Elisabeth King reports on Estée Lauder's acquisition of Frederic Malle, Condé Nast settling intern lawsuit for US$5.8million, Too Faced Cosmetics potentially being next on the block, and three Australian companies named as finalists in the 2014 Sustainable Beauty Awards.
Estée Lauder makes it three in a row with acquisition of Frederic Malle
Estée Lauder products may be sold in 150 countries but the recent acquisition of RODIN olio lusso, Le Labo and now Editions de Parfums Frederic Malle could have a lot to do with the multinational's ambitions in China. Over 90% of Chinese women use moisturiser but only a third use makeup and less than 10% spritz on fragrance.
Estée Lauder has already launched the Nutritious skincare brand dedicated to the Chinese market. Several fragrances targeted at Chinese consumers are already in the Lauder pipeline and fragrance development doesn't get more personal than the guiding philsophy behind Le Labo and Frederic Malle.
Terms of the deal were not disclosed but Frederic Malle, founded in 2000, specialises in super-luxury fragrances created by 12 master perfumers. There have been 21 releases to date and the brand recently made an oud-based fragrance called The Night exclusively for Bloomingdale's store in Dubai. The super-chic range is sold in Mecca Cosmetica in Australia, Barneys in New York and Liberty in London, as well as five standalone boutiques in Paris and New York.
John Demsey, Group President at Estée Lauder, who will also oversee the develeopment of RODIN olio lusso and Le Labo, will be the man at the helm. Exclusive and signature fragrances for the rest of the world's perfume lovers will no doubt be a major focus as Estée Lauder expands further into the fast-growing luxury niche sector.
Condé Nast settles intern lawsuit for US$5.8 million
The full details of the Condé Nast intern settlement have followed hard on the heels of NBC Universal's agreement to pay US$6.4 million to thousands of interns who filed a class action against the media and entertainment giant.
The publisher agreed to the payout in April to settle a class action instigated by two former interns in the case - Ballinger vs Advanced Magazine Publishers Inc. Following months of negotiations, Condé Nast has agreed to the specific amount of US$5.8 million - a payment of approximately US$700 to US$1900 to each intern covered by the settlement.
According to an internal memo sent to staff by CEO Chuck Townsend: "While we continue to believe the internships that were offered at Condé Nast provided experiences that were among the best in the media business, we determined that settling the lawsuit is the right business decision for Condé Nast, as it allows us to focus our time and resources on developing meaningful, new opportunities to support future up-and-coming talent". The company ended its internship program last October but perhaps partially-paid entry level positions could be under consideration.
Too Faced Cosmetics could be next on the block
Clover the chihuahua may be the company mascot of Too Faced Cosmetics but there's nothing frou-frou about the US brand's business success. Founded in 1998 by life partners and beauty entrepreneurs Jerrod Blandino (Creative Director) and Jeremy Johnson (CEO), Too Faced now enjoys multi-million dollar sales with net annual earnings of US$25 million and enjoys pride of place at leading beauty retailers such as Mecca Cosmetica, Sephora and Ulta. Best sellers include Better Than Sex Mascara and The Chocolate Bar Eye Palette.
Partially owned by private equity firm Weston Presidio, insiders say that investment bank Piper Jaffray is already working on the sale process. With a valuation likely to exceed several hundred million dollars, Too Faced is likely to start wooing potential bidders in the first quarter of next year.
Three Australian companies named as finalists in 2014 Sustainable Beauty Awards
Most beauty and cosmetic companies now have a sustainabilty policy from using recyclable packaging to removing potentially harmful ingredients from formulations. But there are more committed brands who push the edges of the envelope when it comes to eco-friendly practices says Organic Monitor. The London-based research and marketing consultancy, which specialises in the organic food and cosmetic industries, has announced the finalists in its much-anticipated annual awards honouring those who have gone the extra mile, including three Australian companies - Jurlique, Green Lab Organics and Pure & Green Organics. The winners will be announced in Paris on November 24th.
- Sustainability Pioneer Award
Asia Plantation Capital ( who foster sustainable agricultural practices)
Cruelty Free International
Neal's Yard Remedies
Surya Brazil - a Brazilian skincare brand based on eco-ingredients and Ayurveda - Sustainability Leadership
Jurlique
Aveda
Wholefoods Market
Yves Rocher - Sustainable Packaging
Laboratoire Nuxe
Organic Essence, the US beauty brand
Pangea Organics, the US organic skincare brand whose products are made in small batches.
Surya Brazil - Green Formulations
Erbaviva - a US organic brand for mothers and babies
Green Lab Organics - the Australian company behind Abache organics skincare
LIM Cosmetics
Pure & Green Organics - the Sydney-based organic skincare company which offers the zkin brand.
Snippets from the wires
- Appointing a few older faces as brand ambassadors amounts to little more than tokenism according to leading analysts and researchers. Imogen Matthews Associates says that British women aged 45-plus spend $3.42 billion a year on makeup, skincare and toiletries. Catherine O'Connor, senior analyst for Canadean, reports that in Germany older women account for 33% of beauty sales. While in France, Italy, Spain and the US, consumers aged 55-plus account for 25% of all cosmetics sales.
- If you routinely sweep hotel bathrooms of those handy little toiletries, you're not alone. A recent survey by the Hilton hotel group says that 73% of American hotel guests confess to taking hotel toiletries. Millennials take the most - 31% - in contrast to people over 50 - 13%. Cheapskates - 10% of those surveyed - even owned up to re-packaging them as gifts.
- The third quarter of 2014 was buoyant for US prestige beauty sales. The premium sector recorded a lift of 6% to US$2.4 billion reports the NPD Group. Eye, face and lip products contributed the bulk of the growth but fragrance sales spiked 5% and facial masks enjoyed double-digit growth.
- Men's deodorants have become major earners says Euromonitor. Aerosols and roll-ons are the second fastest growing category in the male grooming category and racked up record revenues of US$9 billion in 2013.
- The death of Joan Rivers shone the spotlight on the potential risks of cosmetic surgery for the elderly. A study from Vanderbilt University Medical Center in the US analysed data from more than 129,000 procedures - about 19% of which involved women aged 69 or more - and found no significant difference in the rate of complications for people aged 65-plus. Says lead author, Dr Max Yezmelyev: "The complications rate is similar to younger people when surgery is performed by a board-certified plastic surgeon".
Image: Too Faced Cosmetics
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