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Australian natural cosmetics company Jurlique International has signed a share purchase agreement with cosmetics firm POLA Orbis Holdings and will target global expansion, building on the existing strength of the two organisations.

POLA is purchasing 100 percent of the shares from Jurlique, a natural skin care company with a strong market position in Australia, currently experiencing growth in Asia.

Jurlique president and CEO, Sam McKay, explained that Japan-based POLA were a good match for the Australian firm, as both could build on a strong presence in Asia, as well as building in the Americas.

“The transaction with POLA presents Jurlique with a unique opportunity to accelerate global growth, whilst simultaneously leveraging a number of the synergistic opportunities between the two companies,” according to McKay.

“The brand continues to resonate very strongly with the Asian consumer and we have outstanding representation in the key markets.”

Whilst Jurlique’s existing presence in Asia is strong, the company feels there is significant upside, both in terms of improved productivity and new distribution with this deal, including in the Americas.

The America’s led by Mary Beth Peterson remains a key strategic focus for Jurlique, we have a built a nice multi-channel operation with significant growth potential with further investment in brand awareness,” added McKay.

The Jurlique president also explained that despite initial emphasis put on building the Asia, Americas and Australian markets, Europe would become a focus in 2012.

“Europe has enormous potential and we continue to have encouraging discussions with a number of key retail partners,” McKay said.

POLA Orbis also operates in overseas markets, including China and Russia, employing a multi-channel strategy with multiple brands to meet diversified customer demands and increase market share. Jurlique, too, has a multi-channel business model that encompasses concept stores, department stores, specialty retailers, spas, duty free / airlines, and e-commerce in Australia, Asia, the United States and Europe.

“[With] the importance of producing highly effective products, Jurlique continues to lead the global market in delivering consumers efficacious natural products. Efficacy is critical in all markets, and we definitely see category variances, the importance of whitening in Asia is a good example,” concluded McKay.

Organic Monitor Comment
Jurlique has changed hands many times in the last decade. With POLA Orbis as its new parent, it maybe able to realise its true potential and become a global natural cosmetics brand. Organic Monitor research finds Jurlique already has a strong position in the Australasian and Asian markets. In spite of several attempts, it has yet to find substantial success in other geographic regions.

Related Report: #7001-60 The Global Market for Natural & Organic PC Products

Source: Cosmetics Design / Organic Monitor

A Currumbin single mother has created Australia's first certified organic tan.

After her younger sister Rachael was diagnosed with a melanoma, Sonya Driver began getting regular spray tans with her sister to avoid the risk of harmful sun rays. However, they soon became concerned about the ingredients they were constantly covering themselves with.

Ms Driver claims it took her only a few minutes to decide not to use their products any more. "The human body is far too beautiful to be putting synthetics and toxins in our bloodstream",  she said.

"There was nothing I could find on the market that I was happy to put on my body, let alone my sister's."

Ms Driver then threw herself into making an organic tanning range from her Currumbin kitchen. Earlier this year, Eco Tan became the first organic spray tan to the certified by the Organic Food Chain, a certifier approved by the Australian Government.

"There are so many fake organic claims...but if you look on the back there's actually petrochemicals and synthetics", said Ms Drivers. "Consumers have to be aware and do their research."

Cheryl Swan is the manager at Haven Spa in Tweed Heads and prefers to use organic skin care products in her salon.

"There are too many chemicals in the current products...Organic cosmetics are more natural for the body" she said.


Related Report: #4101-60 The Australian Market for Natural & Organic PC Products

Source: Tweed Daily News

Receivers KordaMentha were appointed in November to four businesses operated by Australia’s largest organic olive oil producer, Western Australia-based Kailis Organic Olive Groves. The business includes four organic olives groves and two large, high-volume cold extraction mills. Expressions of interest for the sale of the business are expected to be announced by the receivers.

KordaMentha was appointed receivers of Kailis Organic Olive Groves by the Westpac Banking Corporation on November 23, while McGrathNicol in Perth were earlier appointed voluntary administrators of the business. Westpac is owed $15 million and unsecured creditors including suppliers and employees are owed approximately $2 million. Kailis Organic Olive Groves reported a $3.4 million loss in 2009-10, but raised $25.5 million to fund the acquisition of Great Southern olive assets in WA.

The business, which currently employs around 200 people, started producing olive oil in 2000 and processing in 2004 and was founded and managed by Mark Kailis.

Kailis Organic Olive Groves launched premium organic extra virgin olive oils over the last two years and Splish organic olive oil for lower price points, but was up against a global flood of cheap and subsidised product. Around 80% of products were sold locally through supermarkets and organic retailers, while exports were promising in New Zealand, Asia and the USA.

In other related news, natural health and beauty retailer and wholesaler Healthzone Limited was placed into receivership on November 18. Phil Carter and Chris Hill of PPB Advisory were appointed as receivers and managers, while HLB Mann Judd was appointed the voluntary administrator. Mr Carter said Healthzone and its related entities will operate on a business as usual basis. “We are undertaking a review of the business and our intention is to prepare the company for sale as a going concern,” he said.

Healthzone’s retail business incorporates 110 stores (80 franchised and 30 company-owned) across Australia that have a heavy emphasis on private labels. It also distributes cosmetics and natural health products to health food stores, pharmacies and supermarkets across Australia, Asia, Europe and North America. Healthzone has approximately 250 employees. Singapore traditional Chinese medicine company Eu Yan Sang holds a 25% stake in Healthzone and has been identified as a potential buyer.

Related Report: #7051-60 Strategic Insights: Mergers, Acquisitions & Investments
                      in the Organic & Natural Personal Care Industry  

Source: Organic Advantage (BFA)