1. Elsevier Business Intelligence
‘‘The Rose Sheet’’
PUBLISHED
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Cosmet ics, Sk i n Ca r e a n d F rag ra nc es
Vol. 32, No. 21
MAY 23, 2011
top stories P&G, Colgate Savor Strength Of
Brands Against Private Label
REGULATORY Eileen Francis
D
uring the recent Goldman Sachs Consumer Products Symposium in New
Canadian NGO Reports “Widespread”
York, personal-care competitors Procter & Gamble and Colgate-Palmolive
Heavy Metal Presence In Cosmetics touted in separate presentations the growing strength of their branded prod-
Environmental Defence Canada re- ucts over private label.
ports that 100% of 49 cosmetic prod- “Consumers across all price tiers [are] continuing to have a strong preference for
ucts tested from Canadian women’s branded products, which wasn’t necessarily the case in the depths of the reces-
makeup bags contained “toxic” heavy sion,” said P&G CFO Jon Moeller during a May 12 presentation.
metals, including lead, arsenic and
He noted some of the fastest-moving items in the company’s portfolio are higher-
cadmium….................................................5
price branded products such as Crest 3D White, Fusion ProGlide and Old Spice.
AHPA, Dr. Bronners Champion 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 port-
Bill To Legalize U.S. Industrial Hemp
folio will be “heavily weighed” to premium and super-premium prices.
Production
In a same-day presentation, CEO Ian Cook also discussed the strength of brands over
New legislation from Rep. Ron Paul, private label. According to the exec, toothpaste customers are among the most loyal
R.-Texas, would legalize the cultiva- to branded products. “Toothpastes, believe it or not, create a mouth feel, and they
tion and processing of industrial hemp, have flavors in them that consumers form an attachment to,” said Cook.
opening the door for U.S. farmers to
As the company continues to develop new oral-care technologies that impart a
compete in what could be a “very prof-
stronger “physical benefit,” consumers, “will stay with the Colgate variant they
itable” market and enabling U.S. cos-
grew up on because they have become completely wedded to the flavor and the
metics manufacturers to leverage the mouth feel,” he added.
plant’s seed and oil without relying on
foreign imports…......................................6 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.
MARKETPLACE
Though private label’s share of the toothpaste category expanded 5.9% in
Green Takes “Backseat” food, drug and mass outlets (excluding Wal-Mart) for the 12-week period end-
In Tough Economy, But It’s Not ing April 17, its growth lagged behind both P&G toothpaste brands (11.5%) and
A Passing Fad – GfK Colgate-Palmolive (6.8%).
In the struggling economy, consumers have Private-label brands accounted for less than 1% of the total toothpaste market
grown reluctant to cough up dollars for en- for the period, with sales of $1.49 million, according to SymphonyIRI. The figure
vironmentally friendly products, but that included sales in food, drug and mass outlets, excluding Wal-Mart.
doesn’t mean “green” is a passing fad, says
P&G led the toothpaste category for the period, with sales of $117.6 million and a
GfK Roper Consulting .................................7 37% share of the category overall.
Colgate-Palmolive is a close second, with sales of $109.6 million in the same out-
lets. It commands 34.4% of the category.
Table of Contents > 3
Moeller said that the oral-care category in the U.S. has been growing faster than
Story Continues > Page 4
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5. http://TheRoseSheet.ElsevierBI.com ‘‘The Rose Sheet’’
Canadian NGO Reports nically and are also well below the levels of exposure that are
considered to be safe,” the trade association says.
“Widespread” Heavy Metal CCTFA underscores that exposure to trace metals is unavoid-
Presence In Cosmetics able as they occur naturally in plants, soil, animals, food, drink-
ing water and air.
