Sign in

Acquisition of Alberto Culver Impacts Latin America Market Dynamic

Cristina Kroll

The recent announcement of Unilever’s acquisition of Alberto Culver may have a big impact on the Argentine hair care market, in which Alberto Culver has a strong presence gained through the acquisition of Argentine company La Fármaco Argentina in 1998. La Fármaco owned well-established brands such as Veritas, a 100-year old deodorant and pedicure brand, and Fármaco soap, among others. Currently, Alberto Culver has more than 300 employees in Argentina.

Alberto Culver also markets its VO5, TRESemmé and Nexxus hair care brands, as well as the skin care brand St. Ives in Argentina.

Upon completion of the acquisition, Unilever will own Alberto Culver’s facility in Pacheco, located in the province of Buenos Aires, as well as its current Tortuguitas hair care manufacturing facility, also in the Buenos Aires province, where the company develops products for its Sedal, Suave and Clear hair care brands.

Further, with the combined Alberto Culver and Unilever brands, Unilever will hold approximately 40% of the Argentine hair care market.

New Leader for Coty South America

The Argentine Fernando Ferré has replaced Favio Palazzi as general manager of Coty in Argentina, Chile and Uruguay. While based in Buenos Aires, Palazzi held the position for more than nine years. Ferré previously held regional positions at various multinational beauty companies, including L’Oréal, based in New York City, and Avon, based in São Paulo, Brazil.

In the region, Coty markets the Rimmel London, Jennifer López, Lancaster and Davidoff fragrance brands. In September 2010, the company introduced a Playboy brand women’s fragrance line in Argentina.

Paraguay Joins Latin American Cosmetics Council

The Personal Hygiene Products Companies Chamber of Paraguay (CAEDHPA) has joined the Latin American Cosmetics Industry Associations Counsel (CASIC). According to a Paraguayan newspaper, the official announcement was made at a special event on Aug. 31, 2010. According to CAEDHPA, the cosmetic sector is valued at $56 billion in the Latin American region, accounting for 16% of the global beauty market. CAEDHPA represents 27 Paraguayan makers of personal hygiene, cosmetic and perfume products, among others, and CASIC is comprised of cosmetic industry chambers of commerce from Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Uruguay.

Rouge Reinaugurates Iconic Beauty Store

Argentine beauty retailer Perfumerías Rouge reopened in October in the five-story Casa Pozzi building, an historic beauty and fragrance retail location. Known for its exclusive selection of beauty brands and natural hair wigs, Casa Pozzi, located in the heart of Buenos Aires, was opened by José Luis Pozzi in 1906. The Pozzi family held the business until 2006, when it declared bankruptcy. Now Rouge, a retail chain that is part of the same group as Argentine beauty distributor Diffupar, acquired the Pozzi’s license for 10 years and reinaugurated the store.

In addition to beauty and fragrance retail areas, the location features four booths for providing free facial and body treatments, as well as an entire floor occupied by the popular Estudio H Argentine hair salon. Rouge currently has 30 points of sale in Argentina.

Elementos Esenciales Expands in Argentina

Through an aggressive expansion plan, the Argentine beauty retailer Elementos Esenciales will grow to a total of 20 exclusive points of sale in 2010. The company opened a door in Lanús, located in the province of Buenos Aires, in October, and its newest location opened in the Southern Neuquén province in November. Also, in addition to stores in Argentina, Elementos Esenciales has a presence in the Uruguayan market.

The retailer was created in 2001 by Argentine entrepreneur Liliana Lampuri, who had more than 20 years of experience in advertising and decided to put this expertise to use in the beauty industry. Elementos Esenciales also has its own line of shower gels, perfumes, bath salts, home fragrances, and body, face and hair treatments.

Cristina Kroll is a business journalist specializing in the beauty sector and living in Buenos Aires, Argentina. She has written for the main Argentine magazines related to the beauty business, and was a correspondent for French magazine Beauty Business News.