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Lancôme Seeks to Manufacture Fragrances in Brazil

By: Fernanda Bonifacio
Posted: November 5, 2010, from the November 2010 issue of GCI Magazine.
Inside Brazil

Carlos André Montenegro, founder and CEO, Sack’s, will oversee the transaction of Sack’s to Sephora while increasing LVMH’s presence in Brazil.

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P&G announced it will start using a renewable, bio-derived plastic in packaging for Pantene, CoverGirl and Max Factor products worldwide. The announcement was made at a press conference that included Brazilian supermodel Gisele Bündchen, who is the Pantene endorser in Brazil.

Produced by Brazilian petrochemical Braskem, the sugarcane-based resin can, according to a press announcement, remove up to 2.5 tons of carbon from the atmosphere for every ton of item manufactured. P&G’s products will receive the “I’m Green” label, indicating their sustainable origin. Braskem also has entered into partnerships with other companies—including Natura, Johnson & Johnson and Shiseido.

According to P&G, the global pilot project will take place over the next two years, and the first products will be available on the market in 2011. “The partnership will strengthen Procter & Gamble’s initiatives to promote sustainable development,” said Gabriela Onofre, director of corporate affairs, P&G Brasil. She explained Pantene will be the project’s flagship due to its high growth rates, which have reached 40% on an annual basis.

With LVMH Acquisition of Sack’s, Sephora Seeks Aggressive Growth

With the July 2010 purchase of 70% of Sack’s, an online retailer of fragrances and beauty products and one of the leading companies in Brazil’s specialty beauty distribution channel, LVMH’s continued expansion in the Brazilian market will include the opening of new stores and the eventual manufacturing of Sephora products in the country.

According to Carlos André Montenegro, founder and CEO of Sack’s, LVMH first made acquisition inquiries in July 2009, and negotiations began in January 2010. “Sephora has been probing the Brazilian market for 10 years,” he said. “In [conjunction], LVMH’s [success] in Brazil has always followed our growth. [LVMH brand] Dior is Sack’s champion brand in sales.”