A-B-Cs of makeup
NEW YORK — As anticipated, the BB cream phenomenon is beginning to give way to a new player in the world of alphabet creams. Enter CC creams, or "color control" creams.
Hard Candy, whose products are sold exclusively at Walmart, is launching in February its CC Crème. The multifunctional CC Crème will be available in four shades and priced at $8 each. Meanwhile, Procter & Gamble began shipping in December its new Olay Total Effect CC cream that promises to fight the seven signs of aging and covers skin imperfections.
Bottled water quenches thirst for healthier drinks
Consumers still have a thirst for bottled water. “Bottled water is performing moderately well with respectable growth,” said John Sicher, publisher of Beverage Digest. Dollar sales of bottled water were up 7% across food, drug and mass outlets for the 52 weeks ended Dec. 2, 2012, according to SymphonyIRI data. Sicher said he expects bottled water to grow modestly over the next few years.
His forecast for the enhanced and flavored bottled water segment of the category is mixed. Dollar sales of enhanced and flavored water were up about 4%, according to Sicher. Their share of total bottled water sales has grown from 16% in 2006 to 24% in 2011 across all three channels, according to Mintel, but a recent report from the market research firm suggests that the introduction of private-label products that mimic the look, flavors and functional claims of branded products have hampered growth.
Some brands have had a strong performance. “Smart Water is the main growth brand in the category because Coke has done such a good job with packaging and marketing,” Sicher said. He also said the brand saw dollar sales increase 26% last year. Competitor Vitamin Water Zero sales were up 7%.
One promising segment within the water category is essence waters, which contain natural flavors and no sweeteners. Although they still represent a small percentage of category sales, essence waters could provide some bounce to the category.
Kara Goldin, founder and CEO of Hint, said the company saw high double-digit growth in most of its existing brick-and-mortar accounts during 2012 and almost 200% growth in sales online. This year, Goldin expects growth from existing accounts to surge 30% to 100%, and believes the brand will see major growth in the drug channel in 2013 as retailers allocate more refrigerated space to healthier beverage alternatives.
“Rite Aid launched Hint and some other ‘better-for-you’ beverages last year, and is expected to allocate cold space later this year,” she said. CVS also will launch the brand’s sparkling water line, HintFizz.
Sparkling bottled water has been a growth area in the water category, according to Mintel. Sales grew an impressive 22% from 2010 to 2011 and are projected to increase 43% from 2013 to 2016, according to the market research firm. “Sparkling water is on the rise, but it’s still a small part of the business,” Sicher said.
A recent report from Mintel cited Nestlé’s premium sparkling water brands Perrier and San Pellegrino as brands that have shown impressive dollar and volume sales growth in the past two years.
The article above is part of the DSN Category Review Series. For the complete Beverages Buy-In Report, including extensive charts, data and more analysis, click here.
Customers invest in premium-priced products
Despite a wavering economy, all of the U.S. prestige beauty categories enjoyed healthy growth in 2012, according to global information company the NPD Group, which presented in late January the U.S. and global beauty industry’s first look at 2012 year-end results for skin care, makeup and fragrance at its annual "Hot off the Press" event at the Harmonie Club in New York.
Cosmetic Executive Women — a professional organization in the beauty, cosmetics, fragrance and related industries — partnered with the NPD Group to host this year’s event.
According to NPD, the total U.S. prestige beauty industry showed an increase of 7% in dollar sales in 2012 compared with 2011.
"Coming off the wave of 2011, one of the most robust sales periods in over a decade for the beauty industry, 2012 has shown some great highs, along with some modest lows," stated Karen Grant, VP and senior global industry analyst for the NPD Group.
While all of the U.S. prestige beauty categories posted healthy growth, prestige skin care sold in U.S. department stores generated the largest growth at 10%, followed by makeup at 7% and fragrance at 5% compared with 2011.
"Even though consumer confidence continues to waver, there is momentum at both ends of the price and product spectrum. In 2012, along with smaller categories in beauty, we are seeing investment spending on premium-priced makeup, skin care [and] fragrance, as well as premium-priced sets, which lead in growth once again. Even in Europe, where the economic environment is more challenging, the major premium-priced category, fragrance, was positive. Premium-priced products remain one of the brightest spots in beauty and will continue to carve out market share across all categories and geographies in the New Year," Grant said.
The NPD Group also noted that the U.S. food, drug and mass channel (excluding Walmart) experienced nearly a 3% increase in sales for total beauty in 2012 versus 2011. Makeup sales posted the biggest increase at 5%, followed by skin care at 3%, while fragrance sales declined 4% in dollar sales compared with 2011. In national chain stores, fragrance sales grew 7%.
"In the United States, although we have seen some tempering in sales performance, compared with 2011, growth remains positive for both the prestige and mass channels. The trend of prestige beauty outpacing mass beauty continues to be evident since the recessionary period of 2009 and will likely continue into 2013," Grant said.