Lauren Nardella l.nardella@elsevier.com
E
The association also points out that only one of the 49 products
nvironmental Defence Canada reports that 100% of 49 tested by Environmental Defence was found to contain trace
cosmetic products tested from Canadian women’s makeup contaminants in excess of Health Canada’s proposed limits.
bags contained “toxic” heavy metals, including lead, arse-
nic and cadmium. Benefit’s Benetint lipgloss recorded the highest heavy metal
levels, with 110 ppm of lead and 70 ppm of arsenic.
The findings signal a need for Canadian regulations to be im-
proved, the group says. CCTFA says it “understand[s] that this one manufacturer with
results reported above the guidelines for one product has indi-
Environmental Defence recognizes that the metals are impuri- cated by way of a statement that it will be reviewing its own
ties not intentionally added to cosmetics. However, it takes is- test results and will ensure compliance
sue with current regulations that do not should there, in fact, be an issue.”
require such trace contaminants to be
listed on product labeling. Environmental Defence worked with
The Canadian Cosmetic, independent laboratory SGS Canada
”Canadians deserve to know what is in
Toiletry and Fragrance to test the 49 products, finding that
their cosmetics. Given the choice, we 100% of the products contained nickel,
think most consumers would not put Association points out
96% contained lead and 90% con-
arsenic or lead on their lips and faces,” that only one of the tained beryllium.
says Rick Smith, executive director of 49 products tested by
Environmental Defence, in a May 15 The 49 products included five founda-
Environmental Defence tions, four concealers, four powders,
release heralding the group’s report.
was found to contain five blushes or bronzers, seven mas-
The organization also suggests that
trace contaminants caras, two eyeliners, 14 eye shadows
Canada’s health authority could tighten and eight lipsticks or glosses.
its restrictions on impurities. in excess of Health
Canada’s proposed limits. On average, products contained
Health Canada’s Draft Guidance on traces of four out of the eight metals.
Heavy Metal Impurities in Cosmetics,
released in January 2009, notes that Environmental Defence points out that
“heavy metal impurities in cosmetic products are unavoidable none of the products list the heavy metals on the ingredient labels.
due to the ubiquitous nature of these elements, but should be The group urges Health Canada to officially adopt its guide-
removed wherever technically feasible.” lines for heavy metals in cosmetics, to institute a “European-
The guidance sets limits of 10 parts per million for lead, 3 ppm style” ban on harmful substances and to mandate disclosure of
for arsenic, 3 ppm for cadmium, 3 ppm for mercury and 5 ppm all ingredients, even those added unintentionally.
for antimony.
While overall the tested products did not surpass those limits, Report Piques CSC’s Interest
Smith says “Canada should improve the guidelines on impuri-
The Campaign for Safe Cosmetics asserts in a May 16 press
ties in cosmetics so they better reflect what is truly feasible.”
release that Canada’s test results “demonstrate that the prob-
Environmental Defence points to Health Canada’s recom- lem with impurities in cosmetics is likely much greater in the
mended lead limit of 10 ppm, calling it “considerably high” in United States than previously reported.”
light of FDA’s recent tests in which lead levels in 20 lipsticks
The findings demonstrate the need for cosmetics legislation in
averaged 1.07 ppm (“FDA Releases New Lipstick Lead Data,
the U.S., the activist organization adds.
Putting Names To Numbers,” “The Rose Sheet” Nov. 9, 2009).
“Consumers in the United States use the same products and
The organization also is critical of the guidance’s limited scope,
face similar weakness in cosmetics safety standards,” states
maintaining that it could have set limits for other heavy metals
Campaign for Safe Cosmetics Director Lisa Archer.
including beryllium, nickel, selenium and thallium, given the high
levels of those contaminants identified in its cosmetics testing. “The fact that there are so many hidden impurities in cosmet-
ics shows how urgently we need laws that protect consumers
In its May 16 statement, the Canadian Cosmetic, Toiletry and
by ensuring products are safe,” she says.
