The Heat Group acquires Doward International, Australia's top 10 shampoo brands, Solar D signs partnership for $30 million global expansion, and Edgewell UK buys men's grooming brand Bulldog.
The Heat Group acquires Doward International
Most people are unfamiliar with the name Doward, in spite of the fact that the company has been in business for 96 years. Household name recognition comes via its portfolio of powerhouse brands - Mason Pearson, Speedo, The Beauty Case, body tools and Fleurique. The Heat Group, one of Australia's leading cosmetic, skincare and personal care companies, has bought Doward, which boasts wholesale revenues of $40 million, for an undisclosed sum.
The Heat Group sells 6.5 million product units a year and Doward closely matches the figure with 5.5 million product units. The combined selling power of the two companies equals sales of 20 units every three seconds. Doward is a stalwart of Australian pharmacy with more than 4000 pharmacy customers ranging its 100 brands. The Heat Group needs no introduction to the beauty industry and media as the distributor of essence, the number one volume makeup in the world, and its own brand portfolio of , , The Beauty Exchange and . Until the Coty buyout of over 40 P&G brands, Heat distributed the Max Factor and COVERGIRL brands.
The Doward and Heat pharmacy teams will remain separate, but the reach of the combined companies covers 6000 pharmacies nationwide. Says Gillian Franklin, founder and managing director of The Heat Group: "The management team of Heat have actively sought to acquire a company with a dominant presence in the Australian pharmacy industry, and the Doward business is both synergistic and appropriate for us. We are looking forward to realising the gains in both the short-to-medium and long-term."
Australia's top 10 shampoo brands
Hopefully, a large percentage of Australians rely on others to do their shampoo shopping. According to Roy Morgan Research, 73.9 per cent of Aussies (14.5 million) bought a shampoo at least once in an average six months. It was a good first half for Alberto. Sales were up 12.8 percent to capture 14.5 per cent of the market, overtaking Head & Shoulders (14.1 per cent) as Australia's number one shampoo brand.
Pantene Pro-V holds the number three spot (12.5 per cent), followed by (11.7 per cent) and (11 per cent). Garnier (10.5 per cent), Sunsilk (6.3 per cent), Schwarzkopf (5.9 per cent), (5.4 per cent) and Organic Care (5.3 per cent) complete the roll-call of Australia's top 10 best-selling shampoos.
Alberto and Tresemmé are far more popular with consumers aged under 50, boasting an above-average percentage of buyers who agree with the statement - "It's important to look fashionable" - reports Roy Morgan. Dove buyers also skew younger, which suggests that the brand's confidence-boosting ad campaigns are hitting their target markets. Pantene is the only shampoo brand in the top 10 which is more popular with the over-50s, in contrast to younger demographics.
According to Norman Morris, Industry Communications Director, Roy Morgan Research: "While there has been some moderate movement among the bestsellers, with Alberto overtaking Head & Shoulders, and Tresemme and Garnier Fructis gaining ground, the four most popular brands seem to have an unassailable grip on the market and currently account for over 50 per cent of shampoo buyers".
Solar D signs partnership for $30 million global expansion
Australia is a world leader in sunscreen development. But Solar D broke new ground in late 2014 as a world-first sunscreen which allows Vitamin D-forming wavelengths to reach the skin while screening out harmful radiation. Major Australian pharmacy groups, supermarkets and mass retailers such as Target, Woolworths, Amcal and Chemmart became mainstream stockists almost from the get-go.
New orders from oveseas arrived almost daily, especially from Asia where Vitamin D deficiency is a major problem. Solar D has signed a two year partnership to secure $30 million worth of sales with KW Internatinal, a US supply chain and distribution company, to leverage global expansion. The brand's SPF30 and SPF50 sunscreens will be distributed by KW International's 42 locations across the US, China and South Korea. The two parties are also in key talks with some of South Korea's largest skincare manufacturers to license Solar D technology.
Online sales though Amazon and Walmart have already achieved good momentum. "This opportunity is a game-changer for our business, as we now have the ability to leverage off the reach and experience of KW International's business to accelerate Solar D's availability across North America and Asia", says Mathew Collett, CEO and Founded of Solar D.
Edgewell buys Bulldog, the UK men's grooming brand
It's been a big year for the acquisition of startup or indie men's grooming brands by multinationals. As global sales of men's personal care products continue to skyrocket, Edgewell Personal Care, the parent company of , Wilkinson Sword, Banana Boat and Hawaiian Tropic, has bought the fast-growing British brand, Bulldog Skincare Holdings, for an undisclosed sum.
Just as Unilever snapped up The Dollar Shave Club to broaden its brand portfolio, Edgewell is seeking to expand its reach with younger maes. Bulldog founder, Simon Duffy, was only 29 when he teamed with business partner, Rhodfri Ferrier, to launch the naturally-based skincare and shave brand in 2006. Bulldog products are sold in Woolworths, Priceline, Target and select retailers in Australia, but the brand's largest markets are the US, the UK, Sweden and South Korea. - a total of 17,000 locations.
Bulldog will gain access to the data and analysis of the world's second largest razor maker. "We are excited about the future and, in particular, getting our products to more people in more countries", adds Duffy.
Snippets from the wires
- Chemist Warehouse is the fastest-growing retailer in pharmacy, so gaining shelf presence is a major win for any brand. Nude by Nature, Australia's number one mineral makeup brand, will roll out in 275 Chemist Warehouse stores through to the end of the month.
- Double digit gains by, and Smashbox helped to lift sales one per cent in the first fiscal quarter of 2017 to US$2.87 billion. Solid growth in makeup from the core Estee Lauder and brands offset lower sales from and the skincare porfolios of Estee Lauder and . Australia and New Zealand both turned in double digit growth over the period.
- Prestige beauty sales continued an onward and upward trajectory in the US, lifting 8 per cent for Q3 in the 2016 fiscal year to US$3.5 billion, reports the NPD Group.
- LG Household and Healthcare has acquired the Asia Pacific business of the Reach oral care brand from Johnson & Johnson. The acquisition extends the South Korean giant's oral care business to Australia, New Zealand and India.
- The global haircare market will continue a steady 3 per cent growth rate to 2024, predicts Transparency Market Research. Valued at US$81.3 billion in 2015, sales are expected to reach US$105.3 million over the period.
Image: @garnierau
Newsletter image: @bulldogskincare
