Allergan buys Zeltiq, makers of CoolSculpting, for $US2.48 billion, Yes To attracts $US8 million cash injection, new data reveals Pinterest drives more beauty purchasing in-store and, Shiseido forecasts 10.5 per cent growth in 2017.
Allergan buys Zeltiq, makers of CoolSculpting, for $US2.48 billion
Allergan may have missed out on a $US160 billion merger with pharma giant Pfizer, but the maker of Botox has been on a serious shopping splurge. Two years ago, the company acquired Kythera, who produce the double-chin reducing therapy Kybella, for $US2.1 billion. Late last year, the $US2.9 billion buy-out of LifeCell, the regenerative medicine maker, hit the headlines.
Allergan also make Juvederm fillers but the hottest trend in the aesthetics profession is the rest of the body, says CEO Brent Saunders. That's why the company has bought the CoolSculping System from Zeltiq, a non-invasive procedure that chills and eliminates fat cells, for $US2.48 billion. Allergan says that body contouring is already a $US4 billion a year business and is primed for growth. Zeltiq is a leading player with revenues from the CoolSculpting System accelerating to $US350 million in 2016.
Fueled by the continuing upsurge in popularity of non-invasive procedures such as Botox and Juverderm fillers, Allergan's aesthetic pharmaceuticals division grew 40 per cent in 2016 to $US1.62 billion. "With CoolSculpting, our offering to plastic surgeons, dermatologists and aesthetic practitioners will now extend to three of the largest and fastest-growing segments of their business", says Saunders. The deal is expected to be finalised in the second half of the year.
Yes To attracts $US8 million cash injection
Australian beauty lovers have a soft spot for Yes To because of the California-based company's local links. Co-founders Lance Kalish and Ido Leffler met at UTS Business School in Sydney. The naturally-based skincare brand offers a range of hero ingredient lineups from the original carrots through tomatoes, blueberries, cucumber and coconut.
In July 2015, Ingrid Jackel, formerly of Physician's Formula, took over as CEO. Now the number two natural brand in US, Yes To boasts annual sales of $US50 million and is sold in 25,000 outlets in 15 countries, including the US, the UK and Australia.
Back in 2008 Yes To received $US14 million in Series A funding, led by San Francisco Equity Partners, to springboard further growth in the US market. Named as one of the top 10 emerging cosmetic brands by leading researcher, Kline &Co, Yes To is planning another phase of rapid expansion. Avidbank Speciality Finance has provided a US$8 million fund infusion to further cement the company as an innovative leader in the fast-growing natural beauty category.
New data reveals Pinterest drives more beauty purchasing in-store
Transient Instagram images and Twitter posts may not be the most consistent path to purchase, reveals The Beauty Trend Report 2016. The US-based data says that Pinterest users make more purchases in-store after viewing a branded image. The main reason is that shoppers actually welcome commercial content on the platform.
A hefty 50 per cent of Pinterest users have made a beauty purchase after seeing a pin. Pinners also search for prestige brands by name, particularly for mascara, eye shadows, lip products and foundations, says Stephanie Kumar, Head of Category Insight. "Commercial content on other platforms tends to feel disruptive or fleeting. But on Pinterest, 75 per cent of content comes from businesses. People actually seek out ideas from brands, so it's easy to influence browsers and shoppers".
Men are a good target market on the app, says ComScore, the global media measurement company. One in four Millennial males are on the platform looking for style and grooming inspiration. Budget personal care offers are also popular with both sexes with users often adding drugstore or pharmacy to their searches.
Shiseido forecasts 10.5 per cent growth in 2017
The Japanese giant has been pulling out the stops to meet the K-Beauty challenge in travel retail, the Chinese market and online. All the activity is paying off and Shiseido has reported a 5.2 per cent uptick in net sales in 2016 to $US7.5 billion. Online sales in China spurted 50 per cent to deliver an 11.4 per cent sales increase. While global shoppers caused Shiseido's travel retail sales to jump 60.4 per cent over the previous year.
The company has forecast double digit sales growth in 2017 to 10.5 per cent. Losing the Jean Paul Gaultier fragrance license in 2015 dented progress for a while, but the addition of Laura Mercier and the Dolce & Gabbana beauty and fragrance business has picked up the slack. Sales in Europe and the Midddle East slumped by 8.1 per cent, but the downturn was counteracted by an 8 per cent uplift in sales in the Americas.
A major advertising push for Dolce & Gabbana and further emphasis on e-commerce is expected to drive profits this year. Buoyed by its success in China's huge online market, the Japanese market leader is hoping that 20 per cent of global prestige sales will come from online channels within the next three years.
Snippets from the wires
- Trends can bubble along quietly for years before becoming mainstream. Clinique Work Out All Day Makeup was launched over 20 years ago. But, according to Mintel, Active Beauty has finally become a fully-fledged and much wider category and is poised to become one of the hottest trends of the year. Moving beyond sweat-proof foundation, the sector now covers anti-pollution hair and skincare, sun and infrared protection and even exercise wear that scans your skin temperature and moisture levels to prompt an extra squirt of anti-perspirant.
- Move over Grecian Formula and Grecian 5, the men's hair colourants that gradually eased away the grey for generations of men. Just For Men, the world's number one hair colourant for men, has launched Control GX, the first shampoo to gradually reduce the appearance of grey hair. All of the above brands are made by Combe Inc, the US company that dominates the men's hair colouring market. Billed as a game-changer, Control GX is the result of eight years of R&D and restores hair pigment with each use.
- Sales of almond milk in New Zealand have doubled over the past two years to $NZ14.4 million, reports Nielsen. Fuelled by four key drivers - lactose intolerance, allergies, veganism, the paleo diet and general concerns about health - other milk alternatives are also enjoying healthy sales across the Tasman. The most popular is soy milk ($NZ18.21 million), followed by almond milk, rice milk $NZ4.46 million), coconut milk, excluding cans ($NZ2.25 million) and oat milk ($NZ2.05 million).
- Melbourne's blockbuster sporting events and art exhibitions, sensational shopping, dining and nightlife make it the number one city Australians would like to visit in the latest Roy Morgan Holiday Tracking Survey. According to the survey 4.2 million Aussies across all generations say they would like to visit the Victorian capital over the next two years - a spike of 33 per cent on 2006 figures when Melbourne also scored the top spot. Sydney was a distant second with 2.4 million Australians indicating a preference to visit the Harbour City. Brisbane and Hobart have eclipsed Perth over the past decade to jointly grab the third ranking with 1.8 million people wanting to go there.
