geno will draw on its platform to find plant-based feedstocks. Currently, it is moving towards scaling its sustainable feedstock-focused process to enable its advanced technology to produce ingredients. The company is using plant- or waste-based feedstock to create fossil fuel alternative materials that can be scaled and commercialised for use in the personal care sector.

Early indications suggest that by utilising biotech, brands in the personal care sector can reduce the carbon footprint of palm-derived ingredients by 50% with the adoption of plant-based varieties.

“We’ve developed our technology in response to our planet’s urgent climate crisis and we’ve proven that biotechnology can replace traditional production methods to produce ingredients with bio-based sources that deliver both high-performance and sustainability, at scale,” relayed Christophe Schilling, CEO of Geno.

“Biotechnology has the potential to revolutionise the sourcing of our cleansing ingredients,” said Richard Slater, Chief Research and Development (R&D) Officer at Unilever. “We are building this innovative new venture to have the scale to drive real impact and change in our industry, helping to reinvent the chemistry of home and personal care products for the 21st Century,” Slater added.

Kao develops new mosquito repellent product.

Japanese personal care brand, Kao, unveils its newly-developed mosquito repellent for consumers in Thailand. The product, Bioré GUARD Mos Block Serum, utilises the Asian skincare and personal care brand’s technology to provide a serum that blocks mosquitos by having widespread protection over the skin.

Developing its new technology saw Kao research how best to protect consumers from mosquitoes. The brand subsequently devised its latest product, a formula that acts as a protection shield, with the aim of offering skin protection. The technology’s mechanism is geared to differ from conventional insect repellents on the market, which it states “rely on mainly volatile active agents”.

Kao has set up its Guard Our Future global project to help save lives from mosquitoes by working to control dengue fever and other infectious diseases spread by mosquitoes. It is initially releasing its product in Thailand and then plans to extend to the wider Southeast Asia region to build awareness-raising activities, field testing and research activities.

The formulation contains natural citronella oil, floral blossom fragrance and lavender valley fragrances and is deet-free. Kao designed the formulation to have a non-sticky texture and to provide widespread coverage on the skin.

Nutrafol unveils patent-pending scalp system.

Hair health brand, Nutrafol, releases a new product line that draws on understanding of hair biology. The unveiling of its patent-pending Scalp Microbiome Support comes after research into the scalp barrier and the impact of both internal and external environmental impacts on the scalp microbiome.

The physician-formulated products have been created to balance the scalp microbiome and offer opportunities for optimal hair growth by using nutraceuticals contained within the product.

Nutrafol’s new collection of scalp care products includes an exfoliating mask, a cleansing shampoo and a scalp microbiome essence. The product line also contains the Microbiome Friendly Seal certification, which is used by personal care brands to indicate those products that follow specific clinical testing to ensure products look after and encourage positive microbial diversity.

“The scalp microbiome is not just another trendy health topic being talked about on social media—it is an important element to overall hair health that should be cared for just as much as people care about their skin routines,” said Giorgos Tsetis, CEO and co-founder of Nutrafol.

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Feeling inspired to see ingredients and trends in action?

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New beauty partnerships see global beauty, perfumery, personalization and skin diagnostics take centre stage.

A multi-million investment in period and intimate care sees one brand work towards realizing its global vision.

New findings in hair loss and skincare ingredients strive to progress the options available to meet consumers’ needs and concerns.

In our bi-weekly cosmetics round-up, we explore the need-to-know cosmetics industry news, beauty trends and personal care launches worldwide.

DSM and Firmenich merge.

Two global personal care giants, DSM and Firmenich, have come together to pull their resources and knowledge in leading scientific understanding and capabilities in beauty and wellbeing. Entering into a business combination agreement, the duo strives to build the leading creation and innovation partner in beauty and wellbeing through its newly-created DSM-Firmenich.

By teaming up, global science company DSM, and fragrance and flavour business Firmenich, strive to maximize their ability to anticipate and address evolving consumer needs. The duo will leverage leading science and capabilities in the beauty and wellbeing spaces, including fragrance, to boost innovation in identified high-growth and resilient segments.

With combined revenues of $3.5 billion (€3.3 bn) in the perfumery and beauty sector, Firmenich will see its global perfumery and ingredients business expand further by uniting with DSM’s personal care and aroma business.

The newly-named DSM-Firmenich will house its dual headquarters in Kaiseraugst, Switzerland and Maastricht, the Netherlands. DSM-Firmenich’s perfumery and beauty arm will be led from Geneva, Switzerland. Following the merger, DSM’s shareholders will own a total of 65.5% of the company and Firmenich shareholders will take 34.5%.

New clinical findings in hair loss bring new treatment opportunities.

Aesthetic medical technology company, Revian, revealed the results of a recent clinical study by Wake Forest University School of Medicine, US. The study explored how Revian’s  hair loss focused system may be able to help treat patients with Central Centrifugal Cicatricial Alopecia (CCCA).

The company expressed that CCCA is a form of scarring hair loss with no known cure that largely impacts women of African descent, and the condition is considered to have environmental, genetic and inflammatory elements.

“To our knowledge, this is the first study evaluating the use of low-level light therapy for CCCA management and we were excited to partner with the Revian team to evaluate a treatment for this devastating condition,” said Dr Amy McMichael, Chair and Professor of Dermatology at Wake Forest University School of Medicine. “In my opinion, the Revian Red system is showing promising results for a complex disease for which we have no treatment options.”

Revian explains that its Red System uses a patented combination of two LED light wavelengths of 620 nanometers (nm) and 660 nm. The two wavelengths stimulate nitric oxide production and release, increase local blood flow, lower inflammation and inhibit the steroid, dihydrotestosterone (DHT).

In the study, patients used the all-LED treatment cap for ten minutes per day. Patients’ hair loss was assessed with follow-up visits at two, four and six months by examining digital photography, patients’ self-assessment of their symptoms and clinical evaluations into their severity.

The clinical findings reported that 75% of patients saw a decreased loss of follicular openings and breakage. They also detailed that follow-up imaging showed short, re-growing vellus hairs and minimal inter and perifollicular scale. Further, 75% of patients had improved Dermatology Life Quality Index (DLQI) at the end of the study. Researchers at the Wake Forest University School of Medicine shared the results of its recent clinical study at the Society for Investigative Dermatology 2022 Annual Meeting.

L’Oréal snaps up stake in Japanese startup, Sparty.

Global cosmetic company L’Oréal has announced it has acquired a minority investment in personalized beauty startup Sparty. The acquisition of Sparty marks the global beauty brand’s first beauty purchase in Japan. L’Oréal’s corporate venture capital fund BOLD (Business Opportunities for L’Oréal Development) managed the purchase.

Tokyo-based e-commerce name, Sparty, entered the beauty technology scene in 2017. Developing its direct-to-consumer business model focusing on personalized beauty, Sparty houses haircare brands such as Medulla and skincare names, including Hotaru.

With its mission to “create a sensual era”, Sparty strives to appeal to consumers looking for personalized beauty collections and personalized consumer experiences.

“Japan is one of the most sophisticated and influential beauty markets,” said Jean-Pierre Charriton, CEO of L’Oréal Japan. “In Japan, personalized consumer experience is highly valued, and we are seeing new trends and innovations when it comes to personalization, especially in beauty.”

Rael raises $35 million for period and intimate care expansion.

Holistic personal care name, Rael, which centres on period care, intimate care and skincare, has closed a $35 million Series B round of investment.

