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Update Update News recap In brief Strategy P&G to cut up to 100 brands Consumer Capital has taken a P&G is to shed 90 to 100 brands over the next two years in a move to tighten its focus on its most strategic Private-equity company Encore product lines. The move will leave the group with around 70 to 80 brands. P&G refused to comment about stake in color cosmetics brand the brands it plans to eliminate. Butter London. The Butter The company said the remaining brands have accounted for 90% of its sales and more than 95% of its London brand, which is based in proft in the past three years. These brands will be organized into 12 business units in four industry sectors. the US, was founded in 2005 by P&G ceo AG Lafey said that the pruning of the portfolio will result in a much smaller and less complicated British entrepreneur Sasha Muir. company that will be easier to manage. It launched with nail lacquer and The move comes as P&G continues to cut costs to offset disappointing sales. The company’s full-year sales recently added other make-up grew by only 1% to $83.06bn, while net proft for the year was up 3% to $11.64bn. Beauty’s net sales items to its line-up. Encore declined 2% to $19.51bn for the year, while net proft from continuing operations for the division rose 11% Consumer Capital recently sold its to $2.74bn. For the fourth quarter, beauty sales were down 5% (+3% on an organic basis) and net proft stake in Tarte Cosmetics to Japan’s rose 23% to $498m. Kosé Corporation. Shoemaker Christian Louboutin Walgreens acquires remaining shares in Boots has stepped into the beauty US-based drugstore retailer Walgreens is to acquire the remaining market with the launch of a nail 55% share of UK drugstore operator Alliance Boots for £3.13bn color line. The frst product in ($5.29bn). This deal follows Walgreens’ initial purchase of 45% of the line is Rouge Louboutin, a Alliance Boots in June 2012. The acquisition will see the creation red nail polish that comes in a of a new holding company, Walgreens Boots Alliance Inc, based heavy glass bottle with a tall thin in Chicago, US. The new entity will be divided into four divisions: cap inspired by a high heel. The Walgreen Co, Boots, Pharmaceutical Wholesale and International nail polish, which launches in Retail, and Global Brands. August, retails at $50 and will be The group is embarking on a three-year strategy that will be followed up by varnishes in 30 implemented through fscal 2017, and will entail cutting $1bn in costs at corporate, feld and store levels. other colors. The brand’s beauty The new entity will have a footprint of more than 11,000 doors in 10 countries, and is forecasting 2016 business is managed by Christian sales of between $126bn and $130bn. Management highlighted that it wants to further develop its beauty Louboutin Beauté, a joint venture and own-brands portfolio, which includes the No7 line. between the fashion company and In terms of management changes, Walgreens president and ceo Greg Wasson has been named president US-based business development and ceo of Walgreens Boots Alliance. Alliance Boots executive chairman Stefano Pessina is taking on the role company Batallure Beauty. of executive vice chairman of the group, with responsibility for strategy, mergers and acquisitions. German group Beiersdorf has opened a production and research and development center in Silao, Harrods to unveil new fragrance concept Mexico to increase capacity for UK-based department store Harrods is to launch a new fragrance North and Central America. The retail concept at its London store this September. The retailer says new 34,000m (365,972ft ) plant, 2 2 that the concept, which it calls the Salon de Parfums, is aimed at which has a production volume of ‘perfume connoisseurs’, and will present high-end and rare scents 280 million cosmetic products and alongside perfume creation and personalization services. 45,000 tons of product annually, is The 5,090ft (473m ) space on the store’s sixth foor features the second largest in Beiersdorf’s 2 2 dedicated brand boutiques for 11 fragrance brands: Bond No 9, By production network after Kilian, Chanel, Clive Christian, Creed, Dior, Guerlain, Henry Jacques, Hamburg. The unit will primarily Roja Dove, Tom Ford and Xerjoff. A separate fragrance gallery will stock another selection of perfumes and will produce creams, lotions, shower include world-exclusives, such as London-based perfumer Thomas Kosmala, and fragrances, such as Dolce & products and lip care for the Nivea, Gabbana’s Velvet Collection. Eucerin, and Labello brands for The space is intended to convey an intimate retail ambiance and is decorated in soft grays and natural tones. sales in Mexico, Central and North The 11 brand boutiques are situated along a corridor that features columns, showcase windows and decora- America. The complex also has its tive light fttings. The fragrance gallery lies at the end of the corridor and is in the form of an oval-shaped room own innovation center housing with seating and a crystal chandelier. 20 researchers. 10 September-October 2014 - N°19 - BW Confidential