Cosmetics News In Brief: FTC ‘Organic’ Roundtable; Coty Buys ghd; Avon ‘Boss Life’; More

Industry and NGO reps will join FTC and the USDA October 20 to discuss how consumers perceive “organic” claims on non-agricultural products, such as cosmetics. In other news, Coty acquires pro hair-care brand ghd (Good Hair Day), and Avon launches a campaign to drive sales rep recruitment in North America.

Roundtable Planned For Non-Agricultural ‘Organic’ Claims

Consumer interpretations of “organic” claims on non-agricultural products – or products that generally fall outside of the scope of the National Organic Program, such as cosmetics – will be the subject of an Oct. 20 roundtable being held by the Federal Trade Commission and US Department of Agriculture. Representatives from the Environmental Working Group, Organic Trade Association, academia and the host agencies will be on hand to discuss the issue, as well as a recent FTC/USDA study on organic claims and “approaches to address potential deception, including consumer education.” Comments are being accepted in advance, with particular interest in “further evidence of consumer perception,” through the FTC’s website. The issue of organic fraud in the cosmetics sector was largely addressed by Whole Foods’ organic standards adopted in 2011, but abuses still occur, according to leading advocates for reform. (Also see "Dr. Bronner’s V. USDA? Firm Meets With Agency On “Organic” To Avoid Suit" - HBW Insight, 22 Oct, 2012.)

Coty Expands Pro Hair Portfolio With ghd Acquisition

Just weeks after announcing the completion of its merger with more than 40 beauty brands from Procter & Gamble Co., Coty says it will acquire London-based ghd (Good Hair Day) from Lion Capital LLP for $510m in cash. No. 2 in the world in salon hair care, according to statistics it highlighted earlier this month, Coty picks up ghd’s premium hair-styling tools, such as straighteners, dryers and curlers, which drove revenue of roughly $217m in fiscal 2016, it says. “Not only do we expect ghd to strengthen our professional hair portfolio and enable Coty to provide even better hair solutions, but we also believe there is strong growth potential for ghd across several markets,” notes new Coty CEO Camillo Pane in the company’s Oct. 17 release. Ghd will contribute to the firm’s Professional Beauty division but will operate as a standalone business managed by current ghd CEO Anthony Davey. The deal is expected to close by year-end. (Also see "Coty Wraps P&G Merger, Projects Return To Growth In FY 2017 Back Half" - HBW Insight, 3 Oct, 2016.)

Avon Invites Prospective Reps To Live The ‘Boss Life’

New Avon LLC’s “This is Boss Life” recruitment campaign “spotlights that there is nothing more beautiful than succeeding on your own terms,” explains CEO Scott White in the firm’s Oct. 7 release. Spanning television, print and radio, as well as social media, the campaign aims to build Avon’s North American representative base and “ignite passion for the Avon brand.” The TV spot, set to “I Will Survive,” encourages viewers to look beyond traditional 9-to-5 jobs to the “flexibility, freedom and financial opportunity” of Avon product sales. Print ads share real success stories from reps across three demographics – namely, a Millennial, Momtrepreneur and Power Couple. New Avon – the direct seller’s North American business that operates as a privately held company majority-owned by Cerberus Capital Management – currently is supported by almost 400,000 representatives in the US, Puerto Rico and Canada. (Also see "Avon Carves Out North American Biz Via $605M Cerberus Deal" - HBW Insight, 20 Dec, 2015.)

Mintel: Skin-Care Brands Forage For Exotic Ingredients

Cannabis, snail mucin and bee venom are among “exotic” ingredients making their way into new skin-care launches, according to market research firm Mintel. In a recent blog post, Mintel beauty analyst Margie Nanninga suggests that stiff competition in a saturated market has companies scouring the globe for unique or exotic ingredients to distinguish their offerings. The trend has “natural” tie-ins, she suggests, pointing to products featuring eggshell membrane (Perricone MD’s OVM cream, $170 for 2 oz.) and metals such as silver, copper, platinum and gold (Peter Thomas RothUn-Wrinkle 24K Gold Intensive Wrinkle Sheet Mask, $68 for one mask). Nanninga notes that “Asian skin-care trends have been met with enthusiasm in the US, which can pave the way for additional launches from other regions as well, exemplified by interest in African skin-care ingredients.”