COSMETIC NEWS WEEKLY No 620 / November 10 2014 www.cosmeticsbusiness.com Lauder on luxury acquisition drive Just 16 days after its last acquisition thrilled to welcome her and her brand to INSIDE THIS ISSUE announcement, Estée Lauder has The Estée Lauder Companies.” revealed the addition of yet another Rodin said: “The guiding philosophy BUSINESS luxury brand to its ever-growing portfolio. of my brand has always been that ‘there LVMH and Hermès enforce The latest brand to join the Lauder is beauty in simplicity’. The Estée Lauder settlement agreement family is RODIN olio lusso. The luxury skin Companies not only shares and embraces page 3 care brand was founded by New York the core values that I’ve instilled into my stylist Linda Rodin in 2007, who is said business, but also has an amazing track ASIA FOCUS to have taken inspiration from the ‘easy- record of nurturing and growing prestige LG Household & Health Care going’ Italian beauty aesthetic. brands while maintaining – and encouraging acquires stake in CNP The brand provides a selective line – the spark that makes them so unique. The page 4 of premium, sensorial products targeted Estée Lauder Companies is truly the perfect at consumers of all ages and skin types. home for RODIN olio lusso.” INTERVIEW In particular, RODIN is well-known for its Rodin, a former model and stylist, Ralf Kunert, Head of Global skin care oils – olio lusso translates to first created her line of face and body oil Sourcing, Dr. Hauschka luxury oil – and is currently sold in products by mixing essential oils in her page 5 high end boutiques and specialty retail apartment in Manhattan. After bringing her channels including Barneys, Colette products on set, she soon recognised their SUPPLIERS and Liberty. potential as they gained a solid following. Lignin shown to increase RODIN will be overseen by John During the acquisition, Lowenstein sunscreen efficacy Demsey, The Estée Lauder Companies’ Sandler LLP served as legal counsel to Estée page 7 Group President, responsible for the Lauder, while Rodin received financial advice Estée Lauder, MAC, Tom Ford, from Susan Newman, CPA, and legal counsel RETAIL Prescriptives, Bobbi Brown, Bumble and from Greenberg Traurig, LLP. Trio of L’Oréal brands bumble, Jo Malone, La Mer, Smashbox The news follows Lauder’s announcement to enter travel retail and Aramis & Designer Fragrance brands. on 15 October that it was set to acquire high page 8 Fabrizio Freda, President and Chief end fragrance and sensory lifestyle brand Executive Officer of The Estée Lauder Le Labo. Le Labo (The Lab) was founded in PRODUCT Companies, said: “RODIN olio lusso is the 2006 by fragrance industry veterans Fabrice Juice Generation takes a ultimate ‘insider’ beauty brand. With its Penot and Eddie Roschi. The brand has stores shot with Beauty Bombs luxurious product line and strong creative in New York, London, Paris, Los Angeles, San page 9 point of view, we believe it has the Francisco, Tokyo and Hong Kong, while it also potential to be a high-growth global skin retails in select prestige department stores SPOTLIGHT care brand that strategically enhances our and on the brand’s website. With a focus Cosmetics maker Oceanic eyes portfolio.” Speaking about the brand’s on personalisation, Le Labo sells fragrances, acquisitions in Poland founder, he added: “Linda is truly an body care and candles. The Le Labo deal page 12 authentic creative force and has an is set to close this month. incredible entrepreneurial spirit. I am Lucy Copp 1 • CosmeticNews Weekly No620/November 10 2014 • www.cosmeticsbusiness.com People International Flavors & Fragrances the new research division, Bioscience CosmeticNews Weekly (IFF) has announced that Andreas Fibig, Research, Research Triangle Park. Finally, HPCi Media Limited currently the company’s Chief Executive on 1 December, Dr Stefan Blank will Unit 1, Vogans Mill Wharf, 17 Mill Street, Officer, will take on the role of Chairman become President of the Intermediates London SE1 2BZ, UK +44 20 7193 1279 of the Board from 1 December. division, Ludwigshafen. The current head [email protected] Fibig will succeed Doug Tough, the of division, Sanjeev Gandhi, has been News Editor current IFF Chairman, who is due to retire appointed to the Board of Executive Lucy Copp from the board. Tough stepped down as Directors of BASF SE. Dr Guido Voit will +44 20 7193 9502 [email protected] CEO in September. Arthur Martinez, IFF’s succeed Blank as head of New Business. Lead Director, said: “I would like to thank Reporter Georgia Seago Doug for his many contributions to IFF Kintari, a subsidiary of Skinvisible and +44 20 7617 7114 and wish him all the best in the future. the makers of Youth Renewed skin care [email protected] Under his leadership, IFF achieved products, has announced that Dean Layout Sub-editor remarkable results, both strategically Aldridge is to take on the role of Master Ross Murdoch and financially, that led to excellent Distributor, spearheading distributor [email protected] returns