Launched in 2017 by three Korean American women in Los Angeles, US, Rael is the personal care brand made by women for all people who bleed. Since its inception, Rael has raised a total of $59 million and expanded to South Korea. The brand has hopes to expand to a further 12 international countries.

Following its investment, Rael plans to pursue its ongoing product development led by its development team in South Korea, expand its approach to women’s wellness, progress growth in retail by developing partnerships, invest in brand and trade marketing, and advance its global expansion. The brand is also building upon its executive leadership team, with Lauren Consiglio becoming its President, who was previously a senior marketing executive at Unilever and L’Oreal.

“We started Rael with a mission to improve women’s wellness by leveraging novel technology from Korea, bringing organic, high-performing, comfortable products to the marketplace,” said Yanghee Paik, CEO and co-founder of Rael. “Now, five years later, the company has evolved greatly, but our commitment to bringing women cleaner and more effective personal care solutions throughout their hormonal cycle has stayed the same.”

i-On Skincare unveils new skincare launches.

Beauty tech brand, i-On skincare, launches two new products to the beauty market: its Age Disrupting Skin Emulsion and AI-powered Skin Diagnostic Tool.

i-On Skincare relays that biological aging is significantly impacted by the key factor of excess iron build-up on the skin. It states that this element, which occurs with the cessation of menstruation, is most responsible for forming oxygen free radicals that are known to cause visible signs of skin aging.

With a focus on formulating cosmetics, the brand uses its patented DII technology with vitamin C and pearl powder, designed to remove excess iron from the skin’s surface, allowing the skin to focus on repairing and rebuilding.

With a focus on targeting excess iron that forms on the skin’s surface, i-On skincare has unveiled its skin-aging product, Age Disrupting Skin Emulsion, utilizing DII technology. The brand also teamed up with fellow beauty tech name, Perfect Corp, to develop its AI-powered Skin Diagnostic Tool. i-On Skincare saw this partnership as a natural next step as it seeks to expand its educational communication on the relationship between biological aging, lifestyles and routines.

“Our goal is to shift the conversation about how we think and talk about aging,” said Dr. Xi Huang, founder of i-On Skincare.

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Feeling inspired to see ingredients and trends in action?

Then why not visit one of the in-cosmetics events around the world?

The Formulation Summit 2021 (29-30 November) was a fabulous event which I had the great honour to moderate. It was not just about cosmetic trends, science and regulations, but also about the cosmetic industry’s resilience and the people behind it, from the speakers and the attendees, to the sponsors (CompLife and CLR Berlin) and even the event organizers who managed to pull through despite the challenges. Even though it lasted for just two days, a lot of content was covered, and in this article I will give a summary of what I believe were the key “take aways” of the event. (1)

COVID CONSUMERS AND INDUSTRY TRENDS – “MORE FOR LESS”
Consumers have kept on using on cosmetics during the pandemic, especially with a mental health focus. They also expect more out of the beauty products they use, and this makes multifunctional cosmetics very trendy and appealing. Examples of this trend are haircare products with de-stressing benefits, and colour cosmetics with additional skincare properties.

Ironically, the industry has ended up embodying the “making more for less” mind set because of the disruption experienced, from staff to ingredients, packaging etc. The raw materials shortage has also shone a light on supply chains, making local supplies more appealing, even if they are not as cost effective. After all, a reliable supply is a very valuable commodity, and if it comes with transparency it is even more valued, so it can add to the credibility and authenticity of a beauty product in a competitive market place driven by consumers with an increasingly stronger sense of ethics.

HAND GELS, “NOT EASY PEASY”
Antibacterial hand gels would seem so simple to make; mix together water, alcohol and a gelling agent and off you go. But they are far more complicated than mixing a few ingredients together; from safe manufacturing conditions to product efficacy, compatible packaging and regulatory compliance, all of these are complicating factors. The same formula can also be sold as a drug, a biocide or a cosmetic, depending on the product claims, which in turn will determine the type of testing and regulatory requirements, and these result in different budgets and timelines. So, a few words about a hand gel can have quite a domino effect on the development cost, as well as the time to get it compliant and where it can be sold.

REGULATORY UPDATES
The UK Cosmetic Regulations initially started in sync with the European ones, however there are divergences ahead, especially regarding the approach to raw materials safety evaluation, i.e. UK REACH. This may be a great challenge to the animal testing ban as, at the moment the UK responsible body does not seem keen to purchase the data already available in Europe. As a result of this divergence, DHA will be permitted at levels above 10%, whereas microplastics, D5 and D6 restrictions will not be implemented in the UK work program for 2021/2022 , which will include PFAS instead.

In the coming spring, the UK will also enforce a plastic tax on packaging that contains less than 30 % PCR plastic. This tax will not apply to pharmaceutical products.

A few months ago a new bill, called the Cosmetic Supply Chain Transparency Act of 2021 (2), was published in the US Congress, giving cosmetics manufacturers and beauty brands the power to request more information about residues present in raw materials as well as safety data to make safer products.

The Ecolabel standard has been revised to include stricter rules regarding Palm Oil derivatives sourcing.

PACKAGING AND PLASTIC POLLUTION, “WHO IS RESPONSIBLE?”
Everybody is aware of pollution caused by plastic packaging, however who is responsible for sorting this out and how do we go about it? Some people believe the key culprit is consumer’s bad behaviour which need to be punished in order to change their polluting habits. Other people believe it is an industry problem, being and call for packaging design that allows for easy recycling ,and for new business models that uses plastic waste as a commodity to manufacture other finished products according to a circular model. The packaging challenge is ultimately everyone’s problem, starting with brand owners, involving the packaging designers, environmental regulators, moulders and packaging manufacturers and finally consumers. Everybody needs to get on board if we are to solve this challenge.

THE NEURO-COSMETICS TRIANGLE: “BRAIN, SKIN, AND EMOTIONS”
A simple movement of our face muscles, like smiling, can induce the release of endorphins, the happy chemicals that make us feel relaxed and even look younger. The skin is the largest sensorial organ and it contains a complex peripheral neuronal system; positive emotions can also be triggered the other way round, by applying cosmetics formulated with hedonistic criteria that can affect the mood. Formulations developed according to this neuro-cosmetic approach can achieve quite interesting results. In fact a fascinating consumers study showed that a product with a good hedonistic profile was favoured over a product with better efficacy data, showing how consumers greatly value the way a cosmetic product makes them feel. This is a relatively new cosmetic frontier, that of neuro-cosmetics, and it carries great innovation potential; but it also has the concomitant danger of being used to mislead consumers in new ways, leading to “neuro-washing”– in order to trick consumers into buying unnecessary products. So, we need to use this new approach wisely.

REFERENCES AND NOTES
1. https://www.in-cosmetics.com/ summit/en-gb/programme/ formulation-summit-programme. html#/sessions
2. https://www.congress.gov/ bill/117th-congress/house[1]bill/5539?s=1&r=18.The post Formulation Summit 2021 – Key takeaways first appeared on in-cosmetics Connect.]]> https://connect.in-cosmetics.com/articles/formulation-summit-2021-key-take-aways-by-barbara-olioso/feed/ 0 16882 https://connect.in-cosmetics.com/trends-en/loreal-secures-perfect-score-for-2021-disability-equality-index/ https://connect.in-cosmetics.com/trends-en/loreal-secures-perfect-score-for-2021-disability-equality-index/#respond Thu, 22 Jul 2021 14:49:36 +0000 http://ec2-52-48-9-53.eu-west-1.compute.amazonaws.com/?p=15247 Every month, Simon Pitman (Editor, Journalist) takes a look at what’s shaken up the industry. From acquisitions to launches and everything in-between, don’t miss the latest cosmetics news, only here at in-cosmetics Connect. Kao Corp invests $136m into digital transformation Japanese multinational beauty player Kao has been hard hit by the pandemic, leading company executives […]

Every month, Simon Pitman (Editor, Journalist) takes a look at what’s shaken up the industry. From acquisitions to launches and everything in-between, don’t miss the latest cosmetics news, only here at in-cosmetics Connect.

