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Annual Report 2016 ANNUAL REPORT 2016 Change Appearance Hair Clean Safety Nails Trust Oralcare Well-being Perfume Consumer Confidence Self-esteem Skin Protect Suncare Efficacy Science Behind Innovation eep in good condition CTPA Annual Report 2016 Contents 1 Board of Directors 4 2 Chairman’s Report 6 3 Executive Summary 7 4 Review of the Year 8 5 CTPA Events 16 6 Getting the Best from Exiting the EU 20 7 A Credible Authority: ‘Being More Brave’ 24 8 The Look Good Feel Better Experience: “Sisterhood of Positivity” 26 9 Cosmetic Industry in Figures 28 10 CTPA Members 34 11 CTPA Committees 36 12 CTPA and Members’ Representatives to Cosmetics Europe 38 13 CTPA - Our Role, Member Advice & Public Voice 40 Annual Report 14 Financial Overview 42 for the year ended 2016 3 1 CTPA Board of Directors At the end of the year under review, the CTPA Board of Directors comprised: Dr Gerald (Ged) O’Shea Lee Gelderd Chairman, CTPA Managing Director, Godrej Consumer Products (UK) Global Innovation Director, Walgreens Boots Alliance Christopher (Chris) How Massimiliano (Max) Costantini Chief Executive Officer, Swallowfield plc Vice-chairman, CTPA Chief Executive Officer, Mibelle Group Edward (Ed) Hughes Senior UK Counsel, Estée Lauder Cosmetics Aimee Goldsmith Vice-chairman, CTPA Dr Marie Kennedy Associate Director Communications – UK, Ireland & Nordics, Director International Compliance, Elizabeth Arden Procter & Gamble UK Joanna (Jo) Leonard Dionne Anderson Director Regulatory Affairs, Consumer Healthcare GB Managing Director, H Bronnley & Co UK & Ireland, GlaxoSmithKline Consumer Healthcare Mark Bleathman Dr Amanda Long VP Brand Building Personal Care UKI, Unilever UK Director, EMEA Regulatory Affairs & Global Product Integrity Engineering, Avon Cosmetics Jacqueline Burchell Global Marketing and Product Development Director, Debbie Rix PZ Cussons Beauty UK General Manager, Mass, Kao Corporation Philip Durocher (6 Sept 2016) Alan Ross Vice-President & General Manager, Colgate-Palmolive (UK) Marketing Director Skincare & CHC, Northern Europe, Johnson & Johnson Paul Gaff General Counsel, Chanel Vismay Sharma (24 May 2016) Country Managing Director UK and Ireland, L’Oréal (UK) Where Directors were appointed during the year, the date of appointment is given in brackets. 4 CTPA Annual Report 2016 Resignations from the Board during 2016 Michel Brousset (24 May 2016) Country Managing Director UK and Ireland, L’Oréal (UK) Massimo Poli (6 Sep 2016) Vice-President & General Manager, Colgate-Palmolive (UK) Brian Riddick (30 Nov 2016) Vice President UK & Ireland, Coty UK Executive Staff Honorary Treasurer Dr Christopher (Chris) Flower John Harold Director-General Company Secretary Deborah (Debbie) A Hunter Director of Commercial Affairs Joyce Traylen Dr Emma Meredith Director of Science Olivia Santoni Solicitors Director, Regulatory & International Services Norton Rose Fulbright LLP Auditors Crowe Clark Whitehill LLP Bankers Barclays Bank Plc 5 2 Chairman’s Report Dr Ged O’Shea on 2016 Indeed, this is also important for third countries who export to the UK, whether or not those products are distributed more For the past three years, CTPA has conducted open members’ widely throughout the EU Member States. Thus, the work meetings to enable it to gauge members’ views on scope and begun in 2014 laid the foundations for our ability to lead activities. This has been part of a longer-term strategic review on this issue because of our global vision, our international of where and how we want to position the Association so contacts and the relationships we have established over as to meet future needs of the membership. The feedback many years. from members proved invaluable both in terms of confirming that our approach has broadly been exactly what they want, Brexit is an issue that will touch the lives of everyone, one way and also in giving the Association the mandate to pursue or another, in the years ahead but I am confident that the an enhanced role both in the UK and internationally. team at CTPA will be best placed to unite members and The process reached its conclusion during 2016 and involved politicians, here and abroad, to recognise the value of our re-appraising our workplan to ensure its priority and our industry and its products and therefore the need to protect its resource input were appropriately aligned to create the viability throughout and after the withdrawal process. necessary capacity to tackle the enhanced scope and future objectives for CTPA. Throughout, we were mindful of the As Chairman over the past four years, I have seen the forthcoming Referendum on the EU membership of the UK, Association’s workload grow but, ably led by Chris Flower, ‘Brexit’ as it has become known. the CTPA team is to be applauded for the way it continues to tackle new challenges with foresight and diligence In the event, the outcome of the EU Referendum was enabling members to concentrate on ‘day-to-day business’. unexpected by many but, thanks to the planning already In particular, I am pleased to see Olivia Santoni