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  1. 1. Elsevier Business Intelligence‘‘The Rose Sheet’’ PUBLISHED$1,530 A Year WEEKLY ® Cosmet ics, Sk i n Ca r e a n d F rag ra nc es Vol. 32, No. 21 MAY 23, 2011 top stories P&G, Colgate Savor Strength Of Brands Against Private Label REGULATORY Eileen Francis D uring the recent Goldman Sachs Consumer Products Symposium in New Canadian NGO Reports “Widespread” York, personal-care competitors Procter & Gamble and Colgate-Palmolive Heavy Metal Presence In Cosmetics touted in separate presentations the growing strength of their branded prod- Environmental Defence Canada re- ucts over private label. ports that 100% of 49 cosmetic prod- “Consumers across all price tiers [are] continuing to have a strong preference for ucts tested from Canadian women’s branded products, which wasn’t necessarily the case in the depths of the reces- makeup bags contained “toxic” heavy sion,” said P&G CFO Jon Moeller during a May 12 presentation. metals, including lead, arsenic and He noted some of the fastest-moving items in the company’s portfolio are higher- cadmium….................................................5 price branded products such as Crest 3D White, Fusion ProGlide and Old Spice. AHPA, Dr. Bronners Champion Moeller added that while the company continues to produce products at various price points, at the end of its ongoing product and distribution expansion its port- Bill To Legalize U.S. Industrial Hemp folio will be “heavily weighed” to premium and super-premium prices. Production In a same-day presentation, CEO Ian Cook also discussed the strength of brands over New legislation from Rep. Ron Paul, private label. According to the exec, toothpaste customers are among the most loyal R.-Texas, would legalize the cultiva- to branded products. “Toothpastes, believe it or not, create a mouth feel, and they tion and processing of industrial hemp, have flavors in them that consumers form an attachment to,” said Cook. opening the door for U.S. farmers to As the company continues to develop new oral-care technologies that impart a compete in what could be a “very prof- stronger “physical benefit,” consumers, “will stay with the Colgate variant they itable” market and enabling U.S. cos- grew up on because they have become completely wedded to the flavor and the metics manufacturers to leverage the mouth feel,” he added. plant’s seed and oil without relying on foreign imports…......................................6 Private label, while strong in many personal-care categories even a year ago, never gained significant traction in oral care, according to the exec. “In the U.S. in the last 15 years, it has never gotten higher than half a share point from a market point of view,” Cook said. MARKETPLACE Though private label’s share of the toothpaste category expanded 5.9% in Green Takes “Backseat” food, drug and mass outlets (excluding Wal-Mart) for the 12-week period end- In Tough Economy, But It’s Not ing April 17, its growth lagged behind both P&G toothpaste brands (11.5%) and A Passing Fad – GfK Colgate-Palmolive (6.8%). In the struggling economy, consumers have Private-label brands accounted for less than 1% of the total toothpaste market grown reluctant to cough up dollars for en- for the period, with sales of $1.49 million, according to SymphonyIRI. The figure vironmentally friendly products, but that included sales in food, drug and mass outlets, excluding Wal-Mart. doesn’t mean “green” is a passing fad, says P&G led the toothpaste category for the period, with sales of $117.6 million and a GfK Roper Consulting .................................7 37% share of the category overall. Colgate-Palmolive is a close second, with sales of $109.6 million in the same out- lets. It commands 34.4% of the category. Table of Contents > 3 Moeller said that the oral-care category in the U.S. has been growing faster than Story Continues > Page 4 To sign up for FREE ONLINE ACCESS, go to:
  2. 2. Save the date! September 21-23, 2010 The Millennium Broadway Hotel, NYC Pharmaceutical Strategic alliances: Is this Big Pharma’s Last decade?Big Pharma is evolving to meet the challenges it faces. But are these changes coming throughfast enough, and are they sufficiently radical to ensure that industry’s stalwarts will be around,let alone thriving, into the next decade?With payers looming large, tomorrow’s winners will be those pharma that both understand,and can meet, the growing demands for evidently cost-effective drugs. This shift directlyimpacts business development, which is becoming the most important tool in pharma’sinnovation toolbox as external partnerships replace internal R&D efforts. But competition isfierce and creative deal structures that actually share both the risk and the reward, whileoft-talked about, remain mostly hot air.‘Specialist’ and ‘personalized’ products may have officially replaced primary care as far asticking the reimbursement box, but is that enough? While the current emphasis on emergingmarkets, branded generics, and high unmet medical need is a step in the right direction, theseefforts may be little more than band-aids. Perhaps stronger medicine is required — includingshrinking a company’s footprint since it’s much easier to demonstrate growth to investors off asmaller base. Or maybe large is ok — given sufficiently cost-effective operations and the rightcombination of activities.PSA will provide a discussion of the various, most promising proposed solutions to the industry’stoughest challenges. Call it a tool box for growth — and for those most in need, pharma’ssurvival kit. Register NOW and Save!