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Kao Corp invests $136m into digital transformation

Japanese multinational beauty player Kao has been hard hit by the pandemic, leading company executives to take the decision to invest big in a digital transformation to offset declining sales. The company says it is investing $136m to create digital tools that will enhance the competitiveness of its cosmetics division in an effort to build on the value of its current portfolio offering, improve the user experience and reach new consumers.

Company executives want to engage the many consumers who have shifted to digital shopping during the pandemic, as well as tailoring its offering to significantly changing consumer needs and a number of key new trends that have appeared as a result.

“A good example of this approach is Kate Lip Monster, a lipstick launched in April​,” said President and CEO Yoshihiro Hasebe.

“By effectively communicating its features, of not discolouring easily even when a face mask is worn and long-lasting moisture by using digital marketing, we succeeded in gaining its recognition and support among consumers. As a result, the product gained a high market share.”​

Last month the company announced that it was ditching physical hair dye swatches, a measure that it estimates will reduce the amount of plastic it used by 56 tonnes a year. The swathes have been replaced with an augmented reality tool that stimulates hair colours using an app created by Taiwanese tech player Perfect Corp, together with the company’s YouCam Make-up App.

Kao says the new technology takes advantage of a new development that every hair colourant product in every shade can be tested using its HK Dye Technology to show different hair colours in all types of light angles. The investment in the new digital technology is part of the company’s aim to get its sales back on track after revenues fell by more than 5% during 2020 while operating income decreased by more than 17% on a like-for-like basis.

In particular, the company’s colour cosmetics sales performed particularly poorly, slumping by more than 20% in 2020, but this was counterbalanced by an increase in skincare products, driven by hygiene and hand soap products.

The company says it is also considering divesting a number of smaller beauty and personal care brands over the course of the next two years, although it did add that this will only include brands with a profit margin of less than 15%.

L’Orêal gets a full score for the 2021 Disability Equality Index

L’Orêal has received a full 100 out of 100 for its 2021 Disability Equality Index (DEI) rating, the fourth year in a row the company has secured a perfect score.

The DEI is the result of a joint venture between Disability IN and the American Association of People with Disabilities (AAPD), a programme that aims to create full opportunities for people with disabilities as well as specific amenities to accommodate a range of disabilities in the workplace.

“At L’Oréal USA, we have a responsibility to create an inclusive and accessible work environment where individuals with disabilities feel supported and positioned for success,” said Angela Guy, chief diversity & inclusion officer, L’Oréal USA

“As a business leader with my own disabilities, I appreciate the encouragement to generate an open dialogue across the business and ensure we are always working to foster an inclusive workplace culture among our employees.”

The DEI was launched in 2015, rating corporations according to how well they accommodate disabilities employees using a score out of 100 that has been linked to a constantly evolving index rating that has been developed by the DEI committee and a voluntary group of experts over the course of the last six years.

In 2021 319 corporations enlisted to become involved in the DEI benchmarking efforts, evaluating participants according to nine different categories.

Those categories include:

• Culture & Leadership
• Enterprise-Wide Access
• Employment Practices (Benefits, Recruitment, Employment, Education, Retention & Advancement, Accommodations)
• Community Engagement
• Supplier Diversity
• Non-U.S. Operations

For 2021, the DEI was adapted to changing workplace conditions created by the pandemic, which meant the addition of weighted questions relating to advance digital and remote accessibility, as well as mental wellness benefits and flexible work options.

“The Disability Equality Index shines a spotlight on companies that believe they have a stake in creating a more equitable society for people with disabilities,” said Maria Town, President and CEO of AAPD.

“It is a conduit for our work championing disability rights for the 60 million Americans with disabilities and knocking down barriers to employment, technology and healthcare, and we’re thrilled to see the progress being made today.”

EWG partners with Amazon on Climate Pledge Friendly list

The Environmental Working Group’s (EWG) verified products have been added to Amazon’s Climate Friendly list after the two organisations struck up a new partnership. Amazon’s Climate Pledge Friendly is designed to make it easier for consumers to buy more sustainable products. It works by ensuring that brands hold at least one or more approved certification seals that are a part of the Climate Pledge Friendly programme.

Amazon launched the initiative in 2020 and to date, it already includes more than 75,000 different products that have been able to meet the criteria. The programme has been made possible through Amazon’s partnership with a number of government organisations and non-profits that are responsible for distinguishing and certifying products that do not have a negative impact on the environment, therefore making them more sustainable.

By signing up to the Climate Pledge Friendly programme, the EWG joins a number of other leading certifiers also involved in it, including Carbonfree Certified, Certified Animal Approved, Climate Neutral by ClimatePartner, Fairtrade International, Cradle to Cradle Certified, Regenerative Organic Certified, EPA Safer Choice and Compact by Design, among others.

Compact by Design is Amazon’s own certification, created to identify products that incorporate a more efficient design, which, for example, might include the removal of excess air and water, or products that have been designed to have less packaging in order to make them easier to ship.

Both Amazon and the EWG state that their sustainability efforts have been vetted by experts within both Amazon, as well as third-party consultants.

“The EWG Verified mark is recognized as the gold standard for health and transparency,” said Carla Burns, EWG’s senior director of cosmetic science.

“EWG has long verified cosmetics and other personal care products, and recently expanded into household cleaners, baby diapers and ingredients. “Because of this new EWG partnership with Amazon, more consumers will learn about the rigorous science-based criteria we’ve developed to measure a product’s impact on human health and our fragile environment,”

Amazon customers can identify products that are a part of the Climate Pledge Friendly programme by the accompanying badge or by shopping on the dedicated portal. They then simply click on the badge to find out more about the exact certifications the products have complied with and what makes them sustainable.

As well as beauty and personal care products, the programme also extends to groceries, household, fashion and personal electronic products, among others.

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Read more about the multinational giants accused of not tackling the root of the plastic pollution problem.

The post L’Oreal secures perfect score for 2021 Disability Equality Index first appeared on in-cosmetics Connect.]]>

Every month, Simon Pitman (Editor, Journalist) takes a look at what’s shaken up the industry. From acquisitions to launches and everything in-between, don’t miss the latest cosmetics news, only here at in-cosmetics Connect.

Unilever acquires Paula’s Choice

Unilever has confirmed that it is acquiring digital skincare brand Paula’s Choice from TA Associates, in a move that seeks to boost the brand’s international reach. The deal comes as Paula’s Choice has enjoyed a period of significant growth because their digital beauty and direct-to-consumer (DTC) e-commerce channels have flourished during the COVID-19 pandemic.

The brand is distributed through global DTC avenues and select retailers in North America, which is its mainstay market, as well as Europe and Asia.