for our shareholders.” expansion and development globally. Correspondents: He added: “IFF is fortunate to have Kintari President Terry Howlett said: Australia & New Zealand Sarah de Castro someone with Andreas’ experience and Brazil Sueli Ortega “We are very pleased to have Aldridge, a China Keith Crane leadership skills assume the role of world class marketer and sales leader, as France Patricia Mansfield-Devine Chairman. He brings a combination of our Master Distributor.” He added: “Dean Germany Annie Kruse India Chitra Gopalak passion, vision and dedication that will has proven his skills over the past 15 years Japan David Kilburn further enhance IFF’s ability to create in the network marketing industry. He is a Poland Jaroslaw Adamowski Russia Eugene Gerden long term shareholder value.” multiple award winner and has climbed to Spain Lola Gavarrón the highest level of every company he has UK Imogen Matthews US Kavita Daswani Labelling and packaging company Avery been associated with.” Travel Retail Kevin Rozario Dennison has announced the election of US Sales Manager Mitchell Butier as President and Chief BRAND AMBASSADORS Suzi Richardson Operating Officer, effective 1 November. +1 305 461 0861 Butier has been the company’s Senior American singer and actress Miley Cyrus [email protected] Vice President and Chief Financial Officer has been revealed as the new face of MAC Editorial Director since June 2010. He will continue to fulfil Cosmetics’ Viva Glam colour collection. Erika Hatva his role as CFO until a successor is named. The 21 year old announced the news +44 20 7193 9279 [email protected] Dean Scarborough, Chairman and via Twitter when she tweeted: “Going Chief Executive Officer, said: “Mitch has #VIVAGLAM with @MACcosmetics. Look Managing Director been a great thought partner in shaping for my lipstick in early 2015”. Colin Bailey-Wood +44 20 7193 6066 our business model and an architect of All proceeds from sales of Cyrus’ Viva [email protected] our value creation strategy.” He added: Glam products will go to the MAC Aids Chairman “He has worked in both of our core Fund, which supports those affected by Michael Harrington businesses and played an instrumental HIV and Aids. The charity celebrated its +44 20 7193 1092 role in developing their strategies for tenth anniversary earlier this year. [email protected] www.cosmeticsbusiness.com profitable growth.” Previous celebrity faces of the MAC Viva Glam campaign include Lady Gaga, Subscriptions Chemicals and plastics company BASF Nicki Minaj and Rihanna. +44 20 7193 1279 has announced a number of personnel [email protected] one year subscription: US$1,585/a1,250/£990 changes. Gabriel Tanbourgi, President Daisy Lowe has been announced as the a two year subscription: US$2,800/ 2,250/£1,780 of the Care Chemicals division, will retire face of Rodial’s debut make-up collection. on 31 December. Hans-W Reiners, who The 25 year old model will front the CosmeticNews Weekly is currently President of the Performance brand’s new range of colour products, CosmeticNews Weekly no620 10 November 2014 Chemicals division, will take over designed to sculpt and create definition. Articles published in this newsletter may only be reproduced with Tanbourgi’s role from 1 January, 2015. Lowe said: “I am very honoured to be the permission. The publisher accepts no responsibility for any statements made in signed contributions or in those reproduced In addition, Professor Christian ambassador of Rodial’s new make-up from any other source. ISSN 1953-0633 Fischer will take on the responsibility for range and to be working with such HPCi the Performance Chemicals division on 1 innovative, creative businesswomen such media January, while Dr Harald Lauke will take as Maria [Hatzistefanis]. This new range over from Fischer. Also on 1 January, Dr simplifies sculpting and highlighting, Peter Eckes will assume responsibility for creating natural beautiful contours.” 2 • CosmeticNews Weekly No620/November 10 2014 • www.cosmeticsbusiness.com Business Revlon reveals Q3 results Revlon has announced results for the third quarter, ended September 30, 2014. LVMH and Hermès clarify In order to compare Q3 2014 to Q3 2013 accurately – following Revlon's peace agreement terms acquisition of The Colomer Group (TCG) in October 2013 – the company n a final move to end the long standing dispute between LVMH and Hermès, presented its results using three the two luxury groups have entered into a settlement agreement to “restore measures: Reported, Adjusted and Ia climate of positive relations between them”. Pro Forma Adjusted. The terms of the settlement will see LVMH distribute to its shareholders all of Total company Pro Forma net sales its Hermès shares on the understanding that Christian Dior, which currently holds totalled US$473.9m, which includes net 40.9% of LVMH’s share capital through Financière Jean Goujon, will distribute the sales from the consumer and professional Hermès shares that it receives from LVMH to its own shareholders.