  3. 3. ‘‘The Rose Sheet’’ © 2011 F-D-C Reports, Inc., an Elsevier company. All rights reserved. Reproduction, photocopying, storage or transmission by magnetic or electronic means is strictly prohibited by law. For bulk reprints of Elsevier Business Intelligence articles contact: Ken May, Elsevier, at 914-332-1419. Authorization to photocopy items for internal use is granted by Elsevier Business Intelligence, when the fee of $25.00 per copy of each page is paid directly to Copyright Clearance Center, 222 Rosewood Dr., Danvers, MA 01923, 978-750-8400. The Transaction Reporting Service fee code is: 1530-1222/11 $0.00 + $25.00. Violation of copyright will result in legal action, including civil and/or criminal penalties, and suspension of service. t he n ews t his week BUSINESS MARKETPLACE• P&G, Colgate Savor Strength Of Brands • Green Takes “Backseat” In Tough Against Private Label. . . . . . . . . . . . . . . . . . . COVER Economy, But It’s Not A Passing Fad – GfK. . . . . . . 7• M&A Market Heating Up As Economy NEW PRODUCTS “Stagnates,” C&D’s Craigie Says. . . . . . . . . . . . . . . . 4 • Scerene Aims “Pure And Effective”• Not Your Mother’s Hair Care Grows On Puristics Brand At Mass Market . . . . . . . . . . . . . . . 11 Punchy Packaging, YouTube Activity. . . . . . . . . . . . 8• Sun Care In Brief. . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 COSMETIC INGREDIENTS • Archs ReGeniStem To Aging Skin Cells: REGULATORY “Behave More Like Young Cells”. . . . . . . . . . . . . . . 12• Canadian NGO Reports “Widespread” FEATURES Heavy Metal Presence In Cosmetics. . . . . . . . . . . . . 5 • In Brief. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13• AHPA, Dr. Bronners Champion Bill To Legalize U.S. Industrial Hemp Production. . . . . . . . 6 • Trademarks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 editor in chief reporters president commercial Elsevier Business Intelligence sales director Editorial office: chris morrison Lauren Nardella Gerard J. Stoia 5635 Fishers Lane, Suite 6000 240-221-4456 Ken May Rockville, MD 20852 vice president 914-332-1419 executive editor content phone 240-221-4500, fax 240-221-4400 consumer products Suzanne Blecher David Cassak Customer Care: 212-462-1923 corporate sales Christopher Walker 1-800-332-2181 or 1-908-547-2159 240-221-4470 vice president John Lucas fax 908-547-2165 corp. serv james defalco composition paul streeto Scott Breed managing editor marketing director ting yang Ryan Nelson vice president Mike Fergus business development commercial 240-221-4416 © 2010 by F-D-C Reports, Inc., an Elsevier company. Joshua Berlin Deanna Flanick All rights reserved. No part of this publication may be reproduced in any form or incorporated into any information retrieval system without the written permission of the copyright owner. “The Rose Sheet” (ISSN 1530-1222) is published weekly (except the week of Christmas) by Elsevier Business Intelligence, 685 Route 202/206, Bridgewater, NJ 08807. The annual subscription rate is (1) $1,530 or (2) $800 for additional copies mailed in the same envelope with $1,530 subscription. Periodicals Postage paid at Rockville, MD and at additional mailing offices. POSTMASTER: Send address changes to Elsevier Business Intelligence, Atten: “The Rose Sheet”, 685 Route 202/206, Bridgewater, NJ 08807. In Japan, Elsevier Science KK is the exclusive subscription representative for “The Rose Sheet.” E-mail: URL: Telephone: 03-3589-6370. Fax: 03-3589-6371.
  4. 4. ‘‘The Rose Sheet’’ Elsevier Business Intelligence Brands Against Private Label . . . The market researcher found that fewer consumers in the con- sumer packaged goods arena (38% now versus 46% in 2010) are continued from cover willing to give up their favorite brands in order to save money. the broader health and personal-care market on “both a unit In its January 2011 Economic Update, the firm noted that while and a dollar basis,” largely due to the launch of Crest 3D White. many CPG categories struggled in 2010, branded personal-care products had reclaimed market share by cutting prices, innovat- “It’s also a big reason why the Crest brand has extended its ing and employing value-oriented mechanisms like coupons and leadership in the U.S. oral-care market,” he told analysts. sales (“Firm Reports Conservative Shopping Trends, ‘Intensifying’ A market research report released by SymphonyIRI March 29 illus- CPG Competition,” “The Rose Sheet” April 11, 2011). trated the strength of Crest 3D White, which had sales of $154.1 According to that data, private-label dollar sales in personal million in 2010 and was No. 1 on the list of top-selling non-foods care had slipped 0.5% to 9.5% of total sales, and unit sales brands across food, drug and mass channels, excluding Wal-Mart. declined 0.6% to 11.4% of the total. P&G’s Scope Outlast/Crest Extra White Plus Scope Outlast also During its presentation, P&G said its couponing activities may made the list, with $46.8 million in sales, as did Johnson & be only slightly more robust than in recent years, but its cou- Johnson’s Listerine/REACH Total Care floss, with $39.8 million. pon promotions are more visible as the firm integrates its brand message in marketing. Shoppers Loosening Purse Strings Moeller maintains that couponing and marketing do not come A MarketPulse report released by SymphonyIRI March 30 sup- at the expense of innovation. “In general, we would rather ported P&G’s and Colgate’s reflections on the growing strength invest $1 in innovation and on equity building of our brands of branded products, observing that consumers are “holding the than we would on price promotion in any form, whether it’s purse strings just a bit less tightly in their day-to-day lives.” couponing or trade support or anything else.” M&A Market Heating Up As under a consent decree with FDA (“Under Consent Decree, J&J Delays Full Return Of Recalled OTCs Until 2012” “The Tan Economy “Stagnates,” C&D’s Sheet” April 25, 2011). Craigie Says Also potentially looking to sell brands or businesses are family- run entities, which may want to exit the market in fear of high Eileen Francis tax rates, Craigie suggested. C hurch & Dwight CEO Jim Craigie told analysts at the The exec remarked that C&D “loves buying family businesses” Goldman Sachs Consumer Products Symposium that and is currently “sitting on a lot of cash” that could go toward as the economy continues to “stagnate,” a crop of new a purchase, but only if the brand for sale is No. 1 or No. 2 in acquisition opportunities will arise in the consumer packaged its category. goods arena. “Our plants can handle it, our supply chain can handle it, our In the current climate, he said, companies are challenged to marketing and sales teams can handle it,” Craigie asserted. deliver “decent” earnings-per-share growth organically, so they’re looking to do so by selling brands or picking up new ones. He held OxiClean detergents as an example of the type of fam- ily-business acquisition that has paid off for the company. “You’ll see some stuff [on sale] from big pharma,” Craigie said, noting many firms in this economy are finding they can focus C&D’s most recent acquisitions included last year’s purchase effectively on either pharma or CPG businesses, but not both. of the leading U.S. nasal spray brand Simply Saline (“Simply Saline Acquisition Globalizes C&D’s Nasal Hygiene Reach,” “The “Big pharma has learned that CPG is a different type of busi- Tan Sheet” May 13, 2010) ness than theirs and you shouldn’t put a big pharma guy running a CPG business, [just as you] shouldn’t put a CPG guy running a big pharma business,” Craigie said during his May 12 presentation. Related Reading In a reference to Johnson & Johnson, he added: “I think our “Under Consent Decree, J&J Delays Full Return Of Recalled OTCs Until 2012” “The Tan Sheet” April 25, 2011 neighbor down in New Jersey has learned that the very hard way.” “Simply Saline Acquisition Globalizes C&D’s Nasal Hygiene Reach,” “The Since 2009, J&J has undergone a large-scale recall of over- Tan Sheet” May 13, 2010 the-counter drugs under its McNeil division to address qual- Access these articles at our online store ity control and compliance issues. The firm is operating now 4 | May 23, 2011 © 2011 F-D-C Reports, Inc., an Elsevier company. All rights reserved.