“Paula’s Choice will join our Unilever Prestige family. Paula’s Choice is a pioneer in the digital space for beauty and has created a mission-based brand rooted in truth and transparency. We can’t wait to introduce the brand and its iconic products to an even bigger audience,” says Vasiliki Petrou, Unilever EVP and prestige CEO.

The brand was launched in 1995 and became popular thanks to its accessible, science-based and high-performing ingredients as well as its cruelty-free claims. However, in recent years it has built a firm foundation in the digital space, offering digital content and tools to help consumers decode the science behind skincare, including an extensive Ingredient Dictionary that includes research and clear explanations for more than 4,000 ingredients.

The brand has also built up a digital rapport with its customers by offering its Expert Advice service, which is a curated online hub of skincare and ingredient knowledge.

“Unilever and Paula’s Choice are joining forces. With Unilever, we can build on our work and vision spanning 26 years of creating products and giving people the self-confidence that comes from knowing they are taking the best possible care of their skin,” said Paula Begoun, founder of the brand.

Beierdsdorf develops new hub in Liepzig

Multinational beauty and personal care player Beiersdorf is creating a new European hub with a €170 million investment to build facilities in Leipzig, 100 miles Southwest of Berlin. The state-of-the-art hub will be located next to the company’s new  €220 million production facility, serving as the conduit for the demands of the huge European consumer market.

Beiersdorf is a major player in the European market thanks to brands like Eucerin, La Prairie and Hansaplast, while it also has developed a significant international footprint presence thanks to the strong performance of its Nivea brand, which is the number one skincare brand in the world. 

The €390 million project spend represents Beiersdorf’s largest-ever investment worldwide in a single location and will ultimately serve to enhance both production and research and development efficiencies by placing the two facilities next to one another. 

The company is currently in the process of acquiring a neighbouring piece of land adjacent to the production facility in the Leipzig-Seehausen II industrial estate, where construction on the new hub will start once planning permission is granted by the Leipzig city council. The operation of the new hub will be entrusted to specialist service providers, which the company says will help to create a further 400 jobs, in addition to the 200 jobs created by the production centre. 

“With the combination of the production site and hub, Beiersdorf wants to position itself optimally for consumer habits and retail landscapes of the future and to create the conditions for state-of-the-art supply chain infrastructure in the heart of Europe,” says Harald Emberger, Beiersdorf corporate senior vice president Supply Chain. 

“The interplay between production and hub offers unique development opportunities in this context to offer our customers completely new solutions. We would be delighted to be able to implement this project in the city of Leipzig, an attractive location with a skilled workforce and a good investment environment.”

Multinationals accused of using false plastic waste solutions

Break Free From Plastics (BFFP) claims multinational FMCG giants, including some leading beauty and personal care players, are using false plastic waste solutions that do not tackle the root cause of plastic pollution.

The NGO says its research highlights how FMCG companies are highlighting projects that just scratch the surface of the environmental problem, often failing to tackle deeper

problems and prevent the cycle of manufacturing new plastic packaging that then goes to landfill waste. The report, titled ‘Missing the Mark: Unveiling False Solutions to the Plastics Crisis‘, highlights a lack of ambition to make permanent and meaningful changes to reduce plastic footprints.

“The only solution companies should be investing in are those that reduce plastics use and find alternative ways of delivering products without reliance on single-use packaging,” says Emma Priestly BFFP’s global corporate campaigns manager.

“Many FMCG companies are piloting reuse, but the ambition is mostly low and needs to be scaled up and made accessible to all.”

The report draws specific attention to Procter & Gamble, which ran a campaign to highlight its special edition Head & Shoulders bottle that was made from ocean pollution plastics sourced from local clean-ups. While the intentions for the project were good, the BFFP report points out how the clean up does not prevent plastic waste from happening in the first place, while also highlighting the fact that the vast majority of ocean waste plastics can never be recovered. “Beach clean-ups are mainly cosmetic, with more with more plastic waste being washed up onto the beach with each tide,” the report states.

Bill to update 80 year-old US cosmetics regulations

A new bill has been introduced in Washington DC that aims to update the 83-year-old law that governs the legislation of beauty and personal care products in the US. The Personal Care Products Safety Act has been introduced by senators Dianne Feinstein (D-Calif.) and Susan Collins (R-Maine) with the goal of updating the Food and Drug Administration’s oversight of beauty and personal care products, which many experts believe is largely self-regulating. 

“We use personal care products every day, but most Americans don’t know the government lacks authority to ensure the safety of products we put on our bodies and hair,” said Senator Feinstein.

“What’s particularly striking is that when the FDA finds an unsafe product, it cannot force a company to stop selling it. Our bipartisan bill will finally bring the FDA into the 21st century by giving it authority to ensure personal care products are safe.”

The new rules will give the authorities greater powers to oversee the regulation of the beauty and personal care products, which to date have been relatively arbitrary. The FDA has traditionally sent out warning letters to companies not complying with the regulations, but this measure has not always proved effective.

The new bill will serve to update regulations, while also bringing them in line with international rules, particularly the more stringent rules employed by the European Union, through the REACH chemical regulations and rules governing beauty and personal care products in Japan. 

The FDA and product safety experts are currently reviewing the toxic dosing of certain ingredients in BPC formulations. In some cases, these ingredients are completely outlawed by international regulatory authorities, particularly in the European Union, where the list of banned ingredients is extensive. 

The new bill aims to empower the FDA to review ingredients contained in beauty and personal care products, as well as providing companies with clear guidance on ingredient safety, dosing levels and consumer warnings should they continue to choose to formulate with certain ingredients.

The bill has also been supported by academic institutions, BPC organizations, and beauty brands, including Burt’s Bees, Beautycounter, Au Naturale, L’Oréal USA, The Estée Lauder Companies, Procter & Gamble and the Environmental Working Group.

Ever considered using Snapchat as an e-commerce platform?

Find out more about how Mac Cosmetics are disrupting the digital market here.

Every month, Simon Pitman (Editor, Journalist) takes a look at what’s shaken up the industry. From acquisitions to launches and everything in-between, don’t miss the latest cosmetics news, only here at in-cosmetics Connect.

Amyris expands in North America

Amyris says it has managed to secure a significant commitment from brick-and-mortar stores across North America to stock its range of clean beauty products, despite the ongoing pandemic continuing to impact retail.

The biotech and clean beauty player says it has secured commitments from retailers such as Sephora North America, CVS, KeHe North America, Loblaws SuperSaver, Rite Aid, Walmart Canada and Wegmens to sell the range of Amyris clean beauty products.

Investors and industry experts believe the deal is well-timed, as lockdowns and restrictions are starting to ease across North America, leaving retailers optimistic that footfall will increase significantly in the coming months. Amyris says that sales of its range of clean beauty products should start during the course of the next two quarters when the company is also hoping to take advantage of a consumer ‘supercycle,’ which is accelerating demand for natural, sustainable and safe products.

The Amyris beauty and personal care portfolio is built around no compromise clean ingredients and includes names like Biossance clean beauty skincare and Pipette clean baby skincare. Last month it added to its branding and marketing capabilities when it announced that it had agreed to buy Beauty Labs International, an expert in Artificial Intelligence targeting beauty and personal care communities.

Natura results reflect strong digital presence

Natura has posted very strong first-quarter results after reaping the benefits of investments in digital and e-commerce channels, as well as building on its expertise in the direct to consumer area. The multinational has also been increasing its direct to consumer footprint, which has particularly benefited from the addition of the Avon International business, which it bought in January 2020.