being undertaken, it did not derail the CTPA strategy or its recognised for her strategic work on ‘Brexit’ with her implementation. It did lead to CTPA declaring itself to be promotion to Director, Regulatory and International Services the focal point where the UK cosmetics industry could hold at CTPA. I would like to thank all the staff in this, my last its Brexit discussions and to establish CTPA as the source of report as Chairman, for their full support and for that of my factual information for members and the general public alike. Vice-chairs, Honorary Treasurer and fellow Board members. As the authoritative public voice of the UK cosmetics industry, However, it is only possible with the support of member CTPA was already well-placed to work on ensuring the companies contributing to the collective knowledge through cosmetics industry and its needs would not be overlooked meetings and work projects that allows the Association to as we step up political engagement in the negotiations that be as successful as it is. Thank you. will take place. The creation of an EU Exit Strategy Group has allowed us to identify the key needs of the cosmetics industry post-Brexit and to develop a strategy that gives us the best chance of having them adopted. This relies to a large extent on demonstrating that the solutions we identify for the UK industry are also solutions that will work equally well in the future for our EU partners, with whom we trade in virtually equal measure with 65% import and 66% export. 6 CTPA Annual Report 2016 3 Executive Summary From l-r Dr Chris Flower CTPA Director-General Max Costantini CTPA Vice-chairman Aimee Goldsmith CTPA Vice-chairman John Harold Honorary Treasurer View from Dr Chris Flower 2016 presented a number of challenges on top of those The European Commission’s 2016 report on compliance with routinely handled by the CTPA in its role as the authoritative the Common Criteria for Cosmetic Claims received little public voice of a vibrant and responsible industry. attention in the media. The report showed 90% of nearly The Association had to seek a new home and in April it 39,000 cosmetic claims investigated by the competent moved to Sackville House, Piccadilly, after more than twenty authorities of the Member States were compliant with the years in the previous offices. This provided opportunities to Common Criteria, a figure consistent with an extensive survey review and streamline internal operations and add new for Cosmetics Europe by the independent European Advertising capacity. The actual move happened in two days, with no Standards Alliance (EASA). No other industry sector advertises interruption to member services; testimony to the planning as much and no other industry sector has been investigated as and commitment from the staff as a whole, including key extensively and found compliant. We should be proud of that, service providers, Solutios and IOR. but also be on our guard to ensure we do not slip. To do so invites further scrutiny from those who do not really know In 2016 the issue of plastic microbeads used in a minority of our industry or its ability to substantiate the claims it makes cosmetic products took centre stage. Although the European but would themselves happily make unsubstantiated claims industry issued a recommendation in 2015 that they should against us or our ingredients. be removed from products where they clearly go ‘down the drain’ in use, nevertheless the UK’s Environmental Audit I finish with sincere thanks to all of those individuals who Committee (EAC) conducted hearings of evidence during have helped us during 2016, by participating in our many 2016 and as a result the Environment Minister said the UK committees and their work and by completing the surveys will introduce a ban in 2017. we have conducted. Without your input, we would not be able to provide you, the members, with the level of service The Department for Environment, Food and Rural Affairs to which we aspire. (DEFRA) has consulted on its proposals for the UK ban and CTPA has responded on behalf of members. Evidence from industry, academia and NGOs alike clearly demonstrates that plastic microbeads from rinse-off cosmetic products represent a tiny, reducing, fraction of the plastic entering our seas but it was this tiny cosmetic Executive Comment use that gained the headlines. We anticipate that 2017 will bring forth evidence-based, proportionate legislation, As anyone who has worked in a trade association environment aligned with industry commitments, so as to create the will know, gaining members’ consensus whilst also challenging ‘level playing field’ proposed by the EAC. the norm is not easy. We are proud to say that at CTPA the Board of Directors has the pleasure to work with The plastic microbeads story clearly indicates once again that far-sighted and talented staff who work on behalf of the if a link can be established between the cosmetics industry cosmetics industry at a strategic and international level and any issue, we will be in the headlines.
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