  5. 5. ‘‘The Rose Sheet’’Canadian NGO Reports nically and are also well below the levels of exposure that are considered to be safe,” the trade association says.“Widespread” Heavy Metal CCTFA underscores that exposure to trace metals is unavoid-Presence In Cosmetics able as they occur naturally in plants, soil, animals, food, drink- ing water and air.Lauren Nardella l.nardella@elsevier.comE The association also points out that only one of the 49 products nvironmental Defence Canada reports that 100% of 49 tested by Environmental Defence was found to contain trace cosmetic products tested from Canadian women’s makeup contaminants in excess of Health Canada’s proposed limits. bags contained “toxic” heavy metals, including lead, arse-nic and cadmium. Benefit’s Benetint lipgloss recorded the highest heavy metal levels, with 110 ppm of lead and 70 ppm of arsenic.The findings signal a need for Canadian regulations to be im-proved, the group says. CCTFA says it “understand[s] that this one manufacturer with results reported above the guidelines for one product has indi-Environmental Defence recognizes that the metals are impuri- cated by way of a statement that it will be reviewing its ownties not intentionally added to cosmetics. However, it takes is- test results and will ensure compliancesue with current regulations that do not should there, in fact, be an issue.”require such trace contaminants to belisted on product labeling. Environmental Defence worked with The Canadian Cosmetic, independent laboratory SGS Canada”Canadians deserve to know what is in Toiletry and Fragrance to test the 49 products, finding thattheir cosmetics. Given the choice, we 100% of the products contained nickel,think most consumers would not put Association points out 96% contained lead and 90% con-arsenic or lead on their lips and faces,” that only one of the tained beryllium.says Rick Smith, executive director of 49 products tested byEnvironmental Defence, in a May 15 The 49 products included five founda- Environmental Defence tions, four concealers, four powders,release heralding the group’s report. was found to contain five blushes or bronzers, seven mas-The organization also suggests that trace contaminants caras, two eyeliners, 14 eye shadowsCanada’s health authority could tighten and eight lipsticks or glosses.its restrictions on impurities. in excess of Health Canada’s proposed limits. On average, products containedHealth Canada’s Draft Guidance on traces of four out of the eight metals.Heavy Metal Impurities in Cosmetics,released in January 2009, notes that Environmental Defence points out that“heavy metal impurities in cosmetic products are unavoidable none of the products list the heavy metals on the ingredient labels.due to the ubiquitous nature of these elements, but should be The group urges Health Canada to officially adopt its guide-removed wherever technically feasible.” lines for heavy metals in cosmetics, to institute a “European-The guidance sets limits of 10 parts per million for lead, 3 ppm style” ban on harmful substances and to mandate disclosure offor arsenic, 3 ppm for cadmium, 3 ppm for mercury and 5 ppm all ingredients, even those added unintentionally.for antimony.While overall the tested products did not surpass those limits, Report Piques CSC’s InterestSmith says “Canada should improve the guidelines on impuri- The Campaign for Safe Cosmetics asserts in a May 16 pressties in cosmetics so they better reflect what is truly feasible.” release that Canada’s test results “demonstrate that the prob-Environmental Defence points to Health Canada’s recom- lem with impurities in cosmetics is likely much greater in themended lead limit of 10 ppm, calling it “considerably high” in United States than previously reported.”light of FDA’s recent tests in which lead levels in 20 lipsticks The findings demonstrate the need for cosmetics legislation inaveraged 1.07 ppm (“FDA Releases New Lipstick Lead Data, the U.S., the activist organization adds.Putting Names To Numbers,” “The Rose Sheet” Nov. 9, 2009). “Consumers in the United States use the same products andThe organization also is critical of the guidance’s limited scope, face similar weakness in cosmetics safety standards,” statesmaintaining that it could have set limits for other heavy metals Campaign for Safe Cosmetics Director Lisa Archer.including beryllium, nickel, selenium and thallium, given the highlevels of those contaminants identified in its cosmetics testing. “The fact that there are so many hidden impurities in cosmet- ics shows how urgently we need laws that protect consumersIn its May 16 statement, the Canadian Cosmetic, Toiletry and by ensuring products are safe,” she says.Fragrance Association upholds Health Canada’s guidelinesas adequate to ensure consumer safety. The guidelines “are The Campaign acknowledges that small amounts of exposurebased upon what levels can be expected to be achieved tech- to heavy metals are not likely to cause harm. However, the sub-Unauthorized photocopying is prohibited by law. May 23, 2011 | 5