Fragrance Association upholds Health Canada’s guidelines
as adequate to ensure consumer safety. The guidelines “are The Campaign acknowledges that small amounts of exposure
based upon what levels can be expected to be achieved tech- to heavy metals are not likely to cause harm. However, the sub-
Unauthorized photocopying is prohibited by law. May 23, 2011 | 5
7. http://TheRoseSheet.ElsevierBI.com ‘‘The Rose Sheet’’
Green Takes “Backseat” In “In the market people put out these products and they’re just
giving people a bad experience.”
Tough Economy, But It’s Not “I would say that 70% of my marketing dollars is just re-con-
A Passing Fad – GfK vincing people to try organic,” Onysko added.
Suzanne Blecher s.blecher@elsevier.com In the eyes of Mirran Raphaely, CEO of Dr. Hauschka Skin Care,
I
consumers should be focused on teasing out companies’ green
n the struggling economy, consumers have grown reluctant
motives. “Why does the company exist? Does it exist for itself?
to cough up dollars for environmentally friendly products,
For its shareholders? For individuals? If that can be identified,
but that doesn’t mean “green” is a passing fad, says GfK
consumers really respond to that. It resonates.”
Roper Consulting.
For consumers, trusting a firm’s motives often translates to
“As the economy weakened in the U.S., the environmental move-
trusting its brands, according to Sheehan. “American consum-
ment kind of took a backseat,” said Kathy Sheehan, GfK general
ers tend to take a top-down approach rather than a bottom-up
manager, who presented findings from the firm’s “Green Gauge”
approach as far as trust and credibility.”
study at the Sustainable Cosmetics Summit in New York on May 13.
Interpreting the survey results for attendees, she said: “The envi- In Beauty, Healthy & Green Go Hand In Hand
ronment is important, but not at the risk of economic security.”
“In personal care, health and the environment are very much
When polled for the Green Gauge study, which measures con- at parity,” Sheehan said. That is, consumers purchasing green
sumer attitudes toward green products, 27% of respondents said products are often doing so for expected health benefits, she
it is worth paying more for environmentally said. In the appliance and automotive cat-
friendly products in personal care, versus egories, on the other hand, the driver for
29% in 2007. In the 2010 Green buying green is overall cost savings.
“2007 and 2008 were kind of the high Gauge study, 33% The general takeaway across categories is
point in consumer sentiment about envi- of respondents that consumers are less and less likely to pay
ronmentally friendly products,” said Shee- a premium for green products. “We’ve seen
believed that
han. “We saw rising interest and rising lev- erosion in the number of Americans who
els of purchasing, and then after 2008 and environmentally agree that different environmental products
to 2010, this has really started to slip.” friendly products are worth paying [extra] for,” said Sheehan.
While global warming was a hot topic in do not work as well At the same time, green products are “no lon-
2006 with the release of Al Gore’s “An as other products, ger a niche marketplace,” Sheehan observed,
Inconvenient Truth,” the public’s level of as opposed to 24% noting that in 1990 roughly 30% of Americans
concern has declined since, according to reported buying an environmentally friendly
two years ago.
Sheehan. product, versus about 60% today. “It’s had
Compared with past years, more Ameri- tremendous growth and is really starting to
cans agreed this year with the statement reach the mainstream arena,” she said.
that global climate change is overblown and the media is mak- Regardless of their willingness to pay, consumers also are not
ing too much of it. likely to expect less from companies in terms of sustainable,
eco-friendly operations. According to GfK, approximately one
Consumers Turned Off By Bad Experiences out of three Americans believes companies are doing a better
job of protecting the environment than in years past.
Sheehan suggested that efficacy has emerged as an issue in
the green products realm – the “sense that products have not “There isn’t a CEO out there who isn’t going to take sustainabil-
lived up to their promise.” ity into account. It’s a buzzword, but in the future it’s going to be
integrated into everything that everybody does,” said Sheehan.
“There have been quality issues, efficacy issues and things
don’t work as well as other alternatives,” she said. Sheehan noted that consumers increasingly are looking to
product labels to gain insight into brands and their operations.
