Allegro plans combined showroom/design space
EL SEGUNDO, Calif. Allegro Manufacturing, a cosmetic bag designer and manufacturer, is opening in October a new showroom and design space based here.
According to Allegro senior vice president PJ Brice, the new Allegro Creative space will be a one-stop-shop for retailers. The fully staffed sample room will be capable of producing same-day, handmade samples. The space will also house a fabric library with materials sourced from around the world. The company’s marketing, sales and design teams will relocate to the space.
“This expansion is the next step toward positioning Allegro as a true design house and will serve as the showcase for our International Trend Service,” stated Brice. “The Allegro design and product development team attends fashion and fabric shows throughout the world’s trend capitals—from New York to Paris and Milan—and constantly monitor fabrics, colors and shapes to ensure up-to-the-minute information for our twice yearly trend report.”
In designing the 27,000-square-foot space, the company selected eco-conscious bamboo to floor the showrooms.
Brice noted that the expansion was made possible by Allegro’s acquisition by personal care company Conair in 2007.
“The investment Conair has made with the purchase of our new space is a wonderful indication of the support they put behind us,” stated Brice. The alliance has also opened doors for Allegro through cross-promotion, utilizing the strength and familiarity of the Conair brands.
Allegro posted sales of $48 million in 2005 and is projected to garner sales of $80 million in 2008, earning the company an 85 percent share of the soft-sided cosmetic storage market in North America.
With offices in Los Angeles and the United Kingdom, Allegro trades in more than 30 cities and maintains sales and distribution offices in London, Paris, Mexico City, Toronto, Sydney and Shenzhen. In addition, the company maintains two wholly owned manufacturing facilities in China and the Philippines and outsources to more than 25 factories in China. The company’s brands, including Trina, Celebrity and Modella, are retailed in more than 35,000 doors worldwide.
Colgate reports double-digit growth, earnings in Q2
NEW YORK Colgate announced on Tuesday that it posted its seventh consecutive quarter of double-digit operating profit, net income and earnings per share growth.
Worldwide sales for the quarter rose 16.5 percent to $3.96 billion and unit volume rose 5 percent. The top-line growth was supported by an 18 percent boost in worldwide advertising spending to an all-time record level.
Operating profit as reported rose 17 percent compared with the year-ago period to $767 million. Excluding restructuring charges, operating profit climbed up 13 percent to an all-time record of $805.9 million.
Net income and diluted earnings per share totaled $493.8 million and 92 cents, respectively. Excluding restructuring charges, net income increased 14 percent in second-quarter 2008 to a record $523.3 million and diluted earnings per share rose 17 percent to 98 cents, also a record, the company stated.
“Higher advertising spending behind regular and new products worldwide drove market share gains across categories. Colgate’s global toothpaste leadership continues to strengthen with market share gains in many countries around the world including the United States, Mexico, Brazil, China and Russia,” stated Ian Cook, chief executive officer. “Other categories achieving global share gains include manual toothbrushes, power toothbrushes, mouth rinse, bar soaps, hand dish liquid and pet nutrition.”
In North America, sales grew 6.5 percent as unit volume rose 4.5 percent and pricing increased 1.5 percent.
In the United States, Colgate Total Advanced Clean and Colgate Total Advanced Whitening toothpastes, supported by an integrated marketing campaign featuring Brooke Shields and a professional sampling program, helped drive market share for Colgate Total toothpaste to its highest quarterly share ever at 16.2 percent. Colgate Max Fresh and Colgate Sensitive toothpastes were also strong performers in the quarter. Colgate’s share of the manual toothbrush market is at a record high of 27.8 percent year-to-date, according to the company. That is up 2.1 share points versus the year-ago period. This growth was fueled by the sales of Colgate 360, Colgate 360 Sensitive and the new Colgate 360 Deep Clean manual toothbrushes.
New products contributing to growth in the United States in other categories include Colgate 360 Sonic Power battery toothbrush, Irish Spring Moisture Blast and Irish Spring Reviving Mint body wash for men.
Introductions scheduled to begin shipping in the third quarter include Max Fresh with Mouthwash Beads, the first toothpaste infused with mini dissolvable mouthwash beads packaged in a clear tube.
Revlon sells Bozzano, other Brazilian brands
NEW YORK Revlon has sold its non-core Bozzano brand, a men’s hair care and shaving line, and certain other non-core brands sold in the Brazilian market.
Revlon brand color cosmetics will continue to be marketed in Brazil through its current third party distributor.
The gross purchase price was about $104 million in cash. The company expects net proceeds, after payment of taxes and transaction costs, to be about $94 million. It is currently evaluating the most appropriate use of net proceeds from the deal.
“Our business strategy is to build and leverage our strong brands worldwide, particularly the Revlon brand. This transaction presented Revlon with an opportunity to monetize a non-core, non-strategic brand at a very attractive valuation, while enabling us to remain focused on building our core brands around the world,” stated Revlon president and chief executive officer David Kennedy.