  6. 6. ‘‘The Rose Sheet’’ Elsevier Business Intelligence stances can build up over time and increase health risks, it says. “But the only way to protect all consumers is to pass laws that ensure the products we use on our bodies are safe,” she says. The organization cites the Centers for Disease Control and Pre- vention’s position that lead exposure “is not safe at any level” The International Cooperation on Cosmetics Regulation – and notes that the Environmental Protection Agency has linked made up of regulators from Canada, the U.S., the European arsenic exposure to cancer and gastrointestinal issues. Union and Japan – has listed heavy metal levels as one of its priorities for regulatory alignment (“ICCR To Open Por- Archer notes that some companies are avoiding heavy metal tion Of Annual Meeting To ‘Interested Parties,’ NGOs,” “The contamination by moving toward plant-based colorants or ask- Rose Sheet” May 2, 2011). ing suppliers to screen for contaminants. AHPA, Dr. Bronner’s grow but whose products we are allowed to eat, wear or apply to our skin, and that plant is hemp,” said Michael McGuffin, Champion Bill To Legalize U.S. president of AHPA. Industrial Hemp Production The Hemp Industries Association estimates that U.S. sales of Suzanne Blecher hemp products, including foods, soaps and cosmetics, totalN around $360 million annually. ew legislation from Rep. Ron Paul, R.-Texas, would legal- ize the cultivation and processing of industrial hemp, “Indeed,” says Rep. Paul, “the founders of our nation, some of opening the door for U.S. farmers to compete in what whom grew hemp, would surely find that federal restrictions on could be a “very profitable” market and enabling U.S. cosmet- farmers growing a safe and profitable crop on their own land ics manufacturers to leverage the plant’s seed and oil without are inconsistent with the constitutional guarantee of a limited, relying on foreign imports. restrained federal government.” “The United States is the only industrialized nation that prohib- Paul has introduced similar legislation in each of the last three its industrial hemp cultivation,” says Paul in his May 11 statement, sessions of Congress, attracting more cosponsors with each noting that hemp is grown “as an established agricultural com- new iteration, but no companion bill has yet been introduced in modity” in roughly 30 nations in Europe, Asia and the Americas. the Senate, AHPA notes. If passed, the Industrial Hemp Farming Act of 2011 (H.R. 1831), which has 21 co-sponsors, would amend the federal Controlled Substances Dr. Bronner’s Urges Fans To “Vote Hemp” Act by removing industrial hemp from its definition of marijuana. Dr. Bronner’s Magic Soaps, an advocate of the commercial- Consumption of industrial hemp does not trigger the same psy- ization of industrial hemp, says the plant’s oil makes its soaps choactive effects as marijuana, though they are both derived milder and less drying due to its high proportion of poly-unsat- from the same plant (Cannabis sativa L.), because the former urated fatty acids (“Dr. Bronner’s Shifts Advocacy Focus From contains significantly lower levels of tetrahydrocannabinol (THC). Organic to Fair Trade,” “The Rose Sheet” Jan. 24, 2011). Paul’s bill characterizes industrial hemp as having a THC con- The company holds up industrial hemp production as an opera- centration of “not more than 0.3 percent on a dry weight basis.” tion in line with industry sustainability goals. “Hemp’s excel- lent fiber can replace virgin timber pulp in paper, glass fibers in Nine U.S. states have legalized industrial hemp cultivation and construction and automotive composites, and pesticide-inten- research, but federal law still inhibits large-scale production. H.R. sive cotton in textiles,” among other benefits. The U.S. govern- 1831 “will relieve this unique restriction on American farmers and ment’s minority stance on domestic cultivation is “due primar- allow them to grow industrial hemp in accord with state law,” Paul ily to the ‘reefer madness’ and confusion regarding hemp’s says, adding that “federal law concedes the safety of industrial psychoactive cousin, ‘marijuana,’” Dr. Bronner’s says. hemp by allowing it to be legally imported for use as food.” The veteran organic brand took to Facebook May 4 to get fans The American Herbal Products Association issued a release to “Vote Hemp” and celebrate Hemp History Week (May 2-8). May 11 expressing its support for the bill. The firm also posted a link to a petition – “Let U.S. Farmers The trade group notes that most companies marketing hemp prod- Grow Hemp” – which lists Ford Motors, Patagonia, Nature’s Path ucts currently import materials from Canada or China. Giving U.S. Foods, Nutiva and Manitoba Harvest as companies that, like Dr. manufacturers the option of buying ingredients domestically could Bronner’s, use imported hemp in their products currently. The “provide an important economic stimulus and source of revenue petition has 1,483 signatures; its goal is to garner 15,000. for American farmers, including small family farms,” AHPA says. Earthly Body, the “preeminent [maker] of hemp-based body Industrial hemp is used in the manufacture of clothing, paper care” uses hemp seed oil in its products because it has the and carpet, in addition to cosmetics and food items. “highest concentration of essential fatty acids of any essen- tial oil, as well as the perfect balance of omega-3 and omega-6 “I am aware of only one plant that Americans are forbidden to EFAs” (“Earthly Body,” “The Rose Sheet” April 26, 2010). 6 | May 23, 2011 © 2011 F-D-C Reports, Inc., an Elsevier company. All rights reserved.