The company reported that net sales grew by 25.8% to Brazil Reals 9.5 billion (US$1.79 billion), which represented 8.1% in local currencies. Net sales were impacted because the Brazil currency has been significantly devalued by the economic impact of the pandemic, which is continuing to hit the country hard, putting the health system under huge strain and leading to high death rate.

“Natura & Co turned in another strong performance in the first quarter despite a persistently challenging environment, demonstrating again the strength of its direct-to-consumer, multichannel model,” said Roberto Marques, executive chairman and group CEO. 

“All of our brands and businesses posted growth in Brazilian Reals in the quarter, and our continued pivot to digital and online sales allowed us to once again outperform the global CFT market.”

Company executives say they will continue to invest in sustainable initiatives as well as e-commerce and digital channels as a means of driving future growth. The only thing that cooled the results was the weakness of the Brazilian currency, which translated into lower margins from its international businesses.

Estée Lauder ups stake in Deciem

Estée Lauder’s has announced it is increasing its existing investment in the Canada-based Deciem Beauty Group. The company has committed to another $1 billion dollar investment, which raises the multinational giant’s investment in the company from 29% to 76%.

The company now has a majority stake in the highly successful international skin care business, and executives say that it is likely to raise the investment to a total buy out within the next several years.

Deciem’s reputation grew from its eponymous The Ordinary brand, which was created as a very simple line of products that can be personalised to consumers’ specific skincare issues. Besides Deciem, the five brands in the portfolio also include HIF, NIOD, The Chemistry Brand and Hylamide. 

The brands have met with tremendous success, not only to a more personalised approach to skincare, but also thanks to the company’s efforts to cultivate a loyal and enthusiastic online community. Deciem was a pioneer in both of these areas when the business started out in 2013.

Estée Lauder took out is first 29% stake in Deciem back in 2017, an investment that allowed the business to ramp up its strategic growth goals. In 2020, it achieved total sales of $460 million, an achievement that has helped push the total value of the business to an estimated $2.2 billion. 

Kao business plan targets recovery

Like many of the major players in the beauty and personal arena, Japan-headquartered Kao was hit hard by the pandemic But now it is now eyeing a strong recovery through a strategic plan to ramp up investments and rejig its top tier product portfolio.

The company has announced structural reforms and its intention to increase its spend on marketing in an effort to return the business to high growth by 2023.

Kao’s revenues fell by around 15% in 2020, hit hard by strict lockdowns in the domestic market of Japan, as well as across Europe. Kao was also hard hit by the fact that it has a significant amount of exposure to the colour cosmetics category, an area that was particularly hard hit by the pandemic.

Mask-wearing, working from home, and the fact that bars, restaurants and nightclubs were either closed or heavily restricted meant that the occasions to wear colour cosmetics largely disappeared.

Hardest hit was lipstick and base makeup, which both saw significant declines in Kao’s sales, but one brighter area was eye makeup which did grow significantly on account of mask-wearing shifting the emphasis to eyes.

The company also said it will revamp its top tier color cosmetics portfolio, and will replace two of its existing R8 color cosmetic brands, Lunasol and Coffret D’or with skin care brands Dew and Milano Collection.

MAC Cosmetics can now be bought on Snapchat

MAC Cosmetics has always been both a leader and a pioneer in the color cosmetics category and now it is taking its reputation for innovation to the next level by making it possible to buy its products on Snapchat.

The brand launched its try-on app on Snap Chat some time ago and has now chosen to build on that investment by adding the ability for its Snapchat customers to buy the products they digitally try on and like.

MAC is the first brand in the Estée Lauder portfolio to trial the technology that combines Augmented Reality (AR) try-on filters with the option to purchase items individuals like.

MAC customers simply download the dedicated app, which contains a filter known as a dynamic shopping lens, allowing individuals to view an image of themselves trying on 20 different lip and eye makeup products from the company’s range.

If they like a specific product, all they have to do is tap on it to add it to their shopping cart, then checkout to pay for it and add the shipping details.

Snapchat has been encouraging retailers to try selling products on the app after a survey it conducted found out that 94% of individuals said they expected to use AR for shopping in 2021, a figure that has been significantly accelerated by the pandemic.

Find out who’s been experiencing a boost in post-pandemic sales

Every month, Simon Pitman (Editor, Journalist) takes a look at what’s shaken up the industry. From acquisitions to launches and everything in-between, don’t miss the latest cosmetics news, only here at in-cosmetics Connect.

P&G sales point to big recovery

Procter & Gamble has released its third-quarter results, showing a continued recovery from the significant economic downturn caused by the pandemic.

The company, which is one of the biggest beauty and personal care players in the world, reported that net sales increased by 5% to $18.1 billion, a significant boost compared to the same time last year when strict pandemic lockdowns were enforced in countries all over the world.

Sales for the company’s beauty division led the way, increasing by 9%, a performance that was underscored by increases in both skincare and personal care products, with its SK-II premium skincare brand leading the way. In the grooming division sales increased by 4%, led by beauty appliances for shaving and hairstyling, underlining the fact that consumers have not been able to visit barbers or beauty salons, forcing them to take grooming matters into their own hands.

In the company’s health care division, sales increased by 7%, a performance that was underscored by an increase in oral care driven by a strong innovation pipeline that included more of an emphasis on premium products. However, the only BPC division to not record a positive result was baby, feminine and family care, where sales were neutral.

Looking ahead to the full fiscal year 2021 outlook, company executives are forecasting full-year organic sales growth of between 5 and 6% compared to 2020, with the impact of foreign exchange expected to be neutral.

“We delivered another quarter of solid top-line, bottom-line and cash results in what continues to be a challenging operating environment,” said David Taylor, Chairman, President and Chief Executive Officer.

“We remain focused on executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture. These strategies enabled us to build strong business momentum before the COVID crisis and accelerate our progress during the crisis, and they remain the right strategies to deliver balanced growth and value creation over the long term.”

Health Canada imposes new restrictions on talc in personal care

Health Canada has introduced new restrictions on the natural mineral and raw ingredients for certain personal care products. The latest regulations to hit the raw materials that have traditionally been popular in a range of personal care and colour cosmetic products. The expanded restrictions will require warnings on any products that could be inhaled, which would include cosmetic face powders, as well as hygiene-related products that may come into contact with the female genital area.

The latter restrictions refer to a variety of products, including bath bombs, body wipes and bubble bath products. Health Canada said a screening assessment carried out in partnership with Environment Canada concluded that inhaling loose particles of talc could damage lungs, while using talc in female personal care products could cause ovarian cancer.

Precautions over talc began to snowball after a series of successful litigations in the US to sue Johnson & Johnson over its talc products.

In August 2017 a Californian jury ordered the company to pay $417 million in the case of a woman who claimed she had developed ovarian cancer as a result of using Johnson & Johnson talc products. Since then authorities worldwide have taken action to ensure that the risk of exposure is minimised and consumers are aware of potential health risks.

Amyris buys Beauty Labs

Biotech clean health and beauty player Amyris says it has added value to its consumer brands portfolio with the addition of Beauty Labs, a business with expertise in AI technology. Amyris executives say that the strategic acquisition of the business will expand the consumer reach of its brands, specifically adding to capabilities that will help it to reach more consumers in the growing clean beauty category.

“We are building and growing leading clean beauty brands and are committed to an omnichannel strategy of which the digital experience is critical,” said John Melo, President and CEO of Amyris, in connection with the acquisition of Beauty Labs.

