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19/12/14

Sustainable Cosmetics Summits Highlight Key Challenges

11/12/14

Calypso Re-Launches Fairtrade Juice Range

01/12/14

Aldi 's Organic Move Could Spark Price War

 

 

19/12/14

Sustainable Cosmetics Summits Highlight Key Challenges

The Sustainable Cosmetics Summit drew to a successful close a few weeks ago, with the European edition (Nov 24-26th) following the Asia-Pacific (Nov 10-11th) and Latin American (September) editions.

The summits discussed some of the key sustainability challenges facing the cosmetic & personal care industry: approaches to tackling sustainability, traceability in supply chains, moving towards renewable materials, marketing communications, and engaging with consumers.

The European and Latin American editions gave case studies on how large multinationals are tackling sustainability. Alexandra Palt, CSR and sustainability director of L’Oreal, said the company is integrating sustainability into various departments so all new products have a beneficial environmental or social impact. According to Palt, a big challenge for L’Oreal is to create zero-waste systems. Ewerton Nunes of Johnson & Johnson said social aspects - such as the health of its customers and employees – were of paramount importance to the company. It has introduced global metrics to measure improvements in these areas.

The importance of raw material traceability was covered in the Asia-Pacific and Latin American editions. Using tea tree oil as an example, Jerome Chophard gave details of the growing incidence of adulteration and mislabelling of natural ingredients. Apart from the economic harm to legitimate producers, Chophard said fraud also brings environmental and health risks. Herve Fretay from Givaudan encouraged ingredient firms to ‘invest in their supply chains’ to guarantee supply of natural ingredients. Fretay gave details of Givaudan’s Venezuala sourcing project which is preserving 148,000 hectares of the Amazon to secure tonka beans for its fragrances.

There was much debate about sources and application of natural ingredients in personal care formulations. With new technologies allowing green materials to be produced in refineries, a frequent question was ‘what constitutes a natural ingredient?’ According to Phyture Biotech, plant cell technology is the way forward as it enables agricultural land to be freed for food production. Other companies, such as Naturex and Beraca, believe companies should make a difference by working with indigenous communities. Anthony Verdugo from Naturex showed how the company is working with local tribes in Cameroon to preserve endangered maobi trees. Asia Plantation Capital gave details of its Agar wood reforestation projects, whilst Keracol highlighted the innovation possibilities offered by food waste.

Retailers also shared their experiences with sustainability. The Brazilian company Grupo Boticario has put sales channels at the center of its sustainability strategy. Malu Nunes, sustainability manager, states the company is investing in sustainable materials and eco-design for its retail network. The international retailer Carrefour said private labels and packaging were key parts of its green initiatives. Andrew Jenkins from Boots expressed the scale of the sustainability challenge faced by retailers; the UK pharmacy chain has 8,000 private label products, making raw material traceability a huge task. Jenkins called for personal care brands to take a systems approach to sustainability, and not think about their products in isolation.

Many discussions centered on the marketing issues associated with green products. Although consumers were becoming highly aware of environmental and social issues, various studies show this does not always translate to higher green product sales. Organic Monitor said that many natural & organic beauty brands are struggling to overcome the ‘green glass ceiling’ and get mass market appeal. Ogilvy Earth believes brands need to target middle consumers if they are to overcome the ‘green gap’. Coop Denmark said it was building its private label ranges to encourage green product purchases. Deloitte Consulting described how green brands can use social media to engage with customers.

The three editions of the Sustainable Cosmetics Summit raised many new questions about sustainability in the personal care industry: what is the role of sustainability metrics - should companies take metrics or is it better to have a holistic approach to sustainability? How can cosmetic and ingredient firms move away from their preoccupation with environmental impacts? What are the possibilities to improve their economic footprints? In light of falling petrochemical prices, what is the future outlook for renewable materials? How can green cosmetic brands engage with customers? What more can be done to encourage responsible consumption? Organic Monitor looks to address such questions in 2015 editions…

North American edition:            14-16 May 2015, New York
Latin American edition:             28-30 September 2015, São Paulo
European edition:                    19-21 October 2015, Paris

Organised by Organic Monitor, the aim of the Sustainable Cosmetics Summit is to encourage sustainability in the beauty industry by bringing together key stake-holders and debate major sustainability issues in a high-level forum. The European edition was hosted in Paris on 24-26th November, the Asia-Pacific edition in Hong Kong on 10-11th November, whilst the Latin American edition took place in São Paulo on 10-12th September. More information is available from www.sustainablecosmeticssummit.com