  7. 7. ‘‘The Rose Sheet’’Green Takes “Backseat” In “In the market people put out these products and they’re just giving people a bad experience.”Tough Economy, But It’s Not “I would say that 70% of my marketing dollars is just re-con-A Passing Fad – GfK vincing people to try organic,” Onysko added.Suzanne Blecher In the eyes of Mirran Raphaely, CEO of Dr. Hauschka Skin Care,I consumers should be focused on teasing out companies’ green n the struggling economy, consumers have grown reluctant motives. “Why does the company exist? Does it exist for itself? to cough up dollars for environmentally friendly products, For its shareholders? For individuals? If that can be identified, but that doesn’t mean “green” is a passing fad, says GfK consumers really respond to that. It resonates.”Roper Consulting. For consumers, trusting a firm’s motives often translates to“As the economy weakened in the U.S., the environmental move- trusting its brands, according to Sheehan. “American consum-ment kind of took a backseat,” said Kathy Sheehan, GfK general ers tend to take a top-down approach rather than a bottom-upmanager, who presented findings from the firm’s “Green Gauge” approach as far as trust and credibility.”study at the Sustainable Cosmetics Summit in New York on May 13.Interpreting the survey results for attendees, she said: “The envi- In Beauty, Healthy & Green Go Hand In Handronment is important, but not at the risk of economic security.” “In personal care, health and the environment are very muchWhen polled for the Green Gauge study, which measures con- at parity,” Sheehan said. That is, consumers purchasing greensumer attitudes toward green products, 27% of respondents said products are often doing so for expected health benefits, sheit is worth paying more for environmentally said. In the appliance and automotive cat-friendly products in personal care, versus egories, on the other hand, the driver for29% in 2007. In the 2010 Green buying green is overall cost savings.“2007 and 2008 were kind of the high Gauge study, 33% The general takeaway across categories ispoint in consumer sentiment about envi- of respondents that consumers are less and less likely to payronmentally friendly products,” said Shee- a premium for green products. “We’ve seen believed thathan. “We saw rising interest and rising lev- erosion in the number of Americans whoels of purchasing, and then after 2008 and environmentally agree that different environmental productsto 2010, this has really started to slip.” friendly products are worth paying [extra] for,” said Sheehan.While global warming was a hot topic in do not work as well At the same time, green products are “no lon-2006 with the release of Al Gore’s “An as other products, ger a niche marketplace,” Sheehan observed,Inconvenient Truth,” the public’s level of as opposed to 24% noting that in 1990 roughly 30% of Americansconcern has declined since, according to reported buying an environmentally friendly two years ago.Sheehan. product, versus about 60% today. “It’s hadCompared with past years, more Ameri- tremendous growth and is really starting tocans agreed this year with the statement reach the mainstream arena,” she said.that global climate change is overblown and the media is mak- Regardless of their willingness to pay, consumers also are noting too much of it. likely to expect less from companies in terms of sustainable, eco-friendly operations. According to GfK, approximately oneConsumers Turned Off By Bad Experiences out of three Americans believes companies are doing a better job of protecting the environment than in years past.Sheehan suggested that efficacy has emerged as an issue inthe green products realm – the “sense that products have not “There isn’t a CEO out there who isn’t going to take sustainabil-lived up to their promise.” ity into account. It’s a buzzword, but in the future it’s going to be integrated into everything that everybody does,” said Sheehan.“There have been quality issues, efficacy issues and thingsdon’t work as well as other alternatives,” she said. Sheehan noted that consumers increasingly are looking to product labels to gain insight into brands and their operations.In the 2010 Green Gauge study, 33% of respondents believed In GfK’s survey, 64% of respondents said they think the gov-that environmentally friendly products do not work as well as ernment should be more involved in regulating, and set higherother products, as opposed to 24% two years ago. standards for, product labeling.Joshua Onysko, CEO of Pangea Organics, holds that in the per- “It’s a source of confusion out there – what are the differ-sonal-care market specifically, non-authentic brands in many ent symbols? What do they mean? How does this impact mecases have made a negative impression on consumers, causing and my personal health?” said Sheehan. “Things that canthem to shy away from purchasing organic again in the future. cut through the clutter and can simplify this continue to be“In a lot of these brands, the products don’t work,” he said. very critical.”Unauthorized photocopying is prohibited by law. May 23, 2011 | 7
  8. 8. ‘‘The Rose Sheet’’ Elsevier Business Intelligence Not Your Mother’s Hair Care I really am intrigued by [is the packaging]…because I really like graphic design and all that kind of funky graphic work, and I Grows On Punchy Packaging, really like the design on [NYM’s] products.” YouTube Activity Both teens take to the fragrance in She’s A Tease Volumizing Hairspray. “I’ve never had a hairspray that smells so good,” Ryan Nelson says Glamourista16. Y ouTube and other online social media helped propel Not The economical value of the products is not lost on the reviewers Your Mother’s hair care in its first year, from college book- either. “They’re professional products at a really, really nice, afford- stores and about 300 Walmart locations to more than 1,500 able price,” remarks Aleexandraaxo. Walmart doors and all ULTA Beauty destinations nationwide. Overall, high marks are given for performance, but there are According to a company rep, consumers have responded to the also some minor criticisms. line’s “playful product names, eye-catching packaging and salon formulas at mass market pricing.” All nine teen-targeted NYM products retail for around $6. In a May 17 conversation with “The Rose Sheet,” Brand Manager Michele Sherbet noted “it’s a very colorful line – pinks and blues and purples and greens.” Another fetching feature is the hair graphic (in the same vibrant color) that garnishes the tops of NYM bottles, seeming to hang down from beneath the bottle caps. In addition to the packaging aesthet- ics, “the names are catchy. I think the combination of [factors] really grabs the consumer, makes them smile when they see it on the shelf,” said Sherbet. Not Your Mother’s hair-care line NYM products include All Eyes On Me Shape & Shine Hairspray, Kinky Moves Curl Defining Hair Cream, Smooth Moves Frizz Control Hair Cream, Rise Regarding She’s A Tease Volumizing Hairspray, Aleexan- & Shine Silky Smooth Shine Mist. Clean Freak Refreshing Dry draaxo says: “It makes my hair really easy to tease, and it Shampoo and Beat The Heat Thermal Styling Shield Spray. just gives it some volume.” At the same time, “it actually does make your hair a little bit crunchy – but I find that with most hairsprays.” YouTube Reviewers Drive Interest Moving to Beach Babe Texturizing Sea Salt Spray, the reviewer According to Sherbet, “one of the things that has really says: “This is the one I was really excited to get, and I’m not pushed [NYM] quickly is YouTube.” Product reviews from disappointed with it, but I’m not absolutely thrilled with it.” NYM fans and resulting word of mouth have generated inter- est in the brand, she suggested. She acknowledges that with her “super, super, super-straight” hair, NYM has its work cut out for it. Beach Babe did manage to “They found our products [and] fell in love with our products,” give her “some nice little baby waves,” she notes, and she sug- she said. “I couldn’t tell you how many videos are out there… gests a technique that might award greater results for straight- but these girls just rave about the products.” haired individuals. “If you have a little movement to your hair, Some, including Glamourista16 and Aleexandraaxo, whose this might work really, really well on you,” she says. reviews have garnered 16,272 and 10,295 views respectively, Glamourista16 does not offer recommendations based on hair requested sample products from the company so they could type, but does extend a warning to viewers regarding optimal review them online. use of NYM’s Girl Powder Volumizing Hair Powder, which she Their reviews seem genuine, overwhelmingly positive but not initially assumed was similar to dry shampoo powder. without some minor criticisms and warnings to their peers. “With dry shampoo, you can pretty much put a bunch on and Both compliment the brand’s packaging. Glamourista16 calls it your hair will be fine,” the teen says. “With this one, my hair felt “absolutely adorable.” Aleexandraaxo says: “One of the things disgusting when I put so much in. ... My hair honestly felt like 8 | May 23, 2011 © 2011 F-D-C Reports, Inc., an Elsevier company. All rights reserved.