Beauty Labs is a proven player in the AI technology area, providing breakthrough connected experiences to the beauty and wellness community, largely through digital experiences from social media platforms. Amyris says that the addition of the technology platform will help expand its leadership in the clean beauty areas by enhancing the consumer experience for its beauty brand portfolio that currently includes Biossance, Pipette, Rose Inc, JVN, Terasana and Costa Brazil.

The Amyris marketing team utilize Beauty Labs AI technology to create personalized and better-connected consumer experiences that aim to further accelerate sales growth for the brand portfolio.

“Our Beauty Labs team is excited to become part of Amyris and to help pioneer the next generation of digital consumer experiences,” said Mark Gerhard, Founder of Beauty Labs. “A connected consumer is the future of the beauty and wellness industry, and we are proud to be joining Amyris to bring a new level of sophistication to the consumer experience.”

Eco Lips acquires personal care brand Simply Soothing

In the US, organic lip care brand Eco Lips has acquired Iowa-based personal care brand Simply Soothing, a company specialising in bug soother and insect repellent products.

Executives at Eco Lips said that the acquisition was a good fit because Simply Soothing has similar brand values, which are focused on the good-for-you trend, as well as using natural ingredients and formulation.

Founded in 2003, the company started small but grew significantly after the introduction of its handcrafted DEET-free signature Bug Soother product in 2008, after which sales spiked significantly and have remained high ever since. The line has now been built into the eighth largest bug repellent brand in the US, with the repellent identified by its signature green bottle, together with the bite soother and outdoor candles that complete the portfolio.

“Eco Lips is perfectly poised to service Simply Soothing’s existing customer base while, at the same time, adding distribution,” said founder and CEO of Eco Lips, Steve Shriver. “I’ve always had so much respect for Freda [Simply Soothing CEO] and her products. The entire Eco Lips team is honoured and excited to carry the Bug Soother brand forward!”

Starface launches waterless beauty range

More evidence that waterless beauty is catching on has come with the launch of a new waterless skincare brand called Plus, launched by acne brand Starface. The product line is a body wash that comes in sheet forms, which when mixed with water, transforms into a rich lather. It comes in two different scents and an unscented version, with a pack of 16 sheets retailing at $16.50 in the United States.

The brand is further enhancing the sustainability profile of the product launch by ensuring the packaging is eco-friendly. This has been achieved by making the sachets for the individual sheets out of wood pulp with dissolvable ink that biodegrades so it can go down the drain.

The founders of the brand said that they decided to launch the waterless brand after discovering that conventional liquid shower washes contain up to 90% water, adding significant weight and bulk to the shipping of the product and requiring large amounts of plastic packaging to ensure the product integrity.

The company says that the marketing plan for the Plus range will be focused on Instagram and Tik Tok, underlining the fact that it is targeting a younger and more environmentally friendly consumer.

Find out more about what’s been happening in the cosmetics world, including an unlikely partnership between Chipotle and e.l.f cosmetics

Every month, Simon Pitman (Editor, Journalist) takes a look at what’s shaken up the industry. From acquisitions to launches and everything in-between, don’t miss the latest cosmetics news, only here at in-cosmetics Connect.

Virginia bans testing of cosmetics on animals

The U.S. state of Virginia has announced that it is banning the testing of all cosmetics on animals by the start of 2022. The Humane Cosmetics Act will prevent cosmetics manufacturers from conducting testing of any kind of animals, as well as banning the sale of cosmetics tested on animals, from January 1, 2022.

The bill has been pushed by the Humane Society of the United States, which has been lobbying on both a State and a Nationwide level in the to ban animal testing on cosmetics in the country for many years. The organization said that the new legislation: “illustrates a growing momentum in efforts to end unnecessary testing on animals in the United States and around the world for products like shampoos, mascara and lipstick,” in a press statement.

Virginia joins California, Illinois and Nevada to become the fourth state in the country to introduce such a ban, giving increasing momentum towards enforcing a Nationwide ban. Currently, six other states are considering similar legislation, including Maryland, Rhode Island, Oregon, New Jersey, Hawaii and New York.

However, on a global basis, the United States is far from leading the way on animal testing, as more than 40 countries have already enforced full bans. Those countries include the European Union, Turkey, India, Switzerland, Norway, South Korea, the U.K. New Zealand, Israel and Colombia

Similar to the U.S., Brazil is also in a transitional period when it comes to outlawing animal testing, with the States of Malo Gross do Sul, Amazonas, Minas Gervais, Pará, Paraná, Pernambuco, Rio de Janeiro and São Paulo already enforcing bans.

L’Oréal invests in water saving technology

Swiss environmental tech startup Gjosa has been snapped up by L’Oréal Development’s venture capital fund BOLD Business Opportunities. The company is based in Bienne and came to L’Oréal executives’ attention because of its unique water-saving solutions.

The two companies have already been working on a project to optimise shampoo rinse technology since 2015, with the object of saving water by reducing the time it takes to fully rinse suds from the hair.

The companies jointly announced an optimised shower head in 2018, designed to rinse shampoo thoroughly with just 1.5 litres of water, a marked improvement on the previous recorded average of 8 litres of water.

At this year’s CES show in Las Vegas, held in January, the two companies presented the L’Oréal Water Saver, which is billed as a sustainable hair care system for both salon and at-home routines, designed to save significant amounts of water.

“At L’Oréal we aim to offer the best sustainable beauty science and to be the champion of ‘Beauty Tech’,” said Barbara Lavernos, Chief Research, Innovation & Technology Officer of L’Oréal.

“By combining Gjosa’s unique water-tech innovations with L’Oréal’s knowledge of beauty rituals, data, tech, and personalisation, we will invent together new augmented beauty experiences for our consumers while protecting the coveted and precious resource that is water.”

On a company-wide basis, L’Oréal has already made water management a major part of its future sustainability goals, both with respect to manufacturing processes and product innovation. By 2030, the company is aiming to guarantee that all of its formulas will be respectful of aquatic ecosystems, while concurrently aiming to form a loop system based on the recycling and reuse of all water in industrial processes.

On top of that, the company also says that by 2030, all of its strategic suppliers will use water sustainably in their industrial processes.

Unilever is axing the term normal

Normal is out, according to executives at Unilever, who say the term is to be eliminated from packaging and advertising for all of its beauty and personal care brands. The move is part of the company’s newly launched Positive Beauty vision and strategy, which sets out what is described as

‘progressive commitments’ to the company’s leading beauty and personal care brands, including Dove, Axe and Sunsilk.

This taps into the growing momentum behind what is increasingly being recognised as a new social era, where inclusivity and diversity, together with equity and sustainability are all being viewed as crucial elements for beauty consumers. According to Unilever, Positive Beauty will drive major change in product development, transforming both the design and formulation to ensure they deliver products that tap into consumer trends.

Unilever says that the decision to exclude the word ‘normal’ is one of a number of steps the company is taking to challenge traditional beauty ideals, with the ultimate goal of ending discrimination and advocating for a more inclusive beauty industry.

The company says it took the decision following a 10,000 person study it undertook to gauge individuals’ attitudes to the beauty industry, and whether or not the use of ‘normal’ to describe hair and skincare products left people feeling excluded. The results of the survey revealed that 56% of respondents said that the beauty industry can make individuals feel excluded, while 74% thought it was a better idea for the industry to focus on making people feel better, rather than better looking.