The European summit in pictures 
http://www.sustainablecosmeticssummit.com/Europe/paris2014summitpics.htm

The Asian summit in pictures 
http://www.sustainablecosmeticssummit.com/Asia/hk2014summitpics.htm

The Latin American summit in pictures 
http://www.sustainablecosmeticssummit.com/Lamerica/sp2014summitpics.htm

   

Source: News Release
 

 

11/12/14

Calypso Re-Launches Fairtrade Juice Range

The Welsh company Calypso Soft Drinks has re-launched its Fairtrade Pure Juice range with new packaging to commemorate the 20th anniversary of the Fairtrade mark in the UK.

The new packs offer a highly visual, brightly coloured and bold design, which was created to stand out and appeal to a wide consumer audience. Appearing across a range of Calypso Fairtrade Pure Juice pack formats, including 500ml bottles, 200ml cartons and 85ml cuplets, the new products are available through independent retailers and foodservice channels.

Calypso, which is owned by Cott Beverages, was the first soft drinks company to gain accreditation with the Fairtrade Foundation in 2001. Michele Davies, Calypso marketing manager, said: “We will be supporting the Foundation’s theme of ‘choose products to change lives’ – its all about consumers having the power to change the world every day by buying Fairtrade products. With one simple choice, farmers all over the world get a better deal and have a better, fairer life as a result.”

OM Comment
Valued at EUR 2.1 billion, the UK market for fairtrade products is the largest in the world. In 1994, the Fairtrade mark was initially launched on coffee, tea and chocolate; it now spans over 4,500 products across categories. Fairtrade products are so successful that the Fairtrade mark is the most widely recognised eco-label in the UK.

The future direction of eco-labels in the food industry are featured in the Sustainable Foods Summit. The North American edition will take place in San Francisco on
21-22nd January 2015, the European edition in Amsterdam on 4-5 June, whilst the Latin American edition will be in São Paulo on 25-26th June 2015. More information is available from the website

Source: News Release

 

01/12/14

Aldi 's Organic Move Could Spark Price War

With Aldi expanding its organic food range, the Soil Association believes the move could spark a new price war between major food retailers.

Consumers could save 25% on their baskets of British organic products by shopping at Aldi, the German discounter claimed when it announced it would sell organic produce. But Aldi's move into organics could make the sector the new battleground in the supermarket price war, claims chief executive of Soil Association Helen Browning.

According to the organisation, Sainsbury is the largest retailer of organic food with a market share of 29%. Such high sales of organic products have led some city analysts to suggest that the discounters posed a threat to Sainsbury and the other major multiples with organic offerings. 

"Will it be that Sainsbury and the other retailers start to say, 'we will cut our margins on organic to maintain our customer base'?" questioned Browning. "Or will they say 'we're going back to our suppliers to ask them to do it for less'?" 

Browning said consumers were once again starting to show interest in organic food. This follows a fall off in demand for organics during the recession. However, continued pressure on consumer spending power was increasing competition for shoppers between the big retailers. "We don't want to see price wars going on in organic," remarked Browning. She added that farmers and food manufacturers would ultimately pay the price. 

Sainsbury would not be drawn on whether it would lower the prices of its organic products in response to Aldi's move. "We don't comment on pricing or competitors," said a spokeswoman. 

The discounters were definitely a threat to the big four supermarkets' organic offering, according to Clive Black, an analyst at Shore Capital. "The limited assortment discounters are actively exploring and seeking to move up the value chain; they have been for some time, and organic products form part of that process," he said. 

Julian Wild, a partner at the law firm Rollits, agreed with this analysis and suggested Aldi would use organics as a 'loss leader', "I suspect that Aldi wants to show that it isn't just a cheap discounter and can offer organics," he said.

OM Comment
Although there are concerns about discounters commitment to organic foods, one should not forget their growing importance in the UK retail market. Lidl and Aldi have been showing a rise in market share at the expense of large supermarkets. Furthermore, the heavy discounters are expanding their premium lines, such as wine, meats, and seafood. Consumers can benefit from lower prices of organic foods, as they have done in Germany and Denmark where the market share of organic products is much higher then that in the UK. 

   

Source: The Grocer / OM
 

 

 

 

 

 

 

 

 

 

 

 

 

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