P&G leads the way in post-pandemic recovery

P&G leads the way in post-pandemic recovery

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.


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Simon Pitman established his career as a business journalist 25 years ago. He is the founding editor of the Cosmetics Design B2B business journals, which continue to be the leading beauty and personal care news source worldwide. For almost two decades Simon has been focused on what makes the industry tick, uncovering the latest technologies and product launches, as well as the newest trends to impact this fast paced industry. He is also a veteran of the in-cosmetics Group events, and having attended every one of the shows worldwide he has developed a deep knowledge about everything pertaining to cosmetics formulation.

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