In the 2010 Green Gauge study, 33% of respondents believed In GfK’s survey, 64% of respondents said they think the gov-
that environmentally friendly products do not work as well as ernment should be more involved in regulating, and set higher
other products, as opposed to 24% two years ago. standards for, product labeling.
Joshua Onysko, CEO of Pangea Organics, holds that in the per- “It’s a source of confusion out there – what are the differ-
sonal-care market specifically, non-authentic brands in many ent symbols? What do they mean? How does this impact me
cases have made a negative impression on consumers, causing and my personal health?” said Sheehan. “Things that can
them to shy away from purchasing organic again in the future. cut through the clutter and can simplify this continue to be
“In a lot of these brands, the products don’t work,” he said. very critical.”
Unauthorized photocopying is prohibited by law. May 23, 2011 | 7
9. http://TheRoseSheet.ElsevierBI.com ‘‘The Rose Sheet’’
glue at the top of my scalp right here. It felt so stiff, like I [used] tions – as a competitor, as well as Got2Be, though it caters to
an entire bottle of hairspray. Do not make the same mistake I guys and girls and NYM is “pretty much a girls’ line.”
did. You just need a tiny bit.”
After a dynamic 2010, NYM looks to expand further in 2011
While such messages may not be what brands have in mind (“Not Your Mother’s Expands,” “The Rose Sheet” Jan. 31,
when planning their marketing, teens no doubt appreciate 2011, In Brief). In addition to Walmart and ULTA, NYM prod-
the candid observations and practical advice frequently ucts currently are available at select grocery stores and
offered by their YouTube peers. Comments on Glamouris- online at CustomNails.com.
ta16’s and Aleexandraaxo’s video reviews are by and large
“More and more retailers are contacting us. They see [NYM]
favorable, with definite interest expressed in giving the
as a good-selling line that they need on their shelves. A lot of
products a try.
retailers have talked about needing something new and fresh –
and that’s what we are, new and fresh,” asserted Sherbet.
Further Expansion Targeted In 2011
She said the brand is developing new products – “shampoos,
DeMert Brands, which markets NYM, also has targeted young conditioners, products for shorter hair, leave-in conditioners,
people through Facebook, Twitter and participation in events things of that nature” – and has held discussions about pos-
such as the Teen Choice Awards. NYM will sponsor the MTV sibly entering skin care.
Movie Awards in June, according to Sherbet.
Expansion outside of the U.S. is a priority, and NYM is exploring
But it isn’t just teens that are buying NYM, she said. “That is its distribution options. “We do get a lot of feedback from inter-
probably the majority of our customers, but we’re finding that national consumers looking for our product,” said Sherbet.
with quality products, there’s an older market as well.” Con-
sumers in their 30s are using NYM, said Sherbet, adding: “I
don’t want to use my mother’s hair care.” Related Reading
As for the brand’s competition, Sherbet maintained that NYM “Not Your Mother’s Expands,” “The Rose Sheet” Jan. 31, 2011, In Brief
is “pretty unique.” She cited Unilever’s TIGI unit – which mar- Access these articles at our online store www.ElsevierBI.com
kets Bed Head and Rockaholic, among other hair-care collec-
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11. http://TheRoseSheet.ElsevierBI.com ‘‘The Rose Sheet’’
Scerene Aims “Pure And Effective” The firm also orchestrated a public relations effort aimed at
heightening awareness of “potentially harmful ingredients,”
Puristics Brand At Mass Market releasing survey results indicating women in Charlotte and Den-
Lauren Nardella l.nardella@elsevier.com ver “are exposed to over 20 potentially harmful chemical ingredi-
P
ents or irritants as a result of their daily facial skin-care regimens.”
eapack, N.J.-based Scerene Healthcare Inc. looks to take on
established skin-care players Procter & Gamble and L’Oreal The chemicals cited were based on “a couple of leading prod-
with Puristics, a brand the firm is pricing to compete at mass ucts” used by many of the women surveyed, Arnett said.
retailers and positioning as both “pure and effective.”