On top of that, a significant 7 out of 10 people stated that using the word ‘normal’ on product packaging, has a negative connotation, while this figure rose to 8 out of ten in the 18 – 35 age group.

Unilever’s research is part of a growing body of evidence that points towards a new consumer era, where people are looking for products that cater to both their own individual needs, while also ensuring that they embrace a wider range of beauty needs.

“Consumers increasingly expect brands to take a stand on the issues they care most about. Unilever’s brands perceived as more purposeful grew more than twice as fast as the rest of the portfolio in 2020,” said Sarah, Kambou, president of the International Center for Research on Women.  

“The company’s research further supports this trend, with the majority of people (69%) saying they will recommend a beauty brand to their friends and family if it caters to a wide range of skin and hair types, while half of respondents would pay more for these products.

Chipotle links up with e.l.f. Cosmetics

It is not every day that a fast-food chain partners with a cosmetics company, but Chipotle’s new partnership with e.l.f. cosmetics makes more sense than you might think. The 100% vegan and cruelty-free makeup brand has announced a second partnership with Chipotle after its limited-edition collaboration sold out almost immediately last year.

This time the collaboration goes one step further, creating a four-product limited edition pack that will sell alongside a Chipotle burrito bowl – the first time the food chain has created a menu item that is sold alongside another brand.

The cosmetics collection will include a 12-colour eye shadow palette that is designed to reflect the food chain’s vegan ingredients, together with an avocado makeup sponge, a makeup bag and a plumping hot salsa-inspired lip gloss.

Named vegan “Eyes, Chips, Face” Burrito Bowl, it launched exclusively on the Chipotle app, to be sold at Chipotle locations nationwide throughout. The bowl is 100% vegan, designed to complement the fact that e.l.f. Cosmetics and Chipotle are both committed to supporting plant-based lifestyles.

Hear more about sustainability in cosmetics from our event speakers at Sustainability Corner.

Every month, Simon Pitman (Editor, Journalist) takes a look at what’s shaken up the industry. From acquisitions to launches and everything in-between, don’t miss the latest cosmetics news, only here at in-cosmetics Connect.

L’Oréal results show uptick in fourth quarter

The world’s biggest cosmetics company has revealed its full-year 2020 results, showing that overall sales took a hit from the pandemic, with signs of recovery in the fourth quarter. Full-year sales came in at €27.99 billion, which represented a like-for-like decrease of 4.1% compared to 2019, and a dip of 6.3% on a reported basis. 

Across the company’s four principal business divisions, the hardest hit was professional products, where sales fell by 10.0% during the year, impacted by the closure of beauty salons and hairdressers in many key markets. Consumer product sales fell by 8.2% and the Luxe division recorded a hit of 7.6% during the year, while the one bright spot was Active Cosmetics, which were up by 13.0% during the period. 

However, for the fourth quarter group sales were €7.87 billion, an increase of 4.8% in like-for-like sales, and a figure that was level on a reported basis. The fourth-quarter figures showed a marked recovery in North America where sales were down just 0.1% on a like-for-like basis, while in Asia Pacific gains were considerable, showing an increase of 16.6% for the quarter. The results showed that the hardest impacted regions were North America and Western Europe, where results were impacted by the pandemic and subsequent public health measures. 

“In 2020, the Covid-19 pandemic, which spread across the world, triggered a crisis of supply due to the widespread closure of points of sale which led to an unprecedented, if temporary, decline of the beauty market,” said Jean-Paul Agon, Chairman and CEO of L’Oréal.

Agon went on to comment that during the pandemic, the company had put the protection of its workers as a priority, while also doing its bit to stop the spread of the virus by donating millions of units of hand sanitiser and hand cream to health care and frontline workers. 

“After demonstrating its resistance over the first half of the year, the Group engaged the second half with a determined and virtuous dynamic: launching major innovations, reinvesting in business drivers leading to a return to growth like-for-like, with flexibility and rigorous cost control allowing for an improvement in profitability,” Agen said. 

“Over the year as a whole, and in spite of the crisis, L’Oréal maintained an operating margin of 18.6%, and generated strong operating cash flow.”

Firmenich aims to be carbon neutral by 2025

Firmenich has ramped up its sustainability ambitions by pledging to be carbon neutral by 2025. The fragrance and taste company says that the goal is part of wider-reaching goals of becoming carbon positive and water neutral within the next 10 years. 

The company has committed to goals across three main areas that will see it take action on climate change, embracing nature and caring about people. 

As part of this, the company says it will have carbon-neutral operations by 2025 and carbon positive operations by 2030:

• use 100% recycled plastics
• 100% renewable fragrances
• make a commitment to use regenerative agriculture
• creating 5,000 youth job opportunities within its business structure by 2030

“After achieving our 2020 COP21 environmental goals, it is now time to take our ESG leadership in renewable ingredients, conscious perfumery and diet transformation to the next level,” said Gilbert Ghostine, CEO Firmenich. 

“Companies that commit today to address vital climate and social challenges will be the trusted winners of tomorrow. By accelerating the pace of our climate transition, we also encourage businesses to join us to create large-scale change.”

On the ingredients side, the company is building on its involvement with the One Plante Business for Biodiversity Coalition by targeting all renewable fragrances, of which 99% of this ingredients portfolio will be biodegradable and lead the global transformation to green proteins as part of efforts to increase soil regeneration. 

NU Skin announces new CEO

Global direct sales player, Nu Skin, has announced that Ryan Napierski will become the company’s new CEO from September 1st. Napierski will succeed Ritch Wood, who has had a 30-year career with the company and will continue as an executive advisor through to early 2022. 

The company also confirmed that Napierski is expected to take up Wood’s position on the board at the 2021 stockholder meeting in June of this year. Napierski has been with Nu Skin for 25 years and has served as the company’s president for the past four years, while previously serving as president of Nu Skin Japan and leading the company’s strategy in the EMEA.

“The time is right for Ryan to take the reins, consistent with our succession planning process when we stepped into our roles together four years ago,” said Wood.

“Ryan has played a critical leadership role in developing and executing our strategy and evolving Nu Skin into a more customer-obsessed, global, digital-first organization. He exemplifies Nu Skin’s mission and is absolutely the right person to lead the company to even greater heights.”

Unilever results defy pandemic

Unilever finished the year with a strong quarter to deliver a modest sales increase, with beauty and personal care adding positively to the mix too. The company reported underlying sales growth of 1.9% for the full 2020. The total turnover for the 12 month period was €50.7 billion, down 2.4% on the figures for 2019, with a net profit of €6.1 billion, which was up 0.8% compared to 2019. 

Speaking about the results, Alan Jope, Unilever CEO, said the performance and underlined the business’s resilience and agility through the pandemic. 

“Early in the year, we refocused the business on competitive growth, and the delivery of profit and cash as the best way to maximise value,” Jope said.

“We have delivered a step-change in operational excellence through our focus on the fundamentals of growth. As a result, we are winning market share in over 60% of our business in the last quarter, on the basis of measurable markets.”

Beauty and personal care, which accounts for the biggest share of the company’s three business divisions, recorded sales of €21.1 billion during 2021, an increase of 1.2% in underlying sales growth.

Globally, the beauty and personal care division reported that strict lockdowns in India and China had impacted the overall performance of the business during the first and second quarters, while in North America and Europe the performance of the beauty and personal care business was described as subdued overall. 

The company reported that across its global markets, where strict lockdowns were in place consumers had cut spend on personal grooming products, but increased spend significantly on personal hygiene products, which had served to counterbalance the overall result.