  9. 9. ‘‘The Rose Sheet’’glue at the top of my scalp right here. It felt so stiff, like I [used] tions – as a competitor, as well as Got2Be, though it caters toan entire bottle of hairspray. Do not make the same mistake I guys and girls and NYM is “pretty much a girls’ line.”did. You just need a tiny bit.” After a dynamic 2010, NYM looks to expand further in 2011While such messages may not be what brands have in mind (“Not Your Mother’s Expands,” “The Rose Sheet” Jan. 31,when planning their marketing, teens no doubt appreciate 2011, In Brief). In addition to Walmart and ULTA, NYM prod-the candid observations and practical advice frequently ucts currently are available at select grocery stores andoffered by their YouTube peers. Comments on Glamouris- online at’s and Aleexandraaxo’s video reviews are by and large “More and more retailers are contacting us. They see [NYM]favorable, with definite interest expressed in giving the as a good-selling line that they need on their shelves. A lot ofproducts a try. retailers have talked about needing something new and fresh – and that’s what we are, new and fresh,” asserted Sherbet.Further Expansion Targeted In 2011 She said the brand is developing new products – “shampoos,DeMert Brands, which markets NYM, also has targeted young conditioners, products for shorter hair, leave-in conditioners,people through Facebook, Twitter and participation in events things of that nature” – and has held discussions about pos-such as the Teen Choice Awards. NYM will sponsor the MTV sibly entering skin care.Movie Awards in June, according to Sherbet. Expansion outside of the U.S. is a priority, and NYM is exploringBut it isn’t just teens that are buying NYM, she said. “That is its distribution options. “We do get a lot of feedback from inter-probably the majority of our customers, but we’re finding that national consumers looking for our product,” said Sherbet.with quality products, there’s an older market as well.” Con-sumers in their 30s are using NYM, said Sherbet, adding: “Idon’t want to use my mother’s hair care.” Related ReadingAs for the brand’s competition, Sherbet maintained that NYM “Not Your Mother’s Expands,” “The Rose Sheet” Jan. 31, 2011, In Briefis “pretty unique.” She cited Unilever’s TIGI unit – which mar- Access these articles at our online store www.ElsevierBI.comkets Bed Head and Rockaholic, among other hair-care collec- Special Report fro m What you must know about the clash between r WorLd: FDA & CMS authority Living in a BipoLa of impLications ration Get it all in The RPM Report’s exclusive new report o fda/cms coLLaB an important intera ction between FDA and CMS on drug to understand. And regulatory thanks LIVING IN A BIPOLAR WORLD: impo rtant new real- manufacturers need to understand an issues, one that all ction will only increa se. IMPLICATIONS OF Manufacturers need commercializatio n: they can no care reform, intera driving opment and - to health about a hidden hand ity for drug devel & Drug Administra But, despite plenty of speculation facing one regulator—the Food the US. is that industry is not longer think of just ercial success in inter-agency coord ination, the reality d, the keys to comm atory attack. Instea tion—as holding al government and unified regul ding role of the feder a carefully coordinated chaot ic and potentially Thanks to the expan the Centers for Medicare & thing much more but remain try is facing some as a payor for pharm aceuticals, min- indus indeed interacting, FDA/CMS COLLABORATION bigger role in deter tling: FDA and CMS are ent. is playing a much mes- unset stubbornly—independ Medicaid Services armaceuticals. That mentally—and even ions or failure of bioph of the funda cations of their decis ing the success whose celebration aware of the impli clear to Dendreon, Both agencies are willing to defer to the other sage is certainly r vaccine Provenge on, but neither is ines. of the prostate cance on the other’s missi priate use of medic long- delayed approval initiate a natio nal coverage l issues that define the appro the CMS’ decision to ng, on critica c health policy, but was cut short by that process is pendi lly coordinated publi issues through product. And, while This is not a carefu ng the same safety analysis for the e it simply it does not believ of two agencies tackli loop in place, but it is hap- very clear that it. product CMS is making se FDA approved There is a feedback Prove nge just becau CMS different lenses. need s to pay for is nothing new. ONLY from The RPM Report, the industry’s most trusted source y sepa- Report know that endent hazar d at best. approach each agenc Readers of The RPM and will exert indep Companies have no choice but to , but also before that it can ology is ts between them has made it clear FDA approved techn there are no secre FDA when—or if—an rately, aware that asive argument with ask Amgen and ntee that a persu judgment about appropriate for Johnson & Johns the Medicare on, who spent most population. Just of 2007 working through that r anemia therapies. there is no guara will carry any weigh t with CMS, or vice all be changing, versa thanks to a propo . sal for the agen- el reviews for actionable analysis of regulatory and commercialization realities for their blockbuste ies That may cies to conduct parall CMS coverage issues that the two agenc ific advice. r drug coverage and offer joint scient It isn’t just in cance new; indee d, inter act. Ther e ples derived from the are exam - Med- the newer Inside The idea isn’t FDA and CMS began on a parallel revie working w process Includes: icaid program and ing FDA: ago. But the • Second-Guess Medi care Part D drug bene fit outpa tient wher e CMS , CMS’ Expanding Re gulatory Role ......... .............2 almost a decade implications are significant. As • Strategic analysis of communications • Factors that companies must account MS: Why the sponsors weigh whether and • Dendreon vs. C eithe r by neces its own volition, sity or from makes quasi- Provenge Coverage Controversy Is Big uct .......................... ger .............8 how to engage in the parallel oth in the between the two agencies for in dealing with both agencies regulatory judgm ents about Than Just One Prod review process—b icaid Rebate on of a policy biopharmaceutic profo und conse als that have quen ces for • Defining Line E Change Gives CMS xtensions: Med Power to take a Bite ................ 