Four leaders in the beauty industry – Clarins, Coty, Groupe Rocher, L’Oréal -, and EcoVadis, the leader in supply chain sustainability ratings, announced the launch of Responsible Beauty Initiative (RBI) earlier this week. The vision of Responsible Beauty Initiative is a global beauty industry where all suppliers have in place good ethical, social, environmental and business practices.
The Responsible Beauty Initiative brings together the global beauty industry in a collaborative effort to strengthen sustainable practices, improve environmental footprint and social impacts, and maximize shared value across its collective supply chain.
It will amplify members’ efforts to boost sustainability in their supply chains, while ensuring the suppliers of the industry have sound ethical, social, and environmental business practices in place. The RBI will achieve these objectives by:
driving a common understanding of sustainability performance across the industry
sharing best practices and processes
leveraging common tools to create efficiencies and benefits for suppliers
The Responsible Beauty Initiative will address the unique opportunities and challenges of the beauty industry global supply chains and will aim to drive the continuous improvement of sustainability practices. The founding members will sign the charter to officially launch RBI and invite other companies and suppliers in the industry to join.
Accelerated Analytics is a comprehensive software-as-a-service (SaaS) solution for collecting, analyzing, and reporting on retail EDI 852, POS, and supply chain data. We applaud customers Clarins, Coty and L’Oreal for being founding members of the Responsible Beauty Initiative.
The string of beauty deals continues in the new year with significant beauty acquisitions for Accelerated Analytics customers L’Oréal and Coty, all within a 48-hour period earlier this week.
L’Oréal will almost double the size of its Active Cosmetics Division with the acquisition of CeraVe, AcneFree and Ambi for a reported $1.3 billion. Founded in 2005, CeraVe develops cleansers, moisturizers and baby products and is one of the fastest-growing active skincare brands in the United States, L’Oréal said. AcneFree provides acne treatments and skin cleansers, while Ambi makes products to treat dark spots and brighten skin. The new trio of labels generates yearly revenue of about $168 million combined, and puts L’Oréal head-to-head with Nestlé’s blockbuster brand Cetaphil.
“Although the price is very high,” said Eva Quiroga, an analyst at Deutsche Bank, “it is supported by the strong growth the business will likely achieve, initially in the U.S. and eventually on a more global basis. It is the kind of global expansion that L’Oréal has historically excelled at.”
Coty is the latest consumer-products maker to acquire an online start-up with the purchase of Younique, a Utah-based company that makes its own line of skin care, body care and makeup products that are sold via peer-to-peer social selling. Coty will acquire 60% of Younique for $600 million in cash and Younique founders Derek Maxfield and Melanie Huscroft will own the remaining 40% and stay with the company in executive roles. Younique’s sales are made mostly online through virtual parties on Facebook and other social platforms. Modeled after more traditional direct-selling models, Younique is part of a group of young companies that have adapted the model to the internet age.