Business Beat
In the future, FDA may require amended labels for AHA-containing products like Neostrata's Exuviance moisturizer.CTFA Critiques FDA's AHA Labeling Guidance
FDA is currently sorting through comments received about its proposal for printed warnings on products with alpha-hydroxy acids. The agency has proposed the following warning: "Sun Alert: This product contains an alpha-hydroxy acid (AHA) that may increase your skin's sunburn. Use a sunscreen and limit sun exposure while using this product and for a week afterwards."
The proposal was prompted by studies by The Cosmetics, Toiletry, and Fragrance Association (CTFA) and FDA, on the safety of topically applied AHAs in cosmetic products. CTFA filed a citizen petition on June 29, 2000, asking FDA for a "sun alert" label for AHA-containing products.
CTFA is not completely happy with the guidance, however. CTFA's president, E. Edward Kavanaugh, wrote, in a letter dated January 31, 2003, to FDA: "We strongly disagree with the failure of the Draft Guidance to exempt products containing AHA ingredients that are not intended to function as exfoliants and do not present an increased possibility of sun sensitivity or sunburn. . . .We have provided further evidence of the need to exempt these products in order to preserve the credibility and effectiveness of the sunburn alert statement."
CTFA proposes that the "sun alert" label should apply only to AHA cosmetic products intended for use as an exfoliant and body areas normally susceptible to sunburn. Kavanaugh's letter also suggests modifying the suggested labeling language for AHA products that already contain sunscreen.
Barbara Green, director of consumer affairs for Neostrata, the company that is the principal patent holder for AHA as an ingredient in skin care products, says that "the wording of it does sound a little foreboding to the consumer. A simple recommendation to use sunscreen on a daily basis should cover it, but FDA definitely has the right to advise us and set standards."
Green says her firm will probably strengthen the wording on its labels, though "all of our daytime products that contain AHAs also contain sunscreen anyway, so it seems a little redundant."
The big issue is that space is always limited on a label, even if it is the extended, fold-out type. "It's always a challenge to fit everything, and there are already so many requirements for labels of sunscreen products," says Green.
--Marie Redding
HBA Adds to Agenda
Organizers of HBA have announced that the trade show, to be held September 30October 2 at the Jacob K. Javits Convention Center in New York City, will include an exhibit that will showcase European beauty products.
"This sector on the HBA show floor will give European groups a forum where they can introduce their new products to the American marketplace," said Jack Gonzalez of CMP Princeton Inc., HBA's organizer.
In addition, HBA will host two mid-year conferences, both on April 2223 at the Roosevelt Hotel (New York City): "International Prestige Packaging & Design Symposium" and "High Performance Ingredients & Emerging Technologies."
It was also announced that Susan E. Arnold, president of global personal beauty and global feminine care for Procter & Gamble, will deliver the show's keynote address on Tuesday, September 30.
Inoac and Cheer Key Form Joint Venture
Cosmetic packaging supplier Inoac Packaging Group (Bardstown, KY) has formed a joint venture with Cheer Key's Guangdong, China, injection molding facility, which specializes in manufacturing cosmetic compacts and closures for bottles and jars. The new alliance will expand Inoac's resources for providing complete cosmetic bottle and jar packages.
Think-Tank Session Asks Execs to Rethink Strategies
Speakers at the Think-Tank breakfast seminar held on February 12 at The Fragrance Foundation, "Maximalism: A Shift in the Luxury Market," urged makers of luxury products to better understand their consumers.
"The fragrance and fashion industries are still focusing on young people--and young people have no money," said Greg Furman, who moderated the seminar and is president of Furman Communications. He and Annette Green helped found the Luxury Marketing Council to study the buying habits of luxury consumers.
Jim Taylor, publisher of Hearst's Town & Country magazine, explained that the 35-and-over age group has enormous spending power.
"Since their parents saved all their money, there are 76 million baby boomers who stand to inherit 20 trillion dollars over the next 20 years," said Taylor. He cited the following statistics: In 1975, there was one millionaire for every 285 households in the United States. Today, one out of every 20 households is a millionaire household--and the top 20 million households control 92% of the wealth in this country. The other 8% of the wealth is split among the remaining 80 million households.
The target group in the luxury market is the wealthiest 1% of the population, according to Taylor. This group enjoyed a 40% increase in their income during the past 10 years, while the typical salary has only risen by 10% in the last 30 years. During the past 10 years, 90% of the population saw only a slight increase in their income. These statistics support the belief that the middle class in America is shrinking.
"To compete in today's economy, choose one road. If you don't have the lowest prices, then you'd better have the highest quality," said Taylor.
You won't get the luxury market's attention with standard marketing techniques. They are "critical, cynical, and demand knowledge," said Furman. "Advertising must engage them differently."
This group is willing to pay high prices for a product if it provides a valuable benefit, but you need to know which benefits they value. "Substance is favored over style. They don't wear brand names as a badge," said Heather Mee, partner and chief strategic officer at Ziccardi Partners Frierson Mee Inc.
You must also target the right age, in the right way, as the baby boomers redefine aging. Taylor explained, "Don't market to an older image, but don't market to youth. This group wants 'young' in a brand's image, but the reality is that they are older. They're not having a midlife crisis, and they're not going back to their youth. They'll spend $200 on a face cream because they want to stay young."
Huge discount stores may be thriving, but Nancy Kanterman, vice president of Tiffany & Co.'s fragrance division, warned, "Don't downmarket and sacrifice cachet for volume." Tiffany & Co. recently discontinued all of its lower-priced fragrance promotional items, as well as all trade and wholesale business around the world, in order to regain the image of exclusivity. Signature fragrance brands Tiffany and Tiffany for Men were repackaged and the new, more-modern looking Pure Tiffany is launching in April.
Meanwhile, the next wave of boomers is set to arrive with Generation Y, and they are already being courted by luxury purveyors.
--Marie Redding
PDM Membership Grows
Packaging Distributors and Manufacturers (PDM) announced increased membership this year. PDM, an association for packaging professionals, will hold its next annual meeting on February 48, 2004, in Southeastern Florida. For more information, call Jenifer Brady at 908/233-1234.
ECM Renovates Facility
ECM Plastics Inc., a custom color compounder, has completed phase two of renovating its facility in Worcester, MA. ECM also plans to enhance its color laboratory for formulating color and additive concentrates for the cosmetic and personal care markets.
Rexam Acquires Lüner
Rexam PLC, a global consumer packaging supplier, has acquired German glass-container manufacturer Lüner Glashüttenwerke GmbH.
FACES & PLACES
Valois Group has named Eric Bauer president of Valois of America (Congers, NY). Bauer joins Valois from Eastman Kodak Co.
O. Berk Co. (Union, NJ) has announced the relocation of its sales office in Port Washington, NY, to 77 Jericho Tpke., Mineola, NY 11501; phone: 516/877-7451; fax: 516/877-0013; e-mail: nysales@oberk.com.
Risdon-AMS (Watertown, CT) has appointed Jim Bigham director of sales and marketing, closures. Bigham will direct sales and marketing efforts for Risdon-AMS's caps and closures operations.
CORRECTION
In CPC Packaging's January/February 2003 issue, the "Making a Compact Statement" story should have stated that the brush applicant for Too Faced's Sexy Calling Card compact was designed and custom tooled by the compact's supplier, HCT Packaging.