14 potential creati and in use of any pathway that al to un- • In-depth looks at Provenge, Avastin • The pitfalls of pricing when times CMS Management .......... emerges—it is critic spon sors. Some hurts a brand—like when it didn’t Out of Lifecycle • The Avastin D ilemma: Two Person alities and ..... 18 derstand the altern too late to keep CMS atives. It is out of the and the EPO debate agencies disagree decid ed that Lexapro on C ost Effectiveness The question Two Points of View regulatory process. have to be cover formularies ed on Part D if the older Celex a • Acce ss and Evidence: Im plications Debate (Part 2) ................. 24 seems to be, how best to deal y in the • Insider interviews that highlight • 47 pages it helps, as of the EPO Safety with the other agenc was. Sometimes when it offered libera l readings • Living in a Bipo lar World: Implicat ions .................. 34 years to come? major players’ intentions • And much more of the Medicaid statut e to allow Debate (Part 1) wastin g thera- of the EPO Safety Mich ael McCaughan, Editor coverage of AIDS he Eye: Lucentis and t Regulation, pies, or, more recen tly, Part D • An Eye for an ............... 43 The RPM Report: al Value System coverage of Niasp an. New Pharmaceutic Policy, Market Acces s Get it NOW at REPO RT ... 48 All of which make s abun- FROM THE RPM is already • SPECIAL OFFER dantly clear that there photocopying is prohibited by law. May 23, 2011 | 9
  10. 10. ‘‘The Rose Sheet’’ Elsevier Business Intelligence S un C are I n B rief La Roche-Posay Expands SOS Campaign Hain Celestial Touts “Non-Toxic” Formulas This year, L’Oreal brand’s SOS (Save Our Skin) campaign Noting that “the sun is life-giving to the world’s ecosystems, includes a new Facebook page and an iPhone application, but without proper precautions it can be deadly to the skin,” “My UV Check,” which “will provide an index for the day’s Hain Celestial urges consumers to protect themselves this UVA and UVB exposure in the user’s location, educate and summer with “safe, natural sunscreens formulated without alert users of the dangers of UVA and UVB exposure, and risky chemicals.” The Melville, N.Y. firm recommends items much more,” according to April 28 release. La Roche-Posay from its JASON and Alba Botanical brands, which deliver also will distribute more than 8,000 kits to dermatologists effective protection without the use of “risky chemicals to help educate consumers about the importance of regular found in conventional sunscreens, such as avobenzone, skin checks, as well as offer skin checks at two New York oxybenzone or paraben preservatives.” According to firm’s Yankees games. Furthermore, the brand will make a grant May 16 release, six of its Alba formulas have earned the of $750,000 to the Women’s Dermatologic Society over Skin Cancer Foundation’s Seal of Recommendation, “widely a three-year period to support the group’s Play Safe in recognized as a true testament to efficacy.” Emphasizing the Sun initiative, aimed at raising sun-safety awareness the importance of daily sunscreen application and regular through community service outreach events across 50 U.S. full-body screens, Hain President and CEO Irwin D. Simon cities. Attendees of sponsored events, including women’s states: “As someone who survived skin cancer more than 15 golf and tennis matches – will receive Anthelios sunscreen years ago, I learned the hard way.” samples and educational materials, courtesy of La Roche- Posay. The company says last year, when SOS debuted, it MDSolarSciences drew “hundreds” for skin checks, and in a third of those Norwalk, Conn.-based dermatologist brand says its newest evaluations “suspicious lesions were found that resulted in sun-protection product, Mineral Screen Tinted Gel 30+, dermatological referrals for further investigation.” “is formulated to very high UVA and UVB protection standards.” Suited for teens with acne or adults with acne- prone skin, the 1.23-oz. product sells online for $24. The Banana Boat Offering “Sun Certification” gel, like MDSolarSciences’ other mineral-based formulas, Energizer Holdings brand recognizes Skin Cancer contains zinc oxide and titanium dioxide. The brand also Prevention month with invitation to consumers to get markets Quick Dry Body Spray SPF 40 ($21), “ideal for all- “sun-certified” by taking a short quiz on the Banana Boat over body use,” and Ultra Sport Stick SPF 40 ($16), “ideal Facebook page. Upon completion of the quiz, consumers for the face, lips, ears and around the eyes,” as well as earn a “badge” to display on their own Facebook wall, and for protective apparel for men, women and children, including every individual who participates Banana Boat will donate UPF 50+ hats that range in price from $18 to $35. A line of $1 to support the Skin Cancer Foundation’s awareness work, UV 400 screened protective eyewear is under development, for a total donation of up to $101,000, according to May 11 according to MDSS’s recent release. Touting itself as “the release. Brand’s “sun experts” – dermatologist Julie K. first dermatologist-driven company dedicated to primary Karen, magazine editor and family lifestyle expert Amy E. skin cancer protection and prevention,” MDSS collaborates Goodman and Olympic gold-medal-winning captain of the with the Melanoma Research Foundation and other like- U.S. women’s soccer team Christie Rampone – will offer minded organizations and packages its sunscreens with a advice and converse live online as part of Banana Boat’s SolALERT card, which serves as a personal UV detection Sun 101 education campaign “to give Americans the basic device. Products are available through physicians’ offices information they need to enjoy the sun without worry.” and E X P A N D E D W E E K L Y U P D A T E S STRATEGY, REGULATORY, INNOVATION & INVESTMENT COVERAGE FROM THE INDUSTRY’S TOP PUBLICATIONS Highlights from The Gray Sheet, Medtech Insight, IN VIVO, Start-Up, The Silver Sheet & Strategic Transactions 10 | May 23, 2011 © 2011 F-D-C Reports, Inc., an Elsevier company. All rights reserved.