Tom’s of Maine opts for paper packaging deodorant

US personal care player Tom’s of Maine has gone for 100% plastic-free packaging for its range of deodorants by opting for paper packaging. 

Its Natural Strength Deodorant range will exclusively use paper packaging that will be recyclable, helping to solve the challenge that is created by an estimated 28,000 tons of plastic packaging from antiperspirants and deodorants in the US every year. The company projects that its transition to paper packaging will start to reduce waste by over 60 tons in 2021 alone. 

Discussing the switch to paper packaging, Esi Seng, general manager at Tom’s of Maine said: “It demonstrates the bold actions we take so people can choose Tom’s and help protect planet Earth and create a better world. Tom’s of Maine brings the best of science and best of nature together to develop amazing personal care products designed to take care of you, our communities and our planet.”

Hear more about cosmetics in an age of uncertainty on the in-cosmetics Podcast.

Every month, Simon Pitman (Editor, Journalist) takes a look at what’s shaken up the industry. From acquisitions to launches and everything in-between, don’t miss the latest cosmetics news only here at in-cosmetics Connect.

Shiseido mulls sale of part of its personal care business

Shiseido is said to be in advanced talks to sell its mass-market shampoo and skincare business to CVC for 200 billion Yen ($1.9bn).

The move is part of the global cosmetic and personal care player’s shift towards the premium market, where it already has a significant footing, according to insider information reported on in a number of financial news sources, including Bloomberg. 

The board of Shiseido is expected to vote on the divestment within the next few weeks, with the company’s Tsubaki haircare brand, which is predominantly sold in Japan and China, expected to be among the brands included in the deal. 

Speculation about the sale of a significant part of one of Japan’s largest fast-moving consumer goods companies caused shares in the company to spike by 6.5% on Friday January 21st, after the company confirmed that it was in discussions with CVC Capital. 

Shiseido executives have said that no formal decision has been made at this stage, while CVC has refused to make any formal announcement about the discussions. 

The news comes as part of a shift by many Japanese companies to refine businesses and focus on core capabilities following an economic slowdown that has been caused by a drop in international travel caused by the pandemic. 

Businesses are increasingly focusing on the domestic market in an effort to maintain and improve performance. 

Ipsy enters personal care arena with new brand

In the US, BFA Industries, the beauty innovation arm of Ipsy, BoxyCharm and brand incubator Madeby Collective, is launching a line of personal care products called Refreshments. 

The brand is clean, cruelty-free and 100% vegan and includes a hand and body cream, body wash, face wipes and a newly launched razor kit and body cream. 

The company claims that the new brand is breaking new ground by targeting a fresh take on personal care thanks to a brand design that is both vibrant and more individualised.

“Beauty and makeup have long been associated with self-expression and experimentation, while personal care has lagged far behind,” said Sabeen Mian, SVP of Refreshments. 

“With Refreshments, we wanted to inject fun and personality into the bathroom with products that anyone and everyone can feel good about using. Every product in the line is formulated without parabens, phthalates, sulfates, gluten and nut allergens, and is cruelty-free and 100% vegan.” 

The brand leverages Ipsy’s machine learning technology and member data to pinpoint consumer preferences and signal opportunities to fulfil specific needs. 

The company piloted a members-only subscription option for the new brand to a small number of Ipsy’s 3M+ members in November, and according to the company it received over 150,00 sign-ups within the first 30 days. 

The newly launched line is now available a la carte on Refreshments.com or through subscription to Ipsy members. 

Ashland to buy personal care maker

Ashland Global Holdings is to acquire the personal care business of Schülke & Mayr, which is a part of the global investment organisation EQT. 

The signed agreement means that Ashland will pay €262.5 million in cash for the business, with the aim of closing the transaction by the end of June 2021, subject to customary closing conditions. 

The transaction forms part of Ashland’s ambition to create a strategic position for itself as a premier special additives supplier, while also strengthening the company’s consumer business portfolio. 

“This is an excellent example of the type of bolt-on acquisition opportunities that will help advance our strategy and support the profitable growth of our core businesses,” said Guillermo Novo, chairman and chief executive officer, Ashland. 

“I am excited about having the Schülke & Mayr personal care employees join Ashland to help us broaden our breadth of speciality additives solutions and expand our biotechnology and microbiology technical capabilities.”

Simultaneously, the move will advance Ashland’s environmental, social and governance agenda for personal care and household applications, thanks to the new business’s enhanced profile in these areas. 

Bright International partners with Bocchi Labs on personal care

In the US Investment company Bright International has announced the acquisition of Bocchi Laboratories. 

Bocchi is based in Santa Clarita, California and New Albany, Ohio and is focused on full-service beauty and personal care liquid-based formulator and manufacturer for brands focused on hair care, skincare and personal fragrance. 

Bright International, which is a part of Aterian Investment Partners is expanding into personal care by building on its capabilities in the household segment, where it is already the largest manufacturer of bleach and innovation related products in North America.

According to Bright, the combined capabilities of the two businesses will form one of the most diverse full-service beauty and personal care platforms in the North America market. 

“The partnership between Bocchi and Bright is the ideal outcome for our employees and customers as the combination provides significant resources and capabilities as we continue our growth strategy and our commitment to our customer base through execution and innovation,” said Joe Pender, CEO of Bocchi.

Kirkland & Ellis LLP, Paul Hastings LLP and The Gulfstar Group, advised Aterian on the investment. Lincoln International and Buchalter advised Bocchi Laboratories.

Harry’s expands portfolio with deodorant launch

Global shaving and men’s grooming brand Harry’s has expanded into men’s deodorants and antiperspirants. 

Harry’s has made its name as a subscription-based provider for men’s shaving products, but is also available at major retailers, including Target, Walmart and Kroger. 

According to executives at the company, the new launch of the deodorant and antiperspirant line was prompted by strong demand from its customer base, who lobbied the company to launch the new line. 

Harry’s was lined up to merge with personal care giant Edgewell last year, but the US FTC denied the go-ahead for the deal, which was said to be valued at nearly $1.4 billion. 

With the deal abruptly ended, Harry’s executives decided to expand the portfolio instead, with one of the first and boldest moves being to hop into the deodorants category. 

Harry’s has created a significant footprint in the US, Canada and the UK, and is now aiming to increase its footprint in the men’s grooming category in those markets with the launch of the deodorants. 

The line includes three products with three levels of sweat control – Odor Control providing 24 hours of protection, Odor and Sweat Control providing all-day protection and Odor and Enhanced Sweat protection providing extra protection from perspiration. 

PPC acquires Vertellus

Pritzker Private Capital has confirmed that it has acquired the Vertellus group of companies, a speciality chemicals company specialised in personal care, beauty, fragrance, healthcare, food and agriculture. 

Headquartered in Indianapolis, the company manufactures more than 700 products that are used in the formulation of a wide number of health and beauty products, with customers across the globe and ten manufacturing sites in the US, UK, India and China. 

“Over our 150+ year history, Vertellus has built a culture committed to delivering industry-leading, high-quality products and services to our customers across the end markets we serve,” said Mr. Van Hulle. 

“Our partnership with Pritzker Private Capital will help us build upon Vertellus’ leading standard of quality, service and safety as we advance our growth strategy. PPC is the ideal partner for our exciting next chapter.”

The company’s capabilities include a microencapsulation process that helps extends the life of scents, called ZeMac E400 technology, as well as an antimicrobial solution called CPC.

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