From the survey, “what we found interesting is that consum-
Puristics rolled out to test markets Charlotte, N.C., and Denver ers in general are becoming increasingly aware of what they’re
in March, and Milwaukee and Madison, Wis., in April and will be putting into their bodies and they think about that every time
released nationally in 2012, according to Scerene co-founder they go to the store, but they’re significantly less aware of what
and COO M’lou Arnett. they put on their bodies,” she said.
The brand’s lineup includes Puristics Totally Ageless anti- The firm hopes the survey will help women to think more about
aging skin care, Puristics Pure Protection feminine hygiene their personal-care product choices.
and Puristics Baby, comprising diaper rash cream, diapering
Early sales data from test markets “looks very positive,”
cream and lotion.
Arnett said, noting that consumers
“A lot of consumers in the past have are “being motivated by our message,
thought, ‘I can choose either natu- finding us in store and responding
ral or I can choose effective,’” Arnett quite favorably.”
explained in an interview. “And we’re
Efficacy is the other big component in
saying you can choose pure plus effec-
Puristics’ positioning.
tive in one product – you don’t have to
make that compromise.” Arnett cited a study the firm con-
ducted in which 100% of women
Scerene developed the Totally Ageless
tested experienced a measurable
line “from the ground up,” as opposed
reduction in fine lines and wrinkles
to modifying existing products. “We
after three weeks of using Puristics
started ingredient by ingredient [and]
Totally Ageless Advanced Skin Reju-
built them to all be pure and effective,”
venating Lotion, “which is really a
the exec said.
wonderful claim for a product that
The firm looked to the Cosmetic Ingre- has no potentially harmful chemicals
dient Review program, the American [and] has been formulated and tested
Academy of Dermatology and the to be similar from an aesthetic profile
Environmental Working Group’s Skin Puristics Totally Ageless ... to what a consumer might already
Deep database to determine which be buying.”
“potentially harmful” ingredients
The exec said Scerene management’s
would not be used in Puristics, weeding out parabens, phthal-
background helped in developing Puristics.
ates and sulfates.
Arnett and Scerene co-founder and CEO Bob Casale both
As for ingredients that are in the line, honeysuckle extract
worked on the award-winning Mr. Mucus campaign for the
serves as a preservative in the brand’s skin-care products,
Mucinex expectorant at Adams Respiratory Therapeutics,
while a yeast peptide blend is the active ingredient in the anti-
where Casale was chief operating officer and Arnett was senior
aging line, Arnett said.
VP of marketing and advertising. They played key roles in help-
Totally Ageless products include Night Recovery Cream, SPF ing Adams grow from a $60 million company to a nearly $500
15 Daily Anti-Aging Lotion, Advanced Skin Rejuvenating Lotion, million company before Reckitt Benckiser bought it in 2008
Revitalizing Eye Cream and Intensive Eye Treatment. The prod- (“Scerene Healthcare Plans 2010 Entry With Puristics Lines,”
ucts are available on a regional basis now, but they also are on “The Rose Sheet” Nov. 16, 2009).
sale at Drugstore.com for $16.99 each.
“We come out of big brand personal-care and OTC products,
Scerene “has every expectation that we’ll be well-placed on so we applied all the same rigors of everything that we’ve ever
the shelves of all of the big food and mass merchants,” accord- learned and done to what we’re doing now,” Arnett remarked.
ing to Arnett. Puristics items retail at an “approachable” price
Additionally, the experience the duo gained from OTC market
point in the neighborhood of competing products, she said.
analysis and the connections they made when working previ-
Scerene is supporting the launch in test markets with TV, print ously with retailers have been helpful in bringing Puristics to
and digital advertising. market, he said.
Unauthorized photocopying is prohibited by law. May 23, 2011 | 11