China
Joint venture business which markets Haleon's OTC drug brands in China will soon be 88% owned by the UK-based firm.
P&G has worked to ‘rebuild’ the SK-II brand in China over the past year with a focus on product quality, efficacy and the line’s core ingredient, as well as improved messaging, and recently launched SK-II's ‘most crafted, exclusive and luxurious skin care series’ to date, CFO Andre Schulten noted at the Barclays Global Consumer Staples Conference.
Request to recall eye drops should be fulfilled promptly and businesses providing lip balms as promotional products must verify contract manufacturers are compliant, recent FDA warnings states. Additional letters went to Jordanian firm about testing alcohol for methane and to a Chinese firm advised that compliance with China’s quality control standards isn’t sufficient.
Kenvue maintains full-year guidance after 0.3% Q2 net sales dip beat market expectations. Essential health segment alone drove sales; self-care and skin health/beauty faltered. US sales of Neutrogena Collagen Bank pre-aging platform launched on TikTok shop, a first for the brand.
L’Oréal's European business recorded sales growth of 9.7% to €3.55bn in the second quarter as consumer confidence grows, while in the US sales slowed for the dermatological beauty business and consumers in China are value-shopping.
P&G's FY2024 Q4 net sales were flat at $20.5bn, lower than consensus estimates, but the firm says its underlying business divisions are healthy and forecasts FY2025 sales up 2% to 4%, up 3% to 5% organically.
Warning letters to SuXiang Medical Instrument in China and Yahon Enterprise in Vietnam among recent warnings FDAS sent to OTC drug and supplement manufacturers, including a Florida firm, White Label Leaf, warned about selling gummies containing delta-8 THC, and other OTC skin care product firms.
Reckitt is investing over $40m to build a dedicated Chinese R&D center of excellence in Shanghai as it looks to capitalize on the double-digit sales growth it has recorded in the world's most populous market over recent years.
UK prebiotic specialist Clasado Biociences is expanding across APAC and Eastern Europe through two recently-signed distribution deals: Alliance Nutrition Group’s Shanghai Prochin for China and BART in Poland.
The Estee Lauder Companies sees significant growth ahead in prestige beauty, fueled by beauty regimen use in developed markets and the rising middle class in emerging markets. CEO Fabrizio Freda discussed other factors driving demand for prestige skin care and fragrance at the Bernstein Strategic Decisions Conference.
Direct seller reports Q1 sales up 1% to $1.3bn but net sales off 17.1% from year-ago period to $24.3m. Its distributor ranks jumped so far in 2024, particularly in China, where changes were made in the past year including new company leadership.
Australian-heritage Swisse grew its share of China's supplements market in 2023 by delivering tailored products to an increasingly health conscious population.
“Companies can innovate right now, and they have confidence in these tools, these [non-animal] approaches, and they feel they can put these products on the market safely,” said Erin Hill, CEO and president of the International Collaboration on Cosmetics Safety. “The holdup is that they can’t register these new products, because there’s a lack of confidence in the regulatory community.”
Shiseido and Kao report China and travel retail were significant headwinds in 2023, though both expect smoother sailing ahead. More beauty news in brief.
Fourth quarter sales grew 6.9% on a like-for-like basis to €10.6bn, two points less than analysts had expected, due to continued disruption in travel retail and troubles in China. L’Oreal’s stock price slipped 7% the day it reported results.
Shiseido, L’Oreal and The Estee Lauder Companies are preparing to announce earnings results for the final three months of 2023, and all are expected to report headwinds that held back performance in China. Analysts anticipate a strong fourth quarter from Coty, which has been largely insulated from the ups and downs of the Chinese market in recent years.
P&G reports Chinese consumer backlash against Japanese brands over Fukushima nuclear facility wastewater disposal, combined with ‘soft market conditions,’ led to a mid-single-digit decline in organic sales for P&G’s skin and personal-care products in the fiscal second quarter.
Stada has struck a deal with CR Sanjiu for distribution and promotion of its cough and cold brands after identifying expansion in the Chinese market as a key strategic target.
FDA continues to see in-person inspections as more efficient and more effective than ‘virtual’ alternatives, which means almost all domestic inspections will be handled by traditional site visits.
Herbalife’s five sales regions leaving behind pandemic impact at different speeds; Abbott’s 15.5% nutritional sales growth didn’t overcome more than 30% slump in diagnostics sales; ChromaDex steady sales growth for most of past three years continues with 14% in latest quarter; USANA and Mannatech results slump.