  11. 11. ‘‘The Rose Sheet’’Scerene Aims “Pure And Effective” The firm also orchestrated a public relations effort aimed at heightening awareness of “potentially harmful ingredients,”Puristics Brand At Mass Market releasing survey results indicating women in Charlotte and Den-Lauren Nardella ver “are exposed to over 20 potentially harmful chemical ingredi-P ents or irritants as a result of their daily facial skin-care regimens.” eapack, N.J.-based Scerene Healthcare Inc. looks to take on established skin-care players Procter & Gamble and L’Oreal The chemicals cited were based on “a couple of leading prod- with Puristics, a brand the firm is pricing to compete at mass ucts” used by many of the women surveyed, Arnett said.retailers and positioning as both “pure and effective.” From the survey, “what we found interesting is that consum-Puristics rolled out to test markets Charlotte, N.C., and Denver ers in general are becoming increasingly aware of what they’rein March, and Milwaukee and Madison, Wis., in April and will be putting into their bodies and they think about that every timereleased nationally in 2012, according to Scerene co-founder they go to the store, but they’re significantly less aware of whatand COO M’lou Arnett. they put on their bodies,” she said.The brand’s lineup includes Puristics Totally Ageless anti- The firm hopes the survey will help women to think more aboutaging skin care, Puristics Pure Protection feminine hygiene their personal-care product choices.and Puristics Baby, comprising diaper rash cream, diapering Early sales data from test markets “looks very positive,”cream and lotion. Arnett said, noting that consumers“A lot of consumers in the past have are “being motivated by our message,thought, ‘I can choose either natu- finding us in store and respondingral or I can choose effective,’” Arnett quite favorably.”explained in an interview. “And we’re Efficacy is the other big component insaying you can choose pure plus effec- Puristics’ positioning.tive in one product – you don’t have tomake that compromise.” Arnett cited a study the firm con- ducted in which 100% of womenScerene developed the Totally Ageless tested experienced a measurableline “from the ground up,” as opposed reduction in fine lines and wrinklesto modifying existing products. “We after three weeks of using Puristicsstarted ingredient by ingredient [and] Totally Ageless Advanced Skin Reju-built them to all be pure and effective,” venating Lotion, “which is really athe exec said. wonderful claim for a product thatThe firm looked to the Cosmetic Ingre- has no potentially harmful chemicalsdient Review program, the American [and] has been formulated and testedAcademy of Dermatology and the to be similar from an aesthetic profileEnvironmental Working Group’s Skin Puristics Totally Ageless ... to what a consumer might alreadyDeep database to determine which be buying.”“potentially harmful” ingredients The exec said Scerene management’swould not be used in Puristics, weeding out parabens, phthal- background helped in developing Puristics.ates and sulfates. Arnett and Scerene co-founder and CEO Bob Casale bothAs for ingredients that are in the line, honeysuckle extract worked on the award-winning Mr. Mucus campaign for theserves as a preservative in the brand’s skin-care products, Mucinex expectorant at Adams Respiratory Therapeutics,while a yeast peptide blend is the active ingredient in the anti- where Casale was chief operating officer and Arnett was senioraging line, Arnett said. VP of marketing and advertising. They played key roles in help-Totally Ageless products include Night Recovery Cream, SPF ing Adams grow from a $60 million company to a nearly $50015 Daily Anti-Aging Lotion, Advanced Skin Rejuvenating Lotion, million company before Reckitt Benckiser bought it in 2008Revitalizing Eye Cream and Intensive Eye Treatment. The prod- (“Scerene Healthcare Plans 2010 Entry With Puristics Lines,”ucts are available on a regional basis now, but they also are on “The Rose Sheet” Nov. 16, 2009).sale at for $16.99 each. “We come out of big brand personal-care and OTC products,Scerene “has every expectation that we’ll be well-placed on so we applied all the same rigors of everything that we’ve everthe shelves of all of the big food and mass merchants,” accord- learned and done to what we’re doing now,” Arnett to Arnett. Puristics items retail at an “approachable” price Additionally, the experience the duo gained from OTC marketpoint in the neighborhood of competing products, she said. analysis and the connections they made when working previ-Scerene is supporting the launch in test markets with TV, print ously with retailers have been helpful in bringing Puristics toand digital advertising. market, he said.Unauthorized photocopying is prohibited by law. May 23, 2011 | 11